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A07814 Summary:

BILL NOA07814
 
SAME ASSAME AS S06141
 
SPONSORBichotte
 
COSPNSR
 
MLTSPNSR
 
Amd §§310, 311, 311-a, 312-a, 313, 314, 315 & 316-a, add Art 28 §§821 - 826, 312-b & 312-c, Exec L; amd §163, St Fin L; amd §2879, Pub Auth L; amd §121, Chap 261 of 1988
 
Reauthorizes the minority and women-owned business enterprise program, creates the minority and women-owned business enterprise fund, establishes the workforce diversity program, and provides for the repeal of certain provisions upon expiration thereof; and amends provisions of the state finance law and other laws relating to the New York state infrastructure fund, in relation to the effectiveness thereof.
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A07814 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7814
 
SPONSOR: Bichotte
  TITLE OF BILL: An act to amend the executive law, the state finance law, and the public authorities law, in relation to the reauthorization of the minority and women-owned business enterprise program, to create the minority and women-owned business enterprise fund, and to establish the workforce diversity program; to amend chapter 261 of the laws of 1988, amending the state finance law and other laws relating to the New York state infrastructure fund, in relation to the effectiveness of certain provisions thereof; and providing for the repeal of certain provisions upon expiration thereof   PURPOSE: Reauthorizes the minority and women-owned bustness enterprise program, creates the minority and women-owned buhiness enterprise fund, and esta- blishcs the workforce diversity program.   SUMMARY OF PROVISIONS: Reauthorizes the minority and women-owned business enterprise program,creates the minority and women-owned business enterprise fund, and establishes the workforce diversity proram.   JUSTIFICATION: The minority and women-owned business enterprise program will expire on December 31, 2019. This bill would extend the MWEE program.   LEGISLATIVE HISTORY: this is a new bill.   FISCAL IMPLICATIONS: None.
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A07814 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7814
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                      May 23, 2019
                                       ___________
 
        Introduced by M. of A. BICHOTTE -- read once and referred to the Commit-
          tee on Governmental Operations
 
        AN ACT to amend the executive law, the state finance law, and the public
          authorities  law,  in  relation to the reauthorization of the minority
          and women-owned business enterprise program, to  create  the  minority
          and  women-owned  business enterprise fund, and to establish the work-
          force diversity program; to amend chapter 261 of  the  laws  of  1988,
          amending the state finance law and other laws relating to the New York
          state infrastructure fund, in relation to the effectiveness of certain
          provisions thereof; and providing for the repeal of certain provisions
          upon expiration thereof
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivisions 2, 7, 8, 13, 15, 16, 19,  20,  21  and  22  of
     2  section 310 of the executive law, subdivisions 2 and 8 as added by chap-
     3  ter 261 of the laws of 1988, subdivisions 7 and 15 as amended by chapter
     4  22  of the laws of 2014, subdivision 13 as amended by chapter 506 of the
     5  laws of 2009, subdivision 16 as amended by section 3 of part BB of chap-
     6  ter 59 of the laws of 2006, subdivisions 19, 20, 21 and 22 as  added  by
     7  chapter 175 of the laws of 2010, are amended and a new subdivision 24 is
     8  added to read as follows:
     9    2.  "Contracting  agency"  shall  mean  a state agency or state-funded
    10  entity which is a party or a proposed party to a state contract  or,  in
    11  the  case  of a state contract described in paragraph (c) of subdivision
    12  thirteen of this section, shall mean the New York state housing  finance
    13  agency,  housing  trust  fund  corporation  or affordable housing corpo-
    14  ration, whichever has made or proposes to make the grant or loan for the
    15  state assisted housing project.
    16    7. "Minority-owned business enterprise" shall mean a  business  enter-
    17  prise,  including  a sole proprietorship, partnership, limited liability
    18  company or corporation that is:

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11392-01-9

        A. 7814                             2
 
     1    (a) at least fifty-one percent owned by one  or  more  minority  group
     2  members;
     3    (b)  an  enterprise in which such minority ownership is real, substan-
     4  tial and continuing;
     5    (c) an enterprise in which such minority ownership has  and  exercises
     6  the authority to control independently the day-to-day business decisions
     7  of the enterprise;
     8    (d)  an  enterprise  authorized to do business in this state and inde-
     9  pendently owned and operated would  not  qualify  if  it  exceeds  sixty
    10  million dollars in contracts over three consecutive years or exceeds the
    11  threshold of the federal small business administration standards of what
    12  constitutes a small business; and
    13    (e) [an enterprise owned by an individual or individuals, whose owner-
    14  ship,  control  and  operation are relied upon for certification, with a
    15  personal net worth that does not exceed three million five hundred thou-
    16  sand dollars, as adjusted annually on the first of January for inflation
    17  according to the consumer price index of the previous year; and
    18    (f)] an enterprise that is a small business  pursuant  to  subdivision
    19  twenty of this section.
    20    8.  "Minority  group  member"  shall  mean  a United States citizen or
    21  permanent resident alien who is and can demonstrate membership in one of
    22  the following groups:
    23    (a) Black persons having origins in any of the  Black  African  racial
    24  groups;
    25    (b)  [Hispanic]  Hispanic/Latino  persons  of  Mexican,  Puerto Rican,
    26  Dominican, Cuban, Central or South American of either Indian or Hispanic
    27  origin, regardless of race;
    28    (c) Native American or Alaskan native persons having origins in any of
    29  the original peoples of North America.
    30    (d) Asian and Pacific Islander persons having origins in  any  of  the
    31  Far  East  countries,  South  East  Asia, the Indian subcontinent or the
    32  Pacific Islands.
    33    13. "State contract" shall mean: (a) a written agreement  or  purchase
    34  order  instrument,  providing for a total expenditure in excess of twen-
    35  ty-five thousand dollars, whereby a contracting agency is  committed  to
    36  expend  or does expend funds in return for labor, services including but
    37  not  limited  to  legal,  financial  and  other  professional  services,
    38  supplies,  equipment,  materials or any combination of the foregoing, to
    39  be performed for, or rendered or furnished to  the  contracting  agency;
    40  (b) a written agreement in excess of one hundred thousand dollars where-
    41  by  a contracting agency is committed to expend or does expend funds for
    42  the acquisition, construction, demolition, replacement, major repair  or
    43  renovation  of real property and improvements thereon; [and] (c) a writ-
    44  ten agreement in excess of one  hundred  thousand  dollars  whereby  the
    45  owner of a state assisted housing project is committed to expend or does
    46  expend funds for the acquisition, construction, demolition, replacement,
    47  major repair or renovation of real property and improvements thereon for
    48  such  project; and (d) a written agreement or purchase order instrument,
    49  providing for a total expenditure in  excess  of  one  hundred  thousand
    50  dollars,  whereby  the  majority  of  the funds a state-funded entity is
    51  committed to expend or does expend are paid to the  state-funded  entity
    52  by the state of New York, including those paid to the state-funded enti-
    53  ty  pursuant to an appropriation, for any product or service.  The state
    54  utilization goal shall not apply to municipalities that currently have a
    55  minority and women-owned business enterprise program.   The state  shall

        A. 7814                             3
 
     1  provide  technical  assistance  to municipalities regarding minority and
     2  women-owned business enterprise programs subject to appropriations.
     3    15.  "Women-owned  business  enterprise"  shall mean a business enter-
     4  prise, including a sole proprietorship, partnership,  limited  liability
     5  company or corporation that is:
     6    (a)  at  least  fifty-one  percent  owned by one or more United States
     7  citizens or permanent resident aliens who are women;
     8    (b) an enterprise in which the ownership interest  of  such  women  is
     9  real, substantial and continuing;
    10    (c)  an enterprise in which such women ownership has and exercises the
    11  authority to control independently the day-to-day business decisions  of
    12  the enterprise;
    13    (d)  an  enterprise  authorized to do business in this state and inde-
    14  pendently owned and operated; and
    15    (e) [an enterprise owned by an individual or individuals, whose owner-
    16  ship, control and operation are relied upon for  certification,  with  a
    17  personal net worth that does not exceed three million five hundred thou-
    18  sand dollars, as adjusted annually on the first of January for inflation
    19  according to the consumer price index of the previous year; and
    20    (f)]  an  enterprise  that is a small business pursuant to subdivision
    21  twenty of this section.
    22    A firm owned by a minority group member who is also  a  woman  may  be
    23  certified  as  a minority-owned business enterprise, a women-owned busi-
    24  ness enterprise, or both, and may be counted towards either a  minority-
    25  owned  business  enterprise  goal  or  a women-owned business enterprise
    26  goal, in regard to any contract or any goal, set by an agency or author-
    27  ity, but such participation may not be counted towards both such  goals.
    28  Such  an  enterprise's  participation  in  a contract may not be divided
    29  between the minority-owned business enterprise goal and the  women-owned
    30  business enterprise goal.
    31    16.  "Statewide  advocate"  shall  mean  the  person  appointed by the
    32  [commissioner] director to serve in the capacity  of  the  minority  and
    33  women-owned business enterprise statewide advocate.
    34    [19.  "Personal net worth" shall mean the aggregate adjusted net value
    35  of the assets of an individual remaining  after  total  liabilities  are
    36  deducted.  Personal  net worth includes the individual's share of assets
    37  held jointly with said individual's spouse  and  does  not  include  the
    38  individual's  ownership  interest  in  the certified minority and women-
    39  owned business enterprise, the individual's equity in his or her primary
    40  residence, or up to five hundred thousand dollars of  the  present  cash
    41  value  of any qualified retirement savings plan or individual retirement
    42  account held by the individual less any penalties for early withdrawal.]
    43    20. "Small business" as used in this section, unless  otherwise  indi-
    44  cated,  shall  mean a business which has a significant business presence
    45  in the state, is independently owned and operated, not dominant  in  its
    46  field and employs, based on its industry, a certain number of persons as
    47  determined  by  the  director[, but not to exceed three hundred], taking
    48  into consideration factors which include, but are not limited to, feder-
    49  al small business administration standards pursuant to 13 CFR  part  121
    50  and  any  amendments  thereto. The director may issue regulations on the
    51  construction of the terms in this definition.
    52    21. "The [2010] disparity  study"  shall  refer  to  the  most  recent
    53  disparity  study  commissioned  by  the [empire state development corpo-
    54  ration] department of economic development, pursuant  to  section  three
    55  hundred  twelve-a  of this article, and published on [April twenty-nine,
    56  two thousand ten] June thirtieth, two thousand seventeen.

