Relates to the statewide certification program for participation by minority group members and women with respect to state contracts

2 Co-sponsors

• Eric Adams
• Velmanette Montgomery

BILL NUMBER:S5743A

Title of bill

An act to amend the executive law, in relation to the statewide certif- ication program for participation by minority group members and women with respect to state contracts

Purpose

This bill would allow a business enterprises owned by an individual or individuals, whose ownership, control and operation that are relied upon for certification, with a personal net worth exceeding three million five hundred thousand dollars, and who were certified prior to October 13, 2010 to maintain their minority and women-owned business enterprises certification status.

Summary of provisions

Section 2 of the bill amends subparagraph (vi) of paragraph (a) of subdivision 2-a of section 314 of the executive law, as amended by chap- ter 175 of the laws of 2010, in relation to the statewide certification program for participation by minority group members and women with respect to state contracts.

Justification

In 2006, the Empire State Development Corporation commissioned a dispar- ity study to evaluate whether minority and women-owned businesses had a full and fair opportunity to participate in state contracting. The results of that study were published on April 29, 2010, under the title "The State of Minority and Women-Owned Business Enterprises: Evidence from New York." The report found evidence of statistically significant disparities between participation of MWBEs in the New York market and the availability of such businesses. The report made several recommenda- tions to include tailoring program eligibility requirements that includes a personal net worth test for MWBE certified owners. However, with the imposition of threshold it was never the intent of the Legisla- ture penalize successful MWBEs by removing them from the State's MWBE program.

Effective date

Immediately.