Assembly Bill A8561

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

                                 8561--A

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              May 28, 2009
                               ___________

Introduced  by M. of A. HOYT -- (at request of the State Comptroller) --
  read once and referred  to  the  Committee  on  Local  Governments  --
  reported  and referred to the Committee on Ways and Means -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the general municipal law, in relation to audits by  the
  state comptroller of certain organizations controlled by local govern-
  ment  entities  (Part  A);  to  amend  the  general  municipal law, in
  relation to acquisition and use of credit cards by  local  governments
  (Part B); to amend the general municipal law and the executive law, in
  relation  to  procurements by local governments (Part C); and to amend
  the local finance law, in relation to making technical  amendments  to
  the  time  frame  within  which  a  governing board of certain munici-
  palities or school districts must act with respect to  recommendations
  to the proposed budget (Part D)

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

  Section 1. This act enacts into law major  components  of  legislation
which  relate to enhanced accountability and transparency by the mandate
relief for local governments. Each component is wholly contained  within
a  Part  identified  as  Parts  A through D. The effective date for each
particular provision contained within such Part is set forth in the last
section of such Part. Any provision in any section  contained  within  a
Part, including the effective date of the Part, which makes reference to
a  section  "of  this act", when used in connection with that particular
component, shall be deemed  to  mean  and  refer  to  the  corresponding
section of the Part in which it is found. Section three of this act sets
forth the general effective date of this act.

                                 PART A

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10318-02-9

              

A. 8561--A                          2

  Section  1.  Section  34  of  the general municipal law, as amended by
chapter 233 of the laws of 2006, is amended to read as follows:
  S  34.  Powers  and  duties  of examiners. 1. The comptroller and each
examiner of municipal affairs shall  have  power  to  examine  into  the
financial affairs of every such municipal corporation, industrial devel-
opment agency, district, [fire company as defined in section two hundred
four-a  of this chapter,] agency and activity [and], ANY FIRE COMPANY AS
DEFINED IN SECTION TWO HUNDRED FOUR-A OF THIS  CHAPTER,  AND  ANY  OTHER
ORGANIZATION, EXCEPT A PUBLIC CORPORATION, THAT IS DIRECTLY OR INDIRECT-
LY  CONTROLLED BY ONE OR MORE OF ANY SUCH MUNICIPAL CORPORATIONS, INDUS-
TRIAL DEVELOPMENT AGENCIES, DISTRICTS OR AGENCIES. AN ORGANIZATION SHALL
BE DEEMED UNDER THE CONTROL  OF  ONE  OR  MORE  MUNICIPAL  CORPORATIONS,
INDUSTRIAL DEVELOPMENT AGENCIES, DISTRICTS OR AGENCIES WHEN, AMONG OTHER
CIRCUMSTANCES,  THE  LAW  OR  DOCUMENTS  ESTABLISHING THE ORGANIZATION'S
INTERNAL GOVERNANCE PROVIDE FOR ONE OR MORE OFFICERS OR EMPLOYEES OF ANY
SUCH MUNICIPAL CORPORATION, INDUSTRIAL DEVELOPMENT AGENCY,  DISTRICT  OR
AGENCY,  ACTING  IN THEIR OFFICIAL CAPACITIES, TO: (A) SELECT A MAJORITY
OF A QUORUM OF THE ORGANIZATION'S  HIGHEST  POLICY-MAKING  BODY  OR  THE
ORGANIZATION'S CHIEF EXECUTIVE OFFICER; (B) CONSTITUTE A MAJORITY OF THE
VOTING STRENGTH THAT SELECTS EITHER A MAJORITY OF A QUORUM OF THE ORGAN-
IZATION'S  HIGHEST POLICY-MAKING BODY OR THE ORGANIZATION'S CHIEF EXECU-
TIVE OFFICER; OR (C) SERVE EX OFFICIO AS EITHER: (I)  A  MAJORITY  OF  A
QUORUM OF THE ORGANIZATION'S HIGHEST POLICY-MAKING BODY; (II) THE ORGAN-
IZATION'S  CHIEF  EXECUTIVE OFFICER; OR (III) A PARTNER IN THE ORGANIZA-
TION. AN ORGANIZATION UNDER THE CONTROL OF ONE OR MORE MUNICIPAL  CORPO-
RATIONS,  INDUSTRIAL  DEVELOPMENT  AGENCIES, DISTRICTS OR AGENCIES SHALL
ALSO INCLUDE ANY OTHER ORGANIZATION THAT IS CONTROLLED BY SUCH ORGANIZA-
TION.
  2. IN CONNECTION WITH ANY EXAMINATION AUTHORIZED BY SUBDIVISION ONE OF
THIS SECTION, THE COMPTROLLER AND EACH  EXAMINER  OF  MUNICIPAL  AFFAIRS
SHALL HAVE POWER to administer an oath to any person whose testimony may
be  required, and to compel the appearance and attendance of such person
for the purpose of any  such  examination  and  investigation,  and  the
production  of books and papers. In the case of a municipal corporation,
industrial development agency, or school district, no such person  shall
be compelled to appear or be examined elsewhere than within such munici-
pal  corporation,  industrial development agency, or school district. In
the case of any district other than a school district,  no  such  person
may be compelled to appear or be examined elsewhere than within the town
or  one  of  the  towns  in  which  such  district or portion thereof is
located. In the case of an urban renewal agency, no such person shall be
compelled to appear or be examined  outside  the  municipal  corporation
wherein  such  agency  is established. In the case of a fire company, no
such person shall be compelled to appear or be examined outside the area
served by the company. In the case of an activity, no such person  shall
be  compelled to appear outside the area served by the activity.  IN THE
CASE OF AN ORGANIZATION UNDER THE  CONTROL  OF  ONE  OR  MORE  MUNICIPAL
CORPORATIONS, INDUSTRIAL DEVELOPMENT AGENCIES, DISTRICTS OR AGENCIES, NO
SUCH  PERSON  SHALL BE COMPELLED TO APPEAR OR TO BE EXAMINED OUTSIDE THE
COUNTY IN WHICH THE ORGANIZATION HAS ITS PRINCIPAL HEADQUARTERS. Willful
false swearing in such examination shall be perjury and shall be punish-
able as such.
  S 2. This act shall take effect immediately.

