Bill Text: NY S03919 | 2021-2022 | General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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 2-0)
Status: (Introduced - Dead) 2022-04-26 - REPORTED AND COMMITTED TO FINANCE [S03919 Detail]
Download: New_York-2021-S03919-Amended.html
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 2-0)
Status: (Introduced - Dead) 2022-04-26 - REPORTED AND COMMITTED TO FINANCE [S03919 Detail]
Download: New_York-2021-S03919-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 3919--A 2021-2022 Regular Sessions IN SENATE February 1, 2021 ___________ Introduced by Sen. SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged and said bill committed to the Committee on Procurement and Contracts -- 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, paragraphs (g) and (h) of subdivision 3 as amended by section 1 of 5 part BB of chapter 59 of the laws of 2006, paragraphs (f), (i) and (j) 6 of subdivision 3 and the opening paragraph of subdivision 4 as amended 7 and paragraph (d-1) of subdivision 3 and paragraphs (d) and (e) of 8 subdivision 4 as added by chapter 96 of the laws of 2019, and subdivi- 9 sion 4 as amended by chapter 361 of the laws of 2009, are amended to 10 read as follows: 11 3. The director shall have the following powers and duties: 12 (a) to encourage and assist contracting agencies in their efforts to 13 increase participation by minority and women-owned business enterprises 14 on state contracts and subcontracts [so as] to facilitate the award of a 15 fair share of such contracts to them and to provide on the division's 16 website a list of each contracting agency's minority and women-owned 17 business enterprises certification outreach seminars; 18 (b) to develop standardized forms and reporting documents necessary to 19 implement this article; EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04845-02-1S. 3919--A 2 1 (c) to conduct educational outreach programs to encourage the certif- 2 ication of minority and women-owned business enterprises consistent with 3 the purposes of this article; 4 (d) to review [periodically] quarterly the practices and procedures of 5 each contracting agency with respect to compliance with the provisions 6 of this article, and to require them to file [periodic] quarterly 7 reports with the division of minority and women's business development 8 as to the level of minority and women-owned business enterprises partic- 9 ipation in the awarding of agency contracts for goods and services 10 including but not limited to the number of state contracts awarded to 11 certified minority or women-owned business enterprises, the maximum 12 dollar amount obligated pursuant to all those contracts, and the total 13 expenditures made pursuant to all such contracts; the number of state 14 contracts awarded which include a utilization plan for business partic- 15 ipation by certified minority or women-owned business enterprises, the 16 maximum amount obligated pursuant to those contracts, and the total 17 expenditures made pursuant to all such contracts; the number of state 18 contracts awarded upon which a waiver was granted from goals required by 19 the contracts for business participation by certified minority or 20 women-owned business enterprises, and the maximum amount obligated 21 pursuant to those contracts; the number of state contracts awarded which 22 required goals for employment of minority group members and women; and 23 the number of state contracts awarded for which waivers of employment 24 goals required by the contracts have been granted; 25 (d-1) to require all contracting state agencies to develop a four-year 26 growth plan to determine a means of promoting and increasing partic- 27 ipation by minority-owned and women-owned business enterprises with 28 respect to state contracts and subcontracts. Every four years, beginning 29 September fifteenth, two thousand twenty, each contracting state agency 30 shall submit a four-year growth plan as part of its annual report to the 31 governor and legislature pursuant to section one hundred sixty-four of 32 this chapter. 33 (e) on January first of each year report to the governor, the tempo- 34 rary president of the senate, the speaker of the assembly, the minority 35 leaders of the senate and the assembly, and the chairpersons of the 36 senate finance and assembly ways and means committees on the [level] 37 actual versus projected levels of minority and women-owned business 38 enterprises participating in each agency's contracts for goods [and], 39 services and construction, including but not limited to the number of 40 state contracts awarded to certified minority-owned or women-owned busi- 41 ness enterprises, the maximum dollar amount obligated pursuant to all 42 those contracts, and the total expenditures made pursuant to all such 43 contracts, and on activities of the office and effort by each contract- 44 ing agency to promote