What's happening
This bill gives preference in state contract awards to New York-based businesses whose bids are within 5% of the lowest bid.
Why it matters
Supports local employment and economic growth. by incentivizing state contracts to go to companies headquartered and primarily operating in New York, potentially keeping more jobs and business activity within the state.
May encourage out-of-state companies to invest in New York. (such as opening offices or hiring more New York employees) in order to qualify for the preferred status and be more competitive in future state contract bids.
Could result in slightly higher state contract costs. if New York-based companies are awarded contracts even when their bids are up to 5% higher than the lowest bid, prioritizing local economic benefits over absolute price savings.
Defines clear criteria for what counts as a New York-based business. , requiring both a majority of gross revenue and workforce to be New York-based—meaning only companies with a substantial presence in the state can benefit from the preference.
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Who cares
Headline styles
Give NY Businesses Contract Preference
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to governmental operations
- Delivered to assembly
- Passed senateVote 62–0
- Ordered to third reading cal.1857
- Committee discharged and committed to rules
- Referred to finance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Favor NY Businesses for Contracts
In Assembly Committee · Governmental Operations · Sponsor Michael DenDekker
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7596
IN SENATE
January 29, 2018
Introduced by Sen. ROBACH -- 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 granting a preference to New York State businesses in the state contract award process
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 162 of the state finance law is amended by adding a new subdivision 2-a to read as follows:
2-a. Preferred status for bids. a. Preferred status, as prescribed in this section, shall be accorded to bids where such bid's commodities or services are produced by a company whose headquarters and primary business presence are located in New York state and such bid was within five percent of the winning bid. A company's primary business presence is located in New York state when it realizes more than fifty percent of its combined gross revenues from business activity generated in New York state and has more than fifty percent of its full-time equivalent employees employed in New York state.
b. When preferred status is given to multiple bids, the best preferred status bid shall be considered the winning bid.
§ 2. This act shall take effect one year after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14464-01-8
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 granting a preference to New York State businesses in the state contract award process
Purpose
To require that the state of New York give a limited preference to busi- nesses who have their headquarters located in, and conduct a majority of their business operations, in New York State.
Summary of provisions
Section 1. amends section 162 of the state finance law Section 2. enacting clause
Justification
By law, many New York State agencies must select the lowest offered bid to it's contract awards. This means, a New York based company, even if their bid is off by even a mere $100, can lose out to a company that conducts the primary of its business out of state. Given the obvious beneficial impact in awards going to businesses located New York State, such a limited preference offered in this bill constitutes a de minimis impact on the bidding process.
Legislative history
None
Fiscal implications
None
Effective date
One year after it shall have become law
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.