        A. 7814                             4
 
     1    22. "Diversity practices" shall mean the  contractor's  practices  and
     2  policies with respect to:
     3    (a) utilizing or mentoring certified minority and women-owned business
     4  enterprises  in  contracts  awarded  by  a  state agency or other public
     5  corporation, as subcontractors and suppliers; and
     6    (b) entering  into  partnerships,  joint  ventures  or  other  similar
     7  arrangements  with  certified  minority  and women-owned business enter-
     8  prises as defined in this article or other applicable statute  or  regu-
     9  lation  governing  an  entity's  utilization  of minority or women-owned
    10  business enterprises.
    11    24. "State-funded entity" shall mean any  unit  of  local  government,
    12  including,  but not limited to, a county, city, town, village, or school
    13  district that is paid pursuant to an appropriation in any  state  fiscal
    14  year provided, however, a state-funded entity shall not include any unit
    15  of  local  government  that,  pursuant  to local law, has a minority and
    16  women-owned business enterprise program.
    17    § 1-a. Paragraphs (h) and (i) of subdivision 3 of section 311  of  the
    18  executive  law,  paragraph  (h) as amended and paragraph (i) as added by
    19  section 1 of part BB of chapter 59 of the laws of 2006, are  amended  to
    20  read as follows:
    21    (h)  notwithstanding  the provisions of section two hundred ninety-six
    22  of this chapter, to file a  complaint  pursuant  to  the  provisions  of
    23  section  two hundred ninety-seven of this chapter where the director has
    24  knowledge that a contractor may have violated the  provisions  of  para-
    25  graph  (a), (b) or (c) of subdivision one of section two hundred ninety-
    26  six of this chapter where  such  violation  is  unrelated,  separate  or
    27  distinct from the state contract as expressed by its terms; [and]
    28    (i)  to  streamline  the state certification process to accept federal
    29  and municipal corporation certifications; and
    30    (j) to keep a record  of  partial  and  total  waivers  of  compliance
    31  reported  pursuant  to paragraph (b) of subdivision six of section three
    32  hundred thirteen of this article and to make such record publicly avail-
    33  able on the division's website. The record shall provide, at a  minimum:
    34  (i)  information  identifying  the  contract, including the value of the
    35  contract; (ii) information identifying the contracting agency; (iii) the
    36  name of the contractor receiving the waiver; and (iv) the  date  of  the
    37  waiver.
    38    §  2. Subdivision 4 of section 311 of the executive law, as amended by
    39  chapter 361 of the laws of 2009, is amended to read as follows:
    40    4. The director [may] shall  provide  assistance  to,  and  facilitate
    41  access  to programs serving [certified businesses as well as applicants]
    42  minority and women-owned business enterprises to ensure that such  busi-
    43  nesses benefit, as needed, from technical, managerial and financial, and
    44  general  business  assistance;  training;  marketing;  organization  and
    45  personnel skill development; project management  assistance;  technology
    46  assistance;  bond and insurance education assistance; and other business
    47  development assistance.  In addition, the director may, either independ-
    48  ently or in conjunction with other state agencies:
    49    (a) develop a clearinghouse of information on  programs  and  services
    50  provided by entities that may assist such businesses;
    51    (b)  review  bonding and paperwork requirements imposed by contracting
    52  agencies that may unnecessarily impede the ability of such businesses to
    53  compete; and
    54    (c) seek to maximize utilization by minority and women-owned  business
    55  enterprises  of available federal resources including but not limited to
    56  federal grants, loans, loan guarantees, surety bonding guarantees, tech-

        A. 7814                             5
 
     1  nical assistance, and programs and services of the federal  small  busi-
     2  ness administration.
     3    §  3.  Subdivisions  1 and 2 of section 311-a of the executive law, as
     4  added by section 4 of part BB of chapter 59 of the  laws  of  2006,  are
     5  amended to read as follows:
     6    1.  There  is  hereby  established within the [department of economic]
     7  division of minority and women's business development [an office of  the
     8  minority and women-owned business enterprise] a statewide advocate.  The
     9  statewide  advocate  shall  be  appointed  by  the commissioner with the
    10  advice of the small business advisory board as  established  in  section
    11  one hundred thirty-three of the economic development law and shall serve
    12  in  the  unclassified  service  of the director. [The statewide advocate
    13  shall be located in the Albany empire state development office.]
    14    2. The advocate shall act as a liaison for  minority  and  women-owned
    15  business  enterprises  (MWBEs)  to  assist  them in obtaining technical,
    16  managerial, financial and other business assistance for certified  busi-
    17  nesses  and  applicants.  The  advocate  shall  receive  and investigate
    18  complaints brought by or on behalf  of  MWBEs  concerning  certification
    19  delays  and  instances  of  violations of [law] the requirements of this
    20  article by contractors and state agencies. The statewide advocate  shall
    21  assist certified businesses and applicants in the certification process.
    22  Other  functions  of  the  statewide  advocate  shall be directed by the
    23  commissioner. The advocate may request  and  the  director  may  appoint
    24  staff  and  employees  of  the  division  of minority and women business
    25  development to support the administration of the office of the statewide
    26  advocate.
    27    § 4. Section 312-a of the executive law, as amended by  section  1  of
    28  part Q of chapter 58 of the laws of 2015, is amended to read as follows:
    29    §  312-a.  Study  of  minority  and  women-owned  business [enterprise
    30  programs] enterprises. 1. The director of the division of  minority  and
    31  [women-owned] women's business development [in the department of econom-
    32  ic  development]  is authorized and directed to recommission a statewide
    33  disparity study regarding the participation of minority and  women-owned
    34  business  enterprises  in  state  contracts  since the amendment of this
    35  article to be delivered to the governor and legislature  no  later  than
    36  August  fifteenth, [two thousand sixteen] two thousand twenty-three. The
    37  study shall be prepared by an entity independent of the  department  and
    38  selected  through  a  request  for proposal process. The purpose of such
    39  study is:
    40    (a) to determine whether there is a disparity between  the  number  of
    41  qualified minority and women-owned businesses ready, willing and able to
    42  perform  state contracts for commodities, services and construction, and
    43  the  number  of  such  contractors  actually  engaged  to  perform  such
    44  contracts,  and  to  determine  what  changes, if any, should be made to
    45  state policies affecting minority and women-owned business  enterprises;
    46  and  (b) to determine whether there is a disparity between the number of
    47  qualified minorities and women ready, willing and able, with respect  to
    48  labor markets, qualifications and other relevant factors, to participate
    49  in  contractor  employment, management level bodies, including boards of
    50  directors, and as senior executive officers within contracting  entities
    51  and  the  number  of  such group members actually employed or affiliated
    52  with state contractors in the aforementioned capacities, and  to  deter-
    53  mine  what  changes,  if any, should be made to state policies affecting
    54  minority and women group populations with regard to  state  contractors'
    55  employment  and appointment practices relative to diverse group members.
    56  Such study shall include, but not be limited  to,  an  analysis  of  the

        A. 7814                             6
 
     1  history  of  minority  and  women-owned business enterprise programs and
     2  their effectiveness as a means of securing and ensuring participation by
     3  minorities and women, and a disparity analysis by market area and region
     4  of  the  state.    Such  study shall distinguish between minority males,
     5  minority females and non-minority females in the statistical analysis.
     6    2. The director of the division of minority and [women-owned]  women's
     7  business  development is directed to transmit the disparity study to the
     8  governor and the legislature [not later than August fifteenth, two thou-
     9  sand sixteen], and to post the study on the website of the department of
    10  economic development.
    11    § 5. Section 313 of the executive law, as amended by  chapter  175  of
    12  the laws of 2010, is amended to read as follows:
    13    § 313. Opportunities  for  minority  and  women-owned  business enter-
    14  prises. 1. Goals and requirements for agencies and  contractors.    Each
    15  agency shall structure procurement procedures for contracts made direct-
    16  ly  or  indirectly  to minority and women-owned business enterprises, in
    17  accordance with the findings of the [two thousand ten] disparity  study,
    18  consistent with the purposes of this article, to attempt to achieve [the
    19  following]  the recommended results with regard to [total] annual state-
    20  wide procurement for each of the following:
    21    (a) construction industry for certified minority-owned business enter-
    22  prises[: fourteen and thirty-four hundredths percent];
    23    (b) construction industry for certified  women-owned  business  enter-
    24  prises[: eight and forty-one hundredths percent];
    25    (c)  construction related professional services industry for certified
    26  minority-owned business enterprises[: thirteen and twenty-one hundredths
    27  percent];
    28    (d) construction related professional services industry for  certified
    29  women-owned  business  enterprises[:  eleven  and  thirty-two hundredths
    30  percent];
    31    (e) non-construction related services industry for  certified  minori-
    32  ty-owned business enterprises[: nineteen and sixty hundredths percent];
    33    (f)  non-construction  related  services industry for certified women-
    34  owned  business  enterprises[:  seventeen  and   forty-four   hundredths
    35  percent];
    36    (g)  commodities industry for certified minority-owned business enter-
    37  prises[: sixteen and eleven hundredths percent];
    38    (h) commodities industry for  certified  women-owned  business  enter-
    39  prises[:  ten and ninety-three hundredths percent];
    40    (i)  overall  agency  total  dollar value of procurement for certified
    41  minority-owned business enterprises[: sixteen and fifty-three hundredths
    42  percent];
    43    (j) overall agency total dollar value  of  procurement  for  certified
    44  women-owned  business  enterprises[:  twelve  and thirty-nine hundredths
    45  percent]; and
    46    (k) overall agency total dollar value  of  procurement  for  certified
    47  minority, women-owned business enterprises[: twenty-eight and ninety-two
    48  hundredths percent].
    49    1-a.  The  director  shall  ensure  that  each  state  agency has been
    50  provided with a copy of the [two thousand  ten]  most  recent  disparity
    51  study.
    52    1-b.  Each  agency shall develop and adopt agency-specific goals based
    53  on the findings of the [two thousand ten] most recent disparity study.
    54    1-c. The goals set pursuant to subdivision one of this  section  shall
    55  be  consistent  with  the  findings  of the most recent disparity study.

