Enacts the "Service Disabled Veteran-Owned Business Act"; develops a comprehensive plan and operational guidelines to promote service-disabled veteran-owned business enterprises.
Ayes (60): Addabbo, Avella, Ball, Bonacic, Boyle, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Espaillat, Farley, Felder, Flanagan, Gallivan, Gianaris, Gipson, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Hoylman, Kennedy, Klein, Krueger, Lanza, Larkin, Latimer, LaValle, Libous, Little, Marcellino, Marchione, Martins, Maziarz, Montgomery, Nozzolio, O'Brien, O'Mara, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Sanders, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousins, Tkaczyk, Valesky, Young, Zeldin
Absent (1): Sampson
TITLE OF BILL: An act to amend the executive law, in relation to expanding opportunities for service-disabled veteran-owned business enterprises; and providing for the repeal of certain provisions upon expiration thereof
Purpose: This bill would establish a program to increase participation of "Service-Disabled Veteran-Owned Business Enterprises" in State contracting as a significant step in expanding economic opportunity for veterans to share in the economy and productivity which they have bravely helped to defend.
Summary of Provisions:
Section 1 of the bill would provide for the legislative findings and would name this act the "Service-Disabled Veteran - Owned Business Act."
Section 2 of the bill would amend the Executive Law by adding a new Article 17-B, "Participation By Service-Disabled Veterans with Respect to State Contracts" comprised of several sections:
* Section 369-h, which would define "Certified Service-Disabled Veteran-Owned Business Enterprise", "Commissioner", "Director", "Division", "Service-Disabled Veteran", "State Agency", "State Contract" and "Veteran";
* Section 369-i, which would establish the Division of Service-Disabled Veterans' Business Development (the "Division") with a Director within the Office of General Services ("OGS") and outline the duties and responsibilities of the Director of the Division and Commissioner of OGS. Additionally, this section would provide that certification for Certified Service-Disabled Veteran-Owned Business Enterprise shall be for a period of five years;
* Section 369-j, which would require the Director to promulgate rules and regulations to operate a statewide service-disabled veteran-owned business enterprise program and provide for the following: (i) statewide performance measures and procedures, (ii) assistance to State Agencies in identifying State Contracts for which goals for participation should be set, (iii) attainment of a statewide goal of 6% for participation on State Contracts by Certified Service-Disabled Veteran-Owned Business Enterprises, (iv) certification and decertification of firms, (v) monitoring and compliance of State Contracts, (vi) reporting requirements, (vii) reservation of certain State Contracts for Certified Service-Disabled Veteran-Owned Business Enterprises and (vii) submission of annual reports concerning the Service-Disabled Veteran-Owned Business Enterprise program to the Governor, the Temporary President of the Senate and the Speaker of Assembly; and
* Severability provisions.
Section 3 of the bill would amend the definitions of "Minority-Owned Business Enterprise" and "Women-Owned Business Enterprise" to ensure
the inclusion of limited liability companies in the Minority-Women Business Enterprise Program.
Section 4 of the bill would provide for the bill to take effect immediately.
Existing Law: None.
Justification: New York is home to more than 900,000 veterans, 72 percent of whom have served in combat. Approximately 88,000 New Yorkers served in Afghanistan or Iraq. Additionally, New York State is home to approximately 30,000 active duty military personnel, as well as 30,000 National Guard and Reserve personnel.
Even though New York has the fourth-highest number of veteran-owned small businesses in the country, returning veterans lag in reintegrating into the economy. These men and women have risked their lives and, in many cases, have often suffered physical and mental health impairments in the course of protecting our freedoms and our way of life. As they work assiduously to readjust to civilian life, it is incumbent upon the State to assist them in reintegrating back into our economy.
Every year, the State procures billions of dollars in goods and services for the benefit of the people of New York. The expansion of economic opportunity through the significant purchasing power of the State is a significant way to honor Service-Disabled Veterans for their honorable service to our country and to help reintegrate them back into the State's economy. This legislation, announced as part of the Governor's first ever "Veterans and Military Families Summit" works towards establishing a 6 percent goal in the awarding of State contracts to service-disabled veteran-owned small businesses.
If enacted, this bill would help Certified Service-Disabled Veteran-Owned Business Enterprises grow and inspire budding entrepreneurs coming home from conflicts abroad to start new businesses that will be on the forefront of New York's economic revitalization.
Legislative History: This is a new bill.
Budget Implications: This bill would have no fiscal impact on the State budget.
Effective Date: The provisions of this bill would take effect immediately and expire on March 31, 2019.
