S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3056

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 22, 2015
                               ___________

Introduced  by  M.  of A. McDONALD, STEC, SIMANOWITZ, MARKEY, SKARTADOS,
  BRINDISI, OTIS, McDONOUGH, TEDISCO,  LUPARDO,  SKOUFIS,  SANTABARBARA,
  GRAF,  LUPINACCI, DiPIETRO, SEPULVEDA, SCHIMEL, JOHNS, TITONE, CUSICK,
  TENNEY, PALMESANO -- Multi-Sponsored by -- M. of A. BARCLAY,  BORELLI,
  COLTON, CROUCH, DUPREY, GARBARINO, KEARNS, McLAUGHLIN -- read once and
  referred to the Committee on Veterans' Affairs

AN ACT to amend the executive law, the economic development law, the New
  York  state urban development corporation act, the facilities develop-
  ment corporation act and the New York state  medical  care  facilities
  finance  agency  act, in relation to providing veterans with access to
  certain economic programs and incentives, and to expanding  the  popu-
  lation  served by the division of minority and women's business devel-
  opment; to amend the state finance  law,  the  retirement  and  social
  security  law,  the  public  authorities  law,  the  arts and cultural
  affairs law, the banking law, the environmental conservation  law  and
  the  general  municipal law, in relation to making conforming changes;
  and to amend the administrative code of  the  city  of  New  York,  in
  relation  to  providing  veterans  with  access  to  certain  economic
  programs and incentives

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. This act shall be known and may be cited as "OORAH! An ACT
Opening Opportunities, Resources and Access for Heroes".
  S 1-a. The article heading of article 15-A of the  executive  law,  as
added by chapter 261 of the laws of 1988, is amended to read as follows:
             PARTICIPATION BY MINORITY GROUP MEMBERS [AND],
           WOMEN AND VETERANS WITH RESPECT TO STATE CONTRACTS
  S  2. Subdivisions 1, 4, 9, 10, 19 and 22 of section 310 of the execu-
tive law, subdivisions 1 and 9 as added by chapter 261 of  the  laws  of
1988, subdivisions 4 and 10 as amended by chapter 55 of the laws of 1992

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02812-01-5

              

A. 3056                             2

and  subdivisions 19 and 22 as added by chapter 175 of the laws of 2010,
are amended and a new subdivision 15-a is added to read as follows:
  1.  "Certified  business" shall mean a business verified as a minority
[or women-owned], WOMEN OR VETERAN-OWNED business enterprise pursuant to
section three hundred fourteen of this article.
  4. "Director" shall mean the director of the division of minority [and
women's], WOMEN AND VETERANS' business development in the department  of
economic development.
  9.  "Utilization  plan" shall mean a plan prepared by a contractor and
submitted in connection with a proposed state contract. The  utilization
plan shall identify certified minority [or women-owned], WOMEN OR VETER-
AN-OWNED  business enterprises, if known, that have committed to perform
work in connection with the proposed state contract as well as any  such
enterprises, if known, which the contractor intends to use in connection
with  the  contractor's  performance of the proposed state contract. The
plan shall specifically contain a list, including the name, address  and
telephone number, of each certified enterprise with which the contractor
intends to subcontract.
  10.  "Office"  shall  mean the division of minority [and], women's AND
VETERANS' business development in the department  of  economic  develop-
ment.
  15-A. "VETERAN-OWNED BUSINESS ENTERPRISE" SHALL MEAN A BUSINESS ENTER-
PRISE,  INCLUDING A SOLE PROPRIETORSHIP, PARTNERSHIP OR CORPORATION THAT
IS:
  (A) AT LEAST FIFTY-ONE PERCENT OWNED BY  ONE  OR  MORE  UNITED  STATES
CITIZENS  OR  PERMANENT  RESIDENT  ALIENS  WHO  ARE HONORABLY DISCHARGED
UNITED STATES VETERANS;
  (B) AN ENTERPRISE IN WHICH THE OWNERSHIP INTEREST OF SUCH VETERANS  IS
REAL, SUBSTANTIAL AND CONTINUING;
  (C)  AN  ENTERPRISE  IN WHICH SUCH VETERAN OWNERSHIP HAS AND EXERCISES
THE AUTHORITY TO CONTROL INDEPENDENTLY THE DAY-TO-DAY BUSINESS DECISIONS
OF THE ENTERPRISE;
  (D) AN ENTERPRISE AUTHORIZED TO DO BUSINESS IN THIS  STATE  AND  INDE-
PENDENTLY OWNED AND OPERATED;
  (E)  AN ENTERPRISE OWNED BY AN INDIVIDUAL OR INDIVIDUALS, WHOSE OWNER-
SHIP, CONTROL AND OPERATION ARE RELIED UPON FOR  CERTIFICATION,  WITH  A
PERSONAL NET WORTH THAT DOES NOT EXCEED THREE MILLION FIVE HUNDRED THOU-
SAND DOLLARS, AS ADJUSTED ANNUALLY ON THE FIRST OF JANUARY FOR INFLATION
ACCORDING TO THE CONSUMER PRICE INDEX OF THE PREVIOUS YEAR; AND
  (F)  AN  ENTERPRISE  THAT  IS A SMALL BUSINESS PURSUANT TO SUBDIVISION
TWENTY OF THIS SECTION.
  A FIRM OWNED BY A MINORITY GROUP MEMBER WHO IS ALSO A VETERAN  MAY  BE
CERTIFIED AS A MINORITY-OWNED BUSINESS ENTERPRISE, A VETERAN-OWNED BUSI-
NESS  ENTERPRISE, OR BOTH, AND MAY BE COUNTED TOWARDS EITHER A MINORITY-
OWNED BUSINESS ENTERPRISE GOAL OR A  VETERAN-OWNED  BUSINESS  ENTERPRISE
GOAL, IN REGARD TO ANY CONTRACT OR ANY GOAL, SET BY AN AGENCY OR AUTHOR-
ITY,  BUT SUCH PARTICIPATION MAY NOT BE COUNTED TOWARDS BOTH SUCH GOALS.
SUCH AN ENTERPRISE'S PARTICIPATION IN A  CONTRACT  MAY  NOT  BE  DIVIDED
BETWEEN   THE   MINORITY-OWNED   BUSINESS   ENTERPRISE   GOAL   AND  THE
VETERAN-OWNED BUSINESS ENTERPRISE GOAL.  A FIRM OWNED BY A WOMAN WHO  IS
ALSO  A VETERAN MAY BE CERTIFIED AS A WOMEN-OWNED BUSINESS ENTERPRISE, A
VETERAN-OWNED BUSINESS ENTERPRISE, OR BOTH, AND MAY BE  COUNTED  TOWARDS
EITHER  A  WOMEN-OWNED BUSINESS ENTERPRISE GOAL OR A VETERAN-OWNED BUSI-
NESS ENTERPRISE GOAL, IN REGARD TO ANY CONTRACT OR ANY GOAL, SET  BY  AN
AGENCY  OR  AUTHORITY, BUT SUCH PARTICIPATION MAY NOT BE COUNTED TOWARDS
BOTH SUCH GOALS. SUCH AN ENTERPRISE'S PARTICIPATION IN  A  CONTRACT  MAY

A. 3056                             3

NOT  BE DIVIDED BETWEEN THE WOMEN-OWNED BUSINESS ENTERPRISE GOAL AND THE
VETERAN-OWNED BUSINESS ENTERPRISE GOAL.
  19.  "Personal  net worth" shall mean the aggregate adjusted net value
of the assets of an individual remaining  after  total  liabilities  are
deducted.  Personal  net worth includes the individual's share of assets
held jointly with said individual's spouse  and  does  not  include  the
individual's  ownership  interest  in the certified minority [and women-
owned], WOMEN OR VETERAN-OWNED  business  enterprise,  the  individual's
equity  in  his or her primary residence, or up to five hundred thousand
dollars of the present cash value of any  qualified  retirement  savings
plan  or  individual  retirement account held by the individual less any
penalties for early withdrawal.
  22. "Diversity practices" shall mean the  contractor's  practices  and
policies with respect to:
  (a)  utilizing  certified minority [and women-owned], WOMEN AND VETER-
AN-OWNED business enterprises in contracts awarded by a state agency  or
other public corporation, as subcontractors and suppliers; and
  (b)  entering  into  partnerships,  joint  ventures  or  other similar
arrangements with certified minority [and women-owned], WOMEN OR  VETER-
AN-OWNED business enterprises as defined in this article or other appli-
cable statute or regulation governing an entity's utilization of minori-
ty [or women-owned], WOMEN OR VETERAN-OWNED business enterprises.
  S  3. The section heading, subdivision 1, paragraphs (a), (d), (e) and
(f) of subdivision 3 of section 311 of the executive  law,  the  section
heading,  subdivision  1, and paragraphs (d) and (e) of subdivision 3 as
amended by chapter 55 of the laws of 1992, and paragraphs (a) and (f) of
subdivision 3 as added by chapter 261 of the laws of 1988,  are  amended
to read as follows:
  Division  of  minority  [and], women's AND VETERANS' business develop-
ment. 1. The head of the division of minority [and], women's AND  VETER-
ANS'  business  development shall be the director who shall be appointed
by the governor and hold office at the pleasure of the commissioner.  It
shall  be  the  duty  of the director of the division of minority [and],
women's AND VETERANS' business development to assist the governor in the
formulation and implementation of laws and policies relating to minority
[and women-owned] WOMEN AND VETERAN-OWNED business enterprises.
  (a) to encourage and assist contracting agencies in their  efforts  to
increase  participation  by minority [and women-owned], WOMEN AND VETER-
AN-OWNED business enterprises on state contracts and subcontracts so  as
to facilitate the award of a fair share of such contracts to them;
  (d)  to  review  periodically  the  practices  and  procedures of each
contracting agency with respect to compliance  with  the  provisions  of
this  article,  and  to  require  them to file periodic reports with the
division of minority [and], women's AND VETERANS'  business  development
as  to  the level of minority [and women-owned], WOMEN AND VETERAN-OWNED
business enterprises participation in the awarding of  agency  contracts
for goods and services;
  (e)  on  January  first  of  each  year report to the governor and the
chairpersons of the senate finance and assembly ways and  means  commit-
tees on the level of minority [and women-owned], WOMEN AND VETERAN-OWNED
business  enterprises participating in each agency's contracts for goods
and services and  on  activities  of  the  office  and  effort  by  each
contracting  agency  to  promote  employment  of  minority group members
[and], women AND VETERANS, and to promote and increase participation  by
certified businesses with respect to state contracts and subcontracts so
as  to  facilitate  the award of a fair share of state contracts to such

A. 3056                             4

businesses. The comptroller shall  assist  the  division  in  collecting
information   on  the  participation  of  certified  business  for  each
contracting  agency.  Such  report  may  recommend  new  activities  and
programs to effectuate the purposes of this article;
  (f) to prepare and update periodically a directory of certified minor-
ity  [and  women-owned],  WOMEN  AND  VETERAN-OWNED business enterprises
which shall, wherever practicable, be divided into categories of  labor,
services,  supplies,  equipment,  materials  and recognized construction
trades and which shall indicate areas or locations of  the  state  where
such enterprises are available to perform services;
  S  3-a. Paragraph (c) of subdivision 4 of section 311 of the executive
law, as added by chapter 361 of the laws of 2009, is amended to read  as
follows:
  (c)  seek to maximize utilization by minority [and women-owned], WOMEN
AND VETERAN-OWNED business enterprises of  available  federal  resources
including  but  not  limited  to federal grants, loans, loan guarantees,
surety  bonding  guarantees,  technical  assistance,  and  programs  and
services of the federal small business administration.
  S  4. The section heading and subdivisions 1, 2 and 3 of section 311-a
of the executive law, as added by section 4 of part BB of chapter 59  of
the laws of 2006, are amended to read as follows:
  Minority  [and  women-owned],  WOMEN AND VETERAN-OWNED business enter-
prise statewide advocate. 1. There  is  hereby  established  within  the
department  of  economic  development  an  office  of  the minority [and
women-owned], WOMEN  AND  VETERAN-OWNED  business  enterprise  statewide
advocate.  The statewide advocate shall be appointed by the commissioner
with the advice of the small business advisory board as  established  in
section  one  hundred  thirty-three  of the economic development law and
shall serve in the unclassified service of the director.  The  statewide
advocate shall be located in the Albany empire state development office.
  2. The advocate shall act as a liaison for minority [and women-owned],
WOMEN  AND  VETERAN-OWNED  business  enterprises  [(MWBEs)]  (MWVBES) to
assist them in obtaining  technical,  managerial,  financial  and  other
business  assistance  for certified businesses and applicants. The advo-
cate shall investigate complaints brought by or  on  behalf  of  [MWBEs]
(MWVBES)  concerning certification delays and instances of violations of
law by state agencies. The statewide  advocate  shall  assist  certified
businesses  and applicants in the certification process. Other functions
of the statewide advocate shall be directed  by  the  commissioner.  The
advocate may request and the director may appoint staff and employees of
the  division  of  minority  [and women], WOMEN'S AND VETERANS' business
development to support the administration of the office of the statewide
advocate.
  3. The statewide advocate shall establish a toll-free  number  at  the
department  of  economic  development  to  be  used  to answer questions
concerning the [MWBE] MWVBE certification process.
  S 5. The section heading and paragraph (a) of subdivision 1 of section
312 of the executive law, as added by chapter 261 of the laws  of  1988,
are amended to read as follows:
  Equal employment opportunities for minority group members [and], women
AND VETERANS.
  (a)  The  contractor will not discriminate against employees or appli-
cants for employment because of race,  creed,  color,  national  origin,
sex,  age,  disability or marital status, and will undertake or continue
existing programs of affirmative action to ensure  that  minority  group
members [and], women AND VETERANS are afforded equal employment opportu-

A. 3056                             5

nities  without discrimination. For purposes of this article affirmative
action shall mean recruitment, employment,  job  assignment,  promotion,
upgradings,  demotion, transfer, layoff, or termination and rates of pay
or other forms of compensation.
  S  6. Section 312-a of the executive law, as amended by chapter 175 of
the laws of 2010, is amended to read as follows:
  S 312-a. Study of minority [and women-owned], WOMEN AND  VETERAN-OWNED
business enterprise programs. 1. The director of the division of minori-
ty  [and  women-owned],  WOMEN AND VETERAN-OWNED business development in
the department of economic development is  authorized  and  directed  to
recommission  a statewide disparity study regarding the participation of
minority [and women-owned], WOMEN AND VETERAN-OWNED business enterprises
in state contracts since the amendment of this article to  be  delivered
to  the  governor  and legislature no later than February fifteenth, two
thousand sixteen.  The study shall be prepared by an entity  independent
of  the  department and selected through a request for proposal process.
The purpose of such study is:
  (a) to determine whether there is a disparity between  the  number  of
qualified minority [and women-owned], WOMEN AND VETERAN-OWNED businesses
ready,  willing  and  able  to  perform state contracts for commodities,
services and construction, and the number of such  contractors  actually
engaged  to  perform  such  contracts, and to determine what changes, if
any, should be made to state policies  affecting  minority  [and  women-
owned],  WOMEN AND VETERAN-OWNED business enterprises; and (b) to deter-
mine whether there is a disparity between the number of qualified minor-
ities [and], women AND VETERANS ready, willing and able, with respect to
labor markets, qualifications and other relevant factors, to participate
in contractor employment, management level bodies, including  boards  of
directors,  and as senior executive officers within contracting entities
and the number of such group members  actually  employed  or  affiliated
with  state  contractors in the aforementioned capacities, and to deter-
mine what changes, if any, should be made to  state  policies  affecting
minority [and], women AND VETERAN group populations with regard to state
contractors'  employment  and  appointment practices relative to diverse
group members. Such study shall include, but not be limited to, an anal-
ysis  of  the  history  of  minority  [and   women-owned],   WOMEN   AND
VETERAN-OWNED  business enterprise programs and their effectiveness as a
means of securing and ensuring participation by minorities [and],  women
AND  VETERANS, and a disparity analysis by market area and region of the
state. Such study shall distinguish  between  minority  males,  minority
females  and  non-minority  females,  AND  BETWEEN MINORITY VETERANS AND
NON-MINORITY VETERANS, AND FEMALE VETERANS AND  MALE  VETERANS,  in  the
statistical analysis.
  2.  The  director of the division of minority [and women-owned], WOMEN
AND VETERAN-OWNED business  development  is  directed  to  transmit  the
disparity  study  to  the  governor  and  the legislature not later than
February fifteenth, two thousand sixteen, and to post the study  on  the
website of the department of economic development.
  S  7.  Section  313 of the executive law, as amended by chapter 175 of
the laws of 2010, is amended to read as follows:
  S 313. Opportunities for minority [and women-owned], WOMEN AND  VETER-
AN-OWNED  business  enterprises.  1. Goals and requirements for agencies
and contractors.  Each agency shall structure procurement procedures for
contracts made directly or indirectly  to  minority  [and  women-owned],
WOMEN  AND  VETERAN-OWNED  business enterprises, [in accordance with the
findings of the two thousand ten disparity study,] consistent  with  the

A. 3056                             6

purposes  of  this  article, to attempt to achieve the following results
with regard to total annual statewide procurement:
  (a) construction industry for certified minority-owned business enter-
prises: fourteen and thirty-four hundredths percent;
  (b)  construction  industry  for certified women-owned business enter-
prises: eight and forty-one hundredths percent;
  (B-1)  CONSTRUCTION  INDUSTRY  FOR  CERTIFIED  VETERAN-OWNED  BUSINESS
ENTERPRISES:  A  PERCENTAGE  TO  BE  DETERMINED  BY  THE DISPARITY STUDY
DESCRIBED IN SUBDIVISION ONE OF SECTION THREE HUNDRED TWELVE-A  OF  THIS
ARTICLE;
  (c)  construction related professional services industry for certified
minority-owned business enterprises: thirteen and twenty-one  hundredths
percent;
  (d)  construction related professional services industry for certified
women-owned  business  enterprises:  eleven  and  thirty-two  hundredths
percent;
  (D-1)  CONSTRUCTION  RELATED PROFESSIONAL SERVICES INDUSTRY FOR CERTI-
FIED VETERAN-OWNED BUSINESS ENTERPRISES:  A PERCENTAGE TO BE  DETERMINED
BY  THE  DISPARITY  STUDY  DESCRIBED IN SUBDIVISION ONE OF SECTION THREE
HUNDRED TWELVE-A OF THIS ARTICLE;
  (e) non-construction related services industry for  certified  minori-
ty-owned business enterprises: nineteen and sixty hundredths percent;
  (f)  non-construction  related  services industry for certified women-
owned business enterprises: seventeen and forty-four hundredths percent;
  (F-1) NON-CONSTRUCTION RELATED SERVICES INDUSTRY FOR CERTIFIED  VETER-
AN-OWNED  BUSINESS  ENTERPRISES:    A PERCENTAGE TO BE DETERMINED BY THE
DISPARITY STUDY DESCRIBED IN SUBDIVISION ONE OF  SECTION  THREE  HUNDRED
TWELVE-A OF THIS ARTICLE;
  (g)  commodities industry for certified minority-owned business enter-
prises: sixteen and eleven hundredths percent;
  (h) commodities industry for  certified  women-owned  business  enter-
prises:  ten and ninety-three hundredths percent;
  (H-1) COMMODITIES INDUSTRY FOR CERTIFIED VETERAN-OWNED BUSINESS ENTER-
PRISES:   A PERCENTAGE TO BE DETERMINED BY THE DISPARITY STUDY DESCRIBED
IN SUBDIVISION ONE OF SECTION THREE HUNDRED TWELVE-A OF THIS ARTICLE;
  (i) overall agency total dollar value  of  procurement  for  certified
minority-owned  business enterprises: sixteen and fifty-three hundredths
percent;
  (j) overall agency total dollar value  of  procurement  for  certified
women-owned  business  enterprises:  twelve  and  thirty-nine hundredths
percent; [and]
  (J-1) OVERALL AGENCY TOTAL DOLLAR VALUE OF PROCUREMENT  FOR  CERTIFIED
VETERAN-OWNED  BUSINESS  ENTERPRISES:   A PERCENTAGE TO BE DETERMINED BY
THE DISPARITY STUDY  DESCRIBED  IN  SUBDIVISION  ONE  OF  SECTION  THREE
HUNDRED TWELVE-A OF THIS ARTICLE;
  (k)  overall  agency  total  dollar value of procurement for certified
minority, women-owned business enterprises: twenty-eight and  ninety-two
hundredths percent; AND
  (L)  OVERALL  AGENCY  TOTAL  DOLLAR VALUE OF PROCUREMENT FOR CERTIFIED
MINORITY, WOMEN, VETERAN-OWNED BUSINESS ENTERPRISES:  A PERCENTAGE TO BE
DETERMINED BY THE  DISPARITY  STUDY  DESCRIBED  IN  SUBDIVISION  ONE  OF
SECTION THREE HUNDRED TWELVE-A OF THIS ARTICLE.
  1-a.  The  director  shall  ensure  that  each  state  agency has been
provided with a copy of the two thousand ten disparity study AND  THERE-
AFTER THE TWO THOUSAND FIFTEEN DISPARITY STUDY.

A. 3056                             7

  1-b.  Each  agency shall develop and adopt agency-specific goals based
on the findings of the two thousand ten disparity study  AND  THEREAFTER
THE TWO THOUSAND SIXTEEN DISPARITY STUDY.
  2. The director shall promulgate rules and regulations pursuant to the
goals  established in subdivision one of this section that provide meas-
ures and procedures to ensure that certified minority [and women-owned],
WOMEN AND VETERAN-OWNED businesses shall be given  the  opportunity  for
maximum feasible participation in the performance of state contracts and
to  assist  in  the agency's identification of those state contracts for
which minority [and  women-owned],  WOMEN  AND  VETERAN-OWNED  certified
businesses may best bid to actively and affirmatively promote and assist
their  participation  in  the  performance  of  state contracts so as to
facilitate the agency's achievement of the maximum feasible  portion  of
the goals for state contracts to such businesses.
  2-a.  The  director  shall  promulgate rules and regulations that will
accomplish the following:
  (a) provide for the certification and decertification of minority [and
women-owned], WOMEN AND VETERAN-OWNED business enterprises for all agen-
cies through a single process that meets applicable requirements;
  (b) require that each contract solicitation document accompanying each
solicitation  set  forth  the   expected   degree   of   minority   [and
women-owned],  WOMEN AND VETERAN-OWNED business enterprise participation
based, in part, on:
  (i) the potential subcontract opportunities  available  in  the  prime
procurement contract; and
  (ii)  the  availability,  as  contained within the study, of certified
minority [and women-owned], WOMEN AND VETERAN-OWNED business enterprises
to respond competitively to the potential subcontract opportunities;
  (c) require that each agency  provide  a  current  list  of  certified
minority,  WOMEN AND VETERAN-OWNED business enterprises to each prospec-
tive contractor;
  (d) allow a contractor that is a certified [minority-owned  or  women-
owned]  MINORITY,  WOMEN OR VETERAN-OWNED business enterprise to use the
work it performs to meet requirements for use  of  certified  [minority-
owned  or  women-owned] MINORITY, WOMEN OR VETERAN-OWNED business enter-
prises as subcontractors;
  (e) provide for joint ventures, which a bidder may count toward  meet-
ing  its  minority  [and  women-owned], WOMEN AND VETERAN-OWNED business
enterprise participation;
  (f) consistent with subdivision  six  of  this  section,  provide  for
circumstances  under  which  an  agency  may  waive  obligations  of the
contractor  relating  to   minority   [and   women-owned],   WOMEN   AND
VETERAN-OWNED business enterprise participation;
  (g)  require  that  an  agency verify that minority [and women-owned],
WOMEN AND VETERAN-OWNED business enterprises listed in a successful  bid
are actually participating to the extent listed in the project for which
the bid was submitted;
  (h)  provide  for  the  collection  of statistical data by each agency
concerning actual minority [and women-owned],  WOMEN  AND  VETERAN-OWNED
business enterprise participation; and
  (i)  require  each  agency to consult the most current disparity study
when calculating agency-wide and contract specific  participation  goals
pursuant to this article.
  3.  Solely for the purpose of providing the opportunity for meaningful
participation by  certified  businesses  in  the  performance  of  state
contracts  as  provided  in  this section, state contracts shall include

A. 3056                             8

leases of real property by a state agency to a lessee where:  the  terms
of  such  leases  provide for the construction, demolition, replacement,
major repair or renovation of real property and improvements thereon  by
such lessee; and the cost of such construction, demolition, replacement,
major  repair  or  renovation  of real property and improvements thereon
shall exceed the sum of one hundred thousand  dollars.  Reports  to  the
director pursuant to section three hundred fifteen of this article shall
include activities with respect to all such state contracts. Contracting
agencies  shall  include or require to be included with respect to state
contracts for the acquisition,  construction,  demolition,  replacement,
major  repair  or  renovation of real property and improvements thereon,
such provisions as may be necessary to effectuate the provisions of this
section in every bid specification and state  contract,  including,  but
not  limited  to:  (a)  provisions  requiring contractors to make a good
faith effort to solicit active participation by  enterprises  identified
in  the  directory  of  certified businesses provided to the contracting
agency by the office; (b) requiring the parties to agree as a  condition
of entering into such contract, to be bound by the provisions of section
three  hundred sixteen of this article; and (c) requiring the contractor
to include the provisions set forth in paragraphs (a) and  (b)  of  this
subdivision in every subcontract in a manner that the provisions will be
binding  upon  each  subcontractor  as  to  work in connection with such
contract. Provided, however, that no such provisions  shall  be  binding
upon  contractors  or  subcontractors  in the performance of work or the
provision of services that are unrelated, separate or distinct from  the
state  contract  as  expressed by its terms, and nothing in this section
shall authorize the director or any contracting  agency  to  impose  any
requirement  on  a  contractor or subcontractor except with respect to a
state contract.
  4. In the implementation of this section, the contracting agency shall
(a) consult the findings contained within the disparity study evidencing
relevant industry specific availability of certified businesses;
  (b) implement a program that will enable the agency to  evaluate  each
contract to determine the appropriateness of the goal pursuant to subdi-
vision one of this section;
  (c)  consider  where  practicable,  the  severability  of construction
projects and other bundled contracts; and
  (d) consider compliance with  the  requirements  of  any  federal  law
concerning  opportunities  for  minority  [and  women-owned],  WOMEN AND
VETERAN-OWNED business enterprises which effectuates the purpose of this
section. The contracting agency shall determine whether  the  imposition
of  the  requirements  of  any  such  law duplicate or conflict with the
provisions hereof and  if  such  duplication  or  conflict  exists,  the
contracting  agency shall waive the applicability of this section to the
extent of such duplication or conflict.
  5. (a) Contracting agencies shall administer the rules and regulations
promulgated by the director in a good faith effort to meet  the  maximum
feasible  portion of the agency's goals adopted pursuant to this article
and the regulations of the director. Such rules and  regulations:  shall
require a contractor to submit a utilization plan after bids are opened,
when  bids  are  required,  but  prior to the award of a state contract;
shall require the contracting agency  to  review  the  utilization  plan
submitted  by  the  contractor  and to post the utilization plan and any
waivers of compliance issued pursuant to subdivision six of this section
on the website of the contracting agency within a reasonable  period  of
time as established by the director; shall require the contracting agen-

A. 3056                             9

cy to notify the contractor in writing within a period of time specified
by  the  director  as  to any deficiencies contained in the contractor's
utilization plan; shall require remedy thereof within a period  of  time
specified  by the director; shall require the contractor to submit peri-
odic compliance reports relating to the operation and implementation  of
any  utilization  plan;  shall not allow any automatic waivers but shall
allow a contractor to apply for a partial or total waiver of the minori-
ty  [and  women-owned],  WOMEN  AND  VETERAN-OWNED  business  enterprise
participation  requirements  pursuant  to  subdivisions six and seven of
this section; shall allow a contractor to  file  a  complaint  with  the
director  pursuant  to  subdivision eight of this section in the event a
contracting agency has failed or refused to issue a waiver of the minor-
ity [and  women-owned],  WOMEN  AND  VETERAN-OWNED  business  enterprise
participation  requirements or has denied such request for a waiver; and
shall allow a contracting agency to file a complaint with  the  director
pursuant  to  subdivision nine of this section in the event a contractor
is failing or has failed to comply with the minority [and  women-owned],
WOMEN  AND  VETERAN-OWNED business enterprise participation requirements
set forth in the state contract where no waiver has been granted.
  (b) The rules and regulations promulgated pursuant to this subdivision
regarding a utilization plan shall provide that where  enterprises  have
been  identified  within a utilization plan, a contractor shall attempt,
in good faith, to utilize such enterprise at least to the  extent  indi-
cated. A contracting agency may require a contractor to indicate, within
a  utilization  plan,  what measures and procedures he or she intends to
take to comply with the provisions of this article, but may not require,
as a condition of award of,  or  compliance  with,  a  contract  that  a
contractor  utilize  a  particular  enterprise  in  performance  of  the
contract.
  (c) Without limiting other grounds for the disqualification of bids or
proposals on the basis of non-responsibility, a contracting  agency  may
disqualify  the bid or proposal of a contractor as being non-responsible
for failure to remedy notified deficiencies contained  in  the  contrac-
tor's  utilization plan within a period of time specified in regulations
promulgated by the director after receiving notification of  such  defi-
ciencies  from the contracting agency. Where failure to remedy any noti-
fied deficiency in the utilization plan is a  ground  for  disqualifica-
tion,  that  issue  and  all other grounds for disqualification shall be
stated in writing by the contracting agency. Where the contracting agen-
cy states that a failure to remedy any notified deficiency in the utili-
zation plan is a ground for disqualification  the  contractor  shall  be
entitled  to  an  administrative  hearing,  on  a  record, involving all
grounds  stated  by  the  contracting  agency.  Such  hearing  shall  be
conducted  by  the  appropriate  authority  of the contracting agency to
review the determination of  disqualification.  A  final  administrative
determination  made  following  such  hearing  shall  be reviewable in a
proceeding commenced under article seventy-eight of the  civil  practice
law  and rules, provided that such proceeding is commenced within thirty
days of the notice given by  certified  mail  return  receipt  requested
rendering such final administrative determination. Such proceeding shall
be  commenced in the supreme court, appellate division, third department
and such proceeding shall be  preferred  over  all  other  civil  causes
except  election causes, and shall be heard and determined in preference
to all other civil business pending therein,  except  election  matters,
irrespective  of position on the calendar. Appeals taken to the court of

