NY State Senate Bill S8792

Archive: Last Bill Status - Passed Senate

Introduced
In Committee
On Floor Calendar
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- Passed Assembly
Delivered to Governor
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Actions

view actions (7)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 02, 2022	referred to governmental operations delivered to assembly passed senate
May 11, 2022	advanced to third reading
May 10, 2022	2nd report cal.
May 09, 2022	1st report cal.1153
Apr 18, 2022	referred to procurement and contracts

Votes

view votes

Jun 2, 2022 - floor Vote

S8792

floor

Aye

Nay

Absent

Excused

Abstained

May 9, 2022 - Procurement and Contracts committee Vote

S8792

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

show Procurement and Contracts committee vote details

Procurement and Contracts Committee Vote: May 9, 2022

aye (6)

aye wr (1)

Borrello

S8792 (ACTIVE) - Details

See Assembly Version of this Bill:: A9741
Law Section:: State Finance Law
Laws Affected:: Amd §§179-q, 179-s & 179-t, St Fin L
Versions Introduced in 2023-2024 Legislative Session:: S4877, A2740

S8792 (ACTIVE) - Summary

Reduces the number of days for a state agency to register contracts with not-for-profit organizations to thirty; defines registered contract.

S8792 (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S8792

SPONSOR: MAYER
 
TITLE OF BILL:

An act to amend the state finance law, in relation to the time frame for
the implementation of contracts with not-for-profit corporations

 
PURPOSE:

to ensure a timely procurement process for nonprofits contracting with
the state

 
SUMMARY OF PROVISIONS:

Section one of the bill amends section 179-q of the state finance law to
define "registered contract"

Section two of the bill amends section 179-s of the state finance law to
require state agencies register contracts with not-for-profit organiza-
tions within thirty days of the start date of the contract.

Section three provides the effective date

 
JUSTIFICATION:

New York State often outsources crucial programs to not for profits,
like early childhood education programs, mental health counseling, and
shelter for the homeless. The state relies on the important work not for
profits do because without them, these vital programs may not exist.
However, not for profit organizations contracting with the state have
repeatedly expressed concerns with the timeliness, or lack thereof, of
the current contract and procurement process in New York State for
years. In an effort to address these concerns, the state enacted the
Prompt Contracting Law in 1991 to help expedite contracts and reduce the
fiscal stress on not for profits. Thirty years later, the problem
persists and not for profits are facing immense financial hardships as a
result.

In May of 2020, the Office of the NYS Comptroller released their
"Not-ForProfit Prompt Contracting Annual Report" that found 50% of
contracts in 2019 had not been, approved until after the start date of
such contracts, compared to 47% of contracts in 2018. A not for profit
cannot receive payment from the state until the contract is formally
approved by the state comptroller. So, while not for profits are
required to start providing services by the start date of their
contracts, the state is not required to pay them within the same time-
frame.

In order for the not for profits to begin their work, they often have to
take out lines of credit to get by in the meantime. The May 2020 NYS
Comptroller report states, "the failure of the state agencies to process
contracts on time harms not for profit service providers, which in turn
erodes service delivery to vulnerable populations." The report recom-
mends "state agencies should take responsibility for their critical
roles, and make prompt contracting a priority."

This bill seeks to address this issue by requiring a state agency to
register contracts with not for profit organizations within 30 days of
the start date of the contract. Not for profit organizations provide
essential services to our state and support our economy by providing
jobs through their programs in communities throughout the state. This
bill ensures timely payments to these organizations so that they can
continue providing vital services to our state and to all New Yorkers.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

S8792 (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8792
 
                             I N  S E N A T E
 
                              April 18, 2022
                                ___________
 
 Introduced  by  Sen.  MAYER  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Procurement and Contracts
 
 AN ACT to amend the state finance law, in relation to the time frame for
   the implementation of contracts with not-for-profit corporations
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 179-q of the state finance law is amended by adding
 a new subdivision 8-a to read as follows:
   8-A.  "REGISTERED CONTRACT" MEANS A COMPLETED CONTRACT PACKAGE THAT IS
 SIGNED BY BOTH THE STATE AGENCY AND NOT-FOR-PROFIT ORGANIZATION AND SENT
 TO THE ATTORNEY GENERAL FOR APPROVAL.
   § 2. Subdivision 1 of section 179-s of the state finance law, as added
 by chapter 166 of the laws of 1991, is amended to read as follows:
   1. A state agency shall [have not more than  one  hundred  fifty  days
 following  the latest date on which any of the appropriations covered by
 the program plan become law to execute] REGISTER contracts with not-for-
 profit organizations pursuant to the program plan WITHIN THIRTY DAYS  OF
 THE  START  DATE OF THE CONTRACT. Upon execution of each contract by the
 state agency and the not-for-profit  organization,  the  contract  shall
 immediately  be  delivered  to  the attorney general for approval.   The
 attorney general shall within fifteen days  of  receipt  either  approve
 such  contract or disapprove and return the contract to the state agency
 with reasons therefor. Upon approval, the contract shall be delivered to
 the comptroller who shall within fifteen days of receipt either  approve
 and  file  such  contract  or  disapprove and return the contract to the
 state agency with his reasons therefor.
   § 3.  Section 179-t of the state finance law is amended  by  adding  a
 new subdivision 6 to read as follows:
   6. A STATE AGENCY SHALL REGISTER RENEWAL CONTRACTS WITH NOT-FOR-PROFIT
 ORGANIZATIONS  PURSUANT  TO  THE  PROGRAM PLAN WITHIN THIRTY DAYS OF THE
 START DATE OF THE RENEWED CONTRACT.
   § 4. This act shall take effect immediately.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15117-03-2

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The New York State Senate

senate Bill S8792

Sponsored By

Archive: Last Bill Status - Passed Senate

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Votes

Jun 2, 2022 - floor Vote

Floor Vote: Jun 2, 2022

May 9, 2022 - Procurement and Contracts committee Vote

Procurement and Contracts Committee Vote: May 9, 2022

S8792 (ACTIVE) - Details

S8792 (ACTIVE) - Summary

S8792 (ACTIVE) - Sponsor Memo

S8792 (ACTIVE) - Bill Text download pdf

Comments

senate Bill S8792

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Sponsored By

Shelley B. Mayer

Archive: Last Bill Status - Passed Senate

Your Voice

Actions

Votes

Jun 2, 2022 - floor Vote

Floor Vote: Jun 2, 2022

May 9, 2022 - Procurement and Contracts committee Vote

Procurement and Contracts Committee Vote: May 9, 2022

S8792 (ACTIVE) - Details

S8792 (ACTIVE) - Summary

S8792 (ACTIVE) - Sponsor Memo

S8792 (ACTIVE) - Bill Text download pdf

Comments