BILL NUMBER: S6006
SPONSOR: BASKIN
 
TITLE OF BILL:
An act to amend the executive law, in relation to clarifying the eligi-
bility of an employment agency for status as a small business for
certain programs
 
PURPOSE:
The purpose of this bill is to ensure that an employment agency applying
for MWBE status not be denied that status if the amount of full-time,
temporary, contract for hire, and direct hire placement employees exceed
300 employees provided its annual receipts calculated pursuant to the
provisions of 13 CFR 121.104 are less than 30 million dollars.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of this bill would amend subdivision 20 of section 310 of the
executive law, as added by chapter 175 of the laws of 2010. This section
of the bill adds language that sets out the eligibility of an employment
agency. Specifically, the section states that an employment agency shall
be a small business if the annual receipts of such employment agency
calculated pursuant to federal small business administration standards
prescribed in 13 CFR Section 121.201 are less than thirty million
dollars.
Section 2 of this bill provides that the effective date shall take
effect on the thirtieth day after it shall have become a law, provided,
however, that the amendments to subdivision 20 of section 310 of the
executive law made by section one of this act shall not affect the
repeal of such section and shall be deemed to be repealed therewith.
 
JUSTIFICATION:
Currently, the Division of Minority and Women's Business Development
(DMWBD) requires MWBE applicants to submit copies of their NYS-45 Quar-
terly Combined Withholding, Wage Reporting, and Unemployment Insurance
Returns to accompany an application for certification as an MWBE. This
requirement is meant to verify the number of employees at a business to
ensure that it does not exceed the number of employees a business may
have to become MWBE certified. As a result of this requirement, on
paper, staffing agencies appear significantly larger than they are as
they report not only full-time employees, but also temporary employees
that work under the direction and control of staffing agency clients.
Therefore, DMWBD's requirement for staffing agencies applying for MWBE
status prevents many of those agencies from attaining MWBE status. By
amending the Executive law, staffmg agencies applying for MWBE status
will not be barred from achieving that status based on the current meth-
od DMWBD uses to determine the number of employees at a business.
 
LEGISLATIVE HISTORY:
2023 S3253 Mannion - Referred to Procurement and Contracts
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect on the thirtieth day after it shall have
become a law, provided, however, that the amendments to subdivision 20
of section 310 of the executive law made by section one of this act
shall not affect the repeal of such section and shall be deemed to be
repealed therewith. Effective immediately, the addition, amendment
and/or repeal of any rule or regulation necessary for the implementation
of this act on its effective date are authorized to be made and
completed on or before such effective date.

Statutes affected:
S6006: 310 executive law, 310(20) executive law