Albany, NY – Governor Hochul vetoed a bill on Friday by Senator Shelley Mayer and Assembly Member Amy Paulin that aims to address the unacceptably slow contract and procurement process faced by non-profit organizations that contract with New York State.

S.4877A.2740B would have required agencies that fail to submit renewal contracts to the Attorney General or execute them in a timely fashion to report to the State Comptroller on the status of those late contracts. The bill also would have required agencies with delayed contracts to report to the Comptroller on barriers to submitting and executing contracts in a timely manner, and their plans to address those issues.

New York State relies on not-for-profits for everything from early education childhood programs to safety net services including mental health assistance, homeless shelters and legal counseling. The state outsources to and relies on not-for-profits to provide these services, and without them many programs would not even exist. These agencies are performing work that the state is obligated to do by law. It would be more expensive if the state did the work. Unfortunately, the timeliness of the state’s contracting process and procurement is consistently slow, delaying payments and often undermining the financial stability of these organizations.

New York State Senator Shelley B. Mayer said, “I am deeply disappointed that Governor Hochul has vetoed a bill that would have helped non-profit organizations across the state deliver vital services to our communities. For years, I have heard from non-profits about the challenges created by delays in executing their contracts with the state. This legislation would have provided needed transparency for non-profits with delayed contracts, and pushed state agencies to address bottlenecks and other barriers to their ability to execute contracts in a timely manner. Although this is a setback, I will continue to fight, alongside my colleague Assemblymember Paulin, to support our non-profits and address persistent delays in state contracting.”

Assemblymember Amy Paulin said, “I am deeply disappointed with Governor Hochul’s veto of A.2740b/S.4977a, which would have helped to ensure timely payment to not-for-profits which contract with New York State. This legislation would ensure that the state does not continue to put our state’s not-for-profits in precarious and unfair financial situations. Likewise, it will improve the contracting process and ultimately the delivery of essential services to New Yorkers. For these reasons State Senator Mayer and I will be reintroducing this bill in the 2025 Legislative Session. Upon its passage in the Legislature, I urge Governor Hochul to swiftly sign it into law.”