Bill Text: NY A07519 | 2021-2022 | General Assembly | Amended
Bill Title: Relates to increased participation in state contracts and subcontracts by certified minority and women-owned business enterprises; requires quarterly reports from contracting agencies; addresses consequences if contracting agency fails to comply with reporting requirements; relates to certain performance and payment bond requirements.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Introduced - Dead) 2022-05-18 - print number 7519a [A07519 Detail]
Download: New_York-2021-A07519-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 7519--A 2021-2022 Regular Sessions IN ASSEMBLY May 13, 2021 ___________ Introduced by M. of A. BICHOTTE HERMELYN, SIMON, FERNANDEZ, ZINERMAN, SEAWRIGHT, JACKSON -- read once and referred to the Committee on Governmental Operations -- recommitted to the Committee on Govern- mental Operations in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the executive law, in relation to participation by minority group members and women with respect to certain state contracts; and to amend the state finance law, in relation to perform- ance and payment bond requirements The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivisions 3 and 4 of section 311 of the executive law, 2 subdivision 3 as added by chapter 261 of the laws of 1988, paragraphs 3 (d) and (e) of subdivision 3 as amended by chapter 55 of the laws of 4 1992, paragraph (f) of subdivision 3 and the opening paragraph of subdi- 5 vision 4 as amended and paragraph (d-1) of subdivision 3 and paragraphs 6 (d) and (e) of subdivision 4 as added by chapter 96 of the laws of 2019, 7 paragraph (g) of subdivision 3 as amended by section 1 of part BB of 8 chapter 59 of the laws of 2006, paragraphs (h), (i) and (j) of subdivi- 9 sion 3 as amended and paragraph (k) of subdivision 3 as added by chapter 10 825 of the laws of 2021, and subdivision 4 as amended by chapter 361 of 11 the laws of 2009, are amended to read as follows: 12 3. The director shall have the following powers and duties: 13 (a) to encourage and assist contracting agencies in their efforts to 14 increase participation by minority and women-owned business enterprises 15 on state contracts and subcontracts [so as] to facilitate the award of a 16 fair share of such contracts to them and to provide on the division's 17 website a list of each contracting agency's minority and women-owned 18 business enterprises certification outreach seminars; EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04845-05-2A. 7519--A 2 1 (b) to develop standardized forms and reporting documents necessary to 2 implement this article; 3 (c) to conduct educational outreach programs to encourage the certif- 4 ication of minority and women-owned business enterprises consistent with 5 the purposes of this article; 6 (d) to review [periodically] quarterly the practices and procedures of 7 each contracting agency with respect to compliance with the provisions 8 of this article, and to require them to file [periodic] quarterly 9 reports with the division of minority and women's business development 10 as to the level of minority and women-owned business enterprises partic- 11 ipation in the awarding of agency contracts for goods and services 12 including but not limited to the number of state contracts awarded to 13 certified minority or women-owned business enterprises, the maximum 14 dollar amount obligated pursuant to all those contracts, and the total 15 expenditures made pursuant to all such contracts; the number of state 16 contracts awarded which include a utilization plan for business partic- 17 ipation by certified minority or women-owned business enterprises, the 18 maximum amount obligated pursuant to those contracts, and the total 19 expenditures made pursuant to all such contracts; the number of state 20 contracts awarded upon which a waiver was granted from goals required by 21 the contracts for business participation by certified minority or 22 women-owned business enterprises, and the maximum amount obligated 23 pursuant to those contracts; the number of state contracts awarded which 24 required goals for employment of minority group members and women; and 25 the number of state contracts awarded for which waivers of employment 26 goals required by the contracts have been granted; 27 (d-1) to require all contracting state agencies to develop a four-year 28 growth plan to determine a means of promoting and increasing partic- 29 ipation by minority-owned and women-owned business enterprises with 30 respect to state contracts and subcontracts. Every four years, beginning 31 September fifteenth, two thousand twenty, each contracting state agency 32 shall submit a four-year growth plan as part of its annual report to the 33 governor and legislature pursuant to section one hundred sixty-four of 34 this chapter. 