Assembly Bill A7150

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7150
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 20, 2025
                                ___________
 
 Introduced  by  M.  of A. BICHOTTE HERMELYN, SIMON, ZINERMAN, SEAWRIGHT,
   JACKSON, DAVILA -- read once and referred to the Committee on  Govern-
   mental Operations
 
 AN  ACT  to  amend  the  executive  law, in relation to participation by
   minority group  members  and  women  with  respect  to  certain  state
   contracts; and to amend the state finance law, in relation to perform-
   ance and payment bond requirements
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions 3 and 4 of section 311 of the  executive  law,
 subdivision  3  as  added by chapter 261 of the laws of 1988, paragraphs
 (d) and (e) of subdivision 3 as amended by chapter 55  of  the  laws  of
 1992,  paragraphs  (f), (h), (i), (j), (k), (l) and (m) of subdivision 3
 as amended by chapter 40 of the laws of 2023, the opening  paragraph  of
 subdivision  4 as amended and paragraph (d-1) of subdivision 3 and para-
 graphs (d) and (e) of subdivision 4 as added by chapter 96 of  the  laws
 of  2019, paragraph (g) of subdivision 3 as amended by section 1 of part
 BB of chapter 59 of the laws of 2006, and subdivision 4  as  amended  by
 chapter 361 of the laws of 2009, are amended to read as follows:
   3. The director shall have the following powers and duties:
   (a)  to  encourage and assist contracting agencies in their efforts to
 increase participation by minority and women-owned business  enterprises
 on state contracts and subcontracts [so as] to facilitate the award of a
 fair  share  of  such contracts to them AND TO PROVIDE ON THE DIVISION'S
 WEBSITE A LIST OF EACH CONTRACTING  AGENCY'S  MINORITY  AND  WOMEN-OWNED
 BUSINESS ENTERPRISES CERTIFICATION OUTREACH SEMINARS;
   (b) to develop standardized forms and reporting documents necessary to
 implement this article;
   (c)  to conduct educational OUTREACH programs TO ENCOURAGE THE CERTIF-
 ICATION OF MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISES consistent with
 the purposes of this article;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10453-01-5
              

 A. 7150                             2
 
   (d) to review [periodically] QUARTERLY the practices and procedures of
 each contracting agency with respect to compliance with  the  provisions
 of  this  article,  and  to  require  them  to file [periodic] QUARTERLY
 reports with the division of minority and women's  business  development
 as to the level of minority and women-owned business enterprises partic-
 ipation  in  the  awarding  of  agency  contracts for goods and services
 INCLUDING BUT NOT LIMITED TO THE NUMBER OF STATE  CONTRACTS  AWARDED  TO
 CERTIFIED  MINORITY  OR  WOMEN-OWNED  BUSINESS  ENTERPRISES, THE MAXIMUM
 DOLLAR AMOUNT OBLIGATED PURSUANT TO ALL THOSE CONTRACTS, AND  THE  TOTAL
 EXPENDITURES  MADE  PURSUANT  TO ALL SUCH CONTRACTS; THE NUMBER OF STATE
 CONTRACTS AWARDED WHICH INCLUDE A UTILIZATION PLAN FOR BUSINESS  PARTIC-
 IPATION  BY  CERTIFIED MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISES, THE
 MAXIMUM AMOUNT OBLIGATED PURSUANT TO  THOSE  CONTRACTS,  AND  THE  TOTAL
 EXPENDITURES  MADE  PURSUANT  TO ALL SUCH CONTRACTS; THE NUMBER OF STATE
 CONTRACTS AWARDED UPON WHICH A WAIVER WAS GRANTED FROM GOALS REQUIRED BY
 THE CONTRACTS  FOR  BUSINESS  PARTICIPATION  BY  CERTIFIED  MINORITY  OR
 WOMEN-OWNED  BUSINESS  ENTERPRISES,  AND  THE  MAXIMUM  AMOUNT OBLIGATED
 PURSUANT TO THOSE CONTRACTS; THE NUMBER OF STATE CONTRACTS AWARDED WHICH
 REQUIRED GOALS FOR EMPLOYMENT OF MINORITY GROUP MEMBERS AND  WOMEN;  AND
 THE  NUMBER  OF  STATE CONTRACTS AWARDED FOR WHICH WAIVERS OF EMPLOYMENT
 GOALS REQUIRED BY THE CONTRACTS HAVE BEEN GRANTED;
   (d-1) to require all contracting state agencies to develop a four-year
 growth plan to determine a means of  promoting  and  increasing  partic-
 ipation  by  [minority-owned]  MINORITY  and women-owned business enter-
 prises with respect to state  contracts  and  subcontracts.  Every  four
 years,   beginning   September  fifteenth,  two  thousand  twenty,  each
 contracting state agency shall submit a four-year growth plan as part of
 its annual report to the governor and legislature  pursuant  to  section
 one hundred sixty-four of this chapter.
