Amd §112, St Fin L; amd §§355, 373, 6218 & 6275, Ed L (as proposed in S.6809-A & A.7925-A)
Relates to the oversight of certain contracts by the comptroller; provides for the oversight of contracts by the comptroller based upon the dollar amounts of such contracts.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A624
SPONSOR: Zebrowski TITLE OF BILL:
An act to amend the state finance law and the education law, in relation
to the oversight of certain contracts by the comptroller
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to amend Chapter 839 of the Laws of 839 in
order to restore the Office of the State Comptroller's oversight over
certain state contracts.
SUMMARY OF PROVISIONS:
Section one of the bill would increase the threshold amount for
contracts established as centralized contracts through the New York
State Office of General Services which are subject to review and
approval by the New York State Comptroller ("State Comptroller") from
$85,000 to $125,000. It would also subject any purchase order or other
procurement transaction issued under such a centralized contract which
exceeds $200,000 to review and approval by the State Comptroller. This
section would also provide that review and approval of certain central-
ized contracts, State University of New York contracts, and City Univer-
sity of New York contracts must be completed within 75 days of
submission to the Office of the State Comptroller unless an extension is
agreed to.
Section two of the bill would increase the threshold amount for
contracts for the purchase of goods and services by the State University
of New York which are subject to review and approval by the State Comp-
troller from $50,000 to $75,000.
Section three of the bill would increase the threshold amount for
contracts for the purchase of goods and services for State University of
New York health care facilities which are subject to review and approval
by the State Comptroller from $75,000 to $150,000.
Section four of this bill would limit the threshold amount for contracts
entered into by the State University of New York Construction Fund which
are subject to review and approval by the State Comptroller to $75,000.
Section five of this bill would increase the threshold amount for
contracts for the purchase of goods and services by the City University
of New York which are subject to review and approval by the State Comp-
troller from $50,000 to $75,000.
Section six of this bill would limit the threshold amount for contracts
entered into by the City University of New York Construction Fund which
are subject to review and approval by the State Comptroller to $75,000.
Section seven would establish the effective date. JUSTIFICATION: Start-
ing in 2011, the state budget process has been used to erode the state
Comptroller's oversight authority for various state contracts. At the
time, these alterations to the Comptroller's oversight authority were
presented as. creating cost-saving measures and new efficiencies that
would ensure the success of one of the Governor's economic development
programs, the Buffalo Billion. A few years later, the Buffalo Billion
was marred by scandal, in which several state officials were implicated
for accepting bribes in exchange for steering state contracts.
In 2019, The Governor's office entered into a memorandum of understand-
ing with the Office of the State Comptroller, reestablishing some but
not all of the Comptroller's oversight authority. Chapter 839 of the
Laws of 2022 restores the Office of the State Comptroller's oversight
for these state contracts in order to promote greater transparency and
accountability in state procurement. This chapter amendment would make
adjustments to scope of such contracts subject to the Comptroller's
review and approval in order to maintain oversight and ensure the timely
and efficient administration of government..
PRIOR LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
EFFECTIVE DATE:
