S T A T E   O F   N E W   Y O R K
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                                  9700

                          I N  A S S E M B L Y

                              April 5, 2016
                               ___________

Introduced by M. of A. BICHOTTE -- read once and referred to the Commit-
  tee on Governmental Operations

AN ACT to amend the state finance law, in relation to requiring utiliza-
  tion  of  minority and women-owned business enterprises as subcontrac-
  tors as a condition when awarding sole source  procurement  contracts;
  to  amend the executive law, in relation to the issuance of waivers of
  the obligation to comply with the minority  and  women-owned  business
  enterprise  participation  requirements of a contract if such contract
  is a single source or sole source procurement contract; to  amend  the
  general  municipal  law,  in  relation  to requiring municipalities to
  require contract award recipients to utilize the services of  minority
  and  women-owned  business enterprises; to amend the executive law, in
  relation to making conforming changes; and providing for the repeal of
  certain provisions upon expiration thereof

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

  Section  1.  Paragraph b of subdivision 10 of section 163 of the state
finance law is amended by adding a new subparagraph  (iii)  to  read  as
follows:
  (III)  ALL  SINGLE  SOURCE  OR  SOLE SOURCE PROCUREMENT CONTRACTS MADE
PURSUANT TO THE PROVISIONS OF THIS  PARAGRAPH  SHALL  REQUIRE  THAT  THE
AWARD  RECIPIENT  COMPLY WITH THE PROVISIONS OF ARTICLE FIFTEEN-A OF THE
EXECUTIVE LAW RELATING TO MINORITY AND WOMEN-OWNED  BUSINESS  ENTERPRISE
PARTICIPATION WHEN CONTRACTING WITH SUBCONTRACTORS.
  S  2. Subdivision 6 of section 313 of the executive law, as amended by
chapter 175 of the laws of 2010, is amended to read as follows:
  6. (A) Where it appears that a contractor cannot, after a  good  faith
effort,  comply  with  the  minority and women-owned business enterprise
participation requirements set forth in a particular state  contract,  a
contractor  may  file  a written application with the contracting agency
requesting a partial or total waiver of such requirements setting  forth
the  reasons  for  such contractor's inability to meet any or all of the
participation requirements together with an explanation of  the  efforts
undertaken  by the contractor to obtain the required minority and women-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD14863-01-6

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owned business enterprise participation. In implementing the  provisions
of  this  section,  the contracting agency shall consider the number and
types of minority and women-owned business enterprises  located  in  the
region  in which the state contract is to be performed, the total dollar
value of the state contract, the scope of work to be performed  and  the
project size and term. If, based on such considerations, the contracting
agency  determines there is not a reasonable availability of contractors
on the list of certified business to furnish services for  the  project,
it  shall issue a waiver of compliance to the contractor. In making such
determination, the contracting agency shall first  consider  the  avail-
ability  of  other  business enterprises located in the region and shall
thereafter consider the financial ability of  minority  and  women-owned
businesses  located  outside  the  region in which the contract is to be
performed to perform the state contract.
  (B) A CONTRACTING AGENCY SHALL NOT ISSUE A TOTAL WAIVER OF  THE  OBLI-
GATION  TO  COMPLY WITH THE MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISE
PARTICIPATION REQUIREMENTS OF A CONTRACT IF SUCH CONTRACT  IS  A  SINGLE
SOURCE  OR  SOLE SOURCE PROCUREMENT CONTRACT AS DESCRIBED IN SECTION ONE
HUNDRED SIXTY-THREE OF THE STATE FINANCE LAW; PROVIDED, HOWEVER, THAT IF
THE CONTRACTING AGENCY DETERMINES THERE IS NOT A REASONABLE AVAILABILITY
OF CONTRACTORS ON THE LIST OF CERTIFIED BUSINESS TO FURNISH SERVICES FOR
THE PROJECT, THE CONTRACTING  AGENCY  MAY  ISSUE  A  PARTIAL  WAIVER  OF
COMPLIANCE TO THE CONTRACTOR.
  S  3.  Section 103 of the general municipal law is amended by adding a
new subdivision 17 to read as follows:
  17. ALL CONTRACTS AWARDED PURSUANT TO THE PROVISIONS OF THIS  SECTION,
INCLUDING  SINGLE  SOURCE  OR  SOLE  SOURCE PROCUREMENT CONTRACTS, SHALL
REQUIRE THE CONTRACT RECIPIENT TO COMPLY WITH THE PROVISIONS OF  SECTION
THREE  HUNDRED  THIRTEEN  OF  THE EXECUTIVE LAW, TO THE EXTENT THAT SUCH
PROVISIONS APPLY; PROVIDED, HOWEVER, THAT A CONTRACT RECIPIENT GRANTED A
WAIVER OF COMPLIANCE AS PROVIDED IN SECTION THREE  HUNDRED  THIRTEEN  OF
THE  EXECUTIVE  LAW  SHALL  BE  DEEMED  TO  BE  IN  COMPLIANCE WITH SUCH
PROVISIONS.
  S 4. Subdivisions 2, 3 and 13 of section 310  of  the  executive  law,
subdivisions  2  and  3  as added by chapter 261 of the laws of 1988 and
subdivision 13 as amended by chapter  506  of  the  laws  of  2009,  are
amended to read as follows:
  2.  "Contracting  agency"  shall  mean;  (a) a state agency which is a
party or a proposed party to a state contract or, in the case of a state
contract described in paragraph (c)  of  subdivision  thirteen  of  this
section,  shall  mean the New York state housing finance agency, housing
trust fund corporation or affordable housing corporation, whichever  has
made  or proposes to make the grant or loan for the state assisted hous-
ing project; AND (B) A MUNICIPALITY WHICH IS A PARTY OR A PROPOSED PARTY
TO A MUNICIPAL CONTRACT.
  3. "Contractor" shall  mean  an  individual,  a  business  enterprise,
including  a  sole  proprietorship, a partnership, a corporation, a not-
for-profit corporation, or any other  party  to  a  state  OR  MUNICIPAL
contract, or a bidder in conjunction with the award of a state OR MUNIC-
IPAL contract or a proposed party to a state OR MUNICIPAL contract.
  13.  "State  contract" shall mean: (a) a written agreement or purchase
order instrument, providing for a total expenditure in excess  of  twen-
ty-five  thousand  dollars, whereby a contracting agency is committed to
expend or does expend funds in return for labor, services including  but
not  limited  to  legal,  financial  and  other  professional  services,
supplies, equipment, materials or any combination of the  foregoing,  to

