senate Bill S1042

Ensures compliance with competitive bidding law

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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

  • 09 / Jan / 2013
    • REFERRED TO LOCAL GOVERNMENT
  • 08 / Jan / 2014
    • REFERRED TO LOCAL GOVERNMENT

Summary

Ensures compliance with competitive bidding law.

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Bill Details

Versions:
S1042
Legislative Cycle:
2013-2014
Current Committee:
Senate Local Government
Law Section:
General Municipal Law
Laws Affected:
Add §103-h, amd §§103 & 35, Gen Muni L; add §164-a, St Fin L
Versions Introduced in 2011-2012 Legislative Cycle:
S6410

Sponsor Memo

BILL NUMBER:S1042

TITLE OF BILL:
An act
to amend the general municipal law and the state finance law, in
relation to ensuring compliance with the competitive bidding law

PURPOSE OR GENERAL IDEA OF BILL:
To ensure that local governments and their taxpayers receive the cost
savings benefits of competitive bidding in local government
purchasing by providing political subdivisions with comptroller's
opinions on specific procurement actions and by holding political
subdivisions accountable for complying with the competitive bidding
law.

SUMMARY OF SPECIFIC PROVISIONS:
Section one of the bill names this law the "Municipal Competitive
Bidding Enforcement Act." Section two creates a new General Municipal
Law § 103-h, which provides for the Comptroller to issue an opinion
as to the legality of a political subdivision's proposed procurement
action, authorizes the Attorney General to enjoin an illegal
procurement action, allows a good faith bidder who should have won a
contract to sue for damages, establishes a civil penalty for a
willful and intentional violation of the law, and sets a fee for
initiating a Comptroller's opinion. Section three clarifies how brand
names may be used in bid specifications. Section four clarifies that
bids are public records.
Section five establishes that a political subdivision shall respond to
a Comptroller's audit that finds a violation of the competitive
bidding law. Section six provides that the office of general services
should supply bid specifications to political subdivisions.

JUSTIFICATION:
There is currently no effective means of ensuring that local
governments comply with the municipal competitive bidding law, which
is designed to keep the cost of public contracts as low as reasonably
possible. General Municipal Law § 103(1) requires that a political
subdivision competitively bid public works contracts of more than
$20,000 and purchase contracts of more than $10,000. The term
"political subdivision" includes a municipal corporation, school
district, district corporation and BOCES. GML § 100(1). The purpose
of the competitive bidding law is "to assure the prudent and
economical use of public moneys for the benefit of all the
inhabitants of the state and to facilitate the acquisition of
facilities and commodities of maximum quality at the lowest possible
cost." GML § 100-a. The means to this end is to buy in the market,
with the benefit of market forces on prices. The businesses that bid
on contracts have an important role to play in this scheme.

While the competitive bidding statute was not enacted for the benefit
or enrichment of bidders
"logic and experience teach that competition for public contracts may
be promoted only by fostering a sense of confidence in potential
bidders that their bids will be fairly considered."


FISCHBACH & MOORE V. N.Y.C. TRANSIT AUTHORITY,
79 A.D. 2d 14, 20.
Several studies have found a high incidence of violations of the
competitive bidding law. The staff of the Assembly Committee on
oversight, Analysis and Investigation examined audits of individual
municipalities that the Comptroller filed during a thirteen month
period in 1991-92.
Out of a total of 852 municipalities audited, the Comptroller found
competitive bidding violations in 206, or 24%, of the municipalities.
The kinds of violations included improper bid splitting, abuses of
change orders, overly restrictive bid specifications and simply not
bothering to competitively bid when it was required. Many of the
municipalities were repeat offenders; in 27 cases a previous
Comptroller's audit had cited the municipality for violating the
competitive bidding law.

The Oversight Committee survey confirmed findings that the comptroller
had made in a 1988 study entitled:
STATEWIDE SURVEY OF LOCAL
GOVERNMENT PURCHASING PRACTICES. CT.
The Comptroller found that: The
results of our survey confirmed the continuation of a long-standing
problem with municipal purchasing practices, namely the failure to
competitively bid those purchases required by law.... The seriousness
of the problem is demonstrated by the fact that many of our regularly
scheduled audits have repeatedly disclosed instances where items
should have been competitively bid but were not.
SURVEY, at 7. In 1994, Assemblyman Robert K. Sweeney
issued a report
which also found violations of the competitive bidding laws by school
and local government officials. The Assemblyman's report focused
particularly on abuses involving overly restrictive bid
specifications that limited bidding to only specified brand names.
The report noted the lack of any effective mechanism for assuring
compliance with the law. The absence of an enforcement mechanism is a
key element in how the competitive bidding law can be ignored.

