BILL NUMBER:S2789

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
maintain 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
activity.

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 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 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 legislation.

PRIOR LEGISLATIVE HISTORY:

2013-14: S3089 - Referred to Corporations, Authorities
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.