Bill Text: NY A02740 | 2023-2024 | General Assembly | Amended

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Bill Title: Defines noncompliant state agency; provides for timelines and procedures for state agency contracts involving not-for-profit corporations.

Spectrum: Partisan Bill (Democrat 18-0)

Status: (Engrossed) 2024-06-05 - RETURNED TO ASSEMBLY [A02740 Detail]

Download: New_York-2023-A02740-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         2740--B

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 27, 2023
                                       ___________

        Introduced  by  M.  of  A. PAULIN, WALLACE, SIMONE, SIMON, LAVINE, RAGA,
          HEVESI, LEVENBERG, SAYEGH,  BURDICK,  SHIMSKY,  OTIS,  BURGOS,  GIBBS,
          TAYLOR,  ZACCARO,  DAVILA,  McDONALD  -- read once and referred to the
          Committee on Governmental Operations -- recommitted to  the  Committee
          on  Governmental Operations in accordance with Assembly Rule 3, sec. 2
          -- committee discharged, bill amended, ordered  reprinted  as  amended
          and  recommitted  to  said  committee  -- reported and referred to the
          Committee on Codes -- reported and referred to the Committee  on  Ways
          and  Means -- committee discharged, bill amended, ordered reprinted as
          amended and recommitted to said committee

        AN ACT to amend the state finance  law,  in  relation  to  state  agency
          contracts with not-for-profit corporations

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 179-q of the state finance law is amended by adding
     2  a new subdivision 15 to read as follows:
     3    15. "Noncompliant state agency" means a state agency that  has  failed
     4  to execute certain contracts within required time frames.
     5    § 2. Section 179-t of the state finance law is amended by adding a new
     6  subdivision 4-a to read as follows:
     7    4-a.  A state agency shall be deemed to be noncompliant if, for six of
     8  the last twelve preceding months,  it  has  (a)  failed  to  submit  any
     9  renewal contracts to the attorney general within the time frame required
    10  by  subdivision  four  of this section when not-for-profit organizations
    11  are parties to such contracts and a written directive has  been  issued,
    12  (b) failed to submit any renewal contracts to the attorney general prior
    13  to  commencement  when  not-for-profit organizations are parties to such
    14  contracts, and/or (c) in any other manner  failed  to  fully  execute  a
    15  contract before its start date.
    16    §  3.   Section 179-bb of the state finance law is amended by adding a
    17  new subdivision 4 to read as follows:

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05711-04-4
        A. 2740--B                          2

     1    4. (a) A noncompliant state agency shall prepare and transmit  to  the
     2  office  of the state comptroller, by the end of every month for which it
     3  is noncompliant, a report addressing those renewal contracts which  have
     4  not  been  submitted  to  the  attorney  general  within  the time frame
     5  required  by  subdivision  four of section one hundred seventy-nine-t of
     6  this article.  In  addition,  such  agency  shall  provide  notification
     7  regarding  the submission of such report to the not-for-profit organiza-
     8  tion it  is  contracting  with.  Such  report  shall  (i)  describe  the
     9  contracts  that  have  not  been  submitted, (ii) detail the reasons the
    10  contract has not been submitted, (iii) detail the steps  the  agency  is
    11  taking  to  submit  and  fully execute the contract, and (iv) provide an
    12  estimate of when it shall submit and fully  execute  the  contract.  The
    13  agency shall also make such reports publicly accessible on its website.
    14    (b)  Within  six  months of becoming a noncompliant state agency, such
    15  agency shall prepare and transmit to  the  office  of  the  state  comp-
    16  troller,  the  temporary president of the senate, and the speaker of the
    17  assembly, a report describing its efforts to become compliant  with  the
    18  requirements of section one hundred seventy-nine-t of this article. Such
    19  report  shall describe in detail efforts to revise internal policies and
    20  procedures,  identify  bottlenecks  and  other  barriers  to   efficient
    21  contracting,  retrain staff and management, incorporate improved manage-
    22  ment practices, reform procurement processes, and any other factor which
    23  will enable the agency to meet the requirements of section  one  hundred
    24  seventy-nine-t  of  this  article as related to not-for-profit organiza-
    25  tions. The agency shall also prepare and deliver updated  reports  every
    26  six  months  after  the  delivery  of  the  first  report describing the
    27  progress it has made. Such reports shall also be posted on the  agency's
    28  website.
    29    §  4.  Subdivision  14  of  section 179-q of the state finance law, as
    30  added by chapter 166 of the laws of 1991, is amended to read as follows:
    31    14. "Written directive" means a written request by a state agency to a
    32  not-for-profit organization  authorizing  such  organization  either  to
    33  begin  providing  services  during  the  negotiation of a contract or to
    34  continue  providing  services  during  the  negotiation  of  a   renewal
    35  contract.  All  written  directives  shall  state  that  payment for the
    36  services provided is subject to  the  availability  of  appropriations[,
    37  execution  of  either  the contract or renewal contract, and approval of
    38  the contract or renewal contract by the  comptroller  and  the  attorney
    39  general].  All written directives shall also include the state's payment
    40  schedule,  which will remain in effect until a contract is approved. Any
    41  late payments from the state based on the schedule will  be  subject  to
    42  interest.
    43    § 5. This act shall take effect immediately.