S691-2013 Actions

• Jan 9, 2013: REFERRED TO LOCAL GOVERNMENT

S691-2013 Memo

BILL NUMBER:S691

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 - S.5601  - PASSED SENATE
2011-2012 - S2012-A - Died - Rules Committee

FISCAL IMPLICATIONS:


There are no fiscal implications.

EFFECTIVE DATE:
This act shall take effect immediately.

S691-2013 Text

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

                                     691

                         2013-2014 Regular Sessions

                              I N  SENATE

                                 (PREFILED)

                               January 9, 2013
                                 ___________

  Introduced  by  Sens. STEWART-COUSINS, AVELLA, KRUEGER, STAVISKY -- read
    twice and ordered printed, and when printed to  be  committed  to  the
    Committee on Local Government

  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.
                                                             LBD02582-01-3