New York Assembly Bill A05491

New York 2025-2026 Regular Session

• Introduced: 2/14/25
• Refer: 2/14/25

Caption

Requires contractors receiving public funds to pay amounts owed to small businesses and minority-owned business enterprises within 10 days of receipt of an undisputed invoice generated by a small business, minority-owned business enterprise or vendor management service and managed service provider on behalf of the small business or minority-owned business enterprise.

Impact

This legislation will amend the state finance law by introducing a new section stipulating that contractors must issue payments without undue delay. Specifically, it mandates that invoices from small businesses or minority-owned enterprises must be settled within a ten-day period. The provision applies to any covered projects primarily funded by public resources, which encourages compliance among responsible contracting parties and reaffirms the role of government entities in supporting small businesses.

Summary

Bill A05491 requires contractors that receive public funds to pay any amounts owed to small businesses and minority-owned business enterprises within ten days of receiving an undisputed invoice. This measure aims to improve cash flow for these businesses, which often face delays in payments from larger entities. By ensuring timely payment, the bill seeks to enhance economic stability for small businesses and contribute to greater participation of minority-owned enterprises in public contracts.

Contention

While the bill broadly supports financial equity and timely compensation, there may be concerns regarding enforcement and accountability. Critics could argue that without stringent penalties for delayed payments, contractors might still neglect their obligations, particularly if they face their own funding issues. The balance between fostering business growth and ensuring contract compliance remains a point of potential contention within legislative discussions.