BILL NUMBER:S691

TITLE OF BILL:
An act
to amend the general municipal law, in relation to allowing
not-for-profits to make purchases through county contracts

PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this legislation is to authorize certain not-for-profit
corporations that provide a service to a county to make purchases or
to contract for certain services for the county in which the
not-for-profit has a contract with the same manner that political
subdivisions and districts located within the county are able to do so.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Amends the General Municipal Law by adding a new Section
109-c. The new section authorizes certain not-for-profit corporations
that provide a service to a county, to make purchases or to contract
for services, other than services subject to Article Eight, or any
provision of the Labor Law, and other than purchases of motor fuel,
diesel motor fuel or cigarettes, through the county with which the
not-for-profit has a contract.

The county may establish limitations with respect to commodities and
services and impose other appropriate conditions upon purchasing as
deemed necessary by the chief fiscal officer of the county to protect
              

the county's own purchasing interests Such a not-for-profit
corporation and vendor shall each be responsible for any tax due with
respect to the purchases by the not-for-profit corporation. Nothing in
this section shall be construed as altering any tax exemption
afforded to the not-for-profit corporation or as creating a
principal/agent relationship between the county and not-for-profit
corporation.

Section 2: Establishes the effective date.

JUSTIFICATION:
During these difficult economic times, local governments are
struggling to provide essential services while minimizing the impact
to taxpayers. It has and continues to be increasingly
difficult given the rising costs for both commodities and services.
One way in which local governments are successfully minimizing costs
to taxpayers is through the collaborative procurement of goods and
services with other local governments.

Since not-for-profit corporations that provide services to counties
are also under financial pressure during these economic times, this
legislation will allow not-for-profit corporations to also procure
goods and services collaboratively with local governments, to
minimize the cost of providing services.

LEGISLATIVE HISTORY:
2009-2010 - S.5601  - PASSED SENATE
2011-2012 - S2012-A - Died - Rules Committee

FISCAL IMPLICATIONS:


There are no fiscal implications.

EFFECTIVE DATE:
This act shall take effect immediately.