NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2212
SPONSOR: Braunstein (MS) TITLE OF BILL:
An act to amend the state finance law and the general municipal law, in
relation to requiring full payment for delivered and accepted materials
pertaining to public work projects; and to amend the general business
law, in relation to prohibiting the retention of any payment due and
owing a material supplier for a construction project
PURPOSE:
This bill amends the state finance and general municipal laws, in
relation to requiring full payment for delivered materials pertaining to
public works projects; and to amend the general business law, in
relation to prohibiting the retention of any payment due and owing a
material supplier for a construction project.
SUMMARY OF PROVISIONS:
Section 1: Amends the state finance law to clarify that materialmen are
not subject to retainage.
Section 2: Amends the general municipal law to clarify that materialmen
are not subject to retainage.
Section 3: Amends the current law to clarify that an owner, contractor,
or Subcontractor may not retain any portion of any payment due to a
material supplier, except as set forth in subsection one of the law.
Section 4: Sets the effective date.
JUSTIFICATION:
Currently, retainage is withheld on construction jobs to ensure that the
owner is happy with the finished product. Retainage is withheld by the
owner from the contractor, who, as a result of not receiving funds from
the owner, withholds payment from the subcontractors and materialmen.
Once a material supplier has delivered its goods and has been accepted
by the contractor or subcontractor, the supplier has completed its job
and should not be held liable for subsequent work performance. This
legislation would remove materialmen from inclusion under current
retainage laws.
LEGISLATIVE HISTORY:
2016: A.10275/S.7652 - Referred to Governmental Operations.
2017-2018: A.358/S.4467 - Ordered to Third Reading.
2019-2020: A.574/S.5498 - Ordered to Third Reading.
2021-2022: A.494/S.1387 - Referred to Governmental Operations.
2023-2024: A.1194A/S.6855A - Passed Assembly.
FISCAL IMPLICATIONS:
None to the State.
EFFECTIVE DATE:
This act shall take effect on the thirtieth day after it shall become
law and shall apply to materials deliver on or after such date.
