The New York State Senate

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

                                  3984

                       2017-2018 Regular Sessions

                            I N  S E N A T E

                            January 31, 2017
                               ___________

Introduced  by  Sens.  DeFRANCISCO,  BONACIC -- (at request of the State
  Comptroller) -- read twice and ordered printed, and when printed to be
  committed to the Committee on Finance

AN ACT to amend the state finance law and the education law, in relation
  to enacting the "New York state procurement  integrity  act";  and  to
  repeal  section  6283 of the education law relating to procurements of
  the fund (Part A); to amend the public authorities law, in relation to
  requiring public authorities to comply with certain provisions of  the
  state  finance  law  relating  to  procurements (Part B); to amend the
  public authorities law, in relation to prohibiting certain third party
  contracts (Part C); to amend the state finance  law,  in  relation  to
  authorizing  state  comptroller  to  oversee  certain contracts of the
  research foundation of the state university of New York (Part  D);  to
  amend  the  state  finance  law  and  the  public  authorities law, in
  relation to disqualifications of state and  state  authority  contrac-
  tors,  prohibiting conflicts of interest by state officers and employ-
  ees in state procurements; prohibiting conflicts of interest by  state
  authority  board members, officers and employees in authority procure-
  ments; requiring certification by state officers and employees  of  no
  undue  influence;  requiring  certification  by  state authority board
  members, officers and employees of no undue influence; and  establish-
  ing a state contractor and state authority contractor code of business
  ethics  and  conduct  (Part  E); and to amend the economic development
  law, in relation to expanding requirements for  state  authorities  to
  publish procurement opportunities (Part F)

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. This act enacts into law major  components  of  legislation
which are necessary to implement the New York state procurement integri-
ty  act.  Each component is wholly contained within a Part identified as
Parts A through F. The effective  date  for  each  particular  provision

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

                                                           LBD07080-02-7

S. 3984                             2

contained  within  such  Part  is  set forth in the last section of such
Part. Any provision in any section contained within  a  Part,  including
the effective date of the Part, which makes a reference to a section "of
this act," when used in connection with that particular component, shall
be  deemed to mean and refer to the corresponding section of the Part in
which it is found. Section three of this  act  sets  forth  the  general
effective date of this act.

                                 PART A

  Section  1. Paragraph (a) of subdivision 2 of section 112 of the state
finance law, as amended by section 18 of part L of  chapter  55  of  the
laws of 2012, is amended to read as follows:
  (a)  Before  any contract made for or by any state agency, department,
board, officer, commission, or institution, except the office of general
services, shall be executed or become effective, whenever such  contract
exceeds  fifty  thousand  dollars in amount and before any contract made
for or by the office of general services shall  be  executed  or  become
effective,  whenever  such contract exceeds eighty-five thousand dollars
in amount, it shall first be approved by the comptroller  and  filed  in
his  or  her  office,  [with the exception of contracts established as a
centralized contract through the office of general services and purchase
orders or other procurement transactions issued under  such  centralized
contracts.  The]  PROVIDED,  HOWEVER,  THAT THE comptroller shall make a
final written determination with respect to approval  of  such  contract
within  ninety  days  of  the  submission of such contract to his or her
office unless the comptroller shall notify, in writing, the state  agen-
cy, department, board, officer, commission, or institution, prior to the
expiration of the ninety day period, and for good cause, of the need for
an  extension  of  not more than fifteen days, or a reasonable period of
time agreed to by such state agency, department, board, officer, commis-
sion, or institution and provided, further, that such  written  determi-
nation  or extension shall be made part of the procurement record pursu-
ant to paragraph f of subdivision one of section one hundred sixty-three
of this chapter.
  § 2. Subdivisions 5 and 6 of section 355  of  the  education  law,  as
amended by section 1 of subpart B of part D of chapter 58 of the laws of
2011, paragraph a of subdivision 5 as amended by section 31 of part L of
chapter 55 of the laws of 2012, are amended to read as follows:
  5.  Notwithstanding  the  provisions of subdivision two of section one
hundred twelve and sections one hundred fifteen, one hundred  sixty-one,
and  one hundred sixty-three of the state finance law and sections three
and six of the New York state printing and public documents law  or  any
other  law to the contrary, the state university trustees are authorized
and empowered to:
  a.  (i)  purchase  materials,   proprietary   electronic   information
resources  including  but  not  limited  to  academic, professional, and
industry journals, reference handbooks and  manuals,  research  tracking
tools, indexes and abstracts, equipment and supplies, including computer
equipment  and  motor  vehicles,  WHERE THE AMOUNT FOR A SINGLE PURCHASE
DOES NOT EXCEED FIFTY  THOUSAND  DOLLARS,  (ii)  execute  contracts  for
SERVICES  AND construction [and construction-related services] contracts
TO AN AMOUNT NOT EXCEEDING FIFTY THOUSAND DOLLARS,  and  (iii)  contract
for  printing TO AN AMOUNT NOT EXCEEDING FIFTY THOUSAND DOLLARS, without
prior approval by any other state officer  or  agency,  but  subject  to
rules  and regulations OR GUIDELINES of the state comptroller not other-

S. 3984                             3

wise inconsistent with the provisions of this section and in  accordance
with  guidelines  promulgated  by the state university board of trustees
after consultation with the state comptroller. IN  ADDITION,  THE  TRUS-
TEES,  AFTER CONSULTATION WITH THE COMMISSIONER OF GENERAL SERVICES, ARE
AUTHORIZED TO ANNUALLY NEGOTIATE WITH THE STATE COMPTROLLER INCREASES IN
THE AFOREMENTIONED DOLLAR LIMITS AND  THE  EXEMPTION  OF  ANY  ARTICLES,
CATEGORIES  OF  ARTICLES  OR  COMMODITIES  FROM THESE LIMITS. GUIDELINES
PROMULGATED BY THE STATE UNIVERSITY BOARD  OF  TRUSTEES  SHALL,  TO  THE
EXTENT  PRACTICABLE, REQUIRE THAT COMPETITIVE PROPOSALS BE SOLICITED FOR
PURCHASES, AND SHALL INCLUDE REQUIREMENTS THAT PURCHASES  AND  CONTRACTS
AUTHORIZED  UNDER THIS SECTION BE AT THE LOWEST AVAILABLE PRICE, INCLUD-
ING CONSIDERATION OF PRICES  AVAILABLE  THROUGH  OTHER  STATE  AGENCIES,
CONSISTENT  WITH  QUALITY  REQUIREMENTS,  AND  AS  WILL BEST PROMOTE THE
PUBLIC INTEREST. SUCH PURCHASES MAY BE MADE DIRECTLY FROM ANY CONTRACTOR
PURSUANT TO ANY CONTRACT FOR COMMODITIES LET BY THE  OFFICE  OF  GENERAL
SERVICES OR ANY OTHER STATE AGENCY;
  [a-1. execute contracts for services to an amount not exceeding twenty
thousand  dollars  without  prior approval by any other state officer or
agency, but subject to rules and regulations of  the  state  comptroller
not  otherwise  inconsistent  with the provisions of this section and in
accordance with the guidelines promulgated by the state university board
of trustees after consultation with the state comptroller. In  addition,
the  trustees,  after  consultation  with  the  commissioner  of general
services, are authorized to annually  negotiate  with  the  state  comp-
troller  increases in the aforementioned dollar limits and the exemption
of any services or categories of services from these limits;]
  b. to establish cash advance accounts for the  purpose  of  purchasing
materials,  supplies, or services, for cash advances for travel expenses
and per diem allowances, or for advance payment of wages and salary. The
account may be used to purchase such materials,  supplies,  or  services
where the amount of a single purchase does not exceed [one thousand] TWO
HUNDRED  FIFTY  dollars,  in accordance with such guidelines as shall be
prescribed by the state university trustees after consultation with  the
state comptroller;
  c.  establish  guidelines  in  consultation  with  the commissioner of
general services authorizing participation by the  state  university  in
programs administered by the office of general services for the purchase
of  available  New York state food products. The commissioner of general
services shall provide assistance to the state university  necessary  to
enable the university to participate in these programs;
  d. award contract extensions for campus transportation without compet-
itive  bidding  where such contracts were secured either through compet-
itive bidding or through  evaluation  of  proposals  IN  RESPONSE  TO  A
REQUEST  FOR  PROPOSALS,  however such extensions may be rejected if the
amount to be paid to the contractor in any year of such proposed  exten-
sion  fails to reflect any decrease in the regional consumer price index
for the New York, New York-Northeastern, New Jersey area, based upon the
index for all urban consumers (CPI-U) during the preceding  twelve-month
period.  At  the  time of any contract extension, consideration shall be
given to any competitive proposal offered  by  a  public  transportation
agency.  Such  contract  may  be increased for each year of the contract
extension by an amount not to exceed the regional consumer  price  index
increase for the New York, New York-Northeastern, New Jersey area, based
upon  the  index  for  all urban consumers (CPI-U), during the preceding
twelve-month period, provided it has been satisfactorily established  by

