NY State Senate Bill 2023-S6566

Senate Bill S6566

2023-2024 Legislative Session

Exempts certain business enterprise subcontractors who seek to do work with not-for-profit corporations from certain requirements

download bill text pdf

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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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to procurement and contracts
Apr 26, 2023	referred to procurement and contracts

2023-S6566 (ACTIVE) - Details

Current Committee:: Senate Procurement And Contracts
Law Section:: Executive Law
Laws Affected:: Amd §314, Exec L

2023-S6566 (ACTIVE) - Summary

Authorizes certain business enterprise subcontractors who seek to do work with not-for-profit corporations to receive MWBE certification if certain criteria is met; imposes a $50,001 limit on the provision of such services or work; makes related provisions.

2023-S6566 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6566

SPONSOR: CHU
 
TITLE OF BILL:

An act to amend the executive law, in relation to exempting certain
business enterprise subcontractors who seek to do work with not-for-pro-
fit corporations from certain requirements

 
PURPOSE:

The purpose of this bill is to provide an alternative method for the
MWBE certification of small, ad-hoc, subcontractors of non-profits.

 
SUMMARY OF PROVISIONS:

Section 1. Amends Section 314 by adding a new subdivision, 2-d, direct-
ing the Director of Division of Minority and Women's Business Develop-
ment to create a procedure, in lieu of full MWBE certification, for a
subcontractor who apply to do work for a non-profit, and reaffirms the
requirements of an MWBE eligible entity.

Section 2 is the enacting clause.

 
JUSTIFICATION:

As New York State continues to fulfill its mission of increasing diver-
sity in its contracting, it unintentionally creates barriers for some of
the people for whom it tries to provide opportunities, namely new immi-
grant small business owners.

Additionally, the lucrative contracting opportunities provided by full
MWBE certification has an unintentional effect of discouraging certified
firms from taking on small dollar contracts. Nonprofit providers have
expressed difficulty meeting their MWBE subcontracting requirements,
even though their subcontractors would meet MWBE certification require-
ments if they applied.

This necessitates the creation of a process outside of the standard,
full MWBE certification, but one that still encourages MWBE contracting
and acts as a pathway towards full certification.

Limited to three times in a 12-month period, this legislation permits
the MWBE to accept ad-hoc verification of a non-profit's subcontractors
MWBE eligibility in contracts up to $50,000 in lieu of the full certif-
ication process.

By unlocking access to these contracting opportunities, it encourages
smaller contractors to learn the benefits of full certification, and
removes a technical limit on who non-profits can subcontract to.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately

2023-S6566 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6566
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              April 26, 2023
                                ___________
 
 Introduced  by  Sen.  CHU  --  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  exempting  certain
   business  enterprise  subcontractors who seek to do work with not-for-
   profit corporations from certain requirements

   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 2-d to read as follows:
   2-D.  (A) THE DIRECTOR SHALL ESTABLISH A PROCEDURE ENABLING THE OFFICE
 TO ACCEPT BUSINESS ENTERPRISE SUBCONTRACTOR  VERIFICATION  FOR  MINORITY
 AND  WOMEN-OWNED BUSINESS ENTERPRISE APPLICANTS WHO APPLY TO DO WORK FOR
 NON-FOR-PROFIT CORPORATIONS IN LIEU OF REQUIRING  SUCH  BUSINESS  ENTER-
 PRISE  SUBCONTRACTOR  TO  COMPLETE  THE STATE CERTIFICATION PROCESS. THE
 DIRECTOR SHALL PROMULGATE RULES AND REGULATIONS TO  SET  FORTH  CRITERIA
 FOR  THE  ACCEPTANCE  OF  SUCH BUSINESS ENTERPRISE SUBCONTRACTOR CERTIF-
 ICATION.
   (B) ALL BUSINESS ENTERPRISE SUBCONTRACTOR CERTIFICATIONS SHALL REQUIRE
 BUSINESS ENTERPRISES WHO APPLY TO  DO  WORK  FOR  NOT-FOR-PROFIT  CORPO-
 RATIONS AND SEEK CERTIFICATION TO MEET THE FOLLOWING STANDARDS:
   (I)  HAVE  AT  LEAST  FIFTY-ONE  PERCENT  OWNERSHIP BY A MINORITY OR A
 WOMEN-OWNED ENTERPRISE AND BE OWNED BY UNITED STATES CITIZENS OR  PERMA-
 NENT RESIDENT NONCITIZENS;
   (II)  BE  AN  ENTERPRISE  IN WHICH THE MINORITY AND/OR WOMEN-OWNERSHIP
 INTEREST IS REAL, SUBSTANTIAL AND CONTINUING;
   (III) BE AN ENTERPRISE IN WHICH THE  MINORITY  AND/OR  WOMEN-OWNERSHIP
 HAS  AND EXERCISES THE AUTHORITY TO CONTROL INDEPENDENTLY THE DAY-TO-DAY
 BUSINESS DECISIONS OF THE ENTERPRISE;
   (IV) BE AN ENTERPRISE AUTHORIZED TO DO BUSINESS IN THIS STATE;
   (V) BE SUBJECT TO A PHYSICAL SITE INSPECTION TO VERIFY  THE  FIFTY-ONE
 PERCENT OWNERSHIP REQUIREMENT;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09799-02-3

 S. 6566                             2
 
   (VI)  BE  OWNED  BY  AN  INDIVIDUAL  OR  INDIVIDUALS, WHOSE OWNERSHIP,
 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 ANNU-
 ALLY FOR INFLATION ACCORDING TO THE CONSUMER PRICE INDEX;
   (VII)  BE  AN ENTERPRISE THAT IS A SMALL BUSINESS PURSUANT TO SUBDIVI-
 SION TWENTY OF SECTION THREE HUNDRED TEN OF THIS ARTICLE;
   (VIII) SERVICES AND/OR THE WORK BEING PERFORMED ARE AT A COST OF  LESS
 THAN FIFTY THOUSAND ONE DOLLARS;
   (IX)  HAVE  NOT  RECEIVED  SUCH EXEMPTION MORE THAN THREE TIMES IN THE
 PRECEDING TWELVE CALENDAR MONTHS; AND
   (X) COMPLY WITH ANY REPORTING REQUIREMENTS PURSUANT TO THIS ARTICLE.
   § 2. This act shall take effect  immediately,  provided  however,  the
 amendments  to  article 15-A of the executive law made by section one of
 this act shall not affect the expiration of such article  and  shall  be
 deemed repealed therewith.

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