S T A T E   O F   N E W   Y O R K
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                                  1541

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            January 10, 2011
                               ___________

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.