Senate Bill S4600

2009-2010 Legislative Session

Enacts provisions of law relating to enhanced accountability and transparency by and mandate relief for local governments

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Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 15, 2010	reported and committed to rules
Mar 24, 2010	reported and committed to finance
Mar 18, 2010	print number 4600a
Mar 18, 2010	amend (t) and recommit to local government
Jan 06, 2010	referred to local government
Apr 24, 2009	referred to local government

Votes

- Mar 24, 2010 - Local Government Committee Vote
  S4600
  
  Aye
  
  7
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  1
  
  Abstained
  
  0
  - - Local Government Committee Vote: Mar 24, 2010
      
      aye (7)
      
      Bonacic
      
      Johnson
      
      Little
      
      Oppenheimer
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      excused (1)
      
      Morahan
  Jun 15, 2010 - Finance Committee Vote
  S4600
  
  Aye
  
  31
  
  Nay
  
  0
  
  Aye with Reservations
  
  2
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Finance Committee Vote: Jun 15, 2010
      
      aye (31)
      
      Breslin
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Hannon
      
      Johnson
      
      Klein
      
      Krueger
      
      Kruger
      
      LaValle
      
      Larkin
      
      Leibell
      
      Marcellino
      
      Maziarz
      
      Montgomery
      
      Nozzolio
      
      Oppenheimer
      
      Parker
      
      Perkins
      
      Robach
      
      Saland
      
      Seward
      
      Stachowski
      
      Stavisky
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      Volker
      
      aye wr (2)
      
      Padavan
      
      Peralta

Bill Amendments

Original

A (Active)

2009-S4600 - Details

Current Committee:: Senate Rules
Law Section:: General Municipal Law
Laws Affected:: Amd §§34, 103, 104 & 104-b, add §5-c, Gen Muni L; amd §314, Exec L; amd §§20.00 & 10.10, Loc Fin L

2009-S4600 - Summary

Enacts provisions of law relating to enhanced accountability and transparency by and mandate relief for local governments; relates to audits by the state comptroller of certain organizations controlled by local government entities (part A); acquisition and use of credit cards by local governments (part B); procurements by local governments (part C)

2009-S4600 - Sponsor Memo

                                 BILL NUMBER:  S4600

 TITLE OF BILL :

An act to amend the general municipal law, in relation to audits by
the state comptroller of certain organizations controlled by local
government 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
municipalities or school districts must act with respect to
recommendations to the proposed budget (Part D)


 PURPOSE :

Part A would expand the State Comptroller's express audit authority to
include auditing organizations that are controlled by local government
entities.

Part B authorizes municipal use of credit cards for municipal
purchases with mandated safeguards.

Part C increases local government thresholds for bidding and

advertising to $20,000 and public work contracts to $50,000 and raises
local government threshold to $25,000 for purchases from MWBE's.

Part D would correct a technical error in Chapter 341 of the Laws of
2007.

 SUMMARY OF PROVISIONS :

Part A

The Part would amend section 34 of the General Municipal Law to
authorize the State Comptroller to examine into the financial affairs
of local government subsidiary organizations. The term "local
government subsidiary organization" would mean any organization, other
than an entity already subject to audit by the Comptroller, that is
controlled by one or more municipal corporations or other local
government entities subject to audit by the Comptroller pursuant to
the General Municipal Law. The circumstances under which an
organization is considered to be under the control of one or more
municipal corporations or other local government entities would
include, but not be limited to, any situation where municipal or local
government officials select or serve as either a majority of the
organization's highest policy -making body or the organization's chief
executive officer.

Part B

Section 1 of Part B adds a new section 5-c to the General Municipal
Law relating to the acquisition and use of credit cards by local
governments. Establishes no credit card may be used by or on behalf of
any local government unless the governing hoard of the local
government by local law, ordinance or resolution, determines that it
is in the public interest.

