Amd §§311 & 313, Exec L; amd §147, St Fin L; amd §1265-b, Pub Auth L
Relates to establishing expanded construction mentorship opportunities for small business enterprises where there is privity of contract between a small business enterprise and a subcontractor or contractor working on an authority public works contract.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7300A
SPONSOR: Bichotte Hermelyn TITLE OF BILL:
An act to amend the executive law, the state finance law and the public
authorities law, in relation to establishing expanded construction
mentorship opportunities for small business enterprises
PURPOSE OR GENERAL IDEA OF BILL:
To expand mentorship opportunities in the construction industry for
small Business Enterprises, providing guidance, resources, and support
to enhance their capacity to compete for and complete state contracts
successfully.
SUMMARY OF PROVISIONS:
Section one: Amends Subsection e of section 311 of the executive law, as
added by chapter 18 of the laws of 2007 by expanding mentorship opportu-
nities when there is privity of contract between a small business enter-
prise and a subcontractor or contractor working on a state contract.
Section two: Amends Paragraph (j) of subdivision 2-a of section 313 of
the executive law by adding a new paragraph (k), as amended by chapter
96 of the laws of 2019 to encourage mentor- relationships when there is
a privity of contract between a small business enterprise and a subcon-
tractor or contractor working on a state contract.
Section three: Amends Section 147 (1) of the state finance law, to
establish mentor- prot programs when there is privity of contract
between a small business enterprise and a subcontractor or contractor
working on a state contract.
Section four: Amends paragraph b of subdivision 2 of section 1265-b of
the public authorities law, by adding a new subparagraph viii to expand
small business mentoring programs when there is privity of contract
between a small business enterprise and a subcontractor or contractor
working on an authority public works contract.
Section five: Establishes the effective date.
JUSTIFICATION:
Despite state efforts to promote small businesses, many small
construction firms continue to face challenges in securing state
contracts due to limited access to mentorship, capital, and technical
expertise. This bill aims to address these disparities by expanding
mentorship programs that connect small businesses with experienced
industry professionals. Through technical assistance, business develop-
ment training, and procurement guidance, this initiative will enhance
small business participation in public construction projects, promote
economic equity, and strengthen the state's infrastructure development.
PRIOR LEGISLATIVE HISTORY:
New Bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
May have minimal administrative costs, with potential funding through
existing state business development programs or public-private partner-
ships.
EFFECTIVE DATE:
This law will take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
7300--A
2025-2026 Regular Sessions
IN ASSEMBLY
March 25, 2025
___________
Introduced by M. of A. BICHOTTE HERMELYN, LUNSFORD -- read once and
referred to the Committee on Governmental Operations -- recommitted to
the Committee on Governmental Operations in accordance with Assembly
Rule 3, sec. 2 -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the executive law, the state finance law and the public
authorities law, in relation to establishing expanded construction
mentorship opportunities for small business enterprises
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (e) of subdivision 4 of section 311 of the execu-
2 tive law, as added by chapter 96 of the laws of 2019, is amended to read
3 as follows:
4 (e) identify and establish mentorship opportunities and other business
5 development programs to increase capacity and better prepare MWBEs for
6 bidding on contracts with state agencies upon successful completion of
7 the mentorship opportunity. Such mentorship opportunities shall be
8 intended to ensure that mentor and mentee are connected based on a
9 commercially useful function. Mentorship opportunities shall also be
10 identified and established in instances where there is privity of
11 contract between a small business enterprise and a subcontractor or
12 contractor working on a state contract.
13 § 2. Subdivision 2-a of section 313 of the executive law is amended by
14 adding a new paragraph (k) to read as follows:
15 (k) encourage mentor-protege relationships as defined in section one
16 hundred forty-seven of the state finance law, between a small business
17 enterprise and a state agency where there is privity of contract between
18 a small business enterprise and a subcontractor or contractor working on
19 a state contract.
20 § 3. Paragraph 1 of section 147 of the state finance law, as added by
21 chapter 360 of the laws of 2009, is amended to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11180-02-6
A. 7300--A 2
1 1. In every state agency, department and authority which has let more
2 than ten million dollars in service and construction contracts in the
3 prior fiscal year, the chief executive officer of that agency, depart-
4 ment or authority shall develop a mentor-protege program to foster long-
5 term relationships between state agencies, approved mentor firms, and
6 small business concerns [and minority and women-owned businesses] certi-
7 fied pursuant to article fifteen-A of the executive law, in order to
8 enhance the capabilities of small [and minority and women-owned] busi-
9 ness concerns, improve their success in contracting with the state or
10 receiving subcontracts under a state contract, and to create sources of
11 reliable contractors and subcontractors ready to perform larger jobs and
12 responsibilities. Participation in the program shall be voluntary for
13 both the mentor firm and the protege firm. Such mentor-protege programs
14 shall be established in instances where there is privity of contract
15 between a small business enterprise and a subcontractor or contractor
16 working on a state contract.
17 § 4. Subparagraphs (vi) and (vii) of paragraph (b) of subdivision 2 of
18 section 1265-b of the public authorities law, as added by chapter 206 of
19 the laws of 2010, are amended and a new subparagraph (viii) is added to
20 read as follows:
21 (vi) to assist only small business mentoring program participants that
22 have been awarded small business mentoring program contracts to obtain
23 any surety bond or contract of insurance required of them in connection
24 with such contract only notwithstanding any provision of section two
25 thousand five hundred four of the insurance law to the contrary; [and]
26 (vii) for small businesses that have been accepted into the small
27 business mentoring program under subparagraph (ii) of paragraph (d) of
28 subdivision one of this section, in addition to the benefits of such
29 program and notwithstanding any other provision of law, to provide tech-
30 nical assistance in obtaining bid, payment and performance bonding for
31 authority public work contracts that are not small business mentoring
32 program contracts, for which the small business is otherwise quali-
33 fied[.]; and
34 (viii) to further establish small business mentoring programs between
35 the agency and a small business enterprise in instances where there is
36 privity of contract between a small business enterprise and a subcon-
37 tractor or contractor working on an authority public works contract.
38 § 5. This act shall take effect immediately; provided, however that
39 the amendments to:
40 (a) sections 311 and 313 of the executive law made by sections one and
41 two of this act shall not affect the repeal of such sections and shall
42 expire and be deemed repealed therewith;
43 (b) paragraph (b) of subdivision 2 of section 1265-b of the public
44 authorities law made by section four of this act shall not affect the
45 repeal of such section and shall be deemed repealed therewith.
