PROCUREMENT LOBBYING LAW
FREQUENTLY ASKED QUESTIONS (FAQs)
Replaces previously released version in its entirety
4.23. State Finance Law §§ 139-j and 139-k apply to all procurements with an estimated annualized expenditure in excess of $15,000. What is meant by these terms? (Last Updated: 7/19/2023)
The definition of Procurement Contract contained in State Finance Law § 139-j(1)(g) and State Finance Law § 139-k(1)(g) imposes these additional requirements on transactions where the estimated annualized expenditure will exceed $15,000. While this phrase is undefined, the rules of statutory construction state that legislative intent should be generally construed according to its natural and most obvious sense. See McKinney’s Statutes § 94. The word “estimated” refers to a process undertaken by a Governmental Entity to determine the approximate cost of an acquisition. The word “annualized” refers to the calculation or adjustment based on a twelve-month period. Thus, in this context, the Governmental Entity is required to determine how much would be expended for a particular acquisition over a twelve-month period. If a Governmental Entity elects for administrative convenience or other reasons to use a term of less than twelve months for a contract, then its obligation is to estimate how much will be expended over a twelve-month period to determine whether the new State Finance Law requirements apply.