Bill Text: NY A09544 | 2023-2024 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Includes entities that provide employment or services to formerly incarcerated persons in the preferred source exemption for purposes of state purchasing.

Spectrum: Moderate Partisan Bill (Democrat 10-2)

Status: (Engrossed) 2024-06-06 - REFERRED TO RULES [A09544 Detail]

Download: New_York-2023-A09544-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          9544

                   IN ASSEMBLY

                                     March 20, 2024
                                       ___________

        Introduced  by  M.  of A. McDONALD, BURDICK -- read once and referred to
          the Committee on Governmental Operations

        AN ACT to amend the state finance law, in relation to  preferred  source
          status  for  entities  that provide employment and services to certain
          persons

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Subdivision 1 of section 162 of the state finance law, as
     2  added by chapter 83 of the laws of 1995, is amended to read as follows:
     3    1. Purpose. To advance special social  and  economic  goals,  selected
     4  providers  shall  have  preferred  source  status  for  the  purposes of
     5  procurement in accordance with the provisions of this section.  Procure-
     6  ment from  these  providers  shall  be  exempted  from  the  competitive
     7  procurement  provisions of section one hundred sixty-three of this arti-
     8  cle and other competitive procurement  statutes.  Such  exemption  shall
     9  apply  to  commodities  produced,  manufactured  or assembled, including
    10  those repackaged, assembled or fulfilled to meet the form, function  and
    11  utility  required  by  state  agencies,  in New York state and, where so
    12  designated, services provided by those sources in accordance  with  this
    13  section.
    14    §  2. Paragraph d of subdivision 2 of section 162 of the state finance
    15  law, as amended by chapter 565 of the laws of 2022, is amended  to  read
    16  as follows:
    17    d.  Commodities and services produced by any qualified charitable non-
    18  profit-making agency for other disabled persons and/or  formerly  incar-
    19  cerated persons approved for such purposes by the commissioner of educa-
    20  tion, or incorporated under the laws of this state and approved for such
    21  purposes by the commissioner of education;
    22    §  2-a.  Paragraph  d  of  subdivision  2  of section 162 of the state
    23  finance law, as amended by chapter 501 of the laws of 2002,  is  amended
    24  to read as follows:
    25    d.  Commodities and services produced by any qualified charitable non-
    26  profit-making agency for other severely disabled persons and/or formerly
    27  incarcerated persons approved for such purposes by the  commissioner  of

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13984-01-4

        A. 9544                             2

     1  education, or incorporated under the laws of this state and approved for
     2  such purposes by the commissioner of education;
     3    § 3. Subparagraph (iii) of paragraph a of subdivision 4 of section 162
     4  of the state finance law, as amended by chapter 565 of the laws of 2022,
     5  is amended to read as follows:
     6    (iii) When commodities are available, in the form, function and utili-
     7  ty  required by, a state agency or political subdivision or public bene-
     8  fit corporation having their own purchasing agency, and such commodities
     9  are not available pursuant to subparagraphs (i) and (ii) of  this  para-
    10  graph,  said  commodities  shall then be purchased from a qualified non-
    11  profit-making agency for other disabled persons and/or  formerly  incar-
    12  cerated persons, a qualified special employment program for mentally ill
    13  persons,  or  a  qualified  veterans'  entity;  provided,  however,  the
    14  preferred source shall perform fifty percent or more of the work;
    15    § 3-a. Subparagraph (iii) of paragraph a of subdivision 4  of  section
    16  162  of  the  state  finance  law, as added by chapter 83 of the laws of
    17  1995, is amended to read as follows:
    18    (iii) When commodities are available, in the form, function and utili-
    19  ty required by, a state agency or political subdivision or public  bene-
    20  fit corporation having their own purchasing agency, and such commodities
    21  are  not  available pursuant to subparagraphs (i) and (ii) of this para-
    22  graph, said commodities shall then be purchased from  a  qualified  non-
    23  profit-making agency for other severely disabled persons and/or formerly
    24  incarcerated persons, a qualified special employment program for mental-
    25  ly ill persons, or a qualified veterans' workshop;
    26    §  4. The opening paragraph of paragraph b of subdivision 4 of section
    27  162 of the state finance law, as amended by chapter 565 of the  laws  of
    28  2022, is amended to read as follows:
    29    When  services  are  available,  in  the  form,  function  and utility
    30  required by, a state agency or political subdivision or  public  benefit
    31  corporation  having their own purchasing agency, equal priority shall be
    32  accorded the services rendered and offered for sale  by  qualified  non-
    33  profit-making  agencies for the blind and those for [the] other disabled
    34  persons and/or  formerly  incarcerated  persons,  by  qualified  special
    35  employment  programs for mentally ill persons and by qualified veterans'
    36  entities; provided, however, the preferred source  shall  perform  fifty
    37  percent or more of the work. In the case of services:
    38    §  4-a.  The  opening  paragraph  of  paragraph  b of subdivision 4 of
    39  section 162 of the state finance law, as added by chapter 83 of the laws
    40  of 1995,  is amended to read as follows:
    41    When services  are  available,  in  the  form,  function  and  utility
    42  required  by,  a state agency or political subdivision or public benefit
    43  corporation having their own purchasing agency, equal priority shall  be
    44  accorded  the  services  rendered and offered for sale by qualified non-
    45  profit-making agencies for the blind and those for [the] other  severely
    46  disabled  persons  and/or  formerly  incarcerated  persons, by qualified
    47  special employment programs for mentally ill persons  and  by  qualified
    48  veterans' workshops. In the case of services:
    49    §  5. Subdivision 5 of section 162 of the state finance law is amended
    50  by adding a new paragraph c to read as follows:
    51    c. Such qualified charitable non-profit-making agencies for the  blind
    52  and other disabled persons and/or formerly incarcerated persons may make
    53  purchases  of services from a responsible sub-contractor so long as said
    54  purchase is de minimis to the overall contract.  For  purposes  of  this
    55  paragraph, "de minimis" means not to exceed eight percent of the overall
    56  contract value.