35 (e) on January first of each year report to the governor, the tempo- 36 rary president of the senate, the speaker of the assembly, the minority 37 leaders of the senate and the assembly, and the chairpersons of the 38 senate finance and assembly ways and means committees on the [level] 39 actual versus projected levels of minority and women-owned business 40 enterprises participating in each agency's contracts for goods [and], 41 services and construction, including but not limited to the number of 42 state contracts awarded to certified minority-owned or women-owned busi- 43 ness enterprises, the maximum dollar amount obligated pursuant to all 44 those contracts, and the total expenditures made pursuant to all such 45 contracts, and on activities of the office and effort by each contract- 46 ing agency to promote employment of minority group members and women, 47 and to promote and increase participation by certified businesses with 48 respect to state contracts and subcontracts so as to facilitate the 49 award of a fair share of state contracts to such businesses. The comp- 50 troller shall assist the division in collecting information on the 51 participation of certified business for each contracting agency. Such 52 report may recommend new activities and programs to effectuate the 53 purposes of this article; 54 (f) the director shall list in the division's annual report the names 55 of non-compliant agencies and the extent of their noncompliance in 56 submitting its quarterly minority and women-owned business enterpriseA. 7519--A 3 1 utilization reports; and, shall implement a master list of all the state 2 agencies required to file quarterly compliance reports and shall attach 3 such list to the division's annual report. 4 (g) to prepare and update[, no less than annually,] quarterly a direc- 5 tory of certified minority and women-owned business enterprises which 6 shall, wherever practicable, be divided into categories of labor, 7 services, supplies, equipment, materials and recognized construction 8 trades and which shall indicate areas or locations of the state where 9 such enterprises are available to perform services, and to use this 10 information to create an internet based, centralized state registry to 11 enable appropriate state certified minority and women-owned business 12 enterprises to access contract and subcontract opportunities; 13 [(g)] (h) to appoint independent hearing officers who by contract or 14 terms of employment shall preside over adjudicatory hearings pursuant to 15 section three hundred fourteen of this article for the office and who 16 are assigned no other work by the office; 17 [(h)] (i) notwithstanding the provisions of section two hundred nine- 18 ty-six of this chapter, to file a complaint pursuant to the provisions 19 of section two hundred ninety-seven of this chapter where the director 20 has knowledge that a contractor may have violated the provisions of 21 paragraph (a), (b) or (c) of subdivision one of section two hundred 22 ninety-six of this chapter where such violation is unrelated, separate 23 or distinct from the state contract as expressed by its terms; 24 [(i)] (j) to streamline the state certification process to accept 25 federal and municipal corporation certifications; 26 [(j)] (k) to make publicly available records of all waivers of compli- 27 ance reported pursuant to paragraph (b) of subdivision six of section 28 three hundred thirteen of this article on the division's website; and 29 [(k)] (l) to work in conjunction with the industrial commissioner 30 pursuant to paragraph (j) of subdivision one of section eight hundred 31 eleven of the labor law to assist contractors in identifying minority 32 group members and women who are participating in apprenticeship agree- 33 ments under article twenty-three of the labor law. 34 4. The director shall provide assistance to, and facilitate access to 35 programs serving certified businesses as well as applicants to ensure 36 that such businesses benefit, as needed, from technical, managerial and 37 financial, and general business assistance; training; marketing; organ- 38 ization and personnel skill development; project management assistance; 39 technology assistance; bond and insurance education assistance; and 40 other business development assistance. The director shall maintain a 41 toll-free number at the department of economic development to be used to 42 answer questions concerning the MWBE certification process. In addition, 43 the director [may] shall, either independently or in conjunction with 44 other state agencies: 45 (a) develop a clearinghouse of information on programs and services 46 provided by entities that may assist such businesses; 47 (b) review bonding and paperwork requirements imposed by contracting 48 agencies that may unnecessarily impede the ability of such businesses to 49 compete; and 50 (c) seek to maximize utilization by minority and women-owned business 51 enterprises of available federal resources including but not limited to 52 federal grants, loans, loan guarantees, surety bonding guarantees, tech- 53 nical assistance, and programs and services of the federal small busi- 54 ness administration. 55 (d) conduct outreach events, training workshops, seminars, and other 56 such educational programs throughout the state, including all regionalA. 