S T A T E O F N E W Y O R K
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10128
I N A S S E M B L Y
May 6, 2024
___________
Introduced by M. of A. HYNDMAN -- read once and referred to the Commit-
tee on Governmental Operations
AN ACT in relation to commissioning a disparity study to determine the
level of participation of women and minority businesses in state
contracting and requires establishment of programs and goals based on
the results of such study
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. 1. Definitions. As used in this section, the following
terms shall have the following meanings:
(a) "Department" means the department of economic development.
(b) "Minority" means an individual who is a member of a race which
comprises less than 50 percent of the total population of this state.
(c) "Minority-owned business enterprise" shall mean a business enter-
prise, including a sole proprietorship, partnership, limited liability
company or corporation that is:
(i) at least fifty-one percent owned by one or more minority group
members;
(ii) an enterprise in which such minority ownership is real, substan-
tial and continuing;
(iii) an enterprise in which such minority ownership has and exercises
the authority to control independently the day-to-day business decisions
of the enterprise;
(iv) an enterprise authorized to do business in this state and inde-
pendently owned and operated;
(v) 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 $15,000,000, and such other
amount as the director shall set forth in regulations, as adjusted annu-
ally on the first of January for inflation according to the consumer
price index of the previous year; and
(vi) an enterprise that is a small business.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15302-01-4
A. 10128 2
(d) "Minority group member" shall mean a United States citizen or
permanent resident noncitizen who is and can demonstrate membership in
one of the following groups:
(i) Black persons having origins in any of the Black African racial
groups;
(ii) Hispanic/Latino persons of Mexican, Puerto Rican, Dominican,
Cuban, Central or South American of either Indian or Hispanic origin,
regardless of race;
(iii) Native American or Alaskan native persons having origins in any
of the original peoples of North America;
(iv) Asian and Pacific Islander persons having origins in any of the
Far East countries, South East Asia, the Indian subcontinent or the
Pacific Islands.
(e) "Women-owned business enterprise" shall mean a business enter-
prise, including a sole proprietorship, partnership, limited liability
company or corporation that is:
(i) at least fifty-one percent owned by one or more United States
citizens or permanent resident noncitizens who are women;
(ii) an enterprise in which the ownership interest of such women is
real, substantial and continuing;
(iii) an enterprise in which such women ownership has and exercises
the authority to control independently the day-to-day business decisions
of the enterprise;
(iv) an enterprise authorized to do business in this state and inde-
pendently owned and operated;
(v) 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 $15,000,000, and such other
amount as the director shall set forth in regulations, as adjusted annu-
ally on the first of January for inflation according to the consumer
price index of the previous year; and
(vi) an enterprise that is a small business pursuant to subdivision
twenty of this section.
A firm owned by a minority group member who is also a woman may be
certified as a minority-owned business enterprise, a women-owned busi-
ness enterprise, or both, and may be counted towards either a minority-
owned business enterprise goal or a women-owned business enterprise
goal, in regard to any contract or any goal, set by an agency or author-
ity, but such participation may not be counted towards both such goals.
Such an enterprise's participation in a contract may not be divided
between the minority-owned business enterprise goal and the women-owned
business enterprise goal.
2. Disparity study. (a) The department shall commission a state-wide
disparity study regarding the participation of minority-owned business
enterprises and women-owned business enterprises in state contracts to
be delivered to the governor and the legislature no later than January
1, 2026. The study shall be prepared by an independent entity and
selected through a request for proposal process. The study shall deter-
mine:
(i) Whether there is a disparity between the number of qualified
minority-owned business enterprises and women-owned business enterprises
ready, willing, and able to perform state contracts and the number of
such contractors actually engaged to perform such contracts; and
(ii) What changes, if any, should be made to state policies affecting
minority-owned business enterprises and women-owned business enter-
prises.
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(b) Upon completion of the study, the department shall post such study
on its website.
(c) Within one year of the completion of the state-wide disparity
study commissioned pursuant to this subdivision, the department shall:
(i) Provide goals for equitable participation of minority-owned busi-
ness enterprises and women-owned business enterprises in the performance
of state contracts to the extent that any disparity is revealed by such
study;
(ii) Establish procedures to ensure that minority-owned business
enterprises and women-owned business enterprises shall be given the
opportunity for equitable participation in the performance of state
contracts and to assist in identifying those state contracts for which
minority-owned business enterprises and women-owned business enterprises
may best bid to achieve the goals set forth pursuant to this subdivi-
sion;
(iii) Provide for the certification and decertification of minority-
owned business enterprises and women-owned business enterprises as such
and the maintenance by the department of a current list of certified
minority-owned business enterprises and women-owned business enter-
prises; and
(iv) Collect statistical data concerning actual participation of
minority-owned business enterprises and women-owned business enterprises
in state contracting.
(d) All contracting agencies, where practicable, feasible, and appro-
priate, shall assess the diversity practices of contractors submitting
bids or proposals in connection with the award of a state contract and
promote the achievement of goals set forth by the department pursuant to
paragraph (c) of this subdivision.
ยง 2. This act shall take effect immediately.