Increases the threshold for office of the comptroller review of the metropolitan transportation authority discretionary awards to MWBEs and small businesses from one million dollars to one million five hundred thousand dollars.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7173
SPONSOR: Bichotte Hermelyn TITLE OF BILL:
An act to amend the public authorities law, in relation to modernizing
the metropolitan transportation authority's small business mentoring
program
PURPOSE OR GENERAL IDEA OF BILL:
This bill will increase the effective threshold for OSC review of MTA
discretionary awards to MWBEs, SDVOBs and small businesses from $1
million to $1.5 million.
SUMMARY OF PROVISIONS:
Section 1 of the bill amends subdivision 15 of section 1209 of the
public authorities' law to increase the threshold for Comptroller review
from $1 million to $1.5 million for MTA contracts.
Section 2 of the bill amends subdivision 10, section 1265-a of the
public authorities law to increase the threshold for Comptroller review
from $1 million to $1.5 million for MTA contracts.
Section 3 provides an immediate effective date.
JUSTIFICATION:
Last year, the legislature increased the existing statutory threshold in
section 1265-a(2)(b) of the PAL from $1 million $1.5 million. This
allows MTA to award discretionary contracts to MWBEs, SDVOBs and small
businesses up to $1.5 million using an informal, streamlined competitive
process. Only MWBEs, SDVOBs or small businesses are allowed to compete
for discretionary awards. However, under current law (section 2879-a of
the PAL) the Comptroller (OSC) may review any contract over $1 million
that is not publicly advertised and open to any firm to submit bids.
This makes discretionary contracts between $1.0 and $1.5 million subject
to review by OSC prior to award. OSC review adds time and considerable
administrative effort to the process of awarding discretionary
contracts, which discourages their use. Therefore, amending sections
1265-a (10) and 1209(15) of the Public Authorities Law, which govern how
section 2879-a applies to MTA contracts, to increase the threshold for
Comptroller review from $1 million to $1.5 million for MTA contracts.
The proposed threshold increase is justified by inflation. The $1
million threshold in section 2879-a was set in 2011. Since that time,•
the Consumer Price Index has increased by 35%. One year o f continued
inflation at current rates will make the $1 million in 2011 dollars
approximately equivalent to $1.5 million today.
LEGISLATIVE HISTORY:
01/03/24: Referred to corporations, authorities and commissions
05/10/23: Referred to corporations, authorities and commissions
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
7173
2025-2026 Regular Sessions
IN ASSEMBLY
March 21, 2025
___________
Introduced by M. of A. BICHOTTE HERMELYN -- read once and referred to
the Committee on Corporations, Authorities and Commissions
AN ACT to amend the public authorities law, in relation to modernizing
the metropolitan transportation authority's small business mentoring
program
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 15 of section 1209 of the public authorities
2 law is amended by adding a new paragraph (c) to read as follows:
3 (c) Subdivision one of section twenty-eight hundred seventy-nine-a of
4 this chapter shall only apply to authority contracts with an estimated
5 value greater than one million five hundred thousand dollars.
6 § 2. Subdivision 10 of section 1265-a of the public authorities law is
7 amended by adding a new paragraph (c) to read as follows:
8 (c) Subdivision one of section twenty-eight hundred seventy-nine-a of
9 this chapter shall only apply to authority contracts with an estimated
10 value greater than one million five hundred thousand dollars.
11 § 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06022-01-5
