New York Laws
Article 9 - Contracts
139-I - Obligations With Respect to Procurement Contracts With New York State and Foreign Business Enterprises.

(a) "Foreign business enterprise" shall mean a business enterprise,
including a sole proprietorship, partnership or corporation, which
offers for sale, lease or other form of exchange, goods sought by the
state agency or department and which are substantially produced outside
New York state, or services sought by the state agency or department and
which are substantially performed outside New York state.
(b) "New York state business enterprise" shall mean a business
enterprise, including a sole proprietorship, partnership, or
corporation, which offers for sale or lease or other form of exchange,
goods which are sought by the state agency or department and which are
substantially manufactured, produced or assembled in New York state, or
services which are sought by the state agency or department and which
are substantially performed within New York state.
(c) "New York resident" shall mean a natural person who maintains a
fixed, permanent and principal home located within New York state and to
which such person, whenever temporarily located, always intends to
return.
(d) "Procurement contract" shall have the same meaning as that set
forth in subdivision two of section one hundred forty-one of the
economic development law.
2. In every state agency and department, the chief executive officer
shall:
(a) notify the commissioner of economic development of the award of a
procurement contract for the purchase of goods or services from a
foreign business enterprise in an amount equal to or greater than one
million dollars simultaneously with notifying the successful bidder
therefor. No state agency or department shall thereafter enter into a
procurement contract for said goods or services until at least fifteen
days has elapsed, except for procurement contracts awarded on an
emergency or critical basis, or where the commissioner of economic
development waives the provisions of this sentence. The notification to
the commissioner of economic development shall include the name, address
and telephone and facsimile number of the foreign business enterprise, a
brief description of the goods or services to be obtained pursuant to
the proposed procurement contract, the amount of the proposed
procurement contract, the term of the proposed procurement contract, and
the name of the individual at the foreign business enterprise or acting
on behalf of the same who is principally responsible for the proposed
procurement contract. Such notification shall be used by the
commissioner of economic development solely to provide notification to
New York state business enterprises of opportunities to participate as
subcontractors and suppliers on such procurement contracts, to promote
and encourage the location and development of new business in the state,
to assist New York state business enterprises in obtaining offset
credits from foreign countries, and to otherwise investigate, study and
undertake means of promoting and encouraging the prosperous development
and protection of the legitimate interest and welfare of New York state
business enterprises, industry and commerce.
(b) include in all bid documents provided to potential bidders a
statement that information concerning the availability of New York state
subcontractors and suppliers is available from the New York state
department of economic development, which shall include the directory of
certified minority and women-owned businesses, and it is the policy of
New York state to encourage the use of New York state subcontractors and

suppliers, and to promote the participation of minority and women-owned
businesses, where possible, in the procurement of goods and services.
(c) provide annually, on or before the first business day of June of
each year, to the department of economic development information
pertaining to procurement contracts entered into in an amount equal to
or greater than one hundred thousand dollars by such agency or
department during the previous year. Such information shall include the
subject matter and value of such contracts, designation of each
contractor as a New York state business enterprise or a foreign business
enterprise, the process used to select such contractors, as well as the
status of such contracts; and
(d) adopt policies to promote the participation by New York state
business enterprises and New York state residents in procurement
contracts, with the cooperation of the department of economic
development and the community services division of the department of
labor including, but not limited to, providing through cooperative
efforts with contractors for the notification of New York state business
enterprises of opportunities to participate as subcontractors and
suppliers on procurement contracts in an amount estimated to be equal to
or greater than one million dollars and for the notification of New York
state residents of employment opportunities arising in New York state
out of procurement contracts in an amount estimated to be equal to or
greater than one million dollars; and promulgating procedures which will
assure compliance by contractors with such notification. Once awarded
the contract, such contractors shall document their efforts to encourage
the participation of New York state business enterprises as suppliers
and subcontractors on procurement contracts equal to or greater than one
million dollars. Documented efforts by a successful contractor shall
consist of and be limited to showing that such contractor has (a)
solicited bids, in a timely and adequate manner, from New York state
business enterprises including certified minority and women-owned
business, or (b) contacted the New York state department of economic
development to obtain listings of New York state business enterprises,
or (c) placed notices for subcontractors and suppliers in newspapers,
journals and other trade publications distributed in New York state, or
(d) participated in bidder outreach conferences. If the contractor
determines that New York state business enterprises are not available to
participate on the contract as subcontractors or suppliers, the
contractor shall provide a statement indicating the method by which such
determination was made. If the contractor does not intend to use
subcontractors on the contract, the contractor shall provide a statement
verifying such intent. Such contractors shall also provide notification
to New York state residents of employment opportunities through listing
any such positions with the community services division, or providing
for such notification in such manner as is consistent with existing
collective bargaining contracts or agreements. On or before the
effective date of this section, each state agency or department shall
submit such policies to the division of the budget and copies thereof to
the department of audit and control, the department of economic
development, the senate finance committee and the assembly ways and
means committee.
(e) include in each set of documents soliciting bids on procurement
contracts to let by the state agency or department a statement notifying
potential bidders located in foreign countries that the state agency or
department may assign or otherwise transfer offset credits created by
such procurement contract to third parties located in New York state;
provide for the assignment or other form of transfer of offset credits
created by such procurement contracts, directly or indirectly, to third

parties located in New York state, in accordance with the written
directions of the commissioner of economic development; and provide for
the state agency or department to otherwise cooperate with the
department of economic development in efforts to get foreign countries
to recognize offset credits assigned or transferred to third parties
located in New York state created by such procurement contracts.
(f) promulgate procedures which will assure compliance with the
federal equal employment opportunity act of 1972 (P.L.92-261), as
amended, by contractors of the state agency or department.