S T A T E O F N E W Y O R K
________________________________________________________________________
6418
2019-2020 Regular Sessions
I N S E N A T E
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
AN ACT to amend the New York city charter, the insurance law, the educa-
tion law and the public authorities law, in relation to opportunities
for small businesses and businesses owned by women and minorities and
emerging business enterprises
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative findings. The legislature finds that disparity
studies conducted by the state and the city of New York demonstrate the
continuing effects of discrimination on businesses owned by minorities
and women in the market where the city conducts its procurements.
Therefore, it continues to be appropriate for the city of New York to
establish and implement reasonable procedures to secure the meaningful
participation of minority and women-owned businesses, as well as emerg-
ing business enterprises, in its procurement process, including but not
limited to measures already authorized by state and local legislation
and rules and the measures authorized in this act.
§ 2. Paragraph 1 of subdivision i of section 311 of the New York city
charter, as amended by chapter 19 of the laws of 2018, is amended to
read as follows:
1. agencies may make procurements of goods [and], services AND
CONSTRUCTION for amounts not exceeding one [hundred fifty thousand]
MILLION dollars from businesses certified [as minority or women-owned
business enterprises] pursuant to section thirteen hundred four of the
charter without a formal competitive process.
§ 3. Subdivision a of section 324 of the New York city charter, as
amended by local law number 17 for the year 2004, is amended to read as
follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11067-01-9
S. 6418 2
a. Agencies may maintain lists of prequalified vendors and entry into
a prequalified group shall be continuously available. Prospective
vendors may be prequalified as contractors for the provision of partic-
ular types of goods, services and construction, in accordance with
general criteria established by rule of the procurement policy board
which may include, but shall not be limited to, the experience, past
performance, ability to undertake work, financial capability, responsi-
bility, and reliability of prospective bidders, AND THEIR STATUS AS A
FIRM CERTIFIED PURSUANT TO SECTION THIRTEEN HUNDRED FOUR OF THE CHARTER,
and which may be supplemented by criteria established by rule of the
agency for the prequalification of vendors for particular types of
goods, services or construction or by criteria published in the City
Record by the agency prior to the prequalification of vendors for a
particular procurement. Such prequalification may be by categories
designated by size and other factors.
§ 4. The New York city charter is amended by adding a new section 1206
to read as follows:
§ 1206. MENTORING PROGRAM. 1. THE DEPARTMENT OF DESIGN AND
CONSTRUCTION MAY ESTABLISH A MENTORING PROGRAM FOR SMALL BUSINESSES AND
BUSINESSES THAT HAVE BEEN CERTIFIED PURSUANT TO SECTION THIRTEEN HUNDRED
FOUR OF THE CHARTER IN THE CONSTRUCTION TRADES. THE DEPARTMENT OF DESIGN
AND CONSTRUCTION MAY DETERMINE THE CRITERIA PURSUANT TO WHICH A BUSINESS
SHALL BE ELIGIBLE FOR AND SELECTED AS A MENTEE BUSINESS PARTICIPATING IN
THE COMPONENTS OF SUCH A PROGRAM UNDER PARAGRAPH C OF SUBDIVISION FIVE
OF THIS SECTION, THE NUMBER OF MENTEE BUSINESSES TO PARTICIPATE IN EACH
SUCH COMPONENT OF SUCH A PROGRAM, THE CRITERIA FOR THE COMPETITIVE
SELECTION OF THE FIRMS THAT WILL PROVIDE MENTORING SERVICES, AND THE
ASSIGNMENT OF A MENTOR TO A SPECIFIC MENTEE BUSINESS.
