S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5488
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 19, 2021
                                ___________
 
 Introduced  by  M.  of A. BICHOTTE HERMELYN, HYNDMAN, WALKER, SEAWRIGHT,
   SOLAGES, GOTTFRIED, JEAN-PIERRE, COOK -- read once and referred to the
   Committee 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.
   § 2. Subdivision 6 of section 313 of the executive law is  amended  by
 adding a new paragraph c to read as follows:
   (C)  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06465-01-1

 A. 5488                             2
 
 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.
   § 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.
   §  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 96 of the laws of 2019, 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
 be  performed  for,  on  behalf  of,  or  rendered  or  furnished to the
 contracting agency; (b) a written agreement in  excess  of  one  hundred
 thousand  dollars whereby 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 improve-
 ments 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.
   § 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,

 A. 5488                             3
 
 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.
   § 6. This act shall take effect immediately; provided,  however,  that
 section  three of this act 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 sections 310 and 313 of the executive
 law made by sections two, four and five of this act shall not affect the
 expiration of such sections  and  shall  be  deemed  expired  therewith;
 provided,  further  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.