senate Bill S5552A

Signed by Governor Amended

Relates to local product procurement and a procurement training program for agricultural business

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Bill Status


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

  • 17 / May / 2013
    • REFERRED TO AGRICULTURE
  • 24 / May / 2013
    • AMEND AND RECOMMIT TO AGRICULTURE
  • 24 / May / 2013
    • PRINT NUMBER 5552A
  • 12 / Jun / 2013
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 12 / Jun / 2013
    • ORDERED TO THIRD READING CAL.1366
  • 13 / Jun / 2013
    • PASSED SENATE
  • 13 / Jun / 2013
    • DELIVERED TO ASSEMBLY
  • 13 / Jun / 2013
    • REFERRED TO AGRICULTURE
  • 08 / Jan / 2014
    • DIED IN ASSEMBLY
  • 08 / Jan / 2014
    • RETURNED TO SENATE
  • 08 / Jan / 2014
    • REFERRED TO AGRICULTURE
  • 20 / May / 2014
    • REPORTED AND COMMITTED TO FINANCE
  • 28 / May / 2014
    • AMEND (T) AND RECOMMIT TO FINANCE
  • 28 / May / 2014
    • PRINT NUMBER 5552B
  • 02 / Jun / 2014
    • 1ST REPORT CAL.1078
  • 03 / Jun / 2014
    • 2ND REPORT CAL.
  • 09 / Jun / 2014
    • ADVANCED TO THIRD READING
  • 17 / Jun / 2014
    • PASSED SENATE
  • 17 / Jun / 2014
    • DELIVERED TO ASSEMBLY
  • 17 / Jun / 2014
    • REFERRED TO WAYS AND MEANS
  • 19 / Jun / 2014
    • SUBSTITUTED FOR A7572A
  • 19 / Jun / 2014
    • ORDERED TO THIRD READING RULES CAL.544
  • 19 / Jun / 2014
    • PASSED ASSEMBLY
  • 19 / Jun / 2014
    • RETURNED TO SENATE
  • 11 / Sep / 2014
    • DELIVERED TO GOVERNOR
  • 23 / Sep / 2014
    • SIGNED CHAP.381

Summary

Relates to local product procurement and a procurement training program for agricultural business.

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Bill Details

Versions:
S5552
S5552A
S5552B
Legislative Cycle:
2013-2014
Law Section:
State Finance Law
Laws Affected:
Amd §2, Ag & Mkts L; amd §§165 & 163, St Fin L
Versions Introduced in 2013-2014 Legislative Cycle:
A7572

Sponsor Memo

BILL NUMBER:S5552A

TITLE OF BILL:
An act
to amend the agriculture and markets law and the
state finance law, in relation to local product
procurement; and in relation to a procurement training program for
agricultural business

PURPOSE: The purpose of this bill is to increase the
amount of New
York State local food products purchased by New York State agencies,
and provide procurement training to agricultural businesses. This
legislation will strengthen upstate economies, and build on our
agricultural industry's impressive economic impact.

SUMMARY OF PROVISIONS:

Section 1: Amends the Agriculture and Markets Law to define the term
"local food product"

Section 2: Amends State Finance Law to allow purchasing agencies in
NYS to encourage and facilitate the procurement of local food products

Section 3: Amends State Finance Law by establishing a Procurement
Training Program for agricultural businesses in NYS

Section 4: States this act shall take effect immediately

JUSTIFICATION:
Under current State Finance Law governing the state's procurement
process, state agencies are permitted to give a preference to state
food producers or Processors. Upon a determination that such a
producer or processor can offer its products in the amount required,
agencies may mandate. that all or some of the required food products
are grown, produced, or harvested in New York state, or that any
processing of such food products take Place in facilities located
within New York State. However, this provision may be waived if the
purchase of New York food products would create a negative economic
impact to the state.

