Requires municipalities to participate in an online vendor responsibility information system approved by or operated by the state comptroller

4 Co-sponsors

• Neil D. Breslin
• Todd Kaminsky
• José Peralta
• Toby Ann Stavisky

Title of bill

An act to amend the general municipal law, in relation to requiring municipalities to participate in a system to compile vendor responsibility information

Purpose

To improve the transparency and reliability of the public contracting process by municipalities.

Summary of provisions

Section 1 amends the general municipal law, adding a new section 103-h requiring all municipalities to participate in an online vendor. responsibility system. Such a requirement may be fulfilled by participating in a system run by the State Comptroller, or by a municipality creating its own system subject to the same requirements as the State-wide system, and with the approval of the State Comptroller.

Justification

The municipal procurement process often lacks sufficient oversight. Unfortunately, without sufficient oversight, the process has been a breeding ground for corruption and political cronyism. New York City instituted its own program known as "Vendex" over 20 years ago in an effort to ensure that the best, most stable, professional companies are awarded public contracts. It has been widely agreed that Vendex has been a success. In the 2015 Legislative Session, the Legislature voted to require that state agency contracts go through a similar system run by the Office of the State Comptroller. Left out of this important piece of legislation was any requirement for municipalities.

This new bill will require that all counties, towns, cities, and villages either participate in the state system operated by the Office of the State Comptroller, or to create their own system which complies with the statutory requirements of the state-wide system, and is approved by the State Comptroller. Any contracts in excess of $10,000 will be subject to extensive review through this system. Additionally, contractors who have contracts that are valued at $100,000 or greater in a 12 month period will also be required to go through this process, even if no single contract exceeds $10,000. Finally, each municipality will publish an annual report detailing each contract that was approved through this system to ensure transparency and allow thorough public scrutiny.

Prior legislative history

New Bill

Fiscal implications

This bill will result in savings to municipalities.

Effective date

This act shall take effect on the one hundred eightieth day after it shall have become law.