S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6513
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 30, 2017
                                ___________
 
 Introduced by Sens. ALCANTARA, SAVINO -- read twice and ordered printed,
   and when printed to be committed to the Committee on Cities
 
 AN ACT to amend the general municipal law, the New York city charter and
   the administrative code of the city of New York, in relation to oppor-
   tunities  for  small  businesses,  minority  and  women-owned business
   enterprises and emerging business enterprises
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  general  municipal  law  is  amended by adding a new
 section 103-h to read as follows:
   § 103-H. MENTORING PROGRAM. 1. A CITY WITH A POPULATION OF ONE MILLION
 OR MORE INHABITANTS, AND ANY DISTRICT, BOARD OR AGENCY WITH JURISDICTION
 EXCLUSIVELY THEREIN, MAY ESTABLISH A MENTORING PROGRAM FOR  SMALL  BUSI-
 NESSES  IN  THE  CONSTRUCTION  TRADES  AND  PROFESSIONAL  SERVICES.   IN
 CONNECTION THEREWITH, THE CITY, DISTRICT, BOARD OR AGENCY MAY  DETERMINE
 THE  CRITERIA  PURSUANT  TO  WHICH A BUSINESS SHALL BE ELIGIBLE FOR, AND
 SELECTED AS, A MENTEE BUSINESS PARTICIPATING IN THE  COMPONENTS  OF  THE
 PROGRAM  UNDER  PARAGRAPH  C  OF  SUBDIVISION  FIVE OF THIS SECTION, THE
 NUMBER OF MENTEE BUSINESSES TO PARTICIPATE IN EACH SUCH COMPONENT OF THE
 PROGRAM, THE CRITERIA FOR THE COMPETITIVE SELECTION OF  THE  FIRMS  THAT
 WILL PROVIDE MENTORING SERVICES, THE ASSIGNMENT OF A MENTOR TO A SPECIF-
 IC MENTEE BUSINESS, AND THE FUNDING FOR THE PROGRAM.
   2. SUCH A CITY, DISTRICT, BOARD OR AGENCY IS AUTHORIZED, NOTWITHSTAND-
 ING ANY OTHER PROVISION OF LAW;
   A.  TO  DESIGNATE  WHICH ELIGIBLE CONTRACTS SHALL BE MENTORING PROGRAM
 CONTRACTS UNDER SUBPARAGRAPHS ONE AND TWO OF PARAGRAPH C OF  SUBDIVISION
 FIVE OF THIS SECTION, RESPECTIVELY;
   B.  TO ESTABLISH STANDARDS FOR QUALIFYING MENTEE BUSINESSES TO COMPETE
 FOR A MENTORING PROGRAM CONTRACT, PROVIDED THAT NO LESS THAN THREE QUAL-
 IFIED MENTEE BUSINESSES IN THE PROGRAM MUST SUBMIT RESPONSIVE OFFERS  TO
 PERFORM THE CONTRACT;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11891-02-7

