S 9855: Relates to requirements associated with contracts between state agencies and not-for-profit organizations including an advance payment of 25% of the total award to cover expenses incurred in the first quarter.

  
  STATE OF NEW YORK ________________________________________________________________________ 9855  IN SENATE 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: 1 Section 1. Section 179-u of the state finance law, as added by chapter 2 166 of the laws of 1991, is amended to read as follows: 3 § 179-u. Advance payments. 1. When a state agency administering a 4 contract enters a new contract with a not-for-profit organization and 5 funds have been appropriated, the agency shall provide within thirty 6 days of executing the contract an automatic advance payment of an amount 7 equal to twenty-five percent of the total award to cover expenses 8 incurred and services provided in the first quarter. 9 2. When a state agency administering a contract shall advise the not- 10 for-profit organization of the agency's intention to renew or extend the 11 contract, the not-for-profit organization[, may] shall, upon receipt of 12 a written directive and if the funds have been appropriated, be entitled 13 to an advance payment of an amount equal to twenty-five percent of the 14 total award to cover expenses incurred and services provided in the 15 first quarter pending execution of the renewal contract if such contract 16 is not fully executed by the commencement date of the succeeding 17 contract; the written directive shall specifically set forth the dollar 18 amount and the period of time covered by the advance payment. Such 19 advance payment shall offset future payments due to the organization for 20 services provided during the term of the prospective renewal contract 21 and shall not exceed the maximum contract amount set forth in said 22 renewal contract. 23 [2.] 3. A state agency providing an advance payment pursuant to subdi- 24 vision one or two of this section shall submit a written directive, a 25 voucher and such other documents as may be required to the comptroller 26 for approval. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15448-02-6 
 S. 9855 2 1 4. Such advance payments shall not be required if funding for such 2 contract includes federal funding and the terms or conditions of such 3 federal funding prohibit such advance payments. 4 § 2. Subdivision 3 of section 179-ee of the state finance law, as 5 added by section 38 of part L of chapter 55 of the laws of 2012, is 6 amended and two new subdivisions 4 and 5 are added to read as follows: 7 3. A modification to a contract that would result in a transfer of 8 funds among program activities or budget cost categories but does not 9 affect the amount, consideration, scope or other terms of such contract 10 shall not, by itself, require such contract and modification to be 11 submitted to the comptroller for review; provided, however, where the 12 amount of such modification is, as a portion of the total value of the 13 contract, equal to or greater than ten percent for contracts of less 14 than five million dollars, or five percent for contracts of more than 15 five million dollars, the comptroller may require that such modification 16 be submitted to [him or her] such comptroller for review. All modifica- 17 tions that do not require comptroller review shall be approved within 18 sixty days, and all modifications that require comptroller review shall 19 be approved within ninety days. When a contractor submits their final 20 vouchers or invoice, if such voucher or invoice would result in a 21 modification between budget categories of, as a portion of the total 22 value of the contract, equal to or lesser than ten percent for contracts 23 of less than five million dollars, or five percent for contracts of more 24 than five million dollars, then the agency may consider the voucher or 25 invoice a request for contract modification and may process the modifi- 26 cation as such. 27 4. Notwithstanding any other provisions of this article, de minimus 28 indirect costs shall be included in all not-for-profit organization 29 contracts with state agencies. Provided, however, such de minimus indi- 30 rect costs shall not be included if funding for such contract includes 31 federal funding and the terms or conditions of such federal funding 32 prohibit the inclusion of such costs. 33 § 3. This act shall take effect on the one hundred eightieth day after 34 it shall have become a law.