S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9317
 
                           I N  A S S E M B L Y
 
                             February 29, 2024
                                ___________
 
 Introduced by M. of A. ZINERMAN -- read once and referred to the Commit-
   tee on Governmental Operations
 
 AN  ACT  to amend the state finance law, in relation to providing timely
   and up-front payments from the state to  small  not-for-profit  corpo-
   rations  and  enabling  the  competitiveness of smaller not-for-profit
   corporations serving the state

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Legislative findings. The Legislature acknowledges the New
 York Council of Nonprofits' first State of the  Sector  and  finds  that
 small  not-for-profit corporations in the State of New York are struggl-
 ing to attract new talent, make timely payments, and cover their  annual
 operating  expenses, further exacerbated by financial difficulties stem-
 ming from the shifting post-pandemic economic landscape.  Inflation  and
 labor  shortages  have  harmed  the  not-for-profit  community  in  ways
 disproportionate to  the  for-profit  community.  In  particular,  these
 economic  trends  have  harmed  small  not-for-profit  corporations more
 acutely than larger not-for-profit corporations.
   The purpose of this legislation is to address that gap by altering the
 structure and schedule of payments from the state to small  not-for-pro-
 fit corporations, helping them to better adapt their budgets and expend-
 itures  and  compete  more  effectively  with larger, better-capitalized
 not-for-profit corporations who can  more  easily  absorb  large  costs.
 Uncertain  budgeting  for  not-for-profit  corporations  results in less
 action, unstable employment, less clarity with timelines, general stress
 and anguish for employees, and more. Helping small not-for-profit corpo-
 rations budget better will help the entire economy and society.
   § 2. Section 179-e of the state finance law is amended by adding a new
 subdivision 11 to read as follows:
   11. "SMALL NOT-FOR-PROFIT CORPORATION" MEANS ANY NOT-FOR-PROFIT CORPO-
 RATION, AS DEFINED BY SECTION ONE  HUNDRED  TWO  OF  THE  NOT-FOR-PROFIT
 CORPORATION  LAW,  WHOSE ANNUAL BUDGET IS ONE MILLION FIVE HUNDRED THOU-
 SAND DOLLARS OR LESS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13764-01-3
              

 A. 9317                             2
 
   § 3. Section 179-t of the state finance law is amended by  adding  two
 new subdivisions 6 and 7 to read as follows:
   6.  EVERY CALENDAR YEAR, ON OR BEFORE JANUARY THIRTY-FIRST, THE ATTOR-
 NEY GENERAL SHALL PUBLISH A LIST OF NOT-FOR-PROFIT CORPORATIONS IN  GOOD
 STANDING  WITH THE STATE AND ELIGIBLE TO RECEIVE FUNDING FROM THE STATE.
 SUCH LIST SHALL BE CONSTRUCTED BASED UPON THE  COMPLIANCE  PAPERWORK  OF
 NOT-FOR-PROFIT  CORPORATIONS  SUBMITTED  FOR THE PREVIOUS CALENDAR YEAR.
 FOR NOT-FOR-PROFIT CORPORATIONS WHO SUBMIT  THEIR  COMPLIANCE  PAPERWORK
 AFTER  JANUARY THIRTY-FIRST AND BEFORE APRIL FIRST, THE ATTORNEY GENERAL
 SHALL PUBLISH ADDENDUMS TO SAID  LIST  INCLUDING  NOT-FOR-PROFIT  CORPO-
 RATIONS  THAT  ARE IN GOOD STANDING AND ELIGIBLE TO RECEIVE FUNDING FROM
 THE STATE. ANY AGENCY EXECUTING  CONTRACT  RENEWALS  FOR  NOT-FOR-PROFIT
 CORPORATIONS  ON  SUCH LIST SHALL NOT BE REQUIRED TO SUBMIT SAID RENEWAL
 CONTRACT TO THE COMPTROLLER FOR REVIEW.
   7. (A) NOTWITHSTANDING THE TIME FRAME REQUIREMENTS SET FORTH  IN  THIS
 SECTION,  A  STATE  AGENCY ADMINISTERING A CONTRACT RENEWAL WITH A SMALL
 NOT-FOR-PROFIT CORPORATION AS DEFINED IN THIS ARTICLE  SHALL  MAKE  BEST
 EFFORTS TO ENSURE THE DISBURSEMENT OF MONEYS TO THE SMALL NOT-FOR-PROFIT
 CORPORATION  WITHIN  SIXTY  DAYS AFTER THE AGENCY RECEIVES THE APPROPRI-
 ATION OR FUNDING FOR THE CONTRACT UNLESS THE AGENCY RECEIVES THE FUNDING
 MORE THAN SIXTY DAYS BEFORE THE EFFECTIVE DATE OF THE CONTRACT.  IF  THE
 AGENCY  RECEIVES  THE APPLICABLE FUNDING MORE THAN SIXTY DAYS BEFORE THE
 EFFECTIVE DATE OF THE CONTRACT, THE AGENCY SHALL DISBURSE THE  MONEY  TO
 THE  SMALL NOT-FOR-PROFIT CORPORATION PRIOR TO THE EFFECTIVE DATE OF THE
 CONTRACT. THE AGENCY SHALL DISBURSE THE ENTIRE SUM OF MONEY IN A  SINGLE
 DISBURSEMENT.
   (B) A SMALL NOT-FOR-PROFIT CORPORATION MAY OPT NOT TO RECEIVE FUNDS IN
 A  SINGLE  DISBURSEMENT  BY  ATTACHING A STATEMENT WITH THEIR COMPLIANCE
 PAPERWORK REQUESTING PAYMENT UNDER THE PROVISIONS OF THIS CHAPTER  WHICH
 WOULD OTHERWISE BE APPLICABLE.
   (C)  SMALL  NOT-FOR-PROFIT  CORPORATIONS  WHICH  DO  NOT RECEIVE THEIR
 CONTRACTUAL DISBURSEMENTS WITHIN THE TIME FRAMES PROVIDED BY THIS SUBDI-
 VISION MAY PETITION THE CONTRACTING AGENCY TO DISBURSE ANY  MONEYS  OWED
 WITHIN TWENTY DAYS OF RECEIPT OF SUCH PETITION. IF THE CONTRACTING AGEN-
 CY  HAS NOT DISBURSED SUCH MONEYS WITHIN TWENTY DAYS, THE SMALL NOT-FOR-
 PROFIT CORPORATION AFFECTED MAY BRING AN ARTICLE SEVENTY-EIGHT  PROCEED-
 ING  IN  A  COURT OF COMPETENT JURISDICTION TO ENFORCE SUCH CONTRACT AND
 THE PROVISIONS OF THIS ARTICLE.
   § 4. This act shall take effect on the first of January next  succeed-
 ing the date on which it shall have become a law.