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A05510 Summary:

BILL NOA05510
 
SAME ASNo Same As
 
SPONSORBrindisi
 
COSPNSRLupardo
 
MLTSPNSR
 
Amd §§165 & 163, rpld & add §146, St Fin L; rpld §2603-a, add §2877-a, Pub Auth L; amd §38, Hway L; amd §103, Gen Muni L; amd §8, Pub Bldg L; amd §210-B, Tax L
 
Relates to requiring state agencies to give preference to New York companies when contracting for goods and services; relates to requiring the use of New York made iron, steel and manufactured products in certain government contracts; relates to creating a tax credit for New York state businesses that source materials and supplies manufactured by other New York state businesses.
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A05510 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5510
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 9, 2017
                                       ___________
 
        Introduced by M. of A. BRINDISI -- read once and referred to the Commit-
          tee on Governmental Operations
 
        AN  ACT  to  amend the state finance law, in relation to requiring state
          agencies  to  give  preference  to  food  products,  commodities,  and
          services  from  New York state; to amend the state finance law, public
          authorities law, the highway law, the general municipal law,  and  the
          public  buildings  law,  in  relation to requiring the use of New York
          made iron, steel  and  manufactured  products  in  certain  government
          contracts;  to  amend the tax law in relation to creating a tax credit
          for New York state businesses that source materials and supplies manu-
          factured by other New York state businesses;  and  to  repeal  certain
          provisions  of  the  public  authorities law and the state finance law
          relating thereto
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Short title. This act shall be known as the "Buy New York
     2  Act".
     3    § 2. Paragraph a of subdivision 4 of section 165 of the state  finance
     4  law,  as  amended by chapter 533 of the laws of 2013, is amended to read
     5  as follows:
     6    a. Except as otherwise provided  in  this  subdivision,  when  letting
     7  contracts  for the purchase of food products on behalf of facilities and
     8  institutions of the state, solicitation specifications of the office  of
     9  general  services  and  any  other  agency, department, office, board or
    10  commission [may] shall require provisions that mandate that all or  some
    11  of  the  required  food products are grown, produced or harvested in New
    12  York state, or that any processing of such food products take  place  in
    13  facilities  located  within New York state, provided that such contracts
    14  for food products are priced competitively.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06591-01-7

        A. 5510                             2
 
     1    § 3. Subparagraph (ii) of paragraph a of subdivision 3 of section  163
     2  of the state finance law, as added by chapter 83 of the laws of 1995, is
     3  amended to read as follows:
     4    (ii)  Commodities  contracts  shall  be awarded on the basis of lowest
     5  price to a responsive and responsible offerer, with preference given  to
     6  commodity  contracts  from  New  York  companies,  if such contracts are
     7  priced competitively; or, in the case of multiple awards, in  accordance
     8  with paragraph c of subdivision ten of this section.
     9    §  4. Paragraph d of subdivision 4 of section 163 of the state finance
    10  law, as added by chapter 83 of the laws of 1995, is amended to  read  as
    11  follows:
    12    d.  Service contracts shall be awarded on the basis of best value to a
    13  responsive and responsible offerer, with  preference  given  to  service
    14  contracts from New York companies, if such contracts are priced competi-
    15  tively; or, in the case of multiple awards, in accordance with paragraph
    16  c of subdivision ten of this section.
    17    §  5.  Section  146  of  the  state  finance law is REPEALED and a new
    18  section 146 is added to read as follows:
    19    § 146. New York materials. 1. Use of New York materials. (a)  Notwith-
    20  standing any other provision of law, each contract for the construction,
    21  reconstruction, alteration or improvement of a public building of public
    22  works  made  by a public agency shall contain a provision that the iron,
    23  steel, and manufactured products used or supplied in the performance  of
    24  the  contract  or  any  subcontract thereto and permanently incorporated
    25  into the public building or public works shall be  manufactured  in  New
    26  York, provided such contract is priced competitively.
    27    (b)  For the purposes of section one hundred sixty-three of this chap-
    28  ter, no bidder shall be deemed to be the lowest responsible and reliable
    29  bidder and no bid shall be deemed the best value unless the bid  offered
    30  by  such bidder will comply with the contract term required by paragraph
    31  (a) of this subdivision.
    32    (c) The provisions of paragraph (a)  of  this  subdivision  shall  not
    33  apply  in any case or category of cases in which the executive head of a
    34  public agency finds:
    35    (i) that the application of this section would  be  inconsistent  with
    36  the public interest;
    37    (ii)  that such materials and products are not produced in New York in
    38  sufficient and reasonably available quantities  and  of  a  satisfactory
    39  quality; or
    40    (iii)  that  inclusion  of New York material will increase the cost of
    41  the overall project contract by more than twenty-five percent.
    42    (d) If the executive receives a request for a waiver  under  paragraph
    43  (c)  of  this  subdivision, the executive shall provide notice of and an
    44  opportunity for public comment on  the  request  at  least  thirty  days
    45  before making a finding based on the request.
    46    (e) A notice provided under paragraph (d) of this subdivision shall:
    47    (i)  summarize  the  information available to the executive concerning
    48  the request, including whether the request is being made under  subpara-
    49  graph (i), (ii) or (iii) of paragraph (c) of this subdivision;
    50    (ii) be posted prominently on the official public internet web site of
    51  the agency; and
    52    (iii)  be  provided  by electronic means to any person, firm or corpo-
    53  ration that has made a written or electronic request to the public agen-
    54  cy for notice of waiver actions by the executive within five  (5)  years
    55  prior to the date of notice.