Part C

Sections 1 and 1-a of Part C amend subdivision 1 of section 103 of the
General Municipal Law to (i) raise the competitive bidding thresholds
for contracts for public work of local governments from $20,000 to
$50,000 and for purchase contracts of local governments from $10,000
to $20,000, and (ii) clarify the existing rule against artificially
dividing a single contract or entering into a series of contracts to
avoid the competitive bidding requirement.

Section 3 of Part C amends subdivision 5 of section 103 of the General
Municipal Law, relating to standardization, to conform to the new
thresholds established by this part.

Section 4 of Part C adds a new subdivision 13 to section 103 of the
General Municipal Law to authorize political subdivisions to award
purchase contracts not exceeding $25,000 to minority or women-owned
businesses (MWBE's) without advertising for competitive bids.

Section 5 of Part C amends section 104 of the General Municipal Law to
repeal an obsolete reference to section 1555 of the Federal
Acquisition Streamlining Act of 1994, which has been repealed, and to
authorize local governments, as an exception to competitive bidding,
to make purchases under federal procurement programs established by
section 211 of the e-Government Act of 2002, and section 1122 of the
National Defense Authorization Act of 1994.

Section 6 of Part C amends paragraph b of subdivision 2 of section
104-b of the General Municipal Law to exempt purchases from certified
MWBE's pursuant to new subdivision 13 of section 103 from the general
requirement in section 104-b that alternative proposals or quotes be
sought and to correct an obsolete reference to the State Finance Law.

Section 7 Part C amends subdivision 2 of section 314 of the Executive
Law to add political subdivisions and their contractors and potential
contractors to the existing statutory list of users of the New York
State Directory of Certified Minority and Women-Owned Business
Enterprises.

Part D

Section 1 of Part D would amend Finance Law to delete the phrase
"within fifteen days after receipt of any such recommendations".

 JUSTIFICATION :

Part A

In recent years, municipal corporations and other local government
entities have relied on a variety of separate and legally distinct
organizations to perform various functions (e.g. local development
corporations organized under section 1411 of the Not-For-Profit
Corporation Law; a limited liability company organized under the
Limited Liability Company Law; a for-profit corporation apparently
organized under the Business Corporation Law). Under current law, when
a municipal corporation or other local government entity has a
financial or business relationship with another legally distinct
organization, the Comptroller may examine that relationship, but only
as part of an audit of the municipal corporation or other local
government entity. Even in the context of such an audit, there is no
authority for the Comptroller to look beyond the financial or business
relationship, to examine the organizations overall finances and
operations.  Similarly, there is no express authority for the
Comptroller to separately audit the overall finances or operations of
such an organization. This bill would expand the Comptroller's express
audit authority to include audits of such organizations having a
financial or business relationship with a municipal corporation or
other local government entity, but only when the organization is under
the control of one or more municipal corporations or other local
government entities.


This expansion of the Comptroller's audit authority is necessary
promote and increase transparency in municipal and local government
finances and operations because an organization that is under the
control of a municipal corporation or local government entity
functions as an instrumentality of that municipal corporation or local
government entity. Thus, in order to fully understand the financial
condition and operations of a municipal corporation or other local
government entity, it is necessary to examine the finances and
operations of organizations controlled by the municipal corporation or
local government entity. .To avoid creating incentives or
disincentives to the use of any particular type of organization, the
bill would apply to every type of organization that is under the
control of a municipal corporation or other local government entity,
except an organization already subject to audit by the Comptroller.

Part B

In recent years, there has been increased interest among local
governments in using credit cards to procure commodities and services.
This trend reflects what has become a standard operating procedure in
the private sector and at the State government level.  Often, a credit
card is required for transactions such as rental of real and personal
property, ordering commodities through the internet or catalogs, or
enrolling in conferences and other training opportunities. In 1996,
the Legislature amended GML §5 to provide express authority for local
governments to choose to accept credit cards as a means of payment.
Currently, however, there is no statute addressing the use of credit
cards by local governments for procurement and other purposes.  A 1979
Comptroller's opinion concluded that, if a credit card company would
comply with mandatory certification of claims requirements, a
municipality could obtain credit cards for town employees' and
officers' use for among other things, reimbursable travel expenses
(1979 Opns St Comp No. 79-202, p 36). The same opinion re-examined
earlier opinions and concluded that the use of a credit card did not
constitute an illegal financing mechanism within the intent of Local
Finance Law §§ 20.00 and 176.00. This bill ensures that appropriate
safeguards are in place for the proper use of credit cards.

