NY State Senate Bill 2023-S9217

Current Bill Status - In Senate Committee Procurement And Contracts 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
May 06, 2024	referred to procurement and contracts

2023-S9217 (ACTIVE) - Details

See Assembly Version of this Bill:: A10492
Current Committee:: Senate Procurement And Contracts
Law Section:: Executive Law
Laws Affected:: Amd §§310 & 314, Exec L

2023-S9217 (ACTIVE) - Summary

Exempts small business enterprises that manufacture metal or vinyl windows and doors from certain employee limits and personal net worth limits for purposes of certification of a minority-owned business enterprise.

2023-S9217 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S9217     Revised 5/7/24

SPONSOR: STAVISKY
 
TITLE OF BILL:

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

 
PURPOSE:

To encourage "Buy New York State."

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill amends subdivision 7 (e) of section 310 of the
executive law so that the personal net worth limits for small businesses
applying for certification as a minority owned business shall not apply
to certain manufacturers of metal or vinyl windows and doors (NAICS
Codes 332321 and 326199) that are located in New York City where at
least eighty percent of its employees working in the New York City
location are minority group members.

Section 2 of the bill amends subdivision 20 of the executive law so that
the three-hundred employee limit shall not apply to certain minority
owned small business enterprises that manufacturer metal or vinyl
windows and doors (NAICS Codes 332321 and 326199) that are located in
New York City where at least eighty percent of its employees working in
the New York City location are minority group members.

Section 3 of the bill amends subdivision 1 of section 314 of the execu-
tive law so that the personal net worth limits for small businesses
applying for certification as a minority owned business shall not apply
to certain manufacturers of metal or vinyl windows and doors (NA1CS
Codes 332321 and 326199) that are located in New York City where at
least eighty percent of its employees working in the New York City
location are minority group members.

Section 4 of the bill amends subdivision 2 -a of section 314 of the
executive law as it relates to municipal certifications so that the
personal net worth limits for small businesses applying for certif-
ication as a minority owned business shall not apply to certain manufac-
turers of metal or vinyl windows and doors (NAICS Codes 332321 and
326199) th at are located in New York City where at least eighty percent
of its employees working in the New York City location are minority
group members.

Section 5 of the bill is the effective date.

 
JUSTIFICATION:

Under Article 15-A of the Executive Law, a small business enterprise can
only receive certification as a minority business enterprise if it has
less than three hundred employees and where the owners of such enter-
prise have a net worth of less than fifteen million dollars.  However,
there are certain small minority owned business enterprises involved in
the window manufacturing business with operations in New York City that
lost their certification when they grew beyond those limits in order to
remain in business. The window manufacturing business is unique in that
companies must reach a larger scale in order to compete and survive.
Window manufacturers must produce on a large scale to meet quantity and
quality demands of contractors and developers that build housing, hospi-
tals, schools, etc. That scale requires larger workforces and greater
capital.

Affordable housing construction projects are increasingly large in size,
require hundreds, if not thousands of quality windows and to the best of
our knowledge there are no NYS MWBE manufacturing firms capable of
supplying such large-scale publicly-funded or subsidized construction
projects. It is clear that the NYS window manufacturing industry is not
sufficiently represented in the pool of MWBE firms, thus they are effec-
tively excluded from participating in the program and helping general
contractors and owners achieve MWBE participation goals.

Manufacturers must operate at a large scale to meet current demand for
high quality, well-engineered and energy efficient windows. New York
must recognize the uniqueness of the industry and allow any large-scale
minority owned window manufacturer operating in New York City to be
given MBE status so it can serve its customers and compete with subsi-
dized foreign window manufacturers that are dumping product into the
United States. This is especially true where such NYC window manufactur-
ing business(es) have a minority employee population that exceeds eighty
percent of their New York workforce.

