Prohibits state contracts with contractors who do not provide health insurance which covers services for transgender, non-binary, and gender expansive people.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A1936
SPONSOR: Gonzalez-Rojas TITLE OF BILL:
An act to amend the state finance law, in relation to participation in
state contracts
PURPOSE:
To prohibit state contracts with contractors who do not provide their
employees with insurance that covers services for transgender, non-bi-
nary, and gender-expansive people.
SUMMARY OF PROVISIONS:
Section 1 of the bill adds a new section to the state finance law,
providing that a clause shall be interested in all contracts entered
into by the state, and any of its public departments, agencies, or offi-
cials, from entering into a contract with a contractor that has partic-
ipated or is participating or shall participate in a health plan which
does not cover transgender services. The comptroller will have the power
to declare the contract void if it is discovered that a contractor has
been participating in such a health insurance plan after the contract
was executed. The comptroller will also be given the power to issue
rules and regulations pursuant to this section.
Section 2 provides the effective date
JUSTIFICATION:
The bill is designed to address one of the problems that arise when a
person is covered by a self-funded or self-insured health plan. Under
these plans, the employer assumes the financial risk for providing
health care benefits to its employees. These plans are largely governed
at the federal level under ERISA (the Employee Retirement Income Securi-
ty Act), therefore superseding the applicability of any state law,
including GENDA. Self-funded plans are also exempt from certain
provisions of the Affordable Care Act. Additionally, self-funded plans
which enjoy "grandfather" status are afforded further exemptions under
the ACA. Unfortunately, these plans often fail to cover many health
services, including services for transgender, non-binary, and gender-ex-
pansive people. Transgender health services can include hormone therapy,
gender affirmation surgery, as well as preventative care measures like
gynecological and prostate exams.
For the state to properly address the problems presented by self-funded
plans, creative solutions are required. This bill leverages the
contracting power of our government to support transgender, non-binary,
and gender-expansive persons and their families by requiring any
contractor wishing to do business with the state to provide their
employees with health coverage that covers all people, irrespective of
their gender identity.
LEGISLATIVE HISTORY:
2022: Reported to Governmental Operations committee
FISCAL IMPLICATIONS:
None to state.
EFFECTIVE DATE:
This act shall take effect 90 days after it becomes law and will apply
to contracts entered into, renewed, or modified on or after the effec-
tive date.
STATE OF NEW YORK
________________________________________________________________________
1936
2023-2024 Regular Sessions
IN ASSEMBLY
January 23, 2023
___________
Introduced by M. of A. GONZALEZ-ROJAS, ZEBROWSKI -- read once and
referred to the Committee on Governmental Operations
AN ACT to amend the state finance law, in relation to participation in
state contracts
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The state finance law is amended by adding a new section
2 139-m to read as follows:
3 § 139-m. Participation in contract prohibited; health insurance;
4 transgender status. 1. A clause shall be inserted in all specifications
5 or contracts hereafter made or awarded by the state or any public
6 department, agency or official thereof, for work or services performed
7 or to be performed, for goods sold or to be sold pursuant to which any
8 contractor, to whom any contract shall be let, granted or awarded,
9 agrees, as a material condition of the contract, that neither such
10 contractor nor any substantially owned or affiliated person, firm, part-
11 nership or corporation has participated or is participating or shall
12 participate in a health plan offered which does not cover services for
13 transgender, non-binary, and gender expansive people, including but not
14 limited to hormone replacement therapy, gender-affirming surgery, and
15 treatment typically associated with one particular gender.
16 2. Any such contract shall be rendered forfeit and void by the state
17 comptroller, if, subsequent to execution, such person, firm, partnership
18 or corporation has been participating in such health plan which fails to
19 provide services for transgender, non-binary, and gender expansive
20 people.
21 3. Nothing contained in this section shall operate to impair any
22 existing contract, except that any renewal, amendment or modification of
23 such contract occurring on or after the effective date of this section
24 shall be subject to the conditions specified in this section.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04843-01-3
A. 1936 2
1 4. The comptroller of the state shall have the power to issue rules
2 and regulations pursuant to this section.
3 § 2. This act shall take effect on the ninetieth day after it shall
4 have become a law and shall apply to all contracts entered into, renewed
5 or modified on and after the effective date of this act.
