Bill Text: NY A02503 | 2023-2024 | General Assembly | Introduced
Bill Title: Enacts the comprehensive diversity in procurement and employment act of 2023 to encourage full and equal participation in public sector business opportunities across the state.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-03 - referred to governmental operations [A02503 Detail]
Download: New_York-2023-A02503-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 2503 2023-2024 Regular Sessions IN ASSEMBLY January 26, 2023 ___________ Introduced by M. of A. VANEL -- read once and referred to the Committee on Governmental Operations AN ACT to amend the state finance law and the executive law, in relation to the comprehensive diversity in procurement and employment act of 2023 The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "comprehensive diversity in procurement and employment act of 2023". 3 § 2. Subdivisions 1 and 9 of section 162 of the state finance law, as 4 added by chapter 83 of the laws of 1995, are amended to read as follows: 5 1. Purpose. To advance special social and economic goals, selected 6 providers shall have preferred source status for the purposes of 7 procurement in accordance with the provisions of this section. Procure- 8 ment from these providers shall be exempted from the competitive 9 procurement provisions of section one hundred sixty-three of this arti- 10 cle and other competitive procurement statutes. Such exemption shall 11 apply to commodities produced, manufactured or assembled, including 12 those repackaged to meet the form, function and utility required by 13 state agencies, public authorities, commissions, public benefit corpo- 14 rations, political subdivisions, or municipal corporations in New York 15 state and, where so designated, services provided by those sources in 16 accordance with this section. 17 9. Payments to agencies for the blind, other severely disabled and 18 veterans' workshops. The required payment date shall be fifteen calendar 19 days, excluding legal holidays, after receipt of an invoice for the 20 amount of the contract payment due; except when: 21 (a) the state comptroller in the course of his or her audit determines 22 that there is reasonable cause to believe that payment may not properly 23 be due, in whole or in part; 24 (b) in accordance with specific statutory or contractual provisions, 25 payment must be preceded by an inspection period or by an audit to 26 determine the resources applied or used by a contractor in fulfilling 27 the terms of the contract; EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD03496-01-3A. 2503 2 1 (c) the necessary state government appropriation required to authorize 2 payment has yet to be enacted; 3 (d) the cash balance of the fund or sub-fund from which the payment is 4 to be made is insufficient to finance the payment; 5 (e) a proper invoice must be examined by the federal government prior 6 to payment; or 7 (f) the goods or property have not been delivered or the services have 8 not been rendered by the contractor in compliance with the terms or 9 conditions of the contract. 10 The required payment date shall be fifteen calendar days, excluding 11 legal holidays, after such conditions described in paragraphs (a) 12 through (f) of this subdivision have been satisfied or rectified, and 13 provided further that all reasonable and practicable efforts shall be 14 taken to satisfy or rectify such conditions as soon as possible. 15 10. The provisions of this section shall supersede inconsistent 16 provisions of any general, special or local law, or the provisions of 17 any charter. 18 § 3. Subdivisions 2 and 3 of section 179-f of the state finance law, 19 subdivision 2 as amended by chapter 36 of the laws of 2016, subdivision 20 3 as amended by chapter 568 of the laws of 2015, are amended, and three 21 new subdivisions 7, 8 and 9 are added to read as follows: 22 2. The required payment date shall be thirty calendar days, excluding 23 legal holidays, provided, however, that for a small business, preferred 24 source, service disabled veteran-owned business, or minority and women- 25 owned business enterprise the required payment date shall be fifteen 26 calendar days, excluding legal holidays, absent a showing by the 27 contracting agency of circumstances beyond its control, provided that 28 the small business submits its invoice electronically, in conformance 29 with the policies and procedures of the accounting and financial manage- 30 ment system of state government and identifies that it is seeking expe- 31 dited payment as a small business, or in the case of final payments on 32 highway construction contracts seventy-five calendar days, excluding 33 legal holidays, after receipt of an invoice for the amount of the 34 contract payment due; except when: 35 (a) the state comptroller in the course of his or her audit determines 36 that there is reasonable cause to believe that payment may not properly 37 be due, in whole or in part; 38 (b) in accordance with specific statutory or contractual provisions, 39 payment must be preceded by an inspection period or by an audit to 40 determine the resources applied or used by a contractor in fulfilling 41 the terms of the contract; 42 (c) the necessary state government appropriation required to authorize 43 payment has yet to be enacted; 44 (d) [a proper invoice must be examined by the federal government prior45to payment;46(e)] the goods or property have not been delivered or the services 47 have not been rendered by the contractor in compliance with the terms or 48 conditions of the contract; 49 [(f)] (e) the required payment date is modified in accordance with 50 subdivision three of this section; or 51 [(g)] (f) in the case of final payments on highway construction 52 contracts the commissioner of transportation determines that the 53 contractor has failed to properly submit the necessary documents and 54 other submissions prescribed by the contract specifications and require- 55 ments, by the provisions of subdivision eight of section thirty-eight of 56 the highway law, and by all other applicable state and federal laws inA. 2503 3 1 order to enable the department of transportation to process the final 2 payment properly and expeditiously. 3 Any time taken to satisfy or rectify any of the types of conditions 4 described in paragraphs (a) through [(e)] (d) or [(g)] (f) of this 5 subdivision shall extend the required payment date by an equal period of 6 time, provided, however, that for small businesses, preferred sources, 7 service disabled veteran-owned businesses, or minority and women-owned 8 business enterprises, the required payment date shall be fifteen calen- 9 dar days, excluding legal holidays, after such conditions have been 10 satisfied or rectified, and provided further that all reasonable and 11 practicable efforts shall be taken to satisfy or rectify such conditions 12 as soon as possible. 