S. 3984                             4

the  contractor  that  there has been at least an equivalent increase in
the amount of his cost of operation, during the period of the contract.
  [e.  guidelines  promulgated by the state university board of trustees
shall, to the extent practicable, require that competitive proposals  be
solicited  for  purchases, and shall include requirements that purchases
and contracts authorized under this section be at the  lowest  available
price,  including  consideration of prices available through other state
agencies, consistent with quality requirements, and as will best promote
the public interest. Such  purchases  may  be  made  directly  from  any
contractor pursuant to any contract for commodities let by the office of
general services or any other state agency.]
  6.  To enter into any contract or agreement deemed necessary or advis-
able after consultation with appropriate state agencies for carrying out
the objects and purposes of state university  without  prior  review  or
approval by any state officer or agency other than the state comptroller
and  the  attorney  general  including  contracts with non-profit corpo-
rations organized by officers, employees, alumni or  students  of  state
university  for  the  furtherance  of its ACADEMIC objects and purposes.
Contracts or agreements entered into  with  the  federal  government  to
enable participation in federal student loan programs, including any and
all  instruments  required  thereunder,  shall  not  be  subject  to the
requirements of section forty-one of the state  finance  law;  provided,
however,  that  the  state  shall  not  be liable for any portion of any
defaults which it has agreed to assume pursuant to any such agreement in
an amount in excess of money appropriated or otherwise  lawfully  avail-
able therefor at the time the liability for payment arises. [The forego-
ing  notwithstanding,  any  contract made for or by the state university
for the purchase of: (i) materials, equipment  and  supplies,  including
computer   equipment;   (ii)  motor  vehicles;  (iii)  construction  and
construction-related services contracts; and (iv) printing shall not  be
subject to prior approval by any other state officer or agency.]
  §  3.  Paragraph  b  of subdivision 16 of section 355 of the education
law, as amended by section 1 of subpart C of part D of chapter 58 of the
laws of 2011, is amended to read as follows:
  b. Notwithstanding the provisions of subdivision two  of  section  one
hundred twelve of the state finance law[,] RELATING TO THE DOLLAR THRES-
HOLD  REQUIRING THE COMPTROLLER'S APPROVAL OF CONTRACTS, subdivision six
of section one hundred sixty-three of the state finance law [and section
sixty-three of the  executive  law  (i)]  authorize  contracts  for  the
purchase  of  goods for state university health care facilities [without
prior  approval  by  any  other  state  officer  or  agency,]  including
contracts  for  joint  or  group  purchasing  arrangements  of goods, in
accordance with procedures and requirements  found  in  paragraph  a  of
subdivision  five  of  this  section[,  and (ii) authorize contracts for
services] which do not exceed  seventy-five  thousand  dollars  [without
prior  approval  by any other state officer or agency in accordance with
procedures and requirements found in paragraph a of subdivision five  of
this  section]. Contracts authorized pursuant to this paragraph shall be
subject to article fourteen of the civil service law and the  applicable
provisions  of  agreements  between the state and employee organizations
pursuant to article fourteen of the civil service law.
  The trustees are authorized to negotiate annually with the state comp-
troller increases in the aforementioned dollar limits.
  § 4. Subdivision 12 of section 373 of the education law, as amended by
section 2 of subpart A of part D of chapter 58 of the laws of  2011,  is
amended to read as follows:

S. 3984                             5

  12.  To procure and execute contracts, lease agreements, and all other
instruments necessary or convenient for the exercise  of  its  corporate
powers and the fulfillment of its corporate purposes under this article.
[Notwithstanding  subdivision  two  of section one hundred twelve of the
state  finance  law  or any other law to the contrary, fund procurements
shall not be subject to the prior approval of any state officer or agen-
cy;]
  § 5. Subdivisions a and a-1 of section  6218  of  the  education  law,
subdivision  a  as  amended and subdivision a-1 as added by section 2 of
subpart B of part D of chapter 58 of the laws of 2011, subparagraph  (i)
of  paragraph  1  of subdivision a as amended by section 33 of part L of
chapter 55 of the laws of 2012, are amended to read as follows:
  a. Notwithstanding the provisions of subdivision two  of  section  one
hundred  twelve  and sections one hundred fifteen, one hundred sixty-one
and one hundred sixty-three of the state finance law and sections  three
and  six  of the New York state printing and public documents law or any
other law to  the  contrary,  the  city  university  is  authorized  and
empowered to:
  [(1)]  (i)  purchase  materials;  proprietary  electronic  information
resources, including, but not limited  to,  academic,  professional  and
industry  journals,  reference  handbooks and manuals, research tracking
tools, indexes and abstracts;  and  equipment  and  supplies,  including
computer  equipment  and  motor  vehicles, WHERE THE AMOUNT FOR A SINGLE
PURCHASE DOES NOT EXCEED FIFTY THOUSAND DOLLARS, (ii) execute  contracts
for  [construction and construction-related services contracts] SERVICES
TO AN AMOUNT NOT EXCEEDING FIFTY THOUSAND DOLLARS,  and  (iii)  contract
for  printing TO AN AMOUNT NOT EXCEEDING FIFTY THOUSAND DOLLARS, without
prior approval by any other state officer  or  agency,  but  subject  to
rules  and regulations OR GUIDELINES of the state comptroller not other-
wise inconsistent with the provisions of this section and in  accordance
with the guidelines promulgated by the city university board of trustees
after  consultation  with the state comptroller.  IN ADDITION, THE TRUS-
TEES ARE AUTHORIZED TO ANNUALLY NEGOTIATE  WITH  THE  STATE  COMPTROLLER
INCREASES  IN  THE AFOREMENTIONED DOLLAR LIMITS AND THE EXEMPTION OF ANY
ARTICLES, CATEGORIES OF  ARTICLES  OR  COMMODITIES  FROM  THESE  LIMITS.
GUIDELINES  PROMULGATED  BY THE CITY UNIVERSITY BOARD OF TRUSTEES SHALL,
TO THE EXTENT PRACTICABLE, REQUIRE THAT COMPETITIVE PROPOSALS BE  SOLIC-
ITED  FOR  PURCHASES,  AND SHALL INCLUDE REQUIREMENTS THAT PURCHASES AND
CONTRACTS AUTHORIZED UNDER THIS SECTION BE AT THE LOWEST POSSIBLE PRICE.
  [(2) execute contracts for services to an amount not exceeding  twenty
thousand  dollars  without  prior approval by any other state officer or
agency, but subject to rules and regulations of  the  state  comptroller
not  otherwise  inconsistent  with the provisions of this section and in
accordance with the guidelines promulgated by the city university  board
of  trustees after consultation with the state comptroller. In addition,
the trustees,  after  consultation  with  the  commissioner  of  general
services,  are  authorized  to  annually  negotiate with the state comp-
troller increases in the aforementioned dollar limits and the  exemption
of any services or categories of services from these limits.
  a-1.  Guidelines  promulgated by the city university board of trustees
shall, to the extent practicable, require that competitive proposals  be
solicited  for  purchases, and shall include requirements that purchases
and contracts authorized under this section be at the  lowest  available
price.]
  § 6. Section 6283 of the education law is REPEALED.

