What's happening
This bill updates the criteria for minority and women-owned business certification, removing personal net worth limits and aligning size standards with federal guidelines.
Why it matters
Removes personal net worth caps. for owners seeking certification, which could allow more established or wealthier minority and women business owners to qualify, potentially expanding the pool of eligible businesses but also raising concerns about whether resources will still focus on the most disadvantaged applicants.
Aligns “small business” definitions with federal Small Business Administration (SBA) standards. instead of a fixed employee count, making state and federal certification requirements more consistent and possibly simplifying the process for businesses that operate in multiple jurisdictions.
Adds new disqualification criteria for businesses that have already secured large public contracts and grown beyond SBA size limits. for three years, preventing larger, previously successful firms from continuing to access programs intended for smaller, developing businesses.
Repeals language and definitions related to personal net worth. in the existing law, streamlining certification criteria and removing the need for annual inflation adjustments and individual financial documentation, which may reduce administrative burdens for applicants and agencies.
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Who cares
Headline styles
Change MWBE Certification Rules
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 45
No co-sponsors yet.
History
- Print number 7892a
- Amend (t) and recommit to finance
- 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.
Change MWBE Certification Rules
In Assembly Committee · Governmental Operations · Sponsor Rodneyse Bichotte Hermelyn
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7892--A
IN SENATE
March 7, 2018
Introduced by Sen. LITTLE -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the executive law, in relation to criteria for certification by the division of minority and women's business development of minority and women-owned business enterprise status; and to repeal subdivision 19 of section 310 of such law relating to the definition of personal net worth
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (a) of subdivision 2-a of section 314 of the executive law, as amended by chapter 175 of the laws of 2010, is amended to read as follows:
(a) The director shall establish a procedure enabling the office to accept New York municipal corporation certification verification for minority and women-owned business enterprise applicants in lieu of requiring the applicant to complete the state certification process. The director shall promulgate rules and regulations to set forth criteria for the acceptance of municipal corporation certification. All eligible municipal corporation certifications shall require business enterprises seeking certification to meet the following standards:
(i) have at least fifty-one percent ownership by a minority or a women-owned enterprise and be owned by United States citizens or permanent resident aliens;
(ii) be an enterprise in which the minority and/or women-ownership interest is real, substantial and continuing;
(iii) be an enterprise in which the minority and/or women-ownership has and exercises the authority to control independently the day-to-day business decisions of the enterprise;
(iv) be an enterprise authorized to do business in this state;
(v) be subject to a physical site inspection to verify the fifty-one percent ownership requirement;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14740-06-8
S. 7892--A 2
(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 that has been awarded contracts by one or more agencies within the past three years where the total city funding from the expense and capital budgets for such contracts was equal to or greater than sixty million dollars and whose size has exceeded the size standards established for its industry by the United States small business administration for three years; and
(vii) be an enterprise that is a small business pursuant to subdivision twenty of section three hundred ten of this article.
§ 2. Paragraph (e) of subdivision 7, paragraph (e) of subdivision 15 and subdivision 20 of section 310 of the executive law, paragraph (e) of subdivision 7 and paragraph (e) of subdivision 15 as amended by chapter 22 of the laws of 2014 and subdivision 20 as added by chapter 175 of the laws of 2010, are amended to read as follows:
(e) an enterprise 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 on the first of January for inflation according to the consumer price index of the previous year] and that has been awarded contracts by one or more agencies within the past three years where the total state funding from the expense and capital budgets for such contracts was equal to or greater than sixty million dollars and whose size has exceeded the size and standards established for its industry by the United States small business administration for three years; and
(e) an enterprise 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 on the first of January for inflation according to the consumer price index of the previous year] and that has been awarded contracts by one or more agencies within the past three years where the total state funding from the expense and capital budgets for such contracts was equal to or greater than sixty million dollars and whose size has exceeded the size standards established for its industry by the United States small business administration for three years; and
20. "Small business" as used in this section, unless otherwise indicated, shall mean a business which has a significant business presence in the state, is independently owned and operated, not dominant in its field and [employs, based on its industry, a certain number of persons as determined by the director, but not to exceed three hundred, taking into consideration factors which include, but are not limited to, federal small business administration standards] whose size does not exceed the size standards established by the United States small business administration for its industry pursuant to 13 CFR part 121 and any amendments thereto. The director may issue regulations on the construction of the terms in this definition.
§ 3. Subdivision 19 of section 310 of the executive law is REPEALED.
§ 4. This act shall take effect on the ninetieth day after it shall have become a law; provided, however, that the amendments to article 15-A of the executive law made by sections one and two of this act shall not affect the expiration of such article and shall be deemed to expire 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 criteria for certification by the division of minority and women's busi- ness development of minority and women-owned business enterprise status; and to repeal subdivision 19 of section 310 of such law relating to the definition of personal net worth
Purpose
The purpose of this bill is to redefine the criteria for certified minority and women-owned business enterprise (MWBE) by eliminating the unnecessary Personal Net Worth Threshold substituting another limiting factor with contract values awarded of sixty million dollars within a period of time (3 consecutive years) and by changing the definition of Small business as it pertain to size pursuant to the United States Small Business Administration Size Standards.
Summary of provisions
Section 1 subdivision 2-a and Section 2 subdivision 7-e and 20 of the bill amends section 314 of the executive law by eliminating the personal net worth, limiting factor with contract values awarded of sixty million dollars within a period of time (3 consecutive years) and by changing the definition of Small business as it pertain to size pursuant to the United States Small Business Administration Size Standards.
The director shall promulgate rules and regulations to set forth crite- ria for the acceptance of the DD Form 214.
Section 3 repeals subdivision 19 of section 310 of the executive law.
Section 4 establishes the effective date.
Justification
This bill intends to address the limitation imposed on minority and women-owned business enterprise (MWBE) from growing and entering projects because of an unnecessary personal Net worth that was included in the program in 2010. New York State has demonstrated the highest scrutiny standard with a comprehensive disparity study abiding by the Croson vs Richmond Supreme Court Ruling. An MWBE business in the program should not be defined as an individual personal net worth. 19 other states and New York City with MWBE programs do not have a personal net worth which has not compromised the program. This bill will replace the net worth cap with another limiting factor that has worked in New York City which is to limit the contract value awards to sixty million within a 3 consecutive period.
Legislative history
This is a new bill.
Fiscal implications
None.
Effective date
This act shall take effect on the ninetieth day after it shall have become a law; provided, however, that the amendments to article 15-A of the executive law made by sections one and two of this act shall not affect the expiration of such article and shall be deemed to expire therewith.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.