NY State Senate Bill 2023-S8477

Senate Bill S8477

2023-2024 Legislative Session

Relates to additional duties and reporting requirements of the advisory panel on employee-owned enterprises

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Current Bill Status - In Senate Committee Commerce, Economic Development And Small Business 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 02, 2024	referred to commerce, economic development and small business

co-Sponsors

2023-S8477 (ACTIVE) - Details

See Assembly Version of this Bill:: A10513
Current Committee:: Senate Commerce, Economic Development And Small Business
Law Section:: Economic Development Law
Laws Affected:: Amd §139, Ec Dev L; amd §2, Chap 435 of 2017

2023-S8477 (ACTIVE) - Summary

Directs the advisory panel on employee-owned enterprises to evaluate barriers to certification as MWBEs for employee-owned businesses and recommend strategies for continuation of certified business enterprises upon the transfer or sale of such business; extends the expiration date of the panel.

2023-S8477 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8477

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend the economic development law, in relation to additional
duties and reporting requirements of the advisory panel on employee-
owned enterprises; and to amend chapter 435 of the laws of 2017, amend-
ing the economic development law relating to establishing an advisory
panel on employee-owned enterprises  within the division of small busi-
ness services, in relation to the effectiveness thereof

 
PURPOSE OR GENERAL IDEA OF BILL:

To require that the advisory panel on employee-owned enterprises examine
and report on the barriers for such businesses to certify for and
participate in the state MWBE program, strategies to reduce those barri-
ers, and identify ways to encourage minority and women-owned businesses
to consider employee-ownership as part of their business succession
planning.

 
SUMMARY OF PROVISIONS:

Section 1 requires the advisory panel to evaluate and include in its
report the barriers to MWBE certification and participation in state
agency contracts for employee-owned enterprises, identify changes to
state law and Article 15-a that could reduce these barriers, and identi-
fy and recommend strategies that the director of the division on minori-
ty and women's business development could take to aid these businesses
in navigating the certification process. It would also require the panel
to identify and recommend strategies to promote the employee ownership
model to minority and women- owned businesses as part of their
succession planning.

Section 2 extends the reporting deadline for the panel's findings to
June 13, 2025 and requires the report to be sent to the chair of the
select majority task force on minority and women-owned business enter-
prises and the director of the division of minority and women's business
development.

Section 3 extends the date that the provisions establishing the advisory
panel and its duties expire by a year to October 1, 2025.

Section 4 sets the effective date.

 
JUSTIFICATION:

A study recently found that 45 percent of small businesses lack a
succession plan. One version of a succession plan that is often over-
looked is moving toward an employee ownership model, which has been
proven to lead to higher wages, better benefits, and more job stability
for employees. This bill would require the advisory panel to identify
and recommend strategies to better highlight employee ownership as an
option for the many minority and women-owned businesses that lack a
clear succession plan.

However, transitioning to this ownership model or maintaining employee-
ownership may be difficult for businesses that wish to certify or recer-
tify with the state MWBE program, as various certification requirements
in Article 15-a assume one business owner or a small group with finan-
cial and strategic control. This bill would require the advisory panel
to examine changes to state law and Article-15a that may benefit employ-
ee-owned enterprises in the certification process and as they look to
participate in state agency contracts. It would also require the advi-
sory panel identify ways the director of the division on minority and
women's business development could aid employee-owned enterprises in
certification and participation in the state's MWBE program.

The advisory panel on employee-owned enterprises has repeatedly received
an extension on their reporting deadline. This bill provides another
extension, with the condition that the panel closely examine and report
on issues related to the employee-ownership model for minority and
women-owned businesses in addition to their other statutory require-
ments.

 
PRIOR LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
This act will take effect immediately; provided that the amendments to
subdivisions 4 and 5 of section 139 of the economic development law made
by sections one and two of this act shall not affect the repeal of such
section and shall be deemed repealed therewith.

2023-S8477 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8477
 
                             I N  S E N A T E
 
                             February 2, 2024
                                ___________
 
 Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
   printed  to be committed to the Committee on Commerce, Economic Devel-
   opment and Small Business
 