2. THE DEPARTMENT OF DESIGN AND CONSTRUCTION SHALL BE AUTHORIZED,
NOTWITHSTANDING ANY OTHER PROVISION OF LAW:
A. TO DESIGNATE WHICH ELIGIBLE CONTRACTS SHALL BE MENTORING PROGRAM
CONTRACTS UNDER SUBPARAGRAPHS ONE AND TWO OF PARAGRAPH C OF SUBDIVISION
FIVE OF THIS SECTION, RESPECTIVELY;
B. TO ESTABLISH STANDARDS FOR QUALIFYING MENTEE BUSINESSES TO COMPETE
FOR A MENTORING PROGRAM CONTRACT, PROVIDED THAT NO LESS THAN TWO QUALI-
FIED MENTEE BUSINESSES IN THE PROGRAM MUST SUBMIT RESPONSIVE OFFERS TO
PERFORM THE CONTRACT;
C. TO DETERMINE WHEN BIDS OR PROPOSALS FOR A MENTORING PROGRAM
CONTRACT SHOULD BE RESTRICTED TO MENTEE BUSINESSES THAT, PRIOR TO THE
RECEIPT OF BIDS OR PROPOSALS, HAVE BEEN QUALIFIED FOR SUCH COMPETITION;
D. TO COMPETITIVELY SELECT, DESIGNATE AND CONTRACT WITH ONE OR MORE
EXPERIENCED FIRMS THAT, UNDER THE GENERAL SUPERVISION OF THE DEPARTMENT
OF DESIGN AND CONSTRUCTION, WILL PROVIDE MENTORING SERVICES TO THE
MENTEE BUSINESSES, AND TO ASSIGN SUCH MENTORS ONE OR MORE DESIGNATED
MENTEE BUSINESSES;
E. TO ASSIST MENTEE BUSINESSES THAT HAVE BEEN AWARDED MENTORING
PROGRAM CONTRACTS TO OBTAIN ANY SURETY BOND OR CONTRACT OF INSURANCE
REQUIRED OF THEM IN CONNECTION WITH SUCH CONTRACT ONLY, NOTWITHSTANDING
ANY PROVISION OF SECTION TWO THOUSAND FIVE HUNDRED FOUR OF THE INSURANCE
LAW TO THE CONTRARY; AND
F. IN ADDITION TO THE BENEFITS OF SUCH PROGRAM AND NOTWITHSTANDING ANY
OTHER PROVISION OF LAW, TO PROVIDE MENTEE BUSINESSES TECHNICAL ASSIST-
ANCE IN OBTAINING BID, PAYMENT AND PERFORMANCE BONDING FOR CONTRACTS
THAT ARE NOT MENTORING PROGRAM CONTRACTS, FOR WHICH THE BUSINESSES ARE
OTHERWISE QUALIFIED.
S. 6418 3
3. IF THE TOTAL NUMBER OF QUALIFIED MENTEE BUSINESSES THAT RESPOND TO
A COMPETITION AND ARE CONSIDERED CAPABLE OF MEETING THE SPECIFICATIONS
AND TERMS OF THE INVITATION TO COMPETE IS LESS THAN TWO, OR IF THE
DEPARTMENT OF DESIGN AND CONSTRUCTION DETERMINES THAT ACCEPTANCE OF THE
BEST OFFER WILL RESULT IN THE PAYMENT OF AN UNREASONABLE PRICE, THE
DEPARTMENT OF DESIGN AND CONSTRUCTION SHALL REJECT ALL OFFERS AND WITH-
DRAW THE DESIGNATION OF THE CONTRACT AS A MENTORING PROGRAM CONTRACT. IF
THE DEPARTMENT OF DESIGN AND CONSTRUCTION WITHDRAWS THE DESIGNATION OF
THE CONTRACT AS A MENTORING PROGRAM CONTRACT, THE MENTEE BUSINESSES, IF
ANY, THAT MADE OFFERS SHALL BE NOTIFIED.
4. A MENTOR SHALL PROVIDE SERVICES AND ASSISTANCE TO A MENTEE BUSINESS
AS DESIGNATED BY THE DEPARTMENT OF DESIGN AND CONSTRUCTION, WHICH MAY
INCLUDE THE FOLLOWING:
A. PROVIDE BUSINESS TRAINING IN THE SKILLS NECESSARY TO OPERATE A
SUCCESSFUL BUSINESS AND TO COMPETE FOR AND PERFORM A CONTRACT;
B. PROVIDE TECHNICAL ASSISTANCE TO THE MENTEE BUSINESS TO ASSESS THE
OUTCOME IF THE MENTEE BUSINESS COMPETES FOR BUT IS NOT AWARDED A
CONTRACT;
C. IF THE MENTORING PROGRAM CONTRACT IS AWARDED TO THE MENTEE BUSI-
NESS, PROVIDE GUIDANCE, ADVICE AND TECHNICAL ASSISTANCE TO THE MENTEE
BUSINESS IN THE PERFORMANCE OF THE CONTRACT; AND
D. PROVIDE OTHER TECHNICAL ASSISTANCE TO THE MENTEE BUSINESS TO FACIL-
ITATE LEARNING, TRAINING AND OTHER ISSUES WHICH MAY ARISE.
5. AS USED IN THIS SECTION:
A. "SMALL BUSINESS" MEANS A BUSINESS WHICH (1) IS INDEPENDENTLY OWNED
AND OPERATED; AND (2) HAS ANNUAL REVENUES NOT EXCEEDING A FISCAL LIMITA-
TION OF FIVE MILLION DOLLARS OR SUCH LESSER AMOUNT AS ESTABLISHED BY THE
DEPARTMENT OF DESIGN AND CONSTRUCTION PURSUANT TO THIS SECTION.
