Assembly Bill A11179

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   11179
 
                           I N  A S S E M B L Y
 
                                May 1, 2026
                                ___________
 
 Introduced by M. of A. PAULIN -- read once and referred to the Committee
   on Governmental Operations
 
 AN ACT to amend the state finance law, in relation to requirements asso-
   ciated with contracts between state agencies and not-for-profit organ-
   izations
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 179-u of the state finance law, as added by chapter
 166 of the laws of 1991, is amended to read as follows:
   § 179-u. Advance payments. 1.   WHEN A STATE  AGENCY  ADMINISTERING  A
 CONTRACT  ENTERS  A  NEW CONTRACT WITH A NOT-FOR-PROFIT ORGANIZATION AND
 FUNDS HAVE BEEN APPROPRIATED, THE AGENCY  SHALL  PROVIDE  WITHIN  THIRTY
 DAYS  OF EXECUTING THE CONTRACT AN ADVANCE PAYMENT OF AN AMOUNT EQUAL TO
 TWENTY-FIVE PERCENT OF THE TOTAL AWARD TO COVER  EXPENSES  INCURRED  AND
 SERVICES PROVIDED IN THE FIRST QUARTER.
   2. When a state agency administering a contract [shall advise] ADVISES
 the  not-for-profit  organization  of the agency's intention to renew OR
 EXTEND the contract, [the not-for-profit organization, may, upon receipt
 of a written directive, be entitled to  an]  AND  THE  FUNDS  HAVE  BEEN
 APPROPRIATED,  THE  AGENCY  SHALL  EITHER FULLY EXECUTE SUCH CONTRACT OR
 SHALL ISSUE A WRITTEN DIRECTIVE PRIOR TO THE COMMENCEMENT  DATE  OF  THE
 SUCCEEDING  CONTRACT.  IN  EITHER CASE, THE AGENCY SHALL ISSUE, PRIOR TO
 THE COMMENCEMENT DATE OF THE SUCCEEDING CONTRACT, AN advance payment  OF
 AN  AMOUNT  EQUAL  TO  TWENTY-FIVE  PERCENT  OF THE TOTAL AWARD TO COVER
 EXPENSES INCURRED AND SERVICES PROVIDED IN  THE  FIRST  QUARTER  pending
 execution  of the renewal OR EXTENSION contract [if such contract is not
 fully executed by the commencement date of the succeeding contract;  the
 written directive shall specifically set forth the dollar amount and the
 period  of  time covered by the advance payment]. Such advance [payment]
 PAYMENTS shall offset  future  payments  due  to  the  organization  for
 services  provided  during the term of the prospective renewal OR EXTEN-
 SION contract and shall not exceed the maximum contract amount set forth
 in said renewal OR EXTENSION contract.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15448-04-6
              

 A. 11179                            2

   [2.] 3. A state agency providing an advance payment pursuant to subdi-
 vision one OR TWO of this section shall submit a  written  directive,  a
 voucher  and  such other documents as may be required to the comptroller
 for approval.
   4.  SUCH  ADVANCE  PAYMENTS  SHALL NOT BE REQUIRED IF FUNDING FOR SUCH
 CONTRACT INCLUDES FEDERAL FUNDING AND THE TERMS OR  CONDITIONS  OF  SUCH
 FEDERAL FUNDING PROHIBIT SUCH ADVANCE PAYMENTS.
   §  2.  Subdivision  3  of  section 179-ee of the state finance law, as
 added by section 38 of part L of chapter 55 of  the  laws  of  2012,  is
 amended and a new subdivision 4 is added to read as follows:
   3.  A  modification  to  a contract that would result in a transfer of
 funds among program activities or budget cost categories  but  does  not
 affect  the amount, consideration, scope or other terms of such contract
 shall not, by itself, require  such  contract  and  modification  to  be
 submitted  to  the  comptroller for review; provided, however, where the
 amount of such modification is, as a portion of the total value  of  the
 contract,  equal  to  or  greater than ten percent for contracts of less
 than five million dollars, or five percent for contracts  of  more  than
 five million dollars, the comptroller may require that such modification
 be submitted to [him or her] SUCH COMPTROLLER for review.  ALL MODIFICA-
 TIONS  THAT  DO  NOT REQUIRE COMPTROLLER REVIEW SHALL BE APPROVED WITHIN
 SIXTY DAYS, AND ALL MODIFICATIONS THAT REQUIRE COMPTROLLER REVIEW  SHALL
 BE  APPROVED  WITHIN  NINETY DAYS. WHEN A CONTRACTOR SUBMITS THEIR FINAL
 VOUCHERS OR INVOICE, IF SUCH  VOUCHER  OR  INVOICE  WOULD  RESULT  IN  A
 MODIFICATION  BETWEEN  BUDGET  CATEGORIES  OF, AS A PORTION OF THE TOTAL
 VALUE OF THE CONTRACT, EQUAL TO OR LESSER THAN TEN PERCENT FOR CONTRACTS
 OF LESS THAN FIVE MILLION DOLLARS, OR FIVE PERCENT FOR CONTRACTS OF MORE
 THAN FIVE MILLION DOLLARS, THEN THE AGENCY MAY CONSIDER THE  VOUCHER  OR
 INVOICE  A REQUEST FOR CONTRACT MODIFICATION AND MAY PROCESS THE MODIFI-
 CATION AS SUCH.
   4. NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS  ARTICLE,  DE  MINIMUS
 INDIRECT  COSTS  SHALL  BE  INCLUDED  IN ALL NOT-FOR-PROFIT ORGANIZATION
 CONTRACTS WITH STATE AGENCIES.  PROVIDED, HOWEVER, SUCH DE MINIMUS INDI-
 RECT COSTS SHALL NOT BE INCLUDED IF FUNDING FOR SUCH  CONTRACT  INCLUDES
 FEDERAL  FUNDING  AND  THE  TERMS  OR CONDITIONS OF SUCH FEDERAL FUNDING
 PROHIBIT THE INCLUSION OF SUCH COSTS.
   § 3. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.