Part B provides that no credit card may be used by or on behalf of a
local government unless the governing board of the local government
has authorized an agreement with one or more card issuers and has
adopted an internal credit card policy.  The governing board of the
local government is required to set forth in its credit card policy
what documentation will be required of an officer or employee using a
credit card to procure commodities or services or for travel and other
actual and necessary expenses in order to facilitate an appropriate
audit. Additionally. the bill requires timely payments so that no
interest becomes payable to the financing agency or credit card
issuer. Since it is intended that payments of claims arising from
credit card transactions are to be made in the same manner as payments
of other claims. the bill expressly precludes the use of debit cards.
Unlike the extension of credit with the use of a credit card. when a
debit card is used.  money is automatically deducted from a specific
account of the card owner. The statutes governing local governments
permit only a few exceptions to the general requirement that no claim
may be paid without first being audited and allowed by the auditing
body or official (see. e.g. Town Law §§ 118, 176; Village Law §5-524;
County Law §369; Education Law §§ 1724, 2524). Permitting local
governments to use debit cards would have the effect of significantly
broadening the purposefully narrow exception created by the
Legislature.

Also, Part B expressly states that all procurements of commodities and
services by credit card are subject to the laws applicable to
municipal procurements. The governing board, purchasing agent or other
officer or body authorized to make procurements must comply with
either the competitive bidding requirements set forth in GML § 103 or,
when competitive bidding is not required by law, the provisions of the
local government's internal procurement policies and procedures
adopted in accordance with GML § 104-b. Officers and employees
incurring costs associated with travel and other actual and necessary
expenses for which a credit card is used would be required to comply
with existing law applicable to such expenditures (see.  e.g., GML
§77-b.  requiring advance approval by the governing board for expenses
incurred in connection with conventions.. conferences and schools).
To ensure that competition is sought among card issuers and financing
agencies, Part C requires the underlying contract between the local
government and the financing agency or credit card issuer to be
awarded after the solicitation of competitive proposals or quotations.

The use of credit cards is no longer novel or experimental. Decades of
use in the private and public sectors have revealed the strengths and
weaknesses of credit card use. This bill establishes a statutory
framework for continuing the use of credit cards by local governments
while providing for sufficient safeguards on the expenditures of
public money.

Part C

Section 103 of the General Municipal Law (GML) sets forth the dollar
amount thresholds that trigger competitive bidding requirements for
local governments. The same thresholds have been in effect since 1991.
Raising the thresholds gives local governments additional purchasing
flexibility and lower administrative expenses. Any risk that raising
the thresholds might result in improper procurements below the
thresholds should be mitigated by audits of local governments and by
local procurement policies and procedures that are required under
section 104-b of the GML. Risks should be further mitigated by
expressly setting forth in statute the rule against artificially
splitting procurements to avoid the dollar thresholds.

Part C raises the local thresholds to $20,000 for purchase contracts
(from $10,000) and to $50,000 for contracts for public work (from
$20,000). The bill also establishes an exception to bidding for
purchase contracts of up to $25,000 awarded to certified MWBE's. This
will provide an incentive to award local contracts to MWBE's. There
has never been a comprehensive grant of authority for local
governments to make discretionary contract awards to MWBEs to promote
the State's effort to foster a positive business climate for these
enterprises. Consistent with the Croson rule before exercising the
authority to make discretionary contract awards to MWBE's, local
governments should have evidence that there is a need to remedy past
discrimination and that the discretionary awards are narrowly
tailored. (In January 2005. a study commissioned by the New York City
Council confirmed that widespread racial and gender disparities
persist in the awarding of government contracts).

