N.Y. Comp. Codes R. & Regs. tit. 21 § 2185.3

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

Section 2185.3 - Rules and regulations

(a) Payment request procedure.

(1) Most contractors who are owed money by the agency shall send a proper invoice to the attention of Accounts Payable, the designated payment department of the agency. Accounts Payable will log the reception date of the invoice, and send the document to the unit within the agency that received the purchased goods, property or services from the contractor for review and verification.

(2) A small group of contractors will not have to request payment because their contracts provide for automatic payment at predetermined intervals without the necessity of an invoice. Accordingly, review and verification of the work of these contractors will take place prior to each scheduled payment date.

(b) Schedule for prompt payment. The agency will adhere to the following schedule for prompt payment:

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

(2) For invoices received after July 1, 1989, payment will be made within 30 calendar days, excluding legal holidays, after receipt of a proper invoice.

(3) For contracts with predetermined payment dates, payment will be made on each such date.

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

(c) Interest computation. If the agency fails to meet the prompt payment schedule set out in this section, the agency 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 agency will pay penalties with monies drawn from earnings on investments, and agency fees and charges for both personal services contracts and nonpersonal services contracts, the two types of contracts entered into by the agency.

(e) Situations which justify extension of payment time for proper 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 agency; and

(5) failure by a contractor to submit documents required by agreement prior to payment.

In addition, the agency is not responsible for the processing time taken by the State Department of Taxation and Finance, the State 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 agency 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 agency has 15 days after receipt of an invoice to send a contractor notification of defects or improprieties. Agency notification shall be in the form of a standardized letter. In the event that the agency 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 agency's contentions are proved unreasonable, the date by which contract payment shall be made is calculated from the date of receipt of invoice. For those contracts which provide for scheduled payments without an invoice, the same 15-day regulations apply.

N.Y. Comp. Codes R. & Regs. Tit. 21 § 2185.3