NY State Senate Bill 2013-S6971

Senate Bill S6971

2013-2014 Legislative Session

Relates to enhancing operational efficiencies and promoting economies in support of the enterprise initiatives being undertaken by the office of general services

download bill text pdf

Archive: Last Bill Status - In Senate Committee Infrastructure And Capital Investment Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 09, 2014	referred to infrastructure and capital investment

2013-S6971 (ACTIVE) - Details

See Assembly Version of this Bill:: A9690
Current Committee:: Senate Infrastructure And Capital Investment
Law Section:: Public Buildings Law
Laws Affected:: Amd §3, Pub Bldg L; amd §33, Pub Lds L; amd §§112 & 97-g, St Fin L; amd §146, Ec Dev L

2013-S6971 (ACTIVE) - Summary

Relates to enhancing operational efficiencies and promoting economies in support of the enterprise initiatives being undertaken by the office of general services.

2013-S6971 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S6971

TITLE OF BILL:  An act to amend the public buildings law, the public
lands law, the state finance law and the economic development law, in
relation to enhancing operational efficiencies and promoting economies
in support of the enterprise initiatives being undertaken by the
office of general services

Purpose of Bill:

This bill would amend sections of the Public Buildings Law, the Public
Lands Law, the State Finance Law (SFL) and the Economic Development
Law (EDL) to provide for enhanced operational efficiencies and savings
in support of enterprise initiatives being undertaken by the Office of
General Services (OGS).

Summary of Provisions:

*Section one of the bill would amend Public Buildings Law § 3(14) to
authorize the Commissioner of General Services (Commissioner) to enter
into leases or operating agreements for State-owned surplus real
property to produce revenue for the State.

*Section two of the bill would add new subdivisions (6) and (7) to
Public Lands Law § 33 to provide for disposition of State surplus real
property for fair market or for less than fair market value other than

through public auction, under limited circumstances.

*Section three of the bill would amend SFL § 112(2) to allow
extensions of centralized contracts, where the extension is provided
for in the contract, to go forward without review and formal approval
by the Office of the State Comptroller (OSC). This would apply only to
centralized contracts entered into after April 1, 2011 (centralized
contracts that are not subject to OSC review and approval).

*Section four of the bill would amend SFL § 97-g of to authorize OGS
to provide energy products as a centralized service to public
authorities and public benefit corporations.

*Section five of the bill would make a technical conforming amendment
to EDL § 146 so that it is consistent with the requirements of SFL
163(8) relating to the mandatory advertisement of state procurement
opportunities in the Contract Reporter.

Existing Law:

*Public Buildings Law § 3 (14) requires Commissioner approval of
revenue-producing leases and operating agreements for surplus State
real property, but the leases and agreements themselves must be
managed by the agency, department, commission or other State entity
that controls the property.

*Public Lands Law § 33 does not provide for disposition of surplus
real proper without a formal competitive process for fair market value
or for less than fair market value, even where such processes have not
resulted in the sale of the property.


*SFL § 112(2) requires OSC approval of all contract extensions,
including those provided for in centralized contracts that were not
originally subject to review or approval by OSC.

*SFL § 97-g does not authorize providing centralized services to
public authorities or public benefit corporations.

*EDL § 146 prohibits the Comptroller from approving contracts valued
at more than $15,000 if they have not been advertised in the Contract
Reporter, but SFL § 163(8) sets the threshold for mandatory
advertisement at $50,000 ("all procurements by state agencies . . .
in excess of fifty thousand dollars shall be advertised in the state's
procurement opportunities newsletter in accordance with article four-C
of the economic development law").

Prior Legislative History:

None.

Statement in Support:

Public Buildings Law § 3(14) provides for re-use of the State's
surplus real property. Under current law, if any agency, department,
commission or other State entity having control over such surplus
property determines that the property could be used to produce revenue
through leasing or an operating agreement, that agency or other entity
must obtain approval to do so from the Commissioner but must handle
entering into the lease or operating agreement itself.  Consistent
with initiatives to align agency responsibilities more closely with
their core missions, this amendment would place responsibility for
entering into leases and operating agreements with OGS, which has
expertise in that area, and allow other agencies to dedicate their
resources to their core missions.