7519--A 4 1 offices, to state agencies, external stakeholders, and the public, to 2 promote awareness and utilization of minority and women-owned business 3 enterprises; and 4 (e) identify and establish mentorship opportunities and other business 5 development programs to increase capacity and better prepare MWBEs for 6 bidding on contracts with state agencies upon successful completion of 7 the mentorship opportunity. Such mentorship opportunities shall be 8 intended to ensure that mentor and mentee are connected based on a 9 commercially useful function. 10 § 2. Subdivision 5 of section 312 of the executive law, as added by 11 chapter 261 of the laws of 1988, is amended to read as follows: 12 5. The director shall promulgate rules and regulations to ensure that 13 contractors and subcontractors undertake programs of affirmative action 14 and equal employment opportunity as required by this section. Such rules 15 and regulations as they pertain to any particular agency shall be devel- 16 oped after consultation with contracting agencies. Such rules and regu- 17 lations [may] shall require a contractor, after notice in a bid solic- 18 itation, to submit an equal employment opportunity program [after bid19opening and prior to the award of any contract] at the time bids are 20 submitted, and [may] shall require the contractor or subcontractor to 21 submit compliance reports relating to the contractor's or subcontrac- 22 tor's operation and implementation of any equal employment opportunity 23 program in effect as of the date the contract is executed. The contract- 24 ing agency [may recommend to the director that] shall have the right to 25 recommend that the director take appropriate action according to the 26 procedures set forth in section three hundred sixteen of this article 27 against the contractor for noncompliance with the requirements of this 28 section. The contracting agency shall be responsible for monitoring 29 compliance with this section. 30 § 3. Paragraph (j) of subdivision 2-a of section 313 of the executive 31 law, as amended by chapter 96 of the laws of 2019, is amended and a new 32 paragraph (k) is added to read as follows: 33 (j) require each agency to consult the most current disparity study 34 when calculating agency-wide and contract specific participation goals 35 pursuant to this article; [and] 36 (k) encourage joint ventures, partnerships, and mentor-protege 37 relationships as defined in section one hundred forty-seven of the state 38 finance law, between prime contractors and minority and women-owned 39 business enterprises; and 40 § 4. Subdivision 3 and paragraph (a) of subdivision 5 of section 313 41 of the executive law, as amended by chapter 96 of the laws of 2019, are 42 amended to read as follows: 43 3. Solely for the purpose of providing the opportunity for [meaning-44ful] increased participation by certified businesses in the performance 45 of state contracts as provided in this section, state contracts shall 46 include leases of real property by a state agency to a lessee where: the 47 terms of such leases provide for the construction, demolition, replace- 48 ment, major repair or renovation of real property and improvements ther- 49 eon by such lessee; and the cost of such construction, demolition, 50 replacement, major repair or renovation of real property and improve- 51 ments thereon shall exceed the sum of one hundred thousand dollars. 52 Reports to the director pursuant to section three hundred fifteen of 53 this article shall include activities with respect to all such state 54 contracts. Contracting agencies shall include or require to be included 55 with respect to state contracts for the acquisition, construction, demo- 56 lition, replacement, major repair or renovation of real property andA. 7519--A 5 1 improvements thereon, such provisions as [may] shall be necessary to 2 effectuate the provisions of this section in every bid specification and 3 state contract, including, but not limited to: (a) provisions requiring 4 contractors to make a good faith effort to solicit active participation 5 by enterprises identified in the directory of certified businesses; (b) 6 requiring the parties to agree as a condition of entering into such 7 contract, to be bound by the provisions of section three hundred sixteen 8 of this article; and (c) requiring the contractor to include the 9 provisions set forth in paragraphs (a) and (b) of this subdivision in 10 every subcontract in a manner that the provisions will be binding upon 11 each subcontractor as to work in connection with such contract. 12 Provided, however, that no such provisions shall be binding upon 13 contractors or subcontractors in the performance of work or the 14 provision of services that are unrelated, separate or distinct from the 15 state contract as expressed by its terms, and nothing in this section 16 shall authorize the director or any contracting agency to impose any 17 requirement on a contractor or subcontractor except with respect to a 18 state contract. 