S T A T E O F N E W Y O R K
________________________________________________________________________
9364--A
I N S E N A T E
May 14, 2024
___________
Introduced by Sen. COONEY -- read twice and ordered printed, and when
printed to be committed to the Committee on Procurement and Contracts
-- 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.
LBD14405-05-4
S. 9364--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
S. 9364--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.