B. "MENTORING PROGRAM CONTRACT" MEANS A CONTRACT DESIGNATED BY THE
DEPARTMENT OF DESIGN AND CONSTRUCTION, IN AN ESTIMATED AMOUNT OF NOT
MORE THAN ONE MILLION FIVE HUNDRED THOUSAND DOLLARS FOR CONTRACTS UNDER
SUBPARAGRAPH ONE OF PARAGRAPH C OF THIS SUBDIVISION AND THREE MILLION
DOLLARS FOR CONTRACTS UNDER SUBPARAGRAPH TWO OF SUCH PARAGRAPH, FOR
WHICH BIDS OR PROPOSALS ARE TO BE INVITED AND ACCEPTED ONLY FROM BUSI-
NESSES THAT ARE ENROLLED IN A MENTORING PROGRAM AND HAVE BEEN SELECTED
BY THE DEPARTMENT OF DESIGN AND CONSTRUCTION TO COMPETE FOR THE
CONTRACT.
C. "MENTORING PROGRAM" IS A PROGRAM ESTABLISHED PURSUANT TO THIS
SECTION TO PROVIDE MENTEE BUSINESSES WITH THE OPPORTUNITY:
(1) FOR UP TO NINE YEARS, TO COMPETE FOR AND, WHERE AWARDED, TO
PERFORM CERTAIN CONTRACTS DESIGNATED FOR INCLUSION IN THE MENTORING
PROGRAM, WITH THE ASSISTANCE OF A COMPETITIVELY SELECTED MENTOR FIRM
THAT HAS EXTENSIVE MANAGEMENT AND MENTORING EXPERIENCE, WITH THE MENTOR
PROVIDING THE MENTEE BUSINESS WITH ADVICE AND ASSISTANCE IN COMPETING
FOR AND MANAGING CONTRACTS; AND
(2) FOR A MENTEE BUSINESS THAT THE DEPARTMENT OF DESIGN AND
CONSTRUCTION HAS DETERMINED HAS SUCCESSFULLY COMPLETED THE PROGRAM UNDER
SUBPARAGRAPH ONE OF THIS PARAGRAPH, FOR UP TO FOUR ADDITIONAL YEARS, (A)
ADDITIONAL OPPORTUNITIES TO COMPETE WITH OTHER DESIGNATED MENTEE BUSI-
NESSES IN THE PROGRAM FOR CERTAIN CONTRACTS TO BE DESIGNATED FOR INCLU-
SION UNDER THIS SUBPARAGRAPH AND, WHERE AWARDED, TO PERFORM SUCH
CONTRACTS, WITH THE FURTHER ASSISTANCE OF A COMPETITIVELY SELECTED
MENTOR FIRM THAT HAS EXTENSIVE MANAGEMENT AND MENTORING EXPERIENCE, WITH
THE MENTOR PROVIDING THE MENTEE WITH ADVICE AND TECHNICAL ASSISTANCE IN
COMPETING FOR AND MANAGING CONTRACTS, AND (B) ASSISTANCE, AS DETERMINED
BY THE DEPARTMENT OF DESIGN AND CONSTRUCTION, FOR SUCH A MENTEE BUSINESS
S. 6418 4
TO OBTAIN BONDING FOR CONTRACTS THAT ARE COMPETITIVELY AWARDED PURSUANT
TO ANY OTHER PROVISION OF LAW.
6. COMMENCING ON OCTOBER FIRST, TWO THOUSAND TWENTY, THE DEPARTMENT OF
DESIGN AND CONSTRUCTION SHALL SUBMIT AN ANNUAL REPORT TO THE GOVERNOR
AND THE LEGISLATURE THAT CONTAINS THE FOLLOWING INFORMATION FOR THE
PRECEDING CITY FISCAL YEAR:
A. THE TOTAL NUMBER AND TOTAL DOLLAR VALUE OF MENTORING PROGRAM
CONTRACTS; AND
B. MENTORING PROGRAM PARTICIPATION RATES.
§ 5. Paragraph 2 of subsection (a) of section 2504 of the insurance
law is amended to read as follows:
(2) In paragraph one hereof, "public corporation" and "public authori-
ty" shall not include:
(A) a public corporation or public authority created pursuant to
agreement or compact with another state, or
(B) the city of New York, a public corporation or public authority, in
connection with the construction of electrical generating and trans-
mission facilities or construction, extensions and additions of light
rail or heavy rail rapid transit and commuter railroads, OR
(C) THE CITY OF NEW YORK, OR A PUBLIC CORPORATION OR PUBLIC AUTHORITY
OPERATING PRIMARILY WITHIN THE CITY OF NEW YORK, IN CONNECTION WITH
CONTRACTS THAT INCLUDE PARTICIPATION REQUIREMENTS FOR BUSINESS ENTER-
PRISES OWNED BY MINORITIES OR WOMEN OR EMERGING BUSINESS ENTERPRISES.