19 (a) Contracting agencies shall administer the rules and regulations 20 promulgated by the director in a good faith effort to achieve the maxi- 21 mum feasible participation by minority and women owned business enter- 22 prises adopted pursuant to this article and the regulations of the 23 director. Such rules and regulations: shall require a contractor to 24 submit a utilization plan [after bids are opened] at the time bids are 25 submitted, when bids are required[, but prior to the award of a state26contract]; shall require the contracting agency to review the utiliza- 27 tion plan submitted by the contractor and to post the utilization plan 28 and any waivers of compliance issued pursuant to subdivision six of this 29 section on the website of the contracting agency; shall require the 30 contracting agency to notify the contractor in writing within a period 31 of time specified by the director as to any deficiencies contained in 32 the contractor's utilization plan; shall require remedy thereof within a 33 period of time specified by the director; shall require the contractor 34 to submit [periodic] quarterly compliance reports relating to the opera- 35 tion and implementation of any utilization plan; shall not allow any 36 automatic waivers but shall allow a contractor to apply for a partial or 37 total waiver of the minority and women-owned business enterprise partic- 38 ipation requirements pursuant to subdivisions six and seven of this 39 section; shall allow a contractor to file a complaint with the director 40 pursuant to subdivision eight of this section in the event a contracting 41 agency has failed or refused to issue a waiver of the minority and 42 women-owned business enterprise participation requirements or has denied 43 such request for a waiver; and shall allow a contracting agency to file 44 a complaint with the director pursuant to subdivision nine of this 45 section in the event a contractor is failing or has failed to comply 46 with the minority and women-owned business enterprise participation 47 requirements set forth in the state contract where no waiver has been 48 granted. 49 § 5. Subdivisions 1, 2-a and 3 of section 315 of the executive law, 50 subdivisions 1 and 3 as amended and subdivision 2-a as added by chapter 51 96 of the laws of 2019, are amended and two new subdivisions 3-a and 8 52 are added to read as follows: 53 1. Each contracting agency shall be responsible for monitoring state 54 contracts under its jurisdiction, and recommending matters to the office 55 respecting non-compliance with the provisions of this article so that 56 the office [may] shall take such action as [is appropriate] stated inA. 7519--A 6 1 subdivision three of section three hundred sixteen of this article. Each 2 contracting agency shall have the right to recommend that the director 3 impose a sanction, penalty, or fine for three or more violations of 4 subdivision one of section three hundred sixteen of this article, to 5 ensure compliance with the provisions of this article, the rules and 6 regulations of the director issued hereunder and the contractual 7 provisions required pursuant to this article. All contracting agencies 8 shall comply with the rules and regulations of the office and are 9 directed to cooperate with the office and to furnish to the office such 10 information and assistance as may be required in the performance of its 11 functions under this article. 12 2-a. [To the extent practicable, upon completion of the restrictive13period of a procurement, each] Each contracting agency when notifying a 14 contractor of a winning bid award shall also notify any minority or 15 women-owned business enterprise identified in the contractor's submitted 16 utilization plan of such contractor's receipt of the winning bid award. 17 3. Each contracting agency shall report to the commissioner of econom- 18 ic development, the commissioner of general services and the director 19 with respect to activities undertaken to promote employment of minority 20 group members and women and promote and increase participation by certi- 21 fied businesses with respect to state contracts and subcontracts. Such 22 reports shall be submitted [no later than May fifteenth of every year] 23 quarterly and shall include such information as is necessary for the 24 director to determine whether the contracting agency and any contractor 25 to the contracting agency have complied with the purposes of this arti- 26 cle, including, without limitation, the number of state contracts 27 awarded to certified minority or women-owned business enterprises; the 28 maximum dollar amount obligated pursuant to all those contracts; and the 29 total expenditures made pursuant to all such contracts; the number of 30 state contracts awarded which include a utilization plan for business 31 participation by certified minority or women-owned business enterprises, 32 the maximum amount obligated pursuant to those contracts, and the total 33 expenditures made pursuant to all such contracts; a summary of all waiv- 34 ers of the requirements of subdivisions six and seven of section three 35 hundred