Add §1678-b, Pub Auth L; add §204, Exec L; add §411, Pub Health L; add §23, Transp L
 
Establishes small business mentoring programs in the dormitory authority of the state of New York, office of general services, department of health, department of transportation, and the empire state development corporation.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1487
SPONSOR: Bichotte
 
TITLE OF BILL:
An act to amend the public authorities law, the executive law, the
public health law, and the transportation law, in relation to establish-
ing small business mentoring programs; and providing for the repeal of
such provisions upon the expiration thereof
 
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to create a mentor capacity program provided
by state agencies and authorities to prepare small businesses, including
minority and women-owned businesses enterprises (MWBE), for the purpose
of expanding capacity to become eligible to fulfill larger contracts.
 
SUMMARY OF SPECIFIC PROVISIONS:
To amend the public authorities law, the executive law, the public
health law, and transportation law, in relation to establishing small
business mentoring programs; providing for the repeal of such previsions
upon the expiration thereof
 
JUSTIFICATION:
Many MWBEs have difficulty growing in capacity due to limited resources
and training. This bill would increase their success by providing a
structured mentorship institution facilitated by an agency or authority,
in which a program for MWBEs is created in the span of up to four years.
The program can include but it not limited to a lending program where
MWBEs may apply for loans, a mentor-protege relationship with an experi-
enced construction management firm, support and training on the proposal
and bidding process and learning how to be unionized.
 
PRIOR LEGISLATIVE HISTORY:
2017-18: A11248; referred to governmental operations
 
FISCAL IMPLICATIONS:
To be Determined
 
EFFECTIVE DATE:
This act shall take effect on the thirtieth day after it shall have
become a law and shall expire December 31, 2023
STATE OF NEW YORK
________________________________________________________________________
1487
2019-2020 Regular Sessions
IN ASSEMBLY
January 15, 2019
___________
Introduced by M. of A. BICHOTTE -- read once and referred to the Commit-
tee on Governmental Operations
AN ACT to amend the public authorities law, the executive law, the
public health law, and the transportation law, in relation to estab-
lishing small business mentoring programs; and providing for the
repeal of such provisions upon the expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The public authorities law is amended by adding a new
2 section 1678-b to read as follows:
3 § 1678-b. Dormitory authority small business mentoring program. 1.
4 Definitions. As used in this section, unless the context requires other-
5 wise:
6 (a) "small business" means a business in the construction trades which
7 (i) is independently owned and operated; (ii) has annual revenues not
8 exceeding a fiscal limitation of five million dollars or such lesser
9 amount as established by the authority pursuant to these provisions; and
10 (iii) meets additional criteria as otherwise established by the authori-
11 ty. The authority shall establish a detailed definition in general and
12 specific to different segments of the construction industry to the
13 extent necessary to reflect differing characteristics of such segments
14 based on the criteria used by the United States small business adminis-
15 tration for loans to small businesses as set forth in Sections 121.301
16 through 121.305, or for awarding government procurements as set forth in
17 Sections 121.401 through 121.413, of Subpart A of Part 121 of Chapter I
18 of Title 13 of the Code of Federal Regulations as amended, and such
19 other criteria as determined by the authority;
20 (b) "small business mentoring program" is a program established by the
21 authority pursuant to this section to provide small businesses accepted
22 into the program with the opportunity:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00306-01-9
A. 1487 2
1 (i) for up to four years, to compete for and, where awarded, to
2 perform certain authority public work contracts to be designated by the
3 authority for inclusion in this program under this subparagraph, with
4 the assistance of an authority-provided mentor, which shall be a firm
5 competitively selected by the authority that has extensive construction
6 management and mentoring experience, with the mentor to provide the
7 small business with advice and assistance in competing for and managing
8 authority public work contracts; and
9 (ii) for a small business mentoring program participant which the
10 authority has determined has successfully completed the program under
11 subparagraph (i) of this paragraph, for up to four additional years, (A)
12 additional opportunities to compete with other designated small busi-
13 nesses in the program for certain public work contracts to be designated
14 for inclusion under this subparagraph and, where awarded, to perform
15 such authority public work contracts, with the further assistance of an
16 authority-provided mentor, which shall be a firm competitively selected
17 by the authority that has extensive construction management and mentor-
18 ing experience, with the mentor to provide the small business with
19 advice and technical assistance in competing for and managing authority
20 public work contracts, and (B) authority-provided assistance, as deter-
21 mined by the authority, for such a small business to obtain bonding for
22 public work contracts that are competitively awarded pursuant to
23 provisions of law other than this section; and
24 (c) "small business mentoring program contract" means a non-federally
25 funded authority public work contract designated by the authority, in an
26 estimated amount of not more than one million dollars for contracts
27 under subparagraph (i) of paragraph (b) of this subdivision and three
28 million dollars for contracts under subparagraph (ii) of paragraph (b)
29 of this subdivision, for which bids or proposals are to be invited and
30 accepted only from businesses that are enrolled in the small business
31 mentoring program and have been selected by the authority to compete for
32 the contract.
