STATE OF NEW YORK
________________________________________________________________________
7786
IN SENATE
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:
1 Section 1. Paragraph j of subdivision 1 of section 163 of the state
2 finance law, as amended by section 2 of part L of chapter 55 of the laws
3 of 2012, is amended to read as follows:
4 j. "Best value" means the basis for awarding contracts for services to
5 the offerer which optimizes quality, cost and efficiency, among respon-
6 sive and responsible offerers. Such basis shall reflect, wherever possi-
7 ble, objective and quantifiable analysis. Such basis may also identify a
8 quantitative factor for offerers that are small businesses or certified
9 minority- or women-owned business enterprises as defined in subdivisions
10 one, seven, fifteen and twenty of section three hundred ten of the exec-
11 utive law to be used in evaluation of offers for awarding of contracts
12 for services. For state agencies, such basis shall identify a qualita-
13 tive factor for New York based vendors. A "New York based vendor" is any
14 entity whose primary business presence is located in New York state,
15 that realizes, along with the gross revenues of its affiliates and
16 related members, no less than fifty percent of its combined gross reven-
17 ues, as defined by generally accepted accounting principles, from busi-
18 ness activity generated in New York state, and that has at least fifty-
19 one percent of its, including its affiliated and related members,
20 fulltime equivalent employees employed in New York state, and whose
21 primary business activity is any activity other than governmental
22 relations.
23 § 2. Section 163 of the state finance law is amended by adding a new
24 subdivision 15 to read as follows:
25 15. Notwithstanding any provision of law to the contrary, for any bids
26 related to a development project undertaken by a state agency, the cost
27 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
1 mond, Queens, Kings and Bronx; exceeds five hundred thousand dollars in
2 the counties of Nassau, Suffolk and Westchester; and exceeds two hundred
3 fifty thousand dollars in all other counties, the lowest bidder shall be
4 the New York based vendor as defined in paragraph j of subdivision one
5 of this section that submits the lowest bid provided that such bid is
6 not more than five percent above the lowest bid of a vendor that is not
7 a New York based vendor. For purposes of this subdivision, "development
8 project" shall mean the construction, reconstruction, rehabilitation,
9 improvement, acquisition, singly or in combination of one or more build-
10 ings or structures.
11 § 3. Subdivision 10 of section 354 of the public authorities law, as
12 amended by chapter 766 of the laws of 1992, is amended to read as
13 follows:
14 10. To construct, reconstruct or improve on or along the thruway
15 system in the manner herein provided, suitable facilities for gas
16 stations, restaurants, and other facilities for the public, or to lease
17 the right to construct, reconstruct or improve and operate such facili-
18 ties; such facilities shall be publicly offered for leasing for opera-
19 tion, or the right to construct, reconstruct or improve and operate such
20 facilities shall be publicly offered under rules and regulations to be
21 established by the authority, provided, however, that lessees operating
22 such facilities at the time this act becomes effective, may reconstruct
23 or improve them or may construct additional like facilities, in the
24 manner and upon such terms and conditions as the board shall determine;
25 and provided further, however, that such facilities constructed, recon-
26 structed or improved on or along the canal system shall be consistent
27 with the canal recreationway plan approved pursuant to section one
28 hundred thirty-eight-c of the canal law and section three hundred eight-
29 y-two of this title and provided, further, that for any bids related to
30 the construction or reconstruction of any gas stations, restaurants and
31 other facilities, for the public, the cost of which exceeds two hundred
32 fifty thousand dollars, the authority shall provide a preference to any
33 New York based vendor;
34 § 4. Subdivision 8 of section 1678 of the public authorities law, as
35 amended by chapter 251 of the laws of 1962, is amended to read as
36 follows:
37 8. By contract or contracts or by its own employees to construct,
38 acquire, reconstruct, rehabilitate and improve, and furnish and equip,
39 dormitories and necessary and usual attendant facilities for state-oper-
40 ated institutions and statutory and contract colleges under the juris-
41 diction of the state university of New York pursuant to agreement with
42 the state university construction fund created by section three hundred
43 seventy-one of the education law; provided, that any such contract
44 provide a preference to New York based vendors, as defined in paragraph
45 j of subdivision one of section one hundred sixty-three of the state
46 finance law, in a manner consistent with the provisions of subdivision
47 fifteen of such section if the contract is a lowest cost contract and
48 paragraph j of subdivision one of such section for all other contracts;
49 § 5. The public authorities law is amended by adding a new section
50 2879-c to read as follows:
51 § 2879-c. New York state entities preferred for certain contracts.
52 Every public authority and public benefit corporation, a majority of the
53 members of which consist of persons either appointed by the governor or
54 who serve as members by virtue of holding a civil office of the state,
55 or a combination thereof, (such entities to be hereinafter in this
56 section referred to as "corporation") shall, when required to use
S. 7786 3
1 competitive bidding for the construction, reconstruction, rehabili-
2 tation, improvement, acquisition, singly or in combination of one or
3 more buildings or structures, such authority shall give a preference to
4 any New York based vendor consistent with the provisions of subdivision
5 fifteen of section one hundred sixty-three of the state finance law for
6 a lowest cost contract and paragraph j of subdivision one of such
7 section for all other contracts.
8 § 6. Paragraph b of subdivision 8 of section 376 of the education law,
9 as added by chapter 251 of the laws of 1962, is amended to read as
10 follows:
11 b. The letting agency shall not award any contract after public
12 bidding except to the lowest bidder who in its opinion is qualified to
13 perform the work required and is responsible and reliable. For any bids
14 related to a project undertaken pursuant to this section, the cost of
15 which exceeds one million dollars in the counties of New York, Richmond,
16 Queens, Kings and Bronx; exceeds five hundred thousand dollars in the
17 counties of Nassau, Suffolk and Westchester; and exceeds two hundred
18 fifty thousand dollars in all other counties, the lowest bidder shall be
19 the New York based vendor, as defined in paragraph j of subdivision one
20 of section one hundred sixty-three of the state finance law, that
21 submits the lowest bid provided that such bid is not more than five
22 percent above the lowest bid of a vendor that is not a New York based
23 vendor. The letting agency shall still make a determination that the
24 lowest bidder is qualified to perform the work required and is responsi-
25 ble and reliable. The letting agency may, however, reject any or all
26 bids, again advertise for bids, or waive any informality in a bid if it
27 believes that the public interest will be promoted thereby.
28 § 7. This act shall take effect on the one hundred twentieth day after
29 it shall have become a law; provided, however, that the amendments to
30 section 163 of the state finance law made by sections one and two of
31 this act shall not affect the expiration and repeal of such section, and
32 shall expire and be deemed repealed therewith.
