New York Assembly Bill A07114

New York 2025-2026 Regular Session

• Introduced: 3/20/25
• Refer: 3/20/25
• Refer: 1/7/26

Caption

Relates to criteria for certification by the division of minority and women's business development of MWBE status; replaces the personal net worth limitation with a requirement that a business have been awarded contracts by one or more agencies within the past three years where the total state funding received by the enterprise from the expense and capital budgets for such contracts was equal to or greater than sixty million dollars.

Summary

A07114 would change New York’s rules for certifying minority- and women-owned business enterprises (MWBEs) under the Executive Law. The bill keeps the core MWBE certification framework in place, but revises the eligibility criteria for certain certifications and related definitions. Most notably, it removes the existing personal net worth cap for owners and replaces it with a requirement that the business have received at least $60 million in state or municipal contract funding over the prior three years, while also having exceeded U.S. Small Business Administration size standards for three years. The bill also updates the definition of “small business” to align more closely with federal SBA size standards and clarifies that an employee can have up to a 13-week break without restarting the 52-week lookback period. The measure amends multiple provisions in article 15-A of the Executive Law, including the section governing acceptance of municipal MWBE certifications and the definitions used by the Division of Minority and Women’s Business Development. It repeals subdivision 19 of section 310, which currently contains the personal net worth definition. In practical terms, the bill would shift certification standards away from an owner-wealth test and toward a business-performance and contract-receipts test, affecting which firms qualify for MWBE status and how the state evaluates size and eligibility. The general sentiment reflected by the bill’s introduction is that it is intended to modernize and tighten MWBE certification criteria, likely to better target benefits to firms that meet the state’s intended business-size and ownership standards. Because there were no committee transcripts or recorded votes provided, there is no direct evidence of support or opposition from floor debate or committee discussion. The bill’s structure suggests a policy focus on aligning state certification with federal SBA standards and on limiting certification to businesses that are demonstrably operating at a certain scale. A notable point of contention is the replacement of the personal net worth threshold with a high contract-receipt requirement. Supporters may view this as a way to ensure MWBE certification goes to active, substantial businesses, while critics may argue it could exclude smaller minority- and women-owned firms that are otherwise eligible but have not yet won large public contracts. Another possible issue is that the bill appears to narrow the pool of eligible firms by tying certification to prior public contracting volume and size-standard exceedance, which could be seen as either improving program integrity or reducing access to MWBE benefits.

Impact

The bill would amend Executive Law article 15-A, changing the criteria used by the Division of Minority and Women’s Business Development to certify MWBE status and updating the statutory definition of small business. It repeals the current personal net worth definition in section 310 and substitutes a contract-receipts-based standard tied to state or municipal funding and SBA size standards. These changes would directly affect businesses seeking MWBE certification, as well as state and local agencies that rely on MWBE certification for procurement and contracting programs.

Sentiment

No committee transcript or vote history was provided, so there is no recorded legislative debate to gauge formal support or opposition. Based on the bill text alone, the measure appears to be framed as a technical and policy refinement of MWBE certification rules, with an emphasis on aligning state standards to federal SBA criteria and tightening eligibility. The overall sentiment is therefore best characterized as reform-oriented, though the absence of recorded discussion leaves open whether stakeholders view it as an improvement or as a restriction on MWBE access.

Contention

The main point of contention is the bill’s replacement of the personal net worth cap with a requirement that the business have received at least $60 million in public contract funding over the prior three years and exceeded SBA size standards. Critics could argue that this shifts MWBE certification away from supporting smaller, emerging firms and toward already-established companies, potentially undermining the program’s purpose. Supporters may counter that the change prevents abuse and ensures certification is reserved for businesses with substantial operational presence. The updated small-business definition and the repeal of the personal net worth provision are likely the most consequential and debated aspects of the bill.