NY State Senate Bill 2019-S8940

Senate Bill S8940

2019-2020 Legislative Session

Relates to service contract payment reductions and prohibitions on new service contracts in the event of mid-year budget cuts

download bill text pdf

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Aug 24, 2020	referred to rules

2019-S8940 (ACTIVE) - Details

Current Committee:: Senate Rules
Law Section:: State Finance Law
Laws Affected:: Amd §§139-f, 163 & 22, St Fin L
Versions Introduced in 2021-2022 Legislative Session:: S4109

2019-S8940 (ACTIVE) - Summary

Provides that in the event that an adjustment or reduction in the appropriations authorized for state operations under the 2020 state budget is effectuated, the director of the division of the budget shall effectuate corresponding reductions in payments to contractors providing services for the duration of that fiscal year; excludes debt service payments.

2019-S8940 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8940

SPONSOR: BRESLIN
 
TITLE OF BILL:

An act to amend the state finance law, in relation to reducing service
contract payments and to preclude the state from entering into new
service contracts during a fiscal crisis

 
PURPOSE OR IDEA OF BILL:

To ensure that the potential budget reductions required during a fiscal
emergency are apportioned proportionally across of state government
operations and activities

 
SUMMARY OF PROVISIONS:

Section 1 amends section 139-f of the state finance law to ensure that
the director of the division of the budget effectuates corresponding
reductions in payments to contractors providing services to the state in
the event of a mid-year budget cuts to the state operations budget.

Section 2 amends section 163 of the state finance law to provide that no
state agency shall enter into any new service contract agreements during
a fiscal year in which there have been mid-year cuts to the state oper-
ations budget.

Section 3 amends section 22 of the state finance law to provide that
state agencies which are precluded from entering into new service
contracts pursuant to this act, itemize their service contact needs in
the executive budget proposal for the next ensuing fiscal year.

 
JUSTIFICATION:

As part of this year's state budget agreement, legislative leaders
agreed on a process to remedy budget shortfalls or expenditure increases
related to the COVID-19 pandemic and the continuing negative economic
impact on New York State.

One area of state expenditures and potential future expense liability
that was not addressed specifically in that agreement was the use of
outside contract services for state functions. The state agencies and
the public employees that operate them have been at the forefront of the
state's response to the COVID-19 pandemic. In the event of a mid-year
cut to the state operations budget pursuant to the adopted state budget
agreement then a corresponding reduction in the payments to vendors who
render outside services to the state is only fair and appropriate. Addi-
tionally, this legislation precludes all state agencies from entering
into new outside service contract agreements for the duration of the
fiscal year in the event of mid-year budget cuts to the state operations
budget. For those state agencies that want to enter into new outside
service contracts or have such contracts pending, then each such
proposed outside service contract shall be clearly delineated in the
next ensuing Executive Budget request so that decisions can be made by
the Legislature and the Governor on funding such new service contracts.

 
PRIOR LEGISLATIVE HISTORY:

None.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
This Act shall take effect immediately.

