NY State Senate Bill 2015-S1115A

Senate Bill S1115A

2015-2016 Legislative Session

Provides for the awarding of state contracts for professional services under the minority and women-owned business enterprise program

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Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 12, 2016	print number 1115a
Jan 12, 2016	amend and recommit to finance
Jan 06, 2016	referred to finance
Jan 08, 2015	referred to finance

Bill Amendments

Original

A (Active)

2015-S1115 - Details

See Assembly Version of this Bill:: A6987
Current Committee:: Senate Finance
Law Section:: Executive Law
Laws Affected:: Amd §§310, 311, 312-a, 313 & 313-a, Exec L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6753, A10139
2013-2014: S118, A4454
2017-2018: S324, A2168
2019-2020: S1468

2015-S1115 - Summary

Provides for the awarding of state contracts for professional services under the minority and women-owned business enterprise program.

2015-S1115 - Sponsor Memo

                                BILL NUMBER:S1115

TITLE OF BILL:

An act to amend the executive law, in relation to including the
provision of professional services in the minority and women-owned
business enterprise program

PURPOSE:

Provides for the awarding of state contracts for professional services
under the minority and women-owned business enterprise program.

SUMMARY OF PROVISIONS:

Section 1 amends the executive law to include a definition of
professional services contract and adds a new subdivision 24 defining
professional services.

Section 2 amends the executive law to include professional services in
the annual report on state MWBE contracts.

Section 3 requires professional services be considered in future
disparity studies. Section 4 establishes agency goals for MWBE
professional services expenditures.

Section 5 establishes that professional services be considered in
relevant future rules and regulations.

Section 6 establishes an effective date.

JUSTIFICATION:

Historically, businesses owned by women and minorities have been
subjected to a pattern of systematic discrimination that has stunted
their growth and left fledgling enterprises without an adequate
network of established support. While New York has taken great strides
to remedy this historic disparity, there is much work left to do.

In 1988, Article 15-A of the Executive Law created what is now the
Division of Minority and Women's Business Development (the
"Division"). The goal was to promote equality of economic
opportunities for minority and/or women owned business enterprises
("MWBEs") and to eliminate barriers to their participation in state
contracts.

While the Division's work helped foster a marked improvement, the
State was compelled to redouble its efforts in the wake of a 2006
study demonstrating a still significant disparity in the awarding of
public contracts. By the 2009-2010 fiscal year, this renewed effort
helped bring New York's discretionary spending total on contracts with
MWBEs to more than $9 Billion.

However, this incredible progress has been largely achieved through
procurement and construction service contracts without sufficient
attention to contracts for professional services such as architecture,
accounting, legal services and financial planning.  Diversification of


contracts for professional services, which are among the most
well-compensated, prestigious and stable fields, must be a cornerstone
of a truly effective MWBE Program.

In spite of widespread commitment to the advancement of diversity
initiatives, both publicly and in the private sector, white women and
employees of color continue to be under-represented in the
professions. For instance, less than 10% of all licensed attorneys in
the U.S. are people of color. One possible explanation for this
under-representation is the "pipeline theory," which posits that
stagnation is partially attributable to the limited availability of
similarly situated role models and dearth of access to professional
development opportunities. This legislation would help ensure that the
state plays a vital role in the encouragement of burgeoning women and
minority owned professional service enterprises.

LEGISLATIVE HISTORY:

2013-2014 - S.118
2011-12: S.6753

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

This act shall take effect on the first of January next succeeding the
date on which it shall have become a law; provided that the amendments
to article 15-A of the executive law made by sections one, two, three,
four and five of this act, shall not affect the expiration of such
article and shall expire therewith. Provided, further, that, effective
immediately, any rules and regulations necessary to implement the
provisions of this act on its effective date are authorized and
directed to be completed on or before such date.

