S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1655
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                   January 13, 2015
                                      ___________
       Introduced by Sens. MARCHIONE, AVELLA, GALLIVAN, LARKIN, LIBOUS, LITTLE,
         O'MARA,  SEWARD -- read twice and ordered printed, and when printed to
         be committed to the Committee on Finance
       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:
    1    Section 1. This act shall be known and may be cited as "OORAH! An  ACT
    2  Opening Opportunities, Resources and Access for Heroes".
    3    S  1-a.  The  article heading of article 15-A of the executive law, as
    4  added by chapter 261 of the laws of 1988, is amended to read as follows:
    5               PARTICIPATION BY MINORITY GROUP MEMBERS [AND],
    6             WOMEN AND VETERANS WITH RESPECT TO STATE CONTRACTS
    7    S 2. Subdivisions 1, 4, 9, 10, 19 and 22 of section 310 of the  execu-
    8  tive  law,  subdivisions  1 and 9 as added by chapter 261 of the laws of
    9  1988, subdivisions 4 and 10 as amended by chapter 55 of the laws of 1992
   10  and subdivisions 19 and 22 as added by chapter 175 of the laws of  2010,
   11  are amended and a new subdivision 15-a is added to read as follows:
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD02812-01-5
       S. 1655                             2
    1    1.  "Certified  business" shall mean a business verified as a minority
    2  [or women-owned], WOMEN OR VETERAN-OWNED business enterprise pursuant to
    3  section three hundred fourteen of this article.
    4    4. "Director" shall mean the director of the division of minority [and
    5  women's],  WOMEN AND VETERANS' business development in the department of
    6  economic development.
    7    9. "Utilization plan" shall mean a plan prepared by a  contractor  and
    8  submitted  in connection with a proposed state contract. The utilization
    9  plan shall identify certified minority [or women-owned], WOMEN OR VETER-
   10  AN-OWNED business enterprises, if known, that have committed to  perform
   11  work  in connection with the proposed state contract as well as any such
   12  enterprises, if known, which the contractor intends to use in connection
   13  with the contractor's performance of the proposed  state  contract.  The
   14  plan  shall specifically contain a list, including the name, address and
   15  telephone number, of each certified enterprise with which the contractor
   16  intends to subcontract.
   17    10. "Office" shall mean the division of minority  [and],  women's  AND
   18  VETERANS'  business  development  in the department of economic develop-
   19  ment.