Finally, it is important to know that the SBA considers a small window
manufacturer as having no more than 750 employees (NAICS Codes 332321
and 326199), not the 300-employee level threshold New York is applying
under existing law. Nor does the SBA make reference to net worth limita-
tions. Moreover, attempts at certifying such window manufacturers that
exceed the limits through a waiver process under Article 15-A have been
rejected even though there is a lack of MWBE participation rate by
window manufacturers so a change in the law is required.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

Encouraging manufacturing will result in increased revenue for the state
of New York and New York City.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S9217 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9217
 
                             I N  S E N A T E
 
                                May 6, 2024
                                ___________
 
 Introduced  by Sen. STAVISKY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Procurement and Contracts
 
 AN ACT to amend the executive law, in relation to  minority  and  women-
   owned business enterprise certification
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Paragraph (e) of subdivision 7 of section 310 of the execu-
 tive law, as amended by chapter 96 of the laws of 2019,  is  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; PROVIDED, HOWEVER, NOTWITH-
 STANDING ANY OTHER PROVISION OF LAW TO THE  CONTRARY,  FOR  PURPOSES  OF
 CERTIFICATION  OF  A  MINORITY-OWNED  BUSINESS  ENTERPRISE UNDER SECTION
 THREE HUNDRED FOURTEEN OF THIS ARTICLE, THE PERSONAL NET WORTH LIMIT  OF
 FIFTEEN  MILLION  DOLLARS  OR MORE SHALL NOT APPLY TO ANY SMALL BUSINESS
 ENTERPRISE THAT MANUFACTURES METAL OR VINYL  WINDOWS  AND  DOORS  (NAICS
 CODES  332321 AND 326199) THAT IS LOCATED IN A CITY WITH A POPULATION OF
 MORE THAN ONE MILLION AND WHERE EIGHTY PERCENT OR MORE OF ITS  EMPLOYEES
 THAT  WORK  AT  SUCH LOCATION IN SUCH CITY ARE MINORITY GROUP MEMBERS AS
 DEFINED IN SUBDIVISION EIGHT OF THIS SECTION; and
   § 2. Subdivision 20 of section 310 of the executive law, as amended by
 chapter 44 of the laws of 2024, is amended to read as follows:
   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, except
 during a declared  state  disaster  emergency  as  defined  pursuant  to
 section  twenty-eight  of  this  chapter,  not  to  exceed three hundred
 employees who work thirty or more hours per  week  over  the  period  of
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD15390-01-4
 S. 9217                             2
 
 fifty-two  weeks  for  a  total of one thousand five hundred sixty hours
 worked, taking into consideration factors which  include,  but  are  not
 limited  to, federal small business administration standards pursuant to
 13  CFR part 121 and any amendments thereto; PROVIDED, HOWEVER, NOTWITH-
 STANDING ANY OTHER PROVISION OF LAW TO THE  CONTRARY,  FOR  PURPOSES  OF
 CERTIFICATION  OF  A  MINORITY-OWNED  BUSINESS  ENTERPRISE UNDER SECTION
 THREE HUNDRED FOURTEEN OF THIS  ARTICLE,  THE  SMALL  BUSINESS  EMPLOYEE
 LIMIT  OF  THREE  HUNDRED  PERSONS  OR MORE SHALL NOT APPLY TO ANY SMALL
 BUSINESS ENTERPRISE THAT MANUFACTURES METAL OR VINYL WINDOWS  AND  DOORS
 (NAICS  CODES  332321 AND 326199) THAT IS LOCATED IN A CITY WITH A POPU-
 LATION OF MORE THAN ONE MILLION AND WHERE EIGHTY PERCENT OR MORE OF  ITS
 EMPLOYEES  THAT  WORK  AT  SUCH LOCATION IN SUCH CITY ARE MINORITY GROUP
 MEMBERS AS DEFINED IN SUBDIVISION EIGHT OF THIS SECTION.   The  director
 may  issue  regulations  on  the construction of the terms in this defi-
 nition. For purposes of this subdivision, an  employee  may  break  from
 employment  for up to thirteen weeks without the fifty-two week lookback
 period resetting.
   § 3. Subdivision 1 of section 314 of the executive law, as amended  by
 chapter 567 of the laws of 2022, is amended to read as follows:
   1.  The  director shall promulgate rules and regulations providing for
 the establishment of a statewide certification program  including  rules
 and regulations governing the approval, denial or revocation of any such
 certification  including  revocations  for  convictions for fraudulently
 misrepresenting the status of minority or  women-owned  business  enter-
 prises.  Such  rules shall set forth the maximum personal net worth of a
 minority group member or woman who may be relied upon to certify a busi-
 ness as a minority-owned business  enterprise  or  women-owned  business
 enterprise  with  a  minimum  personal  net  worth  threshold of fifteen
 million dollars, and may thereafter establish different  maximum  levels
 of  personal net worth for minority group members and women on an indus-
 try-by-industry basis for such industries as the director  shall  deter-
 mine.  Such  regulations relating to the classification of the industry-
 by-industry personal net worth  thresholds  above  the  fifteen  million
 dollar  threshold shall consider the personal net worth of the owners of
 both certified and non-certified businesses, including but  not  limited
 to,  prime  contractors  and  subcontractors,  as well as any such other
 factors needed to establish such thresholds. Such rules and  regulations
 shall include, but not be limited to, such matters as may be required to
 ensure  that  the established procedures thereunder shall at least be in
 compliance with the code of fair procedure set forth in  section  seven-
 ty-three  of the civil rights law, and consistent with the provisions of
 article twenty-three-A of  the  correction  law.    NOTWITHSTANDING  ANY
 PROVISION  OF  THIS  SUBDIVISION  OR  ANY  OTHER PROVISION OF LAW TO THE
 CONTRARY, FOR PURPOSES OF CERTIFICATION  OF  A  MINORITY-OWNED  BUSINESS
 ENTERPRISE,  THE  PERSONAL NET WORTH LIMIT OF FIFTEEN MILLION DOLLARS OR
 MORE SHALL NOT APPLY TO ANY SMALL BUSINESS ENTERPRISE THAT  MANUFACTURES
 METAL OR VINYL WINDOWS AND DOORS (NAICS CODES 332321 AND 326199) THAT IS
 LOCATED  IN  A CITY WITH A POPULATION OF MORE THAN ONE MILLION AND WHERE
 EIGHTY PERCENT OR MORE OF ITS EMPLOYEES THAT WORK AT  SUCH  LOCATION  IN
 SUCH  CITY ARE MINORITY GROUP MEMBERS AS DEFINED IN SUBDIVISION EIGHT OF
 SECTION THREE HUNDRED TEN OF THIS ARTICLE.
   § 4. Subparagraph (vi) of paragraph (a) of subdivision 2-a of  section
 314  of the executive law, as amended by chapter 96 of the laws of 2019,
 is amended to read as follows:
   (vi) be owned  by  an  individual  or  individuals,  whose  ownership,
 control and operation are relied upon for certification, with a personal
 S. 9217                             3
 