employment of minority group members and women, 45 and to promote and increase participation by certified businesses with 46 respect to state contracts and subcontracts so as to facilitate the 47 award of a fair share of state contracts to such businesses. The comp- 48 troller shall assist the division in collecting information on the 49 participation of certified business for each contracting agency. Such 50 report may recommend new activities and programs to effectuate the 51 purposes of this article; 52 (f) the director shall list in the division's annual report the names 53 of non-compliant agencies and the extent of their noncompliance in 54 submitting its quarterly minority and women-owned business enterprise 55 utilization reports; and, shall implement a master list of all the stateS. 3919--A 3 1 agencies required to file quarterly compliance reports and shall attach 2 such list to the division's annual report. 3 (g) to prepare and update[, no less than annually,] quarterly a direc- 4 tory of certified minority and women-owned business enterprises which 5 shall, wherever practicable, be divided into categories of labor, 6 services, supplies, equipment, materials and recognized construction 7 trades and which shall indicate areas or locations of the state where 8 such enterprises are available to perform services, and to use this 9 information to create an internet based, centralized state registry to 10 enable appropriate state certified minority and women-owned business 11 enterprises to access contract and subcontract opportunities; 12 [(g)] (h) to appoint independent hearing officers who by contract or 13 terms of employment shall preside over adjudicatory hearings pursuant to 14 section three hundred fourteen of this article for the office and who 15 are assigned no other work by the office; 16 [(h)] (i) notwithstanding the provisions of section two hundred nine- 17 ty-six of this chapter, to file a complaint pursuant to the provisions 18 of section two hundred ninety-seven of this chapter where the director 19 has knowledge that a contractor may have violated the provisions of 20 paragraph (a), (b) or (c) of subdivision one of section two hundred 21 ninety-six of this chapter where such violation is unrelated, separate 22 or distinct from the state contract as expressed by its terms; and 23 [(i)] (j) to streamline the state certification process to accept 24 federal and municipal corporation certifications; 25 [(j)] (k) to make publicly available records of all waivers of compli- 26 ance reported pursuant to paragraph (b) of subdivision six of section 27 three hundred thirteen of this article on the division's website. 28 4. The director shall provide assistance to, and facilitate access to 29 programs serving certified businesses as well as applicants to ensure 30 that such businesses benefit, as needed, from technical, managerial and 31 financial, and general business assistance; training; marketing; organ- 32 ization and personnel skill development; project management assistance; 33 technology assistance; bond and insurance education assistance; and 34 other business development assistance. The director shall maintain a 35 toll-free number at the department of economic development to be used to 36 answer questions concerning the MWBE certification process. In addition, 37 the director [may] shall, either independently or in conjunction with 38 other state agencies: 39 (a) develop a clearinghouse of information on programs and services 40 provided by entities that may assist such businesses; 41 (b) review bonding and paperwork requirements imposed by contracting 42 agencies that may unnecessarily impede the ability of such businesses to 43 compete; and 44 (c) seek to maximize utilization by minority and women-owned business 45 enterprises of available federal resources including but not limited to 46 federal grants, loans, loan guarantees, surety bonding guarantees, tech- 47 nical assistance, and programs and services of the federal small busi- 48 ness administration. 49 (d) conduct outreach events, training workshops, seminars, and other 50 such educational programs throughout the state, including all regional 51 offices, to state agencies, external stakeholders, and the public, to 52 promote awareness and utilization of minority and women-owned business 53 enterprises; and 54 (e) identify and establish mentorship opportunities and other business 55 development programs to increase capacity and better prepare MWBEs for 56 bidding on contracts with state agencies upon successful completion ofS. 3919--A 4 1 the mentorship opportunity. Such mentorship opportunities shall be 2 intended to ensure that mentor and mentee are connected based on a 3 commercially useful function. 