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A09317 Summary:

BILL NOA09317
 
SAME ASNo Same As
 
SPONSORZinerman
 
COSPNSRWoerner, Dickens
 
MLTSPNSR
 
Amd 179-e & 179-t, St Fin L
 
Relates to providing timely and up-front payments from the state to small not-for-profit corporations; enables the competitiveness of smaller not-for-profit corporations serving the state.
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A09317 Actions:

BILL NOA09317
 
02/29/2024referred to governmental operations
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A09317 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9317
 
SPONSOR: Zinerman
  TITLE OF BILL: 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   PURPOSE: This bill is designed to address the financial challenges faced by small not-for-profit corporations in the State of New York. Non profit organ- izations already bear a large financial hurdle, and the lack of timely payments from the State only exacerbates this issue. This legislation aims to bridge the gap between smaller not-for-profit corporations and larger, better-capitalized ones by altering the structure and schedule of payments from the state.   SUMMARY OF PROVISIONS: Section 1: Amendment to Section 179-e. Defines "Small not-for-profit corporation" as having an annual budget of one million five hundred thousand dollars or less. Section 3: Amendment to Section 179-t Subdivision 6: Requires the Attorney General to publish a list of eligi- ble not-for-profit corporations based on compliance paperwork. Allows for addendums for late submissions. Subdivision 7:Mandates state agencies to disburse funds to small not- for-profit corporations within sixty days after receiving funding. Provides options for payment, including a single disbursement or alter- native arrangements. Allows corporations not receiving timely payments to petition the contracting agency and, if necessary, take legal action. Section 4: Effective Date Justification: This proposed legislation aims to address the pressing financial chal- lenges faced by small not-for-profit corporations in the State of New York. The legislative findings recognize the unique struggles. of these organizations in attracting talent, making timely payments, and covering operating expenses, particularly in the context of the post-pandemic economic landscape, inflation, and labor shortages. - By amending Sections 179-e and 179-t of the state finance law, the legislation seeks to redefine and streamline the payment processes for small not-for-profit corporations. The inclusion of a defined threshold for "Small not-for-profit corporation" ensures that the benefits of the amendments are directed to organizations with limited financial resources. The provisions in Section 3, Subdivision 7, are particularly designed to expedite the disbursement of funds, offering flexibility in payment options and recourse mechanisms for not-for-profit corporations facing delays. This legislation is crucial for fostering a more supportive financial environment for small not-for-profit corporations, enabling them to adapt their budgets, make timely payments, and compete more effectively with larger entities.   FISCAL IMPACT:   EFFECTIVE DATE: This act shall take effect ninety days after it shall have become a law.
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A09317 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9317
 
                   IN ASSEMBLY
 
                                    February 29, 2024
                                       ___________
 
        Introduced by M. of A. ZINERMAN -- read once and referred to the Commit-
          tee 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
    24  corporation  law,  whose annual budget is one million five hundred thou-
    25  sand dollars or less.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13764-01-3

        A. 9317                             2
 
     1    § 3. Section 179-t of the state finance law is amended by  adding  two
     2  new subdivisions 6 and 7 to read as follows:
     3    6.  Every calendar year, on or before January thirty-first, the attor-
     4  ney general shall publish a list of not-for-profit corporations in  good
     5  standing  with the state and eligible to receive funding from the state.
     6  Such list shall be constructed based upon the  compliance  paperwork  of
     7  not-for-profit  corporations  submitted  for the previous calendar year.
     8  For not-for-profit corporations who submit  their  compliance  paperwork
     9  after  January thirty-first and before April first, the attorney general
    10  shall publish addendums to said  list  including  not-for-profit  corpo-
    11  rations  that  are in good standing and eligible to receive funding from
    12  the state. Any agency executing  contract  renewals  for  not-for-profit
    13  corporations  on  such list shall not be required to submit said renewal
    14  contract to the comptroller for review.
    15    7. (a) Notwithstanding the time frame requirements set forth  in  this
    16  section,  a  state  agency administering a contract renewal with a small
    17  not-for-profit corporation as defined in this article  shall  make  best
    18  efforts to ensure the disbursement of moneys to the small not-for-profit
    19  corporation  within  sixty  days after the agency receives the appropri-
    20  ation or funding for the contract unless the agency receives the funding
    21  more than sixty days before the effective date of the contract.  If  the
    22  agency  receives  the applicable funding more than sixty days before the
    23  effective date of the contract, the agency shall disburse the  money  to
    24  the  small not-for-profit corporation prior to the effective date of the
    25  contract. The agency shall disburse the entire sum of money in a  single
    26  disbursement.
    27    (b) A small not-for-profit corporation may opt not to receive funds in
    28  a  single  disbursement  by  attaching a statement with their compliance
    29  paperwork requesting payment under the provisions of this chapter  which
    30  would otherwise be applicable.
    31    (c)  Small  not-for-profit  corporations  which  do  not receive their
    32  contractual disbursements within the time frames provided by this subdi-
    33  vision may petition the contracting agency to disburse any  moneys  owed
    34  within twenty days of receipt of such petition. If the contracting agen-
    35  cy  has not disbursed such moneys within twenty days, the small not-for-
    36  profit corporation affected may bring an article seventy-eight  proceed-
    37  ing  in  a  court of competent jurisdiction to enforce such contract and
    38  the provisions of this article.
    39    § 4. This act shall take effect on the first of January next  succeed-
    40  ing the date on which it shall have become a law.
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