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A07925 Summary:

BILL NOA07925A
 
SAME ASSAME AS S06809-A
 
SPONSORZebrowski
 
COSPNSRMcDonald, Abinanti, Englebright, Stirpe, Anderson, Burgos, Dickens, Woerner, Lupardo, Wallace, Montesano
 
MLTSPNSR
 
Amd §112, St Fin L; rpld §355 subs 5 & 6, sub 16 ¶b, §373 sub 12, §6218 subs a & a-1, §6283, amd §§355, 373 & 6218, Ed L
 
Relates to restoring the oversight of certain contracts by the state comptroller; makes technical corrections therefor; makes related provisions.
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A07925 Actions:

BILL NOA07925A
 
06/01/2021referred to governmental operations
01/05/2022referred to governmental operations
02/01/2022amend and recommit to governmental operations
02/01/2022print number 7925a
05/24/2022reported referred to ways and means
06/02/2022reported referred to rules
06/02/2022reported
06/02/2022rules report cal.611
06/02/2022substituted by s6809a
 S06809 AMEND=A REICHLIN-MELNICK
 05/18/2021REFERRED TO FINANCE
 01/05/2022REFERRED TO FINANCE
 01/25/2022AMEND AND RECOMMIT TO FINANCE
 01/25/2022PRINT NUMBER 6809A
 03/01/20221ST REPORT CAL.597
 03/02/20222ND REPORT CAL.
 03/03/2022ADVANCED TO THIRD READING
 05/18/2022PASSED SENATE
 05/18/2022DELIVERED TO ASSEMBLY
 05/18/2022referred to governmental operations
 06/02/2022substituted for a7925a
 06/02/2022ordered to third reading rules cal.611
 06/03/2022passed assembly
 06/03/2022returned to senate
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A07925 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7925A
 
SPONSOR: Zebrowski
  TITLE OF BILL: An act to amend the state finance law and the education law, in relation to restoring oversight of certain contracts by the comptroller; and to repeal certain provisions of the education law relating thereto   PURPOSE OR GENERAL IDEA OF BILL: To restore the Office of the State Comptroller's oversight for certain state contracts.   SUMMARY OF PROVISIONS: Section 1 of the bill amends paragraph (a) of subdivision 2 of § 112 of the state finance law to restore the Comptroller's authority to review OGS centralized contracts that exceed $85,000, as well as purchase orders and other procurement transactions issued under such centralized contracts. Sections 2 and 3 of the bill restore the Comptroller's oversight author- ity for certain SUNY contracts by revising subdivisions 5 and 6 of § 355 of the education law. These sections will authorize SUNY Trustees, with- out Comptroller review but subject to rules and regulations promulgated by the Comptroller, to: * purchase materials and certain proprietary electronic information resources so long as a single purchase does not exceed $50,000; and * and execute contracts for services, construction and printing for an amount not exceeding $50,000. Section 4 of the bill revises paragraph b of subdivision 16 of section 355 of the education law to restore the Comptroller's oversight for contracts where SUNY is functioning as a health care provider. This section will allow SUNY trustees to authorize contracts for the purchase of goods and services for SUNY health care facilities for certain contracts without Comptroller review so long as such contracts do not exceed $75,000. Section 5 of the bill revises subdivision 12 of § 373 of the education law to restore the Comptroller's oversight for SUNY Construction Fund contracts. Section 6 of the bill revises subdivision a of § 6218 of the education law to restore the Comptroller's oversight for certain CUNY contracts. This section will authorize SUNY Trustees, without Comptroller review but subject to rules and regulations promulgated by the Comptroller, to: * purchase materials and certain proprietary electronic information resources so long as a single purchase does not exceed $50,000; and * and execute contracts for services, construction and printing for an amount not exceeding $50,000. Section 7 of the bill repeals subdivision a-1 of § 6218 of education law because its provisions were consolidated into section 6 of this bill. Section 8 of the bill repeals § 6283 of the education law to restore the Comptroller's oversight for CUNY Construction Fund Contracts. Section 9 of the bill provides that this act shall take effect imme- diately.   JUSTIFICATION: Starting 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 develop- ment 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 response to the scandal, the Governor's office entered into a memo- randum of understanding with the Office of the State Comptroller, restoring some of the Comptroller's oversight authority. This memorandum is not sufficient; legislative action is needed to properly restore the Comptroller's oversight authority and restore public confidence in the state's procurement process. This bill is a first step toward achieving these goals.   PRIOR LEGISLATIVE HISTORY: New bill.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: To be determined.   EFFECTIVE DATE: This act shall take effect immediately.
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A07925 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7925--A
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                      June 1, 2021
                                       ___________
 
