Bill > A05491

This bill requires contractors who receive public funds for projects over $25,000 (where public funds comprise at least 30% of total project costs) to pay small businesses and minority-owned business enterprises within 10 business days of receiving an undisputed invoice. The bill defines several key terms, including "small business" (a state-based, independently owned business with 100 or fewer employees), "minority-owned business enterprise" (as defined in existing executive law), and "covered project" (a project substantially funded by public money). If a contractor fails to make timely payment, they will be required to pay interest on the amount owed, with the interest rate determined at the time of payment. The legislation specifically excludes construction and infrastructure projects for state agencies from its provisions. The bill aims to protect smaller businesses by ensuring they receive prompt payment for services rendered, thereby helping to support their financial stability and prevent potential cash flow challenges often experienced by small and minority-owned businesses when working with larger contractors.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/A5491