What's happening
This bill gives preference in state contract awards to New York businesses whose bids are within 5% of the lowest bid.
Why it matters
Strengthens local economic impact. by favoring businesses that are truly rooted in New York—defined by both their headquarters location and where they generate revenue and employ workers—thus potentially supporting more jobs and reinvestment in the state.
Changes the dynamics of state procurement. by allowing slightly higher bids from New York-based companies (within 5% of the lowest) to be chosen, which could shift contracts away from out-of-state or multinational firms and toward local enterprises.
Sets clear, measurable criteria. for what qualifies as a “New York business” (over 50% of revenue and workforce in-state), reducing ambiguity and the potential for companies to superficially claim in-state status just to win contracts.
Could modestly increase state procurement costs. if lower bids from out-of-state companies are bypassed, but this may be balanced by broader economic benefits such as local job creation and tax revenue retention.
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Who cares
Headline styles
Favor NY Businesses for Contracts
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Referred to finance
- 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 Firms 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
61
2019-2020 Regular Sessions
IN SENATE (Prefiled)
January 9, 2019
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.
LBD05160-01-9
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
2018: Passed Senate
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.