                                 PART B

A. 8561--A                          3

  Section 1. The general municipal  law  is  amended  by  adding  a  new
section 5-c to read as follows:
  S  5-C.  ACQUISITION AND USE OF CREDIT CARDS BY LOCAL GOVERNMENTS.  1.
THE FOLLOWING TERMS, WHEN USED OR REFERRED TO  IN  THIS  SECTION,  SHALL
HAVE THE FOLLOWING MEANING:
  (A)  "CREDIT  CARD"  MEANS  ANY  IDENTIFICATION PLATE, CARD OR SIMILAR
DEVICE ISSUED BY A PERSON TO A LOCAL GOVERNMENT WHICH  MAY  BE  USED  TO
PURCHASE  OR  LEASE  PROPERTY  OR  ACQUIRE SERVICES ON THE CREDIT OF THE
PERSON ISSUING THE CREDIT CARD OR A  PERSON  WHO  HAS  AGREED  WITH  THE
ISSUER  TO  PAY OBLIGATIONS ARISING FROM THE USE OF A CREDIT CARD ISSUED
TO ANOTHER PERSON. FOR PURPOSES OF THIS SECTION, "CREDIT CARD" SHALL NOT
INCLUDE A DEBIT CARD OR SIMILAR DEVICE THE USE OF WHICH  AUTHORIZES  THE
TRANSFER OR WITHDRAWAL OF ANY FUNDS OF THE LOCAL GOVERNMENT, AND NOTHING
IN THIS SECTION SHALL BE DEEMED TO AUTHORIZE THE USE, BY OR ON BEHALF OF
THE  LOCAL GOVERNMENT OF A DEBIT CARD OR SIMILAR DEVICE THE USE OF WHICH
AUTHORIZES THE TRANSFER OR WITHDRAWAL OF ANY FUNDS OF THE LOCAL  GOVERN-
MENT.
  (B) "CARD ISSUER" MEANS ANY ISSUER OF A CREDIT CARD.
  (C) "FINANCING AGENCY" MEANS ANY AGENCY DEFINED AS SUCH IN SUBDIVISION
EIGHTEEN OF SECTION FOUR HUNDRED ONE OF THE PERSONAL PROPERTY LAW.
  (D)  "PERSON"  MEANS  ANY  INDIVIDUAL, PARTNERSHIP, CORPORATION OR ANY
OTHER LEGAL OR COMMERCIAL ENTITY.
  2. NO CREDIT CARD MAY BE USED BY OR ON BEHALF OF ANY LOCAL GOVERNMENT,
AS SUCH TERM IS DEFINED IN SECTION  TEN  OF  THIS  ARTICLE,  UNLESS  THE
GOVERNING  BOARD  OF  THE  LOCAL  GOVERNMENT, BY LOCAL LAW, ORDINANCE OR
RESOLUTION, DETERMINES THAT IT IS IN THE PUBLIC  INTEREST  TO  AUTHORIZE
SUCH  LOCAL  GOVERNMENT  TO  ENTER  INTO  AN  AGREEMENT WITH ONE OR MORE
FINANCING AGENCIES OR CARD ISSUERS TO PROVIDE FOR THE ISSUANCE OF ONE OR
MORE CREDIT CARDS FOR THE PROCUREMENT OF COMMODITIES  AND  SERVICES  AND
FOR  USE  BY AUTHORIZED OFFICERS AND EMPLOYEES IN CONNECTION WITH TRAVEL
AND OTHER ACTUAL AND NECESSARY EXPENSES. THE CREDIT CARD OR CARDS  SHALL
BE  ISSUED IN THE NAME OF THE LOCAL GOVERNMENT AND THE SPECIFIC OFFICERS
AND EMPLOYEES, IN THEIR OFFICIAL CAPACITIES, AUTHORIZED PURSUANT TO  THE
INTERNAL  CREDIT CARD POLICY ADOPTED IN ACCORDANCE WITH SUBDIVISION FOUR
OF THIS SECTION, TO UTILIZE THE CREDIT CARD OR CARDS ISSUED TO THE LOCAL
GOVERNMENT. ANY SUCH LOCAL LAW, ORDINANCE OR RESOLUTION SHALL INCLUDE AN
INTERNAL CREDIT CARD POLICY, IN ACCORDANCE WITH SUBDIVISION FOUR OF THIS
SECTION, SETTING FORTH REQUIREMENTS FOR  THE  USE  OF  CREDIT  CARDS  ON
BEHALF  OF THE LOCAL GOVERNMENT. THE TERMS AND CONDITIONS OF SUCH AGREE-
MENT MUST BE CONSISTENT WITH THIS SECTION AND THE INTERNAL  CREDIT  CARD
POLICY  OF  THE LOCAL GOVERNMENT, AND SHALL BE DEEMED TO INCORPORATE THE
PROVISIONS OF SUBDIVISION TEN OF THIS SECTION.
  3. THE OFFICERS AND EMPLOYEES OF ANY LOCAL GOVERNMENT THAT HAS ENTERED
INTO AN AGREEMENT WITH A FINANCING AGENCY OR CARD ISSUER  AS  AUTHORIZED
BY  THE  PROVISIONS  OF  SUBDIVISION  TWO OF THIS SECTION MAY USE CREDIT
CARDS ONLY IN ACCORDANCE WITH THE  LOCAL  GOVERNMENT'S  INTERNAL  CREDIT
CARD POLICY FOR THE PROCUREMENT OF COMMODITIES AND SERVICES FOR PROPERLY
AUTHORIZED  MUNICIPAL  PURPOSES,  AND FOR PROPERLY AUTHORIZED TRAVEL AND
OTHER ACTUAL AND NECESSARY EXPENSES.  ANY SUCH OFFICER OR EMPLOYEE USING
SUCH CREDIT CARD OR CARDS SHALL  BE  PERSONALLY  LIABLE  FOR  ALL  COSTS
INCURRED  BY  THE  LOCAL  GOVERNMENT  IN CONNECTION WITH THE IMPROPER OR
UNAUTHORIZED USE BY THE OFFICER OR EMPLOYEE OF THE CREDIT CARD OR CARDS.
  4. THE INTERNAL CREDIT CARD POLICY ADOPTED BY THE GOVERNING  BOARD  OF
ANY  LOCAL  GOVERNMENT  THAT  HAS  DETERMINED  TO  USE  CREDIT CARDS FOR
PROCUREMENT OF COMMODITIES, SERVICES OR  TRAVEL  AND  OTHER  ACTUAL  AND
NECESSARY EXPENSES SHALL CONTAIN PROVISIONS PERTAINING TO:

A. 8561--A                          4

  (A)  THE  PARTICULAR  OFFICERS  AND  EMPLOYEES, OTHERWISE EMPOWERED TO
PROCURE COMMODITIES OR SERVICES ON BEHALF OF THE LOCAL GOVERNMENT, OR TO
INCUR TRAVEL AND OTHER ACTUAL AND NECESSARY EXPENSES, WHO ARE AUTHORIZED
TO UTILIZE THE CREDIT CARD OR CARDS ISSUED TO THE LOCAL GOVERNMENT;
  (B)  AN AUTHORIZED CREDIT LIMIT FOR EACH CARD AND IN THE AGGREGATE FOR
ALL CARDS ISSUED TO THE LOCAL GOVERNMENT, AND, IF  THE  GOVERNING  BOARD
CHOOSES, AN AUTHORIZED CREDIT LIMIT PER TRANSACTION;
  (C)  LIMITATIONS,  IF ANY, ON THE TYPES OF COMMODITIES OR SERVICES, OR
TRAVEL AND OTHER ACTUAL AND NECESSARY EXPENSES,  FOR  WHICH  THE  CREDIT
CARD  OR CARDS MAY BE USED, AND THE CIRCUMSTANCES UNDER WHICH THE CREDIT
CARD OR CARDS MAY BE USED FOR SUCH PURPOSES;
  (D) THE PERIODIC MONITORING BY THE APPROPRIATE OFFICIALS OF THE  LOCAL
GOVERNMENT OF THE USE OF THE CREDIT CARD OR CARDS;
  (E)  THE  DOCUMENTATION  REQUIRED  OF AN OFFICER OR EMPLOYEE USING THE
CREDIT CARD FOR COMMODITIES OR SERVICES OR FOR TRAVEL AND  OTHER  ACTUAL
AND  NECESSARY EXPENSES, IN ORDER TO FACILITATE THE APPROPRIATE AUDIT OF
THE RESULTING CLAIMS SUBMITTED BY A FINANCING AGENCY OR CARD ISSUER, AND
THE TIMEFRAME IN WHICH SUCH DOCUMENTATION IS REQUIRED TO BE SUBMITTED BY
THE OFFICER OR EMPLOYEE AFTER THEIR USE OF A CREDIT CARD;
  (F) THE MEANS OF RECOUPING FROM THE RESPONSIBLE  OFFICER  OR  EMPLOYEE
COSTS INCURRED WITH RESPECT TO ANY ILLEGAL OR UNAUTHORIZED EXPENDITURES,
OR IMPROPER USAGE OF THE CREDIT CARD OR CARDS; AND
  (G)  ANY OTHER TERMS OR CONDITIONS DEEMED BY THE GOVERNING BOARD TO BE
NECESSARY TO EFFECTUATE THE PROPER USE OF A CREDIT CARD OR CARDS.
  5. EXCEPT AS EXPRESSLY  PROVIDED  IN  THIS  SECTION,  PROCUREMENTS  OF
COMMODITIES  AND  SERVICES  FOR  WHICH  A  CREDIT  CARD IS USED SHALL BE
SUBJECT TO ALL LAWS  OTHERWISE  APPLICABLE  TO  MUNICIPAL  PROCUREMENTS,
INCLUDING,  BUT  NOT  LIMITED,  TO  SECTIONS  ONE  HUNDRED THREE AND ONE
HUNDRED FOUR-B OF THIS CHAPTER. TRAVEL AND OTHER  ACTUAL  AND  NECESSARY
EXPENSES FOR WHICH A CREDIT CARD IS USED SHALL BE INCURRED IN ACCORDANCE
WITH AND SHALL BE SUBJECT TO ALL LAWS OTHERWISE APPLICABLE TO THE INCUR-
RING OF SUCH MUNICIPAL CHARGES BY OFFICERS AND EMPLOYEES.
  6.  NO  PAYMENT  TO A FINANCING AGENCY OR CARD ISSUER FOR COMMODITIES,
SERVICES OR TRAVEL OR OTHER ACTUAL AND NECESSARY EXPENSES  FOR  WHICH  A
CREDIT  CARD  WAS  USED  MAY  BE  MADE  UNLESS, IN ADDITION TO ALL OTHER
REQUIREMENTS FOR THE AUDIT AND APPROVAL  OF  CLAIMS,  THE  DOCUMENTATION
REQUIRED  BY  THE LOCAL GOVERNMENT'S INTERNAL CREDIT CARD POLICY ADOPTED
IN ACCORDANCE WITH SUBDIVISION FOUR OF THIS SECTION IS SUBMITTED TO  THE
AUDITING  BODY  OR OFFICIAL OF THE LOCAL GOVERNMENT AND A CLAIM FROM THE
FINANCING AGENCY OR CARD ISSUER IS AUDITED AND  APPROVED  IN  ACCORDANCE
WITH  LAWS  GENERALLY  APPLICABLE  TO  THE  LOCAL GOVERNMENT'S AUDIT AND
APPROVAL OF CLAIMS FUNCTION.
  7. IF AFTER A CLAIM IS PRESENTED FOR AUDIT, A CREDIT  CARD  CHARGE  IS
DISALLOWED  IN  WHOLE  OR  IN  PART,  THE  LOCAL GOVERNMENT SHALL NOT BE
RESPONSIBLE FOR PAYMENT OF THE DISALLOWED  CHARGE  OR  ANY  INTEREST  OR
PENALTY  WHICH SHALL HAVE ACCRUED AS A RESULT OF SUCH DISALLOWED CHARGE.
ANY AGREEMENT THAT IS ENTERED INTO PURSUANT TO  THIS  SECTION  SHALL  BE
DEEMED  TO INCORPORATE THIS PROVISION. NOTHING CONTAINED HEREIN SHALL BE
CONSTRUED TO LIMIT ANY RIGHT THAT A  FINANCING  AGENCY  OR  CREDIT  CARD
ISSUER MAY HAVE UNDER LAW TO RECOVER THE AMOUNT OF ANY DISALLOWED CHARGE
OR INTEREST OR PENALTY THEREON FROM ANY OTHER PERSON OR ENTITY.
  8.  THE  AUDIT  OF  ANY  CLAIM SUBMITTED BY A FINANCING AGENCY OR CARD
ISSUER SHALL BE UNDERTAKEN IN A TIMELY FASHION SO THAT, UPON APPROVAL OF
THE CLAIM, PAYMENT MAY BE MADE PRIOR TO THE IMPOSITION  OF  INTEREST  OR
PENALTY CHARGES.

