S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5593

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                              March 4, 2013
                               ___________

Introduced  by M. of A. BRENNAN -- Multi-Sponsored by -- M. of A. JACOBS
  -- read once and referred to the Committee on  Corporations,  Authori-
  ties and Commissions

AN  ACT to amend the public authorities law, in relation to oversight of
  public authority contracts

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  2824 of the public authorities law is amended by
adding a new subdivision 9 to read as follows:
  9. THE GOVERNING BODY OF  EVERY  STATE  AUTHORITY  SHALL  ESTABLISH  A
PROCUREMENT  POLICY COMMITTEE THAT SHALL CONSIST OF AT LEAST THREE INDE-
PENDENT MEMBERS, UNLESS THERE ARE INSUFFICIENT SEATS  ON  THE  GOVERNING
BODY  ITSELF  TO ALLOW FOR THE APPOINTMENT OF AT LEAST THREE INDEPENDENT
MEMBERS, IN WHICH CASE THE PROCUREMENT POLICY COMMITTEE SHALL CONSIST OF
ALL THE INDEPENDENT MEMBERS OF THE GOVERNING BODY,  AND  SUCH  COMMITTEE
SHALL  BE  RESPONSIBLE  FOR  ISSUING APPROPRIATE RULES OR GUIDELINES FOR
OVERSIGHT OF ALL CONTRACTING MATTERS IN ACCORDANCE WITH RULES OR  GUIDE-
LINES  ADOPTED  BY  THE  GOVERNING BODY PURSUANT TO SECTION TWENTY-EIGHT
HUNDRED SEVENTY-NINE OF THIS ARTICLE.
  S 2. Section 2879 of the public authorities law, as amended by chapter
564 of the laws of 1988, paragraph (b) of subdivision 3  as  amended  by
chapter  45  of  the  laws of 1994, subparagraph (i) of paragraph (b) of
subdivision 3 and subdivision 6 as amended, paragraphs  (f),  (g),  (h),
(i) and (j) of subdivision 3 as added and paragraphs (k), (l), (m), (n),
(o) and (p) of subdivision 3 as relettered by chapter 174 of the laws of
2010,  subparagraph (iv) of paragraph (b) of subdivision 3 as amended by
chapter 383 of the laws of 1994, paragraph (m) of subdivision 3 as added
by chapter 862 of the laws of 1990, paragraph (n) of subdivision  3  and
paragraph  (a) of subdivision 5 as amended by chapter 531 of the laws of
1993, paragraphs (o) and (p) of subdivision 3 and subdivision 5 as added
and paragraph (a) of subdivision 8 as amended, subdivisions 7, 8  and  9

