Relates to requiring agencies to provide unsuccessful bidders that are certified minority- and women-owned business enterprises with a written statement of the completion of the procurement selection process and that such enterprise was not selected.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A3861
SPONSOR: Jackson
 
TITLE OF BILL:
An act to amend the executive law, in relation to requiring agencies to
provide unsuccessful bidders that are certified minority and women-owned
business enterprises with a written statement articulating the reasons
for such rejection
 
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to provide MWBEs which have had bids
rejected with the knowledge they need to secure state contracts in the
future:
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 requires the Director of the Division of Minority and Women's
Business Development to promulgate rules regulations requiring all
contracting agencies to promptly provide written notice to unsuccessful
bidders that are MWBEs notifying them that they were not selected and
the reasons why, and to disclose the identity of the successful bidder,
offer guidance for improving future proposals, and advise such MWBE of
services and debriefings available to help them with future proposals.
Section 2 establishes the effective date of this act.
 
JUSTIFICATION:
As we continue to strive towards achieving the 30%. MWBE goal as
outlined by Governor Cuomo, we recognize that there will be times when
an MWBE is denied the opportunity to secure a state contract. However,
we should still find ways to provide education to said MWBEs on why they
were not selected so that these capable businesses can take steps to
improve their chances for the future. With that goal in mind, these
explanations should not only clarify the reasons why an MWBE was
rejected, but should also provide recommendations on how to improve so
future consideration is possible as well as likely. Too often, MWBEs are
being turned down from an opportunity but not being given information
and explanation as to why and how to get better as a business so that
they may better serve our fellow New Yorkers.
 
PRIOR LEGISLATIVE HISTORY:
2021-22 A.6074 Referred to Governmental Operations / S.3736 Referred to
Governmental Operations
2019-20: A.4685A Reported referred to Ways and Means / S.8778 Referred
to Rules
2017-18: A.4837 Referred to Governmental Operations
2015/16 A.6903 Referred to Governmental Operations/S.5282 Referred to
finance
 
FISCAL IMPLICATIONS:
To be determined
 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall become a
law; provided however, that the amendments to article 15-A of the execu-
tive law made by section one of this act shall not affect the expiration
of such article and shall be deemed to expire therewith; provided,
further, that the director of the division of minority and women's busi-
ness development shall be authorized to commence the rule-making process
required pursuant to section one of this act prior to the effective date
of this act.
STATE OF NEW YORK
________________________________________________________________________
3861
2023-2024 Regular Sessions
IN ASSEMBLY
February 8, 2023
___________
Introduced by M. of A. JACKSON -- read once and referred to the Commit-
tee on Governmental Operations
AN ACT to amend the executive law, in relation to requiring agencies to
provide unsuccessful bidders that are certified minority and women-
owned business enterprises with a written statement articulating the
reasons for such rejection
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 315 of the executive law is amended by adding a new
2 subdivision 2-b to read as follows:
3 2-b. The director shall promulgate rules and regulations to require
4 all contracting agencies to promptly provide written notice to all
5 unsuccessful bidders that are certified minority-owned or women-owned
6 business enterprises advising such enterprises of the completion of a
7 procurement selection process and that such enterprise was not selected.
8 Such notice shall also (a) disclose the identity of the successful
9 bidder or bidders; (b) advise such enterprise, to the extent practica-
10 ble, of the reasons for not being selected; (c) include, to the extent
11 practicable, guidance concerning methods of improving future proposals
12 or bids by such enterprise; (d) advise such enterprise, if applicable,
13 of the opportunity to request a debriefing pursuant to section one
14 hundred sixty-three of the state finance law; and (e) inform such enter-
15 prise of the services available through the division of minority and
16 women's business development and the office of the minority and women-
17 owned business enterprise statewide advocate.
18 § 2. This act shall take effect on the ninetieth day after it shall
19 have become a law; provided however, that the amendments to article 15-A
20 of the executive law made by section one of this act shall not affect
21 the expiration of such article and shall be deemed to expire therewith;
22 provided, further, that the director of the division of minority and
23 women's business development shall be authorized to commence the rule-
24 making process required pursuant to section one of this act prior to the
25 effective date of this act.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03559-01-3