 net  worth  that  does not exceed fifteen million dollars and such other
 amount as the director shall set forth in regulations, as adjusted annu-
 ally for inflation according to  the  consumer  price  index;  PROVIDED,
 HOWEVER, NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, FOR
 PURPOSES  OF  CERTIFICATION OF A MINORITY-OWNED BUSINESS ENTERPRISE, THE
 PERSONAL NET WORTH LIMIT OF FIFTEEN MILLION DOLLARS OR  MORE  SHALL  NOT
 APPLY  TO ANY SMALL BUSINESS ENTERPRISE THAT MANUFACTURES METAL OR VINYL
 WINDOWS AND DOORS (NAICS CODES 332321 AND 326199) THAT IS LOCATED  IN  A
 CITY WITH A POPULATION OF MORE THAN ONE MILLION AND WHERE EIGHTY PERCENT
 OR  MORE  OF  ITS  EMPLOYEES THAT WORK AT SUCH LOCATION IN SUCH CITY ARE
 MINORITY GROUP MEMBERS AS DEFINED IN SUBDIVISION EIGHT OF SECTION  THREE
 HUNDRED TEN OF THIS ARTICLE; and
   §  5.  This act shall take effect immediately; provided the amendments
 to article 15-A of the executive law made by sections  one,  two,  three
 and  four  of  this  act shall not affect the repeal of such article and
 shall be deemed repealed therewith.

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Senate Bill S9217

Sponsored By

Current Bill Status - In Senate Committee Procurement And Contracts Committee

2023-S9217 (ACTIVE) - Details

2023-S9217 (ACTIVE) - Summary

2023-S9217 (ACTIVE) - Sponsor Memo

2023-S9217 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S9217

Share this bill

Sponsored By

Toby Ann Stavisky

Current Bill Status - In Senate Committee Procurement And Contracts Committee

2023-S9217 (ACTIVE) - Details

2023-S9217 (ACTIVE) - Summary

2023-S9217 (ACTIVE) - Sponsor Memo

2023-S9217 (ACTIVE) - Bill Text download pdf

Comments