S T A T E O F N E W Y O R K
________________________________________________________________________
2544
2009-2010 Regular Sessions
I N A S S E M B L Y
January 20, 2009
___________
Introduced by M. of A. CALHOUN -- Multi-Sponsored by -- M. of A.
BACALLES, CONTE, SAYWARD, TOWNSEND -- read once and referred to the
Committee on Local Governments
AN ACT to amend the general municipal law, in relation to granting
authority to prefer certain bidders doing business with the state or a
local government in awarding public contracts
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 1 of section 103 of the general municipal law,
as amended by chapter 741 of the laws of 2005, is amended to read as
follows:
1. Except as otherwise expressly provided by an act of the legislature
or by a local law adopted prior to September first, nineteen hundred
fifty-three, all contracts for public work involving an expenditure of
more than twenty thousand dollars and all purchase contracts involving
an expenditure of more than ten thousand dollars, shall be awarded by
the appropriate officer, board or agency of a political subdivision or
of any district therein including but not limited to a soil conservation
district, to the lowest responsible bidder furnishing the required secu-
rity after advertisement for sealed bids in the manner provided by this
section. In any case where a responsible bidder's gross price is reduci-
ble by an allowance for the value of used machinery, equipment, appara-
tus or tools to be traded in by a political subdivision, the gross price
shall be reduced by the amount of such allowance, for the purpose of
determining the low bid. NOTWITHSTANDING THE FOREGOING, IN ANY CASE
WHERE A RESPONSIBLE BIDDER FURNISHING THE REQUIRED SECURITY IS FOUND BY
SUCH OFFICER, BOARD OR AGENCY TO HAVE PAID STATE AND LOCAL TAXES WITHIN
THE STATE FOR THREE SUCCESSIVE YEARS BEFORE SUBMITTING A BID, AND WHERE
SUCH BID IS WITHIN FIVE PERCENT OF THE BID OF THE LOWEST RESPONSIBLE
BIDDER, SUCH OFFICER, BOARD OR AGENCY MAY PREFER SUCH RESPONSIBLE BIDDER
OVER THE LOWEST RESPONSIBLE BIDDER AND AWARD THE CONTRACT TO SUCH
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02396-01-9
A. 2544 2
RESPONSIBLE BIDDER UPON A TWO-THIRDS VOTE BY THE LOCAL LEGISLATIVE BODY
OF SUCH POLITICAL SUBDIVISION OR DISTRICT FINDING THAT SUCH AN AWARD
WOULD BENEFIT THE LOCAL ECONOMY OF SUCH POLITICAL SUBDIVISION OR
DISTRICT; PROVIDED, HOWEVER, WHERE MORE THAN ONE RESPONSIBLE BIDDER
QUALIFIES HEREUNDER, SUCH OFFICER, BOARD OR AGENCY SHALL AWARD THE
CONTRACT TO SUCH QUALIFIED RESPONSIBLE BIDDER SUBMITTING THE LOWEST BID.
IF ANY FEDERAL STATUTE OR REGULATION PRECLUDES THE GRANTING OF FEDERAL
ASSISTANCE OR REDUCES THE AMOUNT OF THAT ASSISTANCE FOR A PARTICULAR
PUBLIC WORK BECAUSE OF THE PROVISIONS OF THIS SECTION, SUCH PROVISIONS
SHALL NOT APPLY INSOFAR AS THEIR APPLICATION WOULD PRECLUDE OR REDUCE
FEDERAL ASSISTANCE FOR SUCH WORK. In cases where two or more responsible
bidders furnishing the required security submit identical bids as to
price, such officer, board or agency may award the contract to any of
such bidders. Such officer, board or agency may, in his or its
discretion, reject all bids and readvertise for new bids in the manner
provided by this section. For purposes of this section, "sealed bids",
as that term applies to purchase contracts, shall include bids submitted
in an electronic format, provided that the governing board of the poli-
tical subdivision or district, by resolution, has authorized the receipt
of bids in such format. Submission in electronic format may not, howev-
er, be required as the sole method for the submission of bids. Bids
submitted in an electronic format shall be transmitted by bidders to the
receiving device designated by the political subdivision or district.
