S T A T E O F N E W Y O R K
________________________________________________________________________
7266--A
2021-2022 Regular Sessions
I N A S S E M B L Y
April 29, 2021
___________
Introduced by M. of A. BICHOTTE HERMELYN, RODRIGUEZ, DICKENS, BARRON,
SEAWRIGHT, STIRPE, TAYLOR -- Multi-Sponsored by -- M. of A. DAVILA --
read once and referred to the Committee on Insurance -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the insurance law, the New York city charter and the New
York city public works investment act, in relation to insurance in
certain public construction contracts, opportunities for businesses
owned by women and minorities and considering contractor diversity
practices in making award determinations
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph 2 of subsection (a) of section 2504 of the insur-
ance 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, A PUBLIC CORPORATION OR PUBLIC AUTHORITY,
OPERATING PRIMARILY WITHIN THE CITY OF NEW YORK IN CONNECTION WITH
CONTRACTS THAT: (I) INCLUDE PARTICIPATION REQUIREMENTS FOR BUSINESSES
CERTIFIED AS MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISES PURSUANT TO
ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW, THOSE CERTIFIED AS MINORITY OR
WOMEN-OWNED BUSINESS ENTERPRISES OR EMERGING BUSINESS ENTERPRISES PURSU-
ANT TO SECTION THIRTEEN HUNDRED FOUR OF THE NEW YORK CITY CHARTER, OR
THOSE CERTIFIED AS DISADVANTAGED BUSINESS ENTERPRISES PURSUANT TO PART
26 OF TITLE 49 OF THE CODE OF FEDERAL REGULATIONS, OR ANY SUCCESSOR
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10927-03-1
A. 7266--A 2
PROVISIONS; OR (II) ARE AWARDED TO BUSINESSES CERTIFIED AS MINORITY OR
WOMEN-OWNED BUSINESS ENTERPRISES PURSUANT TO ARTICLE FIFTEEN-A OF THE
EXECUTIVE LAW OR THOSE CERTIFIED AS MINORITY OR WOMEN-OWNED BUSINESS
ENTERPRISES OR EMERGING BUSINESS ENTERPRISES PURSUANT TO SECTION THIR-
TEEN HUNDRED FOUR OF THE NEW YORK CITY CHARTER; OR (III) INCLUDE
PROJECTS RANGING FROM STREETS, HIGHWAYS, SEWERS AND WATER MAINS TO
PUBLIC SAFETY, HEALTH AND HUMAN SERVICE FACILITIES, AS WELL AS CULTURAL
INSTITUTIONS AND LIBRARIES.
§ 2. Subdivision i of section 311 of the New York city charter, as
amended by chapter 19 of the laws of 2018, paragraph 1 as amended by
chapter 98 of the laws of 2019, is amended to read as follows:
i. In addition to other rules authorized by this section, the board
may provide by rule that:
1. agencies may make procurements of goods, services and construction
for amounts not exceeding [five hundred thousand] ONE MILLION dollars
from businesses certified as minority or women-owned business enter-
prises pursuant to section thirteen hundred four of the charter without
a formal competitive process.
2. agencies may award contracts for goods and services on the basis of
best value to the bidder [or offerer] which optimizes quality, cost and
efficiency, among responsive and responsible bidders [or offerers]. Such
basis shall reflect, wherever possible, objective and quantifiable anal-
ysis and may include the [prospective] bidder's record of complying with
existing labor standards, maintaining harmonious labor relations, IMPLE-
MENTING SOUND DIVERSITY PRACTICES and protecting the health and safety
of workers. Such basis may also identify a quantitative factor for
awarding of contracts for bidders [or offerers] that are businesses
certified as minority or women-owned business enterprises pursuant to
article [fifteen-a] FIFTEEN-A of the executive law and section thirteen
hundred four of the charter. Where an agency identifies a quantitative
factor pursuant to this paragraph, the agency must specify that busi-
nesses certified as minority or women-owned business enterprises pursu-
ant to article [fifteen-a] FIFTEEN-A of the executive law as well as
those certified as minority or women-owned business enterprises pursuant
to section thirteen hundred four of the charter are eligible to qualify
for such factor. Nothing in this paragraph shall be construed as a
requirement that such businesses be concurrently certified as minority
or women-owned business enterprises under both article [fifteen-a]
FIFTEEN-A of the executive law and section thirteen hundred four of the
charter to qualify for such quantitative factor.