   20    15-A. "VETERAN-OWNED BUSINESS ENTERPRISE" SHALL MEAN A BUSINESS ENTER-
   21  PRISE, INCLUDING A SOLE PROPRIETORSHIP, PARTNERSHIP OR CORPORATION  THAT
   22  IS:
   23    (A)  AT  LEAST  FIFTY-ONE  PERCENT  OWNED BY ONE OR MORE UNITED STATES
   24  CITIZENS OR PERMANENT  RESIDENT  ALIENS  WHO  ARE  HONORABLY  DISCHARGED
   25  UNITED STATES VETERANS;
   26    (B)  AN ENTERPRISE IN WHICH THE OWNERSHIP INTEREST OF SUCH VETERANS IS
   27  REAL, SUBSTANTIAL AND CONTINUING;
   28    (C) AN ENTERPRISE IN WHICH SUCH VETERAN OWNERSHIP  HAS  AND  EXERCISES
   29  THE AUTHORITY TO CONTROL INDEPENDENTLY THE DAY-TO-DAY BUSINESS DECISIONS
   30  OF THE ENTERPRISE;
   31    (D)  AN  ENTERPRISE  AUTHORIZED TO DO BUSINESS IN THIS STATE AND INDE-
   32  PENDENTLY OWNED AND OPERATED;
   33    (E) AN ENTERPRISE OWNED BY AN INDIVIDUAL OR INDIVIDUALS, WHOSE  OWNER-
   34  SHIP,  CONTROL  AND  OPERATION ARE RELIED UPON FOR CERTIFICATION, WITH A
   35  PERSONAL NET WORTH THAT DOES NOT EXCEED THREE MILLION FIVE HUNDRED THOU-
   36  SAND DOLLARS, AS ADJUSTED ANNUALLY ON THE FIRST OF JANUARY FOR INFLATION
   37  ACCORDING TO THE CONSUMER PRICE INDEX OF THE PREVIOUS YEAR; AND
   38    (F) AN ENTERPRISE THAT IS A SMALL  BUSINESS  PURSUANT  TO  SUBDIVISION
   39  TWENTY OF THIS SECTION.
   40    A  FIRM  OWNED BY A MINORITY GROUP MEMBER WHO IS ALSO A VETERAN MAY BE
   41  CERTIFIED AS A MINORITY-OWNED BUSINESS ENTERPRISE, A VETERAN-OWNED BUSI-
   42  NESS ENTERPRISE, OR BOTH, AND MAY BE COUNTED TOWARDS EITHER A  MINORITY-
   43  OWNED  BUSINESS  ENTERPRISE  GOAL OR A VETERAN-OWNED BUSINESS ENTERPRISE
   44  GOAL, IN REGARD TO ANY CONTRACT OR ANY GOAL, SET BY AN AGENCY OR AUTHOR-
   45  ITY, BUT SUCH PARTICIPATION MAY NOT BE COUNTED TOWARDS BOTH SUCH  GOALS.
   46  SUCH  AN  ENTERPRISE'S  PARTICIPATION  IN  A CONTRACT MAY NOT BE DIVIDED
   47  BETWEEN  THE   MINORITY-OWNED   BUSINESS   ENTERPRISE   GOAL   AND   THE
   48  VETERAN-OWNED  BUSINESS ENTERPRISE GOAL.  A FIRM OWNED BY A WOMAN WHO IS
   49  ALSO A VETERAN MAY BE CERTIFIED AS A WOMEN-OWNED BUSINESS ENTERPRISE,  A
   50  VETERAN-OWNED  BUSINESS  ENTERPRISE, OR BOTH, AND MAY BE COUNTED TOWARDS
   51  EITHER A WOMEN-OWNED BUSINESS ENTERPRISE GOAL OR A  VETERAN-OWNED  BUSI-
   52  NESS  ENTERPRISE  GOAL, IN REGARD TO ANY CONTRACT OR ANY GOAL, SET BY AN
   53  AGENCY OR AUTHORITY, BUT SUCH PARTICIPATION MAY NOT BE  COUNTED  TOWARDS
   54  BOTH  SUCH  GOALS.  SUCH AN ENTERPRISE'S PARTICIPATION IN A CONTRACT MAY
   55  NOT BE DIVIDED BETWEEN THE WOMEN-OWNED BUSINESS ENTERPRISE GOAL AND  THE
   56  VETERAN-OWNED BUSINESS ENTERPRISE GOAL.
       S. 1655                             3
    1    19.  "Personal  net worth" shall mean the aggregate adjusted net value
    2  of the assets of an individual remaining  after  total  liabilities  are
    3  deducted.  Personal  net worth includes the individual's share of assets
    4  held jointly with said individual's spouse  and  does  not  include  the
    5  individual's  ownership  interest  in the certified minority [and women-
    6  owned], WOMEN OR VETERAN-OWNED  business  enterprise,  the  individual's
    7  equity  in  his or her primary residence, or up to five hundred thousand
    8  dollars of the present cash value of any  qualified  retirement  savings
    9  plan  or  individual  retirement account held by the individual less any
   10  penalties for early withdrawal.
   11    22. "Diversity practices" shall mean the  contractor's  practices  and
   12  policies with respect to:
   13    (a)  utilizing  certified minority [and women-owned], WOMEN AND VETER-
   14  AN-OWNED business enterprises in contracts awarded by a state agency  or
   15  other public corporation, as subcontractors and suppliers; and
   16    (b)  entering  into  partnerships,  joint  ventures  or  other similar
   17  arrangements with certified minority [and women-owned], WOMEN OR  VETER-
   18  AN-OWNED business enterprises as defined in this article or other appli-
   19  cable statute or regulation governing an entity's utilization of minori-
   20  ty [or women-owned], WOMEN OR VETERAN-OWNED business enterprises.
   21    S  3. The section heading, subdivision 1, paragraphs (a), (d), (e) and
   22  (f) of subdivision 3 of section 311 of the executive  law,  the  section
   23  heading,  subdivision  1, and paragraphs (d) and (e) of subdivision 3 as
   24  amended by chapter 55 of the laws of 1992, and paragraphs (a) and (f) of
   25  subdivision 3 as added by chapter 261 of the laws of 1988,  are  amended
   26  to read as follows:
   27    Division  of  minority  [and], women's AND VETERANS' business develop-
   28  ment. 1. The head of the division of minority [and], women's AND  VETER-
   29  ANS'  business  development shall be the director who shall be appointed
   30  by the governor and hold office at the pleasure of the commissioner.  It
   31  shall  be  the  duty  of the director of the division of minority [and],
   32  women's AND VETERANS' business development to assist the governor in the
   33  formulation and implementation of laws and policies relating to minority
   34  [and women-owned] WOMEN AND VETERAN-OWNED business enterprises.
   35    (a) to encourage and assist contracting agencies in their  efforts  to
   36  increase  participation  by minority [and women-owned], WOMEN AND VETER-
   37  AN-OWNED business enterprises on state contracts and subcontracts so  as
   38  to facilitate the award of a fair share of such contracts to them;
   39    (d)  to  review  periodically  the  practices  and  procedures of each
   40  contracting agency with respect to compliance  with  the  provisions  of
   41  this  article,  and  to  require  them to file periodic reports with the
   42  division of minority [and], women's AND VETERANS'  business  development
   43  as  to  the level of minority [and women-owned], WOMEN AND VETERAN-OWNED
   44  business enterprises participation in the awarding of  agency  contracts
   45  for goods and services;
   46    (e)  on  January  first  of  each  year report to the governor and the
   47  chairpersons of the senate finance and assembly ways and  means  commit-
   48  tees on the level of minority [and women-owned], WOMEN AND VETERAN-OWNED
   49  business  enterprises participating in each agency's contracts for goods
   50  and services and  on  activities  of  the  office  and  effort  by  each
   51  contracting  agency  to  promote  employment  of  minority group members
   52  [and], women AND VETERANS, and to promote and increase participation  by
   53  certified businesses with respect to state contracts and subcontracts so
   54  as  to  facilitate  the award of a fair share of state contracts to such
   55  businesses. The comptroller shall  assist  the  division  in  collecting
   56  information   on  the  participation  of  certified  business  for  each
       S. 1655                             4
    1  contracting  agency.  Such  report  may  recommend  new  activities  and
    2  programs to effectuate the purposes of this article;
    3    (f) to prepare and update periodically a directory of certified minor-
    4  ity  [and  women-owned],  WOMEN  AND  VETERAN-OWNED business enterprises
    5  which shall, wherever practicable, be divided into categories of  labor,
    6  services,  supplies,  equipment,  materials  and recognized construction
    7  trades and which shall indicate areas or locations of  the  state  where
    8  such enterprises are available to perform services;
    9    S  3-a. Paragraph (c) of subdivision 4 of section 311 of the executive
   10  law, as added by chapter 361 of the laws of 2009, is amended to read  as
   11  follows:
   12    (c)  seek to maximize utilization by minority [and women-owned], WOMEN
   13  AND VETERAN-OWNED business enterprises of  available  federal  resources
   14  including  but  not  limited  to federal grants, loans, loan guarantees,
   15  surety  bonding  guarantees,  technical  assistance,  and  programs  and
   16  services of the federal small business administration.