2015-S1115 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1115

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             January 8, 2015
                               ___________

Introduced  by  Sen. PERALTA -- 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  including  the
  provision  of  professional  services  in the minority and women-owned
  business enterprise program

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivision  13  of  section 310 of the executive law, as
amended by chapter 506 of the laws of 2009, is amended and a new  subdi-
vision 24 is added to read as follows:
  13.  "State  contract" shall mean: (a) a written agreement or purchase
order instrument, providing for a total expenditure in excess  of  twen-
ty-five  thousand  dollars, whereby a contracting agency is committed to
expend or does expend funds in return for labor, services including  but
not  limited  to  legal,  financial  and  other  professional  services,
supplies, equipment, materials or any combination of the  foregoing,  to
be  performed  for,  or rendered or furnished to the contracting agency;
(b) A WRITTEN AGREEMENT, PROVIDING FOR A TOTAL EXPENDITURE IN EXCESS  OF
FIVE  THOUSAND  DOLLARS,  WHEREBY  A  CONTRACTING AGENCY IS COMMITTED TO
EXPEND OR DOES EXPEND FUNDS IN RETURN FOR PROFESSIONAL  SERVICES  TO  BE
PERFORMED FOR, OR RENDERED OR FURNISHED TO THE CONTRACTING AGENCY; (C) a
written  agreement  in  excess of one hundred thousand dollars whereby a
contracting agency is committed to expend or does expend funds  for  the
acquisition,  construction,  demolition,  replacement,  major  repair or
renovation of real property and improvements thereon; and  [(c)]  (D)  a
written  agreement in excess of one hundred thousand dollars whereby the
owner of a state assisted housing project is committed to expend or does
expend funds for the acquisition, construction, demolition, replacement,
major repair or renovation of real property and improvements thereon for
such project.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00346-01-5

S. 1115                             2

  24. "PROFESSIONAL SERVICES" SHALL MEAN THE PROVISION  OF  SERVICE  FOR
WHICH  THE PROVIDER OF SUCH SERVICE IS REQUIRED TO HOLD A LICENSE ISSUED
PURSUANT TO TITLE EIGHT OF THE EDUCATION LAW OR ARTICLE FIFTEEN  OF  THE
JUDICIARY LAW.
  S  2.   Paragraphs (d), (e) and (f) of subdivision 3 of section 311 of
the executive law, paragraphs (d) and (e) as amended by  chapter  55  of
the  laws  of 1992 and paragraph (f) as added by chapter 261 of the laws
of 1988, are amended to read as follows:
  (d) to review  periodically  the  practices  and  procedures  of  each
contracting  agency  with  respect  to compliance with the provisions of
this article, and to require them to  file  periodic  reports  with  the
division of minority and women's business development as to the level of
minority  and  women-owned  business  enterprises  participation  in the
awarding of agency contracts for goods [and], services AND  PROFESSIONAL
SERVICES;
  (e)  on  January  first  of  each  year report to the governor and the
chairpersons of the senate finance and assembly ways and  means  commit-
tees  on  the  level  of  minority  and women-owned business enterprises
participating in each agency's contracts for goods [and],  services  AND
PROFESSIONAL SERVICES and on activities of the office and effort by each
contracting  agency  to promote employment of minority group members and
women, and to promote and increase participation by certified businesses
with respect to state contracts and subcontracts so as to facilitate the
award of a fair share of state contracts to such businesses.  The  comp-
troller  shall  assist  the  division  in  collecting information on the
participation of certified business for each  contracting  agency.  Such
report  may  recommend  new  activities  and  programs to effectuate the
purposes of this article;
  (f) to prepare and update periodically a directory of certified minor-
ity and women-owned business enterprises which shall, wherever practica-
ble,  be  divided  into  categories  of  labor,  services,  PROFESSIONAL
SERVICES,  supplies,  equipment,  materials  and recognized construction
trades and which shall indicate areas or locations of  the  state  where
such enterprises are available to perform services;
  S  3. Paragraph (a) of subdivision 1 of section 312-a of the executive
law, as amended by chapter 175 of the laws of 2010, is amended  to  read
as follows:
  (a)  to  determine  whether there is a disparity between the number of
qualified minority and women-owned businesses ready, willing and able to
perform state contracts for commodities, services, PROFESSIONAL SERVICES
and construction, and the number of such contractors actually engaged to
perform such contracts, and to determine what changes, if any, should be
made to state  policies  affecting  minority  and  women-owned  business
enterprises; and
  S  4.  Paragraphs  (j)  and (k) of subdivision 1 of section 313 of the
executive law, as added by chapter 175 of the laws of 2010, are  amended
and two new paragraphs (l) and (m) are added to read as follows:
  (j)  overall  agency  total  dollar value of procurement for certified
women-owned business  enterprises:  twelve  and  thirty-nine  hundredths
percent; [and]
  (k)  overall  agency  total  dollar value of procurement for certified
minority, women-owned business enterprises: twenty-eight and  ninety-two
hundredths percent[.];
  (L) PROFESSIONAL SERVICES FOR CERTIFIED MINORITY-OWNED BUSINESS ENTER-
PRISES: FIFTEEN PERCENT; AND

