S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2511
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 26, 2023
                                ___________
 
 Introduced  by  M. of A. ANGELINO, DeSTEFANO, LEMONDES, McDONOUGH, MIKU-
   LIN, MILLER, MORINELLO -- read once and referred to the  Committee  on
   Governmental Operations
 
 AN  ACT  to  amend  the state finance law, in relation to establishing a
   method for determining the lowest responsible bidder when  negotiating
   state contracts

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Article 9 of the state finance law is amended by  adding  a
 new section 134 to read as follows:
   § 134. DECLARATION OF POLICY. 1. IT IS HEREBY DECLARED TO BE THE POLI-
 CY OF THIS STATE THAT THIS ARTICLE SHALL BE CONSTRUED IN THE NEGOTIATION
 OF CONTRACTS FOR PUBLIC WORKS AND PUBLIC PURCHASES TO WHICH THE STATE IS
 A  PARTY SO AS TO ASSURE THE PRUDENT AND ECONOMICAL USE OF PUBLIC MONEYS
 FOR THE BENEFIT OF ALL THE INHABITANTS OF THE STATE  AND  TO  FACILITATE
 THE  ACQUISITION OF FACILITIES AND COMMODITIES OF MAXIMUM QUALITY AT THE
 LOWEST POSSIBLE COST. THE STATE ALSO RECOGNIZES THAT THE LOWEST  RESPON-
 SIBLE  BID  FOR PUBLIC CONTRACTS MAY NOT SIMPLY BE A MONETARY AMOUNT BUT
 SHOULD ALSO INCORPORATE QUANTIFIABLE FISCAL BENEFITS TO  THE  STATE  AND
 THAT QUANTIFIABLE FISCAL BENEFITS TO THE STATE SHOULD BE SUBTRACTED FROM
 THE ACTUAL BID AMOUNT TO DETERMINE THE LOWEST RESPONSIBLE BIDDER.
   2.  THE COMPTROLLER SHALL ESTABLISH, IN CONSULTATION WITH THE HEADS OF
 STATE AGENCIES, A METHOD FOR DETERMINING THE LOWEST  RESPONSIBLE  BIDDER
 WHEN  NEGOTIATING  STATE  CONTRACTS  THAT WOULD INCORPORATE QUANTIFIABLE
 FISCAL BENEFITS INCLUDING, BUT NOT BE LIMITED TO, CONSIDERATION OF WHERE
 SUB-CONTRACTORS USED BY CONTRACTORS TO  FULFILL  A  STATE  CONTRACT  ARE
 LOCATED,  HOW  MANY  JOBS  IN  THE STATE, IF ANY, WILL BE CREATED BY THE
 AWARDING OF SUCH A CONTRACT, AND THE ESTIMATED TAX REVENUE AND ANCILLARY
 ECONOMIC ACTIVITY THAT WOULD BE  GENERATED  IN  THE  STATE  THROUGH  THE
 AWARDING  OF SUCH CONTRACTS AND SUBSEQUENT SUBCONTRACTS. THE COMPTROLLER
 SHALL PROMULGATE RULES AND REGULATIONS TO ENSURE THE INCLUSION OF  THESE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06601-01-3
              

 A. 2511                             2
 
 CONSIDERATIONS  IN  DETERMINING  THE LOWEST RESPONSIBLE BIDDER FOR STATE
 CONTRACTS.
   § 2. The state finance law is amended by adding a new section 136-e to
 read as follows:
   §  136-E.  IN-STATE  CONTRACTOR  PREFERENCE. NOTWITHSTANDING ANY OTHER
 PROVISION OF LAW TO THE CONTRARY, ANY CONTRACT OR CONTRACTS MADE BY  THE
 STATE WHICH REQUIRES THE SUBMISSION OF A BID SHALL, WHEN DETERMINING THE
 LOW  BID,  REDUCE  ANY  BID  SUBMITTED BY AN IN-STATE CONTRACTOR BY FIVE
 PERCENT.  FOR THE PURPOSES OF THIS  SECTION,  AN  "IN-STATE  CONTRACTOR"
 SHALL BE A CONTRACTOR WHICH:
   1. IS LOCATED WITHIN THE STATE;
   2. HIRES A MAJORITY OF EMPLOYEES WHO ARE RESIDENTS OF THE STATE;
   3.  HIRES  SUBCONTRACTORS  WHO  ARE LOCATED WITHIN THE STATE AND WHOSE
 EMPLOYEES ARE RESIDENTS OF THE STATE; AND
   4. CREATES TAX REVENUE AND ANCILLARY ECONOMIC ACTIVITY FOR THE STATE.
   § 3. This act shall take effect immediately.