   17    S  4. The section heading and subdivisions 1, 2 and 3 of section 311-a
   18  of the executive law, as added by section 4 of part BB of chapter 59  of
   19  the laws of 2006, are amended to read as follows:
   20    Minority  [and  women-owned],  WOMEN AND VETERAN-OWNED business enter-
   21  prise statewide advocate. 1. There  is  hereby  established  within  the
   22  department  of  economic  development  an  office  of  the minority [and
   23  women-owned], WOMEN  AND  VETERAN-OWNED  business  enterprise  statewide
   24  advocate.  The statewide advocate shall be appointed by the commissioner
   25  with the advice of the small business advisory board as  established  in
   26  section  one  hundred  thirty-three  of the economic development law and
   27  shall serve in the unclassified service of the director.  The  statewide
   28  advocate shall be located in the Albany empire state development office.
   29    2. The advocate shall act as a liaison for minority [and women-owned],
   30  WOMEN  AND  VETERAN-OWNED  business  enterprises  [(MWBEs)]  (MWVBES) to
   31  assist them in obtaining  technical,  managerial,  financial  and  other
   32  business  assistance  for certified businesses and applicants. The advo-
   33  cate shall investigate complaints brought by or  on  behalf  of  [MWBEs]
   34  (MWVBES)  concerning certification delays and instances of violations of
   35  law by state agencies. The statewide  advocate  shall  assist  certified
   36  businesses  and applicants in the certification process. Other functions
   37  of the statewide advocate shall be directed  by  the  commissioner.  The
   38  advocate may request and the director may appoint staff and employees of
   39  the  division  of  minority  [and women], WOMEN'S AND VETERANS' business
   40  development to support the administration of the office of the statewide
   41  advocate.
   42    3. The statewide advocate shall establish a toll-free  number  at  the
   43  department  of  economic  development  to  be  used  to answer questions
   44  concerning the [MWBE] MWVBE certification process.
   45    S 5. The section heading and paragraph (a) of subdivision 1 of section
   46  312 of the executive law, as added by chapter 261 of the laws  of  1988,
   47  are amended to read as follows:
   48    Equal employment opportunities for minority group members [and], women
   49  AND VETERANS.
   50    (a)  The  contractor will not discriminate against employees or appli-
   51  cants for employment because of race,  creed,  color,  national  origin,
   52  sex,  age,  disability or marital status, and will undertake or continue
   53  existing programs of affirmative action to ensure  that  minority  group
   54  members [and], women AND VETERANS are afforded equal employment opportu-
   55  nities  without discrimination. For purposes of this article affirmative
   56  action shall mean recruitment, employment,  job  assignment,  promotion,
       S. 1655                             5
    1  upgradings,  demotion, transfer, layoff, or termination and rates of pay
    2  or other forms of compensation.
    3    S  6. Section 312-a of the executive law, as amended by chapter 175 of
    4  the laws of 2010, is amended to read as follows:
    5    S 312-a. Study of minority [and women-owned], WOMEN AND  VETERAN-OWNED
    6  business enterprise programs. 1. The director of the division of minori-
    7  ty  [and  women-owned],  WOMEN AND VETERAN-OWNED business development in
    8  the department of economic development is  authorized  and  directed  to
    9  recommission  a statewide disparity study regarding the participation of
   10  minority [and women-owned], WOMEN AND VETERAN-OWNED business enterprises
   11  in state contracts since the amendment of this article to  be  delivered
   12  to  the  governor  and legislature no later than February fifteenth, two
   13  thousand sixteen.  The study shall be prepared by an entity  independent
   14  of  the  department and selected through a request for proposal process.
   15  The purpose of such study is:
   16    (a) to determine whether there is a disparity between  the  number  of
   17  qualified minority [and women-owned], WOMEN AND VETERAN-OWNED businesses
   18  ready,  willing  and  able  to  perform state contracts for commodities,
   19  services and construction, and the number of such  contractors  actually
   20  engaged  to  perform  such  contracts, and to determine what changes, if
   21  any, should be made to state policies  affecting  minority  [and  women-
   22  owned],  WOMEN AND VETERAN-OWNED business enterprises; and (b) to deter-
   23  mine whether there is a disparity between the number of qualified minor-
   24  ities [and], women AND VETERANS ready, willing and able, with respect to
   25  labor markets, qualifications and other relevant factors, to participate
   26  in contractor employment, management level bodies, including  boards  of
   27  directors,  and as senior executive officers within contracting entities
   28  and the number of such group members  actually  employed  or  affiliated
   29  with  state  contractors in the aforementioned capacities, and to deter-
   30  mine what changes, if any, should be made to  state  policies  affecting
   31  minority [and], women AND VETERAN group populations with regard to state
   32  contractors'  employment  and  appointment practices relative to diverse
   33  group members. Such study shall include, but not be limited to, an anal-
   34  ysis  of  the  history  of  minority  [and   women-owned],   WOMEN   AND
   35  VETERAN-OWNED  business enterprise programs and their effectiveness as a
   36  means of securing and ensuring participation by minorities [and],  women
   37  AND  VETERANS, and a disparity analysis by market area and region of the
   38  state. Such study shall distinguish  between  minority  males,  minority
   39  females  and  non-minority  females,  AND  BETWEEN MINORITY VETERANS AND
   40  NON-MINORITY VETERANS, AND FEMALE VETERANS AND  MALE  VETERANS,  in  the
   41  statistical analysis.
