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Bill

Bill

A 6573

Relates to enacting the "get nonprofits paid act"

2025 Regular Session Introduced by Jenifer Rajkumar

The "Get Nonprofits Paid Act" ensures timely payments to nonprofits from government contracts, boosting their stability and service quality for communities.

REFERRED TO CITIES
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WeVote Research Nonpartisan
Bill Summary · A 6573

Summary of Bill A 6573: "Get Nonprofits Paid Act"

Bill Number: A 6573
Introduced On: March 06, 2025
Current Status: Referred to Cities
Classification: Bill

Purpose and Intent

The "Get Nonprofits Paid Act" aims to address the financial challenges faced by nonprofit organizations when providing services under contracts with government entities. The bill seeks to ensure timely payments to nonprofits for the services they deliver, thereby enhancing their operational stability and capacity to serve communities effectively.

Key Provisions

The bill includes several important provisions designed to streamline payment processes for nonprofits:

  • Timely Payment Requirement: Government agencies contracting with nonprofits will be mandated to process payments within a specified timeframe after services are rendered. This is intended to reduce the financial strain on nonprofits that often face delays in receiving funds.

  • Standardized Payment Procedures: The legislation proposes the establishment of standardized procedures for invoicing and payment processing to ensure consistency across various government agencies.

  • Reporting and Accountability: Nonprofits will be required to report on their payment experiences, which will help identify systemic issues and improve the payment process over time.

  • Penalties for Non-Compliance: The bill outlines potential penalties for government agencies that fail to meet the payment deadlines, thereby incentivizing adherence to the new regulations.

Who Would Be Affected

  • Nonprofit Organizations: The primary beneficiaries of this legislation will be nonprofit organizations that provide essential services, including but not limited to healthcare, education, and social services.

  • Government Agencies: Local and state government agencies that contract with nonprofits will need to adapt their payment processes to comply with the new requirements.

  • Communities Served by Nonprofits: By ensuring that nonprofits receive timely payments, the act aims to enhance the quality and availability of services provided to communities, ultimately benefiting the public.

Procedural Aspects

  • Current Status: As of March 06, 2025, the bill has been referred to the Cities committee for further consideration.

  • Next Steps: The committee will review the bill, and if approved, it will move forward in the legislative process, which may include additional hearings, amendments, and votes before potentially becoming law.

Conclusion

The "Get Nonprofits Paid Act" represents a significant step towards improving the financial health of nonprofit organizations by ensuring they receive timely compensation for their services. By addressing payment delays and establishing clear procedures, the bill aims to strengthen the nonprofit sector and enhance service delivery to communities.

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

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