33 2. Small business mentoring program. (a) Pursuant to this section, the
34 authority shall establish a small business mentoring program. In
35 connection therewith, the authority may determine the criteria pursuant
36 to which a small business shall be eligible for and selected to partic-
37 ipate in the program under subparagraphs (i) and (ii) of paragraph (b)
38 of subdivision one of this section, the number of participants to
39 participate in each such component of the program, the criteria for the
40 competitive selection of the firms that will provide small businesses
41 with mentoring services, the assignment of a mentor to a specific small
42 business in the small business mentoring program, and the funding for
43 the program.
44 (b) Under the small business mentoring program, the authority is
45 authorized, notwithstanding any other provision of law:
46 (i) to designate which eligible public work contracts shall be small
47 business mentoring program contracts under subparagraphs (i) and (ii) of
48 paragraph (b) of subdivision one of this section, respectively;
49 (ii) to establish standards for qualifying small business mentoring
50 program participants to compete for a small business mentoring program
51 contract, provided that no less than three qualified small businesses in
52 the program must submit responsive offers to perform the contract;
53 (iii) to determine when bids or proposals for a small business mentor-
54 ing program contract should be restricted to small business mentoring
55 program participants which, prior to the receipt of bids or proposals,
56 have been qualified by the authority for such competition;
A. 1487 3
1 (iv) to competitively select, designate and contract with one or more
2 experienced construction management firms that, under the general super-
3 vision of the authority, will provide mentoring services to the small
4 businesses participating in the small business mentoring program, and to
5 assign such mentors one or more designated small businesses participat-
6 ing in the program;
7 (v) for small business mentoring program contracts, except as set
8 forth herein, to waive requirements for the solicitation and award of a
9 public work contract pursuant to sections twelve hundred nine, twelve
10 hundred sixty-five-a and twenty-eight hundred seventy-nine of this chap-
11 ter and any other provision of law;
12 (vi) to assist only small business mentoring program participants that
13 have been awarded small business mentoring program contracts to obtain
14 any surety bond or contract of insurance required of them in connection
15 with such contract only notwithstanding any provision of section two
16 thousand five hundred four of the insurance law to the contrary; and
17 (vii) for small businesses that have been accepted into the small
18 business mentoring program under subparagraph (ii) of paragraph (b) of
19 subdivision one of this section, in addition to the benefits of such
20 program and notwithstanding any other provision of law, to provide tech-
21 nical assistance in obtaining bid, payment and performance bonding for
22 authority public work contracts that are not small business mentoring
23 program contracts, for which the small business is otherwise qualified.
24 (c) Under the small business mentoring program, the authority shall,
25 notwithstanding any other provision of law:
26 (i) require that thirty percent of all New York state funded contracts
27 over one hundred thousand dollars be awarded to minority and women-owned
28 businesses;
29 (ii) require that eighteen percent of all federal transit adminis-
30 tration funded contracts be awarded to disadvantaged business enter-
31 prises;
32 (iii) require that six percent of all New York state funded contracts
33 be awarded to service disabled veteran-owned businesses;
34 (iv) provide a thirteen-week class at no cost for training on
35 construction and business development;
36 (v) develop and implement a small business loan program where firms
37 are eligible to obtain loans up to nine hundred thousand dollars per
38 contract; and
39 (vi) develop and implement a program for providing free business
40 plans, legal advice, financial guidance, and administrative and back-
41 office support for small businesses participating in the program.
42 3. Withdrawal of designation of small business mentoring program
43 contracts. (a) If the total number of qualified small business mentoring
44 program participants that respond to a competition and are considered
45 capable of meeting the specifications and terms of the invitation to
46 compete is less than three, or if the authority determines that accept-
47 ance of the best offer will result in the payment of an unreasonable
48 price, the authority may reject all offers and withdraw the designation
49 of the contract as a small business mentoring program contract.
50 (b) If the authority withdraws the designation of a contract as a
51 small business mentoring program contract, the firms, if any, that made
52 offers shall be notified. Invitations to compete containing the same or
53 rewritten specifications and terms shall then be re-issued as a small
54 business mentoring program contract for one or more additional contract
55 periods.
A. 1487 4
1 4. Construction manager mentors. A mentor shall provide services and
2 assistance to a small business as designated by the authority, which may
3 include the following: (a) provide business training in the skills
4 necessary to operate a successful construction business and to compete
5 for and perform a public work contract;
6 (b) provide technical assistance to the small business to assess the
7 outcome if the small business competes for but is not awarded a
8 contract;
9 (c) if the small business mentoring program contract is awarded to the
10 small business, provide guidance, advice and technical assistance to the
11 small business in the performance of the contract; and
12 (d) provide other technical assistance to the small business to facil-
13 itate learning, training and other issues which may arise.
14 5. Aggregate amount. The small business mentoring program contracts
15 authorized by this section shall, for the initial year of the program,
16 be in an aggregate amount of not less than ten million dollars, and
17 shall not exceed one hundred million dollars, with the maximum amount in
18 future years to be set by the authority.
19 § 2. The executive law is amended by adding a new section 204 to read
20 as follows:
21 § 204. Office of general services small business mentoring program. 1.
