What's happening
This bill allows New York City to give certain contracts up to $200,000 to certified minority- and women-owned businesses without formal competitive bidding.
Why it matters
Aims to address historic inequities. by allowing minority- and women-owned businesses to compete for city contracts without the barriers of formal bidding, potentially helping close longstanding opportunity gaps in public procurement.
Could help smaller businesses grow. , as the bill authorizes “capacity building programs” to help certified MWBEs not only win contracts but also develop the skills and resources needed to handle larger or more complex public projects in the future.
May change the competitive landscape. for city contracts under $200,000, giving MWBEs a better chance to establish a track record with government work, which can be critical for accessing future opportunities and private sector growth.
Signals a policy shift toward proactive inclusion,. empowering NYC to use its purchasing power to promote diversity in its supplier base, which could influence similar reforms elsewhere and shape the city’s broader economic equity goals.
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Who cares
Headline styles
Boost Minority, Women-Owned Businesses
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to cities
- Referred to cities
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.
Boost Contracts for Minority Businesses
In Assembly Committee · Governmental Operations · Sponsor Rodneyse Bichotte Hermelyn
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1584
2019-2020 Regular Sessions
IN SENATE
January 15, 2019
Introduced by Sens. SANDERS, MONTGOMERY -- read twice and ordered printed, and when printed to be committed to the Committee on Cities
AN ACT to amend the general municipal law, and the New York city charter, in relation to opportunities for minority and women-owned business enterprises and emerging business enterprises
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The opening paragraph of subdivision 1 of section 103 of the general municipal law, as amended by section 1 of chapter 2 of the laws of 2012, is amended to read as follows:
Except as otherwise expressly provided by an act of the legislature or by a local law adopted prior to September first, nineteen hundred fifty-three, all contracts for public work involving an expenditure of more than thirty-five thousand dollars and all purchase contracts involving an expenditure of more than twenty thousand dollars, shall be awarded by the appropriate officer, board or agency of a political subdivision or of any district therein including but not limited to a soil conservation district to the lowest responsible bidder furnishing the required security after advertisement for sealed bids in the manner provided by this section, provided, however, that purchase contracts (including contracts for service work, but excluding any purchase contracts necessary for the completion of a public works contract pursuant to article eight of the labor law) may be awarded on the basis of best value, as defined in section one hundred sixty-three of the state finance law; provided, however, a city with a population of one million inhabitants or more may also identify a quantitative factor to be used in evaluation of bids or offers for awarding contracts for bidders or offerers that are minority- or women-owned business enterprises certified pursuant to local law, to a responsive and responsible bidder or offerer in the manner provided by this section except that in a political subdivision other than a city with a population of one million
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00223-01-9
S. 1584 2
inhabitants or more or any district, board or agency with jurisdiction exclusively therein the use of best value for awarding a purchase contract or purchase contracts must be authorized by local law or, in the case of a district corporation, school district or board of cooperative educational services, by rule, regulation or resolution adopted at a public meeting. Provided, however, that a city having a population of one million inhabitants or more is authorized to award purchase contracts to businesses certified as minority- or women-owned business enterprises pursuant to local law in an amount not to exceed two hundred thousand dollars without a formal competitive process.
§ 2. Section 103 of the general municipal law is amended by adding a new subdivision 17 to read as follows:
17. Notwithstanding any other provision of this section, a city with a population of one million inhabitants or more may establish a capacity building program to increase the capacity of businesses certified as minority- or women-owned business enterprises pursuant to local law to bid for and perform public contracts, to promote the meaningful participation of such firms on such contracts. Such program may provide reasonable procedures to secure the meaningful participation of such firms in the performance of public contracts.
§ 3. Paragraph (a) of subdivision 15 of section 103 of the general municipal law, as added by section 1-a of part MM of chapter 57 of the laws of 2008, is amended to read as follows:
(a) Notwithstanding any general, special or local law or rule or regulation to the contrary, an officer, board or agency of any county, any school district or any political subdivision of the state with a population of fifty thousand or more charged with awarding a contract for public work, and an officer, board or agency in a city with a population of one million inhabitants or more charged with awarding a purchase contract, may establish guidelines governing the qualifications of bidders seeking to bid or enter into such contracts. If such officer, board or agency maintains an appropriate list of qualified bidders, the bidding shall be restricted to those who have qualified prior to the receipt of bids according to standards fixed by such officer, board or agency. In determining whether a prospective bidder qualifies for inclusion on a list of pre-qualified bidders, the officer, board or agency shall consider the experience and record of performance of the prospective bidder in the particular type of work, as well as: (i) the prospective bidder's ability to undertake the particular type and complexity of work; (ii) the financial capability, responsibility and reliability of the prospective bidder for such type and complexity of work; (iii) the record of the prospective bidder in complying with existing labor standards and maintaining harmonious labor relations; (iv) the prospective bidder's compliance with equal employment opportunity requirements and anti-discrimination laws, and demonstrated commitment to working with minority and women-owned businesses through joint ventures or subcontractor relationships; and (v) the record of the prospective bidder in protecting the health and safety of workers on public works projects and job sites as demonstrated by the prospective bidder's experience modification rate for each of the last three years.
