Hochul Vetoes Comptroller Review Of Emergency Purchases
There was no debate when the state Legislature passed legislation returning oversight of some state contracts and purchases to the state Comptroller’s Office.
A.10281/S.9171 was passed unanimously in both the Assembly and Senate earlier this year, with no floor debate in either chamber. Gov. Kathy Hochul, however, continues to have questions the legislature hasn’t articulated, vetoing the measure for a second consecutive year.
“I am very disappointed the Governor vetoed our bill requiring more transparency and accountability for billions in emergency contracts and those that bypass routine oversight. Without public disclosure of how taxpayer money is being used, it raises questions about whether the public is getting the best value for its money. This legislation had unanimous support in both the Assembly and the Senate. We’ll work with our legislative sponsors, Senator Cooney and Assemblywoman Solages, to keep pushing for it and keep taxpayers informed about where their money is going. Transparent government is accountable government.,” DiNapoli said.
The legislation would have defined emergency contracts and exempted contracts. Any emergency contract or exempted contract would have been required to publicly posted in a list by the contracting entity, while including the relevant emergency declaration or provision that suspended or exempted the contract from the comptroller’s prior review. State agencies would have then had to provide a brief description of the contract, including, the amount of the the name of the vendor(s), the contract term, what is being provided by the contract, and if the contract is an emergency contract and a statement explaining how the contract relates to the declared state
disaster emergency. Agencies would also have had to explain whether the contract was chosen on a competitive
basis, and if not, explain why a competitive bid was not done.
Hochul’s reasons for vetoing the bill haven’t changed. She is concerned the legislation would make it too difficult to provide state services when emergencies are declared and said the possibility of exposing trade secrets could make it harder to find private companies to work with the state during a time of emergency.
“It is important in times of emergency that there is flexibility for the Executive to focus on the ongoing emergency and move quickly in the best interest of the public,” Hochul wrote in her veto message. “The requirements in this bill would hamper that ability.”
Examples of contracts that would have to be disclosed under the now-vetoed legislation include the New York State Police purchase of $12.2 million of land and buildings at Corporate Woods in Albany for a forensic lab and another $10.8 million spent at Cazenovia College for a training academy made under the state’s gun violence executive order that the comptroller’s pre-contract review. The State Police has put in a request to extend the contract in September 2024 and later withdrew it, saying it was no longer needed.
The state’s $4 billion emergency rental assistance program, which included $310 million to a company named Guidehouse to administer the program, was exempted from the comptroller’s review. That company just settled with the federal government for $7.6 million for cybersecurity violations.
Hochul’s administration was also criticized for awarding a $637 million state contract to Digital Gadgets for COVID-19 tests despite multiple competitors offering a much cheaper price per test. In turn, Charles Tebele – the CEO of Digital Gadgets – hosted a large-money fundraiser for the Governor’s re-election campaign which raised more than $300,000. Mr. Tebele’s business partner and multiple family members also made large donations to Governor Hochul’s campaign.