NY State Senate Bill 2021-S3661

Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
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Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to finance
Jan 30, 2021	referred to finance

co-Sponsors

2021-S3661 (ACTIVE) - Details

See Assembly Version of this Bill:: A3830
Current Committee:: Senate Finance
Law Section:: State Finance Law
Laws Affected:: Amd §§162 & 179-f, St Fin L; amd §4-a, Exec L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S8425, A11146
2019-2020: S5490, A1622
2023-2024: A2503

2021-S3661 (ACTIVE) - Summary

Enacts the comprehensive diversity in procurement and employment act to encourage full and equal participation in public sector business opportunities across the state.

2021-S3661 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3661

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the state finance law and the executive law, in relation
to the comprehensive diversity in procurement and employment act of 2019

 
PURPOSE OR GENERAL IDEA OF BILL:

Relates to comprehensive diversity in procurement and employment act of
2019.

 
SUMMARY OF PROVISIONS:

Section 1 under section 162 of the state finance law would state that
payments to agencies for the blind or other severely disabled and veter-
ans' workshops shall be fifteen days after receipt of an invoice with
certain requirements.

Section 2 under subdivision 2 and 3 of section 179-f of the state

finance law would state that payments to agencies for preferred source,
service disabled veteran-owned business, or minority and women owned
business enterprises.

Section 3 amends the executive law to expand the responsibility of the
chief diversity officer to also include preferred source and disabled
veteran-owned business enterprises.

Section 4 is the effective date.

 
JUSTIFICATION:

New York State has historically been a leader in inclusion and the fight
for full participation of all segments of society in our economy and
communities. Many specific initiatives in New York have resulted in real
progress in certain areas. Despite the best efforts of legislative
bodies, economic development officials, and program staff at various
levels of government, diverse segments of New York's population continue
to struggle to find meaningful employment, even in good economic times.
People who are blind or legally blind, people with severe disabilities,
and veterans returning from service are among those who strive for full
inclusion and upward mobility through employment. Statistics show there
is much more to do to make the American Dream a reality for these
segments of our society. By turning the tide, we will not only improve
the lives of New Yorkers, but create new taxpayers in communities across
the state. New York has always been among the first to take on the fight
for these men and women. The Preferred Source law, enacted in 1948, was
an innovative statute to advance special social and economic goals. But
the law hasn't been updated for more than 20 years. A comprehensive
strategy to increase employment opportunities for people who are blind
or severely disabled through creater utilization of the Preferred Source
Program will, harness the true buying power of the public sector to
create new taxpayers. The current Preferred Source statute requires
state agencies, public benefit corporations including most public
authorities), municipalities, and school districts to purchase commod-
ities and services from Preferred Sources first, if the Preferred Source
offering meets the entity's needs for "form, function, and utility."
Preferred Source offerings and pricing are pre-approved by the Office of
General Services (OGS), eliminating the need for resource- and time-in-
tensive competitive bidding processes. New York State has three
Preferred Source organizations: New York State Preferred Source Program
for New Yorkers Who Are Blind (NYSPSP), NYS Industries for the Disabled
(NYSID), and the NYS Department of Correctional Services, Division of
Industries (Corcraft). Employment opportunities for people who are blind
or disabled are supported by the purchase of goods and services the
public sector needs to operate, such as office, safety and medical
supplies; mops and brooms and cleaning solutions; janitorial and laundry
services; and call center, document imaging and transcription services.
The Comprehensive Diversity in Procurement and Employment Act of 2019
will improve the Preferred Source program by mandating timely payments
to Preferred Source agencies, as well as Minority and Women-owned Busi-
ness Enterprises (MWBE) and Service Disabled Veteran-owned Businesses
(SDVOB). This reform will eliminate the frequent problem of long-overdue
payments from New York State to MWBE, SDVOB and non-profit entities
producing goods and services and employing New Yorkers who are blind or
disabled. On average, 60 percent of these businesses receive payment for
their invoices to the public more than 30 calendar days from the invoice
date. Improving upon legislation signed into law in 2017 for a small
group of vendors, this section will expand the definition of entities
required to receive timely payments to include economically vulnerable
groups, and require payment in no more than fifteen calendar days,
excluding legal holidays, after receipt of an invoice for the amount of
the contract payment due. The bill also will expand the jurisdiction of
New York State Chief Diversity and Compliance Officers to include
intra-agency compliance with the Preferred Source and SDVOB programs to
encourage full and equal participation in public sector business oppor-
tunities across the state. Statistics indicate a significantly higher
rate of unemployment among these segments of the population - in some
cases approaching 70 percent - an alarming statistic considering overall
unemployment in New York is less than 5 percent. Diversity refers not
only to race and gender; it includes other groups who face barriers to
full and equal participation in the workforce and our communities.  This
legislation expands the Chief Diversity Officer's scope to include popu-
lations economically vulnerable due to legal blind- ness or other severe
disability. Embracing these thousands of New Yorkers previously left
behind will have a positive, permanent impact on state and local econo-
mies and lessen the burden on critical social service programs. While
OGS and the Office of Children and Family Services (OCFS) have made
great strides with existing resources, New York needs to broaden the
scope of the office of the Chief Diversity Officer and empower compli-
ance officers to engage more meaningfully in their agencies to achieve
full diversity.  Because it utilizes Compliance Officers already
employed in state agencies, this proposal has no fiscal impact. More
fully embracing the intent and potential of existing state procurement
program designed to create employment and economic opportunities will
greater economic independence for New Yorkers who have historically
faced barriers to full and equal participation in the workforce. As a
result, more of them will earn and spend wages in their communities
across the state, thereby increasing personal income and sales tax
receipts. It is important to note that private business cannot be desig-
nated as preferred source, although there are currently many small busi-
nesses, including MWBEs and SDVOBs across the state, that partner with a
Preferred Source. In fact, Preferred Source entities currently partner
with MWBEs and SDVOBs across New York. From a cleaning solutions company
on Long Island, to a lighting company in Manhattan, an apparel company
in Brooklyn, and a medical supply company in the Mohawk Valley,
Preferred Source entities, MBEs and SDVOBs not only operate in New York,
they thrive. But more can be done. State law should reflect our shared
commitment to expanding economic opportunity for all New Yorkers, both
through private-sector businesses and non-profit entities. Ii enacted,
the Comprehensive Diversity in Procurement and Employment Act of 2019
Will remove barriers and foster greater understanding and utilization of
these similar, but nuanced, procurement programs.

