2023 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.