   42    2.  The  director of the division of minority [and women-owned], WOMEN
   43  AND VETERAN-OWNED business  development  is  directed  to  transmit  the
   44  disparity  study  to  the  governor  and  the legislature not later than
   45  February fifteenth, two thousand sixteen, and to post the study  on  the
   46  website of the department of economic development.
   47    S  7.  Section  313 of the executive law, as amended by chapter 175 of
   48  the laws of 2010, is amended to read as follows:
   49    S 313. Opportunities for minority [and women-owned], WOMEN AND  VETER-
   50  AN-OWNED  business  enterprises.  1. Goals and requirements for agencies
   51  and contractors.  Each agency shall structure procurement procedures for
   52  contracts made directly or indirectly  to  minority  [and  women-owned],
   53  WOMEN  AND  VETERAN-OWNED  business enterprises, [in accordance with the
   54  findings of the two thousand ten disparity study,] consistent  with  the
   55  purposes  of  this  article, to attempt to achieve the following results
   56  with regard to total annual statewide procurement:
       S. 1655                             6
    1    (a) construction industry for certified minority-owned business enter-
    2  prises: fourteen and thirty-four hundredths percent;
    3    (b)  construction  industry  for certified women-owned business enter-
    4  prises: eight and forty-one hundredths percent;
    5    (B-1)  CONSTRUCTION  INDUSTRY  FOR  CERTIFIED  VETERAN-OWNED  BUSINESS
    6  ENTERPRISES:  A  PERCENTAGE  TO  BE  DETERMINED  BY  THE DISPARITY STUDY
    7  DESCRIBED IN SUBDIVISION ONE OF SECTION THREE HUNDRED TWELVE-A  OF  THIS
    8  ARTICLE;
    9    (c)  construction related professional services industry for certified
   10  minority-owned business enterprises: thirteen and twenty-one  hundredths
   11  percent;
   12    (d)  construction related professional services industry for certified
   13  women-owned  business  enterprises:  eleven  and  thirty-two  hundredths
   14  percent;
   15    (D-1)  CONSTRUCTION  RELATED PROFESSIONAL SERVICES INDUSTRY FOR CERTI-
   16  FIED VETERAN-OWNED BUSINESS ENTERPRISES:  A PERCENTAGE TO BE  DETERMINED
   17  BY  THE  DISPARITY  STUDY  DESCRIBED IN SUBDIVISION ONE OF SECTION THREE
   18  HUNDRED TWELVE-A OF THIS ARTICLE;
   19    (e) non-construction related services industry for  certified  minori-
   20  ty-owned business enterprises: nineteen and sixty hundredths percent;
   21    (f)  non-construction  related  services industry for certified women-
   22  owned business enterprises: seventeen and forty-four hundredths percent;
   23    (F-1) NON-CONSTRUCTION RELATED SERVICES INDUSTRY FOR CERTIFIED  VETER-
   24  AN-OWNED  BUSINESS  ENTERPRISES:    A PERCENTAGE TO BE DETERMINED BY THE
   25  DISPARITY STUDY DESCRIBED IN SUBDIVISION ONE OF  SECTION  THREE  HUNDRED
   26  TWELVE-A OF THIS ARTICLE;
   27    (g)  commodities industry for certified minority-owned business enter-
   28  prises: sixteen and eleven hundredths percent;
   29    (h) commodities industry for  certified  women-owned  business  enter-
   30  prises:  ten and ninety-three hundredths percent;
   31    (H-1) COMMODITIES INDUSTRY FOR CERTIFIED VETERAN-OWNED BUSINESS ENTER-
   32  PRISES:   A PERCENTAGE TO BE DETERMINED BY THE DISPARITY STUDY DESCRIBED
   33  IN SUBDIVISION ONE OF SECTION THREE HUNDRED TWELVE-A OF THIS ARTICLE;
   34    (i) overall agency total dollar value  of  procurement  for  certified
   35  minority-owned  business enterprises: sixteen and fifty-three hundredths
   36  percent;
   37    (j) overall agency total dollar value  of  procurement  for  certified
   38  women-owned  business  enterprises:  twelve  and  thirty-nine hundredths
   39  percent; [and]
