Increases the threshold amount which triggers the publication requirement of procurement opportunities

BILL NUMBER:S7351

Title of bill

An act to amend the economic development law and the state finance law, in relation to making technical corrections relating to thresholds for the publication of procurement opportunities

Purpose

The purpose of this legislation is to eliminate certain Contract Reporter Exemption Request (CRER) threshold discrepancies. The definition of a procurement contract contained in Section 141 of Article 4-C of the Economic Development Law was amended in 2012 to increase the dollar value of such contract from $15,000 to $50,000.

However, the $15,000 threshold in Section 146 of Article 4-C of the Economic Development Law providing that in order to receive comptroller approval, a contract must be first advertised or an exemption granted was not similarly increased to $50,000.

Additionally, State Finance law, Section 163(6)(a) notwithstands Article 4-C of the Economic Development Law and allows the Office of General Services (OGS) to procure goods and commodities not exceeding $30,000 without prior approval of another state officer or agency. It seems that the impact of this provision is that the Comptroller would not enforce the publication/exemption requirements for OGS contracts up to $30,000.

Summary of provisions

Section 1 amends Section 146 of the Economic Development Law to provide that the Comptroller shall not approve or file any procurement contract for the acquisition of goods or services in the amount of $50,000 or more unless notice as provided in Section 142 of article 4-C of the Economic Development Law 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.

Section 2 amends Subdivision 6-a of Section 163 of the State Finance Law to provide that notwithstanding the provisions of Article 4-C of the Economic Development Law, the Commissioner of General Services may make purchases or enter into contracts for the acquisition of commodities and services having a value not exceeding $50,000 without prior approval by any other state officer or agency in accordance with procedures and requirements set forth in Article 11 of the State Finance Law.

Prior legislative history

New bill.

Justification

Since it is believed that the 2012 amendments to Section 141 of the Economic Development Law were intended to increase the threshold for publication in the Contract Reporter for all procuring agencies, it would have been clearer if the Legislature had also amended the

provisions of section 146 of the Economic Development Law. However, we believe that the provisions of Section 146 must be read in light of the legislative intent as reflected in the amendment to Section 141; and, therefore, that contracts below the $50,000 threshold do not have to be published or exempted from publication.

Fiscal implications for state

This bill has no significant State fiscal impact.

Effective date

This act shall take effect immediately.