senate Bill S415

Authorizes political subdivisions to award public competitively bid contracts to businesses that participate in certain programs

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 09 / Jan / 2013
    • REFERRED TO LOCAL GOVERNMENT
  • 08 / Jan / 2014
    • REFERRED TO LOCAL GOVERNMENT

Summary

Authorizes political subdivisions to award publicly competitively bid contracts to businesses that participate in a program designed to foster participation by local businesses in public procurement at a cost premium not to exceed ten percent of the lowest bid.

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Bill Details

See Assembly Version of this Bill:
A719
Versions:
S415
Legislative Cycle:
2013-2014
Current Committee:
Senate Local Government
Law Section:
General Municipal Law
Laws Affected:
Amd §104-a, Gen Muni L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S1353, A10057, A5469
2009-2010: S3514, A7369

Sponsor Memo

BILL NUMBER:S415

TITLE OF BILL:

An act
to amend the general municipal law, in relation to authorizing
political subdivisions to award public competitively bid contracts to
businesses
that participate in a program designed to foster participation
by local businesses in public procurement at a cost premium not to
exceed ten percent of the lowest bid

PURPOSE:

To ensure local businesses can compete for local procurement
opportunities.

SUMMARY OF PROVISIONS:

Amends Section 104-a of the general municipal law to provide that when
purchasing goods, services or construction for public use by
competitive sealed bids on contracts less than one million a
municipality that employs a program to foster the participation of
local businesses in public procurement, may award such contracts to a
participant of such a program even if their bid is not the lowest bid
received, provided that the bid does not exceed the lowest bid by
more than ten percent.

JUSTIFICATION:

According to the NYC Economic Development Corporation, there are over
220,000 small businesses in New York City. Businesses with fewer than
100 employees comprise 98% of all businesses in the City. Moreover,
these businesses employ nearly 50% of all New Yorkers in the private
sector.

The current economic climate is having a devastating effect on small
businesses all over the City. According to the NYC Comptroller, the
economic downturn could cause up to 165,000 New Yorkers to be laid
off over the next two years. Furthermore, nearly 80% of the people
who may lose their jobs are likely to be employees of small businesses.

Due to General Municipal Law § 103, localities cannot require agencies
to award contracts to anyone but the lowest responsible bidder and
prohibits the City from any flexibility in the award of such
contracts. As a result, the City's current program that is designed to
assist local businesses in
obtaining contracts with the City, primarily assist businesses in
accessing contracting opportunities, informing them how to navigate
the procurement system and providing them with technical training
to improve their chances of being the lowest responsible bidder. GML
§ 103 constrains localities from developing a stronger program that
might result in more contract awards to local businesses.

In order to strengthen the program aimed to assist local businesses in
obtaining contracts with the City, legislation that would allow the


localities to give certified firms a small price preference could
help address this problem. General Municipal Law § 104-a already
allows for such a price preference for the purchase of recycled
products by political subdivisions (political subdivisions may
purchase recycled products at a cost premium not to exceed ten
percent of what a non-recycled product would cost or not to exceed 15%
for products manufactured with at least 50% secondary materials
generated from NY waste stream). Legislation that mirrors GML
104-a, would allow municipalities to give local businesses a small
price preference when awarding qualifying contracts.

LEGISLATIVE HISTORY:

2011-11: S.1353/A.10057
2009-10: S.3514/A.7369 - Passed Senate

FISCAL IMPLICATIONS:

None to the State.

EFFECTIVE DATE:

This act shall take effect on the thirtieth day after it shall
have become a law.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   415

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen.  DILAN  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government

AN ACT to amend the general municipal law, in  relation  to  authorizing
  political  subdivisions to award public competitively bid contracts to
  businesses that participate in a program designed  to  foster  partic-
  ipation  by  local  businesses in public procurement at a cost premium
  not to exceed ten percent of the lowest bid

