File #: Int 1392-2025    Version: * Name: Quarterly advance payments to vendors under certain contracts with the dept of homeless services, the mayor's office of criminal justice and other agencies and to establish a pilot program for quarterly advance payments to vendors under contract.
Type: Introduction Status: Committee
Committee: Committee on Contracts
On agenda: 9/25/2025
Enactment date: Law number:
Title: A Local Law to amend the New York city charter, in relation to quarterly advance payments to vendors under certain contracts with the department of homeless services and the mayor's office of criminal justice, and to establish a pilot program for quarterly advance payments to vendors under contracts with other agencies
Sponsors: Adrienne E. Adams, Diana I. Ayala, Julie Won, Justin L. Brannan, Althea V. Stevens, Amanda Farías
Council Member Sponsors: 6
Summary: This bill would require quarterly advance payments to contractors under certain contracts with the Department of Homeless Services and the Mayor's Office of Criminal Justice, and a pilot program for quarterly advances for all other contracts. Beginning January 1, 2026, such contracts would be subject to advance payments of at least 25 percent of the contract value at the beginning of each quarter. By January 1, 2028, the Mayor would need to submit a report to the Council evaluating the effectiveness of quarterly advance payments. By January 1, 2030, the Mayor would need to submit a report to the Council evaluating the effectiveness of quarterly advance payments for contracts subject to the pilot program, and if appropriate, a plan to make permanent the program for contracts under the pilot program.
Indexes: Report Required, Sunset Date Applies
Attachments: 1. Summary of Int. No. 1392, 2. Int. No. 1392, 3. September 25, 2025 - Stated Meeting Agenda, 4. Hearing Transcript - Stated Meeting 9-25-25.pdf

Int. No. 1392

 

By The Speaker (Council Member Adams) and Council Members Ayala, Won, Brannan, Stevens and Farías

 

A Local Law to amend the New York city charter, in relation to quarterly advance payments to vendors under certain contracts with the department of homeless services and the mayor's office of criminal justice, and to establish a pilot program for quarterly advance payments to vendors under contracts with other agencies

 

 

Be it enacted by the Council as follows:

 

Section                      1.  Section 332 of the New York city charter, as amended by a local law to amend the New York city charter, in relation to the disbursement of a percentage of awards to non-profit organizations for contracts immediately upon registration by the comptroller, is amended by adding new subdivisions d and e to read as follows:

d. Quarterly advance payments for certain contracts. 1. Definition. For the purposes of this subdivision, the term "covered contracts" means (1) contracts processed by the department of homeless services for temporary housing assistance for single adults, adult families, and families with children, and (2) contracts processed by the mayor's office of criminal justice for goods, services or construction.

2. Beginning with covered contracts registered on or after January 1, 2026, and existing multi-year covered contracts with remaining periods on or after January 1, 2026, all such covered contracts shall be subject to a quarterly advance payment program as set forth in this subdivision.

3. The contracting agency associated with a covered contract shall process and pay to such contractors an advance payment equal to at least 25 percent of the value of such covered contract for the current fiscal year at the beginning of each quarter of that fiscal year, with the first payment made immediately upon the contract's registration by the comptroller. If the contracting agency advances more than 25 percent of the covered contract value in any quarter, such agency may reduce advance payments in subsequent quarters to ensure that the total advance payments do not exceed the covered contract value for that fiscal year.

4. Advance quarterly payments made pursuant to this subdivision shall not apply to the state or federal portion of any covered contract funded in whole or in part with state or federal monies if advance payments are inconsistent with the state or federal law or regulation authorizing the award of such covered contract; and such payments need not be issued for any covered contract where the contractor has failed to submit required invoices for such covered contract for three or more consecutive months during the prior fiscal year, where such failure to submit such invoices is attributable to contractor non-compliance rather than agency processing delays, pending agency actions, or payment system technical issues.

5. Contracting agencies shall establish a process for reclaiming advance payments when a contractor fails to deliver contracted services pursuant to a covered contract or when the actual covered contract value is less than the amount advanced.

6. Beginning January 1, 2028 and annually thereafter, the mayor's office of contract services shall submit to the speaker of the council and post on its website a report on the quarterly advance payment program's implementation for covered contracts. Such report shall include, but not be limited to:

(a) The number and value of covered contracts receiving quarterly advances;

(b) Agency compliance with quarterly advance payments on covered contracts, including instances of non- or delayed payments and the reasoning therefore, disaggregated by covered contract;

(c) A summary of contractor feedback on the effectiveness of quarterly advances on payment timelines; and

(d) Recommendations for any alterations to the program.

e. Quarterly advance payment pilot program for other contracts. 1. Definition. For the purposes of this subdivision, the term "pilot contract" means any contract processed by an agency other than the department of homeless services for temporary housing assistance for single adults, adult families, and families with children, or the mayor's office of criminal justice for goods, services or construction, with a value of one million dollars or more.

2. Beginning with pilot contracts registered on or after January 1, 2027, all pilot contracts shall be subject to the quarterly advance payment provisions set forth in paragraphs 3, 4, and 5 of subdivision d of this section.

3. Beginning January 1, 2028 and annually thereafter, the mayor's office of contract services shall submit to the speaker of the council and post on its website a report on the implementation of quarterly advance payments on pilot contracts. Such report shall include, but not be limited to:

(a) The number and value of pilot contracts receiving quarterly advances;

(b) Agency compliance with quarterly advance payments on pilot contracts, including instances of non- or delayed payments and the reasoning therefore, disaggregated by pilot contract;

(c) A summary of contractor feedback on the effectiveness of quarterly advances on payment timelines; and

(d) Recommendations for any alterations to the program.

4. No later than January 1, 2030, the mayor shall submit to the council an evaluation of the advance payment pilot program established by this subdivision and, if appropriate, a plan to make such pilot program permanent.

5. The quarterly advance payment pilot program shall expire on June 30, 2031, unless extended by local law.

§ 2. This local law takes effect immediately.

 

Session 13

LMH/ARP

LS # 19990

9/17/2025