Authorizes certain business enterprise subcontractors who seek to do work with not-for-profit corporations to receive MWBE certification if certain criteria is met; imposes a $50,001 limit on the provision of such services or work; makes related provisions.
STATE OF NEW YORK
________________________________________________________________________
5348
2025-2026 Regular Sessions
IN ASSEMBLY
February 13, 2025
___________
Introduced by M. of A. RAJKUMAR -- read once and referred to the Commit-
tee on Governmental Operations
AN ACT to amend the executive law, in relation to exempting certain
business enterprise subcontractors who seek to do work with not-for-
profit corporations from certain requirements
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 314 of the executive law is amended by adding a new
2 subdivision 2-d to read as follows:
3 2-d. (a) The director shall establish a procedure enabling the office
4 to accept business enterprise subcontractor verification for minority
5 and women-owned business enterprise applicants who apply to do work for
6 non-for-profit corporations in lieu of requiring such business enter-
7 prise subcontractor to complete the state certification process. The
8 director shall promulgate rules and regulations to set forth criteria
9 for the acceptance of such business enterprise subcontractor certif-
10 ication.
11 (b) All business enterprise subcontractor certifications shall require
12 business enterprises who apply to do work for not-for-profit corpo-
13 rations and seek certification to meet the following standards:
14 (i) have at least fifty-one percent ownership by a minority or a
15 women-owned enterprise and be owned by United States citizens or perma-
16 nent resident noncitizens;
17 (ii) be an enterprise in which the minority and/or women-ownership
18 interest is real, substantial and continuing;
19 (iii) be an enterprise in which the minority and/or women-ownership
20 has and exercises the authority to control independently the day-to-day
21 business decisions of the enterprise;
22 (iv) be an enterprise authorized to do business in this state;
23 (v) be subject to a physical site inspection to verify the fifty-one
24 percent ownership requirement;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08625-01-5
A. 5348 2
1 (vi) be owned by an individual or individuals, whose ownership,
2 control and operation are relied upon for certification, with a personal
3 net worth that does not exceed fifteen million dollars and such other
4 amount as the director shall set forth in regulations, as adjusted annu-
5 ally for inflation according to the consumer price index;
6 (vii) be an enterprise that is a small business pursuant to subdivi-
7 sion twenty of section three hundred ten of this article;
8 (viii) services and/or the work being performed are at a cost of less
9 than fifty thousand one dollars;
10 (ix) have not received such exemption more than three times in the
11 preceding twelve calendar months; and
12 (x) comply with any reporting requirements pursuant to this article.
13 § 2. This act shall take effect immediately, provided however, the
14 amendments to article 15-A of the executive law made by section one of
15 this act shall not affect the expiration of such article and shall be
16 deemed repealed therewith.
