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Bill

S 9761

Relates to contracts between state agencies and not-for-profit organizations

2025 Regular Session Introduced by Shelley Mayer and 1 co-sponsor

Streamlines state-NFP contracts by enabling pre-approved interim services, defined approval timelines, a short-term revolving loan fund, and a 16-member advisory committee.

REFERRED TO WAYS AND MEANS
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Bill Summary · S 9761

Overview

Bill: S09761 (Session 2025-2026, New York)
Title: Relates to contracts between state agencies and not-for-profit organizations
Purpose: Reform and streamline contracting between state agencies and not-for-profit (NFP) organizations, including renewal/extension contracts, pre-approval steps, directed early service start, a short-term revolving loan fund for NFPs, and an advisory committee to oversee and improve contracts with NFPs.

Main goals and intent

  • Clarify and expand definitions around renewal contracts and written directives to ensure continuity of services during contract negotiations.
  • Establish a structured approval pipeline (Attorney General and Comptroller review) for new, renewal, and extension contracts.
  • Allow pre-approval directives enabling NFPs to begin or continue services before full contract execution, with clear payment and access to interim funds.
  • Create a Not-for-Profit Short-Term Revolving Loan Fund to provide interest-free or favorable loans to NFPs under written directives.
  • Create an advisory committee to monitor, evaluate, and improve contracting practices with NFPs receiving state funds, including reporting and transparency requirements.

Key provisions and changes

  1. Definitions and contract flexibility

    • Renewal contract: Includes documents to continue an existing contract and new contracts for similar services with the same agency.
    • Written directive: State agency request allowing an NFP to begin or continue services during contract negotiation, with:
      • Invoicing schedules and payment dates
      • Payment conditioned on appropriations, contract execution/approval by AG and Comptroller
      • Instructions on accessing the NFP revolving loan fund

  2. Contract timing and approvals

    • Agencies have up to 150 days after appropriations become law to execute contracts with NFPs under the program plan.
    • After execution, contracts go to the Attorney General for approval within 15 days, then to the Comptroller for approval within 15 days if AG approves.
    • Provisions for early service start via written directives, including payment and invoicing schedules.

  3. Not-for-Profit Short-Term Revolving Loan Fund

    • Comptroller may provide loans to NFPs receiving a written directive.
    • Loans are non-interest-bearing, may be prorated over the contract term (up to 1 year), and capped at an amount equal to the full payment of the contract (specifically, “not exceed [one-half of the first quarter] the full payment of the subject contract,” language that may need interpretation in the final bill).
    • Recipients of loans are ineligible for state advances or interest accrual related to the loan.
    • Clear access instructions and public postings on the Comptroller and NYS Nonprofit Unit websites.

  4. Advisory committee

    • Establishes a 16-member committee: 8 not-for-profit representatives (4 appointed by the Governor; 2 each appointed by the Temporary President of the Senate and Speaker of the Assembly) and 8 ex officio members from state agencies and divisions (e.g., Budget, Law, Comptroller, Education).
    • Chair designated by the Governor.
    • Responsibilities include:
      • Monitoring the revolving loan fund and overall implementation
      • Advising on contracts, standards, and financial systems
      • Reviewing and proposing improvements to contracting procedures, especially for contracts via municipalities
      • Annual reporting due by December 1 to the Comptroller, Attorney General, Governor, and Legislature, with public posting

  5. Contracting standards and payment rules

    • Revisions to 179-f provisions to allow timely payment and clarify procedures for defects, improper invoicing, and related triggers.
    • Agencies must notify contractors of defects or improprieties within specified timeframes (15 days for general invoices, 7 days for small businesses), with adjustments to payment timing if defects/improprieties are identified.
    • Scrivener’s and minor rounding errors under certain thresholds are not considered material defects.

Who and what is affected

  • State agencies that contract with not-for-profit organizations.
  • Not-for-profit organizations receiving state funding and/or operating under directives during contract negotiations.
  • The Not-for-Profit Short-Term Revolving Loan Fund program managed by the State Comptroller.
  • The Not-for-Profit Contracting Advisory Committee (16 members, including not-for-profit and state personnel).
  • Public and private stakeholders relying on consistent service delivery from NFPs funded by state programs.

Procedural and timeline aspects

  • Effective date: 180 days after enactment.
  • Contract approvals: AG approval within 15 days of receipt; Comptroller approval within 15 days after AG approval.
  • Renewal/extension framework aligned with prior contract terms and services.
  • Written directives govern interim service and payment arrangements, including access to the revolving loan fund.
  • Advisory committee to report annually by December 1 and post findings publicly.

Potential impacts

  • Improves continuity of services by allowing pre-approved interim service delivery during procurement negotiations.
  • Could speed up contract finalization with a defined approval timeline (AG and Comptroller).
  • Provides financial bridging via an NFP revolving loan fund, reducing cash-flow risk for NFPs during contract negotiations.
  • Introduces structured oversight and transparency through an advisory committee and public reporting.
  • Aims to standardize contracting language and procedures across agencies, potentially reducing administrative fragmentation.

Note: Some dollar figures in the bill (e.g., loan amount expressions) are stated with brackets indicating interpretation may be refined in the final enacted language.

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

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