S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    506
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  M. of A. PAULIN, SIMONE, SIMON, RAGA, HEVESI, LEVENBERG,
   SAYEGH, BURDICK, SHIMSKY, OTIS, GIBBS, TAYLOR, ZACCARO, DAVILA -- read
   once and referred to the Committee on Governmental Operations
 
 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:
 
   Section 1. Section 179-q of the state finance law is amended by adding
 a new subdivision 15 to read as follows:
   15. "NONCOMPLIANT STATE AGENCY" MEANS A STATE AGENCY THAT  HAS  FAILED
 TO EXECUTE CERTAIN CONTRACTS WITHIN REQUIRED TIME FRAMES.
   § 2. Section 179-t of the state finance law is amended by adding a new
 subdivision 4-a to read as follows:
   4-A.  A STATE AGENCY SHALL BE DEEMED TO BE NONCOMPLIANT IF, FOR SIX OF
 THE LAST TWELVE PRECEDING MONTHS,  IT  HAS  (A)  FAILED  TO  SUBMIT  ANY
 RENEWAL CONTRACTS TO THE ATTORNEY GENERAL WITHIN THE TIME FRAME REQUIRED
 BY  SUBDIVISION  FOUR  OF THIS SECTION WHEN NOT-FOR-PROFIT ORGANIZATIONS
 ARE PARTIES TO SUCH CONTRACTS AND A WRITTEN DIRECTIVE HAS  BEEN  ISSUED,
 (B) FAILED TO SUBMIT ANY RENEWAL CONTRACTS TO THE ATTORNEY GENERAL PRIOR
 TO  COMMENCEMENT  WHEN  NOT-FOR-PROFIT ORGANIZATIONS ARE PARTIES TO SUCH
 CONTRACTS, AND/OR (C) IN ANY OTHER MANNER  FAILED  TO  FULLY  EXECUTE  A
 CONTRACT BEFORE ITS START DATE.
   §  3.   Section 179-bb of the state finance law is amended by adding a
 new subdivision 4 to read as follows:
   4. (A) A NONCOMPLIANT STATE AGENCY SHALL PREPARE AND TRANSMIT  TO  THE
 OFFICE  OF THE STATE COMPTROLLER, BY THE END OF EVERY MONTH FOR WHICH IT
 IS NONCOMPLIANT, A REPORT ADDRESSING THOSE RENEWAL CONTRACTS WHICH  HAVE
 NOT  BEEN  SUBMITTED  TO  THE  ATTORNEY  GENERAL  WITHIN  THE TIME FRAME
 REQUIRED BY SUBDIVISION FOUR OF SECTION ONE  HUNDRED  SEVENTY-NINE-T  OF
 THIS  ARTICLE.  IN  ADDITION,  SUCH  AGENCY  SHALL  PROVIDE NOTIFICATION
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01999-01-5
 A. 506                              2
 
 REGARDING THE SUBMISSION OF SUCH REPORT TO THE NOT-FOR-PROFIT  ORGANIZA-
 TION  IT  IS  CONTRACTING  WITH.  SUCH  REPORT  SHALL  (I)  DESCRIBE THE
 CONTRACTS THAT HAVE NOT BEEN SUBMITTED,  (II)  DETAIL  THE  REASONS  THE
 CONTRACT  HAS  NOT  BEEN SUBMITTED, (III) DETAIL THE STEPS THE AGENCY IS
 TAKING TO SUBMIT AND FULLY EXECUTE THE CONTRACT,  AND  (IV)  PROVIDE  AN
 ESTIMATE  OF  WHEN  IT  SHALL SUBMIT AND FULLY EXECUTE THE CONTRACT. THE
 AGENCY SHALL ALSO MAKE SUCH REPORTS PUBLICLY ACCESSIBLE ON ITS WEBSITE.
   (B) WITHIN SIX MONTHS OF BECOMING A NONCOMPLIANT  STATE  AGENCY,  SUCH
 AGENCY  SHALL  PREPARE  AND  TRANSMIT  TO  THE OFFICE OF THE STATE COMP-
 TROLLER, THE TEMPORARY PRESIDENT OF THE SENATE, AND THE SPEAKER  OF  THE
 ASSEMBLY,  A  REPORT DESCRIBING ITS EFFORTS TO BECOME COMPLIANT WITH THE
 REQUIREMENTS OF SECTION ONE HUNDRED SEVENTY-NINE-T OF THIS ARTICLE. SUCH
 REPORT SHALL DESCRIBE IN DETAIL EFFORTS TO REVISE INTERNAL POLICIES  AND
 PROCEDURES,   IDENTIFY  BOTTLENECKS  AND  OTHER  BARRIERS  TO  EFFICIENT
 CONTRACTING, RETRAIN STAFF AND MANAGEMENT, INCORPORATE IMPROVED  MANAGE-
 MENT PRACTICES, REFORM PROCUREMENT PROCESSES, AND ANY OTHER FACTOR WHICH
 WILL  ENABLE  THE AGENCY TO MEET THE REQUIREMENTS OF SECTION ONE HUNDRED
 SEVENTY-NINE-T OF THIS ARTICLE AS RELATED  TO  NOT-FOR-PROFIT  ORGANIZA-
 TIONS.  THE  AGENCY SHALL ALSO PREPARE AND DELIVER UPDATED REPORTS EVERY
 SIX MONTHS AFTER  THE  DELIVERY  OF  THE  FIRST  REPORT  DESCRIBING  THE
 PROGRESS  IT HAS MADE. SUCH REPORTS SHALL ALSO BE POSTED ON THE AGENCY'S
 WEBSITE.
   § 4. Subdivision 14 of section 179-q of  the  state  finance  law,  as
 added by chapter 166 of the laws of 1991, is amended to read as follows:
   14. "Written directive" means a written request by a state agency to a
 not-for-profit  organization  authorizing  such  organization  either to
 begin providing services during the negotiation  of  a  contract  or  to
 continue   providing  services  during  the  negotiation  of  a  renewal
 contract. All written  directives  shall  state  that  payment  for  the
 services  provided  is  subject  to the availability of appropriations[,
 execution of either the contract or renewal contract,  and  approval  of
 the  contract  or  renewal  contract by the comptroller and the attorney
 general].  ALL WRITTEN DIRECTIVES SHALL ALSO INCLUDE THE STATE'S PAYMENT
 SCHEDULE, WHICH WILL REMAIN IN EFFECT UNTIL A CONTRACT IS APPROVED.  ANY
 LATE  PAYMENTS  FROM  THE STATE BASED ON THE SCHEDULE WILL BE SUBJECT TO
 INTEREST.
   § 5. This act shall take effect immediately.