Public Lands Law § 33 provides for disposition of State surplus real
property through public auctions or formal competitive processes
(e.g., a request for proposals). These are open processes and are the
preferred method for disposition of State surplus real property.
Surplus real property, however, is not uniform in nature, and in some
limited circumstances, due to location, past use, environmental
issues, impediments to best new use or other factors, it may not be
suitable for disposition through a public auction or a formal
competitive process. This bill would provide for alternative
disposition methods, allowing State surplus real property to be sold
for fair market value or for less than fair market value where it has
been offered through the traditional methods, but no sale has
resulted. These alternative sales would allow the State both to avoid
having to continue to expend resources to maintain and operate these
properties and to realize revenue.

SFL § 112(2) of the State Finance Law is currently interpreted by the
Comptroller to require approval of contract extensions that are
included in the original contract award for a centralized contract.
Part L of L.2012, c. 55 eliminated OSC formal review and approval of
centralized contract awards, so it does not make sense that OSC would
be called upon subsequently to review and approve the use of a term of
a centralized contract. Furthermore, formal review and approval of


extensions can result in delays in continuing to make goods and
services available for purchase by State agencies and other authorized
purchasers from centralized contract awards. This amendment would
resolve the inconsistency in the law and. prevent delays in contract
extensions. It would affect only those contracts awarded after April
1, 2011.

The proposed amendment to SFL § 97-g would permit OGS to provide
energy products (primarily electricity) as a centralized service
provided to public authorities and public benefit corporations. OGS
already provides such centralized services to state agencies and local
governments, and this has produced savings for both. This amendment is
expected to reduce costs similarly for public authorities and public
benefit corporations.

The proposed amendment to EDL § 146 is a technical amendment that
would resolve an inconsistency between statutory provisions regarding
the value threshold at which advertisement of a procurement
opportunity in the Contract Reporter (referred to in statute as the
"procurement opportunities newsletter") is mandatory. Currently, SFL
163, as amended by Part L of L.2012, c. 55, states that the threshold
is $50,000 for all state procurements, but EDL § 146, last amended by
L.2000, c. 95, states that the Comptroller cannot approve contracts of
a value of $15,000 or more if the procurement opportunity was not
published in the Contract Reporter.

Budget Implications:

Amendments to the Public Lands Law may produce additional revenue.
Changes to the State Finance Law will produce efficiencies and cost
containment.

Local Impact:

None.

Effective Date:

Immediately.

2013-S6971 (ACTIVE) - Bill Text download pdf

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

                                  6971

                            I N  S E N A T E

                              April 9, 2014
                               ___________

Introduced  by  Sen.  MARCELLINO -- (at request of the Office of General
  Services) -- read twice and ordered printed, and when  printed  to  be
  committed to the Committee on Infrastructure and Capital Investment

AN  ACT  to  amend  the  public buildings law, the public lands law, the
  state finance law and the economic development  law,  in  relation  to
  enhancing  operational efficiencies and promoting economies in support
  of the enterprise initiatives being undertaken by the office of gener-
  al services

