What's happening
This bill gives New York-based companies preferential status in state procurement if they meet specific in-state revenue and employment thresholds.
Why it matters
Strengthens local economic impact. By prioritizing companies with substantial in-state revenue and workforce, the bill is designed to ensure that taxpayer dollars spent on state contracts are more likely to stay within New York, potentially stimulating local economies and supporting job growth.
Sets clear eligibility thresholds. The legislation specifies that companies must derive at least 50% of their gross revenue from New York-based activities and have at least 51% of their workforce (by full-time equivalent) in-state. These criteria are intended to prevent out-of-state or multinational firms from receiving preferential treatment unless they have a significant New York presence.
Reorders procurement priorities. The bill modifies the existing procurement hierarchy to add New York-based businesses—meeting the new thresholds—immediately after certain nonprofit and veteran organizations. This could shift contract opportunities away from national or global companies in favor of those with deeper local roots.
Aims to increase accountability and transparency. By embedding these requirements into state finance law, the bill seeks to make the procurement process more transparent and accountable, making it easier to verify that awarded vendors are genuinely invested in New York’s economy.
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Who cares
New York-based vendors
The bill would grant preferred-source status to companies with a primary business presence in New York, at least 50% of combined revenues from New York business activity and at least 51% of combined full-time-equivalent employees in the state, excluding companies primarily engaged in governmental relations.
State agencies, local governments and public benefit corporations
Purchasing bodies covered by the bill would have to include qualifying New York vendors in the specified tier of required commodity purchases, while state procurement guidelines would use vendor economic nexus when all other service-contract criteria are equal.
Disability employment programs and veterans’ workshops
Qualifying New York vendors would join these existing preferred sources in the same commodity-purchasing tier.
Governmental relations firms
Companies whose primary business activity is governmental relations would be excluded from the new preferred-source category.
Headline styles
Favor NY Companies for Contracts
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to finance
- Referred to finance
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3561
2017-2018 Regular Sessions
IN SENATE
January 24, 2017
Introduced by Sen. GOLDEN -- 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 preferred source status for the purposes of procurement
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Short title. This act shall be known and may be cited as the "Protect New York jobs act".
§ 2. Paragraph i of subdivision 2 of section 161 of the state finance law, as added by chapter 83 of the laws of 1995, is amended to read as follows:
i. Establish and, from time to time, amend guidelines for the procurement of services and technology in accordance with the provisions of this article. Such guidelines shall ensure the wise and prudent use of public money in the best interest of the taxpayers of the state; guard against favoritism, improvidence, extravagance, fraud and corruption; and ensure that service contracts are awarded on the basis of best value, including, but not limited to, the following criteria: quality, cost, and efficiency; and all other criteria being equal, the economic nexus of the vendor as provided for in paragraph g of subdivision two of section one hundred sixty-two of this article;
§ 3. Paragraphs e and f of subdivision 2 of section 162 of the state finance law, paragraph e as amended and paragraph f as added by chapter 501 of the laws of 2002, are amended, and a new paragraph g is added to read as follows:
e. Commodities and services produced by a qualified veterans' workshop providing job and employment-skills training to veterans where such a workshop is operated by the United States department of veterans affairs and is manufacturing products or performing services within this state and where such workshop is approved for such purposes by the commissioner of education; [or]
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08672-01-7
S. 3561 2
f. Commodities and services produced by any qualified charitable nonprofit-making workshop for veterans approved for such purposes by the commissioner of education, or incorporated under the laws of this state and approved for such purposes by the commissioner of education[.]; or
g. Commodities or services produced by a company whose primary business presence is located in New York state, that realizes, along with the gross revenues of its affiliates and related members, no less than fifty percent of its combined gross revenues, as defined by generally accepted accounting principles, from business activity generated in New York state, and that has at least fifty-one percent of its, along with its affiliated and related members, fulltime equivalent employees employed in New York state, and whose primary business activity is to conduct such activity in any capacity other than governmental relations.
§ 4. Subparagraph (iii) of paragraph a of subdivision 4 of section 162 of the state finance law, as added by chapter 83 of the laws of 1995, is amended to read as follows:
(iii) When commodities are available, in the form, function and utility required by, a state agency or political subdivision or public benefit corporation having their own purchasing agency, and such commodities are not available pursuant to subparagraphs (i) and (ii) of this paragraph, said commodities shall then be purchased from a qualified nonprofit-making agency for other severely disabled persons, a qualified special employment program for mentally ill persons, [or] a qualified veterans' workshop, or a New York based vendor as provided for in paragraph g of subdivision two of this section;
§ 5. This act shall take effect on the ninetieth day after it shall have become a law.
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 preferred source status for the purposes of procurement
Purpose
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 "Protect New York Jobs Act" and amends section 161 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 161 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 50 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 4. Amends 162 of the State Finance Law to add New York based vendors to the list of priority accorded preferred sources.
Section 5. Effective date.
Justification
New York State issues tens of billions of dollars in vendor contracts annually. Awarding 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
2010: S.7743 - commit to Finance 2011: S.2733-B - commit to Finance
Fiscal implications
None.
Effective date
Ninety days after being signed into law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.