Bill Text: NY A07432 | 2017-2018 | General Assembly | Introduced

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Bill Title: Requires contracts with any state agency, authority, or any other state-controlled entity in excess of two hundred fifty thousand dollars to be approved by the state comptroller.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-01-03 - referred to governmental operations [A07432 Detail]

Download: New_York-2017-A07432-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          7432
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                     April 25, 2017
                                       ___________
        Introduced  by  M.  of  A.  O'DONNELL  --  read once and referred to the
          Committee on Governmental Operations
        AN ACT to amend the state finance law, the public  authorities  law  and
          the  education  law, in relation to requiring contracts with any state
          agency, authority, or any other state-controlled entity in  excess  of
          two  hundred  fifty thousand dollars to be approved by the state comp-
          troller; and to repeal section 6283 of the education law  relating  to
          procurements of the fund
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Paragraph (a) of subdivision 2 of section 112 of the  state
     2  finance  law,  as  amended  by section 18 of part L of chapter 55 of the
     3  laws of 2012, is amended to read as follows:
     4    (a) Before any contract made for or by any state  agency,  department,
     5  board, officer, commission, or institution, except the office of general
     6  services,  shall be executed or become effective, whenever such contract
     7  exceeds fifty thousand dollars in amount and before  any  contract  made
     8  for  or  by  the  office of general services shall be executed or become
     9  effective, whenever such contract exceeds eighty-five  thousand  dollars
    10  in  amount,  it  shall first be approved by the comptroller and filed in
    11  his or her office, [with the exception of  contracts  established  as  a
    12  centralized contract through the office of general services and purchase
    13  orders  or  other procurement transactions issued under such centralized
    14  contracts. The] provided, however, that the  comptroller  shall  make  a
    15  final  written  determination  with respect to approval of such contract
    16  within ninety days of the submission of such  contract  to  his  or  her
    17  office  unless the comptroller shall notify, in writing, the state agen-
    18  cy, department, board, officer, commission, or institution, prior to the
    19  expiration of the ninety day period, and for good cause, of the need for
    20  an extension of not more than fifteen days, or a  reasonable  period  of
    21  time agreed to by such state agency, department, board, officer, commis-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10466-01-7
        A. 7432                             2
     1  sion,  or  institution and provided, further, that such written determi-
     2  nation or extension shall be made part of the procurement record  pursu-
     3  ant to paragraph f of subdivision one of section one hundred sixty-three
     4  of this chapter.
     5    § 2. Subdivision 1 of section 2879-a of the public authorities law, as
     6  added by chapter 506 of the laws of 2009, is amended to read as follows:
     7    1. Except as set forth in subdivision three of this section, where the
     8  comptroller determines pursuant to his or her authority to supervise the
     9  accounts  of  public  corporations,  that  contracts  or  categories  of
    10  contracts in excess of [one million] two hundred fifty thousand  dollars
    11  (a) to be awarded by a state authority to a single source, a sole source
    12  or  pursuant to any other method of procurement that is not competitive,
    13  or (b) which are to be paid in whole or in part from monies appropriated
    14  by the state to a state  authority  for  such  contractual  expenditure,
    15  require  supervision  in  the  form of prior review and approval of such
    16  contracts, and the comptroller so notifies such authority of such deter-
    17  mination, then any such contract entered into subsequent to such notifi-
    18  cation shall be submitted to the comptroller for his or her approval and
    19  shall not be a valid enforceable contract unless  it  shall  first  have
    20  been  approved  by the comptroller. Such notification shall identify the
    21  process for submission, the categories of contracts  at  issue  and  the
    22  time  period for which such submission is to take place. The comptroller
    23  shall promulgate such rules and regulations as may be necessary to carry
    24  out his or her responsibilities under this section,  including  but  not
    25  limited to the standards for determining which contracts will be subject
    26  to his or her review and for approving such contracts.
