STATE OF NEW YORK ________________________________________________________________________ 6630 2025-2026 Regular Sessions IN SENATE March 19, 2025 ___________ Introduced by Sens. JACKSON, COMRIE, FERNANDEZ, LIU, PARKER, WEBB -- read twice and ordered printed, and when printed to be committed to the Committee on Procurement and Contracts 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 estab- lishing a mentor-protege program for small and minority and women- owned business concerns and in relation to performance 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 (g) of subdivision 3 as amended by section 1 of part BB 5 of chapter 59 of the laws of 2006, paragraphs (f), (h), (i), (j), (k), 6 (l) and (m) of subdivision 3 as amended by chapter 40 of the laws of 7 2023, subdivision 4 as amended by chapter 361 of the laws of 2009 and 8 the opening paragraph of subdivision 4 as amended and paragraph (d-1) of 9 subdivision 3 and paragraphs (d) and (e) of subdivision 4 as added by 10 chapter 96 of the laws of 2019, are amended to 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; 20 (c) to conduct educational outreach programs to encourage the certif- 21 ication of minority and women-owned business enterprises consistent with 22 the purposes of this article; EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06185-01-5
S. 6630 2 1 (d) to review [periodically] quarterly the practices and procedures of 2 each contracting agency with respect to compliance with the provisions 3 of this article, and to require them to file [periodic] quarterly 4 reports with the division of minority and women's business development 5 as to the level of minority and women-owned business enterprises partic- 6 ipation in the awarding of agency contracts for goods and services 7 including but not limited to the number of state contracts awarded to 8 certified minority or women-owned business enterprises, the maximum 9 dollar amount obligated pursuant to all those contracts, and the total 10 expenditures made pursuant to all such contracts; the number of state 11 contracts awarded to certified minority or women-owned business enter- 12 prises, the maximum dollar amount obligated pursuant to all those 13 contracts, and the total expenditures made pursuant to all such 14 contracts; the number of state contracts awarded which include a utili- 15 zation plan for business participation by certified minority or women- 16 owned business enterprises, the maximum amount obligated pursuant to 17 those contracts, and the total expenditures made pursuant to all such 18 contracts; the number of state contracts awarded upon which a waiver was 19 granted from goals required by the contracts for business participation 20 by certified minority or women-owned business enterprises, and the maxi- 21 mum amount obligated pursuant to those contracts; the number of state 22 contracts awarded which required goals for employment of minority group 23 members and women; and the number of state contracts awarded for which 24 waivers of employment 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] minority and women-owned business enter- 28 prises with respect to state contracts and subcontracts. Every four 29 years, beginning September fifteenth, two thousand twenty, each 30 contracting state agency shall submit a four-year growth plan as part of 31 its annual report to the governor and legislature pursuant to section 32 one hundred sixty-four of 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 or women-owned business 41 enterprises, the maximum dollar amount obligated pursuant to all those 42 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 (e-1) the director shall list in the division's annual report the 53 names 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 state
S. 6630 3 1 agencies required to file quarterly compliance reports and shall attach 2 such list to the division's annual report; 3 (f) 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, (i) make publicly available records of all 6 certifications and recertifications, (ii) be divided into categories of 7 labor, services, supplies, equipment, materials and recognized 8 construction trades, and (iii) indicate areas or locations of the state 9 where such enterprises are available to perform services; 10 (g) to appoint independent hearing officers who by contract or terms 11 of employment shall preside over adjudicatory hearings pursuant to 12 section three hundred fourteen of this article for the office and who 13 are assigned no other work by the office; 14 (h) to make publicly available on the division's website records of 15 all revocations of certification for convictions for fraudulently 16 misrepresenting the status of minority or women-owned business enter- 17 prises or for evidence of fraudulent conduct with regard to partic- 18 ipation of a minority or women-owned business enterprise in the perform- 19 ance of state contracts and