        A. 7814                             7

     1  Every division of a contract shall attempt to  meet  a  goal  of  thirty
     2  percent.
     3    2. The director shall promulgate rules and regulations pursuant to the
     4  goals  established in subdivision one of this section that provide meas-
     5  ures and procedures to ensure that certified  minority  and  women-owned
     6  businesses  shall  be given the opportunity for maximum feasible partic-
     7  ipation in the performance of state contracts and to assist in the agen-
     8  cy's identification of those state  contracts  for  which  minority  and
     9  women-owned  certified  businesses may best bid to actively and affirma-
    10  tively promote and assist their  participation  in  the  performance  of
    11  state  contracts  so  as  to  facilitate the agency's achievement of the
    12  maximum feasible portion of the goals for state contracts to such  busi-
    13  nesses.
    14    2-a.  The  director  shall  promulgate rules and regulations that will
    15  accomplish the following:
    16    (a) provide for the certification and decertification of minority  and
    17  women-owned business enterprises for all agencies through a single proc-
    18  ess that meets applicable requirements;
    19    (b) require that each contract solicitation document accompanying each
    20  solicitation  set  forth the expected degree of minority and women-owned
    21  business enterprise participation based, in part, on:
    22    (i) the potential subcontract opportunities  available  in  the  prime
    23  procurement contract; [and]
    24    (ii)  the  availability,  as  contained within the study, of certified
    25  minority and women-owned business enterprises to  respond  competitively
    26  to  the  potential  subcontract opportunities, as reflected in the divi-
    27  sion's directory of certified minority and women-owned  business  enter-
    28  prises; and
    29    (iii) the findings of the disparity study.
    30    (c)  require  that  each  agency  provide  a current list of certified
    31  minority business enterprises to each prospective contractor;
    32    (d) allow a contractor that is a certified  minority-owned  or  women-
    33  owned  business  enterprise to use the work it performs to meet require-
    34  ments for use of certified minority-owned or women-owned business enter-
    35  prises as subcontractors;
    36    (e) provide for joint ventures, which a bidder may count toward  meet-
    37  ing its minority and women-owned business enterprise participation;
    38    (f)  consistent  with  subdivision  six  of  this section, provide for
    39  circumstances under which an agency or  state-funded  entity  may  waive
    40  obligations of the contractor relating to minority and women-owned busi-
    41  ness enterprise participation;
    42    (g) require that an agency or state-funded entity verify that minority
    43  and  women-owned  business  enterprises  listed  in a successful bid are
    44  actually participating to the extent listed in the project for which the
    45  bid was submitted;
    46    (h) provide for the collection of  statistical  data  by  each  agency
    47  concerning  actual  minority and women-owned business enterprise partic-
    48  ipation; [and]
    49    (i) require each agency to consult the most  current  disparity  study
    50  when  calculating  [agency-wide and contract specific] contract-specific
    51  participation goals pursuant to this article; and
    52    (j) provide for the periodic collection of reports  from  state-funded
    53  entities in such form and at such time as the director shall require.
    54    3.  Solely for the purpose of providing the opportunity for meaningful
    55  participation by  certified  businesses  in  the  performance  of  state
    56  contracts  as  provided  in  this section, state contracts shall include

        A. 7814                             8
 
     1  leases of real property by a state agency to a lessee where:  the  terms
     2  of  such  leases  provide for the construction, demolition, replacement,
     3  major repair or renovation of real property and improvements thereon  by
     4  such lessee; and the cost of such construction, demolition, replacement,
     5  major  repair  or  renovation  of real property and improvements thereon
     6  shall exceed the sum of one hundred thousand  dollars.  Reports  to  the
     7  director pursuant to section three hundred fifteen of this article shall
     8  include activities with respect to all such state contracts. Contracting
     9  agencies  shall  include or require to be included with respect to state
    10  contracts for the acquisition,  construction,  demolition,  replacement,
    11  major  repair  or  renovation of real property and improvements thereon,
    12  such provisions as may be necessary to effectuate the provisions of this
    13  section in every bid specification and state  contract,  including,  but
    14  not  limited  to:  (a)  provisions  requiring contractors to make a good
    15  faith effort to solicit active participation by  enterprises  identified
    16  in  the  directory  of  certified businesses provided to the contracting
    17  agency by the office; (b) requiring the parties to agree as a  condition
    18  of entering into such contract, to be bound by the provisions of section
    19  three  hundred sixteen of this article; and (c) requiring the contractor
    20  to include the provisions set forth in paragraphs (a) and  (b)  of  this
    21  subdivision in every subcontract in a manner that the provisions will be
    22  binding  upon  each  subcontractor  as  to  work in connection with such
    23  contract. Provided, however, that no such provisions  shall  be  binding
    24  upon  contractors  or  subcontractors  in the performance of work or the
    25  provision of services that are unrelated, separate or distinct from  the
    26  state  contract  as  expressed by its terms, and nothing in this section
    27  shall authorize the director or any contracting  agency  to  impose  any
    28  requirement  on  a  contractor or subcontractor except with respect to a
    29  state contract.
    30    4. In the implementation of this section, the contracting agency shall
    31  (a) consult the findings contained within the disparity study evidencing
    32  relevant industry specific  availability  of  certified  businesses  and
    33  disparities  in  the  utilization of minority and women-owned businesses
    34  relative to their availability;
    35    (b) implement a program that will enable the agency to  evaluate  each
    36  contract  to  determine  the  [appropriateness  of the] appropriate goal
    37  pursuant to subdivision one of this section for participation by minori-
    38  ty-owned business enterprises and women-owned business enterprises;
    39    (c) consider  where  practicable,  the  severability  of  construction
    40  projects and other bundled contracts; and
    41    (d)  consider  compliance  with  the  requirements  of any federal law
    42  concerning opportunities for minority and  women-owned  business  enter-
    43  prises  which  effectuates  the purpose of this section. The contracting
    44  agency shall determine whether the imposition of the requirements of any
    45  such law duplicate or conflict with the provisions hereof  and  if  such
    46  duplication  or  conflict exists, the contracting agency shall waive the
    47  applicability of this section to  the  extent  of  such  duplication  or
    48  conflict.
    49    5. (a) Contracting agencies shall administer the rules and regulations
    50  promulgated by the director in a good faith effort to [meet] achieve the
    51  maximum  feasible portion of the agency's goals adopted pursuant to this
    52  article and the regulations of the director. Such rules and regulations:
    53  shall require a contractor to submit a utilization plan after  bids  are
    54  opened,  when  bids  are  required,  but  prior  to the award of a state
    55  contract; shall require the contracting agency to review the utilization
    56  plan submitted by the contractor and to post the  utilization  plan  and

        A. 7814                             9
 
     1  any  waivers  of  compliance  issued pursuant to subdivision six of this
     2  section on the website of the contracting  agency  within  a  reasonable
     3  period  of  time  as  established  by  the  director;  shall require the
     4  contracting  agency  to notify the contractor in writing within a period
     5  of time specified by the director as to any  deficiencies  contained  in
     6  the contractor's utilization plan; shall require remedy thereof within a
     7  period  of  time specified by the director; shall require the contractor
     8  to submit periodic compliance reports  relating  to  the  operation  and
     9  implementation  of  any  utilization plan; shall not allow any automatic
    10  waivers but shall allow a contractor to apply for  a  partial  or  total
    11  waiver of the minority and women-owned business enterprise participation
    12  requirements  pursuant  to  subdivisions  six and seven of this section;
    13  shall allow a contractor to file a complaint with the director  pursuant
    14  to  subdivision  eight of this section in the event a contracting agency
    15  has failed or refused to issue a waiver of the minority and  women-owned
    16  business  enterprise  participation  requirements  or  has  denied  such
    17  request for a waiver; and shall allow a contracting  agency  to  file  a
    18  complaint with the director pursuant to subdivision nine of this section
    19  in  the  event  a contractor is failing or has failed to comply with the
    20  minority and women-owned business enterprise participation  requirements
    21  set forth in the state contract where no waiver has been granted.
    22    (b) The rules and regulations promulgated pursuant to this subdivision
    23  regarding  a  utilization plan shall provide that where enterprises have
    24  been identified within a utilization plan, a contractor  shall  attempt,
    25  in  good  faith, to utilize such enterprise at least to the extent indi-
    26  cated. A contracting agency may require a contractor to indicate, within
    27  a utilization plan, what measures and procedures he or  she  intends  to
    28  take to comply with the provisions of this article, but may not require,
    29  as  a  condition  of  award  of,  or  compliance with, a contract that a
    30  contractor  utilize  a  particular  enterprise  in  performance  of  the
    31  contract.
    32    (c) Without limiting other grounds for the disqualification of bids or
    33  proposals  on  the basis of non-responsibility, a contracting agency may
    34  disqualify the bid or proposal of a contractor as being  non-responsible
    35  for  failure  to  remedy notified deficiencies contained in the contrac-
    36  tor's utilization plan within a period of time specified in  regulations
    37  promulgated  by  the director after receiving notification of such defi-
    38  ciencies from the contracting agency. Where failure to remedy any  noti-
    39  fied  deficiency  in  the utilization plan is a ground for disqualifica-
    40  tion, that issue and all other grounds  for  disqualification  shall  be
    41  stated in writing by the contracting agency. Where the contracting agen-
    42  cy states that a failure to remedy any notified deficiency in the utili-
    43  zation  plan  is  a  ground for disqualification the contractor shall be
    44  entitled to an  administrative  hearing,  on  a  record,  involving  all
    45  grounds  stated  by  the  contracting  agency.  Such  hearing  shall  be
    46  conducted by the appropriate authority  of  the  contracting  agency  to
    47  review  the  determination  of  disqualification. A final administrative
    48  determination made following such  hearing  shall  be  reviewable  in  a
    49  proceeding  commenced  under article seventy-eight of the civil practice
    50  law and rules, provided that such proceeding is commenced within  thirty
    51  days  of  the  notice  given  by certified mail return receipt requested
    52  rendering such final administrative determination. Such proceeding shall
    53  be commenced in the supreme court, appellate division, third  department
    54  and  such  proceeding  shall  be  preferred  over all other civil causes
    55  except election causes, and shall be heard and determined in  preference
    56  to  all  other  civil business pending therein, except election matters,

