Provides a preference for New York state contractors for purposes of public works contracts; authorizes the commissioner of economic development and the commissioner of labor to promulgate necessary rules and regulations; requires a report to the legislature; makes related provisions.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3198
SPONSOR: Ra TITLE OF BILL:
An act to amend the state finance law, in relation to providing a pref-
erence to New York state contractors for purposes of public works
contracts
PURPOSE OR GENERAL IDEA OF BILL:
This bill would grant a preference to New York State contractors for
contracts to erect, construct, reconstruct, alter or repair buildings of
the state when a specified percentage of unemployment exists within the
pertinent industries within the state.
SUMMARY OF PROVISIONS:
This bill would amend the state finance law by adding a new section 147.
1. Would require the commissions charged with awarding public works
contracts, in accordance with section 135 and section 147 of the State
Finance Law, to prefer services for work, labor and supervision of
certain state projects be . performed by state residents.
2. Requires that the Commissioners of Economic Development and Labor
promulgate and update a list of components and services that are deemed
in need of beneficial treatment by this section.
3. Provides that the Commissioners shall specify the percentage of
employment required to exist in each pertinent industry. This section
also allows a waiver of the requirements if the Commissioners determine
an insufficient percentage of unemployment exists, if there are no
acceptable bids received, or if they agree that the requirement would
have a deleterious economic impact.
4. Allows the Commissioners to issue regulations to implement this
section.
5. Provides that if bidders do not comply and certify that their
services for work, labor and suspension comply with this section, they
are deemed to forfeit their right to bid for a period of time specified
by the Commissioners.
6. Requires the Commissioners to provide a report to the legislature
regarding their recommendations and the effects of this section. This
report must be issued each succeeding year after the effective date, on
the 15th of January.
7. A severability clause which provides that if a competent court inval-
idates a portion of this section, it does not affect the validity of the
other provisions.
JUSTIFICATION:
This legislation would allow preference for New York State residents for
bids on public works projects. Implementation of this legislation would
ensure that New York State residents are employed, receiving health
insurance for their families through their employment, and paying New
York State income taxes. If these residents were not employed, New York
State would be paying them benefits, rather than collecting income
taxes. Keeping New Yorkers employed generates more money into the econo-
my of the state, hereby benefiting all residents of the state.
PRIOR LEGISLATIVE HISTORY:
A.3094 (2017) - referred to governmental operations
A.9051 (2018) - referred to governmental operations
A.4138 (2019) - held for consideration in governmental operations
A.4441 (2021-2022) - held for consideration in governmental operations
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become a law.
STATE OF NEW YORK
________________________________________________________________________
3198
2023-2024 Regular Sessions
IN ASSEMBLY
February 2, 2023
___________
Introduced by M. of A. RA, BRABENEC -- read once and referred to the
Committee on Governmental Operations
AN ACT to amend the state finance law, in relation to providing a pref-
erence to New York state contractors for purposes of public works
contracts
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Article 9 of the state finance law is amended by adding a
2 new section 149 to read as follows:
3 § 149. Preference for New York state contractors. 1. Except as other-
4 wise provided in this section, when letting contracts in accordance with
5 section one hundred thirty-five of this article for the purpose of
6 erecting, constructing, reconstructing, altering or repairing buildings
7 of the state, bid specifications of every officer, board, department,
8 commission or commissions charged with the duty of preparing specifica-
9 tions or awarding such contracts may require provisions that mandate
10 that the essential components of such projects be produced or processed
11 in facilities located within the state and that the services for work,
12 labor and supervision of such projects be performed by partnerships,
13 firms, businesses or corporations which are residents of the state.
14 2. The commissioner of economic development and the commissioner of
15 labor shall determine, using uniform criteria, those types of components
16 and services for which the requirements of this section are deemed bene-
17 ficial and shall promulgate and forward to the appropriate agencies a
18 list of such components and services. Such commissioners shall update
19 such list as often as is deemed by them to be necessary.
20 3. (a) The commissioner of economic development and the commissioner
21 of labor shall specify the percentage of unemployment required to exist
22 in the pertinent industries within the state and the percentage of each
23 component required to be produced or processed in the state.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07284-01-3
A. 3198 2
1 (b) Upon a determination by such commissioners that a sufficient
2 percentage of unemployment in the pertinent industries of New York
3 produced or processed components does not exist in the state, the spec-
4 ifications requiring the use of New York produced or processed compo-
5 nents or New York services for work, labor and supervision shall be
6 waived.
7 (c) In the event that no acceptable bids are received, the provisions
8 of this section may be waived and the contract may be awarded in accord-
9 ance with other applicable statutes. In addition, if such commissioners
10 agree to the deleterious economic impact of these specifications, the
11 provisions of this section may be waived.
12 4. The commissioner of economic development and the commissioner of
13 labor may issue such regulations as they deem necessary and proper for
14 the implementation of this section.
15 5. (a) With each bid, the bidder shall certify that the components and
16 services for work, labor and supervision to be utilized shall be in
17 conformity with the provisions of this section.
18 (b) Any successful bidder who fails to comply with the provisions of
19 this section shall forfeit the right to bid on contracts let under the
20 provisions of this section for a period of time to be determined by the
21 commissioner of economic development and the commissioner of labor.
22 6. Each succeeding year after the effective date of this section, the
23 commissioner of economic development and the commissioner of labor shall
24 provide the legislature with a report on the fifteenth day of January on
25 the effects of this section and recommendations on ways to make it more
26 effective.
27 7. If any clause, sentence, paragraph, or part of this section or the
28 application thereof to any person or circumstances, shall, for any
29 reason, be adjudged by a court of competent jurisdiction to be invalid,
30 such judgment shall not affect, impair, or invalidate the remainder of
31 this section, and the application thereof to other persons or circum-
32 stances, but shall be confined in its operation to the clause, sentence,
33 paragraph, or part thereof directly involved in the controversy in which
34 such judgment shall have been rendered and to the person or circum-
35 stances involved. It is hereby declared to be the intent that this
36 section would have been adopted had such invalid provisions not been
37 included.
38 § 2. This act shall take effect on the sixtieth day after it shall
39 have become a law.
