senate Bill S6410

2011-2012 Legislative Session

Ensures compliance with competitive bidding law

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Feb 06, 2012 referred to local government

S6410 - Bill Details

Current Committee:
Law Section:
General Municipal Law
Laws Affected:
Add §103-h, amd §§103 & 35, Gen Muni L; add §164-a, St Fin L

S6410 - Bill Texts

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Ensures compliance with competitive bidding law.

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BILL NUMBER:S6410

TITLE OF BILL:
An act to amend the general municipal law and the state finance law,
in relation to ensuring compliance with the competitive bidding law

PURPOSE:
To ensure that local governments and their taxpayers receive the cost
savings benefits of competitive bidding in local government purchasing
by providing political subdivisions with comptroller's opinions on
specific procurement actions and by holding political subdivisions
accountable for complying with the competitive bidding law.

SUMMARY OF PROVISIONS:
Section one of the bill names this law the "Municipal Competitive
Bidding Enforcement Act." Section two creates a new General Municipal
Law § 103-h, which provides for the Comptroller to issue an opinion as
to the legality of a political Subdivision's proposed procurement
action, authorizes the Attorney General to enjoin an illegal
procurement action, allows a good faith bidder who should have won a
contract to sue for damages, establishes a civil penalty for a willful
and intentional violation of the law, and sets a fee for initiating a
Comptroller's opinion. Section three clarifies how brand names may be
used in bid specifications. Section four clarifies that bids are
public records. Section five establishes that a political subdivision
shall respond to a Comptroller's audit that finds a violation of the
competitive bidding law. Section six provides that the office of
general services should supply bid specifications to political
subdivisions.

JUSTIFICATION:
There is currently no effective means of ensuring that local
governments comply with the municipal competitive bidding law, which
is designed to keep the cost of public contracts as low as reasonably
possible. General Municipal Law § 103(1) requires that a political
subdivision competitively bid public works contracts of more than
$20,000 and purchase contracts of more than $10,000. The term
"political subdivision" includes a municipal corporation, school
district, district corporation and BOCES. GML § 100(1). The purpose of
the competitive bidding law is "to assure the prudent and economical
use of public moneys for the benefit of all the inhabitants of the
state and to facilitate the acquisition of facilities and commodities
of maximum quality at the lowest possible cost." GML § 100-a. The
means to this end is to buy in the market, with the benefit of market
forces on prices. The businesses that bid on contracts have an
important role to play in this scheme.

While the competitive bidding statute was not enacted for the benefit
or enrichment of bidders "logic and experience teach that competition
for public contracts may be promoted only by fostering a sense of
confidence in potential bidders that their bids will be fairly
considered."

FISCHBACH & MOORE V. N.Y.C. TRANSIT AUTHORITY:
79 A.D. 2d 14, 20. Several studies have found a high incidence of
violations of the competitive bidding law. The staff of the Assembly


Committee on oversight, Analysis and Investigation examined audits of
individual municipalities that the Comptroller filed during a thirteen
month period in 1991-92. Out of a total of 852 municipalities
audited, the Comptroller found competitive bidding violations in 206,
or 24%, of the municipalities. The kinds of violations included
improper bid splitting, abuses of change orders, overly restrictive
bid specifications and simply not bothering to competitively bid when
it was required. Many of the municipalities were repeat offenders; in
27 cases a previous Comptroller's audit had cited the municipality for
violating the competitive bidding law.

The Oversight Committee survey confirmed findings that the comptroller
had made in a 1988 study entitled:

STATEWIDE SURVEY OF LOCAL GOVERNMENT: PURCHASING PRACTICES:
The Comptroller found that: The results of our survey confirmed the
continuation of a long-standing problem with municipal purchasing
practices, namely the failure to competitively bid those purchases
required by law.... The seriousness of the problem is demonstrated by
the fact that many of our regularly scheduled audits have repeatedly
disclosed instances where items should have been competitively bid but
were not.

SURVEY at 7.
In 1994, Assemblyman Robert K. Sweeney issued a report which also
found violations of the competitive bidding laws by school and local
government officials. The Assemblyman's report focused particularly on
abuses involving overly restrictive bid specifications that limited
bidding to only specified brand names. The report noted the lack of
any effective mechanism for assuring compliance with the law. The
absence of an enforcement mechanism is a key element in how the
competitive bidding law can be ignored.

