S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2159
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 23, 2023
                                ___________
 
 Introduced  by  M. of A. PEOPLES-STOKES -- read once and referred to the
   Committee on Corporations, Authorities and Commissions
 
 AN ACT to amend the public  authorities  law,  in  relation  to  certain
   contracts for the Buffalo Sewer Authority
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 1181 of the public authorities law, as  amended  by
 chapter 665 of the laws of 1987, is amended to read as follows:
   §  1181. Construction contracts. If the project, or any portion there-
 of, or any addition, betterment or extension to the facilities, shall be
 constructed pursuant to a contract for which the estimated cost  exceeds
 [seven]  FIVE HUNDRED thousand dollars PRIOR TO THE DATE WHEN WORK UNDER
 THE AUTHORITY'S LONG TERM CONTROL PLAN  IS  COMPLETED,  OR,  AFTER  SUCH
 DATE, THE AMOUNT PROVIDED FOR EXPENDITURES OF PUBLIC WORK IN SUBDIVISION
 ONE  OF  SECTION  ONE  HUNDRED  THREE OF THE GENERAL MUNICIPAL LAW, such
 contract shall be awarded to the lowest responsible bidder after  adver-
 tisement  for  bids.  The  board  may make rules and regulations for the
 submission of bids and the construction of the project or  such  portion
 thereof or such addition, betterment, or extension. No contract shall be
 entered  into  for construction of the project or any portion thereof or
 any addition, betterment or extension to  the  facilities,  or  for  the
 purchase  of  materials, unless the contractor shall give an undertaking
 with a sufficient surety or sureties approved by the authority and in an
 amount fixed by the authority,  for  the  faithful  performance  of  the
 contract.  As to contracts entered into for construction, such undertak-
 ing shall provide, among other things, that the  person  or  corporation
 entering into such contract with the authority, will pay for all materi-
 als  furnished and services rendered for the performance of the contract
 and that any person or corporation furnishing such materials or  render-
 ing such services may maintain an action to recover for the same against
 the  obligor in the undertaking as though such person or corporation was
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01845-01-3
              

