What's happening
This bill prohibits New York state agencies and public authorities from contracting with entities that also provide consulting services related to the regulated activity.
Why it matters
Aims to prevent conflicts of interest. by ensuring companies that provide both consulting and operational services related to regulated activities cannot profit from both advising and contracting with the state on the same subject matter, reducing opportunities for undue influence or self-dealing.
Enhances integrity and public trust. in state procurement by closing loopholes that might allow consultants to shape regulations or policies in their favor and then bid to fulfill contracts under those same regulations.
Could limit vendor options for state agencies. , as firms with broad portfolios—including both consulting and implementation arms—would be barred from certain state contracts, potentially affecting competition and pricing.
Sets a clear legal boundary. for entities and their subsidiaries, making it easier for enforcement and compliance officers to identify and disqualify ineligible bidders, thereby standardizing procurement practices across all state agencies and public authorities.
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Who cares
Headline styles
Block Conflict Contracts
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.794
- Referred to finance
- Returned to senate
- Died in assembly
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 62–0
- Ordered to third reading cal.1958
- Committee discharged and committed to rules
Show 1 earlier action
- Referred to finance
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5571
2017-2018 Regular Sessions
IN SENATE
April 13, 2017
Introduced by Sen. HANNON -- read twice and ordered printed, and when printed to be committed to the Committee on Finance
AN ACT to amend the state finance law, in relation to prohibiting any state agency or public authority from contracting for goods and services with a contractor or a subsidiary thereof, when the contractor or a subsidiary thereof also provides consulting services or products relating to the activity for which the state agency or public authority seeks to contract
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The state finance law is amended by adding a new section 139-l to read as follows:
§ 139-l. Disqualification to contract with certain state agencies. No state department, board, bureau, commission, division, office, council or committee, or public authority with at least one member appointed by the governor or who serves as a member by virtue of holding a civil office of the state, shall contract with any entity or subsidiary thereof for the provision of any good or service related to any activities that are subject to the regulation of such state agency or public authority, when such entity or any subsidiary thereof provides, in any manner, consulting services or products relating to the activity regulated by the state agency or public authority with which it seeks to contract.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10996-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the state finance law, in relation to prohibiting any state agency or public authority from contracting for goods and services with a contractor or a subsidiary thereof, when the contractor or a subsidiary thereof also provides consulting services or products relating to the activity for which the state agency or public authority seeks to contract
Purpose
To prohibit entities that state agencies contract with from further profiting by selling goods or services related to the services they provide under the contract.
Summary of provisions
Section one adds a new State Finance Law § 139-1 to disqualify any entity or subsidiary thereof from contracting with a state department, board, bureau, commission, division, office, council, committee or public authority when the entity or subsidiary also provides consulting services or products relating to the activity regulated by the agency or authority for which it seeks to contract.
Section two provides that the act shall take effect immediately.
Justification
It is becoming more and more common for New York State agencies to outsource certain obligations or responsibilities and to contract with outside firms to conduct studies, research and audits. It is imperative that the entities performing these tasks for the state do not also have a self interest in the activity for which they are contracted. For example, the state routinely seeks contractors to develop, run and maintain information systems for the state. These contractors should not be able to take advantage of state contracts by providing services or products to the public pertaining to the very systems that they develop, implement and/or oversee for the state.
This legislation will prohibit such practices by disqualifying any entity from state contracts when the entity also provides goods or services related to the very activity that the agency or authority seeks to contract for. Thus, ensuring that entities the state contracts with are not motivated by their own interests when carrying out the tasks they are paid to perform on behalf of the state and that they are not further profiting from their performance of state contracts.
Legislative history
2015-16: S.6312 - Passed Senate
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.