A. 8561--A                          5

  9.  CONTRACTS  ENTERED  INTO  PURSUANT  TO  THIS SECTION BETWEEN LOCAL
GOVERNMENTS AND FINANCING AGENCIES OR  CARD  ISSUERS  SHALL  BE  AWARDED
AFTER THE SOLICITATION OF ALTERNATIVE PROPOSALS OR QUOTATIONS IN ACCORD-
ANCE  WITH  THE  LOCAL GOVERNMENT'S WRITTEN INTERNAL POLICIES AND PROCE-
DURES  GOVERNING  PROCUREMENTS  ADOPTED  PURSUANT TO SECTION ONE HUNDRED
FOUR-B OF THIS CHAPTER.
  10. NO LIABILITY TO A FINANCING AGENCY OR CARD ISSUER UNDER A CONTRACT
ENTERED INTO PURSUANT TO THIS SECTION SHALL CONSTITUTE A  GENERAL  OBLI-
GATION  INDEBTEDNESS  OF THE LOCAL GOVERNMENT, AND NEITHER THE FAITH AND
CREDIT, NOR THE TAXING POWER OF THE LOCAL GOVERNMENT, MAY BE PLEDGED  TO
THE PAYMENT OF ANY AMOUNT DUE OR TO BECOME DUE UNDER SUCH A CONTRACT.
  S 2. This act shall take effect immediately.

                                 PART C

  Section  1. Subdivision 1 of section 103 of the general municipal law,
as amended by chapter 741 of the laws of 2005, is  amended  to  read  as
follows:
  1. Except as otherwise expressly provided by an act of the legislature
or  by  a  local  law adopted prior to September first, nineteen hundred
fifty-three, all contracts for public work involving an  expenditure  of
more  than  [twenty]  FIFTY  thousand dollars and all purchase contracts
involving an expenditure of more than  [ten]  TWENTY  thousand  dollars,
shall  be awarded by the appropriate officer, board or agency of a poli-
tical subdivision or of any district therein including but  not  limited
to  a  soil  conservation  district,  to  the  lowest responsible bidder
furnishing the required security after advertisement for sealed bids  in
the  manner  provided  by  this section. In any case where a responsible
bidder's gross price is reducible by an allowance for the value of  used
machinery,  equipment, apparatus or tools to be traded in by a political
subdivision, the gross price shall be reduced  by  the  amount  of  such
allowance,  for  the  purpose of determining the low bid. In cases where
two or more responsible bidders furnishing the required security  submit
identical  bids as to price, such officer, board or agency may award the
contract to any of such bidders. Such officer, board or agency  may,  in
his, HER or its discretion, reject all bids and readvertise for new bids
in  the  manner  provided by this section.   NO POLITICAL SUBDIVISION OR
DISTRICT MAY AVOID THE REQUIREMENTS  OF  THIS  SECTION  BY  ARTIFICIALLY
SPLITTING OR DIVIDING A SINGLE CONTRACT, OR BY ENTERING INTO A SERIES OF
CONTRACTS  DURING A FISCAL YEAR FOR THE SAME TYPE OF WORK OR THE SAME OR
SIMILAR COMMODITIES. For purposes of this  section,  "sealed  bids",  as
that term applies to purchase contracts, shall include bids submitted in
an electronic format, provided that the governing board of the political
subdivision  or  district,  by resolution, has authorized the receipt of
bids in such format. Submission in electronic format may  not,  however,
be  required as the sole method for the submission of bids. Bids submit-
ted in an electronic format shall  be  transmitted  by  bidders  to  the
receiving  device  designated  by the political subdivision or district.
Any method used to receive electronic bids  shall  comply  with  article
three of the state technology law, and any rules and regulations promul-
gated  and  guidelines  developed thereunder and, at a minimum, must (a)
document the time and date of receipt of  each  bid  received  electron-
ically;  (b)  authenticate  the  identity  of the sender; (c) ensure the
security of the information transmitted; and (d)  ensure  the  confiden-
tiality  of  the bid until the time and date established for the opening
of bids. The timely submission of an electronic bid in  compliance  with

A. 8561--A                          6

instructions  provided for such submission in the advertisement for bids
and/or the specifications shall be the  responsibility  solely  of  each
bidder or prospective bidder. No political subdivision or district ther-
ein  shall  incur  any  liability from delays of or interruptions in the
receiving device designated for the submission and receipt of electronic
bids.
  S 2. Subdivision 1 of section 103 of the  general  municipal  law,  as
amended  by  chapter  413  of  the  laws  of 1991, is amended to read as
follows:
  1. Except as otherwise expressly provided by an act of the legislature
or by a local law adopted prior to  September  first,  nineteen  hundred
fifty-three,  all  contracts for public work involving an expenditure of
more than [twenty] FIFTY thousand dollars  and  all  purchase  contracts
involving  an  expenditure  of  more than [ten] TWENTY thousand dollars,
shall be awarded by the appropriate officer, board or agency of a  poli-
tical  subdivision  or of any district therein including but not limited
to a soil  conservation  district,  to  the  lowest  responsible  bidder
furnishing  the required security after advertisement for sealed bids in
the manner provided by  this  section.    NO  POLITICAL  SUBDIVISION  OR
DISTRICT  MAY  AVOID  THE  REQUIREMENTS  OF THIS SECTION BY ARTIFICIALLY
SPLITTING OR DIVIDING A SINGLE CONTRACT, OR BY ENTERING INTO A SERIES OF
CONTRACTS DURING A FISCAL YEAR FOR THE SAME TYPE OF WORK OR THE SAME  OR
SIMILAR  COMMODITIES.  In  any  case  where a responsible bidder's gross
price is reducible by an allowance for  the  value  of  used  machinery,
equipment,  apparatus  or  tools to be traded in by a political subdivi-
sion, the gross price shall be reduced by the amount of such  allowance,
for  the  purpose of determining the low bid. In cases where two or more
responsible bidders furnishing the required  security  submit  identical
bids  as  to price, such officer, board or agency may award the contract
to any of such bidders. Such officer, board or agency may, in  his,  HER
or  its  discretion, reject all bids and readvertise for new bids in the
manner provided by this section.
  S 3. Subdivision 5 of section 103 of the  general  municipal  law,  as
amended  by  chapter  413  of  the  laws  of 1991, is amended to read as
follows:
  5. Upon the adoption of a resolution by a  vote  of  at  least  three-
fifths  of all the members of the governing body of a political subdivi-
sion or district therein stating that,  for  reasons  of  efficiency  or
economy,  there  is  need  for standardization, purchase contracts for a
particular type or kind of equipment, material or supplies [of more than
ten thousand dollars] IN EXCESS OF  THE  MONETARY  THRESHOLD  FIXED  FOR
PURCHASE  CONTRACTS  IN  THIS  SECTION may be awarded by the appropriate
officer, board or agency of  such  political  subdivision  or  any  such
district  therein,  to  the  lowest  responsible  bidder  furnishing the
required security after advertisement for sealed bids  therefor  in  the
manner  provided  in  this section. Such resolution shall contain a full
explanation of the reasons for its adoption.
  S 4. Section 103 of the general municipal law is amended by  adding  a
new subdivision 13 to read as follows:
  13. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION,
PURCHASE CONTRACTS INVOLVING AN EXPENDITURE NOT IN EXCESS OF TWENTY-FIVE
THOUSAND  DOLLARS  MAY  BE  AWARDED BY THE APPROPRIATE OFFICER, BOARD OR
AGENCY  OF  A  POLITICAL  SUBDIVISION   OR   DISTRICT   THEREIN   TO   A
MINORITY-OWNED OR WOMEN-OWNED BUSINESS ENTERPRISE, CERTIFIED PURSUANT TO
SECTION THREE HUNDRED FOURTEEN OF THE EXECUTIVE LAW, WITHOUT ADVERTISING
FOR COMPETITIVE BIDS.

