Bill > A07616

This bill proposes several key changes to improve contracting procedures between state agencies and not-for-profit organizations. The bill expands the definition of "renewal contract" to include new contracts that provide similar services to previous agreements, and requires written directives to include detailed invoicing and payment schedules. It mandates that state agencies provide automatic advance payments of 25% of the total contract award within 30 days of contract execution to help not-for-profit organizations cover initial expenses. The bill also updates interest payment provisions, establishing that interest will be calculated using the current prime interest rate and paid in full with the first contract payment. Additionally, the legislation requires a minimum indirect cost rate of at least 15% in all not-for-profit organization contracts, allows for more flexible budget modifications, and mandates that expenses like furniture, technology, equipment, and necessary training be considered direct expenses. The bill aims to provide more financial stability and transparency for not-for-profit organizations working with state agencies by streamlining contract processes, ensuring timely payments, and providing clearer guidelines for financial management.

Budget and Finance, Government Affairs

https://www.nysenate.gov/legislation/bills/2025/A7616