NY State Senate Bill 2017-S8870A

Senate Bill S8870A

Vetoed By Governor

2017-2018 Legislative Session

Relates to the certification classifications for businesses owned by minority group members or women

download bill text pdf

Archive: Last Bill Status Via A10744 - Vetoed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Vetoed By Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 28, 2018	tabled vetoed memo.345
Dec 17, 2018	delivered to governor
Jun 20, 2018	returned to assembly passed senate 3rd reading cal.2069 substituted for s8870a
Jun 20, 2018	substituted by a10744a ordered to third reading cal.2069 committee discharged and committed to rules
Jun 08, 2018	print number 8870a
Jun 08, 2018	amend and recommit to finance
May 30, 2018	referred to finance

Votes

- Jun 20, 2018 - Floor Vote
  A10744
  
  60
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  3
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 20, 2018
      
      aye (60)
      
      Akshar
      
      Alcantara
      
      Amedore
      
      Avella
      
      Bailey
      
      Benjamin
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      DeFrancisco
      
      Dilan
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Helming
      
      Hoylman-Sigal
      
      Jacobs
      
      Kaminsky
      
      Kavanagh
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Marchione
      
      Mayer
      
      Montgomery
      
      Murphy
      
      O'Mara
      
      Ortt
      
      Parker
      
      Peralta
      
      Persaud
      
      Phillips
      
      Ranzenhofer
      
      Ritchie
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Seward
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Valesky
      
      Young
      
      excused (3)
      
      Addabbo Jr.
      
      Croci
      
      Rivera
  Jun 20, 2018 - Rules Committee Vote
  S8870A
  
  23
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 20, 2018
      
      aye (23)
      
      Bonacic
      
      Breslin
      
      DeFrancisco
      
      Dilan
      
      Flanagan
      
      Gianaris
      
      Hannon
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Montgomery
      
      Parker
      
      Ranzenhofer
      
      Robach
      
      Savino
      
      Seward
      
      Stewart-Cousins
      
      Valesky
      
      aye wr (1)
      
      Griffo
      
      excused (1)
      
      Rivera

Bill Amendments

Original

A (Active)

2017-S8870 - Details

See Assembly Version of this Bill:: A10744
Law Section:: Executive Law
Laws Affected:: Amd §§313 & 314, Exec L
Versions Introduced in 2019-2020 Legislative Session:: A7027

2017-S8870 - Summary

Establishes an additional certification classification for minority and women-owned businesses which are ineligible for certification due to exceeding the personal net worth of small business thresholds.

2017-S8870 - Sponsor Memo

                                
 
BILL NUMBER: S8870

SPONSOR: RITCHIE
 
TITLE OF BILL:  An act to amend the executive law, in relation to
certification classifications for businesses owned by minority group
members or women

 
PURPOSE:

The purpose of this bill is to provide a pathway for minority or women
owned businesses that are not eligible to become certified as MWBEs due
to exceeding small business or personal net worth thresholds to partic-
ipate on certain contracts as a certified MWBE.

 
SUMMARY OF PROVISIONS:

Section 1 adds an additional certification classification for MWBEs
currently ineligible for MWBE certification due to personal net worth or
small business thresholds, and requires that these MWBEs be listed sepa-
rately in the directory of certified businesses. Regulations promulgated
for this certification would require demonstrable commitment to "diver-

sity practices" by these separately-listed MWBEs, to include, but not be
limited to: internal procurement practices which include other MWBEs;
joint ventures with other MWBEs; mentoring and training programming for
other MWBEs; and job training and apprenticeship programs which
increases workforce diversity.

Section 2 requires ESDC regulations to provide that these separately-
listed MWBEs are utilized after seeking to contract with other certified
MWBEs has been using commercially reasonable methods.

Section 3 requires contractors to attempt compliance with participation
goals by looking to these separately-listed MWBEs prior to seeking a
partial or full or partial waiver.