STATE OF NEW YORK ________________________________________________________________________ S. 6865 A. 9135 S E N A T E - A S S E M B L Y March 20, 2014 ___________IN SENATE -- Introduced by Sen. BALL -- (at request of the Governor) -- read twice and ordered printed, and when printed to be committed to the Committee on Rules IN ASSEMBLY -- Introduced by M. of A. ORTIZ, BENEDETTO, ENGLEBRIGHT, SILVER, RUSSELL, MORELLE, HOOPER, NOLAN, SWEENEY, CUSICK, LUPARDO, SCHIMEL, DenDEKKER, MILLER, BRINDISI, RYAN, BARRETT, SANTABARBARA, ABBATE, ABINANTI, BRONSON, CLARK, CRESPO, DINOWITZ, FAHY, GUNTHER, HENNESSEY, MAGNARELLI, MARKEY, MCDONALD, ROBERTS, SCARBOROUGH, SCHIM- MINGER, SIMANOWITZ, SKARTADOS, SKOUFIS, STECK, STIRPE, WEISENBERG, ZEBROWSKI, O'DONNELL, THIELE, ARROYO -- Multi-Sponsored by M. of A. -- FARRELL, MOSLEY -- (at the request of the Governor) -- read once and referred to the Committee on Governmental Operations AN ACT to amend the executive law, in relation to expanding opportu- nities for service-disabled veteran-owned business enterprises; and providing for the repeal of certain provisions upon expiration thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Legislative findings. New York state (the "state") is home to more than 900,000 veterans, seventy-two percent of whom have served during periods of conflict. Additionally, the state is home to approxi- mately 30,000 active duty military personnel as well as 30,000 national guard and reserve personnel. In honor of their service to and sacrifice for our nation, New York state declares that it is the public policy of the state to promote and encourage the continuing economic development of service-disabled veteran-owned businesses. In the furtherance of this policy, the state aims to assist service-disabled veterans in play- ing a greater role in the economy of the state and to provide additional assistance and support to disabled veterans to better equip them to form and expand small businesses, thereby enabling them to realize the Ameri- can dream they fought to protect. To achieve this objective without disrupting the procurement practice and priorities already in law, the legislature finds that it is in the best interest of the economic devel-EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD12081-01-4 S. 6865 2 A. 9135
opment of the state to enact the "Service-Disabled Veteran-Owned Busi- ness Act". S 1-a. Short title. This act shall be known and may be cited as the "Service-Disabled Veteran-Owned Business Act". S 2. The executive law is amended by adding a new article 17-B to read as follows: ARTICLE 17-B PARTICIPATION BY SERVICE-DISABLED VETERANS WITH RESPECT TO STATE CONTRACTS SECTION 369-H. DEFINITIONS. 369-I. DIVISION OF SERVICE-DISABLED VETERANS' BUSINESS DEVELOP- MENT. 369-J. OPPORTUNITIES FOR CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES. 369-K. SEVERABILITY. S 369-H. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: 1. "CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISE" SHALL MEAN A BUSINESS ENTERPRISE, INCLUDING A SOLE PROPRIETORSHIP, PART- NERSHIP, LIMITED LIABILITY COMPANY OR CORPORATION THAT IS: (A) AT LEAST FIFTY-ONE PERCENT OWNED BY ONE OR MORE SERVICE-DISABLED VETERANS; (B) AN ENTERPRISE IN WHICH SUCH SERVICE-DISABLED VETERAN OWNERSHIP IS REAL, SUBSTANTIAL, AND CONTINUING; (C) AN ENTERPRISE IN WHICH SUCH SERVICE-DISABLED 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 IS INDE- PENDENTLY-OWNED AND OPERATED; (E) AN ENTERPRISE THAT IS A SMALL BUSINESS WHICH HAS A SIGNIFICANT BUSINESS PRESENCE IN THE STATE, NOT DOMINANT IN ITS FIELD AND EMPLOYS, BASED ON ITS INDUSTRY, A CERTAIN NUMBER OF PERSONS AS DETERMINED BY THE DIRECTOR, BUT NOT TO EXCEED THREE HUNDRED, TAKING INTO CONSIDERATION FACTORS WHICH INCLUDE, BUT ARE NOT LIMITED TO, FEDERAL SMALL BUSINESS ADMINISTRATION STANDARDS PURSUANT TO 13 CFR PART 121 AND ANY AMENDMENTS THERETO; AND (F) CERTIFIED BY THE OFFICE OF GENERAL SERVICES. 2. "COMMISSIONER" SHALL MEAN THE COMMISSIONER OF THE OFFICE OF GENERAL SERVICES. 3. "DIRECTOR" SHALL MEAN THE DIRECTOR OF THE DIVISION OF SERVICE-DISA- BLED VETERANS' BUSINESS DEVELOPMENT. 4. "DIVISION" SHALL MEAN THE DIVISION OF SERVICE-DISABLED VETERANS' BUSINESS DEVELOPMENT IN THE OFFICE OF GENERAL SERVICES. 5. "SERVICE-DISABLED VETERAN" SHALL MEAN (A) IN THE CASE OF THE UNITED STATES ARMY, NAVY, AIR FORCE, MARINES, COAST GUARD, ARMY NATIONAL GUARD OR AIR NATIONAL GUARD AND/OR RESERVES THEREOF, A VETERAN WHO RECEIVED A COMPENSATION RATING OF TEN PERCENT OR GREATER FROM THE UNITED STATES DEPARTMENT OF VETERANS AFFAIRS OR FROM THE UNITED STATES DEPARTMENT OF DEFENSE BECAUSE OF A SERVICE-CONNECTED DISABILITY INCURRED IN THE LINE OF DUTY, AND (B) IN THE CASE OF THE NEW YORK GUARD OR THE NEW YORK NAVAL MILITIA AND/OR RESERVES THEREOF, A VETERAN WHO CERTIFIES, PURSUANT TO THE RULES AND REGULATIONS PROMULGATED BY THE DIRECTOR, TO HAVING INCURRED AN INJURY EQUIVALENT TO A COMPENSATION RATING OF TEN PERCENT OR GREATER FROM THE UNITED STATES DEPARTMENT OF VETERANS AFFAIRS OR FROM THE UNITED STATES DEPARTMENT OF DEFENSE BECAUSE OF A SERVICE-CONNECTED DISABILITY INCURRED IN THE LINE OF DUTY.S. 6865 3 A. 9135
6. "STATE AGENCY" SHALL MEAN: (A)(I) ANY STATE DEPARTMENT; OR (II) ANY DIVISION, BOARD, COMMISSION OR BUREAU OF ANY STATE DEPARTMENT; OR (III) THE STATE UNIVERSITY OF NEW YORK AND THE CITY UNIVERSITY OF NEW YORK, INCLUDING ALL THEIR CONSTITUENT UNITS EXCEPT COMMUNITY COLLEGES AND THE INDEPENDENT INSTITUTIONS OPERATING STATUTORY OR CONTRACT COLLEGES ON BEHALF OF THE STATE; OR (IV) A BOARD, A MAJORITY OF WHOSE MEMBERS ARE APPOINTED BY THE GOVERNOR OR WHO SERVE BY VIRTUE OF BEING STATE OFFICERS OR EMPLOYEES AS DEFINED IN SUBPARAGRAPH (I), (II) OR (III) OF PARAGRAPH (I) OF SUBDIVISION ONE OF SECTION SEVENTY-THREE OF THE PUBLIC OFFICERS LAW. (B) A "STATE AUTHORITY," AS DEFINED IN SUBDIVISION ONE OF SECTION TWO OF THE PUBLIC AUTHORITIES LAW, AND THE FOLLOWING: ALBANY COUNTY AIRPORT AUTHORITY; ALBANY PORT DISTRICT COMMISSION; ALFRED, ALMOND, HORNELLSVILLE SEWER AUTHORITY; BATTERY PARK CITY AUTHORITY; CAYUGA COUNTY WATER AND SEWER AUTHORITY; (NELSON A. ROCKEFELLER) EMPIRE STATE PLAZA PERFORMING ARTS CENTER CORPORATION; INDUSTRIAL EXHIBIT AUTHORITY; LIVINGSTON COUNTY WATER AND SEWER AUTHORITY; LONG ISLAND POWER AUTHORITY; LONG ISLAND RAIL ROAD; LONG ISLAND MARKET AUTHORITY; MANHATTAN