The Comptroller does perform audits of municipalities and those audits
do address competitive bidding issues. However, when the Comptroller
does find violations, he has no power to require that the situation be
corrected. Indeed, a municipality is not even required to respond to a
Comptroller's audit. See GML § 35 Subd. 4(b) (1). The Attorney General
does not have jurisdiction over governmental violations of the
competitive bidding law, unless the abuse rises to the level of
criminal conduct, such as bribe-taking. A frustrated bidder or
taxpayer may sue to stop a contract, but a frustrated bidder has no
right to a contract award or to damages. If the court finds an
illegally let contract, the municipality can generally just redo the
bidding and contracting process. There is no meaningful incentive for
the frustrated bidder to bear the expense of litigating to enforce the
competitive bidding law.
See:
E.G., JANVEY & SONS. COUNTY OF NASSAU, 60 N.Y.2d 887.
The bill approaches the problem in two ways. First, the bill tries to
help political subdivisions to follow the law by providing them with
informed opinions on the legality of procurement actions and with
particularized information on proper bid specifications. Secondly, the
bill creates an enforcement mechanism that holds a political
subdivision accountable when it ignores warnings of illegal conduct.
The cornerstone of the bill (GML § 103-h) is a new procedure that
allows a taxpayer or frustrated bidder to obtain a Comptroller's


opinion on the legality of a proposed procurement action. The
Comptroller has a great deal of expertise in municipal procurement due
to the Comptroller's auditing in this area. The proposed Comptroller's
opinions, like municipal audits, would enable the Comptroller to
better perform his duty of supervising the accounts of political
subdivisions. If the Comptroller opines that the proposed procurement
action is illegal, the hope is that the political subdivision would
refrain from so acting.

If the political subdivision chooses to disregard the Comptroller's
warning, there may be two consequences. First, the Attorney General is
authorized to sue to enjoin the procurement action. Second, a
frustrated bidder, who should have won the contract, may sue for
damages of three times the amount of its lost profits. In either case,
the court would grant relief only if the court independently finds
that the procurement action was illegal. The potential for money
damages does entail the possibility that the political subdivision,
and its taxpayers, would experience a monetary loss in the short term.
This is the incentive for a political subdivision to adhere to the
law. However, it is expected that adherence to the competitive bidding
laws in the long term will result in a net gain for the political
subdivision and its taxpayers / recognizing that a primary goal of
competitive bidding laws is to ensure for the municipality the best
price for the goods being purchased. It bears emphasizing that a
municipality may easily avoid any loss simply by abiding by the
Comptroller's opinion.

The bill (GML § 103-h(4)(b)) also allows a Court to award limited
damages to a frustrated bidder when there has been no Comptroller's
opinion of illegality and the court nevertheless finds the procurement
action to be illegal. In the rare case where a court voids a contract
for illegality after a municipality has already received performance,
the court ordinarily awards the performing party its costs, which
usually results in the municipality saving money off the contract
price. The bill allows a frustrated bidder, without a supporting
Comptroller opinion, to recover no more than the amount saved by the
political subdivision by the voiding of the contract. The bill (GML
103-h (6)) includes a one hundred dollar fee for filing a complaint
initiating a Comptroller's opinion. The fee is designed to fund the
Comptroller's work, as well as to provide a mechanism for screening
out frivolous complaints.

The bill (GML 103-h(5)) also establishes a civil penalty for a
governmental official who willfully and intentionally violates the
competitive bidding law. The problem of overly restrictive bid
specifications is specifically addressed in the bill. Section three
codifies the case law rule that specifications may not be unduly
restrictive and clarifies how brand names may be used in bid
specifications. Section six allows political subdivisions to make
greater use of the expertise of the office of general services in
developing bid specifications. Other provisions of the bill clarify
that bids are public records (section four) and would require a
response to a Comptroller's audit finding that a political subdivision
violated the competitive bidding law (section five).

