Bill > S07001

This bill modifies state finance law to improve contracting procedures between state agencies and not-for-profit organizations. The bill expands the definition of "renewal contract" to include new contracts providing similar services to previous agreements. It requires written directives from state agencies to include detailed payment schedules and instructions for accessing a short-term revolving loan fund. The legislation mandates that state agencies provide automatic advance payments of 25% of the total contract award within 30 days of contract execution, with recoupment in the final contract quarter. The bill also updates interest payment regulations, establishing that interest will be calculated using the current prime interest rate and paid in full with the first contract payment. Additionally, the bill ensures that not-for-profit organizations receive a minimum indirect cost rate of 15% or their federally-approved rate in all state agency contracts, and specifies that expenses like furniture, technology, equipment, and necessary training are considered direct expenses. The legislation aims to provide more financial stability and transparency for not-for-profit organizations working with state agencies by streamlining contract processes and improving payment mechanisms.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S7001