    27    §  3.  Subdivisions  5  and  6 of section 355 of the education law, as
    28  amended by section 1 of subpart B of part D of chapter 58 of the laws of
    29  2011, paragraph (a) of subdivision 5 as amended by section 31 of part  L
    30  of chapter 55 of the laws of 2012, are amended to read as follows:
    31    5.  Notwithstanding  the  provisions of subdivision two of section one
    32  hundred twelve and sections one hundred fifteen, one hundred  sixty-one,
    33  and  one  hundred  sixty-three  of  the state finance law and [sections]
    34  section three [and six] of the New York state printing and public  docu-
    35  ments  law  or any other law to the contrary, the state university trus-
    36  tees are authorized and empowered to:
    37    a.  (i)  purchase  materials,   proprietary   electronic   information
    38  resources  including  but  not  limited  to  academic, professional, and
    39  industry journals, reference handbooks and  manuals,  research  tracking
    40  tools, indexes and abstracts, equipment and supplies, including computer
    41  equipment  and  motor  vehicles,  where the amount for a single purchase
    42  does not  exceed  two  hundred  fifty  thousand  dollars,  (ii)  execute
    43  contracts   for  services  and  construction  [and  construction-related
    44  services] contracts to an amount not exceeding two hundred  fifty  thou-
    45  sand dollars, and (iii) contract for printing to an amount not exceeding
    46  two  hundred fifty thousand dollars, without prior approval by any other
    47  state officer or agency, but subject to rules and regulations or  guide-
    48  lines  of  the  state  comptroller  not  otherwise inconsistent with the
    49  provisions of this section and in accordance with guidelines promulgated
    50  by the state university board of trustees after  consultation  with  the
    51  state  comptroller.  In  addition, the trustees, after consultation with
    52  the commissioner of general services, are authorized to annually negoti-
    53  ate with the state comptroller increases in  the  aforementioned  dollar
    54  limits  and  the  exemption  of  any articles, categories of articles or
    55  commodities from these limits.   Guidelines  promulgated  by  the  state
    56  university  board  of trustees shall, to the extent practicable, require
        A. 7432                             3
     1  that competitive proposals be solicited for purchases, and shall include
     2  requirements that purchases and contracts authorized under this  section
     3  be  at  the  lowest  available  price, including consideration of prices
     4  available through other state agencies, consistent with quality require-
     5  ments,  and as will best promote the public interest. Such purchases may
     6  be made directly from  any  contractor  pursuant  to  any  contract  for
     7  commodities  let  by  the  office of general services or any other state
     8  agency;
     9    [a-1. execute contracts for services to an amount not exceeding twenty
    10  thousand dollars without prior approval by any other  state  officer  or
    11  agency,  but  subject  to rules and regulations of the state comptroller
    12  not otherwise inconsistent with the provisions of this  section  and  in
    13  accordance with the guidelines promulgated by the state university board
    14  of  trustees after consultation with the state comptroller. In addition,
    15  the trustees,  after  consultation  with  the  commissioner  of  general
    16  services,  are  authorized  to  annually  negotiate with the state comp-
    17  troller increases in the aforementioned dollar limits and the  exemption
    18  of any services or categories of services from these limits;]
    19    b.  to  establish  cash advance accounts for the purpose of purchasing
    20  materials, supplies, or services, for cash advances for travel  expenses
    21  and per diem allowances, or for advance payment of wages and salary. The
    22  account  may  be  used to purchase such materials, supplies, or services
    23  where the amount of a single  purchase  does  not  exceed  one  thousand
    24  dollars,  in  accordance  with such guidelines as shall be prescribed by
    25  the state university trustees after consultation with  the  state  comp-
    26  troller;
    27    c.  establish  guidelines  in  consultation  with  the commissioner of
    28  general services authorizing participation by the  state  university  in
    29  programs administered by the office of general services for the purchase
    30  of  available  New York state food products. The commissioner of general
    31  services shall provide assistance to the state university  necessary  to
    32  enable the university to participate in these programs;
    33    d. award contract extensions for campus transportation without compet-
    34  itive  bidding  where such contracts were secured either through compet-
    35  itive bidding or through evaluation of proposals,  however  such  exten-
    36  sions  may be rejected if the amount to be paid to the contractor in any
    37  year of such proposed extension fails to reflect  any  decrease  in  the
    38  regional  consumer  price index for the New York, New York-Northeastern,
    39  New Jersey area, based upon the index for all  urban  consumers  (CPI-U)
    40  during  the  preceding  twelve-month period. At the time of any contract
    41  extension, consideration shall be  given  to  any  competitive  proposal
    42  offered  by  a  public  transportation  agency.  Such  contract  may  be
    43  increased for each year of the contract extension by an  amount  not  to
    44  exceed  the regional consumer price index increase for the New York, New
    45  York-Northeastern, New Jersey area, based upon the index for  all  urban
    46  consumers (CPI-U), during the preceding twelve-month period, provided it
    47  has  been  satisfactorily  established  by the contractor that there has
    48  been at least an equivalent increase in the amount of his cost of opera-
    49  tion, during the period of the contract.
