Requires the director of the division of minority and women's business development in the department of economic development to give additional time for a business enterprise to cure defects in its application for certification or correct defects when a certification is denied, revoked, or changed.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A4134A
SPONSOR: Stirpe TITLE OF BILL:
An act to amend the executive law, in relation to extending the time for
a business enterprise to cure defects in an application for certif-
ication and curing defects where a certification was denied, revoked, or
changed
PURPOSE:
The purpose of this bill is to establish a curing period for applica-
tions submitted by minority and women owned businesses enterprises to
the statewide certification program.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of this bill would establish a curing period of sixty days for
minority or women owned business enterprises that were denied, revoked,
or changed from the statewide certification program due to an omission
or technical error and make technical amendments.
Section 2 of this bill provides that the effective date shall take
effect immediately; provided, however, that the amendments to article
15-A of the executive law made by section one of this act shall not
affect the repeal of such article and shall be deemed repealed there-
with.
JUSTIFICATION:
Minority and Women-Owned Business Enterprises (MWBEs) have served as
effective economic engines. Since 1988, the program has assisted state
agencies engaged in contracting activities to award a fair share of
state contracts to MWBEs, reviewed applications by businesses seeking
certification as an MWBE, and promoted the business development of MWBEs
through education and outreach. The program has allowed thousands of
businesses, new and old, to flourish in the state for thirty-five years.
However, as has been reported extensively in the press, MWBEs have
habitually been subject to delays in certification, creating an unknown
amount of lost MWBE revenue. In fact, only recently, as of November 15,
2023, has the State been able to clear a thousands-long backlog of MWBE
candidates. Even business enterprises that have previously qualified for
MWBE certification have faced delays and sudden revocation of status,
complicating a process that should be easy and seamless. Business owners
need the ability to know the status of MWBE applications and be able to
remedy them, if needed, in a quick and efficient manner.
The recent un-logged backlog is a milestone to celebrate; however, steps
need to be taken to ensure that a backlog does not jam up the program
again. Enabling business enterprises to fix technical errors or inad-
vertent errors is one step in ensuring the continued success of the MWBE
program and can prevent another backlog. This bill would establish a
curing period of sixty days for minority or women owned business enter-
prises that were denied or revoked from the statewide certification
program due to an omission or technical error.
LEGISLATIVE HISTORY:
2023-24: Died in the Assembly
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that the
amendments to article 15-A of the executive law made by section one of
this act shall not affect the repeal of such article and shall be deemed
repealed therewith.
STATE OF NEW YORK
________________________________________________________________________
4134--A
2025-2026 Regular Sessions
IN ASSEMBLY
January 31, 2025
___________
Introduced by M. of A. STIRPE -- read once and referred to the Committee
on Governmental Operations -- recommitted to the Committee on Govern-
mental Operations in accordance with Assembly Rule 3, sec. 2 --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
AN ACT to amend the executive law, in relation to extending the time for
a business enterprise to cure defects in an application for certif-
ication and curing defects where a certification was denied, revoked,
or changed
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 3 of section 314 of the executive law, as
2 amended by chapter 96 of the laws of 2019, is amended to read as
3 follows:
4 3. Following application for certification pursuant to this section,
5 the director shall provide the applicant with written notice of the
6 status of the application, including notice of any outstanding deficien-
7 cies, within twenty-one days. Within forty-five days of submission of a
8 final completed application, the director shall provide the applicant
9 with written notice of a determination by the office approving or deny-
10 ing such certification and, in the event of a denial a statement setting
11 forth the reasons for such denial. Upon a determination denying, revok-
12 ing, or changing certification, the business enterprise for which
13 certification has been so denied, revoked, or changed shall be entitled
14 to an extension of time not to exceed sixty days for curing an omission
15 or technical error, as such terms are determined by the director, on the
16 application for such certification, which shall allow the business
17 enterprise to immediately re-apply to the statewide certification
18 program upon remedy of such application. Upon a determination denying
19 [or], revoking, or changing certification other than from an omission or
20 technical error, the business enterprise for which certification has
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05101-03-6
A. 4134--A 2
1 been so denied [or], revoked, or changed shall, upon written request
2 made within [thirty] sixty days from receipt of notice of such determi-
3 nation, be entitled to a hearing before an independent hearing officer
4 designated for such purpose by the director. In the event that a request
5 for a hearing is not made within such [thirty] sixty day period, such
6 determination shall be deemed to be final. Upon the timely filing of a
7 written request for a hearing pursuant to this subdivision, any certif-
8 ication that was denied, revoked, or changed shall be restored and shall
9 remain in full force and effect pending the issuance of a final order by
10 the director pursuant to this subdivision. The independent hearing offi-
11 cer shall conduct a hearing, within twenty-one days of receipt of the
12 written request for a hearing, and upon the conclusion of such hearing,
13 issue a written recommendation to the director to affirm, reverse or
14 modify such determination of the director. Such written recommendation
15 shall be issued to the parties. The director, within thirty days, by
16 order, must accept, reject or modify such recommendation of the hearing
17 officer and set forth in writing the reasons therefor. The director
18 shall serve a copy of such order and reasons therefor upon the business
19 enterprise by personal service or by certified mail return receipt
20 requested. The order of the director shall be subject to review pursuant
21 to article seventy-eight of the civil practice law and rules.
22 § 2. This act shall take effect immediately; provided, however, that
23 the amendments to subdivision 3 of section 314 of the executive law made
24 by section one of this act shall not affect the repeal of such section
25 and shall be deemed repealed therewith.
