S T A T E O F N E W Y O R K
________________________________________________________________________
1541
2011-2012 Regular Sessions
I N A S S E M B L Y
January 10, 2011
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Introduced by M. of A. GOTTFRIED, DINOWITZ, PAULIN, GALEF, COOK, JACOBS,
PEOPLES-STOKES, SCHIMEL -- Multi-Sponsored by -- M. of A. BING,
CAHILL, COLTON, FARRELL, GLICK, JAFFEE, KELLNER, LAVINE, MAISEL, McEN-
ENY, MILLMAN, PHEFFER, SWEENEY -- read once and referred to the
Committee on Governmental Operations
AN ACT to amend the state finance law, in relation to granting a prefer-
ence in state contracts for contractors which provide their employees
with employer-sponsored health coverage
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 165 of the state finance law is amended by adding a
new subdivision 9 to read as follows:
9. PREFERENCE IN STATE CONTRACTS FOR CONTRACTORS WHO PROVIDE EMPLOYEES
WITH EMPLOYER-SPONSORED HEALTH COVERAGE.
A. FOR THE PURPOSES OF THIS SUBDIVISION, "EMPLOYER-SPONSORED HEALTH
COVERAGE" SHALL MEAN A HEALTH INSURANCE POLICY, COMPREHENSIVE HEALTH
SERVICES PLAN, OR A SELF-FUNDED PLAN OR TRUST, AS DEFINED BY THE SUPER-
INTENDENT OF INSURANCE, IN CONSULTATION WITH THE COMMISSIONER OF HEALTH,
WHICH, AT A MINIMUM, MEETS THE FOLLOWING STANDARDS:
(I) IS AVAILABLE TO ALL ELIGIBLE EMPLOYEES OF AN EMPLOYER REGARDLESS
OF AGE, SEX, HEALTH STATUS OR OCCUPATION;
(II) INCLUDES BENEFITS WHICH ARE EQUIVALENT TO THE BENEFITS PROVIDED
TO STATE OFFICERS AND EMPLOYEES PURSUANT TO ARTICLE ELEVEN OF THE CIVIL
SERVICE LAW; AND
(III) PROVIDES FOR EMPLOYEE COST-SHARING THAT IS NO MORE THAN THE
COST-SHARING PROVISIONS OF A TYPICAL EMPLOYER-SPONSORED HEALTH COVERAGE
PLAN.
IN DEFINING SUCH COVERAGE, THE SUPERINTENDENT OF INSURANCE MAY VARY
THE STANDARDS OF A PLAN BASED ON EMPLOYER SIZE.
B. (I) EXCEPT AS PROVIDED IN THIS SUBDIVISION, THE STATE AND ANY STATE
AGENCY, PUBLIC BENEFIT CORPORATION OR PUBLIC AUTHORITY OF THE STATE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05350-01-1
A. 1541 2
SHALL GRANT A PREFERENCE IN ANY CONTRACT FOR THE SUPPLY OF COMMODITIES,
SERVICES OR CONSTRUCTION TO ANY CONTRACTOR THAT PROVIDES ITS EMPLOYEES
WITH EMPLOYER-SPONSORED HEALTH COVERAGE.
(II) IN THE CASE OF CONTRACTS LET BY A COMPETITIVE PROCESS, WHENEVER
THE RESPONSIVE AND RESPONSIBLE OFFERER HAVING THE LOWEST PRICE OR BEST
VALUE OFFER DOES NOT PROVIDE ITS EMPLOYEES WITH EMPLOYER-SPONSORED
HEALTH COVERAGE AND ANOTHER RESPONSIVE AND RESPONSIBLE OFFERER THAT DOES
PROVIDE ITS EMPLOYEES SUCH COVERAGE HAS SUBMITTED AN OFFER WITHIN
FIFTEEN PERCENT OF THE LOWEST PRICE OR BEST VALUE OFFER FOR A CONTRACT
TO SUPPLY COMMODITIES, SERVICES OR CONSTRUCTION OF COMPARABLE QUALITY,
THE CONTRACTING ENTITY SHALL REFER SUCH OFFERS TO THE COMMISSIONER WHO
MAY DETERMINE, IN ACCORDANCE WITH APPLICABLE LAW AND RULES, THAT IT IS
IN THE BEST INTERESTS OF THE STATE THAT THE CONTRACT BE AWARDED TO OTHER
THAN THE LOWEST PRICE OR BEST VALUE OFFER.
