Opposition to NY ‘Buy American’ proposal mounts
OFII statement on the growing concerns of the harmful effects that proposed “Buy American” policies
In Governor Cuomo’s State of the State address today, he introduced a proposal that would impose the “nation’s strongest state procurement laws mandating the preference of American Products.” As outlined in the press release below, all state entities would be required to give preference to American-made goods and products in any procurement project valued over $100,000. In addition, each manufactured good would have to be produced in the United States with more than 60 percent domestic content.
This news follows the recent announcement of support of Buy America policies by Senator Jeff Klein, who included it as one of the Independent Democratic Conference’s legislative priorities this year.
The AFL-CIO endorsed both the Governor's announcement in a statement today and Senator Klein’s announcement in a statement, saying that “Buy American legislation has been a top priority of the Labor Movement.”
OFII Concerns: This proposal would impose the most harmful domestic content procurement requirements ever mandated by any state. All products procured by state agencies would be subject to this onerous mandate, precluding numerous OFII member companies from bidding for government contracts because they would fail to meet these requirements.
OUTLOOK: This proposal will be included in Governor’s Cuomo budget, which is due by next Tuesday. There is now a wave of public legislative support for these proposals following the Senate Independent Democratic Caucus’s vocal support along with known support from many Assembly Democratic leaders. At the same time, we also know that several Republican leaders in the Senate adamantly oppose any policies that would impose restrictive domestic content requirements. These legislators understand how interconnected New York’s economy is with Canada and other nations and believe these policies undermine bilateral economic partnerships.
As you may recall, over the last two budget cycles OFII succeeded in stripping out domestic content language during final budget negotiations. While Assembly Democrats have typically pushed this language during the last weeks of budget negotiations in March, we have relied on Senate leadership to push back. Governor Cuomo’s announcement turns this dynamic upside down and creates momentum behind enactment of domestic content proposals.
ACTION: Please let me know if your company is concerned. We are also forming a New York-specific working group on this issue. Please email Nick Neuteufel if you would want to join. *By joining the working group, you will receive more timely policy updates and invitations to strategy calls.
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For Immediate Release
Governor Andrew M. Cuomo
GOVERNOR CUOMO PRESENTS 27TH PROPOSAL OF THE 2017 STATE OF THE STATE: "BUY AMERICAN" PLAN WILL IMPLEMENT THE NATION'S STRONGEST STATE PROCUREMENT LAWS MANDATING THE PREFERENCE OF AMERICAN PRODUCTS
Sweeping Legislative Reforms will Institute “Buy American” Policy for All New State Procurements Over $100,000
Policy Will Apply to All Goods and Products Procured by State Entities Moving Forward
Governor Andrew M. Cuomo today announced a groundbreaking new proposal that would implement the nation’s strongest mandate for the purchase of American-made products by state entities. Under the Governor’s “Buy American” plan, all state entities will be required to give preference to American-made goods and products in any new procurements more than $100,000. While other similar, less comprehensive policies exist throughout country, this proposal demonstrates the strongest commitment to growing the manufacturing sector, and supporting the men and women who work in it, nationwide.
“Nowhere on Earth can you find another workforce that rivals the skill, quality and dedication of American labor,” Governor Cuomo said. “It’s time that our nation recommit itself to these hardworking men and women and New York is prepared to lead the way forward. When we Buy American, we not only keep our companies and our employees where they belong, but we foster growth and development in leading industries right here at home. This initiative will reinvest in the talent that made this state and this country what it is today and strengthen our role as a global leader in manufacturing for years to come.”
Each year, New York State spends billions of dollars on the procurement of goods and services. However, existing regulations place little emphasis on ensuring this spending power is leveraged to support all American manufacturing, many which are right here in New York State. In fact, only procurements of structural steel, reinforcing steel and other major steel on construction contracts greater than $100,000 are subject to existing “Buy American” provisions. With manufacturing representing one in every nine Upstate jobs and over 5 percent of the state’s total workforce, as well as close to $70 billion in goods being manufactured here each year, New York has been missing a critical opportunity to strengthen a key industry sector.
Governor Cuomo’s proposal seizes on this opportunity by placing an enhanced focus on growing American manufacturing and support its workers through a number of legislative remedies to the state’s procurement laws. These include:
To qualify as “American-made” under Governor Cuomo’s proposal, end manufacturing processes should take place in the United States and more than sixty percent of the components of the manufactured good should be of domestic origin. Exceptions to this requirement include:
o an immediate or emergency need existing for the item or service; or
o a need to protect the health, safety, or welfare of the public
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Additional news available at www.governor.ny.gov
New York State | Executive Chamber | press.office@exec.ny.gov | 518.474.8418
