Provides for the awarding of state contracts for professional services under the minority and women-owned business enterprise program

BILL NUMBER:S6753

Title of bill

An act to amend the executive law, in relation to including the provision of professional services in the minority and women-owned business enterprise program

Purpose

Provides for the awarding of state contracts for professional services under the minority and women-owned business enterprise program.

Summary of provisions

Section 1 amends the executive law to include a definition of professional services contract and adds a new subdivision 23 defining professional services.

Section 2 amends the executive law to include professional services in the annual report on state MWBE contracts.

Section 3 requires professional services be considered in future disparity studies.

Section 4 establishes agency goals for MWBE professional services expenditures.

Section 5 establishes that professional services be considered in relevant future rules and regulations.

Section 6 establishes an effective date.

Justification

Historically, businesses owned by women and minorities have been subjected to a pattern of systematic discrimination that has stunted their growth and left fledgling enterprises without an adequate network of established support. While New York has taken great strides to remedy this historic disparity, there is much work left to do.

In 1988, Article 15-A of the Executive Law created what is now the Division of Minority and Women's Business Development (the "Division"). The goal was to promote equality of economic opportunities for minority and/or women owned business enterprises ("MWBEs") and to eliminate barriers to their participation in state contracts.

While the Division's work helped foster a marked improvement, the State was compelled to redouble its efforts in the wake of a 2006 study demonstrating a still significant disparity in the awarding of public contracts. By the 2009-2010 fiscal year, this renewed effort helped bring New York's discretionary spending total on contracts with MWBEs to more than $9 Billion.

However, this incredible progress has been largely achieved through procurement and construction service contracts without sufficient attention to contracts for professional services such as

architecture, accounting, legal services and financial planning. Diversification of contracts for professional services, which are among the most well-compensated, prestigious and stable fields, must be a cornerstone of a truly effective MWBE Program.

In spite of widespread commitment to the advancement of diversity initiatives, both publicly and in the private sector, white women and employees of color continue to be under-represented in the professions. For instance, less than 10% of all licensed attorneys in the U.S. are people of color. One possible explanation for this under-representation is the "pipeline theory," which posits that stagnation is partially attributable to the limited availability of similarly situated role models and dearth of access to professional development opportunities. This legislation would help ensure that the state plays a vital role in the encouragement of burgeoning women and minority owned professional service enterprises.

Legislative history

This is a new bill.

Fiscal implications

To be determined.

Effective date

This act shall take effect on the first of January next succeeding the date on which it shall have become a law; provided that the amendments to article 15-A of the executive law made by sections one, two, three, four and five of this act, shall not affect the expiration of such article and shall expire therewith. Provided, further, that, effective immediately, any rules and regulations necessary to implement the provisions of this act on its effective date are authorized and directed to be completed on or before such date.