   (e)  on  January first of each year report to the governor, THE TEMPO-
 RARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE  MINORITY
 LEADERS  OF  THE  SENATE  AND  THE ASSEMBLY, and the chairpersons of the
 senate finance and assembly ways and means  committees  on  the  [level]
 ACTUAL  VERSUS  PROJECTED  LEVELS  of  minority and women-owned business
 enterprises participating in each agency's contracts  for  goods  [and],
 services  AND  CONSTRUCTION,  INCLUDING BUT NOT LIMITED TO THE NUMBER OF
 STATE CONTRACTS AWARDED TO CERTIFIED MINORITY  OR  WOMEN-OWNED  BUSINESS
 ENTERPRISES,  THE  MAXIMUM DOLLAR AMOUNT OBLIGATED PURSUANT TO ALL THOSE
 CONTRACTS,  AND  THE  TOTAL  EXPENDITURES  MADE  PURSUANT  TO  ALL  SUCH
 CONTRACTS,  and on activities of the office and effort by each contract-
 ing agency to promote employment of minority group  members  and  women,
 and  to  promote and increase participation by certified businesses with
 respect to state contracts and subcontracts  so  as  to  facilitate  the
 award  of  a fair share of state contracts to such businesses. The comp-
 troller shall assist the  division  in  collecting  information  on  the
 participation  of  certified  business for each contracting agency. Such
 report may recommend new  activities  and  programs  to  effectuate  the
 purposes of this article;
   (f)  THE DIRECTOR SHALL LIST IN THE DIVISION'S ANNUAL REPORT THE NAMES
 OF NON-COMPLIANT AGENCIES AND  THE  EXTENT  OF  THEIR  NONCOMPLIANCE  IN
 SUBMITTING  ITS  QUARTERLY  MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISE
 UTILIZATION REPORTS; AND, SHALL IMPLEMENT A MASTER LIST OF ALL THE STATE
 AGENCIES REQUIRED TO FILE QUARTERLY COMPLIANCE REPORTS AND SHALL  ATTACH
 SUCH LIST TO THE DIVISION'S ANNUAL REPORT.
   (G) to prepare and update[, no less than annually,] QUARTERLY a direc-
 tory  of  certified  minority and women-owned business enterprises which
 A. 7150                             3
 
 shall, wherever practicable, (i) make publicly available records of  all
 certifications  and recertifications, (ii) be divided into categories of
 labor,  services,  supplies,   equipment,   materials   and   recognized
 construction  trades, and (iii) indicate areas or locations of the state
 where such enterprises are available to perform services;
   [(g)] (H) to appoint independent hearing officers who by  contract  or
 terms of employment shall preside over adjudicatory hearings pursuant to
 section  three  hundred  fourteen of this article for the office and who
 are assigned no other work by the office;
   [(h)] (I) to make publicly available on the division's website records
 of all revocations of certification  for  convictions  for  fraudulently
 misrepresenting  the  status  of minority or women-owned business enter-
 prises or for evidence of fraudulent  conduct  with  regard  to  partic-
 ipation of a minority or women-owned business enterprise in the perform-
 ance  of  state contracts and the reasoning for such revocations after a
 final determination has been made,  provided  that  information  falling
 into the categories enumerated in paragraphs (a) through (j) of subdivi-
 sion  two  of  section  eighty-seven of the public officers law shall be
 withheld;
   [(i)] (J) notwithstanding the provisions of section two hundred  nine-
 ty-six  of  this chapter, to file a complaint pursuant to the provisions
 of section two hundred ninety-seven of this chapter where  the  director
 has  knowledge  that  a  contractor  may have violated the provisions of
 paragraph (a), (b) or (c) of subdivision  one  of  section  two  hundred
 ninety-six  of  this chapter where such violation is unrelated, separate
 or distinct from the state contract as expressed by its terms;
   [(j)] (K) to streamline the  state  certification  process  to  accept
 federal and municipal corporation certifications;
   [(k)] (L) to make publicly available on the division's website records
 of  all  waivers  of  compliance  reported  pursuant to paragraph (b) of
 subdivision six of section  three  hundred  thirteen  of  this  article,
 including  the reasoning for denial of such waivers after a final deter-
 mination has been made, provided that information falling into the cate-
 gories enumerated in paragraphs (a) through (j) of  subdivision  two  of
 section eighty-seven of the public officers law shall be withheld;
   [(l)]  (M)  to  work  in  conjunction with the industrial commissioner
 pursuant to paragraph (j) of subdivision one of  section  eight  hundred
 eleven  of  the  labor law to assist contractors in identifying minority
 group members and women who are participating in  apprenticeship  agree-
 ments under article twenty-three of the labor law; and
   [(m)] (N) to coordinate with appropriate offices, agencies, or author-
 ities,  where  applicable, to conduct site visits or perform inspections
 of financial records of minority or women-owned business enterprises  in
 accordance with this article and the regulations of the director.
