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S 2203

Directs the public service commission to conduct a study and report on the feasibility of transferring utility services to an entity owned and operated by the state of New York

2025 Regular Session Introduced by Leroy Comrie and 1 co-sponsor

The bill requires state grants and contracts to nonprofits to reimburse indirect costs at NICRA rate if available, or at least 15% of MTDC otherwise.

REFERRED TO ENERGY AND TELECOMMUNICATIONS
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Bill Summary · S 2203

Summary — S.2203 (Senate Docket No. 823)

Title (in text): An Act enhancing the effectiveness of nonprofits’ core mission work through full cost funding

Note on metadata: the bill packet provided contains inconsistent metadata (alternating titles, sponsor lists that include federal senators, and conflicting referral statuses/dates). This summary is based on the bill text included in the packet (Massachusetts amendment to Chapter 29, section 6BB) — please verify official docket records for final bill title, sponsors, and current status.

Purpose / Intent

The bill requires Massachusetts state grant and contract awards to nonprofit organizations to provide reimbursement for indirect (overhead) costs, aligning state practice more closely with federal cost-reimbursement principles. The intent is to strengthen nonprofit financial stability by ensuring state-funded service contracts and grants cover a fuller share of an organization’s operating costs.

Key provisions

  • Adds Section 6BB to Chapter 29 of the Massachusetts General Laws.
  • Definitions:
    • “Indirect costs” — as defined by 2 C.F.R. §200.414 (OMB Uniform Guidance).
    • “NICRA” — Negotiated Indirect Cost Rate Agreement between a nonprofit and the federal government.
    • “Nonprofit organization” — organizations tax-exempt under IRC §§501(c)(3), (4), or (6).
    • “OMB uniform guidance” — federal 2 C.F.R. Part 200 and related OMB guidance.
  • Reimbursement requirements for nonprofits that are direct recipients or subrecipients of grants or contracts funded wholly by state funds or by state + other non-federal funds:
    1. If the nonprofit currently has an unexpired NICRA, the state must reimburse indirect costs at the same NICRA rate.
    2. If the nonprofit does not have a NICRA, reimbursement must be at least 15% of costs that would be considered Modified Total Direct Costs (MTDC) under OMB uniform guidance; alternatively, the nonprofit may negotiate a new percentage indirect cost rate with the Executive Office of Administration and Finance (EOAF) following EOAF guidelines.
  • The reimbursement requirement applies whether state funds are paid directly to the nonprofit or routed through a third party.

Who is affected

  • Directly: nonprofit organizations (501(c)(3), (4), (6)) receiving state grants or contracts, including subrecipients of state-funded programs.
  • Indirectly: state agencies, quasi-public entities, and intermediaries that issue or administer state-funded contracts/grants to nonprofits — they must include indirect cost reimbursement terms in awards.
  • Fiscal impact could affect the Commonwealth’s grant budgets and administrative processes.

Potential impacts and considerations

  • Benefits:
    • Improves nonprofit sustainability by covering a standardized share of overhead.
    • Reduces cost-shifting onto program dollars, donors, or volunteer resources.
    • Encourages consistency with federal grant cost principles.
  • Costs/administration:
    • Increased state expenditures to cover higher reimbursable overhead costs.
    • Administrative workload for EOAF to establish procedures and to negotiate rates where nonprofits lack a NICRA.
    • Need for agencies and passthrough entities to update contracts and grant templates.
  • Equity: ensures subrecipients and subcontracted nonprofits also eligible for indirect cost reimbursement.

Procedural status (from provided records — verify official source)

  • Filed as Senate Docket No. 823 (1/14/2025) by Senator Pavel M. Payano.
  • Referred to State Administration and Regulatory Oversight (multiple entries indicating referral).
  • Hearings scheduled (provided dates point to hearings on 11/05/2025).
  • Reported favorably by committee and referred to Senate Ways & Means (11/24/2025 in packet).
  • Note: the packet also lists inconsistent actions and referrals (e.g., “REFERRED TO ENERGY AND TELECOMMUNICATIONS” and federal-level bill titles). Confirm current official status with the Massachusetts Legislature website or clerk’s office.

If you’d like, I can:
- Pull the official Massachusetts legislative history & current status for S.2203; or
- Draft recommended contract clause language that would implement the bill’s reimbursement rules.

Compiled from official sources — confirm details with the bill’s official record.

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