ASSEMBLY STANDING COMMITTEE ON GOVERNMENTAL OPERATIONS
NOTICE OF PUBLIC HEARING
ORAL TESTIMONY BY INVITATION ONLY
The purpose of this hearing is to examine the effectiveness of the State's Prompt Contracting law, which entitles not-for-profit organizations to timely renewals for their contracts with the State, and interest payments to cover their increased costs when timely renewals are not made.
Not-for-profit corporations frequently contract with State agencies to provide needed services in communities throughout New York that the State would be unable to provide without their assistance. These relationships may last many years; however, when renewals of the contracts between these entities and the State are delayed, the uncertainty and financial difficulty that may result to the not-for-profit may severely hamper their ability to provide continuous services for New York's most vulnerable, and may lead to an interruption of service and substantial financial difficulty. Article XI-B of the State Finance Law was enacted in 1991, and updated in 2007, to provide protection for those not-for-profits whose contracts have been delayed, often through no fault of their own, including reasonable interest payments to reimburse them for the loans and lines of credit they may have had to take out to maintain fiscal solvency.
The Committee will be examining the extent and length of renewal delays between agencies and not-for-profits, the reason for such delays, and whether State agencies are paying the interest due to not-for-profits under the law. The Committee will also consider potential improvements, both regulatory and statutory, to the Prompt Contracting Law and its implementation to ensure that the intent of the law is being realized.
Oral Testimony is by invitation only. Persons wishing to present a written statement to the Committee at this hearing should complete and return the enclosed reply form as soon as possible. It is important that the reply form be fully completed and returned so that persons may be notified in the event of emergency postponement or cancellation. Ten copies of any prepared testimony should be submitted at the hearing registration desk. The Committee would appreciate advance receipt of prepared statements. In order to further publicize these hearings, please inform interested parties and organizations of the Committee's interest in hearing testimony from all sources.
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