BILL NUMBER: S873
TITLE OF BILL :
An act to amend the state finance law, in relation to commodities and
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
Section 3 provides that the proposal takes effect immediately upon
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.
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
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,
FISCAL IMPLICATIONS :
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.
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