A. 3056                            10

appeals of the state of New York shall be subject to  the  same  prefer-
ence.
  6.  Where  it  appears  that  a  contractor cannot, after a good faith
effort,  comply  with  the  minority  [and   women-owned],   WOMEN   AND
VETERAN-OWNED  business  enterprise participation requirements set forth
in a particular state contract, a contractor may file a written applica-
tion with the contracting agency requesting a partial or total waiver of
such requirements  setting  forth  the  reasons  for  such  contractor's
inability  to meet any or all of the participation requirements together
with an explanation of the  efforts  undertaken  by  the  contractor  to
obtain  the required minority [and women-owned], WOMEN AND VETERAN-OWNED
business enterprise participation. In  implementing  the  provisions  of
this section, the contracting agency shall consider the number and types
of  minority  [and women-owned], WOMEN AND VETERAN-OWNED business enter-
prises located in the region in  which  the  state  contract  is  to  be
performed,  the  total  dollar value of the state contract, the scope of
work to be performed and the project size and term. If,  based  on  such
considerations, the contracting agency determines there is not a reason-
able  availability  of  contractors  on the list of certified [business]
BUSINESSES to furnish services for the project, it shall issue a  waiver
of  compliance  to  the  contractor.  In  making such determination, the
contracting agency shall first consider the availability of other  busi-
ness enterprises located in the region and shall thereafter consider the
financial ability of minority [and women-owned], WOMEN AND VETERAN-OWNED
businesses  located  outside  the  region in which the contract is to be
performed to perform the state contract.
  7. For purposes of determining a contractor's  good  faith  effort  to
comply  with  the  requirements  of  this section or to be entitled to a
waiver therefrom the contracting agency shall consider:
  (a) whether the  contractor  has  advertised  in  general  circulation
media, trade association publications, and [minority-focus and women-fo-
cus]  MINORITY-FOCUSED,  WOMEN-FOCUSED AND VETERAN-FOCUSED media and, in
such event, (i) whether or  not  certified  minority  [or  women-owned],
WOMEN  OR  VETERAN-OWNED  businesses  which  have  been solicited by the
contractor exhibited interest in submitting proposals for  a  particular
project by attending a pre-bid conference; and
  (ii)  whether  certified  businesses  which have been solicited by the
contractor have responded in a timely fashion to the contractor's solic-
itations for timely competitive bid quotations prior to the  contracting
agency's bid date; and
  (b)  whether there has been written notification to appropriate certi-
fied businesses that appear in the  directory  of  certified  businesses
prepared pursuant to paragraph (f) of subdivision three of section three
hundred eleven of this article; and
  (c) whether the contractor can reasonably structure the amount of work
to  be  performed under subcontracts in order to increase the likelihood
of participation by certified businesses.
  8. In the event that a contracting agency fails or refuses to issue  a
waiver to a contractor as requested within twenty days after having made
application  therefor  pursuant to subdivision six of this section or if
the contracting agency denies such application, in whole or in part, the
contractor may file a complaint with the director  pursuant  to  section
three  hundred  sixteen  of  this  article  setting  forth the facts and
circumstances giving rise to the contractor's complaint together with  a
demand  for  relief. The contractor shall serve a copy of such complaint
upon the contracting agency by personal service or  by  certified  mail,

A. 3056                            11

return  receipt  requested.  The contracting agency shall be afforded an
opportunity to respond to such complaint in writing.
  9.  If, after the review of a contractor's minority [and women owned],
WOMEN AND VETERAN-OWNED business utilization plan or review of a period-
ic compliance report and after such  contractor  has  been  afforded  an
opportunity to respond to a notice of deficiency issued by the contract-
ing  agency  in  connection  therewith,  it appears that a contractor is
failing or refusing to comply with the minority [and women-owned], WOMEN
AND VETERAN-OWNED business participation requirements as  set  forth  in
the  state  contract and where no waiver from such requirements has been
granted, the contracting agency may file a written  complaint  with  the
director  pursuant  to  section  three  hundred  sixteen of this article
setting forth the facts and circumstances giving rise to the contracting
agency's complaint together with a demand for relief.   The  contracting
agency  shall  serve  a  copy  of  such complaint upon the contractor by
personal service or by certified mail,  return  receipt  requested.  The
contractor shall be afforded an opportunity to respond to such complaint
in writing.
  S  8.  Section  313-a of the executive law, as added by chapter 175 of
the laws of 2010, is amended to read as follows:
  S 313-a. Diversity practices of state contractors. The director  shall
promulgate  rules  and regulations setting forth measures and procedures
to require all contracting agencies,  where  practicable,  feasible  and
appropriate, to assess the diversity practices of contractors submitting
bids or proposals in connection with the award of a state contract. Such
rules  and regulations shall take into account: the nature of the labor,
services, supplies, equipment or materials being procured by  the  state
agency;  the method of procurement required to be used by a state agency
to award the contract and minority [and women-owned], WOMEN  AND  VETER-
AN-OWNED business utilization plans required to be submitted pursuant to
sections  three  hundred twelve and three hundred thirteen of this arti-
cle; and such other factors as the director deems appropriate or  neces-
sary to promote the award of state contracts to contractors having sound
diversity  practices.    Such assessment shall not in any way permit the
automatic rejection of a bid or procurement contract proposal  based  on
lack of adherence to diversity practices.  Each bid or proposal shall be
analyzed  on  an  individual  per  bid  or  per  proposal basis with the
contractor's diversity practices considered as only a part  of  a  wider
consideration  of  several  factors when deciding to award or decline to
award a bid or proposal.  The director shall develop the rules and regu-
lations required  hereunder  only  after  consultation  with  the  state
procurement  council established by section one hundred sixty-one of the
state finance law.
  S 9. Subdivisions 2 and 2-a of  section  314  of  the  executive  law,
subdivision  2  as added by chapter 261 of the laws of 1988 and subdivi-
sion 2-a as amended by chapter 175 of the laws of 2010, are  amended  to
read as follows:
  2.  For  the purposes of this article, the office shall be responsible
for verifying businesses as being owned,  operated,  and  controlled  by
minority  group  members [or], women OR VETERANS and for certifying such
verified businesses. The director shall prepare a directory of certified
businesses for use by contracting agencies and contractors  in  carrying
out  the  provisions  of  this  article. The director shall periodically
update the directory.
  2-a. (a) The director shall establish a procedure enabling the  office
to  accept New York municipal corporation certification verification for

A. 3056                            12

minority [and women-owned], WOMEN AND VETERAN-OWNED business  enterprise
applicants  in  lieu  of  requiring  the applicant to complete the state
certification process. The director shall  promulgate  rules  and  regu-
lations  to  set  forth  criteria for the acceptance of municipal corpo-
ration certification. All eligible municipal corporation  certifications
shall  require  business  enterprises  seeking certification to meet the
following standards:
  (i) have at least fifty-one percent ownership  by  a  minority  [or  a
women-owned],  WOMEN  OR VETERAN-OWNED enterprise and be owned by United
States citizens or permanent resident aliens;
  (ii) be an enterprise in which the minority [and/or  women-ownership],
WOMEN AND/OR VETERAN-OWNERSHIP interest is real, substantial and contin-
uing;
  (iii) be an enterprise in which the minority [and/or women-ownership],
WOMEN  AND/OR  VETERAN-OWNERSHIP  has  and  exercises  the  authority to
control independently the day-to-day business decisions  of  the  enter-
prise;
  (iv) be an enterprise authorized to do business in this state;
  (v)  be  subject to a physical site inspection to verify the fifty-one
percent ownership requirement;
  (vi) be owned  by  an  individual  or  individuals,  whose  ownership,
control and operation are relied upon for certification, with a personal
net  worth  that  does  not  exceed  three million five hundred thousand
dollars, as adjusted annually for inflation according  to  the  consumer
price index; and
  (vii)  be  an enterprise that is a small business pursuant to subdivi-
sion twenty of section three hundred ten of this article.
  (b) The director shall work with all municipal corporations that  have
a municipal minority [and women-owned], WOMEN AND VETERAN-OWNED business
enterprise program to develop standards to accept state certification to
meet  the  municipal  corporation  minority [and women-owned], WOMEN AND
VETERAN-OWNED business enterprise certification standards.
  (c) The director shall establish a procedure enabling the division  to
accept    federal   certification   verification   for   minority   [and
women-owned], WOMEN AND VETERAN-OWNED  business  enterprise  applicants,
provided said standards comport with those required by the state minori-
ty  [and women-owned], WOMEN AND VETERAN-OWNED business program, in lieu
of requiring the applicant to complete the state certification  process.
The  director shall promulgate rules and regulations to set forth crite-
ria for the acceptance of federal certification.
  S 10. Subdivisions 3, 4, 5 and 7 of section 315 of the executive  law,
subdivision 3 as amended and subdivisions 4, 5 and 7 as added by chapter
175 of the laws of 2010, are amended to read as follows:
  3.  Each  contracting agency shall report to the director with respect
to activities undertaken to promote employment of minority group members
[and], women AND VETERANS and  promote  and  increase  participation  by
certified  businesses  with respect to state contracts and subcontracts.
Such reports shall be submitted periodically, but  not  less  frequently
than  annually,  as  required  by  the  director, and shall include such
information as is necessary for the director to  determine  whether  the
contracting  agency  and  contractor  have complied with the purposes of
this article, including, without limitation, a summary of all waivers of
the requirements of subdivisions six and seven of section three  hundred
thirteen  of  this  article allowed by the contracting agency during the
period covered by the report, including a description of  the  basis  of
the  waiver request and the rationale for granting any such waiver. Each

A. 3056                            13

agency shall also include in such annual report whether or  not  it  has
been  required  to prepare a remedial plan, and, if so, the plan and the
extent to which the agency has complied with each element of the plan.
  4.  The  division  of  minority  [and], women's AND VETERANS' business
development shall issue an  annual  report  which:  (a)  summarizes  the
report  submitted  by  each  contracting  agency pursuant to subdivision
three of this section; (b) contains such comparative or  other  informa-
tion  as  the  director  deems appropriate, including but not limited to
goals compared to actual participation of  minority  [and  women-owned],
WOMEN  AND  VETERAN-OWNED  business enterprises in state contracting, to
evaluate the effectiveness of the activities  undertaken  by  each  such
contracting  agency  to  promote  increased  participation  by certified
minority  [or  women-owned],  WOMEN  OR  VETERAN-OWNED  businesses  with
respect  to  state contracts and subcontracts; (c) contains a summary of
all waivers of the requirements of subdivisions six and seven of section
three hundred thirteen of this article allowed by each contracting agen-
cy during the period covered by the report, including a  description  of
the  basis  of the waiver request and the contracting agency's rationale
for granting any such waiver; (d) describes  any  efforts  to  create  a
database  or  other  information storage and retrieval system containing
information relevant to contracting  with  minority  [and  women-owned],
WOMEN AND VETERAN-OWNED business enterprises; and (e) contains a summary
of  (i) all determinations of violations of this article by a contractor
or a contracting agency made during the period  covered  by  the  annual
report  pursuant  to section three hundred sixteen-a of this article and
(ii) the penalties or sanctions, if any,  assessed  in  connection  with
such  determinations  and the rationale for such penalties or sanctions.
Copies of the annual report shall be provided to the  commissioner,  the
governor,  the  comptroller,  the temporary president of the senate, the
speaker of the assembly, the minority leader of the senate, the minority
leader of the assembly and shall also be made widely  available  to  the
public  via,  among other things, publication on a website maintained by
the division of minority [and], women's AND VETERANS' business  develop-
ment.
  5.  Each agency shall include in its annual report to the governor and
legislature pursuant to section one hundred sixty-four of [the executive
law] THIS CHAPTER its annual goals  for  contracts  with  minority-owned
[and], women-owned AND VETERAN-OWNED business enterprises, the number of
actual  contracts issued to minority-owned [and], women-owned AND VETER-
AN-OWNED business enterprises; and a  summary  of  all  waivers  of  the
requirements  of  subdivisions  six  and  seven of section three hundred
thirteen of this article allowed by  the  reporting  agency  during  the
preceding  year,  including  a  description  of  the basis of the waiver
request and the rationale for granting such waiver.  Each  agency  shall
also  include  in such annual report whether or not it has been required
to prepare a remedial plan, and, if so, the plan and the extent to which
the agency has complied with each element of the plan.
  7.  If it is determined by the director that any agency has failed  to
act  in  good  faith  to implement the remedial action plan, pursuant to
subdivision six of this section within  one  year,  the  director  shall
provide written notice of such a finding, which shall be publicly avail-
able, and direct implementation of remedial actions to:
  (a)  assure  that  sufficient  and  effective  solicitation efforts to
women, VETERAN and minority-owned business enterprises are being made by
said agency;

A. 3056                            14

  (b) divide contract requirements,  when  economically  feasible,  into
quantities  that  will  expand  the  participation of women, VETERAN and
minority-owned business enterprises;
  (c) eliminate extended experience or capitalization requirements, when
programmatically  and  economically  feasible,  that will expand partic-
ipation by women, VETERAN and minority-owned business enterprises;
  (d) identify specific proposed contracts as particularly attractive or
appropriate for participation by women, VETERAN and minority-owned busi-
ness enterprises with such identification to result from and be  coupled
with  the  efforts  of paragraphs (a), (b), and (c) of this subdivision;
and
  (e) upon a finding by the director that an agency has failed  to  take
affirmative measures to implement the remedial plan and to follow any of
the  remedial  actions  set forth by the director, and in the absence of
any objective progress towards the agency's goals, require some  or  all
of  the  agency's procurement, for a specified period of time, be placed
under the direction and control of another agency or agencies.
  S 11. Section 316 of the executive law, as amended by chapter  175  of
the laws of 2010, is amended to read as follows:
  S 316. Enforcement.  Upon  receipt by the director of a complaint by a
contracting agency that a contractor has violated the  provisions  of  a
state contract which have been included to comply with the provisions of
this  article  or of a contractor that a contracting agency has violated
such provisions or has failed or refused to issue a waiver where one has
been applied for pursuant to subdivision six of  section  three  hundred
thirteen  of  this  article or has denied such application, the director
shall attempt to resolve the matter giving rise to  such  complaint.  If
efforts  to  resolve  such matter to the satisfaction of all parties are
unsuccessful, the director shall refer the matter, within thirty days of
the receipt of the complaint, to the division's hearing  officers.  Upon
conclusion  of  the  administrative  hearing,  the hearing officer shall
submit to the  director  his  or  her  decision  regarding  the  alleged
violation  of  the contract and recommendations regarding the imposition
of sanctions, fines or penalties.  The  director,  within  ten  days  of
receipt  of  the decision, shall file a determination of such matter and
shall cause a copy of such determination along with a copy of this arti-
cle to be served upon the contractor by personal service or by certified
mail return receipt requested. The decision of the hearing officer shall
be final and may only be vacated or  modified  as  provided  in  article
seventy-eight  of  the  civil practice law and rules upon an application
made within the time provided by such article. The determination of  the
director as to the imposition of any fines, sanctions or penalties shall
be  reviewable  pursuant  to article seventy-eight of the civil practice
law and rules. The penalties imposed for any violation which is premised
upon  either  a  fraudulent  or  intentional  misrepresentation  by  the
contractor  or the contractor's willful and intentional disregard of the
minority  [and  women-owned],  WOMEN  AND  VETERAN-OWNED   participation
requirement  included  in  the contract may include a determination that
the contractor shall be ineligible to submit a bid  to  any  contracting
agency  or  be  awarded any such contract for a period not to exceed one
year following the final determination; provided however, if a  contrac-
tor  has  previously  been  determined  to be ineligible to submit a bid
pursuant to this section,  the  penalties  imposed  for  any  subsequent
violation,  if  such  violation  occurs  within  five years of the first
violation, may include a determination  that  the  contractor  shall  be
ineligible  to  submit a bid to any contracting agency or be awarded any

A. 3056                            15

such contract for a period not to exceed five years following the  final
determination.  The  division  of  minority  [and  women's], WOMEN'S AND
VETERANS' business development shall  maintain  a  website  listing  all
contractors that have been deemed ineligible to submit a bid pursuant to
this  section  and the date after which each contractor shall once again
become eligible to submit bids.
  S 12. Section 316-a of the executive law, as added by chapter  175  of
the laws of 2010, is amended to read as follows:
  S  316-a.  Prohibitions  in  contracts;  violations. Every contracting
agency shall include  a  provision  in  its  state  contracts  expressly
providing  that  any contractor who willfully and intentionally fails to
comply with the minority  [and  women-owned],  WOMEN  AND  VETERAN-OWNED
participation  requirements  of  this article as set forth in such state
contract shall be liable to the contracting  agency  for  liquidated  or
other  appropriate damages and shall provide for other appropriate reme-
dies on account of such breach. A  contracting  agency  that  elects  to
proceed  against a contractor for breach of contract as provided in this
section shall be precluded from seeking enforcement pursuant to  section
three  hundred  sixteen  of  this  article;  provided  however, that the
contracting agency shall include a summary of  all  enforcement  actions
undertaken  pursuant  to  this  section  in  its annual report submitted
pursuant to subdivision three of section three hundred fifteen  of  this
article.
  S 13. Section 317 of the executive law, as added by chapter 261 of the
laws of 1988, is amended to read as follows:
   S 317. Superseding  effect  of article with respect to state law. The
provisions of this article shall supersede any other provision of  state
law, which expressly implements or mandates an equal employment opportu-
nity  program  or  a program for securing participation by minority [and
women-owned], WOMEN AND VETERAN-OWNED business  enterprises,  concerning
action  to  be  taken  by  any  party  to a state contract, to which the
provisions of this article apply; provided, however, that the provisions
of any state law, not as hereinabove superseded, which expressly  imple-
ment  or mandate such programs shall remain unimpaired by the provisions
of this article, except that the provisions of any  such  law  shall  be
construed  as  if  the  provisions  of subdivisions five, six, seven and
eight of section  three  hundred  thirteen  and  section  three  hundred
sixteen of this article were fully set forth therein and made applicable
only  to complaints of violations under such provisions of law occurring
on or after September first, nineteen  hundred  eighty-eight;  provided,
further,  that  nothing  contained in this article shall be construed to
limit, impair, or otherwise restrict any  state  agency's  authority  or
discretionary  power in effect prior to the enactment of this article to
establish or continue, by  rule,  regulation  or  resolution,  an  equal
opportunity  program or a program for securing participation of minority
[and women-owned], WOMEN AND  VETERAN-OWNED  business  enterprises  with
regard  to  banking relationships, the issuance of insurance policies or
contracts for the  sale  of  bonds,  notes  or  other  securities;  and,
provided  further,  that  nothing contained in the immediately preceding
proviso shall be construed to  create,  impair,  alter,  limit,  modify,
enlarge,  abrogate  or  restrict any agency's authority or discretionary
power with respect to an equal opportunity  program  or  a  program  for
securing  participation  of minority [and women-owned], WOMEN AND VETER-
AN-OWNED enterprises.
  S 14. Section 4-a of the executive law, as added by chapter 175 of the
laws of 2010, is amended to read as follows:

A. 3056                            16

  S 4-a. Chief diversity officer. A  chief  diversity  officer  for  the
state  shall  be appointed by the governor and shall receive a salary to
be fixed by the governor within the amount  appropriated  therefor.  The
chief diversity officer's responsibilities shall include the following:
  1.  Advise and assist the governor in formulating policies relating to
workforce diversity and minority [and], women's AND  VETERANS'  business
enterprises;
  2.  Work  with the director of the division of minority [and], women's
AND VETERANS' business development to prepare an annual plan for  ensur-
ing  full  compliance  with  article  [fifteen-a  of  the executive law]
FIFTEEN-A OF THIS CHAPTER by state agencies and  the  use  of  diversity
practices by such agencies;
  3.  Advise the governor and the agencies regarding any measures neces-
sary to ensure full compliance with  article  [fifteen-a]  FIFTEEN-A  of
this chapter and use of diversity practices by state public authorities;
  4.  Serve  as  a  member  of the state procurement council established
under section one hundred sixty-one of the state finance law;
  5. Serve as the governor's  liaison  with  organizations  representing
minority [and women-owned], WOMEN AND VETERAN-OWNED business enterprises
and  other organizations related to diversity in the state workforce and
in state contracting;
  6. Serve as the governor's liaison  to  the  small  business  advisory
council  for  issues  related to the creation of a diverse workforce and
state procurement practices  relating  to  minority  [and  women-owned],
WOMEN AND VETERAN-OWNED business enterprises;
  7. Review and consult with the director of minority [and], women's AND
VETERANS'  business  development regarding policies relating to minority
[and women-owned], WOMEN AND VETERAN-OWNED business enterprise  contract
specialists at state agencies; and
  8.  Engage  in  other  actions  assigned to him or her by the governor
relating to diversity in hiring or promotion of the state workforce  and
in   encouraging   diversity   practices  and  compliance  with  article
[fifteen-a] FIFTEEN-A of this chapter in procurement.
  S 15. The article heading of article 4-A of the  economic  development
law,  as  added by chapter 55 of the laws of 1992, is amended to read as
follows:
  DIVISION OF MINORITY [AND], WOMEN'S AND VETERANS' BUSINESS DEVELOPMENT
  S 16. Section 115 of the economic development law, as added by chapter
55 of the laws of 1992, is amended to read as follows:
  S 115. Definitions. As used in this article, the following terms shall
have the following meanings:
  1. "Division" shall mean the division of minority [and],  women's  AND
VETERANS' business development created by this article.
  2. "Technical  assistance" shall mean assistance and services designed
to improve the efficiency, effectiveness and viability of a minority [or
women-owned], WOMEN OR VETERAN-OWNED business enterprise, including, but
not limited to, management assistance, problem solving, the  development
of  business  and  marketing plans, market analysis, financial planning,
regulatory compliance, safety and security measures, export  assistance,
procurement  assistance,  application  assistance, state program assist-
ance, referral to private  and  public  financing  sources,  contracting
assistance,  and  other forms of assistance which the commissioner deems
necessary and appropriate.
  S 17. Section 116 of the economic development law, as added by chapter
55 of the laws of 1992, is amended to read as follows:

A. 3056                            17

  S 116. Office of minority [and], women's AND VETERANS' business devel-
opment; transfer.  All the functions and powers possessed by and all the
obligations and duties of  the  governor's  office  of  minority  [and],
women's  AND  VETERANS'  business development office, created and estab-
lished  in  the  executive  law  [pursuant to and by chapter two hundred
sixty-one of the laws of  nineteen  hundred  eighty-eight],  are  hereby
transferred and assigned to, assumed by and devolved upon the department
of economic development.
  S 18. Section 117 of the economic development law, as added by chapter
55 of the laws of 1992, is amended to read as follows:
  S  117.  Division  of  minority  [and], women's AND VETERANS' business
development. There is hereby created within the department  of  economic
development  a  division of minority and [women-owned], WOMEN AND VETER-
AN-OWNED business development.  The director of such division  shall  be
appointed  by the governor, shall report directly to the commissioner on
the activities of the division, and shall hold office at the pleasure of
the commissioner. The commissioner may appoint such officers, employees,
agents, consultants and special committees as he or she may deem  neces-
sary  to  carry  out  the provisions of this article and prescribe their
duties.
  S 19. Section 118 of the economic development law, as added by chapter
55 of the laws of 1992 and subdivision 7 as further amended  by  section
15  of  part GG of chapter 63 of the laws of 2000, is amended to read as
follows:
  S 118. Power and duties. In addition to the power and duties conferred
by section one hundred sixteen of this article, the division shall  have
the additional power and duty to:
  1.  Coordinate  with all state agencies performing functions affecting
the operations of  minority  [business  enterprises,  and  women-owned],
WOMEN AND VETERAN-OWNED business enterprises, AND VETERAN-OWNED BUSINESS
ENTERPRISES as such terms are defined in section two hundred ten of this
chapter;
  2.  Receive  complaints  and  inquiries  of operators of minority [and
women-owned], WOMEN AND VETERAN-OWNED  business  enterprises  and  refer
them  to  the appropriate federal, state or local agency for appropriate
action on such complaints;
  3. Solicit recommendations from the operators of minority [and  women-
owned],  WOMEN  AND  VETERAN-OWNED  business  enterprises  for improving
existing state programs and refer such recommendations to the  governor,
the legislature and appropriate state agencies or authorities;
  4.  Advise and make recommendations to the commissioner and the legis-
lature on matters affecting the minority  [and  women-owned],  WOMEN  OR
VETERAN-OWNED  business enterprises of the state and promote and encour-
age the protection of the legitimate interests of minority  [and  women-
owned], WOMEN OR VETERAN-OWNED business enterprises within the state;
  5.  Conduct  investigations, research, studies and analyses of matters
affecting the interests of minority [and women-owned], WOMEN AND  VETER-
AN-OWNED business enterprises;
  6.  Study  the  implementation  of  the  laws  affecting minority [and
women-owned], WOMEN AND VETERAN-OWNED business enterprises and recommend
to the commissioner new laws and amendments of laws for the  benefit  of
minority  [and  women-owned],  WOMEN  AND  VETERAN-OWNED business enter-
prises; and review pending legislation affecting  minority  [and  women-
owned],  WOMEN  AND  VETERAN-OWNED  business  enterprises and report its
findings to the commissioner;

A. 3056                            18

  7. Provide technical  assistance  and  information  to  minority  [and
women-owned],  WOMEN AND VETERAN-OWNED business enterprises in the state
on economic development programs administered by the department, includ-
ing, but not limited to:   (a) the  empire  zones  program,  established
pursuant  to  article  eighteen-B  of the general municipal law, (b) the
industrial effectiveness program, established pursuant to article  seven
of  this  chapter, (c) the economic development skills training program,
established pursuant to article eight  of  this  chapter,  and  (d)  the
entrepreneurial assistance program, established pursuant to article nine
of this chapter;
  8.  Provide  technical  assistance  and  information  to minority [and
women-owned], WOMEN AND VETERAN-OWNED business enterprises in the  state
on economic development programs administered by agencies other than the
department,  including,  but not limited to programs administered by the
urban development corporation, the job  development  authority  and  the
science and technology foundation;
  9. Be responsible for conducting minority [and women-owned], WOMEN AND
VETERAN-OWNED business enterprise assistance programs and for coordinat-
ing  the  activities of all other state agencies acting within the scope
of this section; and
  10. Carry out the activities to implement  the  minority  [and  women-
owned], WOMEN AND VETERAN-OWNED business enterprise assistance programs,
to the extent practicable, within amounts appropriated therefor by;
  (a)  collecting  and  maintaining  information  identifying  certified
minority [and women-owned], WOMEN AND VETERAN-OWNED business enterprises
within New York state;
  (b) collecting, maintaining, and providing  information  to  potential
users  identifying  existing  contracting  and procurement opportunities
within and outside New York state;
  (c) maintaining, providing and marketing  a  compilation  of  existing
programs  providing assistance for minority [and women-owned], WOMEN AND
VETERAN-OWNED business enterprises;
  (d) identifying  special  needs  and  problems  facing  minority  [and
women-owned],  WOMEN  AND  VETERAN-OWNED business enterprises within New
York state;
  (e) contacting institutions, organizations and commercial  enterprises
that  are  potential  consumers of minority [and women-owned], WOMEN AND
VETERAN-OWNED business products  and  services;  urging  their  expanded
consumption of such goods and services;
  (f)  facilitating  the  establishment  of  minority [and women-owned],
WOMEN AND VETERAN-OWNED business enterprises; and
  (g) providing information concerning local and regional  opportunities
for  minority [and women-owned], WOMEN AND VETERAN-OWNED business enter-
prises.
  S 20. Subdivisions 1, 3 and 6 of section 120 of the economic  develop-
ment  law,  subdivision  1 as amended by chapter 361 of the laws of 2009
and subdivisions 3 and 6 as added by chapter 55 of the laws of 1992, are
amended to read as follows:
  1. There is hereby created in the division of minority [and],  women's
AND  VETERANS'  business development a minority [and women-owned], WOMEN
AND VETERAN-OWNED business enterprise advisory board.  The  board  shall
consist  of twelve members to be appointed by the governor. The governor
shall designate a chairperson from the members of the advisory board, to
serve as such at the pleasure of the governor. In appointing the members
of the advisory board the governor shall ensure that six of the  members
are individuals who are currently involved in the ownership and/or oper-

A. 3056                            19

ation  of  a  minority [or women-owned], WOMEN OR VETERAN-OWNED business
enterprise or who have extensive  experience  in  minority  [and  women-
owned],  WOMEN  AND  VETERAN-OWNED  business enterprise ownership and/or
operation,  and that at least two of the members are individuals repres-
enting banking, community development  financial,  insurance  or  surety
bonding institutions.
  3.  The  advisory board shall meet regularly at least one time in each
year. Special meetings may be called by its  chairperson  and  shall  be
called by the chairperson at the request of the director of the division
of minority [and], women's AND VETERANS' business development.
  6. The board shall have the power and duty to:
  (a)  advise the commissioner in carrying out the functions, powers and
duties of the division, as set forth in this article;
  (b)  advise  the  commissioner,  the  governor,  and  the  legislature
concerning  recommended  legislation necessary to foster and promote the
prosperity, expansion and development  of  minority  [and  women-owned],
WOMEN AND VETERAN-OWNED business enterprises within the state;
  (c)  advise  the  commissioner,  the  governor,  and  the  legislature
concerning existing laws, rules,  regulations  and  practices  of  state
agencies  which  are  counter-productive  or inimical to the prosperity,
expansion and development  of  minority  [and  women-owned],  WOMEN  AND
VETERAN-OWNED business enterprises within the state;
  (d)  advise  the  commissioner,  the  governor,  and  the  legislature
concerning the development of inter-governmental cooperation among agen-
cies of the federal, state and local governments and cooperation between
private industry and government so as to assure the optimum  development
of  minority  [and women-owned], WOMEN AND VETERAN-OWNED business enter-
prises; and
  (e) serve as a catalyst for creating and maintaining a  minority  [and
women-owned],  WOMEN AND VETERAN-OWNED business enterprise consciousness
in New York state.
  (f) establish procedures for making annual awards to be known as  "New
York  State Minority [and Women-Owned], WOMEN AND VETERAN-OWNED Business
Excelsior Awards". These non-monetary awards shall be given in  recogni-
tion  of  unusual  performance by persons, firms and organizations which
are engaged in the operation of a New York state  minority  [and  women-
owned], WOMEN AND VETERAN-OWNED business enterprise or which are engaged
in   activities   to   assist  minority  [and  women-owned],  WOMEN  AND
VETERAN-OWNED business enterprises in the state. The board may  nominate
up to five award winners annually and forward such names to the governor
for  consideration.  The governor may designate award winners from these
nominees. Current members of the advisory  board  are  not  eligible  as
nominees.
  S 21. Section 210 of the economic development law is amended by adding
a new subdivision 7 to read as follows:
  7.  "VETERAN-OWNED BUSINESS ENTERPRISE" SHALL MEAN ANY BUSINESS ENTER-
PRISE WHICH IS AT LEAST FIFTY-ONE PER CENTUM OWNED BY, OR IN THE CASE OF
A PUBLICLY OWNED BUSINESS AT LEAST FIFTY-ONE PER CENTUM OF THE STOCK  OF
WHICH  IS OWNED BY, CITIZENS OR PERMANENT RESIDENT ALIENS WHO ARE VETER-
ANS WHERE SUCH OWNERSHIP INTEREST IS REAL,  SUBSTANTIAL  AND  CONTINUING
AND  WHERE  SUCH PERSONS HAVE THE AUTHORITY TO INDEPENDENTLY CONTROL THE
DAY-TO-DAY BUSINESS DECISIONS OF THE ENTITY.
  S 22. Paragraph (h) of subdivision 6 of section 133  of  the  economic
development  law,  as  amended  by  chapter  491 of the laws of 2013, is
amended to read as follows:

A. 3056                            20

  (h) advise the commissioner on recommendations for the selection of  a
minority  [and women-owned], WOMEN AND VETERAN-OWNED business enterprise
statewide advocate as set forth by section three hundred eleven-a of the
executive law; and
  S 23. Subdivision 1 of section 231 of the economic development law, as
amended  by  chapter  352  of  the  laws  of 2009, is amended to read as
follows:
  1. The department, through its regional offices, is authorized: (a) to
serve  as  a  center  for  information  regarding  economic  development
resources  available  from  state,  federal  and  local agencies; (b) to
provide outreach to businesses, with attention to small and medium-sized
businesses,   including   minority   [and   women-owned],   WOMEN    AND
VETERAN-OWNED  business enterprises, for financial and technical assist-
ance offered by state economic  development  agencies,  authorities,  or
other  economic  entities;  (c)  to serve as a regional center to accept
applications for state economic development programs; (d) to  coordinate
the  economic  development programs and activities of state agencies and
authorities within each region including, but not limited  to,  outreach
to  businesses,  technical  assistance services, skills training assist-
ance, sharing of information, strategic economic development  plans  and
programs, to provide or arrange for assistance in compliance with feder-
al,  state,  and  local  rules,  regulations, permits, and licenses, and
other measures to enhance regional economic  development  and  eliminate
duplication  of  services;  (e)  to provide or arrange for assistance to
persons, firms, agencies, partnerships or corporations, either public or
private, in applying for  assistance  from  state  economic  development
programs or for necessary licenses and permits or seeking to comply with
federal,  state  and  local  rules  and  regulations;  (f) to review and
comment, within their knowledge and expertise, with respect to  applica-
tions for state assistance in a timely manner and form prescribed by the
commissioner;  (g)  to  distribute  literature  and  marketing  material
describing the facilities, advantages and attractions of the region  for
business;  (h)  to  provide  economic  development information, planning
services and technical assistance to counties and municipalities  within
the  region;  (i)  to  provide information and assistance in the certif-
ication of minority [and women-owned], WOMEN AND VETERAN-OWNED  business
enterprises;  (j) to provide or arrange for assistance to private sector
employers, whether operating for profit or not for profit, and to organ-
izations and associations of such employers in developing and implement-
ing innovative and flexible employee compensation, assistance and  bene-
fit  programs  to  enhance competitiveness and meet emerging demographic
and market conditions; and (k) to provide information and assistance  to
small businesses on environmental compliance requirements of federal and
state law and pollution prevention opportunities in furtherance of poli-
cies  and  programs  established in article twenty-eight of the environ-
mental  conservation  law  and  in  coordination  with   the   pollution
prevention and environmental compliance coordinating council established
in article twenty-eight of the environmental conservation law, including
programs  operated  by  the  department, the department of environmental
conservation or other state  or  local  agencies  from  which  technical
assistance,  or  loans, grants or other financial assistance for compli-
ance and pollution prevention may be obtained;  and  in  providing  such
information and assistance, to promote pollution prevention approaches.
  S  24.  Paragraph  (i)  of  subdivision 3 of section 22-c of the state
finance law, as amended by section 1 of part O of chapter 59 of the laws
of 2009, is amended to read as follows:

A. 3056                            21

  (i) An explanation of any actions proposed  to  be  taken  to  achieve
increased opportunity for meaningful participation in the performance of
state  contracts  by minority [and women-owned], WOMEN AND VETERAN-OWNED
business enterprises in accordance with article fifteen-A of the  execu-
tive law, including a compliance report to be submitted by July first of
each year commencing with the two thousand five--two thousand six fiscal
year  and  for  each  subsequent  year thereafter that includes: all the
items of information required in accordance with regulations promulgated
by the director of the division of minority [and], women's AND VETERANS'
business development in the department  of  economic  development  under
article  fifteen-A  of  the  executive  law;  goals for participation by
certified minority [or women-owned],  WOMEN  OR  VETERAN-OWNED  business
enterprises  for  such  fiscal  year;  and a description of the types of
expenditures, projects or contracts.
  S 25. Paragraphs c and d of subdivision 2 of section 5  of  the  state
finance law, as added by chapter 171 of the laws of 2010, are amended to
read as follows:
  c.  Within  the  discretion  of the deferred compensation board and in
accordance with and subject to its fiduciary duty and obligations to the
deferred compensation plan for state employees and to  the  members  and
beneficiaries  of such plan and such other investment limitations as may
be prescribed by  this  chapter,  the  deferred  compensation  board  is
authorized  to  establish an [MWBE] MWVBE asset management and financial
institution strategy  including  reasonable  goals  for  utilization  of
[MWBE]  MWVBE  asset  managers,  [MWBE] MWVBE financial institutions and
[MWBE] MWVBE professional service firms, which shall include, but  shall
not be limited to, the following objectives:
  (i) conducting procurement procedures in a manner that will assure the
inclusion  of [MWBE] MWVBE asset managers in any request for proposal or
search process for asset management services  undertaken  in  accordance
with the rules and regulations and of the board;
  (ii)  subject to best execution policies, developing a strategy to (1)
conduct trades of public equity securities with [MWBE]  MWVBE  financial
institutions  and  (2) conduct trades of fixed-income securities through
[MWBE] MWVBE financial institutions;
  (iii) conducting procurement procedures in a manner that  will  assure
the  inclusion  of  [MWBE] MWVBE financial institutions and other [MWBE]
MWVBE professional service  firms  in  procurements  for  services  that
include  accounting,  banking,  financial  advisory,  insurance,  legal,
research, valuation and other financial and professional  services  that
are  undertaken  in  accordance  with  the  rules and regulations of the
board;
  (iv) cooperating with other fiduciary controlled  entities  and  state
agencies  and  offices  to  identify [MWBE] MWVBE asset managers, [MWBE]
MWVBE financial  institutions  and  [MWBE]  MWVBE  professional  service
firms.
  As  used  in  this  section,  the  terms "[MWBE] MWVBE asset manager",
"[MWBE] MWVBE financial institutions", "[MWBE] MWVBE",  "fiduciary-cont-
rolled  entities" and "best execution" shall have the meanings specified
in section one hundred seventy-six of the retirement and social security
law.
  d. The board is also authorized to:
  (i) periodically provide notice of the existence of such  strategy  so
that  [MWBE]  MWVBE  asset managers, [MWBE] MWVBE financial institutions
and other [MWBE] MWVBE professional service firms are made aware of  the
opportunities made available pursuant to this strategy;

A. 3056                            22

  (ii)  within  sixty  days of the end of each fiscal year following the
effective date of this paragraph, the board shall report to  the  gover-
nor,  legislature  and  the  chief diversity officer of the state of New
York on the participation of [MWBE] MWVBE asset managers,  [MWBE]  MWVBE
financial  institutions  and [MWBE] MWVBE professional service providers
in investment  and  brokerage  transactions  with  or  as  providers  of
services  for  the  deferred compensation plans, including a comparative
analysis of such activity relative  to  such  activity  with  all  asset
managers,  financial institutions and professional service providers for
the relevant period and on the progress and the success of  the  efforts
undertaken  during  such  period  to achieve the goals of such strategy.
Each report shall be simultaneously published  on  the  website  of  the
deferred  compensation  plans for not less than sixty days following its
release to the governor and the other recipients named above;
  (iii) work with the other fiduciary-controlled entities  to  create  a
database of such [MWBE] MWVBE entities; and
  (iv)  periodically,  but  not less than annually, hold a conference to
promote such strategy in conjunction with the other fiduciary-controlled
entities.
  S 26. Subdivisions 4, 6 and 7 of section 176  of  the  retirement  and
social  security  law,  as added by chapter 171 of the laws of 2010, are
amended to read as follows:
  4. The term "[MWBE] MWVBE asset manager" shall mean an  asset  manager
in  any  of  the  following asset classes: public equity or fixed income
securities, hedge funds, fund of hedge funds, private equity  (including
venture  capital),  fund of private equity funds, real estate investment
funds, fund of real estate funds, or any other asset class for which  an
applicable  fiduciary-controlled  entity engages external asset managers
that is (a) a [MWBE] MWVBE; and (b) a registered investment  advisor  or
exempt  from  such  registration  and  (c)  certified  pursuant  to  the
provisions of subdivision three of section four  hundred  twenty-three-c
of this chapter.
  6.  The  term  "[MWBE]  MWVBE" for the purpose of engaging in business
with the fiduciary-controlled entities covered by this section, means  a
business  enterprise,  including  without limitation, a sole proprietor-
ship, partnership, limited partnership, limited  liability  partnership,
limited  liability  company, corporation or other similar entity whether
domestic or foreign, that is:
  (a)(i) at least fifty-one percent owned by (A) one  or  more  minority
group  members, or (B) one or more women, OR (C) ONE OR MORE VETERANS in
each case, who have significant experience in asset management,  broker-
age,  other  financial services or related professional services such as
accounting, valuation or legal services,  or  (ii)  substantially  owned
and/or  operated  by  women, VETERANS or minority group members who have
significant experience in asset management, brokerage,  other  financial
services  or related professional services such as accounting, valuation
or legal services;
  (b) an enterprise in which such minority [or], women OR VETERAN owner-
ship or operation is real, substantial and continuing;
  (c) an enterprise in which such minority [or], women OR VETERAN owner-
ship or operation has and exercises the authority to  control  independ-
ently the day-to-day business decisions of the enterprise;
  (d) an enterprise authorized to do business in this state; and
  (e)  an  enterprise  certified  by  the  state comptroller pursuant to
section four hundred twenty-three-c of this chapter.

A. 3056                            23

  7. The term "[MWBE] MWVBE financial institution" shall mean (a) as  it
relates  to  brokerage  services,  a registered broker dealer that is an
[MWBE] MWVBE certified pursuant to the provisions of  subdivision  three
of  section  four  hundred  twenty-three-c of this chapter and (b) as it
relates  to  any  other  financial  services,  an [MWBE] MWVBE certified
pursuant to the provisions of subdivision three of section four  hundred
twenty-three-c  of  this  chapter that provides banking, financial advi-
sory,  insurance,  financial  research,  valuation  or  other  financial
services.
  S  27.  Section  423-c  of  the retirement and social security law, as
added by chapter 171 of the laws of 2010, is amended to read as follows:
  S 423-c. [MWBE] MWVBE asset management and financial institution stra-
tegy. 1.  Within the discretion of the state comptroller and in  accord-
ance  with and subject to his or her fiduciary duties and obligations as
trustee of the common retirement fund and to the members,  retirees  and
beneficiaries  of such fund and such other investment limitations as may
be prescribed by this chapter, the comptroller is authorized  to  estab-
lish an [MWBE] MWVBE asset management and financial institution strategy
including  reasonable goals for utilization of [MWBE] MWVBE asset manag-
ers, [MWBE] MWVBE financial institutions and [MWBE] MWVBE financial  and
professional  service firms, which strategy shall include, but shall not
be limited to, the following objectives:
  (a) investing assets of the common retirement fund with  [MWBE]  MWVBE
asset managers;
  (b)  subject to best execution: (i) conducting trades of public equity
securities with [MWBE] MWVBE financial institutions; and (ii) conducting
trades of fixed-income securities through [MWBE] MWVBE financial  insti-
tutions;
  (c)  allocating  investments  of  assets of the common retirement fund
either through: (i) direct investments in the equities and debt  securi-
ties  of  [MWBEs]  MWVBES;  or  (ii) indirectly through special programs
involving [MWBE] MWVBE asset managers; and
  (d) awarding contracts for accounting,  banking,  financial  advisory,
insurance,  legal,  research,  valuation and other financial and profes-
sional services to [MWBE] MWVBE financial institutions and other  [MWBE]
MWVBE professional service firms.
  2.  The  comptroller is also authorized to: (a) periodically advertise
the existence of the strategy established in this section so that [MWBE]
MWVBE asset managers, [MWBE]  MWVBE  financial  institutions  and  other
[MWBE]  MWVBE  professional service firms are made aware of the opportu-
nities made available pursuant to such strategy;
  (b) within sixty days of the end of each  fiscal  year  following  the
effective  date  of  this section, the state comptroller shall report to
the governor, legislature and the chief diversity officer of  the  state
of  New York on the participation of [MWBE] MWVBE asset managers, [MWBE]
MWVBE financial  institutions  and  [MWBE]  MWVBE  professional  service
providers  in investment and brokerage transactions with or as providers
of services for the common  retirement  fund,  including  a  comparative
analysis  of  such  activity  relative  to  such activity with all asset
managers, financial institutions and professional service providers  for
the  relevant  period  and  on  the  progress and success of the efforts
undertaken during such period to achieve the  goals  of  such  strategy.
Each  report  shall  be  simultaneously  published on the website of the
common retirement fund for  not  less  than  sixty  days  following  its
release to the governor and the other recipients named above;

A. 3056                            24

  (c)  work  with  the  other  fiduciary-controlled entities to create a
database of such [MWBE] MWVBE entities; and
  (d)  periodically,  but  not  less than annually, hold a conference to
promote such strategy in conjunction with the other fiduciary-controlled
entities.
  3. (a) The state comptroller shall establish and adopt a certification
process and guidelines  for  the  sole  purpose  of  identification  and
reporting  on  [MWBE] MWVBE firms providing asset management, brokerage,
or other financial or professional services as such term is  defined  in
subdivision six of section one hundred seventy-six of this chapter. Such
certification  shall  differentiate  and  the comptroller shall maintain
separate categories for [MWBE] MWVBE asset managers meeting the criteria
of subparagraph (i) of paragraph (a) of subdivision six of  section  one
hundred  seventy-six  of  this  chapter  and [MWBE] MWVBE asset managers
meeting the criteria of subparagraph  (ii)  of  paragraph  (a)  of  such
subdivision.
  (b)  Such certification process shall include, but need not be limited
to, a request for the following information relating  to  each  managing
principal,  principal,  operating  principal,  chief  financial officer,
operating vice-president, vice-president, partner,  owner  and  employee
associated with a prospective [MWBE] MWVBE entity:
  (i) title;
  (ii) position;
  (iii) ownership percentage;
  (iv) ethnicity;
  (v) gender; and
  (vi) length of service.
  S 28. Section 147 of the state finance law, as added by chapter 360 of
the laws of 2009, is amended to read as follows:
  S  147.  Mentor-protege  program. 1. In every state agency, department
and authority which has let more than ten million dollars in service and
construction contracts in the prior fiscal  year,  the  chief  executive
officer  of that agency, department or authority shall develop a mentor-
protege program  to  foster  long-term  relationships  between  approved
mentor   firms,   and   small   business   concerns  and  minority  [and
women-owned], WOMEN AND VETERAN-OWNED businesses certified  pursuant  to
article fifteen-A of the executive law, in order to enhance the capabil-
ities  of  small and minority [and women-owned], WOMEN AND VETERAN-OWNED
business concerns, improve their success in contracting with  the  state
or  receiving subcontracts under a state contract, and to create sources
of reliable contractors and subcontractors ready to perform larger  jobs
and  responsibilities.   Participation in the program shall be voluntary
for both the mentor firm and the protege firm.
  2. The chief executive officer of each agency, department or  authori-
ty,  in  consultation  with  the division of minority [and], women's AND
VETERANS' business development and the division for small-business shall
develop requirements for:
  (a) approval of contractors participating in the  program  established
pursuant  to  subdivision  one  of  this  section,  to be known, for the
purposes of such program, as "mentor firms". Mentor  firms  must  demon-
strate commitment and ability to assist protege firms, including favora-
ble financial health, good character, and experience in contracting with
the  state.  Once  approved, a mentor firm must annually certify that it
continues to possess good character and a favorable financial  position.
Incentives  for  mentor firms to participate in the program may include:
(i) where contracts are awarded by  best  value,  additional  evaluation

A. 3056                            25

points  as specified in the request for proposal; and (ii) where protege
firms are certified minority [and women-owned], WOMEN AND  VETERAN-OWNED
businesses,  credit  towards  fulfillment of minority [and women-owned],
WOMEN  AND  VETERAN-OWNED business participation requirements, including
without limitation additional credit  towards  fulfillment  of  minority
[and  women-owned],  WOMEN  AND  VETERAN-OWNED  business  subcontracting
participation goals based on costs incurred by a mentor firm in  provid-
ing  assistance  to  a  certified  minority [and women-owned], WOMEN AND
VETERAN-OWNED business protege firm.
  (b) approval for small and certified minority [and women-owned], WOMEN
AND VETERAN-OWNED  business  concerns  receiving  assistance  under  the
program  established  pursuant to subdivision one of this section, to be
known, for the purposes of such program, as "protege firms".  A  protege
firm  may  have  only  one  mentor  at a time and may participate in the
mentor-protege program for a maximum of five years.
  (c) a process by which each mentor firm, before  providing  assistance
to  a  protege firm under the program, shall enter into a mentor-protege
agreement regarding the assistance to be provided by  the  mentor  firm,
for a period as determined by the chief executive officer of the agency,
department  or  authority. A mentor firm may provide a protege firm with
assistance  and  training  in  general  business  management;  financial
management,  engineering,  safety and technical matters; bonding assist-
ance or bonding  waivers;  subcontracts;  rent-free  use  of  facilities
and/or  equipment;  joint venture arrangements; and any other assistance
as determined by the chief executive officer of the  agency,  department
or  authority.  Mentor-protege agreements shall be approved by the chief
executive officer of the agency,  department  or  authority,  and  shall
provide  that  either party may terminate the agreement with thirty days
advance notice and notice to the chief executive  officer.  No  determi-
nation of affiliation or control may be found between a protege firm and
its  mentor firm based on the mentor-protege agreement or any assistance
provided pursuant to such agreement.
  S 29. Subdivision 7 of section 2777 of the public authorities law,  as
added by chapter 686 of the laws of 1993, is amended to read as follows:
  7.  It  is  hereby found and declared that it has been and remains the
policy of the state of New York to promote equal opportunity in  employ-
ment  for all persons, without discrimination on account of race, creed,
color, national origin, sex,  age,  disability  or  marital  status,  to
promote  equality  of  economic  opportunity  for minority group members
[and], women AND VETERANS, and business enterprises owned by  them,  and
to  eradicate  the  effects  of  private and governmental discrimination
which has erected and continues to maintain barriers  that  unreasonably
impair  access  by  minority  [and women-owned], WOMEN AND VETERAN-OWNED
business enterprises to state contract opportunities.
  Recent reviews and analyses of contracting in New York, including  the
study  by the division of minority [and], women's AND VETERANS' business
development of the department of economic development entitled "Opportu-
nity Denied! A Study of Racial  and  Sexual  Discrimination  Related  to
Government  Contracting  in  New  York  State,"  confirm  through direct
evidence of racial and sexual discrimination in and by  New  York  state
sufficient  to  justify race and sex conscious remedies. For the purpose
of furthering the state's compelling interest in eradicating the effects
of racial and sexual discrimination therefore, it is necessary and prop-
er that article fifteen-A of the executive law, concerning participation
by minority group members [and], women AND VETERANS and business  enter-

A. 3056                            26

prises  owned by them, shall apply to the Albany county airport authori-
ty.
  S  30.  Subdivisions 3 and 6 of section 2879 of the public authorities
law, subdivision 3 as amended by chapter 564 of the laws of 1988,  para-
graph (b) of subdivision 3 as amended by chapter 45 of the laws of 1994,
subparagraph  (iv) of paragraph (b) of subdivision 3 as amended by chap-
ter 383 of the laws of 1994, paragraph (m) of subdivision 3 as added  by
chapter  862  of  the  laws  of  1990, paragraph (n) of subdivision 3 as
amended by chapter 531 of the laws of 1993, paragraphs (o)  and  (p)  of
subdivision  3 as added by chapter 844 of the laws of 1992, subparagraph
(i) of paragraph (b) of subdivision 3  and  subdivision  6  as  amended,
paragraphs  (f),  (g),  (h),  (i)  and (j) of subdivision 3 as added and
paragraphs (k), (l), (m), (n), (o) and (p) of subdivision  3  as  relet-
tered  by  chapter  174  of  the  laws  of  2010, are amended to read as
follows:
  3. The guidelines approved by the corporation shall include,  but  not
be limited to the following:
  (a) A description of the types of goods purchased, and for procurement
contracts  for  services, a description of those areas of responsibility
and oversight requiring the use of personal services and the reasons for
the use of personal services in such areas.
  (b) Requirements regarding the selection of contractors,  which  shall
include provisions:
  (i)  for the selection of such contractors on a competitive basis, and
provisions relating to the circumstances under which the  board  may  by
resolution  waive  competition,  including,  notwithstanding  any  other
provision of  law  requiring  competition,  the  purchase  of  goods  or
services from small business concerns or those certified as minority [or
women-owned],  WOMEN  OR VETERAN-OWNED business enterprises, or goods or
technology that are recycled or remanufactured,  in  an  amount  not  to
exceed  two  hundred thousand dollars without a formal competitive proc-
ess;
  (ii) describing when the award of procurement contracts shall  require
approval  of the board by resolution, provided that any contract involv-
ing services to be rendered over a period in excess of  one  year  shall
require  the approval of the board by resolution and an annual review of
the contract by the board;
  (iii) setting forth responsibilities of contractors;
  (iv) as used in this subparagraph, the term "professional firm"  shall
be defined as any individual or sole proprietorship, partnership, corpo-
ration,  association, or other legal entity permitted by law to practice
the professions of architecture, engineering or surveying.
  The corporation shall not refuse to negotiate with a professional firm
solely because the ratio of the "allowable  indirect  costs"  to  direct
labor  costs  of  the  professional firm or the hourly labor rate in any
labor category of the professional firm exceeds a  limitation  generally
set by the corporation in the determination of the reasonableness of the
estimated  cost of services to be rendered by the professional firm, but
rather the corporation should also consider the reasonableness  of  cost
based  on  the  total  estimated cost of the service of the professional
firm which should include, among other  things,  all  the  direct  labor
costs  of  the  professional  firm for such services plus all "allowable
indirect costs," other  direct  costs,  and  negotiated  profit  of  the
professional firm. "Allowable indirect costs" of a professional firm are
defined  as  those costs generally associated with overhead which cannot
be specifically identified with a single project  or  contract  and  are

A. 3056                            27

considered  reasonable  and  allowable  under specific state contract or
allowability limits.
  (c)  An  identification of those areas or types of contracts for which
minority [or women-owned], WOMEN OR VETERAN-OWNED  business  enterprises
may  best  bid  so as to promote and assist participation by such enter-
prises and facilitate a fair share of the awarding of contracts to  such
enterprises.  For  the  purposes  of  this  section, a minority business
enterprise means any business enterprise, including a  sole  proprietor-
ship, partnership or corporation that is:
  (i)  at  least  fifty-one  percent owned by one or more minority group
members or in the case of a publicly-owned business at  least  fifty-one
percent  of the common stock or other voting interests of which is owned
by one or more minority group members;
  (ii) an enterprise in which the minority ownership is  real,  substan-
tial and continuing;
  (iii)  an enterprise in which the minority ownership has and exercises
the authority to control independently the day-to-day business decisions
of the enterprise; and
  (iv) an enterprise authorized to do business in New York state,  inde-
pendently owned and operated, and not dominant in its field.
  (d)  For the purposes of this section, a minority group member means a
United States citizen or permanent resident alien who is and can  demon-
strate membership in one of the following groups:
  (i)  Black  persons  having origins in any of the Black African racial
groups not of Hispanic origin;
  (ii) Hispanic persons of  Mexican,  Puerto  Rican,  Dominican,  Cuban,
Central  or  South American of either Indian or Hispanic origin, regard-
less of race;
  (iii) Asian and Pacific Islander persons having origins in any of  the
Far  East,  Southeast  Asia,  the  Indian  sub-continent  or the Pacific
Islands; or
  (iv) Native American persons having origins in  any  of  the  original
peoples of North America.
  (e)  For  the  purposes of this section, a women-owned business enter-
prise means a business  enterprise,  including  a  sole  proprietorship,
partnership or corporation which is:
  (i)  at  least  fifty-one  percent  owned by one or more United States
citizens or permanent resident aliens who are women or in the case of  a
publicly-owned  business  at least fifty-one percent of the common stock
or other voting interests of which is owned by United States citizens or
permanent resident aliens who are women;
  (ii) an enterprise in which the ownership interest of women  is  real,
substantial and continuing;
  (iii) an enterprise in which the women ownership has and exercises the
authority  to control independently the day-to-day business decisions of
the enterprise; and
  (iv) an enterprise authorized to do business in New York state,  inde-
pendently owned and operated, and not dominant in its field.
  (E-1)  FOR  THE  PURPOSES  OF  THIS  SECTION, A VETERAN-OWNED BUSINESS
ENTERPRISE MEANS A BUSINESS ENTERPRISE, INCLUDING A SOLE PROPRIETORSHIP,
PARTNERSHIP OR CORPORATION WHICH IS:
  (I) AT LEAST FIFTY-ONE PERCENT OWNED BY  ONE  OR  MORE  UNITED  STATES
CITIZENS OR PERMANENT RESIDENT ALIENS WHO ARE VETERANS OR IN THE CASE OF
A PUBLICLY-OWNED BUSINESS AT LEAST FIFTY-ONE PERCENT OF THE COMMON STOCK
OR OTHER VOTING INTERESTS OF WHICH IS OWNED BY UNITED STATES CITIZENS OR
PERMANENT RESIDENT ALIENS WHO ARE VETERANS;

A. 3056                            28

  (II)  AN  ENTERPRISE  IN  WHICH  THE OWNERSHIP INTEREST OF VETERANS IS
REAL, SUBSTANTIAL AND CONTINUING;
  (III)  AN  ENTERPRISE IN WHICH THE VETERAN OWNERSHIP HAS AND EXERCISES
THE AUTHORITY TO CONTROL INDEPENDENTLY THE DAY-TO-DAY BUSINESS DECISIONS
OF THE ENTERPRISE; AND
  (IV) AN ENTERPRISE AUTHORIZED TO DO BUSINESS IN NEW YORK STATE,  INDE-
PENDENTLY OWNED AND OPERATED, AND NOT DOMINANT IN ITS FIELD.
  (f)  Requirements  for  the designation of one or more senior staff of
the corporation to oversee the  corporation's  programs  established  to
promote  and  assist: (i) participation by certified minority [or women-
owned], WOMEN OR VETERAN-OWNED business enterprises in the corporation's
procurement opportunities and facilitation of the award  of  procurement
contracts to such enterprises; (ii) the utilization of certified minori-
ty  [and  women-owned],  WOMEN AND VETERAN-OWNED business enterprises as
subcontractors and suppliers by entities  having  procurement  contracts
with  the  corporation; and (iii) the utilization of partnerships, joint
ventures or other similar arrangements between certified  minority  [and
women-owned],  WOMEN  AND  VETERAN-OWNED  business enterprises and other
entities having procurement contracts with the corporation.  Such  staff
shall  be  familiar  with  the procurement of the types of construction,
financial, legal or professional services utilized by  the  corporation,
report  directly  to  the corporation's executive director, president or
chief executive officer and either directly or through  their  designees
participate in the procurement process.
  (g) Requirements for providing notice, in addition to any other notice
of  procurement opportunities required by law, to professional and other
organizations that serve minority [and women-owned], WOMEN AND  VETERAN-
OWNED  business  enterprises providing the types of services procured by
the corporation.
  (h) Procedures for maintaining lists of qualified  certified  minority
[and women-owned], WOMEN AND VETERAN-OWNED business enterprises, includ-
ing professional firms that have expressed an interest in doing business
with the corporation and ensuring that such lists are updated regularly.
The  corporation shall also consult the lists of certified minority [and
women-owned], WOMEN AND VETERAN-OWNED business enterprises maintained by
the department of economic development pursuant to article fifteen-A  of
the executive law.
  (i) The establishment of appropriate goals for participation by minor-
ity  [or  women-owned],  WOMEN  OR VETERAN-OWNED business enterprises in
procurement contracts awarded by the corporation and for the utilization
of minority [and women-owned], WOMEN  OR  VETERAN-OWNED  enterprises  as
subcontractors  and  suppliers  by entities having procurement contracts
with the corporation. Statewide  numerical  participation  target  goals
shall  be established by each authority based on the findings of the two
thousand ten disparity study AND THEREAFTER  THE  TWO  THOUSAND  SIXTEEN
DISPARITY STUDY.
  (j)  Requirements to conduct procurements in a manner that will enable
the corporation to achieve the maximum feasible  portion  of  the  goals
established pursuant to paragraph (i) of this subdivision and that elim-
inates  barriers  to  participation by minority [and women-owned], WOMEN
AND VETERAN-OWNED business enterprises  in  the  corporation's  procure-
ments. Such procurement requirements shall include the following:
  (A)  Measures and procedures to ensure that certified businesses shall
be given the opportunity  for  maximum  feasible  participation  in  the
performance  of state contracts and to assist in the corporation's iden-
tification of those state contracts for which certified  businesses  may

A. 3056                            29

best  bid to actively and affirmatively promote and assist their partic-
ipation in the performance of state contracts so as  to  facilitate  the
corporation's  achievement  of the maximum feasible portion of the goals
for state contracts to such businesses;
  (B) Provisions designating the division of minority [and women-owned],
WOMEN  AND  VETERAN-OWNED  business development to certify and decertify
minority [and women-owned], WOMEN AND VETERAN-OWNED business enterprises
for all corporations through a  single  process  that  meets  applicable
state and federal requirements;
  (C)  A requirement that each contract solicitation document accompany-
ing each solicitation set forth the expected  degree  of  minority  [and
women-owned],  WOMEN AND VETERAN-OWNED business enterprise participation
based, in part, on:
  I. the potential subcontract  opportunities  available  in  the  prime
procurement contract; and
  II.  the  availability  of certified minority [and women-owned], WOMEN
AND VETERAN-OWNED business enterprises to respond competitively  to  the
potential subcontract opportunities;
  (D)  A  requirement  that  each  corporation provide a current list of
certified minority business enterprises to each prospective contractor;
  (E) Provisions relating to joint ventures, under which  a  bidder  may
count  toward  meeting  its  minority  business enterprise participation
goal, the minority [and women-owned], WOMEN AND  VETERAN-OWNED  business
enterprise portion of the joint venture;
  (F)  Provisions  under  which the corporation may waive obligations of
the contractor relating to minority [and women-owned], WOMEN AND  VETER-
AN-OWNED business enterprise participation after a showing of good faith
efforts  to  comply  with  the  requirements of this act pursuant to the
waiver provisions contained in subdivision six of section three  hundred
thirteen of the executive law;
  (G)  A  requirement  that  the  corporation  verify that minority [and
women-owned], WOMEN AND VETERAN-OWNED business enterprises listed  in  a
successful  bid  are  actually participating to the extent listed in the
project for which the bid was submitted;
  (H) In the implementation of this section, the contracting corporation
shall:
  I. consider,  where  practicable,  the  severability  of  construction
projects and other bundled contracts;
  II.  implement  a program that will enable the corporation to evaluate
each contract to determine the appropriateness of the goal  pursuant  to
paragraph (i) of this subdivision;
  III.  consider  compliance  with  the  requirements of any federal law
concerning opportunities  for  minority  [and  women-owned],  WOMEN  AND
VETERAN-OWNED business enterprises which effectuates the purpose of this
section; and
  IV.  consult  the  most  recent  disparity  study  pursuant to article
fifteen-A of the executive law.
  (k) A listing of the types of provisions to be contained  in  procure-
ment  contracts, including provisions concerning the nature and monitor-
ing of the work to be performed,  the  use  of  corporate  supplies  and
facilities, the use of corporate personnel and any other provisions.
  (l)  Provisions  regarding  procurement contracts which involve former
officers or employees of the corporation.
  (m) Procedures regarding procurement contracts which are  exempt  from
the  publication requirements of article four-C of the economic develop-
ment law.