thirteen of this article allowed by the contracting agency 36 during the period covered by the report, including a description of the 37 basis of the waiver request [and], the rationale for granting any such 38 waiver, the maximum amount obligated pursuant to those contracts; the 39 number of state contracts awarded which required goals for employment of 40 minority group members and women; the number of state contracts awarded 41 for which waivers of employment goals required by the contracts have 42 been granted, and any instances in which the contract agency has deemed 43 a contractor to have committed a violation pursuant to section three 44 hundred sixteen of this article and such other information as the direc- 45 tor shall require. Each agency shall also include in such annual report 46 whether or not it has been required to prepare a remedial plan, and, if 47 so, the plan and the extent to which the agency has complied with each 48 element of the plan. 49 3-a. Within thirty days after completion, a copy of the quarterly 50 minority and women-owned business enterprise report shall be transmitted 51 to the commissioner of economic development, the commissioner of general 52 services, and the director. A contracting agency, which has not let more 53 than two million dollars in service and/or construction contracts within 54 the applicable period may apply to the commissioner of economic develop- 55 ment, and the director for a waiver of the required annual report. TheA. 7519--A 7 1 waiver application shall be made on such form as the commissioner of 2 economic development and the director may prescribe. 3 8. If a contracting agency shall fail to file or substantially 4 complete, as determined by the commissioner of economic development and 5 the director, the report required by this section, the director shall 6 provide notice to the contracting agency. The notice shall state the 7 following: 8 (a) that the failure to file a report as required is a violation of 9 this section, or in the case of an insufficient report, the manner in 10 which the report submitted is deficient; 11 (b) that the contracting agency has thirty days to comply with this 12 section or provide an adequate written explanation to the commissioner 13 of economic development and the commissioner of general services and the 14 director of the contracting agency's reasons for the inability to 15 comply; and 16 (c) that the contracting agency's continued failure to provide either 17 the required report or an adequate explanation will result in an inde- 18 pendent audit of the contracting agency, the cost of which shall be 19 borne by the contracting agency. 20 § 6. Section 316 of the executive law, as amended by chapter 175 of 21 the laws of 2010, is amended to read as follows: 22 § 316. [Enforcement] Violations and enforcement. 1. It shall be a 23 violation for any person or entity to: 24 a. intentionally use or acquire an MWBE name through deceit or other 25 dishonest means in order to negotiate a lower bid from a non-MWBE. 26 b. submit to the department of economic development, documents or 27 other material as evidence of a good faith effort to comply with the 28 provisions of this article without, in fact, having entered into any 29 contract, agreement, subcontract, or sub-agreement with an MWBE for the 30 use or purchase of such business enterprise's goods or services in the 31 performance of the awarded state contract. 32 c. fail to provide an MWBE with sufficient information or other 33 required supporting documentation in order for the MWBE to prepare a 34 proper bid. 35 2. Upon receipt by the director of a complaint by a contracting agency 36 that a contractor has violated the provisions of a state contract which 37 have been included to comply with the provisions of this article or of a 38 contractor that a contracting agency has violated such provisions or has 39 failed or refused to issue a waiver where one has been applied for 40 pursuant to subdivision six of section three hundred thirteen of this 41 article or has denied such application, the director shall attempt to 42 resolve the matter giving rise to such complaint. If efforts to resolve 43 such matter to the satisfaction of all parties are unsuccessful, the 44 director shall refer the matter, within thirty days of the receipt of 45 the complaint, to the division's hearing officers. Upon conclusion of 46 the administrative hearing, the hearing officer shall submit to the 47 director his or her decision regarding the alleged violation of the 48 contract and recommendations regarding the imposition of sanctions, 49 fines or penalties. The director, within ten days of receipt of the 50 decision, shall file a determination of such matter and shall cause a 51 copy of such determination along with a copy of this article to be 52 served upon the contractor by personal service or by certified mail 53 return receipt requested. The decision of the hearing officer shall be 54 final and may only be vacated or modified as provided in article seven- 55 ty-eight of the civil practice law and rules upon