Bill Text: NY S06418 | 2019-2020 | General Assembly | Amended
Bill Title: Relates to opportunities for small businesses and businesses owned by women and minorities.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2019-07-15 - SIGNED CHAP.98 [S06418 Detail]
Download: New_York-2019-S06418-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 6418--A 2019-2020 Regular Sessions IN SENATE June 10, 2019 ___________ Introduced by Sen. PARKER -- (at request of the NYC Small Business Services) -- read twice and ordered printed, and when printed to be committed to the Committee on Rules -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee AN ACT to amend the New York city charter, the education law and the public authorities law, in relation to opportunities for small busi- nesses and businesses owned by women and minorities The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Legislative findings. The legislature finds that disparity 2 studies conducted by the state and the city of New York demonstrate the 3 continuing effects of discrimination on businesses owned by minorities 4 and women in the market where the city conducts its procurements. 5 Therefore, it continues to be appropriate for the city of New York to 6 establish and implement reasonable procedures to secure the meaningful 7 participation of minority and women-owned businesses, as well as emerg- 8 ing business enterprises, in its procurement process, including but not 9 limited to measures already authorized by state and local legislation 10 and rules and the measures authorized in this act. 11 § 2. Paragraph 1 of subdivision i of section 311 of the New York city 12 charter, as amended by chapter 19 of the laws of 2018, is amended to 13 read as follows: 14 1. agencies may make procurements of goods [and], services and 15 construction for amounts not exceeding [one] five hundred [fifty] thou- 16 sand dollars from businesses certified as minority or women-owned busi- 17 ness enterprises pursuant to section thirteen hundred four of the char- 18 ter without a formal competitive process. 19 § 3. Subdivision a of section 324 of the New York city charter, as 20 amended by local law number 17 for the year 2004, is amended to read as 21 follows: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11067-08-9S. 6418--A 2 1 a. Agencies may maintain lists of prequalified vendors and entry into 2 a prequalified group shall be continuously available. Prospective 3 vendors may be prequalified as contractors for the provision of partic- 4 ular types of goods, services and construction, in accordance with 5 general criteria established by rule of the procurement policy board 6 which may include, but shall not be limited to, the experience, past 7 performance, ability to undertake work, financial capability, responsi- 8 bility, and reliability of prospective bidders, and their status as a 9 certified minority and women owned business enterprise pursuant to 10 section thirteen hundred four of the charter, and which may be supple- 11 mented by criteria established by rule of the agency for the prequali- 12 fication of vendors for particular types of goods, services or 13 construction or by criteria published in the City Record by the agency 14 prior to the prequalification of vendors for a particular procurement. 15 Such prequalification may be by categories designated by size and other 16 factors. 17 § 4. The New York city charter is amended by adding a new section 1206 18 to read as follows: 19 § 1206. Mentoring program. 1. The department of design and 20 construction may establish a mentoring program for small businesses and 21 minority and women owned business enterprises that have been certified 22 pursuant to section thirteen hundred four of the charter in the 23 construction trades. The department of design and construction may 24 determine the criteria pursuant to which a business shall be eligible 25 for and selected as a mentee business participating in the components of 26 such a program under paragraph c of subdivision five of this section, 27 the number of mentee businesses to participate in each such component of 28 such a program, the criteria for the competitive selection of the firms 29 that will provide mentoring services, and the assignment of a mentor to 30 a specific mentee business. 31 2. The department of design and construction shall be authorized, 32 notwithstanding any other provision of law: 33 a. to designate which eligible contracts shall be mentoring program 34 contracts under subparagraphs one and two of paragraph c of subdivision 35 five of this section, respectively; 36 b. to establish standards for qualifying mentee businesses to compete 37 for a mentoring program contract, provided that no less than two quali- 38 fied mentee businesses in the program must submit responsive offers to 39 perform the contract; 40 c. to determine when bids or proposals for a mentoring program 41 contract should be restricted to mentee businesses that, prior to the 42 receipt of bids or proposals, have been qualified for such competition; 43 d. to competitively select, designate and contract with one or more 44 experienced firms that, under the general supervision of the department 45 of design and construction, will provide mentoring services to the 46 mentee businesses, and to assign such mentors one or more designated 47 mentee businesses; 48 e. to assist mentee businesses that have been awarded mentoring 49 program contracts to obtain any surety bond or contract of insurance 50 required of them in connection with such contract only, notwithstanding 51 any provision of section two thousand five hundred four of the insurance 52 law to the contrary; and 53 f. in addition to the benefits of such program and notwithstanding any 54 other provision of law, to provide mentee businesses technical assist- 55 ance in obtaining bid, payment and performance bonding for contractsS. 