        A. 9544                             3

     1    § 6. Subdivision 6 of section 162 of the state finance law, as amended
     2  by chapter 565 of the laws of 2022, is amended to read as follows:
     3    6.  Prices  charged  by agencies for the blind, other disabled persons
     4  and/or formerly incarcerated persons and veterans' entity.
     5    a. Except with respect to the correctional industries program  of  the
     6  department  of  corrections  and  community supervision, it shall be the
     7  duty of the commissioner to determine, and from time to time review, the
     8  prices of all commodities and to  approve  the  price  of  all  services
     9  provided  by  preferred  sources as specified in this section offered to
    10  state agencies, political subdivisions or  public  benefit  corporations
    11  having  their own purchasing office. The commissioner's price review and
    12  approval shall not be required for any purchases below one hundred thou-
    13  sand dollars.
    14    b. In determining and revising  the  prices  of  such  commodities  or
    15  services, consideration shall be given to the reasonable costs of labor,
    16  materials  and  overhead  necessarily incurred by such preferred sources
    17  under efficient methods  of  procurement,  production,  performance  and
    18  administration;  however, the prices of such products and services shall
    19  be as close to prevailing market price as practicable, but in  no  event
    20  greater  than fifteen percent above the prevailing market prices for the
    21  same or equivalent commodities or services.
    22    c. Such qualified charitable non-profit-making agencies for the  blind
    23  and other disabled persons and/or formerly incarcerated persons may make
    24  purchases  of materials, equipment or supplies, except printed material,
    25  from centralized contracts for commodities in accordance with the condi-
    26  tions set by the office of general services; provided that the qualified
    27  charitable non-profit-making agency for  the  blind  or  other  disabled
    28  persons and/or formerly incarcerated persons shall accept sole responsi-
    29  bility for any payment due the vendor.
    30    d.  Such qualified charitable non-profit-making agencies for the blind
    31  and other disabled persons and/or formerly incarcerated persons may make
    32  purchases of materials, equipment and supplies directly from the correc-
    33  tional  industries  program  administered   by   the   commissioner   of
    34  corrections  and  community supervision, subject to such rules as may be
    35  established from time to time pursuant to the correction  law;  provided
    36  that  the qualified charitable non-profit-making agency for the blind or
    37  other disabled persons and/or formerly incarcerated persons shall accept
    38  sole responsibility for any payment due the  department  of  corrections
    39  and community supervision.
    40    e.  The  commissioner  of  the  office of children and family services
    41  shall appoint the New York state commission  for  the  blind,  or  other
    42  non-profit-making agency, other than the agency representing [the] other
    43  disabled persons and/or formerly incarcerated persons, to facilitate the
    44  distribution  of  orders  among  qualified  non-profit-making charitable
    45  agencies for the  blind.  The  state  commissioner  of  education  shall
    46  appoint  a  non-profit-making agency, other than the agency representing
    47  the blind, to facilitate the  distribution  of  orders  among  qualified
    48  non-profit-making  charitable  agencies for [the] other disabled persons
    49  and/or formerly incarcerated persons and  the  veterans'  entities.  The
    50  state commissioner of mental health shall facilitate the distribution of
    51  orders  among qualified special employment programs operated or approved
    52  by the office of mental health serving mentally ill persons.
    53    f. The commissioner may  request  the  state  comptroller  to  conduct
    54  audits and examinations to be made of all records, books and data of any
    55  agency  for  the  blind  or [the] other disabled persons and/or formerly
    56  incarcerated persons, any special employment program  for  mentally  ill

        A. 9544                             4

     1  persons  or  any veterans' entity qualified under this section to deter-
     2  mine the costs of manufacture or  the  rendering  of  services  and  the
     3  manner and efficiency of production and administration of such agency or
     4  special  employment  program  or  veterans'  entity with relation to any
     5  product or services purchased by a state agency or political subdivision
     6  or public benefit corporation and to furnish the results of  such  audit
     7  and  examination  to  the  commissioner for such action as he or she may
     8  deem appropriate under this section.
     9    § 7. This act shall take effect immediately; provided, however, that:
    10    (a) the amendment to paragraph d of subdivision 2 of  section  162  of
    11  the  state  finance law made by section two of this act shall be subject
    12  to the expiration and reversion of such paragraph pursuant to section  4
    13  of  chapter 565 of the laws of 2022, as amended, when upon such date the
    14  provisions of section two-a of this act shall take effect;
    15    (b) the amendment to subparagraph (iii) of paragraph a of  subdivision
    16  4  of section 162 of the state finance law made by section three of this
    17  act shall be subject to the expiration and reversion  of  such  subpara-
    18  graph  pursuant  to  section  4  of  chapter 565 of the laws of 2022, as
    19  amended, when upon such date the provisions of section three-a  of  this
    20  act shall take effect; and
    21    (c) the amendments to the opening paragraph of paragraph b of subdivi-
    22  sion  4  of section 162 of the state finance law made by section four of
    23  this act shall be subject to the expiration and reversion of such  para-
    24  graph  pursuant  to  section  4  of  chapter 565 of the laws of 2022, as
    25  amended, when upon such date the provisions of section  four-a  of  this
    26  act shall take effect.
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