S. 3984                             6

  §  7.  This act shall take effect immediately; provided, however, that
the amendments to subdivisions 5 and 6 and paragraph b of subdivision 16
of section 355, subdivision 12 of section 373, and  subdivisions  a  and
a-1  of  section  6218 of the education law made by sections two, three,
four  and  five  of  this  act  shall  not affect the expiration of such
provisions pursuant to section 4 of subpart B of part D of chapter 58 of
the laws of 2011, as amended, and shall be deemed to expire therewith.

                                 PART B

  Section 1. Subdivision 1 of section 2879  of  the  public  authorities
law,  as  amended by chapter 564 of the laws of 1988, is amended to read
as follows:
  1. Every public authority and public benefit corporation,  a  majority
of  the  members  of  which  consist  of persons either appointed by the
governor or who serve as members by virtue of holding a civil office  of
the state, or a combination thereof, (such entities to be hereinafter in
this  section  referred  to  as "corporation") shall adopt by resolution
comprehensive guidelines CONSISTENT WITH THE METHODS OF EVALUATING  BIDS
AND  PROPOSALS  AND  AWARDING  OF  CONTRACTS  AUTHORIZED BY SECTIONS ONE
HUNDRED THIRTY-SIX-A, ONE HUNDRED SIXTY-THREE  AND  ONE  HUNDRED  SIXTY-
THREE-A OF THE STATE FINANCE LAW AND SUBDIVISION SIX OF SECTION EIGHT OF
THE  PUBLIC BUILDINGS LAW, UNLESS EXPRESSLY AUTHORIZED OTHERWISE BY LAW,
which detail the corporation's operative policy and instructions regard-
ing  the  use,  awarding,  monitoring  and  reporting   of   procurement
contracts.  Guidelines  approved  by  the  corporation shall be annually
reviewed and approved by the corporation.
  § 2. This act shall take effect immediately.

                                 PART C

  Section 1. The public authorities law  is  amended  by  adding  a  new
section 2882 to read as follows:
  §  2882.  THIRD  PARTY  CONTRACTING  PROHIBITED. 1. NO STATE AUTHORITY
SHALL ENTER INTO A CONTRACT OR AGREEMENT OR EXTEND AN EXISTING  CONTRACT
OR  AGREEMENT  WITH  ANOTHER ENTITY, UNLESS AUTHORIZED BY SPECIAL ACT OF
THE LEGISLATURE, (I) WHERE THE EXCLUSIVE OR PRIMARY ROLE OF SUCH  ENTITY
UNDER  THE  CONTRACT OR AGREEMENT IS TO PROCURE GOODS OR SERVICES OF ANY
KIND, INCLUDING, BUT NOT LIMITED TO, PUBLIC WORK,  CONSTRUCTION,  ALTER-
ATIONS,  OR  IMPROVEMENTS TO PUBLIC FACILITIES, GRANT CONTRACTS, EMPLOY-
MENT  CONTRACTS,  REVENUE  OR  CONCESSION  CONTRACTS,  THE  EXCHANGE  OF
PERSONAL  OR REAL PROPERTY, THE EXCHANGE OF SERVICES, OR ANY COMBINATION
THEREOF THROUGH A CONTRACT OR AGREEMENT WITH  A  THIRD  PARTY  AND  (II)
WHERE  SUCH ENTITY IS ACTING AS A PROCUREMENT CONDUIT, RATHER THAN BEING
DIRECTLY RESPONSIBLE FOR THE GOODS OR SERVICES.
  2. THE COMPTROLLER MAY PROMULGATE SUCH RULES AND REGULATIONS AS MAY BE
NECESSARY TO ENFORCE THIS SECTION, INCLUDING THE STANDARDS FOR DETERMIN-
ING WHETHER A CONTRACT IS PROHIBITED BY THIS SECTION.
  § 2. This act  shall  take  effect  immediately  and  shall  apply  to
contracts entered into on and after such date.

                                 PART D

  Section  1.  The  state finance law is amended by adding a new section
148 to read as follows:

S. 3984                             7

  § 148. COMPTROLLER APPROVAL OF THE RESEARCH FOUNDATION  OF  THE  STATE
UNIVERSITY OF NEW YORK CONTRACTS. NOTWITHSTANDING ANY OTHER PROVISION OF
LAW,  BEFORE  ANY CONTRACT MADE FOR OR BY THE RESEARCH FOUNDATION OF THE
STATE UNIVERSITY OF NEW YORK WHICH IS TO BE PAID IN  WHOLE  OR  IN  PART
FROM  MONIES  APPROPRIATED OR ASSIGNED BY THE STATE SHALL BE EXECUTED OR
BECOME EFFECTIVE, WHENEVER SUCH CONTRACT EXCEEDS ONE MILLION DOLLARS  IN
AMOUNT, IT SHALL FIRST BE APPROVED BY THE STATE COMPTROLLER AND FILED IN
HIS  OR  HER OFFICE. THE COMPTROLLER SHALL MAKE A FINAL WRITTEN DETERMI-
NATION WITH RESPECT TO APPROVAL OF SUCH CONTRACT WITHIN NINETY  DAYS  OF
THE  SUBMISSION  OF  SUCH CONTRACT TO HIS OR HER OFFICE UNLESS THE COMP-
TROLLER SHALL NOTIFY, IN WRITING, THE RESEARCH FOUNDATION OF  THE  STATE
UNIVERSITY OF NEW YORK PRIOR TO THE EXPIRATION OF THE NINETY DAY PERIOD,
AND  FOR  GOOD  CAUSE,  OF  THE  NEED  FOR AN EXTENSION OF NOT MORE THAN
FIFTEEN DAYS, OR A REASONABLE PERIOD OF TIME AGREED TO BY  THE  RESEARCH
FOUNDATION  OF  THE  STATE UNIVERSITY OF NEW YORK AND PROVIDED, FURTHER,
THAT SUCH WRITTEN DETERMINATION OR EXTENSION SHALL BE MADE PART  OF  THE
PROCUREMENT RECORD.
  §  2.  This  act  shall  take  effect  immediately  and shall apply to
contracts entered into on and after such date.

