Establishes state agency goal submission procedure ensuring that certified minority-owned and women-owned business enterprises are given meaningful participation

Section 2 would amend Subdivision 2 of Section 313 to delete language that limits the obligations of contracting agencies under Section 313 to state contracts involving the acquisition, construction, demolition, replacement, major repair or renovation of real property or improvements thereon.

Section 3 would amend subdivision 4 of Section 313 of the executive law to prohibit the ability of state agencies to give automatic waives for noncompliance with the mandates of Article 15-a.

Section 4 would amend Section 315 of the executive law to require contracting agencies to submit annual reports with quarterly updates to the division for publication.

Section 5 would amend Section 315 of the executive law by giving the director of the division the power to review and evaluate state agency compliance with Article 15-a and, in the event of non-compliance that lasts longer than one year following notice by the director, the director would have the power to participate in contract decisions of such agency until the agency is in compliance.

Section 6 would amend Section 316 of the executive law to allow the director to impose penalties on state contractors that fail to comply with their obligations under Article 15-a of the executive law by allowing the director to impose penalties including the rescission of existing state contracts and debarment.

Section 7 would amend Section 163 of the finance law to take into diversity practices of contractors in determining "Best Value".

Section 9 would amend Section 2879 of the public authorities law to permit state authorities to make contract awards for contracts less than $250,000 to small businesses and minority or women-owned business enterprises without a larger competitive process.

Section 10 would amend Section 163 of the finance law to permit state agencies to make contract awards for contracts less than $250,000 to small businesses and minority or women-owned business enterprises without a larger competitive process.

Section 11 would amend Section 2879 of the public authorities law to add financial, legal or other professional services to the definition of professional firm.

Section 12 would amend Section 2879 of the public authorities law to require the state authorities to hire one or more senior staff members to oversee the authorities minority and women-owned business enterprise programs and to facilitate contract opportunities within such authorities for such firms.

Effects of present law which this bill would alter

This bill would provide the Division of Minority and Women Owned Business Enterprises a stronger method to ensure state agency compliance with the provisions of Article 15-A of the Executive Law.

Justification

In July 1988, Article 15-A of the Executive Law created a requirement that state agencies develop policies and programs to ensure that minority and women-owned business enterprises receive a fair share of state contracts and have meaningful participation in such contracts through good faith efforts by such agencies and prime contractors. Despite the fact that New York is one of the most diverse states in the country, since Article 15-A was passed, New York State continues to lag behind other states in expenditures by state agencies with minority and women-owned enterprises. While there have been advances made in ensuring meaningful participation by minority-owned and women-owned businesses on state contracts, compliance with Article 15-A has been haphazard and arbitrary. This legislation provides a necessary statutory mechanism for eliminating artificial barriers that continue to confront minority and women-owned business enterprises, strengthening the division's ability to provide oversight, creating sanctions for serious non-compliance and the creation of public reporting regime to facilitate the sharing of information about opportunities and compliance. The amendments proposed are intended to strengthen Article 15-A in the ways described, which will have the direct effect of stimulating economic development in the state and enhancing job creation, especially in communities with large populations of minorities and/or women.

Prior legislative history

A.11690 (2002), A.805 (2003-04), A.3471 (2005-06), A.1311A (2007-08)

Fiscal implications for state and local governments

Minimal.

Effective date

This act shall take effect on the ninetieth day following its passage.