While supportive of the state's agricultural industry, more and more
states are implementing policies going beyond this standard. Purchase
preference laws for state products appear in eleven states including
Massachusetts, Illinois, Maryland and Oregon. This policy allows
state entities to purchase higher priced goods from an in-state
producer, if the price is within a certain percentage range of an
out-of-state producer that it is in competition with.

In 2009, the New York State Council on Food Policy recommended that
our state adopt such a policy. The Council stated that New York
should allow a state
preference provided that the cost is not more than 10% greater than
the cost included in a bid from an out-of-state producer. Just last
year, New York City enacted such a policy.


This legislation seeks to do the same for New York State agencies. It
cannot be stated enough how important agriculture is to our state's
economy. The agriculture and forestry industries have a combined
economic impact of $38 billion on state economic output, and
generates 196,200 jobs. Our current state procurement process does
not provide enough support for New York's farmers. State agencies can
play a vital role in ensuring the continued strength of our
agricultural sector. These entities have great purchasing power. By
providing a purchase preference New York's agricultural industry
would benefit greatly.

Furthermore, this legislation also includes a training program for
agricultural businesses interested in participating in the procurement
process. The Office of General Services will work in conjunction with
the Department of Economic Development and Department of Agriculture
and Markets to provide an annual training program in each of the
economic development regions. Such a program will provide these
businesses with invaluable information on navigating the procurement
process. Additionally, businesses will learn what goods are in demand
but not produced in sufficient quantities to locally source.

LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: Immediately

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

                                 5552--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 17, 2013
                               ___________

Introduced  by  Sen. VALESKY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Agriculture  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to  amend the agriculture and markets law and the state finance
  law, in relation to local product procurement; and in  relation  to  a
  procurement training program for agricultural business

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

  Section 1. Section 2 of the agriculture and markets law is amended  by
adding a new subdivision 6 to read as follows:
  6.  "LOCAL  FOOD  PRODUCTS"  MEANS  ANY  FOOD PRODUCTS THAT ARE GROWN,
PRODUCED, HARVESTED, AND/OR PROCESSED BY NEW YORK CITIZENS OR BUSINESSES
LOCATED WITHIN THE BORDERS OF NEW YORK STATE, OR  PREDOMINANTLY  CONTAIN
NEW YORK-GROWN INGREDIENTS.
  S 2. Subdivision 4 of section 165 of the state finance law, as amended
by chapter 137 of the laws of 2008, is amended to read as follows:
  4.  Special  provisions  for  purchase  of  available  New  York  food
products.
  a. Except as otherwise provided  in  this  subdivision,  when  letting
contracts  for the purchase of food products on behalf of facilities and
institutions of the state, solicitation specifications of the office  of
general  services  and  any  other  agency, department, office, board or
commission may require provisions that mandate that all or some  of  the
required  food  products  are  [grown, produced or harvested in New York
state, or that any processing of such food products take place in facil-
ities located within New York state] LOCAL FOOD PRODUCTS, AS  SUCH  TERM
IS  DEFINED  IN  SUBDIVISION  SIX  OF SECTION TWO OF THE AGRICULTURE AND
MARKETS LAW.
  b. The commissioner of agriculture and markets shall determine,  using
uniform  criteria, those LOCAL food products, AS SUCH TERM IS DEFINED IN