 
PRIOR LEGISLATIVE HISTORY:

Senate Bill 8425 of 2018.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
Effective immediately.

2021-S3661 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3661
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 30, 2021
                                ___________
 
 Introduced  by  Sens.  COMRIE,  GRIFFO,  KENNEDY, ORTT -- 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 executive law, in relation
   to  the  comprehensive  diversity in procurement and employment act of
   2019

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known and may be cited as the "comprehen-
 sive diversity in procurement and employment act of 2021".
   §  2. Subdivisions 1 and 9 of section 162 of the state finance law, as
 added by chapter 83 of the laws of 1995, are amended to read as follows:
   1. Purpose. To advance special social  and  economic  goals,  selected
 providers  shall  have  preferred  source  status  for  the  purposes of
 procurement in accordance with the provisions of this section.  Procure-
 ment from  these  providers  shall  be  exempted  from  the  competitive
 procurement  provisions of section one hundred sixty-three of this arti-
 cle and other competitive procurement  statutes.  Such  exemption  shall
 apply  to  commodities  produced,  manufactured  or assembled, including
 those repackaged to meet the form,  function  and  utility  required  by
 state  agencies,  PUBLIC AUTHORITIES, COMMISSIONS, PUBLIC BENEFIT CORPO-
 RATIONS, POLITICAL SUBDIVISIONS, OR MUNICIPAL CORPORATIONS in  New  York
 state  and,  where  so designated, services provided by those sources in
 accordance with this section.
   9.  PAYMENTS TO AGENCIES FOR THE BLIND, OTHER  SEVERELY  DISABLED  AND
 VETERANS' WORKSHOPS. THE REQUIRED PAYMENT DATE SHALL BE FIFTEEN CALENDAR
 DAYS,  EXCLUDING  LEGAL  HOLIDAYS,  AFTER  RECEIPT OF AN INVOICE FOR THE
 AMOUNT OF THE CONTRACT PAYMENT DUE; EXCEPT WHEN:
   (A) THE STATE COMPTROLLER IN THE COURSE OF HIS OR HER AUDIT DETERMINES
 THAT THERE IS REASONABLE CAUSE TO BELIEVE THAT PAYMENT MAY NOT  PROPERLY
 BE DUE, IN WHOLE OR IN PART;
   (B)  IN  ACCORDANCE WITH SPECIFIC STATUTORY OR CONTRACTUAL PROVISIONS,
 PAYMENT MUST BE PRECEDED BY AN INSPECTION  PERIOD  OR  BY  AN  AUDIT  TO

