Senate Bill S7195

                                 BILL NUMBER:  S7195

 TITLE OF BILL :
An act to amend the public authorities and the executive law, in
relation to database and reporting requirements for contracts with
minority and women-owned businesses


 PURPOSE OR GENERAL IDEA :
To require state agencies and Class A and B public authorities, and
public benefit corporations, to implement databases and reporting for
contracts with minority and women-owned businesses.

 SUMMARY OF SPECIFIC PROVISIONS :
Section 1 amends the public authorities law by adding a new section
2807, which creates a duty for Class A and B public authorities, and
public benefit corporations, to create and maintain databases to track
the issuance of contracts to minority and women-owned business
enterprises (MWBEs), to report upon such contracts.

Section 2 amends the executive law by adding a new section 315-a,
which creates a duty for state agencies to create and maintain
databases to track the issuance of contracts to minority and
women-owned business enterprises (MWBEs), to report upon such
contracts.

              

 JUSTIFICATION :
On March 3, 2010 the New York State Senate Minority and Women-Owned
Business Enterprise (MWBE) Task Force held a hearing to inquire into
the status of State contracting with MWBEs, and reporting upon such
activity.

A number of common themes arose during the hearing, but one
particularly important issue cited by the witnesses was the need for
software that tracks MWBE goals. The Green American Public Private
Partnership (Green America), for example, testified to wide
disparities between MWBE goals and oversight of such goals. One
example used was New York City's (NYC) annual value of prime
contracts, which total roughly $369 million. Under NYC's announced
MWBE prime contract goal, NYC would be expected to let approximately
$107 of contracts to MWBEs, however only $14.9 million of such
contracts were awarded in 2009. The conclusion of the Department of
Small Business Services, which audited NYC's MWBE program, was that
self-monitoring by agencies of MWBE compliance was inadequate. Other
witnesses, such DWM Business Associates, LLC, also pointed to the need
for greater focus upon compliance and reporting issues.

This legislation will require state agencies and public authorities to
track the issuance of MWBE contracts, report upon the award of such
contracts, and post the information on their web sites.  This large
step forward in tracking and compliance reporting will vastly increase
the transparency and accountability of MWBE contracting by state
entities in New York.  Furthermore, such a requirement should place
small or no additional burden(s) upon agencies and authorities. The
Metropolitan Transportation Authority (MTA), for example, stated that
it is already investing in MWBE software so it can track MWBE goals in
real time, so if prime contractors do not meet their goals, the MTA's
compliance unit can act without delay. In addition, the Office of
General Services (OGS) noted the new requirement established by
chapter 429 of 2009, requiring agencies to post their MWBE utilization
plans on their web sites, which is theorized to be complementary to
the requirements of this legislation.

 PRIOR LEGISLATIVE HISTORY :
None.

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
This act shall take effect immediately.