Senate Bill S4734

                                 BILL NUMBER:  S4734

 TITLE OF BILL :

An act relating to the procurement process of homeland security
related goods and services and providing for the repeal of such
provisions upon expiration thereof


 PURPOSE :

This bill would expedite the procurement process for homeland security
goods and services by, exempting from the State Comptroller's
pre-audit process, homeland security purchases made by state and local
units of government that are paid for or reimbursed by federal funds
awarded by the U.S. Department of Homeland Security.

 SUMMARY OF SPECIFIC PROVISIONS :

This bill would amend the unconsolidated laws to exempt Homeland
Security purchases, made by the state and local governments, from the
State Comptroller's pre-audit process, when such purchases are paid
for, or are reimbursed by, federal funds awarded by the U.S.
Department of Homeland Security.

In order to qualify for this exemption, such purchases must be made,
              

from the approved expenditure list as outlined in the federal grant
guidance, and be made subject to the approval of the state
administrative agency administering the federal homeland security
funds.

State or local units of government making homeland security purchases
must submit for the procurement record a statement of justification
that articulates the form, function and utility of the contract
selected, and an indication as to why such contract is a best value
for the state.

All such procurement records are subject to both state and federal
audit. Homeland security procurement contracts may be exempt from
advertising in the procurement opportunities newsletter providing that
homeland security procurement contract solicitations be conspicuously
advertised on either the requisite state agency website or the office
of general services website.

 JUSTIFICATION :

A Task Force assembled by the U.S. Department of Homeland Security to
analyze the federal funding process has issued a variety of
recommendations on what can be done to improve the flow of homeland
security funds and to expedite the purchase of homeland security goods
and services.

One such recommendation is to alter state and local procurement
procedures so that federal homeland security funds can be used in a
more timely fashion.

The State Comptroller's pre-audit of homeland security purchases made
with federal funds only serves to slow the procurement process as
approval often takes several months.

Federal homeland security funds are already subject to substantial
pre-purchase screening, internal controls and regular reporting
requirements to the federal government. In addition, all funds are
subject to traditional post purchase audit by the State Comptroller,
the U.S. Department of Homeland Security and the Government
Accountability Office.
This bill seeks to remove an administrative obstacle and empower state
and local homeland security officials to quickly purchase the
equipment, goods and services needed to prevent, prepare for and
respond to acts of terrorism or disasters.

 PRIOR LEGISLATIVE HISTORY :

2008 - S.3639 - Referred to the Standing Committee on Veterans,
Homeland Security and Military Affairs.

 FISCAL IMPLICATIONS :

None Noted.

 EFFECTIVE DATE :
This act would take effect immediately.