Int. No. 1047
By Council Members Lee and Restler
A Local Law to amend the administrative code of the city of New York, in relation to establishing budget-readiness and invoiceability standards for 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 6-152 to read as follows:
§ 6-152 Budget readiness and invoiceability for human services contracts. a. Definitions. For purposes of this section, the following terms have the following meanings:
Covered agency. The term “covered agency” means an agency that enters into, renews, extends, amends, modifies, administers, or makes payments pursuant to a covered contract.
Covered contract. The term “covered contract” means a contract for human services, as such term is defined in section 6-148, that has a value greater than the small purchase limit set forth in section 3-08 of title 9 of the rules of the city of New York. The term "covered contract" does not include a contract entered into before the effective date of the local law that added this section.
Covered contract action. The term “covered contract action” means the registration, renewal, extension, amendment, modification, fiscal year budget approval, or other agency action necessary to authorize payment under a covered contract.
Funding setup. The term "funding setup" means the completion of any action necessary to make funds available for payment under a covered contract action.
Invoiceable. The term "invoiceable" means that a contractor is able to submit an invoice or payment request for services performed or costs incurred under a covered contract through the applicable city contract management system, and that the covered agency has completed the budget approval, funding setup, and required system approvals associated with a covered contract action under such covered contract that are necessary for such invoice or payment request to be processed.
b. The city chief procurement officer, in consultation with the office of management and budget, shall establish standards and procedures for budget readiness and invoiceability for covered contract actions. Such standards and procedures shall include, at a minimum:
1. A process for covered agencies to begin review of a proposed contract budget, fiscal year budget, budget modification, or other budget document before approval of a covered contract action;
2. Timeframes for completing budget approval, funding setup, and required system approvals for covered contract actions; and
3. Standard written notices to contractors regarding invoiceability status.
c. For each covered contract action, a covered agency shall complete the budget approval, funding setup, and required system approvals necessary for such covered contract action to be invoiceable no later than the later of:
1. The contract start date;
2. The effective date of the covered contract action; or
3. The date on which the comptroller registers such covered contract.
d. If a covered contract action is not invoiceable by 10 business days after the deadline set forth in subdivision c, the covered agency shall provide a written notice to the contractor and the city chief procurement officer identifying:
1. Each budget approval, funding setup, or required system approval that remains outstanding;
2. The office, unit, or position within the covered agency responsible for completing each such step; and
3. The expected date by which such covered contract action will become invoiceable.
e. No later than one year after the effective date of the local law that added this section, and quarterly thereafter, the city chief procurement officer shall submit to the mayor and the speaker of the council, and post on the website of the mayor’s office of contract services, a report on covered contract actions that were registered, approved, or otherwise made effective but not invoiceable by the deadline set forth in subdivision c of this section during the preceding quarter. Such report shall include, for each such covered contract action:
1. the covered agency;
2. the contract registration number;
3. the contractor name;
4. the contract registration date or effective date of the covered contract action;
5. the reason such covered contract action was not invoiceable; and
6. the date on which such covered contract action became invoiceable, if applicable.
§ 2. This local law takes effect 180 days after it becomes law.
Session 14
ARP
LS # 24410
7/15/2026