Allows certain not-for-profits to make purchases through use of county contracts

4 Co-sponsors

• Tony Avella
• George Latimer
• Marc Panepinto
• Toby Ann Stavisky

Title of bill

An act to amend the general municipal law, in relation to allowing not-for-profits to make purchases through county contracts

Purpose or general idea of bill

The purpose of this legislation is to authorize not-for-profit corporations that provide a service to a county to make purchases or to contract for certain services through the county which the not-for-profit has a contract with. Such purchases or contracts for services made through a county contract by a not-for-profit shall directly relate to the service for which the not-for-profit provides to such county.

Summary of specific provisions

Section 1: Amends the General Municipal Law by adding a new Section 109-c. The new section authorizes certain not-for-profit corporations that provide a service to a county, to make purchases or to contract for services, other than services subject to Article Eight, or any provision of the Labor Law, and other than purchases of motor fuel, diesel motor fuel or cigarettes, through the county with which the not-for-profit has a contract. Such purchases or contracts for services made through a county contract by a not-for-profit shall directly relate to the service for which the not-for-profit provides such county.

The county may establish limitations with respect to commodities and services and impose other appropriate conditions upon purchasing as deemed necessary by the chief fiscal officer of the county to protect the county's own purchasing interests. Such a not-for-profit corporation and vendor shall each be responsible for any tax due with respect to the purchases by the not-for-profit corporation. Nothing in this section shall be construed as altering any tax exemption afforded to the not-for-profit corporation or as creating a principal/agent relationship between the county and not-for-profit corporation.

Section 2: Establishes the effective date.

Justification

During these difficult economic times, local governments are struggling to provide essential services while minimizing the impact to taxpayers. It has and continues to be increasingly difficult given the rising costs for both commodities and services. One way in which local governments are successfully minimizing costs to taxpayers is through the collaborative procurement of goods and services with other local governments.

Since not-for-profit corporations that provide services to counties are also under financial pressure during these economic times, this legislation will allow not-for-profit corporations to also procure goods and services collaboratively with local governments, to minimize the cost of providing services.

Legislative history

2009-2010 - S.5601 - PASSED SENATE 2011-2012 - S.2012-A - Died - Rules Committee 2013-2014 - S.691 - Died Local Government

Fiscal implications

There are no fiscal implications.

Effective date

This act shall take effect immediately.