S. 1115                             3

  (M)  PROFESSIONAL  SERVICES  FOR CERTIFIED WOMEN-OWNED BUSINESS ENTER-
PRISES: FIFTEEN PERCENT.
  S  5.  Section  313-a of the executive law, as added by chapter 175 of
the laws of 2010, is amended to read as follows:
  S 313-a. Diversity practices of state contractors. The director  shall
promulgate  rules  and regulations setting forth measures and procedures
to require all contracting agencies,  where  practicable,  feasible  and
appropriate, to assess the diversity practices of contractors submitting
bids or proposals in connection with the award of a state contract. Such
rules  and regulations shall take into account: the nature of the labor,
services, PROFESSIONAL SERVICES, supplies, equipment or materials  being
procured  by  the state agency; the method of procurement required to be
used by a state agency to award the contract  and  minority  and  women-
owned  business  utilization  plans required to be submitted pursuant to
sections three hundred twelve and three hundred thirteen of  this  arti-
cle;  and such other factors as the director deems appropriate or neces-
sary to promote the award of state contracts to contractors having sound
diversity practices. Such assessment shall not in  any  way  permit  the
automatic  rejection  of a bid or procurement contract proposal based on
lack of adherence to diversity practices. Each bid or proposal shall  be
analyzed  on  an  individual  per  bid  or  per  proposal basis with the
contractor's diversity practices considered as only a part  of  a  wider
consideration  of  several  factors when deciding to award or decline to
award a bid or proposal. The director shall develop the rules and  regu-
lations  required  hereunder  only  after  consultation  with  the state
procurement council established by section one hundred sixty-one of  the
state finance law.
  S  6. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become  a  law;  provided  that  the
amendments  to  article  15-A of the executive law made by sections one,
two, three, four and five of this act, shall not affect  the  expiration
of  such  article  and  shall expire therewith. Provided, further, that,
effective immediately, any rules and regulations necessary to  implement
the  provisions  of  this  act  on its effective date are authorized and
directed to be completed on or before such date.

2015-S1115A (ACTIVE) - Details

See Assembly Version of this Bill:: A6987
Current Committee:: Senate Finance
Law Section:: Executive Law
Laws Affected:: Amd §§310, 311, 312-a, 313 & 313-a, Exec L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6753, A10139
2013-2014: S118, A4454
2017-2018: S324, A2168
2019-2020: S1468

2015-S1115A (ACTIVE) - Summary

Provides for the awarding of state contracts for professional services under the minority and women-owned business enterprise program.

2015-S1115A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S1115A

 TITLE OF BILL :  An act to amend the executive law, in relation to
including the provision of professional services in the minority and
women-owned business enterprise program

 PURPOSE :

Provides for the awarding of state contracts for professional services
under the minority and women-owned business enterprise program.

 SUMMARY OF PROVISIONS :

Section 1 amends the executive law to include a definition of
professional services contract and adds a new subdivision 23 defining
professional services.

Section 2 amends the executive law to include professional services in
the annual report on state MWBE contracts.

Section 3 requires professional services be considered in future
disparity studies. Section 4 establishes agency goals for MWBE
professional services expenditures.

Section 5 establishes that professional services be considered in
relevant future rules and regulations.

Section 6 establishes an effective date.

 JUSTIFICATION :

Historically, businesses owned by women and minorities have been
subjected to a pattern of systematic discrimination that has stunted
their growth and left fledgling enterprises without an adequate
network of established support. While New York has taken great strides
to remedy this historic disparity, there is much work left to do.

In 1988, Article 15-A of the Executive Law created what is now the
Division of Minority and Women's Business Development (the
"Division"). The goal was to promote equality of economic
opportunities for minority and/or women owned business enterprises
("MWBEs") and to eliminate barriers to their participation in state
contracts.

While the Division's work helped foster a marked improvement, the
State was compelled to redouble its efforts in the wake of a 2006
study demonstrating a still significant disparity in the awarding of
public contracts. By the 2009-2010 fiscal year, this renewed effort
helped bring New York's discretionary spending total on contracts with
MWBEs to more than $9 Billion.