A. 8561--A                          7

  S  5.  Section 104 of the general municipal law, as amended by chapter
137 of the laws of 2008, is amended to read as follows:
  S  104.  Purchase  through office of general services; CERTAIN FEDERAL
CONTRACTS. 1.   Notwithstanding the provisions of  section  one  hundred
three of this article or of any other general, special or local law, any
officer, board or agency of a political subdivision, of a district ther-
ein, of a fire company or of a voluntary ambulance service authorized to
make  purchases  of materials, equipment, food products, or supplies, or
services available pursuant to sections one hundred  sixty-one  and  one
hundred  sixty-seven  of the state finance law, may make such purchases,
except of printed material,  through  the  office  of  general  services
subject  to  such rules as may be established from time to time pursuant
to sections one hundred sixty-three and one hundred sixty-seven  of  the
state finance law [or through the general services administration pursu-
ant to section 1555 of the federal acquisition streamlining act of 1994,
P.L. 103-355]; provided that any such purchase shall exceed five hundred
dollars  and  that  the political subdivision, district, fire company or
voluntary ambulance service for which such officer, board or agency acts
shall accept sole responsibility for any payment  due  the  vendor.  All
purchases  shall  be  subject  to  audit and inspection by the political
subdivision, district, fire company or voluntary ambulance  service  for
which made. No officer, board or agency of a political subdivision, or a
district  therein, of a fire company or of a voluntary ambulance service
shall make any purchase through such office when bids have been received
for such purchase by such officer, board or agency, unless such purchase
may be made upon the same terms,  conditions  and  specifications  at  a
lower price through such office. Two or more fire companies or voluntary
ambulance  services  may  join  in  making  purchases  pursuant  to this
section, and for the purposes of  this  section  such  groups  shall  be
deemed "fire companies or voluntary ambulance services."
  2. NOTWITHSTANDING THE PROVISIONS OF SECTION ONE HUNDRED THREE OF THIS
ARTICLE  OR  OF  ANY  OTHER  GENERAL, SPECIAL OR LOCAL LAW, ANY OFFICER,
BOARD OR AGENCY OF A POLITICAL SUBDIVISION, OR OF  A  DISTRICT  THEREIN,
MAY  MAKE  PURCHASES  FROM FEDERAL GENERAL SERVICE ADMINISTRATION SUPPLY
SCHEDULES PURSUANT TO SECTION 211 OF THE  FEDERAL  E-GOVERNMENT  ACT  OF
2002, P.L. 107-347, AND PURSUANT TO SECTION 1122 OF THE NATIONAL DEFENSE
AUTHORIZATION ACT FOR FISCAL YEAR 1994, P.L. 103-160, IN ACCORDANCE WITH
PROCEDURES ESTABLISHED PURSUANT THERETO.  PRIOR TO MAKING SUCH PURCHASES
THE  OFFICER, BOARD OR AGENCY SHALL CONSIDER WHETHER SUCH PURCHASES WILL
RESULT IN COST SAVINGS AFTER ALL FACTORS, INCLUDING CHARGES FOR SERVICE,
MATERIAL, AND DELIVERY, HAVE BEEN CONSIDERED.
  S 6. Paragraph b of subdivision 2 of  section  104-b  of  the  general
municipal  law,  as added by chapter 413 of the laws of 1991, is amended
to read as follows:
  b. provide that, except for procurements made  pursuant  to  [subdivi-
sion]  SUBDIVISIONS  three  AND THIRTEEN of section one hundred three or
section one hundred four of this article, section [one hundred  seventy-
five-b]  ONE  HUNDRED  SIXTY-TWO  of  the state finance law, section one
hundred eighty-six of the correction law, or the policies and procedures
adopted  pursuant  to  paragraph  f  of  this  subdivision,  alternative
proposals  or  quotations for goods and services shall be secured by use
of written requests for proposals, written quotations, verbal quotations
or any other method of procurement which furthers the purposes  of  this
section;
  S  7.  Subdivision  2 of section 314 of the executive law, as added by
chapter 261 of the laws of 1988, is amended to read as follows:

A. 8561--A                          8

  2. For the purposes of this article, the office shall  be  responsible
for  verifying  businesses  as  being owned, operated, and controlled by
minority group members or women and for certifying such  verified  busi-
nesses.  The  director shall prepare a directory of certified businesses
for  use  by  contracting agencies, POLITICAL SUBDIVISIONS AND DISTRICTS
THEREIN AND PARTIES DOING BUSINESS, OR PROPOSING  TO  DO  BUSINESS  WITH
POLITICAL SUBDIVISIONS OR DISTRICTS THEREIN, and contractors in carrying
out  the  provisions  of  this  article. The director shall periodically
update the directory.
  S 8. This act shall take effect immediately and  shall  apply  to  any
contract let or awarded on or after such date; provided, however, that:
  1.  the  amendments  to  subdivision  1  of section 103 of the general
municipal law made by section one of this act shall not affect the expi-
ration and reversion of such subdivision as provided in 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 two of this act shall take
effect; and
  2. the amendment to subdivision 2 of section 314 of the executive  law
made  by  section  seven  of this act shall not affect the expiration of
such section and shall expire and be deemed repealed therewith.

                                 PART D

  Section 1. Paragraph d of section 10.10 of the local finance  law,  as
added by chapter 341 of the laws of 2007, is amended to read as follows:
  d.  beginning  with  the  fiscal year during which the municipality or
school district is authorized to incur debt to finance the  deficit,  to
and  including  the  last fiscal year during which such debt or any debt
incurred to refund such debt is outstanding, the chief executive officer
or other individual or individuals responsible for  the  preparation  of
the  tentative budget, or in the case of a town, the preliminary budget,
shall submit the tentative or preliminary budget for the next succeeding
fiscal year to the state comptroller  and,  in  the  case  of  a  school
district,  also  to  the commissioner of education, no later than thirty
days before the date scheduled for the governing  board's  vote  on  the
adoption of the final budget or the last date on which the budget may be
finally  adopted, whichever is sooner. The state comptroller and, in the
case of a school district, the commissioner of education, shall  examine
such proposed budget and make such recommendations as deemed appropriate
thereon  to the municipality or school district prior to the adoption of
the budget, but no later than ten days before the date scheduled for the
governing board's vote on the adoption of the final budget or  the  last
date  on  which  the  budget  must be adopted, whichever is sooner. Such
recommendations shall be made after examination into  the  estimates  of
revenues  and  expenditures of such municipality or school district. The
governing board of the municipality or school district,  no  later  than
five  days  prior  to  the adoption of the budget, shall review any such
recommendations and may make adjustments to its proposed budget consist-
ent with any recommendations made by the state comptroller and,  in  the
case  of  a  school  district, by the commissioner of education[, within
fifteen days after receipt of any such recommendations]. Any recommenda-
tions that the board rejects shall be explained in writing to the  state
comptroller and, in the case of recommendations made by the commissioner
of  education,  to the commissioner. The action or inaction of the state
comptroller or the commissioner of education under  this  section  shall
not be construed to affect the legal validity of any budget of the muni-

A. 8561--A                          9

cipality  or  school  district nor to affect the powers or duties of the
municipality or school district with respect to the local  budget  proc-
ess, provided, however, that the municipality or school district may not
issue  bonds  for  any object or purpose unless and until adjustments to
its proposed budget consistent with  any  recommendations  made  by  the
state  comptroller and, in the case of a school district, by the commis-
sioner of education, are made, or  any  such  recommendations  that  are
rejected have been explained in writing to the state comptroller and, in
the case of school districts, the commissioner of education.
  S 2. This act shall take effect immediately.
  S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion,  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 thereof, but shall be confined in
its operation to the clause, sentence, paragraph,  subdivision,  section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the  legislature  that  this  act  would  have been enacted even if such
invalid provisions had not been included herein.
  S 3. This act shall take effect immediately  provided,  however,  that
the applicable effective dates of Parts A through D of this act shall be
as specifically set forth in the last section of such Parts.