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11055-03-3

S. 5552--A                          2

SUBDIVISION SIX OF SECTION TWO OF THE AGRICULTURE AND MARKETS  LAW,  for
which  the  requirements  of  this subdivision are deemed beneficial and
shall promulgate and forward to the appropriate agencies a list of  such
LOCAL  food  products,  and shall in addition ascertain those periods of
time each year that those LOCAL food products are  available  in  suffi-
cient  quantities  for  competitive  purchasing  and  shall forward such
information to purchasing agencies.  The commissioner of agriculture and
markets shall update such list as often as is deemed by him or her to be
necessary.
  c. (i) Prior  to  issuing  a  solicitation  for  such  food  products,
purchasing  agencies  shall  advise  the commissioner of agriculture and
markets of the quantities of each food product on the  list  promulgated
by  the commissioner of agriculture and markets to fulfill that agency's
purchasing needs.
  (ii) The commissioner of agriculture and  markets  will  then  make  a
determination of whether those products required by the purchasing agen-
cy  are  available  in  sufficient  quantities to satisfy the purchasing
agency's requirements.
  (iii) Upon a determination by  the  commissioner  of  agriculture  and
markets  that  the  food  products required by the purchasing agency are
available in sufficient quantities to fulfill  the  agency's  purchasing
needs,  the purchasing agency may include in its solicitation a require-
ment that all or some of those food products  are  [grown,  produced  or
harvested  in  New  York  state,  or  that  any  processing of such food
products take place in facilities located within New York  state]  LOCAL
FOOD PRODUCTS, AS SUCH TERM IS DEFINED IN SUBDIVISION SIX OF SECTION TWO
OF  THE AGRICULTURE AND MARKETS LAW. THE PURCHASING AGENCY MAY THEN GIVE
PREFERENCE TO PROCURING LOCAL FOOD PRODUCTS, IF  THE  PRODUCTS  COST  NO
MORE  THAN  TEN  PERCENT  MORE  THAN  FOOD  PRODUCTS THAT ARE NOT GROWN,
PRODUCED, HARVESTED, AND/OR PROCESSED WITHIN THIS STATE.
  (iv) Upon a determination  by  the  commissioner  of  agriculture  and
markets  that such food products are not available in sufficient quanti-
ties to fulfill the agency's purchasing  needs,  the  purchasing  agency
shall  issue  a  solicitation  that does not require that all or some of
those food products are [grown, produced or harvested in New York state,
or that any processing of such food products take  place  in  facilities
located  within  New  York  state]  LOCAL FOOD PRODUCTS, AS SUCH TERM IS
DEFINED IN SUBDIVISION SIX OF SECTION TWO OF THE AGRICULTURE AND MARKETS
LAW.  In such cases, the purchasing agency may include such requirements
in the next contract for such food products that is let if at such  time
those  food products are available in sufficient quantities.  If at that
time, those food products are not available  in  sufficient  quantities,
the  requirement  shall  again be waived until such time as the products
are available.
  (v) In the event that the purchasing agency receives  no  offers  that
meet  the agency's requirement that all or some of the food products are
[grown, produced or harvested in New York state, or that any  processing
of  such  food products take place in facilities located within New York
state] LOCAL FOOD PRODUCTS, AS SUCH TERM IS DEFINED IN  SUBDIVISION  SIX
OF  SECTION  TWO  OF  THE  AGRICULTURE AND MARKETS LAW, it may waive the
provisions of this subdivision and award a contract in  accordance  with
other applicable statutes. In addition, if the commissioners of agricul-
ture  and  markets,  economic development and any such individual agency
shall agree as to the  deleterious  economic  impact  of  specifications
requiring such purchases, such agencies may waive the provisions of this
subdivision for such purchases.

