N.Y. Public Authorities Law § 2879-a: Comptroller approval of contracts

§ 2879-a. Comptroller approval of contracts. 1. Except as set forth in

subdivision three of this section, where the comptroller determines

pursuant to his or her authority to supervise the accounts of public

corporations, that contracts or categories of contracts in excess of one

million dollars (a) to be awarded by a state authority to a single

source, a sole source or pursuant to any other method of procurement

that is not competitive, or (b) which are to be paid in whole or in part

from monies appropriated by the state to a state authority for such

contractual expenditure, require supervision in the form of prior review

and approval of such contracts, and the comptroller so notifies such

authority of such determination, then any such contract entered into

subsequent to such notification shall be submitted to the comptroller

for his or her approval and shall not be a valid enforceable contract

unless it shall first have been approved by the comptroller. Such

notification shall identify the process for submission, the categories

of contracts at issue and the time period for which such submission is

to take place. The comptroller shall promulgate such rules and

regulations as may be necessary to carry out his or her responsibilities

under this section, including but not limited to the standards for

determining which contracts will be subject to his or her review and for

approving such contracts.

2. Where the comptroller, pursuant to subdivision one of this section,

has notified a state authority that any contract or category of

contracts shall be subject to his or her approval, such authority shall

include or cause to be included in each such contract a provision

informing the other party that such contract is subject to the

comptroller's approval pursuant to the comptroller's authority to

supervise the accounts of public corporations. If the comptroller has

not approved or disapproved any contract subject to his or her approval

within ninety days of submission to his or her office, such contract

shall become valid and enforceable without such approval.

3. This section shall not apply to: (a) contracts entered into for the

issuance of commercial paper or bonded indebtedness, other than

contracts with the state providing for the payment of debt service

subject to an appropriation; (b) contracts entered into by an entity

established under article ten-C of this chapter that are for: (i)

projects approved by the department of health or the public health

council in accordance with articles twenty-eight, thirty-six or forty of

the public health law or article seven of the social services law; (ii)

projects approved by the office of mental health, the office for people

with developmental disabilities, or the office of alcoholism and

substance abuse services in accordance with articles sixteen,

thirty-one, or thirty-two of the mental hygiene law; (iii) services,

affiliations or joint ventures for the provision or administration of

health care services or scientific research; (iv) payment for direct

health care services or goods used in the provision of health care

services; or (v) participation in group purchasing arrangements; (c)

contracts entered into for the procurement of goods, services or both

goods and services made to meet emergencies arising from unforeseen

causes or to effect repairs to critical infrastructure that are

necessary to avoid a delay in the delivery of critical services that

could compromise the public welfare; (d) contracts of purchase or sale

of energy, electricity or ancillary services made by an authority on a

recognized market for goods, services, or commodities in question in

accordance with standard terms and conditions of purchase or sale at a

market price; (e) contracts for the purchase, sale or delivery of power

or energy, fuel, costs and services ancillary thereto, or financial

products related thereto, with a term of less than five years; and (f)

contracts for the sale or delivery of power or energy and costs and

services ancillary thereto for economic development purposes pursuant to

title one of article five of this chapter or article six of the economic

development law, provided, however, that the authority shall file copies

of any such contract with the comptroller within sixty days after the

execution of such contract.

4. The provisions of this section do not grant or diminish any power

or right to review contracts beyond or from that which the comptroller

may have pursuant to his or her authority to supervise the accounts of

public authorities. If any provisions of this section or its application

to any person or circumstance is held invalid by a court of last resort,

then this section shall be deemed to be invalid in its entirety.