4 § 2. Subdivision 5 of section 312 of the executive law, as added by 5 chapter 261 of the laws of 1988, is amended to read as follows: 6 5. The director shall promulgate rules and regulations to ensure that 7 contractors and subcontractors undertake programs of affirmative action 8 and equal employment opportunity as required by this section. Such rules 9 and regulations as they pertain to any particular agency shall be devel- 10 oped after consultation with contracting agencies. Such rules and regu- 11 lations [may] shall require a contractor, after notice in a bid solic- 12 itation, to submit an equal employment opportunity program [after bid13opening and prior to the award of any contract] at the time bids are 14 submitted, and [may] shall require the contractor or subcontractor to 15 submit compliance reports relating to the contractor's or subcontrac- 16 tor's operation and implementation of any equal employment opportunity 17 program in effect as of the date the contract is executed. The contract- 18 ing agency [may recommend to the director that] shall have the right to 19 recommend that the director take appropriate action according to the 20 procedures set forth in section three hundred sixteen of this article 21 against the contractor for noncompliance with the requirements of this 22 section. The contracting agency shall be responsible for monitoring 23 compliance with this section. 24 § 3. Paragraph (j) of subdivision 2-a of section 313 of the executive 25 law, as amended by chapter 96 of the laws of 2019, is amended and a new 26 paragraph (k) is added to read as follows: 27 (j) require each agency to consult the most current disparity study 28 when calculating agency-wide and contract specific participation goals 29 pursuant to this article; [and] 30 (k) encourage joint ventures, partnerships, and mentor-protege 31 relationships as defined in section one hundred forty-seven of the state 32 finance law, between prime contractors and minority and women-owned 33 business enterprises; and 34 § 4. Subdivision 3 and paragraph (a) of subdivision 5 of section 313 35 of the executive law, as amended by chapter 96 of the laws of 2019, are 36 amended to read as follows: 37 3. Solely for the purpose of providing the opportunity for [meaning-38ful] increased participation by certified businesses in the performance 39 of state contracts as provided in this section, state contracts shall 40 include leases of real property by a state agency to a lessee where: the 41 terms of such leases provide for the construction, demolition, replace- 42 ment, major repair or renovation of real property and improvements ther- 43 eon by such lessee; and the cost of such construction, demolition, 44 replacement, major repair or renovation of real property and improve- 45 ments thereon shall exceed the sum of one hundred thousand dollars. 46 Reports to the director pursuant to section three hundred fifteen of 47 this article shall include activities with respect to all such state 48 contracts. Contracting agencies shall include or require to be included 49 with respect to state contracts for the acquisition, construction, demo- 50 lition, replacement, major repair or renovation of real property and 51 improvements thereon, such provisions as [may] shall be necessary to 52 effectuate the provisions of this section in every bid specification and 53 state contract, including, but not limited to: (a) provisions requiring 54 contractors to make a good faith effort to solicit active participation 55 by enterprises identified in the directory of certified businesses; (b) 56 requiring the parties to agree as a condition of entering into suchS. 3919--A 5 1 contract, to be bound by the provisions of section three hundred sixteen 2 of this article; and (c) requiring the contractor to include the 3 provisions set forth in paragraphs (a) and (b) of this subdivision in 4 every subcontract in a manner that the provisions will be binding upon 5 each subcontractor as to work in connection with such contract. 6 Provided, however, that no such provisions shall be binding upon 7 contractors or subcontractors in the performance of work or the 8 provision of services that are unrelated, separate or distinct from the 9 state contract as expressed by its terms, and nothing in this section 10 shall authorize the director or any contracting agency to impose any 11 requirement on a contractor or subcontractor except with respect to a 12 state contract. 