However, this incredible progress has been largely achieved through
procurement and construction service contracts without sufficient
attention to contracts for professional services such as architecture,
accounting, legal services and financial planning.  Diversification of
contracts for professional services, which are among the most
well-compensated, prestigious and stable fields, must be a cornerstone
of a truly effective MWBE Program.

In spite of widespread commitment to the advancement of diversity
initiatives, both publicly and in the private sector, white women and
employees of color continue to be under-represented in the
professions. For instance, less than 10% of all licensed attorneys in
the U.S. are people of color. One possible explanation for this
under-representation is the "pipeline theory," which posits that
stagnation is partially attributable to the limited availability of
similarly situated role models and dearth of access to professional
development opportunities. This legislation would help ensure that the
state plays a vital role in the encouragement of burgeoning women and
minority owned professional service enterprises.

 LEGISLATIVE HISTORY :

2013-2014 - S.118
2011-12: S.6753

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law; provided that the amendments
to article 15-A of the executive law made by sections one, two, three,
four and five of this act, shall not affect the expiration of such
article and shall expire therewith. Provided, further, that, effective
immediately, any rules and regulations necessary to implement the
provisions of this act on its effective date are authorized and
directed to be completed on or before such date.

2015-S1115A (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 1115--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             January 8, 2015
                               ___________

Introduced  by  Sen. PERALTA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Finance -- recommitted  to
  the  Committee  on Finance in accordance with Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT  to  amend  the  executive  law,  in  relation  to including the
  provision of professional services in  the  minority  and  women-owned
  business enterprise program

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 13 of section 310  of  the  executive  law,  as
amended  by chapter 506 of the laws of 2009, is amended and a new subdi-
vision 24 is added to read as follows:
  13. "State contract" shall mean: (a) a written agreement  or  purchase
order  instrument,  providing for a total expenditure in excess of twen-
ty-five thousand dollars, whereby a contracting agency is  committed  to
expend  or does expend funds in return for labor, services including but
not  limited  to  legal,  financial  and  other  professional  services,
supplies,  equipment,  materials or any combination of the foregoing, to
be performed for, or rendered or furnished to  the  contracting  agency;
(b)  A WRITTEN AGREEMENT, PROVIDING FOR A TOTAL EXPENDITURE IN EXCESS OF
FIVE THOUSAND DOLLARS, WHEREBY A  CONTRACTING  AGENCY  IS  COMMITTED  TO
EXPEND  OR  DOES  EXPEND FUNDS IN RETURN FOR PROFESSIONAL SERVICES TO BE
PERFORMED FOR, OR RENDERED OR FURNISHED TO THE CONTRACTING AGENCY; (C) a
written agreement in excess of one hundred thousand  dollars  whereby  a
contracting  agency  is committed to expend or does expend funds for the
acquisition, construction,  demolition,  replacement,  major  repair  or
renovation  of  real  property and improvements thereon; and [(c)] (D) a
written agreement in excess of one hundred thousand dollars whereby  the
owner of a state assisted housing project is committed to expend or does
expend funds for the acquisition, construction, demolition, replacement,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00346-02-6