the reasoning for such revocations after a 20 final determination has been made, provided that information falling 21 into the categories enumerated in paragraphs (a) through (j) of subdivi- 22 sion two of section eighty-seven of the public officers law shall be 23 withheld; 24 (i) notwithstanding the provisions of section two hundred ninety-six 25 of this chapter, to file a complaint pursuant to the provisions of 26 section two hundred ninety-seven of this chapter where the director has 27 knowledge that a contractor may have violated the provisions of para- 28 graph (a), (b) or (c) of subdivision one of section two hundred ninety- 29 six of this chapter where such violation is unrelated, separate or 30 distinct from the state contract as expressed by its terms; 31 (j) to streamline the state certification process to accept federal 32 and municipal corporation certifications; 33 (k) to make publicly available on the division's website records of 34 all waivers of compliance reported pursuant to paragraph (b) of subdivi- 35 sion six of section three hundred thirteen of this article, including 36 the reasoning for denial of such waivers after a final determination has 37 been made, provided that information falling into the categories enumer- 38 ated in paragraphs (a) through (j) of subdivision two of section eight- 39 y-seven of the public officers law shall be withheld; 40 (l) to work in conjunction with the industrial commissioner pursuant 41 to paragraph (j) of subdivision one of section eight hundred eleven of 42 the labor law to assist contractors in identifying minority group 43 members and women who are participating in apprenticeship agreements 44 under article twenty-three of the labor law; and 45 (m) to coordinate with appropriate offices, agencies, or authorities, 46 where applicable, to conduct site visits or perform inspections of 47 financial records of minority or women-owned business enterprises in 48 accordance with this article and the regulations of the director. 49 4. The director shall provide assistance to, and facilitate access to 50 programs serving certified businesses as well as applicants to ensure 51 that such businesses benefit, as needed, from technical, managerial and 52 financial, and general business assistance; training; marketing; organ- 53 ization and personnel skill development; project management assistance; 54 technology assistance; bond and insurance education assistance; and 55 other business development assistance. The director shall maintain a 56 toll-free number at the department of economic development to be used to
S. 6630 4 1 answer questions concerning the MWBE certification process. In addition, 2 the director [may] shall, either independently or in conjunction with 3 other state agencies: 4 (a) develop a clearinghouse of information on programs and services 5 provided by entities that may assist such businesses; 6 (b) review bonding and paperwork requirements imposed by contracting 7 agencies that may unnecessarily impede the ability of such businesses to 8 compete; [and] 9 (c) seek to maximize utilization by minority and women-owned business 10 enterprises of available federal resources including but not limited to 11 federal grants, loans, loan guarantees, surety bonding guarantees, tech- 12 nical assistance, and programs and services of the federal small busi- 13 ness administration[.]; 14 (d) conduct outreach events, training workshops, seminars, and other 15 such educational programs throughout the state, including all regional 16 offices, to state agencies, external stakeholders, and the public, to 17 promote awareness and utilization of minority and women-owned business 18 enterprises; and 19 (e) identify and establish mentorship opportunities and other business 20 development programs to increase capacity and better prepare MWBEs for 21 bidding on contracts with state agencies upon successful completion of 22 the mentorship opportunity. Such mentorship opportunities shall be 23 intended to ensure that mentor and mentee are connected based on a 24 commercially useful function. 25 § 2. Subdivision 5 of section 312 of the executive law, as added by 26 chapter 261 of the laws of 1988, is amended to read as follows: 27 5. The director shall promulgate rules and regulations to ensure that 28 contractors and subcontractors undertake programs of affirmative action 29 and equal employment opportunity as required by this section. Such rules 30 and regulations as they pertain to any particular agency shall be devel- 31 oped after consultation with contracting agencies. Such rules and regu- 32 lations [may] shall require a contractor, after notice in a bid solic- 33 itation, to submit an equal employment opportunity program [after bid 34 opening and prior to the award of any contract] at the time bids are 35 submitted, and [may] shall require the contractor or subcontractor to 36 submit compliance reports relating to the contractor's or subcontrac- 37 tor's operation and implementation of any equal employment opportunity 38 program in effect as of the date the contract is executed. The contract- 39 ing agency [may recommend to the director that] shall have the right to 40 recommend that the director take appropriate action according to the 41 procedures set forth in section three hundred sixteen of this article 42 against the contractor for noncompliance with the requirements of this 43 section. The contracting agency shall be responsible for monitoring 44 compliance with this section. 