S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  9977--A
 
                           I N  A S S E M B L Y
 
                               March 2, 2018
                                ___________
 
 Introduced by M. of A. BICHOTTE -- read once and referred to the Commit-
   tee  on Governmental Operations -- committee discharged, bill amended,
   ordered reprinted as amended and recommitted to said committee
 
 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:
 
   Section  1.  Paragraph  (a)  of  subdivision 2-a of section 314 of the
 executive law, as amended by chapter 175 of the laws of 2010, is amended
 to read as follows:
   (a) The director shall establish a procedure enabling  the  office  to
 accept  New  York  municipal  corporation certification verification for
 minority and women-owned  business  enterprise  applicants  in  lieu  of
 requiring the applicant to complete the state certification process. The
 director  shall  promulgate  rules and regulations to set forth criteria
 for the acceptance of municipal corporation certification. All  eligible
 municipal  corporation certifications shall require business enterprises
 seeking certification to meet the following standards:
   (i) have at least fifty-one percent  ownership  by  a  minority  or  a
 women-owned  enterprise and be owned by United States citizens or perma-
 nent resident aliens;
   (ii) be an enterprise in which  the  minority  and/or  women-ownership
 interest is real, substantial and continuing;
   (iii)  be  an  enterprise in which the minority and/or women-ownership
 has and exercises the authority to control independently the  day-to-day
 business decisions of the enterprise;
   (iv) be an enterprise authorized to do business in this state;
   (v)  be  subject to a physical site inspection to verify the fifty-one
 percent ownership requirement;
   (vi) be 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.
                                                            LBD14740-05-8

 A. 9977--A                          2

 personal net worth that does not exceed three million five hundred thou-
 sand dollars, as  adjusted  annually  for  inflation  according  to  the
 consumer price index] AND THAT HAS BEEN AWARDED CONTRACTS BY ONE OR MORE
 AGENCIES  WITHIN  THE PAST THREE YEARS WHERE THE TOTAL CITY FUNDING FROM
 THE EXPENSE AND CAPITAL BUDGETS FOR  SUCH  CONTRACTS  WAS  EQUAL  TO  OR
 GREATER  THAN SIXTY MILLION DOLLARS AND WHOSE SIZE HAS EXCEEDED THE SIZE
 STANDARDS ESTABLISHED FOR ITS INDUSTRY BY THE UNITED STATES SMALL  BUSI-
 NESS ADMINISTRATION FOR THREE YEARS; and
   (vii)  be  an enterprise that is a small business pursuant to subdivi-
 sion twenty of section three hundred ten of this article.
   § 2.  Paragraph (e) of subdivision 7, paragraph (e) of subdivision  15
 and subdivision 20 of section 310 of the executive law, paragraph (e) of
 subdivision  7 and paragraph (e) of subdivision 15 as amended by chapter
 22 of the laws of 2014 and subdivision 20 as added by chapter 175 of the
 laws of 2010, are amended to read as follows:
   (e) an enterprise owned by an individual or individuals, whose  owner-
 ship,  control  and operation are relied upon for certification[, with a
 personal net worth that does not exceed three million five hundred thou-
 sand dollars, as adjusted annually on the first of January for inflation
 according to the consumer price index of the previous year] AND THAT HAS
 BEEN AWARDED CONTRACTS BY ONE OR MORE AGENCIES  WITHIN  THE  PAST  THREE
 YEARS WHERE THE TOTAL STATE FUNDING FROM THE EXPENSE AND CAPITAL BUDGETS
 FOR  SUCH  CONTRACTS  WAS EQUAL TO OR GREATER THAN SIXTY MILLION DOLLARS
 AND WHOSE SIZE HAS EXCEEDED THE SIZE AND STANDARDS ESTABLISHED  FOR  ITS
 INDUSTRY  BY  THE  UNITED STATES SMALL BUSINESS ADMINISTRATION FOR THREE
 YEARS; and
   (e) an enterprise owned by an individual or individuals, whose  owner-
 ship,  control  and operation are relied upon for certification[, with a
 personal net worth that does not exceed three million five hundred thou-
 sand dollars, as adjusted annually on the first of January for inflation
 according to the consumer price index of the previous year] AND THAT HAS
 BEEN AWARDED CONTRACTS BY ONE OR MORE AGENCIES  WITHIN  THE  PAST  THREE
 YEARS WHERE THE TOTAL STATE FUNDING FROM THE EXPENSE AND CAPITAL BUDGETS
 FOR  SUCH  CONTRACTS  WAS EQUAL TO OR GREATER THAN SIXTY MILLION DOLLARS
 AND WHOSE SIZE HAS EXCEEDED  THE  SIZE  STANDARDS  ESTABLISHED  FOR  ITS
 INDUSTRY  BY  THE  UNITED STATES SMALL BUSINESS ADMINISTRATION FOR THREE
 YEARS; and
   20. "Small business" as used in this section, unless  otherwise  indi-
 cated,  shall  mean a business which has a significant business presence
 in the state, is independently owned and operated, not dominant  in  its
 field  and  [employs, based on its industry, a certain number of persons
 as determined by the director, but not to exceed three  hundred,  taking
 into consideration factors which include, but are not limited to, feder-
 al  small  business administration standards] WHOSE SIZE DOES NOT EXCEED
 THE SIZE STANDARDS ESTABLISHED  BY  THE  UNITED  STATES  SMALL  BUSINESS
 ADMINISTRATION  FOR  ITS  INDUSTRY  pursuant  to 13 CFR part 121 and any
 amendments  thereto.  The  director  may  issue   regulations   on   the
 construction of the terms in this definition.
   § 3. Subdivision 19 of section 310 of the executive law is REPEALED.
   §  4.  This  act shall take effect on the ninetieth day after it shall
 have become a law; provided, however, that  the  amendments  to  article
 15-A of the executive law made by sections one and two of this act shall
 not  affect the expiration of such article and shall be deemed to expire
 therewith.