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

                                 8561--B

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              May 28, 2009
                               ___________

Introduced  by  M.  of A. HOYT, JAFFEE -- (at request of the State Comp-
  troller) -- read once and referred to the Committee on  Local  Govern-
  ments  --  reported and referred to the Committee on Ways and Means --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee -- recommitted to the Committee on Local
  Governments in accordance with Assembly Rule 3, sec. 2 -- reported and
  referred  to  the Committee on Ways and Means -- committee discharged,
  bill amended, ordered reprinted as amended  and  recommitted  to  said
  committee

AN  ACT to amend the general municipal law, in relation to audits by the
  state comptroller of certain organizations controlled by local govern-
  ment entities (Part  A);  to  amend  the  general  municipal  law,  in
  relation  to acquisition and use of credit cards by local governments;
  and to amend the local finance law, in relation to credit card  agree-
  ments  by  municipalities  and school districts (Part B); to amend the
  general municipal law and the executive law, in relation  to  procure-
  ments  by  local  governments (Part C); and to amend the local finance
  law, in relation to making technical  amendments  to  the  time  frame
  within  which  a  governing  board of certain municipalities or school
  districts must act with respect to  recommendations  to  the  proposed
  budget (Part D)

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

  Section 1. This act enacts into law major  components  of  legislation
which  relate to enhanced accountability and transparency by the mandate
relief for local governments. Each component is wholly contained  within
a  Part  identified  as  Parts  A through D. The effective date for each
particular provision contained within such Part is set forth in the last
section of such Part. Any provision in any section  contained  within  a
Part, including the effective date of the Part, which makes reference to
a  section  "of  this act", when used in connection with that particular

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10318-04-0
              

A. 8561--B                          2

component, shall be deemed  to  mean  and  refer  to  the  corresponding
section of the Part in which it is found. Section three of this act sets
forth the general effective date of this act.

                                 PART A

  Section  1.  Section  34  of  the general municipal law, as amended by
chapter 233 of the laws of 2006, is amended to read as follows:
  S 34. Powers and duties of examiners.  1.  The  comptroller  and  each
examiner  of  municipal  affairs  shall  have  power to examine into the
financial affairs of every such municipal corporation, industrial devel-
opment agency, district, [fire company as defined in section two hundred
four-a of this chapter,] agency and activity [and], ANY FIRE COMPANY  AS
DEFINED  IN  SECTION  TWO  HUNDRED FOUR-A OF THIS CHAPTER, AND ANY OTHER
ORGANIZATION, EXCEPT A PUBLIC CORPORATION, THAT IS DIRECTLY OR INDIRECT-
LY CONTROLLED BY ONE OR MORE OF ANY SUCH MUNICIPAL CORPORATIONS,  INDUS-
TRIAL DEVELOPMENT AGENCIES, DISTRICTS OR AGENCIES. AN ORGANIZATION SHALL
BE  DEEMED  UNDER  THE  CONTROL  OF  ONE OR MORE MUNICIPAL CORPORATIONS,
INDUSTRIAL DEVELOPMENT AGENCIES, DISTRICTS OR AGENCIES WHEN, AMONG OTHER
CIRCUMSTANCES, THE LAW  OR  DOCUMENTS  ESTABLISHING  THE  ORGANIZATION'S
INTERNAL GOVERNANCE PROVIDE FOR ONE OR MORE OFFICERS OR EMPLOYEES OF ANY
SUCH  MUNICIPAL  CORPORATION, INDUSTRIAL DEVELOPMENT AGENCY, DISTRICT OR
AGENCY, ACTING IN THEIR OFFICIAL CAPACITIES, TO: (A) SELECT  A  MAJORITY
OF  A  QUORUM  OF  THE  ORGANIZATION'S HIGHEST POLICY-MAKING BODY OR THE
ORGANIZATION'S CHIEF EXECUTIVE OFFICER; (B) CONSTITUTE A MAJORITY OF THE
VOTING STRENGTH THAT SELECTS EITHER A MAJORITY OF A QUORUM OF THE ORGAN-
IZATION'S HIGHEST POLICY-MAKING BODY OR THE ORGANIZATION'S CHIEF  EXECU-
TIVE  OFFICER;  OR  (C)  SERVE EX OFFICIO AS EITHER: (I) A MAJORITY OF A
QUORUM OF THE ORGANIZATION'S HIGHEST POLICY-MAKING BODY; (II) THE ORGAN-
IZATION'S CHIEF EXECUTIVE OFFICER; OR (III) A PARTNER IN  THE  ORGANIZA-
TION.  AN ORGANIZATION UNDER THE CONTROL OF ONE OR MORE MUNICIPAL CORPO-
RATIONS, INDUSTRIAL DEVELOPMENT AGENCIES, DISTRICTS  OR  AGENCIES  SHALL
ALSO INCLUDE ANY OTHER ORGANIZATION THAT IS CONTROLLED BY SUCH ORGANIZA-
TION.
  2. IN CONNECTION WITH ANY EXAMINATION AUTHORIZED BY SUBDIVISION ONE OF
THIS  SECTION,  THE  COMPTROLLER  AND EACH EXAMINER OF MUNICIPAL AFFAIRS
SHALL HAVE POWER to administer an oath to any person whose testimony may
be required, and to compel the appearance and attendance of such  person
for  the  purpose  of  any  such  examination and investigation, and the
production of books and papers. In the case of a municipal  corporation,
industrial  development agency, or school district, no such person shall
be compelled to appear or be examined elsewhere than within such munici-
pal corporation, industrial development agency, or school  district.  In
the  case  of  any district other than a school district, no such person
may be compelled to appear or be examined elsewhere than within the town
or one of the towns  in  which  such  district  or  portion  thereof  is
located. In the case of an urban renewal agency, no such person shall be
compelled  to  appear  or  be examined outside the municipal corporation
wherein such agency is established. In the case of a  fire  company,  no
such person shall be compelled to appear or be examined outside the area
served  by the company. In the case of an activity, no such person shall
be compelled to appear outside the area served by the activity.  IN  THE
CASE  OF  AN  ORGANIZATION  UNDER  THE  CONTROL OF ONE OR MORE MUNICIPAL
CORPORATIONS, INDUSTRIAL DEVELOPMENT AGENCIES, DISTRICTS OR AGENCIES, NO
SUCH PERSON SHALL BE COMPELLED TO APPEAR OR TO BE EXAMINED  OUTSIDE  THE
COUNTY IN WHICH THE ORGANIZATION HAS ITS PRINCIPAL HEADQUARTERS. Willful

A. 8561--B                          3

false swearing in such examination shall be perjury and shall be punish-
able as such.
  S 2. This act shall take effect immediately.

