Discriminatory Jurisdiction List Update

Staff Contact: Ken Pokalsky

Discriminatory Jurisdiction List Changes (June, 2001)

State Finance Law Section 165(6)(b) empowers the Commissioner of the New York State Department of Economic Development (DED) to prepare and maintain a list of all "discriminatory jurisdictions." These jurisdictions are defined as any other country, nation, province, state or political subdivision which employs a preference or price distorting mechanism that discriminates against a New York State business enterprise competing for procurement contracts in those jurisdictions.

Section 165(6)(b) of the State Finance and 2879(5)(d) of the Public Authorities Law prohibit any state agency, public authority, or public benefit corporation from awarding a New York State procurement contract to any foreign business enterprise (as defined by SFL § 165 (6)(a)(ii)) whose "principal place of business" is located in a discriminatory jurisdiction. New York State Law also precludes the inclusion of foreign business enterprises located in discriminatory jurisdictions in any procurement solicitation or on any bidder list maintained by an agency, public authority, or public benefit corporation.

This sanction may only be waived if the head of the state agency, public authority, or public benefit corporation determines that it is the best interest of the State to do so, and notifies the Commissioner of DED, in writing, of that determination. Jurisdictions can be added or removed from the list by the Commissioner of DED for "good cause shown."

The Commissioner of the New York State Department of Economic Development has determined that good cause is shown under State Finance Law §165 to remove the Canadian Province of Ontario from the list of discriminatory jurisdictions. Therefore, effective immediately, foreign business enterprise whose principal place of business in Ontario shall no longer be subject to the aforementioned prohibitions.

New York's discriminatory jurisdiction list includes the following jurisdictions:
the states of Alaska; Hawaii, Louisiana; Montana, South Carolina, West Virginia and Wyoming. The prohibitions detailed above will apply to any potential bidder on a New York State procurement whose principal place of business is located in one of these jurisdictions.