Bill Text: NY S00841 | 2023-2024 | General Assembly | Introduced


Bill Title: Relates to minority and women-owned business enterprise fraud and the monies of the minority and women-owned business enterprise fund; and to the effectiveness of certain provisions related thereto.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-01-24 - SUBSTITUTED BY A989 [S00841 Detail]

Download: New_York-2023-S00841-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                           841

                               2023-2024 Regular Sessions

                    IN SENATE

                                     January 6, 2023
                                       ___________

        Introduced  by  Sen.  BAILEY -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules

        AN ACT to amend the executive law and the state finance law, in relation
          to minority and women-owned business enterprise fraud and  the  monies
          of  the  minority and women-owned business enterprise fund; to amend a
          chapter of the laws of 2022 amending the executive law and  the  state
          finance  law relating to minority and women-owned business enterprises
          post completion certification, duties of the director and creating the
          minority and women-owned business  enterprise  fund,  as  proposed  in
          legislative  bills numbers S. 3390-A and A. 9259-A, in relation to the
          effectiveness thereof; and to repeal certain provisions of the  execu-
          tive law relating thereto

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 314-a of the executive law, as added by  a  chapter
     2  of the laws of 2022 amending the executive law and the state finance law
     3  relating   to   minority   and  women-owned  business  enterprises  post
     4  completion certification, duties of the director and creating the minor-
     5  ity and women-owned business enterprise fund, as proposed in legislative
     6  bills numbers S. 3390-A and A. 9259-A, is REPEALED.
     7    § 2. Subdivision 5 of section 313 of the executive law, as amended  by
     8  chapter 96 of the laws of 2019, is amended to read as follows:
     9    5. (a) Contracting agencies shall administer the rules and regulations
    10  promulgated  by the director in a good faith effort to achieve the maxi-
    11  mum feasible participation by minority and women owned  business  enter-
    12  prises  adopted  pursuant  to  this  article  and the regulations of the
    13  director. Such rules and regulations:  shall  require  a  contractor  to
    14  submit a utilization plan after bids are opened, when bids are required,
    15  but  prior to the award of a state contract; shall require the contract-
    16  ing agency to review the utilization plan submitted  by  the  contractor
    17  and  to  post  the utilization plan and any waivers of compliance issued

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04146-01-3

        S. 841                              2

     1  pursuant to subdivision six of  this  section  on  the  website  of  the
     2  contracting  agency;  shall require the contracting agency to notify the
     3  contractor in writing within a period of time specified by the  director
     4  as  to  any deficiencies contained in the contractor's utilization plan;
     5  shall require remedy thereof within a period of time  specified  by  the
     6  director;  shall  require the contractor to submit [periodic] compliance
     7  reports relating to the operation and implementation of any  utilization
     8  plan; shall not allow any automatic waivers but shall allow a contractor
     9  to  apply  for a partial or total waiver of the minority and women-owned
    10  business enterprise participation requirements pursuant to  subdivisions
    11  six  and  seven  of  this  section;  shall  allow a contractor to file a
    12  complaint with the  director  pursuant  to  subdivision  eight  of  this
    13  section in the event a contracting agency has failed or refused to issue
    14  a  waiver  of  the  minority and women-owned business enterprise partic-
    15  ipation requirements or has denied such request for a waiver; and  shall
    16  allow  a contracting agency to file a complaint with the director pursu-
    17  ant to subdivision nine of this section in the  event  a  contractor  is
    18  failing  or has failed to comply with the minority and women-owned busi-
    19  ness enterprise  participation  requirements  set  forth  in  the  state
    20  contract where no waiver has been granted.
    21    (b) The rules and regulations promulgated pursuant to this subdivision
    22  regarding  a  utilization plan shall provide that where enterprises have
    23  been identified within a utilization plan, a contractor  shall  attempt,
    24  in  good  faith, to utilize such enterprise at least to the extent indi-
    25  cated. A contracting agency may require a contractor to indicate, within
    26  a utilization plan, what measures and procedures he or  she  intends  to
    27  take to comply with the provisions of this article, but may not require,
    28  as  a  condition  of  award  of,  or  compliance with, a contract that a
    29  contractor  utilize  a  particular  enterprise  in  performance  of  the
    30  contract.
    31    (c) The rules and regulations promulgated pursuant to this subdivision
    32  regarding  compliance  reports  shall  provide  that  such reports shall
    33  include a standardized prepayment declaration, to  be  completed  before
    34  each  payment  to  a  contractor,  in which: (i) a representative of the
    35  contractor lists any business that was or shall be relied upon for cred-
    36  it toward minority and women-owned business enterprise participation and
    37  states under  penalty  of  perjury  that  such  business  or  businesses
    38  appeared  on  the  division's directory of certified minority and women-
    39  owned business enterprises at the time  of  contracting  and  that  each
    40  business  performed  or  shall perform a commercially useful function on
    41  the contract; and (ii) a representative of  any  business  that  was  or
    42  shall be relied upon for credit toward minority and women-owned business
    43  enterprise  participation  states  under  penalty  of  perjury  that  it
    44  appeared on the division's directory of certified  minority  and  women-
    45  owned  business  enterprises at the time of contracting and performed or
    46  shall perform a commercially  useful  function  on  the  contract.  Such
    47  standardized  prepayment  declarations shall be submitted electronically
    48  on a centralized state registry designated by the division prior to  any
    49  payment  to a contractor. The rules and regulations promulgated pursuant
    50  to this subdivision may also require the contractor or subcontractor  to
    51  submit  documentation, as needed, to support any statements made in such
    52  standardized prepayment declarations.
    53    (d) Without limiting other grounds for the disqualification of bids or
    54  proposals on the basis of non-responsibility, a contracting  agency  may
    55  disqualify  the bid or proposal of a contractor as being non-responsible
    56  for failure to remedy notified deficiencies contained  in  the  contrac-