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 14 of section 3 of the public buildings law, as
added by chapter 83 of the laws of 1995, is amended to read as follows:
  14.  [Where  the use of any state-owned real property is not presently
required for any other state purpose, the department, board, commission,
division, or other state agency having jurisdiction thereof,  may,  with
the  approval of the commissioner of general services, temporarily lease
or operate such property in such manner as will produce net revenue  for
the support of the state (a) by the forces and equipment of such depart-
ment,  board,  commission,  division  or  other  state agency, or (b) by
contracting for the management and operation thereof  with  any  person,
firm  or  corporation,  or  (c) by a combination of such methods, but no
such contract nor any lease or permit for the use of such property shall
be made for a period exceeding five years from the date  thereof.]  UPON
DETERMINATION  BY  THE  COMMISSIONER OF GENERAL SERVICES THAT THE USE OF
ANY STATE-OWNED REAL PROPERTY IS NOT PRESENTLY REQUIRED  FOR  ANY  OTHER
STATE  PURPOSE  BY  THE DEPARTMENT, BOARD, COMMISSION, DIVISION OR OTHER
STATE AGENCY HAVING JURISDICTION THEREOF, THE  COMMISSIONER  OF  GENERAL
SERVICES  MAY  LEASE OR OPERATE SUCH PROPERTY IN ANY SUCH MANNER AS WILL
PRODUCE NET REVENUE FOR THE SUPPORT OF THE STATE OR MAY LEASE THE  PROP-
ERTY  TO ANOTHER PUBLIC ENTITY FOR AN AMOUNT EQUAL TO THE COSTS INCURRED
BY THE STATE FOR SUCH USE. NO CONTRACT, LEASE OR PERMIT FOR THE  USE  OF
SUCH  PROPERTY  SHALL  BE MADE FOR A TERM EXCEEDING FIVE YEARS, BUT SUCH
LEASE, CONTRACT OR PERMIT SHALL ALLOW RENEWALS  OR  EXTENSIONS  OF  SAID
TERM,  AT  THE  COMMISSIONER'S OPTION FOR TERMS OF FIVE YEARS OR LESS AS

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD13823-02-4

S. 6971                             2

LONG AS THE TOTAL TERM, INCLUDING ALL RENEWALS AND EXTENSIONS, DOES  NOT
EXCEED FIFTEEN YEARS. All expenses incident to the leasing, use or oper-
ation of any such property shall be paid out of the gross revenue there-
from  and  shall  not  be  a  charge  against  the state. Insofar as the
provisions of this subdivision  may  conflict  with  the  provisions  of
section one hundred twenty-one of the state finance law or provisions of
any  other law, the provisions of this subdivision shall control and the
same shall not be deemed to be repealed, altered or superseded by impli-
cation by the enactment or amendment of any other law. The use and occu-
pancy of any such property pursuant to any  license,  lease,  permit  or
contract  made under the provisions of this subdivision and the right of
the state or its duly authorized agent  to  recover  possession  thereof
shall not be subject to the emergency housing rent control law. Where it
is  necessary  to cause the removal of an occupant of any such property,
the head of the department, board, commission, division or  other  state
agency having jurisdiction thereof may cause such occupant to be removed
therefrom  and  the  possession thereof to be delivered to him or her as
agent of the state in the same manner and by the same proceedings in the
same court or before the same judge or justice as is  now  or  hereafter
may  be  provided  by law for the removal of a tenant holding over after
the expiration of his or her term without the permission  of  the  land-
lord.   The proceeding shall be brought in the name of such head of such
department, board, commission, division or  other  state  agency  having
jurisdiction of such property, as agent of the state.
  S  2.  Section 33 of the public lands law is amended by adding two new
subdivisions 6 and 7 to read as follows:
  6. (A) THE COMMISSIONER  OF  GENERAL  SERVICES  MAY  SELL  AND  CONVEY
IMPROVED,  UNAPPROPRIATED  STATE  LANDS  TO A PRIVATE PARTY FOR NOT LESS
THAN FAIR MARKET VALUE WITHOUT A FORMAL  COMPETITIVE  PROCESS  WHEN  (I)
SUCH  PRIVATE  PARTY  HAS  APPROACHED  THE  STATE OF THEIR OWN ACCORD TO
PURCHASE IMPROVED, UNAPPROPRIATED STATE LAND, AND (II) IN  THE  JUDGMENT
OF THE COMMISSIONER OF GENERAL SERVICES, SUCH SALE IS IN THE BEST INTER-
ESTS  OF THE STATE. SUCH SALE MUST COMPLY WITH STANDARD MINIMUM QUALITA-
TIVE AND QUANTITATIVE FACTORS ESTABLISHED BY THE COMMISSIONER.
  (B) THE SALE PRICE FOR THE PROPERTY SHALL BE NOT LESS THAN FAIR MARKET
VALUE AS ESTABLISHED BY A CERTIFIED APPRAISAL OR  OTHER  APPRAISAL  FORM
ACCEPTABLE TO THE OFFICE OF THE STATE COMPTROLLER.
  7.  THE  COMMISSIONER OF GENERAL SERVICES MAY SELL AND CONVEY IMPROVED
UNAPPROPRIATED STATE LANDS TO A PRIVATE PARTY FOR LESS THAN FAIR  MARKET
VALUE  WITHOUT A FORMAL COMPETITIVE PROCESS WHEN (A) SUCH UNAPPROPRIATED
STATE LANDS HAS BEEN, WITHIN THE LAST EIGHTEEN MONTHS,  OFFERED  THROUGH
THE  PROCESS  DESCRIBED  IN SUBDIVISIONS ONE THROUGH SIX OF THIS SECTION
WITHOUT BEING SOLD; (B) A PRIVATE PARTY  HAS  APPROACHED  THE  STATE  OF
THEIR  OWN  ACCORD  TO PURCHASE IMPROVED, UNAPPROPRIATED STATE LAND; AND
(C) IN THE JUDGMENT OF THE COMMISSIONER OF GENERAL SERVICES,  SUCH  SALE
IS  IN  THE  BEST  INTEREST OF THE STATE. SUCH SALE MUST COMPLY WITH THE
STANDARD MINIMUM QUALITATIVE AND QUANTITATIVE FACTORS ESTABLISHED BY THE
COMMISSIONER INCLUDING, AT THE DISCRETION OF THE COMMISSIONER, A  CERTI-
FIED APPRAISAL REPORT OR APPRAISAL REVIEW TO ESTABLISH CONSIDERATION FOR
SUCH  CONTRACT.  THE PURCHASE CONTRACT SHALL BE SUBJECT TO REVIEW BY THE
ATTORNEY GENERAL AND THE STATE COMPTROLLER.
  S 3. Paragraph (a) of subdivision  2  of  section  112  of  the  state
finance  law,  as  amended  by section 18 of part L of chapter 55 of the
laws of 2012, is amended to read as follows:
  (a) Before any contract made for or by any state  agency,  department,
board, officer, commission, or institution, except the office of general