        A. 5510                             3

     1    (f)  If  the  executive  issues  a  waiver under paragraph (c) of this
     2  subdivision, the executive shall publish  in  the  same  manner  as  the
     3  original notice a detailed justification for the waiver that:
     4    (i) addresses the public comments received under paragraph (d) of this
     5  subdivision; and
     6    (ii) is published before the waiver takes effect.
     7    (g)  If  it  has been determined by a court or federal or state agency
     8  that any person intentionally:
     9    (i) affixed a label bearing a "Made in New York" inscription,  or  any
    10  inscription  with  the  same meaning, to any iron, steel or manufactured
    11  product used in projects to which  this  section  applies,  sold  in  or
    12  shipped to New York that was not made in New York; or
    13    (ii)  represented that any iron, steel or manufactured product used in
    14  projects to which this section applies that was not produced in New York
    15  , was produced in New York; then that  person  shall  be  ineligible  to
    16  receive  any  contract  or  subcontract  with this state pursuant to the
    17  debarment or suspension provisions provided under  section  one  hundred
    18  thirty-nine-a of this article.
    19    (h)  This  section  shall  be  applied in a manner consistent with the
    20  state's  obligations  under  any  applicable  international   agreements
    21  pertaining to government procurement.
    22    2.  Definitions. For the purposes of this section, the following words
    23  shall have the following meanings unless specified otherwise:
    24    (a) "Executive" means the executive head of a public agency subject to
    25  this section;
    26    (b) "Public agency" means  a  governmental  entity  as  that  term  is
    27  defined in section one hundred thirty-nine-j of this article;
    28    (c)  "Manufactured  in  New York" means: (i) in the case of an iron or
    29  steel product all manufacturing must take place in New  York,  from  the
    30  initial melting stage through the application of coatings, except metal-
    31  lurgical processes involving the refinement of steel additives; and
    32    (ii)  in the case of a manufactured product, a product will be consid-
    33  ered manufactured in New York if:
    34    (A) all of its manufacturing processes take place in New York, and
    35    (B) more than sixty percent of  the  components  of  the  manufactured
    36  good,  by  cost,  are  of  New  York origin. If, under the terms of this
    37  subparagraph, a component is determined to be of New  York  origin,  its
    38  entire  cost  may be used in calculating the cost of New York content of
    39  an end product.
    40    (d) "New York" means the state of New York and includes all  territory
    41  subject to the jurisdiction of New York state.
    42    §  6.  Section  2603-a of the public authorities law is REPEALED and a
    43  new section 2877-a is added to read as follows:
    44    § 2877-a. New York materials.  1.  Use  of  New  York  materials.  (a)
    45  Notwithstanding  any  other  provision  of  law,  each  contract for the
    46  construction, reconstruction, alteration  or  improvement  of  a  public
    47  building  of  public  works  made  by  a  public  agency shall contain a
    48  provision that the  iron,  steel,  and  manufactured  products  used  or
    49  supplied  in  the performance of the contract or any subcontract thereto
    50  and permanently incorporated into the public building  or  public  works
    51  shall  be  manufactured  in  New  York, provided such contract is priced
    52  competitively.
    53    (b) For the purposes of section one hundred sixty-three of this  chap-
    54  ter, no bidder shall be deemed to be the lowest responsible and reliable
    55  bidder  and no bid shall be deemed the best value unless the bid offered

