Bill S873-2009

Relates to commodities and services contracts by non-profit corporations organized in furtherance of the objects and purposes of the state university of New York

Relates to commodities and services contracts by non-profit corporations organized in furtherance of the objects and purposes of the state university of New York.

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Actions

  • Jan 6, 2010: REFERRED TO FINANCE
  • Jan 21, 2009: REFERRED TO FINANCE

Memo

 BILL NUMBER:  S873

TITLE OF BILL : An act to amend the state finance law, in relation to commodities and services contracts

PURPOSE : To amend the State Finance Law to authorize auxiliary services corporations, campus-related foundations and other non-profit corporations organized in furtherance of the objects and purposes of the State University to participate in centralized commodities and services contracts of the New York State Office of General Services.

SUMMARY OF PROVISIONS : Section 1 of the proposal amends subparagraph (iv) of paragraph a of subdivision 3 of section 163 of the State Finance Law to authorize non-profit corporations organized in furtherance of the objects and purposes of the State University to participate in centralized commodities contracts of the Office of General Services.

Section 2 amends paragraph e of subdivision 4 of section 163 of the State Finance Law to authorize the same entities to participate in centralized services contracts of the Office of General Services; provided that commodities purchased by a non-profit corporation would not be used directly or indirectly by a for-profit corporation for resale.

Section 3 provides that the proposal takes effect immediately upon enactment.

EXISTING LAW : State Finance Law §163(3)(a)iv) authorizes State and local entities, fire companies and volunteer ambulance services to participate in centralized commodities contracts of the Office of General Services. State finance Law §163(4)(e) authorizes political subdivisions, the Port Authority and State public authorities to participate in centralized service contracts.

JUSTIFICATION : Sections 163(3)(a)(iv) and 163 (4)(e) of the State Finance Law provide that the Office of General Services may permit State agencies to purchase services and commodities, respectively, through its centralized contracts. Over the years, these sections have been amended to authorize local governments and schools, volunteer fire companies and ambulance services, county extension service associations, and others to purchase commodities through OGS centralized contracts. Authority to purchase services through OGS centralized contracts has been extended to local governments and schools, public authorities and public benefit corporations. Although many of these organizations are not governmental, they all fulfill a public purpose. Providing them the opportunity to purchase through OGS contracts has therefore been determined to mutually benefit both the State and the authorized parties, by increasing the negotiating power of OGS when entering into centralized contracts and at the same time simplifying the procurement of required goods and services by these organizations.

The auxiliary services corporations serve essential interests of the State University by providing both commodities and services to the campus communities. Campus food services and book stores are provided by or through auxiliary services corporations on most campuses. In many instances the auxiliary services corporations purchase goods or services from private vendors. On occasion these may already be available through an existing OGS centralized contract, at favorable terms. However, the auxiliary services corporations are not among those authorized to purchase under these centralized contracts. As a result, they must go through a time-consuming bidding process to purchase goods or services already available at competitive pricing and terms through OGS.

Likewise, campus-related foundations and other SUNY-related non-profit corporations could benefit by participating in centralized contracts of the Office of General Services.

LEGISLATIVE HISTORY : 2007-08, S.7839; 2005-2006, S.685-A; 2003-2004, S.284; 2001-2002, S.5015.

FISCAL IMPLICATIONS : None.

EFFECTIVE DATE : This act shall take effect immediately; provided., however, that the amendments to section 163 of the state finance law made by sections one and two of this act shall not affect the repeal of such section and shall be deemed repealed therewith.

Text

STATE OF NEW YORK ________________________________________________________________________ 873 2009-2010 Regular Sessions IN SENATE January 21, 2009 ___________
Introduced by Sen. LAVALLE -- read twice and ordered printed, and when printed to be committed to the Committee on Finance AN ACT to amend the state finance law, in relation to commodities and services contracts THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subparagraph (iv) of paragraph a of subdivision 3 of section 163 of the state finance law, as amended by chapter 430 of the laws of 1997, is amended to read as follows: (iv) The commissioner is authorized to permit any officer, body or agency of the state or of a political subdivision or a district therein, or fire company or volunteer ambulance service as such are defined in section one hundred of the general municipal law, to make purchases of commodities through the office of general services' centralized contracts, pursuant to the provisions of section one hundred four of the general municipal law. The commissioner is authorized to permit any county extension service association as authorized under subdivision eight of section two hundred twenty-four of the county law, or any asso- ciation or other entity as specified in and in accordance with section one hundred nine-a of the general municipal law, OR ANY NON-PROFIT CORPORATION ORGANIZED IN FURTHERANCE OF THE OBJECTS AND PURPOSES OF THE STATE UNIVERSITY OF NEW YORK, or any other association or entity as specified in state law, to make purchases of commodities through the office of general services' centralized contracts; provided, however, that such entity so empowered shall accept sole responsibility for any payment due with respect to such purchase; AND PROVIDED FURTHER, HOWEV- ER, THAT COMMODITIES SO PURCHASED BY A NON-PROFIT CORPORATION ORGANIZED IN FURTHERANCE OF THE OBJECTS AND PURPOSES OF THE STATE UNIVERSITY OF NEW YORK SHALL NOT BE USED DIRECTLY OR INDIRECTLY BY A FOR-PROFIT CORPO- RATION OR OTHER ENTITY WHICH CONTRACTS WITH THE NON-PROFIT CORPORATION,
NOR SHALL SUCH COMMODITIES SO PURCHASED BY SUCH NON-PROFIT CORPORATION BE OFFERED FOR RESALE. S 2. Paragraph e of subdivision 4 of section 163 of the state finance law, as amended by chapter 95 of the laws of 2000, is amended to read as follows: e. Any officer, body or agency of a political subdivision as defined in section one hundred of the general municipal law or a district there- in, may make purchases of services through the office of general services' centralized contracts for services, subject to the provisions of section one hundred four of the general municipal law. The commis- sioner may permit and prescribe the conditions for the purchase of services through the office of general services' centralized contracts for services by any public authority or public benefit corporation of the state including the port authority of New York and New Jersey, OR ANY NON-PROFIT CORPORATION ORGANIZED IN FURTHERANCE OF THE OBJECTS AND PURPOSES OF THE STATE UNIVERSITY OF NEW YORK; PROVIDED, HOWEVER, THAT SERVICES SO PURCHASED BY A NON-PROFIT CORPORATION ORGANIZED IN FURTHER- ANCE OF THE OBJECTS AND PURPOSES OF THE STATE UNIVERSITY OF NEW YORK SHALL NOT BE USED DIRECTLY OR INDIRECTLY BY A FOR-PROFIT CORPORATION OR OTHER ENTITY WHICH CONTRACTS WITH THE NON-PROFIT ORGANIZATION. The commissioner is authorized to permit any public library, association library, library system, cooperative library system, the New York Library Association, and the New York State Association of Library Boards or any other library except those which are operated by for profit entities, to make purchases of services through the office of general services' centralized contracts; provided, however, that such entity so empowered shall accept sole responsibility for any payment due with respect to such purchase. S 3. This act shall take effect immediately; provided, however, that the amendments to section 163 of the state finance law made by sections one and two of this act shall not affect the repeal of such section and shall be deemed repealed therewith.

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