Any method used to receive electronic bids shall comply with article
three of the state technology law, and any rules and regulations promul-
gated and guidelines developed thereunder and, at a minimum, must (a)
document the time and date of receipt of each bid received electron-
ically; (b) authenticate the identity of the sender; (c) ensure the
security of the information transmitted; and (d) ensure the confiden-
tiality of the bid until the time and date established for the opening
of bids. The timely submission of an electronic bid in compliance with
instructions provided for such submission in the advertisement for bids
and/or the specifications shall be the responsibility solely of each
bidder or prospective bidder. No political subdivision or district ther-
ein shall incur any liability from delays of or interruptions in the
receiving device designated for the submission and receipt of electronic
bids.
S 2. Subdivision 1 of section 103 of the general municipal law, as
amended by chapter 413 of the laws of 1991, is amended to read as
follows:
1. Except as otherwise expressly provided by an act of the legislature
or by a local law adopted prior to September first, nineteen hundred
fifty-three, all contracts for public work involving an expenditure of
more than twenty thousand dollars and all purchase contracts involving
an expenditure of more than ten thousand dollars, shall be awarded by
the appropriate officer, board or agency of a political subdivision or
of any district therein including but not limited to a soil conservation
district, to the lowest responsible bidder furnishing the required secu-
rity after advertisement for sealed bids in the manner provided by this
section. In any case where a responsible bidder's gross price is reduci-
ble by an allowance for the value of used machinery, equipment, appara-
tus or tools to be traded in by a political subdivision, the gross price
shall be reduced by the amount of such allowance, for the purpose of
determining the low bid. NOTWITHSTANDING THE FOREGOING, IN ANY CASE
WHERE A RESPONSIBLE BIDDER FURNISHING THE REQUIRED SECURITY IS FOUND BY
SUCH OFFICER, BOARD OR AGENCY TO HAVE PAID STATE AND LOCAL TAXES WITHIN
A. 2544 3
THE STATE FOR THREE SUCCESSIVE YEARS BEFORE SUBMITTING A BID, AND WHERE
SUCH BID IS WITHIN FIVE PERCENT OF THE BID OF THE LOWEST RESPONSIBLE
BIDDER, SUCH OFFICER, BOARD OR AGENCY MAY PREFER SUCH RESPONSIBLE BIDDER
OVER THE LOWEST RESPONSIBLE BIDDER AND AWARD THE CONTRACT TO SUCH
RESPONSIBLE BIDDER UPON A TWO-THIRDS VOTE BY THE LOCAL LEGISLATIVE BODY
OF SUCH POLITICAL SUBDIVISION OR DISTRICT FINDING THAT SUCH AN AWARD
WOULD BENEFIT THE LOCAL ECONOMY OF SUCH POLITICAL SUBDIVISION OR
DISTRICT; PROVIDED, HOWEVER, WHERE MORE THAN ONE RESPONSIBLE BIDDER
QUALIFIES HEREUNDER, SUCH OFFICER, BOARD OR AGENCY SHALL AWARD THE
CONTRACT TO SUCH QUALIFIED RESPONSIBLE BIDDER SUBMITTING THE LOWEST BID.
IF ANY FEDERAL STATUTE OR REGULATION PRECLUDES THE GRANTING OF FEDERAL
ASSISTANCE OR REDUCES THE AMOUNT OF THAT ASSISTANCE FOR A PARTICULAR
PUBLIC WORK BECAUSE OF THE PROVISIONS OF THIS SECTION, SUCH PROVISIONS
SHALL NOT APPLY INSOFAR AS THEIR APPLICATION WOULD PRECLUDE OR REDUCE
FEDERAL ASSISTANCE FOR SUCH WORK. In cases where two or more responsible
bidders furnishing the required security submit identical bids as to
price, such officer, board or agency may award the contract to any of
such bidders. Such officer, board or agency may, in his or its
discretion, reject all bids and readvertise for new bids in the manner
provided by this section.
S 3. This act shall take effect immediately, provided that the amend-
ments to subdivision 1 of section 103 of the general municipal law made
by section one of this act shall be subject to the expiration and rever-
sion of such subdivision pursuant to subdivision (a) of section 41 of
part X of chapter 62 of the laws of 2003, as amended, when upon such
date the provisions of section two of this act shall take effect.