   4.  The director shall provide assistance to, and facilitate access to
 programs serving certified businesses as well as  applicants  to  ensure
 that  such businesses benefit, as needed, from technical, managerial and
 financial, and general business assistance; training; marketing;  organ-
 ization  and personnel skill development; project management assistance;
 technology assistance; bond  and  insurance  education  assistance;  and
 other  business  development  assistance.  The director shall maintain a
 toll-free number at the department of economic development to be used to
 answer questions concerning the MWBE certification process. In addition,
 the director [may] SHALL, either independently or  in  conjunction  with
 other state agencies:
 A. 7150                             4
 
   (a)  develop  a  clearinghouse of information on programs and services
 provided by entities that may assist such businesses;
   (b)  review  bonding and paperwork requirements imposed by contracting
 agencies that may unnecessarily impede the ability of such businesses to
 compete; and
   (c) seek to maximize utilization by minority and women-owned  business
 enterprises  of available federal resources including but not limited to
 federal grants, loans, loan guarantees, surety bonding guarantees, tech-
 nical assistance, and programs and services of the federal  small  busi-
 ness administration.
   (d)  conduct  outreach events, training workshops, seminars, and other
 such educational programs throughout the state, including  all  regional
 offices,  to  state  agencies, external stakeholders, and the public, to
 promote awareness and utilization of minority and  women-owned  business
 enterprises; and
   (e) identify and establish mentorship opportunities and other business
 development  programs  to increase capacity and better prepare MWBEs for
 bidding on contracts with state agencies upon successful  completion  of
 the  mentorship  opportunity.  Such  mentorship  opportunities  shall be
 intended to ensure that mentor and  mentee  are  connected  based  on  a
 commercially useful function.
   §  2.  Subdivision  5 of section 312 of the executive law, as added by
 chapter 261 of the laws of 1988, is amended to read as follows:
   5. The director shall promulgate rules and regulations to ensure  that
 contractors  and subcontractors undertake programs of affirmative action
 and equal employment opportunity as required by this section. Such rules
 and regulations as they pertain to any particular agency shall be devel-
 oped after consultation with contracting agencies. Such rules and  regu-
 lations  [may]  SHALL require a contractor, after notice in a bid solic-
 itation, to submit an equal employment opportunity  program  [after  bid
 opening  and  prior  to  the award of any contract] AT THE TIME BIDS ARE
 SUBMITTED, and [may] SHALL require the contractor  or  subcontractor  to
 submit  compliance  reports  relating to the contractor's or subcontrac-
 tor's operation and implementation of any equal  employment  opportunity
 program in effect as of the date the contract is executed. The contract-
 ing  agency [may recommend to the director that] SHALL HAVE THE RIGHT TO
 RECOMMEND THAT the director take appropriate  action  according  to  the
 procedures  set  forth  in section three hundred sixteen of this article
 against the contractor for noncompliance with the requirements  of  this
 section.  The  contracting  agency  shall  be responsible for monitoring
 compliance with this section.
   § 3. Paragraph (j) of subdivision 2-a of section 313 of the  executive
 law,  as amended by chapter 96 of the laws of 2019, is amended and a new
 paragraph (k) is added to read as follows:
   (j) require each agency to consult the most  current  disparity  study
 when  calculating  agency-wide and contract specific participation goals
 pursuant to this article; [and]
   (K)  ENCOURAGE  JOINT  VENTURES,  PARTNERSHIPS,   AND   MENTOR-PROTEGE
 RELATIONSHIPS AS DEFINED IN SECTION ONE HUNDRED FORTY-SEVEN OF THE STATE
 FINANCE  LAW,  BETWEEN  PRIME  CONTRACTORS  AND MINORITY AND WOMEN-OWNED
 BUSINESS ENTERPRISES; AND
   § 4. Subdivision 3 and paragraph (a) of subdivision 5 of  section  313
 of the executive law, subdivision 3 as amended by chapter 96 of the laws
 of  2019  and paragraph (a) of subdivision 5 as amended by chapter 40 of
 the laws of 2023, are amended to read as follows:
 A. 7150                             5
 
   3. Solely for the purpose of providing the opportunity  for  [meaning-
 ful]  INCREASED participation by certified businesses in the performance
 of state contracts as provided in this section,  state  contracts  shall
 include leases of real property by a state agency to a lessee where: the
 terms  of such leases provide for the construction, demolition, replace-
 ment, major repair or renovation of real property and improvements ther-
 eon by such lessee; and  the  cost  of  such  construction,  demolition,
 replacement,  major  repair  or renovation of real property and improve-
 ments thereon shall exceed the sum  of  one  hundred  thousand  dollars.
