Bill Text: NY S06955 | 2023-2024 | General Assembly | Amended


Bill Title: Provides that certain purchase contracts to purchase food can be awarded to a qualified bidder who fulfills certain values based procurement standards when such bid is not more than 10% higher than the lowest responsible bidder and when the bidder makes publicly available data on where such bidder sources their food items; sets forth the criteria for values based procurement standards to include local economies, environmental sustainability, racial equity, valued workforce, animal welfare, and nutrition.

Spectrum: Moderate Partisan Bill (Democrat 11-3)

Status: (Engrossed) 2024-06-06 - returned to senate [S06955 Detail]

Download: New_York-2023-S06955-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         6955--A

                               2023-2024 Regular Sessions

                    IN SENATE

                                      May 16, 2023
                                       ___________

        Introduced  by  Sens.  HINCHEY, BAILEY, COONEY, HARCKHAM, HOYLMAN-SIGAL,
          KRUEGER, MARTINS, MAY, PALUMBO, PARKER, ROLISON, RYAN,  WEBB  --  read
          twice  and  ordered  printed,  and when printed to be committed to the
          Committee on Procurement and Contracts -- recommitted to the Committee
          on Procurement and Contracts in accordance with Senate Rule 6, sec.  8
          --  committee  discharged,  bill amended, ordered reprinted as amended
          and recommitted to said committee

        AN ACT to amend the general municipal law, in relation to  the  awarding
          of certain purchase contracts to purchase food

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1.  Subdivision 1 of section 103 of the general municipal law,
     2  as amended by chapter 668 of the laws of 2023, is  amended  to  read  as
     3  follows:
     4    1.  (a) Except as otherwise expressly provided by an act of the legis-
     5  lature or by a local law adopted  prior  to  September  first,  nineteen
     6  hundred fifty-three, all contracts for public work involving an expendi-
     7  ture  of  more  than  thirty-five  thousand  dollars  and  all  purchase
     8  contracts involving an expenditure of more than twenty thousand dollars,
     9  shall be awarded by the appropriate officer, board or agency of a  poli-
    10  tical  subdivision  or of any district therein including but not limited
    11  to a  soil  conservation  district  to  the  lowest  responsible  bidder
    12  furnishing  the required security after advertisement for sealed bids in
    13  the manner provided by this section[,]; provided, however, that purchase
    14  contracts (including contracts  for  service  work,  but  excluding  any
    15  purchase  contracts  necessary  for  the  completion  of  a public works
    16  contract pursuant to article eight of the labor law) may be  awarded  on
    17  the  basis  of best value, as defined in section one hundred sixty-three
    18  of the state finance law, to a  responsive  and  responsible  bidder  or
    19  offerer  in  the  manner provided by this section except that in a poli-
    20  tical subdivision other than a city with a  population  of  one  million