S. 1115--A                          2

major repair or renovation of real property and improvements thereon for
such project.
  24.  "PROFESSIONAL  SERVICES"  SHALL MEAN THE PROVISION OF SERVICE FOR
WHICH THE PROVIDER OF SUCH SERVICE IS REQUIRED TO HOLD A LICENSE  ISSUED
PURSUANT  TO  TITLE EIGHT OF THE EDUCATION LAW OR ARTICLE FIFTEEN OF THE
JUDICIARY LAW.
  S 2.  Paragraphs (d), (e) and (f) of subdivision 3 of section  311  of
the  executive  law,  paragraphs (d) and (e) as amended by chapter 55 of
the laws of 1992 and paragraph (f) as added by chapter 261 of  the  laws
of 1988, are amended to read as follows:
  (d)  to  review  periodically  the  practices  and  procedures of each
contracting agency with respect to compliance  with  the  provisions  of
this  article,  and  to  require  them to file periodic reports with the
division of minority and women's business development as to the level of
minority and  women-owned  business  enterprises  participation  in  the
awarding  of agency contracts for goods [and], services AND PROFESSIONAL
SERVICES;
  (e) on January first of each year  report  to  the  governor  and  the
chairpersons  of  the senate finance and assembly ways and means commit-
tees on the level  of  minority  and  women-owned  business  enterprises
participating  in  each agency's contracts for goods [and], services AND
PROFESSIONAL SERVICES and on activities of the office and effort by each
contracting agency to promote employment of minority group  members  and
women, and to promote and increase participation by certified businesses
with respect to state contracts and subcontracts so as to facilitate the
award  of  a fair share of state contracts to such businesses. The comp-
troller shall assist the  division  in  collecting  information  on  the
participation  of  certified  business for each contracting agency. Such
report may recommend new  activities  and  programs  to  effectuate  the
purposes of this article;
  (f) to prepare and update periodically a directory of certified minor-
ity and women-owned business enterprises which shall, wherever practica-
ble,  be  divided  into  categories  of  labor,  services,  PROFESSIONAL
SERVICES, supplies, equipment,  materials  and  recognized  construction
trades  and  which  shall indicate areas or locations of the state where
such enterprises are available to perform services;
  S 3. Paragraph (a) of subdivision 1 of section 312-a of the  executive
law,  as  amended  by  section  1 of part Q of chapter 58 of the laws of
2015, is amended to read as follows:
  (a) to determine whether there is a disparity between  the  number  of
qualified minority and women-owned businesses ready, willing and able to
perform state contracts for commodities, services, PROFESSIONAL SERVICES
and construction, and the number of such contractors actually engaged to
perform such contracts, and to determine what changes, if any, should be
made  to  state  policies  affecting  minority  and women-owned business
enterprises; and
  S 4. Paragraphs (j) and (k) of subdivision 1 of  section  313  of  the
executive  law, as added by chapter 175 of the laws of 2010, are amended
and two new paragraphs (l) and (m) are added to read as follows:
  (j) overall agency total dollar value  of  procurement  for  certified
women-owned  business  enterprises:  twelve  and  thirty-nine hundredths
percent; [and]
  (k) overall agency total dollar value  of  procurement  for  certified
minority,  women-owned business enterprises: twenty-eight and ninety-two
hundredths percent[.];

S. 1115--A                          3

  (L) PROFESSIONAL SERVICES FOR CERTIFIED MINORITY-OWNED BUSINESS ENTER-
PRISES: FIFTEEN PERCENT; AND
  (M)  PROFESSIONAL  SERVICES  FOR CERTIFIED WOMEN-OWNED BUSINESS ENTER-
PRISES: FIFTEEN PERCENT.
  S 5. Section 313-a of the executive law, as added by  chapter  175  of
the laws of 2010, is amended to read as follows:
  S  313-a. Diversity practices of state contractors. The director shall
promulgate rules and regulations setting forth measures  and  procedures
to  require  all  contracting  agencies, where practicable, feasible and
appropriate, to assess the diversity practices of contractors submitting
bids or proposals in connection with the award of a state contract. Such
rules and regulations shall take into account: the nature of the  labor,
services,  PROFESSIONAL SERVICES, supplies, equipment or materials being
procured by the state agency; the method of procurement required  to  be
used  by  a  state  agency to award the contract and minority and women-
owned business utilization plans required to be  submitted  pursuant  to
sections  three  hundred twelve and three hundred thirteen of this arti-
cle; and such other factors as the director deems appropriate or  neces-
sary to promote the award of state contracts to contractors having sound
diversity  practices.  Such  assessment  shall not in any way permit the
automatic rejection of a bid or procurement contract proposal  based  on
lack  of adherence to diversity practices. Each bid or proposal shall be
analyzed on an individual  per  bid  or  per  proposal  basis  with  the
contractor's  diversity  practices  considered as only a part of a wider
consideration of several factors when deciding to award  or  decline  to
award  a bid or proposal. The director shall develop the rules and regu-
lations required  hereunder  only  after  consultation  with  the  state
procurement  council established by section one hundred sixty-one of the
state finance law.
  S 6. This act shall take effect on the first of January next  succeed-
ing  the  date  on  which  it shall have become a law; provided that the
amendments to article 15-A of the executive law made  by  sections  one,
two,  three,  four and five of this act, shall not affect the expiration
of such article and shall expire  therewith.  Provided,  further,  that,
effective  immediately, any rules and regulations necessary to implement
the provisions of this act on its  effective  date  are  authorized  and
directed to be completed on or before such date.

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