A 7114: Relates to criteria for certification by the division of minority and women's business development of MWBE status; replaces the personal net worth limitation with a requirement that a business have 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.

  
  STATE OF NEW YORK ________________________________________________________________________ 7114 2025-2026 Regular Sessions  IN ASSEMBLY March 20, 2025 ___________ Introduced by M. of A. BICHOTTE HERMELYN, DAVILA -- 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: 1 Section 1. Paragraph (a) of subdivision 2-a of section 314 of the 2 executive law, as amended by chapter 96 of the laws of 2019, subpara- 3 graph (i) as amended by chapter 669 of the laws of 2022, is amended to 4 read as follows: 5 (a) The director shall establish a procedure enabling the office to 6 accept New York municipal corporation certification verification for 7 minority and women-owned business enterprise applicants in lieu of 8 requiring the applicant to complete the state certification process. The 9 director shall promulgate rules and regulations to set forth criteria 10 for the acceptance of municipal corporation certification. All eligible 11 municipal corporation certifications shall require business enterprises 12 seeking certification to meet the following standards: 13 (i) have at least fifty-one percent ownership by a minority or a 14 women-owned enterprise and be owned by United States citizens or perma- 15 nent resident noncitizens; 16 (ii) be an enterprise in which the minority and/or women-ownership 17 interest is real, substantial and continuing; 18 (iii) be an enterprise in which the minority and/or women-ownership 19 has and exercises the authority to control independently the day-to-day 20 business decisions of the enterprise; 21 (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. LBD11064-01-5 
 A. 7114 2 1 (v) be subject to a physical site inspection to verify the fifty-one 2 percent ownership requirement; 3 (vi) be owned by an individual or individuals, whose ownership, 4 control and operation are relied upon for certification[, with a 5 personal net worth that does not exceed fifteen million dollars and such 6 other amount as the director shall set forth in regulations, as adjusted 7 annually for inflation according to the consumer price index] and that 8 has been awarded contracts by one or more agencies within the past three 9 years where the total city funding received by the enterprise from the 10 expense and capital budgets for such contracts was equal to or greater 11 than sixty million dollars, exclusive of any payments made to subcon- 12 tractors, and whose size has exceeded the size standards established for 13 its industry by the United States small business administration for 14 three years; and 15 (vii) be an enterprise that is a small business pursuant to subdivi- 16 sion twenty of section three hundred ten of this article. 17 § 2. Paragraph (e) of subdivision 7, paragraph (e) of subdivision 15 18 and subdivision 20 of section 310 of the executive law, paragraph (e) of 19 subdivision 7 and paragraph (e) of subdivision 15 as amended by chapter 20 96 of the laws of 2019 and subdivision 20 as amended by chapter 44 of 21 the laws of 2024, are amended to read as follows: 22 (e) an enterprise owned by an individual or individuals, whose owner- 23 ship, control and operation are relied upon for certification[, with a 24 personal net worth that does not exceed fifteen million dollars, and 25 such other amount as the director shall set forth in regulations, as 26 adjusted annually on the first of January for inflation according to the 27 consumer price index of the previous year] and that has been awarded 28 contracts by one or more agencies within the past three years where the 29 total state funding received by the enterprise from the expense and 30 capital budgets for such contracts was equal to or greater than sixty 31 million dollars, exclusive of any payments made to subcontractors, and 32 whose size has exceeded the size and standards established for its 33 industry by the United States small business administration for three 34 years; and 35 (e) an enterprise owned by an individual or individuals, whose owner- 36 ship, control and operation are relied upon for certification[, with a 37 personal net worth that does not exceed fifteen million dollars, and 38 such other amount as the director shall set forth in regulations, as 39 adjusted annually on the first of January for inflation according to the 40 consumer price index of the previous year] and that has been awarded 41 contracts by one or more agencies within the past three years where 42 the total state funding received by the enterprise from the expense and 43 capital budgets for such contracts was equal to or greater than sixty 44 million dollars, exclusive of any payments made to subcontractors, and 45 whose size has exceeded the size standards established for its industry 46 by the United States small business administration for three years; 47 and 48 20. "Small business" as used in this section, unless otherwise indi- 49 cated, shall mean a business which has a significant business presence 50 in the state, is independently owned and operated, not dominant in its 51 field and [employs, based on its industry, a certain number of persons 52 as determined by the director, but not to exceed three hundred, except 53 during a declared state disaster emergency as defined pursuant to 54 section twenty-eight of this chapter, not to exceed three hundred 55 employees who work thirty or more hours per week over the period of 56 fifty-two weeks for a total of one thousand five hundred sixty hours 
 A. 7114 3 1 worked, taking into consideration factors which include, but are not 2 limited to, federal small business administration standards] whose size 3 does not exceed the size standards established by the United States 4 small business administration for its industry pursuant to 13 CFR part 5 121 and any amendments thereto. The director may issue regulations on 6 the construction of the terms in this definition. For purposes of this 7 subdivision, an employee may break from employment for up to thirteen 8 weeks without the fifty-two week lookback period resetting. 9 § 3. Subdivision 19 of section 310 of the executive law is REPEALED. 10 § 4. This act shall take effect on the ninetieth day after it shall 11 have become a law; provided, however, that the amendments to article 12 15-A of the executive law made by sections one and two of this act shall 13 not affect the expiration of such article and shall be deemed to expire 14 therewith.