an application made 56 within the time provided by such article. The determination of theA. 7519--A 8 1 director as to the imposition of any fines, sanctions or penalties shall 2 be reviewable pursuant to article seventy-eight of the civil practice 3 law and rules. The penalties imposed for any violation which is premised 4 upon either a fraudulent or intentional misrepresentation by the 5 contractor or the contractor's willful and intentional disregard of the 6 minority and women-owned participation requirement included in the 7 contract may include a determination that the contractor shall be ineli- 8 gible to submit a bid to any contracting agency or be awarded any such 9 contract for a period not to exceed one year following the final deter- 10 mination; provided however, if a contractor has previously been deter- 11 mined to be ineligible to submit a bid pursuant to this section, the 12 penalties imposed for any subsequent violation, if such violation occurs 13 within five years of the first violation, may include a determination 14 that the contractor shall be ineligible to submit a bid to any contract- 15 ing agency or be awarded any such contract for a period not to exceed 16 five years following the final determination. The division of minority 17 and women's business development shall maintain a website listing all 18 contractors that have been deemed ineligible to submit a bid pursuant to 19 this section and the date after which each contractor shall once again 20 become eligible to submit bids. 21 3. The director shall impose a sanction, penalty, or fine on any 22 individual or entity that has three or more violations of this article 23 within five years. Such fine shall be paid by such individual or entity. 24 Such fine shall be remitted and deposited into a fund, to be managed by 25 the commissioner of economic development. Such funds shall be used to 26 subsidize the facilitation of the provisions of this article. Other 27 sanctions shall include barring such entity or individual from contract- 28 ing with such agency for a period not to exceed five years. 29 § 7. Subdivision 1 of section 137 of the state finance law, as sepa- 30 rately amended by section 17 of part MM of chapter 57 and chapter 619 of 31 the laws of 2008, is amended to read as follows: 32 1. In addition to other bond or bonds, if any, required by law for the 33 completion of a work specified in a contract for the prosecution of a 34 public improvement for the state of New York a municipal corporation, a 35 public benefit corporation or a commission appointed pursuant to law, or 36 in the absence of any such requirement, the comptroller may or the other 37 appropriate official, respectively, shall nevertheless require prior to 38 the approval of any such contract a bond guaranteeing prompt payment of 39 moneys due to all persons furnishing labor or materials to the contrac- 40 tor or any subcontractors in the prosecution of the work provided for in 41 such contract. Whenever a municipal corporation issues a permit subject 42 to compliance with section two hundred twenty of the labor law, such 43 permittee or its contractor or subcontractors furnishing workers shall 44 post a payment bond subject to this section. Provided, however, that all 45 performance bonds and payment bonds may, at the discretion of the head 46 of the state agency, public benefit corporation or commission, or his or 47 her designee, be dispensed with for the completion of a work specified 48 in a contract for the prosecution of a public improvement for the state 49 of New York for which bids are solicited where the aggregate amount of 50 the contract is under one hundred thousand dollars and provided further, 51 that in a case where the contract is not subject to the multiple 52 contract award requirements of section one hundred thirty-five of this 53 article, such requirements may be dispensed with where the head of the 54 state agency, public benefit corporation or commission finds it to be in 55 the public interest and where the aggregate amount of the contract 56 awarded or to be awarded is less than two hundred thousand dollars. In aA. 7519--A 9 1 case where a contract is awarded to a small business concern or to a 2 minority or women-owned business concern, all performance bonds and 3 payment bonds may be dispensed with when the aggregate amount of the 4 contract is under five hundred thousand dollars. Advertisements for bids 5 shall provide information as to the requirements for, or dispensation 6 of, performance and payment bonds. Provided further, that in a case 7 where a performance or payment bond is dispensed with, twenty per centum 8 may be retained from each progress payment or estimate until the entire 9 contract work has been completed and accepted, at which time the head of 10 the state agency, public benefit corporation or commission shall, pend- 11 ing the payment of the final estimate, pay not to exceed seventy-five 12 per centum of the amount of the retained percentage. 