45 § 3. Subdivisions 2-a, 3 and paragraph (a) of subdivision 5 of section 46 313 of the executive law, subdivisions 2-a and 3 as amended by chapter 47 96 of the laws of 2019, and paragraph (a) of subdivision 5 as amended by 48 chapter 40 of the laws of 2023, are amended to read as follows: 49 2-a. The director shall promulgate rules and regulations that will 50 accomplish the following: 51 (a) provide for the certification and decertification of minority and 52 women-owned business enterprises for all agencies through a single proc- 53 ess that meets applicable requirements; 54 (b) require that each contract solicitation document accompanying each 55 solicitation set forth the expected degree of minority and women-owned 56 business enterprise participation based, in part, on:
S. 6630 5 1 (i) the potential subcontract opportunities available in the prime 2 procurement contract; 3 (ii) the availability, as contained within the study, of certified 4 minority and women-owned business enterprises to respond competitively 5 to the potential subcontract opportunities as reflected in the divi- 6 sion's directory of certified minority and women-owned business enter- 7 prises; and 8 (iii) the findings of the disparity study; 9 (c) require that each agency provide a current list of certified 10 minority business enterprises to each prospective contractor or direct 11 them to the division's directory of certified minority and women-owned 12 business enterprises for such purpose; 13 (d) allow a contractor that is a certified [minority-owned] minority 14 or women-owned business enterprise to use the work it performs to meet 15 requirements for use of certified [minority-owned] minority or women- 16 owned business enterprises as subcontractors; 17 (e) establish criteria for agencies to credit the participation of 18 minority and women-owned business enterprises towards the achievement of 19 the minority and women-owned business enterprise participation goals on 20 a state contract based on the commercially useful function provided by 21 each minority and women-owned business enterprise on the contract; 22 (f) provide for joint ventures, which a bidder may count toward meet- 23 ing its minority and women-owned business enterprise participation; 24 (g) consistent with subdivision six of this section, provide for 25 circumstances under which an agency may waive obligations of the 26 contractor relating to minority and women-owned business enterprise 27 participation; 28 (h) require that an agency verify that minority and women-owned busi- 29 ness enterprises listed in a successful bid are actually participating 30 to the extent listed in the project for which the bid was submitted; 31 (i) provide for the collection of statistical data by each agency 32 concerning actual minority and women-owned business enterprise partic- 33 ipation; 34 (j) require each agency to consult the most current disparity study 35 when calculating agency-wide and contract specific participation goals 36 pursuant to this article; [and] 37 (k) encourage joint ventures, partnerships, and mentor-protege 38 relationships as defined in section one hundred forty-seven of the state 39 finance law, between prime contractors and minority and women-owned 40 business enterprises; and 41 Such rules shall set forth the maximum personal net worth of a minori- 42 ty group member or woman who may be relied upon to certify a business as 43 a business enterprise or women-owned business enterprise, and may estab- 44 lish different maximum levels of personal net worth for minority group 45 members and women on an industry-by-industry basis for such industries 46 as the director shall determine. Such regulations relating to the clas- 47 sification of the industry-by-industry personal net worth thresholds 48 above the fifteen million dollar threshold shall consider the personal 49 net worth of the owners of both certified and non-certified businesses, 50 including but not limited to, prime contractors and subcontractors, as 51 well as any such other factors needed to establish such thresholds. The 52 provisions of the regulations pertaining to personal net worth shall, to 53 the extent practicable, be implemented by June thirtieth, two thousand 54 twenty and shall consider adjustments for inflation annually on January 55 first of the previous year according to the consumer price index.
