What's happening
This bill removes the personal net worth cap for minority and women-owned business owners seeking state certification in New York.
Why it matters
Removes a key financial barrier. By eliminating the personal net worth cap, successful minority and women business owners are no longer disqualified from state certification solely due to their personal wealth, potentially allowing more established businesses to participate in state contracting opportunities.
Promotes sustained business growth and scaling. The change could encourage minority and women-owned businesses to grow without fear that increasing the owner's wealth will jeopardize their certification and access to state programs.
Shifts focus to business characteristics over personal finances. Certification eligibility will now depend on business structure and control, not the owner's net worth, which may create a fairer playing field for assessing true business capacity and ownership.
Potentially increases competition and diversity. By broadening the pool of eligible businesses, the bill could lead to greater competition for state contracts and more robust participation by minority and women-owned enterprises, enhancing diversity in public procurement.
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Who cares
Headline styles
Remove MWBE Wealth Cap
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
4 Multi-sponsors
History
- Referred to governmental operations
- Referred to governmental operations
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2987
2019-2020 Regular Sessions
IN ASSEMBLY
January 28, 2019
Introduced by M. of A. BICHOTTE, STECK -- Multi-Sponsored by -- M. of A. BLAKE, HYNDMAN, SEAWRIGHT, WALKER -- read once and referred to the Committee on Governmental Operations
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; 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; and to repeal subdivision 19 of section 310 of the executive 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. 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. Paragraphs (e) and (f) of subdivision 7 of section 310 of the executive law, as amended by chapter 22 of the laws of 2014, 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00265-01-9
A. 2987 2
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
(f)] an enterprise that is a small business pursuant to subdivision twenty of this section.
§ 3. Paragraphs (e) and (f) of subdivision 15 of section 310 of the executive law, as amended by chapter 22 of the laws of 2014, 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
(f)] an enterprise that is a small business pursuant to subdivision twenty of this section.
§ 4. Subdivision 19 of section 310 of the executive law is REPEALED.
§ 5. 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.
§ 6. This act shall take effect immediately; provided, however, that:
(a) 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; and
(b) the amendments to section 310 of the executive law made by sections two, three and four 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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.