Enacts the "protect New York job acts"; provides referred source status for the purposes of procurement to New York based companies who meet certain criteria and which have at least fifty-one percent of its fulltime equivalent employees employed in New York State and whose primary business activity is to conduct business in any capacity other than government relations.
Ayes (28): DeFrancisco, Johnson, Alesi, Bonacic, Flanagan, Fuschillo, Golden, Griffo, Hannon, Lanza, Larkin, LaValle, Little, Marcellino, Nozzolio, Robach, Saland, Seward, Young, Diaz, Dilan, Montgomery, Oppenheimer, Parker, Perkins, Rivera, Stavisky, Squadron
Ayes W/R (6): Krueger, Breslin, Duane, Gianaris, Peralta, Stewart-Cousins
Excused (1): Farley
TITLE OF BILL: An act to amend the state finance law, in relation to preferred source status for the purposes of procurement
PURPOSE: To protect jobs and help businesses located in New York State and that generate economic activity in New York State. If a business is located in New York and is bidding for a public contract, given that the business produces a product of equal quality at a competitive price, it is in the best interest of New York to award the contract to a New York domiciled business. This protects jobs and generates economic activity which in turn generates tax revenue.
SUMMARY OF PROVISIONS: Section 1. Establishes the "Protect New York Jobs Act" and amends section 161 of the State Finance Law to add economic nexus of the vendor to the guidelines for wise and prudent uses of public money developed by the State Procurement Council.
Section 2. Amends section 161 of the State Finance Law to add New York State based businesses as preferred sources for the purpose of public contracts. To qualify a business must have an organizational presence in New York State, generate at least 50 percent of its gross income from business conducted in the State and have at least one employee located in the State (excluding employees whose primary role is government relations).
Section 4. Amends 162 of the State Finance Law to add New York based vendors to the list of priority accorded preferred sources.
Section 5. Effective date.
JUSTIFICATION: New York State issues tens of billions of dollars in vendor contracts annually. Awarding contracts to out of State firms is tantamount to exporting jobs out of New York State and sometimes out of the country.
If a business is based in New York State, employs New Yorkers and can provide the same quality of service at a competitive price, it follows that public contracts should be awarded to that business.
LEGISLATIVE HISTORY: S.7743 of 2010, Finance
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: Ninety days after being signed into law.
STATE OF NEW YORK ________________________________________________________________________ 2733--B 2011-2012 Regular Sessions IN SENATE January 31, 2011 ___________Introduced by Sen. GOLDEN -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- recommitted to the Committee on Finance in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee AN ACT to amend the state finance law, in relation to preferred source status for the purposes of procurement THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Short title. This act shall be known and may be cited as the "Protect New York jobs act". S 2. Paragraph i of subdivision 2 of section 161 of the state finance law, as added by chapter 83 of the laws of 1995, is amended to read as follows: i. Establish and, from time to time, amend guidelines for the procure- ment of services and technology in accordance with the provisions of this article. Such guidelines shall ensure the wise and prudent use of public money in the best interest of the taxpayers of the state; guard against favoritism, improvidence, extravagance, fraud and corruption; and ensure that service contracts are awarded on the basis of best value, including, but not limited to, the following criteria: quality, cost, and efficiency; AND ALL OTHER CRITERIA BEING EQUAL, THE ECONOMIC NEXUS OF THE VENDOR AS PROVIDED FOR IN PARAGRAPH G OF SUBDIVISION TWO OF SECTION ONE HUNDRED SIXTY-TWO OF THIS ARTICLE; S 3. Paragraphs e and f of subdivision 2 of section 162 of the state finance law, paragraph e as amended and paragraph f as added by chapter 501 of the laws of 2002, are amended, and a new paragraph g is added to read as follows:EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06129-03-2 S. 2733--B 2
e. Commodities and services produced by a qualified veterans' workshop providing job and employment-skills training to veterans where such a workshop is operated by the United States department of veterans affairs and is manufacturing products or performing services within this state and where such workshop is approved for such purposes by the commission- er of education;
[or]f. Commodities and services produced by any qualified charitable non- profit-making workshop for veterans approved for such purposes by the commissioner of education, or incorporated under the laws of this state and approved for such purposes by the commissioner of education [.]; OR G. COMMODITIES OR SERVICES PRODUCED BY A COMPANY WHOSE PRIMARY BUSI- NESS PRESENCE IS LOCATED IN NEW YORK STATE, THAT REALIZES, ALONG WITH THE GROSS REVENUES OF ITS AFFILIATES AND RELATED MEMBERS, NO LESS THAN FIFTY PERCENT OF ITS COMBINED GROSS REVENUES, AS DEFINED BY GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, FROM BUSINESS ACTIVITY GENERATED IN NEW YORK STATE, AND THAT HAS AT LEAST FIFTY-ONE PERCENT OF ITS, ALONG WITH ITS AFFILIATED AND RELATED MEMBERS, FULLTIME EQUIVALENT EMPLOYEES EMPLOYED IN NEW YORK STATE, AND WHOSE PRIMARY BUSINESS ACTIVITY IS TO CONDUCT SUCH ACTIVITY IN ANY CAPACITY OTHER THAN GOVERNMENTAL RELATIONS. S 4. Subparagraph (iii) of paragraph a of subdivision 4 of section 162 of the state finance law, as added by chapter 83 of the laws of 1995, is amended to read as follows: (iii) When commodities are available, in the form, function and utili- ty required by, a state agency or political subdivision or public bene- fit corporation having their own purchasing agency, and such commodities are not available pursuant to subparagraphs (i) and (ii) of this para- graph, said commodities shall then be purchased from a qualified non- profit-making agency for other severely disabled persons, a qualified special employment program for mentally ill persons, [or]a qualified veterans' workshop, OR A NEW YORK BASED VENDOR AS PROVIDED FOR IN PARA- GRAPH G OF SUBDIVISION TWO OF THIS SECTION; S 5. This act shall take effect on the ninetieth day after it shall have become a law.