S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3955
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 8, 2023
                                ___________
 
 Introduced  by  M.  of A. BICHOTTE HERMELYN -- read once and referred to
   the Committee on Governmental Operations
 
 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 96 of the laws of 2019, clause  (i)
 as  amended  by  chapter  669 of the laws of 2022, 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 noncitizens;
   (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;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06415-01-3
 A. 3955                             2
              

 
   (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 fifteen million dollars and such
 other amount as the director shall set forth in regulations, 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 RECEIVED BY THE ENTERPRISE  FROM  THE
 EXPENSE  AND  CAPITAL BUDGETS FOR SUCH CONTRACTS WAS EQUAL TO OR GREATER
 THAN SIXTY MILLION DOLLARS, EXCLUSIVE OF ANY PAYMENTS  MADE  TO  SUBCON-
 TRACTORS, AND WHOSE SIZE HAS EXCEEDED THE SIZE STANDARDS ESTABLISHED FOR
 ITS  INDUSTRY  BY  THE  UNITED  STATES SMALL BUSINESS 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
 96 of the laws of 2019 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 fifteen million dollars, and
 such other amount as the director shall set  forth  in  regulations,  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  RECEIVED  BY  THE ENTERPRISE FROM THE EXPENSE AND
 CAPITAL BUDGETS FOR SUCH CONTRACTS WAS EQUAL TO OR  GREATER  THAN  SIXTY
 MILLION  DOLLARS,  EXCLUSIVE OF ANY PAYMENTS MADE TO SUBCONTRACTORS, 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  fifteen  million  dollars,  and
 such  other  amount  as  the director shall set forth in regulations, 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 RECEIVED BY THE ENTERPRISE FROM THE EXPENSE  AND
 CAPITAL BUDGETS FOR SUCH CONTRACTS WAS EQUAL TO  OR  GREATER THAN  SIXTY
 MILLION   DOLLARS, EXCLUSIVE OF ANY PAYMENTS MADE TO SUBCONTRACTORS, 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
 A. 3955                             3
 
 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.