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S1218Senate2025-2026 SessionSame asA333

Boost MWBE State Contracts

Official title

“Directs contracting state agencies to develop a growth plan in order to increase participation of MWBEs with respect to state contracts and subcontracts”

Sponsor Jamaal BaileySD-36+1 co-sponsorAffects Legal
Status
Vetoed
Impact
6/10
Moderate
Outcome
Vetoed

Bill progress

Vetoed

What's happening

This bill requires New York state agencies to create more detailed three-year plans to increase minority- and women-owned business participation in state contracts.

Why it matters

  1. Requires agencies to provide detailed analyses. of their discretionary spending practices, specifically how much of this spending goes to minority- and women-owned businesses, which could expose gaps and opportunities in current procurement processes.

  2. Mandates that agencies examine and recommend improvements. in how they use resources from the Empire State Development Corporation and related divisions, potentially leading to easier access and more effective support for MWBEs (Minority- and Women-Owned Business Enterprises).

  3. Forces agencies to address barriers to MWBE participation. , including how they debrief unsuccessful MWBE bidders and strategies to help these businesses grow capacity to compete for larger contracts, which could foster more equitable competition and business development.

  4. Requires transparency about contract waivers. when and why agencies grant exceptions to MWBE participation goals—and obligates agencies to outline steps to reduce reliance on such waivers, pointing to a push for greater accountability in achieving diversity targets.

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Who cares

Headline styles

Boost MWBE State Contracts

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Jamaal Bailey

Senator · Senate District 36

Chair, Insurance

1 Co-sponsor

History

  1. Vetoed memo.111
  2. Delivered to governor
  3. Returned to senate
  4. Passed assembly
  5. Ordered to third reading rules cal.280
  6. Substituted for A333
  7. Referred to governmental operations
  8. Delivered to assembly
  9. Passed senateVote 47–10
  10. Advanced to third reading
  11. 2nd report cal.
  12. 1st report cal.556
Show 1 earlier action
  1. Referred to procurement and contracts

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.

A333Assembly

Grow MWBE State Contracting

Assembly Floor Calendar · Sponsor Catalina Cruz

Impact 6 · Moderate37% to pass

Full text

2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

1218

2025-2026 Regular Sessions

IN SENATE

January 8, 2025

Introduced by Sens. BAILEY, WEBB -- read twice and ordered printed, and when printed to be committed to the Committee on Procurement and Contracts

AN ACT to amend the executive law, in relation to directing contracting state agencies to develop a growth plan in order to increase participation of MWBEs with respect to state contracts and subcontracts

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Paragraph (d-1) of subdivision 3 of section 311 of the executive law, as added by chapter 96 of the laws of 2019, is amended to read as follows:

(d-1) to require all contracting state agencies to develop a [fouryear] three-year growth plan to determine a means of promoting and increasing participation by minority-owned and women-owned business enterprises with respect to state contracts and subcontracts. Every [four] three years, beginning September fifteenth, two thousand twenty, each contracting state agency shall submit a [four-year] three-year growth plan as part of its annual report to the governor and legislature pursuant to section one hundred sixty-four of this chapter. Such growth plans shall include, but not be limited to, an analysis of the contracting agency's use of discretionary buying in accordance with subdivision six of section one hundred sixty-three of the state finance law and what percentage of total commodities and service purchases within the discretionary buying dollar threshold are awarded to certified minority-owned and women-owned business enterprises pursuant to that authorization and whether this authorization can be used to increase participation by minority-owned and women-owned business enterprises, an analysis of how the contracting agency can use the empire state development corporation's and the division's resources to facilitate additional minority-owned and women-owned business enterprise participation and any recommendations for programmatic modifications that would make those

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD01228-01-5

resources easier to use, an analysis of what steps the contracting agency plans to take to improve minority-owned and women-owned business enterprise capacity to participate in additional contracts and become viable bidders for larger contracts, an explanation of how the contracting agency is debriefing minority-owned and women-owned business enterprises that lose bids and how that process can improve, and an analysis of the types of contracts where waivers are being granted and steps the state can take to reduce the need for waivers over the course of the growth plan.

§ 2. Subdivision 5 of section 315 of the executive law, as amended by chapter 96 of the laws of 2019, is amended to read as follows:

5. Each agency shall include in its annual report to the governor and legislature pursuant to section one hundred sixty-four of this chapter: (a) its annual goals for contracts with minority-owned and women-owned business enterprises; (b) the number of actual contracts issued to minority-owned and women-owned business enterprises; (c) a summary of all waivers of the requirements of subdivisions six and seven of section three hundred thirteen of this article allowed by the reporting agency during the preceding year, including a description of the basis of the waiver request and the rationale for granting such waiver; (d) whether or not it has been required to prepare a remedial plan, and, if so, the plan and the extent to which the agency has complied with each element of the plan; (e) which expenditures are exempt from participation goals and the rationale for such exemption; and (f) every [four] three years, beginning September fifteenth, two thousand twenty, each agency shall include in such annual report its [four-year] three-year growth plan pursuant to section three hundred eleven of this article.

§ 3. This act shall take effect on the ninetieth day after it shall have become a law; provided, however, the amendments to sections 311 and 315 of the executive law made by sections one and two of this act respectively, shall not affect the repeal of such sections and shall 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 executive law, in relation to directing contracting state agencies to develop a growth plan in order to increase partic- ipation of MWBEs with respect to state contracts and subcontracts

Purpose

This bill increases Minority and Women-Owned Business Enterprise partic- ipation in state contracts by requiring state agencies to develop a three-year growth plan that determines ways that most effectively allow for this increase to occur.

Summary of provisions

The bill requires all contracting state agencies to develop a three-year growth plan to determine a means of promoting MWBE participation, and to then submit it to the Governor and the Legislature as part of New York State's yearly annual report. Among other things, the growth plan will include an analysis of the contracting agency's use of discretionary buying, an analysis of how the contracting agency can use the empire state development corporation and the division's resources to facilitate additional MWBE-owned enterprise participation in contracting, an analy- sis of what steps the contracting agency plans to improve MWBE's so they can bid for larger contracts, an explanation of how the contracting agency is debriefing MWBE's that lose bids and how their bidding process can improve, and an analysis of the types of contracts where waivers are being granted and steps the state can take to reduce the need for waiv- ers over the course of the growth plan. This report should also specify the number of actual contracts issues to MWEE's for that year.

Justification

To achieve the proposed MWBE goals previously outlined by Governor Hochul, it is critical that each agency produces a publicly known plan of action on how it will achieve MWBE funding and procurement. Such a plan should include recommendations for outreach, funding support, training and development, joint venture collaboration, and calendars. The plan needs to be submitted and approved by the appropriate legisla- tive committees impacted by said agency to ensure that it is a viable plan of action to achieve MWEE participation and success.

Legislative history

2021-22: Passes Senate

2023-24: Passed Senate

Fiscal implications

To be determined.

Local fiscal implications

None.

Effective date

Ninety days after becoming a law, with provisions.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.