2019-S8940 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8940
 
                             I N  S E N A T E
 
                              August 24, 2020
                                ___________
 
 Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the state finance law, in relation to  reducing  service
   contract  payments  and  to  preclude the state from entering into new
   service contracts during a fiscal crisis
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 139-f of the state finance law is amended by adding
 a new subdivision 1-b to read as follows:
   1-B. SUSPENSION OF PAYMENTS IN THE EVENT OF A FISCAL CRISIS.  NOTWITH-
 STANDING  ANY INCONSISTENT PROVISION OF THIS SECTION OR ANY OTHER LAW TO
 THE CONTRARY, IN THE EVENT THAT AN ADJUSTMENT OR REDUCTION IN THE APPRO-
 PRIATIONS AUTHORIZED FOR STATE OPERATIONS PURSUANT TO CHAPTER  FIFTY  OF
 THE  LAWS  OF TWO THOUSAND TWENTY IS EFFECTUATED PURSUANT TO SUBDIVISION
 SEVEN OF SECTION TWENTY-THREE OF THIS CHAPTER OR PURSUANT TO  ANY  OTHER
 LAW OR EXECUTIVE ORDER, THE DIRECTOR OF THE DIVISION OF THE BUDGET SHALL
 EFFECTUATE CORRESPONDING REDUCTIONS IN PAYMENTS TO CONTRACTORS PROVIDING
 SERVICES  PURSUANT  TO  THIS  ARTICLE AND TO OTHER CONTRACTORS PROVIDING
 SERVICES PURSUANT TO SECTIONS ONE HUNDRED THIRTY-SIX, ONE HUNDRED  THIR-
 TY-SIX-A,  ONE HUNDRED THIRTY-SIX-B AND ONE HUNDRED THIRTY-SIX-C OF THIS
 ARTICLE FOR THE DURATION OF THAT FISCAL YEAR,  PROVIDED,  HOWEVER,  THAT
 THOSE  PAYMENTS  REQUIRED TO SATISFY CONTRACTUAL OBLIGATIONS TO PAY DEBT
 SERVICE OR CONTINGENT  CONTRACTUAL  OBLIGATIONS  OR  OTHERWISE  REQUIRED
 PURSUANT TO SECTION FOUR OF THIS CHAPTER SHALL BE PAID.
   §  2. Paragraph a of subdivision 4 of section 163 of the state finance
 law, as added by chapter 83 of the laws of 1995, is amended to  read  as
 follows:
   a.  The purchase of services by state agencies including the office of
 general services shall be conducted in  a  manner  which  accords  first
 priority  to preferred sources in accordance with the provisions of this
 article when the services required are available in the  form,  function
 and  utility  required  by  state  agencies  through a preferred source,
 PROVIDED, HOWEVER, THAT NO STATE AGENCY SHALL BE PERMITTED TO ENTER INTO
 ANY NEW CONTRACT OR CONTRACTS FOR SERVICES AFTER THE DATE  ON  WHICH  AN
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD17180-02-0

 S. 8940                             2
 
 ADJUSTMENT OR REDUCTION IN THE APPROPRIATIONS AUTHORIZED FOR STATE OPER-
 ATIONS  PURSUANT  TO CHAPTER FIFTY OF THE LAWS OF TWO THOUSAND TWENTY IS
 EFFECTUATED PURSUANT TO SUBDIVISION SEVEN  OF  SECTION  TWENTY-THREE  OF
 THIS  CHAPTER OR PURSUANT TO ANY OTHER LAW OR EXECUTIVE ORDER, PROVIDED,
 FURTHER, THAT AGENCIES SHALL SUBMIT ANY REQUEST  FOR  CONTRACT  SERVICES
 AUTHORIZED  PURSUANT TO THIS SECTION AS A SEPARATE APPROPRIATION REQUEST
 FOR EACH CONTRACT SERVICE IN THE EXECUTIVE  BUDGET  SUBMISSION  FOR  THE
 NEXT  FISCAL  YEAR  REQUIRED BY SUBDIVISION ONE OF SECTION TWENTY-TWO OF
 THIS CHAPTER.
   § 3. Paragraph a-1 of subdivision 3 of section 22 of the state finance
 law, as added by chapter 10 of the laws of 2006, is amended to  read  as
 follows:
   a-1.  For each state agency, the appropriations, including reappropri-
 ations, made for the current fiscal year and recommended for the ensuing
 fiscal  year  for  contracts  for  services  made  for  state  purposes,
 PROVIDED, HOWEVER, IN THE EVENT AN ADJUSTMENT OR REDUCTION IN THE APPRO-
 PRIATIONS  AUTHORIZED  FOR STATE OPERATIONS PURSUANT TO CHAPTER FIFTY OF
 THE LAWS OF TWO THOUSAND TWENTY IS EFFECTUATED PURSUANT  TO  SUBDIVISION
 SEVEN  OF  SECTION TWENTY-THREE OF THIS CHAPTER OR PURSUANT TO ANY OTHER
 LAW OR EXECUTIVE ORDER, EACH STATE AGENCY SHALL  SUBMIT  A  REQUEST  FOR
 EACH  CONTRACT SERVICE OR SERVICES NOT PREVIOUSLY AUTHORIZED PURSUANT TO
 SECTION ONE HUNDRED SIXTY-THREE OF THIS CHAPTER AS A SEPARATE  APPROPRI-
 ATION  REQUEST  IN THE NEXT ENSUING EXECUTIVE BUDGET SUBMISSION REQUIRED
 FOR THE NEXT STATE FISCAL YEAR PURSUANT TO THIS SECTION.
   § 4. This act shall take effect immediately; provided,  however,  that
 the  amendments  made  to paragraph a of subdivision 4 of section 163 of
 the state finance law by section two of this act shall  not  affect  the
 expiration  and  repeal  of  such section and shall expire and be deemed
 repealed therewith.

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