Amd §§310 & 311, add §§313-b, 313-c, 313-d & 313-e, Exec L; amd §6-129, NYC Ad Cd
Establishes minority youth-owned business enterprises in the state of New York and the city of New York; creates certain contracting opportunities for members of minority youth-owned business enterprises; establishes an implementation program and oversight committee for minority youth-owned business enterprises.
STATE OF NEW YORK
________________________________________________________________________
10864
IN ASSEMBLY
April 8, 2026
___________
Introduced by M. of A. JACKSON -- read once and referred to the Commit-
tee on Governmental Operations
AN ACT to amend the executive law and the administrative code of the
city of New York, in relation to establishing minority youth-owned
business enterprises
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 7 of section 310 of the executive law, as
2 amended by chapter 22 of the laws of 2014, paragraph (e) as amended by
3 chapter 96 of the laws of 2019, is amended and three new subdivisions
4 24, 25 and 26 are added to read as follows:
5 7. (a) "Minority-owned business enterprise" shall mean a business
6 enterprise, including a sole proprietorship, partnership, limited
7 liability company or corporation that is:
8 [(a)] (i) at least fifty-one percent owned by one or more minority
9 group members;
10 [(b)] (ii) an enterprise in which such minority ownership is real,
11 substantial and continuing;
12 [(c)] (iii) an enterprise in which such minority ownership has and
13 exercises the authority to control independently the day-to-day business
14 decisions of the enterprise;
15 [(d)] (iv) an enterprise authorized to do business in this state and
16 independently owned and operated;
17 [(e)] (v) an enterprise owned by an individual or individuals, whose
18 ownership, control and operation are relied upon for certification, with
19 a personal net worth that does not exceed fifteen million dollars, and
20 such other amount as the director shall set forth in regulations, as
21 adjusted annually on the first of January for inflation according to the
22 consumer price index of the previous year; and
23 [(f)] (vi) an enterprise that is a small business pursuant to subdivi-
24 sion twenty of this section.
25 (b) "Minority-owned business enterprise" shall include a minority
26 youth-owned business enterprise, provided that the provisions of subdi-
27 vision twenty-four of this section are met.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15032-02-6
A. 10864 2
1 24. "Minority youth-owned business enterprise" shall mean a business
2 enterprise, including a sole proprietorship, partnership, limited
3 liability company or corporation that is:
4 (a) at least fifty-one percent owned by one or more minority group
5 members belonging to tier one or tier two;
6 (b) an enterprise in which such tier one or tier two minority owner-
7 ship is real, substantial and continuing;
8 (c) an enterprise in which such tier one or tier two minority owner-
9 ship has and exercises the authority to control independently the day-
10 to-day business decisions of the enterprise;
11 (d) an enterprise authorized to do business in this state and inde-
12 pendently owned and operated;
13 (e) an enterprise owned by an individual or individuals, whose owner-
14 ship, control and operation are relied upon for certification, with a
15 personal net worth that does not exceed fifteen million dollars, and
16 such other amount as the director shall set forth in regulations, as
17 adjusted annually on the first of January for inflation according to the
18 consumer price index of the previous year; and
19 (f) an enterprise that is a small business pursuant to subdivision
20 twenty of this section.
21 25. "Tier one" shall mean a minority group member who is sixteen or
22 seventeen years of age and enrolled in public or private school in the
23 state of New York that is prohibited from serving as the primary signa-
24 tory on a state contract.
25 26. "Tier two" shall mean a minority group member that is fully eligi-
26 ble to sign and execute state contracts and who is either:
27 (a) eighteen to twenty-nine years of age; or
28 (b) a high school senior enrolled in a public or private school in the
29 state of New York, verified by such public or private school's adminis-
30 tration as being on track to graduate in the current academic year.
31 § 2. Paragraphs (l) and (m) of subdivision 3 of section 311 of the
32 executive law, as amended by chapter 40 of the laws of 2023, are amended
33 and three new paragraphs (n), (o) and (p) are added to read as follows:
34 (l) to work in conjunction with the industrial commissioner pursuant
35 to paragraph (j) of subdivision one of section eight hundred eleven of
36 the labor law to assist contractors in identifying minority group
37 members and women who are participating in apprenticeship agreements
38 under article twenty-three of the labor law; [and]
39 (m) to coordinate with appropriate offices, agencies, or authorities,
40 where applicable, to conduct site visits or perform inspections of
41 financial records of minority or women-owned business enterprises in
42 accordance with this article and the regulations of the director[.];
43 (n) to develop and conduct comprehensive business fundamental training
44 programs for tier one and tier two members of minority youth-owned busi-
45 ness enterprises which shall include but not be limited to training
46 programs on financial literacy and business management;
47 (o) to offer specialized coursework to tier one and tier two members
48 of minority youth-owned business enterprises on the procurement process
49 in the state of New York; and
50 (p) to identify and establish mentorship opportunities to connect tier
51 one and tier two members of minority youth-owned business enterprises
52 with experienced business owners. Such mentorship opportunities shall be
53 intended to provide minority youth-owned business enterprise members
54 with ongoing guidance throughout the business development process.
