New York State Assembly Member Rodneyse Bichotte Hermelyn and New York State Senator James Sanders Jr. have jointly introduced legislation which aims at boosting utilization of minority- and woman-owned businesses (MWBEs) in New York City contracting. The legislation is supported by New York City Mayor Bill de Blasio.
The bill consists of three measures: the first being increasing the threshold below which New York City agencies are allowed to make discretionary purchases from MWBEs without a formal competitive bidding process, from $500,000 to $1,000,000. The current threshold of $500,000 was set in 2019, and when it was increased at that time (from $200,000, MWBE utilization grew by 20 percent in the subsequent year. The second measure consists of authorizing the City of New York to utilize various forms of "alternative risk transfer" in contracting on projects with MWBE goals, including the use of a captive insurance company; this method would make it feasible to consolidate insurance polices among all subcontractors on a given project with such goals. The third measure allows for businesses which implement "sound diversity practices" to receive extra points on City contract bids.
"The MWBE Opportunity Expansion Act [...] will generate more jobs in our communities, for the people who need them most," said Assembly Member Bichotte Hermelyn in a statement.
Read a press release from the Mayor's Office at https://www1.nyc.gov/office-of-the-mayor/news/370-21/recovery-all-us-mayor-de-blasio-calls-state-legislature-pass-community-hiring-and.
Read the legislation at https://nyassembly.gov/leg/?default_fld=&leg_video=&bn=A07266. Read more at https://www.amny.com/news/mayor-de-blasio-announces-mwbe-and-community-hiring-bills/amp/.
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