 Reports  to  the  director  pursuant to section three hundred fifteen of
 this article shall include activities with respect  to  all  such  state
 contracts.  Contracting agencies shall include or require to be included
 with respect to state contracts for the acquisition, construction, demo-
 lition, replacement, major repair or renovation  of  real  property  and
 improvements  thereon,  such  provisions  as [may] SHALL be necessary to
 effectuate the provisions of this section in every bid specification and
 state contract, including, but not limited to: (a) provisions  requiring
 contractors  to make a good faith effort to solicit active participation
 by enterprises identified in the directory of certified businesses;  (b)
 requiring  the  parties  to  agree  as a condition of entering into such
 contract, to be bound by the provisions of section three hundred sixteen
 of this article;  and  (c)  requiring  the  contractor  to  include  the
 provisions  set  forth  in paragraphs (a) and (b) of this subdivision in
 every subcontract in a manner that the provisions will be  binding  upon
 each  subcontractor  as  to  work  in  connection  with  such  contract.
 Provided, however,  that  no  such  provisions  shall  be  binding  upon
 contractors  or  subcontractors  in  the  performance  of  work  or  the
 provision of services that are unrelated, separate or distinct from  the
 state  contract  as  expressed by its terms, and nothing in this section
 shall authorize the director or any contracting  agency  to  impose  any
 requirement  on  a  contractor or subcontractor except with respect to a
 state contract.
   (a) Contracting agencies shall administer the  rules  and  regulations
 promulgated  by the director in a good faith effort to achieve the maxi-
 mum feasible participation by minority and women owned  business  enter-
 prises  adopted  pursuant  to  this  article  and the regulations of the
 director. Such rules and regulations:  shall  require  a  contractor  to
 submit  a  utilization plan [after bids are opened] AT THE TIME BIDS ARE
 SUBMITTED, when bids are required[, but prior to the award  of  a  state
 contract];  shall  require the contracting agency to review the utiliza-
 tion plan submitted by the contractor and to post the  utilization  plan
 and any waivers of compliance issued pursuant to subdivision six of this
 section  on  the  website  of  the contracting agency; shall require the
 contracting agency to notify the contractor in writing within  a  period
 of  time  specified  by the director as to any deficiencies contained in
 the contractor's utilization plan; shall require remedy thereof within a
 period of time specified by the director; shall require  the  contractor
 to  submit  QUARTERLY  compliance  reports relating to the operation and
 implementation of any utilization plan; shall not  allow  any  automatic
 waivers  but  shall  allow  a contractor to apply for a partial or total
 waiver of the minority and women-owned business enterprise participation
 requirements pursuant to subdivisions six and  seven  of  this  section;
 shall  allow a contractor to file a complaint with the director pursuant
 to subdivision eight of this section in the event a  contracting  agency
 has  failed or refused to issue a waiver of the minority and women-owned
 business  enterprise  participation  requirements  or  has  denied  such
 A. 7150                             6
 
 request  for  a  waiver;  and shall allow a contracting agency to file a
 complaint with the director pursuant to subdivision nine of this section
 in the event a contractor is failing or has failed to  comply  with  the
 minority  and women-owned business enterprise participation requirements
 set forth in the state contract where no waiver has been granted.
   § 5. Subdivisions 1, 2-a and 3 of section 315 of  the  executive  law,
 subdivisions  1 and 3 as amended and subdivision 2-a as added by chapter
 96 of the laws of 2019, are amended and two new subdivisions 3-a  and  8
 are added to read as follows:
   1.  Each  contracting agency shall be responsible for monitoring state
 contracts under its jurisdiction, and recommending matters to the office
 respecting non-compliance with the provisions of this  article  so  that
 the  office  [may]  SHALL take such action as [is appropriate] STATED IN
 SUBDIVISION THREE OF SECTION THREE HUNDRED SIXTEEN OF THIS ARTICLE. EACH
 CONTRACTING AGENCY SHALL HAVE THE RIGHT TO RECOMMEND THAT  THE  DIRECTOR
 IMPOSE  A  SANCTION,  PENALTY,  OR  FINE FOR THREE OR MORE VIOLATIONS OF
 SUBDIVISION ONE OF SECTION THREE HUNDRED SIXTEEN  OF  THIS  ARTICLE,  to
 ensure  compliance  with  the  provisions of this article, the rules and
 regulations  of  the  director  issued  hereunder  and  the  contractual
 provisions  required  pursuant to this article. All contracting agencies
 shall comply with the rules  and  regulations  of  the  office  and  are
 directed  to cooperate with the office and to furnish to the office such
 information and assistance as may be required in the performance of  its
 functions under this article.
   2-a.  [To  the  extent practicable, upon completion of the restrictive
 period of a procurement, each] EACH contracting agency when notifying  a
 contractor  of  a  winning  bid  award shall also notify any minority or
 women-owned business enterprise identified in the contractor's submitted
 utilization plan of such contractor's receipt of the winning bid award.
