Authorizes the director of the division of minority and women's business development and the mayor of the city of New York to enter into a memorandum of understanding to allow reciprocity between the state and New York City for businesses that are certified as minority and women-owned business enterprises.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8294
SPONSOR: Septimo TITLE OF BILL:
An act to amend the executive law, in relation to reciprocal minority
and women-owned business enterprise certification
SUMMARY OF PROVISIONS:
This act contains two sections.
Section one of the act would amend subdivision 2-a of section 314 of the
Executive Law by adding a new paragraph (d), which would provide that
the Director of the Division of Minority and Women's Business Develop-
ment of the New York State Department of Economic Development (better
known as Empire State Development("ESD")) and the Mayor of a city with a
population greater than 1,000,000 persons may enter into a memorandum of
understanding providing for the reciprocal acceptance of minority and
women-owned business enterprise ("MWBE") certification between an MWBE
program operated by such city and the New York State MWBE program oper-
ated by ESD. This paragraph would authorize this memorandum of under-
standing to include one or more exemptions where such exemptions are in
the best interest of both programs. This paragraph would also clarify
that this memorandum of understanding would not restrict each program
from amending their respective certification standards and processes.
Section two of the act provides that the act would take effect 270 days
after it becomes law, provided that the amendments made by section one
of this act would not affect the expiration of article 15--A of the
Executive Law pursuant to chapter 261 of the laws of 1988, as amended,
and would expire and be deemed repealed along with article 15-A.
JUSTIFICATION:
The most recent disparity studies conducted by both the State of New
York ("State") and the City of New York ("City") demonstrate that
discrimination continues to affect MWBEs seeking to do business in the
markets where the City and the State conduct their procurements. The
State and City are committed to addressing these disparities by operat-
ing MWBE programs that encourage the participation of MBEs in their
respective procurements. The poor of firms that wish to participate in
procurements at.both the City and State level is significant: more than
40% of firms certified by the State are also certified by the City.
Currently, the process to establish and to maintain certification at
both levels of government can be administratively burdensome for MWBEs.
These separate and duplicative processes lead to cost, confusion, and
lost opportunities for MWBEs and complicate the work of all entities
including government agencies, prime vendors, and other private sector
entities- seeking to do business with MWBEs. By authorizing reciprocal
certification, this act would enable the establishment of a procedure
focused on coordination and partnership between the City and State, and
would eliminate the layered administrative burdens current imposed by
the existing regulatory landscape. This change would increase the
success of both the City's and the State's MWBE prograMs.
PRIOR LEGISLATIVE HISTORY:
FISCAL IMPLICATIONS:
None to the State.
EFFECTIVE DATE:
This act shall take effect on the two hundred seventieth day after it
shall have become a law.