                                 PART E

  Section 1. Section 139-b of the state finance law is amended by adding
two new subdivisions 3 and 4 to read as follows:
  3. A STATE CONTRACTOR MAY BE DISQUALIFIED FROM SELLING TO  OR  SUBMIT-
TING  BIDS  TO  OR  RECEIVING AWARDS FROM OR ENTERING INTO ANY CONTRACTS
WITH THE STATE OR ANY PUBLIC DEPARTMENT, AGENCY OR OFFICIAL THEREOF,  OR
ANY  STATE  AUTHORITY,  AS  SUCH  TERM  IS DEFINED IN SECTION TWO OF THE
PUBLIC AUTHORITIES LAW, FOR GOODS, WORK OR SERVICES, FOR A  KNOWING  AND
WILLFUL  FAILURE  BY  A  PRINCIPAL TO TIMELY DISCLOSE TO THE CONTRACTING
STATE ENTITY CREDIBLE EVIDENCE OF FRAUD,  CONFLICT  OF  INTEREST,  UNDUE
INFLUENCE  OR  DURESS,  IN CONNECTION WITH THE AWARD OR PERFORMANCE OF A
STATE CONTRACT.
  4. THE OFFICE OF GENERAL SERVICES, UPON BEING NOTIFIED BY A  CONTRACT-
ING  STATE  ENTITY OF A POTENTIAL VIOLATION OF SUBDIVISION THREE OF THIS
SECTION, SHALL NOTIFY THE STATE CONTRACTOR THAT SUFFICIENT CAUSE  EXISTS
TO  BELIEVE  SUCH POTENTIAL VIOLATION HAS OCCURRED AND SHALL PROVIDE THE
STATE CONTRACTOR AN OPPORTUNITY TO BE HEARD IN RESPONSE.  IN  THE  EVENT
THAT  A  FINAL  DETERMINATION  IS MADE THAT THERE HAS BEEN A KNOWING AND
WILLFUL VIOLATION BY THE  STATE  CONTRACTOR,  SUCH  FINAL  DETERMINATION
SHALL  BE PUBLISHED ON THE OFFICE OF GENERAL SERVICE'S WEBSITE AND SHALL
RESULT IN THE STATE CONTRACTOR BEING DISQUALIFIED FROM RECEIVING  AWARDS
FROM OR ENTERING INTO ANY CONTRACTS WITH THE STATE OR ANY PUBLIC DEPART-
MENT,  AGENCY  OR OFFICIAL THEREOF, OR ANY STATE AUTHORITY, AS SUCH TERM
IS DEFINED IN SECTION TWO OF THE PUBLIC AUTHORITIES LAW, FOR GOODS, WORK
OR SERVICES FOR A PERIOD OF FIVE YEARS.   ANY  SUBSEQUENT  VIOLATION  OF
THIS  SECTION  WILL  RESULT  IN  THE  STATE CONTRACTOR BEING PERMANENTLY
DISQUALIFIED.
  § 2. The state finance law is amended by  adding  three  new  sections
139-l, 139-m and 139-n to read as follows:
  §  139-L.  CONFLICTS  OF  INTEREST  OF STATE OFFICERS AND EMPLOYEES IN
STATE PROCUREMENTS; PROHIBITED.   (A) NO STATE OFFICER  OR  EMPLOYEE  AS
DEFINED IN PUBLIC OFFICERS LAW SECTION SEVENTY-THREE SHALL:
  1.  HAVE  ANY INTEREST, FINANCIAL OR OTHERWISE, DIRECT OR INDIRECT, IN
ANY CONTRACT OTHER THAN ONE PERMISSIBLE PURSUANT  TO  PARAGRAPH  (A)  OF
SUBDIVISION FOUR OF SECTION SEVENTY-THREE OF THE PUBLIC OFFICERS LAW; OR

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  2.  TAKE  ANY  ACTION  OR  OTHERWISE INVOLVE HIMSELF OR HERSELF IN ANY
ACTIVITY WHICH, PURSUANT TO THE PROVISIONS OF THIS CHAPTER OR THE PUBLIC
OFFICERS LAW, WOULD BE DEEMED A CONFLICT OF INTEREST FOR A STATE OFFICER
OR EMPLOYEE THAT MAY REASONABLY BE EXPECTED TO IMPAIR THE  OFFICER'S  OR
EMPLOYEE'S INDEPENDENT JUDGMENT OR ABILITY TO ACT IMPARTIALLY AND IN THE
BEST INTEREST OF THE STATE, OR THAT MAY REASONABLY CREATE THE APPEARANCE
OF  IMPROPRIETY  THROUGH  THE  APPEARANCE  OF FAVORITISM OR PREFERENTIAL
TREATMENT.
  (B) IF SUCH CONFLICT OF INTEREST EXISTS, THE STATE OFFICER OR EMPLOYEE
MUST IMMEDIATELY RECUSE HIMSELF OR HERSELF IN WRITING FROM THE  PROCURE-
MENT  AND  SUBMIT  SUCH RECUSAL TO THE STATE AGENCY OFFICER IN CHARGE OF
PROCUREMENT AND CONTRACTING TO BE INCLUDED IN THE PROCUREMENT RECORD  TO
THE STATE AGENCY'S ETHICS OFFICER, AND TO THE AGENCY HEAD.
  §  139-M. STATE OFFICER OR EMPLOYEE CERTIFICATION; NO UNDUE INFLUENCE.
EACH STATE OFFICER OR EMPLOYEE AS DEFINED IN PUBLIC OFFICERS LAW SECTION
SEVENTY-THREE OR STATE CONSULTANT WHO EXERCISED DISCRETION  OR  DECISION
MAKING IN HOW A STATE CONTRACT WAS ADVERTISED, HOW THE BIDS OR PROPOSALS
WERE  EVALUATED,  HOW  THE  CONTRACTOR  WAS  SELECTED, OR WHO SIGNED THE
CONTRACT FOR THE AGENCY, SHALL CERTIFY IN WRITING THAT NO  UNDUE  INFLU-
ENCE  WAS  EXERTED  UPON  HIM OR HER, AND THAT TO THE BEST OF HIS OR HER
KNOWLEDGE THAT THERE IS A REASONABLE BASIS TO BELIEVE THAT THE  CONTRACT
WAS  NOT  PROCURED THROUGH FRAUD, DURESS OR UNDUE INFLUENCE. THE CERTIF-
ICATION SHALL BECOME PART OF THE PROCUREMENT RECORD.
  § 139-N. STATE CONTRACTOR CODE OF BUSINESS ETHICS AND  CONDUCT.    (A)
DEFINITIONS. FOR PURPOSES OF THIS SECTION:
  1.  THE  TERM  "STATE CONTRACTOR" SHALL MEAN ANY INDIVIDUAL, ORGANIZA-
TION, CORPORATION, SOLE PROPRIETORSHIP,  PARTNERSHIP,  NONPROFIT,  JOINT
VENTURE,  ASSOCIATION,  OR  ANY  COMBINATION THEREOF THAT IS PURSUING OR
CONDUCTING BUSINESS WITH AND/OR ON BEHALF OF A STATE AGENCY,  INCLUDING,
WITHOUT LIMITATION, CONSULTANTS, SUPPLIERS, MANUFACTURERS, AND ANY OTHER
VENDORS, BIDDERS OR PROPOSERS.
  2.  THE  TERM "STATE AGENCY" SHALL MEAN ANY STATE DEPARTMENT, OR DIVI-
SION, BOARD, COMMISSION, OR BUREAU OF ANY STATE DEPARTMENT.
  (B) POLICY. STATE CONTRACTORS MUST CONDUCT THEMSELVES WITH THE HIGHEST
DEGREE OF INTEGRITY AND HONESTY. NO STATE CONTRACTOR SHOULD TAKE  ACTION
TO VIOLATE OR CIRCUMVENT STATE PROCUREMENT OR ETHICS LAWS.
  (C)  STATE  CONTRACTOR  CODE OF BUSINESS ETHICS AND CONDUCT. RULE WITH
RESPECT TO CONFLICTS OF INTEREST. NO STATE CONTRACTOR  SHOULD  HAVE  ANY
INTEREST,  FINANCIAL  OR OTHERWISE, DIRECT OR INDIRECT, OR ENGAGE IN ANY
BUSINESS OR TRANSACTION OR PROFESSIONAL ACTIVITY OR INCUR ANY OBLIGATION
OF ANY  NATURE,  WHICH  IS  IN  SUBSTANTIAL  CONFLICT  WITH  THE  PROPER
EXECUTION OF DUTIES AND RESPONSIBILITIES UNDER THE STATE CONTRACT.
  (D) STANDARDS. 1. NO STATE CONTRACTOR SHOULD ENGAGE IN ANY BUSINESS OR
PROFESSIONAL ACTIVITY WHICH WILL IMPAIR HIS OR HER INDEPENDENCE OF JUDG-
MENT  IN  THE  EXERCISE  OF  DUTIES AND RESPONSIBILITIES UNDER THE STATE
CONTRACT.
  2. NO STATE CONTRACTOR SHOULD ENGAGE IN ANY BUSINESS  OR  PROFESSIONAL
ACTIVITY WHICH WILL REQUIRE HIM OR HER TO DISCLOSE CONFIDENTIAL INFORMA-
TION  ACQUIRED  BY  REASON OF PERFORMANCE OF DUTIES AND RESPONSIBILITIES
UNDER THE STATE CONTRACT NOR USE SUCH INFORMATION TO FURTHER HIS OR  HER
PERSONAL INTERESTS.
  3. NO STATE CONTRACTOR SHOULD ATTEMPT TO SECURE UNWARRANTED PRIVILEGES
OR EXEMPTIONS FOR HIMSELF OR HERSELF OR OTHERS, INCLUDING BUT NOT LIMIT-
ED  TO,  THE  MISAPPROPRIATION  TO  HIMSELF, HERSELF OR TO OTHERS OF THE
PROPERTY, SERVICES OR OTHER RESOURCES OF THE STATE FOR PRIVATE  BUSINESS
OR OTHER COMPENSATED NON-GOVERNMENTAL PURPOSES.

