NY State Senate Bill 2017-S4220

Senate Bill S4220

2017-2018 Legislative Session

Authorizes political subdivisions to award public contracts to participants of a MWBE program at a cost premium not to exceed ten percent of the lowest bid

download bill text pdf

Archive: Last Bill Status - In Senate Committee Local Government 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 03, 2018	referred to local government
Feb 06, 2017	referred to local government

2017-S4220 (ACTIVE) - Details

Current Committee:: Senate Local Government
Law Section:: General Municipal Law
Laws Affected:: Amd §104-a, Gen Muni L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S3185
2011-2012: S1330
2013-2014: S416
2015-2016: S2298
2019-2020: S2247

2017-S4220 (ACTIVE) - Summary

Authorizes political subdivisions to award public contracts to participants of a minority and women owned business enterprise program at a cost premium not to exceed ten percent of the lowest bid.

2017-S4220 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S4220

 TITLE OF BILL :  An act to amend the general municipal law, in
relation to authorizing political subdivisions to award public
contracts to participants of a minority and women owned business
enterprise program at a cost premium not to exceed ten percent of the
lowest bid as an available remedy to a demonstrated disparity

 PURPOSE :

To ensure MWBE certified businesses can compete for local procurement
opportunities.

 SUMMARY OF PROVISIONS :

Amends Section 104-a of the general municipal law to provide that when
purchasing goods, services or construction for public use on contracts
less than one million a municipality may award the contract as
reasonably competitive when (1) a study has found that there is or has
been a disparity between the availability and the utilization of MWBEs
in the award of contracts by such political subdivision or district
therein; and (2) the bid does not exceed the lowest bid by more than
ten percent.

 JUSTIFICATION :

Many MWBEs are losing contracts by very small margins (a few
percentage points). Though localities like the City of New York, which
have increased its certified MWBE firms by over 40% from December 2006
to December 2007, the number of firms who win contracts remain very
low, despite the goals set forth in NYC Local law 129 and the goals
and utilization plans set forth by the individual agencies.  Due to
General Municipal Law § 103, localities cannot require agencies to
award contracts to anyone but a lowest responsible bidder. This
constrains localities from developing a stronger program that might
result in more contract awards to certified MWBEs.

As many MWBEs are losing bids by very narrow margins, legislation that
would allow the localities to give certified firms a small price
preference could help address this problem. State Finance law § 165(3)
(b) (i)already allows for such a price preference for the state
purchase of recycled goods (state agencies may purchase recycled
commodities at a cost premium not to exceed ten percent of what a
non-recycled commodity would cost or not to exceed 15% for commodities
with over 50% secondary materials generated from NY waste stream).
Legislation that mirrors STF § 165, would allow municipalities to give
certified MWBEs a small price preference when awarding qualifying
contracts.

 LEGISLATIVE HISTORY :

2013-2014 S.416: Referred to local government
2015-2016 S.2298: Referred to local government

 FISCAL IMPLICATIONS :

None to the State; local impact would depend on how the law is
implemented by a municipality.

 EFFECTIVE DATE :
This act shall take effect on the 30th day after becoming law.

2017-S4220 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4220
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             February 6, 2017
                                ___________
 
 Introduced  by  Sen.  DILAN  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the general municipal law, in  relation  to  authorizing
   political  subdivisions to award public contracts to participants of a
   minority and women owned business enterprise program at a cost premium
   not to exceed ten percent of the lowest bid as an available remedy  to
   a demonstrated disparity
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 104-a of the general municipal law, as  amended  by
 chapter 468 of the laws of 1994, is amended to read as follows:
   §  104-a.  Purchasing [of products] for public use. 1. Notwithstanding
 the provisions of section one hundred three of this  [chapter]  ARTICLE,
 when  purchasing  products the officer, board or agency of any political
 subdivision or of any district therein  charged  with  the  awarding  of
 public  contracts may, wherever recycled products meet contract specifi-
 cations and the  price  of  such  products  is  reasonably  competitive,
 purchase  such  products.  For the purpose of this [section] SUBDIVISION
 and until July first, nineteen hundred  ninety-six,  "recycled  product"
 shall  mean any product which has been manufactured from secondary mate-
 rials, as defined in subdivision one of section two hundred sixty-one of
 the economic development  law,  and  meets  secondary  material  content
 requirements  adopted  by the office of general services [under subdivi-
 sion one of section one hundred seventy-seven of the state finance  law]
 for  products  available  to the political subdivision or district under
 state contract or, if no such contract for such  product  is  available,
 any  product  which  meets  the  secondary material content requirements
 adopted by the political subdivision or district thereof with respect to
 a specific commodity procurement by  such  entity.  On  and  after  July
 first,  nineteen  hundred ninety-six, "recycled product" shall mean, for
 the purposes of this [section] SUBDIVISION, any product which  is  manu-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD09265-01-7