                                 PART B

  Section  1.  The  general  municipal  law  is  amended by adding a new
section 5-c to read as follows:
  S 5-C.  ACQUISITION AND USE OF CREDIT CARDS BY LOCAL  GOVERNMENTS.  1.
THE  FOLLOWING  TERMS,  WHEN  USED OR REFERRED TO IN THIS SECTION, SHALL
HAVE THE FOLLOWING MEANING:
  (A) "CREDIT CARD" MEANS ANY  IDENTIFICATION  PLATE,  CARD  OR  SIMILAR
DEVICE  ISSUED  BY  A  PERSON TO A LOCAL GOVERNMENT WHICH MAY BE USED TO
PURCHASE OR LEASE PROPERTY OR ACQUIRE SERVICES  ON  THE  CREDIT  OF  THE
PERSON  ISSUING  THE  CREDIT  CARD  OR  A PERSON WHO HAS AGREED WITH THE
ISSUER TO PAY OBLIGATIONS ARISING FROM THE USE OF A CREDIT  CARD  ISSUED
TO ANOTHER PERSON. FOR PURPOSES OF THIS SECTION, "CREDIT CARD" SHALL NOT
INCLUDE  A  DEBIT CARD OR SIMILAR DEVICE THE USE OF WHICH AUTHORIZES THE
TRANSFER OR WITHDRAWAL OF ANY FUNDS OF THE LOCAL GOVERNMENT, AND NOTHING
IN THIS SECTION SHALL BE DEEMED TO AUTHORIZE THE USE, BY OR ON BEHALF OF
THE LOCAL GOVERNMENT OF A DEBIT CARD OR SIMILAR DEVICE THE USE OF  WHICH
AUTHORIZES  THE TRANSFER OR WITHDRAWAL OF ANY FUNDS OF THE LOCAL GOVERN-
MENT.
  (B) "CARD ISSUER" MEANS ANY ISSUER OF A CREDIT CARD.
  (C) "FINANCING AGENCY" MEANS ANY AGENCY DEFINED AS SUCH IN SUBDIVISION
EIGHTEEN OF SECTION FOUR HUNDRED ONE OF THE PERSONAL PROPERTY LAW.
  (D) "PERSON" MEANS ANY INDIVIDUAL,  PARTNERSHIP,  CORPORATION  OR  ANY
OTHER LEGAL OR COMMERCIAL ENTITY.
  2. NO CREDIT CARD MAY BE USED BY OR ON BEHALF OF ANY LOCAL GOVERNMENT,
AS  SUCH  TERM  IS  DEFINED  IN  SECTION TEN OF THIS ARTICLE, UNLESS THE
GOVERNING BOARD OF THE LOCAL GOVERNMENT,  BY  LOCAL  LAW,  ORDINANCE  OR
RESOLUTION,  DETERMINES  THAT  IT IS IN THE PUBLIC INTEREST TO AUTHORIZE
SUCH LOCAL GOVERNMENT TO ENTER  INTO  AN  AGREEMENT  WITH  ONE  OR  MORE
FINANCING AGENCIES OR CARD ISSUERS TO PROVIDE FOR THE ISSUANCE OF ONE OR
MORE  CREDIT  CARDS  FOR THE PROCUREMENT OF COMMODITIES AND SERVICES AND
FOR USE BY AUTHORIZED OFFICERS AND EMPLOYEES IN CONNECTION  WITH  TRAVEL
AND  OTHER ACTUAL AND NECESSARY EXPENSES. THE CREDIT CARD OR CARDS SHALL
BE ISSUED IN THE NAME OF THE LOCAL GOVERNMENT AND THE SPECIFIC  OFFICERS
AND  EMPLOYEES, IN THEIR OFFICIAL CAPACITIES, AUTHORIZED PURSUANT TO THE
INTERNAL CREDIT CARD POLICY ADOPTED IN ACCORDANCE WITH SUBDIVISION  FOUR
OF THIS SECTION, TO UTILIZE THE CREDIT CARD OR CARDS ISSUED TO THE LOCAL
GOVERNMENT. ANY SUCH LOCAL LAW, ORDINANCE OR RESOLUTION SHALL INCLUDE AN
INTERNAL CREDIT CARD POLICY, IN ACCORDANCE WITH SUBDIVISION FOUR OF THIS
SECTION,  SETTING  FORTH  REQUIREMENTS  FOR  THE  USE OF CREDIT CARDS ON
BEHALF OF THE LOCAL GOVERNMENT. THE TERMS AND CONDITIONS OF SUCH  AGREE-
MENT  MUST  BE CONSISTENT WITH THIS SECTION AND THE INTERNAL CREDIT CARD
POLICY OF THE LOCAL GOVERNMENT, AND SHALL BE DEEMED TO  INCORPORATE  THE
PROVISIONS OF SUBDIVISION TEN OF THIS SECTION.
  3. THE OFFICERS AND EMPLOYEES OF ANY LOCAL GOVERNMENT THAT HAS ENTERED
INTO  AN  AGREEMENT WITH A FINANCING AGENCY OR CARD ISSUER AS AUTHORIZED
BY THE PROVISIONS OF SUBDIVISION TWO OF  THIS  SECTION  MAY  USE  CREDIT
CARDS  ONLY  IN  ACCORDANCE  WITH THE LOCAL GOVERNMENT'S INTERNAL CREDIT
CARD POLICY FOR THE PROCUREMENT OF COMMODITIES AND SERVICES FOR PROPERLY
AUTHORIZED MUNICIPAL PURPOSES, AND FOR PROPERLY  AUTHORIZED  TRAVEL  AND
OTHER  ACTUAL AND NECESSARY EXPENSES. ANY SUCH OFFICER OR EMPLOYEE USING
SUCH CREDIT CARD OR CARDS SHALL  BE  PERSONALLY  LIABLE  FOR  ALL  COSTS

A. 8561--B                          4

INCURRED  BY  THE  LOCAL  GOVERNMENT  IN CONNECTION WITH THE IMPROPER OR
UNAUTHORIZED USE BY THE OFFICER OR EMPLOYEE OF THE CREDIT CARD OR CARDS.
  4.  THE  INTERNAL CREDIT CARD POLICY ADOPTED BY THE GOVERNING BOARD OF
ANY LOCAL GOVERNMENT  THAT  HAS  DETERMINED  TO  USE  CREDIT  CARDS  FOR
PROCUREMENT  OF  COMMODITIES,  SERVICES  OR  TRAVEL AND OTHER ACTUAL AND
NECESSARY EXPENSES SHALL CONTAIN PROVISIONS PERTAINING TO:
  (A) THE PARTICULAR OFFICERS  AND  EMPLOYEES,  OTHERWISE  EMPOWERED  TO
PROCURE COMMODITIES OR SERVICES ON BEHALF OF THE LOCAL GOVERNMENT, OR TO
INCUR TRAVEL AND OTHER ACTUAL AND NECESSARY EXPENSES, WHO ARE AUTHORIZED
TO UTILIZE THE CREDIT CARD OR CARDS ISSUED TO THE LOCAL GOVERNMENT;
  (B)  AN AUTHORIZED CREDIT LIMIT FOR EACH CARD AND IN THE AGGREGATE FOR
ALL CARDS ISSUED TO THE LOCAL GOVERNMENT, AND, IF  THE  GOVERNING  BOARD
CHOOSES, AN AUTHORIZED CREDIT LIMIT PER TRANSACTION;
  (C)  LIMITATIONS,  IF ANY, ON THE TYPES OF COMMODITIES OR SERVICES, OR
TRAVEL AND OTHER ACTUAL AND NECESSARY EXPENSES,  FOR  WHICH  THE  CREDIT
CARD  OR CARDS MAY BE USED, AND THE CIRCUMSTANCES UNDER WHICH THE CREDIT
CARD OR CARDS MAY BE USED FOR SUCH PURPOSES;
  (D) THE PERIODIC MONITORING BY THE APPROPRIATE OFFICIALS OF THE  LOCAL
GOVERNMENT OF THE USE OF THE CREDIT CARD OR CARDS;
  (E)  THE  DOCUMENTATION  REQUIRED  OF AN OFFICER OR EMPLOYEE USING THE
CREDIT CARD FOR COMMODITIES OR SERVICES OR FOR TRAVEL AND  OTHER  ACTUAL
AND  NECESSARY EXPENSES, IN ORDER TO FACILITATE THE APPROPRIATE AUDIT OF
THE RESULTING CLAIMS SUBMITTED BY A FINANCING AGENCY OR CARD ISSUER, AND
THE TIMEFRAME IN WHICH SUCH DOCUMENTATION IS REQUIRED TO BE SUBMITTED BY
THE OFFICER OR EMPLOYEE AFTER THEIR USE OF A CREDIT CARD;
  (F) THE MEANS OF RECOUPING FROM THE RESPONSIBLE  OFFICER  OR  EMPLOYEE
COSTS INCURRED WITH RESPECT TO ANY ILLEGAL OR UNAUTHORIZED EXPENDITURES,
OR IMPROPER USAGE OF THE CREDIT CARD OR CARDS; AND
  (G)  ANY OTHER TERMS OR CONDITIONS DEEMED BY THE GOVERNING BOARD TO BE
NECESSARY TO EFFECTUATE THE PROPER USE OF A CREDIT CARD OR CARDS.
  5. EXCEPT AS EXPRESSLY  PROVIDED  IN  THIS  SECTION,  PROCUREMENTS  OF
COMMODITIES  AND  SERVICES  FOR  WHICH  A  CREDIT  CARD IS USED SHALL BE
SUBJECT TO ALL LAWS  OTHERWISE  APPLICABLE  TO  MUNICIPAL  PROCUREMENTS,
INCLUDING,  BUT  NOT  LIMITED,  TO  SECTIONS  ONE  HUNDRED THREE AND ONE
HUNDRED FOUR-B OF THIS CHAPTER. TRAVEL AND OTHER  ACTUAL  AND  NECESSARY
EXPENSES FOR WHICH A CREDIT CARD IS USED SHALL BE INCURRED IN ACCORDANCE
WITH AND SHALL BE SUBJECT TO ALL LAWS OTHERWISE APPLICABLE TO THE INCUR-
RING OF SUCH MUNICIPAL CHARGES BY OFFICERS AND EMPLOYEES.
  6.  NO  PAYMENT  TO A FINANCING AGENCY OR CARD ISSUER FOR COMMODITIES,
SERVICES OR TRAVEL OR OTHER ACTUAL AND NECESSARY EXPENSES  FOR  WHICH  A
CREDIT  CARD  WAS  USED  MAY  BE  MADE  UNLESS, IN ADDITION TO ALL OTHER
REQUIREMENTS FOR THE AUDIT AND APPROVAL  OF  CLAIMS,  THE  DOCUMENTATION
REQUIRED  BY  THE LOCAL GOVERNMENT'S INTERNAL CREDIT CARD POLICY ADOPTED
IN ACCORDANCE WITH SUBDIVISION FOUR OF THIS SECTION IS SUBMITTED TO  THE
AUDITING  BODY  OR OFFICIAL OF THE LOCAL GOVERNMENT AND A CLAIM FROM THE
FINANCING AGENCY OR CARD ISSUER IS AUDITED AND  APPROVED  IN  ACCORDANCE
WITH  LAWS  GENERALLY  APPLICABLE  TO  THE  LOCAL GOVERNMENT'S AUDIT AND
APPROVAL OF CLAIMS FUNCTION.
  7. IF AFTER A CLAIM IS PRESENTED FOR AUDIT, A CREDIT  CARD  CHARGE  IS
DISALLOWED  IN  WHOLE  OR  IN  PART,  THE  LOCAL GOVERNMENT SHALL NOT BE
RESPONSIBLE FOR PAYMENT OF THE DISALLOWED  CHARGE  OR  ANY  INTEREST  OR
PENALTY  WHICH SHALL HAVE ACCRUED AS A RESULT OF SUCH DISALLOWED CHARGE.
ANY AGREEMENT THAT IS ENTERED INTO PURSUANT TO  THIS  SECTION  SHALL  BE
DEEMED  TO INCORPORATE THIS PROVISION. NOTHING CONTAINED HEREIN SHALL BE
CONSTRUED TO LIMIT ANY RIGHT THAT A  FINANCING  AGENCY  OR  CREDIT  CARD

