Relates to requiring third party oversight over the state's contracting agency's procurement procedure specific to the use of minority- and women-owned businesses.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A1871
SPONSOR: Jackson TITLE OF BILL:
An act to amend the executive law, in relation to third party oversight
for state contracts involving minority and women-owned businesses
PURPOSE OR GENERAL IDEA OF BILL:
To ensure that State contracts are being reviewed and distributed fairly
among Minority and Women-Owned Business Enterprise bidders.
SUMMARY OF PROVISION:
Section 1 establishes an independent third party to oversee each
contracting agency's procurement procedure for contracts made with
Minority and Women-Owned Businesses. Each of these contracting agencies
submit information to this third party including proposed and confirmed
procurement opportunities, a list of all bids for each contract, and a
list of all contractors awarded waivers. This third party shall create
an evaluation system that assesses each agency's utilization of Minority
and Women-Owned businesses' and the established procurement goals. Addi-
tionally, this third-party entity is required to provide a monthly and
annual metrics-based reporting, along with observations and recommenda-
tions for improvements of the MWBE contracting process including a
clearly defined MWBE point person within each agency.
Section 2 defines the effective date of this act
JUSTIFICATION:
As we strive to achieve the 30% MWBE goal as outlined by Governor Cuomo,
it is crucial that contracting agencies make considerations that are
both fair and impartial. Doing so will allow MWBE's to transcend those
barriers that leave them at a disadvantage, so that they may be judged
on their merit alone. Equally crucial is that we tackle any challenge,
whether perceived or actual, that poses a threat towards this balance of
fairness and impartiality. Such a threat is noted in the rise of MWBE
fraud as outlined recently by Manhattan District Attorney CY Vance. With
fraudulent MWBE firms representing themselves as such, without facing
the appropriate penalties, this legislation would require a third-party
entity to oversee the MWBE auditing and reporting procurement process.
As part of this process the third-party entity would provide monthly and
annual metrics-based reporting and recommendations. It would ensure an
unbiased mechanism for review and responsiveness without fear of a
potential pushback from any administration or legislature.
LEGISLATIVE HISTORY:
2023-24 A.3945 Referred to Governmental Operations / S.5077 Referred to
Procurement and Contracts
2021-22 A.6075 Referred to Governmental Operations / S.8090 Referred to
Procurement and Contracts
2019-20 A.4686 Referred to Governmental Operations / S.213 Referred to
Finance
2017-18 A.4437 Referred to Governmental Operations / S.7137 Referred to
Finance
2015-16 A.6905 Referred to Governmental Operations / S.5698 Referred to
Finance
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately and shall expire on the same date
and in the same manner as article 15-a of the executive law pursuant to
subdivision (h) of section 121 of chapter 261 of the laws of 1988, as
amended.
STATE OF NEW YORK
________________________________________________________________________
1871
2025-2026 Regular Sessions
IN ASSEMBLY
January 14, 2025
___________
Introduced by M. of A. JACKSON, DAVILA -- read once and referred to the
Committee on Governmental Operations
AN ACT to amend the executive law, in relation to third party oversight
for state contracts involving minority and women-owned businesses
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The executive law is amended by adding a new section 316-b
2 to read as follows:
3 § 316-b. Third party oversight. 1. A third party entity not employed,
4 engaged in business with or holding office in New York state shall be
5 selected by the legislature and confirmed by the chief diversity offi-
6 cer, as defined in section four-a of this chapter, through a request for
7 proposal process to oversee each contracting agency's procurement proce-
8 dure for contracts made directly or indirectly to minority and women-
9 owned businesses.
10 2. Each contracting agency shall submit the following information to
11 such third party entity on a quarterly basis:
12 (a) total agency procurement including from which industry under
13 subdivision one of section three hundred thirteen of this article each
14 contract is categorized;
15 (b) upcoming confirmed and proposed procurement opportunities includ-
16 ing estimated overall cost and steps taken or to be taken in order to
17 ensure maximum feasible participation of minority and women-owned busi-
18 ness;
19 (c) a list of all bids for each contract including a list of all
20 contractors, known subcontractors, and whether any or all qualify as a
21 minority or women-owned business; and
22 (d) a list of all contractor's awarded waivers with supporting
23 documentation illustrating such contractor's good faith effort to comply
24 with the criteria outlined in subdivision seven of section three hundred
25 thirteen of this article.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03986-01-5
A. 1871 2
1 3. Such third party entity shall develop an evaluation system that
2 clearly delineates and compares each agency's utilization of minority
3 and women-owned businesses and the established procurement goals
4 outlined in subdivision one of section three hundred thirteen of this
5 article.
6 4. Such third party entity shall report annually on the fifteenth day
7 of May directly to the governor, temporary president of the senate and
8 speaker of the assembly the collective findings from the past year's
9 quarterly submissions. Additionally, such report shall be made available
10 on the empire state development division of minority and women's busi-
11 ness development website for public review.
12 § 2. This act shall take effect immediately and shall expire on the
13 same date and in the same manner as article 15-A of the executive law
14 pursuant to subdivision (h) of section 121 of chapter 261 of the laws of
15 1988, as amended.
