The provisions of this article shall not apply to payments due and owing by the state: 1. under the eminent domain procedure law; 2. as interest allowed on judgments rendered by a court pursuant to any provision of law other than those provisions contained in this article; 3. to the federal government; to any state agency or its related instrumentalities; to any duly constituted unit of local government including, but not limited to, counties, cities, towns, villages, school districts, special districts, or any of their related instrumentalities; to any public authority or public benefit corporation; or to employees of state agencies when acting in, or incidental to, their public employment capacity; 4. to contractors of third party payment agreements including, but not limited to, the fiscal agent or fiscal intermediary designated pursuant to section three hundred sixty-seven-b of the social services law; 5. to entities which receive state funds through any intermediary organization other than a state agency; or 6. in situations where the comptroller exercises a legally authorized set-off against all or part of the payment due the tate funds through any intermediary organization other than a state agency; or 6. in situations where the comptroller exercises a legally authorized set-off against all or part of the payment due the contractor.
New York Legal Code