BILL NUMBER: S7371

SPONSOR: SANDERS
 
TITLE OF BILL:

An act to amend the executive law, in relation to reciprocal minority
and women-owned business enterprise certification

 
SUMMARY OF PROVISIONS:

This act contains two sections. Section one of the act would amend
subdivision 2-a of section 314 of the Executive Law by adding a new
paragraph (d), which would provide that the Director of the Division of
Minority and Women's Business Development of the New York State Depart-
ment of Economic Development (better known as Empire State Development
("ESD")) and the Mayor of a city with a population greater than
1,000,000 persons may enter into a memorandum of understanding providing
for the reciprocal acceptance of minority and women-owned business
enterprise ("MWBE") certification between an MWBE program operated by
such city and the New York State MWBE program operated by ESD. This
paragraph would authorize this memorandum of understanding to include
one or more exemptions where such exemptions are in the best interest of
both programs. This paragraph would also clarify that this memorandum of
              

understanding would not restrict each program from amending their
respective certification standards and processes.

Section two of the act provides that the act would take effect 270 days
after it becomes law, provided that the amendments made by section one
of this act would not affect the expiration of article 15-A of the Exec-
utive Law pursuant to chapter 261 of the laws of 1988, as amended, and
would expire and be deemed repealed along with article 15-A.

 
REASONS FOR SUPPORT:

The most recent disparity studies conducted by both the State of New
York ("State") and the City of New York ("City") demonstrate that
discrimination continues to affect MWBEs seeking to do business in the
markets where the City and the State conduct their procurements.  The
State and City are committed to addressing these disparities by operat-
ing MWBE programs that encourage the participation of MWBEs in their
respective procurements. The pool of firms that wish to participate in
procurements at both the City and State level is significant: more than
40% of firms certified by the State are also certified by the City.

Currently, the process to establish and to maintain certification at
both levels of government can be administratively burdensome for MWBEs.
These separate and duplicative processes lead to cost, confusion, and
lost opportunities for MWBEs and complicate the work of all entities
-including government agencies, prime vendors, and other private sector
entities- seeking to do business with MWBEs.  By authorizing reciprocal
certification, this act would enable the establishment of a procedure
focused on coordination and partnership between the City and State, and
would eliminate the layered administrative burdens current imposed by
the existing regulatory landscape. This change would increase the
success of both the City's and the State's MWBE programs.

Accordingly, the Mayor urges the earliest possible favorable consider-
ation of this proposal by the Legislature.