The Comptroller does perform audits of municipalities and those audits
do address competitive bidding issues. However, when the Comptroller
does find violations, he has no power to require that the situation
be corrected. Indeed, a municipality is not even required to respond
to a Comptroller's audit. See GML § 35 Subd. 4(b) (1). The Attorney
General does not have jurisdiction over governmental violations of
the competitive bidding law, unless the abuse rises to the level of
criminal conduct, such as bribe-taking. A frustrated bidder or
taxpayer may sue to stop a contract, but a frustrated bidder has no
right to a contract award or to damages. If the court finds an
illegally let contract, the municipality can generally just redo the
bidding and contracting process. There is no meaningful incentive for
the frustrated bidder to bear the expense of litigating to enforce
the competitive bidding law.
See,
E.G.,
JANVEY & SONS. COUNTY OF NASSAU,
60 N.Y.2d 887. The bill
approaches the problem in two ways. First, the bill tries to help
political subdivisions to follow the law by providing them with


informed opinions on the legality of procurement actions and with
particularized information on proper bid specifications. Secondly,
the bill creates an enforcement mechanism that holds a political
subdivision accountable when it ignores warnings of illegal conduct.
The cornerstone of the bill (GML § 103-g) is a new procedure that
allows a taxpayer or frustrated bidder to obtain a Comptroller's
opinion on the legality of a proposed procurement action. The
Comptroller has a great deal of expertise in municipal procurement
due to the Comptroller's auditing in this area. The proposed
Comptroller's opinions, like municipal audits, would enable the
Comptroller to better perform his duty of supervising the accounts of
political subdivisions. If the Comptroller opines that the proposed
procurement action is illegal, the hope is that the political
subdivision would refrain from so acting.

If the political subdivision chooses to disregard the Comptroller's
warning, there may be two consequences. First, the Attorney General
is authorized to sue to enjoin the procurement action. Second, a
frustrated bidder, who should have won the contract, may sue for
damages of three times the amount of its lost profits. In either
case, the court would grant relief only if the court independently
finds that the procurement action was illegal. The potential for
money damages does entail the possibility that the political
subdivision, and its taxpayers, would experience a monetary loss in
the short term. This is the incentive for a political subdivision to
adhere to the law. However, it is expected that adherence to the
competitive bidding laws in the long term will result in a net gain
for the political subdivision and its taxpayers, recognizing that a
primary goal of competitive bidding laws is to ensure for the
municipality the best price for the goods being purchased. It bears
emphasizing that a municipality may easily avoid any loss simply by
abiding by the Comptroller's opinion.

The bill (GML § 103-g(4) (b)) also allows a Court to award limited
damages to a frustrated bidder when there has been no Comptroller's
opinion of illegality and the court nevertheless finds the
procurement action to be illegal. In the rare case where a court
voids a contract for illegality after a municipality has already
received performance, the court ordinarily awards the performing
party its costs, which usually results in the municipality saving
money off the contract price. The bill allows a frustrated bidder,
without a supporting Comptroller opinion, to recover no more than the
amount saved by the political subdivision by the voiding of the
contract. The bill (GML § 103-g (6)) includes a one hundred dollar
fee for filing a complaint initiating a Comptroller's opinion. The
fee is designed to fund the Comptroller's work, as well as to provide
a mechanism for screening out frivolous complaints.

The bill (GML 103-g(5)) also establishes a civil penalty for a
governmental official who willfully and intentionally violates the
competitive bidding law. The problem of overly restrictive bid
specifications is specifically addressed in the bill. Section three
codifies the case law rule that specifications may not be unduly
restrictive and clarifies how brand names may be used in bid
specifications. Section six allows political subdivisions to make
greater use of the expertise of the office of general services in
developing bid specifications. ,Other provisions of the bill clarify


that bids are public records (section four) and would
require a response to a Comptroller's audit finding that a political
subdivision violated the competitive bidding law (section five).

