New York Assembly Bill A05650 Latest Draft

   
  STATE OF NEW YORK ________________________________________________________________________ 5650 2025-2026 Regular Sessions  IN ASSEMBLY February 19, 2025 ___________ Introduced by M. of A. ZINERMAN, BUTTENSCHON, WOERNER -- read once and referred to the Committee on Governmental Operations 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: 1 Section 1. Legislative findings. The Legislature acknowledges the New 2 York Council of Nonprofits' first State of the Sector and finds that 3 small not-for-profit corporations in the State of New York are struggl- 4 ing to attract new talent, make timely payments, and cover their annual 5 operating expenses, further exacerbated by financial difficulties stem- 6 ming from the shifting post-pandemic economic landscape. Inflation and 7 labor shortages have harmed the not-for-profit community in ways 8 disproportionate to the for-profit community. In particular, these 9 economic trends have harmed small not-for-profit corporations more 10 acutely than larger not-for-profit corporations. 11 The purpose of this legislation is to address that gap by altering the 12 structure and schedule of payments from the state to small not-for-pro- 13 fit corporations, helping them to better adapt their budgets and expend- 14 itures and compete more effectively with larger, better-capitalized 15 not-for-profit corporations who can more easily absorb large costs. 16 Uncertain budgeting for not-for-profit corporations results in less 17 action, unstable employment, less clarity with timelines, general stress 18 and anguish for employees, and more. Helping small not-for-profit corpo- 19 rations budget better will help the entire economy and society. 20 § 2. Section 179-e of the state finance law is amended by adding a new 21 subdivision 11 to read as follows: 22 11. "Small not-for-profit corporation" means any not-for-profit corpo- 23 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 
 A. 5650 2 1 corporation law, whose annual budget is one million five hundred thou- 2 sand dollars or less. 3 § 3. Section 179-t of the state finance law is amended by adding two 4 new subdivisions 6 and 7 to read as follows: 5 6. Every calendar year, on or before January thirty-first, the attor- 6 ney general shall publish a list of not-for-profit corporations in good 7 standing with the state and eligible to receive funding from the state. 8 Such list shall be constructed based upon the compliance paperwork of 9 not-for-profit corporations submitted for the previous calendar year. 10 For not-for-profit corporations who submit their compliance paperwork 11 after January thirty-first and before April first, the attorney general 12 shall publish addendums to said list including not-for-profit corpo- 13 rations that are in good standing and eligible to receive funding from 14 the state. Any agency executing contract renewals for not-for-profit 15 corporations on such list shall not be required to submit said renewal 16 contract to the comptroller for review. 17 7. (a) Notwithstanding the time frame requirements set forth in this 18 section, a state agency administering a contract renewal with a small 19 not-for-profit corporation as defined in this article shall make best 20 efforts to ensure the disbursement of moneys to the small not-for-profit 21 corporation within sixty days after the agency receives the appropri- 22 ation or funding for the contract unless the agency receives the funding 23 more than sixty days before the effective date of the contract. If the 24 agency receives the applicable funding more than sixty days before the 25 effective date of the contract, the agency shall disburse the money to 26 the small not-for-profit corporation prior to the effective date of the 27 contract. The agency shall disburse the entire sum of money in a single 28 disbursement. 29 (b) A small not-for-profit corporation may opt not to receive funds in 30 a single disbursement by attaching a statement with their compliance 31 paperwork requesting payment under the provisions of this chapter which 32 would otherwise be applicable. 33 (c) Small not-for-profit corporations which do not receive their 34 contractual disbursements within the time frames provided by this subdi- 35 vision may petition the contracting agency to disburse any moneys owed 36 within twenty days of receipt of such petition. If the contracting agen- 37 cy has not disbursed such moneys within twenty days, the small not-for- 38 profit corporation affected may bring an article seventy-eight proceed- 39 ing in a court of competent jurisdiction to enforce such contract and 40 the provisions of this article. 41 § 4. This act shall take effect on the first of January next succeed- 42 ing the date on which it shall have become a law.