A. 3056                            30

  (n) Policies to promote the participation by New York  state  business
enterprises  and  New  York  state  residents  in procurement contracts,
including, but not limited to:
  (i)  providing for the corporation to collect and to consult the spec-
ifications of New York state business enterprises in developing specifi-
cations for any procurement contract for the  purchase  of  goods  where
possible, practicable, feasible and consistent with open bidding, except
for  procurement  contracts for which the corporation would be expending
funds received from another state. The corporation shall,  where  feasi-
ble,  make  use  of  the  stock item specification forms prepared by the
commissioner of general services, and where necessary, consult with  the
commissioner of the office of general services, in developing such spec-
ifications and make such determinations; and
  (ii)  with  the  cooperation of the department of economic development
and through cooperative efforts  with  contractors,  providing  for  the
notification  of New York state business enterprises of opportunities to
participate as subcontractors and suppliers on procurement contracts let
by the corporation in an amount estimated to be equal to or greater than
one million  dollars  and  promulgating  procedures  which  will  assure
compliance  by  contractors  with  such  notification.  Once awarded the
contract such contractors shall document their efforts to encourage  the
participation  of  New  York state business enterprises as suppliers and
subcontractors on procurement contracts equal to  or  greater  than  one
million  dollars.  Documented  efforts  by a successful contractor shall
consist of and be limited to showing that such contractor has (a) solic-
ited bids, in a timely and adequate manner, from New York state business
enterprises including certified minority [and  women-owned],  WOMEN  AND
VETERAN-OWNED  business,  or (b) contacted the New York state department
of economic development to obtain listings of New  York  state  business
enterprises,  or  (c) placed notices for subcontractors and suppliers in
newspapers, journals and other trade  publications  distributed  in  New
York  state,  or (d) participated in bidder outreach conferences. If the
contractor determines that New York state business enterprises  are  not
available to participate on the contract as subcontractors or suppliers,
the  contractor shall provide a statement indicating the method by which
such determination was made. If the contractor does not  intend  to  use
subcontractors on the contract, the contractor shall provide a statement
verifying such intent; and
  (iii) except for procurement contracts for which the corporation would
be  expending  funds  received from another state, the corporation shall
include in all bid documents provided to potential bidders  a  statement
that  information  concerning the availability of New York state subcon-
tractors and suppliers is available from the New York  state  department
of  economic development, which shall include the directory of certified
minority [and women-owned], WOMEN AND VETERAN-OWNED businesses,  and  it
is  the  policy of New York state to encourage the use of New York state
subcontractors and suppliers, and to promote the participation of minor-
ity [and women-owned], WOMEN AND VETERAN-OWNED businesses  where  possi-
ble, in the procurement of goods and services; and
  (iv)  with  the  cooperation of the community services division of the
department of labor and through cooperative  efforts  with  contractors,
providing for the notification of New York state residents of employment
opportunities arising in New York state out of procurement contracts let
by the corporation in an amount estimated to be equal to or greater than
one  million  dollars;  and  promulgating  procedures  which will assure
compliance by contractors with such notification by  requiring  contrac-

A. 3056                            31

tors  to  submit post-award compliance reports documenting their efforts
to provide such notification through listing any such positions with the
community services division, or providing for such notification in  such
manner as is consistent with existing collective bargaining contracts or
agreements; and
  (v)  including in each set of documents soliciting bids on procurement
contracts to let by the  corporation  a  statement  notifying  potential
bidders  located in foreign countries that the corporation may assign or
otherwise transfer offset credits created by such  procurement  contract
to third parties located in New York state; providing for the assignment
or  other form of transfer of offset credits created by such procurement
contracts, directly or indirectly, to third parties located in New  York
state,  in accordance with the written directions of the commissioner of
economic development; and providing for  the  corporation  to  otherwise
cooperate  with the department of economic development in efforts to get
foreign countries to recognize offset credits assigned or transferred to
third parties located in New York  state  created  by  such  procurement
contracts; and
  (vi)  promulgating  procedures  which  will assure compliance with the
federal equal employment opportunity  act  of  1972  (P.L.  92-261),  as
amended, by contractors of the corporation.
  (o)  For  the  purposes  of  this  section, a "New York state business
enterprise" means a business enterprise, including  a  sole  proprietor-
ship,  partnership,  or  corporation,  which offers for sale or lease or
other form of exchange, goods which are sought by  the  corporation  and
which  are substantially manufactured, produced or assembled in New York
state, or services which are sought by the  corporation  and  which  are
substantially performed within New York state.
  (p)  For  the  purposes of this section, a "New York resident" means a
natural person who maintains  a  fixed,  permanent  and  principal  home
located  within New York state and to which such person, whenever tempo-
rarily located, always intends to return.
  6. Each corporation, as part of the guidelines established pursuant to
subdivision three of this section, shall  establish  policies  regarding
the  preparation  of publicly available reports on procurement contracts
entered into by such corporation. Such policies shall  provide,  at  the
minimum, for the preparation of a report no less frequently than annual-
ly,  summarizing procurement activity by such corporation for the period
of the report, including a listing of all procurement contracts  entered
into,  all  contracts  entered  into with New York state business enter-
prises and the subject matter and value thereof, all  contracts  entered
into  with  certified  minority [or women-owned], WOMEN OR VETERAN-OWNED
business enterprises and the  subject  matter  and  value  thereof,  all
referrals  made  and  all  penalties  imposed  pursuant to section three
hundred sixteen of the executive law, all contracts  entered  into  with
foreign  business enterprises, and the subject matter and value thereof,
the selection process used to select such contractors,  all  procurement
contracts which were exempt from the publication requirements of article
four-C of the economic development law, the basis for any such exemption
and the status of existing procurement contracts.
  S  31.  Section  6-129  of  the administrative code of the city of New
York, as amended by local law number 1 of the city of New York  for  the
year 2013, is amended to read as follows:
  S 6-129. Participation by minority-owned [and], women-owned AND VETER-
AN-OWNED  business enterprises and emerging business enterprises in city
procurement.

A. 3056                            32

  a. Programs established. There are hereby established a program, to be
administered by the department of small business services in  accordance
with  the  provisions of this section, designed to enhance participation
by minority-owned [and], women-owned AND VETERAN-OWNED  business  enter-
prises  in  city  procurement  and a program, also to be administered by
such department in accordance  with  the  provisions  of  this  section,
designed  to  enhance  participation by emerging business enterprises in
city procurement.
  b. Policy. It is the policy of the city to seek to ensure fair partic-
ipation in city procurement; and in furtherance of such policy to  fully
and  vigorously  enforce  all  laws  prohibiting  discrimination, and to
promote equal opportunity in city procurement  by  vigorously  enforcing
the city's contractual rights and pursuing its contractual remedies. The
program  established pursuant to this section is intended to address the
impact of discrimination on  the  city's  procurement  process,  and  to
promote  the  public  interest  in  avoiding fraud and favoritism in the
procurement process,  increasing  competition  for  city  business,  and
lowering contract costs.
  c.  Definitions.  For  purposes  of  this section, the following terms
shall have the following meaning:
  (1) "Agency" means a city, county, borough, or other office, position,
administration, department, division, bureau, board or commission, or  a
corporation,  institution or agency of government, the expenses of which
are paid in whole or in part from the city treasury.
  (2) "Agency chief contracting officer" means the individual to whom an
agency head has delegated authority to organize and supervise the  agen-
cy's procurement activity.
  (3)  "Availability  rate" means the percentage of business enterprises
within an industry classification that are owned by  minorities,  women,
VETERANS  or individuals who are socially and economically disadvantaged
willing and able to perform agency contracts.
  (4) "Bidder" means any person submitting a bid or proposal in response
to a solicitation for such bid or proposal from an agency.
  (5) "Bidders list" or "proposers list" means a list maintained  by  an
agency that includes persons from whom bids or proposals can be solicit-
ed.
  (6) "City" means the city of New York.
  (7)  "City chief procurement officer" means the individual to whom the
mayor has delegated authority to coordinate and oversee the  procurement
activity of mayoral agency staff, including the agency chief contracting
officers and any offices that have oversight responsibility for procure-
ment.
  (8)  "Commercially  useful  function"  means a real and actual service
that is a distinct and verifiable element of the work called  for  in  a
contract. In determining whether an MBE, WBE, VBE or EBE is performing a
commercially  useful  function, factors including but not limited to the
following shall be considered:
  (a) whether it has the skill and expertise to  perform  the  work  for
which it is being utilized, and possesses all necessary licenses;
  (b) whether it is in the business of performing, managing or supervis-
ing the work for which it has been certified and is being utilized; and
  (c)  whether  it purchases goods and/or services from another business
and whether its participation in the contract would have  the  principal
effect  of allowing it to act as a middle person or broker in which case
it may not be considered to be performing a commercially useful function
for purposes of this section.

A. 3056                            33

  (9) "Commissioner" shall  mean  the  commissioner  of  small  business
services.
  (10)  "Construction"  means  construction, reconstruction, demolition,
excavation,  renovation,  alteration,  improvement,  rehabilitation,  or
repair of any building, facility, physical structure of any kind.
  (11)  "Contract"  means any agreement, purchase order or other instru-
ment whereby the city is committed to expend or  does  expend  funds  in
return   for   goods,   professional  services,  standard  services,  or
construction.
  (12) "Contractor" means a person who has been awarded a contract by  a
city agency.
  (13)  "Direct  subcontractor"  means  a person who has entered into an
agreement with a contractor to provide services or perform work that  is
required pursuant to a contract with a city agency.
  (14) "Director" means an individual designated by the mayor to perform
the  oversight  functions of the director described in this section, who
either reports directly to the mayor or is a commissioner.
  (15) "Directory" means a list prepared by the division of firms certi-
fied pursuant to section 1304 of the charter.
  (16) "Division" shall mean the  division  of  economic  and  financial
opportunity within the department of small business services.
  (17)  "EBE" means an emerging business enterprise certified in accord-
ance with section 1304 of the charter.
  (18) "Geographic market of the city"  means  the  following  counties:
Bronx,  Kings,  New  York,  Queens,  Richmond, Nassau, Putnam, Rockland,
Suffolk and Westchester within  the  State  of  New  York;  and  Bergen,
Hudson, and Passaic within the state of New Jersey.
  (19) "Goal" means a numerical target.
  (20) "Graduate MBE," "graduate WBE," "GRADUATE VBE," or "graduate EBE"
means an MBE, WBE, VBE or EBE which shall have been awarded contracts by
one  or  more  agencies within the past three years where the total city
funding from the expense and capital  budgets  for  such  contracts  was
equal  to  or  greater  than  fifty  million  dollars and whose size has
exceeded the size standards established for its industry by  the  United
States small business administration for three years.
  (21)  "Human  services"  means  services  provided  to  third parties,
including social services such as day  care,  foster  care,  home  care,
homeless   assistance,   housing   and  shelter  assistance,  preventive
services, youth services, and senior centers; health or medical services
including those provided  by  health  maintenance  organizations;  legal
services;  employment  assistance  services,  vocational and educational
programs; and recreation programs.
  (22) "Indirect subcontractor" means a person who has entered  into  an
agreement  with  a  direct  subcontractor to provide services or perform
work that is required pursuant to the  direct  subcontractor's  contract
with a contractor.
  (23)  "Industry classification" means one of the following classifica-
tions:
  (a) construction;
  (b) professional services;
  (c) standard services; and
  (d) goods.
  (24) "Joint venture" means an association, of limited scope and  dura-
tion,  between two or more persons who have entered into an agreement to
perform and/or provide services required by a contract,  in  which  each
such  person  contributes  property, capital, effort, skill and/or know-

A. 3056                            34

ledge, and in which each such person is entitled to share in the profits
and losses of the venture in reasonable proportion to the economic value
of its contribution.
  (25)  "MBE"  means  a  minority-owned business enterprise certified in
accordance with section 1304 of the charter.
  (26) "Minority group" means  Black  Americans;  Asian  Americans,  and
Hispanic  Americans,  provided that the commissioner shall be authorized
to add additional groups to this definition upon a finding that there is
statistically significant disparity between the  availability  of  firms
owned  by  individuals in such a group and the utilization of such firms
in city procurement.
  (27) "Non-certified firm" means a business  enterprise  that  has  not
been  certified as an MBE, WBE or EBE in accordance with section 1304 of
the charter OR VBE.
  (28) "Person" means  any  business,  individual,  partnership,  corpo-
ration, firm, company, or other form of doing business.
  (29)  "Professional  services" means services that require specialized
skills and the exercise  of  judgment,  including  but  not  limited  to
accountants,  lawyers,  doctors,  computer  programmers and consultants,
architectural and  engineering  services,  and  construction  management
services.
  (30) "Qualified joint venture agreement" means a joint venture between
one  or  more MBEs, WBEs, VBES, and/or EBEs and another person, in which
the percentage of profit or loss to which the certified firm or firms is
entitled or exposed for participation in the contract, as set  forth  in
the  joint  venture  agreement,  is  at least 25% of the total profit or
loss.
  (31) "Scope of work" means  specific  tasks  required  in  a  contract
and/or services or goods that must be provided to perform specific tasks
required in a contract.
  (32)  "Standard  services"  means  services  other  than  professional
services and human services.
  (33) "Utilization rate" means the percentage of total contract expend-
itures expended on contracts or subcontracts with firms that  are  owned
by  women,  VETERANS,  minorities,  or  individuals who are socially and
economically disadvantaged, respectively, in one or more industry  clas-
sifications.
  (34)  "WBE"  means  a  women-owned  business  enterprise  certified in
accordance with section 1304 of the charter.
  (35) "VBE" MEANS A VETERAN-OWNED BUSINESS ENTERPRISE.
  d. Citywide goals. (1) The citywide  contracting  participation  goals
for  MBEs, WBEs, VBES and EBEs, which may be met through awards of prime
contracts or subcontracts as described in subdivision j of this section,
shall be as follows:
  For construction contracts:
  Category:                   Participation goal:
  Black Americans             8% of total annual
                              agency expenditures on such contracts
  Asian Americans             8% of total annual agency
                              expenditures on such contracts
  Hispanic Americans          4% of total annual agency
                              expenditures on such contracts
  Women                       18% of total annual agency
                              expenditures on such contracts
  VETERANS                    A PERCENTAGE TO BE DETERMINED
                              BY THE COMMISSIONER IN ACCORDANCE

A. 3056                            35

                              WITH THE PROVISIONS OF PARAGRAPH
                              FOUR OF THIS SUBDIVISION
  Emerging                    6% of total annual agency expenditures
                              on such contracts
  For professional services contracts:
  Category:                   Participation goal:
  Black Americans             12% of total annual agency
                              expenditures on such contracts
  Hispanic Americans          8% of total annual agency
                              expenditures on such contracts
  Women                       37% of total annual agency
                              expenditures on such contracts
  VETERANS                    A PERCENTAGE TO BE DETERMINED BY THE
                              COMMISSIONER IN ACCORDANCE WITH THE
                              PROVISIONS OF PARAGRAPH FOUR OF THIS
                              SUBDIVISION
                              expenditures on such contracts
  Emerging                    6% of total annual agency expenditures
                              on such contracts
  For standard services contracts:
  Category:                   Participation goal:
  Black Americans             12% of total annual agency
                              expenditures on such contracts
  Asian Americans             3% of total annual agency
                              expenditures on such contracts
  Hispanic Americans          6% of total annual agency
                              expenditures on such contracts
  Women                       10% of total annual agency
                              expenditures on such contracts
  VETERANS                    A PERCENTAGE TO BE DETERMINED BY THE
                              COMMISSIONER IN ACCORDANCE WITH THE
                              PROVISIONS OF PARAGRAPH FOUR OF THIS
                              SUBDIVISION
  Emerging                    6% of total annual agency expenditures
                              on such contracts
  For goods contracts under one hundred thousand dollars:
  Category:                   Participation goal:
  Black Americans             7% of total annual agency
                              expenditures on such contracts
  Asian Americans             8% of total annual agency
                              expenditures on such contracts
  Hispanic Americans          5% of total annual agency
                              expenditures on such contracts
  Women                       25% of total annual agency
                              expenditures on such contracts
  VETERANS                    A PERCENTAGE TO BE DETERMINED BY THE
                              COMMISSIONER IN ACCORDANCE WITH THE
                              PROVISIONS OF PARAGRAPH FOUR OF THIS
                              SUBDIVISION
  Emerging                    6% of total annual agency expenditures
                              on such contracts
  (2)  (a)  The  division  and  the city chief procurement officer shall
develop a citywide utilization plan for procurements of goods.
  (b) Agencies shall develop agency utilization plans pursuant to subdi-
vision g of this section. The citywide  goals  shall  not  be  summarily
adopted  as goals for all annual agency utilization plans; rather, goals

A. 3056                            36

for such plans may be set at levels higher, lower, or the  same  as  the
citywide goals, subject to the approval of the commissioner as described
in  paragraph  three  of subdivision g of this section. When setting its
goals,  each  agency  shall  consider  the  citywide goals, the size and
nature of its own procurement portfolio, and the availability  of  MBEs,
WBEs,  VBES and EBEs with the capacity to perform the specific types and
scale of work for which the agency anticipates it will solicit  procure-
ments  during  the  year.  Agencies  shall  seek  to  ensure substantial
progress toward the attainment of each of these goals in as short a time
as practicable.
  (3) The citywide goals shall not be summarily  adopted  as  goals  for
individual  procurements;  rather, as set forth in subdivision i of this
section, goals for such procurements may be set at levels higher, lower,
or the same as the citywide goals. In setting such  goals,  each  agency
shall  take  into  account  the  citywide  goals and the agency's annual
utilization plan, the size and nature of the procurement, and the avail-
ability of MBEs, WBEs, VBES and EBEs with the capacity  to  perform  the
specific types and scale of work involved in its procurements.
  (4) (a) No later than 2015, the commissioner, in consultation with the
city  chief procurement officer, shall, for each industry classification
and each minority group, review and compare the  availability  rates  of
firms  owned  by minorities [and], women AND VETERANS to the utilization
rates of such firms in agency contracts  and  direct  subcontracts,  and
shall  on  the  basis of such review and any other relevant information,
where appropriate, revise by rule the citywide participation  goals  set
forth in this subdivision AND DETERMINE APPROPRIATE CONTRACTING PERCENT-
AGE GOALS FOR VETERANS.  In making such revision, the commissioner shall
consider  the extent to which discrimination continues to have an impact
on the ability of minorities [and], women AND VETERANS  to  compete  for
city  contracts  and  subcontracts.  The  commissioner  shall submit the
results of such review and any proposed revisions to  the  participation
goals  to  the  speaker  of  the  council  at  least sixty days prior to
publishing a proposed rule that would revise participation  goals.  Such
review shall thereafter be conducted at least once every two years.
  (b)  No  later  than  2015,  the commissioner shall review information
collected by the department to determine the availability  and  utiliza-
tion  of EBEs, and shall on the basis of such review and any other rele-
vant information, where appropriate, revise by rule the citywide partic-
ipation goals set forth in this subdivision AND INCLUDE VETERANS IN SUCH
GOALS. Such revised goals shall be set at a level intended to assist  in
overcoming  the impact of discrimination on such businesses. Such review
shall be conducted in 2015 and at least once every two years thereafter.
  e. Responsibilities of the division.
  (1) The division shall create and  maintain  and  periodically  update
directories  by  industry  classification  of  MBEs, WBEs, VBES and EBEs
which it shall supply to all agencies, post on its website and on  other
relevant  city  websites  and  make  available  for dissemination and/or
public inspection  at  its  offices  and  other  locations  within  each
borough.
  (2) The division shall make its resources available to assist agencies
and  contractors in (i) determining the availability of MBEs, WBEs, VBES
and EBEs to participate in their contracts as prime  contractors  and/or
subcontractors;  and  (ii)  identifying  opportunities  appropriate  for
participation by MBEs, WBEs, VBES and EBEs in contracts.
  (3) The division shall develop and maintain relationships with  organ-
izations  representing contractors, including MBEs, WBEs, VBES and EBEs,

A. 3056                            37

and solicit their support and assistance in efforts to increase  partic-
ipation of MBEs, WBEs, VBES and EBEs in city procurement.
  (4)  The  division  shall coordinate with city and state entities that
maintain databases of MBEs, WBEs, VBES and EBEs and work to enhance city
availability data and directories.
  (5) The division shall keep agency M/WBE AND VBE officers informed  of
conferences,  contractor fairs, and other services that are available to
assist them in pursuing the objectives of this section.
  (6) The division shall conduct, coordinate  and  facilitate  technical
assistance  and  educational  programs for MBEs, WBEs, VBES and EBEs and
other contractors designed to enhance participation of MBEs, WBEs,  VBES
and  EBEs  in  city  procurement.  The  division shall further develop a
clearinghouse of information on programs and services available to MBEs,
WBEs, VBES and EBEs.   The division shall conduct  meetings  with  MBEs,
WBEs, VBES and EBEs to discuss what agencies look for in evaluating bids
and  proposals.  The  division  shall  also educate prime contractors on
opportunities to partner or subcontract with certified MBEs, WBEs,  VBES
and EBEs.
  (7)  The division shall develop standardized forms and reporting docu-
ments for agencies and contractors to facilitate the reporting  require-
ments of this section.
  (8)  The division shall direct and assist agencies in their efforts to
increase participation by MBEs, WBEs, VBES and EBEs in any city-operated
financial, technical, and management assistance program.
  (9) The division shall study and recommend to the commissioner methods
to streamline the M/WBE, VBE and EBE certification process.
  (10) Each fiscal year the division,  in  consultation  with  the  city
chief procurement officer, shall audit at least 5% of all open contracts
for  which contractor utilization plans have been established in accord-
ance with subdivision i of this section and 5% of all contracts  awarded
to  MBEs,  WBEs,  VBES, and EBEs to assess compliance with this section.
All solicitations for contracts for which contractor  utilization  plans
are to be established shall include notice of potential audit.
  (11)  The  division  shall  assist agencies in identifying and seeking
ways to reduce or eliminate practices such as  bonding  requirements  or
delays  in  payment  by  prime  contractors that may present barriers to
competition by MBEs, WBEs, VBES and EBEs.
  (12) The division shall encourage prime  contractors  to  enter  joint
venture agreements with MBEs, WBEs, VBES and EBEs.
  (13)  (a)  The division shall, upon reviewing applications for certif-
ication and recertification, determine whether a  firm  qualifies  as  a
graduate MBE, WBE, VBE or EBE.
  (b)  The  division shall promulgate regulations establishing a process
by which a certified MBE, WBE, VBE or EBE may challenge a  determination
that it qualifies as a graduate MBE, WBE, VBE or EBE.
  (c)  At any time more than two years after the division has determined
that a firm qualifies as a graduate MBE, WBE, VBE or EBE, the  firm  may
apply  to  have  such  designation  lifted.  The division shall lift the
designation if the firm demonstrates that it has  been  below  the  size
standards established by the United States small business administration
for its industry for a period of two years or more.
  f. Responsibilities of agency M/WBE AND VBE officers. Each agency head
shall  designate a deputy commissioner or other executive officer to act
as the agency M/WBE AND VBE officer who shall be directly accountable to
the agency head concerning the activities of the agency in carrying  out
its  responsibilities  pursuant to this section, including the responsi-

A. 3056                            38

bilities relating to EBE participation. The duties of the M/WBE AND  VBE
officer shall include, but not be limited to:
  (1) creating the agency's utilization plan in accordance with subdivi-
sion g of this section;
  (2) acting as the agency's liaison with the division;
  (3)  acting  as  a  liaison  with organizations and/or associations of
MBEs, WBEs, VBES and EBEs, informing such organizations  and/or  associ-
ations  of  the  agency's  procurement  procedures, and advising them of
future procurement opportunities;
  (4) ensuring that agency bid solicitations and requests for  proposals
are  sent  to  MBEs,  WBEs, VBES and EBEs in a timely manner, consistent
with this section and rules of the procurement policy board;
  (5) referring MBEs,  WBEs,  VBES  and  EBEs  to  technical  assistance
services available from agencies and other organizations;
  (6)  reviewing  requests  for  waivers and/or modifications of partic-
ipation goals and contractor utilization plans in accordance with  para-
graphs 11 and/or 12 of subdivision i of this section;
  (7)  working  with  the division and city chief procurement officer in
creating directories as required  pursuant  to  subdivision  k  of  this
section. In fulfilling this duty, the agency M/WBE AND VBE officer shall
track  and  record  each  contractor that is an MBE, WBE, VBE or EBE and
each subcontractor hired pursuant to  such  officer's  agency  contracts
that  is  an MBE, WBE, VBE or EBE, and shall share such information with
the director, the commissioner, and the city chief procurement officer;
  (8) for contracts for which contractor  utilization  plans  have  been
established  pursuant  to subdivision i of this section, monitoring each
contractor's compliance with its utilization plan by appropriate  means,
which  shall  include, but need not be limited to, job site inspections,
contacting MBEs, WBEs, VBES and EBEs identified in the plan  to  confirm
their participation, and auditing the contractor's books and records;
  (9)  monitoring  the agency's procurement activities to ensure compli-
ance with its agency utilization plan and progress towards  the  partic-
ipation goals as established in such plan;
  (10)  providing  to the city chief procurement officer information for
the reports required in subdivision l of this section and providing  any
other  plans  and/or  reports  required  pursuant  to  this  section  or
requested by the director and/or the city chief procurement officer; and
  (11) participating in meetings required pursuant to subdivision  m  of
this section.
  g. Agency utilization plans.
  (1)  Beginning  May  15, 2006, and on April 1 of each year thereafter,
each agency which, during the fiscal year which ended on June 30 of  the
preceding year, has made procurements in excess of five million dollars,
without  counting procurements that are exempt pursuant to paragraph two
of subdivision q of this section, shall  submit  an  agency  utilization
plan  for  the fiscal year commencing in July of the year when such plan
is to be submitted to the commissioner. Upon approval by the commission-
er such plan shall be submitted to the speaker of  the  council.    Each
such plan shall, at a minimum, include the following:
  (a) the agency's participation goals for MBEs, WBEs, VBES and EBEs for
the  year,  provided  however,  that when setting its goals, each agency
shall consider the citywide goals,  the  size  and  nature  of  its  own
procurement portfolio (excluding contracts described in paragraph two of
subdivision q of this section), and the availability of MBEs, WBEs, VBES
and  EBEs  with  the capacity to perform the specific types and scale of

A. 3056                            39

work for which the  agency  anticipates  it  will  solicit  procurements
during the year;
  (b)  an  explanation  for  any  agency goal that is different than the
participation goal for the relevant group and industry classification as
determined pursuant to subdivision d of this section;
  (c) a list of the names and titles of agency personnel responsible for
implementation of the agency utilization plan;
  (d) methods and relevant activities proposed for achieving  the  agen-
cy's participation goals; and
  (e)  any  other information which the agency or the commissioner deems
relevant or necessary.
  (2) An agency utilization plan shall set forth specific  participation
goals  for  MBEs,  WBEs,  VBES and/or EBEs for purchases of professional
services, standard services, construction and goods valued at  or  below
twenty  thousand  dollars,  and  for purchases of professional services,
standard services, construction and goods valued at or below one hundred
thousand dollars. When setting its goals for such purchases, in addition
to the factors set forth in paragraph  (1)  of  this  subdivision,  each
agency  shall  specifically consider the potential for such purchases to
provide opportunities for MBEs, WBEs, VBES and EBEs to  develop  greater
capacity, thereby increasing competition for city procurements.
  (3)  An  agency  utilization  plan may be amended from time to time to
reflect changes in the agency's projected expenditures or other relevant
circumstances and  resulting  changes  in  such  agency's  participation
goals.  Such amendments shall be submitted to the commissioner, the city
chief procurement officer and the speaker of the council at least thirty
days prior to implementation.
  (4) Prior  to  approving  individual  agency  utilization  plans,  the
commissioner,  in  consultation with the city chief procurement officer,
shall consider whether such plans viewed in the aggregate establish  any
goals  exceeding  the corresponding citywide goals set forth in subdivi-
sion d of this section. If any aggregated goals are found to exceed  the
corresponding  citywide goal, the commissioner shall require agencies to
adjust their goals so that plans, viewed in the aggregate, do not estab-
lish goals exceeding the citywide goals. Nothing in this paragraph shall
be construed to limit the awards of contracts and subcontracts that  may
be made to MBEs, WBEs, VBES and EBEs without using goals.
  (5)  The commissioner, in consultation with the city chief procurement
officer, shall, no later than July 31 of each year, publish on the divi-
sion's website a plan and schedule for each agency detailing the  antic-
ipated  contracting  actions  for the upcoming fiscal year that form the
basis for the agency utilization plan of each such agency. The plan  and
schedule  shall include information specific to each prospective invita-
tion for bids, request for proposal, or other  solicitation,  including,
but  not  limited to, the specific type and scale of the services and/or
goods to be procured, the term of the proposed contract, the  method  of
solicitation  the  agency intends to utilize, and the anticipated fiscal
year quarter of the planned solicitation.
  h. Achieving agency participation goals.
  (1) Each agency head shall be directly accountable for the  goals  set
forth in his or her agency's utilization plan.
  (2)  Each agency shall make all reasonable efforts to meet the partic-
ipation goals established  in  its  agency  utilization  plan.  Agencies
shall,  at a minimum, use the following methods to achieve participation
goals:

A. 3056                            40

  (a) Agencies shall engage in outreach activities  to  encourage  MBEs,
WBEs,  VBES  and  EBEs  to  compete  for all facets of their procurement
activities, including contracts awarded by negotiated acquisition, emer-
gency and sole source contracts, and each agency shall seek  to  utilize
MBEs,  WBEs,  VBES  and/or  EBEs  for  all  types of goods, services and
construction they procure.
  (b) Agencies shall encourage eligible businesses to apply for  certif-
ication as MBEs, WBEs, VBES and EBEs and inclusion in the directories of
MBEs,  WBEs,  VBES  and  EBEs. Agencies shall also encourage MBEs, WBEs,
VBES and EBEs to have their names included on their bidders lists,  seek
pre-qualification  where  applicable,  and  compete for city business as
contractors and subcontractors. Agencies  are  encouraged  to  advertise
procurement  opportunities  in  general  circulation  media,  trade  and
professional association publications  and  small  business  media,  and
publications of minority [and], women's AND VETERANS' business organiza-
tions,  and send written notice of specific procurement opportunities to
minority [and], women's AND VETERANS' business organizations.
  (c) All agency solicitations  for  bids  or  proposals  shall  include
information  referring potential bidders or proposers to the directories
of MBEs, WBEs, VBES and EBEs prepared by the division.
  (d) In planning procurements, agencies shall consider  the  effect  of
the  scope,  specifications  and size of a contract on opportunities for
participation by MBEs, WBEs, VBES and EBEs.
  (e) Prior to soliciting bids or proposals for contracts valued at over
ten million dollars, other than contracts for capital projects valued at
over twenty-five million dollars and contracts that are exempt  pursuant
to  paragraph  two  of  subdivision  q  of this section, an agency shall
submit the bid or proposal to the city chief procurement officer  for  a
determination  whether it is practicable to divide the proposed contract
into smaller contracts and whether doing so will enhance competition for
such contracts among MBEs, WBEs,  VBES  and  EBEs  and  other  potential
bidders  or  proposers. If the city chief procurement officer determines
that it is both practicable and advantageous in light of cost and  other
relevant  factors  to divide such contracts into smaller contracts, then
he or she shall direct the agency to do so.
  (f) Agencies shall examine their internal procurement policies, proce-
dures and practices and, where practicable, address those  elements,  if
any,  that  may  negatively affect participation of MBEs, WBEs, VBES and
EBEs in city procurement.
  i. Participation goals for contracts for construction and professional
and standard services.
  (1) Prior to issuing the solicitation of bids or proposals  for  indi-
vidual contracts, agencies shall establish participation goals for MBEs,
WBEs, VBES and/or EBEs. Such goals may be greater than, less than or the
same  as  the  relevant  citywide  goal or goals established pursuant to
subdivision d of this section. Taking into account the factors listed in
this subdivision, an agency may establish a goal for a procurement  that
may  be  achieved  by  a  combination  of prime contract and subcontract
dollars, a combination of construction and services  performed  pursuant
to  the  contract, and/or a combination of MBEs, WBEs, VBES and/or EBEs.
Alternatively, an agency may establish  specific  goals  for  particular
types of services, and/or goals for particular types of certified firms.
In  determining  the  participation  goals for a particular contract, an
agency shall consider the following factors:
  (a) the scope of work;

A. 3056                            41

  (b) the availability of MBEs, WBEs, VBES and EBEs able to perform  the
particular tasks required in the contract;
  (c)  the  extent  to  which the type and scale of work involved in the
contract present prime contracting and subcontracting opportunities  for
amounts within the capacity of MBEs, WBEs, VBES and EBEs;
  (d)  the  agency's  progress to date toward meeting its annual partic-
ipation goals through race-neutral, gender-neutral and other means,  and
the  agency's  expectations  as  to the effect such methods will have on
participation of MBEs, WBEs,  VBES  and  EBEs  in  the  agency's  future
contracts; and
  (e) any other factors the contracting agency deems relevant.
  (2)  A  contracting  agency shall not be required to establish partic-
ipation goals for
  (i) procurements described in subdivision q of this section; or
  (ii) when the agency has already attained the  relevant  goal  in  its
annual  utilization plan, or expects that it will attain such goal with-
out the use of such participation goals.
  (3) For each contract in which a contracting  agency  has  established
participation  goals,  such  agency  shall state in the solicitation for
such contract that bidders and/or proposers shall be required  to  agree
as  a  material  term of the contract that the contractor shall meet the
participation goals unless such goals are  waived  or  modified  by  the
agency  in  accordance  with  this section. A contractor that is an MBE,
WBE, VBE or EBE shall be permitted to count its own participation toward
fulfillment of the relevant participation goal, provided that the  value
of  such a contractor's participation shall be determined by subtracting
from the total value of the contract any  amounts  that  the  contractor
pays  to  direct  subcontractors. A contractor that is a qualified joint
venture shall be permitted to count a  percentage  of  its  own  partic-
ipation toward fulfillment of the relevant participation goal. The value
of  such a contractor's participation shall be determined by subtracting
from the total value of the contract any  amounts  that  the  contractor
pays to direct subcontractors, and then multiplying the remainder by the
percentage  to  be  applied  to  total profit to determine the amount to
which an MBE, WBE, VBE or EBE is entitled pursuant to the joint  venture
agreement.  Notwithstanding  any  provision  of  this  paragraph  to the
contrary, a contractor's achievement of  participation  goals  shall  be
determined  as  described  in  paragraph  two  of  subdivision j of this
section.
  (4) For each contract in which participation  goals  are  established,
the  agency shall include in its solicitation and/or bidding materials a
referral to the directories prepared by the division  pursuant  to  this
section.
  (5)  For  each contract for which participation goals are established,
the contractor shall be required to submit with its bid  or  proposal  a
contractor utilization plan indicating:
  (a)  whether  the  contractor is an MBE, WBE, VBE, EBE, or a qualified
joint venture;
  (b) the percentage of work it intends to award to  direct  subcontrac-
tors; and
  (c)  in  cases  where  the  contractor intends to award direct subcon-
tracts, a description of the type and dollar value  of  work  designated
for  participation  by MBEs, WBEs, VBES and/or EBEs, and the time frames
in which such work is scheduled to begin and end.
  When the contractor utilization plan  indicates  that  the  bidder  or
proposer  does  not  intend  to meet the participation goals, the bid or

A. 3056                            42

proposal shall not be deemed responsive unless the agency has granted  a
pre-award  request  for change pursuant to paragraph 11 of this subdivi-
sion.
  (6)  (a) For each contract for which a contractor utilization plan has
been submitted, the contracting agency shall require that within  thirty
days  of  the  issuance of notice to proceed, and at least once per year
thereafter, the contractor submit a list of persons to which it  intends
to award subcontracts within the next twelve months. In the event that a
contracting agency disapproves a contractor's selection of a subcontrac-
tor  or subcontractors, the contracting agency shall allow such contrac-
tor a reasonable time to propose alternate subcontractors.
  (b) The contracting agency may also require the contractor  to  report
periodically about the contracts awarded by its direct subcontractors to
indirect subcontractors.
  (7) For each contract for which a contractor utilization plan has been
submitted,  the  contractor shall, with each voucher for payment, and/or
periodically as the agency may  require,  submit  statements,  certified
under  penalty  of  perjury, which shall include, but not be limited to,
the total amount the contractor paid to its direct subcontractors,  and,
where applicable pursuant to subparagraph (1) of paragraph (1) of subdi-
vision j of this section, the total amount direct subcontractors paid to
indirect  subcontractors,  the  names,  addresses and contact numbers of
each MBE, WBE, VBE or EBE hired as a subcontractor by the contractor  or
any  of the contractor's direct subcontractors, as well as the dates and
amounts paid to each MBE, WBE, VBE or EBE.  The  contractor  shall  also
submit,  along  with  its voucher for final payment, the total amount it
paid to subcontractors, and, where applicable pursuant  to  subparagraph
(1)  of paragraph (1) of subdivision j of this section, the total amount
its direct subcontractors paid directly to  their  indirect  subcontrac-
tors;  and a final list, certified under penalty of perjury, which shall
include the name, address and contact information of each  subcontractor
that  is  an  MBE, WBE, VBE or EBE, the work performed by, and the dates
and amounts paid to each.
  (8) If payments made to, or work performed by,  MBEs,  WBEs,  VBES  or
EBEs  are less than the amount specified in the contractor's utilization
plan, the agency shall take appropriate action in accordance with subdi-
vision o of this section, unless the contractor has obtained a modifica-
tion of its utilization plan pursuant to paragraph 12 of  this  subdivi-
sion.
  (9)  When  advertising  a  solicitation  for  bids  or proposals for a
contract for which a participation goal has been  established,  agencies
shall include in the advertisement a general statement that the contract
will be subject to participation goals for MBEs, WBEs, VBES and/or EBEs.
  (10)  In  the  event that a contractor with a contract that includes a
contractor utilization plan submits a request for  a  change  order  the
value  of  which  exceeds the greater of ten percent of such contract or
$500,000, the agency shall review the scope of work  for  the  contract,
and the scale and types of work involved in the change order, and deter-
mine whether the participation goals should be modified.
  (11)  Requests  from bidders or proposers for changes in participation
goals.
  (a) A bidder or proposer may request that an agency change the partic-
ipation goal or goals established for the  procurement  on  the  grounds
that  goals  are  unreasonable in light of the availability of certified
firms to perform the services required, or by demonstrating that it  has

A. 3056                            43

legitimate  business reasons for proposing a lower level of subcontract-
ing in its utilization plan.
  (b)  If the contracting agency determines that the participation goals
established for the procurement are unreasonable in light of the  avail-
ability  of  certified  firms to perform the services required, it shall
revise the solicitation and extend the deadline for bids and proposals.
  (c) Subject to subparagraph (d) of  this  paragraph,  the  contracting
agency  may grant a full or partial waiver of the participation goals to
a bidder or proposer who demonstrates that it  has  legitimate  business
reasons  for  proposing  the  level of subcontracting in its utilization
plan. The contracting agency shall make its determination  in  light  of
factors that shall include, but not be limited to, whether the bidder or
proposer  has  the  capacity  and the bona fide intention to perform the
contract without any subcontracting, or to perform the contract  without
awarding  the  amount  of  subcontracts represented by the participation
goals. In making such determination, the agency may consider whether the
utilization plan is consistent with past subcontracting practices of the
bidder or proposer, whether the bidder or proposer has made  efforts  to
form  a  joint  venture with a certified firm, and whether the bidder or
proposer has made  good  faith  efforts  to  identify  portions  of  the
contract  that  it  intends  to  subcontract. The city chief contracting
officer shall notify the council of any such waiver granted with respect
to a registered contract in the quarterly report  required  pursuant  to
subdivision 1 of this section.
  (d)  The  agency M/WBE AND VBE officer shall provide written notice of
requests for a full or partial waiver of the participation goals to  the
division  and  the  city chief procurement officer and shall not approve
any such request without the approval  of  the  city  chief  procurement
officer, provided that the city chief procurement officer, upon adequate
assurances  of an agency's ability to administer its utilization plan in
accordance with the provisions  of  this  section,  may  determine  that
further approval from the city chief procurement officer is not required
with  respect  to  such requests for an agency's contracts or particular
categories of an agency's contracts. The city chief procurement  officer
shall  notify  the  speaker  of  the council in writing in the quarterly
report required pursuant to subdivision 1 of this section following  the
registration  of  a  contract  for which a request for a full or partial
waiver of a participation goal was granted, provided that where an agen-
cy has been authorized to grant waivers without approval  of  the  chief
procurement officer, such notice shall be provided to the speaker of the
council  by  the  agency.  Such  notification  shall include, but not be
limited to, the name of the contractor, the original participation goal,
the waiver request, including all documentation, and an explanation  for
the approval of such request.
  (12)  Modification  of  utilization  plans  at contractor's request or
agency's initiative. (a) A contractor may request  modification  of  its
utilization  plan after the award of a contract. Subject to subparagraph
(b) of this paragraph, an agency may grant such request if it determines
that such contractor has established, with appropriate  documentary  and
other  evidence, that it made all reasonable, good faith efforts to meet
the goals set by the agency for the contract. In  making  such  determi-
nation,  the agency shall consider evidence of the following efforts, as
applicable, along with any other relevant factors:
  (i) The contractor advertised  opportunities  to  participate  in  the
contract,  where  appropriate,  in  general circulation media, trade and
professional association publications  and  small  business  media,  and

A. 3056                            44

publications of minority [and], women's AND VETERANS' business organiza-
tions;
  (ii)  The  contractor  provided  notice  of  specific opportunities to
participate in the contract, in a  timely  manner,  to  minority  [and],
women's AND VETERANS' business organizations;
  (iii)  The  contractor  sent  written  notices,  by  certified mail or
facsimile, in a timely manner, to advise MBEs, WBEs, VBES or  EBEs  that
their interest in the contract was solicited;
  (iv) The contractor made efforts to identify portions of the work that
could  be  substituted  for  portions  originally designated for partic-
ipation by MBEs, WBEs, VBES and/or EBEs in  the  contractor  utilization
plan,  and  for which the contractor claims an inability to retain MBEs,
WBEs, VBES or EBEs;
  (v) The contractor held meetings with MBEs,  WBEs,  VBES  and/or  EBEs
prior  to  the date their bids or proposals were due, for the purpose of
explaining in detail the scope and requirements of the  work  for  which
their bids or proposals were solicited;
  (vi)  The  contractor  made efforts to negotiate with MBEs, WBEs, VBES
and/or EBEs as relevant to perform  specific  subcontracts,  or  act  as
suppliers or service providers;
  (vii) Timely written requests for assistance made by the contractor to
the agency M/WBE AND VBE liaison officer and to the division; and
  (viii) Description of how recommendations made by the division and the
contracting agency were acted upon and an explanation of why action upon
such  recommendations did not lead to the desired level of participation
of MBEs, WBEs, VBES and/or EBEs.
  (b) The agency M/WBE AND VBE officer shall provide written  notice  of
requests  for  such  modifications  to  the  division and the city chief
procurement officer and shall not approve any such request for modifica-
tion without  the  approval  of  the  city  chief  procurement  officer,
provided  that  the city chief procurement officer, upon adequate assur-
ances of an agency's ability  to  administer  its  utilization  plan  in
accordance  with  the  provisions  of  this  section, may determine that
further approval from the city chief procurement officer is not required
with respect to such requests for an agency's  contracts  or  particular
categories of an agency's contracts. The city chief procurement officer,
shall  notify the speaker of the council in writing within seven days of
the approval of a  request  for  modification  of  a  utilization  plan,
provided that where an agency has been authorized to grant modifications
without  approval of the chief procurement officer, such notice shall be
provided to the speaker of the council by the agency. Such  notification
shall  include,  but  not be limited to, the name of the contractor, the
original utilization  plan,  the  modification  request,  including  all
documentation, and an explanation for the approval of such request.
  (c)  An  agency  may  modify the participation goals established for a
procurement when the scope of the work has been changed by the agency in
a manner that affects the scale and types of work  that  the  contractor
indicated in its contractor utilization plan would be awarded to subcon-
tractors.
  (d)  The  agency M/WBE AND VBE officer shall provide written notice to
the contractor of its determination that shall include the  reasons  for
such determination.
  (13)  For  each contract in which a contracting agency has established
participation goals, the agency shall evaluate and assess  the  contrac-
tor's performance in meeting each such goal. Such evaluation and assess-

A. 3056                            45

ment  shall  be  a part of the contractor's overall contract performance
evaluation required pursuant to section 333 of the charter.
  j. Determining credit for MBE, WBE, VBE and EBE participation.
  (1) An agency's achievement of its annual goals shall be calculated as
follows:
  (a)  The  dollar amount that an agency has paid or is obligated to pay
to a prime contractor that is an MBE, WBE, VBE or EBE,  reduced  by  the
dollar  amount the contractor has paid or is obligated to pay its direct
subcontractors upon their completion of work, shall be  credited  toward
the  relevant  goal.  Where  an agency has paid or is obligated to pay a
prime contractor that is both an MBE and a WBE,  such  amount  shall  be
credited  toward the relevant goal for MBEs or the goal for WBEs.  WHERE
AN AGENCY HAS PAID OR IS OBLIGATED TO PAY A  PRIME  CONTRACTOR  THAT  IS
BOTH  AN  MBE OR WBE AND A VBE, SUCH AMOUNT SHALL BE CREDITED TOWARD THE
RELEVANT GOAL FOR MBES OR WBES, AS APPLICABLE, OR THE GOAL FOR VBES.
  (b) Except as provided in subparagraph  (c)  of  this  paragraph,  the
total  dollar amount that a prime contractor of an agency has paid or is
obligated to pay to a direct subcontractor that is an MBE, WBE,  VBE  or
EBE  shall be credited toward the relevant goal. Where such a contractor
has paid or is obligated to pay a direct subcontractor that is  both  an
MBE  and  a  WBE, such amount shall be credited toward the relevant goal
for MBEs or the goal for WBEs.  WHERE SUCH A CONTRACTOR HAS PAID  OR  IS
OBLIGATED TO PAY A DIRECT SUBCONTRACTOR THAT IS BOTH AN MBE OR WBE AND A
VBE,  SUCH AMOUNT SHALL BE CREDITED TOWARD THE RELEVANT GOAL FOR MBES OR
WBES, AS APPLICABLE, OR THE GOAL FOR VBES.
  (c) In the case of contracts  of  the  types  identified  pursuant  to
subparagraph (l) of this paragraph, the total dollar amount that a prime
contractor of an agency has paid or is obligated to pay a direct subcon-
tractor  that  is  an MBE, WBE, VBE or EBE, reduced by the dollar amount
the direct subcontractor has paid or is obligated to  pay  its  indirect
subcontractors  upon  completion  of  work, shall be credited toward the
relevant goal. Where such a contractor has paid or is obligated to pay a
direct contractor that is both an MBE and a WBE, such  amount  shall  be
credited  toward the relevant goal for MBEs or the goal for WBEs.  WHERE
SUCH CONTRACTOR HAS PAID OR IS OBLIGATED TO PAY A DIRECT CONTRACTOR THAT
IS BOTH AN MBE OR WBE AND A VBE, SUCH AMOUNT SHALL  BE  CREDITED  TOWARD
THE RELEVANT GOAL FOR MBES OR WBES, AS APPLICABLE, OR THE GOAL FOR VBES.
  (d)  In  the  case  of  contracts  of the types identified pursuant to
subparagraph (1) of this paragraph,  the  total  dollar  amount  that  a
direct subcontractor of the prime contractor has paid or is obligated to
pay  to  an indirect subcontractor that is an MBE, WBE, VBE or EBE shall
be credited toward the relevant goal. Where such a contractor  has  paid
or  is  obliged  to pay an indirect contractor that is both an MBE and a
WBE, such amount shall be credited toward the relevant goal for MBEs  or
the  goal for WBEs.  WHERE SUCH A CONTRACTOR HAS PAID OR IS OBLIGATED TO
PAY A DIRECT CONTRACTOR THAT IS BOTH AN MBE  OR  WBE  AND  A  VBE,  SUCH
AMOUNT  SHALL  BE CREDITED TOWARD THE RELEVANT GOAL FOR MBES OR WBES, AS
APPLICABLE, OR THE GOAL FOR VBES.
  (e) For requirements contracts, credit shall be given for  the  actual
dollar amount paid under the contract.
  (f)  Where  one or more MBEs, WBEs, VBES or EBEs is participating in a
qualified joint venture, the amounts that the joint venture is  required
to  pay  its  direct  subcontractors  shall be subtracted as provided in
subparagraph (a) of this paragraph, and then a percentage of the remain-
ing dollar amount of the contract  equal  to  the  percentage  of  total
profit  to  which  MBEs, WBEs, VBES or EBEs are entitled pursuant to the

A. 3056                            46

joint venture agreement shall be  credited  toward  the  relevant  goal.
Where  such  a  participant in a joint venture is both an MBE and a WBE,
such amount shall be credited toward the relevant goal for MBEs  or  the
goal  for WBEs.  WHERE SUCH A CONTRACTOR HAS PAID OR IS OBLIGATED TO PAY
A DIRECT CONTRACTOR THAT IS BOTH AN MBE OR WBE AND A  VBE,  SUCH  AMOUNT
SHALL BE CREDITED TOWARD THE RELEVANT GOAL FOR MBES OR WBES, AS APPLICA-
BLE, OR THE GOAL FOR VBES.
  (g)  No  credit  shall  be given for participation in a contract by an
MBE, WBE, VBE or EBE that does not perform a commercially  useful  func-
tion.
  (h)  No  credit  shall be given for the participation in a contract by
any company that has not been certified as an MBE, WBE, VBE  or  EBE  in
accordance with section 1304 of the charter.
  (i)  In  the  case of a contract for which the contractor is paid on a
commission basis, the dollar amount of the contract may be determined on
the basis of the commission  earned  or  reasonably  anticipated  to  be
earned under the contract.
  (j)  No  credit  shall be given to a contractor for participation in a
contract by a graduate MBE, WBE, VBE or EBE.
  (k) The participation of a certified company  shall  not  be  credited
toward more than one participation goal.
  (1) The city chief procurement officer may identify types of contracts
where  payments  to indirect subcontractors shall be credited toward the
relevant participation goals.
  (2) A contractor's achievement of its participation goals  established
in its utilization plan shall be calculated as follows:
  (a)  A  contractor's  use  of direct subcontractors and their indirect
subcontractors toward achievement of each goal established in its utili-
zation plan shall be calculated in the  same  manner  as  described  for
calculating  the achievement of agency utilization goals as described in
paragraph (1) of this subdivision, except that a contractor's use  of  a
subcontractor  that  is  both  an MBE and a WBE, OR IS AN MBE OR WBE AND
ALSO A VBE, shall not be credited toward the contractor's achievement of
more than one goal;
  (b) A contractor that is an MBE, WBE, VBE or EBE shall be permitted to
count its own participation toward fulfillment of the  relevant  partic-
ipation  goal,  provided  that  the value of such a contractor's partic-
ipation shall be determined by subtracting from the total value  of  the
contract  any amounts that the contractor pays to direct subcontractors,
and provided further that a contractor that is both an MBE and a WBE, OR
IS AN MBE OR WBE AND ALSO A VBE, shall not be credited for  its  partic-
ipation toward more than one goal;
  (c)  No  credit shall be given to the contractor for the participation
of a company that is not certified in accordance with  section  1304  of
the  charter  before  the date that the subcontractor completes the work
under the subcontract.
  (d) A contractor that is a qualified joint venture shall be  permitted
to count a percentage of its own participation toward fulfillment of the
relevant  participation  goal.  The value of such a contractor's partic-
ipation shall be determined by subtracting from the total value  of  the
contract  any amounts that the contractor pays to direct subcontractors,
and then multiplying the remainder by the percentage to  be  applied  to
total profit to determine the amount to which an MBE, WBE, VBE or EBE is
entitled  pursuant  to  the joint venture agreement; provided that where
such a participant in a joint venture is both an MBE and a WBE, OR IS AN

A. 3056                            47

MBE OR A WBE AND ALSO A VBE, such amount shall not  be  credited  toward
more than one goal.
  k. Small purchases.
  Whenever  an  agency  solicits  bids  or proposals for small purchases
pursuant to section three hundred fourteen of the  charter,  the  agency
shall  maintain  records  identifying  the  MBEs, WBEs, VBES and EBEs it
solicited, which shall become part of the contract file.
  l. Compliance reporting.
  (1) The city chief procurement officer, in consultation with the divi-
sion, shall prepare and submit quarterly reports to the speaker  of  the
council  as  described  in  this section. Preliminary reports containing
information for the fiscal year in progress shall be  submitted  to  the
speaker  of the council by January first, April first, and July first of
each year, and a final report containing information for  the  preceding
fiscal  year shall be submitted to the speaker of the council by October
first of each year. The reports, which shall also be posted on the divi-
sion's website, shall contain the following  information,  disaggregated
by agency:
  (a)  the number and total dollar value of contracts awarded, disaggre-
gated by industry classification and size of contract, including but not
limited to, contracts  valued  at  or  below  twenty  thousand  dollars,
contracts  valued  above  twenty  thousand  dollars  and at or below one
hundred thousand dollars, contracts valued above  one  hundred  thousand
dollars  and at or below one million dollars, contracts valued above one
million dollars and at or below five million dollars,  contracts  valued
above  five million dollars and at or below twenty five million dollars,
and contracts valued above twenty five million dollars;
  (b) for those contracts for which an agency set participation goals in
accordance with subdivision i of this section:
  (i) The number and total dollar amount of such contracts disaggregated
by industry classification, size of contract and  status  as  MBE,  WBE,
VBE,  EBE,  or non-certified firm, and further disaggregated by minority
and gender group, and the number and dollar value of such contracts that
were awarded to firms that are certified both as MBEs and WBEs, OR AS AN
MBE OR WBE AND ALSO A VBE;
  (ii) the number and total dollar value of  such  contracts  that  were
awarded  to  qualified joint ventures and the total dollar amount attri-
buted to the MBE, WBE, VBE or EBE joint venture partners,  disaggregated
by  minority and gender group, size of contract and industry classifica-
tion, and the number and  dollar  value  of  such  contracts  that  were
awarded  to firms that are certified both as MBEs and WBEs, OR AS AN MBE
OR WBE AND ALSO A VBE;
  (iii) The number and  total  dollar  value  of  subcontracts  approved
during the reporting period that were entered into pursuant to contracts
for which participation requirements under this section have been estab-
lished  (including  both  contracts awarded during the current reporting
period and those awarded in earlier reporting periods that  remain  open
during  the  current  reporting period), and the number and total dollar
amount of such subcontracts awarded to MBEs, WBEs, VBES and EBEs, disag-
gregated by minority and gender group, size of subcontract and  industry
classification,  and  the  number  and dollar value of such subcontracts
that were awarded to firms that are certified both as MBEs and WBEs,  OR
AS AN MBE OR WBE AND ALSO A VBE;
  (iv)  a  list  of  the requests for full or partial waivers of partic-
ipation requirements for such contracts made pursuant to paragraph 11 of
subdivision i of this section and the determinations made  with  respect

A. 3056                            48

to  such  requests,  and the number and dollar amount of those contracts
for which such waivers were granted, disaggregated by  industry  classi-
fication; and
  (v)  a list of the requests for modification of participation require-
ments for such contracts made pursuant to paragraph 12 of subdivision  i
of  this  section  and  the  determinations  made  with  respect to such
requests, and the number and dollar amount of those contracts for  which
such  modifications  were granted, disaggregated by industry classifica-
tion;
  (c) a detailed list of each complaint received pursuant to paragraph 1
of subdivision o of this section which shall, at a minimum, include  the
nature  of  each  complaint  and  the  action taken in investigating and
addressing such complaint including  whether  and  in  what  manner  the
enforcement provisions of subdivision o of this section were invoked and
the remedies applied;
  (d)  a  detailed  list of all non-compliance findings made pursuant to
paragraph 4 of subdivision o  of  this  section  and  actions  taken  in
response to such findings;
  (e)  the  number  of firms certified or recertified in accordance with
section 1304 of the charter during the six months immediately  preceding
such report;
  (f)  the  number  and  percentage  of  contracts  audited  pursuant to
[section] paragraph 10 of subdivision e of this section and a summary of
the results of each audit.
  (g) a summary of efforts to reduce or eliminate barriers  to  competi-
tion  as  required  pursuant  to  paragraph  11 of subdivision e of this
section;
  (h) a list of all solicitations submitted to the city  chief  procure-
ment officer pursuant to subparagraph [e] (E) of paragraph 2 of subdivi-
sion h of this section and a summary of the determination made regarding
each such submission; and
  (i)  any  other  information as may be required by the director and/or
the commissioner.
  (2) The annual  reports  submitted  in  October  shall,  in  addition,
contain a determination made by the director and the commissioner, as to
whether  each  agency has made substantial progress toward achieving its
utilization goals and whether the city  has  made  substantial  progress
toward  achieving the citywide goals established pursuant to subdivision
d of this section.
  (3) If an agency that has submitted an agency utilization plan  pursu-
ant  to  subdivision  g of this section fails to achieve its utilization
goal, the agency head shall prepare and  submit  to  the  director,  the
commissioner, the city chief procurement officer, and the speaker of the
council  by  October  first  a  performance improvement plan which shall
describe in detail the efforts  such  agency  intends  to  undertake  to
increase M/WBE AND VBE participation.
  (4)  The  data that provide the basis for the reports required by this
subdivision shall be made available electronically to the council at the
time the reports are submitted.
  m. Agency compliance.
  (1) Each agency shall submit to the commissioner and  the  city  chief
procurement  officer such information as is necessary for the city chief
procurement officer to complete his or her reports as required in subdi-
vision l of this section. The director, the commissioner, and  the  city
chief  procurement  officer shall review each agency's submissions.  The
director shall convene the agency M/WBE AND VBE officers for those agen-