13 (a) Contracting agencies shall administer the rules and regulations 14 promulgated by the director in a good faith effort to achieve the maxi- 15 mum feasible participation by minority and women owned business enter- 16 prises adopted pursuant to this article and the regulations of the 17 director. Such rules and regulations: shall require a contractor to 18 submit a utilization plan [after bids are opened] at the time bids are 19 submitted, when bids are required[, but prior to the award of a state20contract]; shall require the contracting agency to review the utiliza- 21 tion plan submitted by the contractor and to post the utilization plan 22 and any waivers of compliance issued pursuant to subdivision six of this 23 section on the website of the contracting agency; shall require the 24 contracting agency to notify the contractor in writing within a period 25 of time specified by the director as to any deficiencies contained in 26 the contractor's utilization plan; shall require remedy thereof within a 27 period of time specified by the director; shall require the contractor 28 to submit [periodic] quarterly compliance reports relating to the opera- 29 tion and implementation of any utilization plan; shall not allow any 30 automatic waivers but shall allow a contractor to apply for a partial or 31 total waiver of the minority and women-owned business enterprise partic- 32 ipation requirements pursuant to subdivisions six and seven of this 33 section; shall allow a contractor to file a complaint with the director 34 pursuant to subdivision eight of this section in the event a contracting 35 agency has failed or refused to issue a waiver of the minority and 36 women-owned business enterprise participation requirements or has denied 37 such request for a waiver; and shall allow a contracting agency to file 38 a complaint with the director pursuant to subdivision nine of this 39 section in the event a contractor is failing or has failed to comply 40 with the minority and women-owned business enterprise participation 41 requirements set forth in the state contract where no waiver has been 42 granted. 43 § 5. Subdivisions 1, 2-a and 3 of section 315 of the executive law, 44 subdivisions 1 and 3 as amended and subdivision 2-a as added by chapter 45 96 of the laws of 2019, are amended and two new subdivisions 3-a and 8 46 are added to read as follows: 47 1. Each contracting agency shall be responsible for monitoring state 48 contracts under its jurisdiction, and recommending matters to the office 49 respecting non-compliance with the provisions of this article so that 50 the office [may] shall take such action as [is appropriate] stated in 51 subdivision three of section three hundred sixteen of this article. Each 52 contracting agency shall have the right to recommend that the director 53 impose a sanction, penalty, or fine for three or more violations of 54 subdivision one of section three hundred sixteen of this article, to 55 ensure compliance with the provisions of this article, the rules and 56 regulations of the director issued hereunder and the contractualS. 3919--A 6 1 provisions required pursuant to this article. All contracting agencies 2 shall comply with the rules and regulations of the office and are 3 directed to cooperate with the office and to furnish to the office such 4 information and assistance as may be required in the performance of its 5 functions under this article. 6 2-a. [To the extent practicable, upon completion of the restrictive7period of a procurement, each] Each contracting agency when notifying a 8 contractor of a winning bid award shall also notify any minority or 9 women-owned business enterprise identified in the contractor's submitted 10 utilization plan of such contractor's receipt of the winning bid award. 11 3. Each contracting agency shall report to the commissioner of econom- 12 ic development, the commissioner of general services and the director 13 with respect to activities undertaken to promote employment of minority 14 group members and women and promote and increase participation by certi- 15 fied businesses with respect to state contracts and subcontracts. Such 16 reports shall be submitted [no later than May fifteenth of every year] 17 quarterly and shall include such information as is necessary for the 18 director to determine whether the contracting agency and any contractor 19 to the contracting agency have complied with the purposes of this arti- 20 cle, including, without limitation, the number of state contracts 21 awarded to certified minority or women-owned business enterprises; the 22 maximum dollar amount obligated pursuant to all those contracts; and the 23 total expenditures made pursuant to all such contracts; the number of 24 state contracts awarded which include a utilization plan for business 25 participation by certified minority or women-owned business enterprises, 26 the maximum amount obligated pursuant to those contracts, and the total 27 expenditures made pursuant to all such contracts; a summary of all waiv- 28 ers of the requirements of subdivisions six and seven of section three 29 hundred thirteen of this article allowed by the contracting agency 30 during the period covered by the report, including a description of the 31 basis of the waiver request [and], the rationale for granting any such 32 waiver, the maximum amount obligated pursuant to those contracts; the 33 number of state contracts awarded which required goals for employment of 34 minority group members and women; the number of state contracts awarded 35 for which waivers of employment goals