STATE OF NEW YORK ________________________________________________________________________
8549--A
2021-2022 Regular Sessions
IN ASSEMBLY
December 13, 2021 ___________
Introduced by M. of A. BURDICK, GALLAGHER, MEEKS, SEAWRIGHT, SANTABAR- BARA, ENGLEBRIGHT, J. M. GIGLIO, HEVESI, SAYEGH, LAWLER, WOERNER, GONZALEZ-ROJAS, SILLITTI, STERN, RA, DeSTEFANO, J. A. GIGLIO -- Multi-Sponsored by -- M. of A. COOK -- read once and referred to the Committee on Governmental Operations -- recommitted to the Committee on Governmental Operations in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the state finance law, in relation to preferred source status for entities that provide employment to certain persons
The People of the State of New York, represented in Senate and Assem- bly, do enact as follows:
1 Section 1. Paragraphs d, e and f of subdivision 2, subparagraph (iii) 2 of paragraph a and the opening paragraph of paragraph b of subdivision 4 3 and subdivisions 6, 7 and 8 of section 162 of the state finance law, 4 paragraphs d and e of subdivision 2 as amended and paragraph f of subdi- 5 vision 2 as added by chapter 501 of the laws of 2002, subparagraph (iii) 6 of paragraph a and the opening paragraph of paragraph b of subdivision 4 7 and subdivisions 6 and 8 as added by chapter 83 of the laws of 1995, 8 paragraphs a and d of subdivision 6 as amended by section 164 of subpart 9 B of part C of chapter 62 of the laws of 2011, paragraph e of subdivi- 10 sion 6 as amended by chapter 265 of the laws of 2013, subdivision 7 as 11 amended by chapter 426 of the laws of 2002 and paragraph a of subdivi- 12 sion 8 as amended by chapter 95 of the laws of 2000, are amended to read 13 as follows: 14 d. Commodities and services produced by any qualified charitable non- 15 profit-making agency for other [severely] disabled persons approved for 16 such purposes by the commissioner of education, or incorporated under 17 the laws of this state and approved for such purposes by the commission- 18 er of education;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13840-03-2
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1 e. Commodities and services produced by a qualified veterans' [work- 2 shop] entity providing job and employment-skills training to veterans 3 where such a [workshop] entity is operated by the United States depart- 4 ment of veterans affairs and is manufacturing products or performing 5 services within this state and where such [workshop] entity is approved 6 for such purposes by the commissioner of education; or 7 f. Commodities and services produced by any qualified charitable non- 8 profit-making [workshop] entity for veterans approved for such purposes 9 by the commissioner of education, or incorporated under the laws of this 10 state and approved for such purposes by the commissioner of education. 11 (iii) When commodities are available, in the form, function and utili- 12 ty required by, a state agency or political subdivision or public bene- 13 fit corporation having their own purchasing agency, and such commodities 14 are not available pursuant to subparagraphs (i) and (ii) of this para- 15 graph, said commodities shall then be purchased from a qualified non- 16 profit-making agency for other [severely] disabled persons, a qualified 17 special employment program for mentally ill persons, or a qualified 18 veterans' [workshop] entity; provided, however, the preferred source 19 shall perform fifty percent or more of the work; 20 When services are available, in the form, function and utility 21 required by, a state agency or political subdivision or public benefit 22 corporation having their own purchasing agency, equal priority shall be 23 accorded the services rendered and offered for sale by qualified non- 24 profit-making agencies for the blind and those for the other [severely] 25 disabled, by qualified special employment programs for mentally ill 26 persons and by qualified veterans' [workshops] entities; provided, 27 however, the preferred source shall perform fifty percent or more of the 28 work. In the case of services: 29 6. Prices charged by agencies for the blind, other [severely] disabled 30 and veterans' [workshops] entity. 31 a. Except with respect to the correctional industries program of the 32 department of corrections and community supervision, it shall be the 33 duty of the commissioner to determine, and from time to time review, the 34 prices of all commodities and to approve the price of all services 35 provided by preferred sources as specified in this section offered to 36 state agencies, political subdivisions or public benefit corporations 37 having their own purchasing office. The commissioner's price review and 38 approval shall not be required for any purchases below two hundred fifty 39 thousand dollars. 40 b. In determining and revising the prices of such commodities or 41 services, consideration shall be given to the reasonable costs of labor, 42 materials and overhead necessarily incurred by such preferred sources 43 under efficient methods of procurement, production, performance and 44 administration; however, the prices of such products and services shall 45 be as close to prevailing market price as practicable, but in no event 46 greater than fifteen percent above[,] the prevailing market prices 47 [among responsive offerors] for the same or equivalent commodities or 48 services. 49 c. Such qualified charitable non-profit-making agencies for the blind 50 and other [severely] disabled may make purchases of materials, equipment 51 or supplies, except printed material, from centralized contracts for 52 commodities in accordance with the conditions set by the office of 53 general services; provided that the qualified charitable non-profit-mak- 54 ing agency for the blind or other [severely] disabled shall accept sole 55 responsibility for any payment due the vendor.