A. 3056                            49

cies that have submitted utilization plans pursuant to subdivision g  of
this  section  as  often  as  the  director deems necessary, but no less
frequently than once per quarter, in order to have agency M/WBE AND  VBE
officers  (i) discuss the results of the reports required in subdivision
1 of this section; (ii)  offer  detailed  information  concerning  their
effectuation  of  their performance improvement plans and any additional
efforts undertaken to  meet  goals  established  in  agency  utilization
plans; (iii) share the practices that have yielded successes in increas-
ing  M/WBE  AND  VBE  participation;  and (iv) devise strategic plans to
improve the performance of those failing to meet  goals  established  in
agency utilization plans. No less frequently than twice per year, agency
heads  for those agencies that have submitted utilization plans pursuant
to subdivision g of this section shall  join  such  quarterly  meetings.
Whenever  it  has  been determined that an agency is not making adequate
progress toward the goals established in its  agency  utilization  plan,
the  director,  the commissioner, and the city chief procurement officer
shall act to improve such agency's performance, and may take any of  the
following actions:
  (a)  require  the  agency  to  submit  more frequent reports about its
procurement activity;
  (b) require the agency to notify the director, the  commissioner,  and
the  city  chief  procurement  officer, prior to solicitation of bids or
proposals for, and/or prior to award of, contracts in any category where
the agency has not made adequate progress toward achieving its  utiliza-
tion goals;
  (c)  reduce  or rescind contract processing authority delegated by the
mayor pursuant to sections 317 and 318 of the charter; and
  (d) any other action the director,  the  commissioner,  and  the  city
chief procurement officer deem appropriate.
  (2)  Noncompliance.  Whenever the director, the city chief procurement
officer, or the commissioner finds that an agency has failed  to  comply
with  its  duties under this section, he or she shall attempt to resolve
such noncompliance informally with the agency head. In  the  event  that
the  agency  fails  to  remedy  its  noncompliance  after  such informal
efforts, the director and  the  city  chief  procurement  officer  shall
submit  such  findings  in  writing  to the mayor and the speaker of the
council, and the mayor shall take appropriate measures to ensure compli-
ance.
  (3) Failure by an agency to submit information required by the  direc-
tor,  the division, or the city chief procurement officer, in accordance
with this section, including but not limited  to  the  utilization  plan
required  pursuant  to  subdivision  g  of this section, shall be deemed
noncompliance.
  n. Pre-qualification. An agency establishing a list  of  pre-qualified
bidders  or proposers may deny pre-qualification to prospective contrac-
tors who fail to demonstrate in their application for  pre-qualification
that  they  have  complied  with  applicable  federal,  state  and local
requirements for participation of MBEs, WBEs, VBES and EBEs in  procure-
ments.  A denial of pre-qualification may be appealed pursuant to appli-
cable procurement policy board rules.
  o. Enforcement.
  (1) Any person who believes that a violation of  the  requirements  of
this  section,  rules  promulgated  pursuant  to  its provisions, or any
provision of a contract that implements  this  section  or  such  rules,
including,  but  not  limited  to,  any contractor utilization plan, has
occurred may submit a complaint in writing to  the  division,  the  city

A. 3056                            50

chief  procurement  officer  and  the  comptroller.  The  division shall
promptly investigate such complaint and determine whether there has been
a violation.
  (2)  Any complaint alleging fraud, corruption or other criminal behav-
ior on, the part of a bidder,  proposer,  contractor,  subcontractor  or
supplier  shall  be  referred  to  the commissioner of the department of
investigation.
  (3) Contract award.
  (a) When an agency receives  a  protest  from  a  bidder  or  proposer
regarding  a  contracting  action  that  is related to this section, the
agency shall send copies of the protest and any appeal thereof, and  any
decisions  made  on  the protest or such appeal, to the division and the
comptroller.
  (b) Whenever a contracting agency has  determined  that  a  bidder  or
proposer has violated this section, or rules promulgated pursuant to its
provisions,  the  agency  may  disqualify  such  bidder or proposer from
competing for such contract and the agency may revoke such  bidder's  or
proposer's prequalification status.
  (4) Contract administration.
  (a)  For  each contract for which participation requirements have been
established under this section, at least once annually during  the  term
of  such  contract, the contracting agency shall review the contractor's
progress toward attainment of its utilization plan,  including  but  not
limited to, by reviewing the percentage of work the contractor has actu-
ally awarded to MBE, WBE, VBE and/or EBE subcontractors and the payments
the contractor has made to such subcontractors.
  (b)  Whenever  an agency believes that a contractor or a subcontractor
is not in compliance with this section, rules  promulgated  pursuant  to
its  provisions  or  any  provision  of  a contract that implements this
section, including, but not limited to any contractor utilization  plan,
the  agency  shall  send  a written notice to the city chief procurement
officer, the division and the contractor describing the alleged  noncom-
pliance  and  offering  the  contractor an opportunity to be heard.  The
agency shall then conduct an investigation  to  determine  whether  such
contractor or subcontractor is in compliance.
  (c)  In  the  event  that a contractor has been found to have violated
this section, rules promulgated  pursuant  to  its  provisions,  or  any
provision of a contract that implements this section, including, but not
limited  to  any  contractor  utilization  plan,  the contracting agency
shall, after consulting with the city chief procurement officer and  the
division,  determine  whether  any  of  the  following actions should be
taken:
  (i) enter an agreement with the contractor allowing the contractor  to
cure the violation;
  (ii)   revoke  the  contractor's  pre-qualification  to  bid  or  make
proposals for future contracts;
  (iii) make a  finding  that  the  contractor  is  in  default  of  the
contract;
  (iv) terminate the contract;
  (v) declare the contractor to be in breach of contract;
  (vi) withhold payment or reimbursement;
  (vii) determine not to renew the contract;
  (viii) assess actual and consequential damages;
  (ix)  assess  liquidated  damages  or reduction of fees, provided that
liquidated damages may be based on amounts representing costs of  delays
in carrying out the purposes of the program established by this section,

A. 3056                            51

or  in meeting the purposes of the contract, the costs of meeting utili-
zation goals through additional procurements, the  administrative  costs
of  investigation  and  enforcement,  or  other factors set forth in the
contract;
  (x)  exercise  rights under the contract to procure goods, services or
construction from  another  contractor  and  charge  the  cost  of  such
contract  to  the contractor that has been found to be in noncompliance;
or
  (xi) take any other appropriate remedy.
  (5) To the extent available pursuant to rules of the procurement poli-
cy board, a contractor may seek resolution  of  a  dispute  regarding  a
contract  related to this section. The contracting agency shall submit a
copy of such submission to the division.
  (6) Whenever an agency has reason to believe that an MBE, WBE, VBE  or
EBE  is  not  qualified  for  certification,  or  is  participating in a
contract in a manner that does not serve a commercially useful function,
or has violated any provision of this section, the agency  shall  notify
the  commissioner  who shall determine whether the certification of such
business enterprise should be revoked.
  (7) Statements made in any instrument submitted to an agency  pursuant
to these rules shall be submitted under penalty of perjury and any false
or misleading statement or omission shall be grounds for the application
of  any  applicable  criminal  and/or  civil  penalties for perjury. The
making of a false or fraudulent statement by an MBE, WBE, VBE or EBE  in
any  instrument submitted pursuant to these rules shall, in addition, be
grounds for revocation of its certification.
  (8) A contractor's record in implementing its  contractor  utilization
plan  shall be a factor in the evaluation of its performance. Whenever a
contracting agency determines that  a  contractor's  compliance  with  a
contractor  utilization  plan has been unsatisfactory, the agency shall,
after consultation with the city  chief  procurement  officer,  file  an
advice of caution form for inclusion in VENDEX as caution data.
  p. Procurements by elected officials and the council.
  (1)  In  the  case of procurements by independently elected city offi-
cials other than the mayor, where these rules provide for any action  to
be  taken  by  the  director or the city chief procurement officer, such
action shall instead be taken by such elected officials.
  (2) In the case of procurements by  the  council,  where  these  rules
provide  for  any  action  to be taken by the director or the city chief
procurement officer, such action shall instead be taken by  the  speaker
of the council.
  q.  Applicability.  Agencies  shall  not  be required to apply partic-
ipation requirements to the following types of contracts:
  (1) those subject to  federal  or  state  funding  requirements  which
preclude the city from imposing the requirements of this subdivision;
  (2)  those  subject to federal or state law participation requirements
for MBEs, WBEs, disadvantaged business enterprises, VBES, and/or EBEs;
  (3) contracts between agencies;
  (4) procurements made  through  the  United  States  general  services
administration  or another federal agency, or through the New York state
office of general services or another state agency, or any other govern-
mental agency.
  (5) emergency procurements pursuant to section three  hundred  fifteen
of the charter;
  (6)  sole  source procurements pursuant to section three hundred twen-
ty-one of the charter;

A. 3056                            52

  (7) contracts for human services; and
  (8) contracts awarded to not-for-profit organizations.
  r.  Comptroller.  The comptroller shall randomly examine contracts for
which contractor utilization plans are established to assess  compliance
with  such  plans.  All solicitations for contracts for which contractor
utilization plans are to be established shall include notice  of  poten-
tial comptroller examinations.
  S 32. Paragraphs (a), (b) and (c) of subdivision 12 of section 3.07 of
the arts and cultural affairs law, as amended by chapter 255 of the laws
of 1988, are amended to read as follows:
  (a)  All  contracts  for  design, construction, services and materials
pursuant to this section of whatever nature and all documents soliciting
bids or proposals therefor  shall  contain  or  make  reference  to  the
following provisions:
  (i)  That  the  contractor  will not discriminate against employees or
applicants for  employment  because  of  race,  creed,  color,  national
origin,  sex,  age, disability, or marital status, and will undertake or
continue existing programs of affirmative action to ensure that minority
group persons [and], women AND VETERANS are afforded  equal  opportunity
without  discrimination. Such programs shall include, but not be limited
to,  recruitment,  employment,  job  assignment,  promotion,  upgrading,
demotion,  transfer, layoff, termination, rates of pay or other forms of
compensation, and  selection  for  training  and  retraining,  including
apprenticeship and on-the-job training;
  (ii)  That  the  contractor shall request any employment agency, labor
union, or authorized representative of  workers  with  which  it  has  a
collective  bargaining  or other agreement or understanding and which is
involved in the performance of the contract to furnish a written  state-
ment  that  it  will  not  discriminate  because  of race, creed, color,
national origin, sex, age, disability or  marital  status  and  it  will
cooperate  in  the  implementation of the contractor's obligations here-
under;
  (iii) That the contractor will state, in any solicitations  or  adver-
tisements  for employees placed by or on behalf of the contractor in the
performance of the contract,  that  all  qualified  applicants  will  be
afforded  equal employment opportunity without discrimination because of
race, creed, color, national origin, sex,  age,  disability  or  marital
status;
  (iv)  That the contractor will include the provisions of subparagraphs
(i) through (iii) of this paragraph in  every  subcontract  or  purchase
order  in  such  a manner that such provisions will be binding upon each
subcontractor or vendor as to its work in connection with  the  contract
with the agency.
  (b)  The  council shall establish appropriate measures, procedures and
guidelines to ensure that contractors and subcontractors undertake mean-
ingful programs to employ and promote qualified minority  group  members
[and],  women AND VETERANS.  Such procedures may require after notice in
a bid solicitation, the submission of a minority [and], women AND VETER-
ANS workforce utilization program prior to the award of any contract, or
at any time thereafter, and may require  the  submission  of  compliance
reports  relating  to  the operation and implementation of any workforce
utilization program adopted hereunder. The council may take  appropriate
action,  including  the  impositions  of sanctions for non-compliance to
effectuate the provisions of this  subdivision  and  the  monitoring  of
compliance with this subdivision.

A. 3056                            53

  (c)  (i)  In  the  performance  of  projects pursuant to this section,
minority [and women-owned], WOMEN AND VETERAN-OWNED business enterprises
shall  be  given  the  opportunity  for  meaningful  participation.  For
purposes  hereof,  minority  business enterprise shall mean any business
enterprise  which  is  at least fifty-one per centum owned by, or in the
case of a publicly owned business, at least fifty-one per centum of  the
stock  or  other voting interest is owned by citizens or permanent resi-
dent aliens who are Black, Hispanic,  Asian,  American  Indian,  Pacific
Islander,  or  Alaskan  native,  and  such  ownership  interest is real,
substantial and  continuing  and  has  the  authority  to  independently
control the day to day business decisions of the entity for at least one
year;  [and]  women-owned  business  enterprise  shall mean any business
enterprise which is at least fifty-one per centum owned by,  or  in  the
case  of a publicly owned business, at least fifty-one per centum of the
stock to other voting interests of which is owned by citizens or  perma-
nent resident aliens who are women, and such ownership interest is real,
substantial  and  continuing  and  has  the  authority  to independently
control the day to day business decisions of the entity for at least one
year AND VETERAN-OWNED  BUSINESS  ENTERPRISE  SHALL  MEAN  ANY  BUSINESS
ENTERPRISE  WHICH  IS  AT LEAST FIFTY-ONE PER CENTUM OWNED BY, OR IN THE
CASE OF A PUBLICLY OWNED BUSINESS, AT LEAST FIFTY-ONE PERCENTUM  OF  THE
STOCK  TO OTHER VOTING INTERESTS OF WHICH IS OWNED BY CITIZENS OR PERMA-
NENT RESIDENT ALIENS WHO ARE VETERANS, AND SUCH  OWNERSHIP  INTEREST  IS
REAL,  SUBSTANTIAL AND CONTINUING AND HAS THE AUTHORITY TO INDEPENDENTLY
CONTROL THE DAY TO DAY BUSINESS DECISIONS OF THE ENTITY FOR AT LEAST ONE
YEAR.
  The provisions of this subdivision shall not be construed to limit the
ability of any minority business enterprise to bid on any contract.
  (ii) In order to implement the requirements  and  objectives  of  this
section,  the  council  shall request, as appropriate, the assistance of
other  state  agencies  to  monitor  the  contractors'  compliance  with
provisions  hereof,  provide assistance in obtaining competing qualified
minority [and women-owned], WOMEN AND VETERAN-OWNED business enterprises
to perform contracts proposed to be awarded, and take other  appropriate
measures  to improve the access of minority [and women-owned], WOMEN AND
VETERAN-OWNED business enterprises to these contracts.
  S 33. Subdivision 33 of section 454 of the banking law, as amended  by
chapter 679 of the laws of 2003, is amended to read as follows:
  33. Notwithstanding any other provision of this article to the contra-
ry,  to  participate  in  the  minority - [and women-owned], WOMEN - AND
VETERAN-OWNED business development and lending program[, as  established
in section 16-c of section 1 of chapter 174 of the laws of 1968, consti-
tuting  the  urban development corporation act,] to the extent that such
program allows participation by credit unions.
  S 34. Section 52-0113 of the environmental conservation law, as  added
by chapter 512 of the laws of 1986, is amended to read as follows:
S 52-0113. Minority  [and women-owned], WOMEN AND VETERAN-OWNED business
             enterprise program.
  1. a. In the performance of projects pursuant to this article minority
[and women-owned], WOMEN AND VETERAN-OWNED business enterprises shall be
given the opportunity for meaningful participation.  The  department  or
the  office shall establish measures and procedures to secure meaningful
participation and identify those contracts and items of work  for  which
minority [and women-owned], WOMEN AND VETERAN-OWNED business enterprises
may  best  bid  to  actively  and affirmatively promote and assist their
participation in the projects, so as to facilitate the award of  a  fair

A. 3056                            54

share  of contracts to such enterprises; provided, however, that nothing
in this article shall be construed to limit the ability of  the  depart-
ment  or  office  to  assure  that qualified minority [and women-owned],
WOMEN  AND  VETERAN-OWNED  business  enterprises  may participate in the
program. For purposes hereof, minority business  enterprise  shall  mean
any business enterprise which is at least fifty-one per centum owned by,
or  in  the  case  of  a publicly owned business, at least fifty-one per
centum of the stock of which is owned by citizens or permanent  resident
aliens who are Black, Hispanic, Asian or American Indian, Pacific Islan-
der  or Alaskan natives and such ownership interest is real, substantial
and continuing and have the authority to independently control  the  day
to  day  business  decisions  of the entity for at least one year; [and]
women-owned business enterprise shall mean any business enterprise which
is at least fifty-one per centum owned by, or in the case of a  publicly
owned  business,  at least fifty-one per centum of the stock of which is
owned by citizens or permanent resident aliens who are women,  and  such
ownership  interest  is  real,  substantial  and continuing and have the
authority to independently control the day to day business decisions  of
the  entity  for at least one year AND VETERAN-OWNED BUSINESS ENTERPRISE
SHALL MEAN ANY BUSINESS ENTERPRISE  WHICH  IS  AT  LEAST  FIFTY-ONE  PER
CENTUM  OWNED  BY, OR IN THE CASE OF A PUBLICLY OWNED BUSINESS, AT LEAST
FIFTY-ONE PER CENTUM OF THE STOCK OF  WHICH  IS  OWNED  BY  CITIZENS  OR
PERMANENT  RESIDENT ALIENS WHO ARE VETERANS, AND SUCH OWNERSHIP INTEREST
IS REAL, SUBSTANTIAL AND CONTINUING AND HAVE THE AUTHORITY TO  INDEPEND-
ENTLY  CONTROL  THE  DAY  TO DAY BUSINESS DECISIONS OF THE ENTITY FOR AT
LEAST ONE YEAR.
  The provisions of this paragraph shall not be construed to  limit  the
ability  of  any minority [or women-owned], WOMEN OR VETERAN-OWNED busi-
ness enterprise to bid on any contract.
  b. In the implementation of this section, the department or the office
shall consider compliance by any contractor with the requirements of any
federal, state, or local  law  concerning  minority  [and  women-owned],
WOMEN  AND  VETERAN-OWNED business enterprises, which may effectuate the
requirements of this section. If the department or the office determines
that by virtue of the imposition of the requirements of any such law, in
respect to capital project contracts, the provisions  thereof  duplicate
or conflict with such law, the department may waive the applicability of
this section to the extent of such duplication or conflict.
  c.  Nothing  in  this  section shall be deemed to require that overall
state and  federal  requirements  for  participation  of  minority  [and
women-owned],  WOMEN  AND VETERAN-OWNED business enterprises in programs
authorized under this article be applied without regard to local circum-
stances to all projects or in all communities.
  2. In order to implement  the  requirements  and  objectives  of  this
section,  the  department  and  the office shall establish procedures to
monitor the contractors'  compliance  with  provisions  hereof,  provide
assistance  in obtaining competing qualified minority [and women-owned],
WOMEN  AND  VETERAN-OWNED  business  enterprises  to  perform  contracts
proposed  to  be awarded, and take other appropriate measures to improve
the access of minority [and women-owned], WOMEN AND VETERAN-OWNED  busi-
ness enterprises to these contracts.
  S  35. Section 957 of the general municipal law is amended by adding a
new subdivision (u) to read as follows:
   (U) "VETERAN-OWNED BUSINESS ENTERPRISE" SHALL HAVE THE  SAME  MEANING
AS PROVIDED IN SECTION THREE HUNDRED TEN OF THE EXECUTIVE LAW.

A. 3056                            55

  S  36.  Subdivisions  (a),  (g)  and (t) of section 959 of the general
municipal law, subdivision (a) as amended by section  2  of  part  R  of
chapter  57  of the laws of 2010 and subdivisions (g) and (t) as amended
by section 3 of part S1 of chapter 57 of the laws of 2009,  are  amended
to read as follows:
  (a)  After  consultation  with the director of the budget, the commis-
sioner of labor, and the commissioner of taxation and  finance,  promul-
gate  regulations, which, notwithstanding any provisions to the contrary
in the state administrative procedure act, may be adopted on an emergen-
cy basis, governing (i) criteria of eligibility for empire  zone  desig-
nation,  provided, however, that such criteria be approved by the direc-
tor of the budget; (ii) the application process; (iii) the certification
by the commissioner as to the eligibility of  business  enterprises  for
benefits  referred to in section nine hundred sixty-six of this article,
which shall be governed by criteria including, but not limited  to:  (1)
whether  the  business enterprise, if certified, is reasonably likely to
create new employment or prevent a loss of employment in the  zone,  (2)
whether  such  new  employment opportunities will be for individuals who
will perform a substantial part of their employment  activities  in  the
zone,  (3) whether certification will have the undesired effect of caus-
ing individuals to transfer from existing employment with another  busi-
ness  enterprise  to  similar employment with the business enterprise so
certified, and transferring existing employment from one or  more  other
municipalities, towns or villages in the state, or transferring existing
employment  from  one  or more other businesses in the zone, (4) whether
such enterprise is likely to enhance the economic climate of  the  zone,
(5)  whether  the  commissioner  of labor establishes that such business
enterprise, during the three years preceding the submission of an appli-
cation for certification, has engaged in a substantial  violation  or  a
pattern of violations of laws regulating unemployment insurance, workers
compensation,  public  work,  child labor, employment of minorities [and
women], WOMEN AND VETERANS, safety and health, or  other  laws  for  the
protection  of  workers as determined by final judgment of a judicial or
administrative proceeding; (6) whether such business meets the  require-
ments  of  the  cost benefit analysis as established in paragraph (p) of
section nine hundred fifty-seven of this article, and (7) if the commis-
sioner of labor establishes that the business enterprise has been  found
in  a criminal proceeding to have violated, in the previous three years,
any of the laws referred to in subparagraph five of  this  paragraph  or
regulations  promulgated  pursuant  to  such laws, the conditions of any
permit issued thereunder,  or  similar  statute,  regulation,  order  or
permit  condition  of  any other government agency, foreign or domestic,
such business shall not be certified; provided, however, that a business
enterprise that has shifted its operations, or  some  portions  thereof,
from  an  area within New York state not designated as an empire zone or
zone equivalent area to an area so designated shall not be certified  to
receive such benefits except where such shift is entirely within a muni-
cipality and has been approved by the local governing body of such muni-
cipality  or in situations where it has been established, after a public
hearing, that extraordinary circumstances exist which warrant the  relo-
cation  of  a  business, in whole or part, into an empire zone or a zone
equivalent area from another  municipality  and  the  municipality  from
which  the  business is relocating approves of such relocation; or where
such shift in operations is from a business incubator facility  operated
by  a municipality or by a public or private not-for-profit entity which
provides space and business support services to newly established firms;

A. 3056                            56

and (iv) the decertification by the commissioner, upon  the  recommenda-
tion  of the commissioner of labor, so as to revoke the certification of
business enterprises for benefits referred to in  section  nine  hundred
sixty-six  of this article with respect to an empire zone or zone equiv-
alent area upon a finding that the  business  enterprise  has  committed
substantial  violations  of laws for the protection of workers including
all federal, state and local labor laws, rules or regulations;  and  (v)
the  decertification  by  the  commissioner  so as to revoke the certif-
ication of business enterprises for benefits referred to in section nine
hundred sixty-six of this article with respect to an empire zone or zone
equivalent area upon a finding of any one  of  the  following:  (1)  the
business  enterprise  made  material  misrepresentations  of fact on its
application for certification or in any of its business annual  reports,
or  the  business enterprise failed to disclose facts in its application
for certification that  would  constitute  grounds  for  not  issuing  a
certification;  (2)  the  business  enterprise  has failed to construct,
expand, rehabilitate or operate or invest in its facility  substantially
in  accordance with the representations contained in its application for
certification; (3) the business enterprise  has  failed  to  create  new
employment  or  prevent  a loss of employment in the empire zone or zone
equivalent area; (4)  where  applicable,  the  business  enterprise  has
failed  to  submit  an  annual  report after it has applied for zone tax
benefits or program assistance based on  new  hires  or  investments  or
failed  to  submit  other  information when due; (5) the business enter-
prise, if first certified pursuant to this article prior  to  the  first
day  of  August,  two  thousand two, caused individuals to transfer from
existing employment with another business enterprise with similar owner-
ship and located in New York state to similar employment with the certi-
fied business enterprise  or  if  the  enterprise  acquired,  purchased,
leased,  or  had  transferred to it real property previously owned by an
entity with similar ownership, regardless of form  of  incorporation  or
organization; (6) the business enterprise has failed to provide economic
returns  to the state in the form of total remuneration to its employees
(i.e. wages and benefits) and investments in  its  facility  greater  in
value  to the tax benefits the business enterprise used and had refunded
to it; or (7) the business enterprise has changed ownership or moved its
operations out of the empire zone; said regulations shall  provide  that
whenever  any  business  enterprise  is  decertified  with respect to an
empire zone: (A) the date determined to be the earliest event constitut-
ing grounds for revoking certification shall be the  effective  date  of
decertification;  (B)  its certified single enterprise, if any, may also
be decertified; and (C) the commissioner shall notify  the  commissioner
of taxation and finance that such decertification has occurred, and such
notification  should  include the effective date of such decertification
and the zone or zone  equivalent  area  to  which  such  decertification
applies; with respect to any business enterprise whose certification has
been  revoked  pursuant  to  subparagraph five or six of this paragraph,
that revocation (I) will be effective for a taxable year beginning on or
after January first, two thousand eight and before  January  first,  two
thousand  nine  and  for  subsequent  taxable years, unless the business
enterprise is subsequently re-certified pursuant to part 11 of  title  5
of the New York state codes, rules and regulations for a business enter-
prise  for which a review is required to be conducted pursuant to subdi-
vision (w) of this section in calendar year two thousand nine, and  (II)
thereafter  will  be  effective  for  the  taxable year during which the
commissioner makes his or her determination (prior  to  any  appeal)  to

A. 3056                            57

revoke  the  certification  of  a business enterprise and for subsequent
taxable years;
  (g)  Coordinate,  with  the local empire zone administrative board and
state agencies and authorities, the provision  of  business  development
programs  and  services  for  each empire zone in order to stimulate the
creation and development of new small businesses,  including  new  small
minority-owned  [and],  women-owned  AND  VETERAN-OWNED  business enter-
prises, and may request and shall receive from any department, division,
board, bureau, commission, agency or public authority of the state  such
assistance as may be necessary;
  (t)  Coordinate with the urban development corporation the creation of
a special category of assistance for zones within the regional  economic
development  partnership  program,  which  will  make available economic
development assistance grants for zone programs and activities,  includ-
ing,  but  not  limited  to,  planning,  service coordination, and local
institutional capacity building for human resource development necessary
for economic revitalization; planning and development of small  business
incubators; job placement and preparedness programs for zones residents;
education and training programs for zone businesses; child care programs
and  projects  supportive  of business development; technical assistance
for minority [and women-owned], WOMEN AND VETERAN-OWNED business  devel-
opment;  training  for  zone officials; business and tourism development
and marketing programs; and other innovative programs and activities  in
support of economic and community development within the zones;
  S  37. Paragraphs (iii) and (xii) of subdivision (a) of section 963 of
the general municipal law, as amended by chapter 708 of the laws of 1993
and further amended by section 15 of part GG of chapter 63 of  the  laws
of 2000, are amended to read as follows:
  (iii)  undertake efforts to ensure meaningful participation by minori-
ty-owned [and women-owned], WOMEN AND VETERAN-OWNED business enterprises
in empire zone activities;
  (xii) provide within the zone, or contract  with  a  new  or  existing
community-based  local  development  corporation  or  entity to provide,
strategic economic development planning  for  the  zone,  marketing  and
promotion of the zone, assistance to companies in applying for available
benefits, preparation of applications for financing assistance and other
technical assistance services; coordination of the delivery of state and
local  programs  within  the zones; and operation of such other economic
development assistance programs in furtherance of the empire zone devel-
opment plan as may be appropriate. Provided, however, within the  amount
appropriated  therefor  and allocated by the director of the budget, the
commissioner, through annual administrative  contracts,  shall,  to  the
maximum  extent  feasible,  make  equally  available  financial support,
through contracts or other means,  to  assist  with  the  administrative
expenses  of  the  local  zone  administrative bodies or community-based
development organizations. No funds shall be  made  available  for  this
purpose  unless the amount to be provided has been matched by private or
governmental sources, other than state  sources,  in  amounts  at  least
equalling that to be provided by the state. Such matching funds shall be
earmarked  and used exclusively for the local administration of the zone
program or for activities of the zone program. At least fifty percent of
such matching funds shall be in cash, provided that the commissioner may
waive this requirement for communities with populations  of  twenty-five
thousand  or  less, and provided, further, that any amounts appropriated
for minority [and women-owned], WOMEN AND VETERAN-OWNED business  devel-

A. 3056                            58

opment  within the zones shall be distributed by the commissioner pursu-
ant to a competitive proposal solicitation process.
  S  38. Subdivision (c) of section 964 of the general municipal law, as
amended by chapter 708 of the  laws  of  1993  and  further  amended  by
section  15  of part GG of chapter 63 of the laws of 2000, is amended to
read as follows:
  (c) Each empire zone capital corporation shall, to the maximum  extent
feasible, undertake measures and procedures to ensure meaningful partic-
ipation  by minority-owned [and], women-owned AND VETERAN-OWNED business
enterprises in the activities and investments of such corporation.  Each
such  corporation  shall  additionally,  to the maximum extent feasible,
undertake measures and procedures to ensure meaningful participation  by
locally  owned business enterprises in the activities and investments of
such corporation.
  S 39. Subparagraph 7 of paragraph f of subdivision 3 of section  970-r
of the general municipal law, as amended by section 1 of part F of chap-
ter 577 of the laws of 2004, is amended to read as follows:
  (7)  the  financial  commitments the applicant will make to the brown-
field opportunity area for activities including,  but  not  limited  to,
marketing  of the area for business development, human resource services
for residents and businesses in the  brownfield  opportunity  area,  and
services  for  small [and], minority [and women-owned], WOMEN AND VETER-
AN-OWNED businesses.
  S 40. Section 3 of section 1 of chapter  174  of  the  laws  of  1968,
constituting  the  New  York state urban development corporation act, is
amended by adding a new subdivision 31 to read as follows:
  (31) "VETERAN BUSINESS ENTERPRISE". A BUSINESS ENTERPRISE WHICH IS  AT
LEAST FIFTY-ONE PERCENT OWNED, OR IN THE CASE OF A PUBLICITY-OWNED BUSI-
NESS  AT  LEAST  FIFTY-ONE  PERCENT  OF THE COMMON STOCK OR OTHER VOTING
INTERESTS OF WHICH IS OWNED, BY  UNITED  STATES  CITIZENS  OR  PERMANENT
RESIDENT  ALIENS  WHO ARE VETERANS, REGARDLESS OF RACE OR ETHNICITY, AND
SUCH OWNERSHIP INTEREST IS REAL, SUBSTANTIAL  AND  CONTINUING  AND  SUCH
VETERANS  HAVE  AND  EXERCISE THE AUTHORITY TO INDEPENDENTLY CONTROL THE
DAY TO DAY BUSINESS DECISIONS OF THE ENTERPRISES.
  S 41. The second undesignated paragraph of subdivision 1 of section 12
of section 1 of chapter 174 of the laws of 1968,  constituting  the  New
York  state  urban development corporation act, as added by section 1 of
part EE of chapter 60 of the  laws  of  2011,  is  amended  to  read  as
follows:
  The empire state new market corporation, a community development enti-
ty  certified  by the United States Department of the Treasury Community
Development Financial Institutions Fund and a  corporate  subsidiary  of
the  corporation,  by resolution, may direct any of its directors, offi-
cers, or employees to  form  limited  liability  companies  pursuant  to
section 203 of the limited liability company law for the sole purpose of
certifying  and  performing as community development entities that would
be eligible to receive an  allocation  of  tax  credits  under  the  new
markets  tax credit program.  No limited liability company formed pursu-
ant to this section shall merge or consolidate.  Each limited  liability
company  shall act solely in relation to projects selected by the corpo-
ration, or a corporate  subsidiary  of  the  corporation.  Each  limited
liability  company  shall  be  empowered to receive an allocation of tax
credits from a federal allocation to the  corporation,  or  a  corporate
subsidiary  of the corporation, under the new markets tax credit program
and to do any other act or things incidental to or  connected  with  the
foregoing  purposes  or  in advancement thereof.   The corporation, or a