 S. 6513                             2
 
   C.  TO  DETERMINE  WHEN  BIDS  OR  PROPOSALS  FOR  A MENTORING PROGRAM
 CONTRACT SHOULD BE RESTRICTED TO MENTEE BUSINESSES THAT,  PRIOR  TO  THE
 RECEIPT OF BIDS OR PROPOSALS, HAVE BEEN QUALIFIED FOR SUCH COMPETITION;
   D.  TO  COMPETITIVELY  SELECT, DESIGNATE AND CONTRACT WITH ONE OR MORE
 EXPERIENCED FIRMS THAT, UNDER THE GENERAL SUPERVISION OF THE CONTRACTING
 AGENCY, WILL PROVIDE MENTORING SERVICES TO THE MENTEE BUSINESSES, AND TO
 ASSIGN SUCH MENTORS ONE OR MORE DESIGNATED MENTEE BUSINESSES;
   E. TO ASSIST  MENTEE  BUSINESSES  THAT  HAVE  BEEN  AWARDED  MENTORING
 PROGRAM  CONTRACTS  TO  OBTAIN  ANY SURETY BOND OR CONTRACT OF INSURANCE
 REQUIRED OF THEM IN CONNECTION WITH SUCH CONTRACT ONLY,  NOTWITHSTANDING
 ANY PROVISION OF SECTION TWO THOUSAND FIVE HUNDRED FOUR OF THE INSURANCE
 LAW TO THE CONTRARY; AND
   F. IN ADDITION TO THE BENEFITS OF SUCH PROGRAM AND NOTWITHSTANDING ANY
 OTHER  PROVISION  OF LAW, TO PROVIDE MENTEE BUSINESSES TECHNICAL ASSIST-
 ANCE IN OBTAINING BID, PAYMENT AND  PERFORMANCE  BONDING  FOR  CONTRACTS
 THAT  ARE  NOT MENTORING PROGRAM CONTRACTS, FOR WHICH THE BUSINESSES ARE
 OTHERWISE QUALIFIED.
   3. IF THE TOTAL NUMBER OF QUALIFIED MENTEE BUSINESSES THAT RESPOND  TO
 A  COMPETITION  AND ARE CONSIDERED CAPABLE OF MEETING THE SPECIFICATIONS
 AND TERMS OF THE INVITATION TO COMPETE IS LESS THAN  THREE,  OR  IF  THE
 CONTRACTING  AGENCY  DETERMINES  THAT  ACCEPTANCE OF THE BEST OFFER WILL
 RESULT IN THE PAYMENT OF AN UNREASONABLE PRICE, THE  CONTRACTING  AGENCY
 MAY  REJECT ALL OFFERS AND WITHDRAW THE DESIGNATION OF THE CONTRACT AS A
 MENTORING PROGRAM CONTRACT. IF  THE  CONTRACTING  AGENCY  WITHDRAWS  THE
 DESIGNATION  OF THE CONTRACT AS A MENTORING PROGRAM CONTRACT, THE MENTEE
 BUSINESSES, IF ANY, THAT MADE OFFERS SHALL BE NOTIFIED.
   4. A MENTOR SHALL PROVIDE SERVICES AND ASSISTANCE TO A MENTEE BUSINESS
 AS DESIGNATED BY THE CITY, DISTRICT, BOARD OR AGENCY, WHICH MAY  INCLUDE
 THE FOLLOWING:
   A.  PROVIDE  BUSINESS  TRAINING  IN  THE SKILLS NECESSARY TO OPERATE A
 SUCCESSFUL BUSINESS AND TO COMPETE FOR AND PERFORM A CONTRACT;
   B. PROVIDE TECHNICAL ASSISTANCE TO THE MENTEE BUSINESS TO  ASSESS  THE
 OUTCOME  IF  THE  MENTEE  BUSINESS  COMPETES  FOR, BUT IS NOT AWARDED, A
 CONTRACT;
   C. IF THE MENTORING PROGRAM CONTRACT IS AWARDED TO  THE  MENTEE  BUSI-
 NESS,  PROVIDE  GUIDANCE,  ADVICE AND TECHNICAL ASSISTANCE TO THE MENTEE
 BUSINESS IN THE PERFORMANCE OF THE CONTRACT; AND
   D. PROVIDE OTHER TECHNICAL ASSISTANCE TO THE MENTEE BUSINESS TO FACIL-
 ITATE LEARNING, TRAINING AND OTHER ISSUES WHICH MAY ARISE.
   5. AS USED IN THIS SECTION:
   A. "SMALL BUSINESS" MEANS A BUSINESS WHICH (1) IS INDEPENDENTLY  OWNED
 AND  OPERATED; (2) HAS ANNUAL REVENUES NOT EXCEEDING A FISCAL LIMITATION
 OF FIVE MILLION DOLLARS OR SUCH LESSER  AMOUNT  AS  ESTABLISHED  BY  THE
 CITY,  DISTRICT, BOARD OR AGENCY PURSUANT TO THIS SECTION; AND (3) MEETS
 ADDITIONAL CRITERIA AS OTHERWISE  ESTABLISHED  BY  THE  CITY,  DISTRICT,
 BOARD OR AGENCY.
   B.  "MENTORING  PROGRAM  CONTRACT"  MEANS A CONTRACT DESIGNATED BY THE
 CITY, DISTRICT, BOARD OR AGENCY, IN AN ESTIMATED AMOUNT OF NOT MORE THAN
 ONE MILLION DOLLARS FOR CONTRACTS UNDER SUBPARAGRAPH ONE OF PARAGRAPH  C
 OF  THIS  SUBDIVISION  AND  THREE  MILLION  DOLLARS  FOR CONTRACTS UNDER
 SUBPARAGRAPH TWO OF SUCH PARAGRAPH, FOR WHICH BIDS OR PROPOSALS  ARE  TO
 BE  INVITED  AND  ACCEPTED ONLY FROM BUSINESSES THAT ARE ENROLLED IN THE
 MENTORING PROGRAM AND HAVE BEEN SELECTED BY THE  CONTRACTING  AGENCY  TO
 COMPETE FOR THE CONTRACT.
   C.  "MENTORING  PROGRAM"  IS  A  PROGRAM  ESTABLISHED PURSUANT TO THIS
 SECTION TO PROVIDE MENTEE BUSINESSES WITH THE OPPORTUNITY:

 S. 6513                             3
 
   (1) FOR UP TO FOUR YEARS,  TO  COMPETE  FOR  AND,  WHERE  AWARDED,  TO
 PERFORM  CERTAIN  CONTRACTS  DESIGNATED  FOR  INCLUSION IN THE MENTORING
 PROGRAM, WITH THE ASSISTANCE OF A  COMPETITIVELY  SELECTED  MENTOR  FIRM
 THAT  HAS EXTENSIVE MANAGEMENT AND MENTORING EXPERIENCE, WITH THE MENTOR
 PROVIDING  THE  MENTEE  BUSINESS WITH ADVICE AND ASSISTANCE IN COMPETING
 FOR AND MANAGING CONTRACTS; AND
   (2) FOR A MENTEE BUSINESS THAT THE CITY, DISTRICT, BOARD OR AGENCY HAS
 DETERMINED HAS SUCCESSFULLY COMPLETED THE PROGRAM UNDER SUBPARAGRAPH ONE
 OF THIS PARAGRAPH, FOR UP TO FOUR ADDITIONAL YEARS, TO BE PROVIDED:  (A)
 ADDITIONAL  OPPORTUNITIES  TO COMPETE WITH OTHER DESIGNATED MENTEE BUSI-
 NESSES IN THE PROGRAM FOR CERTAIN CONTRACTS TO BE DESIGNATED FOR  INCLU-
 SION  UNDER  THIS  SUBPARAGRAPH  AND,  WHERE  AWARDED,  TO  PERFORM SUCH
 CONTRACTS, WITH THE  FURTHER  ASSISTANCE  OF  A  COMPETITIVELY  SELECTED
 MENTOR FIRM THAT HAS EXTENSIVE MANAGEMENT AND MENTORING EXPERIENCE; WITH
 THE  MENTOR PROVIDING THE MENTEE WITH ADVICE AND TECHNICAL ASSISTANCE IN
 COMPETING FOR AND MANAGING CONTRACTS; AND (B) ASSISTANCE, AS  DETERMINED
 BY  THE  CITY,  DISTRICT, BOARD OR AGENCY, FOR SUCH A MENTEE BUSINESS TO
 OBTAIN BONDING FOR CONTRACTS THAT ARE COMPETITIVELY AWARDED PURSUANT  TO
 ANY OTHER PROVISION OF LAW.
   D.  "PROFESSIONAL  SERVICES"  MEANS  SERVICES THAT REQUIRE SPECIALIZED
 SKILLS AND THE EXERCISE OF JUDGMENT, INCLUDING, BUT NOT LIMITED TO:  (1)
 FINANCIAL  SERVICES,  INCLUDING,  BUT  NOT LIMITED TO, ACCOUNTING, ASSET
 MANAGEMENT,  MUNICIPAL  BOND  FINANCE,  AND  UNDERWRITING;   (2)   LEGAL
 SERVICES,  INCLUDING, BUT NOT LIMITED TO, ATTORNEYS, PARALEGALS, STENOG-
 RAPHERS  AND  ADMINISTRATIVE  SERVICES;   (3)   INFORMATION   TECHNOLOGY
 SERVICES,  INCLUDING,  BUT NOT LIMITED TO, SOFTWARE DEVELOPMENT, MAINTE-
 NANCE,  SUPPORT  AND  CONSULTING;  (4)  CONSTRUCTION  RELATED  SERVICES,
 INCLUDING,  BUT  NOT LIMITED TO, ARCHITECTURE, ENGINEERING, CONSTRUCTION
 SUPERVISION, CONSTRUCTION MANAGEMENT, PLANNING, SURVEYS, REPORTS,  TEST-
 ING,  INVESTIGATION,  PRINTING  AND  BLUEPRINTING;  (5)  ADVERTISING AND
 MARKETING; (6) ADMINISTRATIVE AND CLERICAL SERVICES;  AND  (7)  CONSULT-
 ANTS.
   6. COMMENCING ON OCTOBER FIRST, TWO THOUSAND NINETEEN, SUCH CITY SHALL
 SUBMIT  AN  ANNUAL  REPORT  TO  THE  GOVERNOR  AND  THE LEGISLATURE THAT
 CONTAINS THE FOLLOWING INFORMATION FOR THE PRECEDING CITY FISCAL YEAR:
   A. THE TOTAL NUMBER  AND  TOTAL  DOLLAR  VALUE  OF  MENTORING  PROGRAM
 CONTRACTS AWARDED FOR THE CONSTRUCTION TRADES;
   B.  THE  TOTAL  NUMBER  AND  TOTAL  DOLLAR  VALUE OF MENTORING PROGRAM
 CONTRACTS AWARDED FOR PROFESSIONAL SERVICES; AND
   C. MENTORING PROGRAM PARTICIPATION RATES.
   § 2. Section 311 of the New York city charter is amended by  adding  a
 new subdivision i to read as follows:
   I.  IN  ADDITION  TO OTHER RULES AUTHORIZED BY THIS SECTION, THE BOARD
 MAY PROVIDE BY RULE THAT:
   1. AGENCIES MAY MAKE PROCUREMENTS OF GOODS AND  SERVICES  FOR  AMOUNTS
 NOT  EXCEEDING  TWO  HUNDRED  THOUSAND DOLLARS FROM BUSINESS ENTERPRISES
 CERTIFIED PURSUANT TO SECTION THIRTEEN HUNDRED FOUR OF THIS CHARTER,  OR
 JOINT VENTURES THAT INCLUDE SUCH CERTIFIED ENTERPRISES, WITHOUT A FORMAL
 COMPETITIVE PROCESS.
   2.  AGENCIES  MAY  AWARD  CONTRACTS  FOR  GOODS, STANDARD SERVICES AND
 PROFESSIONAL SERVICES ON THE BASIS OF BEST VALUE TO THE BIDDER OR OFFER-
 ER WHICH OPTIMIZES QUALITY, COST AND EFFICIENCY,  AMONG  RESPONSIVE  AND
 RESPONSIBLE  BIDDERS  OR  OFFERERS.  SUCH  BASIS SHALL REFLECT, WHEREVER
 POSSIBLE, OBJECTIVE  AND  QUANTIFIABLE  ANALYSIS  AND  MAY  INCLUDE  THE
 PROSPECTIVE  BIDDER'S RECORD OF COMPLYING WITH EXISTING LABOR STANDARDS,
 MAINTAINING HARMONIOUS LABOR RELATIONS, AND PROTECTING  THE  HEALTH  AND