        A. 5510                             4

     1  by such bidder will comply with the contract term required by  paragraph
     2  (a) of this subdivision.
     3    (c)  The  provisions  of  paragraph  (a) of this subdivision shall not
     4  apply in any case or category of cases in which the executive head of  a
     5  public agency finds:
     6    (i)  that  the  application of this section would be inconsistent with
     7  the public interest;
     8    (ii) that such materials and products are not produced in New York  in
     9  sufficient  and  reasonably  available  quantities and of a satisfactory
    10  quality; or
    11    (iii) that inclusion of New York material will increase  the  cost  of
    12  the overall project contract by more than twenty-five percent.
    13    (d)  If  the executive receives a request for a waiver under paragraph
    14  (c) of this subdivision, the executive shall provide notice  of  and  an
    15  opportunity  for  public  comment  on  the  request at least thirty days
    16  before making a finding based on the request.
    17    (e) A notice provided under paragraph (d) of this subdivision shall:
    18    (i) summarize the information available to  the  executive  concerning
    19  the  request, including whether the request is being made under subpara-
    20  graph (i), (ii) or (iii) of paragraph (c) of this subdivision;
    21    (ii) be posted prominently on the official public internet web site of
    22  the agency; and
    23    (iii) be provided by electronic means to any person,  firm  or  corpo-
    24  ration that has made a written or electronic request to the public agen-
    25  cy  for  notice of waiver actions by the executive within five (5) years
    26  prior to the date of notice.
    27    (f) If the executive issues a  waiver  under  paragraph  (c)  of  this
    28  subdivision,  the  executive  shall  publish  in  the same manner as the
    29  original notice a detailed justification for the waiver that:
    30    (i) addresses the public comments received under paragraph (d) of this
    31  subdivision; and
    32    (ii) is published before the waiver takes effect.
    33    (g) If it has been determined by a court or federal  or  state  agency
    34  that any person intentionally:
    35    (i)  affixed  a label bearing a "Made in New York" inscription, or any
    36  inscription with the same meaning, to any iron,  steel  or  manufactured
    37  product  used  in  projects  to  which  this section applies, sold in or
    38  shipped to New York that was not made in New York; or
    39    (ii) represented that any iron, steel or manufactured product used  in
    40  projects  to  which  this  section  applies that was not produced in New
    41  York, was produced in New York; then that person shall be ineligible  to
    42  receive  any  contract  or  subcontract  with this state pursuant to the
    43  debarment or suspension provisions provided under  section  one  hundred
    44  thirty-nine-a of the state finance law.
    45    (h)  This  section  shall  be  applied in a manner consistent with the
    46  state's  obligations  under  any  applicable  international   agreements
    47  pertaining to government procurement.
    48    2.  Definitions. For the purposes of this section, the following words
    49  shall have the following meanings unless specified otherwise:
    50    (a) "Executive" means the executive head of a public agency subject to
    51  this section;
    52    (b) "Public agency" means  a  governmental  entity  as  that  term  is
    53  defined in section one hundred thirty-nine-j of the state finance law;
    54    (c)  "Manufactured  in  New York" means: (i) in the case of an iron or
    55  steel product all manufacturing must take place in New  York,  from  the

