N.Y. Comp. Codes R. & Regs. tit. 21 § 2252.3

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

Section 2252.3 - Rules and regulations

(a) Payment request procedure. A proper invoice shall be sent to the attention of the director of administration, the designated payment department of the agency. The director of administration will enter or cause to be entered the date on which a proper invoice is received by the designated payment department.

(b) Schedule for prompt payment. Except as set forth in subdivisions (e) and (f) of this section, the agency will make payment in accordance with the following schedule:

(1) for proper invoices received on or after May 1, 1988 through June 30, 1989, payment will be made within 45 calendar days after receipt;

(2) for proper invoices received on or after July 1, 1989, payment will be made within 30 calendar days, excluding legal holidays, after receipt; and

(3) where payment date(s) are specified by the terms of a contract, payment will be made on such predetermined payment date(s).

(c) Date of payment. Payment of a proper invoice by the agency shall be deemed to have been made on the second business day after the date of the agency's check issued in payment of such proper invoice.

(d) Interest penalty. If the agency fails to make payment in accordance with the prompt payment schedule set forth herein, the agency shall be liable for the payment of interest at a rate equal to that set by the State Tax Commission for corporate taxes pursuant to section 1096 (e)(1) of the Tax Law. Interest shall be computed on the basis of a 365-day year, including the first day and excluding the last day of the period for which the computation is made. If the agency must process payments through the Department of Audit and Control, the Department of Taxation and Finance, or some other entity not under the agency's control, the agency shall not be liable for interest due to the process time taken by such entity.

(e) Funds available to pay interest penalties. The agency will pay penalties with monies from:

(1) proceeds received by or on behalf of the agency under the terms of bond resolutions of the agency, which proceeds are not otherwise pledged to secure the payment of bonds; and

(2) proceeds received by or on behalf of the agency under the terms of Public Authorities Law, section 2425 et seq., which proceeds are not otherwise restricted by the provisions of such statute.

(f) Situations which justify extension of payment time for proper invoices. The following circumstances 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; and

(3) a requirement for Federal government examination of a proper invoice prior to payment.

(g) Reasons which justify the tolling of payment time for proper invoices. The following circumstances shall 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;

(3) suspected improprieties of any kind;

(4) failure by a contractor to submit such documents as may be reasonably required by the agency; or

(5) a dispute concerning whether a proper invoice is due and owing.

(h) Tolling regulations. In order to toll the prompt payment schedule without penalty, the agency must notify a contractor of any circumstances set forth in paragraphs (f)(1)-(5) of this section, within 15 days after receipt of an invoice. If the agency fails to give notice within 15 days, the payment period of such corrected proper invoice shall be reduced by the number of days between the 15th day and the date of notification. If the agency fails to provide reasonable grounds for its contentions, the date by which contract payment shall be made is calculated from the date of receipt of an invoice.

N.Y. Comp. Codes R. & Regs. Tit. 21 § 2252.3