A01204 Summary:

BILL NO    A01204 

SAME AS    No same as 

SPONSOR    Gantt

COSPNSR    

MLTSPNSR   

Amd S103, Gen Muni L

Enables the city of Rochester to prefer minority and women-owned businesses in
awarding public contracts where the contract for purchase of commodities and/or
services is in the amount of $100,000 or less and a disparity in procurement
opportunities has been documented for the type of such commodities and/or
services for which the city is contracting.
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A01204 Actions:

BILL NO    A01204 

01/08/2015 referred to local governments
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A01204 Votes:

There are no votes for this bill in this legislative session.
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A01204 Memo:

BILL NUMBER:A1204

TITLE OF BILL:  An act to amend the general municipal law, in relation
to giving the city of Rochester the power to prefer minority and
women-owned businesses in awarding public contracts

PURPOSE OR GENERAL IDEA OF BILL: This bill would exempt the City of
Rochester, under certain circumstances from the requirement of
awarding various public contracts to the lowest responsible bidder.

SUMMARY OF SPECIFIC PROVISIONS:  The City of Rochester would be exempt
from the requirement of awarding public contracts to the lowest
responsible bidder, where:

(1) the contract for the purchase of commodities and/or services is in
the amount of $100,000 or less; AND

(2) a disparity in procurement opportunities has been documented for
the type of commodities and/or services for which the city is
contracting.

JUSTIFICATION: The City of Rochester is committed to providing equal
opportunity for participation by all people in its programs and
services. As part of this commitment, the City has established various
goals or objectives for the participation of minority and women-owned
businesses in City procurement opportunities.

These goals are based upon empirical evidence, as required by the U.S.
Supreme Court in its decision in CITY OF RICHMOND V. J.A. CROSON.ct.
They apply only to services and commodities for which a past
"disparity" in procurement opportunities has been documented.

Achievement of these goals is sometimes impaired, however, by the
purchasing procedures prescribed by the General Municipal Law. Under
these procedures, public contracts usually must be awarded to the
business or person who submits the lowest bid.

This requirement provides no flexibility for a municipality to attempt
to address the various disadvantages with which most minority and
women-owned businesses are confronted. Among these disadvantages are
the inexperience and relatively small size of most of these types of
businesses.

As a result of these disadvantages, minority and women-owned
businesses frequently are unable to compete economically with other,
older and more established companies. The proposed bill would permit
the City of Rochester to recognize these disadvantages and, within
specified limits, to compensate for them.

On an annual basis, it is expected that the provisions of the bill
would apply to about 50-60 contracts with values totalling $1.8-$2.0
million.

FISCAL IMPLICATIONS: None to the state.

EFFECTIVE DATE: This act shall take effect immediately.

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A01204 Text:

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         1204

                              2015-2016 Regular Sessions

                                 I N  A S S E M B L Y

                                    January 8, 2015
                                      ___________

       Introduced  by M. of A. GANTT -- read once and referred to the Committee
         on Local Governments

       AN ACT to amend the general municipal law, in  relation  to  giving  the
         city  of  Rochester the power to prefer minority and women-owned busi-
         nesses in awarding public contracts

         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section  1. Subdivision 1 of section 103 of the general municipal law,
    2  as amended by section 1 of chapter 2 of the laws of 2012, is amended  to
    3  read as follows:
    4    1. Except as otherwise expressly provided by an act of the legislature
    5  or  by  a  local  law adopted prior to September first, nineteen hundred
    6  fifty-three, all contracts for public work involving an  expenditure  of
    7  more  than  thirty-five  thousand  dollars  and  all  purchase contracts
    8  involving an expenditure of more than twenty thousand dollars, shall  be
    9  awarded  by  the  appropriate  officer,  board  or agency of a political
   10  subdivision or of any district therein including but not  limited  to  a
   11  soil  conservation  district to the lowest responsible bidder furnishing
   12  the required security after advertisement for sealed bids in the  manner
   13  provided  by  this  section,  provided, however, that purchase contracts
   14  (including contracts  for  service  work,  but  excluding  any  purchase
   15  contracts necessary for the completion of a public works contract pursu-
   16  ant  to  article  eight of the labor law) may be awarded on the basis of
   17  best value, as defined in section one hundred sixty-three of  the  state
   18  finance  law,  to  a responsive and responsible bidder or offerer in the
   19  manner provided by this section except that in a  political  subdivision
   20  other  than  a city with a population of one million inhabitants or more
   21  or any district, board or agency with jurisdiction  exclusively  therein
   22  the  use  of  best  value  for  awarding a purchase contract or purchase
   23  contracts must be authorized by local law or, in the case of a  district
   24  corporation,   school  district  or  board  of  cooperative  educational

