•  Summary 
  •  
  •  Actions 
  •  
  •  Committee Votes 
  •  
  •  Floor Votes 
  •  
  •  Memo 
  •  
  •  Text 
  •  
  •  LFIN 
  •  
  •  Chamber Video/Transcript 

A06729 Summary:

BILL NOA06729
 
SAME ASNo Same As
 
SPONSORBichotte Hermelyn
 
COSPNSR
 
MLTSPNSR
 
Amd §§314 & 310, rpld §310 sub 19, Exec L
 
Relates to criteria for certification by the division of minority and women's business development of MWBE status.
Go to top    

A06729 Actions:

BILL NOA06729
 
03/29/2021referred to governmental operations
Go to top

A06729 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6729
 
SPONSOR: Bichotte Hermelyn
  TITLE OF BILL: An act to amend the executive law, in relation to criteria for certif- ication 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   PURPOSE: The purpose of this bill is to redefine the criteria for certified minority and women-owned business enterprise (MWSE) 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 pertains 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 Section 2 is 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 due to unnecessary "personal net worth" that was included in 2010 program. New York State has demonstrated the highest strict scrutiny standard with a comprehensive disparity study abiding by the Supreme Court Ruling in Croson v. Richmond. 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: 2019-20: A6223; referred to governmental operations 2017-18: A9977A; Recommitted to government operations with amendments   FISCAL IMPLICATIONS: None.
Go to top

A06729 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6729
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                     March 29, 2021
                                       ___________
 
        Introduced  by  M.  of A. BICHOTTE HERMELYN -- read once and referred to
          the Committee on Governmental Operations
 
        AN ACT to amend the executive law, in relation to criteria  for  certif-
          ication  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  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Paragraph  (a)  of  subdivision 2-a of section 314 of the
     2  executive law, as amended by chapter 96 of the laws of 2019, is  amended
     3  to read as follows:
     4    (a)  The  director  shall establish a procedure enabling the office to
     5  accept New York municipal  corporation  certification  verification  for
     6  minority  and  women-owned  business  enterprise  applicants  in lieu of
     7  requiring the applicant to complete the state certification process. The
     8  director shall promulgate rules and regulations to  set  forth  criteria
     9  for  the acceptance of municipal corporation certification. All eligible
    10  municipal corporation certifications shall require business  enterprises
    11  seeking certification to meet the following standards:
    12    (i)  have  at  least  fifty-one  percent  ownership by a minority or a
    13  women-owned enterprise and be owned by United States citizens or  perma-
    14  nent resident aliens;
    15    (ii)  be  an  enterprise  in which the minority and/or women-ownership
    16  interest is real, substantial and continuing;
    17    (iii) be an enterprise in which the  minority  and/or  women-ownership
    18  has  and exercises the authority to control independently the day-to-day
    19  business decisions of the enterprise;
    20    (iv) be an enterprise authorized to do business in this state;
    21    (v) be subject to a physical site inspection to verify  the  fifty-one
    22  percent ownership requirement;
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07092-01-1

        A. 6729                             2
 
     1    (vi)  be  owned  by  an  individual  or  individuals, whose ownership,
     2  control and  operation  are  relied  upon  for  certification[,  with  a
     3  personal net worth that does not exceed fifteen million dollars and such
     4  other amount as the director shall set forth in regulations, as adjusted
     5  annually  for  inflation according to the consumer price index] and that
     6  has been awarded contracts by one or more agencies within the past three
     7  years where the total city funding received by the enterprise  from  the
     8  expense  and  capital budgets for such contracts was equal to or greater
     9  than sixty million dollars, exclusive of any payments  made  to  subcon-
    10  tractors, and whose size has exceeded the size standards established for
    11  its  industry  by  the  United  States small business administration for
    12  three years; and
    13    (vii) be an enterprise that is a small business pursuant  to  subdivi-
    14  sion twenty of section three hundred ten of this article.
    15    §  2.  Paragraph (e) of subdivision 7, paragraph (e) of subdivision 15
    16  and subdivision 20 of section 310 of the executive law, paragraph (e) of
    17  subdivision 7 and paragraph (e) of subdivision 15 as amended by  chapter
    18  96 of the laws of 2019 and subdivision 20 as added by chapter 175 of the
    19  laws of 2010, are amended to read as follows:
    20    (e)  an enterprise owned by an individual or individuals, whose owner-
    21  ship, control and operation are relied upon for certification[,  with  a
    22  personal  net  worth  that  does not exceed fifteen million dollars, and
    23  such other amount as the director shall set  forth  in  regulations,  as
    24  adjusted annually on the first of January for inflation according to the
    25  consumer  price  index  of  the previous year] and that has been awarded
    26  contracts by one or more agencies within the past three years where  the
    27  total  state  funding  received  by  the enterprise from the expense and
    28  capital budgets for such contracts was equal to or  greater  than  sixty
    29  million  dollars,  exclusive of any payments made to subcontractors, and
    30  whose size has exceeded the  size  and  standards  established  for  its
    31  industry  by  the  United States small business administration for three
    32  years; and
    33    (e) an enterprise owned by an individual or individuals, whose  owner-
    34  ship,  control  and operation are relied upon for certification[, with a
    35  personal net worth that does not exceed  fifteen  million  dollars,  and
    36  such  other  amount  as  the director shall set forth in regulations, as
    37  adjusted annually on the first of January for inflation according to the
    38  consumer price index of the previous year] and  that  has  been  awarded
    39  contracts  by one or more agencies  within  the past  three years  where
    40  the total state funding received by the enterprise from the expense  and
    41  capital budgets for such contracts was equal to  or  greater than  sixty
    42  million   dollars, exclusive of any payments made to subcontractors, and
    43  whose size has exceeded the size standards established for its  industry
    44  by  the United  States  small business  administration  for three years;
    45  and
    46    20. "Small business" as used in this section, unless  otherwise  indi-
    47  cated,  shall  mean a business which has a significant business presence
    48  in the state, is independently owned and operated, not dominant  in  its
    49  field  and  [employs, based on its industry, a certain number of persons
    50  as determined by the director, but not to exceed three  hundred,  taking
    51  into consideration factors which include, but are not limited to, feder-
    52  al  small  business administration standards] whose size does not exceed
    53  the size standards established  by  the  United  States  small  business
    54  administration  for  its  industry  pursuant  to 13 CFR part 121 and any
    55  amendments  thereto.  The  director  may  issue   regulations   on   the
    56  construction of the terms in this definition.

        A. 6729                             3
 
     1    § 3. Subdivision 19 of section 310 of the executive law is REPEALED.
     2    §  4.  This  act shall take effect on the ninetieth day after it shall
     3  have become a law; provided, however, that  the  amendments  to  article
     4  15-A of the executive law made by sections one and two of this act shall
     5  not  affect the expiration of such article and shall be deemed to expire
     6  therewith.
Go to top