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Ulster committee approves temporary waiver so one nonprofit can continue services while fixing tax/filing lapse
Summary
Legislators unanimously approved Resolution 226 to waive a county policy blocking new contracts or final payments to nonprofit vendors that are not current on federal/state reporting, allowing a vendor that recently lapsed to continue daily services while it cures compliance — expected within about a month.
The Ulster County Health, Human Services, and Human Rights Committee voted on May 8 to grant a temporary waiver that will allow a nonprofit vendor that fell out of compliance on required filings to continue providing county‑funded services while it returns to compliance.
Deputy Executive Amenta explained the background: a policy adopted last year required nonprofit vendors to be current on federal/state reporting to sign new contracts or receive final payments; the rule prompted earlier noncompliant organizations to come into compliance. "Everyone who was non‑compliant at the time of passage is now compliant," Amenta said. He told the committee the county now has "our first entity that fell out of compliance since," due in part to turnover; staff expect the agency to be compliant by the end of next month and asked the Legislature to permit a short waiver so the vendor can be paid for past services and sign contracts immediately.
Several legislators said they supported a narrowly tailored waiver but expressed concern about precedent. "My concern would be that the precedent that it would set," one legislator said, noting the original policy (Resolution 78) is new and that an exception soon after passage could weaken enforcement. Other members observed that the earlier rule had functioned as an early warning system and that a temporary waiver mechanism — limited in duration and subject to subsequent reporting — would encourage compliance while avoiding service interruptions for people receiving daily supports.
The resolution authorizes a waiver while staff and the controller develop a formal cure/waiver policy; committee discussion referenced a two‑thirds legislative threshold in the original resolution's waiver language. A motion to adopt Resolution 226 was moved by Legislator Harman and seconded by Legislator Collins; the committee recorded the motion as approved on a voice vote and the chair said the vote was unanimous.
Committee members asked staff to return with a written interim waiver policy and timeline for when the vendor will demonstrate compliance.