22 Definitions. As used in this section, unless the context requires other-
23 wise:
24 (a) "small business" means a business in the construction trades which
25 (i) is independently owned and operated; (ii) has annual revenues not
26 exceeding a fiscal limitation of five million dollars or such lesser
27 amount as established by the office of general services pursuant to
28 these provisions; and (iii) meets additional criteria as otherwise
29 established by the office of general services. The office of general
30 services shall establish a detailed definition in general and specific
31 to different segments of the construction industry to the extent neces-
32 sary to reflect differing characteristics of such segments based on the
33 criteria used by the United States small business administration for
34 loans to small businesses as set forth in Sections 121.301 through
35 121.305, or for awarding government procurements as set forth in
36 Sections 121.401 through 121.413, of Subpart A of Part 121 of Chapter I
37 of Title 13 of the Code of Federal Regulations as amended, and such
38 other criteria as determined by the office of general services;
39 (b) "small business mentoring program" is a program established by the
40 office of general services pursuant to this section to provide small
41 businesses accepted into the program with the opportunity:
42 (i) for up to four years, to compete for and, where awarded, to
43 perform certain office of general services public work contracts to be
44 designated by the office of general services for inclusion in this
45 program under this subparagraph, with the assistance of an office of
46 general services-provided mentor, which shall be a firm competitively
47 selected by the office of general services that has extensive
48 construction management and mentoring experience, with the mentor to
49 provide the small business with advice and assistance in competing for
50 and managing office of general services public work contracts; and
51 (ii) for a small business mentoring program participant which the
52 office of general services has determined has successfully completed the
53 program under subparagraph (i) of this paragraph, for up to four addi-
54 tional years, (A) additional opportunities to compete with other desig-
55 nated small businesses in the program for certain public work contracts
56 to be designated for inclusion under this subparagraph and, where
A. 1487 5
1 awarded, to perform such office of general services public work
2 contracts, with the further assistance of an office of general servic-
3 es-provided mentor, which shall be a firm competitively selected by the
4 office of general services that has extensive construction management
5 and mentoring experience, with the mentor to provide the small business
6 with advice and technical assistance in competing for and managing
7 office of general services public work contracts, and (B) office of
8 general services-provided assistance, as determined by the office of
9 general services, for such a small business to obtain bonding for public
10 work contracts that are competitively awarded pursuant to provisions of
11 law other than this section;
12 (c) "small business mentoring program contract" means a non-federally
13 funded office of general services public work contract designated by the
14 office of general services, in an estimated amount of not more than one
15 million dollars for contracts under subparagraph (i) of paragraph (b) of
16 this subdivision and three million dollars for contracts under subpara-
17 graph (ii) of paragraph (b) of this subdivision, for which bids or
18 proposals are to be invited and accepted only from businesses that are
19 enrolled in the small business mentoring program and have been selected
20 by the office of general services to compete for the contract.
21 2. Small business mentoring program. (a) Pursuant to this section, the
22 office of general services shall establish a small business mentoring
23 program. In connection therewith, the office of general services may
24 determine the criteria pursuant to which a small business shall be
25 eligible for and selected to participate in the program under subpara-
26 graphs (i) and (ii) of paragraph (b) of subdivision one of this section,
27 the number of participants to participate in each such component of the
28 program, the criteria for the competitive selection of the firms that
29 will provide small businesses with mentoring services, the assignment of
30 a mentor to a specific small business in the small business mentoring
31 program, and the funding for the program.
32 (b) Under the small business mentoring program, the office of general
33 services is authorized, notwithstanding any other provision of law:
34 (i) to designate which eligible public work contracts shall be small
35 business mentoring program contracts under subparagraphs (i) and (ii) of
36 paragraph (b) of subdivision one of this section, respectively;
37 (ii) to establish standards for qualifying small business mentoring
38 program participants to compete for a small business mentoring program
39 contract, provided that no less than three qualified small businesses in
40 the program must submit responsive offers to perform the contract;
41 (iii) to determine when bids or proposals for a small business mentor-
42 ing program contract should be restricted to small business mentoring
43 program participants which, prior to the receipt of bids or proposals,
44 have been qualified by the office of general services for such competi-
45 tion;
46 (iv) to competitively select, designate and contract with one or more
47 experienced construction management firms that, under the general super-
48 vision of the office of general services, will provide mentoring
49 services to the small businesses participating in the small business
50 mentoring program, and to assign such mentors one or more designated
51 small businesses participating in the program;
52 (v) for small business mentoring program contracts, except as set
53 forth herein, to waive requirements for the solicitation and award of a
54 public work contract pursuant to sections twelve hundred nine, twelve
55 hundred sixty-five-a and twenty-eight hundred seventy-nine of the public
56 authorities law and any other provision of law;
A. 1487 6
1 (vi) to assist only small business mentoring program participants that
2 have been awarded small business mentoring program contracts to obtain
3 any surety bond or contract of insurance required of them in connection
4 with such contract only notwithstanding any provision of section two
5 thousand five hundred four of the insurance law to the contrary; and
6 (vii) for small businesses that have been accepted into the small
7 business mentoring program under subparagraph (ii) of paragraph (b) of
8 subdivision one of this section, in addition to the benefits of such
9 program and notwithstanding any other provision of law, to provide tech-
10 nical assistance in obtaining bid, payment and performance bonding for
11 office of general services public work contracts that are not small
12 business mentoring program contracts, for which the small business is
13 otherwise qualified.