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05665-11-4

        S. 6955--A                          2

     1  inhabitants  or  more or any district, board or agency with jurisdiction
     2  exclusively therein the use  of  best  value  for  awarding  a  purchase
     3  contract  or  purchase  contracts must be authorized by local law or, in
     4  the  case of a district corporation, school district or board of cooper-
     5  ative educational services, by rule, regulation or resolution adopted at
     6  a public meeting; and provided, further, that  food  purchase  contracts
     7  (including  contracts  for food service work, but excluding any purchase
     8  contract necessary for the completion of a public works contract  pursu-
     9  ant  to  article  eight of the labor law) may be awarded to an otherwise
    10  qualified bidder who fulfills one or more of the values  based  procure-
    11  ment  standards pursuant to paragraph (c) of this subdivision and may be
    12  given preference over other bidders, provided, however,  that  the  cost
    13  included  in  the bid is not more than ten percent greater than the cost
    14  included in a bid by the lowest responsible bidder.    Provided  further
    15  that  pursuant to paragraph (b) of this subdivision, all bidders on food
    16  purchase contracts shall provide relevant supply chain data in  its  bid
    17  to  the  appropriate officer, board or agency.  The appropriate officer,
    18  board or agency shall make such data publicly available on the entities'
    19  respective websites, excepting data not subject to  disclosure  pursuant
    20  to  article six of the public officers law.  In any case where a respon-
    21  sible bidder's or responsible offerer's gross price is reducible  by  an
    22  allowance for the value of used machinery, equipment, apparatus or tools
    23  to  be  traded  in  by a political subdivision, the gross price shall be
    24  reduced by the amount of such allowance, for the purpose of  determining
    25  the best value.  In cases where two or more responsible bidders furnish-
    26  ing  the required security submit identical bids as to price, such offi-
    27  cer, board or agency may award the contract to any of such bidders. Such
    28  officer, board or agency may, in [his or her or its]  their  discretion,
    29  reject  all bids or offers and readvertise for new bids or offers in the
    30  manner provided by this section. In determining whether a purchase is an
    31  expenditure within the discretionary threshold  amounts  established  by
    32  this  subdivision,  the officer, board or agency of a political subdivi-
    33  sion or of any district therein shall consider the  reasonably  expected
    34  aggregate  amount  of all purchases of the same commodities, services or
    35  technology to be made within the twelve-month period commencing  on  the
    36  date  of  purchase.    Purchases  of commodities, services or technology
    37  shall not be artificially divided for  the  purpose  of  satisfying  the
    38  discretionary  buying  thresholds  established  by  this  subdivision. A
    39  change to or a renewal of a discretionary purchase shall not be  permit-
    40  ted  if the change or renewal would bring the reasonably expected aggre-
    41  gate amount of all purchases of the same commodities, services or  tech-
    42  nology  from the same provider within the twelve-month period commencing
    43  on the date of the first purchase to an amount greater than the  discre-
    44  tionary  buying  threshold amount. For purposes of this section, "sealed
    45  bids" and "sealed offers", as that term applies to  purchase  contracts,
    46  (including  contracts  for  service  work,  but  excluding  any purchase
    47  contracts necessary for the completion of a public works contract pursu-
    48  ant to article eight of the labor law) shall  include  bids  and  offers
    49  submitted  in an electronic format including submission of the statement
    50  of non-collusion required by section one hundred three-d of  this  arti-
    51  cle,  provided  that the governing board of the political subdivision or
    52  district, by resolution, has authorized the receipt of bids  and  offers
    53  in  such  format.  Submission  in  electronic format may, for technology
    54  contracts only, be required as the sole method  for  the  submission  of
    55  bids  and  offers.  Provided  however, the appropriate officer, board or
    56  agency of a city with a population of one million inhabitants  or  more,

        S. 6955--A                          3

     1  or  any  district,  board or agency with jurisdiction exclusively within
     2  such city, may authorize or require bids and offers for any contract  to
     3  be  submitted  in  an electronic format. Bids and offers submitted in an
     4  electronic  format  shall  be transmitted by bidders and offerers to the
     5  receiving device designated by the political  subdivision  or  district.
     6  Any  method used to receive electronic bids and offers shall comply with
     7  article three of the state technology law, and any rules and regulations
     8  promulgated and guidelines developed thereunder and, at a minimum,  must
     9  [(a)]  (i)  document  the time and date of receipt of each bid and offer
    10  received electronically; [(b)] (ii) authenticate  the  identity  of  the
    11  sender;  [(c)] (iii) ensure the security of the information transmitted;
    12  and [(d)] (iv) ensure the confidentiality of the bid or offer until  the
    13  time  and date established for the opening of bids or offers. The timely
    14  submission of an electronic bid or offer in compliance with instructions
    15  provided for such submission in the advertisement  for  bids  or  offers
    16  and/or  the  specifications  shall  be the responsibility solely of each
    17  bidder or offerer or prospective bidder or offerer. No political  subdi-
    18  vision  or  district therein shall incur any liability from delays of or
    19  interruptions in the receiving device designated for the submission  and
    20  receipt of electronic bids and offers.
    21    (b)  (i)  All  supplier data, including supplier data from subcontrac-
    22  tors, shall be submitted to the entity issuing the request for proposals
    23  at the time of bid, to the best of the bidder's ability, and updated  at
    24  point  of  contract  execution. Such data shall also be updated annually
    25  and upon any changes to supplier information. Such data required  pursu-
    26  ant to this paragraph shall include the name and address of each suppli-
    27  er,  distributor,  processor,  and producer involved in the provision of
    28  the products that the bidder will supply.
    29    (ii) The provisions of this paragraph shall apply to all bidders' food
    30  purchase contracts and bid proposals.
    31    (c) For the purposes of this subdivision,  "values  based  procurement
    32  standards" shall mean procurement criteria that is based on:
    33    (i)  local  economies.  Preference shall be given to New York state or
    34  regional suppliers that are sourcing food products  in  which  fifty-one
    35  percent  or  more  of  the  raw  agricultural materials have been grown,
    36  harvested, processed and manufactured with within the  state  or  region
    37  (within  one  hundred miles for produce and two hundred miles for animal
    38  products); and
    39    (ii)  environmental  sustainability.  Preference  shall  be  given  to
    40  producers  that  adopt practices that contribute to improved soil health
    41  and increased carbon sequestration and storage,  and  that  achieve  net
    42  short-term and long-term greenhouse gas benefits. Such practices shall:
    43    (A)  achieve  the reduction or elimination of synthetic pesticides and
    44  fertilizers through the use of precision  agriculture,  integrated  pest
    45  management, and/or advanced nutrient management;
    46    (B) avoid the use of hormones or antibiotics except for treatment of a
    47  sick  animal or for disease control, where disease control is defined as
    48  use where it can be shown that a  particular  disease  or  infection  is
    49  present on the premises where the animal is kept;
    50    (C) preserve and rebuild soil quality through use of soil health prac-
    51  tices,  including  but  not  limited  to  planting cover crops, adopting
    52  no-till and reduced tillage, increasing crop  rotations  and  intercrop-
    53  ping,  and planting perennial crops, to improve the function and resili-
    54  ence of soils;
    55    (D) protect and enhance wildlife habitats and biodiversity;