Section 4 provides for an effective date.

 
JUSTIFICATION:

In 2014, New York State established a goal of 30 percent for New York's
Minority and Women-Owned Business Enterprises (MWBE) state contract
utilization - the highest goal of any state in the nation.  Unfortunate-
ly, studies have shown that some MWBEs lack the ability to handle larger
projects; this is especially true in construction related industries.
Additionally, it can be hard to find MWBEs in certain areas of the
state, particularly Upstate New York, due to the low numbers of minority
and women-owned firms in those areas. These have been some of the obsta-
cles in fully reaching MWBE goals.

This issue is exacerbated by personal net-worth requirements that only
allow MWBE firms with an owner's personal net worth of less than $3.5
million dollars to be eligible for the program. These two factors have
led to the exclusion of larger minority and/or women owned businesses
that have the capacity, ability, insurance, and financing necessary to
bid on as an MWBE and complete larger projects, particularly
construction related projects. The cost of doing business in the
construction related industries, which served as the basis for the
original statute, is very high.

The NYS 2016 MWBE disparity study analyzed the personal net worth crite-
rion and noted that it exacerbated the financial challenges of MWBEs and
had a potential negative affect on the growth of MWBEs.  Thus, this
legislation was created as a response to the capacity issues experienced
by certain smaller MWBEs and dearth of MWBEs in certain areas of the
state. It is further intended to encourage larger MWBEs to support and
partner with smaller MWBEs to increase their capacity, skill level, and
abilities.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that the
amendments to article 15-A of the executive law made by sections one,
two, and three of this act shall not affect the expiration of such arti-
cle and shall be deemed to expire therewith.

2017-S8870 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8870
 
                             I N  S E N A T E
 
                               May 30, 2018
                                ___________
 
 Introduced  by  Sen. RITCHIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 AN ACT to amend the executive law, in relation to certification  classi-
   fications for businesses owned by minority group members or women
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 314 of the executive law is amended by adding a new
 subdivision 6 to read as follows:
   6. (A) THE  DIRECTOR  SHALL  ESTABLISH  BY  REGULATION  AN  ADDITIONAL
 CERTIFICATION  CLASSIFICATION  FOR  MINORITY  AND WOMEN-OWNED BUSINESSES
 WHICH ARE INELIGIBLE FOR CERTIFICATION PURSUANT TO THIS SECTION  DUE  TO
 EXCEEDING THE PERSONAL NET WORTH OR SMALL BUSINESS THRESHOLDS; PROVIDED,
 HOWEVER, THAT ALL OTHER ELIGIBILITY REQUIREMENTS PURSUANT TO SUBDIVISION
 SEVEN OR FIFTEEN OF SECTION THREE HUNDRED TEN OF THIS ARTICLE, AS APPLI-
 CABLE,  ARE  SATISFIED.  SUCH  ADDITIONAL  CERTIFICATION CLASSIFICATIONS
 SHALL BE LISTED SEPARATELY IN  THE  DIRECTORY  OF  CERTIFIED  BUSINESSES
 REQUIRED  TO  BE PREPARED PURSUANT TO THIS SECTION.  REGULATIONS FOR THE
 CERTIFICATION CLASSIFICATION ESTABLISHED PURSUANT  TO  THIS  SUBDIVISION
 SHALL REQUIRE EACH BUSINESS SEEKING CERTIFICATION TO DEMONSTRATE THAT IT
 ENGAGES IN, AND SIGNIFICANTLY INVESTS IN, DIVERSITY PRACTICES.
   (B)  FOR  PURPOSES OF THIS SUBDIVISION, THE TERM "DIVERSITY PRACTICES"
 SHALL INCLUDE, BUT NOT BE LIMITED TO:
   (I) THE INCLUSION OF MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISES  IN
 PROCUREMENT OPPORTUNITIES WITHIN SUCH BUSINESS;
   (II)  JOINT  VENTURES  BETWEEN  SUCH  BUSINESS  AND OTHER MINORITY AND
 WOMEN-OWNED BUSINESS ENTERPRISES;
   (III) TRAININGS, WORKSHOPS OR  MENTORING  PROGRAMS  CONDUCTED  BY  THE
 BUSINESS FOR OTHER MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISES; AND
   (IV) JOB TRAINING AND APPRENTICESHIP PROGRAMS CONDUCTED BY THE MINORI-
 TY  AND  WOMEN-OWNED  BUSINESS  THAT  RESULT IN A MORE DIVERSE WORKFORCE
 WITHIN SUCH BUSINESS.
   § 2. Paragraphs (h) and (i) of subdivision 2-a of section 313  of  the
 executive  law, as added by chapter 175 of the laws of 2010, are amended
 and a new paragraph (j) is added to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD15809-03-8