55 § 3. The executive law is amended by adding four new sections 313-b,
56 313-c, 313-d and 313-e to read as follows:
A. 10864 3
1 § 313-b. Opportunities for minority youth-owned business enterprises.
2 1. The following contracting agencies shall allocate twelve percent of
3 their total discretionary spending budget to minority youth-owned busi-
4 ness enterprises owned, operated or controlled by a tier two member:
5 (a) the department of education;
6 (b) the office of children and family services;
7 (c) colleges and institutions of the state university of New York; and
8 (d) colleges and institutions of the city university of New York, with
9 the exception of the school of medicine of the city university of New
10 York.
11 2. Any contracting agency not expressly identified in subdivision one
12 of this section shall target a four percent participation goal for
13 contracts performed by minority youth-owned business enterprises.
14 3. (a) All contracting agencies shall be authorized to award contracts
15 up to twenty-five thousand dollars to minority youth-owned business
16 enterprises without a formal competitive bidding process.
17 (b) Tier two members of minority youth-owned business enterprises that
18 have fully executed three contracts each totaling twenty-five thousand
19 dollars in accordance with paragraph (a) of this subdivision shall be
20 eligible for an increased contract award of fifty thousand dollars with-
21 out a formal competitive bidding process.
22 § 313-c. Implementation program for minority youth-owned business
23 enterprises. 1. Notwithstanding any law, rule or regulation to the
24 contrary, the director shall establish a three-year implementation
25 program to establish and refine the provisions and requirements relating
26 to minority youth-owned business enterprises set forth in this article.
27 2. Such implementation program shall include:
28 (a) a pilot phase occurring in the first six months of such three-year
29 implementation program under which the director:
30 (i) holds business formation days at public and private high schools
31 and community centers throughout the state where tier two members may
32 register a limited liability company in accordance with the provisions
33 of section three hundred thirteen-e of this article and section two
34 hundred three of the limited liability company law;
35 (ii) selects three to five disadvantaged communities, as defined by
36 subdivision five of section 75-0101 of the environmental conservation
37 law, for initial implementation of minority youth-owned business enter-
38 prise programs which shall include sites in the city of New York,
39 Buffalo and Rochester; and
40 (iii) establishes partnerships with local businesses, agencies, and
41 legal clinics;
42 (b) a payment process implementation phase related to subcontracting
43 awarded by holders of multiple task award contracts in accordance with
44 paragraph sixteen of subdivision e of section 6-129 of the administra-
45 tive code of the city of New York occurring in months three through six
46 of the three-year implementation program under which the director:
47 (i) develops standardized invoicing templates for minority youth-owned
48 business enterprises;
49 (ii) creates guidelines for prompt payment practices; and
50 (iii) conducts training on the payment process for all participants;
51 (c) an evaluation and refinement phase occurring in months seven to
52 twelve of the three-year implementation program under which the director
53 shall assess the outcome of the pilot phase created under paragraph (a)
54 of this subdivision; and
55 (d) a statewide rollout phase occurring in years two to three of the
56 three-year implementation program under which the minority youth-owned
A. 10864 4
1 business enterprise program is expanded to all counties and munici-
2 palities within the state of New York.
3 3. The director shall provide ongoing support and monitoring of minor-
4 ity youth-owned business enterprises commencing in the first year of the
5 three-year implementation program and continuing thereafter.
6 4. The director shall collect and analyze data regarding the contract-
7 ing results of section three hundred thirteen-b of this article.
8 § 313-d. Minority youth-owned business enterprise oversight committee.
9 1. The department of state shall establish a minority youth-owned over-
10 sight committee comprised of representatives from the legislature, the
11 office of the governor and the office of the mayor of the city of New
12 York. Such minority youth-owned business enterprise oversight committee
13 shall:
14 (a) submit quarterly reports to the governor and legislature concern-
15 ing financial management and the contracting results of section three
16 hundred thirteen-b of this article and paragraph five of subdivision d
17 of section 6-129 of the administrative code of the city of New York;
18 (b) conduct annual community feedback sessions with members of minori-
19 ty youth-owned business enterprises;
20 (c) conduct regular audits of contracting practices and payment proc-
21 esses;
22 (d) review the contracting results of section three hundred thirteen-b
23 of this article and paragraph five of subdivision d of section 6-129 of
24 the administrative code of the city of New York to ensure it remains
25 appropriate amid current economic conditions;
26 (e) monitor the progression of minority youth-owned business enter-
27 prises to ensure effectiveness; and
28 (f) evaluate business compliance with the requirements of this arti-
29 cle.
30 2. The minority youth-owned business enterprise oversight committee
31 shall establish a bridge program under which such oversight committee
32 assists members of minority youth-owned business enterprises who are
33 twenty-eight or twenty-nine years of age in applying for statewide
34 certifications for minority-owned business enterprises or women-owned
35 business enterprises in accordance with section three hundred fourteen
36 of this article.
37 § 313-e. Limited liability company incorporation support for minority
38 youth-owned business enterprises. The department of state shall estab-
39 lish a minority youth-owned business enterprise incorporation unit.
