Friend: Bill Promised To Help Minority And Women-Owned Businesses Does So At The Expense Of Small Rural Municipalities And Taxpayers

Assemblyman Christopher Friend (R,C,I-Big Flats) unfortunately had to vote no on a piece of legislation which would help Minority and Women-Owned Business Enterprises (MWBE) because the bill failed to include a correction to the requirement that local governments use MWBE-certified businesses for 30 percent of its contracted work. Rural communities, which the assemblyman represents, would find it difficult to meet this 30 percent obligation due to the limited number of certified businesses in rural regions.

“I want to see minority and women entrepreneurs succeed in New York and I am happy to support legislation to improve their opportunities here in our state; however, the bill presented today still contains flaws which make it unacceptable to my rural communities which I represent,” said Friend, Ranking Minority on Assembly Committee on Economic Development. “I support increasing the cap on successful MWBEs so they can stay in the program longer and reducing MWBE-certification time, but this bill still fails to consider the unique circumstances in which rural governments operate and the limited availability of MWBEs in our communities to meet the 30 percent utilization obligation. This bill, while laudable, just fell short for my constituents.”

The bill was drafted taking into account a flawed 2016 disparity study which failed to capture the true picture faced by some communities, such as those Friend represents. The next study is due in 2023. The Assembly Majority had promised that the bill would correct the 30 percent utilization provision, but it was not included in the bill brought to the Assembly floor for a vote. Friend sponsors legislation, A.1237, which would adjust the percentage obligation to correlate with the percentage of certified MWBEs within the municipality’s region.

Friend also had concerns over the expense that would be forced upon small municipalities by the legislation, which also requires that MWBEs may be awarded a contract at 10 percent higher than the next lowest bidder. The reduced competitiveness of contract bids puts taxpayers at a disadvantage.