senate Bill S3418A

Continues the authority of the commissioner of education to exempt discretionary grants from the procedures for award of state contracts

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 18 / Feb / 2011
    • REFERRED TO EDUCATION
  • 01 / Mar / 2011
    • REPORTED AND COMMITTED TO FINANCE
  • 01 / Jun / 2011
    • AMEND (T) AND RECOMMIT TO FINANCE
  • 01 / Jun / 2011
    • PRINT NUMBER 3418A
  • 07 / Jun / 2011
    • 1ST REPORT CAL.1096
  • 13 / Jun / 2011
    • 2ND REPORT CAL.
  • 14 / Jun / 2011
    • ADVANCED TO THIRD READING
  • 15 / Jun / 2011
    • SUBSTITUTED BY A5600A

Summary

Continues the authority of the commissioner of education, in conjunction with the office of the state comptroller, to exempt discretionary grants to school districts, public schools, boards of cooperative educational services, public colleges and universities, public libraries, municipalities and other public educational entities from the procedures for award of state contracts.

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Bill Details

See Assembly Version of this Bill:
A5600A
Versions:
S3418
S3418A
Legislative Cycle:
2011-2012
Law Section:
Education, Commissioner of
Laws Affected:
Amd Part C §94, Chap 57 of 2004

Sponsor Memo

BILL NUMBER:S3418A

TITLE OF BILL:
An act
to amend part C of chapter 57 of the laws of 2004, relating to support
of education, in relation to extending certain
provisions of such chapter

PURPOSE:
To extend, until June 30, 2014, the effectiveness of section 94 of
Part C of Chapter 57 of the Laws of 2004 as amended by Chapter 2 of
the Laws of 2011 to continue the authority of the Commissioner of
Education, in conjunction with the Office of the State Comptroller
(OSC) , to exempt discretionary grants to school districts, public
schools, boards of cooperative services, public colleges and
universities, public libraries, municipalities and other public
educational entities from the procedures for the award of State
contracts prescribed by paragraph (a) of subdivision 2 of § 112 of
the State Finance Law. Such exemption allows these discretionary
grants to be paid more timely through a streamlined competitive
request for proposals (RFP) award process.

SUMMARY OF PROVISIONS:
Section 1 of the bill would amend subdivision 11 of section 94 of Part
C of Chapter 57 of the Laws of 2004, as amended by section 79 of part
A of chapter 58 of the laws of 2011, to extend the effectiveness of

§71 of Part C until June 30, 2014.

Section 2 would be the effective date.

STATEMENT IN SUPPORT:
Paragraph (a) of subdivision 2 of §112 of the State Finance Law, which
requires that state agency contracts in excess of $15,000 be approved
by OSC through the state contract process' contains no exception for
discretionary agency grants. In 2004, §71 of Part C of Chapter 57 of
the Laws of 2004 was enacted, which supplied authority for an
exemption from state contracting requirements for school districts
and various other public educational entities, the process for which
was to be developed jointly between the Commissioner of Education and
the Office of the State Comptroller. The result
has been a streamlined competitive RFP award approval process that
mimics the state contracting process except that it allows for
payment without a contract. Similar to requirements stipulated in
contracts approved by OSC under § 112 of the State Finance Law, the
streamlined process requires educational entities to submit budgets,
program goals and expenditure reports to the State Education
Department (SED). However, under the provisions of subdivision 11 §94
of Part C of Chapter 57 of the Laws of 2004, §71 sunsets annually on
June 30, which has been extended each year in the Education, Labor
and Family Assistance (ELFA) budget Article VII legislation. However,
the Governor's veto of the 2010-11 ELFA Article VII
bill (S.6607-B/A.9907-C) for reasons having nothing to do with
continuing this exemption, resulted in the expiration of the
provisions of §71 of Part C of Chapter 57 of the Laws of 2004 on June
30, 2010.