S. 3984                             9

  4. NO STATE CONTRACTOR SHOULD ENGAGE IN ANY TRANSACTION WITH ANY BUSI-
NESS ENTITY IN WHICH HE OR SHE HAS A DIRECT OR INDIRECT FINANCIAL INTER-
EST  THAT MIGHT REASONABLY TEND TO CONFLICT WITH THE PROPER DISCHARGE OF
HIS OR HER DUTIES AND RESPONSIBILITIES UNDER THE STATE CONTRACT.
  5. A STATE CONTRACTOR SHOULD NOT BY HIS OR HER CONDUCT GIVE REASONABLE
BASIS FOR THE IMPRESSION THAT ANY PERSON CAN IMPROPERLY INFLUENCE HIM OR
HER  OR  UNDULY  ENJOY HIS OR HER FAVOR IN THE PERFORMANCE OF HIS OR HER
OFFICIAL DUTIES UNDER THE CONTRACT, OR THAT HE OR SHE IS AFFECTED BY THE
KINSHIP, RANK, POSITION OR INFLUENCE OF ANY PARTY OR PERSON.
  6. A STATE CONTRACTOR SHOULD ABSTAIN FROM MAKING PERSONAL  INVESTMENTS
IN  ENTERPRISES  WHICH  HE  OR SHE HAS REASON TO BELIEVE MAY BE DIRECTLY
INVOLVED IN DECISIONS TO BE MADE BY HIM OR HER OR WHICH  WILL  OTHERWISE
CREATE SUBSTANTIAL CONFLICT BETWEEN HIS OR HER DUTY AND RESPONSIBILITIES
UNDER THE STATE CONTRACT AND HIS OR HER PRIVATE INTEREST.
  7.  A  STATE  CONTRACTOR SHOULD ENDEAVOR TO PURSUE A COURSE OF CONDUCT
WHICH WILL NOT RAISE SUSPICION THAT HE OR SHE IS LIKELY TO BE ENGAGED IN
ACTS IN VIOLATION OF STATE PROCUREMENT OR ETHICS LAWS.
  (E) VIOLATIONS. IN ADDITION TO ANY  PENALTY  CONTAINED  IN  ANY  OTHER
PROVISION  OF  LAW,  A  STATE AGENCY MAY, IN ITS DISCRETION, TERMINATE A
CONTRACT THAT WAS AWARDED IN  VIOLATION  OF  THE  REQUIREMENTS  OF  THIS
SECTION.  ANY  STATE CONTRACTOR WHO KNOWINGLY AND INTENTIONALLY VIOLATES
THE STATE CONTRACTOR CODE  OF  BUSINESS  ETHICS  AND  CONDUCT  SHALL  BE
SUBJECT  TO  A  CIVIL  PENALTY  IN  AN AMOUNT NOT TO EXCEED TEN THOUSAND
DOLLARS AND THE VALUE OF ANY  BENEFIT  RECEIVED  AS  A  RESULT  OF  SUCH
VIOLATION.
  §  3.  Article  1 of the public authorities law is amended by adding a
new title 3 to read as follows:
                                 TITLE 3
 ETHICAL STANDARDS FOR STATE AUTHORITIES AND STATE AUTHORITY CONTRACTORS

SECTION 10. CONFLICTS OF INTEREST  OF  STATE  AUTHORITY  BOARD  MEMBERS,
              OFFICERS  AND EMPLOYEES IN AUTHORITY PROCUREMENTS; PROHIB-
              ITED.
        11. STATE AUTHORITY BOARD MEMBER, OFFICER AND  EMPLOYEE  CERTIF-
              ICATION; NO UNDUE INFLUENCE
        12. CODE  OF  BUSINESS  ETHICS  AND  CONDUCT FOR STATE AUTHORITY
              CONTRACTORS.
        13. STATE AUTHORITY CONTRACTOR DISQUALIFICATION.
  § 10. CONFLICTS OF INTEREST OF STATE AUTHORITY BOARD MEMBERS, OFFICERS
AND EMPLOYEES IN AUTHORITY PROCUREMENTS; PROHIBITED. 1. NO STATE AUTHOR-
ITY BOARD MEMBER, OFFICER OR EMPLOYEE SHALL WITH RESPECT  TO  ANY  STATE
CONTRACT OR STATE AUTHORITY CONTRACT:
  (A)  HAVE ANY INTEREST, FINANCIAL OR OTHERWISE, DIRECT OR INDIRECT, IN
ANY CONTRACT OTHER THAN ONE PERMISSIBLE PURSUANT  TO  PARAGRAPH  (A)  OF
SUBDIVISION FOUR OF SECTION SEVENTY-THREE OF THE PUBLIC OFFICERS LAW; OR
  (B)  TAKE  ANY  ACTION  OR OTHERWISE INVOLVE HIMSELF OR HERSELF IN ANY
ACTIVITY WHICH, PURSUANT TO THE PROVISIONS OF THIS CHAPTER OR THE PUBLIC
OFFICERS LAW, WOULD BE DEEMED A CONFLICT OF INTEREST THAT MAY REASONABLY
BE EXPECTED TO IMPAIR THE BOARD MEMBER'S, OFFICER'S OR EMPLOYEE'S  INDE-
PENDENT  JUDGMENT OR ABILITY TO ACT IMPARTIALLY AND IN THE BEST INTEREST
OF THE STATE AUTHORITY, OR THAT MAY REASONABLY CREATE THE APPEARANCE  OF
IMPROPRIETY  THROUGH THE APPEARANCE OF FAVORITISM OR PREFERENTIAL TREAT-
MENT.
  2. IF SUCH CONFLICT OF INTEREST  EXISTS,  THE  STATE  AUTHORITY  BOARD
MEMBER,  OFFICER  OR EMPLOYEE MUST IMMEDIATELY RECUSE HIMSELF OR HERSELF
IN WRITING AND SUBMIT SUCH RECUSAL TO THE STATE AUTHORITY'S ETHICS OFFI-

