This bill has been amended

Bill S5552-2013

Relates to local product procurement and a procurement training program for agricultural business

Relates to local product procurement and a procurement training program for agricultural business.

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  • May 17, 2013: REFERRED TO AGRICULTURE

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BILL NUMBER:S5552

TITLE OF BILL: An act to amend the agriculture and markets law and the state finance law, in relation to local product procurement; and in relation to a procurement training program for agricultural business

PURPOSE: The purpose of this bill is to increase the amount of New York State local food products purchased by New York State agencies, and provide procurement training to agricultural businesses. This legislation will strengthen upstate economies, and build on our agricultural industry's impressive economic impact.

SUMMARY OF PROVISIONS:

Section 1: Amends the Agriculture and Markets Law to define the term "local food product"

Section 2: Amends State Finance Law to allow purchasing agencies in NYS to encourage and facilitate the procurement of local food products

Section 3: Amends State Finance Law by establishing a Procurement Training Program for agricultural businesses in NYS

Section 4: States this act shall take effect immediately

JUSTIFICATION: Under current State Finance Law governing the state's procurement process, state agencies are permitted to give a preference to state food producers or Processors. Upon a determination that such a producer or processor can offer its products in the amount required, agencies may mandate. that all or some of the required food products are grown, produced, or harvested in New York state, or that any processing of such food products take Place in facilities located within New York State. However, this provision may be waived if the purchase of New York food products would create a negative economic impact to the state.

While supportive of the state's agricultural industry, more and more states are implementing policies going beyond this standard. Purchase preference laws for state products appear in eleven states including Massachusetts, Illinois, Maryland and Oregon. This policy allows state entities to purchase higher priced goods from an in-state producer, if the price is within a certain percentage range of an out-of-state producer that it is in competition with.

In 2009, the New York State Council on Food Policy recommended that our state adopt such a policy. The Council stated that New York should allow a state preference provided that the cost is not more than 10% greater than the cost included in a bid from an out-of-state producer. Just last year, New York City enacted such a policy.

This legislation seeks to do the same for New York State agencies. It cannot be stated enough how important agriculture is to our state's economy. The agriculture and forestry industries have a combined economic impact of $38 billion on state economic output, and generates 196,200 jobs. Our current state procurement process does not provide enough support for New York's farmers. State agencies can play a vital

role in ensuring the continued strength of our agricultural sector. These entities have great purchasing power. By providing a purchase preference New York's agricultural industry would benefit greatly.

Furthermore, this legislation also includes a training program for agricultural businesses interested in participating in the procurement process. The Office of General Services will work in conjunction with the Department of Economic Development and Department of Agriculture and Markets to provide an annual training program in each of the economic development regions. Such a program will provide these businesses with invaluable information on navigating the procurement process. Additionally, businesses will learn what goods are in demand but not produced in sufficient quantities to locally source.

LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: Immediately


Text

STATE OF NEW YORK ________________________________________________________________________ 5552 2013-2014 Regular Sessions IN SENATE May 17, 2013 ___________
Introduced by Sen. VALESKY -- read twice and ordered printed, and when printed to be committed to the Committee on Agriculture AN ACT to amend the agriculture and markets law and the state finance law, in relation to local product procurement; and in relation to a procurement training program for agricultural business THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 2 of the agriculture and markets law is amended by adding a new subdivision 6 to read as follows: 6. "LOCAL FOOD PRODUCTS" MEANS ANY FOOD PRODUCTS THAT ARE GROWN, PRODUCED, HARVESTED, AND/OR PROCESSED BY NEW YORK CITIZENS OR BUSINESSES LOCATED WITHIN THE BORDERS OF NEW YORK STATE, AND PREDOMINANTLY CONTAINS NEW YORK-GROWN INGREDIENTS. S 2. Subdivision 4 of section 165 of the state finance law, as amended by chapter 137 of the laws of 2008, is amended to read as follows: 4. Special provisions for purchase of available New York food products. a. Except as otherwise provided in this subdivision, when letting contracts for the purchase of food products on behalf of facilities and institutions of the state, solicitation specifications of the office of general services and any other agency, department, office, board or commission may require provisions that mandate that all or some of the required food products are [grown, produced or harvested in New York state, or that any processing of such food products take place in facil- ities located within New York state] LOCAL FOOD PRODUCTS, AS SUCH TERM IS DEFINED IN SUBDIVISION SIX OF SECTION TWO OF THE AGRICULTURE AND MARKETS LAW. b. The commissioner of agriculture and markets shall determine, using uniform criteria, those LOCAL food products, AS SUCH TERM IS DEFINED IN SUBDIVISION SIX OF SECTION TWO OF THE AGRICULTURE AND MARKETS LAW, for which the requirements of this subdivision are deemed beneficial and
shall promulgate and forward to the appropriate agencies a list of such LOCAL food products, and shall in addition ascertain those periods of time each year that those LOCAL food products are available in suffi- cient quantities for competitive purchasing and shall forward such information to purchasing agencies. The commissioner of agriculture and markets shall update such list as often as is deemed by him or her to be necessary. c. (i) Prior to issuing a solicitation for such food products, purchasing agencies shall advise the commissioner of agriculture and markets of the quantities of each food product on the list promulgated by the commissioner of agriculture and markets to fulfill that agency's purchasing needs. (ii) The commissioner of agriculture and markets will then make a determination of whether those products required by the purchasing agen- cy are available in sufficient quantities to satisfy the purchasing agency's requirements. (iii) Upon a determination by the commissioner of agriculture and markets that the food products required by the purchasing agency are available in sufficient quantities to fulfill the agency's purchasing needs, the purchasing agency may include in its solicitation a require- ment that all or some of those food products are [grown, produced or harvested in New York state, or that any processing of such food products take place in facilities located within New York state] LOCAL FOOD PRODUCTS, AS SUCH TERM IS DEFINED IN SUBDIVISION SIX OF SECTION TWO OF THE AGRICULTURE AND MARKETS LAW. THE PURCHASING AGENCY MAY THEN GIVE PREFERENCE TO PROCURING LOCAL FOOD PRODUCTS, IF THE PRODUCTS COST NO MORE THAN TEN PERCENT MORE THAN FOOD PRODUCTS THAT ARE NOT GROWN, PRODUCED, HARVESTED, AND/OR PROCESSED WITHIN THIS STATE. (iv) Upon a determination by the commissioner of agriculture and markets that such food products are not available in sufficient quanti- ties to fulfill the agency's purchasing needs, the purchasing agency shall issue a solicitation that does not require that all or some of those food products are [grown, produced or harvested in New York state, or that any processing of such food products take place in facilities located within New York state] LOCAL FOOD PRODUCTS, AS SUCH TERM IS DEFINED IN SUBDIVISION SIX OF SECTION TWO OF THE AGRICULTURE AND MARKETS LAW. In such cases, the purchasing agency may include such requirements in the next contract for such food products that is let if at such time those food products are available in sufficient quantities. If at that time, those food products are not available in sufficient quantities, the requirement shall again be waived until such time as the products are available. (v) In the event that the purchasing agency receives no offers that meet the agency's requirement that all or some of the food products are [grown, produced or harvested in New York state, or that any processing of such food products take place in facilities located within New York state] LOCAL FOOD PRODUCTS, AS SUCH TERM IS DEFINED IN SUBDIVISION SIX OF SECTION TWO OF THE AGRICULTURE AND MARKETS LAW, it may waive the provisions of this subdivision and award a contract in accordance with other applicable statutes. In addition, if the commissioners of agricul- ture and markets, economic development and any such individual agency shall agree as to the deleterious economic impact of specifications requiring such purchases, such agencies may waive the provisions of this subdivision for such purchases.
