S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  9312--A
 
                           I N  A S S E M B L Y
 
                             February 27, 2024
                                ___________
 
 Introduced by M. of A. RAJKUMAR, ALVAREZ, DICKENS, LEMONDES, K. BROWN --
   read  once and referred to the Committee on Governmental Operations --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted to said committee
 
 AN  ACT to amend the state finance law and the general municipal law, in
   relation to prohibiting procurement of certain technology  that  poses
   security threats
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The state finance law is amended by adding  a  new  section
 163-e to read as follows:
   §  163-E.  RESTRICTION  ON PURCHASING CERTAIN TECHNOLOGY WHICH POSES A
 SECURITY THREAT. 1. (A) NOTWITHSTANDING ANY  INCONSISTENT  PROVISION  OF
 LAW, THE STATE AND ANY DEPARTMENT, BUREAU, BOARD, COMMISSION, AUTHORITY,
 AND  ANY  OTHER  AGENCY  OR INSTRUMENTALITY OF THE STATE SHALL NOT ENTER
 INTO OR RENEW ANY CONTRACT  OR  AGREEMENT  TO  PROCURE  INFORMATION  AND
 COMMUNICATIONS  TECHNOLOGY,  INCLUDING HARDWARE, SYSTEMS, DEVICES, SOFT-
 WARE, OR SERVICES THAT INCLUDE EMBEDDED OR INCIDENTAL INFORMATION  TECH-
 NOLOGY, WHICH ARE PROHIBITED FROM FEDERAL PROCUREMENT PURSUANT TO 41 USC
 4713.
   (B) THE TERM "INFORMATION AND COMMUNICATIONS TECHNOLOGY" MEANS:
   (I) INFORMATION TECHNOLOGY, AS DEFINED IN SECTION 11101 OF TITLE 40;
   (II) INFORMATION SYSTEMS, AS DEFINED IN 44 U.S.C. 3502; AND
   (III) TELECOMMUNICATIONS EQUIPMENT AND TELECOMMUNICATIONS SERVICES, AS
 THOSE  TERMS  ARE DEFINED IN SECTION 3 OF THE COMMUNICATIONS ACT OF 1934
 (47 U.S.C. 153).
   (C) THE TERM "INFORMATION AND  COMMUNICATIONS  TECHNOLOGY"  SHALL  NOT
 INCLUDE AUTOMATED-DECISION MAKING SYSTEMS.
   2.  NOTWITHSTANDING  ANY  INCONSISTENT PROVISION OF LAW, THE STATE AND
 ANY DEPARTMENT, BUREAU, BOARD, COMMISSION, AUTHORITY, OR ANY OTHER AGEN-
 CY OR INSTRUMENTALITY OF THE STATE SHALL NOT ENTER  INTO  OR  RENEW  ANY
 CONTRACT  OR  AGREEMENT  TO  PROCURE  ANY ELECTRONIC PARTS, PRODUCTS, OR
 SERVICES,  OR ENTER INTO A CONTRACT, OR EXTEND OR RENEW A CONTRACT, WITH
 AN ENTITY TO PROCURE OR OBTAIN ELECTRONIC PARTS OR PRODUCTS THAT USE ANY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14405-04-4
 A. 9312--A                          2
 