   40    (J-1) OVERALL AGENCY TOTAL DOLLAR VALUE OF PROCUREMENT  FOR  CERTIFIED
   41  VETERAN-OWNED  BUSINESS  ENTERPRISES:   A PERCENTAGE TO BE DETERMINED BY
   42  THE DISPARITY STUDY  DESCRIBED  IN  SUBDIVISION  ONE  OF  SECTION  THREE
   43  HUNDRED TWELVE-A OF THIS ARTICLE;
   44    (k)  overall  agency  total  dollar value of procurement for certified
   45  minority, women-owned business enterprises: twenty-eight and  ninety-two
   46  hundredths percent; AND
   47    (L)  OVERALL  AGENCY  TOTAL  DOLLAR VALUE OF PROCUREMENT FOR CERTIFIED
   48  MINORITY, WOMEN, VETERAN-OWNED BUSINESS ENTERPRISES:  A PERCENTAGE TO BE
   49  DETERMINED BY THE  DISPARITY  STUDY  DESCRIBED  IN  SUBDIVISION  ONE  OF
   50  SECTION THREE HUNDRED TWELVE-A OF THIS ARTICLE.
   51    1-a.  The  director  shall  ensure  that  each  state  agency has been
   52  provided with a copy of the two thousand ten disparity study AND  THERE-
   53  AFTER THE TWO THOUSAND FIFTEEN DISPARITY STUDY.
   54    1-b.  Each  agency shall develop and adopt agency-specific goals based
   55  on the findings of the two thousand ten disparity study  AND  THEREAFTER
   56  THE TWO THOUSAND SIXTEEN DISPARITY STUDY.
       S. 1655                             7
    1    2. The director shall promulgate rules and regulations pursuant to the
    2  goals  established in subdivision one of this section that provide meas-
    3  ures and procedures to ensure that certified minority [and women-owned],
    4  WOMEN AND VETERAN-OWNED businesses shall be given  the  opportunity  for
    5  maximum feasible participation in the performance of state contracts and
    6  to  assist  in  the agency's identification of those state contracts for
    7  which minority [and  women-owned],  WOMEN  AND  VETERAN-OWNED  certified
    8  businesses may best bid to actively and affirmatively promote and assist
    9  their  participation  in  the  performance  of  state contracts so as to
   10  facilitate the agency's achievement of the maximum feasible  portion  of
   11  the goals for state contracts to such businesses.
   12    2-a.  The  director  shall  promulgate rules and regulations that will
   13  accomplish the following:
   14    (a) provide for the certification and decertification of minority [and
   15  women-owned], WOMEN AND VETERAN-OWNED business enterprises for all agen-
   16  cies through a single process that meets applicable requirements;
   17    (b) require that each contract solicitation document accompanying each
   18  solicitation  set  forth  the   expected   degree   of   minority   [and
   19  women-owned],  WOMEN AND VETERAN-OWNED business enterprise participation
   20  based, in part, on:
   21    (i) the potential subcontract opportunities  available  in  the  prime
   22  procurement contract; and
   23    (ii)  the  availability,  as  contained within the study, of certified
   24  minority [and women-owned], WOMEN AND VETERAN-OWNED business enterprises
   25  to respond competitively to the potential subcontract opportunities;
   26    (c) require that each agency  provide  a  current  list  of  certified
   27  minority,  WOMEN AND VETERAN-OWNED business enterprises to each prospec-
   28  tive contractor;
   29    (d) allow a contractor that is a certified [minority-owned  or  women-
   30  owned]  MINORITY,  WOMEN OR VETERAN-OWNED business enterprise to use the
   31  work it performs to meet requirements for use  of  certified  [minority-
   32  owned  or  women-owned] MINORITY, WOMEN OR VETERAN-OWNED business enter-
   33  prises as subcontractors;
   34    (e) provide for joint ventures, which a bidder may count toward  meet-
   35  ing  its  minority  [and  women-owned], WOMEN AND VETERAN-OWNED business
   36  enterprise participation;
   37    (f) consistent with subdivision  six  of  this  section,  provide  for
   38  circumstances  under  which  an  agency  may  waive  obligations  of the
   39  contractor  relating  to   minority   [and   women-owned],   WOMEN   AND
   40  VETERAN-OWNED business enterprise participation;
   41    (g)  require  that  an  agency verify that minority [and women-owned],
   42  WOMEN AND VETERAN-OWNED business enterprises listed in a successful  bid
   43  are actually participating to the extent listed in the project for which
   44  the bid was submitted;
   45    (h)  provide  for  the  collection  of statistical data by each agency
   46  concerning actual minority [and women-owned],  WOMEN  AND  VETERAN-OWNED
   47  business enterprise participation; and
   48    (i)  require  each  agency to consult the most current disparity study
   49  when calculating agency-wide and contract specific  participation  goals
   50  pursuant to this article.
   51    3.  Solely for the purpose of providing the opportunity for meaningful
   52  participation by  certified  businesses  in  the  performance  of  state
   53  contracts  as  provided  in  this section, state contracts shall include
   54  leases of real property by a state agency to a lessee where:  the  terms
   55  of  such  leases  provide for the construction, demolition, replacement,
   56  major repair or renovation of real property and improvements thereon  by
       S. 1655                             8
    1  such lessee; and the cost of such construction, demolition, replacement,
    2  major  repair  or  renovation  of real property and improvements thereon
    3  shall exceed the sum of one hundred thousand  dollars.  Reports  to  the
    4  director pursuant to section three hundred fifteen of this article shall
    5  include activities with respect to all such state contracts. Contracting
    6  agencies  shall  include or require to be included with respect to state
    7  contracts for the acquisition,  construction,  demolition,  replacement,
    8  major  repair  or  renovation of real property and improvements thereon,
    9  such provisions as may be necessary to effectuate the provisions of this
   10  section in every bid specification and state  contract,  including,  but
   11  not  limited  to:  (a)  provisions  requiring contractors to make a good
   12  faith effort to solicit active participation by  enterprises  identified
   13  in  the  directory  of  certified businesses provided to the contracting
   14  agency by the office; (b) requiring the parties to agree as a  condition
   15  of entering into such contract, to be bound by the provisions of section
   16  three  hundred sixteen of this article; and (c) requiring the contractor
   17  to include the provisions set forth in paragraphs (a) and  (b)  of  this
   18  subdivision in every subcontract in a manner that the provisions will be
   19  binding  upon  each  subcontractor  as  to  work in connection with such
   20  contract. Provided, however, that no such provisions  shall  be  binding
   21  upon  contractors  or  subcontractors  in the performance of work or the
   22  provision of services that are unrelated, separate or distinct from  the
   23  state  contract  as  expressed by its terms, and nothing in this section
   24  shall authorize the director or any contracting  agency  to  impose  any
   25  requirement  on  a  contractor or subcontractor except with respect to a
   26  state contract.
