Senate bill · S9761 (2025-26)

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

New York State Senate

Same as A10741, the matching bill in the Assembly.

PassedLatest action Jun 5, 2026

Sponsor: Shelley Mayer (State Senator, District 37, Democratic/Working Families)

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From NY Open Legislation, the NY Senate and Assembly, and official rosters. This record was last updated Oct 23, 2026. About our data

Summary

Relates to provisions governing contracting between state agencies and not-for-profit organizations including new, renewal, and extension contracts.

Summary from NY Open Legislation. How we handle summaries

Amends the State Finance Law.

Purpose, from the sponsor's memo

Section 1 amends subdivisions 9 and 14 of section 179-q of the state finance law to clarify that the definition of "renewal contract" includes new contracts between a state agency and a not-for-profit organization to provide the same or similar services as were provided under a previously approved contract. This section also requires that all written directives include a schedule for the submission of invoices, the agency's scheduled payment dates for such invoices, and instructions on how to access the not-for-profit short-term revolving loan fund. Section 2 amends section 179-s of the state finance law to require that when a state agency requests that a not-for-profit organization commence services prior to full execution of a contract, the written directive must include a commencement date for services, a procedure and schedule for submission of invoices, and a schedule under which the organization can expect payment. Section 3 amends section 179-z of the state finance law to increase the maximum loan amount available under the not-for-profit short-term revolving loan fund from one-half of the first quarter payment to the full payment of the subject contract. This section also requires that instructions on how to access the loan fund be provided to every not- for-profit organization receiving a written directive, contract, or renewal contract, and that such information be posted conspicuously on relevant state websites. Section 4 amends section 179-aa of the state finance law to require the not-for-profit contracting advisory committee to comment and report on the implementation and operation of the revolving loan fund, evaluate improvements to the statewide financial system, and ensure that annual reports are made publicly available. Section 5 amends section 179-f of the state finance law to clarify that only material defects in delivered goods, services, or invoices may pause the statutory payment clock. It further specifies that minor cler- ical or rounding errors resulting in a variance of less than one hundred dollars shall not constitute material defects and clarifies subcontrac- tor payment procedures. Section 6 sets the effective date.

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

Where it stands

Passed the legislature and is awaiting a signature.

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

Committee

Governmental Operations · New York State Assembly

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

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Cosponsors

Showing the cosponsors who are on Agora, A to Z. The official record may list more.

Read on NY Senate

Democratic14

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Show the full list (14 names)

The sponsor's argument

Why Shelley Mayer says this is needed

New York State has long contracted with not-for-profit organizations to provide critical services in communities throughout the state from early childhood education and mental health services to homeless housing programs and substance abuse treatment. These essential social safety net services are delivered as an extension of the state to millions of New Yorkers every day. However, delays in payment and a cumbersome contracting process have long challenged not-for-profit providers. A recent statewide survey found that 33 percent of not-for-profit organizations awarded state funds reported being owed more than $58 million for services already delivered. Reimbursement delays regularly last for months and, in some cases, more than a year. As a result, not-for-profits are often forced to draw on lines of credit and incur interest costs simply to meet payroll and maintain operations. In a recent survey conducted by the New York Council of Nonprofits, 65 percent of respondents reported concern about funding basic operations in 2025, up from 62 percent the prior year. These challenges are exacerbated when not-for-profit organizations are directed to begin or continue providing services prior to full contract execution, often without clear timelines for invoicing or payment. The absence of predictable payment schedules and consistent procedures creates uncertainty for providers and increases administrative burdens for both not-for-profits and state agencies. This bill seeks to make targeted clarifications and procedural improve- ments to the Prompt Contracting Law to improve transparency and predict- ability in the contracting process. The Governor vetoed a similar bill in 2025 (Veto 94), citing concerns related to advance payments and automatic interest provisions. This legislation directly addresses those concerns by removing provisions mandating automatic advance payments and automatic interest adjustments, and instead focuses on targeted procedural reforms that enhance transparency without creating new fiscal mandates. Specifically, the bill requires written directives to include clear schedules for invoice submission and payment, ensures that not-for-profit organiza- tions receive information on accessing the not-for-profit short-term revolving loan fund, and clarifies the operation of statutory payment timelines and invoice review procedures. By promoting greater clarity, consistency, and predictability in the contracting process, this legislation will help ensure that not-for-pro- fit organizations can continue to provide critical services without disruption, reduce administrative inefficiencies, and strengthen accountability in state contracting practices.

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.

Recorded votes

Vote: Floor vote
NY SenateJun 1, 2026Result: passed
(60) (0) (0) (3)
Vote: Committee vote · Rules
Senate RulesJun 1, 2026Result: passed
(20) (0) (0) (1)
Vote: Committee vote · Procurement And Contracts
Senate Procurement And ContractsMay 18, 2026Result: passed
(7) (0) (0) (0)

Full history

Jun 5, 2026
Passed a chamber
PASSED ASSEMBLY
NY Assembly
Jun 5, 2026
Reported out of committee
REPORTED REFERRED TO RULES
NY Assembly
Jun 5, 2026
Rules Report CAL.589
RULES REPORT CAL.589
NY Assembly
Jun 5, 2026
Substituted
SUBSTITUTED BY S9761
NY Assembly
Jun 1, 2026
In committee
COMMITTEE DISCHARGED AND COMMITTED TO RULES
NY Senate

Show full history (8 earlier events)

Jun 1, 2026
Sent to the executive
DELIVERED TO ASSEMBLY
NY Senate
Jun 1, 2026
Ordered to Third Reading CAL.1495
ORDERED TO THIRD READING CAL.1495
NY Senate
Jun 1, 2026
Passed a chamber
PASSED SENATE
NY Senate
Jun 1, 2026
Referred to committee
REFERRED TO WAYS AND MEANS
NY Assembly
May 18, 2026
Reported out of committee
REPORTED AND COMMITTED TO FINANCE
NY Senate
Apr 21, 2026
Reported out of committee
REPORTED REFERRED TO WAYS AND MEANS
NY Assembly
Apr 6, 2026
Referred to committee
REFERRED TO PROCUREMENT AND CONTRACTS
NY Senate
Mar 27, 2026
Referred to committee
REFERRED TO GOVERNMENTAL OPERATIONS
NY Assembly

Read the record

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