NY State Fin L § 18 (2021)
2021 New York Laws STF - State Finance Article 2 - General Fiscal Provisions 18 - Interest and Collection Fees Assessed on Debts Owed to the State.

§  18.  Interest  and  collection  fees  assessed on debts owed to the   state.  1. As used in this section: (a) "state agency"  shall  mean  any   state department, board, bureau, division, commission, committee, public   authority,   public  benefit  corporation,  council,  office,  or  other   governmental entity performing a governmental  or  proprietary  function   for  the  state;  (b) "debt" shall mean any liquidated sum due and owing   any state agency which has accrued pursuant to law or through  contract,   subrogation, tort or other cause of action, except a liability resulting   from  taxes  or other impositions administered by the state commissioner   of taxation and finance, regardless of whether there is  an  outstanding   judgment for that sum; (c) "debtor" shall mean any individual, business,   or  other  entity, which is not a state agency, municipal corporation or   district  corporation,  having  a  debt  with  any  state  agency;   (d)   "liquidated"  shall  mean an amount which is fixed or certain or capable   of being readily calculated, whether or not the underlying liability  or   amount  of  the  debt is disputed; and (e) "outstanding" debt shall mean   the amount set forth in the billing invoice  or  notice  mailed  to  the   debtor,  together  with  late  payment  charges  and  interest, less any   payments made by or on behalf of the debtor.2. For the purposes of this section, a state agency shall mail a dated   billing invoice or notice on or about the day it is dated,  and  receipt   by  the debtor of a billing invoice or notice is deemed to have occurred   five days after its date.3. Unless provided otherwise by contract,  statute  or  regulation,  a   debtor owing a debt to any state agency shall pay such debt on or before   the thirtieth day following such debtor's receipt of any billing invoice   or  notice  sent by the state agency that such debt is due and owing and   that failure to make timely payment, as stated in the billing invoice or   notice, will result in the assessment of  interest  or  a  late  payment   charge  and  may  result  in  a  charge to cover the cost of processing,   handling, and collecting such debt.4. Unless provided otherwise by contract,  statute  or  regulation,  a   debtor  that fails to make payment of a debt within the period set forth   in subdivision three of this section  shall  pay,  in  addition  to  the   amount  of debt, the greater of: (a) interest on the outstanding balance   of the debt, accruing on the date on which  the  receipt  of  the  first   billing  invoice  or  first  notice occurs, computed at the underpayment   rate which is in effect on the date  which  the  receipt  of  the  first   billing  invoice  or  first billing notice occurs; or (b) a late payment   charge  of  ten  dollars.  For  the  purposes  of  this   section,   the   underpayment rate shall be that rate set by the commissioner of taxation   and  finance  and published in the state register pursuant to subsection   (e) of section one  thousand  ninety-six  of  the  tax  law  minus  four   percentage points. With respect to specific classes of debt collected by   a state agency, the director of the budget or official of a state agency   so  designated  by the director of the budget may approve the assessment   of interest or late payment charges at a date later than  the  thirtieth   day  following  such  debtor's  receipt of any billing invoice or notice   sent by the state agency.5. In addition to the charges referred to in subdivision four of  this   section,   and   unless  provided  otherwise  by  contract,  statute  or   regulation, a debtor that fails to make payment of  a  debt  subject  to   this  section  within  ninety days of receipt by the debtor of the first   billing invoice or notice may be assessed an additional  collection  fee   charge  to  cover  the  cost of processing, handling and collecting such   debt, not to exceed twenty-two percent of the  outstanding  debt,  which   collection  fee  shall be added to and payable in the same manner as the   outstanding debt. The assessed collection fee charge may not exceed  the    agency's  estimated  cost  of  processing,  handling and collecting such   debt.6.  Any  interest  or  late  payment charges assessed pursuant to this   section shall be paid upon notice and demand and shall  be  treated  and   collected in the same manner as the original debt which is due and owing   and  shall  be  collected  by  a  state  agency  when  such agency deems   collection to be  administratively  practical  and  cost-effective.  Any   collection  fee  charges assessed pursuant to this section shall be paid   upon notice and demand and shall be collected by  a  state  agency  when   such  agency  deems  collection  to  be  administratively  practical and   cost-effective. In any action brought by or on behalf of a state  agency   to  recover an outstanding debt, a demand for collection fee charges may   be set forth in the statement of damages sought.7. The state director of the budget shall promulgate  such  guidelines   as  the  director  deems  necessary  to carry out the provisions of this   section.8. The provisions of this section shall not supersede any provision of   law or regulation or contract  which  provides  for  the  imposition  of   interest  or  late  payment  or  collection  fee  charges  on  debts not   satisfied in a timely manner.9. All contracts entered into or  any  regulation  promulgated  on  or   after  the effective date of this section which waives the imposition of   interest or late payment or collection fee charges or  imposes  interest   or   late  payment  charges  or  collection  fee  charges  in  a  manner   inconsistent with this section must be approved by the state division of   the budget.10. Every  state  agency  to  which  this  section  is  applicable  is   authorized  to enter into written agreements with any debtor under which   such debtor is allowed to satisfy liability for  payment  of  any  debt,   including  any  interest imposed by this section on that portion of such   debt as to which an extension is granted, in installment payments if the   state agency determines that such agreement will  facilitate  collection   of  such  liability.  Provided  further,  that  where  such state agency   determines that immediate collection of the debt  would  jeopardize  the   debtor's  fiscal  viability  and  thereby pose a hardship to the public,   such agency shall offer to enter into a written agreement to temporarily   defer collection of the debt, collect the debt on an installment  basis,   or  make  other  reasonable  arrangements to reduce such hardship on the   public of collecting the debt.