   27    4. In the implementation of this section, the contracting agency shall
   28  (a) consult the findings contained within the disparity study evidencing
   29  relevant industry specific availability of certified businesses;
   30    (b) implement a program that will enable the agency to  evaluate  each
   31  contract to determine the appropriateness of the goal pursuant to subdi-
   32  vision one of this section;
   33    (c)  consider  where  practicable,  the  severability  of construction
   34  projects and other bundled contracts; and
   35    (d) consider compliance with  the  requirements  of  any  federal  law
   36  concerning  opportunities  for  minority  [and  women-owned],  WOMEN AND
   37  VETERAN-OWNED business enterprises which effectuates the purpose of this
   38  section. The contracting agency shall determine whether  the  imposition
   39  of  the  requirements  of  any  such  law duplicate or conflict with the
   40  provisions hereof and  if  such  duplication  or  conflict  exists,  the
   41  contracting  agency shall waive the applicability of this section to the
   42  extent of such duplication or conflict.
   43    5. (a) Contracting agencies shall administer the rules and regulations
   44  promulgated by the director in a good faith effort to meet  the  maximum
   45  feasible  portion of the agency's goals adopted pursuant to this article
   46  and the regulations of the director. Such rules and  regulations:  shall
   47  require a contractor to submit a utilization plan after bids are opened,
   48  when  bids  are  required,  but  prior to the award of a state contract;
   49  shall require the contracting agency  to  review  the  utilization  plan
   50  submitted  by  the  contractor  and to post the utilization plan and any
   51  waivers of compliance issued pursuant to subdivision six of this section
   52  on the website of the contracting agency within a reasonable  period  of
   53  time as established by the director; shall require the contracting agen-
   54  cy to notify the contractor in writing within a period of time specified
   55  by  the  director  as  to any deficiencies contained in the contractor's
   56  utilization plan; shall require remedy thereof within a period  of  time
       S. 1655                             9
    1  specified  by the director; shall require the contractor to submit peri-
    2  odic compliance reports relating to the operation and implementation  of
    3  any  utilization  plan;  shall not allow any automatic waivers but shall
    4  allow a contractor to apply for a partial or total waiver of the minori-
    5  ty  [and  women-owned],  WOMEN  AND  VETERAN-OWNED  business  enterprise
    6  participation requirements pursuant to subdivisions  six  and  seven  of
    7  this  section;  shall  allow  a  contractor to file a complaint with the
    8  director pursuant to subdivision eight of this section in  the  event  a
    9  contracting agency has failed or refused to issue a waiver of the minor-
   10  ity  [and  women-owned],  WOMEN  AND  VETERAN-OWNED  business enterprise
   11  participation requirements or has denied such request for a waiver;  and
   12  shall  allow  a contracting agency to file a complaint with the director
   13  pursuant to subdivision nine of this section in the event  a  contractor
   14  is  failing or has failed to comply with the minority [and women-owned],
   15  WOMEN AND VETERAN-OWNED business enterprise  participation  requirements
   16  set forth in the state contract where no waiver has been granted.
   17    (b) The rules and regulations promulgated pursuant to this subdivision
   18  regarding  a  utilization plan shall provide that where enterprises have
   19  been identified within a utilization plan, a contractor  shall  attempt,
   20  in  good  faith, to utilize such enterprise at least to the extent indi-
   21  cated. A contracting agency may require a contractor to indicate, within
   22  a utilization plan, what measures and procedures he or  she  intends  to
   23  take to comply with the provisions of this article, but may not require,
   24  as  a  condition  of  award  of,  or  compliance with, a contract that a
   25  contractor  utilize  a  particular  enterprise  in  performance  of  the
   26  contract.
   27    (c) Without limiting other grounds for the disqualification of bids or
   28  proposals  on  the basis of non-responsibility, a contracting agency may
   29  disqualify the bid or proposal of a contractor as being  non-responsible
   30  for  failure  to  remedy notified deficiencies contained in the contrac-
   31  tor's utilization plan within a period of time specified in  regulations
   32  promulgated  by  the director after receiving notification of such defi-
   33  ciencies from the contracting agency. Where failure to remedy any  noti-
   34  fied  deficiency  in  the utilization plan is a ground for disqualifica-
   35  tion, that issue and all other grounds  for  disqualification  shall  be
   36  stated in writing by the contracting agency. Where the contracting agen-
   37  cy states that a failure to remedy any notified deficiency in the utili-
   38  zation  plan  is  a  ground for disqualification the contractor shall be
   39  entitled to an  administrative  hearing,  on  a  record,  involving  all
   40  grounds  stated  by  the  contracting  agency.  Such  hearing  shall  be
   41  conducted by the appropriate authority  of  the  contracting  agency  to
   42  review  the  determination  of  disqualification. A final administrative
   43  determination made following such  hearing  shall  be  reviewable  in  a
   44  proceeding  commenced  under article seventy-eight of the civil practice
   45  law and rules, provided that such proceeding is commenced within  thirty
   46  days  of  the  notice  given  by certified mail return receipt requested
   47  rendering such final administrative determination. Such proceeding shall
   48  be commenced in the supreme court, appellate division, third  department
   49  and  such  proceeding  shall  be  preferred  over all other civil causes
   50  except election causes, and shall be heard and determined in  preference
   51  to  all  other  civil business pending therein, except election matters,
   52  irrespective of position on the calendar. Appeals taken to the court  of
   53  appeals  of  the  state of New York shall be subject to the same prefer-
   54  ence.