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09458-01-3
              

A. 5593                             2

as  renumbered  by  chapter  844  of  the laws of 1992, paragraph (b) of
subdivision 5 as amended by chapter 684 of the laws  of  1994,  subpara-
graph (iii) of paragraph (b) and paragraphs (c) and (d) of subdivision 5
as  amended  by  chapter  383 of the laws of 2000, is amended to read as
follows:
  S 2879. Procurement, PUBLIC WORK, CONSTRUCTION AND REVENUE  contracts.
1. (A) Every [public] STATE authority [and public benefit corporation, a
majority  of the members of which consist of persons either appointed by
the governor or who serve as members by virtue of holding a civil office
of the state, or a combination thereof, (such entities to be hereinafter
in this section referred to as "corporation")] shall adopt by resolution
comprehensive RULES OR guidelines which (I) detail  the  [corporation's]
STATE  AUTHORITY'S  operative policy and instructions regarding the use,
awarding,  monitoring  and  reporting  of  procurement,   PUBLIC   WORK,
CONSTRUCTION  AND  REVENUE contracts[. Guidelines], AND (II) DESIGNATE A
CONTRACTING OFFICER WHO SHALL BE RESPONSIBLE FOR THE PUBLIC  AUTHORITY'S
COMPLIANCE  WITH,  AND  ENFORCEMENT  OF,  SUCH RULES OR GUIDELINES. SUCH
RULES OR GUIDELINES SHALL BE CONSISTENT WITH, AND SHALL REQUIRE A  STATE
AUTHORITY'S  CONTRACTING ACTIVITIES TO COMPLY WITH THE PROVISIONS OF THE
STATE FINANCE LAW OR ANY OTHER LAW APPLICABLE TO CONTRACTS OF THE STATE,
EXCEPT THAT SUCH RULES OR GUIDELINES MAY BE STRICTER THAN THE PROVISIONS
OF THE STATE FINANCE LAW OR OTHER LAW APPLICABLE TO STATE CONTRACTS IF A
STATE AUTHORITY DETERMINES THAT ADDITIONAL SAFEGUARDS ARE  NECESSARY  TO
ASSURE  THE INTEGRITY OF ITS OPERATIONS. RULES OR GUIDELINES approved by
the  [corporation]  STATE  AUTHORITY  shall  be  annually  reviewed  and
approved  by  the  [corporation.] GOVERNING BODY OF THE STATE AUTHORITY.
NOT MORE THAN NINETY DAYS AFTER  THE  CLOSE  OF  THE  STATE  AUTHORITY'S
FISCAL  YEAR, THE STATE AUTHORITY SHALL FILE WITH THE COMPTROLLER A COPY
OF THE RULES OR GUIDELINES MOST RECENTLY REVIEWED AND  APPROVED  BY  THE
STATE  AUTHORITY, INCLUDING THE NAME OF THE STATE AUTHORITY'S DESIGNATED
CONTRACTING OFFICER. AT THE TIME OF FILING SUCH RULES OR GUIDELINES WITH
THE COMPTROLLER, EVERY STATE AUTHORITY SHALL ALSO  POST  SUCH  RULES  OR
GUIDELINES  ON THE STATE AUTHORITY'S INTERNET WEBSITE. PROCUREMENT RULES
OR GUIDELINES POSTED ON THE STATE AUTHORITY'S INTERNET WEBSITE SHALL  BE
MAINTAINED  ON  SUCH  WEBSITE  AT  LEAST  UNTIL THE PROCUREMENT RULES OR
GUIDELINES FOR THE FOLLOWING YEAR ARE POSTED ON SUCH WEBSITE.
  (B) THE PROCUREMENT, PUBLIC WORK, CONSTRUCTION, AND REVENUE  CONTRACTS
OF  A  STATE  AUTHORITY SHALL BE SUBJECT TO PRIOR REVIEW AND APPROVAL BY
THE COMPTROLLER, IF THE COMPTROLLER, IN HIS OR  HER  DISCRETION,  DETER-
MINES  THAT  SUCH  REVIEW  AND  APPROVAL SHALL BE REQUIRED. IF THE COMP-
TROLLER DETERMINES THAT ANY CONTRACT OR CATEGORY OF CONTRACTS OF A STATE
AUTHORITY OR CATEGORY OF STATE AUTHORITIES REQUIRES  DIRECT  SUPERVISION
IN THE FORM OF PRE-APPROVAL OF CONTRACTS AND THE COMPTROLLER SO NOTIFIES
ANY  STATE  AUTHORITY  OF  SUCH  DETERMINATION, THEN NO SUCH CONTRACT OR
AGREEMENT BY SUCH STATE AUTHORITY SHALL BE A VALID ENFORCEABLE  CONTRACT
UNLESS  SUCH CONTRACT SHALL FIRST BE APPROVED BY THE COMPTROLLER. IN THE
EVENT THAT THE COMPTROLLER NOTIFIES ANY STATE  AUTHORITY  THAT  APPROVAL
SHALL BE REQUIRED THEN THE STATE AUTHORITY SHALL (I) INCLUDE IN ALL SUCH
CONTRACTS A PROVISION INFORMING THE OTHER PARTIES TO SUCH CONTRACTS THAT
THE  SAME  ARE  NOT  VALID  AND  ENFORCEABLE  WITHOUT  THE COMPTROLLER'S
APPROVAL, AND (II) PUBLISH A NOTICE ON SUCH STATE  AUTHORITY'S  INTERNET
WEBSITE  DISCLOSING THAT SUCH CONTRACTS SHALL NOT BE VALID AND ENFORCEA-
BLE WITHOUT THE COMPTROLLER'S APPROVAL. NOTHING IN THIS PARAGRAPH  SHALL
BE DEEMED TO LIMIT THE COMPTROLLER'S EXISTING AUTHORITY TO SUPERVISE THE
ACCOUNTS OF PUBLIC AUTHORITIES.