14 (c) Under the small business mentoring program, the office of general
15 services shall, notwithstanding any other provision of law:
16 (i) require that thirty percent of all New York state funded contracts
17 over one hundred thousand dollars be awarded to minority and women-owned
18 businesses;
19 (ii) require that eighteen percent of all federal transit adminis-
20 tration funded contracts be awarded to disadvantaged business enter-
21 prises;
22 (iii) require that six percent of all New York state funded contracts
23 be awarded to service disabled veteran-owned businesses;
24 (iv) provide a thirteen-week class at no cost for training on
25 construction and business development;
26 (v) develop and implement a small business loan program where firms
27 are eligible to obtain loans up to nine hundred thousand dollars per
28 contract; and
29 (vi) develop and implement a program for providing free business
30 plans, legal advice, financial guidance, and administrative and back-
31 office for support small businesses participating in the program.
32 3. Withdrawal of designation of small business mentoring program
33 contracts. (a) If the total number of qualified small business mentoring
34 program participants that respond to a competition and are considered
35 capable of meeting the specifications and terms of the invitation to
36 compete is less than three, or if the office of general services deter-
37 mines that acceptance of the best offer will result in the payment of an
38 unreasonable price, the office of general services may reject all offers
39 and withdraw the designation of the contract as a small business mentor-
40 ing program contract.
41 (b) If the office of general services withdraws the designation of a
42 contract as a small business mentoring program contract, the firms, if
43 any, that made offers shall be notified. Invitations to compete contain-
44 ing the same or rewritten specifications and terms shall then be re-is-
45 sued as a small business mentoring program contract for one or more
46 additional contract periods.
47 4. Construction manager mentors. A mentor shall provide services and
48 assistance to a small business as designated by the office of general
49 services, which may include the following: (a) provide business training
50 in the skills necessary to operate a successful construction business
51 and to compete for and perform a public work contract;
52 (b) provide technical assistance to the small business to assess the
53 outcome if the small business competes for but is not awarded a
54 contract;
A. 1487 7
1 (c) if the small business mentoring program contract is awarded to the
2 small business, provide guidance, advice and technical assistance to the
3 small business in the performance of the contract; and
4 (d) provide other technical assistance to the small business to facil-
5 itate learning, training and other issues which may arise.
6 5. Aggregate amount. The small business mentoring program contracts
7 authorized by this section shall, for the initial year of the program,
8 be in an aggregate amount of not less than ten million dollars, and
9 shall not exceed one hundred million dollars, with the maximum amount in
10 future years to be set by the office of general services.
11 § 3. The public health law is amended by adding a new section 411 to
12 read as follows:
13 § 411. Department of health small business mentoring program. 1.
14 Definitions. As used in this section, unless the context requires other-
15 wise:
16 (a) "small business" means a business in the construction trades which
17 (i) is independently owned and operated; (ii) has annual revenues not
18 exceeding a fiscal limitation of five million dollars or such lesser
19 amount as established by the department pursuant to these provisions;
20 and (iii) meets additional criteria as otherwise established by the
21 department. The department shall establish a detailed definition in
22 general and specific to different segments of the construction industry
23 to the extent necessary to reflect differing characteristics of such
24 segments based on the criteria used by the United States small business
25 administration for loans to small businesses as set forth in Sections
26 121.301 through 121.305, or for awarding government procurements as set
27 forth in Sections 121.401 through 121.413, of Subpart A of Part 121 of
28 Chapter I of Title 13 of the Code of Federal Regulations as amended, and
29 such other criteria as determined by the department;
30 (b) "small business mentoring program" is a program established by the
31 department pursuant to these provisions to provide small businesses
32 accepted into the program with the opportunity:
33 (i) for up to four years, to compete for and, where awarded, to
34 perform certain department public work contracts to be designated by the
35 department for inclusion in this program under this subparagraph, with
36 the assistance of a department-provided mentor, which shall be a firm
37 competitively selected by the department that has extensive construction
38 management and mentoring experience, with the mentor to provide the
39 small business with advice and assistance in competing for and managing
40 department public work contracts; and
41 (ii) for a small business mentoring program participant which the
42 department has determined has successfully completed the program under
43 subparagraph (i) of this paragraph, for up to four additional years, (A)
44 additional opportunities to compete with other designated small busi-
45 nesses in the program for certain public work contracts to be designated
46 for inclusion under this subparagraph and, where awarded, to perform
47 such department public work contracts, with the further assistance of a
48 department-provided mentor, which shall be a firm competitively selected
49 by the department that has extensive construction management and mentor-
50 ing experience, with the mentor to provide the small business with
51 advice and technical assistance in competing for and managing department
52 public work contracts, and (B) department-provided assistance, as deter-
53 mined by the department, for such a small business to obtain bonding for
54 public work contracts that are competitively awarded pursuant to
55 provisions of law other than this section.
A. 1487 8
1 (c) "small business mentoring program contract" means a non-federally
2 funded department public work contract designated by the department, in
3 an estimated amount of not more than one million dollars for contracts
4 under subparagraph (i) of paragraph (b) of this subdivision and three
5 million dollars for contracts under subparagraph (ii) of paragraph (b)
6 of this subdivision, for which bids or proposals are to be invited and
7 accepted only from businesses that are enrolled in the small business
8 mentoring program and have been selected by the department to compete
9 for the contract.
