Senate Bill S8078

2009-2010 Legislative Session

Clarifies the definition of the term liabilities with respect to the period for which an appropriation remains in full force and effect

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Archive: Last Bill Status - In Senate Committee Finance 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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 04, 2010	referred to finance

co-Sponsors

2009-S8078 (ACTIVE) - Details

See Assembly Version of this Bill:: A11382
Current Committee:: Senate Finance
Law Section:: State Finance Law
Laws Affected:: Amd §40, St Fin L; amd §38, Hway L; amd §2879, Pub Auth L; amd §8 Pub Bldg L; amd §376, Ed L

2009-S8078 (ACTIVE) - Summary

Clarifies the definition of the term liabilities with respect to the period for which an appropriation remains in full force and effect.

2009-S8078 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S8078

TITLE OF BILL:
An act to amend the state finance law, the highway law, the public
authorities law, the public buildings law and the education law, in
relation to clarifying the definition of the term liabilities with
respect to the period for which an appropriation remains in full force
and effect

PURPOSE:
The purpose of this legislation is to authorize the continued payment
for contracts that have already been entered into by the state and clar-
ify that agencies may award contracts after April 1, even if the appro-
priations were provided for during the prior fiscal year.

SUMMARY OF PROVISIONS:
Section one of the bill amends paragraph (c) of subdivision 3 of section
40 of the state finance law by clarifying that the term liability
includes the value of contracts that were let, but not awarded, during
the fiscal year.

Section two clarifies that the Department of Transportation has the
authority to award contracts for highway construction or improvements,
even if the appropriation for such work was made during the preceding
fiscal year.

Section three clarifies that public authorities may award procurement
contracts, even if the appropriation for such work was made during the
preceding fiscal year.

Section four clarifies that the Office of General Services may award
construction or improvement contracts, even if the appropriation for
such work was made during the preceding fiscal year.

Section five clarifies that the State University Construction Fund may
award procurement contracts, even if the appropriation for such work was
made during the preceding fiscal year.

Section six states the effective date.

JUSTIFICATION:
Section 40 of the State Finance Law outlines the timeframe for which
appropriations included in the State budget remain in full force and
effect and the date by which such appropriations shall lapse.  Pursuant
to subdivision 3 of such section, all appropriations made for any
purpose currently cease to have force and effect - except for any
liabilities already incurred at the close of the fiscal year. In the
case of existing liabilities incurred pursuant to a capital projects
appropriation, paragraph (c) of subdivision 3 provides that the final
lapse date for such appropriations is the 15th of September following
the close of the fiscal year. Thus, liabilities for capital projects

made pursuant to existing budget appropriations may continue to be paid
out until September at the following fiscal year.  However, current law
provides no clear definition of the term "liabilities" as utilized in
subdivision 3 of Section 40 of the State Finance Law. As a result 01
this ambiguity, it is unclear exactly what types of obligations may be
construed as a liability against an existing capital projects budget
appropriation. The provisions 01 this bill would clarify that liabil-
ities shall include payments for work performed or materials furnished
both during the fiscal year and in the timeframe prior to the official
lapse of the capital projects appropriations under which such liabil-
ities are made, and will include the value of contracts that have been
let but are not yet awarded. By defining the liabilities that are to be
included in the exception for capital projects, this bill provides clar-
ity for both contractors and the state about which liabilities may be
paid and which have officially lapsed.

Moreover, this legislation clarifies that public authorities and agen-
cies, including DOT and OGS, may award contracts that were let during
the preceding fiscal year. This is a logical clarification since the
term liability includes the value 01 contracts that were let during the
fiscal year, even if they were not awarded until sometime after April 1,
but before September 15 of the following year.

Since April 1, 2010 projects that were put out to bid in the previous
fiscal year have not been awarded by state agencies. This lack of award
has created a backlog 01 over 200 projects worth over $1.1 billion In
construction. In order to continue New York's economic recovery, these
projects must be awarded immediately. By federal estimates, every $1
billion invested in construction projects creates 34,700 jobs.

LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
The provisions of this bill would result in no additional costs to the
State.

EFFECTIVE DATE:
Immediate and shall be deemed to have been in full force and effect on
and after March 31, 2010.

2009-S8078 (ACTIVE) - Bill Text download pdf

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

                                  8078

                            I N  S E N A T E

                              June 4, 2010
                               ___________

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

AN ACT to amend the state finance  law,  the  highway  law,  the  public
  authorities  law,  the  public buildings law and the education law, in
  relation to clarifying the definition of  the  term  liabilities  with
  respect to the period for which an appropriation remains in full force
  and effect

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

  Section 1. Subdivision 3 of section 40 of the state  finance  law,  as
amended  by  chapter  169  of  the  laws  of 1994, is amended to read as
follows:
  3. Every appropriation for whatever purpose which at the close of  the
fiscal  year  shall  cease to have force and effect except as to liabil-
ities already incurred thereunder shall as to such liabilities  continue
in  force  and  effect until the dates specified in paragraphs (a), (b),
(c) and (d) of this subdivision, on which dates such appropriation shall
lapse and no money shall thereafter be paid out of the state treasury or
any of its funds or any of the funds under its  management  pursuant  to
such appropriation.
  (a)  Except for appropriations made to THE city university of New York
and the state university of New York,  all  state  operations  appropri-
ations  including special revenue funds-federal appropriations continued
pursuant to paragraph (d) of subdivision two of this section shall lapse
on the thirtieth day of June immediately  following  the  close  of  the
fiscal  year. The appropriations made to the city university of New York
or the state university of New York shall lapse on the thirtieth day  of
September immediately following the close of the fiscal year.
  (b)  All  aid  to  localities appropriations including special revenue
funds-federal appropriations continued  pursuant  to  paragraph  (d)  of
subdivision  two  of  this  section  shall lapse on the fifteenth day of
September immediately following the close of the fiscal year.
  (c) All capital projects appropriations shall lapse on  the  fifteenth
day  of  September  immediately  following the close of the fiscal year;

