Amd §112, St Fin L; amd §2879-a, Pub Auth L; amd §§355, 373 & 6218, rpld §6283, Ed L
 
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.
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
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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.