Senate Bill S1788

2011-2012 Legislative Session

Provides for preference for certain N.Y. state domiciliaries in the awarding of contracts for public work

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Archive: Last Bill Status - In Senate Committee Local Government Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 04, 2012	referred to local government
Jan 12, 2011	referred to local government

2011-S1788 (ACTIVE) - Details

See Assembly Version of this Bill:: A3285
Current Committee:: Senate Local Government
Law Section:: General Municipal Law
Laws Affected:: Amd §103, Gen Muni L; amd §135, St Fin L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S1549, A1301
2013-2014: S293, A2949
2015-2016: S3174, A4149

2011-S1788 (ACTIVE) - Summary

Provides that for public works contracts involving an expenditure of $20,000 or more and purchase contracts for $10,000 or more a responsible bidder who is a New York state resident, firm or corporation and who is within two percent of the bid of the lowest responsible bidder may be awarded the contract; provides that where two or more qualify according to such provisions, the contract is to be awarded to the lowest responsible bidder.

2011-S1788 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S1788

TITLE OF BILL:
An act
to amend the general municipal law and the state finance law, in
relation to granting preferences to New York state domiciliaries in
the awarding of contracts for public work

PURPOSE OR GENERAL IDEA OF BILL:
This legislation provides a preference to New York State contractors
over non-resident contractors if the resident contractor submits a
bid within 2% of the lowest responsible bid submitted by a
non-resident contractor.

EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER:
This legislation amends subdivision 1 of section 103 of the general
municipal law as amended by section 1 of part FF of chapter 56 of the
laws of 2010.

JUSTIFICATION:
During difficult financial times, the construction industry in New
York State has suffered tremendously.

This proposal would give a preference to a responsible bidder who is a
New York State domiciliary if his/her bid is within 2% of the lowest
responsible bidder. This preference, although it permits awarding of

contracts to a "higher" bidder, would actually save the State money
by creating jobs for New York residents, promoting our state
construction industry, and supporting the overall economic growth
within the state.

It is important that we first protect our families at home before we
extend our means and support others. Our in-state contractors are an
integral part of the New York State family and we must protect them.

LEGISLATIVE HISTORY:
This bill has been previously introduced.

FISCAL IMPLICATIONS:
This will have no direct fiscal impact on State appropriation or
expenditures. The possible direct impact on State Revenues is
speculative and, as such, is not measurable. To the extent this
proposed legislation would result in the award of a contract that
would not otherwise have been awarded to a New York State resident,
firm, or corporation, there may be impacts. This legislation permits
awarding contracts to New York bidders whose bids are 2% higher than
foreign or out-of-state bidders.

It could result in an increased tax base in the State, create jobs
for New York residents and increase revenues for the company.  It is
not possible to calculate the actual impact this bill would have
because the number of contracts and the dollar amount of the contract
awards that would be affected are unknown. Further, if a contract is
awarded to a New York State company that does net manufacture,
produce, grew or construct the goods or services called for in the
contract in New York State, impacts may exist but would be
significantly reduced. A different consequence of granting


preferences to. New York bidders could be that this practice may
invite retaliation by ether states resulting in a negative impact on
New York companies.

Other states may choose not to contract with New York companies
based on this preference; thus New York companies could lose business
opportunities and potential revenues. It is conceivable that the loss of
revenues to New York businesses as a result of retaliatory
measures of other states would outweigh the benefits to New York
businesses in securing New York contracts for public work. It is
impossible to estimate the amount of revenue that would be gained or
lost in this scenario, as all figures would be speculative.

EFFECTIVE DATE:
This act shall take effect on the first of September next succeeding
the date on which it shall have become a law; provided, however, that
the amendments to subdivision 1 of section 103 of the general
municipal law made by section one of this act shall net affect the
expiration and reversion of such subdivision as provided in
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.

2011-S1788 (ACTIVE) - Bill Text download pdf

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

                                  1788

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 12, 2011
                               ___________

Introduced  by Sen. STAVISKY -- 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 and the state finance law,  in
  relation  to  granting  preferences to New York state domiciliaries in
  the awarding of contracts for public work

  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 section 1 of part FF of chapter 56 of the laws of 2010, 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  thirty-five  thousand  dollars  and  all  purchase  contracts
involving  an expenditure of more than twenty 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 security after advertisement for sealed bids in the manner
provided by this section. In any case where a responsible bidder's gross
price is reducible by an allowance for  the  value  of  used  machinery,
equipment,  apparatus  or  tools to be traded in by a political subdivi-
sion, the gross price shall be reduced by the amount of such  allowance,
for the purpose of determining the low bid.  NOTWITHSTANDING THE FOREGO-
ING,  IN  ANY  CASE  WHERE  A RESPONSIBLE BIDDER WHO IS A NEW YORK STATE
RESIDENT, FIRM OR CORPORATION AND WHO IS FURNISHING THE REQUIRED SECURI-
TY IS FOUND BY SUCH OFFICER, BOARD OR AGENCY TO BE WITHIN TWO 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;  PROVIDED,  HOWEVER,
WHERE  MORE  THAN ONE RESPONSIBLE BIDDER QUALIFIES HEREUNDER, SUCH OFFI-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06381-01-1