    50    [e. guidelines promulgated by the state university board  of  trustees
    51  shall,  to the extent practicable, require that competitive proposals be
    52  solicited for purchases, and shall include requirements  that  purchases
    53  and  contracts  authorized under this section be at the lowest available
    54  price, including consideration of prices available through  other  state
    55  agencies, consistent with quality requirements, and as will best promote
    56  the  public  interest.  Such  purchases  may  be  made directly from any
        A. 7432                             4

     1  contractor pursuant to any contract for commodities let by the office of
     2  general services or any other state agency.]
     3    6.  To enter into any contract or agreement deemed necessary or advis-
     4  able after consultation with appropriate state agencies for carrying out
     5  the objects and purposes of state university  without  prior  review  or
     6  approval by any state officer or agency other than the state comptroller
     7  and  the  attorney  general  including  contracts with non-profit corpo-
     8  rations organized by officers, employees, alumni or  students  of  state
     9  university  for  the furtherance of its objects and purposes.  Contracts
    10  or agreements entered into with the federal government to enable partic-
    11  ipation in federal student loan programs, including any and all  instru-
    12  ments  required  thereunder, shall not be subject to the requirements of
    13  section forty-one of the state finance law; provided, however, that  the
    14  state  shall  not be liable for any portion of any defaults which it has
    15  agreed to assume pursuant to any such agreement in an amount  in  excess
    16  of  money  appropriated  or otherwise lawfully available therefor at the
    17  time the liability for payment arises. [The  foregoing  notwithstanding,
    18  any  contract  made  for or by the state university for the purchase of:
    19  (i) materials, equipment and  supplies,  including  computer  equipment;
    20  (ii)   motor   vehicles;  (iii)  construction  and  construction-related
    21  services contracts; and (iv) printing shall  not  be  subject  to  prior
    22  approval by any other state officer or agency.]
    23    §  4.  Paragraph  b  of subdivision 16 of section 355 of the education
    24  law, as amended by section 1 of subpart C of part D of chapter 58 of the
    25  laws of 2011, is amended to read as follows:
    26    b. Notwithstanding the provisions of subdivision two  of  section  one
    27  hundred twelve of the state finance law[,] relating to the dollar thres-
    28  hold  requiring the comptroller's approval of contracts, subdivision six
    29  of section one hundred sixty-three of the state finance law [and section
    30  sixty-three of the  executive  law]  (i)  authorize  contracts  for  the
    31  purchase  of  goods for state university health care facilities which do
    32  not exceed two hundred fifty thousand dollars without prior approval  by
    33  any  other  state  officer  or  agency, including contracts for joint or
    34  group purchasing arrangements of goods, in  accordance  with  procedures
    35  and  requirements  found  in  paragraph  a  of  subdivision five of this
    36  section, and (ii) authorize contracts for services which do  not  exceed
    37  seventy-five  thousand dollars without prior approval by any other state
    38  officer or agency in accordance with procedures and  requirements  found
    39  in paragraph a of subdivision five of this section. Contracts authorized
    40  pursuant  to  this paragraph shall be subject to article fourteen of the
    41  civil service law and the applicable provisions  of  agreements  between
    42  the state and employee organizations pursuant to article fourteen of the
    43  civil service law.
    44    The trustees are authorized to negotiate annually with the state comp-
    45  troller increases in the aforementioned dollar limits.
