Authorizes political subdivisions to award public contracts to participants of a MWBE program at a cost premium not to exceed ten percent of the lowest bid

2025 Regular Session Introduced by James Sanders

Allows cities, counties, and other local agencies to award public contracts to MWBE-certified firms with a premium up to 10% above the lowest bid.

REPORTED AND COMMITTED TO FINANCE

Summary of Bill S 6317

S 6317 would authorize political subdivisions to award public contracts to participants in a Minority/Women-owned Business Enterprise (MWBE) program at a cost premium not to exceed ten percent of the lowest bid.

Purpose and intent

Enable political subdivisions (cities, counties, towns, villages, and other local entities) to award contracts to MWBE program participants even when the bid is up to 10% higher than the lowest bid received.

Create a formal framework to recognize MWBE participation while limiting the additional cost to the public entity.

Key provisions

Allows contracting agencies to award public contracts to MWBE program participants.

The awarded price may include a premium capped at 10% above the lowest bid.

The policy applies specifically to participants in an MWBE program, leveraging MWBE certification to qualify for the premium-based award.

The bill is focused on procurement and contracting processes within political subdivisions.

Affected entities

Political subdivisions and their procurement/contracting offices.

MWBE program participants (certified minority- and/or woman-owned businesses).

General contractors and bidders competing for public contracts under MWBE participation rules.

Financial and procurement implications

The premium cap (10% of the lowest bid) establishes a defined upper bound on how much more a MWBE participant may be paid compared to the lowest bid.

Potential impact on bid competitiveness and project pricing, with MWBE participation favored through the premium mechanism within the cap.

As the bill advances to the Finance committee, fiscal impact considerations would be evaluated, including any impact on public project costs and MWBE program administration.

Procedural history and timeline

Introduced: March 10, 2025.

Legislative actions:

March 10, 2025: Referred to Procurement and Contracts.
May 28, 2025: Reported and Committed to Finance (listed twice in the record).

Current status: REPORTED AND COMMITTED TO FINANCE.

Next steps: If advanced, the bill would proceed through the Finance committee and, if favorable, to the full chamber for consideration.

Sponsors and related measures

Primary sponsor: James Sanders Jr.

Related/companion measures: A 7117 (companion bill in the Assembly).

Related prior-session bills: S 5094, S 2247, S 9869 (indicating ongoing interest in MWBE procurement preferences).

Notes: This summary reflects the bill’s stated language and status as of the provided actions.