Legislative Memo





"Offshoring" of State Contracts



May 31, 2005


The Business Council strongly opposes this legislation, which would preclude the use of non-U.S. labor or services in satisfying procurement contracts awarded by New York State government in most instances.

There are two fundamental flaws regarding this legislation.

This legislation is also inconsistent with long-standing state law that penalizes jurisdictions that impose trade barriers. New York's State Finance Law generally precludes the awarding of state contracts to “discriminatory jurisdictions,” i.e., states that give state contract preference to their in-state businesses.

New York State continues to enjoy significant economic benefits from its position as a center for international finance, from its reliance on exports, and its significant number of “insourced” jobs. For all these reasons, the New York State legislature should continue to be an strong supporter of free trade, and should reject measures such as S.5427.

This legislation will be included as one of the scoring measurements of The Business Council's “Vote for Jobs Index 2005". This is The Business Council's annual assessment of legislator's action on key issues of concern to the state's business community.