AND BRONX SURFACE TRANSIT OPERATING AUTHORITY; METRO-NORTH COMMUTER RAILROAD; METROPOLITAN SUBURBAN BUS AUTHORITY; METROPOLITAN TRANSPORTATION AUTHORITY; NATURAL HERITAGE TRUST; NEW YORK CITY TRANSIT AUTHORITY; NEW YORK CONVENTION CENTER OPERATING CORPORATION; NEW YORK STATE BRIDGE AUTHORITY; NEW YORK STATE OLYMPIC REGIONAL DEVELOPMENT AUTHORITY; NEW YORK STATE THRUWAY AUTHORITY; NIAGARA FALLS PUBLIC WATER AUTHORITY; NIAGARA FALLS WATER BOARD; PORT OF OSWEGO AUTHORITY; POWER AUTHORITY OF THE STATE OF NEW YORK; ROOSEVELT ISLAND OPERATING CORPORATION; SCHENECTADY METROPLEX DEVELOPMENT AUTHORITY; STATE INSURANCE FUND; STATEN ISLAND RAPID TRANSIT OPERATING AUTHORITY; STATE UNIVERSITY CONSTRUCTION FUND; SYRACUSE REGIONAL AIRPORT AUTHORITY; TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY; UPPER MOHAWK VALLEY REGIONAL WATER BOARD; UPPER MOHAWK VALLEY REGIONAL WATER FINANCE AUTHORITY; UPPER MOHAWK VALLEY MEMORIAL AUDITORIUM AUTHORITY; URBAN DEVELOPMENT CORPORATION AND ITS SUBSIDIARY CORPORATIONS. (C) THE FOLLOWING ONLY TO THE EXTENT OF STATE CONTRACTS ENTERED INTO FOR ITS OWN ACCOUNT OR FOR THE BENEFIT OF A STATE AGENCY AS DEFINED IN PARAGRAPH (A) OR (B) OF THIS SUBDIVISION: DORMITORY AUTHORITY OF THE STATE OF NEW YORK; FACILITIES DEVELOPMENT CORPORATION; NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY; NEW YORK STATE SCIENCE AND TECHNOLOGY FOUNDATION.S. 6865 4 A. 9135
(D) "STATE CONTRACT" SHALL MEAN: (I) A WRITTEN AGREEMENT OR PURCHASE ORDER INSTRUMENT, PROVIDING FOR A TOTAL EXPENDITURE IN EXCESS OF TWEN- TY-FIVE THOUSAND DOLLARS, WHEREBY A CONTRACTING AGENCY IS COMMITTED TO EXPEND OR DOES EXPEND FUNDS IN RETURN FOR LABOR, SERVICES INCLUDING BUT NOT LIMITED TO LEGAL, FINANCIAL AND OTHER PROFESSIONAL SERVICES, SUPPLIES, EQUIPMENT, MATERIALS OR ANY COMBINATION OF THE FOREGOING, TO BE PERFORMED FOR, OR RENDERED OR FURNISHED TO THE CONTRACTING AGENCY; (II) A WRITTEN AGREEMENT IN EXCESS OF ONE HUNDRED THOUSAND DOLLARS WHEREBY A CONTRACTING AGENCY IS COMMITTED TO EXPEND OR DOES EXPEND FUNDS FOR THE ACQUISITION, CONSTRUCTION, DEMOLITION, REPLACEMENT, MAJOR REPAIR OR RENOVATION OF REAL PROPERTY AND IMPROVEMENTS THEREON; AND (III) A WRITTEN AGREEMENT IN EXCESS OF ONE HUNDRED THOUSAND DOLLARS WHEREBY THE OWNER OF A STATE ASSISTED HOUSING PROJECT IS COMMITTED TO EXPEND OR DOES EXPEND FUNDS FOR THE ACQUISITION, CONSTRUCTION, DEMOLITION, REPLACEMENT, MAJOR REPAIR OR RENOVATION OF REAL PROPERTY AND IMPROVEMENTS THEREON FOR SUCH PROJECT. 7. "VETERAN" SHALL MEAN A PERSON WHO SERVED IN AND WHO HAS RECEIVED AN HONORABLE OR GENERAL DISCHARGE FROM, THE UNITED STATES ARMY, NAVY, AIR FORCE, MARINES, COAST GUARD, AND/OR RESERVES THEREOF, AND/OR IN THE ARMY NATIONAL GUARD, AIR NATIONAL GUARD, NEW YORK GUARD AND/OR THE NEW YORK NAVAL MILITIA. S 369-I. DIVISION OF SERVICE-DISABLED VETERANS' BUSINESS DEVELOPMENT. 1. THE HEAD OF THE DIVISION OF SERVICE-DISABLED VETERANS' BUSINESS DEVELOPMENT SHALL BE THE DIRECTOR WHO SHALL BE APPOINTED BY THE GOVERNOR AND WHO SHALL HOLD OFFICE AT THE PLEASURE OF THE COMMISSIONER. 