        A. 7814                            10
 
     1  irrespective of position on the calendar. Appeals taken to the court  of
     2  appeals  of  the  state of New York shall be subject to the same prefer-
     3  ence.
     4    6.  (a)  Where it appears that a contractor cannot, after a good faith
     5  effort, comply with the minority  and  women-owned  business  enterprise
     6  participation  requirements  set forth in a particular state contract, a
     7  contractor may file a written application with  the  contracting  agency
     8  requesting  a partial or total waiver of such requirements setting forth
     9  the reasons for such contractor's inability to meet any or  all  of  the
    10  participation  requirements  together with an explanation of the efforts
    11  undertaken by the contractor to obtain the required minority and  women-
    12  owned  business enterprise participation. In implementing the provisions
    13  of this section, the contracting agency shall consider  the  number  and
    14  types  of minority and women-owned business enterprises [located] avail-
    15  able to provide goods or services required under  the  contract  in  the
    16  region  in which the state contract is to be performed, the total dollar
    17  value of the state contract, the scope of work to be performed  and  the
    18  project size and term. If, based on such considerations, the contracting
    19  agency  determines there is not a reasonable availability of contractors
    20  on the list of certified business to furnish services for  the  project,
    21  it  shall issue a waiver of compliance to the contractor. In making such
    22  determination, the contracting agency shall first  consider  the  avail-
    23  ability  of  other  business enterprises located in the region and shall
    24  thereafter consider the financial ability of  minority  and  women-owned
    25  businesses  located  outside  the  region in which the contract is to be
    26  performed to perform the state contract.
    27    (b) Within thirty days of the issuance of a partial or total waiver of
    28  compliance as  provided  in  paragraph  (a)  of  this  subdivision,  the
    29  contracting agency shall:
    30    (i) report the issuance of the waiver to the director; and
    31    (ii)  publish  on  the  contracting  agency's website: (A) information
    32  identifying the contract, including the value of the contract;  (B)  the
    33  name of the contractor receiving the waiver; (C) the date of the waiver;
    34  (D)  whether  the  waiver  was  a  total  or partial waiver; and (E) the
    35  specific contract provisions to which the waiver applies.
    36    7. For purposes of determining a contractor's  good  faith  effort  to
    37  comply  with  the  requirements  of  this section or to be entitled to a
    38  waiver therefrom the contracting agency shall consider:
    39    (a) whether the  contractor  has  advertised  in  general  circulation
    40  media,  trade association publications, and minority-focus and women-fo-
    41  cus media and, in such event, (i) whether or not certified  minority  or
    42  women-owned  businesses  which  have  been  solicited  by the contractor
    43  exhibited interest in submitting proposals for a particular  project  by
    44  attending  or having attended a pre-bid conference, if any, scheduled by
    45  the state agency awarding the state contract with certified minority and
    46  women-owned business enterprises; and
    47    (ii) whether certified businesses which have  been  solicited  by  the
    48  contractor have responded in a timely fashion to the contractor's solic-
    49  itations  for timely competitive bid quotations prior to the contracting
    50  agency's bid date; and
    51    (b) whether there has been written notification to appropriate  certi-
    52  fied  businesses  that  appear  in the directory of certified businesses
    53  prepared pursuant to paragraph (f) of subdivision three of section three
    54  hundred eleven of this article; and

        A. 7814                            11
 
     1    (c) whether the contractor can reasonably structure the amount of work
     2  to be performed under subcontracts in order to increase  the  likelihood
     3  of participation by certified businesses.
     4    8.  In the event that a contracting agency fails or refuses to issue a
     5  waiver to a contractor as requested within twenty days after having made
     6  application therefor pursuant to subdivision six of this section  or  if
     7  the contracting agency denies such application, in whole or in part, the
     8  contractor  may  file  a complaint with the director pursuant to section
     9  three hundred sixteen of  this  article  setting  forth  the  facts  and
    10  circumstances  giving rise to the contractor's complaint together with a
    11  demand for relief. The contractor shall serve a copy of  such  complaint
    12  upon  the  contracting  agency by personal service or by certified mail,
    13  return receipt requested. The contracting agency shall  be  afforded  an
    14  opportunity to respond to such complaint in writing.
    15    9.  If,  after  the  review of a contractor's minority and women owned
    16  business utilization plan or review of a periodic compliance report  and
    17  after  such  contractor has been afforded an opportunity to respond to a
    18  notice of deficiency issued by  the  contracting  agency  in  connection
    19  therewith, it appears that a contractor is failing or refusing to comply
    20  with the minority and women-owned business participation requirements as
    21  set  forth  in the state contract and where no waiver from such require-
    22  ments has been granted,  the  contracting  agency  may  file  a  written
    23  complaint with the director pursuant to section three hundred sixteen of
    24  this  article  setting  forth the facts and circumstances giving rise to
    25  the contracting agency's complaint together with a  demand  for  relief.
    26  The  contracting  agency  shall  serve a copy of such complaint upon the
    27  contractor by personal service or  by  certified  mail,  return  receipt
    28  requested. The contractor shall be afforded an opportunity to respond to
    29  such complaint in writing.
    30    §  6. Section 314 of the executive law, as added by chapter 261 of the
    31  laws of 1988, subdivision 2-a as amended by chapter 175 of the  laws  of
    32  2010,  subdivision  2-b  as  added  by  chapter 409 of the laws of 2018,
    33  subdivision 4 as amended and subdivision 5 as added by  chapter  399  of
    34  the laws of 2014, is amended to read as follows:
    35    § 314. Statewide  certification program. 1. The director shall promul-
    36  gate rules and regulations providing for the establishment of  a  state-
    37  wide certification program including rules and regulations governing the
    38  approval,  denial  or  revocation of any such certification.  Such rules
    39  and regulations shall include, but not be limited to,  such  matters  as
    40  may  be  required  to  ensure that the established procedures thereunder
    41  shall at least be in compliance with the  code  of  fair  procedure  set
    42  forth in section seventy-three of the civil rights law.
    43    2.  For  the purposes of this article, the office shall be responsible
    44  for verifying businesses as being owned,  operated,  and  controlled  by
    45  minority  group  members or women and for certifying such verified busi-
    46  nesses. The director shall prepare a directory of  certified  businesses
    47  for  use  by  contracting  agencies  and contractors in carrying out the
    48  provisions of this article. The director shall periodically  update  the
    49  directory.
    50    2-a.  (a) The director shall establish a procedure enabling the office
    51  to accept New York municipal corporation certification verification  for
    52  minority  and  women-owned  business  enterprise  applicants  in lieu of
    53  requiring the applicant to complete the state certification process. The
    54  director shall promulgate rules and regulations to  set  forth  criteria
    55  for  the acceptance of municipal corporation certification. All eligible

        A. 7814                            12

     1  municipal corporation certifications shall require business  enterprises
     2  seeking certification to meet the following standards:
     3    (i)  have  at  least  fifty-one  percent  ownership by a minority or a
     4  women-owned enterprise and be owned by United States citizens or  perma-
     5  nent resident aliens;
     6    (ii)  be  an  enterprise  in which the minority and/or women-ownership
     7  interest is real, substantial and continuing;
     8    (iii) be an enterprise in which the  minority  and/or  women-ownership
     9  has  and exercises the authority to control independently the day-to-day
    10  business decisions of the enterprise;
    11    (iv) be an enterprise authorized to do business in this state;
    12    (v) be subject to a physical site inspection to verify  the  fifty-one
    13  percent ownership requirement; and
    14    (vi)  [be  owned  by  an  individual  or individuals, whose ownership,
    15  control and operation are relied upon for certification, with a personal
    16  net worth that does not  exceed  three  million  five  hundred  thousand
    17  dollars,  as  adjusted  annually for inflation according to the consumer
    18  price index; and
    19    (vii)] be an enterprise that is a small business pursuant to  subdivi-
    20  sion twenty of section three hundred ten of this article.
    21    (b)  The director shall work with all municipal corporations that have
    22  a municipal minority and  women-owned  business  enterprise  program  to
    23  develop  standards  to  accept state certification to meet the municipal
    24  corporation minority and women-owned business  enterprise  certification
    25  standards.
    26    (c)  The director shall establish a procedure enabling the division to
    27  accept federal certification verification for minority  and  women-owned
    28  business  enterprise  applicants,  provided  said standards comport with
    29  those required by the state minority and women-owned  business  program,
    30  in  lieu  of requiring the applicant to complete the state certification
    31  process. The director shall promulgate  rules  and  regulations  to  set
    32  forth criteria for the acceptance of federal certification.
    33    2-b.  The  director  shall establish a procedure enabling an applicant
    34  who was a military service member to prove his or her race or ethnicity,
    35  date of birth, place of birth and verification of address  for  purposes
    36  of  certification  of the applicant's business as a minority-owned busi-
    37  ness by submission of the DD Form 214 issued to  the  applicant  by  the
    38  United  States  department  of defense upon such applicant's retirement,
    39  separation, or discharge from active duty in the  armed  forces  of  the
    40  United  States,  provided  the DD Form 214 contains such information, in
    41  lieu of requiring the applicant to otherwise prove his or  her  race  or
    42  ethnicity.  The  director  shall promulgate rules and regulations to set
    43  forth criteria for the acceptance of the DD Form 214 by the office.
    44    3. Following application for certification pursuant to  this  section,
    45  the  director  shall  provide  the  applicant with written notice of the
    46  status of the application, including notice of any outstanding deficien-
    47  cies, within [thirty] fifteen days.    Within  [sixty]  thirty  days  of
    48  submission  of a final completed application, the director shall provide
    49  the applicant with written notice  of  a  determination  by  the  office
    50  approving  or denying such certification and, in the event of a denial a
    51  statement setting forth the reasons for such  denial.  Upon  a  determi-
    52  nation  denying  or  revoking certification, the business enterprise for
    53  which certification has been so denied or revoked  shall,  upon  written
    54  request  made within thirty days from receipt of notice of such determi-
    55  nation, be entitled to a hearing before an independent  hearing  officer
    56  designated for such purpose by the director. In the event that a request