This act shall take effect on the same date and in the same manner as a
chapter of the laws of 2022, amending the state finance law and the
education law relating to restoring oversight of certain contracts by
the comptroller, as proposed in legislative bills numbers S. 6809-A and
A. 7925-A, takes effect.
STATE OF NEW YORK
________________________________________________________________________
624
2023-2024 Regular Sessions
IN ASSEMBLY
January 10, 2023
___________
Introduced by M. of A. ZEBROWSKI -- read once and referred to the
Committee on Governmental Operations
AN ACT to amend the state finance law and the education law, in relation
to the oversight of certain contracts by the comptroller
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 a chapter of the laws of 2022, amending the
3 state finance law and the education law relating to restoring oversight
4 of certain contracts by the comptroller, as proposed in legislative
5 bills numbers S. 6809-A and A. 7925-A, is amended to read as follows:
6 (a) (i) Before any contract: (1) made for or by any state agency,
7 department, board, officer, commission, or institution, except the
8 office of general services or its customer agencies serviced by the
9 office of general services business services center, shall be executed
10 or become effective, whenever such contract exceeds fifty thousand
11 dollars in amount [and before any contract], it shall first be approved
12 by the office of the comptroller and filed in his or her office; (2)
13 made for or by the office of general services, whether for itself or for
14 its customer agencies serviced by the office of general services busi-
15 ness services center, shall be executed or become effective, whenever
16 such contract exceeds eighty-five thousand dollars in amount, it shall
17 first be approved by the comptroller and filed in his or her office; or
18 (3) established as a centralized contract through the office of general
19 services shall be executed or become effective, whenever such contract
20 exceeds one hundred twenty-five thousand dollars in amount, it shall
21 first be approved by the comptroller and filed in his or her office;
22 provided, however, before any purchase order or other procurement trans-
23 action issued under such centralized contract, which exceeds two hundred
24 thousand dollars in amount shall be executed or become effective, it
25 shall first be approved by the comptroller and filed in his or her
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04224-01-3
A. 624 2
1 office. Provided, further, however, that with the exception of contracts
2 identified in subparagraph (ii) of this paragraph the comptroller shall
3 make a final written determination with respect to approval of such
4 contract within ninety days of the submission of such contract to his or
5 her office unless the comptroller shall notify, in writing, the state
6 agency, department, board, officer, commission, or institution, prior to
7 the expiration of the ninety day period, and for good cause, of the need
8 for an extension of not more than fifteen days, or a reasonable period
9 of time agreed to by such state agency, department, board, officer,
10 commission, or institution and provided, further, that such written
11 determination or extension shall be made part of the procurement record
12 pursuant to paragraph f of subdivision one of section one hundred
13 sixty-three of this chapter.
14 (ii) Before any contract established as a centralized contract through
15 the office of general services, as provided for in item three of subpar-
16 agraph (i) of this paragraph, or any contract made in accordance with
17 subdivision five, six or paragraph b of subdivision sixteen of section
18 three hundred fifty-five of the education law, section three hundred
19 seventy-three of the education law, section sixty-two hundred eighteen
20 of the education law, or section sixty-two hundred seventy-five of the
21 education law, shall be executed or become effective, such contract
22 shall first be approved by the comptroller and filed in his or her
23 office. Provided, however, that the comptroller shall make a final
24 written determination with respect to approval of such contract within
25 seventy-five days of the submission of such contract to his or her
26 office unless the comptroller shall notify, in writing, the state agen-
27 cy, department, board, officer, commission, or institution, prior to the
28 expiration of the seventy-five day period, and for good cause, of the
29 need for an extension of not more than fifteen days, or a reasonable
30 period of time agreed to by such state agency, department, board, offi-
31 cer, commission, or institution and provided, further, that such written
32 determination or extension shall be made part of the procurement record
33 pursuant to paragraph f of subdivision one of section one hundred
34 sixty-three of this chapter.
35 § 2. Paragraph a of subdivision 5 of section 355 of the education law,
36 as added by a chapter of the laws of 2022, amending the state finance
37 law and the education law relating to restoring oversight of certain
38 contracts by the comptroller, as proposed in legislative bills numbers
39 S. 6809-A and A. 7925-A, is amended to read as follows:
40 a. (i) purchase materials, proprietary electronic information
41 resources including but not limited to academic, professional, and
42 industry journals, reference handbooks and manuals, research tracking
43 tools, indexes and abstracts; and equipment and supplies, including
44 computer equipment and motor vehicles, where the amount for a single
45 purchase does not exceed [fifty] seventy-five thousand dollars, (ii)
46 execute contracts for services and construction contracts to an amount
47 not exceeding [fifty] seventy-five thousand dollars, and (iii) contract
48 for printing to an amount not exceeding [fifty] seventy-five thousand
49 dollars, without prior approval by any other state officer or agency,
50 but subject to rules and regulations of the state comptroller not other-
51 wise inconsistent with the provisions of this section and in accordance
52 with the guidelines promulgated by the state university board of trus-
53 tees after consultation with the state comptroller. In addition, the
54 trustees, after consultation with the commissioner of general services,
55 are authorized to annually negotiate with the state comptroller
56 increases in the aforementioned dollar limits and the exemption of any
A. 624 3
1 articles, categories of articles, services, or commodities from these
2 limits;
3 § 3. Items (A) and (B) of subparagraph (i) of paragraph b of subdivi-
4 sion 16 of section 355 of the education law, as added by a chapter of
5 the laws of 2022, amending the state finance law and the education law
6 relating to restoring oversight of certain contracts by the comptroller,
7 as proposed in legislative bills numbers S. 6809-A and A. 7925-A, are
8 amended to read as follows:
9 (A) for any contract which does not exceed [seventy-five] one hundred
10 fifty thousand dollars; or
11 (B) for joint or group purchasing arrangements which do not exceed
12 [seventy-five] one hundred fifty thousand dollars without prior approval
13 by any other state officer or agency in accordance with procedures and
14 requirements found in paragraph a of subdivision five of this section.