LEGISLATIVE HISTORY:
2012: S.3052 - Kruger

FISCAL IMPLICATIONS:
The additional work of the Comptroller will be funded by fees paid by
those who avail themselves of the new procedures.

EFFECTIVE DATE:
The first of January next succeeding the date on which it shall have
become law; provided, however, the amendments to subdivision 2 of
section 103 of the general municipal law made by section four of this
act shall not affect the expiration and reversion of such subdivision
as provided in subdivision (a) of section of part X of chapter 62
of the laws of 2003, as amended, when upon such date the provisions
of section five of this act shall take effect.

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

                                  1042

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen.  RIVERA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government

AN ACT to amend the general municipal law and the state finance law,  in
  relation to ensuring compliance with the competitive bidding law

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

  Section 1. Short title. This act shall be known and may  be  cited  as
the "municipal competitive bidding enforcement act."
  S  2.  The  general  municipal  law is amended by adding a new section
103-h to read as follows:
  S 103-H. ENFORCEMENT OF COMPETITIVE BIDDING LAW. 1.  DEFINITIONS.  (A)
"PROCUREMENT  ACTION"  MEANS ANY TRANSACTION WHICH IS CLAIMED TO CONSTI-
TUTE A CONTRACT FOR PUBLIC WORK INVOLVING AN EXPENDITURE  OF  MORE  THAN
TWENTY THOUSAND DOLLARS OR A PURCHASE CONTRACT INVOLVING THE EXPENDITURE
OF  MORE THAN TEN THOUSAND DOLLARS WHICH SHOULD BE AWARDED TO THE LOWEST
RESPONSIBLE BIDDER, AS PROVIDED BY SECTION ONE  HUNDRED  THREE  OF  THIS
ARTICLE.
  (B)  "GOOD  FAITH  BIDDER" MEANS ANY PERSON WHO HAS SUBMITTED A BID IN
RESPONSE TO AN ADVERTISEMENT FOR SEALED BIDS, OR WHO COULD SUBMIT A GOOD
FAITH BID ON A PROCUREMENT ACTION.
  2. COMPTROLLER'S OPINIONS. UPON A COMPLAINT FILED BY A TAXPAYER OF THE
POLITICAL SUBDIVISION OR BY A GOOD FAITH BIDDER, THE OFFICE OF THE STATE
COMPTROLLER SHALL ISSUE AN OPINION ON  WHETHER  A  PROPOSED  PROCUREMENT
ACTION  BY A POLITICAL SUBDIVISION COMPLIES WITH THE COMPETITIVE BIDDING
REQUIREMENTS OF SECTION ONE HUNDRED THREE OF THIS ARTICLE. THE COMPLAINT
SHALL SPECIFY THE PROCUREMENT ACTION THAT IS CLAIMED TO VIOLATE  SECTION
ONE  HUNDRED  THREE  OF  THIS ARTICLE. THE TAXPAYER OR GOOD FAITH BIDDER
SHALL SERVE A COPY OF THE COMPLAINT ON THE POLITICAL  SUBDIVISION  PRIOR
TO  SERVING THE COMPLAINT ON THE COMPTROLLER. UPON THE FILING OF A PRIMA
FACIE VALID COMPLAINT WITH THE COMPTROLLER, THE COMPTROLLER SHALL NOTIFY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05669-01-3