        A. 7814                            13
 
     1  for  a  hearing is not made within such thirty day period, such determi-
     2  nation shall be deemed to be final.   The  independent  hearing  officer
     3  shall conduct a hearing and upon the conclusion of such hearing, issue a
     4  written recommendation to the director to affirm, reverse or modify such
     5  determination  of  the  director.  Such  written recommendation shall be
     6  issued to the parties.  The director, within thirty days, by order, must
     7  accept, reject or modify such recommendation of the hearing officer  and
     8  set  forth  in  writing the reasons therefor. The director shall serve a
     9  copy of such order and reasons therefor upon the business enterprise  by
    10  personal  service  or  by  certified  mail return receipt requested. The
    11  order of the director shall be subject to  review  pursuant  to  article
    12  seventy-eight of the civil practice law and rules.
    13    4.  The  director  may,  after performing an availability analysis and
    14  upon a finding that industry-specific factors coupled with personal  net
    15  worth  or  small business eligibility requirements pursuant to [subdivi-
    16  sions nineteen and] subdivision twenty of section three hundred  ten  of
    17  this  article,  respectively,  have  led to the significant exclusion of
    18  businesses owned by minority group members or women  in  that  industry,
    19  grant  provisional  MWBE  certification  status  to applicants from that
    20  designated industry,  provided,  however,  that  all  other  eligibility
    21  requirements  pursuant  to subdivision seven or fifteen of section three
    22  hundred ten of this article, as applicable, are  satisfied.  Any  indus-
    23  try-based determination made under this section by the director shall be
    24  made  widely  available  to  the  public  and  posted  on the division's
    25  website.
    26    5. With the exception of provisional MWBE certification,  as  provided
    27  for  in  subdivision  twenty-three  of section three hundred ten of this
    28  article, all minority and women-owned business enterprise certifications
    29  shall be valid for a period of [three] five years.  The  division  shall
    30  publish  online  a  clear  timeline  of  process with the number of days
    31  expected to pass until certification. However, firms must  recertify  if
    32  they  buy  out  another firm. The online certification platform shall be
    33  designed so that the certification timeline does  not  begin  until  all
    34  documents are submitted.
    35    §  7.  Subdivisions 4, 5 and 7 of section 315 of the executive law, as
    36  added by chapter 175 of the  laws  of  2010,  are  amended  to  read  as
    37  follows:
    38    4.  The  division  of  minority and women's business development shall
    39  issue an annual report which: (a) summarizes  the  report  submitted  by
    40  each  contracting  agency pursuant to subdivision three of this section;
    41  (b) contains such comparative or other information as the director deems
    42  appropriate, including but not  limited  to  goals  compared  to  actual
    43  participation  of minority and women-owned business enterprises in state
    44  contracting, to evaluate the effectiveness of the activities  undertaken
    45  by  each  such  contracting agency to promote increased participation by
    46  certified minority or  women-owned  businesses  with  respect  to  state
    47  contracts and subcontracts; (c) contains a summary of all waivers of the
    48  requirements  of  subdivisions  six  and  seven of section three hundred
    49  thirteen of this article allowed by each contracting agency  during  the
    50  period  covered  by  the report, including a description of the basis of
    51  the waiver request and the contracting agency's rationale  for  granting
    52  any such waiver; (d) describes any efforts to create a database or other
    53  information storage and retrieval system containing information relevant
    54  to contracting with minority and women-owned business enterprises; [and]
    55  (e)  contains a summary of: (i) all determinations of violations of this
    56  article by a contractor or a contracting agency made during  the  period

        A. 7814                            14
 
     1  covered by the annual report pursuant to section three hundred sixteen-a
     2  of  this  article; and (ii) the penalties or sanctions, if any, assessed
     3  in connection with such determinations and the rationale for such penal-
     4  ties  or sanctions. Copies of the annual report shall be provided to the
     5  commissioner, the governor, the comptroller, the temporary president  of
     6  the  senate,  the  speaker  of  the assembly, the minority leader of the
     7  senate, the minority leader of the assembly and shall also be made wide-
     8  ly available to the public via, among other  things,  publication  on  a
     9  website  maintained  by  the  division  of minority and women's business
    10  development.
    11    5. Each agency shall include in its annual report to the governor  and
    12  legislature pursuant to section one hundred sixty-four of [the executive
    13  law] this chapter its annual goals for contracts with minority-owned and
    14  women-owned  business enterprises, the number of actual contracts issued
    15  to minority-owned and women-owned business enterprises; and a summary of
    16  all waivers of the requirements of subdivisions six and seven of section
    17  three hundred thirteen of this article allowed by the  reporting  agency
    18  during  the  preceding year, including a description of the basis of the
    19  waiver request and the rationale for granting such waiver.  Each  agency
    20  shall  also  include  in  such  annual report whether or not it has been
    21  required to prepare a remedial plan, and, if so, the plan and the extent
    22  to which the agency has complied with each element of the plan.
    23    7. If it is determined by the director that any agency has  failed  to
    24  act  in  good  faith  to implement the remedial action plan, pursuant to
    25  subdivision six of this section within  one  year,  the  director  shall
    26  provide written notice of such a finding, which shall be publicly avail-
    27  able, and direct implementation of remedial actions to:
    28    (a) assure that sufficient and effective solicitation efforts to women
    29  and minority-owned business enterprises are being made by said agency;
    30    (b)  divide  contract  requirements,  when economically feasible, into
    31  quantities that will expand the participation  of  women  and  minority-
    32  owned business enterprises;
    33    (c) eliminate extended experience or capitalization requirements, when
    34  programmatically  and  economically  feasible,  that will expand partic-
    35  ipation by women and minority-owned business enterprises;
    36    (d) identify specific proposed contracts as particularly attractive or
    37  appropriate for  participation  by  women  and  minority-owned  business
    38  enterprises  with such identification to result from and be coupled with
    39  the efforts of paragraphs (a), (b), and (c) of this subdivision; and
    40    (e) upon a finding by the director that an agency has failed  to  take
    41  affirmative measures to implement the remedial plan and to follow any of
    42  the  remedial  actions  set forth by the director, and in the absence of
    43  any objective progress towards the agency's goals, require some  or  all
    44  of  the  agency's procurement, for a specified period of time, be placed
    45  under the direction and control of another agency  or  agencies,  unless
    46  such agency is a state funded entity.
    47    §  8.  Section  316-a of the executive law, as added by chapter 175 of
    48  the laws of 2010, is amended to read as follows:
    49    § 316-a. Prohibitions  in  contracts;  violations.  Every  contracting
    50  agency  shall  include  a  provision  in  its  state contracts expressly
    51  providing that any contractor who willfully and intentionally  fails  to
    52  comply  with  the minority and women-owned participation requirements of
    53  this article as set forth in such state contract shall be liable to  the
    54  contracting agency for liquidated or other appropriate damages and shall
    55  provide  for  other  appropriate  remedies  on account of such breach. A
    56  contracting agency that elects  to  proceed  against  a  contractor  for