S. 6630 6 1 3. Solely for the purpose of providing the opportunity for meaningful 2 participation by certified businesses in the performance of state 3 contracts as provided in this section, state contracts shall include 4 leases of real property by a state agency to a lessee where: the terms 5 of such leases provide for the construction, demolition, replacement, 6 major repair or renovation of real property and improvements thereon by 7 such lessee; and the cost of such construction, demolition, replacement, 8 major repair or renovation of real property and improvements thereon 9 shall exceed the sum of one hundred thousand dollars. Reports to the 10 director pursuant to section three hundred fifteen of this article shall 11 include activities with respect to all such state contracts. Contracting 12 agencies shall include or require to be included with respect to state 13 contracts for the acquisition, construction, demolition, replacement, 14 major repair or renovation of real property and improvements thereon, 15 such provisions as [may] shall be necessary to effectuate the provisions 16 of this section in every bid specification and state contract, includ- 17 ing, but not limited to: (a) provisions requiring contractors to make a 18 good faith effort to solicit active participation by enterprises identi- 19 fied in the directory of certified businesses; (b) requiring the parties 20 to agree as a condition of entering into such contract, to be bound by 21 the provisions of section three hundred sixteen of this article; and (c) 22 requiring the contractor to include the provisions set forth in para- 23 graphs (a) and (b) of this subdivision in every subcontract in a manner 24 that the provisions will be binding upon each subcontractor as to work 25 in connection with such contract. Provided, however, that no such 26 provisions shall be binding upon contractors or subcontractors in the 27 performance of work or the provision of services that are unrelated, 28 separate or distinct from the state contract as expressed by its terms, 29 and nothing in this section shall authorize the director or any 30 contracting agency to impose any requirement on a contractor or subcon- 31 tractor except with respect to a state contract. 32 (a) Contracting agencies shall administer the rules and regulations 33 promulgated by the director in a good faith effort to achieve the maxi- 34 mum feasible participation by minority and [women owned] women-owned 35 business enterprises adopted pursuant to this article and the regu- 36 lations of the director. Such rules and regulations: shall require a 37 contractor to submit a utilization plan [after bids are opened] at the 38 time bids are submitted, when bids are required[, but prior to the award 39 of a state contract]; shall require the contracting agency to review the 40 utilization plan submitted by the contractor and to post the utilization 41 plan and any waivers of compliance issued pursuant to subdivision six of 42 this section on the website of the contracting agency; shall require the 43 contracting agency to notify the contractor in writing within a period 44 of time specified by the director as to any deficiencies contained in 45 the contractor's utilization plan; shall require remedy thereof within a 46 period of time specified by the director; shall require the contractor 47 to submit quarterly compliance reports relating to the operation and 48 implementation of any utilization plan; shall not allow any automatic 49 waivers but shall allow a contractor to apply for a partial or total 50 waiver of the minority and women-owned business enterprise participation 51 requirements pursuant to subdivisions six and seven of this section; 52 shall allow a contractor to file a complaint with the director pursuant 53 to subdivision eight of this section in the event a contracting agency 54 has failed or refused to issue a waiver of the minority and women-owned 55 business enterprise participation requirements or has denied such 56 request for a waiver; and shall allow a contracting agency to file a
S. 6630 7 1 complaint with the director pursuant to subdivision nine of this section 2 in the event a contractor is failing or has failed to comply with the 3 minority and women-owned business enterprise participation requirements 4 set forth in the state contract where no waiver has been granted. 5 § 4. Subdivisions 1 and 3 of section 315 of the executive law, as 6 amended by chapter 96 of the laws of 2019, are amended to read as 7 follows: 8 1. Each contracting agency shall be responsible for monitoring state 9 contracts under its jurisdiction, and recommending matters to the office 10 respecting non-compliance with the provisions of this article so that 11 the office [may] shall take such action as [is appropriate] stated in 12 subdivision four of section three hundred sixteen of this article. Each 13 contracting agency shall have the right to recommend that the director 14 impose a sanction, penalty, or fine for three or more violations of 15 section three hundred sixteen of this article, to ensure compliance with 16 the provisions of this article, the rules and regulations of the direc- 17 tor issued hereunder and the contractual provisions required pursuant to 18 this article. All contracting agencies shall comply with the rules and 19 regulations of the office and are directed to cooperate with the office 20 and to furnish to the office such information and assistance as may be 21 required in the performance of its functions under this article. 22 3. [Each contracting agency shall report to the director with respect 23 to activities undertaken to promote employment of minority group members 24 and women and promote and increase participation by certified businesses 25 with respect to state contracts and subcontracts. Such reports shall be 26 submitted no later than May fifteenth of every year and shall include 27 such information as is necessary for the director to determine whether 28 the contracting agency and any contractor to the contracting agency have 29 complied with the purposes of this article, including, without limita- 30 tion, a summary of all waivers of the requirements of subdivisions six 31 and seven of section three hundred thirteen of this article allowed by 32 the contracting agency during the period covered by the report, includ- 33 ing a description of the basis of the waiver request and the rationale 34 for granting any such waiver and any instances in which the contract 35 agency has deemed a contractor to have committed a violation pursuant to 36 section three hundred sixteen of this article and such other information 37 as the director shall require. Each agency shall also include in such 38 annual report whether or not it has been required to prepare a remedial 39 plan, and, if so, the plan and the extent to which the agency has 40 complied with each element of the plan.] (a) Each contracting agency 41 shall prepare a quarterly report and submit copies to the commissioner 42 of economic development, the commissioner of general services, and the 43 director as to the level of minority and women-owned business enter- 44 prises participation in the awarding of agency contracts for goods and 45 services, including but not limited to, the number of state contracts 46 awarded to certified minority or women-owned business enterprises; the 47 maximum dollar amount obligated pursuant to such contracts, and the 48 total expenditures made pursuant to all such contracts; the number of 49 state contracts awarded upon which a waiver was granted from goals 50 required by the contracts for business participation by certified minor- 51 ity or women-owned business enterprises, and the maximum amount obli- 52 gated pursuant to such contracts; the number of state contracts awarded 53 which required goals for employment of minority group members and women; 54 and the number of state contracts awarded for which waivers of employ- 55 ment goals required by the contracts have been granted.
