Provides for preference for certain N.Y. state domiciliaries in the awarding of contracts for public work

Effects of present law which this bill would alter

Subdivision 1 of section 103 of the general municipal law, as amended by section 1 of chapter 2 of the laws of 2012, is amended.

Justification

During difficult financial times, the construction industry in New York State has suffered tremendously.

This proposal would give a preference to a responsible bidder who is a New York State domiciliary if his/her bid is within 2% of the lowest responsible bidder. This preference, although it permits awarding of contracts to a "higher" bidder, would actually save the State money by creating jobs for New York residents, promoting our state construction industry, and supporting the overall economic growth within the state.

It is important that we first protect our families at home before we extend our means and support others. Our in-state contractors are an integral part of the New York State family and we must protect them.

Legislative history

This bill has been previously introduced.

Fiscal implications

This will have no direct fiscal impact on State appropriation or expenditures. The possible direct impact on State Revenues is speculative and, as such, is not measurable. To the extent this proposed legislation would result in the award of a contract that would not otherwise have been awarded to a New York State resident, firm, or corporation, there may be impacts. This legislation permits awarding contracts to New York bidders whose bids are 2% higher than foreign or out-of-state bidders. It could result in an increased tax base in the State, create jobs for New York residents and increase revenues for the company. It is not possible to calculate the actual impact this bill would have because the number of contracts and the dollar amount of the contract awards that would be affected are unknown. Further, if a contract is awarded to a New York State company that does not manufacture, produce, grow or construct the goods or services called for in the contract in New York State, impacts may exist but would be significantly reduced. A different consequence of

granting preferences to New York bidders could be that this practice may invite retaliation by other states resulting in a negative impact on New York companies.

Other states may choose not to contract with New York companies based on this preference; thus New York companies could lose business opportunities and potential revenues. It is conceivable that the loss or revenues to New York businesses as a result of retaliatory measures of other states would outweigh the benefits to New York businesses in securing New York contracts for public work. It is impossible to estimate the amount of revenue that would be gained or lost in this scenario, as all figures would be speculative.

Effective date

This act shall take effect on the first of September next succeeding the date on which it shall have become a law; provided, however, that the amendments to subdivision 1 of section 103 of the general municipal law made by section one of this act shall not affect the expiration and reversion of such subdivision as provided in subdivision (a) of section 41 of part X of chapter 62 of the laws of 2003, as amended, when upon such date the provisions of section two of this act shall take effect.