        A. 5510                             5
 
     1  initial melting stage through the application of coatings, except metal-
     2  lurgical processes involving the refinement of steel additives; and
     3    (ii)  in the case of a manufactured product, a product will be consid-
     4  ered manufactured in New York if:
     5    (A) all of its manufacturing processes take place in New York, and
     6    (B) more than sixty percent of  the  components  of  the  manufactured
     7  good,  by  cost,  are  of  New  York origin. If, under the terms of this
     8  subparagraph, a component is determined to be of New  York  origin,  its
     9  entire  cost  may be used in calculating the cost of New York content of
    10  an end product.
    11    (d) "New York" means the state of New York and includes all  territory
    12  subject to the jurisdiction of New York state.
    13    § 7. Section 38 of the highway law is amended by adding a new subdivi-
    14  sion 10 to read as follows:
    15    10. Use of New York materials. (a) Notwithstanding any other provision
    16  of  law,  each contract for the construction, reconstruction, alteration
    17  or improvement of a highway or other public works made by a public agen-
    18  cy shall contain a provision that  the  iron,  steel,  and  manufactured
    19  products  used  or  supplied  in  the performance of the contract or any
    20  subcontract thereto and permanently incorporated into the public  build-
    21  ing  or  public  works  shall be manufactured in New York, provided that
    22  such contracts are priced competitively.
    23    (b) No bidder shall be deemed to be the lowest responsible  and  reli-
    24  able  bidder  and  no  bid shall be deemed the best value unless the bid
    25  offered by such bidder will comply with the contract  term  required  by
    26  paragraph (a) of this subdivision.
    27    (c)  The  provisions  of  paragraph  (a) of this subdivision shall not
    28  apply in any case or category of cases in which the executive head of  a
    29  public agency finds:
    30    (i)  that  the  application  of this subdivision would be inconsistent
    31  with the public interest;
    32    (ii) that such materials and products are not produced in New York  in
    33  sufficient  and  reasonably  available  quantities and of a satisfactory
    34  quality; or
    35    (iii) that inclusion of New York material will increase  the  cost  of
    36  the overall project contract by more than twenty-five percent.
    37    (d)  If  the executive receives a request for a waiver under paragraph
    38  (c) of this subdivision, the executive shall provide notice  of  and  an
    39  opportunity  for  public  comment on the request of at least thirty days
    40  before making a finding based on the request.
    41    (e) A notice provided under paragraph (d) of this subdivision shall:
    42    (i) summarize the information available to  the  executive  concerning
    43  the  request, including whether the request is being made under subpara-
    44  graph (i), (ii) or (iii) of paragraph (c) of this subdivision;
    45    (ii) be posted prominently on the official public internet web site of
    46  the agency; and
    47    (iii) be provided by electronic means to any person,  firm  or  corpo-
    48  ration that has made a written or electronic request to the public agen-
    49  cy  for  notice of waiver actions by the executive within five (5) years
    50  prior to the date of notice.
    51    (f) If the executive issues a  waiver  under  paragraph  (c)  of  this
    52  subdivision,  the  executive  shall  publish  in  the same manner as the
    53  original notice a detailed justification for the waiver that:
    54    (i) addresses the public comments received under paragraph (d) of this
    55  subdivision; and
    56    (ii) is published before the waiver takes effect.

        A. 5510                             6
 
     1    (g) If it has been determined by a court or federal  or  state  agency
     2  that any person intentionally:
     3    (i)  affixed  a label bearing a "Made in New York" inscription, or any
     4  inscription with the same meaning, to any iron,  steel  or  manufactured
     5  product  used  in projects to which this subdivision applies, sold in or
     6  shipped to New York that was not made in New York; or
     7    (ii) represented that any iron, steel, or manufactured product used in
     8  projects to which this section applies that  was  not  produced  in  New
     9  York,  was produced in New York; then that person shall be ineligible to
    10  receive any contract or subcontract with  this  state  pursuant  to  the
    11  debarment  or  suspension  provisions provided under section one hundred
    12  thirty-nine-a of the state finance law.
    13    (h) This subdivision shall be applied in a manner consistent with  the
    14  state's   obligations  under  any  applicable  international  agreements
    15  pertaining to government procurement.
    16    (i) Definitions. For the purpose of this  subdivision,  the  following
    17  words shall have the following meanings unless specified otherwise:
    18    (i) "Executive" means the executive head of a public agency subject to
    19  this subdivision;
    20    (ii)  "Public  agency"  means  a  governmental  entity as that term is
    21  defined in section one hundred thirty-nine-j of the state finance law;
    22    (iii) "Manufactured in New York" means: (A) in the case of an iron  or
    23  steel  product  all  manufacturing must take place in New York, from the
    24  initial melting stage through the application of coatings, except metal-
    25  lurgical processes involving the refinement of steel additives; and
    26    (B) in the case of a manufactured product, a product will  be  consid-
    27  ered manufactured in New York if:
    28    (1) all of its manufacturing processes take place in New York, and
    29    (2)  more  than  sixty  percent  of the components of the manufactured
    30  good, by cost, are of New York origin. If, under the terms of this part,
    31  a component is determined to be of New York origin, its entire cost  may
    32  be used in calculating the cost of New York content of an end product.
    33    (iv) "New York" means the state of New York and includes all territory
    34  subject to the jurisdiction of New York state.
    35    §  8.  Section 103 of the general municipal law is amended by adding a
    36  new subdivision 17 to read as follows:
    37    17. Use of New York materials. (a) Notwithstanding any other provision
    38  of law, each contract for the construction,  reconstruction,  alteration
    39  or improvement of a highway or other public works made by a public agen-
    40  cy  shall  contain  a  provision  that the iron, steel, and manufactured
    41  products used or supplied in the performance  of  the  contract  or  any
    42  subcontract  thereto and permanently incorporated into the public build-
    43  ing or public works shall be manufactured in  New  York,  provided  that
    44  such contracts are priced competitively.
    45    (b)  No  bidder shall be deemed to be the lowest responsible and reli-
    46  able bidder and no bid shall be deemed the best  value  unless  the  bid
    47  offered  by  such  bidder will comply with the contract term required by
    48  paragraph (a) of this subdivision.
    49    (c) The provisions of paragraph (a)  of  this  subdivision  shall  not
    50  apply  in any case or category of cases in which the executive head of a
    51  public agency finds:
    52    (i) that the application of this  subdivision  would  be  inconsistent
    53  with the public interest;
    54    (ii)  that such materials and products are not produced in New York in
    55  sufficient and reasonably available quantities  and  of  a  satisfactory
    56  quality; or

