What's happening
This bill removes the personal net worth limit for minority and women-owned business owners seeking state certification in New York.
Why it matters
Expanding Access for Successful Entrepreneurs. By removing the personal net worth cap, the bill allows minority and women business owners who have accumulated more personal wealth to still qualify for state certification, not just those under the previous $3.5 million threshold.
Potential for Larger, More Established Businesses. The change could enable larger, more established minority and women-owned businesses to access state programs and contracts, possibly increasing the pool of certified firms and enhancing competition.
Shift in Focus to Ownership and Operation. With net worth no longer a factor, the emphasis for certification moves solely to ownership, control, and business size, potentially reducing administrative burdens and subjectivity in the evaluation process.
Possible Impact on Smaller Firms. This could mean that smaller, less wealthy businesses might face increased competition from more financially robust firms for state support, raising questions about how benefits are distributed among minority and women-owned enterprises.
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Who cares
Headline styles
Remove Wealth Cap for MWBEs
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Substituted by A2819
- Ordered to third reading cal.2203
- Committee discharged and committed to rules
- Referred to finance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Remove Net Worth Requirement
Vetoed · Sponsor Rodneyse Bichotte Hermelyn
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3018
2017-2018 Regular Sessions
IN SENATE
January 19, 2017
Introduced by Sen. RITCHIE -- read twice and ordered printed, and when printed to be committed to the Committee on Finance
AN ACT to amend the executive law, in relation to eliminating the requirement that certain minority and women-owned business enterprise owners have a personal net worth of less than three million five hundred thousand dollars in order to obtain certification as a qualifying minority and women-owned business enterprise; and clarifying that an individual's net worth is not to be considered in determining eligibility for certification under Article 15-A of the executive law
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subparagraphs (v), (vi) and (vii) of paragraph (a) of subdivision 2-a of section 314 of the executive law, as amended by chapter 175 of the laws of 2010, are amended to read as follows:
(v) be subject to a physical site inspection to verify the fifty-one percent ownership requirement; and
(vi)[be owned by an individual or individuals, whose ownership, control and operation are relied upon for certification, with a personal net worth that does not exceed three million five hundred thousand dollars, as adjusted annually for inflation according to the consumer price index; and
(vii)] be an enterprise that is a small business pursuant to subdivision twenty of section three hundred ten of this article.
§ 2. Notwithstanding any rule, regulation or guideline to the contrary, the personal net worth of an individual or individuals, whose ownership, control and operation are relied upon for certification of a business as a certified minority and women-owned business enterprise pursuant to the provisions of article 15-A of the executive law shall not be taken into account in determining certification under such article.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01518-01-7
S. 3018 2
§ 3. This act shall take effect immediately; provided, however, that the amendments to section 314 of the executive law made by section one of this act shall not affect the expiration of such section and shall be deemed expired therewith.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the executive law, in relation to eliminating the requirement that certain minority and women-owned business enterprise owners have a personal net worth of less than three million five hundred thousand dollars in order to obtain certification as a qualifying minority and women-owned business enterprise; and clarifying that an individual's net worth is not to be considered in determining eligibility for certification under Article 15-A of the executive law
Purpose
To eliminate the requirement that certain minority and women-owned business enterprise owners have a personal net worth of less than three million five hundred thousand dollars in order to obtain certification.
Summary of specific provisions
Section 1 amends § 314 of the Executive Law removing the requirement that designated minority and women-owned business enterprises be owned by an individual or individuals, whose personal net worth does not exceed $3.5 million.
Section 2 provides that the personal net worth of an individual shall not be taken into account in determining certification under such article.
Section 3 provides the effective date.
Justification
This bill will remove the cap at $3.5 million in order to allow MWBEs to grow as a business while reaching their full potential and capacity. MM.
Legislative history
2016: S.7865 Referred to Finance/ A.9774 Referred to Governmental Operations
Fiscal implications
None.
Effective date
This act shall take effect immediately; provided, however, that the amendment to Section 314 of the Executive Law made by Section 1 of this act shall not affect the expiration of such section and shall be deemed expired therewith.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.