S. 6630 8 1 (b) In addition, each contracting agency shall be responsible for the 2 cost of an independent audit resulting from the agency's repeated 3 violations of this section. 4 (c) Within thirty days after completion, a copy of the quarterly 5 minority and women-owned business enterprise report shall be transmitted 6 to the commissioner of economic development, the commissioner of general 7 services, and the director. A contracting agency, which has not let more 8 than two million dollars in service and/or construction contracts within 9 the applicable period may apply to the commissioner of economic develop- 10 ment, and the director for a waiver of the required annual report. The 11 waiver application shall be made on such form as the commissioner of 12 economic development and the director may prescribe. 13 (d) If a contracting agency shall fail to file or substantially 14 complete, as determined by the commissioner of economic development and 15 the director, the report required by this section, the director shall 16 provide notice to the contracting agency. The notice shall state the 17 following: 18 (i) that the failure to file a report as required is a violation of 19 this section, or in case of an insufficient report, the manner in which 20 the report submitted is deficient; 21 (ii) that the contracting agency has thirty days to comply with this 22 section or provide an adequate written explanation to the commissioner 23 of economic development, the commissioner of general services and the 24 director of the contracting agency's reasons for the inability to 25 comply; and 26 (iii) that the contracting agency's continued failure to provide 27 either the required report or an adequate explanation will result in an 28 independent audit of the contracting agency, the cost of which shall be 29 borne by the contracting agency. 30 § 5. Section 316 of the executive law, as amended by chapter 567 of 31 the laws of 2022, is amended to read as follows: 32 § 316. [Enforcement] Violations and enforcement. 1. It shall be a 33 violation for any person or entity to: 34 (a) intentionally use or acquire an MWBE name through deceit or other 35 dishonest means in order to negotiate a lower bid from a non-MWBE. 36 (b) submit to the department of economic development, documents or 37 other material as evidence of a good faith effort to comply with the 38 provisions of this article without, in fact, having entered into any 39 contract, agreement, subcontract, or sub-agreement with an MWBE for the 40 use or purchase of such business enterprise's goods or services in the 41 performance of the awarded state contract. 42 (c) fail to provide an MWBE with sufficient information or other 43 required supporting documentation in order for the MWBE to prepare a 44 proper bid. 45 2. Upon receipt by the director of a complaint by a contracting agency 46 that a contractor has violated the provisions of a state contract which 47 have been included to comply with the provisions of this article or of a 48 contractor that a contracting agency has violated such provisions or has 49 failed or refused to issue a waiver where one has been applied for 50 pursuant to subdivision six of section three hundred thirteen of this 51 article or has denied such application, the director shall attempt to 52 resolve the matter giving rise to such complaint. If efforts to resolve 53 such matter to the satisfaction of all parties are unsuccessful, the 54 director shall refer the matter, within thirty days of the receipt of 55 the complaint, to the division's hearing officers. Upon conclusion of 56 the administrative hearing, the hearing officer shall submit to the
S. 6630 9 1 director [his or her] such hearing officer's decision regarding the 2 alleged violation of the contract and recommendations regarding the 3 imposition of sanctions, fines or penalties. The director, within ten 4 days of receipt of the decision, shall file a determination of such 5 matter and shall cause a copy of such determination along with a copy of 6 this article to be served upon the contractor by personal service or by 7 certified mail return receipt requested. The decision of the hearing 8 officer shall be final and may only be vacated or modified as provided 9 in article seventy-eight of the civil practice law and rules upon an 10 application made within the time provided by such article. The determi- 11 nation of the director as to the imposition of any fines, sanctions or 12 penalties shall be reviewable pursuant to article seventy-eight of the 13 civil practice law and rules. The penalties imposed for any violation 14 which is premised upon either a fraudulent or intentional misrepresen- 15 tation by the contractor or the contractor's willful and intentional 16 disregard of the minority and women-owned participation requirement 17 included in the contract may include a determination that the contractor 18 shall be ineligible to submit a bid to any contracting agency or be 19 awarded any such contract for a period not to exceed one year following 20 the final determination; provided however, if a contractor has previous- 21 ly been determined to be ineligible to submit a bid pursuant to this 22 section, the penalties imposed for any subsequent violation, if such 23 violation occurs within five years of the first violation, may include a 24 determination that the contractor shall be ineligible to submit a bid to 25 any contracting agency or be awarded any such contract for a period not 26 to exceed five years following the final determination. The division of 27 minority and women's business development shall maintain a website list- 28 ing all contractors that have been deemed ineligible to submit a bid 29 pursuant to this section and the date after which each contractor shall 30 once again become eligible to submit bids. 31 [2.] 