13 3. Each state agency shall have fifteen calendar days after receipt of 14 an invoice by the state agency at its designated payment office, or in 15 the case of an invoice received from a small business, preferred source, 16 service disabled veteran-owned business, or minority and women-owned 17 business enterprise, seven calendar days, to notify the contractor of 18 (a) defects in the delivered goods, property, or services, (b) defects 19 in the invoice, or (c) suspected improprieties of any kind; and the 20 existence of such defects or improprieties shall prevent the commence- 21 ment of the time period specified in subdivision two of this section. 22 When a state agency fails to notify a contractor of such defects or 23 suspected improprieties within fifteen calendar days, or seven calendar 24 days if such contractor is a small business, preferred source, service 25 disabled veteran-owned business, or minority and women-owned business 26 enterprise, of receiving the invoice, the number of days allowed for 27 payment of the corrected proper invoice will be reduced by the number of 28 days between the fifteenth day, or seventh day if payment of such proper 29 invoice is for a small business, preferred source, service disabled 30 veteran-owned business, or minority and women-owned business enterprise, 31 and the day that notification was transmitted to the contractor. If the 32 state agency, in such situations, fails to provide reasonable grounds 33 for its contention that a defect or impropriety exists, the required 34 payment date shall be calculated from the date of receipt of an invoice. 35 7. As used in this section, "preferred source" shall mean a qualified 36 charitable not-for-profit agency for the blind approved for such 37 purposes by the commissioner of the office of children and family 38 services, any special employment program serving mentally ill persons 39 which is operated by facilities within the office of mental health and 40 is approved for such purposes by the commissioner of mental health, a 41 qualified charitable not-for-profit agency for other severely disabled 42 persons approved for such purposes by the commissioner of education or 43 incorporated under the laws of this state and approved for such purposes 44 by the commissioner of education, or a qualified charitable not-for-pro- 45 fit workshop for veterans approved for such purposes by the commissioner 46 of education or incorporated under the laws of this state and approved 47 for such purposes by the commissioner of education. 48 8. As used in this section, "certified service disabled veteran-owned 49 business enterprise" shall have the same meaning as set forth in article 50 seventeen-B of the executive law. 51 9. As used in this section, "minority and women-owned business enter- 52 prise" shall have the same meaning as set forth in article fifteen-A of 53 the executive law. 54 § 4. Section 4-a of the executive law, as added by chapter 175 of the 55 laws of 2010, is amended to read as follows:A. 2503 4 1 § 4-a. Chief diversity officer. A chief diversity officer for the 2 state shall be appointed by the governor and shall receive a salary to 3 be fixed by the governor within the amount appropriated therefor. The 4 chief diversity officer's responsibilities shall include the following: 5 1. Advise and assist the governor in formulating policies relating to 6 workforce diversity including the use of preferred sources, service 7 disabled veteran-owned business enterprises and minority and [women's] 8 women-owned business enterprises; 9 2. Work with the director of the division of minority and women's 10 business development and the division service disabled veteran's busi- 11 ness development to prepare an annual plan for ensuring full compliance 12 with [article fifteen-a] articles fifteen-A and seventeen-B of [the13executive law] this chapter and article eleven of the state finance law 14 by state agencies and the use of diversity practices and preferred 15 sources by such agencies and public authorities; 16 3. Work with the commissioner of the office of children and family 17 services to prepare an annual plan for ensuring full compliance with 18 section one hundred sixty-two of the state finance law by state agen- 19 cies; 20 4. Work with the director of the office of general services and the 21 division of service disabled veterans' business development to prepare 22 an annual plan for ensuring full compliance with the service-disabled 23 veteran-owned business act by state agencies; 24 5. Advise the governor and the agencies regarding any measures neces- 25 sary to ensure full compliance with [article fifteen-a] articles 26 fifteen-A and seventeen-B of this chapter and article eleven of the 27 state finance law in connection with the use of diversity and service 28 disabled veterans practices and preferred source plans by such agencies 29 and by state public authorities; 30 [4.] 6. Serve as a member of the state procurement council established 31 under section one hundred sixty-one of the state finance law; 32 [5.] 7. Serve as the governor's liaison with organizations represent- 33 ing minority and women-owned business enterprises, preferred sources and 34 service disabled veteran-owned business enterprises and other organiza- 35 tions related to diversity in the state workforce and in state contract- 36 ing; 37 [6.] 8. Serve as the governor's liaison to the small business advisory 38 council for issues related to the creation of a diverse workforce and 39 state procurement practices relating to minority and women-owned busi- 40 ness enterprises, preferred sources and service disabled veteran-owned 41 business enterprises; 42 [7.] 9. Review and consult with the director of minority and women's 43 business development [regarding policies], the director of the division 44 of service disabled veterans' business development and the commissioner 45 of the office of children and family services relating to minority and 46 women-owned business [enterprise] enterprises, service disabled veter- 47 an-owned business enterprises and preferred sources contract specialists 48 at state agencies; and 49 [8.] 10. Engage in other actions assigned to him or her by the gover- 50 nor relating to diversity in hiring or promotion of the state workforce 51 and in encouraging diversity practices and compliance with [article52fifteen-a] articles fifteen-A and seventeen-B of this chapter and arti- 53 cle eleven of the state finance law in procurement. 54 § 5. This act shall take effect immediately.