2. THE DIRECTOR MAY APPOINT SUCH DEPUTIES, ASSISTANTS, AND OTHER EMPLOYEES AS MAY BE NEEDED FOR THE PERFORMANCE OF THE DUTIES PRESCRIBED HEREIN SUBJECT TO THE PROVISIONS OF THE CIVIL SERVICE LAW AND THE RULES AND REGULATIONS OF THE CIVIL SERVICE COMMISSION. THE DIRECTOR MAY REQUEST AND SHALL RECEIVE FROM ANY (I) DEPARTMENT, DIVISION, BOARD, BUREAU, OR EXECUTIVE COMMISSION OF THE STATE OR (II) STATE AGENCY, SUCH ASSISTANCE AS MAY BE NECESSARY TO CARRY OUT THE PROVISIONS OF THIS ARTI- CLE. 3. THE DIRECTOR SHALL HAVE THE FOLLOWING POWERS AND DUTIES: (A) DEVELOP, COLLECT, SUMMARIZE AND DISSEMINATE INFORMATION THAT WILL BE HELPFUL TO PERSONS AND ORGANIZATIONS THROUGHOUT THE STATE IN UNDER- TAKING OR PROMOTING THE ESTABLISHMENT AND SUCCESSFUL OPERATION OF A SERVICE-DISABLED VETERAN-OWNED BUSINESS. (B) DEVELOP AND MAKE AVAILABLE TO STATE AGENCIES A DIRECTORY OF CERTI- FIED SERVICE-DISABLED 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 ENTER- PRISES ARE AVAILABLE TO PERFORM SERVICES. SUCH DIRECTORY SHALL BE POSTED ON THE OFFICE OF GENERAL SERVICES WEBSITE. (C) ASSIST STATE AGENCIES IN THE DEVELOPMENT OF PROGRAMS TO FOSTER AND PROMOTE THE USE OF SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES ON STATE CONTRACTS. (D) COORDINATE THE PLANS, PROGRAMS AND OPERATIONS OF THE STATE GOVERN- MENT WHICH AFFECT OR MAY CONTRIBUTE TO THE ESTABLISHMENT, PRESERVATION AND DEVELOPMENT OF SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES. (E) TO APPOINT INDEPENDENT HEARING OFFICERS WHO BY CONTRACT OR TERMS OF EMPLOYMENT SHALL PRESIDE OVER ADJUDICATORY HEARINGS PURSUANT TO THIS SECTION FOR THE OFFICE AND WHO ARE ASSIGNED NO OTHER WORK BY THE OFFICE. (F) IN CONJUNCTION WITH THE COMMISSIONER, DEVELOP A COMPREHENSIVE STATEWIDE PLAN AND OPERATIONAL GUIDELINES TO PROMOTE SERVICE-DISABLEDS. 6865 5 A. 9135
VETERAN-OWNED BUSINESS ENTERPRISES AND TO ASSIST THEM IN OBTAINING OPPORTUNITIES TO PARTICIPATE IN THE PROCUREMENT OF GOODS AND SERVICES BY THE STATE, INCLUDING IDENTIFICATION OF BARRIERS TO SERVICE-DISABLED VETERANS' BUSINESS DEVELOPMENT AND INVESTIGATION AND EVALUATION OF THEIR IMPACT ON ACHIEVING THE OBJECTIVES OF THIS ARTICLE. 4. THE COMMISSIONER SHALL: (A) COORDINATE TRAINING OF ALL PROCUREMENT PERSONNEL OF STATE AGEN- CIES, EMPHASIZING INCREASED SENSITIVITY AND RESPONSIVENESS TO THE UNIQUE NEEDS AND REQUIREMENTS OF SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTER- PRISES. (B) CONDUCT A COORDINATED REVIEW OF ALL EXISTING AND PROPOSED STATE TRAINING AND TECHNICAL ASSISTANCE ACTIVITIES IN DIRECT SUPPORT OF THE SERVICE-DISABLED VETERANS' BUSINESS DEVELOPMENT PROGRAM TO ASSURE CONSISTENCY WITH THE OBJECTIVES OF THIS ARTICLE. (C) EVALUATE AND ASSESS AVAILABILITY OF FIRMS FOR THE PURPOSE OF INCREASING PARTICIPATION OF SUCH FIRMS IN STATE CONTRACTING IN CONSULTA- TION WITH RELEVANT STATE ENTITIES INCLUDING, BUT NOT LIMITED TO, THE NEW YORK STATE DIVISION OF VETERANS' AFFAIRS. (D) PROVIDE ADVICE AND TECHNICAL ASSISTANCE TO PROMOTE SERVICE-DISA- BLED VETERAN-OWNED BUSINESS ENTERPRISES' UNDERSTANDING OF STATE PROCURE- MENT LAWS, PRACTICES AND PROCEDURES TO FACILITATE AND INCREASE THE PARTICIPATION OF SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES IN STATE PROCUREMENT. (E) ESTABLISH REGULAR PERFORMANCE REPORTING SYSTEMS REGARDING IMPLE- MENTATION OF THE