File #: Int 0510-2024    Version: * Name: The provision of bridge loans to contractors.
Type: Introduction Status: Laid Over in Committee
Committee: Committee on Contracts
On agenda: 3/7/2024
Enactment date: Law number:
Title: A Local Law to amend the administrative code of the city of New York, in relation to the provision of bridge loans to contractors
Sponsors: Justin L. Brannan, Kalman Yeger , Lincoln Restler, Farah N. Louis
Council Member Sponsors: 4
Summary: Due to a slow procurement process, many entities that enter into contracts with city agencies begin to provide services before the agency can pay them. This can make it difficult for contractors to cover their expenses. This bill would require that certain not-for-profit corporations that contract with the Department of Small Business Services to provide economic development services for New York City provide bridge loans to contractors who have contracts with the City that are valued at no more than $500,000 and who are not receiving payments from the City in a timely manner.
Attachments: 1. Summary of Int. No. 510, 2. Int. No. 510, 3. March 7, 2024 - Stated Meeting Agenda, 4. Hearing Transcript - Stated Meeting 3-7-24, 5. Committee Report 6/4/24, 6. Hearing Testimony 6/4/24, 7. Hearing Transcript 6/4/24, 8. Minutes of the Stated Meeting - March 7, 2024
Date Ver.Prime SponsorAction ByActionResultAction DetailsMeeting DetailsMultimedia
6/4/2024*Justin L. Brannan Committee on Contracts Hearing Held by Committee  Action details Meeting details Not available
6/4/2024*Justin L. Brannan Committee on Contracts Laid Over by Committee  Action details Meeting details Not available
3/7/2024*Justin L. Brannan City Council Referred to Comm by Council  Action details Meeting details Not available
3/7/2024*Justin L. Brannan City Council Introduced by Council  Action details Meeting details Not available

Int. No. 510

 

By Council Members Brannan, Yeger, Restler and Louis

 

A Local Law to amend the administrative code of the city of New York, in relation to the provision of bridge loans to contractors

 

Be it enacted by the Council as follows:

Section 1. Subchapter 2 of chapter 8 of title 22 of the administrative code of the city of New York is amended by adding a new section 22-827 to read as follows:

§ 22-827 Loans for city contractors. a. Definitions. For purposes of this section, the following terms have the following meanings:

Eligible contract. The term “eligible contract” means any written agreement, purchase order or instrument valued at no more than $500,000 whereby the city is committed to expend or does expend funds in return for work, labor or services.

Contractor. The term “contractor” means a person or entity who is a party to an eligible contract.

b. In each covered contract with a contracted entity executed on or after the effective date of this section, the commissioner shall require that, unless prohibited by applicable law, such contracted agency provide a bridge loan to each contractor:

1. Who properly requests in writing such a bridge loan;

2. Whose eligible contract is pending registration pursuant to section 328 of the charter at the time the contractor requests such a bridge loan; and

3. Who has not or is not reasonably expected to receive payments on the scheduled payment dates specified in the applicable eligible contract.

c. The amount of such bridge loan shall be no more the amount due to be paid to such contractor under the terms of the applicable eligible contract.

§ 2. This local law takes effect immediately.

 

 

Session 13

LS #1852

1/9/24

 

Session 12

NAB

LS #1852

1/14/22