LEGISLATIVE HISTORY:
2012: S.3052 - Kruger


FISCAL IMPLICATIONS:
The additional work of the Comptroller will be funded by fees paid by
those who avail themselves of the new procedures.

EFFECTIVE DATE:
The first of January next succeeding the date on which it shall have
become law; provided, however, the amendments to subdivision 2 of
section 103 of the general municipal law made by section four of this
act shall not affect the expiration and reversion of such subdivision
as provided in subdivision (a) of section of part X of chapter 62 of
the laws of 2003, as amended, when upon such date the provisions of
section five of this act shall take effect.

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

                                  6410

                            I N  S E N A T E

                            February 6, 2012
                               ___________

Introduced  by  Sen.  RIVERA -- 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 and the state finance law,  in
  relation to ensuring compliance with the competitive bidding law

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

  Section 1. Short title. This act shall be known and may  be  cited  as
the "municipal competitive bidding enforcement act."
  S  2.  The  general  municipal  law is amended by adding a new section
103-h to read as follows:
  S 103-H. ENFORCEMENT OF COMPETITIVE BIDDING LAW. 1.  DEFINITIONS.  (A)
"PROCUREMENT  ACTION"  MEANS ANY TRANSACTION WHICH IS CLAIMED TO CONSTI-
TUTE A CONTRACT FOR PUBLIC WORK INVOLVING AN EXPENDITURE  OF  MORE  THAN
TWENTY THOUSAND DOLLARS OR A PURCHASE CONTRACT INVOLVING THE EXPENDITURE
OF  MORE THAN TEN THOUSAND DOLLARS WHICH SHOULD BE AWARDED TO THE LOWEST
RESPONSIBLE BIDDER, AS PROVIDED BY SECTION ONE  HUNDRED  THREE  OF  THIS
ARTICLE.
  (B)  "GOOD  FAITH  BIDDER" MEANS ANY PERSON WHO HAS SUBMITTED A BID IN
RESPONSE TO AN ADVERTISEMENT FOR SEALED BIDS, OR WHO COULD SUBMIT A GOOD
FAITH BID ON A PROCUREMENT ACTION.
  2. COMPTROLLER'S OPINIONS. UPON A COMPLAINT FILED BY A TAXPAYER OF THE
POLITICAL SUBDIVISION OR BY A GOOD FAITH BIDDER, THE OFFICE OF THE STATE
COMPTROLLER SHALL ISSUE AN OPINION ON  WHETHER  A  PROPOSED  PROCUREMENT
ACTION  BY A POLITICAL SUBDIVISION COMPLIES WITH THE COMPETITIVE BIDDING
REQUIREMENTS OF SECTION ONE HUNDRED THREE OF THIS ARTICLE. THE COMPLAINT
SHALL SPECIFY THE PROCUREMENT ACTION THAT IS CLAIMED TO VIOLATE  SECTION
ONE  HUNDRED  THREE  OF  THIS ARTICLE. THE TAXPAYER OR GOOD FAITH BIDDER
SHALL SERVE A COPY OF THE COMPLAINT ON THE POLITICAL  SUBDIVISION  PRIOR
TO  SERVING THE COMPLAINT ON THE COMPTROLLER. UPON THE FILING OF A PRIMA
FACIE VALID COMPLAINT WITH THE COMPTROLLER, THE COMPTROLLER SHALL NOTIFY
THE POLITICAL SUBDIVISION. UPON RECEIPT OF SUCH NOTICE  FROM  THE  COMP-
TROLLER, THE POLITICAL SUBDIVISION MAY NOT PROCEED WITH THE COMPLAINT OF
PROCUREMENT  ACTION FOR A PERIOD OF THIRTY DAYS. IN RENDERING HIS OR HER
OPINION, THE COMPTROLLER  MAY  CONSULT    WITH  THE  OFFICE  OF  GENERAL