        A. 5510                             7
 
     1    (iii)  that  inclusion  of New York material will increase the cost of
     2  the overall project contract by more than twenty-five percent.
     3    (d)  If  the executive receives a request for a waiver under paragraph
     4  (c) of this subdivision, the executive shall provide notice  of  and  an
     5  opportunity  for  public  comment on the request of at least thirty days
     6  before making a finding based on the request.
     7    (e) A notice provided under paragraph (d) of this subdivision shall:
     8    (i) summarize the information available to  the  executive  concerning
     9  the  request, including whether the request is being made under subpara-
    10  graph (i), (ii) or (iii) of paragraph (c) of this subdivision;
    11    (ii) be posted prominently on the official public internet web site of
    12  the agency; and
    13    (iii) be provided by electronic means to any person,  firm  or  corpo-
    14  ration that has made a written or electronic request to the public agen-
    15  cy  for  notice of waiver actions by the executive within five (5) years
    16  prior to the date of notice.
    17    (f) If the executive issues a  waiver  under  paragraph  (c)  of  this
    18  subdivision,  the  executive  shall  publish  in  the same manner as the
    19  original notice a detailed justification for the waiver that:
    20    (i) addresses the public comments received under paragraph (d) of this
    21  subdivision; and
    22    (ii) is published before the waiver takes effect.
    23    (g) If it has been determined by a court or federal  or  state  agency
    24  that any person intentionally:
    25    (i)  affixed  a label bearing a "Made in New York" inscription, or any
    26  inscription with the same meaning, to any iron,  steel  or  manufactured
    27  product  used  in projects to which this subdivision applies, sold in or
    28  shipped to New York that was not made in New York; or
    29    (ii) represented that any iron, steel, or manufactured product used in
    30  projects to which this section applies that  was  not  produced  in  New
    31  York,  was produced in New York; then that person shall be ineligible to
    32  receive any contract or subcontract with  this  state  pursuant  to  the
    33  debarment  or  suspension  provisions provided under section one hundred
    34  thirty-nine-a of the state finance law.
    35    (h) This subdivision shall be applied in a manner consistent with  the
    36  state's   obligations  under  any  applicable  international  agreements
    37  pertaining to government procurement.
    38    (i) Definitions. For the purpose of this  subdivision,  the  following
    39  words shall have the following meanings unless specified otherwise:
    40    (i) "Executive" means the executive head of a public agency subject to
    41  this subdivision;
    42    (ii)  "Public  agency"  means  a  governmental  entity as that term is
    43  defined in section one hundred thirty-nine-j of the state finance law;
    44    (iii) "Manufactured in New York" means: (A) in the case of an iron  or
    45  steel  product  all  manufacturing must take place in New York, from the
    46  initial melting stage through the application of coatings, except metal-
    47  lurgical processes involving the refinement of steel additives; and
    48    (B) in the case of a manufactured product, a product will  be  consid-
    49  ered manufactured in New York if:
    50    (1) all of its manufacturing processes take place in New York, and
    51    (2)  more  than  sixty  percent  of the components of the manufactured
    52  good, by cost, are of New York origin. If, under the terms of this part,
    53  a component is determined to be of New York origin, its entire cost  may
    54  be used in calculating the cost of New York content of an end product.
    55    (iv) "New York" means the state of New York and includes all territory
    56  subject to the jurisdiction of New York state.