S. 1042                             2

THE POLITICAL SUBDIVISION. UPON RECEIPT OF SUCH NOTICE  FROM  THE  COMP-
TROLLER, THE POLITICAL SUBDIVISION MAY NOT PROCEED WITH THE COMPLAINT OF
PROCUREMENT  ACTION FOR A PERIOD OF THIRTY DAYS. IN RENDERING HIS OR HER
OPINION,  THE  COMPTROLLER  MAY  CONSULT    WITH  THE  OFFICE OF GENERAL
SERVICES AS TO THE REASONABLENESS AND VALIDITY  OF  ANY  BID  SPECIFICA-
TIONS.  THE  COMPTROLLER  SHALL ISSUE A WRITTEN OPINION PURSUANT TO THIS
SUBDIVISION WITHIN THIRTY DAYS OF SUCH NOTICE TO THE POLITICAL  SUBDIVI-
SION  AND  SHALL  PROMPTLY  SERVE COPIES OF THE OPINION ON THE POLITICAL
SUBDIVISION AND ON THE COMPLAINING PARTY.
  3. ATTORNEY GENERAL. IF THE COMPTROLLER'S OPINION IS THAT THE PROCURE-
MENT ACTION WOULD VIOLATE SECTION ONE HUNDRED THREE OF THIS ARTICLE, THE
COMPTROLLER SHALL TRANSMIT A COPY OF THE OPINION TO THE ATTORNEY  GENER-
AL.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE ATTORNEY GENERAL IS
AUTHORIZED TO BRING A SPECIAL PROCEEDING IN THE SUPREME COURT TO HAVE  A
PROCUREMENT ACTION ENJOINED OR DECLARED NULL AND VOID ON THE GROUND THAT
IT IS IN VIOLATION OF SECTION ONE HUNDRED THREE OF THIS ARTICLE.
  4.  DAMAGES  TO  GOOD  FAITH  BIDDER. A GOOD FAITH BIDDER MAY BRING AN
ACTION IN THE SUPREME COURT TO RECOVER DAMAGES AND ATTORNEY'S FEES  FROM
A  POLITICAL  SUBDIVISION,  WHICH  ENGAGES IN A VIOLATION OF SECTION ONE
HUNDRED THREE OF THIS ARTICLE. THE COURT SHALL AWARD DAMAGES AND  ATTOR-
NEY'S FEES IF THE COURT FINDS THAT THE GOOD FAITH BIDDER WOULD HAVE BEEN
THE  LOWEST  RESPONSIBLE  BIDDER,  BUT  FOR  THE POLITICAL SUBDIVISION'S
VIOLATION OF SECTION ONE HUNDRED THREE OF THIS  ARTICLE.  THE  COURT  IS
AUTHORIZED  IN  ANY SUCH ACTION TO DECLARE AN ILLEGALLY AWARDED CONTRACT
TO BE NULL AND VOID.
  (A) IF THE COMPTROLLER HAS ISSUED  AN  OPINION  THAT  THE  PROCUREMENT
ACTION  WOULD BE IN VIOLATION OF SECTION ONE HUNDRED THREE OF THIS ARTI-
CLE AND THE POLITICAL SUBDIVISION  HAS  THEREAFTER  PROCEEDED  WITH  THE
PROCUREMENT ACTION, THE MEASURE OF DAMAGES SHALL BE THREE TIMES THE GOOD
FAITH BIDDER'S LOST PROFITS.
  (B)  IF THE COMPTROLLER HAS NOT ISSUED AN OPINION THAT THE PROCUREMENT
ACTION WOULD BE IN VIOLATION OF SECTION ONE HUNDRED THREE OF THIS  ARTI-
CLE,  THE  MEASURE  OF DAMAGES SHALL BE THE LESSER OF (I) THE GOOD FAITH
BIDDER'S LOST PROFITS AND (II) THE DIFFERENCE BETWEEN THE PRICE  OF  THE
NULLIFIED  CONTRACT  AND  ANY AMOUNT THAT THE COURT AWARDS TO THE PERSON
WHO PERFORMED ON THE NULLIFIED CONTRACT.
  5. CIVIL PENALTY. ANY PERSON  WHO  SHALL  WILFULLY  AND  INTENTIONALLY
VIOLATE  THE  COMPETITIVE  BIDDING  REQUIREMENTS  OF SECTION ONE HUNDRED
THREE OF THIS ARTICLE SHALL BE PERSONALLY LIABLE FOR A CIVIL PENALTY  OF
NOT  MORE THAN ONE THOUSAND DOLLARS. IN A PROCEEDING BROUGHT PURSUANT TO
THIS SECTION, THE COMPTROLLER'S OPINIONS AND AUDITS MAY BE ADMITTED INTO
EVIDENCE ON THE ISSUE OF THE RESPONDENT'S STATE OF MIND,  PROVIDED  THAT
(A)  THE OPINION OR AUDIT WAS ISSUED PRIOR TO THE ALLEGED VIOLATION, (B)
THE OPINION OR AUDIT WAS ISSUED NO MORE THAN  TEN  YEARS  PRIOR  TO  THE
ALLEGED  VIOLATION, AND (C) THE OPINION OR AUDIT CONCERNED THE SAME KIND
OF ITEM OR SAME KIND OF PRACTICE AS THE ALLEGED VIOLATION.
  6. COMPLAINT FEE. WHENEVER THE COMPTROLLER  ACCEPTS  A  COMPLAINT  FOR
FILING  PURSUANT  TO  THIS  SECTION,  THE  COMPTROLLER SHALL REQUIRE AND
COLLECT A FEE OF ONE HUNDRED DOLLARS, WHICH SHALL BE PAID INTO THE STATE
TREASURY AND WHICH SHALL, SO FAR AS IS NECESSARY, BE APPROPRIATED  ANNU-
ALLY  BY  THE  LEGISLATURE TO THE COMPTROLLER TO BE USED IN IMPLEMENTING
THIS ARTICLE.
  S 3. Section 103 of the general municipal law is amended by  adding  a
new subdivision 14 to read as follows:
  14.  EXCEPT AS OTHERWISE EXPRESSLY AUTHORIZED BY THIS ARTICLE, A POLI-
TICAL SUBDIVISION MAY NOT REQUIRE THAT BIDS CONFORM TO  UNDULY  RESTRIC-