 AN ACT to amend the economic development law, in relation to  additional
   duties  and  reporting requirements of the advisory panel on employee-
   owned enterprises; and to amend chapter  435  of  the  laws  of  2017,
   amending  the  economic  development  law  relating to establishing an
   advisory  panel on employee-owned enterprises  within the division  of
   small business services, in relation to the effectiveness thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraphs (h) and (i) of subdivision 4 of section  139  of
 the  economic  development law are relettered paragraphs (k) and (l) and
 three new paragraphs (h), (i) and (j) are added to read as follows:
   (H) EVALUATE BARRIERS FOR EMPLOYEE-OWNED ENTERPRISES TO  BE  CERTIFIED
 IN  THE  STATEWIDE  CERTIFICATION  PROGRAM  FOR MINORITY AND WOMEN-OWNED
 BUSINESSES AS OUTLINED IN SECTION THREE HUNDRED FOURTEEN OF  THE  EXECU-
 TIVE  LAW  AND TO PARTICIPATE IN STATE AGENCY CONTRACTS, AND EXAMINE AND
 IDENTIFY CHANGES TO STATE LAWS, INCLUDING ARTICLE FIFTEEN-A OF THE EXEC-
 UTIVE LAW, WHICH SHALL REDUCE  BARRIERS  TO  CERTIFICATION  AND  PARTIC-
 IPATION IN THE PERFORMANCE OF STATE CONTRACTS;
   (I)  IDENTIFY  AND RECOMMEND STRATEGIES THAT THE DIRECTOR OF THE DIVI-
 SION OF MINORITY AND WOMEN'S BUSINESS DEVELOPMENT, AS DEFINED BY SECTION
 THREE HUNDRED ELEVEN OF THE  EXECUTIVE  LAW,  COULD  IMPLEMENT  TO  HELP
 EMPLOYEE-OWNED  ENTERPRISES  CONFIRM  THEIR QUALIFICATIONS FOR THE STATE
 CERTIFICATION PROGRAM FOR MINORITY AND WOMEN-OWNED BUSINESSES,  NAVIGATE
 THE  STATE  CERTIFICATION  PROCESS,  AND  PARTICIPATE  IN  STATE  AGENCY
 CONTRACTS;
   (J) IDENTIFY AND RECOMMEND STRATEGIES, INCLUDING THOSE THAT THE DIREC-
 TOR OF THE DIVISION OF MINORITY AND WOMEN'S BUSINESS  DEVELOPMENT  COULD
 IMPLEMENT, TO FACILITATE THE CREATION OF EMPLOYEE-OWNED ENTERPRISES THAT
 PROMOTE THE CONTINUATION OF EXISTING MINORITY AND WOMEN-OWNED BUSINESSES
 EITHER  AS  PART OF A PRE-EXISTING BUSINESS SUCCESSION OF OWNERSHIP PLAN
 OR AS AN ALTERNATIVE OPTION IF A BUSINESS IS BEING OFFERED FOR  SALE  OR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD14351-01-4
 S. 8477                             2

 TRANSFER  BY  THE  CURRENT  OWNER  OR  THE HEIRS OR ESTATE OF A DECEASED
 OWNER;
   §  2. Subdivision 5 of section 139 of the economic development law, as
 amended by chapter 159 of the laws  of  2023,  is  amended  to  read  as
 follows:
   5.  Reporting.  The  advisory panel shall issue a report no later than
 June thirtieth, two thousand  [twenty-four]  TWENTY-FIVE  outlining  the
 findings and recommendations of the panel. The report shall be delivered
 to the governor, the speaker of the assembly, the temporary president of
 the  senate, the minority leader of the assembly, the minority leader of
 the senate, the chair of the assembly committee on ways and  means,  the
 chair  of  the  senate  committee  on finance, the chair of the assembly
 committee on economic development, the chair of the  assembly  committee
 on  small  business,  the  chair  of  the  senate committee on commerce,
 economic development, and small business,  the  chair  of  the  assembly
 committee  on  labor,  [and] the chair of the senate committee on labor,
 THE CHAIR OF THE SELECT MAJORITY TASK FORCE ON MINORITY AND  WOMEN-OWNED
 BUSINESS  ENTERPRISES,  AND THE DIRECTOR OF THE DIVISION OF MINORITY AND
 WOMEN'S BUSINESS DEVELOPMENT.
   § 3. Section 2 of chapter 435  of  the  laws  of  2017,  amending  the
 economic  development  law relating to establishing an advisory panel on
 employee-owned  enterprises  within  the  division  of  small   business
 services,  as  amended by chapter 159 of the laws of 2023, is amended to
 read as follows:
   § 2. This act shall take effect immediately and shall  expire  October
 1,  [2024]  2025 when upon such date the provisions of this act shall be
 deemed repealed.
   § 4. This act shall take effect immediately; provided that the  amend-
 ments  to  subdivisions 4 and 5  of section 139 of the economic develop-
 ment law made by sections one and two of this act shall not  affect  the
 repeal of such section and shall be deemed repealed therewith.

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Senate Bill S8477

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Sponsored By

Andrew Gounardes