3. AGENCIES AWARDING CONSTRUCTION CONTRACTS ON THE BASIS OF COMPET-
ITIVE SEALED BIDDING PURSUANT TO SECTION THREE HUNDRED THIRTEEN OF THE
CHARTER MAY IDENTIFY A QUANTITATIVE FACTOR FOR BIDDERS THAT ARE BUSI-
NESSES CERTIFIED AS MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISES PURSU-
ANT TO ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW AND SECTION THIRTEEN
HUNDRED FOUR OF THE CHARTER. WHERE AN AGENCY IDENTIFIES A QUANTITATIVE
FACTOR PURSUANT TO THIS PARAGRAPH, THE AGENCY MUST SPECIFY THAT BUSI-
NESSES CERTIFIED AS MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISES PURSU-
ANT TO ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW AS WELL AS THOSE CERTIFIED
AS MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISES PURSUANT TO SECTION
THIRTEEN HUNDRED FOUR OF THE CHARTER ARE ELIGIBLE TO QUALIFY FOR SUCH
FACTOR. NOTHING IN THIS PARAGRAPH SHALL BE CONSTRUED AS A REQUIREMENT
THAT SUCH BUSINESSES BE CONCURRENTLY CERTIFIED AS MINORITY OR WOMEN-
OWNED BUSINESS ENTERPRISES UNDER BOTH ARTICLE FIFTEEN-A OF THE EXECUTIVE
LAW AND SECTION THIRTEEN HUNDRED FOUR OF THE CHARTER TO QUALIFY FOR SUCH
QUANTITATIVE FACTOR. AGENCIES MAY ALSO IDENTIFY A QUANTITATIVE FACTOR
A. 7266--A 3
FOR AWARDING OF SUCH CONSTRUCTION CONTRACTS BASED ON EACH BIDDER'S
RECORD OF IMPLEMENTING SOUND DIVERSITY PRACTICES. SUCH BASIS SHALL
REFLECT, WHEREVER POSSIBLE, OBJECTIVE AND QUANTIFIABLE ANALYSIS.
4. the rule or rules promulgated to implement paragraph one of this
subdivision shall provide that the city shall, commencing on the first
of October of the first full calendar year following the adoption of
such rule or rules, submit an annual report to the governor and the
state legislature of the total number and total dollar value of procure-
ments of goods and services for amounts not exceeding [one hundred fifty
thousand dollars] THE DOLLAR THRESHOLD FOR MAKING PROCUREMENTS WITHOUT A
FORMAL COMPETITIVE PROCESS, AS ESTABLISHED BY RULE PURSUANT TO PARAGRAPH
ONE OF THIS SUBDIVISION, from:
(i) businesses certified as minority or women-owned business enter-
prises pursuant to section thirteen hundred four of the charter;
(ii) all other businesses; and
(iii) information about the number of businesses certified as minority
or women-owned business enterprises pursuant to section thirteen hundred
four of this charter able to perform the specific type and scale of work
involved in each procurement.
§ 3. Paragraph 13 of subdivision b of section 2 of chapter 749 of the
laws of 2019, constituting the New York city public works investment
act, is amended to read as follows:
(13) The proposer's record of complying with existing labor standards,
maintaining harmonious labor relations, and protecting the health and
safety of workers and payment of wages above any locally-defined living
wage; [and]
§ 4. Paragraph 14 of subdivision b of section 2 of chapter 749 of the
laws of 2019, constituting the New York city public works investment
act, is renumbered paragraph 15 and a new paragraph 14 is added to read
as follows:
(14) THE PROPOSER'S RECORD OF IMPLEMENTING SOUND DIVERSITY PRACTICES;
AND
§ 5. This act shall take effect immediately, provided, however, that
the amendments to paragraphs 13 and 14 of subdivision b of section 2 of
chapter 749 of the laws of 2019, constituting the New York city public
works investment act, made by sections three and four of this act shall
not affect the repeal of such chapter pursuant to section 14 of chapter
749 of the laws of 2019, as amended, and shall be deemed repealed there-
with.