        S. 6955--A                          4

     1    (E) avoid contributing to water quality impairment  and  deterioration
     2  of local air quality;
     3    (F)  reduce greenhouse gas emissions attributable to livestock through
     4  use of feed management, prescribed grazing, amendments for treatment  of
     5  agricultural waste, and manure management; and
     6    (G) reduce on-farm energy and water consumption, food waste and green-
     7  house gas emissions; or
     8    (iii)  racial equity. Preference shall be given to minority and women-
     9  owned business enterprises, as defined by article fifteen-A of the exec-
    10  utive law, or socially disadvantaged farms. For  the  purposes  of  this
    11  subparagraph,  "socially  disadvantaged" shall mean individuals who have
    12  been subject to discrimination  by  virtue  of  their  membership  of  a
    13  particular  group  which  may  include,  but is not limited to, Black or
    14  African American, American Indian or Alaska Native, Hispanic or  Latino,
    15  and Asian or Pacific Islander; or
    16    (iv)  valued  workforce.  Preference  shall  be given to suppliers who
    17  respect and protect workers' rights, regardless of  immigration  status,
    18  to  organize  a  union, to affiliate with worker centers and alternative
    19  forms of worker representation and to  bargain  collectively  free  from
    20  retaliation  and  interference; as evidenced by agreeing to enter into a
    21  labor peace agreement with a bona fide labor  union;  having  worker-led
    22  workplace  health and safety committees; or being a worker-owned cooper-
    23  ative; or
    24    (v) valued agricultural sector. Preference shall be given to suppliers
    25  who pay farmers a fair price, using United States department of agricul-
    26  ture pricing standards, for the products they supply that  covers  their
    27  actual cost of production; and to suppliers who pay fair remuneration to
    28  farmers for their management and labor; or
    29    (vi)  animal  welfare.  Preference  shall  be  given  to producers who
    30  provide more humane care for farmed animals by  providing  enough  space
    31  and  environmental  enrichments  to  allow  animals  to  carry out their
    32  natural behaviors, using pain control as needed when carrying out  phys-
    33  ical alterations, utilizing responsible, therapeutic antibiotic use, and
    34  requiring  humane  handling and slaughter, as demonstrated by enrollment
    35  in an independent United States  department  of  agriculture  recognized
    36  animal  welfare  certification program with regular, third-party on-farm
    37  audits assessing a producer's compliance with one hundred percent of the
    38  program's welfare standards; or
    39    (vii) nutrition. Preference shall  be  given  to  foods  that  promote
    40  health and well being, comprised of namely whole grains, fresh and mini-
    41  mally-processed  fruits  and vegetables, essential fats (including nuts,
    42  seeds and fish), and whole  plant-based  and  lean  proteins  so  as  to
    43  decrease  sodium,  added  sugars,  artificial  additives, and saturated,
    44  hydrogenated, and trans fats.
    45    § 2. Subdivision 1 of section 103 of the  general  municipal  law,  as
    46  amended  by  section  2  of chapter 2 of the laws of 2012, is amended to
    47  read as follows:
    48    1. (a) Except as otherwise expressly provided by an act of the  legis-
    49  lature  or  by  a  local  law adopted prior to September first, nineteen
    50  hundred fifty-three, all contracts for public work involving an expendi-
    51  ture  of  more  than  thirty-five  thousand  dollars  and  all  purchase
    52  contracts involving an expenditure of more than twenty thousand dollars,
    53  shall  be awarded by the appropriate officer, board or agency of a poli-
    54  tical subdivision or of any district therein including but  not  limited
    55  to  a  soil  conservation  district  to  the  lowest  responsible bidder
    56  furnishing the required security after advertisement for sealed bids  in