A. 5593                             3

  2.   For   purposes   of   this  section,  procurement,  PUBLIC  WORK,
CONSTRUCTION OR REVENUE contracts shall mean any written agreement OF  A
STATE  AUTHORITY for the acquisition of goods or services of any kind OR
THE CONSTRUCTION OF A PROJECT OF ANY KIND, in the  actual  or  estimated
[amount of five thousand dollars or more] AMOUNTS PROVIDED FOR CONTRACTS
OF THE STATE IN SECTION ONE HUNDRED TWELVE OF THE STATE FINANCE LAW.
  3.  The  RULES  OR guidelines approved by [the corporation] EACH STATE
AUTHORITY shall include, but not be limited to the following:
  (a) A description of the types of goods  purchased  OR  THE  TYPES  OF
PROJECTS  CONSTRUCTED,  [and]  for procurement contracts for services, a
description of those areas of responsibility and oversight requiring the
use of personal services  and  the  reasons  for  the  use  of  personal
services  in such areas, AND FOR REVENUE CONTRACTS, A DESCRIPTION OF THE
TYPES OF CONSIDERATIONS GIVEN BY THE PUBLIC AUTHORITY, AND THE  REVENUES
EXPECTED TO BE GENERATED.
  (b)  Requirements  regarding  the  [selection of contractors] AWARD OF
CONTRACTS, which shall include provisions:
  (i) for the [selection of such contractors] AWARD OF  CONTRACTS  on  a
competitive  basis,  and  provisions relating to the circumstances under
which the [board] GOVERNING BODY may by  resolution  waive  competition,
including, notwithstanding any other provision of law requiring competi-
tion,  the purchase of goods or services from small business concerns or
those certified as minority  or  women-owned  business  enterprises,  or
goods  or  technology  that are recycled or remanufactured, in an amount
not to exceed two hundred thousand dollars without a formal  competitive
process,  BUT ONLY IF SUCH WAIVER WOULD BE PERMISSIBLE UNDER THE LIMITED
CIRCUMSTANCES PERMITTED BY THE STATE FINANCE LAW, AND  ONLY  IF  SUCH  A
WAIVER IS APPROVED BY A TWO-THIRDS MAJORITY OF THE ENTIRE GOVERNING BODY
OF THE STATE AUTHORITY;
  (ii)   describing   when   the  award  of  procurement,  PUBLIC  WORK,
CONSTRUCTION OR REVENUE contracts shall require approval of the  [board]
GOVERNING  BODY  by  resolution,  provided  that  any contract involving
services to be rendered, A PROJECT TO BE CONSTRUCTED, OR  CONSIDERATIONS
TO  BE  GIVEN  over  a  period  in  excess of one year shall require the
approval of the [board] GOVERNING  BODY  by  resolution  and  an  annual
review of the contract by the [board] GOVERNING BODY;
  (iii) setting forth responsibilities of contractors;
  (iv)  as used in this subparagraph, the term "professional firm" shall
be defined as any individual or sole proprietorship, partnership, corpo-
ration, association, or other legal entity permitted by law to  practice
the professions of architecture, engineering or surveying.
  [The corporation] A STATE AUTHORITY shall not refuse to negotiate with
a  professional firm solely because the ratio of the "allowable indirect
costs" to direct labor costs of the  professional  firm  or  the  hourly
labor  rate  in  any  labor  category of the professional firm exceeds a
limitation generally set by the [corporation]  STATE  AUTHORITY  in  the
determination of the reasonableness of the estimated cost of services to
be rendered by the professional firm, but rather the [corporation] STATE
AUTHORITY  should  also consider the reasonableness of cost based on the
total estimated cost of the  service  of  the  professional  firm  which
should  include,  among  other things, all the direct labor costs of the
professional firm for such services plus all "allowable indirect costs,"
other direct costs, and negotiated  profit  of  the  professional  firm.
"Allowable  indirect  costs" of a professional firm are defined as those
costs generally associated with overhead which  cannot  be  specifically

A. 5593                             4

identified  with a single project or contract and are considered reason-
able and allowable under specific state contract or allowability limits.
  (c)  An  identification of those areas or types of contracts for which
minority or women-owned business enterprises  may  best  bid  so  as  to
promote  and  assist  participation by such enterprises and facilitate a
fair share of the awarding of contracts to  such  enterprises.  For  the
purposes of this section, a minority business enterprise means any busi-
ness  enterprise, including a sole proprietorship, partnership or corpo-
ration that is:
  (i) at least fifty-one percent owned by one  or  more  minority  group
members  or  in the case of a publicly-owned business at least fifty-one
percent of the common stock or other voting interests of which is  owned
by one or more minority group members;
  (ii)  an  enterprise in which the minority ownership is real, substan-
tial and continuing;
  (iii) an enterprise in which the minority ownership has and  exercises
the authority to control independently the day-to-day business decisions
of the enterprise; and
  (iv)  an enterprise authorized to do business in New York state, inde-
pendently owned and operated, and not dominant in its field.
  (d) For the purposes of this section, a minority group member means  a
United  States citizen or permanent resident alien who is and can demon-
strate membership in one of the following groups:
  (i) Black persons having origins in any of the  Black  African  racial
groups not of Hispanic origin;
  (ii)  Hispanic  persons  of  Mexican,  Puerto Rican, Dominican, Cuban,
Central or South American of either Indian or Hispanic  origin,  regard-
less of race;
  (iii)  Asian and Pacific Islander persons having origins in any of the
Far East, Southeast  Asia,  the  Indian  sub-continent  or  the  Pacific
Islands; or
  (iv)  Native  American  persons  having origins in any of the original
peoples of North America.
  (e) For the purposes of this section, a  women-owned  business  enter-
prise  means  a  business  enterprise,  including a sole proprietorship,
partnership or corporation which is:
  (i) at least fifty-one percent owned by  one  or  more  United  States
citizens  or permanent resident aliens who are women or in the case of a
publicly-owned business at least fifty-one percent of the  common  stock
or other voting interests of which is owned by United States citizens or
permanent resident aliens who are women;
  (ii)  an  enterprise in which the ownership interest of women is real,
substantial and continuing;
  (iii) an enterprise in which the women ownership has and exercises the
authority to control independently the day-to-day business decisions  of
the enterprise; and
  (iv)  an enterprise authorized to do business in New York state, inde-
pendently owned and operated, and not dominant in its field.
  (f) Requirements for the designation of one or more  senior  staff  of
the  [corporation]  STATE AUTHORITY to oversee the [corporation's] STATE
AUTHORITY'S programs established to  promote  and  assist:  (i)  partic-
ipation by certified minority or women-owned business enterprises in the
[corporation's]  STATE AUTHORITY'S procurement opportunities and facili-
tation of the award of procurement contracts to such  enterprises;  (ii)
the  utilization  of  certified minority and women-owned business enter-
prises as subcontractors and suppliers by  entities  having  procurement