A. 3056                            59

corporate subsidiary of the corporation, shall be the managing member of
each limited liability company created by the corporation. In  determin-
ing  which projects to allocate tax credits to under the new markets tax
credit  program, the corporation shall prioritize projects demonstrating
one or more of the following goals or benefits:  (a) creating or retain-
ing jobs in low income communities;  (b)  increasing  the  provision  of
goods and services for low income community residents which would other-
wise  not  be  available  at  the  same price or quality; (c) supporting
minority [and women-owned], WOMEN AND VETERAN-OWNED or controlled  busi-
nesses;  (d)  expanding  housing  opportunities for low income community
persons; (e) supporting environmentally sustainable  outcomes;  and  (f)
supporting efforts that otherwise benefit low income community residents
by  leveraging  further  investment  in  their  communities.    Provided
further, such projects shall  be  limited  to  projects  that  would  be
authorized  under this act and shall be subject to approval by the board
of the urban development corporation.   The  corporation  shall  publish
information regarding the process used to select projects to receive the
new markets tax credits and provide a copy to the temporary president of
the  senate,  the  speaker  of  the assembly, the minority leader of the
senate and the minority leader of the assembly.  The  corporation  shall
strive for regional diversity in the allocation of tax credits under the
new  markets  tax credit program.   The corporation shall include in the
information required to be submitted annually  in  accordance  with  the
provisions  of  subdivision  1 of section 2800 of the public authorities
law information regarding assistance provided by it  or  its  subsidiary
under  the  new  markets tax credit program, and shall provide financial
information with respect to any subsidiary administering the program  in
the  corporation's  financial  reports,  including its certified audited
financial statements.
  S 42. Paragraph (c) of subdivision 9 of section 16-a of section  1  of
chapter  174  of the laws of 1968, constituting the New York state urban
development corporation act, as amended by chapter 477 of  the  laws  of
2002, is amended to read as follows:
  (c)  of  minority [or women-owned], WOMEN OR VETERAN-OWNED enterprises
or enterprises owned by dislocated workers, such workers as  defined  in
the Workforce Investment Act (P.L. 105-220); and
  S  43.  Section  16-c of section 1 of chapter 174 of the laws of 1968,
constituting the New York state urban development  corporation  act,  as
added  by  chapter  169 of the laws of 1994, subdivision 1 as amended by
section 1 of part AA of chapter 55 of the laws  of  2014,  and  subpara-
graphs (i) and (ii) of paragraph (a) of subdivision 2 as further amended
by  section  15 of part GG of chapter 63 of the laws of 2000, is amended
to read as follows:
  S 16-c. Minority- [and women-owned], WOMEN- AND VETERAN-OWNED business
development and lending program.
  (1) Minority- [and women-owned],  WOMEN-  AND  VETERAN-OWNED  business
development  and lending program.  (a) There is hereby created a minori-
ty- [and women-owned], WOMEN- AND VETERAN-OWNED business development and
lending program for the purpose of  providing  financial  and  technical
assistance  to  minority  [and  women-entrepreneurs],  WOMEN AND VETERAN
ENTREPRENEURS.
  (b) For the purposes of this section  the  following  words  or  terms
shall mean as follows:
  (i)  "minority-owned business enterprise" or "minority-owned business"
shall mean the same as "minority  business  enterprise"  as  defined  in

A. 3056                            60

subdivision three of section two hundred ten of the economic development
law.
  (ii) "women-owned business enterprise" or "women-owned business" shall
mean  the same as "women-owned business enterprise" as defined in subdi-
vision five of section two hundred ten of the economic development law.
  (iii) "VETERAN-OWNED BUSINESS ENTERPRISE" OR "VETERAN-OWNED  BUSINESS"
SHALL MEAN THE SAME AS "VETERAN-OWNED BUSINESS ENTERPRISE" AS DEFINED IN
SUBDIVISION SEVEN OF SECTION TWO HUNDRED TEN OF THE ECONOMIC DEVELOPMENT
LAW.
  (IV) "incubator" shall mean a facility providing low-cost space, tech-
nical  assistance  and  support services, including, but not limited to,
central services shared by tenants of the facility,  to  minority-  [and
women-owned], WOMEN- AND VETERAN-OWNED business enterprises.
  (c) Assistance shall not be provided under this section for:
  (i)  the  purchase  or rehabilitation of real property for speculative
purposes;
  (ii) payment of any tax or employee benefit arrearage;
  (iii)   residential   construction,    renovation    or    development
construction, except for assistance to minority [and], women AND VETERAN
contractors under subdivision four of this section;
  (iv)  educational institutions and proprietary education firms, except
licensed child care facilities;
  (v) hospitals or residential health care facilities;
  (vi) overnight lodging facilities;
  (vii) refinancing of debt or  equity  invested  in  an  enterprise  or
project.
  (d) The corporation is authorized to:
  (i)  establish  programs  in  conjunction  with locally, and community
based entities to decentralize lending for  small  loans  and  loans  to
start  up  minority-  [and  women-owned], WOMEN- AND VETERAN-OWNED busi-
nesses;
  (ii) establish a comprehensive program for minority [and],  women  AND
VETERAN contractors, which may include assistance through loans, bonding
assistance and technical assistance;
  (iii)  establish  a  program to provide loans to established minority-
[and women-owned], WOMEN- AND VETERAN-OWNED businesses and for minority-
[and women-owned], WOMEN- AND VETERAN-OWNED businesses, including  loans
to such businesses seeking to acquire or expand a franchise;
  (iv) provide loan guarantees to financial institutions and make linked
deposits  into  federally  and  state  chartered  credit  unions for the
purpose of encouraging private financial institutions to make  loans  to
minority- [and women-owned], WOMEN- AND VETERAN-OWNED businesses;
  (v)  establish a program to create incubators to assist small and high
risk minority- [and women-owned], WOMEN- AND VETERAN-OWNED businesses to
grow and prosper;
  (vi) promote equity investment in minority- [and women-owned],  WOMEN-
AND VETERAN-OWNED businesses; [and]
  (vii)  establish a comprehensive technical assistance program in coop-
eration with the department of economic development to assist  minority-
[and  women-owned],  WOMEN-  AND  VETERAN-OWNED businesses and potential
[minority and women-entrepreneurs] MINORITY-, WOMEN- AND  VETERAN-ENTRE-
PRENEURS; and
  (viii) notwithstanding any provision of law to the contrary, establish
a minority- [and women-owned], WOMEN- AND VETERAN-OWNED business invest-
ment  fund  to provide critical financial support to foster the develop-
ment of new and emerging ideas and products  of  minority-  [and  women-

A. 3056                            61

owned],  WOMEN-  AND  VETERAN-OWNED  business  enterprises as well as to
promote the long-term financial performance and success of  early  stage
enterprises   that   are   minority-   [and   women-owned],  WOMEN-  AND
VETERAN-OWNED  start-ups.  The  selection  of  an eligible applicant and
beneficiary companies for the minority- [and  women-owned],  WOMEN-  AND
VETERAN-OWNED  business investment fund shall be selected by the process
established  pursuant  to  subdivisions  two  through  four  of  section
sixteen-u   of   this   act.  Minority-  [or  women-owned],  WOMEN-  AND
VETERAN-OWNED business enterprises who  participate  in  such  minority-
[and  women-owned],  WOMEN-  AND  VETERAN-OWNED business investment fund
under this subdivision shall not be precluded from  qualifying  for  any
other assistance, grant or loan made available from the state.
  (2)  Minority  [and], women AND VETERAN revolving loan trust fund. For
the purpose of establishing programs in  conjunction  with  locally  and
community  based  entities  to  decentralize lending for small loans and
loans to start up minority- [and women-owned], WOMEN- AND  VETERAN-OWNED
businesses,  the  corporation  shall establish minority [and], women AND
VETERAN revolving loan trust fund accounts  and  related  administrative
expenses trust fund accounts.
  (a)  Each  minority [and], women AND VETERAN revolving loan trust fund
account shall be administered by one or more of the following  types  of
entities  that  provide services to community businesses and have as one
of their primary purposes the provision of services  and  assistance  to
minority- [and women-owned], WOMEN- AND VETERAN-OWNED businesses:
  (i)  empire  zone capital corporations established pursuant to section
nine hundred sixty-four of the general municipal law;
  (ii) community-based  local  development  corporations  or  industrial
development  agencies  that serve a municipality in which an empire zone
has been established pursuant  to  article  eighteen-B  of  the  general
municipal  law and have as their primary purpose assistance to minority-
[and women-owned], WOMEN- AND VETERAN-OWNED businesses located or to  be
located in such empire zone; or
  (iii)  local and community development corporations, industrial devel-
opment agencies, or other not-for-profit entities, representative of the
community.
  (b) To be eligible to administer a minority [and], women  AND  VETERAN
revolving  loan trust fund account, the entity must also: (i) have staff
with sufficient expertise to analyze applications for financial  assist-
ance,  to  regularly  monitor  financial  assistance  to clients, and to
provide management or technical assistance to  clients;  and  (ii)  have
established a loan committee composed of six or more persons experienced
in  business  management,  commercial  lending  or in the operation of a
for-profit business, at least one-half of whom shall be  experienced  in
commercial  lending,  at  least [one-third] ONE-QUARTER of whom shall be
minority persons and at least [one-third] ONE-QUARTER of whom  shall  be
women  AND  AT  LEAST  ONE-QUARTER OF WHOM SHALL BE VETERANS.  Such loan
committee shall review every application, determine the  feasibility  of
the  proposed  project  and the likelihood of repayment of the requested
financing and shall recommend to the governing body of the  entity  such
action  on  the application as the loan committee deems appropriate. The
corporation shall identify entities eligible to administer minority  and
women revolving loan trust fund accounts through a competitive statewide
request for proposal process.
  (c)  Any  entity  selected  to  administer a minority [and], women AND
VETERAN revolving loan trust fund account  shall  be  eligible  to  draw
funds  from  the  account  as  needed  to provide the following types of

A. 3056                            62

financial assistance to minority- [and women-owned], WOMEN-  AND  VETER-
AN-OWNED  businesses  upon certification to and acceptance by the corpo-
ration that such assistance complies with rules and regulations  promul-
gated  by  the corporation: (i) working capital loans, provided that the
amount of the loan does not exceed thirty-five thousand dollars and  the
term  of  the  loan  does  not exceed five years; and (ii) loans for the
acquisition and/or improvement of real property and for the  acquisition
of machinery and equipment provided that the amount of the loan does not
exceed  fifty  thousand dollars and the term of the loan does not exceed
the useful life of the equipment or property.
  (d) (i) Notwithstanding any provision of  law  to  the  contrary,  the
corporation  may establish an administrative expenses trust fund account
for the benefit of each entity selected to administer a minority  [and],
women AND VETERAN revolving loan trust fund account. The initial deposit
of  funds  to  an administrative expenses trust fund account shall be an
amount determined by the corporation but shall  not  exceed  twenty-five
thousand dollars.
  (ii)  An  entity  selected  to  administer a minority [and], women AND
VETERAN revolving loan trust fund account  may  use  the  funds  in  the
administrative  expenses  trust fund account for costs incurred by it in
the start up and administration  of  the  financial  assistance  program
authorized pursuant to this subdivision.
  (iii)  The corporation shall deposit into each administrative expenses
trust fund account:
  (A) all income earned from the moneys on deposit in the  corresponding
minority  [and],  women  AND  VETERAN  revolving loan trust fund account
during the first year of the entity's administration  of  said  account;
and
  (B)  beginning with its second year in administering a minority [and],
women AND VETERAN revolving loan trust fund account, said amounts may be
used for costs incurred by the  entity  in  administering  the  minority
[and], women AND VETERAN revolving loan trust fund account; and
  (C) repayments of interest on loans made from the corresponding minor-
ity [and], women AND VETERAN revolving loan trust fund account.
  (iv)  Funds from the administrative expenses trust fund account may be
used for costs incurred at any time by an administering  entity  in  its
administration  of  a  minority  [and], women AND VETERAN revolving loan
trust fund account pursuant to this section.
  (v) Funds deposited in an administrative expenses trust  fund  account
shall be disbursed by the corporation to the entity that administers the
corresponding  minority  [and],  women  AND VETERAN revolving loan trust
fund account on a periodic basis and shall be expended by the entity  in
accordance  with  an  annual budget and any updates of same, approved by
the corporation.
  (e) Any entity selected to administer  a  minority  [and],  women  AND
VETERAN  revolving  loan trust fund account shall pay to the corporation
for deposit any repayments received in connection with financial assist-
ance provided from its account. Payments consisting of the repayment  of
the  principal  amount  of  a loan shall be deposited by the corporation
into the minority [and], women AND VETERAN  revolving  loan  trust  fund
account  from which the loan was made. The interest earned by the corpo-
ration from the investment of moneys in each minority [and],  women  AND
VETERAN  revolving  loan  trust fund account during and after the second
year of a selected entity's administration  of  said  account  shall  be
deposited  by  the  corporation  into  the corresponding minority [and],
women AND VETERAN revolving loan trust fund account and used to  provide

A. 3056                            63

the  financial  assistance  to  minority-  [and women-owned], WOMEN- AND
VETERAN-OWNED businesses as authorized pursuant to this section.
  (f)  The  provisions of subdivisions eight, nine, and fourteen through
nineteen of section sixteen-a of this act  pertaining  to  the  regional
revolving  loan  trust  fund  shall  also  be applicable to the minority
[and], women AND VETERAN revolving loan trust fund, provided that: where
the term "regional corporation" appears therein it shall be  interpreted
to  mean  an  entity  selected to administer a minority [and], women AND
VETERAN revolving loan trust fund account, and "regional revolving loans
trust fund" shall mean a minority [and],  women  AND  VETERAN  revolving
loan  trust  fund,  and where the term "this section" appears therein it
shall mean this section sixteen-c.
  (g) The corporation may provide funds from an  appropriation  for  the
minority-  [and women-owned], WOMEN- AND VETERAN-OWNED business develop-
ment and lending program to any entity selected to administer a minority
[and], women AND VETERAN revolving loan trust fund for the  purposes  of
recapitalizing  such  account and the entity's corresponding administra-
tive expenses trust fund account following an evaluation by  the  corpo-
ration of the entity's administration and use of such accounts.
  (h)  Notwithstanding  any provision of law to the contrary, the corpo-
ration shall establish a minority [and],  women  AND  VETERAN  revolving
loan  trust  fund to pay into such fund any moneys made available to the
corporation for such fund from any source, including moneys appropriated
by the state and any income earned by, or increment to, the account  due
to  the investment thereof, or any repayment of moneys advanced from the
fund.  The corporation shall not commingle the moneys of such fund  with
any  moneys  held  in  trust  by  the corporation, except for investment
purposes.
  (3) Micro-loan program. (a)  For  the  purposes  of  this  subdivision
"micro-loan"  shall  mean  a  loan  of under seven thousand five hundred
dollars.
  (b) The corporation shall, pursuant to requests for  proposals,  enter
into  agreements  for  other  types  of locally, community or regionally
administered loan programs than those set forth in  subdivision  two  of
this  section, including micro-loan programs to be administered by local
development corporations, local  industrial  development  organizations,
municipalities  and not-for-profit organizations, to provide micro-loans
to small and high risk minority- [and women-owned], WOMEN- AND  VETERAN-
OWNED businesses located within their respective service areas, provided
that  loan review committees are established by such administering enti-
ty, including women, VETERANS and minority persons experienced in  busi-
ness management, business development, commercial lending, entrepreneur-
ship, or in the operation of a for-profit business.
  (c) Agreements entered into pursuant to paragraph (b) of this subdivi-
sion  shall be governed by paragraphs (d) through (h) of subdivision two
of this section, and minority [and], women AND  VETERAN  revolving  loan
trust  fund  accounts  and  administrative  expenses trust fund accounts
shall be established in a  similar  fashion  for  entities  selected  to
administer micro-loan funds pursuant to this subdivision.
  (4)  Minority  [and],  women  AND VETERAN contracting program. For the
purpose of establishing  a  comprehensive  program  to  assist  minority
[and], women AND VETERAN contractors, the corporation may provide loans,
loan guarantees, technical assistance and bonding assistance, the corpo-
ration  may  enter  into  cooperative  agreements with cities, counties,
municipalities, authorities, agencies,  federally  and  state  chartered

A. 3056                            64

credit  unions in New York state and federally insured banking organiza-
tions and financial institutions for such purposes.
  (a)  To  be  eligible  for  a  contractor loan, the borrower must have
either (i) a construction contract with, or a contract to provide  goods
or  services  to, a governmental entity or authority, (ii) a subcontract
on a government-sponsored construction contract,  (iii)  a  contract  or
subcontract  on  a  government  sponsored residential project, or (iv) a
contract or subcontract on a construction project previously approved by
the corporation pursuant to section ten of this act.
  (b) The corporation shall provide  technical  assistance  specifically
oriented   to   [minority   and   women-owned]   MINORITY-,  WOMEN-  AND
VETERAN-OWNED government contractors as part of its comprehensive  tech-
nical assistance program.
  (c)  The  corporation  is authorized to provide assistance through the
creation of, or assistance to, a minority [and], women AND VETERAN bond-
ing guarantee program  to  enable  minority  [and],  women  AND  VETERAN
contractors  and  subcontractors  to meet payment or performance bonding
requirements.
  (i) Through such program, assistance in the form  of  working  capital
loans  and  loan  guarantees pursuant to subdivision six of this section
may also be provided to minority [and], women  AND  VETERAN  contractors
and  subcontractors  who  have secured contracts by participating in the
program.
  (ii) The corporation shall either establish criteria for  the  bonding
guarantee  program and for any required escrow funds which shall include
detailed provisions for eligibility; or if the corporation is  providing
assistance  to  a program other than one established by the corporation,
review and approve the criteria established for such other program.
  (5) Direct  financial  assistance  for  minority-  [and  women-owned],
WOMEN-  AND  VETERAN-OWNED businesses. For the purpose of establishing a
program to provide direct financial assistance to minority- [and  women-
owned],  WOMEN- AND VETERAN-OWNED businesses, the corporation is author-
ized to provide assistance in the form of:
  (a) Business development loans and loan guarantees pursuant to  subdi-
vision  six  of this section to eligible enterprises for the acquisition
or improvement of real property, machinery, equipment or  working  capi-
tal,  provided  that to be eligible for a business development loan, the
borrowers must have been in  business  for  at  least  three  years  and
provided  that  the  loans must be in an amount equal to or in excess of
fifty thousand dollars;
  (b) Franchise loans to eligible  enterprises  seeking  to  acquire  or
expand  franchises  of nationally recognized corporations, provided that
disbursements by the corporation of such loans shall be  conditioned  on
obtaining such franchises;
  (c)  Equity assistance for eligible [minority and women-owned] MINORI-
TY-, WOMEN- AND VETERAN-OWNED enterprises to match equity  contributions
to  such enterprises by financial institutions and community development
equity capital funds, provided, however, that such assistance  shall  be
targeted  to  start-up and early stage enterprises in the manufacturing,
retail and service sectors located in economically distressed areas.
  (6) Deposits and loan  guarantees.  For  the  purpose  of  encouraging
private  financial  institutions  to  make loans to eligible enterprises
pursuant to this section for any of the eligible  projects  pursuant  to
subdivisions  four  and five of this section, the corporation is author-
ized to:

A. 3056                            65

  (a) Make linked deposits of funds into federally and  state  chartered
credit  unions  in  New York state, in order to encourage such organiza-
tions to make small  loans  to  [minority  and  women-owned]  MINORITY-,
WOMEN- AND VETERAN-OWNED businesses; and
  (b)  Provide  loan  guarantees  to  private financial institutions for
loans made to eligible minority- [and women-owned], WOMEN- AND  VETERAN-
OWNED  businesses  pursuant  to  this subdivision for eligible projects,
provided that the guarantee shall be at least fifty  percent  backed  by
funds  of  the  corporation. Any such loan guaranteed by the corporation
shall be made to borrowers that are  approved  by  the  corporation  and
substantially  meet the underwriting criteria the credit union or finan-
cial institution customarily applies to similar  borrowers  for  similar
loans  supported  by  similar  guarantees,  and no guaranteed loan funds
shall be disbursed until the  corporation  has  received,  reviewed  and
concurred,  in  writing,  with the recommendation of the credit union or
banking or financial institution to make a loan.
  (7)  Minority  [and],  women  AND  VETERAN  small  business  incubator
program. (a) The corporation shall establish a minority [and], women AND
VETERAN  small  business  incubator program for the purpose of providing
financial support for the creation of incubators  to  nurture  [minority
and  women-owned]  MINORITY-,  WOMEN-  AND VETERAN-OWNED business enter-
prises with growth potential.
  (b) Under this subdivision the corporation is  authorized  to  provide
low-interest  loans  and grants for construction financing and permanent
financing of up to seventy-five percent of project costs up to a maximum
of six hundred fifty thousand dollars per  project,  provided  that  the
total  amount  of  grant  assistance provided pursuant to this paragraph
shall not exceed twenty percent of an  appropriation  provided  for  the
purposes of this section.
  (c)  Incubator projects eligible for such assistance shall involve the
renovation or reconstruction of existing facilities or  the  acquisition
of  equipment,  except  that construction shall be allowable in cases in
which an applicant can demonstrate to the  satisfaction  of  the  corpo-
ration that an existing facility is unavailable in the area to be served
by the new incubator facility.
  (d)  Incubator  projects  are  not  eligible  to receive loans for the
purpose of covering  operating  costs  or  supplying  incubator  support
services, except that incubators in their first eighteen months of oper-
ation  may receive one-time grants not to exceed forty thousand dollars,
which costs may include administrative costs  of  employing  a  resident
administrator/advisor  to  the  incubator, provided that the corporation
shall not expend a sum greater than two hundred fifty  thousand  dollars
in  any  one state fiscal year, or so much as may be specifically appro-
priated for this purpose.
  (e) Eligible incubator projects shall be required  to  demonstrate  to
the corporation's satisfaction:
  (i)  public  or private support and involvement sufficient to complete
the renovation of existing facilities or the construction of new facili-
ties and the acquisition of equipment;
  (ii) significant community support for the project;
  (iii) the existence of prospective tenants for such incubator space;
  (iv) demand for such incubator space, which may  include  evidence  of
the  unavailability  of suitable space for prospective tenants at appro-
priate rental or lease costs in the community in which such  prospective
tenants are located; and

A. 3056                            66

  (v) the inability of the project to occur without financial assistance
from the corporation.
  (f) The corporation shall establish criteria for eligibility for fund-
ing for incubator projects, including but not limited to the following:
  (i) the project must be designed to provide low-cost space and support
services  to  incubator  tenants,  coordination  with  other  sources of
assistance and flexible leasing arrangements for tenants;
  (ii) the project sponsors must provide a management plan and  a  busi-
ness  plan  for operating the incubator satisfactory to the corporation;
and
  (iii) the project gives preference for incubator space and  assistance
to  minority-  [and  women-owned],  WOMEN-  AND VETERAN-OWNED businesses
which currently receive, or have received, assistance  from  the  corpo-
ration pursuant to this section and to incubator projects proposed to be
located in economically distressed areas.
  (8)  Minority-  [and  women-owned],  WOMEN- AND VETERAN-OWNED business
technical assistance program. (a)  The  corporation  shall  establish  a
comprehensive  technical  assistance  program within the minority [and],
women AND VETERAN business development office, in cooperation  with  the
department  of  economic development's division of minority- [and women-
business], WOMEN- AND VETERAN-BUSINESS development established  pursuant
to  article four-A of the economic development law, to provide technical
assistance to minority-  [and  women-owned],  WOMEN-  AND  VETERAN-OWNED
business  enterprises and to prospective minority- [and women-business],
WOMEN- AND VETERAN-BUSINESS entrepreneurs through  third  party  service
providers,  which  assistance  shall include, but not be limited to: (i)
technical assistance in development and  execution  of  business  plans,
including the formation of, acquisition of, management of, or diversifi-
cation of a minority- [or women-owned], WOMEN- OR VETERAN-OWNED business
enterprise;  (ii)  technical  assistance with applications for obtaining
funds from public and private financing sources; (iii) technical assist-
ance in the development of a working capital budget; (iv)  referrals  to
other  providers of technical assistance to minority- [and women-owned],
WOMEN- AND VETERAN-OWNED businesses and minority [and], women AND VETER-
AN  entrepreneurs,  where  appropriate,  including  the  entrepreneurial
assistance  program established pursuant to article nine of the economic
development law; and (v) technical assistance through education programs
directed primarily at women , VETERAN and minority entrepreneurs.
  (b) Technical assistance may  be  provided  through  direct  corporate
support,  through  grants  to  or  contracts  with  service providers or
governmental entities,  and  minority-  [and  women-owned],  WOMEN-  AND
VETERAN-OWNED business enterprises and individuals.
  (9)  Priorities.  The  corporation shall give priority to applications
for assistance pursuant to this section in which  the  business  seeking
such  assistance indicates a commitment to first consider persons eligi-
ble to participate in federal job training partnership act (P.L. 97-300)
programs.
  (10) Non-application of certain provisions. The provisions of  section
ten  and  subdivision two of section sixteen of this act shall not apply
to assistance or projects authorized pursuant to this section.
  (11) Rules and regulations. The corporation  shall,  assisted  by  the
commissioner  of  economic  development  and  in  consultation  with the
department of economic development, promulgate rules and regulations  in
accordance  with  the state administrative procedure act. Such rules and
regulations shall be consistent with the program plan required by subdi-
vision nineteen of section one hundred of the economic development  law.