        A. 7814                            15
 
     1  breach  of  contract as provided in this section shall be precluded from
     2  seeking enforcement pursuant to section three hundred  sixteen  of  this
     3  article;  provided  however, that the contracting agency shall include a
     4  summary  of  all enforcement actions undertaken pursuant to this section
     5  in its annual  report  submitted  pursuant  to  [subdivision  three  of]
     6  section three hundred fifteen of this article.
     7    § 9. Subdivision 6 of section 163 of the state finance law, as amended
     8  by chapter 569 of the laws of 2015, is amended to read as follows:
     9    6. Discretionary buying thresholds. Pursuant to guidelines established
    10  by the state procurement council: the commissioner may purchase services
    11  and  commodities in an amount not exceeding eighty-five thousand dollars
    12  without a  formal  competitive  process;  state  agencies  may  purchase
    13  services  and  commodities  in  an  amount  not exceeding fifty thousand
    14  dollars without a formal competitive process;  and  state  agencies  may
    15  purchase  commodities  or services from small business concerns or those
    16  certified pursuant to articles fifteen-A and seventeen-B of  the  execu-
    17  tive  law,  or commodities or technology that are recycled or remanufac-
    18  tured, or commodities that are food, including milk and  milk  products,
    19  grown,  produced or harvested in New York state in an amount not exceed-
    20  ing [two] four hundred thousand dollars  without  a  formal  competitive
    21  process.
    22    §  10.  Subparagraph  (i) of paragraph (b) of subdivision 3 of section
    23  2879 of the public authorities law, as amended by  chapter  174  of  the
    24  laws of 2010, is amended to read as follows:
    25    (i)  for the selection of such contractors on a competitive basis, and
    26  provisions relating to the circumstances under which the  board  may  by
    27  resolution  waive  competition,  including,  notwithstanding  any  other
    28  provision of  law  requiring  competition,  the  purchase  of  goods  or
    29  services  from small business concerns or those certified as minority or
    30  women-owned business enterprises, or goods or technology that are  recy-
    31  cled  or  remanufactured,  in an amount not to exceed [two hundred thou-
    32  sand] one million dollars without a formal competitive process;
    33    § 11.  The opening paragraph of subdivision  (h)  of  section  121  of
    34  chapter  261  of  the  laws  of 1988, amending the state finance law and
    35  other laws relating to the New York state infrastructure trust fund,  as
    36  amended  by  section 1 of part OOO of chapter 59 of the laws of 2018, is
    37  amended to read as follows:
    38    The provisions of sections sixty-two through  sixty-six  of  this  act
    39  shall  expire and be deemed repealed on December thirty-first, two thou-
    40  sand [nineteen] twenty-four, except that:
    41    § 12.  The executive law is amended by adding a new article 28 to read
    42  as follows:
 
    43                                 ARTICLE 28
    44                         WORKFORCE DIVERSITY PROGRAM
    45  Section 821. Definitions.
    46          822. Workforce participation goals.
    47          823. Reporting.
    48          824. Enforcement.
    49          825. Powers and responsibilities of the division.
    50          826. Severability.
    51    § 821. Definitions. As used in this article, the following terms shall
    52  have the following meanings:
    53    1. "Contractor" shall  mean  an  individual,  a  business  enterprise,
    54  including  a  sole  proprietorship, a partnership, a corporation, a not-
    55  for-profit corporation, or any other party to a  state  contract,  or  a

        A. 7814                            16
 
     1  bidder  in  conjunction with the award of a state contract or a proposed
     2  party to a state contract.
     3    2. "Department" shall mean the department of labor.
     4    3.  "Director" shall mean the director of the division of minority and
     5  women's business development.
     6    4. "Disparity study" shall mean the most recent study  of  disparities
     7  between  the  utilization  of  minority  group  members and women in the
     8  performance of state contracts and the availability  of  minority  group
     9  members and women to perform such work by the director pursuant to arti-
    10  cle fifteen-A of this chapter.
    11    5.  "Division"  shall  mean  the  department of economic development's
    12  division of minority and women's business development.
    13    6. "List of non-compliant contractors" shall mean a list  of  contrac-
    14  tors and subcontractors, maintained by the division and published on the
    15  website  of the division, that are ineligible to participate as contrac-
    16  tors or subcontractors in the performance of state contracts for a  term
    17  determined by the director.
    18    7.  "Minority  group  member"  shall  mean  a United States citizen or
    19  permanent resident alien who is and can demonstrate membership in one of
    20  the following groups:
    21    (a) Black persons having origins in any of the  Black  African  racial
    22  groups;
    23    (b)  Hispanic/Latino  persons  of  Mexican,  Puerto  Rican, Dominican,
    24  Cuban, Central or South American of either Indian  or  Hispanic  origin,
    25  regardless of race;
    26    (c) Native American or Alaskan native persons having origins in any of
    27  the original peoples of North America;
    28    (d)  Asian  and  Pacific Islander persons having origins in any of the
    29  Far East countries, South East Asia,  the  Indian  subcontinent  or  the
    30  Pacific Islands.
    31    8. "Non-compliant contractor" shall mean a contractor or subcontractor
    32  that  has  failed  to  make  a  good  faith effort to meet the workforce
    33  participation goal established by a state agency on  a  state  contract,
    34  and  has  been  listed  by  the  division  on  its list of non-compliant
    35  contractors.
    36    9. "State agency" shall mean (a)(i) any state department, or (ii)  any
    37  division,  board, commission or bureau of any state department, or (iii)
    38  the state university of New York and the city university  of  New  York,
    39  including  all their constituent units except community colleges and the
    40  independent institutions operating statutory  or  contract  colleges  on
    41  behalf  of  the  state, or (iv) a board, a majority of whose members are
    42  appointed by the governor or who serve by virtue of being state officers
    43  or employees as defined in subparagraph (i), (ii) or (iii) of  paragraph
    44  (i)  of  subdivision one of section seventy-three of the public officers
    45  law.
    46    (b) a "state authority," as defined in subdivision one of section  two
    47  of the public authorities law, and the following:
    48  Albany County Airport Authority;
    49  Albany Port District Commission;
    50  Alfred, Almond, Hornellsville Sewer Authority;
    51  Battery Park City Authority;
    52  Cayuga County Water and Sewer Authority;
    53  (Nelson A. Rockefeller) Empire State Plaza Performing Arts Center
    54  Corporation;
    55  Industrial Exhibit Authority;
    56  Livingston County Water and Sewer Authority;

        A. 7814                            17
 
     1  Long Island Power Authority;
     2  Long Island Rail Road;
     3  Long Island Market Authority;
     4  Manhattan and Bronx Surface Transit Operating Authority;
     5  Metro-North Commuter Railroad;
     6  Metropolitan Suburban Bus Authority;
     7  Metropolitan Transportation Authority;
     8  Natural Heritage Trust;
     9  New York City Transit Authority;
    10  New York Convention Center Operating Corporation;
    11  New York State Bridge Authority;
    12  New York State Olympic Regional Development Authority;
    13  New York State Thruway Authority;
    14  Niagara Falls Public Water Authority;
    15  Niagara Falls Water Board;
    16  Port of Oswego Authority;
    17  Power Authority of the State of New York;
    18  Roosevelt Island Operating Corporation;
    19  Schenectady Metroplex Development Authority;
    20  State Insurance Fund;
    21  Staten Island Rapid Transit Operating Authority;
    22  State University Construction Fund;
    23  Syracuse Regional Airport Authority;
    24  Triborough Bridge and Tunnel Authority;
    25  Upper Mohawk valley regional water board;
    26  Upper Mohawk valley regional water finance authority;
    27  Upper Mohawk valley memorial auditorium authority;
    28  Urban Development Corporation and its subsidiary corporations.
    29    (c)  the  following only to the extent of state contracts entered into
    30  for its own account or for the benefit of a state agency as  defined  in
    31  paragraph (a) or (b) of this subdivision:
    32  Dormitory Authority of the State of New York;
    33  Facilities Development Corporation;
    34  New York State Energy Research and Development Authority;
    35  New York State Science and Technology Foundation.
    36    10.  "State  contract" shall mean: (a) a written agreement or purchase
    37  order instrument, providing for a total expenditure in excess  of  twen-
    38  ty-five  thousand dollars, whereby a state agency is committed to expend
    39  or does expend or grant funds in return for  labor,  services  including
    40  but  not  limited  to  legal, financial and other professional services,
    41  supplies, equipment, materials or any combination of the  foregoing,  to
    42  be  performed  on  behalf of, for, or rendered or furnished to the state
    43  agency; (b) a written  agreement  in  excess  of  one  hundred  thousand
    44  dollars  whereby a state agency is committed to expend or does expend or
    45  grant funds for the acquisition, construction, demolition,  replacement,
    46  major  repair  or  renovation of real property and improvements thereon;
    47  and (c) a written agreement in excess of one  hundred  thousand  dollars
    48  whereby  the  owner  of a state assisted housing project is committed to
    49  expend or does expend funds for the acquisition,  construction,  demoli-
    50  tion,  replacement,  major  repair  or  renovation  of real property and
    51  improvements thereon for such project.
    52    11. "Subcontractor" shall mean any individual or  business  enterprise
    53  that provides goods or services to any individual or business for use in
    54  the  performance  of  a  state  contract,  whether  or not such goods or
    55  services are provided to a party to a state contract.

        A. 7814                            18
 
     1    § 822. Workforce participation goals.  1. The director,  in  consulta-
     2  tion  with  the  department,  shall  develop  aspirational goals for the
     3  utilization of minority group members and women in  construction  trade,
     4  profession,  and occupation.   The minimum for each goal shall be thirty
     5  percent.
     6    (a)  Aspirational  goals for the utilization of minority group members
     7  and women must set forth the expected participation  of  minority  group
     8  members  and  women  in each construction trade, profession, and occupa-
     9  tion, and shall be expressed as a percentage of the total hours of  work
    10  to  be  performed by each trade, profession, and occupation based on the
    11  availability of minority group members  and  women  within  each  trade,
    12  profession, and occupation.
    13    (i) The aspirational goals shall set forth separate levels of expected
    14  participation  by  men and women for each minority group, and for Cauca-
    15  sian women, in each construction trade, profession, and occupation.
    16    (ii) Aspirational goals for the  expected  participation  of  minority
    17  group  members  and  women  shall  be established for each county of the
    18  state. The director may establish aspirational goals  for  the  expected
    19  participation  of  minority  group  members and women for municipalities
    20  where the director deems feasible and appropriate.
    21    (iii) The director shall,  in  establishing  the  aspirational  goals,
    22  consider  the  findings of the most recent disparity study and any rele-
    23  vant data published by the United States Census Bureau.
    24    (b) The director shall update the aspirational  goals  on  a  periodic
    25  basis, no less than annually.
    26    2.  State  agencies  shall,  for each invitation for bids, request for
    27  proposals, or other solicitation that will result  in  the  award  of  a
    28  state contract, set forth the expected degree of workforce participation
    29  by minority group members and women.
    30    (a)  Each  workforce  participation goal established by a state agency
    31  shall set forth the expected level of participation  by  minority  group
    32  members  and  women  in  the  performance of each trade, profession, and
    33  occupation required in the performance of the contract.
    34    (b) Goals for the participation of minority group  members  and  women
    35  shall  set forth separate goals for each of the following groups in each
    36  trade, profession, and occupation:
    37    (i) Black men;
    38    (ii) Black women;
    39    (iii) Hispanic/Latino men;
    40    (iv) Hispanic/Latino women;
    41    (v) Native American men;
    42    (vi) Native American women;
    43    (vii) Asian men;
    44    (viii) Asian women;
    45    (ix) Caucasian women.
    46    (c) In establishing  workforce  participation  goals,  state  agencies
    47  shall consider factors including, but not limited to:
    48    (i) the findings of the most recent disparity study;
    49    (ii)  any  relevant data published by the United States Census Bureau;
    50  and
    51    (iii) if applicable, any aspirational goal established  by  the  divi-
    52  sion.
    53    (d)  In  any case where a state agency establishes a workforce partic-
    54  ipation goal on an invitation for bids, request for proposals, or  other
    55  solicitation  that  will  result  in  the  award of a state contract for
    56  construction that deviates from the aspirational goal  for  construction

