BILL NUMBER: S5757
SPONSOR: CLEARE
 
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 OR GENERAL IDEA OF BILL:
This bill is designed to address the financial challenges faced by small
not-for-profit corporations in the State of New York. Nonprofit 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 rede-
fine 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.
 
PRIOR LEGISLATIVE HISTORY:
2023-2024: A9317 Died in Committee
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
N/A
 
EFFECTIVE DATE:
This act shall take effect ninety days after it shall have become a law.

Statutes affected:
S5757: 179-e state finance law, 179-t state finance law