S. 1042                             3

TIVE  SPECIFICATIONS.  ALL  SPECIFICATIONS  SHALL  BE  DRAFTED  SO AS TO
PROMOTE OVERALL ECONOMY FOR  THE  PURPOSES  INTENDED  AND  TO  ENCOURAGE
COMPETITION  IN  SATISFYING  THE  NEEDS  OF THE POLITICAL SUBDIVISION. A
BRAND  NAME  MAY  BE  USED  AS A SPECIFICATION ONLY IF THE SPECIFICATION
CLEARLY STATES THAT THE BRAND NAME OR EQUIVALENT IS ACCEPTABLE. WHERE  A
BRAND  NAME  OR  EQUIVALENT SPECIFICATION IS USED IN A BID SOLICITATION,
THE SOLICITATION SHALL CONTAIN EXPLANATORY LANGUAGE THAT THE  USE  OF  A
BRAND  NAME  IS  FOR  THE PURPOSE OF DESCRIBING THE STANDARD OF QUALITY,
PERFORMANCE AND CHARACTERISTICS DESIRED AND IS NOT INTENDED TO LIMIT  OR
RESTRICT  COMPETITION.  IN  ANY  OPINION,  PROCEEDING  OR ACTION BROUGHT
PURSUANT TO SECTION ONE HUNDRED THREE-H OF THIS ARTICLE, A BID  SPECIFI-
CATION DEVELOPED AND PROVIDED BY THE OFFICE OF GENERAL SERVICES SHALL BE
DEEMED VALID.
  S  4.  Subdivision  2  of section 103 of the general municipal law, as
amended by section 4 of chapter 608 of the laws of 2011, is  amended  to
read as follows:
  2.  Advertisement  for bids and offers shall be published in the offi-
cial newspaper or newspapers, if any, or otherwise  in  a  newspaper  or
newspapers designated for such purpose. Such advertisement shall contain
a  statement of the time when and place where all bids received pursuant
to such notice will be publicly opened and read and where  the  identity
of  all  offerers will be publicly disclosed, and the designation of the
receiving device if the political subdivision or district has authorized
the receipt of bids and offers in an electronic format.  Such  board  or
agency  may  by resolution designate any officer or employee to open the
bids and offers at the time and place  specified  in  the  notice.  Such
designee  shall  make  a record of such bids and offers in such form and
detail as the board or agency shall prescribe and present  the  same  at
the  next  regular  or special meeting of such board or agency. All bids
received shall be publicly opened and read at  the  time  and  place  so
specified  and  the identity of all offerers shall be publicly disclosed
at the time and place so specified.  ALL BIDS RECEIVED AND OPENED  SHALL
BE PUBLIC RECORDS AND SHALL BE AVAILABLE FOR PUBLIC INSPECTION AND COPY-
ING.  At  least  five days shall elapse between the first publication of
such advertisement and the date so specified for the opening and reading
of bids and offers.
  S 5. Subdivision 2 of section 103 of the  general  municipal  law,  as
amended  by  section 5 of chapter 608 of the laws of 2011, is amended to
read as follows:
  2. Advertisement for bids and offers shall be published in  the  offi-
cial  newspaper  or  newspapers,  if any, or otherwise in a newspaper or
newspapers designated for such purpose. Such advertisement shall contain
a statement of the time when and place where all bids received  pursuant
to  such  notice will be publicly opened and read and where the identity
of all offerers will be publicly disclosed. Such board or agency may  by
resolution designate any officer or employee to open the bids and offers
at  the time and place specified in the notice. Such designee shall make
a record of such bids and offers in such form and detail as the board or
agency shall prescribe and present the  same  at  the  next  regular  or
special  meeting  of  such  board  or agency. All bids received shall be
publicly opened and read at the time and  place  so  specified  and  the
identity  of  all  offerers  shall be publicly disclosed at the time and
place so specified.   ALL BIDS  RECEIVED  AND  OPENED  SHALL  BE  PUBLIC
RECORDS  AND  SHALL  BE  AVAILABLE FOR PUBLIC INSPECTION AND COPYING. At
least five days shall elapse  between  the  first  publication  of  such