   3. Each contracting agency shall report to THE COMMISSIONER OF ECONOM-
 IC DEVELOPMENT, THE COMMISSIONER OF GENERAL SERVICES  AND  the  director
 with  respect to activities undertaken to promote employment of minority
 group members and women and promote and increase participation by certi-
 fied businesses with respect to state contracts and  subcontracts.  Such
 reports  shall  be submitted [no later than May fifteenth of every year]
 QUARTERLY and shall include such information as  is  necessary  for  the
 director  to determine whether the contracting agency and any contractor
 to the contracting agency have complied with the purposes of this  arti-
 cle,  including,  without  limitation,  THE  NUMBER  OF  STATE CONTRACTS
 AWARDED TO CERTIFIED MINORITY OR WOMEN-OWNED BUSINESS  ENTERPRISES;  THE
 MAXIMUM DOLLAR AMOUNT OBLIGATED PURSUANT TO ALL THOSE CONTRACTS; AND THE
 TOTAL  EXPENDITURES  MADE  PURSUANT TO ALL SUCH CONTRACTS; THE NUMBER OF
 STATE CONTRACTS AWARDED WHICH INCLUDE A UTILIZATION  PLAN  FOR  BUSINESS
 PARTICIPATION BY CERTIFIED MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISES,
 THE  MAXIMUM AMOUNT OBLIGATED PURSUANT TO THOSE CONTRACTS, AND THE TOTAL
 EXPENDITURES MADE PURSUANT TO ALL SUCH CONTRACTS; a summary of all waiv-
 ers of the requirements of subdivisions six and seven of  section  three
 hundred  thirteen  of  this  article  allowed  by the contracting agency
 during the period covered by the report, including a description of  the
 basis  of  the waiver request [and], the rationale for granting any such
 waiver, THE MAXIMUM AMOUNT OBLIGATED PURSUANT TO  THOSE  CONTRACTS;  THE
 NUMBER OF STATE CONTRACTS AWARDED WHICH REQUIRED GOALS FOR EMPLOYMENT OF
 MINORITY  GROUP MEMBERS AND WOMEN; THE NUMBER OF STATE CONTRACTS AWARDED
 FOR WHICH WAIVERS OF EMPLOYMENT GOALS REQUIRED  BY  THE  CONTRACTS  HAVE
 BEEN  GRANTED, and any instances in which the contract agency has deemed
 a contractor to have committed a violation  pursuant  to  section  three
 A. 7150                             7

 hundred sixteen of this article and such other information as the direc-
 tor  shall require. Each agency shall also include in such annual report
 whether or not it has been required to prepare a remedial plan, and,  if
 so,  the  plan and the extent to which the agency has complied with each
 element of the plan.
   3-A. WITHIN THIRTY DAYS AFTER COMPLETION,  A  COPY  OF  THE  QUARTERLY
 MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISE REPORT SHALL BE TRANSMITTED
 TO THE COMMISSIONER OF ECONOMIC DEVELOPMENT, THE COMMISSIONER OF GENERAL
 SERVICES, AND THE DIRECTOR. A CONTRACTING AGENCY, WHICH HAS NOT LET MORE
 THAN TWO MILLION DOLLARS IN SERVICE AND/OR CONSTRUCTION CONTRACTS WITHIN
 THE APPLICABLE PERIOD MAY APPLY TO THE COMMISSIONER OF ECONOMIC DEVELOP-
 MENT,  AND  THE DIRECTOR FOR A WAIVER OF THE REQUIRED ANNUAL REPORT. THE
 WAIVER APPLICATION SHALL BE MADE ON SUCH FORM  AS  THE  COMMISSIONER  OF
 ECONOMIC DEVELOPMENT AND THE DIRECTOR MAY PRESCRIBE.
   8.  IF  A  CONTRACTING  AGENCY  SHALL  FAIL  TO  FILE OR SUBSTANTIALLY
 COMPLETE, AS DETERMINED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT  AND
 THE  DIRECTOR,  THE  REPORT REQUIRED BY THIS SECTION, THE DIRECTOR SHALL
 PROVIDE NOTICE TO THE CONTRACTING AGENCY. THE  NOTICE  SHALL  STATE  THE
 FOLLOWING:
   (A)  THAT  THE  FAILURE TO FILE A REPORT AS REQUIRED IS A VIOLATION OF
 THIS SECTION, OR IN THE CASE OF AN INSUFFICIENT REPORT,  THE  MANNER  IN
 WHICH THE REPORT SUBMITTED IS DEFICIENT;
   (B)  THAT  THE  CONTRACTING AGENCY HAS THIRTY DAYS TO COMPLY WITH THIS
 SECTION OR PROVIDE AN ADEQUATE WRITTEN EXPLANATION TO  THE  COMMISSIONER
 OF ECONOMIC DEVELOPMENT AND THE COMMISSIONER OF GENERAL SERVICES AND THE
 DIRECTOR  OF  THE  CONTRACTING  AGENCY'S  REASONS  FOR  THE INABILITY TO
 COMPLY; AND
   (C) THAT THE CONTRACTING AGENCY'S CONTINUED FAILURE TO PROVIDE  EITHER
 THE  REQUIRED  REPORT OR AN ADEQUATE EXPLANATION WILL RESULT IN AN INDE-
 PENDENT AUDIT OF THE CONTRACTING AGENCY, THE  COST  OF  WHICH  SHALL  BE
 BORNE BY THE CONTRACTING AGENCY.