6418--A 3 1 that are not mentoring program contracts, for which the businesses are 2 otherwise qualified. 3 3. If the total number of qualified mentee businesses that respond to 4 a competition and are considered capable of meeting the specifications 5 and terms of the invitation to compete is less than two, or if the 6 department of design and construction determines that acceptance of the 7 best offer will result in the payment of an unreasonable price, the 8 department of design and construction shall reject all offers and with- 9 draw the designation of the contract as a mentoring program contract. If 10 the department of design and construction withdraws the designation of 11 the contract as a mentoring program contract, the mentee businesses, if 12 any, that made offers shall be notified. 13 4. A mentor shall provide services and assistance to a mentee business 14 as designated by the department of design and construction, which may 15 include the following: 16 a. provide business training in the skills necessary to operate a 17 successful business and to compete for and perform a contract; 18 b. provide technical assistance to the mentee business to assess the 19 outcome if the mentee business competes for but is not awarded a 20 contract; 21 c. if the mentoring program contract is awarded to the mentee busi- 22 ness, provide guidance, advice and technical assistance to the mentee 23 business in the performance of the contract; and 24 d. provide other technical assistance to the mentee business to facil- 25 itate learning, training and other issues which may arise. 26 5. As used in this section: 27 a. "Small business" means a business which (1) is independently owned 28 and operated; and (2) has annual revenues not exceeding a fiscal limita- 29 tion of five million dollars or such lesser amount as established by the 30 department of design and construction pursuant to this section. 31 b. "Mentoring program contract" means a contract designated by the 32 department of design and construction, in an estimated amount of not 33 more than one million five hundred thousand dollars for contracts under 34 subparagraph one of paragraph c of this subdivision and three million 35 dollars for contracts under subparagraph two of such paragraph, for 36 which bids or proposals are to be invited and accepted only from busi- 37 nesses that are enrolled in a mentoring program and have been selected 38 by the department of design and construction to compete for the 39 contract. 40 c. "Mentoring program" is a program established pursuant to this 41 section to provide mentee businesses with the opportunity: 42 (1) for up to four years, to compete for and, where awarded, to 43 perform certain contracts designated for inclusion in the mentoring 44 program, with the assistance of a competitively selected mentor firm 45 that has extensive management and mentoring experience, with the mentor 46 providing the mentee business with advice and assistance in competing 47 for and managing contracts; and 48 (2) for a mentee business that the department of design and 49 construction has determined has successfully completed the program under 50 subparagraph one of this paragraph, for up to four additional years, (A) 51 additional opportunities to compete with other designated mentee busi- 52 nesses in the program for certain contracts to be designated for inclu- 53 sion under this subparagraph and, where awarded, to perform such 54 contracts, with the further assistance of a competitively selected 55 mentor firm that has extensive management and mentoring experience, with 56 the mentor providing the mentee with advice and technical assistance inS. 6418--A 4 1 competing for and managing contracts, and (B) assistance, as determined 2 by the department of design and construction, for such a mentee business 3 to obtain bonding for contracts that are competitively awarded pursuant 4 to any other provision of law. 5 6. Commencing on October first, two thousand twenty, the department of 6 design and construction shall submit an annual report to the governor 7 and the legislature that contains the following information for the 8 preceding city fiscal year: 9 a. the total number and total dollar value of mentoring program 10 contracts; and 11 b. mentoring program participation rates. 