A01793 Summary:

BILL NOA01793
 
SAME ASNo Same As
 
SPONSORFarrell
 
COSPNSR
 
MLTSPNSR
 
Add S169, St Fin L; add S109-c, Gen Muni L; add S2882, Pub Auth L
 
Provides that state contracts shall include a provision that allows the state to cancel the contract when the cost of the contract exceeds the original bid by more than ten percent.
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A01793 Actions:

BILL NOA01793
 
01/13/2015referred to governmental operations
01/06/2016referred to governmental operations
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A01793 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1793
 
SPONSOR: Farrell
  TITLE OF BILL: An act to amend the state finance law, the general municipal law and the public authorities law, in relation to contracts where costs exceed the bid by more than ten percent   PURPOSE: This bill would provide that state contracts shall include a provision that allows the state to cancel the contract when the cost of the contract exceeds the original bid by more than ten percent.   SUMMARY OF PROVISIONS: Section 1- Amends the state finance law by adding a new section 169. Section 2- Amends the general municipal law by adding a new section 109-c. Section 3- Amends the public authorities law by adding a new section 2882. Section 4- Effective Date   JUSTIFICATION: This legislation would create additional accountability for entities which bid on state contracts as well as cost savings for state and local governments.   LEGISLATIVE HISTORY: A.9638 of 2014 Gov.Ops   FISCAL IMPLICATIONS: None   EFFECTIVE DATE: This act shall take effect immediately.
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A01793 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          1793
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 13, 2015
                                       ___________
 
        Introduced  by M. of A. FARRELL -- read once and referred to the Commit-
          tee on Governmental Operations
 
        AN ACT to amend the state finance law, the general municipal law and the
          public authorities law, in relation to contracts  where  costs  exceed
          the bid by more than ten percent
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. The state finance law is amended by adding  a  new  section
     2  169 to read as follows:
     3    §  169. Contracts; costs exceed bid. A clause shall be inserted in all
     4  specifications or contracts hereafter made or awarded by  the  state  or
     5  any public department, agency, or official thereof, for work or services
     6  performed  or  to  be performed, or goods sold or to be sold, to provide
     7  that upon a person,  firm,  partnership  or  corporation  exceeding  the
     8  original bid by more than ten percent, such contract may be cancelled or
     9  terminated  by  the  state  without  incurring any penalty or damages on
    10  account of such cancellation or termination, but any monies owing by the
    11  state for goods delivered or work done  prior  to  the  cancellation  or
    12  termination shall be paid.
    13    §  2.  The  general  municipal  law is amended by adding a new section
    14  109-c to read as follows:
    15    § 109-c. Contracts; costs exceed bid. A clause shall  be  inserted  in
    16  all specifications or contracts hereafter made or awarded by a municipal
    17  corporation  or  any public department, agency, or official thereof, for
    18  work or services performed or to be performed, or goods sold  or  to  be
    19  sold,  to  provide  that upon a person, firm, partnership or corporation
    20  exceeding the original bid by more than ten percent, such  contract  may
    21  be cancelled or terminated by the state without incurring any penalty or
    22  damages  on  account of such cancellation or termination, but any monies
    23  owing by the municipal corporation or any public department,  agency  or
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00049-01-5

        A. 1793                             2
 
     1  official thereof for goods delivered or work done prior to the cancella-
     2  tion or termination shall be paid.
     3    §  3.  The  public  authorities law is amended by adding a new section
     4  2882 to read as follows:
     5    § 2882. Contracts; costs exceed bid. A clause shall be inserted in all
     6  specifications or contracts hereafter made  or  awarded  by  any  public
     7  authority  or  by  any  official  of any public authority created by the
     8  state or any political subdivision for work or services performed or  to
     9  be  performed,  or  goods  sold  or  to  be sold, to provide that upon a
    10  person, firm, partnership or corporation exceeding the original  bid  by
    11  more  than  ten percent, such contract may be cancelled or terminated by
    12  the state without incurring any penalty or damages on  account  of  such
    13  cancellation or termination, but any monies owing by the public authori-
    14  ty  or  any  public  department,  agency,  or official thereof for goods
    15  delivered or work done prior to the cancellation or termination shall be
    16  paid.
    17    § 4. This act shall take effect immediately.
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