10 2. Small business mentoring program. (a) Pursuant to this section, the
11 department shall establish a small business mentoring program. In
12 connection therewith, the department may determine the criteria pursuant
13 to which a small business shall be eligible for and selected to partic-
14 ipate in the program under subparagraphs (i) and (ii) of paragraph (b)
15 of subdivision one of this section, the number of participants to
16 participate in each such component of the program, the criteria for the
17 competitive selection of the firms that will provide small businesses
18 with mentoring services, the assignment of a mentor to a specific small
19 business in the small business mentoring program, and the funding for
20 the program.
21 (b) Under the small business mentoring program, the department is
22 authorized, notwithstanding any other provision of law:
23 (i) to designate which eligible public work contracts shall be small
24 business mentoring program contracts under subparagraphs (i) and (ii) of
25 paragraph (b) of subdivision one of this section, respectively;
26 (ii) to establish standards for qualifying small business mentoring
27 program participants to compete for a small business mentoring program
28 contract, provided that no less than three qualified small businesses in
29 the program must submit responsive offers to perform the contract;
30 (iii) to determine when bids or proposals for a small business mentor-
31 ing program contract should be restricted to small business mentoring
32 program participants which, prior to the receipt of bids or proposals,
33 have been qualified by the department for such competition;
34 (iv) to competitively select, designate and contract with one or more
35 experienced construction management firms that, under the general super-
36 vision of the department, will provide mentoring services to the small
37 businesses participating in the small business mentoring program, and to
38 assign such mentors one or more designated small businesses participat-
39 ing in the program;
40 (v) for small business mentoring program contracts, except as set
41 forth herein, to waive requirements for the solicitation and award of a
42 public work contract pursuant to sections twelve hundred nine, twelve
43 hundred sixty-five-a and twenty-eight hundred seventy-nine of the public
44 authorities law and any other provision of law;
45 (vi) to assist only small business mentoring program participants that
46 have been awarded small business mentoring program contracts to obtain
47 any surety bond or contract of insurance required of them in connection
48 with such contract only notwithstanding any provision of section two
49 thousand five hundred four of the insurance law to the contrary; and
50 (vii) for small businesses that have been accepted into the small
51 business mentoring program under subparagraph (ii) of paragraph (b) of
52 subdivision one of this section, in addition to the benefits of such
53 program and notwithstanding any other provision of law, to provide tech-
54 nical assistance in obtaining bid, payment and performance bonding for
55 department public work contracts that are not small business mentoring
56 program contracts, for which the small business is otherwise qualified.
A. 1487 9
1 (c) Under the small business mentoring program, the department shall,
2 notwithstanding any other provision of law:
3 (i) require that thirty percent of all New York state funded contracts
4 over one hundred thousand dollars be awarded to minority and women-owned
5 businesses;
6 (ii) require that eighteen percent of all federal transit adminis-
7 tration funded contracts be awarded to disadvantaged business enter-
8 prises;
9 (iii) require that six percent of all New York state funded contracts
10 be awarded to service disabled veteran-owned businesses;
11 (iv) provide a thirteen-week class at no cost for training in
12 construction and business development for small businesses participating
13 in the program;
14 (v) develop and implement a small business loan program where firms
15 are eligible to obtain loans up to nine hundred thousand dollars per
16 contract; and
17 (vi) develop and implement a program for providing free business
18 plans, legal advice, financial guidance, and administrative and back-
19 office support for small businesses participating in the program.
20 3. Withdrawal of designation of small business mentoring program
21 contracts. (a) If the total number of qualified small business mentoring
22 program participants that respond to a competition and are considered
23 capable of meeting the specifications and terms of the invitation to
24 compete is less than three, or if the department determines that accept-
25 ance of the best offer will result in the payment of an unreasonable
26 price, the department may reject all offers and withdraw the designation
27 of the contract as a small business mentoring program contract.
28 (b) If the department withdraws the designation of a contract as a
29 small business mentoring program contract, the firms, if any, that made
30 offers shall be notified. Invitations to compete containing the same or
31 rewritten specifications and terms shall then be re-issued as a small
32 business mentoring program contract for one or more additional contract
33 periods.
34 4. Construction manager mentors. A mentor shall provide services and
35 assistance to a small business as designated by the department, which
36 may include the following: (a) provide business training in the skills
37 necessary to operate a successful construction business and to compete
38 for and perform a public work contract;
39 (b) provide technical assistance to the small business to assess the
40 outcome if the small business competes for but is not awarded a
41 contract;
42 (c) if the small business mentoring program contract is awarded to the
43 small business, provide guidance, advice and technical assistance to the
44 small business in the performance of the contract; and
45 (d) provide other technical assistance to the small business to facil-
46 itate learning, training and other issues which may arise.
47 5. Aggregate amount. The small business mentoring program contracts
48 authorized by this legislation shall, for the initial year of the
49 program, be in an aggregate amount of not less than ten million dollars,
50 and shall not exceed one hundred million dollars, with the maximum
51 amount in future years to be set by the department.
52 § 4. The transportation law is amended by adding a new section 23 to
53 read as follows:
54 § 23. Department of transportation small business mentoring program.
