Senate Bill S9855

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9855
 
                             I N  S E N A T E
 
                               April 8, 2026
                                ___________
 
 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 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 AUTOMATIC 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 the not-
 for-profit organization of the agency's intention to renew OR EXTEND the
 contract, the not-for-profit organization[, may] SHALL, upon receipt  of
 a written directive AND IF THE FUNDS HAVE BEEN APPROPRIATED, be entitled
 to  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 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 shall offset future payments due to the organization for
 services provided during the term of the  prospective  renewal  contract
 and  shall  not  exceed  the  maximum  contract amount set forth in said
 renewal contract.
   [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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15448-02-6
              

 S. 9855                             2
 
   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 two new subdivisions 4 and 5 are 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.