12 § 5. Paragraph (a) of subdivision 36 of section 2590-h of the educa- 13 tion law, as amended by chapter 345 of the laws of 2009, is amended to 14 read as follows: 15 (a) Such policy shall specifically include: 16 (i) a competitive sealed bidding process for the awarding of contracts 17 in which sealed bids are publicly solicited and opened and that a 18 contract is awarded to the lowest responsive, responsible bidder; 19 (ii) processes for awarding contracts using alternatives to compet- 20 itive sealed bidding where competitive sealed bidding is not practicable 21 or not advantageous, in which case the most competitive alternative 22 method of procurement, which is appropriate under the circumstances, 23 shall be used consistent with the requirements of subparagraph (vii) of 24 this paragraph; 25 (iii) measures to enhance the ability of minority and women owned 26 business enterprises pursuant to section thirteen hundred four of the 27 New York city charter and a certified business as defined in section 28 three hundred ten of the executive law, including firms certified pursu- 29 ant to article fifteen-A of the executive law and firms certified as 30 minority and women owned business enterprises pursuant to section thir- 31 teen hundred four of the New York city charter, to compete for contracts 32 and to ensure their meaningful participation in the procurement process. 33 The school district shall have the authority to use the same measures, 34 to enhance minority and women owned business enterprise participation as 35 are available to the city of New York pursuant to article five-A of the 36 general municipal law, section thirteen hundred four of the New York 37 city charter, paragraphs one and two of subdivision i of section three 38 hundred eleven of the New York city charter, and section 6-129 of the 39 administrative code of the city of New York; 40 (iv) the manner for administering contracts and overseeing the 41 performance of contracts and contractors; 42 (v) standards and procedures to be used in determining whether bidders 43 are responsible; 44 (vi) circumstances under which procurement may be used for the 45 provision of technical, consultant or personal services; 46 (vii) requiring written justification for the basis, including the 47 efficiency, benefit, and necessity, for awarding a contract using 48 procurement methods other than competitive sealed bidding including 49 competitive sealed proposals and sole source contracts, and for awarding 50 technical, consultant, or personal services contracts, franchises, revo- 51 cable consents, or concessions. Such written justification shall be 52 filed with the comptroller of the city of New York along with the corre- 53 sponding contract, franchise, revocable consent, or concession; 54 (viii) maintaining a file for every contract franchise, revocable 55 consent, and concession containing information pertaining to the solic- 56 itation, award and management of every such contract or agreement. SuchS. 6418--A 5 1 file shall contain copies of each determination, writing or filing 2 required by this subdivision and shall be open to public inspection with 3 adequate protection for information which is confidential; 4 (ix) a process for the filing of all contracts, franchises, revocable 5 consents, and concessions with the comptroller of the city of New York; 6 (x) a process for emergency procurement in the case of an unforeseen 7 danger to life, safety, property or a necessary service provided that 8 such procurement shall be made with such competition as is practicable 9 under the circumstances and that a written determination of the basis 10 for the emergency procurement shall be required and filed with the comp- 11 troller of the city of New York when such emergency contract is filed 12 with such comptroller; and 13 (xi) procedures for the fair and equitable resolution of contract 14 disputes. 15 § 6. Paragraph b of subdivision 2 of section 1743 of the public 16 authorities law, as added by chapter 562 of the laws of 1990, is amended 17 to read as follows: 18 b. The authority shall establish and implement reasonable procedures 19 to secure the meaningful participation of minority and women owned busi- 20 ness enterprises in its procurement process. In addition to procedures 21 it has already adopted for such purpose, the authority may use the same 22 measures, to enhance minority and women owned business enterprise 23 participation, as are available to the city of New York pursuant to 24 article five-A of the general municipal law, section thirteen hundred 25 four of the New York city charter, paragraphs one and two of subdivision 26 i of section three hundred eleven of the New York city charter, and 27 section 6-129 of the administrative code of the city of New York. 28 § 7. This act shall take effect immediately and shall apply to any 29 contract entered into, renewed, modified or amended on or after such 30 date; provided that the amendments to paragraph (a) of subdivision 36 of 31 section 2590-h of the education law made by section five of this act 32 shall not affect the expiration and reversion of such subdivision pursu- 33 ant to section 34 of chapter 91 of the laws of 2002, as amended and 34 shall be deemed to expire therewith.