55 1. Definitions. As used in this section, unless the context requires
56 otherwise:
A. 1487 10
1 (a) "small business" means a business in the construction trades which
2 (i) is independently owned and operated; (ii) has annual revenues not
3 exceeding a fiscal limitation of five million dollars or such lesser
4 amount as established by the department pursuant to these provisions;
5 and (iii) meets additional criteria as otherwise established by the
6 department. The department shall establish a detailed definition in
7 general and specific to different segments of the construction industry
8 to the extent necessary to reflect differing characteristics of such
9 segments based on the criteria used by the United States small business
10 administration for loans to small businesses as set forth in Sections
11 121.301 through 121.305, or for awarding government procurements as set
12 forth in Sections 121.401 through 121.413, of Subpart A of Part 121 of
13 Chapter I of Title 13 of the Code of Federal Regulations as amended, and
14 such other criteria as determined by the department;
15 (b) "small business mentoring program" is a program established by the
16 department pursuant to this section to provide small businesses accepted
17 into the program with the opportunity:
18 (i) for up to four years, to compete for and, where awarded, to
19 perform certain department public work contracts, including but not
20 limited to contracts for thruway and bridge projects, to be designated
21 by the department for inclusion in this program under this subparagraph,
22 with the assistance of a department-provided mentor, which shall be a
23 firm competitively selected by the department that has extensive
24 construction management and mentoring experience, with the mentor to
25 provide the small business with advice and assistance in competing for
26 and managing department public work contracts; and
27 (ii) for a small business mentoring program participant which the
28 department has determined has successfully completed the program under
29 subparagraph (i) of this paragraph, for up to four additional years, (A)
30 additional opportunities to compete with other designated small busi-
31 nesses in the program for certain public work contracts to be designated
32 for inclusion under this subparagraph and, where awarded, to perform
33 such department public work contracts, with the further assistance of a
34 department-provided mentor, which shall be a firm competitively selected
35 by the department that has extensive construction management and mentor-
36 ing experience, with the mentor to provide the small business with
37 advice and technical assistance in competing for and managing department
38 public work contracts, and (B) department-provided assistance, as deter-
39 mined by the department, for such a small business to obtain bonding for
40 public work contracts that are competitively awarded pursuant to
41 provisions of law other than this section.
42 (c) "small business mentoring program contract" means a non-federally
43 funded department public work contract designated by the department, in
44 an estimated amount of not more than one million dollars for contracts
45 under subparagraph (i) of paragraph (b) of this subdivision and three
46 million dollars for contracts under subparagraph (ii) of paragraph (b)
47 of this subdivision, for which bids or proposals are to be invited and
48 accepted only from businesses that are enrolled in the small business
49 mentoring program and have been selected by the department to compete
50 for the contract.
51 2. Small business mentoring program. (a) Pursuant to this section, the
52 department shall establish a small business mentoring program. In
53 connection therewith, the department may determine the criteria pursuant
54 to which a small business shall be eligible for and selected to partic-
55 ipate in the program under subparagraphs (i) and (ii) of paragraph (b)
56 of subdivision one of this section, the number of participants to
A. 1487 11
1 participate in each such component of the program, the criteria for the
2 competitive selection of the firms that will provide small businesses
3 with mentoring services, the assignment of a mentor to a specific small
4 business in the small business mentoring program, and the funding for
5 the program.
6 (b) Under the small business mentoring program, the department is
7 authorized, notwithstanding any other provision of law:
8 (i) to designate which eligible public work contracts shall be small
9 business mentoring program contracts under subparagraphs (i) and (ii) of
10 paragraph (b) of subdivision one of this section, respectively;
11 (ii) to establish standards for qualifying small business mentoring
12 program participants to compete for a small business mentoring program
13 contract, provided that no less than three qualified small businesses in
14 the program must submit responsive offers to perform the contract;
15 (iii) to determine when bids or proposals for a small business mentor-
16 ing program contract should be restricted to small business mentoring
17 program participants which, prior to the receipt of bids or proposals,
18 have been qualified by the department for such competition;
19 (iv) to competitively select, designate and contract with one or more
20 experienced construction management firms that, under the general super-
21 vision of the department, will provide mentoring services to the small
22 businesses participating in the small business mentoring program, and to
23 assign such mentors one or more designated small businesses participat-
24 ing in the program;
25 (v) for small business mentoring program contracts, except as set
26 forth herein, to waive requirements for the solicitation and award of a
27 public work contract pursuant to sections twelve hundred nine, twelve
28 hundred sixty-five-a and twenty-eight hundred seventy-nine of the public
29 authorities law and any other provision of law;
30 (vi) to assist only small business mentoring program participants that
31 have been awarded small business mentoring program contracts to obtain
32 any surety bond or contract of insurance required of them in connection
33 with such contract only notwithstanding any provision of section two
34 thousand five hundred four of the insurance law to the contrary; and
35 (vii) for small businesses that have been accepted into the small
36 business mentoring program under subparagraph (ii) of paragraph (b) of
37 subdivision one of this section, in addition to the benefits of such
38 program and notwithstanding any other provision of law, to provide tech-
39 nical assistance in obtaining bid, payment and performance bonding for
40 department public work contracts that are not small business mentoring
41 program contracts, for which the small business is otherwise qualified.