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1 d. Such qualified charitable non-profit-making agencies for the blind 2 and other [severely] disabled may make purchases of materials, equipment 3 and supplies directly from the correctional industries program adminis- 4 tered by the commissioner of corrections and community supervision, 5 subject to such rules as may be established from time to time pursuant 6 to the correction law; provided that the qualified charitable non-pro- 7 fit-making agency for the blind or other [severely] disabled shall 8 accept sole responsibility for any payment due the department of 9 corrections and community supervision. 10 e. The commissioner of the office of children and family services 11 shall appoint the New York state commission for the blind, or other 12 non-profit-making agency, other than the agency representing the other 13 [severely] disabled, to facilitate the distribution of orders among 14 qualified non-profit-making charitable agencies for the blind. The state 15 commissioner of education shall appoint a non-profit-making agency, 16 other than the agency representing the blind, to facilitate the distrib- 17 ution of orders among qualified non-profit-making charitable agencies 18 for the other [severely] disabled and the veterans' [workshops] 19 entities. The state commissioner of mental health shall facilitate the 20 distribution of orders among qualified special employment programs oper- 21 ated or approved by the office of mental health serving mentally ill 22 persons. 23 f. The commissioner may request the state comptroller to conduct 24 audits and examinations to be made of all records, books and data of any 25 agency for the blind or the other [severely] disabled, any special 26 employment program for mentally ill persons or any veterans' [workshops] 27 entity qualified under this section to determine the costs of manufac- 28 ture or the rendering of services and the manner and efficiency of 29 production and administration of such agency or special employment 30 program or veterans' [workshop] entity with relation to any product or 31 services purchased by a state agency or political subdivision or public 32 benefit corporation and to furnish the results of such audit and exam- 33 ination to the commissioner for such action as he or she may deem appro- 34 priate under this section. 35 7. Partnering with preferred sources. [The commissioner of the appro- 36 priate appointing agency as identified in paragraph e of subdivision six 37 of this section, shall conduct one or more pilot studies whereby a 38 private vendor may be accorded preferred source status for purposes of 39 this section. The pilot studies shall seek to ascertain the benefits of 40 partnerships between private industry and those entities accorded 41 preferred source status as specified in this section. Preferred source 42 status under a partnering arrangement may] Private vendors may be 43 accorded preferred source status but only [be accorded] when a proposal 44 to a soliciting agency for commodities or services includes a binding 45 agreement with one or more of the entities accorded preferred source 46 status under this section. The binding agreement shall provide that: 47 (i) The preferred source shall perform the majority of the work neces- 48 sary to such offering, and 49 (ii) The partnering proposal includes bona fide long term employment 50 opportunities for persons who [could otherwise be new clients] are 51 clients of an entity [previously] accorded preferred source status here- 52 in, and 53 (iii) The partnering proposal offers the solicited services or commod- 54 ities at a price less than the price that otherwise would be charged by 55 [a] the preferred source.
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1 8. [a. The commissioner of the appropriate appointing agency shall 2 report by December thirty-first, two thousand four, to the governor, the 3 chairperson of the senate finance committee, the chairperson of the 4 assembly ways and means committee and the director of the budget, the 5 results and findings of each pilot study conducted, pursuant to subdivi- 6 sion seven of this section, and include recommendations for improving 7 partnering with preferred sources. 8 b.] The council shall report to the governor, legislative fiscal 9 committees and the director of the budget by December thirty-first, 10 nineteen hundred ninety-five and thereafter annually, a separate list 11 concerning the denial of any application made pursuant to paragraph (b) 12 of subdivision three of this section, the reasons for such denial, 13 whether such denial was appealed to the commissioner, and the final 14 decision by the commissioner on such application. 15 ยง 2. This act shall take effect immediately and shall not apply to any 16 contracts or requests for proposals issued by government entities before 17 such date.