        Introduced  by  M.  of A. ZEBROWSKI, McDONALD, ABINANTI -- read once and
          referred to the Committee on Governmental Operations -- recommitted to
          the Committee on Governmental Operations in accordance  with  Assembly
          Rule  3,  sec.  2  --  committee  discharged,  bill  amended,  ordered
          reprinted as amended and recommitted to said committee

        AN ACT to amend the state finance law and the education law, in relation
          to restoring oversight of certain contracts by the comptroller; and to
          repeal certain provisions of the education law relating thereto
 
          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 chapter 257 of the laws of 2021,  is  amended
     3  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 or its customer agencies serviced  by  the  office  of  general
     7  services  business  services  center, shall be executed or become effec-
     8  tive, whenever such contract exceeds fifty thousand  dollars  in  amount
     9  and  before  any contract made for or by the office of general services,
    10  whether for itself or for its customer agencies serviced by  the  office
    11  of  general  services  business  services  center,  shall be executed or
    12  become effective, whenever such contract  exceeds  eighty-five  thousand
    13  dollars  in  amount,  it  shall first be approved by the comptroller and
    14  filed in his or her office[, with the exception of contracts established
    15  as a centralized contract through the office  of  general  services  and
    16  purchase  orders  or  other  procurement  transactions issued under such
    17  centralized contracts. The]. Provided,  however,  that  the  comptroller
    18  shall  make  a  final  written determination with respect to approval of
    19  such contract within ninety days of the submission of such  contract  to
    20  his  or  her office unless the comptroller shall notify, in writing, the
    21  state agency, department, board, officer,  commission,  or  institution,
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11386-05-2