PROGRAMS DESIGNED TO INCREASE SERVICE-DISABLED VETER- AN-OWNED BUSINESS PARTICIPATION IN PROCUREMENT CONTRACTS BY STATE AGEN- CIES. (F) SUBMIT A REPORT BY THE THIRTY-FIRST OF DECEMBER EACH YEAR, WITH THE FIRST REPORT DUE BY THE THIRTY-FIRST OF DECEMBER IN THE CALENDAR YEAR NEXT SUCCEEDING THE CALENDAR YEAR IN WHICH THIS ARTICLE SHALL HAVE BECOME A LAW, TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, AND THE SPEAKER OF THE ASSEMBLY. SUCH REPORT SHALL INCLUDE INFORMATION INCLUDING, BUT NOT LIMITED TO, THE NUMBER OF CONTRACTS ENTERED INTO PURSUANT TO THIS ARTICLE, THE AVERAGE AMOUNT OF SUCH CONTRACTS, THE NUMBER OF SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES CERTIFIED, THE NUMBER OF APPLICATIONS FOR CERTIFICATION AS A SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISE, THE NUMBER OF DENIALS FOR SUCH CERTIFICATION, THE NUMBER OF APPEALS OF SUCH DENIALS, AND THE OUTCOME OF SUCH APPEALS AND THE AVERAGE TIME THAT IS REQUIRED FOR SUCH CERTIF- ICATION TO BE COMPLETED. 5. CERTIFICATION. (A) THE DIRECTOR, OR IN THE ABSENCE OF THE DIRECTOR, THE COMMISSIONER, WITHIN NINETY DAYS OF THE EFFECTIVE DATE OF THIS ARTI- CLE, SHALL PROMULGATE RULES AND REGULATIONS PROVIDING FOR THE ESTABLISH- MENT OF A STATEWIDE CERTIFICATION PROGRAM INCLUDING RULES AND REGU- LATIONS GOVERNING THE APPROVAL, DENIAL, OR REVOCATION OF ANY SUCH CERTIFICATION. SUCH RULES AND REGULATIONS SHALL INCLUDE, BUT NOT BE LIMITED TO, SUCH MATTERS AS MAY BE REQUIRED TO ENSURE THAT THE ESTAB- LISHED PROCEDURES THEREUNDER SHALL AT LEAST BE IN COMPLIANCE WITH THE CODE OF FAIR PROCEDURE SET FORTH IN SECTION SEVENTY-THREE OF THE CIVIL RIGHTS LAW. (B) THE DIVISION OF SERVICE-DISABLED VETERANS' BUSINESS DEVELOPMENT SHALL BE RESPONSIBLE FOR VERIFYING BUSINESSES AS BEING OWNED, OPERATED, AND CONTROLLED BY A SERVICE-DISABLED VETERAN AND FOR CERTIFYING SUCH VERIFIED BUSINESSES. STATUS AS A SERVICE-DISABLED VETERAN PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE DOCUMENTED BY A COPY OF THE VETERAN'S CERTIFICATE OF RELEASE OR DISCHARGE FROM ACTIVE DUTY, INCLUD-S. 6865 6 A. 9135
ING BUT NOT LIMITED TO, A DD-214 FORM OR AN HONORABLE SERVICE CERTIFICATE/REPORT OF CAUSALITY FROM THE DEPARTMENT OF DEFENSE, A LETTER OF CERTIFICATION BY THE UNITED STATES DEPARTMENT OF VETERANS AFFAIRS OR THE UNITED STATES DEPARTMENT OF DEFENSE AND ANY ADDITIONAL INFORMATION THAT MAY BE REQUIRED BY THE DIVISION OF SERVICE-DISABLED VETERANS' BUSI- NESS DEVELOPMENT. IN THE CASE OF THE NEW YORK GUARD OR THE NEW YORK NAVAL MILITIA AND/OR RESERVES THEREOF, STATUS AS A SERVICE-DISABLED VETERAN PURSUANT TO THIS PARAGRAPH SHALL BE DOCUMENTED PURSUANT TO RULES AND REGULATIONS PROMULGATED BY THE DIRECTOR, OR IN THE ABSENCE OF THE DIRECTOR, THE COMMISSIONER. (C) FOLLOWING APPLICATION FOR CERTIFICATION PURSUANT TO THIS SECTION, THE DIRECTOR SHALL PROVIDE THE APPLICANT WITH WRITTEN NOTICE OF THE STATUS OF THE APPLICATION, INCLUDING NOTICE OF ANY OUTSTANDING DEFICIEN- CIES, WITHIN THIRTY DAYS. WITHIN SIXTY DAYS OF SUBMISSION OF A FINAL COMPLETED APPLICATION, THE DIRECTOR SHALL PROVIDE THE APPLICANT WITH WRITTEN NOTICE OF A DETERMINATION BY THE DIRECTOR APPROVING OR DENYING SUCH CERTIFICATION AND, IN