Allows certain not-for-profits to make purchases through use of county contracts.
Ayes (7): Martins, Ball, McDonald, Ritchie, Stewart-Cousins, Oppenheimer, Klein
Ayes W/R (1): Little
TITLE OF BILL: An act to amend the general municipal law, in relation to allowing not-for-profits to make purchases through county contracts
PURPOSE OR GENERAL IDEA OF BILL: The purpose of this legislation is to authorize certain not-for-profit corporations that provide a service to a county to make purchases or to contract for certain services for the county in which the not-for-profit has a contract with the same manner that political subdivisions and districts located within the county are able to do so.
SUMMARY OF SPECIFIC PROVISIONS: Section 1: Amends the General Municipal Law by adding a new Section 109-c. The new section authorizes certain not-for-profit corporations that provide a service to a county, to make purchases or to contract for services, other than services subject to Article Eight, or any provision of the Labor Law, and other than purchases of motor fuel, diesel motor fuel or cigarettes, through the county with which the not-for-profit has a contract.
The county may establish limitations with respect to commodities and services and impose other appropriate conditions upon purchasing as deemed necessary by the chief fiscal officer of the county to protect the county's own purchasing interests. Such a not-for-profit corporation and vendor shall each be responsible for any tax due with respect to the purchases by the not-for-profit corporation. Nothing in this section shall be construed as altering any tax exemption afforded to the not-for-profit corporation or as creating a principal/agent relationship between the county and not-for-profit corporation.
Section 2: Establishes the effective date.
JUSTIFICATION: During these difficult economic times, local governments are struggling to provide essential services while minimizing the impact to taxpayers. It has and continues to be increasingly difficult given the rising costs for both commodities and services. One way in which local governments are successfully minimizing costs to taxpayers is through the collaborative procurement of goods and services with other local governments.
Since not-for-profit corporations that provide services to counties are also under financial pressure during these economic times, this legislation will allow not-for-profit corporations to also procure goods and services collaboratively with local governments, to minimize the cost of providing services.
LEGISLATIVE HISTORY: 2009/2010- PASSED SENATE
FISCAL IMPLICATIONS: There are no fiscal implications.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 2012--A 2011-2012 Regular Sessions IN SENATE January 14, 2011 ___________Introduced by Sens. STEWART-COUSINS, AVELLA, KLEIN, KRUEGER, OPPENHEIM- ER, STAVISKY -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government -- recommitted to the Committee on Local Government in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the general municipal law, in relation to allowing not- for-profits to make purchases through county contracts THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The general municipal law is amended by adding a new section 109-c to read as follows: S 109-C. PURCHASES THROUGH COUNTY CONTRACTS BY CERTAIN NOT-FOR-PROFIT CORPORATIONS. NOT-FOR-PROFIT CORPORATIONS THAT PROVIDE A SERVICE TO A COUNTY ARE AUTHORIZED TO MAKE PURCHASES OR TO CONTRACT FOR SERVICES NECESSARY FOR THE PERFORMANCE OF SUCH SERVICE TO THE COUNTY, OTHER THAN SERVICES SUBJECT TO ARTICLE EIGHT OR ANY PROVISIONS OF THE LABOR LAW AND OTHER THAN PURCHASES OF MOTOR FUEL, DIESEL MOTOR FUEL OR CIGARETTES, THROUGH THE COUNTY WHICH THE NOT-FOR-PROFIT HAS A CONTRACT WITH. THE COUNTY MAY ESTABLISH LIMITATIONS WITH RESPECT TO COMMODITIES AND SERVICES AND IMPOSE SUCH OTHER APPROPRIATE CONDITIONS UPON PURCHASING AS DEEMED NECESSARY BY THE CHIEF FISCAL OFFICER OF THE COUNTY IN ORDER TO PROTECT THE COUNTY'S OWN PURCHASING INTERESTS; AND SUCH NOT-FOR-PROFIT CORPORATION SHALL MAKE ANY PURCHASE PURSUANT TO THIS SECTION IN ITS OWN NAME AND ACCEPT SOLE RESPONSIBILITY FOR ANY PAYMENT DUE TO THE VENDOR AND SUCH NOT-FOR-PROFIT CORPORATION AND VENDOR SHALL EACH BE RESPONSIBLE FOR ANY TAX DUE WITH RESPECT TO THE PURCHASES BY THE NOT-FOR-PROFIT CORPORATION. NOTHING IN THIS SECTION SHALL BE CONSTRUED AS ALTERING ANY TAX EXEMPTION AFFORDED TO THE NOT-FOR-PROFIT CORPORATION OR AS CREATING A PRINCIPAL/AGENT RELATIONSHIP BETWEEN THE COUNTY AND NOT-FOR-PROFIT CORPORATION. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04596-03-2