Relates to increasing participation by minority and women-owned business enterprises

Summary of specific provisions

Section 1 of the bill contains the title, "New York State MWBE asset management and financial institution strategy" ("strategy").

Section 2 of the bill contains the legislative findings.

Section 3 of the bill amends Section 176 of the Retirement and Social Security Law (RSSL) by adding six new subdivisions § 176(4), (5), (6), (7), (8) and (9) which defines the terms "MWBE asset manager", "minority group member", "MWBE", "MWBE financial institution", "fiduciary controlled entities" and "best execution".

Section 4 of the bill amends and adds a new Section 423-c to the RSSL, which provides authorization for the establishment of the MWBE asset management and financial institution strategy. Such authorization is within the discretion of the comptroller subject to his fiduciary duties and obligations as the sole trustee of the common retirement fund (CRF). Authorizes among other things, the establishment of reasonable utilization goals for the investing of CRF assets, conducting of trades of public equity and fixed-income securities as well as the allocation of investments through equities, debt securities and special programs involving MWBE asset managers. Also provides, for the awarding of contracts for financial and professional services to MWBE firms. The bill authorizes the comptroller to advertise available opportunities pursuant to the strategy, work with other funds to create a database and hold a conference to promote the strategy. There is a requirement of an annual report to the governor and legislature with respect to the participation of MWBEs. The comptroller is also required to establish a certification process for MWBEs along with guidelines for purposes of identification and reporting.

Section 5 of the bill amends and adds a new section 508-a to the Education Law which subject to the discretion, fiduciary duties and

obligations of the board of the New York State Teachers Retirement System (TRS) authorizes the establishment of the strategy. Such authorization is within the discretion of the board of trustees subject to their fiduciary duties and obligations as the trustees of the TRS. Authorizes among other things the establishment of reasonable utilization goals for the investing of TRS assets, conducting of trades of public equity and fixed income securities as well as the allocation of investments through equities, debt securities and special programs involving MWBE asset managers. Also provides, for the awarding of contracts for financial and professional services to MWBE firms. The bill authorizes the board to advertise available opportunities pursuant to the strategy, work with other funds to create a database and hold a conference to promote the strategy. There is a requirement of an annual report to the governor and legislature with respect to the participation of MWBEs.

Section 6 of the bill amends and adds a new Section 87-i to the Workers' Compensation Law which subject to the discretion, fiduciary duties and obligations of the commissioners of the New York State Insurance Fund (SIF) authorizes the establishment of the strategy. Such authorization is within the discretion of the commissioners subject to their fiduciary duties and obligations as the trustees of the SIF. Authorizes among other things the establishment of reasonable utilization goals for the investing of SIF assets, conducting of trades of public equity and fixed income securities as well as the allocation of investments through equities, debt securities and special programs involving MWBE asset managers. Also provides, for the awarding of contracts for financial and professional services to MWBE firms. The bill authorizes the commissioners to advertise available opportunities pursuant to the strategy, work with other funds to create a database and hold a conference to promote the strategy. There is a requirement of an annual report to the governor and legislature with respect to the participation of MWBEs.

Section 7 of the bill amends Section 5(2) of the State Finance Law by relettering §5(2)(c), (d), (e) and (f) to §5(2)(e), (f), (g) and (h) and adding two new sections §5(2)(c) and (d) which subject to the discretion, fiduciary duties and obligations of the deferred compensation board ("board") authorizes the establishment of the strategy. Such authorization is within the discretion of the board subject to their fiduciary duties and obligations as the trustees of the Deferred Compensation Plan (DCP). Authorizes among other things the establishment of reasonable utilization goals for the investing of DCP assets, conducting of trades of public equity and fixed-income securities as well as the allocation of investments through equities, debt securities and special programs involving MWBE asset managers. Also provides, for the awarding of contracts for financial and professional services to MWBE firms. The bill authorizes the board to advertise available opportunities pursuant to the strategy, work with other funds to create a database and hold a conference to promote the

strategy. There is a requirement of an annual report to the governor and legislature with respect to the participation of MWBEs.

Section 8 of the bill provides a severability clause.

Section 9 makes this act effective 90 days after enactment.

Justification

Studies have shown that while the State of New York has B% of all women-owned business enterprises and 11% of all minority owned business enterprises in the United States, minority and women owned business enterprises only received 5.2% of expenditures on state contracts. in comparison to New York where minorities comprised 40% of the population, Florida had a minority population of 38% and its MWBE state contracting expenditures were 25%. Illinois had a minority population of 34% and its MWBE state contracting expenditures were 22%. This is an attempt to redress this imbalance. Such data demonstrates that despite having one of the largest minority populations and supporting 22 year effort to increase opportunities for minority and women owned business enterprises, the state of New York has not matched other states in contracting expenditures wills MWBE's.

Prior legislative history

None.

Fiscal implications

To be determined.

Effective date

90 days after it becomes law.