THE EVENT OF A DENIAL, A STATEMENT SETTING FORTH THE REASONS FOR SUCH DENIAL. UPON A DETERMINATION DENYING OR REVOKING CERTIFICATION, THE BUSINESS ENTERPRISE FOR WHICH CERTIFICATION HAS BEEN SO DENIED OR REVOKED SHALL, UPON WRITTEN REQUEST MADE WITHIN THIRTY DAYS FROM RECEIPT OF NOTICE OF SUCH DETERMINATION, BE ENTITLED TO A HEARING BEFORE AN INDEPENDENT HEARING OFFICER DESIGNATED FOR SUCH PURPOSE BY THE DIRECTOR. IN THE EVENT THAT A REQUEST FOR A HEARING IS NOT MADE WITHIN SUCH THIRTY DAY PERIOD, SUCH DETERMINATION SHALL BE DEEMED TO BE FINAL. THE INDEPENDENT HEARING OFFICER SHALL CONDUCT A HEARING AND UPON THE CONCLUSION OF SUCH HEARING, ISSUE A WRITTEN RECOM- MENDATION TO THE DIRECTOR TO AFFIRM, REVERSE, OR MODIFY SUCH DETERMI- NATION OF THE DIRECTOR. SUCH WRITTEN RECOMMENDATION SHALL BE ISSUED TO THE PARTIES. THE DIRECTOR, WITHIN THIRTY DAYS, BY ORDER, MUST ACCEPT, REJECT OR MODIFY SUCH RECOMMENDATION OF THE HEARING OFFICER AND SET FORTH IN WRITING THE REASON THEREFOR. THE DIRECTOR SHALL SERVE A COPY OF SUCH ORDER AND REASONS THEREFOR UPON THE BUSINESS ENTERPRISE BY PERSONAL SERVICE OR BY CERTIFIED MAIL RETURN RECEIPT REQUESTED. THE ORDER OF THE DIRECTOR SHALL BE SUBJECT TO REVIEW PURSUANT TO ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES. (D) ALL CERTIFICATIONS SHALL BE VALID FOR A PERIOD OF FIVE YEARS. S 369-J. OPPORTUNITIES FOR CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES. 1. THE DIRECTOR, OR IN THE ABSENCE OF THE DIREC- TOR, THE COMMISSIONER, WITHIN NINETY DAYS OF THE EFFECTIVE DATE OF THIS ARTICLE SHALL PROMULGATE RULES AND REGULATIONS FOR THE FOLLOWING PURPOSES: (A) PROVIDE MEASURES AND PROCEDURES TO ENSURE THAT CERTIFIED SERVICE- DISABLED VETERAN-OWNED BUSINESS ENTERPRISES ARE AFFORDED THE OPPORTUNITY FOR MEANINGFUL PARTICIPATION IN THE PERFORMANCE OF STATE CONTRACTS AND TO ASSIST IN STATE AGENCIES' IDENTIFICATION OF THOSE STATE CONTRACTS FOR WHICH CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES MAY BEST PERFORM; (B) PROVIDE FOR MEASURES AND PROCEDURES THAT ASSIST STATE AGENCIES IN THE IDENTIFICATION OF STATE CONTRACTS WHERE SERVICE-DISABLED VETERAN CONTRACT GOALS ARE PRACTICAL, FEASIBLE AND APPROPRIATE FOR THE PURPOSE OF INCREASING THE UTILIZATION OF SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISE PARTICIPATION ON STATE CONTRACTS; (C) ACHIEVE A STATEWIDE GOAL FOR PARTICIPATION ON STATE CONTRACTS BY SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES OF SIX PERCENT;S. 6865 7 A. 9135
(D) PROVIDE FOR PROCEDURES RELATING TO SUBMISSION AND RECEIPT OF APPLICATIONS BY SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES FOR CERTIFICATION; (E) PROVIDE FOR THE MONITORING AND COMPLIANCE OF STATE CONTRACTS BY STATE AGENCIES WITH RESPECT TO THE PROVISIONS OF THIS ARTICLE; (F) PROVIDE FOR THE REQUIREMENT THAT STATE AGENCIES SUBMIT REGULAR REPORTS, AS DETERMINED BY THE DIRECTOR, WITH RESPECT TO THEIR SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISE PROGRAM ACTIVITY, INCLUDING BUT NOT LIMITED TO, UTILIZATION REPORTING AND STATE CONTRACT MONITORING AND COMPLIANCE; (G) NOTWITHSTANDING ANY PROVISION OF THE STATE FINANCE LAW, THE PUBLIC BUILDINGS LAW, THE HIGHWAY LAW, THE