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03106-02-1

 S. 3661                             2
 
 DETERMINE  THE  RESOURCES  APPLIED OR USED BY A CONTRACTOR IN FULFILLING
 THE TERMS OF THE CONTRACT;
   (C) THE NECESSARY STATE GOVERNMENT APPROPRIATION REQUIRED TO AUTHORIZE
 PAYMENT HAS YET TO BE ENACTED;
   (D) THE CASH BALANCE OF THE FUND OR SUB-FUND FROM WHICH THE PAYMENT IS
 TO BE MADE IS INSUFFICIENT TO FINANCE THE PAYMENT;
   (E)  A PROPER INVOICE MUST BE EXAMINED BY THE FEDERAL GOVERNMENT PRIOR
 TO PAYMENT; OR
   (F) THE GOODS OR PROPERTY HAVE NOT BEEN DELIVERED OR THE SERVICES HAVE
 NOT BEEN RENDERED BY THE CONTRACTOR IN  COMPLIANCE  WITH  THE  TERMS  OR
 CONDITIONS OF THE CONTRACT.
   THE  REQUIRED  PAYMENT  DATE SHALL BE FIFTEEN CALENDAR DAYS, EXCLUDING
 LEGAL HOLIDAYS,  AFTER  SUCH  CONDITIONS  DESCRIBED  IN  PARAGRAPHS  (A)
 THROUGH  (F)  OF  THIS SUBDIVISION HAVE BEEN SATISFIED OR RECTIFIED, AND
 PROVIDED FURTHER THAT ALL REASONABLE AND PRACTICABLE  EFFORTS  SHALL  BE
 TAKEN TO SATISFY OR RECTIFY SUCH CONDITIONS AS SOON AS POSSIBLE.
   10.  The  provisions  of  this  section  shall  supersede inconsistent
 provisions of any general, special or local law, or  the  provisions  of
 any charter.
   §  3.  Subdivisions 2 and 3 of section 179-f of the state finance law,
 subdivision 2 as amended by chapter 36 of the laws of 2016,  subdivision
 3  as amended by chapter 568 of the laws of 2015, are amended, and three
 new subdivisions 7, 8 and 9 are added to read as follows:
   2. The required payment date shall be thirty calendar days,  excluding
 legal  holidays, provided, however, that for a small business, PREFERRED
 SOURCE, SERVICE DISABLED VETERAN-OWNED BUSINESS, OR MINORITY AND  WOMEN-
 OWNED  BUSINESS  ENTERPRISE  the  required payment date shall be fifteen
 calendar days,  excluding  legal  holidays,  absent  a  showing  by  the
 contracting  agency  of  circumstances beyond its control, provided that
 the small business submits its invoice  electronically,  in  conformance
 with the policies and procedures of the accounting and financial manage-
 ment  system of state government and identifies that it is seeking expe-
 dited payment as a small business, or in the case of final  payments  on
 highway  construction  contracts  seventy-five  calendar days, excluding
 legal holidays, after receipt of  an  invoice  for  the  amount  of  the
 contract payment due; except when:
   (a) the state comptroller in the course of his or her audit determines
 that  there is reasonable cause to believe that payment may not properly
 be due, in whole or in part;
   (b) in accordance with specific statutory or  contractual  provisions,
 payment  must  be  preceded  by  an  inspection period or by an audit to
 determine the resources applied or used by a  contractor  in  fulfilling
 the terms of the contract;
   (c) the necessary state government appropriation required to authorize
 payment has yet to be enacted;
   (d) [a proper invoice must be examined by the federal government prior
 to payment;
   (e)]  the  goods  or  property have not been delivered or the services
 have not been rendered by the contractor in compliance with the terms or
 conditions of the contract;
   [(f)] (E) the required payment date is  modified  in  accordance  with
 subdivision three of this section; or
   [(g)]  (F)  in  the  case  of  final  payments on highway construction
 contracts  the  commissioner  of  transportation  determines  that   the
 contractor  has  failed  to  properly submit the necessary documents and
 other submissions prescribed by the contract specifications and require-

