2022 New York Laws
STF - State Finance
Article 11-B - Prompt Contracting and Interest Payments for Not-for-Profit Organizations
179-T - Time Frames for the Execution of Renewal Contracts.
§ 179-t. Time frames for the execution of renewal contracts. 1. (a) A state agency administering a contract shall notify the not-for-profit organization by mail of the agency's preliminary intention, subject to enactment of an appropriation, to renew or terminate the contract no later than ninety days prior to the end of the contract or any periods specified therein that require further contract documents in order to continue payments under the contract or thirty days after an appropriation providing funding for continued payments shall become law, whichever is later. In the event an appropriation is not necessary to renew the contract, such notification shall be mailed no later than ninety days prior to the end of the current contract. In the event an appropriation is necessary and a state budget has been enacted on or before the beginning of the state fiscal year in which the contract is to be renewed or terminated, which provides sufficient funding to the state agency to enable it to renew the contract, such notification shall be mailed no later than ninety days prior to the end of the current contract. In the event a state budget has not been enacted by the beginning of the state fiscal year in which the contract is to be renewed or terminated, such notification shall be mailed the later of: (i) thirty days after the enactment of a state budget which provides sufficient funding to the state agency to enable it to renew the contract; or (ii) ninety days prior to the end of the contract or any period specified therein that require further contract documents in order to continue payments under the contract.(b) In the event that a state agency is unable to comply with the time frames set forth in paragraph (a) of this subdivision due to unusual circumstances beyond the control of the state, no payment of interest shall be due to the not-for-profit organization. Such state agency shall document the unusual circumstances which are the basis for its inability to comply in a written notice to the office of the state comptroller, division of the budget and the not-for-profit organization on or before the date set forth in this subdivision for renewal of the contract. For the purposes of this paragraph, "unusual circumstances" does not mean such state agency's: (i) failure to plan for implementation of a program; (ii) failure to assign sufficient staff resources to implement a program; (iii) failure to establish a schedule for the implementation of a program; or (iv) failure to anticipate any other reasonably foreseeable circumstance.
(c) Not more than twenty days after the receipt of such written notice, the comptroller shall determine whether unusual circumstances beyond the control of the state warrant the denial of interest. The comptroller shall thereupon inform such state agency, the division of the budget, and such not-for-profit organization of such determination. If such determination concludes that the circumstances do not warrant a denial of interest, such state agency shall then immediately submit for the comptroller's approval a voucher requesting the payment of interest to such not-for-profit organization as required by section one hundred seventy-nine-v of this article. 2. The notice required by subdivision one of this section shall be in the form of a letter or may be the renewal contract. If the agency does not intend to renew the contract, such notification shall be in writing with reasons provided therefor. If the agency does not intend to renew the contract and does not notify the not-for-profit organization as required, the contract is deemed to continue and shall remain in effect until such time as the agency notifies the not-for-profit organization in the manner set forth in this subdivision. Expenses incurred during the extension shall be reimbursable under the terms of the existing contract. 3. Upon notifying a not-for-profit organization of its intent to renew a contract with such not-for-profit organization, the state agency shall negotiate a renewal contract and shall issue a written directive to the organization. The state agency shall take all necessary steps to insure that simplified contract documents are used to the maximum extent feasible. 4. A state agency shall submit any renewal contract to the attorney general no later than sixty days prior to the commencement date of the succeeding contract for his approval and the attorney general shall within fifteen days either approve such renewal contract or disapprove and return the renewal contract to the state agency with his reasons therefor. Upon approval of the attorney general all renewal contracts shall be delivered to the comptroller. Provided, however, a state agency shall submit any renewal contract consisting of simplified contract documents directly to the comptroller no later than sixty days prior to the commencement date of the succeeding contract. The comptroller shall within fifteen days after receipt of a renewal contract either approve such contract or disapprove and return such contract to the state agency with his reasons therefor. Immediately upon receiving notice of approval of the renewal contract from the comptroller, the state agency shall mail notification of such approval to the not-for-profit organization. 5. Any state agency in receipt of a renewal contract disapproved by the attorney general or comptroller shall immediately notify the affected not-for-profit organization and undertake, in conjunction with the organization, those actions necessary and appropriate, if any, to remedy any deficiencies in the contract.
