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Lawmakers press ESD over MWBE recertification delays and disparity study
Summary
Assembly members raised constituent complaints that longstanding MWBE firms have been denied recertification; ESD said it cleared a backlog of ~5,700 applications, applies Executive Law §15‑A recertification rules every five years and is preparing legislative work on 15‑A reauthorization following a disparity study showing utilization gaps.
Committee members used ESD’s appearance to highlight ongoing concerns about minority‑ and women‑owned business (MWBE) access to state contracting and recertification procedures.
Assemblymember Billy Jones described calls from long‑standing women‑owned firms that have faced recertification denials despite decades in business. "She's been MWBE for 20 years... now it comes to her fifth certification, the state denier," Jones said, urging clarity on why recertifications were failing. Knight responded that ESD had worked to eliminate a years‑long certification backlog — processing about 5,700 applications — and that recertification requires meeting the statutory standards in Executive Law §15‑A, including proof of industry knowledge, proportional control and profit share. Knight also noted businesses can appeal denials to an administrative judge and remain certified while their appeal is pending.
Separately, ESD released an MWBE disparity study showing utilization shortfalls for Hispanic‑owned and women‑owned firms; committee members asked how ESD would act on the report’s recommendations. Knight said ESD had created a utilization unit to improve matchmaking between agencies and MWBEs, is working with entrepreneurial assistance centers (EACs) and will provide legislative recommendations when pursuing reauthorization of §15‑A.
Why it matters: Procurement and certification rules determine which firms can access state contracts; committee members cited both equity and practical economic effects when pressing ESD for reforms and clearer guidance. Lawmakers asked that methodological changes in reporting be made explicit to avoid confusing trend comparisons.
What’s next: ESD pledged additional outreach, promised to work with legislative offices to examine appeals and recertification patterns, and signaled intent to seek reauthorization language for §15‑A.