 S. 3661                             3
 
 ments, by the provisions of subdivision eight of section thirty-eight of
 the highway law, and by all other applicable state and federal  laws  in
 order  to  enable  the department of transportation to process the final
 payment properly and expeditiously.
   Any  time  taken  to satisfy or rectify any of the types of conditions
 described in paragraphs (a) through [(e)]  (D)  or  [(g)]  (F)  of  this
 subdivision shall extend the required payment date by an equal period of
 time,  provided,  however, that for small businesses, PREFERRED SOURCES,
 SERVICE DISABLED VETERAN-OWNED BUSINESSES, OR MINORITY  AND  WOMEN-OWNED
 BUSINESS  ENTERPRISES, the required payment date shall be fifteen calen-
 dar days, excluding legal holidays,  after  such  conditions  have  been
 satisfied  or  rectified,  and  provided further that all reasonable and
 practicable efforts shall be taken to satisfy or rectify such conditions
 as soon as possible.
   3. Each state agency shall have fifteen calendar days after receipt of
 an invoice by the state agency at its designated payment office,  or  in
 the case of an invoice received from a small business, PREFERRED SOURCE,
 SERVICE  DISABLED  VETERAN-OWNED  BUSINESS,  OR MINORITY AND WOMEN-OWNED
 BUSINESS ENTERPRISE, seven calendar days, to notify  the  contractor  of
 (a)  defects  in the delivered goods, property, or services, (b) defects
 in the invoice, or (c) suspected improprieties  of  any  kind;  and  the
 existence  of  such defects or improprieties shall prevent the commence-
 ment of the time period specified in subdivision two  of  this  section.
 When  a  state  agency  fails  to notify a contractor of such defects or
 suspected improprieties within fifteen calendar days, or seven  calendar
 days  if  such contractor is a small business, PREFERRED SOURCE, SERVICE
 DISABLED VETERAN-OWNED BUSINESS, OR MINORITY  AND  WOMEN-OWNED  BUSINESS
 ENTERPRISE,  of  receiving  the  invoice, the number of days allowed for
 payment of the corrected proper invoice will be reduced by the number of
 days between the fifteenth day, or seventh day if payment of such proper
 invoice is for a small  business,  PREFERRED  SOURCE,  SERVICE  DISABLED
 VETERAN-OWNED BUSINESS, OR MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISE,
 and  the day that notification was transmitted to the contractor. If the
 state agency, in such situations, fails to  provide  reasonable  grounds
 for  its  contention  that  a defect or impropriety exists, the required
 payment date shall be calculated from the date of receipt of an invoice.
   7. AS USED IN THIS SECTION, "PREFERRED SOURCE" SHALL MEAN A  QUALIFIED
 CHARITABLE  NOT-FOR-PROFIT  AGENCY  FOR  THE  BLIND  APPROVED  FOR  SUCH
 PURPOSES BY THE COMMISSIONER  OF  THE  OFFICE  OF  CHILDREN  AND  FAMILY
 SERVICES,  ANY  SPECIAL  EMPLOYMENT PROGRAM SERVING MENTALLY ILL PERSONS
 WHICH IS OPERATED BY FACILITIES WITHIN THE OFFICE OF MENTAL  HEALTH  AND
 IS  APPROVED  FOR  SUCH PURPOSES BY THE COMMISSIONER OF MENTAL HEALTH, A
 QUALIFIED CHARITABLE NOT-FOR-PROFIT AGENCY FOR OTHER  SEVERELY  DISABLED
 PERSONS  APPROVED  FOR SUCH PURPOSES BY THE COMMISSIONER OF EDUCATION OR
 INCORPORATED UNDER THE LAWS OF THIS STATE AND APPROVED FOR SUCH PURPOSES
 BY THE COMMISSIONER OF EDUCATION, OR A QUALIFIED CHARITABLE NOT-FOR-PRO-
 FIT WORKSHOP FOR VETERANS APPROVED FOR SUCH PURPOSES BY THE COMMISSIONER
 OF EDUCATION OR INCORPORATED UNDER THE LAWS OF THIS STATE  AND  APPROVED
 FOR SUCH PURPOSES BY THE COMMISSIONER OF EDUCATION.
   8.  AS USED IN THIS SECTION, "CERTIFIED SERVICE DISABLED VETERAN-OWNED
 BUSINESS ENTERPRISE" SHALL HAVE THE SAME MEANING AS SET FORTH IN ARTICLE
 SEVENTEEN-B OF THE EXECUTIVE LAW.
   9. AS USED IN THIS SECTION, "MINORITY AND WOMEN-OWNED BUSINESS  ENTER-
 PRISE"  SHALL HAVE THE SAME MEANING AS SET FORTH IN ARTICLE FIFTEEN-A OF
 THE EXECUTIVE LAW.