 S. 6513                             4
 
 SAFETY  OF  WORKERS.  SUCH BASIS MAY ALSO IDENTIFY A QUANTITATIVE FACTOR
 CONSISTING OF POINTS AWARDED IN THE EVALUATION OF A BID OR PRICE PREFER-
 ENCE TO BE USED  IN  EVALUATION  OF  BIDS  OR  OFFERS  FOR  AWARDING  OF
 CONTRACTS  FOR  BIDDERS OR OFFERERS THAT ARE SMALL BUSINESSES AS DEFINED
 IN SECTION ONE HUNDRED SIXTY OF THE STATE FINANCE LAW OR BUSINESS CERTI-
 FIED PURSUANT TO SECTION THIRTEEN HUNDRED FOUR OF THIS CHARTER.
   3. AGENCIES AWARDING CONTRACTS FOR CONSTRUCTION MAY IDENTIFY A QUANTI-
 TATIVE FACTOR CONSISTING OF POINTS AWARDED IN THE EVALUATION OF A BID OR
 A PRICE PREFERENCE TO BE USED IN EVALUATION OF BIDS OR OFFERS FOR AWARD-
 ING OF CONTRACTS FOR BIDDERS OR OFFERERS THAT ARE  SMALL  BUSINESSES  AS
 DEFINED  IN  SECTION ONE HUNDRED SIXTY OF THE STATE FINANCE LAW OR BUSI-
 NESS CERTIFIED PURSUANT TO SECTION THIRTEEN HUNDRED FOUR OF  THIS  CHAR-
 TER.
   4.  THE  RULE  OR  RULES PROMULGATED PURSUANT TO PARAGRAPH ONE OF THIS
 SUBDIVISION SHALL PROVIDE THAT THE CITY SHALL, COMMENCING ON  THE  FIRST
 OF  OCTOBER  OF  THE  FIRST FULL CALENDAR YEAR FOLLOWING THE ADOPTION OF
 SUCH RULE OR RULES, SUBMIT AN ANNUAL REPORT  TO  THE  GOVERNOR  AND  THE
 STATE LEGISLATURE OF THE TOTAL NUMBER AND TOTAL DOLLAR VALUE OF PROCURE-
 MENTS   OF   GOODS,   STANDARD   SERVICES,   PROFESSIONAL  SERVICES  AND
 CONSTRUCTION FOR AMOUNTS NOT  EXCEEDING  TWO  HUNDRED  THOUSAND  DOLLARS
 FROM:
   (I)  BUSINESS  ENTERPRISES  CERTIFIED  PURSUANT  TO  SECTION  THIRTEEN
 HUNDRED FOUR OF THIS CHARTER, OR JOINT VENTURES THAT INCLUDE SUCH CERTI-
 FIED ENTERPRISES; AND
   (II) ALL OTHER BUSINESSES.
   § 3. Subdivision a of section 324 of the New  York  city  charter,  as
 amended  by  local  law  number  17 of the city of New York for the year
 2004, is amended to read as follows:
   a. Agencies may maintain lists of prequalified vendors and entry  into
 a  prequalified  group  shall  be  continuously  available.  Prospective
 vendors may be prequalified as contractors for the provision of  partic-
 ular  types  of  goods,  services  and  construction, in accordance with
 general criteria established by rule of  the  procurement  policy  board
 which  may  include,  but  shall not be limited to, the experience, past
 performance, ability to undertake work, financial capability,  responsi-
 bility,  [and] reliability of prospective bidders, AND THEIR STATUS AS A
 SMALL BUSINESS AS DEFINED IN SECTION ONE  HUNDRED  SIXTY  OF  THE  STATE
 FINANCE LAW OR A BUSINESS CERTIFIED PURSUANT TO SECTION THIRTEEN HUNDRED
 FOUR  OF  THIS CHARTER, OR THEIR DEMONSTRATED COMMITMENT TO WORKING WITH
 SUCH BUSINESSES THROUGH JOINT VENTURES OR  SUBCONTRACTOR  RELATIONSHIPS,
 and  which  may  be  supplemented by criteria established by rule of the
 agency for the prequalification  of  vendors  for  particular  types  of
 goods,  services  or  construction  or by criteria published in the City
 Record by the agency prior to the  prequalification  of  vendors  for  a
 particular  procurement.  Such  prequalification  may  be  by categories
 designated by size and other factors.
   § 4. Subdivision b of section 6-129 of the administrative code of  the
 city  of  New  York, as amended by local law number 1 of the city of New
 York for the year 2013, is amended to read as follows:
   b. Policy. It is the policy of the city to seek to ensure fair partic-
 ipation in city procurement; and in furtherance of such policy to  fully
 and  vigorously  enforce  all  laws  prohibiting  discrimination, and to
 promote equal opportunity in city procurement  by  vigorously  enforcing
 the city's contractual rights and pursuing its contractual remedies. The
 program  established pursuant to this section is intended to address the
 impact of discrimination on  the  city's  procurement  process,  and  to

