Relates to expanding opportunities for minority and women-owned business enterprises in procurements by the state and public authorities

Summary of provisions

Section 1 of the bill would amend PAL § 2825(2) to provide that those appointing members of state public authorities consider the diversity of prospective nominees.

Section 2 of the bill would amend PAL § 2879(3) to allow for purchase of goods or services from small businesses and certified MWBEs in amounts of$200,000 or less without competitive bid.

Section 3 of the bill would amend PAL § 2879(3) to add new paragraphs (f), (g), (h), (i), (j) and (k) to require that the procurement guidelines for each state public authority include:

* Requirements for designation of one or more senior staff to oversee the authority's MWBE program;

* Requirements for providing notice of procurements to professional an other organizations serving MWBEs;

* Establishment of appropriate goals for participation by MWBEs in contracting; and

* Requirements that procurements be conducted to achieve the authority's goals to the maximum feasible extent.

Section 4 of the bill would amend PAL § 2879(6) to include in an annual report information on contracts entered into with MWBEs, including the value of such contracts and penalties assessed under Executive Law § 316.

Section 5 of the bill would provide a severability clause.

Section 6 of the bill would provide for an effective date ninety days after the bill becomes law.

Justification

In 2006, the Empire State Development Corporation commissioned a disparity study to evaluate whether minority and women-owned businesses had a full and fair opportunity to participate in state contracting. The results of that study were published on April 29, 2010, under the title "The State of Minority and Women-Owned Business Enterprises: Evidence from New York." The report found evidence of statistically significant disparities between participation of MWBEs in the New York market and the availability of such businesses. It concluded that these disparities could not be explained by factors untainted by discrimination.

This legislation is one of three bills that seek to address the findings of the disparity study, to remedy the results of past discrimination and to provide MWBEs with a full and fair opportunity to compete for contracting opportunities in New York State. This bill would ensure that state public authorities take steps to address the shortcomings in New York's contracting procedures set forth in the disparity study. Among other provisions, each state public authority would need to establish goals for contracting with certified MWBEs in accordance with the 2010 Disparity Study, designate senior staff to oversee the authority's MWBE program, and provide notice of procurement opportunities to MWBEs. These steps are crucial to ensure that public authorities are included in the broad remedial efforts provided for in this legislative package, and to provide for a comprehensive effort to end discrimination in state contracting.

Existing law

PAL § 2879 currently requires state public authorities to identify those areas or types of contracts for which MWBEs may best bid so as to promote and assist participation by such enterprises and facilitate a "fair share" of the awarding of contracts to such enterprises.

Legislative history

None.

Fiscal implications

This bill would have no fiscal impact on the State or localities.

Effective date

This bill would take effect ninety days after it becomes law.