Int. No. 901
By Council Members Lee, Louis, Narcisse and Morano
A Local Law to amend the administrative code of the city of New York, in relation to the payment of invoices during pending contract modifications on human services contracts
Be it enacted by the Council as follows:
Section 1. Chapter 1 of title 6 of the administrative code of the city of New York is amended by adding a new section 6-148.1 to read as follows:
§ 6-148.1. Payment of invoices during pending contract modifications. a. Definitions. For the purposes of this section, the following terms have the following meanings:
Covered contract. The term “covered contract” has the same meaning as such term is defined in section 6-148.
Pending budget modification. The term “pending budget modification” means a budget modification that has been submitted to a contracting agency and has not been approved or denied.
b. A contracting agency shall not prohibit or otherwise restrict a contractor from submitting an invoice for a covered contract solely due to the existence of a pending budget modification.
c. Where a pending budget modification exists on a covered contract, a contractor may continue to submit invoices for allowable costs incurred under such contract. Any withholding of payment on a covered contract due to a pending budget modification shall be limited to the specific amounts directly affected by such pending budget modification. The contracting agency shall process and pay undisputed amounts on invoices submitted pursuant to this section on the timeline required by section 4-06 of the procurement policy board rules.
d. Upon final approval or denial of a pending budget modification, a contracting agency may reconcile payments made pursuant to this section against the final budget of the contract.
e. No later than 15 business days after receipt of a pending budget modification, the contracting agency shall approve, deny, or return such budget modification to the contractor for revision. If a contracting agency denies a budget modification or returns it for revision, such agency shall provide written notice to the contractor stating the basis for such denial or request for revision.
f. No later than October 1, 2027, and annually thereafter, the city chief procurement officer shall submit to the speaker of the council and post on the website of the mayor’s office of contract services a report regarding budget modifications for covered contracts during the preceding fiscal year. Such report shall include, at minimum: (i) the total number of budget modifications submitted, disaggregated by contracting agency; (ii) the number approved, denied, and returned for revision, disaggregated by contracting agency; (iii) the number of contractors subject to a payment hold on a contract with pending budget modification; and (iv) the total dollar amount withheld from contractors during such pending budget modifications.
§ 2. This local law takes effect 180 days after it becomes law.
Session 14
ARP
LS # 21058
4/28/2026