15 § 4. Subdivision 12 of section 373 of the education law, as added by a
16 chapter of the laws of 2022, amending the state finance law and the
17 education law relating to restoring oversight of certain contracts by
18 the comptroller, as proposed in legislative bills numbers S. 6809-A and
19 A. 7925-A, is amended to read as follows:
20 12. To make and execute contracts, lease agreements, and all other
21 instruments necessary or convenient for the exercise of its corporate
22 powers and the fulfillment of its corporate purposes under this article
23 to an amount not exceeding seventy-five thousand dollars without prior
24 approval by any other state officer or agency; notwithstanding the fore-
25 going, all contracts, lease agreements, and all other instruments
26 exceeding seventy-five thousand dollars in amount shall be subject to
27 section one hundred twelve of the state finance law;
28 § 5. Subdivision a of section 6218 of the education law, as added by a
29 chapter of the laws of 2022, amending the state finance law and the
30 education law relating to restoring oversight of certain contracts by
31 the comptroller, as proposed in legislative bills numbers S. 6809-A and
32 A. 7925-A, is amended to read as follows:
33 a. Notwithstanding the provisions of subdivision two of section one
34 hundred twelve and sections one hundred fifteen, one hundred sixty-one
35 and one hundred sixty-three of the state finance law and section three
36 of the New York state printing and public documents law or any other law
37 to the contrary, the city university trustees are authorized and
38 empowered to:
39 (i) purchase materials; proprietary electronic information resources,
40 including, but not limited to, academic, professional and industry jour-
41 nals, reference handbooks and manuals, research tracking tools, indexes
42 and abstracts; and equipment and supplies, including computer equipment
43 and motor vehicles, where the amount for a single purchase does not
44 exceed [fifty] seventy-five thousand dollars, (ii) execute contracts for
45 services and construction contracts to an amount not exceeding [fifty]
46 seventy-five thousand dollars, and (iii) contract for printing to an
47 amount not exceeding [fifty] seventy-five thousand dollars, without
48 prior approval by any other state officer or agency, but subject to
49 rules and regulations of the state comptroller not otherwise inconsist-
50 ent with the provisions of this section and in accordance with the
51 guidelines promulgated by the city university board of trustees after
52 consultation with the state comptroller. In addition, the trustees are
53 authorized to annually negotiate with the state comptroller increases in
54 the aforementioned dollar limits and the exemption of any articles,
55 categories of articles, services, or commodities from these limits.
56 Guidelines promulgated by the city university board of trustees shall,
A. 624 4
1 to the extent practicable, require that competitive proposals be solic-
2 ited for purchases, and shall include requirements that purchases and
3 contracts authorized under this section be at the lowest available
4 price.
5 § 6. Subdivision 9 of section 6275 of the education law, as amended by
6 chapter 332 of the laws of 1975, is amended to read as follows:
7 (9) to make and execute contracts, leases, subleases and all other
8 instruments or agreements necessary or convenient for the exercise of
9 its corporate powers and purposes to an amount not exceeding seventy-
10 five thousand dollars without prior approval by any other state officer
11 or agency; notwithstanding the foregoing, all contracts, leases,
12 subleases, and all other instruments or agreements exceeding seventy-
13 five thousand dollars in amount shall be subject to section one hundred
14 twelve of the state finance law;
15 § 7. This act shall take effect on the same date and in the same
16 manner as a chapter of the laws of 2022, amending the state finance law
17 and the education law relating to restoring oversight of certain
18 contracts by the comptroller, as proposed in legislative bills numbers
19 S. 6809-A and A. 7925-A, takes effect.