40 Such minority youth-owned business enterprise incorporation unit shall
41 provide free legal and administrative assistance to tier two members of
42 minority youth-owned business enterprises for the purposes of drafting
43 articles of organization pursuant to section two hundred three of the
44 limited liability company law.
45 § 4. Paragraph 25 of subdivision c of section 6-129 of the administra-
46 tive code of the city of New York, as amended by local law number 1 of
47 the city of New York for the year 2013, is amended and three new para-
48 graphs 35, 36 and 37 are added to read as follows:
49 (25) "MBE" means a minority-owned business enterprise certified in
50 accordance with section 1304 of the charter and shall include a minori-
51 ty-youth owned business enterprise.
52 (35) "Minority youth-owned business enterprise" or "MYBE" means busi-
53 ness enterprises authorized to do business in this state, including sole
54 proprietorships, partnerships and corporations, in which (a) at least
55 fifty-one percent of the ownership interest is held by United States
56 citizens or lawful permanent residents who are either tier one or tier
A. 10864 5
1 two minority group members; (b) the ownership interest of such individ-
2 uals is real, substantial and continuing; and (c) such individuals have
3 and exercise the authority to control independently the day to day busi-
4 ness decisions of the enterprise.
5 (36) "Tier one" shall mean a minority group member who is sixteen or
6 seventeen years of age and enrolled in public or private school in the
7 state of New York that is prohibited from serving as the primary signa-
8 tory on a contract.
9 (37) "Tier two" shall mean a minority group member that is fully
10 eligible to sign and execute contracts and who is either:
11 (a) eighteen to twenty-nine years of age; or
12 (b) a high school senior enrolled in a public or private school in the
13 state of New York, verified by such public or private school's adminis-
14 tration as being on track to graduate in the current academic year.
15 § 5. Subdivision d of section 6-129 of the administrative code of the
16 city of New York is amended by adding two new paragraphs 5 and 6 to read
17 as follows:
18 (5) (a) The following agencies shall allocate twelve percent of their
19 total discretionary spending budget to MYBEs owned, operated or
20 controlled by a tier two member:
21 (i) the department of education; and
22 (ii) the department of youth and community development.
23 (b) Any agency not expressly identified in subparagraph (a) of this
24 paragraph shall target a four percent participation goal for contracts
25 performed by MYBEs.
26 (c) (i) Agencies shall be authorized to award contracts up to twenty-
27 five thousand dollars to MYBEs without a formal competitive bidding
28 process.
29 (ii) Tier two members of MYBEs that have fully executed three
30 contracts each totaling twenty-five thousand dollars in accordance with
31 this paragraph shall be eligible for an increased contract award of
32 fifty thousand dollars without a formal competitive bidding process.
33 (6) For any multiple task award contract in excess of one million
34 dollars, the multiple task award contract contractor shall provide a
35 business development and mentorship program for tier one and tier two
36 minority youth-owned business enterprises. Such program shall:
37 (a) provide practical training and mentorship to support MYBEs in
38 building and scaling their businesses, including financial management,
39 pricing and profitability, customer development, operations and work-
40 force planning, leadership development, and industry-specific best prac-
41 tices.
42 (b) reflect current industry standards and best practices at the time
43 it is delivered.
44 (c) be offered on an ongoing basis and made available at least once
45 per month during the term of the multiple task award contract.
46 (d) be delivered through live, interactive, skills-based sessions and
47 shall include opportunities for participant questions, coaching, and
48 practical exercises.
49 § 6. Subdivision e of section 6-129 of the administrative code of the
50 city of New York is amended by adding five new paragraphs 16, 17, 18, 19
51 and 20 to read as follows:
52 (16) The division shall develop a payment process between subcontract-
53 ing MYBEs and prime contractors holding multiple task award contracts.
54 Such payment process shall be consistent with the following:
55 (a) an MYBE subcontractor completes work and submits an invoice to a
56 multiple task award prime contractor;
A. 10864 6
1 (b) the multiple task award prime contractor consolidates invoices and
2 submits such invoices to the client;
3 (c) the client pays the multiple task award contractor; and
4 (d) the multiple task award contractor disburses payment to the MYBE
5 subcontractor.
6 (17) The division shall assist MYBEs in establishing mentorship oppor-
7 tunities between MYBE members and multiple task award contractors.
8 (18) The division shall develop and conduct comprehensive business
9 fundamental training programs for tier one and tier two members of MYBEs
10 which shall include but not be limited to training programs on financial
11 literacy and business management.
12 (19) The division shall offer specialized coursework to tier one and
13 tier two members of MYBEs on the procurement process in the city.
14 (20) The division shall identify and establish mentorship opportu-
15 nities to connect tier one and tier two members of MYBEs with experi-
16 enced business owners in the city. Such mentorship opportunities shall
17 be intended to provide MYBE members with ongoing guidance throughout the
18 business development process.
19 § 7. This act shall take effect on the one hundred eightieth day after
20 it shall have become a law; provided, however, that the amendments to
21 article 15-A of the executive law made by sections one, two and three of
22 this act shall not affect the repeal of such article and shall be deemed
23 repealed therewith.