    46    § 5. Subdivision 12 of section 373 of the education law, as amended by
    47  section  2  of subpart A of part D of chapter 58 of the laws of 2011, is
    48  amended to read as follows:
    49    12. To procure and execute contracts, lease agreements, and all  other
    50  instruments  necessary  or  convenient for the exercise of its corporate
    51  powers and the fulfillment of its corporate purposes  under  this  arti-
    52  cle[.   Notwithstanding subdivision two of section one hundred twelve of
    53  the state finance law or any other law to the  contrary,  fund  procure-
    54  ments shall not be subject to the prior approval of any state officer or
    55  agency];
        A. 7432                             5
     1    §  6.  Subdivisions  a  and  a-1 of section 6218 of the education law,
     2  subdivision a as amended and subdivision a-1 as added by  section  2  of
     3  subpart  B of part D of chapter 58 of the laws of 2011, subparagraph (i)
     4  of paragraph 1 of subdivision a as amended by section 33 of  part  L  of
     5  chapter 55 of the laws of 2012, are amended to read as follows:
     6    a.  Notwithstanding  the  provisions of subdivision two of section one
     7  hundred twelve and sections one hundred fifteen, one  hundred  sixty-one
     8  and  one  hundred  sixty-three  of  the state finance law and [sections]
     9  section three [and six] of the New York state printing and public  docu-
    10  ments  law  or  any  other  law  to the contrary, the city university is
    11  authorized and empowered to:
    12    [(1)]  (i)  purchase  materials;  proprietary  electronic  information
    13  resources,  including,  but  not  limited to, academic, professional and
    14  industry journals, reference handbooks and  manuals,  research  tracking
    15  tools,  indexes  and  abstracts;  and  equipment and supplies, including
    16  computer equipment and motor vehicles, where the  amount  for  a  single
    17  purchase  does  not  exceed  two  hundred  fifty  thousand dollars, (ii)
    18  execute contracts for [construction  and  construction-related  services
    19  contracts]  services  to an amount not exceeding two hundred fifty thou-
    20  sand dollars, and (iii) contract for printing to an amount not exceeding
    21  two hundred fifty thousand dollars, without prior approval by any  other
    22  state  officer or agency, but subject to rules and regulations or guide-
    23  lines of the state  comptroller  not  otherwise  inconsistent  with  the
    24  provisions of this section and in accordance with the guidelines promul-
    25  gated  by  the city university board of trustees after consultation with
    26  the state comptroller.   In addition, the  trustees  are  authorized  to
    27  annually negotiate with the state comptroller increases in the aforemen-
    28  tioned  dollar  limits  and the exemption of any articles, categories of
    29  articles or commodities from these limits. Guidelines promulgated by the
    30  city university board of trustees  shall,  to  the  extent  practicable,
    31  require that competitive proposals be solicited for purchases, and shall
    32  include  requirements that purchases and contracts authorized under this
    33  section be at the lowest possible price.
    34    [(2) execute contracts for services to an amount not exceeding  twenty
    35  thousand  dollars  without  prior approval by any other state officer or
    36  agency, but subject to rules and regulations of  the  state  comptroller
    37  not  otherwise  inconsistent  with the provisions of this section and in
    38  accordance with the guidelines promulgated by the city university  board
    39  of  trustees after consultation with the state comptroller. In addition,
    40  the trustees,  after  consultation  with  the  commissioner  of  general
    41  services,  are  authorized  to  annually  negotiate with the state comp-
    42  troller increases in the aforementioned dollar limits and the  exemption
    43  of any services or categories of services from these limits.
    44    a-1.  Guidelines  promulgated by the city university board of trustees
    45  shall, to the extent practicable, require that competitive proposals  be
    46  solicited  for  purchases, and shall include requirements that purchases
    47  and contracts authorized under this section be at the  lowest  available
    48  price.]
    49    § 7. Section 6283 of the education law is REPEALED.
    50    § 8. This act shall take effect immediately; provided, however, that:
    51    a.  the amendments to subdivision 5 and 6 of section 355 of the educa-
    52  tion law, made by section three of this act shall not affect the expira-
    53  tion and reversion of such subdivisions pursuant to section 4 of subpart
    54  B of part D of chapter 58 of the laws of 2011, as amended, and shall  be
    55  deemed expired therewith;
        A. 7432                             6
     1    b.  the  amendments to paragraph b of subdivision 16 of section 355 of
     2  the education law made by section four of this act shall not affect  the
     3  expiration  and  reversion  of  such  paragraph pursuant to section 3 of
     4  subpart C of part D of chapter 58 of the laws of 2011, as  amended,  and
     5  shall be deemed expired therewith;
     6    c.  the  amendments  to subdivision 12 of section 373 of the education
     7  law, made by section five of this act shall not  affect  the  expiration
     8  and  reversion of such subdivision pursuant to section 4 of subpart A of
     9  part D of chapter 58 of the laws of  2011,  as  amended,  and  shall  be
    10  deemed expired therewith; and
    11    d.  the  amendments  to subdivision a of section 6218 of the education
    12  law made by section six of this act shall not affect the expiration  and
    13  reversion of such subdivision pursuant to section 4 of subpart B of part
    14  D  of  chapter  58  of the laws of 2011, as amended, and shall be deemed
    15  expired therewith.