N.Y. Comp. Codes R. & Regs. tit. 21 § 753.4

Current through Register Vol. 46, No. 50, December 11, 2024

Section 753.4 - General provisions

(a) Payment request procedure. Contractors owed money by the trust shall deliver a proper invoice to the designated payment office. The designated payment office will log the receipt date of each invoice, and send it to the department unit within the trust that received the goods, property or services from the contractor for review and verification of the contractor's performance in accordance with the contract. Contractors with contracts which provide for payment at specific dates or intervals shall also be required to provide a proper invoice which certifies that the obligations required under such contract have been performed prior to such date(s) or during such interval(s), and review and verification of the work of these contractors will take place upon receipt of such proper invoice; payment shall be made in accordance with the terms of such contracts.

(b) Prompt payment schedule. The schedule of the time in which the trust will make prompt payment under a contract is as follows:

(1) Except as provided in paragraph (2) or (3) of this subdivision, payment will be made by the trust within 30 calendar days, excluding legal holidays, after receipt of a proper invoice.

(2) For contracts which provide for payment at one or more specific dates or intervals, payment will be made in accordance with the terms of such contracts, but interest shall only be payable if payment is not made within the time provided in paragraph (1) of this subdivision.

(3) This schedule will not apply in those instances where payment is being delayed by reason of any of the exceptions listed in subdivision (d) of this section, or where the time in which to make payment is being tolled for any of the reasons listed in subdivision (e) of this section, in which cases the time for payment shall be as there provided.

(c) Interest computation.

(1) If the trust fails to make payment in accordance with the prompt payment schedule set forth in subdivision (b) of this section, the trust will pay interest to the affected contractor at the rate equal to that set by the State Tax Commission for corporate taxes pursuant to section 1096(e) of the Tax Law.

(2) The trust shall not be liable for payment of interest when such interest as computed pursuant to the provisions of paragraph (1) of this subdivision is less than $10.

(d) Extension of payment time. Any of the following facts, conditions or situations are determined by the trust to be exceptions to the prompt payment schedule set forth in subdivision (b) of this section, and to justify extensions of the time by which payment must be made (the amount of time of such extension being as established by the trust's treasurer consistent with this Part, with notice provided to the contractor):

(1) statutory or contract provisions requiring an inspection period or an audit prior to payment in order to determine the resources applied or used by a contractor in fulfilling the terms of the contract;

(2) the absence of a State appropriation which is necessary to authorize payment;

(3) a requirement of Federal government examination and approval of a proper invoice prior to payment;

(4) extraordinary delay between the time of the provision of goods, property or services by a contractor and the receipt of a proper invoice by the trust;

(5) failure by a contractor to submit documents required by the contract or reasonably required by the trust prior to payment;

(6) time is taken in the processing of an invoice by the State Department of Taxation and Finance, the State Division of the Budget, the Office of the State Comptroller, the City of New York Office of Management and Budget, the Office of the New York City Comptroller, or any other entity external to the trust that is or may be required by statute, regulation or contract to approve or process trust payments; or

(7) such date by which contract payment must be made is modified in accordance with subdivision (e) of this section.

(e) Defects or improprieties.

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

(i) a reasonable belief by the trust in the existence of any defect(s), including any incompleteness or failure of compliance with the terms of the contract, in or with respect to the goods, property or services delivered;

(ii) a reasonable belief by the trust in the existence of any defect(s) in the invoice; or

(iii) a reasonable belief by the trust in suspected impropriety of any kind.

(2) In order to toll the prompt payment schedule without penalty, the trust has 15 calendar days after receipt of an invoice to send a contractor notification of such defects or improprieties. Trust notification shall be by letter to the contractor setting forth any such defect or impropriety in reasonable detail, sent to the address indicated for notices under the contract or, if no such address is provided, sent to the address set forth in the invoice; provided that, in the event that the trust fails to so notify the contractor within such 15 days, the sole effect of such failure to so notify the contractor shall be that the number of days allowed for payment shall be reduced by the number of days between such 15th day and the date of the trust's transmitting such notification. In the event that the trust fails to provide reasonable grounds for its contention that any such defect or impropriety exists, the date by which contract payment shall be made shall be calculated from the date of receipt of an invoice.

N.Y. Comp. Codes R. & Regs. Tit. 21 § 753.4