New York Codes, Rules and Regulations (NYCRR)

Title 9 Part 1906

Executive Department

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9 NYCRR 1906.1 - Statement of purpose

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Executive Department
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This policy statement is adopted pursuant to section 2880 of the Public Authorities Law and is applicable to the purchase of goods, services or property from contractors, as herein defined.

9 NYCRR 1906.2 - Definitions

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For the purpose of this section, the following terms shall have the following meanings unless the context shall clearly indicate otherwise:

(a)Contract shall mean an enforceable agreement entered into by the corporation and a contractor, including purchase orders.
(b)Contractor shall mean any persons, partnership, association, corporation or organization providing goods, property or services to the corporation pursuant to a contract.
(c)Corporation shall mean the New York State Housing Trust Fund Corporation.
(d)Designated payment department shall mean the department designated by the corporation to which a proper invoice is to be submitted by a contractor.
(e)Prompt payment shall mean payment of a debt due and owing by the corporation before interest accrues thereon pursuant to the provisions of this Part.
(f)Proper invoice shall mean a written request for contract payment setting forth the description, price and quantity of goods, property or services provided by a contractor in such form, and supported by such other substantiating documentation, as the corporation may reasonably require.
(g)Receipt of invoice shall mean either:
(1)the date on which a proper invoice is received by the designated payment department; or
(2)the date on which the corporation receives the purchased goods, property or services covered by the proper invoice, whichever is later.
(h)Setoff shall mean the reduction by the corporation of a payment due to a contractor by an amount equal to the amount of any unpaid legally enforceable debt owed by the contractor to the corporation.

9 NYCRR 1906.3 - Policy enactment

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(a)Payment request procedure.

Contractors who are owed money by the corporation shall send a proper invoice to the attention of finance unit, the designated payment department of the corporation. Finance unit will log the reception date of the invoice, and send the document to the unit within the corporation that received the purchased goods, property or services from the contractor for review and verification.

(b)Schedule for prompt payment.

The corporation will adhere to the following schedule for a prompt payment:

(1)For receipt of invoices between April 29, 1988, and July 1, 1989, payment will be made within 45 calendar days after receipt of a proper invoice.
(2)For receipt of invoice after July 1, 1989, payment will be made within 30 calendar days, excluding legal holidays, after receipt of a proper invoice

This schedule will not apply in those instances where payment is being delayed for any of the exceptions listed in subdivision (e) of this section or tolled for any of the reasons listed in subdivision (f) of this section.

(c)Interest computation.

If the corporation fails to meet the prompt payment schedule set forth in subdivision (b) of this section, the corporation will pay interest to the affected contractors at the rate equal to that set by the State Tax Commission for corporate taxes.

(d)Funds available to pay interest penalties.

The corporation will pay penalties with monies drawn from interest earnings on investments.

(e)Situations which justify extension of payment time for property invoices.

The following facts or conditions constitute exceptions to the prompt payment schedule set forth in subdivision (b) of this section:

(1)statutory or contract provisions requiring an inspection or an audit prior to payment;
(2)a requirement for State appropriation to authorize payment;
(3)a requirement for Federal government examination of a proper invoice prior to payment;
(4)extraordinary delay between the provision of goods, property or services by a contractor and the receipt of a proper invoice by the contractor; and
(5)failure by a contractor to submit documents required by agreement prior to payment.

In addition, the corporation is not responsible for the processing time taken by the Department of Taxation and Finance, the Division of the Budget, the Office of the State Comptroller, or any other external entity that is required by statute or regulation to approve or process corporation payments.

(f)Reasons which justify the tolling of payment time for invoices.

The following facts or conditions toll the prompt payment schedule set forth in subdivision (b) of this section:

(1)the existence of defects in the goods, property or services delivered;
(2)the existence of defects in the invoice; and
(3)suspected improprieties of any kind.
(g)Tolling regulations.

In order to toll the prompt payment schedule without penalty, the corporation has 15 days after receipt of an invoice to send a contractor notification of defects or improprieties. Corporation notification shall be in the form of a standardized letter. In the event that the corporation fails to act within 15 days, once the defect or impropriety is corrected, the number of days allowed for payment is reduced by the number of days between the 15th day and the date of notification. In the event that the corporation's objections are proved unreasonable, the date by which contract payment shall be made is calculated from the date of receipt of invoice.

9 NYCRR 1906.4 - Reports

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(a)Statement filing.

Within 30 days of the adoption of this statement, and of any amendments hereto, the corporation shall file copies with the State Comptroller, the State Director of the Budget, the Chairman of the Senate Finance Committee, and the Chairman of the Assembly Ways and Means Committee.

(b)Annual report.

Within 90 days after the end of each fiscal year following January 1, 1989, the corporation shall prepare an annual report on the scope and implementation of this prompt payment policy. The report shall include, but not be limited to, the following:

(1)a listing of the types or categories of contracts which the corporation entered into during the 12-month period of the report with an indication whether each such contract was subject to the prompt payment requirements, and if not, why not;
(2)the number and amount of interest payments made for contracts, arranged according to each such type or category;
(3)the number of interest chargeable days, and the total number of days taken to process each late contract payment; and
(4)a summary of the principal reasons why such late payments had to be made.

Copies of this report shall be filed with the State Comptroller, the State Director of the Budget, the Chairman of the Senate Finance Committee and the Chairman of the Assembly Ways and Means Committee.

9 NYCRR 1906.5 - Miscellaneous provisions

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(a)Statement amendment.

The corporation shall have the power to amend this policy statement by promulgating amended rules and regulations at any time.

(b)Contract incorporation.

The policy statement in effect at the time of the creation of a contract is hereby incorporated into and made a part of that contract.

(c)Public access.

The corporation shall make copies of this policy statement, as well as the annual report, available to the public upon reasonable request at the corporation's main office. In addition, the corporation shall provide a copy of this policy statement to each contractor.

(d)Applicability.

The statute authorizing this statement is not applicable to the corporation contracts with other governmental agencies, to interest on judgments rendered by a court against the corporation pursuant to any other statute, or in situations where the corporation exercises a legally authorized setoff against all or part of a payment due a contractor. In addition, this policy statement shall not apply to contracts with eligible applicants for the furnishing by such applicants of housing for persons of low income.

(e)Legal processes.

The corporation is under no liability to pay interest pursuant to the statute after a contractor has filed a claim or given notice of an intention to file claim or commenced legal action for payment of interest.

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