 A. 2159                             2
 
 named therein, provided the action is brought within one year after  the
 time  the  cause  of  action  accrued.  Nothing in this section shall be
 construed to limit the power of the authority to construct  the  project
 or  any  portion thereof or any addition, betterment or extension to the
 facilities directly by  the  officers,  agents,  and  employees  of  the
 authority  or  otherwise  than  by contract.   The authority may proceed
 jointly with the state of New York in the construction  of  any  highway
 which  also  includes sewage and storm water facilities and by agreement
 with the state of New York fix and  determine  the  amount  which  shall
 constitute  the  contribution  by  the  authority toward the cost of the
 construction by the state of New York of such facilities  in  connection
 with  the construction or improvement of any highway. The portion of the
 cost to be paid by the authority shall be deposited with the state comp-
 troller, who  is  authorized  to  receive  and  accept  the  same.  Upon
 completion of any project authorized by this section the commissioner of
 transportation shall render to the authority an itemized statement show-
 ing  in full (a) the amount of money deposited as hereinbefore provided,
 and (b) all disbursements made pursuant to  this  section.  Any  surplus
 money  shall be paid to such authority on the warrant of the comptroller
 on vouchers therefore approved by the commissioner of transportation.
   § 2. The public authorities law is amended by  adding  a  new  section
 1181-a to read as follows:
   §  1181-A.  SMALL  BUSINESS SET-ASIDE CONTRACTS FOR THE AUTHORITY.  1.
 DEFINITIONS. AS USED IN THIS SECTION, UNLESS A DIFFERENT MEANING CLEARLY
 APPEARS FROM THE CONTEXT:
   (A) "MINORITY BUSINESS CONCERN" SHALL MEAN A  BUSINESS  ENTERPRISE  IN
 WHICH  AT  LEAST  FIFTY-ONE  PERCENT  IS OWNED BY PERSONS WHO ARE NATIVE
 AMERICAN OR ALASKAN NATIVE, ASIAN AMERICAN, BLACK  OR  AFRICAN-AMERICAN,
 HISPANIC OR LATINO, OR NATIVE HAWAIIAN OR PACIFIC ISLANDER.
   (B) "SMALL BUSINESS" SHALL MEAN A BUSINESS THAT IS INDEPENDENTLY OWNED
 AND  OPERATED,  AND WHICH IS NOT DOMINANT IN THE FIELD OF OPERATION. THE
 AUTHORITY SHALL ESTABLISH A DETAILED DEFINITION BY RESOLUTION ADOPTED AT
 A PUBLIC MEETING BASED ON FACTORS SUCH AS LIMITS IN NUMBER OF EMPLOYEES,
 ANNUAL REVENUES, AND/OR PERSONAL NET WORTH OF OWNERS.
   (C) "SMALL BUSINESS SET-ASIDE" SHALL MEAN A REQUEST FOR WHICH BIDS ARE
 TO BE INVITED AND ACCEPTED ONLY FROM SMALL  BUSINESSES  BY  THE  GENERAL
 MANAGER.
   2.  THE  GENERAL MANAGER HAS THE AUTHORITY TO DESIGNATE AS SMALL BUSI-
 NESS  SET-ASIDES  SPECIFIED  CONTRACTS  FOR  PURCHASES,   SERVICES,   OR
 CONSTRUCTION.  THE  DESIGNATION SHALL BE MADE PRIOR TO THE ADVERTISEMENT
 FOR BIDS AS PROVIDED BY LAW, AND WHEN THE ADVERTISEMENT IS PUBLISHED  IT
 SHALL  INDICATE THE PURCHASES OR WORK THAT HAVE BEEN DESIGNATED AS SMALL
 BUSINESS SET-ASIDES. TO EFFECTUATE THE PURPOSES  OF  THIS  SECTION,  THE
 GENERAL  MANAGER MAY EXERCISE THIS AUTHORITY WHENEVER THERE IS A REASON-
 ABLE EXPECTATION THAT BIDS WILL BE OBTAINED FROM AT  LEAST  THREE  SMALL
 BUSINESSES  CAPABLE  OF  FURNISHING THE DESIRED PROPERTY OR SERVICE AT A
 FAIR AND REASONABLE PRICE.
   3. IN THE CASE OF CONTRACTS DESIGNATED AS SMALL  BUSINESS  SET-ASIDES,
 INVITATIONS  TO  BID SHALL BE CONFINED TO SMALL BUSINESSES AND BIDS FROM
 OTHER BUSINESSES SHALL BE REJECTED. THE PURCHASE, CONTRACT  OR  EXPENDI-
 TURE  OF  FUNDS  SHALL BE AWARDED TO THE LOWEST RESPONSIBLE BIDDER AMONG
 THE SMALL BUSINESSES, CONSIDERING  CONFORMITY  WITH  SPECIFICATIONS  AND
 TERMS, IN ACCORDANCE WITH THE AUTHORITY'S PURCHASING GUIDELINES.
   4.  A  PORTION OF SMALL BUSINESS SET-ASIDES SHALL BE SET ASIDE IN TURN
 AS EXCLUSIVELY AS POSSIBLE, TO SMALL BUSINESSES OWNED OR  CONTROLLED  BY
 MINORITY  BUSINESS  CONCERNS,  AND  SUCH BUSINESSES SHALL CONSTITUTE NOT
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 LESS THAN TWENTY-FIVE PERCENT  OF  THE  SUCCESSFUL  BIDDERS  UNDER  THIS
 TITLE.
   5.  IF  THE TOTAL NUMBER OF SMALL BUSINESSES RESPONDING TO THE INVITA-
 TION TO BID AND CONSIDERED CAPABLE OF  MEETING  THE  SPECIFICATIONS  AND
 TERMS  OF  THE  INVITATION  TO BID IS LESS THAN THREE, OR IF THE GENERAL
 MANAGER DETERMINES THAT ACCEPTANCE OF THE BEST BID WILL  RESULT  IN  THE
 PAYMENT  OF  AN UNREASONABLE PRICE, THE GENERAL MANAGER SHALL REJECT ALL
 BIDS AND WITHDRAW THE DESIGNATION OF SMALL BUSINESS SET-ASIDE.
   6. IF THE GENERAL MANAGER WITHDRAWS THE DESIGNATION OF SMALL  BUSINESS
 SET-ASIDE,  THE AUTHORITY SHALL NOTIFY THE BIDDERS OF THE REASON WHY THE
 BIDS WERE REJECTED. INVITATIONS TO BID CONTAINING THE SAME OR  REWRITTEN
 SPECIFICATIONS AND TERMS SHALL THEN BE RE-ISSUED WITHOUT THE DESIGNATION
 OF SMALL BUSINESS SET-ASIDE.
   § 3. This act shall take effect immediately.