   55    6. Where it appears that a  contractor  cannot,  after  a  good  faith
   56  effort,   comply   with   the  minority  [and  women-owned],  WOMEN  AND
       S. 1655                            10
    1  VETERAN-OWNED business enterprise participation requirements  set  forth
    2  in a particular state contract, a contractor may file a written applica-
    3  tion with the contracting agency requesting a partial or total waiver of
    4  such  requirements  setting  forth  the  reasons  for  such contractor's
    5  inability to meet any or all of the participation requirements  together
    6  with  an  explanation  of  the  efforts  undertaken by the contractor to
    7  obtain the required minority [and women-owned], WOMEN AND  VETERAN-OWNED
    8  business  enterprise  participation.  In  implementing the provisions of
    9  this section, the contracting agency shall consider the number and types
   10  of minority [and women-owned], WOMEN AND VETERAN-OWNED  business  enter-
   11  prises  located  in  the  region  in  which  the state contract is to be
   12  performed, the total dollar value of the state contract,  the  scope  of
   13  work  to  be  performed and the project size and term. If, based on such
   14  considerations, the contracting agency determines there is not a reason-
   15  able availability of contractors on the  list  of  certified  [business]
   16  BUSINESSES  to furnish services for the project, it shall issue a waiver
   17  of compliance to the  contractor.  In  making  such  determination,  the
   18  contracting  agency shall first consider the availability of other busi-
   19  ness enterprises located in the region and shall thereafter consider the
   20  financial ability of minority [and women-owned], WOMEN AND VETERAN-OWNED
   21  businesses located outside the region in which the  contract  is  to  be
   22  performed to perform the state contract.
   23    7.  For  purposes  of  determining a contractor's good faith effort to
   24  comply with the requirements of this section or  to  be  entitled  to  a
   25  waiver therefrom the contracting agency shall consider:
   26    (a)  whether  the  contractor  has  advertised  in general circulation
   27  media, trade association publications, and [minority-focus and women-fo-
   28  cus] MINORITY-FOCUSED, WOMEN-FOCUSED AND VETERAN-FOCUSED media  and,  in
   29  such  event,  (i)  whether  or  not certified minority [or women-owned],
   30  WOMEN OR VETERAN-OWNED businesses  which  have  been  solicited  by  the
   31  contractor  exhibited  interest in submitting proposals for a particular
   32  project by attending a pre-bid conference; and
   33    (ii) whether certified businesses which have  been  solicited  by  the
   34  contractor have responded in a timely fashion to the contractor's solic-
   35  itations  for timely competitive bid quotations prior to the contracting
   36  agency's bid date; and
   37    (b) whether there has been written notification to appropriate  certi-
   38  fied  businesses  that  appear  in the directory of certified businesses
   39  prepared pursuant to paragraph (f) of subdivision three of section three
   40  hundred eleven of this article; and
   41    (c) whether the contractor can reasonably structure the amount of work
   42  to be performed under subcontracts in order to increase  the  likelihood
   43  of participation by certified businesses.
   44    8.  In the event that a contracting agency fails or refuses to issue a
   45  waiver to a contractor as requested within twenty days after having made
   46  application therefor pursuant to subdivision six of this section  or  if
   47  the contracting agency denies such application, in whole or in part, the
   48  contractor  may  file  a complaint with the director pursuant to section
   49  three hundred sixteen of  this  article  setting  forth  the  facts  and
   50  circumstances  giving rise to the contractor's complaint together with a
   51  demand for relief. The contractor shall serve a copy of  such  complaint
   52  upon  the  contracting  agency by personal service or by certified mail,
   53  return receipt requested. The contracting agency shall  be  afforded  an
   54  opportunity to respond to such complaint in writing.
   55    9.  If, after the review of a contractor's minority [and women owned],
   56  WOMEN AND VETERAN-OWNED business utilization plan or review of a period-
       S. 1655                            11
    1  ic compliance report and after such  contractor  has  been  afforded  an
    2  opportunity to respond to a notice of deficiency issued by the contract-
    3  ing  agency  in  connection  therewith,  it appears that a contractor is
    4  failing or refusing to comply with the minority [and women-owned], WOMEN
    5  AND  VETERAN-OWNED  business  participation requirements as set forth in
    6  the state contract and where no waiver from such requirements  has  been
    7  granted,  the  contracting  agency may file a written complaint with the
    8  director pursuant to section  three  hundred  sixteen  of  this  article
    9  setting forth the facts and circumstances giving rise to the contracting
   10  agency's  complaint  together with a demand for relief.  The contracting
   11  agency shall serve a copy of  such  complaint  upon  the  contractor  by
   12  personal  service  or  by  certified mail, return receipt requested. The
   13  contractor shall be afforded an opportunity to respond to such complaint
   14  in writing.