42 (c) Under the small business mentoring program, the department shall,
43 notwithstanding any other provision of law:
44 (i) require that thirty percent of all New York state funded contracts
45 over one hundred thousand dollars be awarded to minority and women-owned
46 businesses;
47 (ii) require that eighteen percent of all federal transit adminis-
48 tration funded contracts be awarded to disadvantaged business enter-
49 prises;
50 (iii) require that six percent of all New York state funded contracts
51 be awarded to service disabled veteran-owned businesses;
52 (iv) provide a thirteen-week class at no cost for training in
53 construction and business development for small businesses participating
54 in the program;
A. 1487 12
1 (v) develop and implement a small business loan program where firms
2 are eligible to obtain loans up to nine hundred thousand dollars per
3 contract; and
4 (vi) develop and implement a program for providing free business
5 plans, legal advice, financial guidance, and administrative and back-
6 office support for small businesses participating in the program.
7 3. Withdrawal of designation of small business mentoring program
8 contracts. (a) If the total number of qualified small business mentoring
9 program participants that respond to a competition and are considered
10 capable of meeting the specifications and terms of the invitation to
11 compete is less than three, or if the department determines that accept-
12 ance of the best offer will result in the payment of an unreasonable
13 price, the department may reject all offers and withdraw the designation
14 of the contract as a small business mentoring program contract.
15 (b) If the department withdraws the designation of a contract as a
16 small business mentoring program contract, the firms, if any, that made
17 offers shall be notified. Invitations to compete containing the same or
18 rewritten specifications and terms shall then be re-issued as a small
19 business mentoring program contract for one or more additional contract
20 periods.
21 4. Construction manager mentors. A mentor shall provide services and
22 assistance to a small business as designated by the department, which
23 may include the following: (a) provide business training in the skills
24 necessary to operate a successful construction business and to compete
25 for and perform a public work contract;
26 (b) provide technical assistance to the small business to assess the
27 outcome if the small business competes for but is not awarded a
28 contract;
29 (c) if the small business mentoring program contract is awarded to the
30 small business, provide guidance, advice and technical assistance to the
31 small business in the performance of the contract; and
32 (d) provide other technical assistance to the small business to facil-
33 itate learning, training and other issues which may arise.
34 5. Aggregate amount. The small business mentoring program contracts
35 authorized by this section shall, for the initial year of the program,
36 be in an aggregate amount of not less than ten million dollars, and
37 shall not exceed one hundred million dollars, with the maximum amount in
38 future years to be set by the department.
39 § 5. 1. The empire state development corporation (hereinafter "corpo-
40 ration") shall develop, establish, and implement a small business
41 mentoring program to provide small businesses with opportunities for
42 public work contracts and assistance in management.
43 2. As used in this section, unless the context requires otherwise:
44 (a) "small business" means a business in the construction trades which
45 (i) is independently owned and operated; (ii) has annual revenues not
46 exceeding a fiscal limitation of five million dollars or such lesser
47 amount as established by the corporation pursuant to these provisions;
48 and (iii) meets additional criteria as otherwise established by the
49 corporation. The corporation shall establish a detailed definition in
50 general and specific to different segments of the construction industry
51 to the extent necessary to reflect differing characteristics of such
52 segments based on the criteria used by the United States small business
53 administration for loans to small businesses as set forth in Sections
54 121.301 through 121.305, or for awarding government procurements as set
55 forth in Sections 121.401 through 121.413, of Subpart A of Part 121 of
A. 1487 13
1 Chapter I of Title 13 of the Code of Federal Regulations as amended, and
2 such other criteria as determined by the corporation;
3 (b) "small business mentoring program" is a program established by the
4 corporation pursuant to this section to provide small businesses
5 accepted into the program with the opportunity:
6 (i) for up to four years, to compete for and, where awarded, to
7 perform certain corporation public work contracts to be designated by
8 the corporation for inclusion in this program under this subparagraph,
9 with the assistance of a corporation-provided mentor, which shall be a
10 firm competitively selected by the corporation that has extensive
11 construction management and mentoring experience, with the mentor to
12 provide the small business with advice and assistance in competing for
13 and managing corporation public work contracts; and
14 (ii) for a small business mentoring program participant which the
15 corporation has determined has successfully completed the program under
16 subparagraph (i) of this paragraph, for up to four additional years, (A)
17 additional opportunities to compete with other designated small busi-
18 nesses in the program for certain public work contracts to be designated
19 for inclusion under this subparagraph and, where awarded, to perform
20 such corporation public work contracts, with the further assistance of a
21 corporation-provided mentor, which shall be a firm competitively
22 selected by the corporation that has extensive construction management
23 and mentoring experience, with the mentor to provide the small business
24 with advice and technical assistance in competing for and managing
25 corporation public work contracts, and (B) corporation-provided assist-
26 ance, as determined by the corporation, for such a small business to
27 obtain bonding for public work contracts that are competitively awarded
28 pursuant to provisions of law other than this section; and
29 (c) "small business mentoring program contract" means a non-federally
30 funded corporation public work contract designated by the corporation,
31 in an estimated amount of not more than one million dollars for
32 contracts under subparagraph (i) of paragraph (b) of this subdivision
33 and three million dollars for contracts under subparagraph (ii) of para-
34 graph (b) of this subdivision, for which bids or proposals are to be
35 invited and accepted only from businesses that are enrolled in the small
36 business mentoring program and have been selected by the corporation to
37 compete for the contract.
