Senate Bill S7786

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

                                  7786

                            I N  S E N A T E

                              June 18, 2012
                               ___________

Introduced  by  Sens.  GOLDEN, GRISANTI, LANZA -- read twice and ordered
  printed, and when printed to be committed to the Committee on Rules

AN ACT to amend the state finance law, the public  authorities  law  and
  the  education  law,  in relation to establishing a preference for New
  York state entities contracting with New York based vendors

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

  Section  1.  Paragraph  j of subdivision 1 of section 163 of the state
finance law, as amended by section 2 of part L of chapter 55 of the laws
of 2012, is amended to read as follows:
  j. "Best value" means the basis for awarding contracts for services to
the offerer which optimizes quality, cost and efficiency, among  respon-
sive and responsible offerers. Such basis shall reflect, wherever possi-
ble, objective and quantifiable analysis. Such basis may also identify a
quantitative  factor for offerers that are small businesses or certified
minority- or women-owned business enterprises as defined in subdivisions
one, seven, fifteen and twenty of section three hundred ten of the exec-
utive law to be used in evaluation of offers for awarding  of  contracts
for  services.  FOR STATE AGENCIES, SUCH BASIS SHALL IDENTIFY A QUALITA-
TIVE FACTOR FOR NEW YORK BASED VENDORS. A "NEW YORK BASED VENDOR" IS ANY
ENTITY WHOSE PRIMARY BUSINESS PRESENCE IS LOCATED  IN  NEW  YORK  STATE,
THAT  REALIZES,  ALONG  WITH  THE  GROSS  REVENUES OF ITS AFFILIATES AND
RELATED MEMBERS, NO LESS THAN FIFTY PERCENT OF ITS COMBINED GROSS REVEN-
UES, AS DEFINED BY GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, FROM  BUSI-
NESS  ACTIVITY GENERATED IN NEW YORK STATE, AND THAT HAS AT LEAST FIFTY-
ONE PERCENT OF  ITS,  INCLUDING  ITS  AFFILIATED  AND  RELATED  MEMBERS,
FULLTIME  EQUIVALENT  EMPLOYEES  EMPLOYED  IN  NEW YORK STATE, AND WHOSE
PRIMARY BUSINESS  ACTIVITY  IS  ANY  ACTIVITY  OTHER  THAN  GOVERNMENTAL
RELATIONS.
  S  2.  Section 163 of the state finance law is amended by adding a new
subdivision 15 to read as follows:
  15. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, FOR ANY BIDS
RELATED TO A DEVELOPMENT PROJECT UNDERTAKEN BY A STATE AGENCY, THE  COST
OF  WHICH EXCEEDS ONE MILLION DOLLARS IN THE COUNTIES OF NEW YORK, RICH-

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

                                                           LBD06129-07-2

S. 7786                             2

MOND, QUEENS, KINGS AND BRONX; EXCEEDS FIVE HUNDRED THOUSAND DOLLARS  IN
THE COUNTIES OF NASSAU, SUFFOLK AND WESTCHESTER; AND EXCEEDS TWO HUNDRED
FIFTY THOUSAND DOLLARS IN ALL OTHER COUNTIES, THE LOWEST BIDDER SHALL BE
THE  NEW  YORK BASED VENDOR AS DEFINED IN PARAGRAPH J OF SUBDIVISION ONE
OF THIS SECTION THAT SUBMITS THE LOWEST BID PROVIDED THAT  SUCH  BID  IS
NOT  MORE THAN FIVE PERCENT ABOVE THE LOWEST BID OF A VENDOR THAT IS NOT
A NEW YORK BASED VENDOR. FOR PURPOSES OF THIS SUBDIVISION,  "DEVELOPMENT
PROJECT"  SHALL  MEAN  THE CONSTRUCTION, RECONSTRUCTION, REHABILITATION,
IMPROVEMENT, ACQUISITION, SINGLY OR IN COMBINATION OF ONE OR MORE BUILD-
INGS OR STRUCTURES.
  S 3. Subdivision 10 of section 354 of the public authorities  law,  as
amended  by  chapter  766  of  the  laws  of 1992, is amended to read as
follows:
  10. To construct, reconstruct or  improve  on  or  along  the  thruway
system  in  the  manner  herein  provided,  suitable  facilities for gas
stations, restaurants, and other facilities for the public, or to  lease
the  right to construct, reconstruct or improve and operate such facili-
ties; such facilities shall be publicly offered for leasing  for  opera-
tion, or the right to construct, reconstruct or improve and operate such
facilities  shall  be publicly offered under rules and regulations to be
established by the authority, provided, however, that lessees  operating
such  facilities at the time this act becomes effective, may reconstruct
or improve them or may construct  additional  like  facilities,  in  the
manner  and upon such terms and conditions as the board shall determine;
and provided further, however, that such facilities constructed,  recon-
structed  or  improved  on or along the canal system shall be consistent
with the canal recreationway  plan  approved  pursuant  to  section  one
hundred thirty-eight-c of the canal law and section three hundred eight-
y-two  of this title AND PROVIDED, FURTHER, THAT FOR ANY BIDS RELATED TO
THE CONSTRUCTION OR RECONSTRUCTION OF ANY GAS STATIONS, RESTAURANTS  AND
OTHER  FACILITIES, FOR THE PUBLIC, THE COST OF WHICH EXCEEDS TWO HUNDRED
FIFTY THOUSAND DOLLARS, THE AUTHORITY SHALL PROVIDE A PREFERENCE TO  ANY
NEW YORK BASED VENDOR;
  S  4.  Subdivision 8 of section 1678 of the public authorities law, as
amended by chapter 251 of the laws  of  1962,  is  amended  to  read  as
follows:
  8.  By  contract  or  contracts  or by its own employees to construct,
acquire, reconstruct, rehabilitate and improve, and furnish  and  equip,
dormitories and necessary and usual attendant facilities for state-oper-
ated  institutions  and statutory and contract colleges under the juris-
diction of the state university of New York pursuant to  agreement  with
the  state university construction fund created by section three hundred
seventy-one of the education  law;  PROVIDED,  THAT  ANY  SUCH  CONTRACT
PROVIDE  A PREFERENCE TO NEW YORK BASED VENDORS, AS DEFINED IN PARAGRAPH
J OF SUBDIVISION ONE OF SECTION ONE HUNDRED  SIXTY-THREE  OF  THE  STATE
FINANCE  LAW,  IN A MANNER CONSISTENT WITH THE PROVISIONS OF SUBDIVISION
FIFTEEN OF SUCH SECTION IF THE CONTRACT IS A LOWEST  COST  CONTRACT  AND
PARAGRAPH J OF SUBDIVISION ONE OF SUCH SECTION FOR ALL OTHER CONTRACTS;
  S  5.  The  public  authorities law is amended by adding a new section
2879-c to read as follows:
  S 2879-C. NEW YORK STATE ENTITIES  PREFERRED  FOR  CERTAIN  CONTRACTS.
EVERY PUBLIC AUTHORITY AND PUBLIC BENEFIT CORPORATION, A MAJORITY OF THE
MEMBERS  OF WHICH CONSIST OF PERSONS EITHER APPOINTED BY THE GOVERNOR OR
WHO SERVE AS MEMBERS BY VIRTUE OF HOLDING A CIVIL OFFICE OF  THE  STATE,
OR  A  COMBINATION  THEREOF,  (SUCH  ENTITIES  TO BE HEREINAFTER IN THIS
SECTION REFERRED TO  AS  "CORPORATION")  SHALL,  WHEN  REQUIRED  TO  USE