d. The commissioner, and the commissioner of agriculture and markets, may issue such regulations as they deem necessary and proper for the implementation of this subdivision. e. Notwithstanding any other section of law, rule, regulation or stat- ute, the department of agriculture and markets shall supply information required by paragraph b of this subdivision to the office of general services and to all other appropriate agencies. f. (i) With each offer, the offerer shall certify that the food products provided pursuant to that solicitation will be in conformity with the provisions of the percentage required to meet or exceed the requirements in the solicitation specifying that all or some of the food products be [grown, produced, or harvested within New York state or that any processing of such food products take place in facilities located within New York state] LOCAL FOOD PRODUCTS, AS SUCH TERM IS DEFINED IN SUBDIVISION SIX OF SECTION TWO OF THE AGRICULTURE AND MARKETS LAW. (ii) Any successful offerer who fails to comply with the provisions of this subdivision, at the discretion of such agency, board, office or commission, shall forfeit the right to bid on contracts let under the provisions of this subdivision for a period of time to be determined by the commissioner and the commissioner of agriculture and markets. g. The commissioner and the commissioner of agriculture and markets, shall advise and assist the chancellor of the state university of New York in extending the benefits of the provisions of this subdivision to the university and shall modify any regulations or procedures heretofore established pursuant to this subdivision, in order to facilitate such participation. S 3. Subparagraphs (vii), (viii), (ix), (x) and (xi) of paragraph (b) of subdivision 3 of section 163 of the state finance law, subparagraph (vii) as added by chapter 584 of the laws of 2005, and subparagraphs (viii), (ix), (x) and (xi) as added by chapter 137 of the laws of 2008, are amended to read as follows: (vii) WITH THE ASSISTANCE OF THE DEPARTMENT OF ECONOMIC DEVELOPMENT AND THE DEPARTMENT OF AGRICULTURE AND MARKETS, PROVIDE A TRAINING PROGRAM ONCE PER YEAR, IN EACH ECONOMIC DEVELOPMENT REGION, AS ESTAB- LISHED IN ARTICLE ELEVEN OF THE ECONOMIC DEVELOPMENT LAW, BEGINNING JANUARY FIRST, TWO THOUSAND FOURTEEN, FOR AGRICULTURAL BUSINESSES. SUCH TRAINING PROGRAM SHALL PROVIDE ASSISTANCE WITH RESPECT TO PARTICIPATION AS A VENDOR IN THE PROCUREMENT PROCESS, AS ESTABLISHED IN THIS ARTICLE, AND THE DEVELOPMENT OF LOCAL FOOD PRODUCTS WHICH ARE NOT GROWN, PRODUCED, HARVESTED, AND/OR PROCESSED IN SUFFICIENT QUANTITIES TO FULFILL STATE AGENCIES' NEEDS. (VIII) maintain a list of contractors which produce or manufacture or offer for sale environmentally-sensitive cleaning and maintenance products in the form, function and utility generally used by elementary and secondary schools in accordance with specifications or guidelines promulgated pursuant to section four hundred nine-i of the education law. [(viii)] (IX) review and consider prior to issuance of bid solicita- tions the term of the proposed contract based on factors, including, but not limited to; (A) the nature of the commodity, (B) the complexity of the procurement, (C) the identity and type of purchasers, (D) the suit- ability of the contract for adding additional contractors during the term, and (E) the estimated contract value. This determination shall be documented in the procurement record. [(ix)] (X) reasonably consider aggregate amount of public sales by potential vendors.
[(x)] (XI) review and consider the feasibility of creating regional contracts for commodities being procured by the state. [(xi)] (XII) maintain a procurement record for each centralized contract procurement identifying, with supporting documentation, deci- sions made by the commissioner during the procurement process. The procurement record shall include, but not be limited to, each contract amendment, and the justification for each. S 4. This act shall take effect immediately; provided however that the amendments made to subparagraphs (vii), (viii), (ix), (x) and (xi) of paragraph (b) of subdivision 3 of section 163 of the state finance law by section three of this act shall not affect the repeal of such section and shall be deemed repealed therewith.

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