        S. 841                              3

     1  tor's  utilization plan within a period of time specified in regulations
     2  promulgated by the director after receiving notification of  such  defi-
     3  ciencies  from the contracting agency. Where failure to remedy any noti-
     4  fied  deficiency  in  the utilization plan is a ground for disqualifica-
     5  tion, that issue and all other grounds  for  disqualification  shall  be
     6  stated in writing by the contracting agency. Where the contracting agen-
     7  cy states that a failure to remedy any notified deficiency in the utili-
     8  zation  plan  is  a  ground for disqualification the contractor shall be
     9  entitled to an  administrative  hearing,  on  a  record,  involving  all
    10  grounds  stated  by  the  contracting  agency.  Such  hearing  shall  be
    11  conducted by the appropriate authority  of  the  contracting  agency  to
    12  review  the  determination  of  disqualification. A final administrative
    13  determination made following such  hearing  shall  be  reviewable  in  a
    14  proceeding  commenced  under article seventy-eight of the civil practice
    15  law and rules, provided that such proceeding is commenced within  thirty
    16  days  of  the  notice  given  by certified mail return receipt requested
    17  rendering such final administrative determination. Such proceeding shall
    18  be commenced in the supreme court, appellate division, third  department
    19  and  such  proceeding  shall  be  preferred  over all other civil causes
    20  except election causes, and shall be heard and determined in  preference
    21  to  all  other  civil business pending therein, except election matters,
    22  irrespective of position on the calendar. Appeals taken to the court  of
    23  appeals  of  the  state of New York shall be subject to the same prefer-
    24  ence.
    25    § 3. Paragraphs (f), (h), (i), (j), (k), (l), (m) and (n) of  subdivi-
    26  sion  3  of  section 311 of the executive law, paragraphs (f) and (j) as
    27  amended and paragraphs (l), (m) and (n) as added by  a  chapter  of  the
    28  laws of 2022 amending the executive law and the state finance law relat-
    29  ing  to  minority  and  women-owned business enterprises post completion
    30  certification, duties of the director  and  creating  the  minority  and
    31  women-owned  business  enterprise fund, as proposed in legislative bills
    32  numbers S. 3390-A and A. 9259-A, and paragraphs  (h),  (i)  and  (k)  as
    33  amended  by  chapter  825  of  the  laws of 2021, are amended to read as
    34  follows:
    35    (f) to prepare and update, no  less  than  annually,  a  directory  of
    36  certified  minority  and  women-owned  business enterprises which shall,
    37  wherever practicable, (i) make publicly available records of all certif-
    38  ications and recertifications, (ii) be divided into categories of labor,
    39  services, supplies, equipment,  materials  and  recognized  construction
    40  trades, and [which shall] (iii) indicate areas or locations of the state
    41  where  such  enterprises  are available to perform services[, and to use
    42  this information to create an internet  based,  searchable,  centralized
    43  state  registry  detailing  certifications,  waivers,  and all documents
    44  submitted pertaining to certification or  denial  of  certification,  or
    45  compliance  with goals for utilization of minority and women-owned busi-
    46  ness enterprises];
    47    (h) to make publicly available on the division's  website  records  of
    48  all  revocations  of  certification  for  convictions  for  fraudulently
    49  misrepresenting the status of minority or  women-owned  business  enter-
    50  prises  or  for  evidence  of  fraudulent conduct with regard to partic-
    51  ipation of a minority or women-owned business enterprise in the perform-
    52  ance of state contracts and the reasoning for such revocations  after  a
    53  final  determination  has  been  made, provided that information falling
    54  into the categories enumerated in paragraphs (a) through (j) of subdivi-
    55  sion two of section eighty-seven of the public  officers  law  shall  be
    56  withheld;

