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

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.