S. 7786                             3

COMPETITIVE  BIDDING  FOR  THE  CONSTRUCTION,  RECONSTRUCTION, REHABILI-
TATION, IMPROVEMENT, ACQUISITION, SINGLY OR IN  COMBINATION  OF  ONE  OR
MORE  BUILDINGS OR STRUCTURES, SUCH AUTHORITY SHALL GIVE A PREFERENCE TO
ANY  NEW YORK BASED VENDOR CONSISTENT WITH THE PROVISIONS OF SUBDIVISION
FIFTEEN OF SECTION ONE HUNDRED SIXTY-THREE OF THE STATE FINANCE LAW  FOR
A  LOWEST  COST  CONTRACT  AND  PARAGRAPH  J  OF SUBDIVISION ONE OF SUCH
SECTION FOR ALL OTHER CONTRACTS.
  S 6. Paragraph b of subdivision 8 of section 376 of the education law,
as added by chapter 251 of the laws of  1962,  is  amended  to  read  as
follows:
  b.  The  letting  agency  shall  not  award  any contract after public
bidding except to the lowest bidder who in its opinion is  qualified  to
perform the work required and is responsible and reliable.  FOR ANY BIDS
RELATED  TO  A  PROJECT UNDERTAKEN PURSUANT TO THIS SECTION, THE COST OF
WHICH EXCEEDS ONE MILLION DOLLARS IN THE COUNTIES OF NEW YORK, RICHMOND,
QUEENS, KINGS AND BRONX; EXCEEDS FIVE HUNDRED THOUSAND  DOLLARS  IN  THE
COUNTIES  OF  NASSAU,  SUFFOLK  AND WESTCHESTER; AND EXCEEDS TWO HUNDRED
FIFTY THOUSAND DOLLARS IN ALL OTHER COUNTIES, THE LOWEST BIDDER SHALL BE
THE NEW YORK BASED VENDOR, AS DEFINED IN PARAGRAPH J OF SUBDIVISION  ONE
OF  SECTION  ONE  HUNDRED  SIXTY-THREE  OF  THE  STATE FINANCE LAW, THAT
SUBMITS THE LOWEST BID PROVIDED THAT SUCH BID  IS  NOT  MORE  THAN  FIVE
PERCENT  ABOVE  THE  LOWEST BID OF A VENDOR THAT IS NOT A NEW YORK BASED
VENDOR. THE LETTING AGENCY SHALL STILL MAKE  A  DETERMINATION  THAT  THE
LOWEST BIDDER IS QUALIFIED TO PERFORM THE WORK REQUIRED AND IS RESPONSI-
BLE  AND  RELIABLE.  The  letting agency may, however, reject any or all
bids, again advertise for bids, or waive any informality in a bid if  it
believes that the public interest will be promoted thereby.
  S 7. This act shall take effect on the one hundred twentieth day after
it  shall  have  become a law; provided, however, that the amendments to
section 163 of the state finance law made by sections  one  and  two  of
this act shall not affect the expiration and repeal of such section, and
shall expire and be deemed repealed therewith.