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD02690-01-5
       A. 1204                             2

    1  services, by rule, regulation or resolution adopted at a public meeting.
    2  In any case where a responsible bidder's or responsible offerer's  gross
    3  price  is  reducible  by  an  allowance for the value of used machinery,
    4  equipment,  apparatus  or  tools to be traded in by a political subdivi-
    5  sion, the gross price shall be reduced by the amount of such  allowance,
    6  for  the  purpose  of determining the best value.  In cases where two or
    7  more responsible bidders furnishing the required security submit identi-
    8  cal bids as to price, such  officer,  board  or  agency  may  award  the
    9  contract  to  any of such bidders. Such officer, board or agency may, in
   10  his or her or its discretion, reject all bids or offers and  readvertise
   11  for new bids or offers in the manner provided by this section; PROVIDED,
   12  HOWEVER,  THAT  IN  THE CITY OF ROCHESTER, FOR PUBLIC WORKS AND PURCHASE
   13  CONTRACTS UP TO ONE HUNDRED THOUSAND  DOLLARS,  SUCH  CONTRACTS  MAY  BE
   14  AWARDED  TO  A MINORITY OR WOMAN-OWNED BUSINESS CERTIFIED AS SUCH BY THE
   15  STATE OF NEW YORK AND LOCATED WITHIN THE ROCHESTER METROPOLITAN  STATIS-
   16  TICAL  AREA, AS LONG AS SUCH AWARD IS BASED ON CONTRACTOR SUBMISSIONS IN
   17  RESPONSE TO A REQUEST FOR PROPOSALS AND MADE PURSUANT TO A MINORITY  AND
   18  WOMAN-OWNED  BUSINESS ENTERPRISE PROGRAM LAWFULLY ADOPTED BY THE CITY OF
   19  ROCHESTER.  In determining whether a purchase is an  expenditure  within
   20  the discretionary threshold amounts established by this subdivision, the
   21  officer,  board  or agency of a political subdivision or of any district
   22  therein shall consider the reasonably expected aggregate amount  of  all
   23  purchases  of  the  same  commodities, services or technology to be made
   24  within the twelve-month period  commencing  on  the  date  of  purchase.
   25  Purchases  of  commodities,  services  or  technology shall not be arti-
   26  ficially divided for the purpose of satisfying the discretionary  buying
   27  thresholds  established by this subdivision. A change to or a renewal of
   28  a discretionary purchase shall not be permitted if the change or renewal
   29  would bring the reasonably expected aggregate amount of all purchases of
   30  the same commodities, services or  technology  from  the  same  provider
   31  within  the  twelve-month  period  commencing  on  the date of the first
   32  purchase to an amount greater than the  discretionary  buying  threshold
   33  amount. For purposes of this section, "sealed bids" and "sealed offers",
   34  as  that  term  applies  to purchase contracts, (including contracts for
   35  service work, but excluding any purchase  contracts  necessary  for  the
   36  completion  of  a public works contract pursuant to article eight of the
   37  labor law) shall include bids and  offers  submitted  in  an  electronic
   38  format  including  submission of the statement of non-collusion required
   39  by section one hundred  three-d  of  this  article,  provided  that  the
   40  governing board of the political subdivision or district, by resolution,
   41  has authorized the receipt of bids and offers in such format. Submission
   42  in  electronic format may, for technology contracts only, be required as
   43  the sole method for the submission of bids and offers. Bids  and  offers
   44  submitted  in  an  electronic format shall be transmitted by bidders and
   45  offerers to the receiving device designated by the political subdivision
   46  or district. Any method used to receive electronic bids and offers shall
   47  comply with article three of the state technology law, and any rules and
   48  regulations promulgated and guidelines developed thereunder  and,  at  a
   49  minimum,  must (a) document the time and date of receipt of each bid and
   50  offer received electronically; (b)  authenticate  the  identity  of  the
   51  sender;  (c) ensure the security of the information transmitted; and (d)
   52  ensure the confidentiality of the bid or offer until the time  and  date
   53  established  for the opening of bids or offers. The timely submission of
   54  an electronic bid or offer in compliance with instructions provided  for
   55  such submission in the advertisement for bids or offers and/or the spec-
   56  ifications  shall be the responsibility solely of each bidder or offerer
       A. 1204                             3

    1  or prospective bidder or offerer. No political subdivision  or  district
    2  therein shall incur any liability from delays of or interruptions in the
    3  receiving device designated for the submission and receipt of electronic
    4  bids and offers.
    5    S  2. This act shall take effect immediately; provided that the amend-
    6  ments to subdivision 1 of section 103 of the general municipal law  made
    7  by  section  one  of  this  act  shall not affect the expiration of such
    8  subdivision and shall be deemed to expire therewith.
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