BILL NUMBER: S596
SPONSOR: HINCHEY
 
TITLE OF BILL:
An act to amend the executive law, in relation to providing a rebuttable
presumption relating to recertification as a minority and women-owned
business enterprise
 
SUMMARY OF PROVISIONS:
Section 1 amends section 314 of the executive law relating to the minor-
ity and women-owned business enterprise (MWBE) certification process.
This Section provides that, if there is no change in ownership or mate-
rial change in the nature or management of the MWBE, a rebuttable
presumption exists for that MWBE's recertification.
Section 2 establishes the effective date.
 
JUSTIFICATION:
The application process for the MWBE program - especially with respect
to recertification is at times arbitrary and leads to lengthy and unnec-
essary delays of recertification for MWBE business that have been long
established. The delay in recertification has also led to these estab-
lished MWBE businesses being unofficially in purgatory on whether they
are certified or not which leads to a loss in opportunity and business.
This legislation would address some of the more serious concerns with
the MWBE process by creating a rebuttable presumption for recertif-
ication. This rebuttable presumption will only apply in cases where
there has been no material change to the business or change in ownership
since the original certification.
This legislation will help ensure the inclusiveness of State contracting
and will ensure that minority and women-owned businesses not be
subjected to arbitrary State decision-making and delays which could hurt
their livelihood. At a time when projects are underway and state public
policy is encouraging higher participation of MWBE entities, it makes
perfect sense to make sure that existing MWBE businesses do not see an
interruption in their certification to help move projects forward and
build success across New York.
 
LEGISLATIVE HISTORY:
2022 - S9588 referred to Rules
2023 - S1687A passed Senate / A1621B referred to Governmental Operations
2024 - S1687A passed Senate / A1621B referred to Governmental Operations
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
On the first of July next succeeding the date upon which it shall have
become law, and is only applicable to certification applications filed
on or after that date.

Statutes affected:
S596: 314 executive law, 314(5) executive law