 S. 8870                             2
 
   (h) provide for the collection of  statistical  data  by  each  agency
 concerning  actual  minority and women-owned business enterprise partic-
 ipation; [and]
   (i)  require  each  agency to consult the most current disparity study
 when calculating agency-wide and contract specific  participation  goals
 pursuant to this article[.]; AND
   (J)  REQUIRE  THAT BUSINESSES CERTIFIED PURSUANT TO SUBDIVISION SIX OF
 SECTION THREE HUNDRED FOURTEEN  OF  THIS  ARTICLE  ARE  UTILIZED  TOWARD
 CONTRACT  SOLICITATION  GOALS  AFTER  OPPORTUNITIES  TO  MEET SUCH GOALS
 THROUGH CONTRACTS WITH OTHER BUSINESSES CERTIFIED PURSUANT TO THIS ARTI-
 CLE HAVE BEEN EXHAUSTED BY COMMERCIALLY REASONABLE METHODS.
   § 3. Section 313 of the executive law  is  amended  by  adding  a  new
 subdivision 6-a to read as follows:
   6-A.  PRIOR TO REQUESTING A PARTIAL OR TOTAL WAIVER PURSUANT TO SUBDI-
 VISION SIX OF THIS SECTION, A CONTRACTOR SHALL SEEK TO COMPLY  WITH  THE
 MINORITY  AND  WOMEN-OWNED  BUSINESS  ENTERPRISE  PARTICIPATION GOALS BY
 MAKING A GOOD FAITH EFFORT TO CONTRACT WITH A BUSINESS  IN  THE  CERTIF-
 ICATION  CLASSIFICATION  ESTABLISHED  PURSUANT  TO  SUBDIVISION  SIX  OF
 SECTION THREE HUNDRED FOURTEEN OF THIS ARTICLE.
   § 4. This act shall take effect immediately; provided,  however,  that
 the  amendments  to  article  15-A of the executive law made by sections
 one, two and three of this act shall not affect the expiration  of  such
 article and shall be deemed to expire therewith.

co-Sponsors

2017-S8870A (ACTIVE) - Details

See Assembly Version of this Bill:: A10744
Law Section:: Executive Law
Laws Affected:: Amd §§313 & 314, Exec L
Versions Introduced in 2019-2020 Legislative Session:: A7027

2017-S8870A (ACTIVE) - Summary

2017-S8870A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8870A

SPONSOR: RITCHIE
 
TITLE OF BILL:  An act to amend the executive law, in relation to
certification classifications for businesses owned by minority group
members or women

 
PURPOSE:

The purpose of this bill is to provide a pathway for minority or women
owned businesses that are not eligible to become certified as MWBEs due
to exceeding small business or personal net worth thresholds to partic-
ipate on certain contracts as a certified MWBE.