        S. 6955--A                          5

     1  the manner provided by this section[,]; provided, however, that purchase
     2  contracts  (including  contracts  for  service  work,  but excluding any
     3  purchase contracts necessary  for  the  completion  of  a  public  works
     4  contract  pursuant  to article eight of the labor law) may be awarded on
     5  the basis of best value, as defined in section one  hundred  sixty-three
     6  of  the  state  finance  law,  to a responsive and responsible bidder or
     7  offerer in the manner provided by this section except that  in  a  poli-
     8  tical  subdivision  other  than  a city with a population of one million
     9  inhabitants or more or any district, board or agency  with  jurisdiction
    10  exclusively  therein  the  use  of  best  value  of  awarding a purchase
    11  contract or purchase contracts must be authorized by local  law  or,  in
    12  the  case of a district corporation, school district or board of cooper-
    13  ative educational services, by rule, regulation or resolution adopted at
    14  a public meeting; and provided, further, that  food  purchase  contracts
    15  (including  contracts  for  service  work,  but  excluding  any purchase
    16  contract necessary for the completion of a public works contract  pursu-
    17  ant  to  article  eight of the labor law) may be awarded to an otherwise
    18  qualified bidder who fulfills one or more of the values  based  procure-
    19  ment  standards pursuant to paragraph (c) of this subdivision and may be
    20  given preference over other bidders, provided, however,  that  the  cost
    21  included  in  the bid is not more than ten percent greater than the cost
    22  included in a bid by the lowest  responsible  bidder.  Provided  further
    23  that  pursuant  to  paragraph (b) of this subdivision, all bidders shall
    24  provide relevant supply chain data in its bid to the  appropriate  offi-
    25  cer,  board  or  agency.  The appropriate officer, board or agency shall
    26  make such data publicly available on the entities' respective  websites,
    27  excepting  data not subject to disclosure pursuant to article six of the
    28  public officers law.  In determining whether a purchase is  an  expendi-
    29  ture  within  the  discretionary  threshold  amounts established by this
    30  subdivision, the officer, board or agency of a political subdivision  or
    31  of any district therein shall consider the reasonably expected aggregate
    32  amount  of all purchases of the same commodities, services or technology
    33  to be made within the twelve-month period  commencing  on  the  date  of
    34  purchase.  Purchases of commodities, services or technology shall not be
    35  artificially divided for the purpose  of  satisfying  the  discretionary
    36  buying  thresholds  established  by  this  subdivision. A change to or a
    37  renewal of a discretionary purchase shall not be permitted if the change
    38  or renewal would bring the reasonably expected aggregate amount  of  all
    39  purchases  of the same commodities, services or technology from the same
    40  provider within the twelve-month period commencing on the  date  of  the
    41  first purchase to an amount greater than the discretionary buying thres-
    42  hold  amount.  In  any  case where a responsible bidder's or responsible
    43  offerer's gross price is reducible by an allowance for the value of used
    44  machinery, equipment, apparatus or tools to be traded in by a  political
    45  subdivision,  the  gross  price  shall  be reduced by the amount of such
    46  allowance, for the purpose of determining the low bid or best value.  In
    47  cases  where  two  or  more  responsible bidders furnishing the required
    48  security submit identical bids as to price, such officer, board or agen-
    49  cy may award the contract to any of such bidders. Such officer, board or
    50  agency may, in [his, her or its] their discretion, reject  all  bids  or
    51  offers  and readvertise for new bids or offers in the manner provided by
    52  this section.
    53    (b) (i) All supplier data, including supplier  data  from  subcontrac-
    54  tors, shall be submitted to the entity issuing the request for proposals
    55  at  the time of bid, to the best of the bidder's ability, and updated at
    56  point of contract execution. Such data shall also  be  updated  annually