required by the contracts have 36 been granted, and any instances in which the contract agency has deemed 37 a contractor to have committed a violation pursuant to section three 38 hundred sixteen of this article and such other information as the direc- 39 tor shall require. Each agency shall also include in such annual report 40 whether or not it has been required to prepare a remedial plan, and, if 41 so, the plan and the extent to which the agency has complied with each 42 element of the plan. 43 3-a. Within thirty days after completion, a copy of the quarterly 44 minority and women-owned business enterprise report shall be transmitted 45 to the commissioner of economic development, the commissioner of general 46 services, and the director. A contracting agency, which has not let more 47 than two million dollars in service and/or construction contracts within 48 the applicable period may apply to the commissioner of economic develop- 49 ment, and the director for a waiver of the required annual report. The 50 waiver application shall be made on such form as the commissioner of 51 economic development and the director may prescribe. 52 8. If a contracting agency shall fail to file or substantially 53 complete, as determined by the commissioner of economic development and 54 the director, the report required by this section, the director shall 55 provide notice to the contracting agency. The notice shall state the 56 following:S. 3919--A 7 1 (a) that the failure to file a report as required is a violation of 2 this section, or in the case of an insufficient report, the manner in 3 which the report submitted is deficient; 4 (b) that the contracting agency has thirty days to comply with this 5 section or provide an adequate written explanation to the commissioner 6 of economic development and the commissioner of general services and the 7 director of the contracting agency's reasons for the inability to 8 comply; and 9 (c) that the contracting agency's continued failure to provide either 10 the required report or an adequate explanation will result in an inde- 11 pendent audit of the contracting agency, the cost of which shall be 12 borne by the contracting agency. 13 § 6. Section 316 of the executive law, as amended by chapter 175 of 14 the laws of 2010, is amended to read as follows: 15 § 316. [Enforcement] Violations and enforcement. 1. It shall be a 16 violation for any person or entity to: 17 a. intentionally use or acquire an MWBE name through deceit or other 18 dishonest means in order to negotiate a lower bid from a non-MWBE. 19 b. submit to the department of economic development, documents or 20 other material as evidence of a good faith effort to comply with the 21 provisions of this article without, in fact, having entered into any 22 contract, agreement, subcontract, or sub-agreement with an MWBE for the 23 use or purchase of such business enterprise's goods or services in the 24 performance of the awarded state contract. 25 c. fail to provide an MWBE with sufficient information or other 26 required supporting documentation in order for the MWBE to prepare a 27 proper bid. 28 2. Upon receipt by the director of a complaint by a contracting agency 29 that a contractor has violated the provisions of a state contract which 30 have been included to comply with the provisions of this article or of a 31 contractor that a contracting agency has violated such provisions or has 32 failed or refused to issue a waiver where one has been applied for 33 pursuant to subdivision six of section three hundred thirteen of this 34 article or has denied such application, the director shall attempt to 35 resolve the matter giving rise to such complaint. If efforts to resolve 36 such matter to the satisfaction of all parties are unsuccessful, the 37 director shall refer the matter, within thirty days of the receipt of 38 the complaint, to the division's hearing officers. Upon conclusion of 39 the administrative hearing, the hearing officer shall submit to the 40 director his or her decision regarding the alleged violation of the 41 contract and recommendations regarding the imposition of sanctions, 42 fines or penalties. The director, within ten days of receipt of the 43 decision, shall file a determination of such matter and shall cause a 44 copy of such determination along with a copy of this article to be 45 served upon the contractor by personal service or by certified mail 46 return receipt requested. The decision of the hearing officer shall be 47 final and may only be vacated or modified as provided in article seven- 48 ty-eight of the civil practice law and rules upon an application made 49 within the time provided by such article. The determination of the 50 director as to the imposition of any fines, sanctions or penalties shall 51 be reviewable pursuant to article seventy-eight of the civil practice 52 law and rules. The penalties imposed for any violation which is premised 53 