        A. 7925--A                          2
 
     1  prior to the expiration of the ninety day period, and for good cause, of
     2  the need for an extension of not more than fifteen days, or a reasonable
     3  period  of time agreed to by such state agency, department, board, offi-
     4  cer, commission, or institution and provided, further, that such written
     5  determination  or extension shall be made part of the procurement record
     6  pursuant to paragraph f  of  subdivision  one  of  section  one  hundred
     7  sixty-three of this chapter.
     8    § 2. Subdivision 5 of section 355 of the education law is REPEALED and
     9  a new subdivision 5 is added to read as follows:
    10    5.  Notwithstanding  the  provisions of subdivision two of section one
    11  hundred twelve and sections one hundred fifteen, one hundred  sixty-one,
    12  and  one  hundred sixty-three of the state finance law and section three
    13  of the New York state printing and public documents law or any other law
    14  to the contrary,  the  state  university  trustees  are  authorized  and
    15  empowered to:
    16    a.   (i)   purchase   materials,  proprietary  electronic  information
    17  resources including but  not  limited  to  academic,  professional,  and
    18  industry  journals,  reference  handbooks and manuals, research tracking
    19  tools, indexes and abstracts equipment and supplies, including  computer
    20  equipment  and  motor  vehicles,  where the amount for a single purchase
    21  does not exceed fifty  thousand  dollars,  (ii)  execute  contracts  for
    22  services  and  construction  contracts  to an amount not exceeding fifty
    23  thousand dollars, and (iii) contract  for  printing  to  an  amount  not
    24  exceeding  fifty  thousand  dollars, without prior approval by any other
    25  state officer or agency, but subject to rules  and  regulations  of  the
    26  state comptroller not otherwise inconsistent with the provisions of this
    27  section  and  in accordance with the guidelines promulgated by the state
    28  university board of trustees after consultation  with  the  state  comp-
    29  troller.  In addition, the trustees, after consultation with the commis-
    30  sioner of general services, are authorized to  annually  negotiate  with
    31  the  state comptroller increases in the aforementioned dollar limits and
    32  the exemption of any articles,  categories  of  articles,  services,  or
    33  commodities from these limits;
    34    b. establish cash advance accounts for the purpose of purchasing mate-
    35  rials,  supplies, or services, for cash advances for travel expenses and
    36  per diem allowances, or for advance payment of  wages  and  salary.  The
    37  account  may  be  used to purchase such materials, supplies, or services
    38  where the amount of a single  purchase  does  not  exceed  one  thousand
    39  dollars,  in  accordance  with such guidelines as shall be prescribed by
    40  the state university trustees after consultation with  the  state  comp-
    41  troller;
    42    c.  establish  guidelines  in  consultation  with  the commissioner of
    43  general services authorizing participation by the  state  university  in
    44  programs administered by the office of general services for the purchase
    45  of  available  New York state food products. The commissioner of general
    46  services shall provide assistance to the state university  necessary  to
    47  enable the university to participate in these programs; and
    48    d. award contract extensions for campus transportation without compet-
    49  itive  bidding  where such contracts were secured either through compet-
    50  itive bidding or through evaluation of proposals however such extensions
    51  may be rejected if the amount to be paid to the contractor in  any  year
    52  of such proposed extension fails to reflect any decrease in the regional
    53  consumer price index for the New York, New York-Northeastern, New Jersey
    54  area,  based  upon  the  consumer  price  index  for all urban consumers
    55  (CPI-U) during the preceding twelve-month period. At  the  time  of  any
    56  contract  extension,  consideration  shall  be  given to any competitive

