S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   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.
   § 2. This act shall take effect immediately.