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14411-01-2

S. 6410                             2

SERVICES  AS  TO  THE  REASONABLENESS AND VALIDITY OF ANY BID SPECIFICA-
TIONS. THE COMPTROLLER SHALL ISSUE A WRITTEN OPINION  PURSUANT  TO  THIS
SUBDIVISION  WITHIN THIRTY DAYS OF SUCH NOTICE TO THE POLITICAL SUBDIVI-
SION  AND  SHALL  PROMPTLY  SERVE COPIES OF THE OPINION ON THE POLITICAL
SUBDIVISION AND ON THE COMPLAINING PARTY.
  3. ATTORNEY GENERAL. IF THE COMPTROLLER'S OPINION IS THAT THE PROCURE-
MENT ACTION WOULD VIOLATE SECTION ONE HUNDRED THREE OF THIS ARTICLE, THE
COMPTROLLER SHALL TRANSMIT A COPY OF THE OPINION TO THE ATTORNEY  GENER-
AL.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE ATTORNEY GENERAL IS
AUTHORIZED TO BRING A SPECIAL PROCEEDING IN THE SUPREME COURT TO HAVE  A
PROCUREMENT ACTION ENJOINED OR DECLARED NULL AND VOID ON THE GROUND THAT
IT IS IN VIOLATION OF SECTION ONE HUNDRED THREE OF THIS ARTICLE.
  4.  DAMAGES  TO  GOOD  FAITH  BIDDER. A GOOD FAITH BIDDER MAY BRING AN
ACTION IN THE SUPREME COURT TO RECOVER DAMAGES AND ATTORNEY'S FEES  FROM
A  POLITICAL  SUBDIVISION,  WHICH  ENGAGES IN A VIOLATION OF SECTION ONE
HUNDRED THREE OF THIS ARTICLE. THE COURT SHALL AWARD DAMAGES AND  ATTOR-
NEY'S FEES IF THE COURT FINDS THAT THE GOOD FAITH BIDDER WOULD HAVE BEEN
THE  LOWEST  RESPONSIBLE  BIDDER,  BUT  FOR  THE POLITICAL SUBDIVISION'S
VIOLATION OF SECTION ONE HUNDRED THREE OF THIS  ARTICLE.  THE  COURT  IS
AUTHORIZED  IN  ANY SUCH ACTION TO DECLARE AN ILLEGALLY AWARDED CONTRACT
TO BE NULL AND VOID.
  (A) IF THE COMPTROLLER HAS ISSUED  AN  OPINION  THAT  THE  PROCUREMENT
ACTION  WOULD BE IN VIOLATION OF SECTION ONE HUNDRED THREE OF THIS ARTI-
CLE AND THE POLITICAL SUBDIVISION  HAS  THEREAFTER  PROCEEDED  WITH  THE
PROCUREMENT ACTION, THE MEASURE OF DAMAGES SHALL BE THREE TIMES THE GOOD
FAITH BIDDER'S LOST PROFITS.
  (B)  IF THE COMPTROLLER HAS NOT ISSUED AN OPINION THAT THE PROCUREMENT
ACTION WOULD BE IN VIOLATION OF SECTION ONE HUNDRED THREE OF THIS  ARTI-
CLE,  THE  MEASURE  OF DAMAGES SHALL BE THE LESSER OF (I) THE GOOD FAITH
BIDDER'S LOST PROFITS AND (II) THE DIFFERENCE BETWEEN THE PRICE  OF  THE
NULLIFIED  CONTRACT  AND  ANY AMOUNT THAT THE COURT AWARDS TO THE PERSON
WHO PERFORMED ON THE NULLIFIED CONTRACT.
  5. CIVIL PENALTY. ANY PERSON  WHO  SHALL  WILFULLY  AND  INTENTIONALLY
VIOLATE  THE  COMPETITIVE  BIDDING  REQUIREMENTS  OF SECTION ONE HUNDRED
THREE OF THIS ARTICLE SHALL BE PERSONALLY LIABLE FOR A CIVIL PENALTY  OF
NOT  MORE THAN ONE THOUSAND DOLLARS. IN A PROCEEDING BROUGHT PURSUANT TO
THIS SECTION, THE COMPTROLLER'S OPINIONS AND AUDITS MAY BE ADMITTED INTO
EVIDENCE ON THE ISSUE OF THE RESPONDENT'S STATE OF MIND,  PROVIDED  THAT
(A)  THE OPINION OR AUDIT WAS ISSUED PRIOR TO THE ALLEGED VIOLATION, (B)
THE OPINION OR AUDIT WAS ISSUED NO MORE THAN  TEN  YEARS  PRIOR  TO  THE
ALLEGED  VIOLATION, AND (C) THE OPINION OR AUDIT CONCERNED THE SAME KIND
OF ITEM OR SAME KIND OF PRACTICE AS THE ALLEGED VIOLATION.
  6. COMPLAINT FEE. WHENEVER THE COMPTROLLER  ACCEPTS  A  COMPLAINT  FOR
FILING  PURSUANT  TO  THIS  SECTION,  THE  COMPTROLLER SHALL REQUIRE AND
COLLECT A FEE OF ONE HUNDRED DOLLARS, WHICH SHALL BE PAID INTO THE STATE
TREASURY AND WHICH SHALL, SO FAR AS IS NECESSARY, BE APPROPRIATED  ANNU-
ALLY  BY  THE  LEGISLATURE TO THE COMPTROLLER TO BE USED IN IMPLEMENTING
THIS ARTICLE.
  S 3. Section 103 of the general municipal law is amended by  adding  a
new subdivision 14 to read as follows:
  14.  EXCEPT AS OTHERWISE EXPRESSLY AUTHORIZED BY THIS ARTICLE, A POLI-
TICAL SUBDIVISION MAY NOT REQUIRE THAT BIDS CONFORM TO  UNDULY  RESTRIC-
TIVE  SPECIFICATIONS.  ALL  SPECIFICATIONS  SHALL  BE  DRAFTED  SO AS TO
PROMOTE OVERALL ECONOMY FOR  THE  PURPOSES  INTENDED  AND  TO  ENCOURAGE
COMPETITION  IN  SATISFYING  THE  NEEDS  OF THE POLITICAL SUBDIVISION. A
BRAND NAME MAY BE USED AS A  SPECIFICATION  ONLY  IF  THE  SPECIFICATION