Currently, while the Office of General Services COGS) is authorized to
use federal contracts under certain circumstances and to enter into
joint purchasing arrangements with the federal government (under State
Finance Law § 163 10)), there is no exception from bidding
requirements if political subdivisions purchase from federal vendors.
Access to available federal purchase contracts would save localities
money by lowering purchase costs, as well as administrative expenses.
To provide opportunities for savings to localities, the bill
authorizes political subdivisions to purchase through two federal
programs available to local governments (by a "piggyback" on the
federal contract) as an exception to bidding requirements. The two
programs are the federal "e-Government Act of 2002" (including
information technology items, such as data processing equipment and
software) and the National Defense Authorization Act of 1994

(including law enforcement items such as night vision devices, radios
and cameras).

Part D

Part D is a technical amendment to Chapter 341 of the Laws of 2007,
which added section 10.10 to the Local Finance Law. Section 10.10
provides uniform requirements applicable to municipalities and school
districts that are authorized by general or special law to contract
indebtedness to finance the liquidation of operating deficits.
Paragraph d of section 10.10 sets forth a procedure for the submission
of the proposed budget of the municipality or school district to the
State Comptroller (and, in the case of a school district, the
Commissioner of Education) for review and recommendation.  Among other
things, paragraph d provides that "no later than five days prior to
the adoption of the budget," the municipality or school district must
review those recommendations and either make adjustments to the
proposed budget consistent the recommendations or explain in writing
the reasons for the rejection of any recommendation. Later in the same
sentence as the quoted provision, the phrase "within fifteen days
after receipt of any such recommendations" appears, creating a
potential ambiguity as to the proper timeframe for the municipality or
school district to act. It is apparent that the inclusion of this
phrase in paragraph d was inadvertent and likely a carryover from an
earlier version of the bill that was enacted. The phrase "within
fifteen days after the receipt of any such recommendations" is
inconsistent with the budget review timeframe otherwise set forth in
paragraph d of section 10.10 of the Local Finance Law and should be
deleted so that the statute is consistent and clear.

The Comptroller urges passage of this legislation.

2009-S4600 - Bill Text download pdf

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

                                  4600

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 24, 2009
                               ___________

Introduced  by  Sen.  STEWART-COUSINS  -- (at request of the State Comp-
  troller) -- 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, 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

  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:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10318-01-9

S. 4600                             2

  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

  Section 1. The general municipal  law  is  amended  by  adding  a  new
section 5-c to read as follows:

S. 4600                             3

  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)  THE  PARTICULAR  OFFICERS  AND  EMPLOYEES, OTHERWISE EMPOWERED TO
PROCURE COMMODITIES OR SERVICES ON BEHALF OF THE LOCAL GOVERNMENT, OR TO

S. 4600                             4

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.
  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-

S. 4600                             5

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
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-

S. 4600                             6

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.
  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. 4600                             7

  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.
  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:
  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

S. 4600                             8

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-
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

S. 4600                             9

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.

2009-S4600A (ACTIVE) - Details

Current Committee:: Senate Rules
Law Section:: General Municipal Law
Laws Affected:: Amd §§34, 103, 104 & 104-b, add §5-c, Gen Muni L; amd §314, Exec L; amd §§20.00 & 10.10, Loc Fin L

2009-S4600A (ACTIVE) - Summary

2009-S4600A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S4600A         REVISED 03/22/10

 TITLE OF BILL :
An act to amend the general municipal law, in relation to audits by
the state comptroller of certain organizations controlled by local
government 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
agreements by municipalities and school districts (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 municipalities or
school districts must act with respect to recommendations to the
proposed budget (Part D)


 PURPOSE OR GENERAL IDEA OF BILL :
Part A would expand the State Comptroller's express audit authority to
include auditing organizations that are controlled by local government
entities.

Part B authorizes municipal use of credit cards for municipal
purchases with mandated Safeguards.

