Relates to contracts between state agencies and not-for-profit organizations; repeals a provision of the state finance law relating thereto

Latest action Dec 5, 2025

Relates to provisions governing contracting between state agencies and not-for-profit organizations including new, renewal, and extension contracts and advance payments and interest for such contracts; repeals provisions relating to interest payments.

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Where it stands

Rejected by the executive.

Introduced
In committee
Up for a vote
Passed one chamber
Passed
Enacted

Vetoed

New York State Senate

Same as A7616, the matching bill in the Assembly.

Amends the State Finance Law.

Committee

Governmental Operations · New York State Assembly

Also referred to Procurement And Contracts · New York State Senate, Ways and Means · New York State Assembly.

Purpose, from the sponsor's memo

Section 1 amends subdivisions 9 and 14 of section 179-q of the state finance law to include within the definition of "renewal contract" a new contract providing similar services delivered under a previous contract and to amend the definition of "written directive" to require the inclu- sion of a schedule of invoices and payments within the written directive and to require written directives to include instructions on how to access the not-for-profit short term revolving loan fund program. Section 2 amends subdivision 1 of section 179-s of the state finance law to establish rules for when an agency requests that a not-for-profit commence services prior to execution of a contract, including, estab- lishing a work and payment schedule, and requiring late payments be subject to interest. Section 3 amends subdivisions 1, 2, 3, and 4 of section 179-u of the state finance law to establish automatic advance payments after a contract has been executed and to establish rules for advance payments, including the creation of a written directive, when the execution of a contract is delayed more than 30 days. Section 4 repeals subdivision 7 and amends subdivisions 1 and 2 of section 179-v of the state finance law to remove the ability of a state agency and a not-for-profit to waive interest due; to require all inter- est due to a not-for-profit be paid in full with the first payment made to the not-for-profit; and to establish that interest due shall be at the current prime interest rate. Section 5 amends subdivisions 1 and 4, and adds a new subdivision '5 to section 179-z of the state finance law to increase the maximum loan amount from one-half of the first quarter payment to the full contract amount and to require that information on the revolving loan funds be provided to every not-for-profit that receives a written directive, contract, or renewal contract. Section 6 amends section 179-aa of the state finance law to require the not-for-profit advisory committee to comment and report on the not-for- profit revolving loan fund and to require that the advisory committee reports be made available to the public via the web. Section 7 amends subdivision 3 and adds new subdivisions 4 and 5 to section 179-ee of the state finance law to establish a time period for approval of contract modifications and to require that modification be deemed approved when a state agency fails to respond to a request for modification; to establish that the minimum indirect cost for a not-for- profit be 15%; and to define certain expenses as direct expenses. Section 8 amends paragraphs (a) and (e) of subdivision 2, and subdivi- sion 3 of section 179-f of the state finance law to clarify that contractors who do not receive advances may pay subcontractors after receipt of payment on an invoice and to clarify that stop the clock notifications should only be used for material defects, not scrivener's or rounding errors. Section 9 sets the effective date.

Filed with the bill. Read it on nysenate.gov (opens in a new tab)

Recorded votes

Vote: Floor vote
NY SenateJun 11, 2025Result: passed
(59) (0) (0) (4)
Vote: Committee vote · Procurement And Contracts
Senate Procurement And ContractsMay 13, 2025Result: passed
(7) (0) (0) (0)

Cosponsors

Brian Maher, Dana Levenberg and 13 more on Agora

Democratic13
Republican2

Show all 15 on Agora

See the full list on nysenate.gov

The sponsor's argument

Why Shelley Mayer says this is needed

New York State has long contracted with not-for-profits to provide crit- ical services in communities throughout the state - from early childhood education and mental health services to homeless housing programs and substance abuse treatment. These social safety net services are provided as an "extension of the state" to millions of New Yorkers every day. But delays in receiving funds to provide such services and a cumbersome contractual process have long challenged not-for-profits. A recent statewide survey of not-for-profits found that 33% of those awarded state funds reported being owed more than $58 million in payments by New York State for services already delivered. Using these findings for all contracts held by nonprofits, New York State owes nonprofits an esti- mated $650 million statewide. Delays in reimbursement regularly last months and can sometimes last more than a year. Not-for-profits are often forced to pay interest on credit lines so they can make payroll while waiting for reimbursement by New York state interest that is not reimbursed by the state. In a recent survey among the New York Council of Nonprofits' 3,100 members, the statewide organization found that 65% said they are concerned about funding basic operations in 2025, up from 62% the year before. This bill seeks to make changes to the prompt contracting law to help address not-for-profits' largest challenges with state funding. Changes include clarifying language in the existing law, expanding the use of written directives, mandating and increasing the interest rate on late payments and more. Similarly, clarifying, standardizing, and streamlin- ing these processes will benefit the state agencies that process these contracts. Addressing these challenges is particularly critical now, as an increas- ing number of not-for-profits report they are struggling financially. These financial struggles are also directly impacting agencies' ability to recruit and retain staff to deliver services, a problem that is being further compounded by funding cuts,and the further threat of funding cuts, to not-for-profit services providers at the federal level.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.

Full history

Dec 5, 2025
Vetoed
VETOED MEMO.94
NY Senate
Dec 1, 2025
Sent to the executive
DELIVERED TO GOVERNOR
NY Senate
Jun 16, 2025
Ordered to Third Reading Rules CAL.808
ORDERED TO THIRD READING RULES CAL.808
NY Assembly
Jun 16, 2025
Passed a chamber
PASSED ASSEMBLY
NY Assembly
Jun 16, 2025
Reported out of committee
REPORTED
NY Assembly

Show full history (11 earlier events)

Jun 16, 2025
Substituted
SUBSTITUTED FOR A7616
NY Assembly
Jun 13, 2025
Reported out of committee
REPORTED REFERRED TO RULES
NY Assembly
Jun 11, 2025
Sent to the executive
DELIVERED TO ASSEMBLY
NY Senate
Jun 11, 2025
Passed a chamber
PASSED SENATE
NY Senate
Jun 11, 2025
Referred to committee
REFERRED TO WAYS AND MEANS
NY Assembly
May 27, 2025
Reported out of committee
REPORTED REFERRED TO WAYS AND MEANS
NY Assembly
May 15, 2025
Advanced to Third Reading
ADVANCED TO THIRD READING
NY Senate
May 14, 2025
2ND Report CAL.
2ND REPORT CAL.
NY Senate
May 13, 2025
1ST Report CAL.1011
1ST REPORT CAL.1011
NY Senate
Apr 1, 2025
Referred to committee
REFERRED TO GOVERNMENTAL OPERATIONS
NY Assembly
Mar 28, 2025
Referred to committee
REFERRED TO PROCUREMENT AND CONTRACTS
NY Senate

About this record

Summary: The summary comes from NY Open Legislation, the New York State Senate's public record. For more, see How we handle summaries.
Cosponsors: The list shows the cosponsors who are on Agora, A to Z. The official record may list more.
Party colors: Parties are shown in the same neutral colors.
Source: From NY Open Legislation, the NY Senate and Assembly, and official rosters. This record was last updated Oct 22, 2026. About our data

Read the record

Read on NY Senate (opens in a new tab) The official record on nysenate.gov.

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