 S. 4220                             2
 
 factured  from  secondary  materials,  as  defined in subdivision one of
 section two hundred sixty-one of the economic development law, and which
 meets the requirements of subdivision two  of  section  27-0717  of  the
 environmental  conservation  law  and  regulations  promulgated pursuant
 thereto. For the purpose  of  this  [section]  SUBDIVISION,  "reasonably
 competitive"  shall  mean that the cost of the recycled product does not
 exceed a cost premium of ten percent above  the  cost  of  a  comparable
 product  that is not a recycled product or, if at least fifty percent of
 the secondary materials utilized in the manufacture of that product  are
 generated from the waste stream in New York state, the cost of the recy-
 cled product does not exceed a cost premium of fifteen percent above the
 cost of a comparable product that is not a recycled product.
   Whenever  such  officer,  board  or agency shall purchase or cause the
 purchase of printing on recycled paper pursuant to this section,  he  or
 she  shall  require  the  printed material to contain the official state
 recycling emblem established pursuant  to  subdivision  two  of  section
 27-0717 of the environmental conservation law and regulations promulgat-
 ed pursuant thereto if such paper has been approved by the department of
 environmental  conservation as satisfying the requirements of such stat-
 ute and regulations, or, if such paper has not been so approved, require
 the printed material to include a printed statement which indicates  the
 percentages  of pre-consumer and post-consumer recycled material content
 of such paper.
   2. NOTWITHSTANDING THE PROVISIONS OF SECTION ONE HUNDRED THREE OF THIS
 ARTICLE, WHEN PURCHASING GOODS, SERVICES OR CONSTRUCTION FOR PUBLIC USE,
 THE OFFICER, BOARD OR AGENCY OF ANY  POLITICAL  SUBDIVISION  OR  OF  ANY
 DISTRICT  THEREIN  CHARGED  WITH  THE  AWARDING OF PUBLIC CONTRACTS THAT
 EMPLOY A MINORITY OR WOMEN OWNED BUSINESS ENTERPRISE (MWBE) PROGRAM, MAY
 AWARD ANY CONTRACT VALUED AT NO MORE  THAN  ONE  MILLION  DOLLARS  TO  A
 PARTICIPANT  OF  SUCH PROGRAM EVEN IF SUCH PARTICIPANT IS NOT THE LOWEST
 BIDDER FOR SUCH CONTRACT, PROVIDED, HOWEVER THAT SUCH AWARD MAY ONLY  BE
 MADE  TO  THE  LOWEST  MWBE BID THAT IS REASONABLY COMPETITIVE.  FOR THE
 PURPOSE OF THIS SUBDIVISION, AN "MWBE PROGRAM" SHALL  BE  DEFINED  AS  A
 PROGRAM  DESIGNED TO INCREASE PARTICIPATION OF MWBES IN PUBLIC CONTRACT-
 ING THAT IS BASED ON A STUDY IN WHICH IT WAS FOUND THAT THERE IS OR  HAS
 BEEN  A  DISPARITY BETWEEN THE AVAILABILITY AND THE UTILIZATION OF MWBES
 IN THE AWARD OF CONTRACTS BY  SUCH  POLITICAL  SUBDIVISION  OR  DISTRICT
 THEREIN.  FOR  THE PURPOSE OF THIS SUBDIVISION, "REASONABLY COMPETITIVE"
 SHALL MEAN THAT THE MWBE BID DOES NOT EXCEED THE LOWEST BID BY MORE THAN
 TEN PERCENT.
   § 2. This act shall take effect on the thirtieth day  after  it  shall
 have become a law.

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