Governor Hochul Signs Legislative Package to Strengthen New York's Nation-leading Minority- and Women-owned Business Enterprise Program

 

Legislation (A.9259-A/S.3390-A) Helps Prevent Fraud and Abuse within the Minority-and Women-Owned Business Enterprise (MWBE) Program and Creates a Framework for a Fund To Investigate and Audit Fraud

Legislation (A.6420/S.571) Allows Businesses To Use MWBE Development and Lending Program Funds to Refinance Existing Debts

Legislation (A.10459/S.9351) Allows New York City To Award Contracts Up to $1 Million to MWBEs Without a Formal Competitive Process

Also Announces New York's MWBE Utilization Rate is Highest in the Nation with Nearly $3 Billion in State Contracts Awarded to MWBEs

 Governor Kathy Hochul today signed a legislative package that will strengthen New York's nation-leading program to support Minority- and Women-Owned Business Enterprises. The Governor signed the new legislation in conjunction with the State's 12th Annual MWBE forum, which runs through October 7. The Governor also announced that New York State has surpassed its goal for MWBE utilization on New York State contracts with a utilization rate of 30.64 percent during the 2022 Fiscal Year, the highest MWBE utilization rate in the country for the second year in a row. Nearly $3 billion in State contracts were awarded to MWBE firms during the 2022 Fiscal Year, and nearly $24 billion in State contracts have been awarded to MWBEs since 2011. The bill signing, in addition to the steady increase in New York's MWBE utilization rate, underscore Governor Hochul's commitment to supporting MWBEs and being a champion for greater economic opportunity statewide.

"New York draws strength from its diversity, and it is a priority for my administration to ensure that economic opportunities are inclusive and equitable across the state," Governor Hochul said. "For two years in a row, our nation leading MWBE utilization rate highlights our commitment to providing the necessary tools and resources so that everyone is able to forge pathways to economic success. The continuation of New York's strong MWBE utilization rate demonstrates the State's commitment to championing greater equality of economic opportunities for MWBEs."

"Thanks to Governor Hochul's leadership, New York has exceeded our utilization goal for the second year in a row and we will continue to help break down barriers and expand opportunities for MWBEs across the State," said Lieutenant Governor Delgado. "New York is committed to providing critical resources for Minority- and Women-Owned businesses to help them succeed because our economy is strongest when it is diverse, accessible, and inclusive."

Legislation (A.9259-A/S.3390-A) will prevent fraud and abuse within the MWBE Program and creates a framework for a fund that will investigate and audit misconduct within the Program. A 2014 report by the New York State Supreme Court Grand Jury revealed that over $10 million intended for honest MWBE had instead gone to fraudulent non-MWBEs, cheating legitimate MWBEs out of contracts. This legislation will ensure the integrity of the program by creating a state MWBE registry, increasing fines for fraud, and establishing a MWBE fund to investigate misconduct.