Requires database and reporting for contracts with minority and women-owned businesses

BILL NUMBER:S2789

Title of bill

An act to amend the public authorities law and the executive law, in relation to database and reporting requirements for contracts with minority and women-owned businesses

Purpose or general idea

To require state agencies and Class A. and B public authorities, and public benefit corporations, to implement databases and reporting for contracts with minority and women-owned businesses.

Summary of specific provisions

Section 1 amends the public authorities law by adding a new section 2807, which creates a duty for every state authority to create and maintain databases to track the issuance of contracts to minority and women-owned business enterprises (MWBEs), to report upon such contracts.

Section 2 amends the executive law by adding a new section 315-a, which creates a duty for state agencies to create and maintain databases to track the issuance of contracts to minority and women-owned business enterprises (MWBEs), to report upon such contracts.

Section 3: This act shall take effect on the 90th day after it shall have become a law; with provisions.

Justification

On March 3, 2010 the New York State Senate Minority and Women-Owned Business Enterprise (MWBE) Task Force held a hearing to inquire into the status of State contracting with MWBEs, and reporting upon such activity.

A number of common themes arose during the hearing, but one particularly important issue cited by the witnesses was the need for software that tracks MWBE goals. The Green American Public Private Partnership (Green America), for example, testified to wide disparities between MBE goals and oversight of such goals. One example used was New York City's (NYC) annual value of prime contracts, which total roughly $359 million. Under NYC's announced MWBE prime contract goal, NYC would be expected to let approximately $107 million of contracts to MWBEs, however only $14.9 million of such contracts were awarded in 2009. The conclusion of the Department of Small Business Services, which audited NYC's MWBE program, was that self-monitoring by agencies of MWBE compliance was inadequate. Other witnesses, such DWM Business Associates, LLC, also pointed to the need for greater focus upon compliance and reporting issues.

This legislation will require state agencies and public authorities to track the issuance of MWBE contracts, report upon the award of such contracts, and post the information on their web sites. This large step forward in tracking and compliance reporting will vastly increase

the transparency and accountability of MWBE contracting by state entities in New York. Furthermore, such a requirement should place small or no additional burden(s) upon agencies and authorities. The Metropolitan Transportation Authority (MTA), for example, stated that it is already investing in MWBE software so it can track MWBE goals in real time, so if prime contractors do not meet their goals, the MTA's compliance unit can act without delay. In addition, the Office of General Services (OGS) noted the new requirement established by chapter 429 of 2009, requiring agencies to post their MWBE utilization plans on their websites, which is theorized to be complementary to the requirements of this legislation.

Prior legislative history

2013-14: S3089 - Referred to Corporations, Authorities 2011-12: S.1080A - Referred to Corporations, Authorities & Commissions 2009-10: S.7195 - Referred to Corporations, Authorities & Commissions

Fiscal implications

None.

Effective date

This act shall take effect on the 90th day; with provisions.