§ 6. Paragraph (a) of subdivision 36 of section 2590-h of the educa-
tion law, as amended by chapter 345 of the laws of 2009, is amended to
read as follows:
(a) Such policy shall specifically include:
(i) a competitive sealed bidding process for the awarding of contracts
in which sealed bids are publicly solicited and opened and that a
contract is awarded to the lowest responsive, responsible bidder;
(ii) processes for awarding contracts using alternatives to compet-
itive sealed bidding where competitive sealed bidding is not practicable
or not advantageous, in which case the most competitive alternative
method of procurement, which is appropriate under the circumstances,
shall be used consistent with the requirements of subparagraph (vii) of
this paragraph;
(iii) measures to enhance the ability of minority and women owned
business enterprises AND EMERGING BUSINESS ENTERPRISES, INCLUDING FIRMS
CERTIFIED PURSUANT TO ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW AND FIRMS
CERTIFIED PURSUANT TO SECTION THIRTEEN HUNDRED FOUR OF THE NEW YORK CITY
CHARTER, to compete for contracts and to ensure their meaningful partic-
ipation in the procurement process. THE SCHOOL DISTRICT SHALL HAVE THE
AUTHORITY TO USE THE SAME MEASURES AS ARE AVAILABLE TO THE CITY OF NEW
YORK PURSUANT TO THE GENERAL MUNICIPAL LAW, THE NEW YORK CITY CHARTER,
AND THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK;
(iv) the manner for administering contracts and overseeing the
performance of contracts and contractors;
(v) standards and procedures to be used in determining whether bidders
are responsible;
(vi) circumstances under which procurement may be used for the
provision of technical, consultant or personal services;
(vii) requiring written justification for the basis, including the
efficiency, benefit, and necessity, for awarding a contract using
procurement methods other than competitive sealed bidding including
competitive sealed proposals and sole source contracts, and for awarding
technical, consultant, or personal services contracts, franchises, revo-
S. 6418 5
cable consents, or concessions. Such written justification shall be
filed with the comptroller of the city of New York along with the corre-
sponding contract, franchise, revocable consent, or concession;
(viii) maintaining a file for every contract franchise, revocable
consent, and concession containing information pertaining to the solic-
itation, award and management of every such contract or agreement. Such
file shall contain copies of each determination, writing or filing
required by this subdivision and shall be open to public inspection with
adequate protection for information which is confidential;
(ix) a process for the filing of all contracts, franchises, revocable
consents, and concessions with the comptroller of the city of New York;
(x) a process for emergency procurement in the case of an unforeseen
danger to life, safety, property or a necessary service provided that
such procurement shall be made with such competition as is practicable
under the circumstances and that a written determination of the basis
for the emergency procurement shall be required and filed with the comp-
troller of the city of New York when such emergency contract is filed
with such comptroller; and
(xi) procedures for the fair and equitable resolution of contract
disputes.
§ 7. Paragraph b of subdivision 2 of section 1743 of the public
authorities law, as added by chapter 562 of the laws of 1990, is amended
to read as follows:
b. The authority shall establish and implement reasonable procedures
to secure the meaningful participation of minority and women-owned busi-
ness enterprises in its procurement process. IN ADDITION TO PROCEDURES
IT HAS ALREADY ADOPTED FOR SUCH PURPOSE, THE AUTHORITY MAY USE THE SAME
MEASURES AS ARE AVAILABLE TO THE CITY OF NEW YORK PURSUANT TO THE GENER-
AL MUNICIPAL LAW, THE NEW YORK CITY CHARTER, AND THE ADMINISTRATIVE CODE
OF THE CITY OF NEW YORK.
§ 8. This act shall take effect immediately and shall apply to any
contract entered into, renewed, modified or amended on or after such
date; provided that the amendments to paragraph (a) of subdivision 36 of
section 2590-h of the education law made by section six of this act
shall not affect the expiration and reversion of such subdivision pursu-
ant to section 34 of chapter 91 of the laws of 2002, as amended and
shall be deemed to expire therewith.