        A. 7925--A                          3
 
     1  proposal offered by a public transportation agency. Such contract may be
     2  increased for each year of the contract extension by an  amount  not  to
     3  exceed  the regional consumer price index increase for the New York, New
     4  York-Northeastern,  New Jersey area, based upon the consumer price index
     5  for all urban consumers (CPI-U), during the preceding twelve-month peri-
     6  od, provided it has been satisfactorily established  by  the  contractor
     7  that there has been at least an equivalent increase in the amount of his
     8  cost of operation, during the period of the contract.
     9    Guidelines  promulgated  by  the  state  university  board of trustees
    10  shall, to the extent practicable, require that competitive proposals  be
    11  solicited  for  purchases, and shall include requirements that purchases
    12  and contracts authorized under this section be at the  lowest  available
    13  price,  including  consideration of prices available through other state
    14  agencies, consistent with quality requirements, and as will best promote
    15  the public interest. Such  purchases  may  be  made  directly  from  any
    16  contractor pursuant to any contract for commodities let by the office of
    17  general services or any other state agency.
    18    § 3. Subdivision 6 of section 355 of the education law is REPEALED and
    19  a new subdivision 6 is added to read as follows:
    20    6.  To enter into any contract or agreement deemed necessary or advis-
    21  able after consultation with appropriate state agencies for carrying out
    22  the objects and purposes of the state university without prior review or
    23  approval by any state officer or agency other than the state comptroller
    24  and the attorney general  including  contracts  with  non-profit  corpo-
    25  rations  organized  by  officers,  employees,  alumni or students of the
    26  state university for  the  furtherance  of  its  objects  and  purposes.
    27  Contracts  or  agreements  entered  into  with the federal government to
    28  enable participation in federal student loan programs, including any and
    29  all instruments  required  thereunder,  shall  not  be  subject  to  the
    30  requirements  of  section  forty-one of the state finance law; provided,
    31  however, that the state shall not be  liable  for  any  portion  of  any
    32  defaults which it has agreed to assume pursuant to any such agreement in
    33  an  amount  in excess of money appropriated or otherwise lawfully avail-
    34  able therefor at the time the liability for payment arises.
    35    § 4. Paragraph b of subdivision 16 of section 355 of the education law
    36  is REPEALED and a new paragraph b is added to read as follows:
    37    b. (i) Notwithstanding the provisions of subdivision  two  of  section
    38  one  hundred  twelve  of  the  state  finance law relating to the dollar
    39  threshold requiring the comptroller's approval of contracts and subdivi-
    40  sion six of section one hundred sixty-three of the  state  finance  law,
    41  authorize  contracts  for  the  purchase of goods and services for state
    42  university health care facilities:
    43    (A) for any contract  which  does  not  exceed  seventy-five  thousand
    44  dollars; or
    45    (B)  for  joint  or  group purchasing arrangements which do not exceed
    46  seventy-five thousand dollars without prior approval by any other  state
    47  officer  or  agency in accordance with procedures and requirements found
    48  in paragraph a of subdivision five of this section.
    49    (ii) contracts authorized hereunder shall be subject to article  four-
    50  teen  of  the  civil service law and the applicable provisions of agree-
    51  ments between the state and employee organizations pursuant  to  article
    52  fourteen  of the civil service law. The trustees are authorized to nego-
    53  tiate annually with the state comptroller  increases  in  the  aforemen-
    54  tioned dollar limits.
    55    §  5.  Subdivision  12 of section 373 of the education law is REPEALED
    56  and a new subdivision 12 is added to read as follows:

        A. 7925--A                          4
 
     1    12. To make and execute contracts, lease  agreements,  and  all  other
     2  instruments  necessary  or  convenient for the exercise of its corporate
     3  powers and the fulfillment of its corporate purposes under this article;
     4    §  6.  Subdivision  a of section 6218 of the education law is REPEALED
     5  and a new subdivision a is added 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  section  three
     9  of the New York state printing and public documents law or any other law
    10  to  the  contrary,  the  city  university  trustees  are  authorized and
    11  empowered to:
    12    (i) purchase materials; proprietary electronic information  resources,
    13  including, but not limited to, academic, professional and industry jour-
    14  nals,  reference handbooks and manuals, research tracking tools, indexes
    15  and abstracts; and equipment and supplies, including computer  equipment
    16  and  motor  vehicles,  where  the  amount for a single purchase does not
    17  exceed fifty thousand dollars, (ii) execute contracts for services to an
    18  amount not exceeding fifty thousand  dollars,  and  (iii)  contract  for
    19  printing  to  an  amount  not  exceeding fifty thousand dollars, without
    20  prior approval by any other state officer  or  agency,  but  subject  to
    21  rules  and regulations of the state comptroller not otherwise inconsist-
    22  ent with the provisions of this  section  and  in  accordance  with  the
    23  guidelines  promulgated  by  the city university board of trustees after
    24  consultation with the state comptroller. In addition, the  trustees  are
    25  authorized to annually negotiate with the state comptroller increases in
    26  the  aforementioned  dollar  limits  and  the exemption of any articles,
    27  categories of articles, services,  or  commodities  from  these  limits.
    28  Guidelines  promulgated  by the city university board of trustees shall,
    29  to the extent practicable, require that competitive proposals be  solic-
    30  ited  for  purchases,  and shall include requirements that purchases and
    31  contracts authorized under this  section  be  at  the  lowest  available
    32  price.
    33    § 7. Subdivision a-1 of section 6218 of the education law is REPEALED.
    34    § 8. Section 6283 of the education law is REPEALED.
    35    § 9. This act shall take effect immediately.
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