What's happening
This bill creates a pilot program for the Dormitory Authority to award certain contracts to small, minority-owned, and women-owned businesses.
Why it matters
Targets persistent barriers. By allowing direct contract awards to small, minority-owned, and women-owned businesses, the bill addresses ongoing difficulties these groups face in traditional bidding processes, such as lack of access to networks or resources to compete with larger firms.
Limits and safeguards. The program is capped at either $20 million or 5% of the authority’s total annual contracts, ensuring it doesn’t dominate procurement but still provides a meaningful opportunity for underrepresented businesses.
Procurement transparency and fairness. Contracts under this pilot must follow pre-established criteria and guidelines, and if there are fewer than three qualified bidders or if prices are unreasonable, the process must be restarted, aiming to balance opportunity with fiscal responsibility.
Mentorship and long-term impact. The bill encourages pairing these businesses with established mentor companies, potentially fostering sustainable growth and capacity-building beyond the pilot program’s duration.
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Who cares
Headline styles
Boost Contracts for Diverse Businesses
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Signed chap.97
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading rules cal.656
- Substituted for A7795
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 62–0
- Ordered to third reading cal.1790
- Referred to rules
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 Small Businesses
Assembly Floor Calendar · Sponsor Rodneyse Bichotte Hermelyn
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6301
2019-2020 Regular Sessions
IN SENATE
June 3, 2019
Introduced by Sen. SANDERS -- (at request of the Dormitory Authority) -read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the public authorities law, in relation to the award of contracts to small businesses, minority-owned business enterprises and women-owned business enterprises; and providing for the repeal of such provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 1678 of the public authorities law is amended by adding a new subdivision 29 to read as follows:
29. Notwithstanding any law to the contrary, to establish a pilot program for the award of contracts up the maximum dollar amount specified in paragraph (e) of this subdivision, for the procurement of goods or services from, or for the construction, reconstruction, rehabilitation or improvement of facilities by, small businesses as defined in section one hundred thirty-one of the economic development law and minority-owned and women-owned business enterprises as defined in section three hundred ten of the executive law, notwithstanding the expiration of such section pursuant to subdivision (h) of section one hundred twenty-one of chapter two hundred sixty-one of the laws of nineteen hundred eight-eight, as amended, in accordance with the following provisions:
(a) Procurements made pursuant to this subdivision shall be governed by the authority's procurement policy and guidelines adopted pursuant to section twenty-eight hundred seventy-nine of this chapter, with participation in the pilot program confined to small businesses, as defined in section one hundred thirty-one of the economic development law, and minority-owned and women-owned business enterprises, as defined in section three hundred ten of the executive law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09731-01-9
S. 6301 2
(b) Procurements made pursuant to this subdivision shall be designated as such by the authority, in its sole discretion, pursuant to pre-established criteria contained in the authority's procurement and policy guidelines described in paragraph (a) of this subdivision. Such designation shall be made prior to the advertisement and request for bids or proposals, and any such advertisement or request shall indicate this designation clearly.
(c) If the total number of parties responding and considered capable of meeting the specifications and terms of the advertisement and request for bids or proposals is less than three, or if the authority determines that acceptance of any bid or proposal will result in the payment of an unreasonable price, the authority shall reject all responses and withdraw the designation made pursuant to paragraph (b) of this subdivision.
(d) Procurements made pursuant to this subdivision may be undertaken in conjunction with section one hundred forty-seven of the state finance law authorizing a mentor-protege program to foster long-term relationships between approved mentor firms and small business concerns and minority and women-owned businesses certified pursuant to article fifteen-A of the executive law.
(e) The total value of contracts awarded pursuant to this subdivision shall not exceed the greater of twenty million dollars or five percent of the value of all contracts awarded by the authority in a given fiscal year.
§ 2. This act shall take effect immediately and shall expire July 1, 2023 when upon such date the provisions of this act shall be deemed repealed.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the public authorities law, in relation to the award of contracts to small businesses, minority-owned business enterprises and women-owned business enterprises; and providing for the repeal of such provisions upon expiration thereof
PURPOSE OF THE BILL
The bill would amend the Public Authorities Law ("PAL") to authorize the establishment by the Dormitory Authority of the State of New York ("DASNY") of a four-year procurement pilot program (the "Pilot Program") to further expand contracting opportunities for small businesses (as defined in Economic Development Law ("EDL") § 131) and minority-owned and women-owned business enterprises (as defined in Executive Law § 310), notwithstanding the expiration of said section on December 31, 2019 pursuant to L. 1988, c. 261, § 121 H).
Read the full memo (702 words)
Summary of provisions
The Pilot Program would consist of an annual amount not to exceed a total value of $20 million or 5% of the value of all DASNY construction contracts awarded in a given fiscal year.
Procurements pursuant to the Pilot Program would be undertaken in accordance with DASNY's procurement policy and guidelines (adopted pursuant to PAL § 2879), with participation in the Program reserved exclusively to small businesses (as defined in EDL § 131) and minority- owned and women-owned business enterprises (as defined in Executive Law § 310.
Allocation of procurements to the Pilot Program is to be approached flexibly. DASNY, in its sole discretion, must first determine which procurements would be made eligible under the Pilot Program. Eligible procurements must then be designated by DASNY as Pilot Program procure- ments prior to the advertisement and issuance of a request for bids or proposals. All documents used in such procurement must also indicate the Pilot Program designation.
If the total number of businesses responding to the procurement consid- ered capable of meeting the applicable specifications and terms is less than three, or if DASNY determines that acceptance will result in the payment of an unreasonable price, DASNY must reject all bids and with- draw the Pilot Program designation.
Procurements made pursuant to PAL § 1678(28) may be undertaken in conjunction with and in furtherance of State Finance Law ("SFL") § 147 authorizing a mentor-protege program to foster long-term relationships between approved mentor firms and small business concerns and minority and women-owned businesses certified pursuant to Executive Law Article 15- A.
The total value of contracts awarded pursuant to PAL § 1678(28) per fiscal year cannot exceed the greater of a total of $20 million or 5% of the value of all contracts awarded by DASNY in a given fiscal year.
The bill would become effective immediately and provide a sunset date of July 1, 2023, for the expiration of the Pilot Program.
Justification
The Pilot Program is an extension of legislative enactments designed to improve opportunities in the State procurement process for small, minor- ity and women-owned businesses:
- In 2009, the Legislature enacted SFL § 147 to authorize state authori- ties and agencies to develop mentor-protege programs to foster the development of longterm relationships between approved mentor firms, and small business concerns and minority-owned and women-owned businesses.
- In 2010, the Legislature enacted significant revisions to Executive Law Article 15A, promoting and encouraging the continued economic devel- opment of minority-and woman-owned business enterprises participating in the State procurement process.
- In 2010, the Legislature also amended PAL § 2879 to provide for discretionary purchases of goods and services not exceeding $200,000 in value, without a formal competitive process, from small business concerns or those certified as minority or women-owned business enter- prises.
This bill will expand upon the foundation of this existing legislation by: (a) creating targeted, competitive procurement opportunities that would be expected to further improve the success of small, minority- owned and women-owned businesses that contract with DASNY; and (b) fostering the development of alternative sources of reliable contractors and subcontractors ready to perform larger jobs and responsibilities through mentor-protege relationships.
Prior legislative history
This bill was previously submitted in 2018 and introduced by both houses - S.7960 Ranzenhofer/ A.11025 Rules (Bichotte).
Fiscal implications
None.
Effective date
This bill shall take effect immediately and shall expire July 1, 2023, on which date it shall be deemed repealed.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.