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Sponsors
2 Co-sponsors
History
- 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 increased participation in state contracts and subcontracts by certified minority and women owned business enterprises
In Assembly Committee · Governmental Operations · Sponsor Jo Anne Simon
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the executive law, in relation to participation by minority group members and women with respect to certain state contracts; and to amend the state finance law, in relation to establishing a mentor-protege program for small and minority and women-owned business concerns and in relation to performance and payment bond requirements
Purpose
Minority and women-owned businesses have come to constitute a large percentage of businesses in New York. MWBEs, just like small businesses, are an increasingly crucial part of the State's economy and contribute vastly to our economy's growth. However, despite these increases. MWBEs continue to face barriers in government contracting. This bill seeks to address and eliminate some of these barriers by enhancing Article 15-A provisions and increasing small business and minority and women-owned business enterprise (MWBE) participation in State agency commodity and service procurement and State public authority assisted, construction and rehabilitation project contracts and subcontracts.
Summary of provisions
Creates a Small Business and MWBE Mentor/Protege Program; Creates violations against contractors failing to comply with Article 15-A; Creates greater accountability by requiring the Division of Minority and Women Business Development to create a master list of all state agencies required to file quarterly compliance reports and to list in its annual report the names of non-compliant agencies and the extent of their noncompliance; Expands contracting opportunities to certified MWBEs by creating a Division web site where certified MWBEs can access contracting and subcontracting opportunities; Requires contractors to provide utilization plans at the time a bid is submitted; Requires the posting of contractor MWBE utilization plans and prohibits the use of automatic waivers; Provides for greater contracting opportunities by alleviating the burden of performance and payment bonds for small businesses and certified MWBEs when the aggregate amount of the contract is under $500,000 Provides the Director with the authority to mandate an audit of state contracting agencies that do not comply with Article 15-A reporting requirements. and requires the contracting agency to hire and pay for an independent auditor; Increases MWBE and small business participation in State public authority assisted, construction and rehabilitation projects.
Read the full memo (758 words)
Justification
Public purchasing is one of government's most important functions. Its effective use or potential abuse can have a substantial impact on governmental efficiency, the income of particular companies and communities, and the financial burden of taxpayers. Over many years, minority-owned and women-owned businesses have experienced difficulties in tapping into government procurement purchasing programs. Barriers to government contracts still exist for MWBEs because they are smaller in size and fewer in number than majority-firms. Small businesses experience similar barriers when trying to participate in government contracting. There are over 2 million small businesses in New York State, comprising 99% of total businesses and employing over 50% of the State's workforce. Minority and women-owned businesses have come to constitute a large percentage of businesses in New York, and continue to experience growth and increased public procurement. According to the census, New York has nearly 220,000 black-owned firms (with 129,324), more than 725,000 women-owned firms, and 266,000 Hispanic-owned firms. However, as of 2014, there were roughly 10,000 certified MWBEs in New York State. The Division reports that State agency expenditures for MWBEs statewide totaled $1.48 billion, $1.96 billion, and $1.69 billion respectively, 2012-2013, 2013-2014, and 2014-2015 State Fiscal Years. While these participation figures have risen as high as 25%, they also reflect a reduction in the pool of total authority and agency procurement from which these participation goals are being calculated. Indeed, in SFY 2013-14, the year with the highest participation rates, the total procurement was $7.8 billion. This contrasts with a 10.28% 2010-11 when the total procurement was $10.8 billion. If adjusted for those larger procurement totals, the participation rate in that highest year would be about 15.6%. Further, despite the rise in certified MWBEs, the number of waivers granted as a result of lack of MWBE firm availability to meet participation goals has increased significantly since 2011-12, rising from 213 to 871 for FY 2014-15. Challenges with the implementation of Article 15-A include this increase in waiver granting and difficulties connecting MWBEs with prime contractors who are searching for them, and continued anecdotal reports of misuse of MWBE certification name through misunderstanding or potential deceit or fraud.
Legislative history
2010: Referred to and died in the Senate Finance Committee. 2011-2012: S.380 - Died in Committee. 2013-2014: S.1681 - referred to Finance Committee.
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.