NY S04671

Agencies must review the Department of Taxation and Finance's list of tax warrants before entering contracts with bidders or approving subcontracts to determine if the bidder has unsatisfied tax warrants filed with the Department of State.

Agencies are prohibited from entering into contracts with or formally approving subcontracts to bidders or subcontractors who have unsatisfied tax warrants filed against them.

Agencies may contract with tax warrant holders in three circumstances: emergency conditions involving danger to life, health, safety, or essential services; items available from only a single source; or if the bidder disclosed the warrant beforehand and is in good faith attempting to satisfy it or the Department of Taxation and Finance deems it de minimis.

The Comptroller must be notified before awarding contracts under emergency conditions and has authority to void contracts if the agency's justification does not meet requirements or to determine if sufficient proof exists that a bidder is satisfying a tax warrant.

The act takes effect 120 days after becoming law, with state agencies authorized to promulgate rules and regulations necessary for implementation.