Part C relates to purchase contracts involving expenditures not in

excess on $25,000 may.be awarded by the appropriate officer, board or
agency of a political subdivision or district, there into a minority
owned or women-owned business enterprise without advertising for
competitive bids.

Part D would correct a technical error in Chapter 341 of the Laws of
2007.

 SUMMARY OF SPECIFIC PROVISIONS :
Part A The Part would amend section 34 of the General Municipal Law to
authorize the State Comptroller to examine into the financial affairs
of local government subsidiary organizations. The term "local
government subsidiary organization" would mean any organization, other
than an entity already subject to audit by the Comptroller, that is
controlled by one or more municipal corporations or other local
government entities subject to audit by the Comptroller pursuant to
the General Municipal Law. The circumstances under which an
organization is considered to be under the control of one or more
municipal corporations or other local government entities would
include, but not be limited to, any situation where municipal or local
government officials select or serve as either a majority of the
organization's highest policy making body or the organization's chief
executive officer.

Part B

Section one of Part B adds a new Section 5-c to the General Municipal
Law relating to the acquisition and use of credit cards by local
governments. Establishes no credit card may be used by or on behalf of
any local government unless the governing board of the local
government by local law, ordinance or resolution, determines that it
is in the public interest. Additionally, it permits school districts
and BOCES to adopt policies and procedures that allow them to act
cooperatively in procuring credit card services by either entering
into a cooperative procurement agreement with local governments within
and outside of this state or through use of an existing cooperative
procurement agreement entered into among local governments within and
outside of this state where the governing board has determined that
engaging credit card services pursuant to or through a cooperative
procurement agreement will result in a cost savings.
Section two of this Part B amends Section 20.00 of the Local Finance
Law to state that nothing in such 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 5-c of the General Municipal
Law.

Part C

Sections 1 of Part C amends subdivision 5 of section 103 of the
General Municipal Law, relating to standardization, to conform to the
new thresholds established by this part.

Section 2 of Part C adds a new subdivision 13 to section 103 of the
General Municipal Law to authorize political subdivisions to award
purchase contracts not exceeding $25,000 to minority or women-owned
businesses (MWBE's) without advertising for competitive bids.

Section 3 of Part C amends section 104 of the General Municipal Law to
repeal an obsolete reference to section 1555 of the Federal
Acquisition Streamlining Act of 1994, which has been repealed, and to
authorize local governments, as an exception to competitive bidding,
to make purchases under federal procurement programs established by
section 211 of the e-Government Act of 2002, and section 1122 of the
National Defense Authorization Act of 1994.

Section 4 of Part C amends paragraph b of subdivision 2 of section
104-b of the General Municipal Law to exempt purchases from certified
MWBEs pursuant to new subdivision 13 of section 103 from the general
requirement in section 104-b that alternative proposals or quotes be
sought and to correct an obsolete reference to the State Finance Law.

Section 5 Part C amends subdivision 2 of section 314 of the Executive
Law to add political subdivisions and their contractors and potential
contractors to the existing statutory list of users of the New York
State Directory of Certified Minority and Women-Owned Business
Enterprises.

Part D

Section 1 of Part D would amend Finance Law to delete the phrase
"within fifteen days after receipt of any such recommendations".