 ELECTRONIC PARTS OR PRODUCTS THAT  INCLUDE  PRODUCTS,  FROM  ANY  ENTITY
 PROHIBITED  FROM  FEDERAL CONTRACTING (OR ANY SUBSIDIARY, AFFILIATES, OR
 SUCCESSORS OF SUCH ENTITY) AS SET FORTH IN PUB. L.    117-263,  DIV.  E,
 TITLE  LIX,  §  5949;  OR  ANY ENTITY (OR ANY SUBSIDIARY, AFFILIATES, OR
 SUCCESSORS  OF  SUCH  ENTITY)  DESIGNATED  AS  PROHIBITED  FROM  FEDERAL
 CONTRACTING  PURSUANT TO PUB. L.  115-232, DIV. A, TITLE VIII, § 889; OR
 FROM ANY ENTITY (OR ANY SUBSIDIARY, AFFILIATES, OR  SUCCESSORS  OF  SUCH
 ENTITY)   DETERMINED   TO   BE   A   THREAT   TO  NATIONAL  SECURITY  BY
 DODIG-2019-106.
   3. THE COMMISSIONER OF HOMELAND SECURITY AND EMERGENCY  SERVICES,  THE
 ADJUTANT  GENERAL,  THE CHIEF INFORMATION OFFICER, THE CHIEF CYBER OFFI-
 CER, THE CHIEF TECHNOLOGY OFFICER OF THE CITY OF NEW YORK AND ANY FEDER-
 AL AGENCY AUTHORIZED UNDER 41 USC 4713, MAY PROVIDE A WAIVER  FROM  THIS
 SECTION IF:
   (A)  ANY SUCH ENTITY DETERMINES THE WAIVER IS IN THE CRITICAL STATE OR
 NATIONAL SECURITY INTERESTS; AND
   (B) NO COMPLIANT PRODUCT OR SERVICE IS AVAILABLE TO  BE  PROCURED  AS,
 AND  WHEN,  NEEDED AT UNITED STATES MARKET PRICES OR A PRICE THAT IS NOT
 CONSIDERED PROHIBITIVELY EXPENSIVE; AND
   (C) SUCH WAIVER COULD NOT REASONABLY BE  EXPECTED  TO  COMPROMISE  THE
 CRITICAL STATE OR NATIONAL SECURITY INTERESTS.
   4. NOTHING IN THIS SECTION SHALL BE CONSTRUED:
   (A) TO REQUIRE ANY COVERED PRODUCTS OR SERVICES RESIDENT IN EQUIPMENT,
 SYSTEMS,  OR  SERVICES  AS  OF THE DAY BEFORE THE EFFECTIVE DATE OF THIS
 SECTION TO BE REMOVED OR REPLACED;
   (B) TO PROHIBIT OR LIMIT THE UTILIZATION OF SUCH COVERED  PRODUCTS  OR
 SERVICES THROUGHOUT THE LIFECYCLE OF SUCH EXISTING EQUIPMENT; OR
   (C) TO REQUIRE THE RECIPIENT OF A STATE CONTRACT, GRANT, LOAN, OR LOAN
 GUARANTEE TO REPLACE COVERED PRODUCTS OR SERVICES RESIDENT IN EQUIPMENT,
 SYSTEMS, OR SERVICES BEFORE THE EFFECTIVE DATE OF THIS SECTION.
   §  2.  The  general  municipal  law is amended by adding a new section
 103-h to read as follows:
   § 103-H.  RESTRICTION ON PURCHASING CERTAIN TECHNOLOGY WHICH  POSES  A
 SECURITY  THREAT.  1.  (A) NOTWITHSTANDING ANY INCONSISTENT PROVISION OF
 LAW A POLITICAL SUBDIVISION SHALL NOT ENTER INTO OR RENEW  ANY  CONTRACT
 OR  AGREEMENT  TO  PROCURE  INFORMATION  AND  COMMUNICATIONS TECHNOLOGY,
 INCLUDING HARDWARE, SYSTEMS, DEVICES, SOFTWARE, OR SERVICES THAT INCLUDE
 EMBEDDED OR INCIDENTAL INFORMATION TECHNOLOGY, WHICH ARE PROHIBITED FROM
 FEDERAL PROCUREMENT PURSUANT TO 41 USC 4713.
   (B) THE TERM "INFORMATION AND COMMUNICATIONS TECHNOLOGY" MEANS:
   (I) INFORMATION TECHNOLOGY, AS DEFINED IN 40 U.S.C. 11101;
   (II) INFORMATION SYSTEMS, AS DEFINED IN 44 U.S.C. 3502; AND
   (III) TELECOMMUNICATIONS EQUIPMENT AND TELECOMMUNICATIONS SERVICES, AS
 THOSE TERMS ARE DEFINED IN SECTION 3 OF THE COMMUNICATIONS ACT  OF  1934
 (47 U.S.C. 153).
   2.  NOTWITHSTANDING  ANY  INCONSISTENT  PROVISION  OF LAW, A POLITICAL
 SUBDIVISION OR ANY DISTRICT THEREIN SHALL NOT ENTER INTO  OR  RENEW  ANY
 CONTRACT  OR  AGREEMENT  TO  PROCURE  ANY ELECTRONIC PARTS, PRODUCTS, OR
 SERVICES, OR ENTER INTO A CONTRACT, OR EXTEND OR RENEW A CONTRACT,  WITH
 AN ENTITY TO PROCURE OR OBTAIN ELECTRONIC PARTS OR PRODUCTS THAT USE ANY
 ELECTRONIC  PARTS  OR  PRODUCTS  THAT  INCLUDE  PRODUCTS OR SERVICES, IN
 VIOLATION OF THE PROVISIONS AS SET FORTH IN PUB. L.   117-263,  DIV.  E,
 TITLE LIX, § 5949; OR FROM ANY ENTITY (OR ANY SUBSIDIARY, AFFILIATES, OR
 SUCCESSORS  OF  SUCH  ENTITY)  DESIGNATED  AS  PROHIBITED  FROM  FEDERAL
 CONTRACTING PURSUANT TO PUB. L. 115-232, DIV. A, TITLE  VIII,  §889;  OR
 A. 9312--A                          3
 