S. 6410                             3

CLEARLY  STATES THAT THE BRAND NAME OR EQUIVALENT IS ACCEPTABLE. WHERE A
BRAND NAME OR EQUIVALENT SPECIFICATION IS USED IN  A  BID  SOLICITATION,
THE  SOLICITATION  SHALL  CONTAIN EXPLANATORY LANGUAGE THAT THE USE OF A
BRAND  NAME  IS  FOR  THE PURPOSE OF DESCRIBING THE STANDARD OF QUALITY,
PERFORMANCE AND CHARACTERISTICS DESIRED AND IS NOT INTENDED TO LIMIT  OR
RESTRICT  COMPETITION.  IN  ANY  OPINION,  PROCEEDING  OR ACTION BROUGHT
PURSUANT TO SECTION ONE HUNDRED THREE-H OF THIS ARTICLE, A BID  SPECIFI-
CATION DEVELOPED AND PROVIDED BY THE OFFICE OF GENERAL SERVICES SHALL BE
DEEMED VALID.
  S  4.  Subdivision  2  of section 103 of the general municipal law, as
amended by section 4 of chapter 608 of the laws of 2011, is  amended  to
read as follows:
  2.  Advertisement  for bids and offers shall be published in the offi-
cial newspaper or newspapers, if any, or otherwise  in  a  newspaper  or
newspapers designated for such purpose. Such advertisement shall contain
a  statement of the time when and place where all bids received pursuant
to such notice will be publicly opened and read and where  the  identity
of  all  offerers will be publicly disclosed, and the designation of the
receiving device if the political subdivision or district has authorized
the receipt of bids and offers in an electronic format.  Such  board  or
agency  may  by resolution designate any officer or employee to open the
bids and offers at the time and place  specified  in  the  notice.  Such
designee  shall  make  a record of such bids and offers in such form and
detail as the board or agency shall prescribe and present  the  same  at
the  next  regular  or special meeting of such board or agency. All bids
received shall be publicly opened and read at  the  time  and  place  so
specified  and  the identity of all offerers shall be publicly disclosed
at the time and place so specified.  ALL BIDS RECEIVED AND OPENED  SHALL
BE PUBLIC RECORDS AND SHALL BE AVAILABLE FOR PUBLIC INSPECTION AND COPY-
ING.  At  least  five days shall elapse between the first publication of
such advertisement and the date so specified for the opening and reading
of bids and offers.
  S 5. Subdivision 2 of section 103 of the  general  municipal  law,  as
amended  by  section 5 of chapter 608 of the laws of 2011, is amended to
read as follows:
  2. Advertisement for bids and offers shall be published in  the  offi-
cial  newspaper  or  newspapers,  if any, or otherwise in a newspaper or
newspapers designated for such purpose. Such advertisement shall contain
a statement of the time when and place where all bids received  pursuant
to  such  notice will be publicly opened and read and where the identity
of all offerers will be publicly disclosed. Such board or agency may  by
resolution designate any officer or employee to open the bids and offers
at  the time and place specified in the notice. Such designee shall make
a record of such bids and offers in such form and detail as the board or
agency shall prescribe and present the  same  at  the  next  regular  or
special  meeting  of  such  board  or agency. All bids received shall be
publicly opened and read at the time and  place  so  specified  and  the
identity  of  all  offerers  shall be publicly disclosed at the time and
place so specified.   ALL BIDS  RECEIVED  AND  OPENED  SHALL  BE  PUBLIC
RECORDS  AND  SHALL  BE  AVAILABLE FOR PUBLIC INSPECTION AND COPYING. At
least five days shall elapse  between  the  first  publication  of  such
advertisement  and  the date so specified for the opening and reading of
bids and offers.
  S 6. Subparagraph 1 of paragraph (b) of subdivision 4 of section 35 of
the general municipal law, as amended by chapter  692  of  the  laws  of
1989, is amended to read as follows:

