What's happening
This bill requires contractors on public projects to promptly report ending relationships with minority and women-owned businesses or face fines.
Why it matters
Increases transparency and accountability. By requiring contractors to promptly notify public agencies when they end relationships with minority and women-owned businesses, the bill aims to ensure that project owners and oversight bodies have real-time information about participation and compliance.
Supports enforcement of diversity goals. The reporting requirement helps public agencies and the Division of Minority and Women’s Business Development track whether contractors are meeting their obligations to include minority and women-owned businesses, and to intervene if commitments are not honored.
Deters tokenism and encourages genuine partnerships. By threatening fines for failure to report, the legislation discourages contractors from superficially engaging minority and women-owned businesses at the project’s outset and then quietly ending those relationships, promoting more meaningful and sustained collaboration.
Potential impact on project timelines and contractor behavior. The risk of fines and increased scrutiny may prompt contractors to be more careful in forming, maintaining, and, if necessary, legitimately ending partnerships, thereby possibly influencing how public contracts are managed and how diversity goals are integrated into project planning.
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Who cares
Headline styles
Report Dropped MWBE Contracts
Plain English, a few words. Used as the page title.
Sponsors
3 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.
Report Dropped Minority Contractors
In Assembly Committee · Governmental Operations · Sponsor Rodneyse Bichotte Hermelyn
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1337
2017-2018 Regular Sessions
IN SENATE
January 9, 2017
Introduced by Sens. COMRIE, KENNEDY, PERKINS, SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Finance
AN ACT to amend the state finance law and the general municipal law, in relation to contractual relationships with minority and women-owned businesses
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 139-f of the state finance law is amended by adding a new subdivision 5 to read as follows:
5. Any contractor who subcontracts and/or has a joint venture with minority and women-owned businesses on a public work project and prior to completion of such project the contractor ceases its contractual relationship with any to all minority and women-owned businesses, he or she shall report such change in relationship to the public owner of such project and the division of minority and women's business development. Failure to report within seven calendar days shall result in a fine determined by the director of the division of minority and women's business development.
§ 2. Section 106-b of the general municipal law is amended by adding a new subdivision 4 to read as follows:
4. Any contractor who subcontracts and/or has a joint venture with minority and women-owned businesses on a public work project and prior to completion of such project the contractor ceases its contractual relationship with any to all minority and women-owned businesses, he or she shall report such change in relationship to the public owner of such project and the division of minority and women's business development. Failure to report within seven calendar days shall result in a fine determined by the director of the division of minority and women's business development.
§ 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00374-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the state finance law and the general municipal law, in relation to contractual relationships with minority and women-owned businesses
Purpose
The purpose of this bill is for contractors to report their contractual relationship throughout the life of the project with minority and women-owned businesses.
Summary of provisions
Section 1 would require the contractor who ceases its contractual relationship with any to all minority and women-owned businesses, shall report such changes. Failure to report will result in a fine.
Justification
This bill will help agencies to ensure prime contractors are meeting their MWBE goals.
Legislative history
2015-16: 8.7384/A.9710 Referred to Finance
Fiscal implications
None to the State.
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.