S. 5552--A                          3

  d.  The commissioner, and the commissioner of agriculture and markets,
may issue such regulations as they deem necessary  and  proper  for  the
implementation of this subdivision.
  e. Notwithstanding any other section of law, rule, regulation or stat-
ute,  the department of agriculture and markets shall supply information
required by paragraph b of this subdivision to  the  office  of  general
services and to all other appropriate agencies.
  f.  (i)  With  each  offer,  the  offerer  shall certify that the food
products provided pursuant to that solicitation will  be  in  conformity
with  the  provisions  of  the percentage required to meet or exceed the
requirements in the solicitation specifying that all or some of the food
products be [grown, produced, or harvested within New York state or that
any processing of such food products take place  in  facilities  located
within  New  York state] LOCAL FOOD PRODUCTS, AS SUCH TERM IS DEFINED IN
SUBDIVISION SIX OF SECTION TWO OF THE AGRICULTURE AND MARKETS LAW.
  (ii) Any successful offerer who fails to comply with the provisions of
this subdivision, at the discretion of such  agency,  board,  office  or
commission,  shall  forfeit  the right to bid on contracts let under the
provisions of this subdivision for a period of time to be determined  by
the commissioner and the commissioner of agriculture and markets.
  g.  The  commissioner and the commissioner of agriculture and markets,
shall advise and assist the chancellor of the state  university  of  New
York  in extending the benefits of the provisions of this subdivision to
the university and shall modify any regulations or procedures heretofore
established pursuant to this subdivision, in order  to  facilitate  such
participation.
  S 3. Subparagraphs (vii), (viii), (ix), (x) and (xi) of paragraph b of
subdivision  3  of  section  163  of the state finance law, subparagraph
(vii) as added by chapter 584 of the laws  of  2005,  and  subparagraphs
(viii),  (ix), (x) and (xi) as added by chapter 137 of the laws of 2008,
are amended to read as follows:
  (vii) WITH THE ASSISTANCE OF THE DEPARTMENT  OF  ECONOMIC  DEVELOPMENT
AND  THE  DEPARTMENT  OF  AGRICULTURE  AND  MARKETS,  PROVIDE A TRAINING
PROGRAM ONCE PER YEAR, IN EACH ECONOMIC DEVELOPMENT  REGION,  AS  ESTAB-
LISHED  IN  ARTICLE  ELEVEN  OF  THE ECONOMIC DEVELOPMENT LAW, BEGINNING
JANUARY FIRST, TWO THOUSAND FOURTEEN, FOR AGRICULTURAL BUSINESSES.  SUCH
TRAINING  PROGRAM SHALL PROVIDE ASSISTANCE WITH RESPECT TO PARTICIPATION
AS A VENDOR IN THE PROCUREMENT PROCESS, AS ESTABLISHED IN THIS  ARTICLE,
AND  THE  DEVELOPMENT  OF  LOCAL  FOOD  PRODUCTS  WHICH  ARE  NOT GROWN,
PRODUCED,  HARVESTED,  AND/OR  PROCESSED  IN  SUFFICIENT  QUANTITIES  TO
FULFILL STATE AGENCIES' NEEDS.
  (VIII)  maintain a list of contractors which produce or manufacture or
offer  for  sale  environmentally-sensitive  cleaning  and   maintenance
products  in the form, function and utility generally used by elementary
and secondary schools in accordance with  specifications  or  guidelines
promulgated  pursuant  to  section  four hundred nine-i of the education
law.
  [(viii)] (IX) review and consider prior to issuance of  bid  solicita-
tions the term of the proposed contract based on factors, including, but
not  limited  to; (A) the nature of the commodity, (B) the complexity of
the procurement, (C) the identity and type of purchasers, (D) the  suit-
ability  of  the  contract  for adding additional contractors during the
term, and (E) the estimated contract value. This determination shall  be
documented in the procurement record.
  [(ix)]  (X)  reasonably  consider  aggregate amount of public sales by
potential vendors.

S. 5552--A                          4

  [(x)] (XI) review and consider the feasibility  of  creating  regional
contracts for commodities being procured by the state.
  [(xi)]  (XII)  maintain  a  procurement  record  for  each centralized
contract procurement identifying, with supporting  documentation,  deci-
sions  made  by  the  commissioner  during  the procurement process. The
procurement record shall include, but not be limited to,  each  contract
amendment, and the justification for each.
  S 4. This act shall take effect immediately; provided however that the
amendments  made  to  subparagraphs (vii), (viii), (ix), (x) and (xi) of
paragraph b of subdivision 3 of section 163 of the state finance law  by
section  three  of  this act shall not affect the repeal of such section
and shall be deemed repealed therewith.

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