Bill > A07010

This bill expands the definition of a "minority-owned business enterprise" (MBE) in New York state law to include businesses with Employee Stock Ownership Plans (ESOPs) where at least 51% of participating employees are minority group members. The existing definition of an MBE already requires that a business be at least 51% owned by minority group members, independently operated, and owned by individuals with a personal net worth not exceeding $15 million. The new provision adds a separate pathway to MBE certification through an ESOP, defining such a plan as an employee benefit plan that gives employees ownership interest in the form of company stock. This change aims to create more opportunities for minority employees to have a financial stake in the businesses they work for and to qualify for state contracts reserved for minority-owned enterprises. The bill clarifies that an ESOP-based MBE must have at least 51% of its ESOP participants be minority group members, providing an alternative route to MBE status beyond traditional ownership structures. The bill will take effect immediately upon passage.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/A7010