S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3737
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 30, 2017
                                ___________
 
 Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
   tee on Corporations, Authorities 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.
   § 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
 as  renumbered  by  chapter  844  of  the laws of 1992, paragraph (b) of
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07495-01-7

 A. 3737                             2
 
 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:
   §  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.
   2.  For  purposes  of  this   section,   procurement,   PUBLIC   WORK,
 CONSTRUCTION  OR REVENUE contracts shall mean any written agreement OF A

 A. 3737                             3
 
 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
 identified  with a single project or contract and are considered reason-
 able and allowable under specific state contract or allowability limits.

 A. 3737                             4
 
   (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
 contracts with the [corporation] STATE AUTHORITY; and (iii) the utiliza-
 tion  of  partnerships,  joint  ventures  or  other similar arrangements

 A. 3737                             5
 
 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. 3737                             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. 3737                             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. 3737                             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. 3737                             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. 3737                            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. 3737                            11
 
   § 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.
   §  4.  The  public  authorities law is amended by adding a new section
 2898 to read as follows:
   § 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.
   § 5. This act shall take effect immediately.