S. 1788                             2

CER, BOARD OR AGENCY SHALL AWARD THE CONTRACT TO SUCH QUALIFIED  RESPON-
SIBLE  BIDDER  SUBMITTING  THE  LOWEST  BID.  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 her
or its discretion, reject all bids and readvertise for new bids  in  the
manner provided by this section. In determining whether a purchase is an
expenditure  within  the  discretionary threshold amounts established by
this subdivision, the officer, board or agency of a  political  subdivi-
sion  or  of any district therein shall consider the reasonably expected
aggregate amount of all purchases of the same commodities,  services  or
technology  to  be made within the twelve-month period commencing on the
date of purchase.   Purchases of  commodities,  services  or  technology
shall  not  be  artificially  divided  for the purpose of satisfying the
discretionary buying  thresholds  established  by  this  subdivision.  A
change  to or a renewal of a discretionary purchase shall not be permit-
ted if the change or renewal would bring the reasonably expected  aggre-
gate  amount of all purchases of the same commodities, services or tech-
nology from the same provider within the twelve-month period  commencing
on  the date of the first purchase to an amount greater than the discre-
tionary buying threshold amount. For purposes of this  section,  "sealed
bids",  as  that  term applies to purchase contracts, shall include bids
submitted in an electronic format including submission of the  statement
of  non-collusion  required by section one hundred three-d of this arti-
cle, provided that the governing board of the political  subdivision  or
district,  by  resolution,  has  authorized  the receipt of bids in such
format.  Submission in electronic format may, for  technology  contracts
only,  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 section 2 of part FF of chapter 56 of the laws  of  2010,  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  thirty-five  thousand  dollars  and  all  purchase contracts
involving an expenditure of more than twenty 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 security after advertisement for sealed bids in the  manner

S. 1788                             3

provided  by  this  section.  In  determining  whether  a purchase is an
expenditure within the discretionary threshold  amounts  established  by
this  subdivision,  the officer, board or agency of a political subdivi-
sion  or  of any district therein shall consider the reasonably expected
aggregate amount of all purchases of the same commodities,  services  or
technology  to  be made within the twelve-month period commencing on the
date of purchase. Purchases of commodities, services or technology shall
not be artificially divided for the purpose of  satisfying  the  discre-
tionary  buying  thresholds established by this subdivision. A change to
or a renewal of a discretionary purchase shall not be permitted  if  the
change  or  renewal would bring the reasonably expected aggregate amount
of all purchases of the same commodities, services  or  technology  from
the  same provider within the twelve-month period commencing on the date
of the first purchase to an amount greater than the discretionary buying
threshold amount. In any case where a responsible bidder's  gross  price
is reducible by an allowance for the value of used machinery, equipment,
apparatus 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  WHO IS A NEW YORK STATE RESIDENT, FIRM OR
CORPORATION AND WHO IS FURNISHING THE REQUIRED SECURITY IS FOUND BY SUCH
OFFICER, BOARD OR AGENCY TO BE WITHIN TWO 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; PROVIDED, HOWEVER, WHERE MORE  THAN
ONE RESPONSIBLE BIDDER QUALIFIES HEREUNDER, SUCH OFFICER, BOARD OR AGEN-
CY SHALL AWARD THE CONTRACT TO SUCH QUALIFIED RESPONSIBLE BIDDER SUBMIT-
TING  THE  LOWEST  BID.  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, her or its discretion, reject
all  bids  and  readvertise  for new bids in the manner provided by this
section.
  S 3.  Section 135 of the state finance law is amended by adding a  new
closing paragraph to read as follows:
  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF  LAW,  WHENEVER  THE LOWEST
RESPONSIBLE BIDDER IS A FOREIGN  OR  OUT-OF-STATE  INDIVIDUAL,  FIRM  OR
CORPORATION  AND  AT  LEAST  ONE NEW YORK STATE RESIDENT, FIRM OR CORPO-
RATION HAS SUBMITTED A RESPONSIBLE BID WHICH IS WITHIN  TWO  PERCENT  OF
THE  LOWEST  RESPONSIBLE  BID, THE CONTRACT MAY BE AWARDED TO THE LOWEST
RESPONSIBLE BIDDER WHO IS A NEW YORK  STATE  RESIDENT,  FIRM  OR  CORPO-
RATION; PROVIDED, HOWEVER, WHERE MORE THAN ONE RESPONSIBLE BIDDER QUALI-
FIES  HEREUNDER,  SUCH OFFICER, BOARD OR AGENCY SHALL AWARD THE CONTRACT
TO SUCH QUALIFIED RESPONSIBLE BIDDER SUBMITTING THE LOWEST BID.
  S 4. This act shall  take  effect  on  the  first  of  September  next
succeeding  the  date  on  which  it  shall have become a law; provided,
however, that the amendments to subdivision 1  of  section  103  of  the
general  municipal  law made by section one of this act shall not affect
the expiration and reversion of such subdivision as provided in subdivi-
sion (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.

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Senate Bill S1788

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Archive: Last Bill Status - In Senate Committee Local Government Committee

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2011-S1788 (ACTIVE) - Details

2011-S1788 (ACTIVE) - Summary

2011-S1788 (ACTIVE) - Sponsor Memo

2011-S1788 (ACTIVE) - Bill Text download pdf

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Sponsored By

Toby Ann Stavisky

Archive: Last Bill Status - In Senate Committee Local Government Committee

Actions

2011-S1788 (ACTIVE) - Details

2011-S1788 (ACTIVE) - Summary

2011-S1788 (ACTIVE) - Sponsor Memo

2011-S1788 (ACTIVE) - Bill Text download pdf

Comments