 
SUMMARY OF PROVISIONS:

Section 1 adds an additional certification classification for MWBEs
currently ineligible for MWBE certification due to personal net worth or
small business thresholds, and requires that these MWBEs be listed sepa-
rately in the directory of certified businesses. Regulations promulgated
for this certification would require demonstrable commitment to "diver-

sity practices" by these separately-listed MWBEs, to include, but not be
limited to: internal procurement practices which include other MWBEs;
joint ventures with other MWBEs; mentoring and training programming for
other MWBEs; and job training and apprenticeship programs which
increases workforce diversity. Such regulations promulgated for the
certification under this subdivision shall not impose additional thresh-
olds on personal net worth or the size of such business.

Section 2 requires ESDC regulations to provide that these separately-
listed MWBEs are utilized after seeking to contract with other certified
MWBEs has been using commercially reasonable methods.

Section 3 requires contractors to attempt compliance with participation
goals by looking to these separately-listed MWBEs prior to seeking a
partial or full or partial waiver.

Section 4 provides for an effective date.

 
JUSTIFICATION:

In 2014, New York State established a goal of 30 percent for New York's
Minority and Women-Owned Business Enterprises (MWBE) state contract
utilization - the highest goal of any state in the nation.  Unfortunate-
ly, studies have shown that some MWBEs lack the ability to handle larger
projects; this is especially true in construction related industries.
Additionally, it can be hard to find MWBEs in certain areas of the
state, particularly Upstate New York, due to the low numbers of minority
and women-owned firms in those areas. These have been some of the obsta-
cles in fully reaching MWBE goals.

This issue is exacerbated by personal net-worth requirements that only
allow MWBE firms with an owner's personal net worth of less than $3.5
million dollars to be eligible for the program. These two factors have
led to the exclusion of larger minority and/or women owned businesses
that have the capacity, ability, insurance, and financing necessary to
bid on as an MWBE and complete larger projects, particularly
construction related projects. The cost of doing business in the

construction related industries, which served as the basis for the
original statute, is very high.

The NYS 2016 MWBE disparity study analyzed the personal net worth crite-
rion and noted that it exacerbated the financial challenges of MWBEs and
had a potential negative affect on the growth of MWBEs.  Thus, this
legislation was created as a response to the capacity issues experienced
by certain smaller MWBEs and dearth of MWBEs in certain areas of the
state. It is further intended to encourage larger MWBEs to support and
partner with smaller MWBEs to increase their capacity, skill level, and
abilities.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that the
amendments to article 15-A of the executive law made by sections one,
two and three of this act shall not affect the expiration of such arti-
cle and shall be deemed to expire therewith.

2017-S8870A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8870--A
 
                             I N  S E N A T E
 
                               May 30, 2018
                                ___________
 
 Introduced  by  Sen. RITCHIE -- read twice and ordered printed, and when
   printed to be committed to  the  Committee  on  Finance  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT to amend the executive law, in relation to certification classi-
   fications for businesses owned by minority group members or women

