Bill Text: NY A01541 | 2011-2012 | General Assembly | Introduced

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Bill Title: Provides a preference to entities which provide employer sponsored health coverage in awarding contracts to provide goods or services to state agencies, public authorities and public benefit corporations if such bidding contractor is within 15 percent of the lowest bidder which does not provide such coverage.

Spectrum: Partisan Bill (Democrat 21-0)

Status: (Introduced - Dead) 2012-01-04 - referred to governmental operations [A01541 Detail]

Download: New_York-2011-A01541-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1541
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 10, 2011
                                      ___________
       Introduced by M. of A. GOTTFRIED, DINOWITZ, PAULIN, GALEF, COOK, JACOBS,
         PEOPLES-STOKES,  SCHIMEL  --  Multi-Sponsored  by  --  M.  of A. BING,
         CAHILL, COLTON, FARRELL, GLICK, JAFFEE, KELLNER, LAVINE, MAISEL, McEN-
         ENY, MILLMAN, PHEFFER, SWEENEY  --  read  once  and  referred  to  the
         Committee on Governmental Operations
       AN ACT to amend the state finance law, in relation to granting a prefer-
         ence  in state contracts for contractors which provide their employees
         with employer-sponsored health coverage
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Section 165 of the state finance law is amended by adding a
    2  new subdivision 9 to read as follows:
    3    9. PREFERENCE IN STATE CONTRACTS FOR CONTRACTORS WHO PROVIDE EMPLOYEES
    4  WITH EMPLOYER-SPONSORED HEALTH COVERAGE.
    5    A.  FOR  THE  PURPOSES OF THIS SUBDIVISION, "EMPLOYER-SPONSORED HEALTH
    6  COVERAGE" SHALL MEAN A HEALTH  INSURANCE  POLICY,  COMPREHENSIVE  HEALTH
    7  SERVICES  PLAN, OR A SELF-FUNDED PLAN OR TRUST, AS DEFINED BY THE SUPER-
    8  INTENDENT OF INSURANCE, IN CONSULTATION WITH THE COMMISSIONER OF HEALTH,
    9  WHICH, AT A MINIMUM, MEETS THE FOLLOWING STANDARDS:
   10    (I) IS AVAILABLE TO ALL ELIGIBLE EMPLOYEES OF AN  EMPLOYER  REGARDLESS
   11  OF AGE, SEX, HEALTH STATUS OR OCCUPATION;
   12    (II)  INCLUDES  BENEFITS WHICH ARE EQUIVALENT TO THE BENEFITS PROVIDED
   13  TO STATE OFFICERS AND EMPLOYEES PURSUANT TO ARTICLE ELEVEN OF THE  CIVIL
   14  SERVICE LAW; AND
   15    (III)  PROVIDES  FOR  EMPLOYEE  COST-SHARING  THAT IS NO MORE THAN THE
   16  COST-SHARING PROVISIONS OF A TYPICAL EMPLOYER-SPONSORED HEALTH  COVERAGE
   17  PLAN.
   18    IN  DEFINING  SUCH  COVERAGE, THE SUPERINTENDENT OF INSURANCE MAY VARY
   19  THE STANDARDS OF A PLAN BASED ON EMPLOYER SIZE.
   20    B. (I) EXCEPT AS PROVIDED IN THIS SUBDIVISION, THE STATE AND ANY STATE
   21  AGENCY, PUBLIC BENEFIT CORPORATION OR  PUBLIC  AUTHORITY  OF  THE  STATE
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD05350-01-1
       A. 1541                             2
    1  SHALL  GRANT A PREFERENCE IN ANY CONTRACT FOR THE SUPPLY OF COMMODITIES,
    2  SERVICES OR CONSTRUCTION TO ANY CONTRACTOR THAT PROVIDES  ITS  EMPLOYEES
    3  WITH EMPLOYER-SPONSORED HEALTH COVERAGE.
    4    (II)  IN  THE CASE OF CONTRACTS LET BY A COMPETITIVE PROCESS, WHENEVER
    5  THE RESPONSIVE AND RESPONSIBLE OFFERER HAVING THE LOWEST PRICE  OR  BEST
    6  VALUE  OFFER  DOES  NOT  PROVIDE  ITS  EMPLOYEES WITH EMPLOYER-SPONSORED
    7  HEALTH COVERAGE AND ANOTHER RESPONSIVE AND RESPONSIBLE OFFERER THAT DOES