 FROM  ANY  ENTITY  (OR ANY SUBSIDIARY, AFFILIATES, OR SUCCESSORS OF SUCH
 ENTITY) DETERMINED TO BE A CYBERSECURITY RISK BY DODIG-2019-106.
   3.  THE  COMMISSIONER OF HOMELAND SECURITY AND EMERGENCY SERVICES, THE
 ADJUTANT GENERAL, THE CHIEF INFORMATION OFFICER, THE CHIEF  CYBER  OFFI-
 CER, THE CHIEF TECHNOLOGY OFFICER OF THE CITY OF NEW YORK AND ANY FEDER-
 AL AGENCY AUTHORIZED UNDER 41 U.S.C 4713, MAY PROVIDE A WAIVER FROM THIS
 SECTION IF:
   (A)  ANY SUCH ENTITY DETERMINES THE WAIVER IS IN THE CRITICAL STATE OR
 NATIONAL SECURITY INTERESTS; AND
   (B) NO COMPLIANT PRODUCT OR SERVICE IS AVAILABLE TO  BE  PROCURED  AS,
 AND  WHEN,  NEEDED AT UNITED STATES MARKET PRICES OR A PRICE THAT IS NOT
 CONSIDERED PROHIBITIVELY EXPENSIVE; AND
   (C) SUCH WAIVER COULD NOT REASONABLY BE  EXPECTED  TO  COMPROMISE  THE
 CRITICAL NATIONAL SECURITY INTERESTS OF THE UNITED STATES.
   4. NOTHING IN THIS SECTION SHALL BE CONSTRUED:
   (A) TO REQUIRE ANY COVERED PRODUCTS OR SERVICES RESIDENT IN EQUIPMENT,
 SYSTEMS,  OR  SERVICES  AS  OF THE DAY BEFORE THE EFFECTIVE DATE OF THIS
 SECTION TO BE REMOVED OR REPLACED;
   (B) TO PROHIBIT OR LIMIT THE UTILIZATION OF SUCH COVERED  PRODUCTS  OR
 SERVICES THROUGHOUT THE LIFECYCLE OF SUCH EXISTING EQUIPMENT; OR
   (C) TO REQUIRE THE RECIPIENT OF A STATE CONTRACT, GRANT, LOAN, OR LOAN
 GUARANTEE TO REPLACE COVERED PRODUCTS OR SERVICES RESIDENT IN EQUIPMENT,
 SYSTEMS, OR SERVICES BEFORE THE EFFECTIVE DATE OF THIS SECTION.
   §  3.  No  later  than  the  effective date of this act, the office of
 general services shall promulgate rules and regulations and issue  guid-
 ance  to all state agencies and local procurement authorities necessary,
 including providing  updates  on prohibited   or excluded  entities  for
 procurement  contracts  in  conformity with federal law, rules and regu-
 lations, no later than sixty days after  any  entity  is  prohibited  or
 excluded.
   §  4. This act shall take effect five years after it shall have become
 a law. Effective immediately, the office of general services is  author-
 ized to promulgate rules and regulations and issue guidance to all state
 agencies and local procurement authorities necessary for the implementa-
 tion  of  this act on its effective date, including providing updates on
 prohibited or excluded entities for procurement contracts in  conformity
 with federal law, rules and regulations.