BILL NUMBER: S6783

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:

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
2808, 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 legis-
lation 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 additional
burden(s) upon agencies and authorities.

The Metropolitan Transportation 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 MIA's
compliance unit can act without delay. In addition, the Office of Gener-
al 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 require-
ments of this legislation.

 
PRIOR LEGISLATIVE HISTORY:

2021-22: S.5217-Referred to Corporations, Authorities and Commissions

2019-20: S.4896-Referred to Corporations, Authorities and Commissions

2017-18: S.2841-REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

2015-16: S.2789-Referred to Corporations, Authorities & Commissions

2013-14: S3089-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 ninetieth day after it shall have
become a law; provided, however, that the amendment made to article 15-A
of the executive law by section two of this act shall not affect the
expiration of such article and shall be deemed repealed therewith.