Int 1046-2026

Int. No. 1046 By Council Members Lee, Narcisse, Zhuang, Brewer, Riley, Hanks, Santosuosso, Won, Williams, Dinowitz, J. Sanchez, Brooks-Powers and Morano ..Title A Local Law to amend the administrative code of the city of New York, in relation to interest to be paid on late contract payments to non-profit contractors ..Body Be it enacted by the Council as follows: Section 1. Chapter 1 of title 6 of the administrative code of the city of New York is amended by adding a new section 6-147 to read as follows: § 6-147 Interest Payments. a. Definitions. For purposes of this section, the following terms have the following meanings: Contracting agency. The term “contracting agency” means a city, county, borough, or other office, position, administration, department, division, bureau, board or commission, or a corporation, institution or agency of government, the expenses of which are paid in whole or in part from the city treasury. Non-profit contractor. The term “non-profit contractor” means a non-profit organization that is a party to a contract with a contracting agency that was awarded after the effective date of the local law that added this section. b. A non-profit contractor shall be entitled to interest payments on the amount of money that would be due under the terms of the contract from the scheduled commencement date or the date such contractor begins to provide services, whichever is later, until the date the payment is made under the contract. Each agency chief contracting officer shall be responsible for assuring timely payment of interest payments to non-profit contractors pursuant to this section. The right to interest payments under this section cannot be waived or modified by the terms of the contract between the contracting agency and the non-profit contractor. c. The applicable interest rate for such interest payments shall be the rate established pursuant to section 4-06 of the rules of the procurement policy board. d. A non-profit contractor shall not be eligible to receive an interest payment pursuant to this section if such non-profit contractor has received an interest-free and service fee-free loan issued or authorized by any agency to cover the expenses of the non-profit contractor in relation to the subject contract. e. The interest payment shall not reduce the amount of money otherwise payable to the non-profit contractor under the terms of the relevant contract. f. The city chief procurement officer shall submit an annual report to the mayor and the speaker of the council detailing the aggregate amount of interest payments made to non-profit contractors in accordance with this section. § 2. This local law takes effect 60 days after it becomes law. Session 14 ARP LS # 22608 7/30/26 Int. 0514-2024 Session 13 ARP LS # 1652 6/24/24 Int. 0514-2024 Session 12 ARP LS # 1652 3/25/22 Int. 0982-2023