S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9081
 
                           I N  A S S E M B L Y
 
                             February 6, 2024
                                ___________
 
 Introduced  by M. of A. MAMDANI -- read once and referred to the Commit-
   tee on Governmental Operations
 
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14256-01-4
 A. 9081                             2
 
 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],
 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-
 A. 9081                             3
 
 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.