S T A T E O F N E W Y O R K
________________________________________________________________________
8844
I N S E N A T E
March 20, 2024
___________
Introduced by Sen. RYAN -- read twice and ordered printed, and when
printed to be committed to the Committee on Procurement and Contracts
AN ACT to amend the state finance law, in relation to adding employee-
owned enterprises to the list of preferred contractors for public
contracts in the state
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivisions 6, 7, 8, 9 and 10 of section 160 of the state
finance law are renumbered subdivisions 7, 8, 9, 10 and 11, and a new
subdivision 6 is added to read as follows:
6. "EMPLOYEE-OWNED ENTERPRISE" SHALL HAVE THE SAME MEANING AS DEFINED
BY SECTION EIGHTEEN HUNDRED THIRTY-SIX-B OF THE PUBLIC AUTHORITIES LAW.
§ 2. Subdivision 2 of section 162 of the state finance law is amended
by adding a new paragraph g to read as follows:
G. COMMODITIES AND SERVICES PRODUCED BY AN EMPLOYEE-OWNED ENTERPRISE
OR A WORKER COOPERATIVE INCORPORATED UNDER THE LAWS OF THIS STATE AND
GOVERNED BY ARTICLE FIVE-A OF THE COOPERATIVE CORPORATIONS LAW.
§ 3. Subparagraph (iii) of paragraph a and the opening paragraph of
paragraph b of subdivision 4 of section 162 of the state finance law, as
amended by chapter 565 of the laws of 2022, are amended to read as
follows:
(iii) When commodities are available, in the form, function and utili-
ty required by, a state agency or political subdivision or public bene-
fit corporation having their own purchasing agency, and such commodities
are not available pursuant to subparagraphs (i) and (ii) of this para-
graph, said commodities shall then be purchased from a qualified non-
profit-making agency for other disabled persons, a qualified special
employment program for mentally ill persons, [or] a qualified veterans'
entity, OR A QUALIFIED EMPLOYEE-OWNED ENTERPRISE OR WORKER COOPERATIVE;
provided, however, the preferred source shall perform fifty percent or
more of the work;
When services are available, in the form, function and utility
required by, a state agency or political subdivision or public benefit
corporation having their own purchasing agency, equal priority shall be
accorded the services rendered and offered for sale by qualified non-
profit-making agencies for the blind and those for the other disabled,
by qualified special employment programs for mentally ill persons [and],
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14256-01-4
S. 8844 2
by qualified veterans' entities, AND BY QUALIFIED EMPLOYEE-OWNED ENTER-
PRISES OR WORKER COOPERATIVES; provided, however, the preferred source
shall perform fifty percent or more of the work. In the case of
services:
§ 4. Subparagraph (iii) of paragraph a and the opening paragraph of
paragraph b of subdivision 4 of section 162 of the state finance law, as
added by chapter 83 of the laws of 1995, are amended to read as follows:
(iii) When commodities are available, in the form, function and utili-
ty required by, a state agency or political subdivision or public bene-
fit corporation having their own purchasing agency, and such commodities
are not available pursuant to subparagraphs (i) and (ii) of this para-
graph, said commodities shall then be purchased from a qualified non-
profit-making agency for other [severely] disabled persons, a qualified
special employment program for mentally ill persons, [or] a qualified
veterans' [workshop] ENTITY, OR A QUALIFIED EMPLOYEE-OWNED ENTERPRISE OR
WORKER COOPERATIVE;
When services are available, in the form, function and utility
required by, a state agency or political subdivision or public benefit
corporation having their own purchasing agency, equal priority shall be
accorded the services rendered and offered for sale by qualified non-
profit-making agencies for the blind and those for the other [severely]
disabled, by qualified special employment programs for mentally ill
persons [and], by qualified veterans' [workshops] ENTITIES, AND BY QUAL-
IFIED EMPLOYEE-OWNED ENTERPRISES OR WORKER COOPERATIVES. In the case of
services:
§ 5. Section 162 of the state finance law is amended by adding a new
subdivision 6-a to read as follows:
6-A. PRICES CHARGED BY EMPLOYEE-OWNED ENTERPRISES OR WORKER COOPER-
ATIVES.
A. QUALIFIED EMPLOYEE-OWNED ENTERPRISES OR WORKER COOPERATIVES MAY
MAKE PURCHASES OF MATERIALS, EQUIPMENT OR SUPPLIES, EXCEPT PRINTED MATE-
RIAL, FROM CENTRALIZED CONTRACTS FOR COMMODITIES IN ACCORDANCE WITH THE
CONDITIONS SET BY THE OFFICE OF GENERAL SERVICES; PROVIDED THAT SUCH
QUALIFIED EMPLOYEE-OWNED ENTERPRISE OR WORKER COOPERATIVE SHALL ACCEPT
SOLE RESPONSIBILITY FOR ANY PAYMENT DUE TO THE VENDOR.
B. THE STATE COMPTROLLER MAY CONDUCT AUDITS AND EXAMINATIONS OF ALL
RECORDS, BOOKS AND DATA OF ANY EMPLOYEE-OWNED ENTERPRISE OR WORKER COOP-
ERATIVE QUALIFIED UNDER THIS SECTION TO DETERMINE THE COSTS OF MANUFAC-
TURING OR THE RENDERING OF SERVICES AND THE MANNER AND EFFICIENCY OF
PRODUCTION AND ADMINISTRATION OF SUCH EMPLOYEE-OWNED ENTERPRISE OR WORK-
ER COOPERATIVE WITH RELATION TO ANY PRODUCT OR SERVICES PURCHASED BY A
STATE AGENCY OR POLITICAL SUBDIVISION OR PUBLIC BENEFIT CORPORATION AND
TO FURNISH THE RESULTS OF SUCH AUDIT AND EXAMINATION TO THE COMMISSIONER
FOR SUCH ACTION AS HE OR SHE MAY DEEM APPROPRIATE UNDER THIS SECTION.
§ 6. This act shall take effect on the ninetieth day after it shall
have become a law; provided, however, that the amendments to subpara-
graph (iii) of paragraph a and the opening paragraph of paragraph b of
subdivision 4 of section 162 of the state finance law made by section
three of this act shall be subject to the expiration and reversion of
such subparagraph and opening paragraph pursuant to section four of
chapter 565 of the laws of 2022, as amended, when upon such date the
provisions of section four of this act shall take effect. Effective
immediately, the addition, amendment and/or repeal of any rule or regu-
lation necessary for the implementation of this act on its effective
date are authorized to be made and completed on or before such effective
date.