(III) IN THE CASE OF CONTRACTS LET BY OTHER THAN A COMPETITIVE PROCESS
FOR GOODS OR SERVICES INVOLVING AN EXPENDITURE OF AN AMOUNT GREATER THAN
THE DISCRETIONARY BUYING THRESHOLD AS SPECIFIED IN SECTION ONE HUNDRED
SIXTY-THREE OF THIS ARTICLE, OR FOR CONSTRUCTION INVOLVING AN AMOUNT
GREATER THAN FIFTEEN THOUSAND DOLLARS, THE CONTRACTING ENTITY SHALL NOT
AWARD TO A PROPOSED CONTRACTOR THAT DOES NOT PROVIDE EMPLOYER-SPONSORED
HEALTH COVERAGE TO ITS EMPLOYEES UNLESS THE ENTITY SEEKING TO USE THE
COMMODITIES, SERVICES OR CONSTRUCTION DETERMINES THAT THE COMMODITIES,
SERVICES OR CONSTRUCTION ARE NECESSARY FOR THE ENTITY TO PERFORM ITS
FUNCTIONS AND THERE IS NO OTHER RESPONSIBLE CONTRACTOR THAT WILL SUPPLY
COMMODITIES, SERVICES OR CONSTRUCTION OF COMPARABLE QUALITY AT A COMPA-
RABLE PRICE. SUCH DETERMINATIONS SHALL BE MADE IN WRITING AND SHALL BE
PUBLIC DOCUMENTS.
C. UPON RECEIVING INFORMATION THAT A CONTRACTOR THAT HAS INDICATED
THAT IT PROVIDES ITS EMPLOYEES EMPLOYER-SPONSORED HEALTH COVERAGE IN
ACCORDANCE WITH THE PROVISIONS OF THIS SUBDIVISION IS IN VIOLATION THER-
EOF, THE CONTRACTING ENTITY SHALL REVIEW SUCH INFORMATION AND OFFER THE
CONTRACTOR AN OPPORTUNITY TO RESPOND. IF THE CONTRACTING ENTITY FINDS
THAT A VIOLATION HAS OCCURRED, IT SHALL TAKE SUCH ACTION AS MAY BE
APPROPRIATE AND PROVIDED FOR BY LAW, RULE OR CONTRACT, INCLUDING, BUT
NOT LIMITED TO, IMPOSING SANCTIONS, SEEKING COMPLIANCE, RECOVERING
DAMAGES OR DECLARING THE CONTRACTOR IN DEFAULT.
D. A RESPONSIVE AND RESPONSIBLE OFFERER NOT IN COMPLIANCE WITH THE
PROVISIONS OF THIS SUBDIVISION MAY COME INTO COMPLIANCE UPON A COMMIT-
MENT THAT THE PROVISION OF EMPLOYER-SPONSORED HEALTH COVERAGE WILL
COMMENCE FOR EMPLOYEES OF THE CONTRACTOR NO LATER THAN THE EFFECTIVE
DATE OF THE PROPOSED CONTRACT.
E. AS USED IN THIS SUBDIVISION, THE TERM "CONTRACT" SHALL NOT INCLUDE
CONTRACTS WITH GOVERNMENTAL AND NON-PROFIT ORGANIZATIONS, CONTRACTS
AWARDED PURSUANT TO EMERGENCY PROCUREMENT PROCEDURES OR CONTRACTS,
RESOLUTIONS, INDENTURES, DECLARATIONS OF TRUST OR OTHER INSTRUMENTS
AUTHORIZING OR RELATING TO THE AUTHORIZATION, ISSUANCE, AWARD, SALE OR
PURCHASE OF BONDS, CERTIFICATES OF INDEBTEDNESS, NOTES OR OTHER FISCAL
OBLIGATIONS, PROVIDED, HOWEVER, THAT A CONTRACT TO PROVIDE FINANCIAL OR
LEGAL ADVICE OR MANAGING UNDERWRITER SERVICES IN CONNECTION WITH SUCH
ACTIVITIES SHALL BE INCLUDED IN THE TERM "CONTRACT".
S 2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.