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 314 of the executive law is amended by adding a new
 subdivision 6 to read as follows:
   6.  (A)  THE  DIRECTOR  SHALL  ESTABLISH  BY  REGULATION AN ADDITIONAL
 CERTIFICATION CLASSIFICATION FOR  MINORITY  AND  WOMEN-OWNED  BUSINESSES
 WHICH  ARE  INELIGIBLE FOR CERTIFICATION PURSUANT TO THIS SECTION DUE TO
 EXCEEDING THE PERSONAL NET WORTH OR SMALL BUSINESS THRESHOLDS; PROVIDED,
 HOWEVER, THAT ALL OTHER ELIGIBILITY REQUIREMENTS PURSUANT TO SUBDIVISION
 SEVEN OR FIFTEEN OF SECTION THREE HUNDRED TEN OF THIS ARTICLE, AS APPLI-
 CABLE, ARE SATISFIED.  SUCH  REGULATIONS  SHALL  NOT  IMPOSE  ADDITIONAL
 THRESHOLDS  ON  PERSONAL NET WORTH OR THE SIZE OF SUCH BUSINESSES.  SUCH
 ADDITIONAL CERTIFICATION CLASSIFICATIONS SHALL BE LISTED  SEPARATELY  IN
 THE  DIRECTORY  OF CERTIFIED BUSINESSES REQUIRED TO BE PREPARED PURSUANT
 TO THIS SECTION.    REGULATIONS  FOR  THE  CERTIFICATION  CLASSIFICATION
 ESTABLISHED  PURSUANT  TO  THIS  SUBDIVISION SHALL REQUIRE EACH BUSINESS
 SEEKING CERTIFICATION TO DEMONSTRATE THAT IT  ENGAGES  IN,  AND  SIGNIF-
 ICANTLY INVESTS IN, DIVERSITY PRACTICES.
   (B)  FOR  PURPOSES OF THIS SUBDIVISION, THE TERM "DIVERSITY PRACTICES"
 SHALL INCLUDE, BUT NOT BE LIMITED TO:
   (I) THE INCLUSION OF MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISES  IN
 PROCUREMENT OPPORTUNITIES WITHIN SUCH BUSINESS;
   (II)  JOINT  VENTURES  BETWEEN  SUCH  BUSINESS  AND OTHER MINORITY AND
 WOMEN-OWNED BUSINESS ENTERPRISES;
   (III) TRAININGS, WORKSHOPS OR  MENTORING  PROGRAMS  CONDUCTED  BY  THE
 BUSINESS FOR OTHER MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISES; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15809-04-8

 S. 8870--A                          2
 
   (IV) JOB TRAINING AND APPRENTICESHIP PROGRAMS CONDUCTED BY THE MINORI-
 TY  AND  WOMEN-OWNED  BUSINESS  THAT  RESULT IN A MORE DIVERSE WORKFORCE
 WITHIN SUCH BUSINESS.
   §  2.  Paragraphs (h) and (i) of subdivision 2-a of section 313 of the
 executive law, as added by chapter 175 of the laws of 2010, are  amended
 and a new paragraph (j) is added to read as follows:
   (h)  provide  for  the  collection  of statistical data by each agency
 concerning actual minority and women-owned business  enterprise  partic-
 ipation; [and]
   (i)  require  each  agency to consult the most current disparity study
 when calculating agency-wide and contract specific  participation  goals
 pursuant to this article[.]; AND
   (J)  REQUIRE  THAT BUSINESSES CERTIFIED PURSUANT TO SUBDIVISION SIX OF
 SECTION THREE HUNDRED FOURTEEN  OF  THIS  ARTICLE  ARE  UTILIZED  TOWARD
 CONTRACT  SOLICITATION  GOALS  AFTER  OPPORTUNITIES  TO  MEET SUCH GOALS
 THROUGH CONTRACTS WITH OTHER BUSINESSES CERTIFIED PURSUANT TO THIS ARTI-
 CLE HAVE BEEN EXHAUSTED BY COMMERCIALLY REASONABLE METHODS.
   § 3. Section 313 of the executive law  is  amended  by  adding  a  new
 subdivision 6-a to read as follows:
   6-A.  PRIOR TO REQUESTING A PARTIAL OR TOTAL WAIVER PURSUANT TO SUBDI-
 VISION SIX OF THIS SECTION, A CONTRACTOR SHALL SEEK TO COMPLY  WITH  THE
 MINORITY  AND  WOMEN-OWNED  BUSINESS  ENTERPRISE  PARTICIPATION GOALS BY
 MAKING A GOOD FAITH EFFORT TO CONTRACT WITH A BUSINESS  IN  THE  CERTIF-
 ICATION  CLASSIFICATION  ESTABLISHED  PURSUANT  TO  SUBDIVISION  SIX  OF
 SECTION THREE HUNDRED FOURTEEN OF THIS ARTICLE.
   § 4. This act shall take effect immediately; provided,  however,  that
 the  amendments  to  article  15-A of the executive law made by sections
 one, two and three of this act shall not affect the expiration  of  such
 article and shall be deemed to expire therewith.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.