senate Bill S7114

Provides that state contracts shall include a provision that allows the state to cancel the contract when the cost of the contract exceeds the original bid by more than ten percent

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Bill Status


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

actions

  • 28 / Apr / 2014
    • REFERRED TO FINANCE
  • 02 / Jun / 2014
    • 1ST REPORT CAL.1087
  • 03 / Jun / 2014
    • 2ND REPORT CAL.
  • 09 / Jun / 2014
    • ADVANCED TO THIRD READING
  • 20 / Jun / 2014
    • COMMITTED TO RULES

Summary

Provides that state contracts shall include a provision that allows the state to cancel the contract when the cost of the contract exceeds the original bid by more than ten percent.

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Bill Details

See Assembly Version of this Bill:
A9638
Versions:
S7114
Legislative Cycle:
2013-2014
Current Committee:
Senate Rules
Law Section:
State Finance Law
Laws Affected:
Add §169, St Fin L; add §109-c, Gen Muni L; add §2882, Pub Auth L

Sponsor Memo

BILL NUMBER:S7114

TITLE OF BILL: An act to amend the state finance law, the general
municipal law and the public authorities law, in relation to contracts
where costs exceed the bid by more than ten percent

PURPOSE:

This bill would provide that state contracts shall include a provision
that allows the state to cancel the contract when the cost of the
contract exceeds the original bid by more than ten percent.

SUMMARY OF PROVISIONS:

Section 1 - Amends the state finance law by adding a new section 169.

Section 2 - Amends the general municipal law by adding a new section
109-c.

Section 3 - Amends the public authorities law by adding a new section
2882.

Section 4 - Effective Date

JUSTIFICATION:

This legislation would create additional accountability for entities
which bid on state contracts as well as cost savings for state and
local governments.

LEGISLATIVE HISTORY:

New bill

FISCAL IMPLICATIONS:

None

EFFECTIVE DATE:

This act shall take effect immediately.

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

                                  7114

                            I N  S E N A T E

                             April 28, 2014
                               ___________

Introduced  by  Sen.  DeFRANCISCO -- read twice and ordered printed, and
  when printed to be committed to the Committee on Finance

AN ACT to amend the state finance law, the general municipal law and the
  public authorities law, in relation to contracts  where  costs  exceed
  the bid by more than ten percent

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

  Section 1. The state finance law is amended by adding  a  new  section
169 to read as follows:
  S  169. CONTRACTS; COSTS EXCEED BID. A CLAUSE SHALL BE INSERTED IN ALL
SPECIFICATIONS OR CONTRACTS HEREAFTER MADE OR AWARDED BY  THE  STATE  OR
ANY PUBLIC DEPARTMENT, AGENCY, OR OFFICIAL THEREOF, FOR WORK OR SERVICES
PERFORMED  OR  TO  BE PERFORMED, OR GOODS SOLD OR TO BE SOLD, TO PROVIDE
THAT UPON A PERSON,  FIRM,  PARTNERSHIP  OR  CORPORATION  EXCEEDING  THE
ORIGINAL BID BY MORE THAN TEN PERCENT, SUCH CONTRACT MAY BE CANCELLED OR
TERMINATED  BY  THE  STATE  WITHOUT  INCURRING ANY PENALTY OR DAMAGES ON
ACCOUNT OF SUCH CANCELLATION OR TERMINATION, BUT ANY MONIES OWING BY THE
STATE FOR GOODS DELIVERED OR WORK DONE  PRIOR  TO  THE  CANCELLATION  OR
TERMINATION SHALL BE PAID.
  S  2.  The  general  municipal  law is amended by adding a new section
109-c to read as follows:
  S 109-C. CONTRACTS; COSTS EXCEED BID. A CLAUSE SHALL  BE  INSERTED  IN
ALL SPECIFICATIONS OR CONTRACTS HEREAFTER MADE OR AWARDED BY A MUNICIPAL
CORPORATION  OR  ANY PUBLIC DEPARTMENT, AGENCY, OR OFFICIAL THEREOF, FOR
WORK OR SERVICES PERFORMED OR TO BE PERFORMED, OR GOODS SOLD  OR  TO  BE
SOLD,  TO  PROVIDE  THAT UPON A PERSON, FIRM, PARTNERSHIP OR CORPORATION
EXCEEDING THE ORIGINAL BID BY MORE THAN TEN PERCENT, SUCH  CONTRACT  MAY
BE CANCELLED OR TERMINATED BY THE STATE WITHOUT INCURRING ANY PENALTY OR
DAMAGES  ON  ACCOUNT OF SUCH CANCELLATION OR TERMINATION, BUT ANY MONIES
OWING BY THE MUNICIPAL CORPORATION OR ANY PUBLIC DEPARTMENT,  AGENCY  OR
OFFICIAL THEREOF FOR GOODS DELIVERED OR WORK DONE PRIOR TO THE CANCELLA-
TION OR TERMINATION SHALL BE PAID.
  S  3.  The  public  authorities law is amended by adding a new section
2882 to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14884-01-4

S. 7114                             2

  S 2882. CONTRACTS; COSTS EXCEED BID. A CLAUSE SHALL BE INSERTED IN ALL
SPECIFICATIONS OR CONTRACTS HEREAFTER MADE  OR  AWARDED  BY  ANY  PUBLIC
AUTHORITY  OR  BY  ANY  OFFICIAL  OF ANY PUBLIC AUTHORITY CREATED BY THE
STATE OR ANY POLITICAL SUBDIVISION FOR WORK OR SERVICES PERFORMED OR  TO
BE  PERFORMED,  OR  GOODS  SOLD  OR  TO  BE SOLD, TO PROVIDE THAT UPON A
PERSON, FIRM, PARTNERSHIP OR CORPORATION EXCEEDING THE ORIGINAL  BID  BY
MORE  THAN  TEN PERCENT, SUCH CONTRACT MAY BE CANCELLED OR TERMINATED BY
THE STATE WITHOUT INCURRING ANY PENALTY OR DAMAGES ON  ACCOUNT  OF  SUCH
CANCELLATION OR TERMINATION, BUT ANY MONIES OWING BY THE PUBLIC AUTHORI-
TY  OR  ANY  PUBLIC  DEPARTMENT,  AGENCY,  OR OFFICIAL THEREOF FOR GOODS
DELIVERED OR WORK DONE PRIOR TO THE CANCELLATION OR TERMINATION SHALL BE
PAID.
  S 4. This act shall take effect immediately.

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