S. 6410                             4

  (1)  Not  later  than  ninety days after presentation to the governing
board of a report of examination performed by the office  of  the  state
comptroller,  or  receipt  by  the  governing  board of any report of an
external audit performed by an  independent  public  accountant  or  any
management letter in conjunction with such an audit, the governing board
may,  in  its  discretion,  provide  to the comptroller, and file in the
office of the clerk, or with the secretary if there is no clerk, of  the
municipal  corporation,  industrial development agency, district, agency
or activity, a written response to the findings and recommendations,  if
any,  in the report or letter. PROVIDED, HOWEVER, THAT IF SUCH REPORT OR
LETTER CONTAINS A FINDING THAT THE COMPETITIVE BIDDING  REQUIREMENTS  OF
SECTION  ONE  HUNDRED THREE OF THIS CHAPTER WERE VIOLATED, THE GOVERNING
BOARD MUST FILE A WRITTEN RESPONSE. In  the  case  of  municipal  corpo-
rations,  industrial  development  agency, districts, agencies or activ-
ities subject to examination by the commissioner of education, any writ-
ten response shall also be provided to such commissioner.
  S 7. The state finance law is amended by adding a new section 164-a to
read as follows:
  S 164-A. PROVIDING BID SPECIFICATIONS TO POLITICAL SUBDIVISIONS.   THE
COMMISSIONER OF GENERAL SERVICES SHALL PROVIDE TO ANY POLITICAL SUBDIVI-
SION,  AT  NO CHARGE, ANY SPECIFICATION THAT THE COMMISSIONER HAS DEVEL-
OPED FOR ITEMS TO BE LET FOR BIDS IN PURCHASE CONTRACTS. THE COMMISSION-
ER MAY DEVELOP ADDITIONAL SPECIFICATIONS AT THE REQUEST OF ANY POLITICAL
SUBDIVISION AND MAY PROVIDE SUCH SPECIFICATIONS TO THE POLITICAL  SUBDI-
VISION AND MAY CHARGE THE POLITICAL SUBDIVISION FOR THE COST OF DEVELOP-
ING SUCH SPECIFICATIONS.
  S  8.  If any clause, sentence, paragraph, 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 ther-
eof,  but  shall  be  confined in its operation to the clause, sentence,
paragraph, section or part thereof directly involved in the  controversy
in which such judgment shall have been rendered.
  S  9. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law; provided, however, the
amendments to subdivision 2 of section 103 of the general municipal  law
made  by  section  four  of this act shall not affect the expiration and
reversion of such subdivision pursuant to 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 five of this act shall take effect.

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