Relates to discretionary purchases by state agencies; provides that certain discretionary purchases shall be subject to written internal controls established by each state agency.
Ayes (58): Adams, Addabbo, Alesi, Aubertine, Bonacic, Breslin, DeFrancisco, Diaz, Dilan, Duane, Espada, Farley, Foley, Fuschillo, Golden, Griffo, Hannon, Hassell-Thomps, Huntley, Johnson C, Johnson O, Klein, Krueger, Kruger, Lanza, LaValle, Leibell, Libous, Little, Marcellino, Maziarz, McDonald, Montgomery, Nozzolio, Onorato, Oppenheimer, Padavan, Parker, Peralta, Perkins, Robach, Saland, Sampson, Savino, Schneiderman, Serrano, Seward, Skelos, Smith, Squadron, Stachowski, Stavisky, Stewart-Cousins, Thompson, Valesky, Volker, Winner, Young
Nays (2): Flanagan, Ranzenhofer
Excused (2): Larkin, Morahan
TITLE OF BILL:
An act to amend the state finance law, in relation to discretionary purchases
This bill would amend the State Finance Law to raise the limit for purchasing from small businesses and MWBEs without formal competitive process from $100,000 to $200,000.
SUMMARY OF PROVISIONS:
Section 1 of this bill would amend State Finance Law § 163(6) to raise the ceiling for purchasing from small businesses and MWBEs without formal competitive process from $100,000 to $200,000.
Section 2 adds a new paragraph n to subdivision 2 of section 161 of the State Finance Law.
Section 3 of this bill would provide for an effective date ninety days after the bill becomes law.
In 2006, the Empire State Development Corporation commissioned a disparity study to evaluate whether minority and women-owned businesses had a full and fair opportunity to participate in state contracting. The results of that study were published on April 29, 2010, under the title "The State of Minority and Women-Owned Business Enterprises: Evidence from New York." The report found evidence of statistically significant disparities between participation of MWBEs in the New York market and the availability of such businesses. It concluded that these disparities could not be explained by factors untainted by discrimination.
This legislation is one of three bills that seek to address the findings of the disparity study, to remedy the results of past discrimination and to provide MWBEs with a full and fair opportunity to compete for contracting opportunities in New York State. It would raise the ceiling under which purchases could be made without competitive bid from MWBEs and small businesses from $100,000 to $200,000. This would provide State agencies with the flexibility they need to meet MWBE goals, and to ensure greater state contracting with small businesses generally.
State Finance Law § 163(6) presently sets a $100,000 ceiling for purchases without competitive bid from certified MWBEs and small businesses.
This bill would have no fiscal impact on the State or localities.
This bill would take effect ninety days after it becomes law.
STATE OF NEW YORK ________________________________________________________________________ 8312 IN SENATE June 22, 2010 ___________Introduced by Sen. HASSELL-THOMPSON -- (at request of the Governor) -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the state finance law, in relation to discretionary purchases THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 6 of section 163 of the state finance law, as amended by section 3 of part D of chapter 56 of the laws of 2006, is amended to read as follows: 6. Discretionary buying thresholds. Pursuant to guidelines established by the state procurement council: the commissioner may purchase services and commodities in an amount not exceeding eighty-five thousand dollars without a formal competitive process; state agencies may purchase services and commodities in an amount not exceeding fifty thousand dollars without a formal competitive process; and state agencies may purchase commodities or services from small business concerns or those certified pursuant to article fifteen-A of the executive law, or commod- ities or technology that are recycled or remanufactured, in an amount not exceeding
[one]TWO hundred thousand dollars without a formal competitive process. S 2. Subdivision 2 of section 161 of the state finance law is amended by adding a new paragraph n to read as follows: N. RECOMMEND TO THE COMMISSIONER NECESSARY LEGISLATIVE CHANGES OR MODIFICATIONS TO EXISTING OR PROPOSED RULES, REGULATIONS AND PROCEDURES THAT WOULD INCREASE ACCESS TO THE STATE'S PROCUREMENT PROCESS BY MINORI- TY-OWNED BUSINESS ENTERPRISES AND WOMEN-OWNED BUSINESS ENTERPRISES AND CREATE MODEL LANGUAGE TO BE USED BY AGENCIES WHEN ISSUING REQUESTS FOR BIDS OR PROPOSALS TO OTHER SOLICITATIONS OR OFFERS THAT WOULD INCREASE THE ABILITY OF SMALL BUSINESSES TO PARTICIPATE IN STATE PROCUREMENTS. S 3. This act shall take effect on the ninetieth day after it shall have become a law; provided however, that the amendments to subdivision 6 of section 163 of the state finance law made by section one of this act shall not affect the repeal of such section and shall be deemed repealed therewith.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD17549-04-0