Bill S7114-2013

Provides that state contracts shall include a provision that allows the state to cancel the contract when the cost of the contract exceeds the original bid by more than ten percent

Provides that state contracts shall include a provision that allows the state to cancel the contract when the cost of the contract exceeds the original bid by more than ten percent.

Details

Actions

  • Jun 20, 2014: COMMITTED TO RULES
  • Jun 9, 2014: ADVANCED TO THIRD READING
  • Jun 3, 2014: 2ND REPORT CAL.
  • Jun 2, 2014: 1ST REPORT CAL.1087
  • Apr 28, 2014: REFERRED TO FINANCE

Meetings

Calendars

Votes

Memo

BILL NUMBER:S7114

TITLE OF BILL: An act to amend the state finance law, the general municipal law and the public authorities law, in relation to contracts where costs exceed the bid by more than ten percent

PURPOSE:

This bill would provide that state contracts shall include a provision that allows the state to cancel the contract when the cost of the contract exceeds the original bid by more than ten percent.

SUMMARY OF PROVISIONS:

Section 1 - Amends the state finance law by adding a new section 169.

Section 2 - Amends the general municipal law by adding a new section 109-c.

Section 3 - Amends the public authorities law by adding a new section 2882.

Section 4 - Effective Date

JUSTIFICATION:

This legislation would create additional accountability for entities which bid on state contracts as well as cost savings for state and local governments.

LEGISLATIVE HISTORY:

New bill

FISCAL IMPLICATIONS:

None

EFFECTIVE DATE:

This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 7114 IN SENATE April 28, 2014 ___________
Introduced by Sen. DeFRANCISCO -- read twice and ordered printed, and when printed to be committed to the Committee on Finance AN ACT to amend the state finance law, the general municipal law and the public authorities law, in relation to contracts where costs exceed the bid by more than ten percent THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The state finance law is amended by adding a new section 169 to read as follows: S 169. CONTRACTS; COSTS EXCEED BID. A CLAUSE SHALL BE INSERTED IN ALL SPECIFICATIONS OR CONTRACTS HEREAFTER MADE OR AWARDED BY THE STATE OR ANY PUBLIC DEPARTMENT, AGENCY, OR OFFICIAL THEREOF, FOR WORK OR SERVICES PERFORMED OR TO BE PERFORMED, OR GOODS SOLD OR TO BE SOLD, TO PROVIDE THAT UPON A PERSON, FIRM, PARTNERSHIP OR CORPORATION EXCEEDING THE ORIGINAL BID BY MORE THAN TEN PERCENT, SUCH CONTRACT MAY BE CANCELLED OR TERMINATED BY THE STATE WITHOUT INCURRING ANY PENALTY OR DAMAGES ON ACCOUNT OF SUCH CANCELLATION OR TERMINATION, BUT ANY MONIES OWING BY THE STATE FOR GOODS DELIVERED OR WORK DONE PRIOR TO THE CANCELLATION OR TERMINATION SHALL BE PAID. S 2. The general municipal law is amended by adding a new section 109-c to read as follows: S 109-C. CONTRACTS; COSTS EXCEED BID. A CLAUSE SHALL BE INSERTED IN ALL SPECIFICATIONS OR CONTRACTS HEREAFTER MADE OR AWARDED BY A MUNICIPAL CORPORATION OR ANY PUBLIC DEPARTMENT, AGENCY, OR OFFICIAL THEREOF, FOR WORK OR SERVICES PERFORMED OR TO BE PERFORMED, OR GOODS SOLD OR TO BE SOLD, TO PROVIDE THAT UPON A PERSON, FIRM, PARTNERSHIP OR CORPORATION EXCEEDING THE ORIGINAL BID BY MORE THAN TEN PERCENT, SUCH CONTRACT MAY BE CANCELLED OR TERMINATED BY THE STATE WITHOUT INCURRING ANY PENALTY OR DAMAGES ON ACCOUNT OF SUCH CANCELLATION OR TERMINATION, BUT ANY MONIES OWING BY THE MUNICIPAL CORPORATION OR ANY PUBLIC DEPARTMENT, AGENCY OR OFFICIAL THEREOF FOR GOODS DELIVERED OR WORK DONE PRIOR TO THE CANCELLA- TION OR TERMINATION SHALL BE PAID. S 3. The public authorities law is amended by adding a new section 2882 to read as follows:
S 2882. CONTRACTS; COSTS EXCEED BID. A CLAUSE SHALL BE INSERTED IN ALL SPECIFICATIONS OR CONTRACTS HEREAFTER MADE OR AWARDED BY ANY PUBLIC AUTHORITY OR BY ANY OFFICIAL OF ANY PUBLIC AUTHORITY CREATED BY THE STATE OR ANY POLITICAL SUBDIVISION FOR WORK OR SERVICES PERFORMED OR TO BE PERFORMED, OR GOODS SOLD OR TO BE SOLD, TO PROVIDE THAT UPON A PERSON, FIRM, PARTNERSHIP OR CORPORATION EXCEEDING THE ORIGINAL BID BY MORE THAN TEN PERCENT, SUCH CONTRACT MAY BE CANCELLED OR TERMINATED BY THE STATE WITHOUT INCURRING ANY PENALTY OR DAMAGES ON ACCOUNT OF SUCH CANCELLATION OR TERMINATION, BUT ANY MONIES OWING BY THE PUBLIC AUTHORI- TY OR ANY PUBLIC DEPARTMENT, AGENCY, OR OFFICIAL THEREOF FOR GOODS DELIVERED OR WORK DONE PRIOR TO THE CANCELLATION OR TERMINATION SHALL BE PAID. S 4. This act shall take effect immediately.

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