Bill Text: NY S09855 | 2025-2026 | General Assembly | Amended

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Bill Title: Relates to requirements associated with contracts between state agencies and not-for-profit organizations including an advance payment of 25% of the total award to cover expenses incurred in the first quarter.

Sponsorship: Partisan Bill (Democrat 2)

Status: (Engrossed) 2026-06-01 - referred to ways and means [S09855 Detail]

Download: New_York-2025-S09855-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         9855--A

                    IN SENATE

                                      April 8, 2026
                                       ___________

        Introduced  by  Sens. MAYER, WEBB -- read twice and ordered printed, and
          when printed to be committed  to  the  Committee  on  Procurement  and
          Contracts  -- committee discharged, bill amended, ordered reprinted as
          amended and recommitted to said committee

        AN ACT to amend the state finance law, in relation to requirements asso-
          ciated with contracts between state agencies and not-for-profit organ-
          izations

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

     1    Section 1. Section 179-u of the state finance law, as added by chapter
     2  166 of the laws of 1991, is amended to read as follows:
     3    §  179-u.  Advance  payments. 1.   When a state agency administering a
     4  contract enters a new contract with a  not-for-profit  organization  and
     5  funds  have  been  appropriated,  the agency shall provide within thirty
     6  days of executing the contract an advance payment of an amount equal  to
     7  twenty-five  percent  of  the total award to cover expenses incurred and
     8  services provided in the first quarter.
     9    2. When a state agency administering a contract [shall advise] advises
    10  the not-for-profit organization of the agency's intention  to  renew  or
    11  extend the contract, [the not-for-profit organization, may, upon receipt
    12  of  a  written  directive,  be  entitled  to an] and the funds have been
    13  appropriated, the agency shall either fully  execute  such  contract  or
    14  shall  issue  a  written directive prior to the commencement date of the
    15  succeeding contract. In either case, the agency shall  issue,  prior  to
    16  the  commencement date of the succeeding contract, an advance payment of
    17  an amount equal to twenty-five percent  of  the  total  award  to  cover
    18  expenses  incurred  and  services  provided in the first quarter pending
    19  execution of the renewal or extension contract [if such contract is  not
    20  fully  executed by the commencement date of the succeeding contract; the
    21  written directive shall specifically set forth the dollar amount and the
    22  period of time covered by the advance payment]. Such  advance  [payment]
    23  payments  shall  offset  future  payments  due  to  the organization for
    24  services provided during the term of the prospective renewal  or  exten-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15448-03-6
        S. 9855--A                          2

     1  sion contract and shall not exceed the maximum contract amount set forth
     2  in said renewal or extension contract.
     3    [2.] 3. A state agency providing an advance payment pursuant to subdi-
     4  vision  one  or  two of this section shall submit a written directive, a
     5  voucher and such other documents as may be required to  the  comptroller
     6  for approval.
     7    4.  Such  advance  payments  shall not be required if funding for such
     8  contract includes federal funding and the terms or  conditions  of  such
     9  federal funding prohibit such advance payments.
    10    §  2.  Subdivision  3  of  section 179-ee of the state finance law, as
    11  added by section 38 of part L of chapter 55 of  the  laws  of  2012,  is
    12  amended and a new subdivision 4 is added to read as follows:
    13    3.  A  modification  to  a contract that would result in a transfer of
    14  funds among program activities or budget cost categories  but  does  not
    15  affect  the amount, consideration, scope or other terms of such contract
    16  shall not, by itself, require  such  contract  and  modification  to  be
    17  submitted  to  the  comptroller for review; provided, however, where the
    18  amount of such modification is, as a portion of the total value  of  the
    19  contract,  equal  to  or  greater than ten percent for contracts of less
    20  than five million dollars, or five percent for contracts  of  more  than
    21  five million dollars, the comptroller may require that such modification
    22  be submitted to [him or her] such comptroller for review.  All modifica-
    23  tions  that  do  not require comptroller review shall be approved within
    24  sixty days, and all modifications that require comptroller review  shall
    25  be  approved  within  ninety days. When a contractor submits their final
    26  vouchers or invoice, if such  voucher  or  invoice  would  result  in  a
    27  modification  between  budget  categories  of, as a portion of the total
    28  value of the contract, equal to or lesser than ten percent for contracts
    29  of less than five million dollars, or five percent for contracts of more
    30  than five million dollars, then the agency may consider the  voucher  or
    31  invoice  a request for contract modification and may process the modifi-
    32  cation as such.
    33    4. Notwithstanding any other provisions of this  article,  de  minimus
    34  indirect  costs  shall  be  included  in all not-for-profit organization
    35  contracts with state agencies.  Provided, however, such de minimus indi-
    36  rect costs shall not be included if funding for such  contract  includes
    37  federal  funding  and  the  terms  or conditions of such federal funding
    38  prohibit the inclusion of such costs.
    39    § 3. This act shall take effect on the one hundred eightieth day after
    40  it shall have become a law.