Prohibits contractors from submitting claims and receiving payment from subcontractors who are not pre-authorized by a contracting city agency; establishes penalties.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10462
SPONSOR: Rajkumar TITLE OF BILL:
An act to amend the administrative code of the city of New York, in
relation to prohibiting persons from submitting claims on behalf of
subcontractors who were not pre-authorized by a contracting agency and
receiving payment for the unauthorized claims
PURPOSE OR GENERAL IDEA OF BILL:
To ensure proper use of taxpayer dollars.
SUMMARY OF PROVISIONS:
Section 1. The administrative code of the city, of New York is amended
by adding a new section 6-112.1 to establish the crime of unauthorized
use of contractors.
Section 2. Effective date.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
JUSTIFICATION:
An emergency contract for the city of New York saw the primary contrac-
tor use 67% of the amount claimed in a two-month period for subcontrac-
tors not approved. The contractor had only submitted approval forms for
29% of such vendors, none of which had been reviewed.
This bill protects taxpayer dollars from abuse by establishing that such
conduct is a crime.
PRIOR LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
10462
IN ASSEMBLY
March 6, 2026
___________
Introduced by M. of A. RAJKUMAR -- read once and referred to the Commit-
tee on Cities
AN ACT to amend the administrative code of the city of New York, in
relation to prohibiting persons from submitting claims on behalf of
subcontractors who were not pre-authorized by a contracting agency and
receiving payment for the unauthorized claims
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The administrative code of the city of New York is amended
2 by adding a new section 6-112.1 to read as follows:
3 § 6-112.1 Use of unauthorized contractors. Any person who submits a
4 claim for and receives payment in excess of one hundred thousand dollars
5 for a subcontractor not pre-authorized by the agency as required by the
6 contract, shall be guilty of a misdemeanor punishable by a fine of not
7 less than one thousand dollars nor more than twenty-five thousand
8 dollars, by imprisonment for a period not exceeding six months, or both;
9 and the person on whose behalf such false, deceptive, or fraudulent
10 representation was made, shall thenceforth be disqualified from bidding
11 on any contracts for the city.
12 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15037-01-6