upon either a fraudulent or intentional misrepresentation by the 54 contractor or the contractor's willful and intentional disregard of the 55 minority and women-owned participation requirement included in the 56 contract may include a determination that the contractor shall be ineli-S. 3919--A 8 1 gible to submit a bid to any contracting agency or be awarded any such 2 contract for a period not to exceed one year following the final deter- 3 mination; provided however, if a contractor has previously been deter- 4 mined to be ineligible to submit a bid pursuant to this section, the 5 penalties imposed for any subsequent violation, if such violation occurs 6 within five years of the first violation, may include a determination 7 that the contractor shall be ineligible to submit a bid to any contract- 8 ing agency or be awarded any such contract for a period not to exceed 9 five years following the final determination. The division of minority 10 and women's business development shall maintain a website listing all 11 contractors that have been deemed ineligible to submit a bid pursuant to 12 this section and the date after which each contractor shall once again 13 become eligible to submit bids. 14 3. The director shall impose a sanction, penalty, or fine on any 15 individual or entity that has three or more violations of this article 16 within five years. Such fine shall be paid by such individual or entity. 17 Such fine shall be remitted and deposited into a fund, to be managed by 18 the commissioner of economic development. Such funds shall be used to 19 subsidize the facilitation of the provisions of this article. Other 20 sanctions shall include barring such entity or individual from contract- 21 ing with such agency for a period not to exceed five years. 22 § 7. Subdivision 1 of section 137 of the state finance law, as sepa- 23 rately amended by section 17 of part MM of chapter 57 and chapter 619 of 24 the laws of 2008, is amended to read as follows: 25 1. In addition to other bond or bonds, if any, required by law for the 26 completion of a work specified in a contract for the prosecution of a 27 public improvement for the state of New York a municipal corporation, a 28 public benefit corporation or a commission appointed pursuant to law, or 29 in the absence of any such requirement, the comptroller may or the other 30 appropriate official, respectively, shall nevertheless require prior to 31 the approval of any such contract a bond guaranteeing prompt payment of 32 moneys due to all persons furnishing labor or materials to the contrac- 33 tor or any subcontractors in the prosecution of the work provided for in 34 such contract. Whenever a municipal corporation issues a permit subject 35 to compliance with section two hundred twenty of the labor law, such 36 permittee or its contractor or subcontractors furnishing workers shall 37 post a payment bond subject to this section. Provided, however, that all 38 performance bonds and payment bonds may, at the discretion of the head 39 of the state agency, public benefit corporation or commission, or his or 40 her designee, be dispensed with for the completion of a work specified 41 in a contract for the prosecution of a public improvement for the state 42 of New York for which bids are solicited where the aggregate amount of 43 the contract is under one hundred thousand dollars and provided further, 44 that in a case where the contract is not subject to the multiple 45 contract award requirements of section one hundred thirty-five of this 46 article, such requirements may be dispensed with where the head of the 47 state agency, public benefit corporation or commission finds it to be in 48 the public interest and where the aggregate amount of the contract 49 awarded or to be awarded is less than two hundred thousand dollars. In a 50 case where a contract is awarded to a small business concern or to a 51 minority or women-owned business concern, all performance bonds and 52 payment bonds may be dispensed with when the aggregate amount of the 53 contract is under five hundred thousand dollars. Advertisements for bids 54 shall provide information as to the requirements for, or dispensation 55 of, performance and payment bonds. Provided further, that in a case 56 where a performance or payment bond is dispensed with, twenty per centumS. 3919--A 9 1 may be retained from each progress payment or estimate until the entire 2 contract work has been completed and accepted, at which time the head of 3 the state agency, public benefit corporation or commission shall, pend- 4 ing the payment of the final estimate, pay not to exceed seventy-five 5 per centum of the amount of the retained percentage. 