        S. 841                              4

     1    (i)  notwithstanding  the provisions of section two hundred ninety-six
     2  of this chapter, to file a  complaint  pursuant  to  the  provisions  of
     3  section  two hundred ninety-seven of this chapter where the director has
     4  knowledge that a contractor may have violated the  provisions  of  para-
     5  graph  (a), (b) or (c) of subdivision one of section two hundred ninety-
     6  six of this chapter where  such  violation  is  unrelated,  separate  or
     7  distinct from the state contract as expressed by its terms;
     8    [(i)]  (j)  to  streamline  the  state certification process to accept
     9  federal and municipal corporation certifications;
    10    [(j)] (k) to make publicly available on the division's website records
    11  of all waivers of compliance  reported  pursuant  to  paragraph  (b)  of
    12  subdivision  six  of  section three hundred thirteen of this article [on
    13  the division's website], including the  reasoning  for  denial  of  such
    14  waivers  after a final determination has been made, provided that infor-
    15  mation falling into the categories enumerated in paragraphs (a)  through
    16  (j)  of  subdivision  two of section eighty-seven of the public officers
    17  law shall be withheld;
    18    [(k)] (l) to work in  conjunction  with  the  industrial  commissioner
    19  pursuant  to  paragraph  (j) of subdivision one of section eight hundred
    20  eleven of the labor law to assist contractors  in  identifying  minority
    21  group  members  and women who are participating in apprenticeship agree-
    22  ments under article twenty-three of the labor law[.
    23    (l) to perform inspections of minority or women-owned business's place
    24  of business, warehouse or storage facility to confirm the existence of a
    25  workforce, equipment and supplies]; and
    26    (m) to [perform] coordinate with  appropriate  offices,  agencies,  or
    27  authorities,  where  applicable,  to  conduct  site  visits  or  perform
    28  inspections of financial records of  minority  or  women-owned  business
    29  enterprises  [to ensure such enterprises are] in [compliance] accordance
    30  with [applicable laws; and
    31    (n) to ensure the  protection  of  individuals  who  report  suspected
    32  violations  of  this article and applicable laws related to minority and
    33  women-owned business enterprises] this article and  the  regulations  of
    34  the director.
    35    §  4. Subdivision 3 of section 97-k of the state finance law, as added
    36  by a chapter of the laws of 2022 amending  the  executive  law  and  the
    37  state  finance  law relating to minority and women-owned business enter-
    38  prises post completion certification, duties of the director and  creat-
    39  ing  the  minority and women-owned business enterprise fund, as proposed
    40  in legislative bills numbers S. 3390-A and A. 9259-A, is amended to read
    41  as follows:
    42    3. Monies of the fund, following  appropriation  by  the  legislature,
    43  shall  be  expended by the appropriate New York state offices, agencies,
    44  or authorities to acquire software, employ personnel to audit,  investi-
    45  gate  and  prosecute  minority and women-owned business enterprise fraud
    46  and to underwrite minority and women-owned business enterprise  programs
    47  to  assist  minority  and  women  business  enterprise owners to develop
    48  sustainable businesses, provided that expenditures for  such  activities
    49  shall  only be required under this section to the extent that monies are
    50  available in the fund to support them.
    51    § 5. Section 6 of a chapter of the laws of 2022 amending the executive
    52  law and the state finance law relating to minority and women-owned busi-
    53  ness enterprises post completion certification, duties of  the  director
    54  and  creating  the minority and women-owned business enterprise fund, as
    55  proposed in legislative bills  numbers  S.  3390-A  and  A.  9259-A,  is
    56  amended to read as follows:

        S. 841                              5

     1    §  6.  This  act  shall  take  effect [immediately] on the one hundred
     2  eightieth day after it shall have become a law; provided, however,  that
     3  the  amendments  to  article  15-A of the executive law made by sections
     4  one, two, three and four of this act shall not affect the repeal of such
     5  article and shall be deemed repealed therewith.
     6    §  6.  This act shall take effect immediately; provided, however, that
     7  sections one, two, three and four of this act shall take effect  on  the
     8  same date and in the same manner as a chapter of the laws of 2022 amend-
     9  ing the executive law and the state finance law relating to minority and
    10  women-owned  business  enterprises post completion certification, duties
    11  of the director and  creating  the  minority  and  women-owned  business
    12  enterprise  fund, as proposed in legislative bills numbers S. 3390-A and
    13  A. 9259-A, takes effect; and provided, further, that the amendments made
    14  to article 15-A of the executive law made by sections two and  three  of
    15  this act shall not affect the repeal of such article and shall be deemed
    16  repealed therewith.
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