        A. 5510                             8

     1    §  9. Section 8 of the public buildings law is amended by adding a new
     2  subdivision 8 to read as follows:
     3    8.  Use of New York materials. (a) Notwithstanding any other provision
     4  of law, each contract for the construction,  reconstruction,  alteration
     5  or improvement of a highway or other public works made by a public agen-
     6  cy  shall  contain  a  provision  that the iron, steel, and manufactured
     7  products used or supplied in the performance  of  the  contract  or  any
     8  subcontract  thereto and permanently incorporated into the public build-
     9  ing or public works shall be manufactured in  New  York,  provided  that
    10  such contracts are priced competitively.
    11    (b)  No  bidder shall be deemed to be the lowest responsible and reli-
    12  able bidder and no bid shall be deemed the best  value  unless  the  bid
    13  offered  by  such  bidder will comply with the contract term required by
    14  paragraph (a) of this subdivision.
    15    (c) The provisions of paragraph (a)  of  this  subdivision  shall  not
    16  apply  in any case or category of cases in which the executive head of a
    17  public agency finds:
    18    (i) that the application of this  subdivision  would  be  inconsistent
    19  with the public interest;
    20    (ii)  that such materials and products are not produced in New York in
    21  sufficient and reasonably available quantities  and  of  a  satisfactory
    22  quality; or
    23    (iii)  that  inclusion  of New York material will increase the cost of
    24  the overall project contract by more than twenty-five percent.
    25    (d) If the executive receives a request for a waiver  under  paragraph
    26  (c)  of  this  subdivision, the executive shall provide notice of and an
    27  opportunity for public comment on the request of at  least  thirty  days
    28  before making a finding based on the request.
    29    (e) A notice provided under paragraph (d) of this subdivision shall:
    30    (i)  summarize  the  information available to the executive concerning
    31  the request, including whether the request is being made under  subpara-
    32  graph (i), (ii) or (iii) of paragraph (c) of this subdivision;
    33    (ii) be posted prominently on the official public internet web site of
    34  the agency; and
    35    (iii)  be  provided  by electronic means to any person, firm or corpo-
    36  ration that has made a written or electronic request to the public agen-
    37  cy for notice of waiver actions by the executive within five  (5)  years
    38  prior to the date of notice.
    39    (f)  If  the  executive  issues  a  waiver under paragraph (c) of this
    40  subdivision, the executive shall publish  in  the  same  manner  as  the
    41  original notice a detailed justification for the waiver that:
    42    (i) addresses the public comments received under paragraph (d) of this
    43  subdivision; and
    44    (ii) is published before the waiver takes effect.
    45    (g)  If  it  has been determined by a court or federal or state agency
    46  that any person intentionally:
    47    (i) affixed a label bearing a "Made in New York" inscription,  or  any
    48  inscription  with  the  same meaning, to any iron, steel or manufactured
    49  product used in projects to which this subdivision applies, sold  in  or
    50  shipped to New York that was not made in New York; or
    51    (ii) represented that any iron, steel, or manufactured product used in
    52  projects  to  which  this  section  applies that was not produced in New
    53  York, was produced in New York; then that person shall be ineligible  to
    54  receive  any  contract  or  subcontract  with this state pursuant to the
    55  debarment or suspension provisions provided under  section  one  hundred
    56  thirty-nine-a of the state finance law.