A. 5593                             5

contracts with the [corporation] STATE AUTHORITY; and (iii) the utiliza-
tion  of  partnerships,  joint  ventures  or  other similar arrangements
between certified minority  and  women-owned  business  enterprises  and
other entities having procurement contracts with the [corporation] STATE
AUTHORITY.    Such  staff  shall be familiar with the procurement of the
types  of  construction,  financial,  legal  or  professional   services
utilized  by  the  [corporation] STATE AUTHORITY, report directly to the
[corporation's] STATE AUTHORITY'S executive director, president or chief
executive officer and either directly or through their designees partic-
ipate in the procurement process.
  (g) Requirements for providing notice, in addition to any other notice
of procurement opportunities required by law, to professional and  other
organizations  that  serve minority and women-owned business enterprises
providing the types of services  procured  by  the  [corporation]  STATE
AUTHORITY.
  (h)  Procedures  for maintaining lists of qualified certified minority
and women-owned business enterprises, including professional firms  that
have  expressed  an  interest  in  doing business with the [corporation]
STATE AUTHORITY and ensuring that such lists are updated regularly.  The
[corporation]  STATE AUTHORITY shall also consult the lists of certified
minority and women-owned business enterprises maintained by the  depart-
ment of economic development pursuant to article fifteen-A of the execu-
tive law.
  (i) The establishment of appropriate goals for participation by minor-
ity or women-owned business enterprises in procurement contracts awarded
by the [corporation] STATE AUTHORITY and for the utilization of minority
and  women-owned enterprises as subcontractors and suppliers by entities
having procurement contracts with  the  [corporation]  STATE  AUTHORITY.
Statewide  numerical  participation target goals shall be established by
each authority based on the findings of the two thousand  ten  disparity
study.
  (j)  Requirements to conduct procurements in a manner that will enable
the [corporation]  STATE  AUTHORITY  to  achieve  the  maximum  feasible
portion  of  the  goals  established  pursuant  to paragraph (i) of this
subdivision and that eliminates barriers to  participation  by  minority
and  women-owned  business  enterprises  in  the  [corporation's]  STATE
AUTHORITY'S procurements. Such procurement  requirements  shall  include
the following:
  (A)  Measures and procedures to ensure that certified businesses shall
be given the opportunity  for  maximum  feasible  participation  in  the
performance  of  state  contracts  and  to assist in the [corporation's]
STATE AUTHORITY'S identification of  those  state  contracts  for  which
certified  businesses may best bid to actively and affirmatively promote
and assist their participation in the performance of state contracts  so
as  to  facilitate  the [corporation's] STATE AUTHORITY'S achievement of
the maximum feasible portion of the goals for state  contracts  to  such
businesses;
  (B)  Provisions  designating  the division of minority and women-owned
business development to certify and decertify minority  and  women-owned
business  enterprises for all [corporations] STATE AUTHORITIES through a
single process that meets applicable state and federal requirements;
  (C) A requirement that each contract solicitation document  accompany-
ing  each  solicitation  set  forth  the expected degree of minority and
women-owned business enterprise participation based, in part, on:
  I. the potential subcontract  opportunities  available  in  the  prime
procurement contract; and

