NY State Senate Bill 2019-S5490

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 08, 2020	referred to finance
May 02, 2019	referred to finance

co-Sponsors

2019-S5490 (ACTIVE) - Details

See Assembly Version of this Bill:: A1622
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
2021-2022: S3661, A3830
2023-2024: A2503

2019-S5490 (ACTIVE) - Summary

Enacts the comprehensive diversity in procurement and employment act of 2019 to encourage full and equal participation in public sector business opportunities across the state.

2019-S5490 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S5490

SPONSOR: COMRIE
 
TITLE OF BILL:  An act to amend the state finance law and the execu-
tive 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 greater 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
programs designed to create employment and economic opportunities will
spur 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. If 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.

2019-S5490 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5490
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                May 2, 2019
                                ___________
 
 Introduced  by Sens. COMRIE, 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 2019".
   § 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
 DETERMINE THE RESOURCES APPLIED OR USED BY A  CONTRACTOR  IN  FULFILLING
 THE TERMS OF THE CONTRACT;

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01312-01-9

 S. 5490                             2
 
   (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-
 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

 S. 5490                             3
 
 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.
   § 4. Section 4-a of the executive law, as added by chapter 175 of  the
 laws of 2010, is amended to read as follows:

 S. 5490                             4
 
   §  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 S5490

Sponsored By

Archive: Last Bill Status - In Senate Committee Finance Committee

co-Sponsors

2019-S5490 (ACTIVE) - Details

2019-S5490 (ACTIVE) - Summary

2019-S5490 (ACTIVE) - Sponsor Memo

2019-S5490 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S5490

Share this bill

Sponsored By

Leroy Comrie

Archive: Last Bill Status - In Senate Committee Finance Committee

co-Sponsors

Robert G. Ortt

Joseph A. Griffo

Timothy M. Kennedy

2019-S5490 (ACTIVE) - Details

2019-S5490 (ACTIVE) - Summary

2019-S5490 (ACTIVE) - Sponsor Memo

2019-S5490 (ACTIVE) - Bill Text download pdf

Comments