S T A T E   O F   N E W   Y O R K
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                                  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

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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.