Background

Public Authorities Reform Act of 2009

The Public Authorities Reform Act (PARA) of 2009 created new Public Authorities Law (PAL) §2879-a entitled, Comptroller Approval of Contracts. The new section:

• Authorizes the Comptroller, at his or her discretion and upon written notification, to review State authority contracts in excess of $1 million which are awarded noncompetitively or which are to be paid in whole or part from monies appropriated by the State.
• Establishes that contracts subject to review will not be valid enforceable contracts without first having been approved by the Comptroller.

• Provides for the contract to become valid and enforceable if the Comptroller has not approved or disapproved the contract within 90 days of submission.

• Requires the Comptroller to promulgate such rules and regulations as may be necessary, including but not limited to the standards for determining which contracts will be subject to review and for approving such contracts.
• Excludes (per PAL §2879-a(3)) from prior approval requirements certain contracts; however, these contracts must be filed with the Comptroller within 60 days after execution.
  
  

Article X, Section 5 of the New York State Constitution

Article X, section 5 of the New York State Constitution provides that the accounts of every public corporation (including State authorities) shall be subject to the supervision of the State Comptroller.

Part 206 of Title 2 of the NYCRR

Effective October 27, 2010, as required by PAL §2879-a, the Office of the State Comptroller adopted as final, regulations, which set forth:

• The standards for the Comptroller’s determination of State authority contracts and contract amendments subject to the Comptroller’s approval;
• The criteria for the Comptroller’s approval of such contracts and contract amendments;
• The responsibilities of State authorities with respect to the filing of exempt contracts, exempt contract amendments, certain eligible contracts and certain eligible contract amendments; and
• The procedural requirements for overall compliance with PAL §2879-a.

State Authority Contracts
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ITServiceDesk@osc.state.ny.us