S T A T E   O F   N E W   Y O R K
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    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-DISABLED

S. 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.