 JUSTIFICATION :
Part A In recent years, municipal corporations and there local
government entities have relied on a variety of separate and legally
distinct organizations to perform various functions (e.g. local
development corporations organized under section 1411 of the
Not-For-Profit Corporation Law; a limited liability company organized
under the Limited Liability Company Law; a for-profit corporation
apparently organized under the Business Corporation Law). Under
current law, when a municipal corporation or other local government
entity has a financial or business relationship with another legally
distinct organization, the Comptroller may examine that· relationship,
but only as part of an audit of the municipal corporation or other
local government entity. Even in the context of such an audit, there
is no authority for the Comptroller to look beyond the financial or
business relationship, to examine the organizations overall finances
and operations. Similarly, there is no express authority for the
Comptroller to separately audit the overall finances or operations of
such an organization. ~his bill would expand the Comptroller's express
audit authority to include audits of such organizations having a
financial or business relationship with a municipal corporation or
other local government entity, but only when the organization is under
the control of one or more municipal corporations or other local
government entities. This expansion of the Comptroller's audit
authority is necessary promote and increase transparency in municipal
and local government finances and operations because an organization
that is under the control of a municipal corporation or local
government entity functions as an instrumentality of that municipal
corporation or local government entity. Thus, in order to fully
understand the financial condition and operations of a municipal
corporation or other local government entity, it is necessary to
examine the finances and operation operations of organizations
controlled by the municipal corporation or local government entity. To
avoid creating incentives or disincentives to the use of any
particular type of organization that is. under the control of a
municipal corporation or other local government entity, except an
organization already subject to audit by the Comptroller.")

Part B

In recent years, there has been increased interest among local
governments in using credit cards to procure commodities and services.
This trend reflects what has become a standard operating procedure in
the private sector and at the State government level.  Often, it
credit card is required for transactions such as rental of real and
personal property, ordering commodities through the internet or
catalogs, or enrolling in conferences and other training
opportunities. In 1996, the Legislature amended GML §5 to provide
express authority for local governments to choose to accept credit
cards as a means of payment. Currently, however, there is no statute
addressing the use of credit cards by local governments for
procurement and other purposes. A 1979 Comptroller's opinion concluded
that, if a credit card company would comply with mandatory
certification of claims requirements, a municipality could obtain
credit cards for town employees' and officers' use for among' other
things, reimbursable travel expenses (1979 Opns St Comp No.  79-202, p
36). The same opinion re-examined earlier opinions and concluded that
the use of a credit card did not constitute an illegal financing
mechanism within the intent of Local Finance Law §§ 20.00 and 176.00.
This bill ensures that appropriate safeguards are in place for the
proper use of credit cards.

Part B provides that no credit card may be used by or on behalf of a
local government unless the governing board of the local government
has authorized an agreement with one or more card issuers and has
adopted an internal credit card policy. The governing board of the
local government is required to set forth in its credit card policy
what documentation will be required of an officer or employee using a,
credit card to procure commodities or services or for travel and other
actual and necessary expenses in order to facilitate an appropriate
audit. Additionally the bill requires timely payments so that no
interest becomes payable to the financing agency or credit card
issuer. Since it is intended that payments of claims arising from
credit card transaction are to be made in the same manner as payments
of other claims. The bill expressly precludes the use of debit cards.
Unlike the extension of credit with the use of a credit card, when a
debit card is used. Money is automatically deducted from a specific
account of the card owner. The statutes governing local governments
permit only a few exceptions to the general requirement that no claim
may be paid without first being audited and allowed by the auditing
body or official (see e.g. Town Law..  118,176; Village Law .5-524;
County Law .369; Education Law §§ 1724,2524). permitting local
governments to use debit cards would have, the effect of significantly
broadening the purposefully narrow exception created by the
Legislature.


Also, Part B expressly states that all procurements of commodities and
services by credit card are subject to the laws applicable to
municipal procurements. The governing board, purchasing agent or other
officer or body authorized to make procurements must comply with
either the competitive bidding requirements set forth in GML § 103 or,
when competitive bidding is not required by law, the provisions of the
local government's internal procurement policies and procedures
adopted in accordance with GML § 104-b. Officers and employees
incurring costs associated with travel and other actual and necessary
expenses for which a credit card is used would be required to comply
with existing law applicable to such expenditures (see.  e.g., GML
§77-b. requiring advance approval by the governing board for expenses
incurred in connection with conventions conferences and schools) .To
ensure that competition is sought among card issuers and financing
agencies, Part C requires the underlying contract between the local
government and the financing agency or credit card issuer to be
awarded after the solicitation of competitive proposals or quotations.

The use of credit cards is no longer novel or experimental. Decades of
use in the private and public sectors have revealed the strengths and
weaknesses of credit card use. This bill establishes a statutory
framework for continuing the use of credit cards by local governments
while providing for sufficient safeguards on the expenditures of
public money.