13 § 8. Subdivision 4 of section 139-f of the state finance law, as 14 amended by chapter 83 of the laws of 1995, is amended to read as 15 follows: 16 4. Notwithstanding any other provision of this section or other law, 17 requirements for the furnishing of a performance bond or a payment bond 18 may be dispensed with at the discretion of the head of the state agency 19 or corporation, or his or her designee, where the public owner is a 20 state agency or corporation described in subdivision one-a of this 21 section and the aggregate amount of the contract awarded or to be 22 awarded is under fifty thousand dollars and, in a case where the 23 contract is not subject to the multiple contract award requirements of 24 section one hundred thirty-five of this article, such requirements may 25 be dispensed with where the head of the state agency or corporation 26 finds it to be in the public interest and where the aggregate amount of 27 the contract awarded or to be awarded is under two hundred thousand 28 dollars. In a case where a contract is awarded to a small business 29 concern or to a minority or women-owned business concern, all perform- 30 ance bonds and payment bonds may be dispensed with when the aggregate 31 amount of the contract is under five hundred thousand dollars. Adver- 32 tisements for proposals shall provide information as to the requirements 33 for, or dispensation of, performance and payment bonds. Provided 34 further, that in a case where a performance or payment bond is dispensed 35 with, twenty per centum may be retained from each progress payment or 36 estimate until the entire contract work has been completed and accepted, 37 at which time the head of the state agency or corporation shall, pending 38 the payment of the final estimate, pay not to exceed seventy-five per 39 centum of the amount of the retained percentage. 40 § 9. The opening paragraph of section 139-g of the state finance law, 41 as amended by chapter 636 of the laws of 2003, is amended to read as 42 follows: 43 In every state agency, department and authority which has let more 44 than two million dollars in service and construction contracts and state 45 assisted project contracts in the prior fiscal year, the chief executive 46 officer of that agency, department or authority shall, with respect to 47 those contracts and state assisted project contracts let by his or her 48 agency, department or authority: 49 § 10. The opening paragraph of subdivision (b) of section 139-g of the 50 state finance law, as amended by chapter 636 of the laws of 2003, is 51 amended to read as follows: 52 identify all small-business and certified women and minority-owned 53 business concerns which, in the judgment of the chief executive officer 54 of that agency, department or authority, can bid on those contracts and 55 state assisted project contracts which are usually and customarily let 56 by that agency, department or authority, or in which that authorityA. 7519--A 10 1 provides a grant or loan or tax exempt financing, with a reasonable 2 expectation of success. Such chief executive officers shall carry out 3 the provisions of this subdivision: 4 § 11. Section 139-g of the state finance law is amended by adding a 5 new subdivision (e) to read as follows: 6 (e) for the purposes of this section, the following words shall have 7 the following meanings: 8 (i) "State assisted project contract" shall mean any written agreement 9 arising out of a state assisted housing project or state assisted 10 economic development project or state assisted higher education project 11 or state assisted hospital or health care facility project, for which 12 the total project cost exceeds two million dollars and for which the 13 project owner is committed to spend or does expend funds for the acqui- 14 sition, construction, demolition, replacement, major repair, or reno- 15 vation of real property and improvements thereon for such project. 16 (ii) "State assisted housing project" shall mean those projects which 17 receive from the New York state housing finance agency tax-exempt 18 financing for all or part of the total project cost. 19 (iii) "State assisted economic development project" shall mean those 20 projects which receive from the New York foundation of science technolo- 21 gy and innovation, or the urban development corporation and its subsid- 22 iaries a grant or loan or tax-exempt financing for all or part of the 23 total project cost. 24 (iv) "State assisted higher education project" shall mean those 25 projects which receive from the dormitory authority of the state of New 26 York a grant or loan or tax-exempt financing for all or part of the 27 total project cost. 28 (v) "State assisted hospital or health care facility project" shall 29 mean those projects which receive from the dormitory authority of the 30 state of New York a grant or loan or tax-exempt financing for all or 31 part of the total project cost. 32 § 12. This act shall take effect immediately, provided however, the 33 amendments to article 15-A of the executive law made by sections one 34 through six of this act shall not affect the expiration of such article 35 and shall expire therewith.