NY State Senate Bill 2023-S1074

Senate Bill S1074

2023-2024 Legislative Session

Allows for in-state suppliers to receive preference in certain situations when the state is awarding contracts

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Current Bill Status - In Senate Committee Finance 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to finance
Jan 10, 2023	referred to finance

co-Sponsors

2023-S1074 (ACTIVE) - Details

See Assembly Version of this Bill:: A5724
Current Committee:: Senate Finance
Law Section:: State Finance Law
Laws Affected:: Add §149, St Fin L
Versions Introduced in 2021-2022 Legislative Session:: S5479

2023-S1074 (ACTIVE) - Summary

Allows for in-state suppliers to receive preference in certain situations when the state is awarding contracts.

2023-S1074 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1074

SPONSOR: BORRELLO
 
TITLE OF BILL:

An act to amend the state finance law, in relation to allowing for
in-state suppliers to receive preference in certain situations when the
state is awarding contracts

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill will help in-state suppliers better compete in bids for New
York State contracts.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1: The state finance law is amended by adding a new section 148
to address the meanings of "State agency" and "existing in-state suppli-
er." If a New York State contract bid by an in-state supplier is not
more than 15 percent of the lowest responsible bid from an out-of-state
supplier, the instate supplier will have the opportunity to match.

Section 2: Provides the effective date

 
JUSTIFICATION:

There has been a disturbing trend of New York State taxpayer money being
spent to contract with out-of-state companies. Particularly, with so
many in our business community struggling to stay afloat, bolstering the
competitors of New York businesses and the economies of other states is
increasingly difficult to justify.

Many in-state suppliers are already at a disadvantage because the cost
of doing business in New York is largely attributed to onerous state
government taxes, laws and regulations. This bill would.allow in-state
vendors who are within 15 percent of the lowest bid, the opportunity to
match the lowest responsible bid of an out-of-state supplier. Agencies
would then have the opportunity to give preference to the in-state
bidder.

This will also help address any potential abuse by in-state bidders, who
think they have the advantage and can bid much higher than what a market
rate may be for the product or service they are providing.

 
PRIOR LEGISLATIVE HISTORY:

2022: S.5479-B Referred to Procurement and Contracts

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S1074 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1074
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 10, 2023
                                ___________
 
 Introduced  by  Sens.  BORRELLO,  OBERACKER,  O'MARA  --  read twice and
   ordered printed, and when printed to be committed to the Committee  on
   Finance
 
 AN  ACT  to  amend  the  state  finance law, in relation to allowing for
   in-state suppliers to receive preference in  certain  situations  when
   the state is awarding contracts

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The state finance law is amended by adding  a  new  section
 149 to read as follows:
   §  149.  IN-STATE  SUPPLIER  PREFERENCE  FOR  STATE  CONTRACTS. 1. FOR
 PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE  THE  FOLLOWING
 MEANINGS:
   (A)  "STATE  AGENCY" SHALL HAVE THE SAME MEANING AS DEFINED IN SECTION
 ONE HUNDRED SEVENTY-NINE-E OF THIS CHAPTER.
   (B) "EXISTING IN-STATE SUPPLIER" SHALL MEAN AN  INDIVIDUAL  OR  ENTITY
 WHO  IS  RESIDENT  IN  THE  STATE  AND REGULARLY AND CONSISTENTLY DOES A
 MAJORITY OF THEIR BUSINESS WITHIN THE STATE WHO IS ABLE TO PROVIDE GOODS
 OR SERVICES THAT THE STATE IS LOOKING TO CONTRACT FOR.
   2. WHEN A STATE CONTRACT FOR THE PURCHASE OF GOODS OR SERVICES  IS  TO
 BE MADE AND AWARDED TO THE LOWEST RESPONSIBLE BIDDER, AN OTHERWISE QUAL-
 IFIED  BIDDER  WHO WILL FULFILL THE CONTRACT WHO IS AN EXISTING IN-STATE
 SUPPLIER OF SUCH GOODS OR SERVICES SHALL BE ALLOWED TO MATCH THE BID  OF
 THE LOWEST RESPONSIBLE BIDDER BEFORE ANY CONTRACT IS MADE AND AWARDED BY
 THE  STATE  OR  BY ANY STATE AGENCY IF SUCH LOWEST RESPONSIBLE BIDDER IS
 NOT AN EXISTING IN-STATE SUPPLIER, PROVIDED THAT THE  COST  INCLUDED  IN
 THE  BID  OF  SUCH  EXISTING  IN-STATE SUPPLIER IS NOT MORE THAN FIFTEEN
 PERCENT GREATER THAN THE COST INCLUDED IN THE BID OF THE LOWEST  RESPON-
 SIBLE BIDDER WHO IS NOT AN EXISTING IN-STATE SUPPLIER.
   3.  IF  AN  OTHERWISE  QUALIFIED  BIDDER  WHO  IS AN EXISTING IN-STATE
 SUPPLIER CHOOSES TO MATCH THE LOWEST RESPONSIBLE BIDDER WHO  IS  NOT  AN
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03934-01-3

 S. 1074                             2
 
 EXISTING  IN-STATE  SUPPLIER,  THEN THE STATE OR A STATE AGENCY MAY GIVE
 PREFERENCE TO SUCH EXISTING IN-STATE SUPPLIER WHEN MAKING  AND  AWARDING
 SUCH CONTRACT.
   § 2. This act shall take effect immediately.

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Senate Bill S1074

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Sponsored By

George M. Borrello