Gov. Paterson Task Force Adopts Historic Guidelines

Albany - - Members of a state Task Force appointed by Gov. David Paterson adopted a set of historic recommendations today to boost the participation of financial services underwriting firms owned by minority members and women in the sale of New York State bonds.

The broad themes that run through the Minority and Women-Owned Business Enterprise (M/WBE) Task Force’s 30 recommendations include leveling the playing field, eliminating barriers to entry, providing opportunities to firms to demonstrate their qualifications, skills and expertise, and measuring performance.

Under the recommendations, every issuer of state-supported debt would adopt an aspirational goal of achieving 20-percent participation by M/WBE underwriting firms in state bond financings subject to final legal clearance by the Task Force. Progress toward that goal will be initially monitored by the Task Force.

Gov. Paterson created the Task Force in June under Executive Order 10 and named Dormitory Authority Executive Director Paul T. Williams Jr., to chair it. When he announced the Task Force, Gov. Paterson noted that minority and women-owned firms served as senior managers or co-senior managers in only 4 percent of the $22 billion in state bond transactions since 2004 and that New York lagged behind other states in creating opportunities for M/WBE financial services firms. He charged the Task Force with creating an approach to improve New York’s performance.

“We are making history here today,” said Gov. Paterson of the Task Force’s work. “New York is the center of the global financial services industry and these guidelines will help ensure that we create greater opportunity for underwriting firms owned by women and minority members to grow and create jobs in an industry that is so critical to our state’s economy. I want to salute Paul Williams and all the Task Force members for developing a strong plan to put my vision of inclusion, diversity and economic development into the state debt issuance process.”

Paul T. Williams, Jr., Chairman of the Task Force and Executive Director of the State Dormitory Authority, said: “While creating increased competition as well as transparency in state debt issuance, the work of the Task Force will help restore New York to the front ranks of boosting opportunity and job growth for small business. Gov. Paterson articulated a clear vision when he established this Task Force and I am confident that we will look back five years from now and see a new and vibrant M/WBE underwriting industry in New York State, and recognize that it started here today.”

The final guidelines (see attached document for full details) fall into four broad categories:

Underwriter request for proposals (RFP) process
Measuring the performance of underwriters
Syndicate formation and designation policies
Miscellaneous issues

Recommendations finalized today by the Task Force will next be considered by the Boards of Directors of state authorities that issue state-supported debt at their meetings later this fall.

The recommendations were developed over the past four months through a series of public meetings in New York City and Albany, a public hearing at which 21 financial services firms testified, research into the best M/WBE financial services practices employed by other jurisdictions, and circulating draft recommendations to industry participants for comment.

The Task Force is comprised of the executive directors or presidents of the Dormitory Authority, the New York State Housing Finance Agency, the New York State Thruway Authority, the Empire State Development Corp., the Environmental Facilities Corp., and three members appointed by Gov. Paterson.

The Task Force’s charter extends to increasing the utilization of M/WBE firms in the financial industry, including bond counsel and other professions.

Each year the State of New York, through its public authorities, issues bonds for state-supported facilities and programs and economic development purposes. Investment banks and underwriters are hired to assist the state in these transactions, valued at billions of dollars annually.

Minority and Women-Owned Business Enterprise (MWBE) Task Force Underwriter Recommendations | PDF