S. 3984                            10

CER AND ANY  OFFICIAL  OR  COMMITTEE  CHARGED  WITH  OVERSEEING  ETHICAL
CONDUCT  IN THE AUTHORITY, THE CHIEF EXECUTIVE OFFICIAL OF THE AUTHORITY
AND THE BOARD CHAIR, AS APPROPRIATE, THE APPOINTING  OFFICIAL,  AND  THE
OFFICER  IN CHARGE OF THE AUTHORITY'S PROCUREMENTS TO BE INCLUDED IN THE
STATE AUTHORITY'S PROCUREMENT RECORD. ANY STATE AUTHORITY  BOARD  MEMBER
WHO  SUBMITS SUCH RECUSAL SHALL ALSO SUBMIT SUCH RECUSAL TO THE APPOINT-
ING OFFICIAL WITH RESPONSIBILITY FOR  SUCH  BOARD  MEMBER'S  APPOINTMENT
AND,  IN  THE  CASE  OF BOARD MEMBERS APPOINTED AT THE RECOMMENDATION OF
ANOTHER OFFICIAL, MUST ALSO SUBMIT  SUCH  RECUSAL  TO  THE  RECOMMENDING
OFFICIAL.
  § 11. STATE AUTHORITY BOARD MEMBER, OFFICER OR EMPLOYEE CERTIFICATION;
NO  UNDUE  INFLUENCE.  EACH  STATE  AUTHORITY  BOARD  MEMBER, OFFICER OR
EMPLOYEE WHO EXERCISED DISCRETION OR DECISION  MAKING  IN  HOW  A  STATE
AUTHORITY CONTRACT WAS ADVERTISED, HOW THE BIDS OR PROPOSALS WERE EVALU-
ATED,  HOW  THE  CONTRACTOR WAS SELECTED, OR WHO SIGNED THE CONTRACT FOR
THE STATE AUTHORITY, SHALL CERTIFY IN WRITING THAT  NO  UNDUE  INFLUENCE
WAS  EXERTED  UPON  HIM OR HER, AND THAT TO THE BEST OF HIS OR HER KNOW-
LEDGE THAT THERE IS A REASONABLE BASIS TO BELIEVE THAT THE CONTRACT  WAS
NOT PROCURED THROUGH FRAUD, DURESS OR UNDUE INFLUENCE. THE CERTIFICATION
SHALL BECOME PART OF THE STATE AUTHORITY'S PROCUREMENT RECORD.
  § 12. CODE OF BUSINESS ETHICS AND CONDUCT FOR STATE AUTHORITY CONTRAC-
TORS.    1.  POLICY. STATE AUTHORITY CONTRACTORS AND SUBCONTRACTORS MUST
CONDUCT THEMSELVES WITH THE HIGHEST DEGREE OF INTEGRITY AND HONESTY.  NO
STATE  AUTHORITY  CONTRACTOR SHOULD TAKE ACTION TO VIOLATE OR CIRCUMVENT
STATE PROCUREMENT OR ETHICS LAWS. FOR PURPOSES OF THIS SECTION, THE TERM
"STATE AUTHORITY CONTRACTOR" SHALL MEAN  ANY  INDIVIDUAL,  ORGANIZATION,
CORPORATION, SOLE PROPRIETORSHIP, PARTNERSHIP, NONPROFIT, JOINT VENTURE,
ASSOCIATION,  OR  ANY COMBINATION THEREOF THAT IS PURSUING OR CONDUCTING
BUSINESS WITH AND/OR ON BEHALF OF A STATE AUTHORITY, INCLUDING,  WITHOUT
LIMITATION,   CONSULTANTS,   SUPPLIERS,  MANUFACTURERS,  AND  ANY  OTHER
VENDORS, BIDDERS OR PROPOSERS.
  2. CODE OF BUSINESS ETHICS AND CONDUCT FOR  STATE  AUTHORITY  CONTRAC-
TORS.  RULE  WITH  RESPECT  TO CONFLICTS OF INTEREST. NO STATE AUTHORITY
CONTRACTOR SHOULD HAVE ANY INTEREST, FINANCIAL OR OTHERWISE,  DIRECT  OR
INDIRECT,  OR  ENGAGE  IN  ANY  BUSINESS  OR TRANSACTION OR PROFESSIONAL
ACTIVITY OR INCUR ANY OBLIGATION OF ANY NATURE, WHICH IS IN  SUBSTANTIAL
CONFLICT  WITH THE PROPER EXECUTION OF DUTIES AND RESPONSIBILITIES UNDER
THE CONTRACT.
  3. STANDARDS. (A) NO STATE AUTHORITY CONTRACTOR SHOULD ENGAGE  IN  ANY
BUSINESS OR PROFESSIONAL ACTIVITY WHICH WILL IMPAIR HIS OR HER INDEPEND-
ENCE  OF  JUDGMENT  IN THE EXERCISE OF DUTIES AND RESPONSIBILITIES UNDER
THE CONTRACT.
  (B) NO STATE AUTHORITY CONTRACTOR SHOULD ENGAGE  IN  ANY  BUSINESS  OR
PROFESSIONAL  ACTIVITY  WHICH WILL REQUIRE HIM OR HER TO DISCLOSE CONFI-
DENTIAL INFORMATION ACQUIRED BY REASON  OF  PERFORMANCE  OF  DUTIES  AND
RESPONSIBILITIES UNDER THE CONTRACT, NOR USE SUCH INFORMATION TO FURTHER
HIS OR HER PERSONAL INTERESTS.
  (C) NO STATE AUTHORITY CONTRACTOR SHOULD ATTEMPT TO SECURE UNWARRANTED
PRIVILEGES OR EXEMPTIONS FOR HIMSELF OR HERSELF OR OTHERS, INCLUDING BUT
NOT LIMITED TO, THE MISAPPROPRIATION TO HIMSELF, HERSELF OR TO OTHERS OF
THE  PROPERTY,  SERVICES  OR  OTHER RESOURCES OF THE STATE AUTHORITY FOR
PRIVATE BUSINESS OR OTHER COMPENSATED NON-GOVERNMENTAL PURPOSES.
  (D) NO STATE AUTHORITY CONTRACTOR SHOULD  ENGAGE  IN  ANY  TRANSACTION
WITH  ANY  BUSINESS  ENTITY  IN WHICH HE OR SHE HAS A DIRECT OR INDIRECT
FINANCIAL INTEREST THAT MIGHT REASONABLY TEND TO CONFLICT WITH THE PROP-