A. 5593                             6

  II.  the  availability  of certified minority and women-owned business
enterprises to respond competitively to the potential subcontract oppor-
tunities;
  (D)  A  requirement  that each [corporation] STATE AUTHORITY provide a
current list of certified minority business enterprises to each prospec-
tive contractor;
  (E) Provisions relating to joint ventures, under which  a  bidder  may
count  toward  meeting  its  minority  business enterprise participation
goal, the minority and women-owned business enterprise  portion  of  the
joint venture;
  (F) Provisions under which the [corporation] STATE AUTHORITY may waive
obligations of the contractor relating to minority and women-owned busi-
ness  enterprise  participation after a showing of good faith efforts to
comply with  the  requirements  of  this  act  pursuant  to  the  waiver
provisions  contained  in subdivision six of section three hundred thir-
teen of the executive law;
  (G) A requirement that the [corporation] STATE AUTHORITY  verify  that
minority and women-owned business enterprises listed in a successful bid
are actually participating to the extent listed in the project for which
the bid was submitted;
  (H)  In  the  implementation  of this section, the contracting [corpo-
ration] STATE AUTHORITY shall:
  I. consider,  where  practicable,  the  severability  of  construction
projects and other bundled contracts;
  II.  implement  a  program  that  will  enable the [corporation] STATE
AUTHORITY to evaluate each contract to determine the appropriateness  of
the goal pursuant to paragraph (i) of this subdivision;
  III.  consider  compliance  with  the  requirements of any federal law
concerning opportunities for minority and  women-owned  business  enter-
prises which effectuates the purpose of this section; and
  IV.  consult  the  most  recent  disparity  study  pursuant to article
fifteen-A of the executive law.
  (k) A listing of the types of provisions to be contained  in  procure-
ment  contracts, including provisions concerning the nature and monitor-
ing of the work to be performed,  the  use  of  corporate  supplies  and
facilities, the use of corporate personnel and any other provisions.
  (l)  Provisions  regarding  procurement contracts which involve former
officers or employees of the [corporation] STATE AUTHORITY.
  (m) Procedures regarding procurement contracts which are  exempt  from
the  publication requirements of article four-C of the economic develop-
ment law; PROVIDED THAT SUCH PROCEDURES SHALL NOT PERMIT  ANY  EXEMPTION
BEYOND  THE  EXEMPTIONS  SPECIFICALLY PERMITTED BY ARTICLE FOUR-C OF THE
ECONOMIC DEVELOPMENT LAW.
  (n) Policies to promote the participation by New York  state  business
enterprises  and  New  York  state  residents  in procurement contracts,
including, but not limited to:
  (i) providing for the [corporation] STATE AUTHORITY to collect and  to
consult  the  specifications  of  New York state business enterprises in
developing specifications for any procurement contract for the  purchase
of  goods where possible, practicable, feasible and consistent with open
bidding, except for procurement contracts for  which  the  [corporation]
STATE  AUTHORITY  would  be expending funds received from another state.
The [corporation] STATE AUTHORITY shall, where feasible, make use of the
stock item specification forms prepared by the commissioner  of  general
services,  and  where  necessary,  consult  with the commissioner of the

A. 5593                             7

office of general services, in developing such specifications  and  make
such determinations; and
  (ii)  with  the  cooperation of the department of economic development
and through cooperative efforts  with  contractors,  providing  for  the
notification  of New York state business enterprises of opportunities to
participate as subcontractors and suppliers on procurement contracts let
by the [corporation] STATE AUTHORITY in an amount estimated to be  equal
to or greater than one million dollars and promulgating procedures which
will  assure  compliance  by  contractors  with  such notification. Once
awarded the contract such contractors shall document  their  efforts  to
encourage  the  participation  of New York state business enterprises as
suppliers and subcontractors on procurement contracts equal to or great-
er than one million dollars. Documented efforts by a successful contrac-
tor shall consist of and be limited to showing that such contractor  has
(a) solicited bids, in a timely and adequate manner, from New York state
business  enterprises including certified minority and women-owned busi-
ness, or (b) contacted the New York state department of economic  devel-
opment to obtain listings of New York state business enterprises, or (c)
placed  notices for subcontractors and suppliers in newspapers, journals
and other trade publications distributed  in  New  York  state,  or  (d)
participated  in  bidder  outreach conferences. If the contractor deter-
mines that New York state business  enterprises  are  not  available  to
participate on the contract as subcontractors or suppliers, the contrac-
tor shall provide a statement indicating the method by which such deter-
mination  was made. If the contractor does not intend to use subcontrac-
tors on the contract, the contractor shall provide a statement verifying
such intent; and
  (iii) except for procurement contracts  for  which  the  [corporation]
STATE  AUTHORITY  would  be expending funds received from another state,
the [corporation] STATE AUTHORITY shall include  in  all  bid  documents
provided  to  potential  bidders a statement that information concerning
the availability of New  York  state  subcontractors  and  suppliers  is
available  from  the  New York state department of economic development,
which shall include the directory of certified minority and  women-owned
businesses,  and it is the policy of New York state to encourage the use
of New York state subcontractors  and  suppliers,  and  to  promote  the
participation  of minority and women-owned businesses where possible, in
the procurement of goods and services; and
  (iv) with the cooperation of the community services  division  of  the
department  of  labor  and through cooperative efforts with contractors,
providing for the notification of New York state residents of employment
opportunities arising in New York state out of procurement contracts let
by the [corporation] STATE AUTHORITY in an amount estimated to be  equal
to  or  greater  than  one  million dollars; and promulgating procedures
which will assure compliance by contractors with  such  notification  by
requiring  contractors to submit post-award compliance reports document-
ing their efforts to provide such notification through listing any  such
positions  with  the  community services division, or providing for such
notification in such manner as is consistent  with  existing  collective
bargaining contracts or agreements; and
  (v)  including in each set of documents soliciting bids on procurement
contracts to let by the [corporation] STATE AUTHORITY a statement  noti-
fying  potential  bidders  located in foreign countries that the [corpo-
ration] STATE AUTHORITY may assign or otherwise transfer offset  credits
created  by  such  procurement  contract to third parties located in New
York state; providing for the assignment or other form  of  transfer  of