        S. 6955--A                          6

     1  and  upon any changes to supplier information. Such data required pursu-
     2  ant to this paragraph shall include the name and address of each suppli-
     3  er, distributor, processor, and producer involved in  the  provision  of
     4  the products that the bidder will supply.
     5    (ii) The provisions of this paragraph shall apply to all bidders' food
     6  purchase contracts and bid proposals.
     7    (c)  For  the  purposes of this subdivision, "values based procurement
     8  standards" shall mean procurement criteria that is based on:
     9    (i) local economies. Preference shall be given to New  York  state  or
    10  regional  suppliers  that  are sourcing food products in which fifty-one
    11  percent or more of the  raw  agricultural  materials  have  been  grown,
    12  harvested,  processed  and  manufactured with within the state or region
    13  (within one hundred miles for produce and two hundred miles  for  animal
    14  products); and
    15    (ii)  environmental  sustainability.  Preference  shall  be  given  to
    16  producers that adopt practices that contribute to improved  soil  health
    17  and  increased  carbon  sequestration  and storage, and that achieve net
    18  short-term and long-term greenhouse gas benefits. Such practices shall:
    19    (A) achieve the reduction or elimination of synthetic  pesticides  and
    20  fertilizers  through  the  use of precision agriculture, integrated pest
    21  management, and/or advanced nutrient management;
    22    (B) avoid the use of hormones or antibiotics except for treatment of a
    23  sick animal or for disease control, where disease control is defined  as
    24  use  where  it  can  be  shown that a particular disease or infection is
    25  present on the premises where the animal is kept;
    26    (C) preserve and rebuild soil quality through use of soil health prac-
    27  tices, including but not  limited  to  planting  cover  crops,  adopting
    28  no-till  and  reduced  tillage, increasing crop rotations and intercrop-
    29  ping, and planting perennial crops, to improve the function and  resili-
    30  ence of soils;
    31    (D) protect and enhance wildlife habitats and biodiversity;
    32    (E)  avoid  contributing to water quality impairment and deterioration
    33  of local air quality;
    34    (F) reduce greenhouse gas emissions attributable to livestock  through
    35  use  of feed management, prescribed grazing, amendments for treatment of
    36  agricultural waste, and manure management; and
    37    (G) reduce on-farm energy and water consumption, food waste and green-
    38  house gas emissions; or
    39    (iii) racial equity. Preference shall be given to minority and  women-
    40  owned business enterprises, as defined by article fifteen-A of the exec-
    41  utive  law,  or  socially  disadvantaged farms. For the purposes of this
    42  subparagraph, "socially disadvantaged" shall mean individuals  who  have
    43  been  subject  to  discrimination  by  virtue  of  their membership of a
    44  particular group which may include, but is  not  limited  to,  Black  or
    45  African  American, American Indian or Alaska Native, Hispanic or Latino,
    46  and Asian or Pacific Islander; or
    47    (iv) valued workforce. Preference shall  be  given  to  suppliers  who
    48  respect  and  protect workers' rights, regardless of immigration status,
    49  to organize a union, to affiliate with worker  centers  and  alternative
    50  forms  of  worker  representation  and to bargain collectively free from
    51  retaliation and interference; as evidenced by agreeing to enter  into  a
    52  labor  peace  agreement  with a bona fide labor union; having worker-led
    53  workplace health and safety committees; or being a worker-owned  cooper-
    54  ative; or
    55    (v) valued agricultural sector. Preference shall be given to suppliers
    56  who pay farmers a fair price, using United States department of agricul-

        S. 6955--A                          7

     1  ture  pricing  standards, for the products they supply that covers their
     2  actual cost of production; and to suppliers who pay fair remuneration to
     3  farmers for their management and labor; or
     4    (vi)  animal  welfare.  Preference  shall  be  given  to producers who
     5  provide more humane care for farmed animals by  providing  enough  space
     6  and  environmental  enrichments  to  allow  animals  to  carry out their
     7  natural behaviors, using pain control as needed when carrying out  phys-
     8  ical alterations, utilizing responsible, therapeutic antibiotic use, and
     9  requiring  humane  handling and slaughter, as demonstrated by enrollment
    10  in an independent United States  department  of  agriculture  recognized
    11  animal  welfare  certification program with regular, third-party on-farm
    12  audits assessing a producer's compliance with one hundred percent of the
    13  program's welfare standards; or
    14    (vii) nutrition. Preference shall  be  given  to  foods  that  promote
    15  health and well being, comprised of namely whole grains, fresh and mini-
    16  mally-processed  fruits  and vegetables, essential fats (including nuts,
    17  seeds and fish), and whole  plant-based  and  lean  proteins  so  as  to
    18  decrease  sodium,  added  sugars,  artificial  additives, and saturated,
    19  hydrogenated, and trans fats.
    20    § 3. This act shall take effect immediately;  provided,  however  that
    21  the  amendments to subdivision 1 of section 103 of the general municipal
    22  law made by section one of this act shall be subject to  the  expiration
    23  and reversion of such subdivision pursuant to subdivision (a) of section
    24  41  of part X of chapter 62 of the laws of 2003, when upon such date the
    25  provisions of section two of this act shall take effect.
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