3. Any fines, or portion thereof, imposed pursuant to the forego- 32 ing subdivision, or imposed by a court of competent jurisdiction related 33 to convictions involving fraud related to this article or otherwise 34 involving a minority or women-owned business enterprise, may be required 35 by the entity imposing such fines to be paid to the minority and women- 36 owned business enterprise fund established pursuant to section ninety- 37 seven-k of the state finance law. 38 4. The director shall impose a sanction, penalty, or fine on any indi- 39 vidual or entity that has three or more violations of this article with- 40 in five years. Such fine shall be paid by such individual or entity. 41 Notwithstanding the provisions of subdivision three of this section, 42 such fine shall be remitted and deposited into a fund, to be managed by 43 the commissioner of economic development. Such funds shall be used to 44 subsidize the facilitation of the provisions of this article. Other 45 sanctions shall include barring such entity or individual from contract- 46 ing with such agency for a period not to exceed five years. 47 § 6. Subdivision 1 of section 137 of the state finance law, as sepa- 48 rately amended by section 17 of part MM of chapter 57 and by chapter 619 49 of the laws of 2008, is amended to read as follows: 50 1. In addition to other bond or bonds, if any, required by law for the 51 completion of a work specified in a contract for the prosecution of a 52 public improvement for the state of New York a municipal corporation, a 53 public benefit corporation or a commission appointed pursuant to law, or 54 in the absence of any such requirement, the comptroller may or the other 55 appropriate official, respectively, shall nevertheless require prior to 56 the approval of any such contract a bond guaranteeing prompt payment of
S. 6630 10 1 moneys due to all persons furnishing labor or materials to the contrac- 2 tor or any subcontractors in the prosecution of the work provided for in 3 such contract. Whenever a municipal corporation issues a permit subject 4 to compliance with section two hundred twenty of the labor law, such 5 permittee or its contractor or subcontractors furnishing workers shall 6 post a payment bond subject to this section. Provided, however, that all 7 performance bonds and payment bonds may, at the discretion of the head 8 of the state agency, public benefit corporation or commission, or [his 9 or her] such head of the state agency, public benefit corporation or 10 commission's designee, be dispensed with for the completion of a work 11 specified in a contract for the prosecution of a public improvement for 12 the state of New York for which bids are solicited where the aggregate 13 amount of the contract is under one hundred fifty thousand dollars and 14 provided further, that in a case where the contract is not subject to 15 the multiple contract award requirements of section one hundred thirty- 16 five of this article, such requirements may be dispensed with where the 17 head of the state agency, public benefit corporation or commission finds 18 it to be in the public interest and where the aggregate amount of the 19 contract awarded or to be awarded is less than two hundred thousand 20 dollars. The head of the state agency, public benefit corporation or 21 commission, or such head of the state agency, public benefit corporation 22 or commission's designee, shall adjust the aggregate contract amounts 23 listed in this subdivision every year to account for increases in the 24 costs of construction. Advertisements for bids shall provide information 25 on the requirements for, or dispensation of, performance and payment 26 bonds. Provided further, that in a case where a performance or payment 27 bond is dispensed with, twenty per centum may be retained from each 28 progress payment or estimate until the entire contract work has been 29 completed and accepted, at which time the head of the state agency, 30 public benefit corporation or commission shall, pending the payment of 31 the final estimate, pay not to exceed seventy-five per centum of the 32 amount of the retained percentage. 