38 3. Small business mentoring program. (a) In connection with the estab-
39 lishment of the program pursuant to subdivision one of this act, the
40 corporation may determine the criteria pursuant to which a small busi-
41 ness shall be eligible for and selected to participate in the program
42 under subparagraphs (i) and (ii) of paragraph (b) of subdivision two of
43 this section, the number of participants to participate in each such
44 component of the program, the criteria for the competitive selection of
45 the firms that will provide small businesses with mentoring services,
46 the assignment of a mentor to a specific small business in the small
47 business mentoring program, and the funding for the program.
48 (b) Under the small business mentoring program, the corporation is
49 authorized, notwithstanding any other provision of law:
50 (i) to designate which eligible public work contracts shall be small
51 business mentoring program contracts under subparagraphs (i) and (ii) of
52 paragraph (b) of subdivision two of this section, respectively;
53 (ii) to establish standards for qualifying small business mentoring
54 program participants to compete for a small business mentoring program
55 contract, provided that no less than three qualified small businesses in
56 the program must submit responsive offers to perform the contract;
A. 1487 14
1 (iii) to determine when bids or proposals for a small business mentor-
2 ing program contract should be restricted to small business mentoring
3 program participants which, prior to the receipt of bids or proposals,
4 have been qualified by the corporation for such competition;
5 (iv) to competitively select, designate and contract with one or more
6 experienced construction management firms that, under the general super-
7 vision of the corporation, will provide mentoring services to the small
8 businesses participating in the small business mentoring program, and to
9 assign such mentors one or more designated small businesses participat-
10 ing in the program;
11 (v) for small business mentoring program contracts, except as set
12 forth herein, to waive requirements for the solicitation and award of a
13 public work contract pursuant to sections twelve hundred nine, twelve
14 hundred sixty-five-a and twenty-eight hundred seventy-nine of the public
15 authorities law and any other provision of law;
16 (vi) to assist only small business mentoring program participants that
17 have been awarded small business mentoring program contracts to obtain
18 any surety bond or contract of insurance required of them in connection
19 with such contract only notwithstanding any provision of section two
20 thousand five hundred four of the insurance law to the contrary; and
21 (vii) for small businesses that have been accepted into the small
22 business mentoring program under subparagraph (ii) of paragraph (b) of
23 subdivision two of this section, in addition to the benefits of such
24 program and notwithstanding any other provision of law, to provide tech-
25 nical assistance in obtaining bid, payment and performance bonding for
26 corporation public work contracts that are not small business mentoring
27 program contracts, for which the small business is otherwise qualified.
28 (c) Under the small business mentoring program, the corporation shall,
29 notwithstanding any other provision of law:
30 (i) require that thirty percent of all New York state funded contracts
31 over one hundred thousand dollars be awarded to minority and women-owned
32 businesses;
33 (ii) require that eighteen percent of all federal transit adminis-
34 tration funded contracts be awarded to disadvantaged business enter-
35 prises;
36 (iii) require that six percent of all New York state funded contracts
37 be awarded to service disabled veteran-owned businesses;
38 (iv) provide a thirteen-week class at no cost for training in
39 construction and business development for small businesses participating
40 in the program;
41 (v) develop and implement a small business loan program where firms
42 are eligible to obtain loans up to nine hundred thousand dollars per
43 contract; and
44 (vi) develop and implement a program for providing free business
45 plans, legal advice, financial guidance, and administrative and back-
46 office support for small businesses participating in the program.
47 4. Withdrawal of designation of small business mentoring program
48 contracts. (a) If the total number of qualified small business mentoring
49 program participants that respond to a competition and are considered
50 capable of meeting the specifications and terms of the invitation to
51 compete is less than three, or if the corporation determines that
52 acceptance of the best offer will result in the payment of an unreason-
53 able price, the corporation may reject all offers and withdraw the
54 designation of the contract as a small business mentoring program
55 contract.
A. 1487 15
1 (b) If the corporation withdraws the designation of a contract as a
2 small business mentoring program contract, the firms, if any, that made
3 offers shall be notified. Invitations to compete containing the same or
4 rewritten specifications and terms shall then be re-issued as a small
5 business mentoring program contract for one or more additional contract
6 periods.
7 5. Construction manager mentors. A mentor shall provide services and
8 assistance to a small business as designated by the corporation, which
9 may include the following: (a) provide business training in the skills
10 necessary to operate a successful construction business and to compete
11 for and perform a public work contract;
12 (b) provide technical assistance to the small business to assess the
13 outcome if the small business competes for but is not awarded a
14 contract;
15 (c) if the small business mentoring program contract is awarded to the
16 small business, provide guidance, advice and technical assistance to the
17 small business in the performance of the contract; and
18 (d) provide other technical assistance to the small business to facil-
19 itate learning, training and other issues which may arise.
20 6. Aggregate amount. The small business mentoring program contracts
21 authorized by this section shall, for the initial year of the program,
22 be in an aggregate amount of not less than ten million dollars, and
23 shall not exceed one hundred million dollars, with the maximum amount in
24 future years to be set by the corporation.
25 § 6. This act shall take effect on the thirtieth day after it shall
26 have become a law and shall expire December 31, 2023 when upon such date
27 the provisions of this act shall be deemed repealed; provided that such
28 expiration shall not apply to pending and awarded public work contracts
29 and provided further that effective immediately, the addition, amendment
30 and/or repeal of any rule or regulation necessary for the implementation
31 of this act on its effective date are authorized to be made and
32 completed on or before such effective date.