NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A4578
SPONSOR: Jensen 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 regu-
lations. This bill would allow in-state vendors who are within 15
percent of the lowest bid, the opportunity to match the lowest responsi-
ble bid of an out-of-state supplier. Agencies would then have the oppor-
tunity 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:
2023/24: A,5724
2022/21: S.5479-B Referred to Procurement and Contracts
FISCAL IMPLICATIONS:
None
EFFECTIVE DATE:
This act shall take effect immediately.