(Part C - there.is no exception from bidding requirements if political
subdivisions purchase from federal vendors. Access to available
federal purchase contracts would save localities money by lowering
purchase costs, as well as administrative expenses. To provide
opportunities for savings to localities, the bill authorizes political
subdivisions to purchase through two federal programs available to
local governments (by a "piggyback" on the federal contract) as an
exception to bidding requirements. The two programs are the federal
"e-Government Act of 2002" (including information technology items,
such as data processing equipment and software) and the National
Defense Authorization Act of 1994 (including law enforcement items
such as night vision devices,radios and cameras).

Part D is a technical amendment to Chapter 341 of the Laws of 2007
which added section 10.10 to the Local Finance Law. Section 10.10
provides uniform requirements applicable to municipalities and school
districts that are authorized by general or special law to contract
indebtedness to finance the liquidation of operating deficits.
Paragraph d of section 10.10 sets forth a procedure for the submission
of the proposed budget of the municipality or school district to the
State Comptroller (and, in the case of a school district, the
Commissioner of Education) for review and recommendation. Among other
things, paragraph d provides that "no later than five days prior to
the adoption of the budget" the municipality or school district must
review those recommendations and either make adjustments to the
proposed budget consistent the recommendations or explain in writing
the reasons for the rejection of any recommendation. Later in the same
sentence as the quoted provision, the phrase "within fifteen days
after receipt of any such recommendations" appears, creating a
potential ambiguity as to the proper timeframe for the municipality or
school district to act. It is apparent that the inclusion of this
phrase in paragraph d was inadvertent and likely a carryover from an
earlier version of the bill that was enacted. The phrase "within
fifteen" days after the receipt of any such recommendations" is
inconsistent with the budget review timeframe otherwise set forth in
paragraph d of section 10.10 of the Local Finance Law and should be
deleted so that the statute is consistent and clear.

The Comptroller urges passage of this legislation.

 EFFECTIVE DATE :
This act shall take effect immediately provided, however, that the
applicable effective dates of Parts A through D of this act shall be
specifically set forth in the last section of such parts.

2009-S4600A (ACTIVE) - Bill Text download pdf

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

                                 4600--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 24, 2009
                               ___________

Introduced  by  Sen.  STEWART-COUSINS  -- (at request of the State Comp-
  troller) -- read twice and ordered printed, and  when  printed  to  be
  committed  to  the Committee on Local Government -- recommitted to the
  Committee on Local Government in accordance with Senate Rule 6, sec. 8
  -- 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
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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10318-05-0

S. 4600--A                          2

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

S. 4600--A                          3

                                 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
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

S. 4600--A                          4

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
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

S. 4600--A                          5

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
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

S. 4600--A                          6

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.
  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:

S. 4600--A                          7

  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
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

S. 4600--A                          8

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.

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Senate Bill S4600

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Archive: Last Bill Status - In Senate Committee Rules Committee

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Mar 24, 2010 - Local Government Committee Vote

Local Government Committee Vote: Mar 24, 2010

Jun 15, 2010 - Finance Committee Vote

Finance Committee Vote: Jun 15, 2010

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2009-S4600 - Details

2009-S4600 - Summary

2009-S4600 - Sponsor Memo

2009-S4600 - Bill Text download pdf

2009-S4600A (ACTIVE) - Details

2009-S4600A (ACTIVE) - Summary

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Sponsored By

Andrea Stewart-Cousins

Archive: Last Bill Status - In Senate Committee Rules Committee

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2009-S4600 - Details

2009-S4600 - Summary

2009-S4600 - Sponsor Memo

2009-S4600 - Bill Text download pdf

2009-S4600A (ACTIVE) - Details

2009-S4600A (ACTIVE) - Summary

2009-S4600A (ACTIVE) - Sponsor Memo

2009-S4600A (ACTIVE) - Bill Text download pdf

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