        A. 5510                             9

     1    (h)  This subdivision shall be applied in a manner consistent with the
     2  state's  obligations  under  any  applicable  international   agreements
     3  pertaining to government procurement.
     4    (i)  Definitions.  For  the purpose of this subdivision, the following
     5  words shall have the following meanings unless specified otherwise:
     6    (i) "Executive" means the executive head of a public agency subject to
     7  this subdivision;
     8    (ii) "Public agency" means a  governmental  entity  as  that  term  is
     9  defined in section one hundred thirty-nine-j of the state finance law;
    10    (iii)  "Manufactured in New York" means: (A) in the case of an iron or
    11  steel product all manufacturing must take place in New  York,  from  the
    12  initial melting stage through the application of coatings, except metal-
    13  lurgical processes involving the refinement of steel additives; and
    14    (B)  in  the case of a manufactured product, a product will be consid-
    15  ered manufactured in New York if:
    16    (1) all of its manufacturing processes take place in New York, and
    17    (2) more than sixty percent of  the  components  of  the  manufactured
    18  good, by cost, are of New York origin. If, under the terms of this part,
    19  a  component is determined to be of New York origin, its entire cost may
    20  be used in calculating the cost of New York content of an end product.
    21    (iv) "New York" means the state of New York and includes all territory
    22  subject to the jurisdiction of New York state.
    23    § 10. Section 210-B of the tax law is amended by adding a new subdivi-
    24  sion 49 to read as follows:
    25    49. Qualified products local sourcing credit. (a)  Businesses  subject
    26  to  tax liability under article nine or nine-A of this chapter, purchas-
    27  ing qualified products may claim the qualified products  local  sourcing
    28  tax  credit  against  any  such  liability  at the close of the tax year
    29  provided, however, that the unused portion of  any  tax  credit  claimed
    30  shall not be carried forward and applied in another tax year.
    31    (b)  For  the  purposes of this section the following terms shall have
    32  the following meanings:
    33    (1) "qualified products" shall  mean  any  materials,  components,  or
    34  supplies whether used in the manufacturing process or otherwise that are
    35  produced in New York state by a New York state business;
    36    (2)  "producer"  is  an  individual  (whether  acting  individually or
    37  through a cooperative, corporation, partnership,  business  association,
    38  or  educational  institution) who is a business or manufacturer of goods
    39  in New York state, it shall not however include a wholesaler or distrib-
    40  utor;
    41    (3) "purchaser" is  an  individual  (whether  acting  individually  or
    42  through  a  cooperative, corporation, partnership, business association,
    43  or educational institution) who is a business or manufacturer  of  goods
    44  in New York state, it shall not however include a wholesaler or distrib-
    45  utor;
    46    (4) "net sales" are the total sales of the business subject to tax.
    47    (c)  The  amount  of  the  credit shall be prescribed according to the
    48  following schedule:
    49    (1) twenty percent of net sales are attributed to  qualified  products
    50  the credit shall be one thousand five hundred dollars.
    51    (2)  forty  percent  of net sales are attributed to qualified products
    52  the credit shall be three thousand dollars.
    53    (3) sixty percent of net sales are attributed  to  qualified  products
    54  the credit shall be six thousand dollars.
    55    (4)  eighty  percent of net sales are attributed to qualified products
    56  the credit shall be twelve thousand dollars.

        A. 5510                            10

     1    (5) one hundred percent of  net  sales  are  attributed  to  qualified
     2  products the credit shall be twenty-five thousand dollars.
     3    (d)  (1)  Businesses  claiming  the  qualified products local sourcing
     4  credit shall submit a computer-generated report with  tax  returns  that
     5  claim a tax credit.
     6    (2)  Such  report shall include the name of the producer and the phys-
     7  ical place of the business where the products are produced.
     8    (3) The amount paid by the purchaser to the producer and the amount of
     9  units purchased.
    10    § 11. Severability. If any provisions of this act, or the  application
    11  thereof  to any person or circumstance, is held invalid, such invalidity
    12  shall not affect other provisions or applications of this act which  can
    13  be  given  effect  without the invalid provisions or application, and to
    14  that extent, the provisions of this act are declared to be severable.
    15    § 12. This act shall take effect immediately, provided, however,  that
    16  the  amendments to subparagraph (ii) of paragraph a of subdivision 3 and
    17  paragraph d of subdivision 4 of section 163 of  the  state  finance  law
    18  made  by sections three and four of this act shall not affect the repeal
    19  of such subparagraph and paragraph and shall be deemed  repealed  there-
    20  with.
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