M E M O R A N D U M

						September 20, 2011

To:		Members of the Board of Trustees

From: 	Nancy L. Zimpher, Chancellor 

Subject:	Amendment to Rules and Regulations for Purchasing and Contracting 


Action Requested

	The proposed resolution authorizes final rulemaking to revise the University’s purchasing and contracting regulations to conform to amendments made to Article 8 of the Education Law by the enacted 2011-12 State budget.

Resolution

      I recommend that the Board of Trustees adopt the following resolution:

Resolved that the Chancellor, or designee, be, and hereby is, authorized and directed to prepare, in accordance with the provisions of the State Administrative Procedure Act, Notice of Adoption to repeal subdivision (e) of §316.4 of Chapter V of Title 8 of NYCRR:

§ 316.4 Contracting and purchasing materials, supplies, equipment, services and construction.
Subdivision (e) is repealed.

Background

      The resolution authorizes final rulemaking to amend 8 NYCRR §316.4 by repealing subdivision (e) to conform to the provisions of Article 8 of the Education Law, as amended by Chapter 58 of the Laws of 2011.

      Section 316.4(e), entitled “External agency contract and purchase order approvals,” sets dollar thresholds for external approval of SUNY contracts by the Attorney General and Office of State Comptroller, and mandates external approval of contracts below threshold limits in the event of bid protests, sole source procurements and other such contracting events.  Subdivision (e) also requires external approval of hospital contracts for construction.

      Generally, the statutory amendments effected by the enacted State budget exempt SUNY contracts for goods and construction from pre-audit by the Attorney General and State Comptroller.

      The amendments to Education Law §355 authorize SUNY to develop purchasing and contracting guidelines, not rules and regulations, to implement the new law exempting certain contracts from external approval.  Thus, a repeal of §316.4(e) is required to harmonize the University’s regulations with the statutory amendments.  New guidelines will be implemented that address remaining requirements for external approval.

      Notice of proposed rulemaking was published in the State Register on June 22, 2011.  No comments were received.



O\Resolutions\September 2011\Final Adoption purchasing and contraction draft
Board Resolution	-3- 		September 20, 2011