 S. 6513                             5
 
 promote  the  public  interest  in  avoiding fraud and favoritism in the
 procurement process,  increasing  competition  for  city  business,  and
 lowering  contract  costs.  THIS IS CONSISTENT WITH ASSURING THE PRUDENT
 AND  ECONOMICAL USE OF PUBLIC MONEYS FOR THE BENEFIT OF ALL THE INHABIT-
 ANTS OF THE STATE AND TO FACILITATE THE ACQUISITION  OF  FACILITIES  AND
 COMMODITIES  OF MAXIMUM QUALITY AT THE LOWEST POSSIBLE COST. FIRMS SEEK-
 ING PROCUREMENT OPPORTUNITIES WILL BE ABLE TO OFFER  THE  BEST  POSSIBLE
 BIDS  AND  PROPOSALS  ONLY IF THE IMPACT OF DISCRIMINATION IN THE MARKET
 HAS BEEN REMEDIED.   REQUIRING SUCH FIRMS  TO  EXPAND  THE  UNIVERSE  OF
 SUBCONTRACTORS  EMPLOYED FOR PUBLIC CONTRACTS IS EXPECTED TO IMPROVE THE
 QUALITY OF COMPETITION FOR SUBCONTRACTING OPPORTUNITIES AND TO FAVORABLY
 AFFECT PRICES OVER TIME. IN ADDITION, REQUIREMENTS THAT  PRIME  CONTRAC-
 TORS  EMPLOY  MINORITY-OWNED,  WOMEN-OWNED  AND EMERGING BUSINESS ENTER-
 PRISES AS SUBCONTRACTORS AND SUPPLIERS WILL ENABLE SUCH  ENTERPRISES  TO
 GROW INTO LARGER COMPANIES WITH THE CAPACITY AND EXPERIENCE NECESSARY TO
 BECOME  PRIME  CONTRACTORS,  AND  SHOULD THUS EXPAND THE OVERALL POOL OF
 FIRMS SUBMITTING BIDS AND PROPOSALS, RESULTING IN AN ADDITIONAL  FAVORA-
 BLE IMPACT ON THE PRICES OF PROCUREMENTS OVER TIME.
   § 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,  para-
 graph,  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  entered  into,  renewed,  modified or amended on or after such
 date.