Establishes state procurement goals for New York state products throughout state agencies and private entities performing state contracts; provides that every year after enactment, a certain percentage of products purchased by state agencies will be New York state products, with such percentage threshold increasing each year up until five years.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3502
SPONSOR: Jones TITLE OF BILL:
An act to amend the state finance law, in relation to establishing state
procurement goals for New York state products throughout state agencies
and private entities performing state contracts
PURPOSE:
This legislation seeks to set a goal of requiring twenty of all products
purchased by a state agency, or private entity performing state
contracts to be New York state products.
SUMMARY OF PROVISIONS:
Section 1 adds a new section 163-c of the state finance law to set a
goal that twenty percent of all products purchased by state agencies, or
private entities performing state contracts be New York State products.
These products must be used for the sole use of New York state.
To meet this goal a state agency for the purpose of products being
awarded to the lowest responsible bidder, an otherwise qualified bidder
who will fulfill the contract through the use of New York state products
may be given preference over other bidders, provided that the cost is
not more than 10% greater than the cost for non-New York state products.
ESDC would be allowed to grant waivers for any state agency that can
prove it cannot meet the goals of this act, while the originating state
agency will have waiver responsibilities over private entities engaged
in doing business for that agency.
Section 2 is the effective date.
JUSTIFICATION:
This legislation seeks to support and grow New York state businesses by
setting a goal of twenty percent of products purchased by a state agen-
cy, or private entity performing on a state contract. This realistic and
goal driven threshold is meant to help stimulate the economy and to help
diversify the types of products being manufactured and produced in New
York. Enactment of this legislation will stimulate increased production
of materials and products and create both new business and jobs.
LEGISLATIVE HISTORY:
11/17/21 referred to governmental operations
01/05/22 referred to governmental operations
05/02/22 amend and recommit to governmental operations
05/02/22 print number 8433a
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
The act shall take effect thirty days after it shall have become law.
STATE OF NEW YORK
________________________________________________________________________
3502
2025-2026 Regular Sessions
IN ASSEMBLY
January 28, 2025
___________
Introduced by M. of A. JONES -- read once and referred to the Committee
on Governmental Operations
AN ACT to amend the state finance law, in relation to establishing state
procurement goals for New York state products throughout state agen-
cies and private entities performing state contracts
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The state finance law is amended by adding a new section
2 163-e to read as follows:
3 § 163-e. Procurement goals for New York state products in state agen-
4 cies. 1. For the purposes of this section, the following terms shall
5 have the following meanings:
6 (a) "State agency" shall mean any department, agency, board, public
7 benefit corporation, public authority or commission.
8 (b) "New York state product" shall mean an item that is at least
9 fifty-one percent manufactured or produced in any way in this state.
10 2. (a) In order to create, strengthen, and expand local economies
11 throughout New York, it shall be the goal of this state that in the
12 first and second full year after the effective date of this
13 section, at least fifteen percent of all products purchased by a state
14 agency shall be New York state products; in the third full year after
15 the effective date of this section, at least twenty percent of all
16 products purchased by a state agency shall be New York state products;
17 and in the fourth full year after the effective date of this section and
18 thereafter, at least twenty-five percent of all products purchased by a
19 state agency shall be New York state products.
20 (b) To meet the goals set forth in this section, when a state agency
21 contract for the purchase of products is to be awarded to the lowest
22 responsible bidder, an otherwise qualified bidder who will fulfill the
23 contract through the use of New York state products may be given prefer-
24 ence over other bidders, provided that the cost included in the bid of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06724-01-5
A. 3502 2
1 New York state products is not more than ten percent greater than the
2 cost included in a bid that is not for New York state products.
3 3. (a) The provisions of this section shall not apply if the head of
4 the contracting state agency purchasing products, in their sole
5 discretion, determines that:
6 (i) purchasing New York state products pursuant to the provisions of
7 this section would be against the public interest;
8 (ii) purchasing New York state products would increase the cost of the
9 contract by an unreasonable amount;
10 (iii) New York state products cannot be obtained in sufficient and
11 reasonable available quantities and of satisfactory quality to meet the
12 contracting state agency's requirements; or
13 (iv) purchasing products manufactured or produced outside of the
14 state, or in facilities inside or outside of the state comprising less
15 than fifty-one percent of materials produced in the state, is necessary
16 to avoid a delay in the delivery of products.
17 (b) For private entities performing state contracts, the state agency
18 overseeing the performance of such contract shall promulgate rules and
19 regulations to allow for private entities to be granted a waiver from
20 the requirements of this section if a private entity can prove that is
21 not able to meet the thresholds set forth in this section.
22 4. Any product procured in accordance with this section shall be for
23 the sole use of the state of New York.
24 § 2. This act shall take effect on the thirtieth day after it shall
25 have become a law.
