NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9643
SPONSOR: Hyndman TITLE OF BILL:
An act to amend the public authorities law, in relation to the award of
certain contracts to small businesses and/or businesses certified under
article 15-A of the executive law; and providing for the repeal of such
provisions upon expiration thereof
PURPOSE:
To amend the Public Authorities Law in relation to expanded opportu-
nities for minority, women-owned and small business enterprises.
SUMMARY OF PROVISIONS:
This bill amends the Public Authorities Law to authorize the Dormitory
Authority of the State of New York (DASNY) to create a pilot program
that would increase minority, women-owned and small business partic-
ipation in the State's and Authority's procurement process. Specif-
ically, this bill would: establish a short-term pilot project that
permits competitive bidding of contracts for goods and services, includ-
ing construction services by small and/or minority and women-owned busi-
nesses; provide for the evaluation of amounts paid under the pilot
program compared with amounts awarded under other non-pilot contracts
for the same goods or services; and, require an annual of assessment of
the effectiveness of these procedures in helping meet goals established
pursuant to Executive Law Article 15-A.
JUSTIFICATION:
New York State agencies and public authorities are responsible for
ensuring compliance with various statutes, executive orders and regu-
lations whose purpose is to expand opportunities for minority, women-
owned and small businesses that may have been-previously excluded or
substantially underutilized in the State's procurements.
The underutilization of small and minority and women-owned businesses in
the State's contracting opportunities can be attributed, in part, to a
distinct absence of actual work experience. The State often finds this a
daunting challenge, which grows particularly more difficult in this era
of economic uncertainty. In an effort to help State agencies/public
authorities to meet their policy goals, the legislature successfully
negotiated the enactment of legislation that took a major first step by
creating a statewide mentor-protegee program.
The legislature continues to explore ways to assist State agencies and
public authorities in their efforts and with a view toward more immedi-
ate participation, through this legislation, takes an important next
step. Through this pilot project, minority, women and small businesses
will be able to successfully compete for State produrements as
instructed by authority procurement guidelines. As a result of guide-
lines that are authority-specific and meet, unique procurement require-
ments of the authority, participating small and minority-owned busi-
nesses can gain experience that will be needed for them to more
effectively compete in the marketplace.
EXISTING LAW:
Sections 1696-1699 of the Public Authorities Law permit the designation
of purchases and. contracts for construction and services in certain,
instances, to be bid by minority and small business concerns.
LEGISLATIVE HISTORY:
2022: S5851
2018: A.9990-Referred to corporations, authorities and commissions
2017: A.4759-Referred to Corporations, Authorities and Commissions.
2015-16: A.2577-Referred to Corporations,Authoritiesand Commissions.
2013-14: A.5699-Referred to Corporations,Authoritiesand Commissions.
2011-12: A.5863-Referred to Corporations,Authoritiesand Commissions.
2010: A.11249- Referred to Corporations, Authorities and Commissions.
FISCAL IMPLICATIONS:
None. The pilot program is limited to the utilization of existing
authority assets and is capped.
EFFECTIVE DATE:
Immediately and shall expire on July 1, 2022.
STATE OF NEW YORK
________________________________________________________________________
9643
IN ASSEMBLY
March 26, 2024
___________
Introduced by M. of A. HYNDMAN -- read once and referred to the Commit-
tee on Corporations, Authorities and Commissions
AN ACT to amend the public authorities law, in relation to the award of
certain contracts to small businesses and/or businesses certified
under article 15-A of the executive law; and providing for the repeal
of such provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 1678 of the public authorities law is amended by
2 adding a new subdivision 33 to read as follows:
3 33. (a) To award contracts, notwithstanding any other provision of law
4 to the contrary, for the procurement of goods or services from small
5 businesses and/or businesses certified under article fifteen-A of the
6 executive law in accordance with the provisions of this subdivision.
7 (b) Procurements made pursuant to this subdivision shall be governed
8 by the authority's procurement policy and guidelines adopted pursuant to
9 section twenty-eight hundred seventy-nine of this chapter. Such guide-
10 lines shall include, but not be limited to: (i) a competitive process
11 that provides opportunity and access to procurements, pursuant to which
12 contracts may be awarded to small businesses and/or businesses certified
13 under article fifteen-A of the executive law; (ii) provide a benchmark
14 of amounts paid under contracts awarded under this subdivision against
15 amounts paid under other authority contracts for like goods or services;
16 and (iii) require an annual assessment of the effectiveness of such
17 procedures in helping the authority achieve the authority's goals estab-
18 lished pursuant to article fifteen-A of the executive law for partic-
19 ipation by minority and women-owned enterprises. Such annual assessment
20 may be included within the authority's annual report required by this
21 article and shall be submitted to the governor, the temporary president
22 of the senate, the speaker of the assembly, the minority leader of the
23 senate and the minority leader of the assembly.
24 (c) The total value of contracts awarded pursuant to this subdivision
25 shall not exceed two percent of the value of all contracts offered in
26 any fiscal year of the authority; provided, however, the total amount
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04684-01-3
A. 9643 2
1 available for award pursuant to this section shall not be less than one
2 percent of the value of all contracts offered in any fiscal year of the
3 authority.
4 § 2. This act shall take effect immediately and shall expire July 1,
5 2028 when upon such date the provisions of this act shall be deemed
6 repealed.
