BILL NUMBER: S4896

SPONSOR: PARKER
 
TITLE OF BILL:  An act to amend the public authorities law and the
executive law, in relation to database and reporting requirements for
contracts with minority and women-owned businesses

 
PURPOSE OR GENERAL IDEA:

To require state agencies and Class A and B public authorities, and
public benefit corporations, to implement databases and reporting for
contracts with minority and women-owned businesses.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends the public authorities law by adding a new section
2807, which creates a duty for every state authority to create and main-
tain databases to track the issuance of contracts to minority and
women-owned business enterprises (MWBEs), to report upon such contracts.

Section 2 amends the executive law by adding a new section 315-a, which
              

creates a duty for state agencies to create and maintain databases to
track the issuance of contracts to minority and women-owned business
enterprises (MWBEs), to report upon such contracts.

Section 3: This act shall take effect on the 90th day after it shall
have become a law; with provisions.

 
JUSTIFICATION:

On March 3, 2010 the New York State Senate Minority and Women-Owned
Business Enterprise (MWBE) Task Force held a hearing to inquire into the
status of State contracting with MWBEs, and reporting upon such activ-
ity.

A number of common themes arose during the hearing, but one particularly
important issue cited by the witnesses was the need for software that
tracks MWBE goals. The Green American Public Private Partnership (Green
America), for example, testified to wide disparities between MBE goals
and oversight of such goals. One example used was New York City's (NYC)
annual value of prime contracts, which total roughly $359 million. Under
NYC's announced MWBE prime contract goal, NYC would be expected to let
approximately $107 million of contracts to MWBEs, however only $14.9
million of such contracts were awarded in 2009. The conclusion of the
Department of Small Business Services, which audited NYC's MWBE program,
was that self-monitoring by agencies of MWBE compliance was inadequate.
Other witnesses, such DWM Business Associates, LLC, also pointed to the
need for greater focus upon compliance and reporting issues.

This legislation will require state agencies and public authorities to
track the issuance of MWBE contracts, report upon the award of such
contracts, and post the information on their web sites. This large step
forward in tracking and compliance reporting will vastly increase the
transparency and accountability of MWBE contracting by state entities in
New York. Furthermore, such a requirement should place small or no addi-
tional burden(s) upon agencies and authorities.  The Metropolitan Trans-
portation Authority (MTA), for example, stated that it is already
investing in MWBE software so it can track MWBE goals in real time, so
if prime contractors do not meet their goals, the MTA's compliance unit
can act without delay. In addition, the Office of General Services (OGS)
noted the new requirement established by chapter 429 of 2009, requiring
agencies to post their MWBE utilization plans on their websites, which
is theorized to be complementary to the requirements of this legis-
lation.

 
PRIOR LEGISLATIVE HISTORY:

2017-18: S.2841- REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
2015-16: S.2789 - Referred to Corporations, Authorities & Commissions
2013-14: 53089 - Referred to Corporations, Authorities & Commissions
2011-12: S.1080A - Referred to Corporations, Authorities & Commissions
2009-10: S.7195 - Referred to Corporations, Authorities & Commissions

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect on the 90th day; with provisions.