A01793 Summary:

BILL NO    A01793 

SAME AS    No same as 

SPONSOR    Farrell

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 NO    A01793 

01/13/2015 referred to governmental operations
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A01793 Votes:

There are no votes for this bill in this legislative session.
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A01793 Memo:

BILL NUMBER:A1793

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:

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         1793

                              2015-2016 Regular Sessions

                                 I N  A S S E M B L Y

                                   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    S  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    S  2.  The  general  municipal  law is amended by adding a new section
   14  109-c to read as follows:
   15    S 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    S  3.  The  public  authorities law is amended by adding a new section
    4  2882 to read as follows:
    5    S 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    S 4. This act shall take effect immediately.
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