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section 104-a of the general municipal law, as amended by
chapter 468 of the laws of 1994, is amended to read as follows:
  S 104-a. Purchasing [of products] for public use.  1.  Notwithstanding
the  provisions  of section one hundred three of this [chapter] ARTICLE,
when purchasing products the officer, board or agency of  any  political
subdivision  or  of  any  district  therein charged with the awarding of
public contracts may, wherever recycled products meet contract  specifi-
cations  and  the  price  of  such  products  is reasonably competitive,
purchase such products. For the purpose of  this  [section]  SUBDIVISION
and  until  July  first, nineteen hundred ninety-six, "recycled product"
shall mean any product which has been manufactured from secondary  mate-
rials, as defined in subdivision one of section two hundred sixty-one of
the  economic  development  law,  and  meets  secondary material content
requirements adopted by the office of general services under subdivision
[one of section one hundred seventy-seven] THREE OF SECTION ONE  HUNDRED
SIXTY-FIVE  of the state finance law for products available to the poli-
tical subdivision or district  under  state  contract  or,  if  no  such
contract  for  such  product  is  available, any product which meets the
secondary material content requirements adopted by the political  subdi-
vision or district thereof with respect to a specific commodity procure-
ment  by  such entity. On and after July first, nineteen hundred ninety-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00582-01-3

S. 415                              2

six, "recycled product" shall mean, for the purposes of  this  [section]
SUBDIVISION, any product which is manufactured from secondary materials,
as  defined  in  subdivision one of section two hundred sixty-one of the
economic  development  law, and which meets the requirements of subdivi-
sion two of section 27-0717 of the environmental  conservation  law  and
regulations  promulgated  pursuant  thereto.  For  the  purpose  of this
[section] SUBDIVISION, "reasonably competitive" shall mean that the cost
of the recycled product does not exceed a cost premium  of  ten  percent
above  the  cost  of a comparable product that is not a recycled product
or, if at least fifty percent of the secondary materials utilized in the
manufacture of that product are generated from the waste stream  in  New
York  state,  the  cost  of  the recycled product does not exceed a cost
premium of fifteen percent above the cost of a comparable  product  that
is not a recycled product.
  Whenever  such  officer,  board  or agency shall purchase or cause the
purchase of printing on recycled paper pursuant to this section,  he  or
she  shall  require  the  printed material to contain the official state
recycling emblem established pursuant  to  subdivision  two  of  section
27-0717 of the environmental conservation law and regulations promulgat-
ed pursuant thereto if such paper has been approved by the department of
environmental  conservation as satisfying the requirements of such stat-
ute and regulations, or, if such paper has not been so approved, require
the printed material to include a printed statement which indicates  the
percentages  of pre-consumer and post-consumer recycled material content
of such paper.
  2.  NOTWITHSTANDING THE PROVISIONS OF SECTION  ONE  HUNDRED  THREE  OF
THIS ARTICLE, WHEN PURCHASING GOODS, SERVICES OR CONSTRUCTION FOR PUBLIC
USE  THROUGH COMPETITIVE SEALED BIDDING, THE OFFICER, BOARD OR AGENCY OF
ANY POLITICAL SUBDIVISION OR OF ANY DISTRICT THEREIN  CHARGED  WITH  THE
AWARDING  OF  PUBLIC  CONTRACTS  THAT  EMPLOYS  A  PROGRAM TO FOSTER THE
PARTICIPATION OF LOCAL BUSINESSES IN PUBLIC PROCUREMENT, MAY  AWARD  ANY
CONTRACT  VALUED  AT  UNDER ONE MILLION DOLLARS TO A PARTICIPANT OF SUCH
PROGRAM EVEN IF SUCH PARTICIPANT IS  NOT  THE  LOWEST  BIDDER  FOR  SUCH
CONTRACT,  PROVIDED,  HOWEVER  THAT  SUCH  AWARD MAY ONLY BE MADE TO THE
LOWEST BID SUBMITTED BY THE PARTICIPANT THAT IS REASONABLY  COMPETITIVE.
FOR THE PURPOSE OF THIS SUBDIVISION, "REASONABLY COMPETITIVE" SHALL MEAN
THAT  THE LOCALLY BASED BUSINESS'S BID DOES NOT EXCEED THE LOWEST BID BY
MORE THAN TEN PERCENT.
  S 2. This act shall take effect on the thirtieth day  after  it  shall
have become a law.

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