The practical effect of the expiration of this exemption on SED, which
administers thousands of grant payments to school districts and other
public educational entities each year, and on these districts and
entities, would be that SED and they would incur additional expense
and staff time to complete the paperwork needed to put these grants
through the state contract process.
And, the time for processing these grants would be greatly lengthened,
so that school districts and other entities that receive them would
have to wait many months longer than previously to receive their
funds. Delays in the timely awards of discretionary grants supported
by federal funds are particularly problematic, as they potentially
could result in the loss or lapse of these funds since the timeframes
in which these funds must be disbursed are dictated by the federal
grant awards and federal law. The consequence for school districts,
public schools, BOCES, public colleges and universities, public
libraries, municipalities and other public educational entities would
be additional costs, delays in the receipt of grant funds and the
risk of loss of these funds should an appropriation lapse or grant
expire prior to completion of the state contracting process.

Grant programs affected by the termination of the contracting
exemption, in additional to complex RTTT grants, exemplified by the
Graduate-level Teacher Prep Pilot program, include: McKinney-Vent
Homeless funding;
21st Century Community Learning Center grants; the Literacy Zone
Initiative;
Teachers of Tomorrow grants; Extended Day/School Violence grants;
library construction funding; local government records management
incentive grants;
and family literacy library grants. During the current fiscal crisis
school districts and other educational entities are likely to have
reduced their administrative staffs as well and may lack the
resources necessary to administer the additional requirements related
to the state contracting process. The budgets of educational entities
that are expecting these grant funds to be paid timely will be
adversely affected if the statutory exemption is not extended. In
anticipation of continued staffing shortages and fiscal constraint,
the Commissioner's authority to exempt these discretionary contracts
and grants from state contracting requirements should be extended to
at least June 30, 2015,which will help to assure that the budgets of
educational entities will not be adversely affected in the immediate
future as a result of another inadvertent failure to extend this
exemption. This bill would rectify this situation by extending the
effectiveness of §71 of Part C of Chapter 57 of the Laws of 2004 far
one additional year, as proposed by the Legislature in
A.9707-C/S.6607-B and endorsed by the Governor in his 2010-11
Executive Budget proposal. Discretionary grants to school districts
and other educational entities do not involve the same
considerations as procurement of goods and services at the best price
or value. Unlike procurement contracts, the goal of discretionary
grants is implementation of
the policy embedded in the statute or appropriation language, not to
secure the best price or value for the State. The authority to exempt
discretionary education grants from the state contracting
requirements should be continued for the benefit of school districts
and other public educational entities and to create efficiency and
cost effectiveness for the State.


BUDGETARY IMPLICATIONS:
This bill would not create any additional cost to the State, school
districts or other educational entities. It would result in cost
savings to the State, school districts, public schools, BOCES, public
colleges and universities, public libraries and other public
educational entities by eliminating unnecessary administrative
expense and preventing significant delays in the payment of grants,

PRIOR LEGISLATIVE HISTORY:
None. This is a new proposal as a separate bill, though identical
language was proposed in §43 of Part A of S.6607-B/A.9707-C and Part
A of S.2/A.2 for the December Extraordinary Session.

EFFECTIVE DATE:
Immediately, and the bill would be deemed to have been in full force
and effect on and after June 30, 2011, when authority for the
exemption expired.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 3418--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 18, 2011
                               ___________

Introduced  by Sen. FLANAGAN -- read twice and ordered printed, and when
  printed to be committed to the  Committee  on  Education  --  reported
  favorably  from  said  committee  and  committed  to  the Committee on
  Finance -- committee discharged, bill amended,  ordered  reprinted  as
  amended and recommitted to said committee

AN  ACT  to  amend part C of chapter 57 of the laws of 2004, relating to
  support of education, in relation to extending certain  provisions  of
  such chapter

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 11 of section 94 of part C of chapter 57 of the
laws of 2004, relating to support of education, as amended by section 79
of part A of chapter 58 of the laws of  2011,  is  amended  to  read  as
follows:
  11.  section  seventy-one  of  this  act  shall  expire  and be deemed
repealed June 30, [2012] 2014;
  S 2. This act shall take effect immediately, except if this act  shall
have  become a law on or after June 30, 2011, this act shall take effect
immediately and shall be deemed to have been in full force and effect on
and after June 30, 2011.




 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08460-06-1

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