A. 8561--B                          5

ISSUER MAY HAVE UNDER LAW TO RECOVER THE AMOUNT OF ANY DISALLOWED CHARGE
OR INTEREST OR PENALTY THEREON FROM ANY OTHER PERSON OR ENTITY.
  8.  THE  AUDIT  OF  ANY  CLAIM SUBMITTED BY A FINANCING AGENCY OR CARD
ISSUER SHALL BE UNDERTAKEN IN A TIMELY FASHION SO THAT, UPON APPROVAL OF
THE CLAIM, PAYMENT MAY BE MADE PRIOR TO THE IMPOSITION  OF  INTEREST  OR
PENALTY CHARGES.
  9.  CONTRACTS  ENTERED  INTO  PURSUANT  TO  THIS SECTION BETWEEN LOCAL
GOVERNMENTS AND FINANCING AGENCIES OR  CARD  ISSUERS  SHALL  BE  AWARDED
AFTER THE SOLICITATION OF ALTERNATIVE PROPOSALS OR QUOTATIONS IN ACCORD-
ANCE  WITH  THE  LOCAL GOVERNMENT'S WRITTEN INTERNAL POLICIES AND PROCE-
DURES GOVERNING PROCUREMENTS ADOPTED PURSUANT  TO  SECTION  ONE  HUNDRED
FOUR-B  OF  THIS  CHAPTER.  IN THE CASE OF A SCHOOL DISTRICT OR BOARD OF
COOPERATIVE EDUCATIONAL  SERVICES,  SUCH  POLICIES  AND  PROCEDURES  MAY
PROVIDE  FOR  THE  SCHOOL  DISTRICT  OR BOARD OF COOPERATIVE EDUCATIONAL
SERVICES TO ENGAGE THE SERVICES OF A FINANCING  AGENCY  OR  CARD  ISSUER
PURSUANT  TO  A COOPERATIVE PROCUREMENT AGREEMENT FOR SUCH SERVICES WITH
ONE OR MORE LOCAL GOVERNMENTS OF THIS STATE OR OF ANY  OTHER  STATE,  OR
THROUGH AN EXISTING COOPERATIVE PROCUREMENT AGREEMENT ENTERED INTO AMONG
LOCAL  GOVERNMENTS OF THIS STATE OR ANY OTHER STATE FOR SUCH SERVICES IF
SUCH EXISTING CONTRACT  HAS  BEEN  AWARDED  PURSUANT  TO  A  COMPETITIVE
REQUEST  FOR  PROPOSALS PROCESS AND HAS BEEN EXTENDED OR OFFERED FOR USE
BY OTHER LOCAL GOVERNMENTS; PROVIDED, HOWEVER, THAT THE GOVERNING  BOARD
OF  THE  SCHOOL  DISTRICT  OR  BOARD OF COOPERATIVE EDUCATIONAL SERVICES
SHALL FIRST DETERMINE THAT ENGAGING THE SERVICES OF A  FINANCING  AGENCY
OR  CARD  ISSUER PURSUANT TO OR THROUGH A COOPERATIVE PROCUREMENT AGREE-
MENT WILL RESULT IN COST SAVINGS AND THAT ANY SUCH COOPERATIVE  PROCURE-
MENT  AGREEMENT  IS  FULLY  IN  COMPLIANCE  WITH  THE PROVISIONS OF THIS
SECTION.
  10. NO LIABILITY TO A FINANCING AGENCY OR CARD ISSUER UNDER A CONTRACT
ENTERED INTO PURSUANT TO THIS SECTION SHALL CONSTITUTE A  GENERAL  OBLI-
GATION  INDEBTEDNESS  OF THE LOCAL GOVERNMENT, AND NEITHER THE FAITH AND
CREDIT, NOR THE TAXING POWER OF THE LOCAL GOVERNMENT, MAY BE PLEDGED  TO
THE PAYMENT OF ANY AMOUNT DUE OR TO BECOME DUE UNDER SUCH A CONTRACT.
  S 2. Section 20.00 of the local finance law is amended by adding a new
paragraph e to read as follows:
  E.  NOTHING  CONTAINED IN THIS SECTION SHALL BE CONSTRUED TO PREVENT A
MUNICIPALITY, SCHOOL DISTRICT OR DISTRICT CORPORATION FROM ENTERING INTO
AN AGREEMENT WITH ONE OR MORE FINANCING AGENCIES OR CARD ISSUERS FOR THE
ISSUANCE OF A CREDIT CARD OR CARDS IN  THE  NAME  OF  THE  MUNICIPALITY,
SCHOOL  DISTRICT  OR DISTRICT CORPORATION OR FROM USING SUCH CREDIT CARD
OR CARDS FOR THE PROCUREMENT OF COMMODITIES, SERVICES  AND  EXPENSES  IN
ACCORDANCE WITH SECTION FIVE-C OF THE GENERAL MUNICIPAL LAW.
  S 3. This act shall take effect immediately.

