BILL NUMBER: S242
SPONSOR: GALLIVAN
 
TITLE OF BILL:
An act to amend the executive law, in relation to directing the director
of the division of minority and women's business development to provide
for the certification of certain business entities owned by an Indian
nation or tribe for participation in the minority and women-owned busi-
ness enterprise program
 
PURPOSE:
To modify the state's MWBE certification process to enable businesses
that are wholly owned by Indian Nations and tribes to be certified as an
MWBE by New York State.
 
SUMMARY OF PROVISIONS:
Amends Executive Law § 314, the Minority and Women-Owned Business Enter-
prise (MWBE) certification statute, to provide a mechanism through which
a business wholly-owned by an Indian nation or tribe (as that term is
defined in Indian Law § 2) can be certified as a minority-owned business
under Executive Law § 314.
 
JUSTIFICATION:
Empire State Development's Division of Minority and Women's Business
Development has determined that under current state law and regulations,
firms that are wholly-owned by Indian Nations and tribes cannot be
certified as Minority and Women-Owned businesses.
Many Indian Nation and tribes use wholly-owned corporate entities as a
means of developing their local economies. Unlike a privately owned
company, all of the profits of a Nation or tribally-owned entity go back
into the tribal corporation and/or the Indian Nation or tribe's general
budget, to be used for education, health care, infrastructure and trans-
portation, among other things. With many Indian Nations and tribes
having high rates of poverty, unemployment, seniors and chronic
illnesses, tribally-owned businesses support the economic empowerment,
growth and health and well-being of historically disadvantaged people.
New York State is promoting greater use of minority and women-owned
business enterprises as a means of addressing systemic discrimination
and creating new economic opportunities. Unfortunately, these efforts do
not recognize an important and valued segment of the state's minority
population.
Following the existing policies of the U.S. Small business Adminis-
tration's 8(a) program, this measure will ensure that state's MWBE
program is able to certify Indian Nation-owned businesses as MBEs.
 
LEGISLATIVE HISTORY:
2023-24: S.120 Referred to Procurement and Contracts
2021-22: S.2651 Referred to Procurement and Contracts
2019-20: S.4991 Referred to Finance
2018: S.858/A.1789 Vetoed
2016: S.7430/A.10095 Vetoed
 
FISCAL IMPLICATIONS:
None to the state or local governments
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S242: 314 executive law