BILL NUMBER:  S5571

 TITLE OF BILL :

An act to amend the state finance law, in relation to prohibiting any
state agency or public authority from contracting for goods and
services with a contractor or a subsidiary thereof, when the
contractor or a subsidiary thereof also provides consulting services
or products relating to the activity for which the state agency or
public authority seeks to contract

 PURPOSE :

To prohibit entities that state agencies contract with from further
profiting by selling goods or services related to the services they
provide under the contract.

 SUMMARY OF PROVISIONS :

Section one adds a new State Finance Law § 139-1 to disqualify any
entity or subsidiary thereof from contracting with a state department,
board, bureau, commission, division, office, council, committee or
public authority when the entity or subsidiary also provides
consulting services or products relating to the activity regulated by
the agency or authority for which it seeks to contract.

              

Section two provides that the act shall take effect immediately.

 JUSTIFICATION :

It is becoming more and more common for New York State agencies to
outsource certain obligations or responsibilities and to contract with
outside firms to conduct studies, research and audits. It is
imperative that the entities performing these tasks for the state do
not also have a self interest in the activity for which they are
contracted. For example, the state routinely seeks contractors to
develop, run and maintain information systems for the state. These
contractors should not be able to take advantage of state contracts by
providing services or products to the public pertaining to the very
systems that they develop, implement and/or oversee for the state.

This legislation will prohibit such practices by disqualifying any
entity from state contracts when the entity also provides goods or
services related to the very activity that the agency or authority
seeks to contract for. Thus, ensuring that entities the state
contracts with are not motivated by their own interests when carrying
out the tasks they are paid to perform on behalf of the state and that
they are not further profiting from their performance of state
contracts.

 LEGISLATIVE HISTORY :

2015-16: S.6312 - Passed Senate

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
Immediately.