NY State Senate Bill 2021-S2564

Senate Bill S2564

2021-2022 Legislative Session

Provides a rebuttable presumption relating to certification as a minority and women-owned business enterprise

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Archive: Last Bill Status - In Senate Committee Procurement And Contracts 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
Jan 05, 2022	referred to procurement and contracts
Jan 21, 2021	referred to procurement and contracts

co-Sponsors

2021-S2564 (ACTIVE) - Details

Current Committee:: Senate Procurement And Contracts
Law Section:: Executive Law
Laws Affected:: Amd §314, Exec L
Versions Introduced in 2019-2020 Legislative Session:: S8975

2021-S2564 (ACTIVE) - Summary

Provides a rebuttable presumption relating to further certification as a minority and women-owned business enterprise if there is no change in the ownership of the enterprise and no material change in the nature or management of the enterprise from the time of approval of the previous minority and women-owned business enterprise certification.

2021-S2564 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2564

SPONSOR: JORDAN
 
TITLE OF BILL:

An act to amend the executive law, in relation to providing a rebuttable
presumption relating to certification as a minority and women-owned
business enterprise

 
SUMMARY OF PROVISIONS:

Section 1 amends section 314 of the executive law relating to the minor-
ity and women-owned business enterprise (MWBE) certification process.
This Section provides that, if there is no change in ownership or mate-
rial change in the nature or management of the MWBE, a rebuttable
presumption exists for that MWBE's recertification.

Section 2 establishes the effective date.

 
JUSTIFICATION:

In 2017, Stefanie Wiley - the proprietor of Hoosick Valley Contractors

applied for recertification for status as a minority and woman-owned
business enterprise (MWBE), a designation which allows for greater
representation within State contracting. Ms. Wiley purchased the busi-
ness in 2014 and received an initial MWBE certification that year. After
nearly three years following her application for recertification, Ms.
Wiley was denied on the grounds that she did not possess "adequate mana-
gerial experience or technical competence to operate the business enter-
prise", despite having now run the business for six years and having
been previously certified to do so.

Stefanie Wiley's case is just one of a large number of cases in which
the application process for the MWBE program - especially with respect
to recertification - is arbitrary and extremely flawed. This legislation
would address some of the more serious concerns with the MWBE process by
creating a rebuttable presumption for recertification. This rebuttable
presumption will only apply in cases, like Ms. Wiley's, where there has
been no material change to the business or change in ownership since the
original certification.  This legislation will help ensure the inclu-
siveness of State contracting and will ensure that minority and women-
owned businesses not be subjected to arbitrary State decision-making
which could hurt their livelihood.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
On the first of July next succeeding the date upon which it shall have
become law and is only applicable to certification applications filed on
or after that date.

2021-S2564 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2564
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 21, 2021
                                ___________
 
 Introduced  by  Sens. JORDAN, TEDISCO -- read twice and ordered printed,
   and when printed to be committed to the Committee on  Procurement  and
   Contracts
 
 AN ACT to amend the executive law, in relation to providing a rebuttable
   presumption  relating  to  certification as a minority and women-owned
   business enterprise

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision  5  of  section  314 of the executive law, as
 amended by chapter 96 of the  laws  of  2019,  is  amended  to  read  as
 follows:
   5.  (A)  With  the  exception  of  provisional  MWBE certification, as
 provided for in subdivision twenty-three of section three hundred ten of
 this article, all minority and women-owned business  enterprise  certif-
 ications shall be valid for a period of five years.
   (B)  UPON THE EXPIRATION OF A MINORITY AND WOMEN-OWNED BUSINESS ENTER-
 PRISE CERTIFICATION AND THE SUBMISSION OF A NEW APPLICATION FOR  FURTHER
 MINORITY  AND WOMEN-OWNED BUSINESS ENTERPRISE CERTIFICATION, IF THERE IS
 NO CHANGE IN THE OWNERSHIP OF THE ENTERPRISE AND NO MATERIAL  CHANGE  IN
 THE  NATURE OR MANAGEMENT OF THE ENTERPRISE FROM THE TIME OF APPROVAL OF
 THE PREVIOUS MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISE CERTIFICATION,
 THERE SHALL BE A REBUTTABLE PRESUMPTION THAT  THE  ENTERPRISE  SATISFIES
 THE  REQUIREMENTS  OF PARAGRAPHS (A), (B) AND (C) OF SUBDIVISION FIFTEEN
 OF SECTION THREE HUNDRED TEN OF THIS ARTICLE.
   § 2. This act shall take effect on the first of July  next  succeeding
 the date upon which it shall have become a law and shall apply to appli-
 cations  submitted  by  a  business  enterprise for further minority and
 women-owned business enterprise certification  submitted  on  and  after
 such  effective  date;  provided,  however,  that the amendments made to
 section 314 of the executive law made  by section 1 of  this  act  shall
 not affect the repeal of such section and shall be deemed repealed ther-
 ewith.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD00865-01-1

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Senate Bill S2564

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Sponsored By

Daphne Jordan