§ 11-26 Revocation of Minority- or Women-Owned Business Enterprise Status.
RCNY § 11-26
(a)A certified business must notify DSBS within forty-five (45) days of any material change in the information contained in the certification application. A material change may include, but is not limited to, a change in any of the following: ownership; address; officers; services provided by the certified business; market sector in which the business enterprise operates, bonding capacity of the business enterprise; and the union affiliation(s), if any, of the business enterprise. If a material change occurs, a review may be conducted by DSBS. If the review reveals that the firm is no longer eligible for certification, certification may be revoked pursuant to the procedures set out below in subdivision (d) of this section. If an MBE's and/or WBE's certification is revoked, such business enterprise may not reapply for certification for a period of two (2) years from the date of the written notice revoking certification. If a certified business fails to notify the division of such material change, the division may revoke the certification of an MBE and/or WBE for a period of up to five years.
(b)DSBS, upon having reason to believe or upon receiving allegations indicating that a certified business enterprise is not eligible for certification as an MBE and/or WBE, may meet with minority group members and/or women claiming ownership and control of the certified business and/or conduct an audit of such business enterprise, and will take the following actions: (1) Determine whether the allegation can be substantiated; (2) Obtain in writing, if possible, the basis of any allegation from the person or persons making the allegation; (3) Notify a certified business in writing that its certification as an MBE and/or WBE is under review by the division and may be revoked. This notice will specify the bases for such review and any facts specifically at issue; and (4) Provide the certified business with an opportunity to respond in writing to any allegations set forth in any notices questioning the certification status of a certified business, within twenty-eight (28) days of the date of such notice, by personal service or certified mail, return receipt requested.
(c)If the minority group members or women claiming ownership of the certified business fail to respond timely in writing to the notice of certification status review, or fail to meet with a DSBS representative or agree to an audit, the certification of the MBE and/or WBE may be revoked by the division.
(d)The division will notify, in writing, a certified business of the revocation of its certification as an MBE and/or WBE within fourteen (14) days of revoking such certification pursuant to 66 RCNY § 11-26(c) or based on a determination that such business is not currently eligible for certification. The minority group members and/or women claiming ownership and control of a business enterprise which has had its certification as an MBE and/or WBE revoked, may request an appeal of this decision within thirty (30) days of the date of the notice of revocation. Such appeal must be conducted in accordance with procedures set forth in 66 RCNY § 11-25. If a request for an appeal is not made within the thirty (30) day period, the division's determination will be final and the business enterprise may not reapply for certification for two (2) years from the date of the notice of revocation provided, however, that if the facts and circumstances forming the basis of the revocation decision have changed significantly, the business enterprise may, at the discretion of the division, be granted permission to reapply sooner.
(e)If at any time DSBS has reason to believe that an applicant or certified business has willfully and knowingly provided incorrect information or made false statements, it will refer the matter to the Department of Investigation for investigation. Falsification of any document by an applicant or a certified business may lead to the imposition of civil and criminal penalties as provided by law and contract and revocation of certification as an MBE and/or WBE.
(f)A business certified as an MBE or WBE may voluntarily withdraw from the M/WBE program by providing written notice to the division, in a format determined by the division, stating the request and the reason for withdrawal. The division will notify, in writing, such MBE or WBE that the withdrawal process is complete no later than thirty (30) days after receipt of the written notice from the business. Following voluntary withdrawal from the M/WBE program, a business shall not reapply for certification for a period of at least one (1) year from the date of the written notice from the division. (Amended City Record 5/25/2021, eff. 6/24/2021)
