What's happening
This bill establishes third-party oversight of New York state contracts to ensure fair participation by minority and women-owned businesses.
Why it matters
Creates an independent oversight mechanism. By mandating a third-party entity, with no ties to New York State, to monitor contracting agencies’ efforts, the bill aims to increase impartiality and reduce potential conflicts of interest in how contracts are awarded to minority and women-owned businesses.
Increases transparency and accountability. Agencies must submit detailed, quarterly reports about procurements, bidding, and waivers, making it easier to scrutinize both successes and shortfalls in meeting diversity goals.
Provides public and governmental insight. The third-party’s annual findings—submitted directly to state leadership and posted online—offer both lawmakers and the public a clearer view of whether agencies are meeting established participation goals, potentially driving further reforms or targeted interventions.
Standardizes evaluation across agencies. By requiring the third party to develop a comparative evaluation system, the bill seeks to ensure that all agencies are measured against consistent standards, making disparities or best practices easier to identify.
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Who cares
Headline styles
Add Oversight to State Contracts
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to finance
Companion bills
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.
Add Third-Party Contract Oversight
In Senate Committee · Finance · Sponsor Brian Benjamin
Add Watchdog to State Contracts
In Assembly Committee · Governmental Operations · Sponsor Michael Blake
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1847
2017-2018 Regular Sessions
IN SENATE
January 11, 2017
Introduced by Sen. SQUADRON -- read twice and ordered printed, and when printed to be committed to the Committee on Finance
AN ACT to amend the executive law, in relation to third party oversight for state contracts involving minority and women-owned businesses
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The executive law is amended by adding a new section 316-b to read as follows:
§ 316-b. Third party oversight. 1. A third party entity not employed, engaged in business with or holding office in New York state shall be selected by the legislature and confirmed by the chief diversity officer, as defined in section four-a of this chapter, through a request for proposal process to oversee each contracting agency's procurement procedure for contracts made directly or indirectly to minority and womenowned businesses.
2. Each contracting agency shall submit the following information to such third party entity on a quarterly basis:
(a) total agency procurement including from which industry under subdivision one of section three hundred thirteen of this article each contract is categorized;
(b) upcoming confirmed and proposed procurement opportunities including estimated overall cost and steps taken or to be taken in order to ensure maximum feasible participation of minority and women-owned business;
(c) a list of all bids for each contract including a list of all contractors, known subcontractors, and whether any or all qualify as a minority or women-owned business; and
(d) a list of all contractor's awarded waivers with supporting documentation illustrating such contractor's good faith effort to comply with the criteria outlined in subdivision seven of section three hundred thirteen of this article.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00161-01-7
S. 1847 2
3. Such third party entity shall develop an evaluation system that clearly delineates and compares each agency's utilization of minority and women-owned businesses and the established procurement goals outlined in subdivision one of section three hundred thirteen of this article.
4. Such third party entity shall report annually on the fifteenth day of May directly to the governor, temporary president of the senate and speaker of the assembly the collective findings from the past year's quarterly submissions. Additionally, such report shall be made available on the empire state development division of minority and women's business development website for public review.
§ 2. This act shall take effect immediately and shall expire on the same date and in the same manner as article 15-A of the executive law pursuant to subdivision (h) of section 121 of chapter 261 of the laws of 1988, as amended.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the executive law, in relation to third party oversight for state contracts involving minority and women-owned businesses
Purpose or general idea of bill
To ensure that State contracts are being reviewed and distributed fairly among Minority and Women-Owned Business Enterprise bidders.
Summary of specific provisions
Section 1 establishes an independent third party to oversee each contracting agency's procurement procedure for contracts made with Minority and Women-Owned Businesses. Each of these contracting agencies submit information to this third party including proposed and confirmed procurement opportunities, a list of all bids for each contract, and a list of all contractors awarded waivers. This third party shall create an evaluation system that asses each agency's utilization of Minority and Women-Owned businesses' and the established procurement goals. Additionally, this third party entity is required to provide a monthly and annual metrics based reporting, along with observations and recommendations for improvements of the MWBE contracting process including a clearly defined MWBE point person within each agency.
Section 2 defines the effective date of this act.
Justification
As we strive to achieve the MWBE goal as outlined by Governor Cuomo, it is crucial that contracting agencies make considerations that are both fair and impartial. Doing so will allow MBE's to transcend those barriers, so that they may be judged n their merit alone. Equally crucial is that we tackle any challenge, whether perceived or actual, that poses a threat towards this balance of fairness and impartiality. Such a threat is noted in the rise of MWBE fraud as outlined recently by Manhattan District Attorney CY Vance. This legislation would require a third party entity to oversee the MWBE auditing and reporting procurement process. As part of this process the third party entity would provide monthly and annual metrics based reporting and recommendations. It would ensure an unbiased mechanism for review and responsiveness without fear of a potential pushback from any administration or legislature.
Prior legislative history
2016: S5698/A6905 - REFERRED TO FINANCE/ referred to governmental operations 2015: S5698/A6905 - REFERRED TO FINANCE/ referred to governmental operations
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately and shall expire on the same date and in the same manner as article 15-a of the executive law pursuant to subdivision (h) of section 121 of chapter 261 of the laws of 1988, as amended.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.