A. 3056                            67

No  funds  shall  be  disbursed  under this program until such rules and
regulations have been reviewed and  approved  by  the  corporation.  All
assistance  and  projects  funded  under this program shall be funded in
accordance  with  the  rules  and  regulations in effect on the date the
completed application for such  assistance  shall  be  received  by  the
corporation.
  (12)  Minority [and], women AND VETERAN business development and lend-
ing account.  Notwithstanding any provision of law to the contrary,  the
corporation  shall  establish  within  the treasury of the corporation a
minority [and], women  AND  VETERAN  business  development  and  lending
account,  and  shall  pay into such account any moneys which may be made
available to the corporation for this purpose from any source including,
but not limited to, moneys appropriated by the state and  any  repayment
of  principal  and interest on loans made by the corporation pursuant to
the minority-  [and  women-owned],  WOMEN-  AND  VETERAN-OWNED  business
development  and lending program. Funds in the minority [and], women AND
VETERAN business development and lending account, including  funds  from
the  repayment  of  principal  and  interest on loans made by the corpo-
ration, may be used for any form of assistance authorized hereunder. The
amounts deposited in the minority  [and],  women  AND  VETERAN  business
development  and  lending account may not be interchanged with any other
account, but may be commingled with any  other  account  for  investment
purposes.  All  loans  disbursed by the corporation shall be repaid into
the account. The corporation shall enter into a written  agreement  with
the  director  of  the budget for repayment, to the state comptroller to
the credit of the capital projects fund, of all moneys  in  the  account
after  a  period  of  time  to  be determined by the corporation and the
director of the budget.  The corporation shall transfer to the  minority
[and],  women  AND VETERAN business development and lending account: all
moneys appropriated or reappropriated by New York state for the minority
[and], women AND VETERAN revolving loan trust fund that  have  not  been
committed  prior  to  the  effective  date  of the appropriation for the
program in the current fiscal year, or become uncommitted subsequent  to
the effective date of the program's appropriation for the current fiscal
year;  and all repayments of principal and interest on loans made by the
corporation which are currently on deposit in, or payable to, the minor-
ity [and], women AND VETERAN business development and lending account.
  (13) Standardization. The corporation shall streamline the review  and
approval  process  for  projects  and  wherever possible standardize all
relevant attendant documentation and legal documents.
  (14) Approval cycle. The corporation shall approve eligible  loans  or
grants  on at least a four-month cycle and shall give priority consider-
ation to the comparative degree of economic distress within the areas in
which the project is located. Other factors  to  be  considered  by  the
corporation  shall  include  the impact of the project on the employment
and economic condition of the community and the financial feasibility of
the project.
  (15) Repayment. Notwithstanding the provisions of section  forty-a  of
the  state  finance law and any other general or special law, no written
agreement under this program shall require repayment at any time  or  on
any  terms  inconsistent with the provisions of this act or the New York
state project finance agency act; except, however, that the  corporation
may  make  grants  to projects using funds appropriated for this purpose
and that the repayment provision may not apply to such grants.
  (16) Reports. The chairman of the  corporation  shall  submit  to  the
director  of  the  budget, the speaker of the assembly and the temporary

A. 3056                            68

president of the senate  an  evaluation  of  the  effectiveness  of  the
program prepared by an entity independent of the corporation. The corpo-
ration shall select the program evaluator through a request for proposal
process. Such evaluation shall determine whether the assistance provided
has  enhanced  the  economic condition of assisted companies or communi-
ties, and shall make recommendation for improvements  which  would  make
the  program  more  effective.  Such  evaluation  shall  be submitted by
September first, nineteen hundred ninety-five and September first  every
two years thereafter.
  S  44.  Subparagraphs (viii) and (x) of paragraph (e) of subdivision 7
of section 16-d of section 1 of chapter 174 of the laws of 1968, consti-
tuting the New York state urban development corporation act, as added by
chapter 169 of the laws of 1994, are amended to read as follows:
  (viii) export, marketing, procurement and subcontracting assistance to
small  and  medium-sized  industrial  firms,  including  minority-  [and
women-owned], WOMEN- AND VETERAN-OWNED businesses, and to flexible manu-
facturing  networks,  and  programs  to assist regional and multi-county
business marketing and procurement programs;
  (x) business  planning,  management  assistance  and  counseling,  and
financial  packaging  assistance  to  small  and medium-sized industrial
firms, including minority- [and women-owned], WOMEN-  AND  VETERAN-OWNED
businesses,  flexible  manufacturing  networks,  and new enterprises and
small businesses,  including  the  establishment  of  neighborhood-based
business  service  centers  designed  to deliver comprehensive technical
assistance to new and  small  businesses  in  specific  communities  and
neighborhoods;
  S  45.  Subparagraph (ii) of paragraph (h) of subdivision 7 of section
16-d of section 1 of chapter 174 of the laws of 1968,  constituting  the
New  York  state  urban development corporation act, as added by chapter
169 of the laws of 1994, is amended to read as follows:
  (ii) support for business development projects of  women,  members  of
minority groups, VETERANS or dislocated workers;
  S 46. Clause (B) of subparagraph (i) of paragraph (h) of subdivision 8
of section 16-d of section 1 of chapter 174 of the laws of 1968, consti-
tuting the New York state urban development corporation act, as added by
chapter  169 of the laws of 1994 and as further amended by section 15 of
part GG of chapter 63 of the  laws  of  2000,  is  amended  to  read  as
follows:
  (B)  community based local development corporations, industrial devel-
opment agencies, or other not-for-profit entities which serve a  munici-
pality in which an empire zone has been established and which, as one of
their  primary  purposes,  provide  services  and assistance to business
enterprises located or to be located  in  such  empire  zone,  including
minority- [and women-owned], WOMEN- AND VETERAN-OWNED businesses;
  S 47.  Paragraph (b) of subdivision 14 of section 16-d of section 1 of
chapter  174  of the laws of 1968, constituting the New York state urban
development corporation act, as added by chapter  169  of  the  laws  of
1994, is amended to read as follows:
  (b)  Submit to the director of the budget, the speaker of the assembly
and the temporary president of the senate an evaluation  of  the  effec-
tiveness  of  the urban and community development program prepared by an
entity independent of the corporation. The corporation shall select  the
program  evaluator  through  a request for proposal process. Such evalu-
ation shall discuss the variety and types of programs supported  by  the
corporation under this program; and, as appropriate, the extent to which
the  program has served to create and maintain jobs; the extent to which

A. 3056                            69

the program has helped to increase the vitality  of  local  communities;
the  extent to which the program is coordinated with other related state
and local assistance programs; the extent to which  the  program  serves
minorities  [and],  women  AND VETERANS; the extent to which the program
serves urban and rural areas; the extent to  which  the  program  serves
economically distressed and highly distressed areas; the extent to which
the program has helped to increase the capacity of local governments and
organizations  to  undertake  economic  development activities; and such
other components as the commissioner of economic development shall  deem
appropriate; and shall make recommendations for improvements which would
make  the  program more effective. Such evaluation shall be submitted by
September first, nineteen hundred ninety-five  and  by  September  first
every two years thereafter.
  S  48.  Paragraph (h) of subdivision 1 of section 16-e of section 1 of
chapter 174 of the laws of 1968, constituting the New York  state  urban
development  corporation  act,  as  added  by chapter 169 of the laws of
1994, is amended to read as follows:
  (h) "Revolving loan fund account grants" shall include: (i) grants  to
provide the local match for federally funded community-based loan funds;
(ii) grants to capitalize and recapitalize regional revolving loan trust
fund  accounts  pursuant  to  section  sixteen-a  of this act; and (iii)
grants to recapitalize minority [and], women AND VETERAN revolving  loan
trust  fund  accounts  established pursuant to section sixteen-c of this
act.
  S 49.  Subparagraph (i) of paragraph (c) of subdivision 5  of  section
16-e  of  section 1 of chapter 174 of the laws of 1968, constituting the
New York state urban development corporation act, as  added  by  chapter
169 of the laws of 1994, is amended to read as follows:
  (i)  business development by women, minorities, VETERANS or unemployed
persons;
  S 50.  Subparagraphs (vi) and (ix) of paragraph (c) of subdivision  10
of section 16-e of section 1 of chapter 174 of the laws of 1968, consti-
tuting the New York state urban development corporation act, as added by
chapter 169 of the laws of 1994, are amended to read as follows:
  (vi)  management and procurement assistance to small business, includ-
ing minority- [and women-owned], WOMEN- AND VETERAN-OWNED businesses;
  (ix) assistance to expand the capacity of existing  entities  adminis-
tering minority [and], women AND VETERAN revolving loan funds to deliver
services;
  S  51.   Subdivision 13 of section 16-e of section 1 of chapter 174 of
the laws of 1968, constituting the  New  York  state  urban  development
corporation act, as added by chapter 169 of the laws of 1994, is amended
to read as follows:
  (13)  Regional  loan fund account grants. Assistance from this program
may be provided for grants of up to five  hundred  thousand  dollars  to
capitalize,  and  up  to  two  hundred thousand dollars to recapitalize,
regional revolving loan trust  fund  accounts  established  pursuant  to
section  sixteen-a of this act and up to two hundred thousand dollars to
recapitalize minority [and], women AND VETERAN revolving loan trust fund
accounts established pursuant to section sixteen-c of this act;  and  up
to two hundred thousand dollars to provide the local match for appropri-
ately federally-financed community-based loan funds.
  S  52. Paragraph (d) of subdivision 18 of section 16-e of section 1 of
chapter 174 of the laws of 1968, constituting the New York  state  urban
development  corporation  act,  as  added  by chapter 169 of the laws of
1994, is amended to read as follows:

A. 3056                            70

  (d) The participation  of  minority-  [and  women-owned],  WOMEN-  AND
VETERAN-OWNED businesses;
  S  53.    Subdivision 1 of section 16-f of section 1 of chapter 174 of
the laws of 1968, constituting the  New  York  state  urban  development
corporation act, as added by chapter 169 of the laws of 1994, is amended
to read as follows:
  (1)  Program created.  There is hereby created a state bonding guaran-
tee assistance program to enable small  businesses,  and  minority-owned
[and],  women-owned AND VETERAN-OWNED business enterprises, certified as
a minority-owned [or], women-owned OR VETERAN-OWNED business  enterprise
pursuant  to  article  fifteen-A  of  the executive law, to meet payment
and/or performance bonding requirements by providing  additional  finan-
cial  backing  needed  to  induce  a  surety company to issue a bond for
construction projects, including but not limited  to,  government  spon-
sored,  transportation  related  construction  projects. For purposes of
this section, the term small business shall have  the  same  meaning  as
defined  in  section  one hundred thirty-one of the economic development
law. Such program shall give preference to minority-owned [and],  women-
owned AND VETERAN-OWNED business enterprises and shall:
  (a)  Make available funds to surety companies providing bonds to small
businesses and  [minority-  owned  or]  MINORITY-OWNED,  women-owned  OR
VETERAN-OWNED  business  enterprises  in an amount equal to a percentage
not to exceed fifty percent of the face value of  bonds  issued  by  the
surety.
  (b)  Provide  technical  assistance in completing bonding applications
for  small  businesses   and   minority-owned   [or],   women-owned   OR
VETERAN-OWNED  business enterprises seeking to become eligible for bond-
ing in preparation  for  bidding  on  construction  projects,  including
transportation  related  projects. The corporation shall provide and may
refer such businesses to the  department  of  economic  development  for
technical  assistance  as  such  businesses  may need, including but not
limited to:
  (i) a review of the applicants' market and business competitive strat-
egy;
  (ii) consultation and review of the development and planned  implemen-
tation of a working capital budget;
  (iii)  assistance  with  applications  for the receipt of funding from
other financial sources and providing  referrals  to  other  appropriate
public and private sources of financing; and
  (iv) assistance from the regional offices of the department of econom-
ic  development,  pursuant to article eleven of the economic development
law, and the entrepreneurial assistance  program,  pursuant  to  article
nine  of such law, and any other such program receiving state funds from
this act or the department of economic development or  any  other  state
agency  that  is intended to provide technical assistance to small busi-
nesses and minority-owned [and],  women-owned  AND  VETERAN-OWNED  small
business enterprises.
  S  54.  Paragraph (g) of subdivision 1 of section 16-i of section 1 of
chapter 174 of the laws of 1968, constituting the New York  state  urban
development  corporation  act,  as amended by chapter 471 of the laws of
2001, is amended to read as follows:
  (g) Assistance  to  local  or  regional  organizations  to  facilitate
financing  for  small-  and  medium-sized  business, including minority-
[and], women-owned AND VETERAN-OWNED business enterprises through flexi-
ble financing programs, including, but not limited to, loan loss reserve
and revolving loan programs, working capital loans, working capital loan

A. 3056                            71

guarantees, or other flexible financing programs  that  leverage  tradi-
tional financing;
  S  55.  Subparagraph  (i) of paragraph (c) of subdivision 2 of section
16-k of section 1 of chapter 174 of the laws of 1968,  constituting  the
New  York state urban development corporation act, as amended by chapter
103 of the laws of 2011, is amended to read as follows:
  (i) provide a plan to the corporation or its agent for  the  marketing
of  the  capital  access program to small businesses, including those in
highly distressed areas and to minority- [and], women-owned  AND  VETER-
AN-OWNED  businesses,  with appropriate lending objectives identified by
the financial institution for such areas and businesses;
  S 56. Subparagraph (i) of paragraph (e) of subdivision  2  of  section
16-l  of  section 1 of chapter 174 of the laws of 1968, constituting the
New York state urban development corporation act, as  added  by  chapter
471 of the laws of 2001, is amended to read as follows:
  (i) innovative activities and programs designed to encourage value-ad-
ded  small  business  development  and  growth in rural areas, including
cottage and  crafts  industries;  group  marketing  of  local  products;
women-owned  industries;  VETERAN-OWNED  INDUSTRIES;  natural  resources
development; and  tourism.  Such  activities  and  programs  shall  also
include  projects pertaining to agriculture and agribusiness development
to stimulate the development and implementation of new  and  alternative
production, processing, storage, distribution and marketing technologies
and  improvements  for  New York food, agricultural and forest products.
Projects promoting strengthened farm management practices shall also  be
eligible for assistance;
  S  57.  Paragraph (g) of subdivision 1 of section 16-m of section 1 of
chapter 174 of the laws of 1968, constituting the New York  state  urban
development  corporation act, as added by section 1 of part N of chapter
84 of the laws of 2002, is amended to read as follows:
  (g) Assistance  to  local  or  regional  organizations  to  facilitate
financing  for  small-  and  medium-sized  business, including minority-
[and], women-owned AND VETERAN-OWNED business enterprises through flexi-
ble financing programs, including, but not limited to, loan loss reserve
and revolving loan programs, working capital loans, working capital loan
guarantees, or other flexible financing programs  that  leverage  tradi-
tional financing;
  S  58.  Subparagraph  (i) of paragraph (e) of subdivision 7 of section
16-o of section 1 of chapter 174 of the laws of 1968,  constituting  the
New  York  state  urban development corporation act, as added by chapter
186 of the laws of 2007, is amended to read as follows:
  (i) provide jobs for low income people or  are  owned  by  low  income
people, women, VETERANS or minority entrepreneurs; or
  S  59.  Paragraph (b) of subdivision 1 of section 16-q of section 1 of
chapter 174 of the laws of 1968, constituting the New York  state  urban
development corporation act, as added by section 2 of part QQ of chapter
57 of the laws of 2008, is amended to read as follows:
  (b)  Support for the attraction or expansion of a business, including,
but not limited to, those primarily engaged in activities identified  as
a  strategic  industry, and minority-owned [and], women-owned AND VETER-
AN-OWNED business enterprises as defined by subdivisions (c) and (g)  of
section nine hundred fifty-seven of the general municipal law.
  S  60.  Subdivisions  3 and 11 of section 16-t of section 1 of chapter
174 of the laws of 1968, constituting the New York state urban  develop-
ment  corporation  act, as amended by section 1 of part II of chapter 59
of the laws of 2013, are amended to read as follows:

A. 3056                            72

  3. Program loans to small businesses shall be targeted and marketed to
[minority and women-owned] MINORITY-, WOMEN-  AND  VETERAN-OWNED  enter-
prises  and  other small businesses that are having difficulty accessing
traditional credit markets. Program loans to small businesses  shall  be
used  for  the  creation and retention of jobs, as defined by the corpo-
ration, including: (a)  working  capital;  (b)  the  acquisition  and/or
improvement  of  real  property;  (c)  the  acquisition of machinery and
equipment, property or improvement; or (d) the refinancing of debt obli-
gations. There shall be two categories of loans to small  businesses:  a
micro  loan that shall have a principal amount that is less than twenty-
five thousand dollars and a regular loan that  shall  have  a  principal
amount  not  less  than twenty-five thousand dollars. Prior to receiving
program funds, the lending organization must certify to the  corporation
that  such  loan  complies  with  this section and rules and regulations
promulgated for the  program  and  that  the  lending  organization  has
performed  its  obligations  pursuant  to and is in compliance with this
section, the program rules and regulations and  all  agreements  entered
into  between  the corporation and the lending organization. The program
funds amount used by the lending organization to fund a  program  appli-
cant  loan  shall not be more than fifty percent of the principal amount
of such loan. The program funds amount used by the lending  organization
to  fund  a program applicant loan shall not be greater than one hundred
and twenty-five thousand dollars. Minority-  [and  women-owned],  WOMEN-
AND  VETERAN-OWNED  business  enterprises and other small businesses who
access such program loans under this subdivision shall not be  precluded
from  accessing  such short-term financing loans provided under subdivi-
sion eleven of this section.
  11. Notwithstanding anything to the  contrary  in  this  section,  the
corporation  may  provide  at  least  five  hundred  thousand dollars in
program funds pursuant to this section to lending organizations for  the
purpose  of  making  short-term  financing  available  to minority- [and
women-owned], WOMEN- AND VETERAN-OWNED business  enterprises  and  other
small businesses performing contracts to provide construction or profes-
sional services for state procurement purposes. Such loans shall be used
to underwrite the cost of labor, materials, and equipment directly asso-
ciated  with  (1) the contract being financed or (2) a contract that has
been satisfied for which the  business  is  awaiting  payment  from  the
state. The program funds amount used by the lending organization to fund
a  program  applicant  loan shall not be more than eighty percent of the
principal amount of such loan. The program  funds  amount  used  by  the
lending  organization  to  fund  a  program  applicant loan shall not be
greater than one hundred twenty-five thousand  dollars.  Minority-  [and
women-owned],  WOMEN-  AND  VETERAN-OWNED business enterprises and other
small businesses who access such short-term financing loans  under  this
subdivision  shall  not  be  precluded from accessing such program loans
provided under subdivision three of this section.
  S 61. Subparagraph (xvi) of paragraph (b) of subdivision 2 of  section
16-v  of  section 1 of chapter 174 of the laws of 1968, constituting the
New York state urban development corporation act, as added by section  1
of  part  C  of  chapter  59  of the laws of 2013, is amended to read as
follows:
  (xvi) a plan to recruit minority- [and women-owned], WOMEN- AND VETER-
AN-OWNED businesses for location and participation  with  the  incubator
program.
  S  62.  Paragraph  1  of subdivision (c) of section 30 of section 1 of
chapter 174 of the laws of 1968, constituting the New York  state  urban

A. 3056                            73

development  corporation  act,  as amended by chapter 732 of the laws of
1990, is amended to read as follows:
  (1) In addition to any other requirements imposed by the act or other-
wise  regarding evaluations of programs administered by the corporation,
each evaluation shall include an analysis of the job creation effect  of
such  program,  the number of small businesses that received assistance,
the number of [minority and women-owned] MINORITY-, WOMEN- AND  VETERAN-
OWNED  firms that received assistance, the number of projects undertaken
in distressed and highly distressed communities, and, if applicable, the
repayment experience of borrowers of funds from the corporation.
  S 63. Paragraph 2 of subdivision (e) of section 30-a of section  1  of
chapter  174  of the laws of 1968, constituting the New York state urban
development corporation act, as added by section 2 of part M1 of chapter
62 of the laws of 2003, is amended to read as follows:
  (2) require projects to be financed out of the empire  state  economic
development fund be approved generally in amounts which are proportional
to amounts appropriated for the urban and community development program,
and  the  [minority  and women-owned] MINORITY-, WOMEN AND VETERAN-OWNED
business development and lending program;
  S 64. Section 38 of section 1 of chapter 174  of  the  laws  of  1968,
constituting  the  New  York state urban development corporation act, as
amended by chapter 169 of the laws  of  1994,  is  amended  to  read  as
follows:
  S  38. Small business and minority-owned [and], women-owned AND VETER-
AN-OWNED business  enterprises  transportation  capital  assistance  and
guaranteed  loan  program.  1.  To provide financial assistance to small
business and minority-owned [and], women-owned AND  VETERAN-OWNED  busi-
ness enterprises engaged in government sponsored, transportation related
construction  projects, the corporation shall establish a small business
and minority-owned [and], women-owned AND VETERAN-OWNED business  enter-
prise  transportation capital assistance revolving loan fund which shall
provide loans or loan guarantees to small  business  and  minority-owned
[and], women-owned AND VETERAN-OWNED business enterprises.  For purposes
of this section: (a) the term small business shall have the same meaning
as defined in section one hundred thirty-one of the economic development
law  and  (b)  the  term project shall mean a project of state agency or
authority that sponsors transportation related construction projects and
participates in this program and any  definition  of  project  contained
elsewhere in this act shall not apply.
  2.  Such  loans,  or  loan  guarantees for loans made by federally and
state chartered credit institutions, financial institutions, and  feder-
ally  insured banking organizations to small business and minority-owned
[and], women-owned AND VETERAN-OWNED business enterprises, shall be used
to (a) enable such  businesses,  through  the  acquisition,  leasing  or
improvement  of  real  property,  machinery or equipment, or through the
provision  of  working  capital  to   secure   service,   commodity   or
construction  contracts;  (b) restore working capital to such businesses
which have successfully  completed  work  under  a  contract  but  whose
liquidity has been adversely affected by problems resulting from delayed
payments;  and  (c)  ensure the completion of the work associated with a
governmental service, commodity or construction  contract  in  order  to
prevent default on such contract.
  3.  (a) To be eligible for such loans or loan guarantees (i) a minori-
ty-owned [or], women-owned OR VETERAN-OWNED business enterprise must  be
certified  as  a minority-owned [or], women-owned OR VETERAN-OWNED busi-
ness enterprise pursuant to article 15-A of the executive law; and  (ii)

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a  small business or a minority-owned [or], women-owned OR VETERAN-OWNED
business enterprise shall have a contract  or  sub-contract  to  provide
goods  or  services  related  to  a government sponsored, transportation
related construction project.
  (b)  Only  such  business enterprises referred to the corporation by a
written application of a state agency or authority that sponsors  trans-
portation  related  construction  projects shall be eligible for program
assistance. Such assistance shall be provided to such an enterprise only
in connection with its performance as a contractor or sub-contractor  on
a  specific  transportation  related  project of the referring agency or
authority. In order for such an agency or authority to refer such enter-
prises to the corporation, such agency or authority shall enter  into  a
master  agreement  with the corporation covering procedures and require-
ments for providing program assistance. The corporation shall  determine
whether or not to approve such an agency's or authority's written appli-
cation  for program assistance to such a business within twenty business
days of the corporation's receipt of such application.  If  it  approves
the application, the corporation will provide assistance pursuant to the
applicable master agreement.
  4.  The  corporation  shall  give  preference to minority-owned [and],
women-owned AND VETERAN-OWNED business enterprises in making such  loans
and  loan  guarantees  and shall establish such other criteria as it may
deem necessary for this program and for any required amount  that  shall
be held in reserve for any guarantees made under this program.
  5. Notwithstanding any inconsistent provision of law, general, special
or  local,  including pursuant to capital projects budget appropriations
or reappropriations, where applicable, the corporation is hereby author-
ized to enter into such agreements as may be necessary for the operation
and administration of a small business and minority-owned [and],  women-
owned  AND  VETERAN-OWNED  business  enterprises  transportation capital
assistance and guaranteed loan program.
  6. The corporation is authorized to establish a  revolving  loan  fund
account  into  which  funds  may be received and from which funds may be
expended for the aforementioned purposes.
  7. The provisions of  section  ten  and  subdivision  two  of  section
sixteen  of  this  act shall not apply to assistance provided under this
program.
  S 65. Paragraph (a) of subdivision 1 of section 9-a of  section  1  of
chapter  359 of the laws of 1968 constituting the facilities development
corporation act, as added by chapter 58 of the laws of 1987, is  amended
to read as follows:
  (a)  The  contractor will not discriminate against employees or appli-
cants for employment because of race,  creed,  color,  national  origin,
sex,  age, disability, or marital status, and will undertake or continue
existing programs of affirmative action to ensure  that  minority  group
persons [and], women AND VETERANS are afforded equal opportunity without
discrimination.  Such  programs  shall  include,  but not be limited to,
recruitment, employment, job assignment, promotion, upgrading, demotion,
transfer, layoff, termination, rates of pay or other  forms  of  compen-
sation, and selections for training or retraining, including apprentice-
ship and on-the-job training.
  S  66.  Section  9-b  of  section 1 of chapter 359 of the laws of 1968
constituting the facilities development corporation  act,  as  added  by
chapter 58 of the laws of 1987, is amended to read as follows:
  S  9-b.  Minority  [and women-owned], WOMEN AND VETERAN-OWNED business
enterprise program. 1. (a) Minority [and women-owned], WOMEN AND  VETER-

A. 3056                            75

AN-OWNED  business  enterprises shall be given the opportunity for mean-
ingful participation in all contracts executed by the corporation pursu-
ant to the provisions of this act other than contracts the cost of which
is  borne  solely  by  a municipality or municipalities. The corporation
shall establish measures and procedures  to  secure  meaningful  partic-
ipation and identify those contracts and items of work for which minori-
ty  [and  women-owned], WOMEN AND VETERAN-OWNED business enterprises may
best bid to actively and affirmatively promote and assist their  partic-
ipation  in  the projects, so as to facilitate the award of a fair share
of contracts to such enterprises; provided,  however,  that  nothing  in
this  act  shall be construed to limit the ability of the corporation to
assure  that   qualified   minority   [and   women-owned],   WOMEN   AND
VETERAN-OWNED  business  enterprises may participate in the program. For
purposes hereof, minority business enterprise shall  mean  any  business
enterprise  which  is  at least fifty-one per centum owned by, or in the
case of a publicly owned business, at least fifty-one per centum of  the
stock of which is owned by citizens or permanent resident aliens who are
Black,  Hispanic,  Asian or American Indian, Pacific Islander or Alaskan
natives and such ownership interest is real, substantial and  continuing
and  have the authority to independently control the day to day business
decisions of the entity for at least one year; and women-owned  business
enterprise  shall  mean any business enterprise which is at least fifty-
one per centum owned by, or in the case of a publicly owned business, at
least fifty-one per centum of the stock of which is owned by citizens or
permanent resident aliens who are women, and such ownership interest  is
real, substantial and continuing and have the authority to independently
control the day to day business decisions of the entity for at least one
year;  AND  VETERAN-OWNED  BUSINESS  ENTERPRISE  SHALL MEAN ANY BUSINESS
ENTERPRISE WHICH IS AT LEAST FIFTY-ONE PER CENTUM OWNED BY,  OR  IN  THE
CASE  OF A PUBLICLY OWNED BUSINESS, AT LEAST FIFTY-ONE PER CENTUM OF THE
STOCK OF WHICH IS OWNED BY CITIZENS OR PERMANENT RESIDENT ALIENS WHO ARE
VETERANS, AND SUCH OWNERSHIP INTEREST IS REAL, SUBSTANTIAL AND  CONTINU-
ING AND HAVE THE AUTHORITY TO INDEPENDENTLY CONTROL THE DAY TO DAY BUSI-
NESS DECISIONS OF THE ENTITY FOR AT LEAST ONE YEAR.
  The  provisions  of this paragraph shall not be construed to limit the
ability of any minority [or women-owned], WOMEN OR  VETERAN-OWNED  busi-
ness enterprise to bid on any contract.
  (b)  In  the  implementation  of  this  section, the corporation shall
consider compliance by any  contractor  with  the  requirements  of  any
federal,  state,  or  local  law  concerning minority [and women-owned],
WOMEN OR VETERAN-OWNED business enterprises, which  may  effectuate  the
requirements  of  this  section.  If  the corporation determines that by
virtue of the imposition of the requirements of any such law, in respect
to contracts, the provisions thereof duplicate  or  conflict  with  this
section,  the corporation may waive the applicability of this section to
the extent of such duplication or conflict.
  (c) Nothing in this section shall be deemed to  require  that  overall
state  and  federal  requirements  for  participation  of  minority [and
women-owned], WOMEN AND VETERAN-OWNED business enterprises  in  programs
authorized  under  this  act  be applied without regard to local circum-
stances to all projects or in all communities.
  2. In order to implement  the  requirements  and  objectives  of  this
section,  the  corporation  shall  establish  procedures  to monitor the
contractors' compliance with provisions hereof,  provide  assistance  in
obtaining  competing  qualified  minority  [and  women-owned], WOMEN AND
VETERAN-OWNED business enterprises to perform contracts proposed  to  be

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awarded,  and  take  other appropriate measures to improve the access of
minority [and women-owned], WOMEN AND VETERAN-OWNED business enterprises
to these contracts.
  S  67.  Paragraph  a  of subdivision 1 of section 16-a of section 1 of
chapter 392 of the laws of 1973, constituting the New York state medical
care facilities finance agency act, as added by chapter 58 of  the  laws
of 1987, is amended to read as follows:
  a.  The  contractor  will not discriminate against employees or appli-
cants for employment because of race,  creed,  color,  national  origin,
sex,  age, disability, or marital status, and will undertake or continue
existing programs of affirmative action to ensure  that  minority  group
persons [and], women AND VETERANS are afforded equal opportunity without
discrimination.  Such  programs  shall  include,  but not be limited to,
recruitment, employment, job assignment, promotion, upgrading, demotion,
transfer, layoff, termination, rates of pay or other  forms  of  compen-
sation, and selections for training or retraining, including apprentice-
ship and on-the-job training.
  S  68.  Section  16-b of section 1 of chapter 392 of the laws of 1973,
constituting the New York state medical care facilities  finance  agency
act,  as  added by chapter 58 of the laws of 1987, is amended to read as
follows:
  S 16-b. Minority [and women-owned], WOMEN AND  VETERAN-OWNED  business
enterprise  program.  1.  a.  In the performance of projects pursuant to
this act minority [and women-owned], WOMEN  AND  VETERAN-OWNED  business
enterprises shall be given the opportunity for meaningful participation.
The  agency shall establish measures and procedures to secure meaningful
participation and identify those contracts and items of work  for  which
minority [and women-owned], WOMEN AND VETERAN-OWNED business enterprises
may  best  bid  to  actively  and affirmatively promote and assist their
participation in the projects, so as to facilitate the award of  a  fair
share  of contracts to such enterprises; provided, however, that nothing
in this act shall be construed to limit the ability  of  the  agency  to
assure   that   qualified   minority   [and   women-owned],   WOMEN  AND
VETERAN-OWNED business enterprises may participate in the  program.  For
purposes  hereof,  minority  business enterprise shall mean any business
enterprise which is at least fifty-one per centum owned by,  or  in  the
case  of a publicly owned business, at least fifty-one per centum of the
stock of which is owned by citizens or permanent resident aliens who are
Black, Hispanic, Asian or American Indian, Pacific Islander  or  Alaskan
natives  and such ownership interest is real, substantial and continuing
and have the authority to independently control the day to day  business
decisions  of the entity for at least one year; and women-owned business
enterprise shall mean any business enterprise which is at  least  fifty-
one per centum owned by, or in the case of a publicly owned business, at
least fifty-one per centum of the stock of which is owned by citizens or
permanent  resident aliens who are women, and such ownership interest is
real, substantial and continuing and have the authority to independently
control the day to day business decisions of the entity for at least one
year; AND VETERAN-OWNED BUSINESS  ENTERPRISE  SHALL  MEAN  ANY  BUSINESS
ENTERPRISE  WHICH  IS  AT LEAST FIFTY-ONE PER CENTUM OWNED BY, OR IN THE
CASE OF A PUBLICLY OWNED BUSINESS, AT LEAST FIFTY-ONE PER CENTUM OF  THE
STOCK OF WHICH IS OWNED BY CITIZENS OR PERMANENT RESIDENT ALIENS WHO ARE
VETERANS AND SUCH OWNERSHIP INTEREST IS REAL, SUBSTANTIAL AND CONTINUING
AND  HAVE THE AUTHORITY TO INDEPENDENTLY CONTROL THE DAY TO DAY BUSINESS
DECISIONS OF THE ENTITY FOR AT LEAST ONE YEAR.

A. 3056                            77

  The provisions of this paragraph shall not be construed to  limit  the
ability  of  any minority [or women-owned], WOMEN OR VETERAN-OWNED busi-
ness enterprise to bid on any contract.
  b.  In  the  implementation of this section, the agency shall consider
compliance by any contractor  with  the  requirements  of  any  federal,
state,  or  local  law  concerning minority [and women-owned], WOMEN AND
VETERAN-OWNED business enterprises, which may  effectuate  the  require-
ments  of  this section. If the department or the office determines that
by virtue of the imposition of the requirements  of  any  such  law,  in
respect  to contracts, the provisions thereof duplicate or conflict with
this act, the agency may waive the applicability of this section to  the
extent of such duplication or conflict.
  c.  Nothing  in  this  section shall be deemed to require that overall
state and  federal  requirements  for  participation  of  minority  [and
women-owned],  WOMEN  AND VETERAN-OWNED business enterprises in programs
authorized under this act be applied without  regard  to  local  circum-
stances to all projects or in all communities.
  2.  In  order  to  implement  the  requirements and objectives of this
section, the agency shall establish procedures to monitor  the  contrac-
tors' compliance with provisions hereof, provide assistance in obtaining
competing  qualified minority [and women-owned], WOMEN AND VETERAN-OWNED
business enterprises to perform contracts proposed to  be  awarded,  and
take  other  appropriate measures to improve the access of minority [and
women-owned], WOMEN AND  VETERAN-OWNED  business  enterprises  to  these
contracts.
  S  69.  This  act shall take effect on the sixtieth day after it shall
have become a law; provided however,
  a. the amendments to  article  15-A  of  the  executive  law  made  by
sections  one-a,  two,  three,  three-a,  four, five, six, seven, eight,
nine, ten, eleven, twelve and thirteen of this act shall not affect  the
expiration of such article and shall expire therewith;
  b.  the amendments to the second undesignated paragraph of subdivision
1 of section 12 of section 1 of chapter 174 of the laws of 1968, consti-
tuting the New York state urban development  corporation  act,  made  by
section forty-one of this act shall not affect the expiration and repeal
of  such  paragraph and shall be deemed to expire and be repealed there-
with;
  c. the amendments to paragraph (g) of subdivision 1 of section 16-i of
section 1 of chapter 174 of the laws of 1968, constituting the New  York
state  urban  development corporation act, made by section fifty-four of
this act shall not affect the expiration of such paragraph and shall  be
deemed to expire therewith.