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 the public authorities law  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  of  mental  retardation and 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.