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be  performed  for,  or rendered or furnished to the contracting agency;
(b) a written agreement in excess of one hundred thousand dollars where-
by a contracting agency is committed to expend or does expend funds  for
the  acquisition, construction, demolition, replacement, major repair or
renovation of real property and improvements thereon; and (c) a  written
agreement in excess of one hundred thousand dollars whereby the owner of
a  state  assisted housing project is committed to expend or does expend
funds for the acquisition, construction, demolition, replacement,  major
repair  or renovation of real property and improvements thereon for such
project.   FOR THE PURPOSES OF  THIS  ARTICLE,  "STATE  CONTRACT"  SHALL
INCLUDE  MUNICIPAL  CONTRACTS AS DESCRIBED IN SUBDIVISION TWENTY-FOUR OF
THIS SECTION.
  S 5. Section 310 of the executive law  is  amended  by  adding  a  new
subdivision 24 to read as follows:
  24.  "MUNICIPAL  CONTRACT"  SHALL  MEAN:  (A)  A  WRITTEN AGREEMENT OR
PURCHASE ORDER INSTRUMENT, PROVIDING FOR A TOTAL EXPENDITURE  IN  EXCESS
OF  TWENTY-FIVE THOUSAND DOLLARS, WHEREBY A MUNICIPAL CONTRACTING AGENCY
IS COMMITTED TO EXPEND  OR  DOES  EXPEND  FUNDS  IN  RETURN  FOR  LABOR,
SERVICES INCLUDING BUT NOT LIMITED TO LEGAL, FINANCIAL AND OTHER PROFES-
SIONAL  SERVICES,  SUPPLIES,  EQUIPMENT, MATERIALS OR ANY COMBINATION OF
THE FOREGOING, TO BE PERFORMED FOR, OR  RENDERED  OR  FURNISHED  TO  THE
MUNICIPAL  CONTRACTING  AGENCY; (B) A WRITTEN AGREEMENT IN EXCESS OF ONE
HUNDRED THOUSAND DOLLARS  WHEREBY  A  MUNICIPAL  CONTRACTING  AGENCY  IS
COMMITTED   TO   EXPEND  OR  DOES  EXPEND  FUNDS  FOR  THE  ACQUISITION,
CONSTRUCTION, DEMOLITION, REPLACEMENT, MAJOR  REPAIR  OR  RENOVATION  OF
REAL  PROPERTY  AND IMPROVEMENTS THEREON; AND (C) A WRITTEN AGREEMENT IN
EXCESS OF ONE HUNDRED THOUSAND DOLLARS WHEREBY THE OWNER OF A  MUNICIPAL
ASSISTED HOUSING PROJECT IS COMMITTED TO EXPEND OR DOES EXPEND FUNDS FOR
THE  ACQUISITION, CONSTRUCTION, DEMOLITION, REPLACEMENT, MAJOR REPAIR OR
RENOVATION OF REAL PROPERTY AND IMPROVEMENTS THEREON FOR SUCH PROJECT.
  S 6. 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; provided, however that the amendments to  paragraph  b
of  subdivision  10  of  section  163  of  the state finance law made by
section one of this act shall not affect the repeal of such section  and
shall  be deemed repealed therewith or shall be deemed repealed upon the
expiration of article 15-A of the executive law, whichever  shall  occur
first.