    8  PROVIDE ITS EMPLOYEES  SUCH  COVERAGE  HAS  SUBMITTED  AN  OFFER  WITHIN
    9  FIFTEEN  PERCENT  OF THE LOWEST PRICE OR BEST VALUE OFFER FOR A CONTRACT
   10  TO SUPPLY COMMODITIES, SERVICES OR CONSTRUCTION OF  COMPARABLE  QUALITY,
   11  THE  CONTRACTING  ENTITY SHALL REFER SUCH OFFERS TO THE COMMISSIONER WHO
   12  MAY DETERMINE, IN ACCORDANCE WITH APPLICABLE LAW AND RULES, THAT  IT  IS
   13  IN THE BEST INTERESTS OF THE STATE THAT THE CONTRACT BE AWARDED TO OTHER
   14  THAN THE LOWEST PRICE OR BEST VALUE OFFER.
   15    (III) IN THE CASE OF CONTRACTS LET BY OTHER THAN A COMPETITIVE PROCESS
   16  FOR GOODS OR SERVICES INVOLVING AN EXPENDITURE OF AN AMOUNT GREATER THAN
   17  THE  DISCRETIONARY  BUYING THRESHOLD AS SPECIFIED IN SECTION ONE HUNDRED
   18  SIXTY-THREE OF THIS ARTICLE, OR FOR  CONSTRUCTION  INVOLVING  AN  AMOUNT
   19  GREATER  THAN FIFTEEN THOUSAND DOLLARS, THE CONTRACTING ENTITY SHALL NOT
   20  AWARD TO A PROPOSED CONTRACTOR THAT DOES NOT PROVIDE  EMPLOYER-SPONSORED
   21  HEALTH  COVERAGE  TO  ITS EMPLOYEES UNLESS THE ENTITY SEEKING TO USE THE
   22  COMMODITIES, SERVICES OR CONSTRUCTION DETERMINES THAT  THE  COMMODITIES,
   23  SERVICES  OR  CONSTRUCTION  ARE  NECESSARY FOR THE ENTITY TO PERFORM ITS
   24  FUNCTIONS AND THERE IS NO OTHER RESPONSIBLE CONTRACTOR THAT WILL  SUPPLY
   25  COMMODITIES,  SERVICES OR CONSTRUCTION OF COMPARABLE QUALITY AT A COMPA-
   26  RABLE PRICE. SUCH DETERMINATIONS SHALL BE MADE IN WRITING AND  SHALL  BE
   27  PUBLIC DOCUMENTS.
   28    C.  UPON  RECEIVING  INFORMATION  THAT A CONTRACTOR THAT HAS INDICATED
   29  THAT IT PROVIDES ITS EMPLOYEES  EMPLOYER-SPONSORED  HEALTH  COVERAGE  IN
   30  ACCORDANCE WITH THE PROVISIONS OF THIS SUBDIVISION IS IN VIOLATION THER-
   31  EOF,  THE CONTRACTING ENTITY SHALL REVIEW SUCH INFORMATION AND OFFER THE
   32  CONTRACTOR AN OPPORTUNITY TO RESPOND. IF THE  CONTRACTING  ENTITY  FINDS
   33  THAT  A  VIOLATION  HAS  OCCURRED,  IT  SHALL TAKE SUCH ACTION AS MAY BE
   34  APPROPRIATE AND PROVIDED FOR BY LAW, RULE OR  CONTRACT,  INCLUDING,  BUT
   35  NOT  LIMITED  TO,  IMPOSING  SANCTIONS,  SEEKING  COMPLIANCE, RECOVERING
   36  DAMAGES OR DECLARING THE CONTRACTOR IN DEFAULT.
   37    D. A RESPONSIVE AND RESPONSIBLE OFFERER NOT  IN  COMPLIANCE  WITH  THE
   38  PROVISIONS  OF  THIS SUBDIVISION MAY COME INTO COMPLIANCE UPON A COMMIT-
   39  MENT THAT THE  PROVISION  OF  EMPLOYER-SPONSORED  HEALTH  COVERAGE  WILL
   40  COMMENCE  FOR  EMPLOYEES  OF  THE CONTRACTOR NO LATER THAN THE EFFECTIVE
   41  DATE OF THE PROPOSED CONTRACT.
   42    E. AS USED IN THIS SUBDIVISION, THE TERM "CONTRACT" SHALL NOT  INCLUDE
   43  CONTRACTS  WITH  GOVERNMENTAL  AND  NON-PROFIT  ORGANIZATIONS, CONTRACTS
   44  AWARDED PURSUANT  TO  EMERGENCY  PROCUREMENT  PROCEDURES  OR  CONTRACTS,
   45  RESOLUTIONS,  INDENTURES,  DECLARATIONS  OF  TRUST  OR OTHER INSTRUMENTS
   46  AUTHORIZING OR RELATING TO THE AUTHORIZATION, ISSUANCE, AWARD,  SALE  OR
   47  PURCHASE  OF  BONDS, CERTIFICATES OF INDEBTEDNESS, NOTES OR OTHER FISCAL
   48  OBLIGATIONS, PROVIDED, HOWEVER, THAT A CONTRACT TO PROVIDE FINANCIAL  OR
   49  LEGAL  ADVICE  OR  MANAGING UNDERWRITER SERVICES IN CONNECTION WITH SUCH
   50  ACTIVITIES SHALL BE INCLUDED IN THE TERM "CONTRACT".
   51    S 2. This act shall take effect on the first of January next  succeed-
   52  ing the date on which it shall have become a law.