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BILL NUMBER:S2733B

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.

Text

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.