§ 4. The New York city charter is amended by adding a new section 314-a to read as follows:
§ 314-a. Sheltered market. The procurement policy board may provide by rule that agencies may make procurements of goods, services, construction, or construction-related services for amounts not exceeding two hundred thousand dollars from minority- or women-owned business
S. 1584 3
enterprises certified pursuant to section thirteen hundred four of this chapter without a formal competitive process.
§ 5. Severability. If any clause, sentence, paragraph, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid and after exhaustion of all further judicial review, the judgment shall not affect, impair or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, section or part of this act directly involved in the controversy in which the judgment shall have been rendered.
§ 6. This act shall take effect immediately and shall apply to any contract let or awarded on or after such date; provided, however that the amendments to subdivision 1 of section 103 of the general municipal law made by section one of this act shall not affect the expiration and reversion of such subdivision as provided in subdivision (a) of section 41 of part X of chapter 62 of the laws of 2003, as amended and shall expire and be deemed repealed therewith.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general municipal law, and the New York city char- ter, in relation to opportunities for minority and women-owned business enterprises and emerging business enterprises
Purpose
To expand opportunities for minority and women owned business enter- prises and emerging business enterprises.
Summary of provisions
Section 1 of the bill would add a definition of "best value" to newly lettered § 103(1)(g)(1), applicable only to cities with a population of one million inhabitants or more, to allow such a city to give weight to firms certified pursuant to local law as minority- or women owned busi- nesses or as "emerging business enterprises and to the prospective bidder's record of complying with existing labor standards, maintaining harmonious labor relations, and protecting the health and safety of workers, and paying wages above a locally defined living wage.
Read the full memo (914 words)
Section 2 makes comparable amendments to the version of § 103 that will be revived if the version currently in effect (which allows for sealed bids to be submitted in electronic format) sunsets, as provided by Chap- ter 62 of the laws of 2003.
Section 3 adds a new subdivision 17 to General Municipal Law § 103 that authorizes a city with a population of one million inhabitants or more to establish capacity building programs to increase capacity of busi- nesses certified under State or local law.
Section 4 amends General Municipal Law § 103(15)(a), which currently allows the use of prequalified lists for contracts for public work, to allow prequalified lists to be used for purchase contracts by a city with a population of one million inhabitants or more.
Section 5 adds a new subdivision (7) to General Municipal Law § 104-b, which applies to procurements for goods or services that are not other- wise required to be procured pursuant to GML § 103, such as professional services. It authorizes a city with a population of one million inhabit- ants or more to adopt policies and procedures that allow for the consid- eration of a prospective contractor's record of complying with existing labor standards, maintaining harmonious labor relations, protecting the health and safety of workers and payment of wages above any locally-de- fined living wage as part of the basis for contractor selection, and that allow for a quantitative factor to be used in evaluation of bids or offers for awarding of contracts for bidders or offerers that are small businesses or certified minority or women-owned business enterprises as defined in subdivisions one, seven, fifteen and twenty of section three hundred ten of the executive law or certified pursuant to local law as minority- or women-owned business enterprises or emerging business enterprises.
Section 6 amends State Finance Law § 163(6) to authorize the State Commissioner of General Services to allow a city with a population of one million inhabitants or more to purchase commodities or services, for amounts not exceeding $200,000, without formal competitive process, from firms that are certified as minority or women owned businesses by the State, or certified pursuant to local law as minority or women owned businesses or as "emerging business enterprises."
Section 7 amends the New York City Charter to authorize the City's Procurement Policy Board to provide by rule that agencies may make procurements of goods, services, construction or construction-related services, for amounts not exceeding $200,000, without formal competitive process, from firms certified pursuant to local law as minority- or women owned businesses or as "emerging business enterprises."
Section 8 is a severability clause.
Section 9 provides for the act to take effective immediately, and provides for the amendments to the General Municipal Law contained in section 2 of the act to take effect in the event that the provision of the General Municipal Law amended by section 1 sunsets.
Existing law
This Legislation
Justification
Pursuant to local laws enacted in 2005, 2006 and 2013, New York City has established goals for participation of minority and women owned busi- nesses and emerging business enterprises (business enterprises owned by persons who are socially and economically disadvantaged) in City procurements for goods, standard services, professional services and construction. The chief method available to agencies seeking to achieve the goals is by establishing requirements that prime contractors award a percentage of a contract to subcontractors that are certified firms. The proposed amendments to the General Municipal Law, State Finance Law and New York City Charter would significantly enhance agencies' ability to pursue their goals. They will also enable the City to offer firms certi- fied by the City the same advantages that are currently available to firms certified by the State under current addition, this bill would further the public interest in ensuring compliance with existing labor standards, harmonious labor relations, and the health and safety of workers by allowing these factors to be considered in a best value anal- ysis.
Legislative history
2019 REFERRED TO SENATE CITIES
2018 REFERRED TO SENATE CITIES
2018 assembly third reading
2017 REFERRED TO SENATE CITIES
2017 passed assembly 136-5
2016 REFERRED TO SENATE LOCAL GOVERNMENT: Local Government
2016 passed assembly 140-3
2015 REFERRED TO SENATE RULES
2015 passed assembly 134-5
Fiscal implications
To be determined
Local fiscal implications
To be determined
Effective date
This act shall take effect immediately and provides that the amendments to the General Municipal Law contained in section 2 of the act to take effect in the event that the provision of the General Municipal Law amended by section 1 sunsets.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.