        A. 7814                            19
 
     1  work  in the county or municipality in which the work will be performed,
     2  the state agency shall document numerical  evidence  demonstrating  that
     3  the  application of the aspirational goal would not be practical, feasi-
     4  ble, or appropriate.
     5    3.  Every contractor responding to an invitation for bids, request for
     6  proposals, or other solicitation that will result  in  the  award  of  a
     7  state contract subject to workforce participation goals pursuant to this
     8  section  shall  agree  to make a good faith effort to achieve such work-
     9  force participation goal or request a waiver of such goal.
    10    (a) A contractor that certifies that it will make a good faith  effort
    11  to  achieve  a  workforce  participation  goal  shall  provide  with its
    12  response to the applicable invitation for bids, request  for  proposals,
    13  or other solicitation:
    14    (i) A certification stating that the contractor will make a good faith
    15  effort  to  achieve the applicable workforce participation goal and will
    16  contractually require any subcontractors to the  contractor  to  make  a
    17  good faith effort to achieve the applicable workforce participation goal
    18  in  any  subcontracted  work, which certification shall acknowledge that
    19  failure by the contractor or any of its subcontractors to  make  a  good
    20  faith  effort to achieve the applicable workforce participation goal may
    21  result in a determination by  the  contracting  state  agency  that  the
    22  contractor or its subcontractor is a non-compliant contractor;
    23    (ii)  The level of anticipated participation by minority group members
    24  and women as employees to the contractor, or, if the  state  agency  has
    25  specifically  indicated  that such documentation is not required as part
    26  of the response to the invitation for bids, request  for  proposals,  or
    27  other solicitation, a date certain for the submission of such documenta-
    28  tion after the award of the state contract;
    29    (iii)  A list of all subcontractors anticipated to perform work on the
    30  state contract and the level of anticipated  participation  by  minority
    31  group  members  and women as employees to each subcontractor, or, if the
    32  state agency has specifically indicated that such documentation  is  not
    33  required as part of the response to the invitation for bids, request for
    34  proposals,  or  other solicitation, a date certain for the submission of
    35  such documentation after the award of the state contract; and
    36    (iv) Such other information as  the  contracting  state  agency  shall
    37  require.
    38    (b)  A  contractor that requests a waiver of a workforce participation
    39  goal shall provide with its response to the  applicable  invitation  for
    40  bids, request for proposals, or other solicitation:
    41    (i)  Numerical evidence setting forth why the achievement of the work-
    42  force participation goal is not practical, feasible, or  appropriate  in
    43  light  of  the  trades, professions, and occupations required to perform
    44  the work of the state contract;
    45    (ii) Documentation of the contractor's efforts,  and  any  efforts  by
    46  subcontractors  to  the contractor, to promote the inclusion of minority
    47  group members and women in trades, professions, and occupations required
    48  in the performance of the state contract;
    49    (iii) The maximum feasible level of participation  by  minority  group
    50  members  and  women  in each of the trades, professions, and occupations
    51  required in the performance of the work of the state contract;
    52    (iv) The level of anticipated participation by minority group  members
    53  and women as employees to the contractor;
    54    (v)  A  list  of all subcontractors anticipated to perform work on the
    55  state contract and the level of anticipated  participation  by  minority
    56  group members and women as employees to each subcontractor; and

        A. 7814                            20
 
     1    (vi)  Any  other relevant information evidencing that the contractor's
     2  achievement of the workforce participation goal would not be  practical,
     3  feasible, or appropriate.
     4    4.  A  state  agency  shall not award a state contract to a contractor
     5  unless the contractor has (i) certified that it will make a  good  faith
     6  effort  to  achieve  the  applicable  workforce  participation  goal and
     7  provided documentation of the workforce anticipated to perform the  work
     8  of the state contract or (ii) submitted a waiver request which the state
     9  agency  deems  to reflect the maximum feasible participation of minority
    10  group members and women in each of the trades, professions, and  occupa-
    11  tions required in performance of the work of the state contract.
    12    (a)  In  the event that a contractor submits a certification or waiver
    13  request that is accepted by the state agency,  the  state  agency  shall
    14  establish  in  the state contract the expected level of participation by
    15  minority group members and women in each of the trades, professions, and
    16  occupations required in performance of the work of the  state  contract,
    17  require  that  the  contractor  make  good faith efforts to achieve such
    18  workforce participation goals, require that the contractor  require  any
    19  subcontractors  to  make  a  good faith effort to achieve the applicable
    20  workforce participation goal in any  subcontracted  work,  and  indicate
    21  that  the failure of the contractor or any of its subcontractors to make
    22  a good faith effort to achieve  the  workforce  participation  goal  may
    23  result  in  the contractor or subcontractor being deemed a non-compliant
    24  contractor.
    25    (b) In the event that a contractor fails to  submit  a  certification,
    26  waiver  request,  or any other information required by the state agency,
    27  or the state agency determines that a contractor's waiver  request  does
    28  not  demonstrate  that  the  applicable  workforce participation goal is
    29  impractical, unfeasible, or inappropriate, the state agency shall notify
    30  the contractor of the deficiency in writing and provide  the  contractor
    31  ten business days to remedy the noticed deficiency. A state agency shall
    32  reject  any bid or proposal of a contractor that fails to timely respond
    33  to a notice of deficiency or  to  provide  documentation  remedying  the
    34  deficiency to the satisfaction of the state agency.
    35    (i)  Where  failure to remedy any notified deficiency in the workforce
    36  utilization plan is a ground for disqualification, that  issue  and  all
    37  other  grounds  for  disqualification  shall be stated in writing by the
    38  contracting state agency. The contractor shall be entitled to an  admin-
    39  istrative  hearing,  on  a  record,  involving all grounds stated by the
    40  contracting state agency in its notice of the contractor's disqualifica-
    41  tion. Such hearing shall be conducted by  the  division  to  review  the
    42  determination  of  disqualification.  Contractors  required to submit to
    43  such hearing shall have an opportunity to be heard.  A final administra-
    44  tive determination made following such hearing shall be reviewable in  a
    45  proceeding  commenced  under article seventy-eight of the civil practice
    46  law and rules, provided that such proceeding  is  commenced  within  one
    47  hundred twenty days of the notice given by certified mail return receipt
    48  requested   rendering  such  final  administrative  determination.  Such
    49  proceeding shall be commenced in the supreme court and  such  proceeding
    50  shall  be  preferred over all other civil causes except election causes,
    51  and shall be heard and determined in preference to all other civil busi-
    52  ness pending therein, except election matters, irrespective of  position
    53  on  the  calendar. Appeals taken to the court of appeals of the state of
    54  New York shall be subject to the same preference.
    55    § 823. Reporting.   1. State contracts shall  require  contractors  to
    56  submit,  and to require any subcontractors to submit, to the contracting

        A. 7814                            21

     1  state agency reports documenting the hours worked by  employees  of  the
     2  contractor  and any subcontractors in the performance of the work of the
     3  state contract. Such reports shall be submitted no less frequently  than
     4  monthly for state contracts for construction and quarterly for all other
     5  state  contracts.  Such  reports  shall  identify  the  race, ethnicity,
     6  gender, and trade, profession, and occupation of each employee  perform-
     7  ing work on a state contract.
     8    2.  State  agencies  shall submit periodic reports to the director, or
     9  the designee of the director, concerning the participation  of  minority
    10  group members and women in state contracts let by such agencies and such
    11  state  agencies'  compliance  with  this  article. Such reports shall be
    12  submitted at such time, and include such information,  as  the  director
    13  shall  require in regulations. State agencies shall make available their
    14  facilities, books, and records for inspection, upon  reasonable  notice,
    15  by the director or the director's designee.
    16    3.  The department shall provide such assistance as the director shall
    17  require in carrying out the requirements of this section.
    18    § 824. Enforcement.  1. Where it appears  that  a  contractor  cannot,
    19  after  a  good  faith effort, meet the workforce participation goals set
    20  forth in a particular state contract, a contractor may  file  a  written
    21  application  with  the  contracting state agency requesting a partial or
    22  total waiver of such requirements. Such  request  shall  set  forth  the
    23  reasons  for  such  contractor's inability to meet the workforce partic-
    24  ipation goal, specifically describe the reasons for any deviations  from
    25  the  anticipated  workforce  participation set forth in the contractor's
    26  bid or proposal leading to the award of the state contract, and describe
    27  the efforts by the contractor and  any  subcontractors  to  achieve  the
    28  maximum  feasible  participation  of minority group members and women in
    29  the performance of the work of the state contract.  Where  the  contrac-
    30  tor's  inability  to achieve the workforce participation goal on a state
    31  contract is attributable to the failure of one or more subcontractors to
    32  make good faith efforts to achieve the maximum feasible participation of
    33  minority group members and women in the performance of the work  of  the
    34  state  contract,  the  contractor  shall  identify such subcontractor or
    35  subcontractors to the contracting state agency.
    36    2. A state agency shall grant a request  for  a  waiver  of  workforce
    37  participation goals on a state contract where:
    38    (a)  The  contractor  demonstrates that the contractor and its subcon-
    39  tractors made good faith efforts to achieve the workforce  participation
    40  goal on the state contract, and that insufficient minority group members
    41  or  women  were  available  in  the trades, professions, and occupations
    42  required to perform the work of the state contract; or,
    43    (b) The contractor contractually required each of  its  subcontractors
    44  to  make  a  good  faith  effort to achieve the maximum feasible partic-
    45  ipation of minority group members and women in the  performance  of  the
    46  subcontracted  work, periodically monitored such subcontractors' deploy-
    47  ment of minority group members and  women  in  the  performance  of  the
    48  subcontracted  work, provided notice to such subcontractors of any defi-
    49  ciencies in their deployment of minority group members and women in  the
    50  performance  of such subcontracted work, and could not achieve the work-
    51  force participation goal for one or more trades, professions, or occupa-
    52  tions without the good faith efforts of such subcontractors.
    53    3. Where a state agency denies a contractor's request for a waiver  of
    54  workforce participation goals pursuant to this section, the state agency
    55  may  recommend to the director and the department that the contractor be
    56  deemed a non-compliant contractor.

