A01301 Summary:

BILL NO    A01301 

SAME AS    Same as S 1549

SPONSOR    Wright (MS)

COSPNSR    Hooper, Schroeder, Christensen

MLTSPNSR   Aubry, Colton, Cook, Dinowitz, Greene, John, Magee, Millman, Pheffer,
           Reilly

Amd S103, Gen Muni L; amd S135, St Fin L

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.

A01301 Actions:

BILL NO    A01301 

01/07/2009 referred to local governments
01/06/2010 referred to local governments

A01301 Votes:

A01301 Memo:

 BILL NUMBER:  A1301

 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 4 of part x of chapter 62 of the
laws of 2003; subdivision 1 of section 103 of the general municipal
law, as amended by chapter 413 of the laws of 1991; and section 135 of
the State Finance Law are amended.

 JUSTIFICATION :
During these 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 :
2007 - A.376 2005 - A.3698

 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 not manufacture,
produce, grow 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 other 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 :
September first after it shall have become law.