TRANSPORTATION LAW OR THE PUBLIC AUTHORITIES LAW TO THE CONTRARY, PROVIDE FOR THE RESERVATION OR SET-A- SIDE OF CERTAIN PROCUREMENTS BY STATE AGENCIES IN ORDER TO ACHIEVE THE OBJECTIVES OF THIS ARTICLE; PROVIDED, HOWEVER, THAT SUCH PROCUREMENTS SHALL REMAIN SUBJECT TO (I) PRIORITY OF PREFERRED SOURCES PURSUANT TO SECTIONS ONE HUNDRED SIXTY-TWO AND ONE HUNDRED SIXTY-THREE OF THE STATE FINANCE LAW; (II) THE APPROVAL OF THE COMPTROLLER OF THE STATE OF NEW YORK PURSUANT TO SECTION ONE HUNDRED TWELVE AND SECTION ONE HUNDRED SIXTY-THREE OF THE STATE FINANCE LAW AND SECTION TWENTY-EIGHT HUNDRED SEVENTY-NINE-A OF THE PUBLIC AUTHORITIES LAW; AND (III) THE PROCUREMENT RECORD REQUIREMENTS PURSUANT TO PARAGRAPH G OF SUBDIVISION NINE OF SECTION ONE HUNDRED SIXTY-THREE OF THE STATE FINANCE LAW; AND (H) PROVIDE FOR ANY OTHER PURPOSES TO EFFECTUATE THIS ARTICLE. 2. STATE AGENCIES SHALL ADMINISTER THE RULES AND REGULATIONS PROMUL- GATED BY THE DIRECTOR FOR THE IMPLEMENTATION OF THIS ARTICLE. S 369-K. SEVERABILITY. IF ANY CLAUSE, SENTENCE, PARAGRAPH, SECTION OR PART OF THIS ARTICLE SHALL BE ADJUDGED BY ANY COURT OF COMPETENT JURIS- DICTION TO BE INVALID, THE JUDGMENT SHALL NOT AFFECT, IMPAIR OR INVALI- DATE THE REMAINDER THEREOF, BUT SHALL BE CONFINED IN ITS OPERATION TO THE CLAUSE, SENTENCE, PARAGRAPH, SECTION OR PART OF THIS ARTICLE DIRECT- LY INVOLVED IN THE CONTROVERSY IN WHICH THE JUDGMENT SHALL HAVE BEEN RENDERED. S 3. Subdivisions 7 and 15 of section 310 of the executive law, as amended by chapter 175 of the laws of 2010, are amended to read as follows: 7. "Minority-owned business enterprise" shall mean a business enter- prise, including a sole proprietorship, partnership, LIMITED LIABILITY COMPANY or corporation that is: (a) at least fifty-one percent owned by one or more minority group members; (b) an enterprise in which such minority ownership is real, substan- tial and continuing; (c) an enterprise in which such minority 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.S. 6865 8 A. 9135
15. "Women-owned business enterprise" shall mean a business enter- prise, including a sole proprietorship, partnership, LIMITED LIABILITY COMPANY or corporation that is: (a) at least fifty-one percent owned by one or more United States citizens or permanent resident aliens who are women; (b) an enterprise in which the ownership interest of such women is real, substantial and continuing; (c) an enterprise in which such women 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 woman may be certified as a minority-owned business enterprise, a women-owned busi- ness enterprise, or both, and may be counted towards either a minority- owned business enterprise goal or a women-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 women-owned business enterprise goal. S 4. This act shall take effect immediately; provided, however, that sections one, one-a and two of this act shall expire and be deemed repealed March 31, 2019; and provided, further, however, that the amend- ments to subdivisions 7 and 15 of section 310 of the executive law made by section three of this act shall not affect the expiration of such section and shall be deemed to expire therewith.