Assembly Bill A5348

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5348
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 13, 2025
                                ___________
 
 Introduced by M. of A. RAJKUMAR -- read once and referred to the Commit-
   tee on Governmental Operations
 
 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.
                                                            LBD08625-01-5
              

 A. 5348                             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.