 S. 3661                             4
 
   § 4. Section 4-a of the executive law, as added by chapter 175 of  the
 laws of 2010, is amended to read as follows:
   §  4-a.  Chief  diversity  officer.  A chief diversity officer for the
 state shall be appointed by the governor and shall receive a  salary  to
 be  fixed  by  the governor within the amount appropriated therefor. The
 chief diversity officer's responsibilities shall include the following:
   1. Advise and assist the governor in formulating policies relating  to
 workforce  diversity  INCLUDING  THE  USE  OF PREFERRED SOURCES, SERVICE
 DISABLED VETERAN-OWNED BUSINESS ENTERPRISES and minority  and  [women's]
 WOMEN-OWNED business enterprises;
   2.  Work  with  the  director  of the division of minority and women's
 business development AND THE DIVISION SERVICE DISABLED  VETERAN'S  BUSI-
 NESS  DEVELOPMENT to prepare an annual plan for ensuring full compliance
 with [article fifteen-a] ARTICLES  FIFTEEN-A  AND  SEVENTEEN-B  of  [the
 executive  law] THIS CHAPTER AND ARTICLE ELEVEN OF THE STATE FINANCE LAW
 by state agencies and the  use  of  diversity  practices  AND  PREFERRED
 SOURCES by such agencies AND PUBLIC AUTHORITIES;
   3.  WORK  WITH  THE  COMMISSIONER OF THE OFFICE OF CHILDREN AND FAMILY
 SERVICES TO PREPARE AN ANNUAL PLAN FOR  ENSURING  FULL  COMPLIANCE  WITH
 SECTION  ONE  HUNDRED  SIXTY-TWO OF THE STATE FINANCE LAW BY STATE AGEN-
 CIES;
   4. WORK WITH THE DIRECTOR OF THE OFFICE OF GENERAL  SERVICES  AND  THE
 DIVISION  OF  SERVICE DISABLED VETERANS' BUSINESS DEVELOPMENT TO PREPARE
 AN ANNUAL PLAN FOR ENSURING FULL COMPLIANCE  WITH  THE  SERVICE-DISABLED
 VETERAN-OWNED BUSINESS ACT BY STATE AGENCIES;
   5.  Advise the governor and the agencies regarding any measures neces-
 sary  to  ensure  full  compliance  with  [article  fifteen-a]  ARTICLES
 FIFTEEN-A  AND  SEVENTEEN-B  of  this  chapter and ARTICLE ELEVEN OF THE
 STATE FINANCE LAW IN CONNECTION WITH THE use of  diversity  AND  SERVICE
 DISABLED  VETERANS practices AND PREFERRED SOURCE PLANS BY SUCH AGENCIES
 AND by state public authorities;
   [4.] 6. Serve as a member of the state procurement council established
 under section one hundred sixty-one of the state finance law;
   [5.] 7. Serve as the governor's liaison with organizations  represent-
 ing minority and women-owned business enterprises, PREFERRED SOURCES AND
 SERVICE  DISABLED VETERAN-OWNED BUSINESS ENTERPRISES and other organiza-
 tions related to diversity in the state workforce and in state contract-
 ing;
   [6.] 8. Serve as the governor's liaison to the small business advisory
 council for issues related to the creation of a  diverse  workforce  and
 state  procurement  practices relating to minority and women-owned busi-
 ness enterprises, PREFERRED SOURCES AND SERVICE  DISABLED  VETERAN-OWNED
 BUSINESS ENTERPRISES;
   [7.]  9.  Review and consult with the director of minority and women's
 business development [regarding policies], THE DIRECTOR OF THE  DIVISION
 OF  SERVICE DISABLED VETERANS' BUSINESS DEVELOPMENT AND THE COMMISSIONER
 OF THE OFFICE OF CHILDREN AND FAMILY SERVICES relating to  minority  and
 women-owned  business  [enterprise] ENTERPRISES, SERVICE DISABLED VETER-
 AN-OWNED BUSINESS ENTERPRISES AND PREFERRED SOURCES contract specialists
 at state agencies; and
   [8.] 10. Engage in other actions assigned to him or her by the  gover-
 nor  relating to diversity in hiring or promotion of the state workforce
 and in encouraging diversity  practices  and  compliance  with  [article
 fifteen-a]  ARTICLES FIFTEEN-A AND SEVENTEEN-B of this chapter AND ARTI-
 CLE ELEVEN OF THE STATE FINANCE LAW in procurement.
   § 5. This act shall take effect immediately.

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Senate Bill S3661

Sponsored By

Archive: Last Bill Status - In Senate Committee Finance Committee

co-Sponsors

2021-S3661 (ACTIVE) - Details

2021-S3661 (ACTIVE) - Summary

2021-S3661 (ACTIVE) - Sponsor Memo

2021-S3661 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S3661

Share this bill

Sponsored By

Leroy Comrie

Archive: Last Bill Status - In Senate Committee Finance Committee

co-Sponsors

Joseph A. Griffo

Timothy M. Kennedy

Robert G. Ortt

2021-S3661 (ACTIVE) - Details

2021-S3661 (ACTIVE) - Summary

2021-S3661 (ACTIVE) - Sponsor Memo

2021-S3661 (ACTIVE) - Bill Text download pdf

Comments