NY State Senate Bill 2017-S7892A

Senate Bill S7892A

2017-2018 Legislative Session

Relates to criteria for certification by the division of minority and women's business development of MWBE status; repealer

download bill text pdf

Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 21, 2018	print number 7892a
Mar 21, 2018	amend (t) and recommit to finance
Mar 07, 2018	referred to finance

Bill Amendments

Original

A (Active)

2017-S7892 - Details

See Assembly Version of this Bill:: A9977
Current Committee:: Senate Finance
Law Section:: Executive Law
Laws Affected:: Amd §§314 & 310, rpld §310 sub 19, Exec L
Versions Introduced in Other Legislative Sessions:: 2019-2020: A6223
2021-2022: A6729
2023-2024: A3955

2017-S7892 - Summary

Relates to criteria for certification by the division of minority and women's business development of MWBE status.

2017-S7892 - Sponsor Memo

                                
 
BILL NUMBER: S7892

SPONSOR: LITTLE
 
TITLE OF BILL:  An act to amend the executive law, in relation to
criteria for certification by the division of minority and women's busi-
ness development of minority and women-owned business enterprise status

 
PURPOSE:

The purpose of this bill is to redefine the criteria for certified
minority and women-owned business enterprise (MWBE) 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 pertain 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 (3consecutive years) and by changing the
definition of Small business as it pertain to size pursuant to the
United States Small Business Administration Size Standards.  The direc-
tor shall promulgate rules and regulations to set forth criteria for the
acceptance of the DD Form 214.

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 because of an unnecessary personal Net worth that was included
in the program in 2010. New York State has demonstrated the highest
scrutiny standard with a comprehensive disparity study abiding by the
Croson vs Richmond Supreme Court Ruling. 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:

This is a new bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
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.

2017-S7892 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7892
 
                             I N  S E N A T E
 
                               March 7, 2018
                                ___________
 
 Introduced  by  Sen.  LITTLE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 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
 
   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
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD14740-04-8

 S. 7892                             2
 
 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. 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.

2017-S7892A (ACTIVE) - Details

See Assembly Version of this Bill:: A9977
Current Committee:: Senate Finance
Law Section:: Executive Law
Laws Affected:: Amd §§314 & 310, rpld §310 sub 19, Exec L
Versions Introduced in Other Legislative Sessions:: 2019-2020: A6223
2021-2022: A6729
2023-2024: A3955

2017-S7892A (ACTIVE) - Summary

Relates to criteria for certification by the division of minority and women's business development of MWBE status.

2017-S7892A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7892A

SPONSOR: LITTLE
 
TITLE OF BILL:  An act to amend the executive law, in relation to
criteria for certification by the division of minority and women's busi-
ness 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 (MWBE) 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 pertain 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.

The director shall promulgate rules and regulations to set forth crite-
ria for the acceptance of the DD Form 214.

Section 3 repeals subdivision 19 of section 310 of the executive law.

Section 4 establishes 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 because of an unnecessary personal Net worth that was included
in the program in 2010. New York State has demonstrated the highest
scrutiny standard with a comprehensive disparity study abiding by the
Croson vs Richmond Supreme Court Ruling. 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:

This is a new bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
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.

2017-S7892A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7892--A
 
                             I N  S E N A T E
 
                               March 7, 2018
                                ___________
 
 Introduced  by  Sen.  LITTLE -- read twice and ordered printed, and when
   printed to be committed to  the  Committee  on  Finance  --  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;

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD14740-06-8

 S. 7892--A                          2
 
   (vi)  be  owned  by  an  individual  or  individuals, whose ownership,
 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  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.

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