S. 3984                            11

ER DISCHARGE OF  HIS  OR  HER  DUTIES  AND  RESPONSIBILITIES  UNDER  THE
CONTRACT.
  (E) A STATE AUTHORITY CONTRACTOR SHOULD NOT BY HIS OR HER CONDUCT GIVE
REASONABLE  BASIS  FOR  THE  IMPRESSION  THAT  ANY PERSON CAN IMPROPERLY
INFLUENCE HIM OR HER OR UNDULY ENJOY HIS OR HER FAVOR IN THE PERFORMANCE
OF HIS OR HER DUTIES UNDER THE CONTRACT, OR THAT HE OR SHE  IS  AFFECTED
BY THE KINSHIP, RANK, POSITION OR INFLUENCE OF ANY PARTY OR PERSON.
  (F)  A  STATE AUTHORITY CONTRACTOR SHOULD ABSTAIN FROM MAKING PERSONAL
INVESTMENTS IN ENTERPRISES WHICH HE OR SHE HAS REASON TO BELIEVE MAY  BE
DIRECTLY  INVOLVED  IN  DECISIONS TO BE MADE BY HIM OR HER OR WHICH WILL
OTHERWISE CREATE SUBSTANTIAL  CONFLICT  BETWEEN  HIS  OR  HER  DUTY  AND
RESPONSIBILITIES UNDER THE CONTRACT AND HIS OR HER PRIVATE INTEREST.
  (G) A STATE AUTHORITY CONTRACTOR SHOULD ENDEAVOR TO PURSUE A COURSE OF
CONDUCT  WHICH  WILL  NOT RAISE SUSPICION THAT HE OR SHE IS LIKELY TO BE
ENGAGED IN ACTS IN VIOLATION OF STATE PROCUREMENT OR ETHICS LAWS.
  4. VIOLATIONS. IN ADDITION TO  ANY  PENALTY  CONTAINED  IN  ANY  OTHER
PROVISION  OF LAW, THE PROCURING STATE AUTHORITY MAY, IN ITS DISCRETION,
TERMINATE A CONTRACT THAT WAS AWARDED IN VIOLATION OF  THE  REQUIREMENTS
OF THIS SECTION.
  ANY   STATE  AUTHORITY  CONTRACTOR  WHO  KNOWINGLY  AND  INTENTIONALLY
VIOLATES THE CODE OF BUSINESS ETHICS AND  CONDUCT  FOR  STATE  AUTHORITY
CONTRACTORS  SHALL  BE  SUBJECT  TO  A CIVIL PENALTY IN AN AMOUNT NOT TO
EXCEED TEN THOUSAND DOLLARS AND THE VALUE OF ANY BENEFIT RECEIVED  AS  A
RESULT OF SUCH VIOLATION.
  § 13. STATE AUTHORITY CONTRACTOR DISQUALIFICATION.  1. A STATE AUTHOR-
ITY CONTRACTOR MAY BE DISQUALIFIED FROM SELLING TO OR SUBMITTING BIDS TO
OR  RECEIVING  AWARDS  FROM  OR ENTERING INTO ANY CONTRACTS WITH A STATE
AUTHORITY FOR A KNOWING AND WILLFUL FAILURE BY  A  PRINCIPAL  TO  TIMELY
DISCLOSE  TO THE CONTRACTING STATE AUTHORITY CREDIBLE EVIDENCE OF FRAUD,
CONFLICT OF INTEREST, UNDUE INFLUENCE OR DURESS IN CONNECTION  WITH  THE
AWARD OR PERFORMANCE OF A STATE AUTHORITY CONTRACT.
  2.  IF  A  STATE  AUTHORITY  HAS  SUFFICIENT  CAUSE  TO BELIEVE THAT A
VIOLATION OF SUBDIVISION ONE OF THIS SECTION  HAS  OCCURRED,  THE  STATE
AUTHORITY  SHALL NOTIFY THE STATE AUTHORITY CONTRACTOR AND SHALL PROVIDE
THE STATE AUTHORITY CONTRACTOR AN OPPORTUNITY TO BE HEARD  IN  RESPONSE.
IN  THE  EVENT THAT THERE IS A FINAL DETERMINATION THAT THERE HAS BEEN A
KNOWING AND WILLFUL VIOLATION BY THE STATE  AUTHORITY  CONTRACTOR,  SUCH
FINAL DETERMINATION SHALL RESULT IN THE STATE AUTHORITY CONTRACTOR BEING
DISQUALIFIED  FROM  SELLING TO OR SUBMITTING BIDS TO OR RECEIVING AWARDS
FROM OR ENTERING INTO ANY CONTRACTS WITH A STATE AUTHORITY FOR A  PERIOD
OF  FIVE  YEARS. ANY SUBSEQUENT VIOLATION OF THIS SECTION WILL RESULT IN
THE STATE AUTHORITY CONTRACTOR BEING PERMANENTLY DISQUALIFIED. THE STATE
AUTHORITY SHALL PROVIDE NOTICE OF ANY DISQUALIFICATION PURSUANT TO  THIS
SECTION  TO THE OFFICE OF GENERAL SERVICES WHO SHALL PUBLISH SUCH NOTICE
ON ITS WEBSITE.
  § 4. This act shall take effect immediately.

                                 PART F

  Section 1. Subdivision 3 of section 141 of  the  economic  development
law,  as  amended  by  section 14 of part L of chapter 55 of the laws of
2012, is amended as follows:
  3. "Procurement contract" shall mean  any  written  agreement  entered
into   by   an  agency  for  the  acquisition  of  goods,  services,  or
construction of any kind, INCLUDING AGREEMENTS AWARDED BY AN AGENCY TO A
SINGLE SOURCE, A SOLE SOURCE OR PURSUANT TO ANY OTHER METHOD OF PROCURE-