   §  6.  Section  316 of the executive law, as amended by chapter 567 of
 the laws of 2022, is amended to read as follows:
   § 316. [Enforcement] VIOLATIONS AND ENFORCEMENT.   1. IT  SHALL  BE  A
 VIOLATION FOR ANY PERSON OR ENTITY TO:
   (A)  INTENTIONALLY USE OR ACQUIRE AN MWBE NAME THROUGH DECEIT OR OTHER
 DISHONEST MEANS IN ORDER TO NEGOTIATE A LOWER BID FROM A NON-MWBE.
   (B) SUBMIT TO THE DEPARTMENT OF  ECONOMIC  DEVELOPMENT,  DOCUMENTS  OR
 OTHER  MATERIAL  AS  EVIDENCE  OF A GOOD FAITH EFFORT TO COMPLY WITH THE
 PROVISIONS OF THIS ARTICLE WITHOUT, IN FACT,  HAVING  ENTERED  INTO  ANY
 CONTRACT,  AGREEMENT, SUBCONTRACT, OR SUB-AGREEMENT WITH AN MWBE FOR THE
 USE OR PURCHASE OF SUCH BUSINESS ENTERPRISE'S GOODS OR SERVICES  IN  THE
 PERFORMANCE OF THE AWARDED STATE CONTRACT.
   (C)  FAIL  TO  PROVIDE  AN  MWBE  WITH SUFFICIENT INFORMATION OR OTHER
 REQUIRED SUPPORTING DOCUMENTATION IN ORDER FOR THE  MWBE  TO  PREPARE  A
 PROPER BID.
   2. Upon receipt by the director of a complaint by a contracting agency
 that  a contractor has violated the provisions of a state contract which
 have been included to comply with the provisions of this article or of a
 contractor that a contracting agency has violated such provisions or has
 failed or refused to issue a waiver  where  one  has  been  applied  for
 pursuant  to  subdivision  six of section three hundred thirteen of this
 article or has denied such application, the director  shall  attempt  to
 resolve  the matter giving rise to such complaint. If efforts to resolve
 such matter to the satisfaction of all  parties  are  unsuccessful,  the
 director  shall  refer  the matter, within thirty days of the receipt of
 A. 7150                             8
 
 the complaint, to the division's hearing officers.  Upon  conclusion  of
 the  administrative  hearing,  the  hearing  officer shall submit to the
 director [his or her] SUCH  OFFICER'S  decision  regarding  the  alleged
 violation  of  the contract and recommendations regarding the imposition
 of sanctions, fines or penalties.  The  director,  within  ten  days  of
 receipt  of  the decision, shall file a determination of such matter and
 shall cause a copy of such determination along with a copy of this arti-
 cle to be served upon the contractor by personal service or by certified
 mail return receipt requested. The decision of the hearing officer shall
 be final and may only be vacated or  modified  as  provided  in  article
 seventy-eight  of  the  civil practice law and rules upon an application
 made within the time provided by such article. The determination of  the
 director as to the imposition of any fines, sanctions or penalties shall
 be  reviewable  pursuant  to article seventy-eight of the civil practice
 law and rules. The penalties imposed for any violation which is premised
 upon  either  a  fraudulent  or  intentional  misrepresentation  by  the
 contractor  or the contractor's willful and intentional disregard of the
 minority and  women-owned  participation  requirement  included  in  the
 contract may include a determination that the contractor shall be ineli-
 gible  to  submit a bid to any contracting agency or be awarded any such
 contract for a period not to exceed one year following the final  deter-
 mination;  provided  however, if a contractor has previously been deter-
 mined to be ineligible to submit a bid pursuant  to  this  section,  the
 penalties imposed for any subsequent violation, if such violation occurs
 within  five  years  of the first violation, may include a determination
 that the contractor shall be ineligible to submit a bid to any contract-
 ing agency or be awarded any such contract for a period  not  to  exceed
 five  years  following the final determination. The division of minority
 and women's business development shall maintain a  website  listing  all
 contractors that have been deemed ineligible to submit a bid pursuant to
 this  section  and the date after which each contractor shall once again
 become eligible to submit bids.
   [2.] 3. THE DIRECTOR SHALL IMPOSE A SANCTION, PENALTY, OR FINE ON  ANY
 INDIVIDUAL  OR  ENTITY THAT HAS THREE OR MORE VIOLATIONS OF THIS ARTICLE
 WITHIN FIVE YEARS. Any fines, or portion thereof,  imposed  pursuant  to
 [the  foregoing  subdivision]  THIS  SECTION,  or  imposed by a court of
 competent jurisdiction related to convictions involving fraud related to
 this article or otherwise involving a minority or  women-owned  business
 enterprise, [may] SHALL be required by the entity imposing such fines to
 be  paid to the minority and women-owned business enterprise fund estab-
 lished pursuant to section ninety-seven-k  of  the  state  finance  law.
