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History
- Notice of committee consideration - requested
- Referred to finance
- Referred to finance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to performance and payment bonds
In Assembly Committee · Governmental Operations · Sponsor Joan Millman
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the state finance law, in relation to performance and payment bond requirements
Purpose or general idea of bill
To provide increased performance and payment bond waiver levels for small and certified minority and women-owned businesses.
Summary of specific provisions
This bill would increase the contract threshold for which performance and payment bonds are required to $500,000 for small and certified minority and omen-owned businesses and would require information on bonding requirements or dispensations in advertisements for bids.
Effects of present law which this bill would alter
Currently, under the State Finance Law, performance and payment bonds may be dispensed with at the discretion of the state agency head for contracts less than $100,000, or, for contracts not subject to multiple contract award requirements, $200,000. This bill would provide a targeted increase of these thresholds for small and certified minority and women-owned businesses. The bill would also require that information on bonding requirements be included in advertisements for bids.
Amendment
Performance and payments bonds for single contracts have been increased to $150,000 and multiple contracts to $300,000 and allows for automatic increases based upon inflation of construction costs.
Justification
This proposal is intended to enhance the participation of small, certified minority and woman-owned businesses in public projects. Testimony from an Assembly hearing in 2005 documented that statutory bonding requirements on public projects pose a barrier to the growth of small, certified minority and woman owned contractors. These firms often lack the assets and the record of experience required by bonding companies; yet without bonding they cannot compete for the work, and thus, cannot get the experience and assets they need to become bondable. By providing a targeted dispensation of bonding requirements this bill would enable small, certified minority and women-owned businesses to gain experience with larger projects, and will benefit contracting agencies as well as the targeted businesses by creating a larger pool of qualified contractors and subcontractors available for public works projects.
Prior legislative history
2006: A.9069 2007: S.5199-A - Died in Finance Committee
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.