S. 3984                            12

MENT THAT IS NOT COMPETITIVE, in the actual or estimated amount of fifty
thousand dollars or more. The term does not  include  an  agreement  for
employment in the civil service.
  §  2.  Paragraph (c) of subdivision 2 and subdivision 5 of section 142
of the economic development law, as amended by chapter 137 of  the  laws
of  2008,  are amended and a new paragraph (d) is added to subdivision 2
to read as follows:
  (c) for all [other] procurement contracts issued by agencies  PURSUANT
TO A COMPETITIVE METHOD OF PROCUREMENT INCLUDING, BUT NOT LIMITED TO, AN
INVITATION  FOR  BID,  REQUEST FOR PROPOSALS OR OTHER MEANS OF SOLICITA-
TION, FOR AN AMOUNT IN EXCESS OF FIFTY THOUSAND DOLLARS (i) the name  of
the contracting agency; (ii) the contract identification number; (iii) a
brief  description  of  the goods or services sought, the location where
goods are to be delivered or services provided and  the  contract  term;
(iv)  the  address  where bids or proposals are to be submitted; (v) the
date when bids or proposals are due; (vi) a description of any eligibil-
ity or qualification requirement or preference; (vii) a statement as  to
whether  the contract requirements may be fulfilled by a subcontracting,
joint venture, or co-production arrangement; (viii) any  other  informa-
tion deemed useful to potential contractors; (ix) the name, address, and
telephone  number  of the person to be contacted for additional informa-
tion; and (x) a statement as to whether the goods or services sought had
in the immediately preceding  three  year  period  been  supplied  by  a
foreign business enterprise.
  (D)  FOR  ALL  PROCUREMENT  CONTRACTS  ISSUED  BY AGENCIES TO A SINGLE
SOURCE, A SOLE SOURCE OR PURSUANT TO ANY  OTHER  METHOD  OF  PROCUREMENT
THAT  IS  NOT  COMPETITIVE,  FOR  AN  AMOUNT IN EXCESS OF FIFTY THOUSAND
DOLLARS (I) THE NAME OF THE CONTRACTING AGENCY; (II)  THE  NAME  OF  THE
RECIPIENT  OF  THE  INTENDED  CONTRACT,  IF KNOWN AT THE TIME; (III) THE
CONTRACT IDENTIFICATION NUMBER; (IV) A BRIEF DESCRIPTION OF THE GOODS OR
SERVICES SOUGHT, THE  LOCATION  WHERE  GOODS  ARE  TO  BE  DELIVERED  OR
SERVICES PROVIDED AND THE CONTRACT TERM; (V) A DESCRIPTION OF ANY ELIGI-
BILITY  OR  QUALIFICATION REQUIREMENT OR PREFERENCE; (VI) A STATEMENT AS
TO WHETHER THE CONTRACT REQUIREMENTS MAY BE FULFILLED BY A  SUBCONTRACT-
ING, JOINT VENTURE, OR CO-PRODUCTION ARRANGEMENT; (VII) ANY OTHER INFOR-
MATION DEEMED USEFUL TO POTENTIAL CONTRACTORS; (VIII) THE NAME, ADDRESS,
AND TELEPHONE NUMBER OF THE PERSON TO BE CONTACTED FOR ADDITIONAL INFOR-
MATION;  AND (IX) A STATEMENT AS TO WHETHER THE GOODS OR SERVICES SOUGHT
HAD IN THE IMMEDIATELY PRECEDING THREE YEAR PERIOD BEEN  SUPPLIED  BY  A
FOREIGN BUSINESS ENTERPRISE.
  5.  In  addition  to any other notice of procurement contract opportu-
nities required in this section, for procurement contracts in the amount
of two hundred thousand dollars or more to be  awarded  by  all  [state]
agencies,  each  agency  shall  prepare for inclusion in the procurement
opportunities newsletter (a) a semi-annual listing of projected procure-
ment purchases by category, INCLUDING PROJECTED PURCHASES TO BE  AWARDED
TO  A  SINGLE  SOURCE,  A SOLE SOURCE OR PURSUANT TO ANY OTHER METHOD OF
PROCUREMENT THAT IS NOT COMPETITIVE; (b) an explanation of how to  apply
for  placement  on  any  bidder list maintained by the agency; and (c) a
description of procedures for providing advance notification by mail  to
individuals or business entities on such bidder lists of any request for
proposals,  in  accordance with rules and regulations promulgated by the
agency. The  commissioner,  in  consultation  with  each  agency,  shall
arrange a schedule for each agency's semi-annual listing.
  §  3.  Subdivisions 1 and 4 of section 143 of the economic development
law, subdivision 1 as added by chapter 564  of  the  laws  of  1988  and

S. 3984                            13

subdivision 4 as added by section 16 of part L of chapter 55 of the laws
of 2012, are amended to read as follows:
  1.  Prior  to  awarding  any  procurement  contract, each agency shall
submit to the commissioner information sufficient to enable  publication
of the notices of procurement contract opportunities described in subdi-
vision two of section one hundred forty-two of this article. Such infor-
mation  shall  be  submitted  to  the commissioner in sufficient time to
allow a minimum of fifteen business days  between  publication  of  such
notice  and  the  date on which a bid or proposal is due, except where a
shorter period is specifically authorized by law PROVIDED, HOWEVER:
  (A) IN THE CASE OF PROCUREMENT CONTRACTS ISSUED BY  A  PUBLIC  BENEFIT
CORPORATION  OR  STATE  AUTHORITY  WHOSE  CONTRACTS AND PAYMENTS ARE NOT
APPROVED AND PRE-AUDITED BY THE COMPTROLLER, TO A SINGLE SOURCE, A  SOLE
SOURCE  OR  PURSUANT  TO  ANY  OTHER  METHOD  OF PROCUREMENT THAT IS NOT
COMPETITIVE, IN SUFFICIENT TIME TO ALLOW A MINIMUM OF  FIFTEEN  BUSINESS
DAYS  BETWEEN PUBLICATION OF SUCH NOTICE AND THE DATE ON WHICH THE STATE
AUTHORITY OR PUBLIC BENEFIT  CORPORATION  INTENDS  TO  MAKE  A  CONTRACT
AWARD; OR
  (B) IN THE CASE OF PROCUREMENT CONTRACTS ISSUED BY AGENCIES OTHER THAN
PUBLIC  BENEFIT CORPORATIONS OR STATE AUTHORITIES, TO A SINGLE SOURCE, A
SOLE SOURCE OR PURSUANT TO ANY OTHER METHOD OF PROCUREMENT THAT  IS  NOT
COMPETITIVE,  IN  SUFFICIENT TIME TO ALLOW A MINIMUM OF FIFTEEN BUSINESS
DAYS BETWEEN PUBLICATION OF SUCH NOTICE AND THE DATE THE AGENCY  INTENDS
TO DELIVER THE REQUEST FOR EXEMPTION FROM ADVERTISING TO THE STATE COMP-
TROLLER.
  4.  At the time an agency enters into a contract with a single or sole
source provider pursuant to section one hundred sixty-three of the state
finance law, OR PURSUANT TO ANY OTHER METHOD OF PROCUREMENT THAT IS  NOT
COMPETITIVE,  for  an  amount  in excess of fifty thousand dollars, such
agency shall submit an announcement of the intended contract for  inclu-
sion  in the procurement opportunities newsletter, and shall specify the
recipient of the contract.
  § 4. Section 146 of the economic development law, as amended by  chap-
ter 173 of the laws of 2014, is amended to read as follows:
  §  146.  Approval of comptroller. The comptroller shall not approve or
file any procurement contract for the acquisition of goods or  services,
OR  CONSTRUCTION OF ANY KIND, in the amount of fifty thousand dollars or
more unless notice as provided in section one hundred forty-two of  this
article shall first have been published in the procurement opportunities
newsletter  at  least fifteen business days prior to the date on which a
bid or proposal was due OR, IN THE CASE OF PROCUREMENT CONTRACTS  ISSUED
TO  A  SINGLE  SOURCE,  A SOLE SOURCE OR PURSUANT TO ANY OTHER METHOD OF
PROCUREMENT THAT IS NOT COMPETITIVE,  AT  LEAST  FIFTEEN  BUSINESS  DAYS
PRIOR TO THE DATE ON WHICH THE AGENCY INTENDS TO DELIVER THE REQUEST FOR
EXEMPTION  FROM  ADVERTISING TO THE STATE COMPTROLLER AND ENTER INTO THE
CONTRACT.  Provided, however, such requirement of publication of advance
notice shall not apply to contracts exempt from such  requirement  under
section  one  hundred forty-four of this article; provided further, that
the comptroller shall not be required to disapprove a contract if he  or
she  determines  that  there  has  been  substantial compliance with the
requirements of section one hundred forty-two and  section  one  hundred
forty-three  of  this  article. The foregoing provisions of this section
shall not be construed to limit, in any manner, the right of  the  comp-
troller  to demand evidence of adequate competition or such other proofs
as he or she may require in the discharge of his or her responsibilities

S. 3984                            14

pursuant to section one hundred twelve of the state finance law  or  any
other provision of law.
  §  5.  This  act  shall  take  effect  immediately  and shall apply to
procurements initiated on and after such date.
  § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be  adjudged  by  any  court  of
competent  jurisdiction  to  be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall  be  confined  in
its  operation  to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would  have  been  enacted  even  if  such
invalid provisions had not been included herein.
  §  3.  This  act shall take effect immediately provided, however, that
the applicable effective date of Parts A through F of this act shall  be
as specifically set forth in the last section of such Parts.