 SUCH FUNDS SHALL BE USED TO SUBSIDIZE THE FACILITATION OF THE PROVISIONS
 OF  THIS  ARTICLE.  OTHER SANCTIONS SHALL INCLUDE BARRING SUCH ENTITY OR
 INDIVIDUAL FROM CONTRACTING WITH SUCH AGENCY FOR A PERIOD NOT TO  EXCEED
 FIVE YEARS.
   §  7.  Subdivision 1 of section 137 of the state finance law, as sepa-
 rately amended by section 17 of part MM of chapter 57 and chapter 619 of
 the laws of 2008, is amended to read as follows:
   1. In addition to other bond or bonds, if any, required by law for the
 completion of a work specified in a contract for the  prosecution  of  a
 public  improvement for the state of New York a municipal corporation, a
 public benefit corporation or a commission appointed pursuant to law, or
 in the absence of any such requirement, the comptroller may or the other
 appropriate official, respectively, shall nevertheless require prior  to
 the  approval of any such contract a bond guaranteeing prompt payment of
 moneys due to all persons furnishing labor or materials to the  contrac-
 A. 7150                             9
 
 tor or any subcontractors in the prosecution of the work provided for in
 such  contract. Whenever a municipal corporation issues a permit subject
 to compliance with section two hundred twenty of  the  labor  law,  such
 permittee  or  its contractor or subcontractors furnishing workers shall
 post a payment bond subject to this section. Provided, however, that all
 performance bonds and payment bonds may, at the discretion of  the  head
 of  the  state agency, public benefit corporation or commission, or [his
 or her] THEIR designee, be dispensed with for the completion of  a  work
 specified  in a contract for the prosecution of a public improvement for
 the state of New York for which bids are solicited where  the  aggregate
 amount  of  the  contract  is  under  one  hundred  thousand dollars and
 provided further, that in a case where the contract is  not  subject  to
 the  multiple contract award requirements of section one hundred thirty-
 five of this article, such requirements may be dispensed with where  the
 head of the state agency, public benefit corporation or commission finds
 it  to  be  in the public interest and where the aggregate amount of the
 contract awarded or to be awarded is  less  than  two  hundred  thousand
 dollars.  IN  A  CASE  WHERE  A  CONTRACT IS AWARDED TO A SMALL BUSINESS
 CONCERN OR TO A MINORITY OR WOMEN-OWNED BUSINESS CONCERN,  ALL  PERFORM-
 ANCE  BONDS  AND  PAYMENT BONDS MAY BE DISPENSED WITH WHEN THE AGGREGATE
 AMOUNT OF THE CONTRACT IS UNDER FIVE HUNDRED  THOUSAND  DOLLARS.  ADVER-
 TISEMENTS FOR BIDS SHALL PROVIDE INFORMATION AS TO THE REQUIREMENTS FOR,
 OR  DISPENSATION  OF,  PERFORMANCE  AND PAYMENT BONDS. Provided further,
 that in a case where a performance or payment bond  is  dispensed  with,
 twenty per centum may be retained from each progress payment or estimate
 until the entire contract work has been completed and accepted, at which
 time the head of the state agency, public benefit corporation or commis-
 sion shall, pending the payment of the final estimate, pay not to exceed
 seventy-five per centum of the amount of the retained percentage.
   §  8.  Subdivision  4  of  section  139-f of the state finance law, as
 amended by chapter 83 of the  laws  of  1995,  is  amended  to  read  as
 follows:
   4.  Notwithstanding  any other provision of this section or other law,
 requirements for the furnishing of a performance bond or a payment  bond
 may  be dispensed with at the discretion of the head of the state agency
 or corporation, or [his or her] THEIR designee, where the  public  owner
 is  a state agency or corporation described in subdivision one-a of this
 section and the aggregate amount  of  the  contract  awarded  or  to  be
 awarded  is  under  fifty  thousand  dollars  and,  in  a case where the
 contract is not subject to the multiple contract award  requirements  of
 section  one  hundred thirty-five of this article, such requirements may
 be dispensed with where the head of  the  state  agency  or  corporation
 finds  it to be in the public interest and where the aggregate amount of
 the contract awarded or to be awarded  is  under  two  hundred  thousand
 dollars.  IN  A  CASE  WHERE  A  CONTRACT IS AWARDED TO A SMALL BUSINESS
 CONCERN OR TO A MINORITY OR WOMEN-OWNED BUSINESS CONCERN,  ALL  PERFORM-
 ANCE  BONDS  AND  PAYMENT BONDS MAY BE DISPENSED WITH WHEN THE AGGREGATE
 AMOUNT OF THE CONTRACT IS UNDER FIVE HUNDRED  THOUSAND  DOLLARS.  ADVER-
 TISEMENTS FOR PROPOSALS SHALL PROVIDE INFORMATION AS TO THE REQUIREMENTS
 FOR,  OR  DISPENSATION  OF,  PERFORMANCE  AND  PAYMENT  BONDS.  Provided
 further, that in a case where a performance or payment bond is dispensed
 with, twenty per centum may be retained from each  progress  payment  or
 estimate until the entire contract work has been completed and accepted,
 at which time the head of the state agency or corporation shall, pending
 the  payment  of  the final estimate, pay not to exceed seventy-five per
 centum of the amount of the retained percentage.