S. 1042                             4

advertisement  and  the date so specified for the opening and reading of
bids and offers.
  S 6. Subparagraph 1 of paragraph (b) of subdivision 4 of section 35 of
the  general  municipal  law,  as  amended by chapter 692 of the laws of
1989, is amended to read as follows:
  (1) Not later than ninety days after  presentation  to  the  governing
board  of  a  report of examination performed by the office of the state
comptroller, or receipt by the governing  board  of  any  report  of  an
external  audit  performed  by  an  independent public accountant or any
management letter in conjunction with such an audit, the governing board
may, in its discretion, provide to the  comptroller,  and  file  in  the
office  of the clerk, or with the secretary if there is no clerk, of the
municipal corporation, industrial development agency,  district,  agency
or  activity, a written response to the findings and recommendations, if
any, in the report or letter. PROVIDED, HOWEVER, THAT IF SUCH REPORT  OR
LETTER  CONTAINS  A FINDING THAT THE COMPETITIVE BIDDING REQUIREMENTS OF
SECTION ONE HUNDRED THREE OF THIS CHAPTER WERE VIOLATED,  THE  GOVERNING
BOARD  MUST  FILE  A  WRITTEN  RESPONSE. In the case of municipal corpo-
rations, industrial development agency, districts,  agencies  or  activ-
ities subject to examination by the commissioner of education, any writ-
ten response shall also be provided to such commissioner.
  S 7. The state finance law is amended by adding a new section 164-a to
read as follows:
  S  164-A. PROVIDING BID SPECIFICATIONS TO POLITICAL SUBDIVISIONS.  THE
COMMISSIONER OF GENERAL SERVICES SHALL PROVIDE TO ANY POLITICAL SUBDIVI-
SION, AT NO CHARGE, ANY SPECIFICATION THAT THE COMMISSIONER  HAS  DEVEL-
OPED FOR ITEMS TO BE LET FOR BIDS IN PURCHASE CONTRACTS. THE COMMISSION-
ER MAY DEVELOP ADDITIONAL SPECIFICATIONS AT THE REQUEST OF ANY POLITICAL
SUBDIVISION  AND MAY PROVIDE SUCH SPECIFICATIONS TO THE POLITICAL SUBDI-
VISION AND MAY CHARGE THE POLITICAL SUBDIVISION FOR THE COST OF DEVELOP-
ING SUCH SPECIFICATIONS.
  S 8. If any clause, sentence, paragraph, section or part of  this  act
shall  be adjudged by any court of competent jurisdiction to be invalid,
such judgment shall not affect, impair or invalidate the remainder ther-
eof, but shall be confined in its operation  to  the  clause,  sentence,
paragraph,  section or part thereof directly involved in the controversy
in which such judgment shall have been rendered.
  S 9. This act shall take effect on the first of January next  succeed-
ing the date on which it shall have become a law; provided, however, the
amendments  to subdivision 2 of section 103 of the general municipal law
made by section four of this act shall not  affect  the  expiration  and
reversion  of such subdivision pursuant to subdivision (a) of section 41
of part X of chapter 62 of the laws of 2003, as amended, when upon  such
date the provisions of section five of this act shall take effect.

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