S. 6971                             3

services,  shall be executed or become effective, whenever such contract
exceeds fifty thousand dollars in amount and before  any  contract  made
for  or  by  the  office of general services shall be executed or become
effective,  whenever  such contract exceeds eighty-five thousand dollars
in amount, it shall first be approved by the comptroller  and  filed  in
his  or  her  office,  with  the exception of contracts established as a
centralized contract  through  the  office  of  general  services  [and]
purchase  orders  or  other  procurement  transactions issued under such
centralized contracts, AND CONTRACT EXTENSIONS, INCLUDED IN AND PROVIDED
FOR IN CENTRALIZED  CONTRACTS  ESTABLISHED  BY  THE  OFFICE  OF  GENERAL
SERVICES  AND  FINALIZED  BEFORE  APRIL  FIRST, TWO THOUSAND ELEVEN. The
comptroller shall make a final written  determination  with  respect  to
approval  of  such contract within ninety days of the submission of such
contract to his or her office unless the comptroller  shall  notify,  in
writing,  the  state  agency, department, board, officer, commission, or
institution, prior to the expiration of the ninety day period,  and  for
good  cause, of the need for an extension of not more than fifteen days,
or a reasonable period of time agreed to by such state  agency,  depart-
ment,  board, officer, commission, or institution and provided, further,
that such written determination or extension shall be made part  of  the
procurement record pursuant to paragraph f of subdivision one of section
one hundred sixty-three of this chapter.
  S 4. Subdivisions 3, 4 and 5 of section 97-g of the state finance law,
subdivision  3  as amended by section 62 of part HH of chapter 57 of the
laws of 2013, subdivision 4 as amended by section 2 and subdivision 5 as
amended by section 1 of subpart A of part C of chapter 97 of the laws of
2011, are amended to read as follows:
  3. Moneys of the fund shall be available to the commissioner of gener-
al services for the purchase of food, supplies and equipment  for  state
agencies,  and  for  the  purpose of furnishing or providing centralized
services to or for state agencies; provided  further  that  such  moneys
shall  be available to the commissioner of general services for purposes
pursuant to items (d) and (f) of subdivision four of this section to  or
for political subdivisions, PUBLIC AUTHORITIES AND PUBLIC BENEFIT CORPO-
RATIONS.  Beginning  the first day of April, two thousand two, moneys in
such fund shall also be transferred by  the  state  comptroller  to  the
revenue  bond  tax  fund  account  of  the  general debt service fund in
amounts equal to those required for payments to authorized  issuers  for
revenue  bonds  issued  pursuant to article five-C and article five-F of
this  chapter  for  the  purpose  of  lease  purchases  and  installment
purchases by or for state agencies and institutions for personal or real
property purposes.
  4.  The term "centralized services" as used in this section shall mean
and include only (a) communications services, (b)  mail,  messenger  and
reproduction services, (c) computer services, (d) [fuels] ENERGY COMMOD-
ITIES,  including  FUELS,  natural gas, hydrogen, biofuels and gasoline,
and automotive services, (e) renovation and  maintenance  services,  (f)
purchases  of electricity, renewable energy, renewable energy credits or
attributes from the power authority of the state of  New  York  and,  in
consultation  with  the  power  authority of the state of New York, from
other suppliers, (g) real property  management  services,  (h)  building
design and construction services, (i) parking services, (j) distribution
of  United  States  department  of agriculture donated foods to eligible
recipients, pursuant to all applicable  statutes  and  regulations,  (k)
distribution  of  federal  surplus  property  donations  to all eligible
recipients, pursuant to applicable statutes  and  regulations,  and  (l)