        A. 7814                            22
 
     1    4. Where a state agency grants a request for  a  waiver  of  workforce
     2  participation  goals  pursuant  to  this  section  based  on one or more
     3  subcontractors' failure to make good faith efforts to achieve the  maxi-
     4  mum  feasible  participation  of minority group members and women in the
     5  performance of the subcontracted work, the state agency may recommend to
     6  the  director and the department that the subcontractor be deemed a non-
     7  compliant contractor.
     8    5. Upon receipt of  a  recommendation  from  a  state  agency  that  a
     9  contractor or subcontractor should be deemed a non-compliant contractor,
    10  the  director  shall,  with the assistance of the department, review the
    11  facts and circumstances forming the  basis  of  the  recommendation  and
    12  issue a determination as to whether or not the contractor or subcontrac-
    13  tor should be deemed a non-compliant contractor and, if so, the duration
    14  of such status as a non-compliant contractor. Such status shall last for
    15  a  maximum  of  four years in duration. In determining the duration of a
    16  contractor's or subcontractor's status as  a  non-compliant  contractor,
    17  the director shall consider:
    18    (i) whether the contractor or subcontractor has previously been deemed
    19  a non-compliant contractor;
    20    (ii)  the  number of hours of expected participation by minority group
    21  members and women lost as a result of the  contractor's  or  subcontrac-
    22  tor's  failure  to  make  good  faith  efforts to include minority group
    23  members or women in the performance of one or more state contracts; and
    24    (iii) whether the contractor or subcontractor has offered  to  provide
    25  employment opportunities, training, or other remedial benefits to minor-
    26  ity  group  members or women in relevant trades, professions, or occupa-
    27  tions.
    28    6. A contractor or subcontractor deemed a non-compliant contractor  by
    29  the director may request an administrative hearing before an independent
    30  hearing  officer  to appeal the determination of the director. The deci-
    31  sion of the hearing officer shall be final and may only  be  vacated  or
    32  modified  as provided in article seventy-eight of the civil practice law
    33  and rules upon an application made within  the  time  provided  by  such
    34  article.
    35    7.  Upon a final determination that a contractor or subcontractor is a
    36  non-compliant contractor, the director  shall  list  the  contractor  or
    37  subcontractor  as  such  on  its  website  and indicate the term of such
    38  contractor's or subcontractor's status as a non-compliant contractor.  A
    39  non-compliant  contractor  shall  be  ineligible  to  participate  as  a
    40  contractor or subcontractor on any state contract.
    41    § 825. Powers and responsibilities of the division.   1. The  director
    42  shall  post  to  the website of the division on or before April first of
    43  each year the aspirational goals for the utilization of  minority  group
    44  members  and  women  in  construction required pursuant to section eight
    45  hundred twenty-two of this article.
    46    2. The director shall promulgate rules and regulations for the  imple-
    47  mentation of this article, including, but not limited to, procedures for
    48  the  submission  of  certifications  and  workforce utilization plans by
    49  contractors, criteria for granting waivers  of  workforce  participation
    50  goals,  and  the  contents of reports by state agencies concerning their
    51  implementation of the requirements of this article.
    52    3. The division shall, from  time  to  time,  review  the  facilities,
    53  books,  and records of state agencies to ascertain the accuracy of their
    54  reports and their compliance with the requirements of this article.  The
    55  department  shall  provide such assistance as the director shall require
    56  in carrying out the requirements of this section.

        A. 7814                            23
 
     1    § 826. Severability. If any clause, sentence,  paragraph,  section  or
     2  part  of this article shall be adjudged by any court of competent juris-
     3  diction to be invalid, the judgment shall not affect, impair or  invali-
     4  date  the  remainder  thereof, but shall be confined in its operation to
     5  the clause, sentence, paragraph, section or part of this article direct-
     6  ly  involved  in  the  controversy in which the judgment shall have been
     7  rendered.
     8    § 13. The executive law is amended by adding a new  section  312-b  to
     9  read as follows:
    10    §  312-b. Study of the feasibility of a minority and women-owned busi-
    11  ness enterprise capacity mentorship program. 1. The empire state  devel-
    12  opment corporation shall conduct a study to explore the feasibility of a
    13  minority   and   women-owned  business  enterprise  capacity  mentorship
    14  program. The study should focus on which agencies and  industries  would
    15  benefit most from such program, the utilization of any existing minority
    16  and  women-owned business enterprise mentorship programs, and any fiscal
    17  implications. The study shall specifically focus on:
    18    (a) which state agencies would benefit most from such program  concen-
    19  trating in construction;
    20    (b)  which state agencies would benefit most from such program concen-
    21  trating in professional services;
    22    (c) which state agencies would benefit most from such program  concen-
    23  trating in non-professional services;
    24    (d)  which state agencies would benefit most from such program concen-
    25  trating in purchases of commodities;
    26    (e) the duration of time minority and women-owned business enterprises
    27  should participate in each program concentration described in paragraphs
    28  (a) through (d) of this subdivision;
    29    (f) the feasibility that such successful completion  of  such  program
    30  could  be  used as a factor for prequalifying participating minority and
    31  women-owned business enterprises; and
    32    (g) how such program can be tailored to better  prepare  minority  and
    33  women-owned  business  enterprises  for  bidding  on contracts with such
    34  agencies upon successful completion of the program.
    35    2. Within twelve months of the effective date  of  this  section,  the
    36  empire  state  development corporation shall issue a report of its find-
    37  ings and recommendations to the governor, the temporary president of the
    38  senate and the speaker of the assembly. Such report shall  include,  but
    39  not be limited to, the following:
    40    (a) actions that can be implemented to establish such capacity mentor-
    41  ship  program,  a  plan of action for such implementation, and the esti-
    42  mated cost of the program including any  additional  division  personnel
    43  that may be required;
    44    (b)  any  regulatory actions required by any agency in order to imple-
    45  ment such program, a plan of action for implementing such  actions,  and
    46  the estimated cost of such implementation;
    47    (c)  actions that require statutory changes in order to be implemented
    48  and the estimated cost of such implementation; and
    49    (d) the extent to which any existing minority and women-owned business
    50  enterprise mentorship program, including pursuant to section one hundred
    51  forty-seven of the state finance law,  has  been  implemented,  and  the
    52  relative success of such programs.
    53    3.  Within  twenty-four  months of the effective date of this section,
    54  the empire state development corporation shall issue a report  detailing
    55  the  actions taken to implement the recommendations of such study to the
    56  governor, the temporary president of the senate and the speaker  of  the

        A. 7814                            24
 
     1  assembly.    Such report shall include a full examination of all aspects
     2  of a minority and women-owned business  enterprise  capacity  mentorship
     3  program, the benefits of such program, a proposed plan of action for the
     4  permanent  establishment  of such program and the estimated cost of such
     5  program.
     6    § 14. The executive law is amended by adding a new  section  312-c  to
     7  read as follows:
     8    §  312-c.  Minority  and  women-owned  business  enterprise mentorship
     9  program. The empire state development corporation shall establish minor-
    10  ity and women-owned business  enterprise  capacity  mentorship  program,
    11  funding  subject  to  appropriations.  The  program shall be tailored to
    12  better prepare minority and women-owned business enterprises for bidding
    13  on contracts with  such  agencies  upon  successful  completion  of  the
    14  program,  ensure that mentor and mentee are connected based on a commer-
    15  cially useful function, and allow mentees to borrow under the program.
    16    § 15. The empire state development corporation shall establish minori-
    17  ty and women-owned business enterprise regional councils as divisions of
    18  regional economic development councils.
    19    § 16. The division of minority and women's business development  shall
    20  allow  the option for minority and women-owned business enterprise firms
    21  to submit invoices online. Allow the vendor and the public to track  the
    22  invoice process. Subject to appropriations.
    23    §  17.  This  act  shall  take effect July 1, 2019; provided, however,
    24  that:
    25    (a) the amendments to article 15-A  of  the  executive  law,  made  by
    26  sections one, one-a, two, three, four, five, six, seven, eight, thirteen
    27  and  fourteen of this act, shall not affect the expiration and repeal of
    28  such article and shall expire and be deemed repealed therewith;
    29    (b) the amendments to section 163 of the state finance  law,  made  by
    30  section  nine of this act, shall not affect the expiration and repeal of
    31  such section, and shall expire and be deemed repealed therewith; and
    32    (c) section twelve of this act shall expire  and  be  deemed  repealed
    33  December 31, 2024.
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