Albany, NY – Yesterday, Advocates and Stakeholders of the Minority and Women-Owned Business Enterprise (MWBE) community expressed their concerns at an MWBE Press conference held by Assemblymember Rodneyse Bichotte and Senator James Sanders Jr., Chair of the Senate MWBE Task Force as well as at the New York State Assembly public hearing on MWBE led by Crystal People-Stokes, Chair of Government Operations Committee. This was to address concerns and provide recommendations to the New York State (NYS) Article 15-A MWBE Program and the 2016 MWBE Disparity Study.

"This is a critical time for MWBE's" said Assemblymember Rodneyse Bichotte, chair of the Oversight of Minority Women-Owned Business Enterprises (MWBES) Subcommittee. "There has been some progress within New York State regarding programs and having MWBE's gaining access to government contracts. However, April 2018 is right around the corner. This is the time for us enhance and create a more robust MWBE Program."

Among those who testified were state government officials, organizations, trades, representatives of MWBE advocacy groups and the state's MWBE community. Concerns were mostly around building capacity of MWBEs and Eliminating the Personal Net Worth Cap of $3.5 million. Some argued that the 30% goal to subcontract to MWBEs was arbitrary and too high of a number, even with the findings showing 54% availability of MWBEs willing, able and eligible to work.

"As the chairman of the Senate's Task Force on MWBEs, I support the renewal of Article 15-A" said State Senator James Sanders Jr. "It is both valuable and necessary in ensuring that state agencies establish employment and business participation goals for minorities and women. Under those conditions, we must work to ensure that the program is as effective as possible in remedying the State's history of contracting disparities, responsive in addressing new concerns, and is legally sound and remains constitutional."

"There is an unfair disparity that prevents many capable and deserving Minority and Women-Owned Businesses from accessing government contracts and capital" said Assemblymember Phil Steck. "As a member of the New York State Assembly Committee on Labor, I took part in today's public hearing regarding the MWBE Program, which works to break down the barriers that many New York entrepreneurs face in growing their businesses. Among other issues, we discussed the ways in which alternative banking solutions and a public bank could affect lending and strengthen economic development. We must always look for creative opportunities to help these businesses grow and thrive."

"New York State has made tremendous gains with MWBEs, but there is much more ground to cover and yesterday's hearing proved just that" said Assemblymember Alicia Hyndman. "The hearing confirmed that Article 15-A must be renewed when it expires in April 2018, and it also confirmed that the Empire State Development Corporation must be adequately staffed to address the needs of MWBE's statewide. The Personal Net Worth Bill needs to be signed, so that MWBEs can take the next step in their growth and operations."

"The MWBE program has provided us with immense opportunities" said Mahendra Patel of MP Engineering. "Therefore, we support legislation (A2819/S3018) that would eliminate the personal net worth cap and allow us to continue to grow our business and help the state to meet its' goal."

"Our survival and all our successes are entirely dependent upon MWBE programs" Sanjay Naik, President of Naik Consulting Group P.C. "Even today, after nearly 20 years in business, we rely significantly on our MWBE designation to secure contracts. The MWBE program allows me to remain competitive in an industry populated with large established corporations. The contracts we secured through the MWBE program have permitted us to employ a diverse group of highly paid professionals providing multiple opportunities for New York State residents."

"I am encouraging the Governor to not allow MWBE companies to continue to be capped on their Personal Net Worth" said Frank Garcia, Outgoing Chairman of the New York State Coalition of Hispanic Chamber of Commerce. "By capping MWBE companies, you (Governor) are not allowing them to grow as much as their potential would allow them to. So I'm asking you to do the right thing, do what's best for us all, do what's best for all companies, and do NOT allow for this cap to continue to take place. Please sign the Bill."

"Women Builders Council (WBC) would like to thank Assemblymember Rodneyse Bichotte for inviting WBC to testify at this important hearing, and for her leadership and commitment to increasing diversity and the role of women in the construction industry" said Deborah Bradley, President of the Women’s Builders Council. "WBC utilized this hearing as a platform to bring attention to the Personal Net Worth (PNW) Elimination Bill A2819 - S3018. This bipartisan legislation, sponsored by Assembly Member Bichotte and Senator Patty Ritchie, will allow MWBEs, especially those in both the construction and financial sectors, to achieve their full economic potential by eliminating the $3.5 million personal net worth requirement. The PNW cap inhibits the ability to get capital and bonding for many MWBEs, and ultimately leaves many MWBEs either too small to win contracts or too big to remain certified. Having this cap on personal net worth for women and minority owned firms also sends a negative message to the individuals who have historically been discriminated against, that we should only grow to a certain size of professional or personal wealth, and then stop, not exceeding the parameters that have been set for us. We encourage Governor Cuomo to continue his extraordinary efforts to create a more inclusive construction industry by signing this game changing piece of legislation."

"Today's MWBE Hearing raised important issue about the states program and how it can be improved" said B. Seth Bryant, Managing Partner of Bryant Rabbino LLP, a New York City based corporate law firm. "There was great testimony from representatives of a range of parties, from business owners, to industry organizations, and government officials, and other interested parties - all focused on improving the program with great ideas around capacity building, streamlining certification, enhancing accountability and transparency, and personal net worth. With the right efforts, we will make the program the strongest in the nation!"

"Disparity is real; Disparity is on-going" said Sandra Wilkin of Bradford Construction, member of the NYS MWBE Advisory Committee. "It’s our duty as MWBEs, legislators, New York businesses, associations, and government, to continue to remedy the Disparity."

While discussions concerning MWBE availability continue to be debated, one MWBE stated that many primes don't want to know that MWBEs exist. "I have been in business for 20 to 30 years providing Concrete, Sidewalk and Asphalt work", said Simone Peele from A New World Contracting, "they know who I am but they don't want to know who I am."

"It's very clear that MWBE's are still not in the best place they could be,” said Assemblymember Rodneyse Bichotte. "Certification, Capacity and Capital Access are the 3 C's that needs significant improvement. The elimination of the Personal Net Worth Cap would address all 3 C's to some extent."

Bill (A2819/S3018) sponsored by Assemblymember Bichotte and Senator Ritchie, would eliminate the requirement for minority and women-owned business enterprise owners to have a personal net worth of less than $3.5 million dollars in order to obtain certification as a certified minority and women-owned business enterprise. The Bill has passed in both the Assembly and the Senate unanimously. More than 600 people have signed the Petition to support this Bill.

Recent Articles regarding this event:

Business Owners, Lawmakers want to remove cap on net worth for MWBEs By Legislative Gazette

Albany considers future for MWBES By Bill Mahoney, Politico

Press Conference Video

MWBE Hearing Video

Those who testified included:

1. Lourdes Zapata - Executive Vice President & Executive Director of the Division of Minority and Women Owned Business Division ESDC
2. Louis Colletti - President and CEO Building Trades Employers Association
3. Tracy Connelly - New York State Building and Construction Trades Council
4. Joseph Hogan - Associated General Contractors
5. Jolie Milstein - President and CEO of the New York State Association For Affordable Housing
6. Felice Farber - Senior Director Policy & External Affairs General Contractors Association of New York
7. Deborah Bradley - President Women Builders Council
8. Frank Garcia - Chairman of the New York State Coalition of Hispanic Chambers of Commerce
9. Sandra Wilkin - CEO Bradford Construction Corp.
10. Seth Bryant - Managing Partner of Bryant Rabbino LLP
11. Simone Peele - President of New World Contracting