6 § 8. Subdivision 4 of section 139-f of the state finance law, as 7 amended by chapter 83 of the laws of 1995, is amended to read as 8 follows: 9 4. Notwithstanding any other provision of this section or other law, 10 requirements for the furnishing of a performance bond or a payment bond 11 may be dispensed with at the discretion of the head of the state agency 12 or corporation, or his or her designee, where the public owner is a 13 state agency or corporation described in subdivision one-a of this 14 section and the aggregate amount of the contract awarded or to be 15 awarded is under fifty thousand dollars and, in a case where the 16 contract is not subject to the multiple contract award requirements of 17 section one hundred thirty-five of this article, such requirements may 18 be dispensed with where the head of the state agency or corporation 19 finds it to be in the public interest and where the aggregate amount of 20 the contract awarded or to be awarded is under two hundred thousand 21 dollars. In a case where a contract is awarded to a small business 22 concern or to a minority or women-owned business concern, all perform- 23 ance bonds and payment bonds may be dispensed with when the aggregate 24 amount of the contract is under five hundred thousand dollars. Adver- 25 tisements for proposals shall provide information as to the requirements 26 for, or dispensation of, performance and payment bonds. Provided 27 further, that in a case where a performance or payment bond is dispensed 28 with, twenty per centum may be retained from each progress payment or 29 estimate until the entire contract work has been completed and accepted, 30 at which time the head of the state agency or corporation shall, pending 31 the payment of the final estimate, pay not to exceed seventy-five per 32 centum of the amount of the retained percentage. 33 § 9. The opening paragraph of section 139-g of the state finance law, 34 as amended by chapter 636 of the laws of 2003, is amended to read as 35 follows: 36 In every state agency, department and authority which has let more 37 than two million dollars in service and construction contracts and state 38 assisted project contracts in the prior fiscal year, the chief executive 39 officer of that agency, department or authority shall, with respect to 40 those contracts and state assisted project contracts let by his or her 41 agency, department or authority: 42 § 10. The opening paragraph of subdivision (b) of section 139-g of the 43 state finance law, as amended by chapter 636 of the laws of 2003, is 44 amended to read as follows: 45 identify all small-business and certified women and minority-owned 46 business concerns which, in the judgment of the chief executive officer 47 of that agency, department or authority, can bid on those contracts and 48 state assisted project contracts which are usually and customarily let 49 by that agency, department or authority, or in which that authority 50 provides a grant or loan or tax exempt financing, with a reasonable 51 expectation of success. Such chief executive officers shall carry out 52 the provisions of this subdivision: 53 § 11. Section 139-g of the state finance law is amended by adding a 54 new subdivision (e) to read as follows: 55 (e) for the purposes of this section, the following words shall have 56 the following meanings:S. 3919--A 10 1 (i) "State assisted project contract" shall mean any written agreement 2 arising out of a state assisted housing project or state assisted 3 economic development project or state assisted higher education project 4 or state assisted hospital or health care facility project, for which 5 the total project cost exceeds two million dollars and for which the 6 project owner is committed to spend or does expend funds for the acqui- 7 sition, construction, demolition, replacement, major repair, or reno- 8 vation of real property and improvements thereon for such project. 9 (ii) "State assisted housing project" shall mean those projects which 10 receive from the New York state housing finance agency tax-exempt 11 financing for all or part of the total project cost. 12 (iii) "State assisted economic development project" shall mean those 13 projects which receive from the New York foundation of science technolo- 14 gy and innovation, or the urban development corporation and its subsid- 15 iaries a grant or loan or tax-exempt financing for all or part of the 16 total project cost. 17 (iv) "State assisted higher education project" shall mean those 18 projects which receive from the dormitory authority of the state of New 19 York a grant or loan or tax-exempt financing for all or part of the 20 total project cost. 21 (v) "State assisted hospital or health care facility project" shall 22 mean those projects which receive from the dormitory authority of the 23 state of New York a grant or loan or tax-exempt financing for all or 24 part of the total project cost. 25 § 12. This act shall take effect immediately, provided however, the 26 amendments to article 15-A of the executive law made by sections one 27 through six of this act shall not affect the expiration of such article 28 and shall expire therewith.