A. 5593                             8

offset  credits created by such procurement contracts, directly or indi-
rectly, to third parties located in New York state, in  accordance  with
the  written directions of the commissioner of economic development; and
providing  for  the [corporation] STATE AUTHORITY to otherwise cooperate
with the department of economic development in efforts  to  get  foreign
countries  to  recognize offset credits assigned or transferred to third
parties located in New York state created by such procurement contracts;
and
  (vi) promulgating procedures which will  assure  compliance  with  the
federal  equal  employment  opportunity  act  of  1972 (P.L. 92-261), as
amended, by contractors of the [corporation] STATE AUTHORITY.
  (o) For the purposes of this  section,  a  "New  York  state  business
enterprise"  means  a  business enterprise, including a sole proprietor-
ship, partnership, or corporation, which offers for  sale  or  lease  or
other  form  of  exchange,  goods  which are sought by the [corporation]
STATE AUTHORITY and which are substantially  manufactured,  produced  or
assembled in New York state, or services which are sought by the [corpo-
ration] STATE AUTHORITY and which are substantially performed within New
York state.
  (p)  For  the  purposes of this section, a "New York resident" means a
natural person who maintains  a  fixed,  permanent  and  principal  home
located  within New York state and to which such person, whenever tempo-
rarily located, always intends to return.
  4. Each [corporation] STATE AUTHORITY shall have the power  from  time
to time to amend such procurement, PUBLIC WORK, CONSTRUCTION AND REVENUE
contract  RULES  OR guidelines in accordance with the provisions of this
section.
  5. (a) Each [corporation] STATE AUTHORITY shall notify the commission-
er of economic development of the award of a procurement,  PUBLIC  WORK,
CONSTRUCTION  OR  REVENUE contract for the purchase of goods or services
from a foreign business enterprise in an amount equal to or greater than
one million dollars simultaneously with notifying the successful  bidder
therefor. No [corporation] STATE AUTHORITY shall thereafter enter into a
procurement,  PUBLIC  WORK,  CONSTRUCTION  OR  REVENUE contract for said
goods or services until at least fifteen days has  elapsed,  except  for
procurement  contracts  awarded  on  an  emergency or critical basis, or
where the commissioner of economic development waives the provisions  of
this sentence. The notification to the commissioner of economic develop-
ment  shall include the name, address and telephone and facsimile number
of the foreign business enterprise, a brief description of the goods  or
services  to  be obtained pursuant to the proposed procurement contract,
the amount of  the  proposed  procurement  contract,  the  term  of  the
proposed procurement, PUBLIC WORK, CONSTRUCTION OR REVENUE contract, and
the  name of the individual at the foreign business enterprise or acting
on behalf of the same who is principally responsible  for  the  proposed
procurement, PUBLIC WORK, CONSTRUCTION OR REVENUE contract. Such notifi-
cation  shall be used by the commissioner of economic development solely
to provide notification to New York state business enterprises of oppor-
tunities to participate as subcontractors and suppliers on such procure-
ment, PUBLIC WORK, CONSTRUCTION OR REVENUE  contracts,  to  promote  and
encourage  the location and development of new business in the state, to
assist New York state business enterprises in obtaining  offset  credits
from  foreign  countries, and to otherwise investigate, study and under-
take means of promoting and encouraging the prosperous  development  and
protection  of  the  legitimate  interest  and welfare of New York state
business enterprises, industry and commerce.