33 § 7. Subdivision 4 of section 139-f of the state finance law, as 34 amended by chapter 83 of the laws of 1995, is amended to read as 35 follows: 36 4. Notwithstanding any other provision of this section or other law, 37 requirements for the furnishing of a performance bond or a payment bond 38 may be dispensed with at the discretion of the head of the state agency 39 or corporation, or [his or her] such head of the state agency or corpo- 40 ration's designee, where the public owner is a state agency or corpo- 41 ration described in subdivision one-a of this section and the aggregate 42 amount of the contract awarded or to be awarded is under fifty thousand 43 dollars and, in a case where the contract is not subject to the multiple 44 contract award requirements of section one hundred thirty-five of this 45 article, such requirements may be dispensed with where the head of the 46 state agency or corporation finds it to be in the public interest and 47 where the aggregate amount of the contract awarded or to be awarded is 48 under [two] three hundred thousand dollars. The head of the state agen- 49 cy, public benefit corporation or commission, or such head of the state 50 agency, public benefit corporation or commission's designee, shall 51 adjust the aggregate contract amounts listed in this subdivision every 52 year to account for increases in the costs of construction. Advertise- 53 ments for bids shall provide information on the requirements for, or 54 dispensation of, performance and payment bonds. Provided further, that 55 in a case where a performance or payment bond is dispensed with, twenty 56 per centum may be retained from each progress payment or estimate until
S. 6630 11 1 the entire contract work has been completed and accepted, at which time 2 the head of the state agency or corporation shall, pending the payment 3 of the final estimate, pay not to exceed seventy-five per centum of the 4 amount of the retained percentage. 5 § 8. The opening paragraph of section 139-g of the state finance law, 6 as amended by chapter 636 of the laws of 2003, is amended to read as 7 follows: 8 In every state agency, department and authority which has let more 9 than two million dollars in service and construction contracts and state 10 assisted project contracts in the prior fiscal year, the chief executive 11 officer of that agency, department or authority shall, with respect to 12 those contracts and state assisted project contracts let by [his] such 13 chief executive officer's agency, department or authority: 14 § 9. The opening paragraph of subdivision (b) of section 139-g of the 15 state finance law, as amended by chapter 636 of the laws of 2003, is 16 amended to read as follows: 17 identify all small-business and certified women and minority-owned 18 business concerns which, in the judgment of the chief executive officer 19 of that agency, department or authority, can bid on those contracts and 20 state assisted project contracts which are usually and customarily let 21 by that agency, department or authority, or in which that authority 22 provides a grant or loan or tax exempt financing, with a reasonable 23 expectation of success. Such chief executive officers shall carry out 24 the provisions of this subdivision: 25 § 10. Section 139-g of the state finance law is amended by adding a 26 new subdivision (e) to read as follows: 27 (e) For the purposes of this section, the following terms shall have 28 the following meanings: 29 (i) "State assisted project contract" shall mean any written agreement 30 arising out of a state assisted housing project or state assisted 31 economic development project or state assisted higher education project 32 or state assisted hospital or health care facility project, for which 33 the total project cost exceeds two million dollars and for which the 34 project owner is committed to spend or does expend funds for the acqui- 35 sition, construction, demolition, replacement, major repair, or reno- 36 vation of real property and improvements thereon for such project. 37 (ii) "State assisted housing project" shall mean those projects which 38 receive from the New York state housing finance agency tax-exempt 39 financing for all or part of the total project cost. 40 (iii) "State assisted economic development project" shall mean those 41 projects which receive from the New York foundation of science, technol- 42 ogy and innovation, or the urban development corporation and its subsid- 43 iaries a grant or loan or tax-exempt financing for all or part of the 44 total project cost. 45 (iv) "State assisted higher education project" shall mean those 46 projects which receive from the dormitory authority of the state of New 47 York a grant or loan or tax-exempt financing for all or part of the 48 total project cost. 49 (v) "State assisted hospital or health care facility project" shall 50 mean those projects which receive from the dormitory authority of the 51 state of New York a grant or loan or tax-exempt financing for all or 52 part of the total project cost. 53 § 11. This act shall take effect immediately; provided, however, that 54 the amendments to article 15-A of the executive law made by sections 55 one, two, three, four and five of this act shall not affect the expira- 56 tion of such article and shall be deemed repealed therewith.