 A. 7150                            10
 
   § 9. The opening paragraph of section 139-g of the state finance  law,
 as  amended  by  chapter  636 of the laws of 2003, is amended to read as
 follows:
   In  every  state  agency,  department and authority which has let more
 than two million dollars in service and construction contracts AND STATE
 ASSISTED PROJECT CONTRACTS in the prior fiscal year, the chief executive
 officer of that agency, department or authority shall, with  respect  to
 those  contracts  AND STATE ASSISTED PROJECT CONTRACTS let by [his] SUCH
 CHIEF EXECUTIVE OFFICER'S agency, department or authority:
   § 10. The opening paragraph of subdivision (b) of section 139-g of the
 state finance law, as amended by chapter 636 of the  laws  of  2003,  is
 amended to read as follows:
   identify  all  small-business  and  certified women and minority-owned
 business concerns which, in the judgment of the chief executive  officer
 of  that agency, department or authority, can bid on those contracts AND
 STATE ASSISTED PROJECT CONTRACTS which are usually and  customarily  let
 by  that  agency,  department  or  authority, OR IN WHICH THAT AUTHORITY
 PROVIDES A GRANT OR LOAN OR TAX  EXEMPT  FINANCING,  with  a  reasonable
 expectation  of  success.  Such chief executive officers shall carry out
 the provisions of this subdivision:
   § 11.  Section 139-g of the state finance law is amended by  adding  a
 new subdivision (e) to read as follows:
   (E)  FOR  THE PURPOSES OF THIS SECTION, THE FOLLOWING WORDS SHALL HAVE
 THE FOLLOWING MEANINGS:
   (I) "STATE ASSISTED PROJECT CONTRACT" SHALL MEAN ANY WRITTEN AGREEMENT
 ARISING OUT OF A  STATE  ASSISTED  HOUSING  PROJECT  OR  STATE  ASSISTED
 ECONOMIC  DEVELOPMENT PROJECT OR STATE ASSISTED HIGHER EDUCATION PROJECT
 OR STATE ASSISTED HOSPITAL OR HEALTH CARE FACILITY  PROJECT,  FOR  WHICH
 THE  TOTAL  PROJECT  COST  EXCEEDS TWO MILLION DOLLARS AND FOR WHICH THE
 PROJECT OWNER IS COMMITTED TO SPEND OR DOES EXPEND FUNDS FOR THE  ACQUI-
 SITION,  CONSTRUCTION,  DEMOLITION,  REPLACEMENT, MAJOR REPAIR, OR RENO-
 VATION OF REAL PROPERTY AND IMPROVEMENTS THEREON FOR SUCH PROJECT.
   (II) "STATE ASSISTED HOUSING PROJECT" SHALL MEAN THOSE PROJECTS  WHICH
 RECEIVE  FROM  THE  NEW  YORK  STATE  HOUSING  FINANCE AGENCY TAX-EXEMPT
 FINANCING FOR ALL OR PART OF THE TOTAL PROJECT COST.
   (III) "STATE ASSISTED ECONOMIC DEVELOPMENT PROJECT" SHALL  MEAN  THOSE
 PROJECTS WHICH RECEIVE FROM THE NEW YORK FOUNDATION OF SCIENCE TECHNOLO-
 GY  AND INNOVATION, OR THE URBAN DEVELOPMENT CORPORATION AND ITS SUBSID-
 IARIES A GRANT OR LOAN OR TAX-EXEMPT FINANCING FOR ALL OR  PART  OF  THE
 TOTAL PROJECT COST.
   (IV)  "STATE  ASSISTED  HIGHER  EDUCATION  PROJECT"  SHALL  MEAN THOSE
 PROJECTS WHICH RECEIVE FROM THE DORMITORY AUTHORITY OF THE STATE OF  NEW
 YORK  A  GRANT  OR  LOAN  OR TAX-EXEMPT FINANCING FOR ALL OR PART OF THE
 TOTAL PROJECT COST.
   (V) "STATE ASSISTED HOSPITAL OR HEALTH CARE  FACILITY  PROJECT"  SHALL
 MEAN  THOSE  PROJECTS  WHICH RECEIVE FROM THE DORMITORY AUTHORITY OF THE
 STATE OF NEW YORK A GRANT OR LOAN OR TAX-EXEMPT  FINANCING  FOR  ALL  OR
 PART OF THE TOTAL PROJECT COST.
   §  12.  This  act shall take effect immediately, provided however, the
 amendments to article 15-A of the executive law made  by  sections  one,
 two,  three,  four, five and six of this act shall not affect the repeal
 of such article and shall be deemed repealed therewith.