A. 5593                             9

  (b) As used in this  section,  the  following  terms  shall  have  the
following meanings, unless a different meaning appears from the context:
  (i)  "Foreign  business  enterprise" shall mean a business enterprise,
including a  sole  proprietorship,  partnership  or  corporation,  which
offers for sale, lease or other form of exchange, goods which are sought
by  the  [corporation]  STATE  AUTHORITY  and  which  are  substantially
produced outside New York state, or services,  other  than  construction
services, sought by the [corporation] STATE AUTHORITY which are substan-
tially  performed  outside  New York state. For purposes of construction
services, foreign business enterprise shall mean a business  enterprise,
including  a  sole proprietorship, partnership or corporation, which has
its principal place of business outside New York state.
  (ii) "New York state business enterprise" shall mean a business enter-
prise, including a  sole  proprietorship,  partnership  or  corporation,
which  offers  for  sale or lease or other form of exchange, goods which
are sought by the [corporation] STATE AUTHORITY and which  are  substan-
tially  manufactured,  produced  or  assembled  in  New  York  state, or
services, other than construction services,  which  are  sought  by  the
[corporation]  STATE  AUTHORITY  and  which  are substantially performed
within New York state. For purposes of construction services, a New York
state business enterprise shall mean a business enterprise, including  a
sole  proprietorship, partnership, or corporation, which has its princi-
pal place of business in New York state.
  (iii) "Discriminatory jurisdiction"  shall  mean  any  other  country,
nation, province, state or political subdivision thereof which employs a
preference  or  price distorting mechanism to the detriment of or other-
wise discriminates against a New York state business enterprise  in  the
procurement  of  goods  and  services  by the same or a non-governmental
entity influenced by the same. Such discrimination may include,  but  is
not  limited  to,  any  law, regulation, procedure or practice, terms or
license, authorization, or funding or bidding rights which  requires  or
encourages  any  agency  or  instrumentality  of  the state or political
subdivision thereof or non-governmental entity influenced by the same to
discriminate against a New York state business enterprise.
  (c) In including any additional business enterprises on invitations to
bid for the procurement of goods or services, PUBLIC WORK,  CONSTRUCTION
PROJECTS OR REVENUE OR OTHER CONSIDERATIONS, the chief executive officer
of the [corporation] STATE AUTHORITY shall not include any foreign busi-
ness  enterprise  which has its principal place of business located in a
discriminatory jurisdiction  contained  on  the  list  prepared  by  the
commissioner  of  economic  development  pursuant  to subdivision six of
section one hundred sixty-five of the state finance law, except,  howev-
er,  business  enterprises which are New York state business enterprises
as defined by this section. The [corporation] STATE AUTHORITY may  waive
the  application  of  the  provisions of this section whenever the chief
executive officer of the [corporation]  STATE  AUTHORITY  determines  in
writing  that  it  is  in  the best interests of the state to do so. The
chief executive officer  of  the  [corporation]  STATE  AUTHORITY  shall
deliver  each  such  waiver  to  the COMPTROLLER AND THE commissioner of
economic development.
  (d) A [corporation] STATE AUTHORITY shall not enter  into  a  contract
with  a  foreign  business  enterprise  which has its principal place of
business located in a discriminatory jurisdiction contained on the  list
prepared  by the commissioner of economic development pursuant to subdi-
vision six of section one hundred sixty-five of the state  finance  law.
The  provisions  of  this  section  may be waived by the chief executive

A. 5593                            10

officer of the [corporation] STATE  AUTHORITY  if  the  chief  executive
officer  of the [corporation] STATE AUTHORITY determines in writing that
it is in the best interests of the state to do so. The  chief  executive
officer  of  the  [corporation]  STATE AUTHORITY shall deliver each such
waiver to the COMPTROLLER AND THE commissioner of economic development.
  6. Each [corporation] STATE AUTHORITY, as part of the RULES OR  guide-
lines  established  pursuant to subdivision three of this section, shall
establish policies  regarding  the  preparation  of  publicly  available
reports  on procurement, PUBLIC WORK, CONSTRUCTION AND REVENUE contracts
entered into by such [corporation] STATE AUTHORITY.  Such policies shall
provide, at the minimum,  for  the  preparation  of  a  report  no  less
frequently   than   annually,   summarizing  procurement,  PUBLIC  WORK,
CONSTRUCTION AND REVENUE activity by such [corporation] STATE  AUTHORITY
for  the  period  of the report, including a listing of all procurement,
PUBLIC WORK,  CONSTRUCTION  AND  REVENUE  contracts  entered  into,  all
contracts  entered into with New York state business enterprises and the
subject matter and value thereof, all contracts entered into with certi-
fied minority or women-owned business enterprises and the subject matter
and value thereof, all referrals made and all penalties imposed pursuant
to section three hundred sixteen of the  executive  law,  all  contracts
entered  into  with foreign business enterprises, and the subject matter
and value thereof, the selection process used to  select  such  contrac-
tors,  all  procurement, PUBLIC WORK, CONSTRUCTION AND REVENUE contracts
which were exempt from the publication requirements of article four-C of
the economic development law, the basis for any such exemption  and  the
status  of  existing  procurement, PUBLIC WORK, CONSTRUCTION AND REVENUE
contracts.
  7. Each [corporation]  STATE  AUTHORITY  shall  annually  prepare  and
approve  a  report on procurement, PUBLIC WORK, CONSTRUCTION AND REVENUE
contracts which shall include the RULES OR guidelines, as  specified  in
subdivision three of this section, an explanation of the RULES OR guide-
lines  and  any  amendments  thereto since the last annual report.  Such
report on procurement, PUBLIC WORK, CONSTRUCTION AND  REVENUE  contracts
may  be  a  part of any other annual report that the [corporation] STATE
AUTHORITY is required to make.
  8. (a) [Each corporation] NOT MORE THAN NINETY DAYS AFTER THE CLOSE OF
A STATE AUTHORITY'S FISCAL YEAR, EACH STATE AUTHORITY  shall  [annually]
submit  its  ANNUAL report on procurement, PUBLIC WORK, CONSTRUCTION AND
REVENUE contracts to the division of the budget and  copies  thereof  to
the  [department  of audit and control] OFFICE OF THE STATE COMPTROLLER,
the department of economic development, the senate finance committee and
the assembly ways and means committee.
  (b) Each [corporation] STATE AUTHORITY shall  make  available  to  the
public  copies  of  its report on procurement, PUBLIC WORK, CONSTRUCTION
AND REVENUE contracts upon reasonable request therefor  AND  SHALL  POST
SUCH  REPORT  ON THE STATE AUTHORITY'S INTERNET WEBSITE AT THE SAME TIME
AS SUCH REPORT IS SUBMITTED AS REQUIRED BY THIS SECTION.  EACH REPORT ON
PROCUREMENT, PUBLIC WORK, CONSTRUCTION AND REVENUE CONTRACTS  POSTED  ON
THE  STATE  AUTHORITY'S  INTERNET  WEBSITE  SHALL  BE MAINTAINED ON SUCH
WEBSITE AT LEAST UNTIL THE REPORT FOR THE FOLLOWING YEAR  IS  POSTED  ON
SUCH WEBSITE.
  [9. Nothing contained in this section shall be deemed to alter, affect
the validity of, modify the terms of or impair any contract or agreement
made  or  entered  into in violation of, or without compliance with, the
provisions of this section.]