                                 PART C

  Section  1. Subdivision 5 of section 103 of the general municipal law,
as amended by chapter 413 of the laws of 1991, is  amended  to  read  as
follows:
  5.  Upon  the  adoption  of  a resolution by a vote of at least three-
fifths of all the members of the governing body of a political  subdivi-
sion  or  district  therein  stating  that, for reasons of efficiency or
economy, there is need for standardization,  purchase  contracts  for  a
particular type or kind of equipment, material or supplies [of more than
ten  thousand  dollars]  IN  EXCESS  OF THE MONETARY THRESHOLD FIXED FOR
PURCHASE CONTRACTS IN THIS SECTION may be  awarded  by  the  appropriate

A. 8561--B                          6

officer,  board  or  agency  of  such  political subdivision or any such
district therein,  to  the  lowest  responsible  bidder  furnishing  the
required  security  after  advertisement for sealed bids therefor in the
manner  provided  in  this section. Such resolution shall contain a full
explanation of the reasons for its adoption.
  S 2. Section 103 of the general municipal law is amended by  adding  a
new subdivision 13 to read as follows:
  13. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION,
PURCHASE CONTRACTS INVOLVING AN EXPENDITURE NOT IN EXCESS OF TWENTY-FIVE
THOUSAND  DOLLARS  MAY  BE  AWARDED BY THE APPROPRIATE OFFICER, BOARD OR
AGENCY  OF  A  POLITICAL  SUBDIVISION   OR   DISTRICT   THEREIN   TO   A
MINORITY-OWNED OR WOMEN-OWNED BUSINESS ENTERPRISE, CERTIFIED PURSUANT TO
SECTION THREE HUNDRED FOURTEEN OF THE EXECUTIVE LAW, WITHOUT ADVERTISING
FOR COMPETITIVE BIDS.
  S  3.  Section 104 of the general municipal law, as amended by chapter
137 of the laws of 2008, is amended to read as follows:
  S 104. Purchase through office of general  services;  CERTAIN  FEDERAL
CONTRACTS.  1.    Notwithstanding  the provisions of section one hundred
three of this article or of any other general, special or local law, any
officer, board or agency of a political subdivision, of a district ther-
ein, of a fire company or of a voluntary ambulance service authorized to
make purchases of materials, equipment, food products, or  supplies,  or
services  available  pursuant  to sections one hundred sixty-one and one
hundred sixty-seven of the state finance law, may make  such  purchases,
except  of  printed  material,  through  the  office of general services
subject to such rules as may be established from time to  time  pursuant
to  sections  one hundred sixty-three and one hundred sixty-seven of the
state finance law [or through the general services administration pursu-
ant to section 1555 of the federal acquisition streamlining act of 1994,
P.L. 103-355]; provided that any such purchase shall exceed five hundred
dollars and that the political subdivision, district,  fire  company  or
voluntary ambulance service for which such officer, board or agency acts
shall  accept  sole  responsibility  for any payment due the vendor. All
purchases shall be subject to audit  and  inspection  by  the  political
subdivision,  district,  fire company or voluntary ambulance service for
which made. No officer, board or agency of a political subdivision, or a
district therein, of a fire company or of a voluntary ambulance  service
shall make any purchase through such office when bids have been received
for such purchase by such officer, board or agency, unless such purchase
may  be  made  upon  the  same terms, conditions and specifications at a
lower price through such office. Two or more fire companies or voluntary
ambulance services  may  join  in  making  purchases  pursuant  to  this
section,  and  for  the  purposes  of  this section such groups shall be
deemed "fire companies or voluntary ambulance services."
  2. NOTWITHSTANDING THE PROVISIONS OF SECTION ONE HUNDRED THREE OF THIS
ARTICLE OR OF ANY OTHER GENERAL, SPECIAL  OR  LOCAL  LAW,  ANY  OFFICER,
BOARD  OR  AGENCY  OF A POLITICAL SUBDIVISION, OR OF A DISTRICT THEREIN,
MAY MAKE PURCHASES FROM FEDERAL GENERAL  SERVICE  ADMINISTRATION  SUPPLY
SCHEDULES  PURSUANT  TO  SECTION  211 OF THE FEDERAL E-GOVERNMENT ACT OF
2002, P.L. 107-347, AND PURSUANT TO SECTION 1122 OF THE NATIONAL DEFENSE
AUTHORIZATION ACT FOR FISCAL YEAR 1994, P.L. 103-160, IN ACCORDANCE WITH
PROCEDURES ESTABLISHED PURSUANT THERETO.  PRIOR TO MAKING SUCH PURCHASES
THE OFFICER, BOARD OR AGENCY SHALL CONSIDER WHETHER SUCH PURCHASES  WILL
RESULT IN COST SAVINGS AFTER ALL FACTORS, INCLUDING CHARGES FOR SERVICE,
MATERIAL, AND DELIVERY, HAVE BEEN CONSIDERED.

A. 8561--B                          7

  S  4.  Paragraph  b  of  subdivision 2 of section 104-b of the general
municipal law, as added by chapter 413 of the laws of 1991,  is  amended
to read as follows:
  b.  provide  that,  except for procurements made pursuant to [subdivi-
sion] SUBDIVISIONS three AND THIRTEEN of section one  hundred  three  or
section  one hundred four of this article, section [one hundred seventy-
five-b] ONE HUNDRED SIXTY-TWO of the  state  finance  law,  section  one
hundred eighty-six of the correction law, or the policies and procedures
adopted  pursuant  to  paragraph  f  of  this  subdivision,  alternative
proposals or quotations for goods and services shall be secured  by  use
of written requests for proposals, written quotations, verbal quotations
or  any  other method of procurement which furthers the purposes of this
section;
  S 5. Subdivision 2 of section 314 of the executive law,  as  added  by
chapter 261 of the laws of 1988, is amended to read as follows:
  2.  For  the purposes of this article, the office shall be responsible
for verifying businesses as being owned,  operated,  and  controlled  by
minority  group  members or women and for certifying such verified busi-
nesses. The director shall prepare a directory of  certified  businesses
for  use  by  contracting agencies, POLITICAL SUBDIVISIONS AND DISTRICTS
THEREIN AND PARTIES DOING BUSINESS, OR PROPOSING  TO  DO  BUSINESS  WITH
POLITICAL SUBDIVISIONS OR DISTRICTS THEREIN, and contractors in carrying
out  the  provisions  of  this  article. The director shall periodically
update the directory.
  S 6. This act shall take effect immediately and  shall  apply  to  any
contract  let  or awarded on or after such date; provided, however, that
the amendment to subdivision 2 of section 314 of the executive law  made
by  section  five  of  this  act shall not affect the expiration of such
section and shall expire and be deemed repealed therewith.

                                 PART D

  Section 1. Paragraph d of section 10.10 of the local finance  law,  as
added by chapter 341 of the laws of 2007, is amended to read as follows:
  d.  beginning  with  the  fiscal year during which the municipality or
school district is authorized to incur debt to finance the  deficit,  to
and  including  the  last fiscal year during which such debt or any debt
incurred to refund such debt is outstanding, the chief executive officer
or other individual or individuals responsible for  the  preparation  of
the  tentative budget, or in the case of a town, the preliminary budget,
shall submit the tentative or preliminary budget for the next succeeding
fiscal year to the state comptroller  and,  in  the  case  of  a  school
district,  also  to  the commissioner of education, no later than thirty
days before the date scheduled for the governing  board's  vote  on  the
adoption of the final budget or the last date on which the budget may be
finally  adopted, whichever is sooner. The state comptroller and, in the
case of a school district, the commissioner of education, shall  examine
such proposed budget and make such recommendations as deemed appropriate
thereon  to the municipality or school district prior to the adoption of
the budget, but no later than ten days before the date scheduled for the
governing board's vote on the adoption of the final budget or  the  last
date  on  which  the  budget  must be adopted, whichever is sooner. Such
recommendations shall be made after examination into  the  estimates  of
revenues  and  expenditures of such municipality or school district. The
governing board of the municipality or school district,  no  later  than
five  days  prior  to  the adoption of the budget, shall review any such

A. 8561--B                          8

recommendations and may make adjustments to its proposed budget consist-
ent with any recommendations made by the state comptroller and,  in  the
case  of  a  school  district, by the commissioner of education[, within
fifteen days after receipt of any such recommendations]. Any recommenda-
tions  that the board rejects shall be explained in writing to the state
comptroller and, in the case of recommendations made by the commissioner
of education, to the commissioner. The action or inaction of  the  state
comptroller  or  the  commissioner of education under this section shall
not be construed to affect the legal validity of any budget of the muni-
cipality or school district nor to affect the powers or  duties  of  the
municipality  or  school district with respect to the local budget proc-
ess, provided, however, that the municipality or school district may not
issue bonds for any object or purpose unless and  until  adjustments  to
its  proposed  budget  consistent  with  any recommendations made by the
state comptroller and, in the case of a school district, by the  commis-
sioner  of  education,  are  made,  or any such recommendations that are
rejected have been explained in writing to the state comptroller and, in
the case of school districts, the commissioner of education.
  S 2. This act shall take effect immediately.
  S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, 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 thereof, but shall  be  confined  in
its  operation  to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would  have  been  enacted  even  if  such
invalid provisions had not been included herein.
  S  3.  This  act shall take effect immediately provided, however, that
the applicable effective dates of Parts A through D of this act shall be
as specifically set forth in the last section of such Parts.