Authorizes the director of the division of minority and women's business development and the mayor of the city of New York to enter into a memorandum of understanding to allow reciprocity between the state and New York City for businesses that are certified as minority and women-owned business enterprises.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7646
SPONSOR: Septimo TITLE OF BILL:
An act to amend the executive law, in relation to reciprocal minority
and women-owned business enterprise certification
PURPOSE OR GENERAL IDEA OF BILL:
This bill would address disparities and ease administrative burdens
faced by MWBEs.
SUMMARY OF SPECIFIC PROVISIONS:
Section one of the bill would amend subdivision 2-a of section 314 of
the Executive Law by adding a new paragraph (d), which would provide
that the Director of the Division of Minority and Women's Business
Development of the New York State Department of Economic Development
(better known as Empire State Development ("ESD")) and the Mayor of a
city with a population greater than 1,000,000 persons may enter into a
memorandum of understanding providing for the reciprocal acceptance of
minority and women-owned business enterprise ("MWBE") certification
between an MWBE program operated by such city and the New York State
MWBE program operated by ESD. This paragraph would authorize this memo-
randum of understanding to include one or more exemptions where such
exemptions are in the best interest of both programs. This paragraph
would also clarify that this memorandum of understanding would not
restrict each program from amending their respective certification stan-
dards and processes.
Section two of the bill sets forth the effective date.
JUSTIFICATION:
The most recent disparity studies conducted by both the State of New
York and the City of New York demonstrate that discrimination continues
to affect MWBEs seeking to do business in the markets where the City and
the State conduct their procurements.
The State and City are committed to addressing these disparities by
operating MWBE programs that encourage the participation of MWBEs in
their respective procurements. The pool of firms that wish to partic-
ipate in procurements at both the City and State level is significant:
more than 40% of firms certified by the State are also certified by the
City.
Currently, the process to establish and to maintain certification at
both levels of government can be administratively burdensome for MWBEs.
These separate and duplicative processes lead to cost, confusion, and
lost opportunities for MWBEs and complicate the work of all entities
including government agencies, prime vendors, and other private sector
entities- seeking to do business with MWBEs.
By authorizing reciprocal certification, this act would enable the
establishment of a procedure focused on coordination and partnership
between the City and State, and would eliminate the layered administra-
tive burdens current imposed by the existing regulatory landscape. This
change would increase the success of both the City's and the State's
MWBE programs.
Accordingly, the Mayor urges the earliest possible favorable consider-
ation of this proposal by the Legislature.
PRIOR LEGISLATIVE HISTORY:
New Bill
FISCAL IMPLICATIONS:
To be determined
EFFECTIVE DATE:
This act shall take effect on the two hundred seventieth day after is
shall have become law; provided, however that the amendments to subdivi-
sion 2-a of section 314 of the executive law made by section one of this
act shall not affect the repeal of article 15-A of the executive law
pursuant to chapter 261 of the laws of 1988, as amended, and shall be
deemed repealed therewith
STATE OF NEW YORK
________________________________________________________________________
7646
2023-2024 Regular Sessions
IN ASSEMBLY
May 26, 2023
___________
Introduced by M. of A. SEPTIMO -- read once and referred to the Commit-
tee on Governmental Operations
AN ACT to amend the executive law, in relation to reciprocal minority
and women-owned business enterprise certification
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 2-a of section 314 of the executive law is
2 amended by adding a new paragraph (d) to read as follows:
3 (d) Notwithstanding any other provision of law, the director and a
4 city with a population greater than one million persons, acting through
5 its mayor, may enter into a memorandum of understanding setting forth a
6 procedure through which: (i) such city shall accept an applicant's state
7 certification verification in lieu of requiring such applicant to
8 complete such city's process for certification as a minority or women-
9 owned business enterprise or meet the certification standards of such
10 city's minority and women-owned business enterprise program; and (ii)
11 the office shall accept an applicant's city certification verification
12 in lieu of requiring an applicant to complete the process for certif-
13 ication as a minority or women-owned business enterprise or meet the
14 applicable certification standards set forth in this article; provided,
15 however, that such memorandum of understanding may include one or more
16 exceptions in circumstances where the director and such mayor determine
17 that such exceptions would be in the best interests of both such city's
18 program and the program established pursuant to this article. Nothing
19 in this paragraph shall be construed to limit the director or such city
20 from amending their respective processes or standards for certifying
21 minority and women-owned business enterprises.
22 § 2. This act shall take effect on the two hundred seventieth day
23 after it shall have become a law; provided, however, that the amendments
24 to subdivision 2-a of section 314 of the executive law made by section
25 one of this act shall not affect the repeal of article 15-A of the exec-
26 utive law pursuant to chapter 261 of the laws of 1988, as amended, and
27 shall be deemed repealed therewith.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11217-01-3