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

                                                           LBD17131-04-0

S. 8078                             2

PROVIDED THAT FOR SUCH APPROPRIATIONS, LIABILITIES INCURRED PURSUANT  TO
SUCH  APPROPRIATIONS  SHALL  BE  DEEMED  TO  INCLUDE  PAYMENTS  FOR WORK
PERFORMED AND/OR MATERIALS FURNISHED, AS WELL AS THE VALUE OF  CONTRACTS
LET  BUT  NOT AWARDED, DURING THE FISCAL YEAR AND IN THE PERIOD FROM THE
CLOSE OF SUCH FISCAL YEAR UNTIL THE FIFTEENTH  DAY  OF  SEPTEMBER  IMME-
DIATELY  FOLLOWING  THE  CLOSE OF THE FISCAL YEAR, PURSUANT TO CONTRACTS
MADE AND AWARDED BY THE STATE.
  (d) All other appropriations shall  lapse  on  the  fifteenth  day  of
September immediately following the close of the fiscal year.
  S  2.  Subdivision  3  of section 38 of the highway law, as separately
amended by chapters 938 and 1110 of the laws of 1971, is amended to read
as follows:
  3. Award of contracts. The contract for the construction  or  improve-
ment  of  such highway or section thereof shall be awarded to the lowest
responsible bidder,  as  will  best  promote  the  public  interest.  No
contract  shall be awarded to a bidder other than the lowest responsible
bidder without the written approval of the comptroller. The  lowest  bid
shall  be  deemed  to be that which specifically states the lowest gross
sum for which the entire work will be performed, including all the items
specified in the estimate thereof. The lowest bid shall be determined by
the commissioner of transportation on the basis of  the  gross  sum  for
which  the entire work will be performed, arrived at by a correct compu-
tation of all the items specified in the estimate therefor at  the  unit
prices contained in the bid.  A CONTRACT AWARD SHALL NOT BE DENIED SOLE-
LY ON THE BASIS THAT THE APPROPRIATION FOR SUCH WORK WAS MADE DURING THE
PRECEDING FISCAL YEAR, PROVIDED THAT THE APPROPRIATION HAS NOT LAPSED.
  S 3. Section 2879 of the public authorities law is amended by adding a
new subdivision 10 to read as follows:
  10.  NOTWITHSTANDING  ANY  PROVISIONS  OF  THIS SECTION OR ANY RELATED
GUIDELINES TO THE CONTRARY, NO CORPORATION SHALL DENY A  CONTRACT  AWARD
SOLELY ON THE BASIS THAT THE APPROPRIATION FOR SUCH WORK WAS MADE DURING
THE  PRECEDING  FISCAL  YEAR,  PROVIDED  THAT  THE APPROPRIATION HAS NOT
LAPSED.
  S 4. Subdivision 7 of section  8  of  the  public  buildings  law,  as
amended  by  chapter  890  of  the  laws  of 1945, is amended to read as
follows:
  7.  All such contracts for the work of  construction,  reconstruction,
alteration,  repair  or  improvement  of  any such state building, shall
contain a clause that the contract shall only be deemed executory to the
extent of the moneys available, and no liability shall  be  incurred  by
the  state beyond the moneys available for the purpose.  NOTWITHSTANDING
ANY PROVISIONS OF THIS SECTION TO THE  CONTRARY,  NO  CORPORATION  SHALL
DENY  A  CONTRACT  AWARD  SOLELY ON THE BASIS THAT THE APPROPRIATION FOR
SUCH WORK WAS MADE DURING THE PRECEDING FISCAL YEAR, PROVIDED  THAT  THE
APPROPRIATION HAS NOT LAPSED.
  S  5.  Subdivision  9 of section 376 of the education law, as added by
chapter 251 of the laws of 1962, is amended to read as follows:
  9. A. NO CONTRACT AWARD SHALL BE DENIED SOLELY ON THE BASIS  THAT  THE
APPROPRIATION  FOR  SUCH WORK WAS MADE DURING THE PRECEDING FISCAL YEAR,
PROVIDED THAT THE APPROPRIATION HAS NOT LAPSED.
  B. No payments shall be made  by  the  comptroller  from  appropriated
moneys  on account of any construction contract for a facility until the
bills or estimates presented for  such  payment  shall  have  been  duly
certified to be correct (i) by the chairman of the fund or by an officer
of  the  fund duly designated for that purpose, or (ii) if the dormitory

S. 8078                             3

authority is the letting agency, by the chairman thereof or by an  offi-
cer or employee thereof duly designated for that purpose.
  S  6.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after March 31, 2010.

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Senate Bill S8078

Sponsored By

Archive: Last Bill Status - In Senate Committee Finance Committee

Actions

co-Sponsors

2009-S8078 (ACTIVE) - Details

2009-S8078 (ACTIVE) - Summary

2009-S8078 (ACTIVE) - Sponsor Memo

2009-S8078 (ACTIVE) - Bill Text download pdf

Comments

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Sponsored By

Martin Malavé Dilan

Archive: Last Bill Status - In Senate Committee Finance Committee

Actions

co-Sponsors

Suzi Oppenheimer

David J. Valesky

2009-S8078 (ACTIVE) - Details

2009-S8078 (ACTIVE) - Summary

2009-S8078 (ACTIVE) - Sponsor Memo

2009-S8078 (ACTIVE) - Bill Text download pdf

Comments