Clarifies the eligibility of an employment agency for status as a small business for division of minority and women's business development programs by changing the basis from number of employees to annual receipts.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A862
SPONSOR: Stirpe 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:
This bill ensures 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 one amends 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 calcu-
lated pursuant to federal small business administration standards
prescribed in 13 CFR Section 121.201 are less than thirty million
dollars.
Section two sets the effective date.
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, staffing 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.
PRIOR LEGISLATIVE HISTORY:
2022: A.8615 - Referred to Governmental Operations
FISCAL IMPLICATIONS:
Undetermined.
EFFECTIVE DATE:
This bill 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, in 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.
STATE OF NEW YORK
________________________________________________________________________
862
2023-2024 Regular Sessions
IN ASSEMBLY
January 11, 2023
___________
Introduced by M. of A. STIRPE, FAHY, HEVESI, SAYEGH, STERN, DICKENS,
GUNTHER, DAVILA, TAYLOR, J. M. GIGLIO, GOODELL -- read once and
referred to the Committee on Governmental Operations
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
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 20 of section 310 of the executive law, as
2 added by chapter 175 of the laws of 2010, is amended to read as follows:
3 20. "Small business" as used in this section, unless otherwise indi-
4 cated, shall mean a business which has a significant business presence
5 in the state, is independently owned and operated, not dominant in its
6 field and employs, based on its industry, a certain number of persons as
7 determined by the director, but not to exceed three hundred, taking into
8 consideration factors which include, but are not limited to, federal
9 small business administration standards pursuant to 13 CFR part 121 and
10 any amendments thereto. Provided however, when determining the eligi-
11 bility of an employment agency, as defined in section one hundred seven-
12 ty-one of the general business law, as a small business pursuant to this
13 subdivision there shall be no restriction on the number of employees of
14 such employment agency. An employment agency shall be considered a small
15 business if the annual receipts of such employment agency calculated
16 pursuant to the provisions of 13 CFR 121.104 and any amendments thereto,
17 are less than thirty million dollars. The director may issue regulations
18 on the construction of the terms in this definition.
19 § 2. This act shall take effect on the thirtieth day after it shall
20 have become a law, provided, however, that the amendments to subdivision
21 20 of section 310 of the executive law made by section one of this act
22 shall not affect the repeal of such section and shall be deemed to be
23 repealed therewith. Effective immediately, the addition, amendment
24 and/or repeal of any rule or regulation necessary for the implementation
25 of this act on its effective date are authorized to be made and
26 completed on or before such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00337-01-3
