Establishes a preference for New York state entities to use New York based vendors

3 Co-sponsors

• Mark Grisanti
• Andrew J. Lanza
• John J. Flanagan

BILL NUMBER:S7786

Title of bill

An act to amend the state finance law, the public authorities law and the education law, in relation to establishing a preference for New York state entities contracting with New York based vendors

Purpose

To add language to the definition of best value - requiring state agencies to identify a qualitative factor for New York based vendors which would apply a preference to New York vendors to protect jobs and help businesses located in New York State and that generate economic activity in New York State. If a business is located in New York and is bidding for a public contract, given that the business produces a product of equal quality at a competitive price, it is in the best interest of New York to award the contract to a New York domiciled business. This protects jobs and generates economic activity which in turn generates tax revenue.

Summary of provisions

Section 1. Establishes the "best value" definition and amends section 163 of the State Finance Law to add economic nexus of the vendor to the guidelines for wise and prudent uses of public money developed by the State Procurement Council.

Section 2. Amends section 163 of the State Finance Law to add New York State based businesses as preferred sources for the purpose of public contracts. To qualify a business must have an organizational presence in New York State, generate at least 51 percent of its gross income from business conducted in the State and have at least one employee located in the State (excluding employees whose primary role is government relations).

Section 3. Amends section 354 of the public authorities Law dealing with construction or reconstruction of gas stations, restaurants and other facilities for the public.

Section 4. Preference to New York based vendors vis a vis lowest cost contracts.

Section 5. Includes public authorities and benefit corporation contracts.

Section 6. Five percent preference against lowest bidder.

Existing law

Services are currently governed by "best value" principles.

Justification

New York State issues tens of billions of dollars in vendor contracts annually. A warding contracts to out of State firms is tantamount to exporting jobs out of New York State and sometimes out of the country.

If a business is based in New York State, employs New Yorkers and can provide the same quality of service at a competitive price, it follows that public contracts should be awarded to that business.

Legislative history

Similar to S.2733 of 2011.

Fiscal implications

None.

Effective date

120th day after it shall have become law; provided, however, that the amendments to section 163 of the state finance law made by sections one and two of this act shall not affect the expiration.