S. 6971                             4

payments  and  related  services  for  lease  purchases  and installment
purchases by or for state agencies and institutions for personal proper-
ty purposes financed through the issuance  of  certificates  of  partic-
ipation.  The  services defined in items (a) through (c), (e), [(g)] and
(h) of this subdivision shall be provided to state agencies  and  insti-
tutions only.
  5.  The  amount  expended from such fund for the above-stated purposes
shall be charged against the agency [or], political subdivisions, PUBLIC
AUTHORITIES AND PUBLIC BENEFIT CORPORATIONS above receiving  such  food,
supplies,  equipment  and  services  and  all payments received therefor
shall be credited to such fund.
  S 5. Section 146 of the economic development law, as amended by  chap-
ter  95 of the laws of 2000 and as renumbered by chapter 137 of the laws
of 2008, is amended to read as follows:
  S 146. Approval of comptroller. The comptroller shall not  approve  or
file  any  procurement contract for the acquisition of goods or services
in the amount of [fifteen] FIFTY thousand dollars or more unless  notice
as provided in section one hundred forty-two of this article shall first
have been published in the procurement opportunities newsletter at least
fifteen  business  days prior to the date on which a bid or proposal was
due. Provided, however,  such  requirement  of  publication  of  advance
notice  shall  not apply to contracts exempt from such requirement under
section one hundred forty-four of this article; provided  further,  that
the  comptroller  shall  not  be required to disapprove a contract if he
determines that there has been substantial compliance with the  require-
ments  of  section  one hundred forty-two and section one hundred forty-
three of this article. The foregoing provisions of  this  section  shall
not  be  construed to limit, in any manner, the right of the comptroller
to demand evidence of adequate competition or such other  proofs  as  he
may require in the discharge of his responsibilities pursuant to section
one  hundred  twelve  of the state finance law or any other provision of
law.
  S 6. This act shall take effect immediately; provided however that the
amendments to subdivisions 3, 4 and 5  of  section  97-g  of  the  state
finance  law  made  by  section four of this act shall be subject to the
expiration and reversion of such subdivisions pursuant to section  9  of
subpart  A  of part C of chapter 97 of the laws of 2011 and section 3 of
chapter 410 of the laws of 2009, as amended, and  shall  expire  and  be
deemed repealed therewith.

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