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Reviewing the implementation and effectiveness of the State's Prompt Contracting Law

To examine the effectiveness of the State's prompt contracting and interest payment requirements under Article XI-B of the State Finance Law.

Monday, June 15, 2009
Hamilton Hearing Room B, 2nd Floor
Legislative Office Building, Albany, NY
10:00 AM


The purpose of this hearing is to examine the effectiveness of the State's Prompt Contracting law, which entitles not-for-profit organizations to timely renewals for their contracts with the State, and interest payments to cover their increased costs when timely renewals are not made.

Not-for-profit corporations frequently contract with State agencies to provide needed services in communities throughout New York that the State would be unable to provide without their assistance. These relationships may last many years; however, when renewals of the contracts between these entities and the State are delayed, the uncertainty and financial difficulty that may result to the not-for-profit may severely hamper their ability to provide continuous services for New York's most vulnerable, and may lead to an interruption of service and substantial financial difficulty. Article XI-B of the State Finance Law was enacted in 1991, and updated in 2007, to provide protection for those not-for-profits whose contracts have been delayed, often through no fault of their own, including reasonable interest payments to reimburse them for the loans and lines of credit they may have had to take out to maintain fiscal solvency.

The Committee will be examining the extent and length of renewal delays between agencies and not-for-profits, the reason for such delays, and whether State agencies are paying the interest due to not-for-profits under the law. The Committee will also consider potential improvements, both regulatory and statutory, to the Prompt Contracting Law and its implementation to ensure that the intent of the law is being realized.

Oral Testimony is by invitation only. Persons wishing to present a written statement to the Committee at this hearing should complete and return the enclosed reply form as soon as possible. It is important that the reply form be fully completed and returned so that persons may be notified in the event of emergency postponement or cancellation. Ten copies of any prepared testimony should be submitted at the hearing registration desk. The Committee would appreciate advance receipt of prepared statements. In order to further publicize these hearings, please inform interested parties and organizations of the Committee's interest in hearing testimony from all sources.

In order to meet the needs of those who may have a disability, the Assembly, in accordance with its policy of non-discrimination on the basis of disability, as well as the 1990 Americans with Disabilities Act (ADA), has made its facilities and services available to all individuals with disabilities. For individuals with disabilities, accommodations will be provided, upon reasonable request, to afford such individuals access and admission to Assembly facilities and activities.

RoAnn M. Destito, Chair
Committee on Governmental Operations


Persons wishing to present testimony at this public hearing are requested to complete this reply form as soon as possible and mail it to:

Destiny DeJesus
Committee Assistant
Assembly Committee on Governmental Operations
AESOB - 22nd Floor
Albany, New York 12248
E-mail: dejesusd@assembly.state.ny.us
Phone: (518) 455-4355
Fax: (518) 455-7250
I plan to attend the following public hearing on compliance by agencies with the State's prompt contracting and interest payment requirements under Article XI-B of the State Finance Law, to be conducted by the Assembly Committee on Governmental Operations, on June 15, 2009.
I plan to make a public statement at the hearing. My statement will be limited to ten minutes, and I will answer any questions which may arise. I will provide 10 copies of my prepared statement. Oral Testimony is by invitation only.
I would like to be added to the Committee's mailing list for notices and reports.
I would like to be removed from the Committee's mailing list.
I will require assistance and/or handicapped accessibility information. Please specify the type of assistance required: