S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5757
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 28, 2025
                                ___________
 
 Introduced  by  Sen.  CLEARE -- 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  providing  timely
   and  up-front  payments  from the state to small not-for-profit corpo-
   rations and enabling the  competitiveness  of  smaller  not-for-profit
   corporations serving the state
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings. The Legislature acknowledges the  New
 York  Council  of  Nonprofits'  first State of the Sector and finds that
 small not-for-profit corporations in the State of New York are  struggl-
 ing  to attract new talent, make timely payments, and cover their annual
 operating expenses, further exacerbated by financial difficulties  stem-
 ming  from  the shifting post-pandemic economic landscape. Inflation and
 labor  shortages  have  harmed  the  not-for-profit  community  in  ways
 disproportionate  to  the  for-profit  community.  In  particular, these
 economic trends  have  harmed  small  not-for-profit  corporations  more
 acutely than larger not-for-profit corporations.
   The purpose of this legislation is to address that gap by altering the
 structure  and schedule of payments from the state to small not-for-pro-
 fit corporations, helping them to better adapt their budgets and expend-
 itures and compete  more  effectively  with  larger,  better-capitalized
 not-for-profit  corporations  who  can  more  easily absorb large costs.
 Uncertain budgeting for  not-for-profit  corporations  results  in  less
 action, unstable employment, less clarity with timelines, general stress
 and anguish for employees, and more. Helping small not-for-profit corpo-
 rations budget better will help the entire economy and society.
   § 2. Section 179-e of the state finance law is amended by adding a new
 subdivision 11 to read as follows:
   11. "SMALL NOT-FOR-PROFIT CORPORATION" MEANS ANY NOT-FOR-PROFIT CORPO-
 RATION,  AS  DEFINED  BY  SECTION  ONE HUNDRED TWO OF THE NOT-FOR-PROFIT
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09280-01-5
              

 S. 5757                             2
 
 CORPORATION LAW, WHOSE ANNUAL BUDGET IS ONE MILLION FIVE  HUNDRED  THOU-
 SAND DOLLARS OR LESS.
   §  3.  Section 179-t of the state finance law is amended by adding two
 new subdivisions 6 and 7 to read as follows:
   6. EVERY CALENDAR YEAR, ON OR BEFORE JANUARY THIRTY-FIRST, THE  ATTOR-
 NEY  GENERAL SHALL PUBLISH A LIST OF NOT-FOR-PROFIT CORPORATIONS IN GOOD
 STANDING WITH THE STATE AND ELIGIBLE TO RECEIVE FUNDING FROM THE  STATE.
 SUCH  LIST  SHALL  BE CONSTRUCTED BASED UPON THE COMPLIANCE PAPERWORK OF
 NOT-FOR-PROFIT CORPORATIONS SUBMITTED FOR THE  PREVIOUS  CALENDAR  YEAR.
 FOR  NOT-FOR-PROFIT  CORPORATIONS  WHO SUBMIT THEIR COMPLIANCE PAPERWORK
 AFTER JANUARY THIRTY-FIRST AND BEFORE APRIL FIRST, THE ATTORNEY  GENERAL
 SHALL  PUBLISH  ADDENDUMS  TO  SAID LIST INCLUDING NOT-FOR-PROFIT CORPO-
 RATIONS THAT ARE IN GOOD STANDING AND ELIGIBLE TO RECEIVE  FUNDING  FROM
 THE  STATE.  ANY  AGENCY  EXECUTING CONTRACT RENEWALS FOR NOT-FOR-PROFIT
 CORPORATIONS ON SUCH LIST SHALL NOT BE REQUIRED TO SUBMIT  SAID  RENEWAL
 CONTRACT TO THE COMPTROLLER FOR REVIEW.
   7.  (A)  NOTWITHSTANDING THE TIME FRAME REQUIREMENTS SET FORTH IN THIS
 SECTION, A STATE AGENCY ADMINISTERING A CONTRACT RENEWAL  WITH  A  SMALL
 NOT-FOR-PROFIT  CORPORATION  AS  DEFINED IN THIS ARTICLE SHALL MAKE BEST
 EFFORTS TO ENSURE THE DISBURSEMENT OF MONEYS TO THE SMALL NOT-FOR-PROFIT
 CORPORATION WITHIN SIXTY DAYS AFTER THE AGENCY  RECEIVES  THE  APPROPRI-
 ATION OR FUNDING FOR THE CONTRACT UNLESS THE AGENCY RECEIVES THE FUNDING
 MORE  THAN  SIXTY DAYS BEFORE THE EFFECTIVE DATE OF THE CONTRACT. IF THE
 AGENCY RECEIVES THE APPLICABLE FUNDING MORE THAN SIXTY DAYS  BEFORE  THE
 EFFECTIVE  DATE  OF THE CONTRACT, THE AGENCY SHALL DISBURSE THE MONEY TO
 THE SMALL NOT-FOR-PROFIT CORPORATION PRIOR TO THE EFFECTIVE DATE OF  THE
 CONTRACT.  THE AGENCY SHALL DISBURSE THE ENTIRE SUM OF MONEY IN A SINGLE
 DISBURSEMENT.
   (B) A SMALL NOT-FOR-PROFIT CORPORATION MAY OPT NOT TO RECEIVE FUNDS IN
 A SINGLE DISBURSEMENT BY ATTACHING A  STATEMENT  WITH  THEIR  COMPLIANCE
 PAPERWORK  REQUESTING PAYMENT UNDER THE PROVISIONS OF THIS CHAPTER WHICH
 WOULD OTHERWISE BE APPLICABLE.
   (C) SMALL NOT-FOR-PROFIT  CORPORATIONS  WHICH  DO  NOT  RECEIVE  THEIR
 CONTRACTUAL DISBURSEMENTS WITHIN THE TIME FRAMES PROVIDED BY THIS SUBDI-
 VISION  MAY  PETITION THE CONTRACTING AGENCY TO DISBURSE ANY MONEYS OWED
 WITHIN TWENTY DAYS OF RECEIPT OF SUCH PETITION. IF THE CONTRACTING AGEN-
 CY HAS NOT DISBURSED SUCH MONEYS WITHIN TWENTY DAYS, THE SMALL  NOT-FOR-
 PROFIT  CORPORATION AFFECTED MAY BRING AN ARTICLE SEVENTY-EIGHT PROCEED-
 ING IN A COURT OF COMPETENT JURISDICTION TO ENFORCE  SUCH  CONTRACT  AND
 THE PROVISIONS OF THIS ARTICLE.
   §  4. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law.