A. 5593                            11

  S 3. Paragraph (a) of subdivision 1  and  subdivisions  5  and  12  of
section  2880  of the public authorities law, as added by chapter 183 of
the laws of 1987, are amended to read as follows:
  (a)  "Corporation"  means  every  [public] STATE authority [and public
benefit corporation a majority of the governing board members  of  which
are  either  appointed  by the governor or serve as members by virtue of
their service as an officer of a  state  department,  division,  agency,
board  or  bureau, or combination thereof], AS DEFINED IN SECTION TWO OF
THIS CHAPTER.
  5. Statement filing. Each corporation shall, within thirty days  after
the  statement's adoption, file a copy of such statement, and amendments
thereto, with the state comptroller, the state director of  the  budget,
the  [chairman]  CHAIRPERSON  of  the  senate finance committee, and the
[chairman] CHAIRPERSON of the assembly ways and means committee.  AT THE
TIME OF FILING SUCH STATEMENT, EVERY CORPORATION SHALL  ALSO  POST  SUCH
STATEMENT  ON THE CORPORATION'S INTERNET WEBSITE.  EACH STATEMENT POSTED
ON THE CORPORATION'S INTERNET WEBSITE SHALL BE UPDATED  TO  REFLECT  ANY
AMENDMENTS  THERETO, AND, AS AMENDED, SHALL BE MAINTAINED PERMANENTLY ON
SUCH WEBSITE.
  12. Public access. (a) Each corporation shall make  available  to  the
public,  upon a reasonable request therefor, copies of its statement and
annual report AND SHALL POST SUCH STATEMENT AND  ANNUAL  REPORT  ON  THE
CORPORATION'S  INTERNET  WEBSITE  AT THE SAME TIME AS SUCH STATEMENT AND
ANNUAL REPORT ARE FILED AS REQUIRED BY THIS  SECTION.    EACH  STATEMENT
POSTED ON THE CORPORATION'S INTERNET WEBSITE SHALL BE UPDATED TO REFLECT
ANY AMENDMENTS THERETO, AND, AS AMENDED, SHALL BE MAINTAINED PERMANENTLY
ON  SUCH  WEBSITE,  AND  EACH  ANNUAL REPORT POSTED ON THE CORPORATION'S
INTERNET WEBSITE SHALL BE MAINTAINED ON SUCH WEBSITE AT LEAST UNTIL  THE
ANNUAL REPORT FOR THE FOLLOWING YEAR IS POSTED ON SUCH WEBSITE.
  (b) Each contractor doing business with a corporation shall be given a
copy of that corporation's statement.
  S  4.  The  public  authorities law is amended by adding a new section
2898 to read as follows:
  S 2898. CONTRACT APPROVAL BY THE COMPTROLLER.  ANY CONTRACT OF SALE OF
PROPERTY MADE FOR OR BY ANY STATE AUTHORITY  SHALL  BE  SUBJECT  TO  THE
PRIOR  REVIEW  AND  APPROVAL  OF  THE COMPTROLLER IN ACCORDANCE WITH THE
PROVISIONS OF SECTION TWENTY-EIGHT HUNDRED SEVENTY-NINE OF THIS ARTICLE,
IF THE COMPTROLLER, IN HIS  OR  HER  DISCRETION,  DETERMINES  THAT  SUCH
REVIEW AND APPROVAL SHALL BE REQUIRED.  NOTHING IN THIS SECTION SHALL BE
DEEMED  TO  LIMIT  THE COMPTROLLER'S EXISTING AUTHORITY TO SUPERVISE THE
ACCOUNTS OF PUBLIC AUTHORITIES.
  S 5. This act shall take effect immediately.