NY State Senate Bill 2025-S2075

Current Bill Status - In Senate Committee Procurement And Contracts Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 15, 2025	referred to procurement and contracts

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2025-S2075 (ACTIVE) - Details

See Assembly Version of this Bill:: A506
Current Committee:: Senate Procurement And Contracts
Law Section:: State Finance Law
Laws Affected:: Amd §§179-q, 179-t & 179-bb, St Fin L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S8792, A9741
2023-2024: S4877, A2740

2025-S2075 (ACTIVE) - Summary

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

2025-S2075 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2075

SPONSOR: MAYER
 
TITLE OF BILL:

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

 
PURPOSE:

To require agencies with significantly delayed renewal contracts to
report on the status of delayed contracts and obstacles to contracts
being executed in a timely manner.

 
SUMMARY OF PROVISIONS:

Section one of the bill amends section 179-q of the state finance law to
define "noncompliant state agency."

Section two of the bill amends section 179-t of the state finance law to
specify what makes a state agency noncompliant.

Section three amends section 179-bb of the state finance law by provid-
ing steps noncompliant state agencies are required to take, including
reporting.

Section four amends the definition of written directive.

Section five provides the effective date.

 
JUSTIFICATION:

New York State often outsources crucial programs to non-profits, includ-
ing early childhood education programs, mental health counseling, and
shelter for the homeless. The state relies on non-profit organizations
to provide these vital social services.  However, non-profit organiza-
tions that contract with the state have expressed concerns for years
about the slow contract and procurement process. In an effort to address
these concerns, the state enacted the Prompt Contracting Law in 1991 to
help expedite contracts and reduce the fiscal stress on not for profits.
Thirty years later, the problem persists and non-profits are facing
immense financial hardships as a result.

In May of 2020, the Office of the NYS Comptroller released their "Not-
For Profit Prompt Contracting Annual Report" that found 50% of contracts
in 2019 had not been approved until after the start date of such
contracts, compared to 47% of contracts in 2018. A non-profit cannot
receive payment from the state until the contract is formally approved
by the state comptroller. So, while non-profits are required to start
providing services by the start date of their contracts, the state is
not required to pay them within the same timeframe.

In order for non-profits to begin their work, they often have to take
out lines of credit to finance their operations. The May 2020 NYS Comp-
troller report notes, "the failure of the state agencies to process
contracts on time harms not for profit service providers, which in turn
erodes service delivery to vulnerable populations." The report recom-
mends that state agencies "take responsibility for their critical roles,
and make prompt contracting a priority."
This bill seeks to address this issue by requiring state agencies to
report to the Comptroller on the status of significantly late contracts
and barriers to the agency executing contracts in a timely manner.

 
PRIOR LEGISLATIVE HISTORY:

S8792/ A9741A (2021-22): Passed Senate; Referred to Governmental Oper-
ations in Assembly

S4877A/ A2740B (2023-24): Passed Senate and Assembly; Vetoed by Gover-
nor.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S2075 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2075
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 15, 2025
                                ___________
 
 Introduced  by  Sens.  MAYER, BAILEY, COONEY, FERNANDEZ, HARCKHAM, HOYL-
   MAN-SIGAL, MAY -- read twice and ordered printed, and when printed  to
   be committed to the Committee on Procurement and Contracts
 
 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
 REGARDING  THE SUBMISSION OF SUCH REPORT TO THE NOT-FOR-PROFIT ORGANIZA-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01999-01-5

 S. 2075                             2
 
 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.

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Senate Bill S2075

Sponsored By

Current Bill Status - In Senate Committee Procurement And Contracts Committee

co-Sponsors

2025-S2075 (ACTIVE) - Details

2025-S2075 (ACTIVE) - Summary

2025-S2075 (ACTIVE) - Sponsor Memo

2025-S2075 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2075

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Sponsored By

Shelley B. Mayer

Current Bill Status - In Senate Committee Procurement And Contracts Committee

co-Sponsors

Jamaal T. Bailey

Jeremy Cooney

Nathalia Fernandez

Pete Harckham

2025-S2075 (ACTIVE) - Details

2025-S2075 (ACTIVE) - Summary

2025-S2075 (ACTIVE) - Sponsor Memo

2025-S2075 (ACTIVE) - Bill Text download pdf

Comments