   15    S 8. Section 313-a of the executive law, as added by  chapter  175  of
   16  the laws of 2010, is amended to read as follows:
   17    S  313-a. Diversity practices of state contractors. The director shall
   18  promulgate rules and regulations setting forth measures  and  procedures
   19  to  require  all  contracting  agencies, where practicable, feasible and
   20  appropriate, to assess the diversity practices of contractors submitting
   21  bids or proposals in connection with the award of a state contract. Such
   22  rules and regulations shall take into account: the nature of the  labor,
   23  services,  supplies,  equipment or materials being procured by the state
   24  agency; the method of procurement required to be used by a state  agency
   25  to  award  the contract and minority [and women-owned], WOMEN AND VETER-
   26  AN-OWNED business utilization plans required to be submitted pursuant to
   27  sections three hundred twelve and three hundred thirteen of  this  arti-
   28  cle;  and such other factors as the director deems appropriate or neces-
   29  sary to promote the award of state contracts to contractors having sound
   30  diversity practices.  Such assessment shall not in any  way  permit  the
   31  automatic  rejection  of a bid or procurement contract proposal based on
   32  lack of adherence to diversity practices.  Each bid or proposal shall be
   33  analyzed on an individual  per  bid  or  per  proposal  basis  with  the
   34  contractor's  diversity  practices  considered as only a part of a wider
   35  consideration of several factors when deciding to award  or  decline  to
   36  award a bid or proposal.  The director shall develop the rules and regu-
   37  lations  required  hereunder  only  after  consultation  with  the state
   38  procurement council established by section one hundred sixty-one of  the
   39  state finance law.
   40    S  9.  Subdivisions  2  and  2-a  of section 314 of the executive law,
   41  subdivision 2 as added by chapter 261 of the laws of 1988  and  subdivi-
   42  sion  2-a  as amended by chapter 175 of the laws of 2010, are amended to
   43  read as follows:
   44    2. For the purposes of this article, the office shall  be  responsible
   45  for  verifying  businesses  as  being owned, operated, and controlled by
   46  minority group members [or], women OR VETERANS and for  certifying  such
   47  verified businesses. The director shall prepare a directory of certified
   48  businesses  for  use by contracting agencies and contractors in carrying
   49  out the provisions of this  article.  The  director  shall  periodically
   50  update the directory.
   51    2-a.  (a) The director shall establish a procedure enabling the office
   52  to accept New York municipal corporation certification verification  for
   53  minority  [and women-owned], WOMEN AND VETERAN-OWNED business enterprise
   54  applicants in lieu of requiring the  applicant  to  complete  the  state
   55  certification  process.  The  director  shall promulgate rules and regu-
   56  lations to set forth criteria for the  acceptance  of  municipal  corpo-
       S. 1655                            12
    1  ration  certification. All eligible municipal corporation certifications
    2  shall require business enterprises seeking  certification  to  meet  the
    3  following standards:
    4    (i)  have  at  least  fifty-one  percent ownership by a minority [or a
    5  women-owned], WOMEN OR VETERAN-OWNED enterprise and be owned  by  United
    6  States citizens or permanent resident aliens;
    7    (ii)  be an enterprise in which the minority [and/or women-ownership],
    8  WOMEN AND/OR VETERAN-OWNERSHIP interest is real, substantial and contin-
    9  uing;
   10    (iii) be an enterprise in which the minority [and/or women-ownership],
   11  WOMEN AND/OR  VETERAN-OWNERSHIP  has  and  exercises  the  authority  to
   12  control  independently  the  day-to-day business decisions of the enter-
   13  prise;
   14    (iv) be an enterprise authorized to do business in this state;
   15    (v) be subject to a physical site inspection to verify  the  fifty-one
   16  percent ownership requirement;
   17    (vi)  be  owned  by  an  individual  or  individuals, whose ownership,
   18  control and operation are relied upon for certification, with a personal
   19  net worth that does not  exceed  three  million  five  hundred  thousand
   20  dollars,  as  adjusted  annually for inflation according to the consumer
   21  price index; and
   22    (vii) be an enterprise that is a small business pursuant  to  subdivi-
   23  sion twenty of section three hundred ten of this article.
   24    (b)  The director shall work with all municipal corporations that have
   25  a municipal minority [and women-owned], WOMEN AND VETERAN-OWNED business
   26  enterprise program to develop standards to accept state certification to
   27  meet the municipal corporation minority  [and  women-owned],  WOMEN  AND
   28  VETERAN-OWNED business enterprise certification standards.
   29    (c)  The director shall establish a procedure enabling the division to
   30  accept   federal   certification   verification   for   minority    [and
   31  women-owned],  WOMEN  AND  VETERAN-OWNED business enterprise applicants,
   32  provided said standards comport with those required by the state minori-
   33  ty [and women-owned], WOMEN AND VETERAN-OWNED business program, in  lieu
   34  of  requiring the applicant to complete the state certification process.
   35  The director shall promulgate rules and regulations to set forth  crite-
   36  ria for the acceptance of federal certification.
   37    S  10. Subdivisions 3, 4, 5 and 7 of section 315 of the executive law,
   38  subdivision 3 as amended and subdivisions 4, 5 and 7 as added by chapter
   39  175 of the laws of 2010, are amended to read as follows:
   40    3. Each contracting agency shall report to the director  with  respect
   41  to activities undertaken to promote employment of minority group members
   42  [and],  women  AND  VETERANS  and  promote and increase participation by
   43  certified businesses with respect to state contracts  and  subcontracts.
   44  Such  reports  shall  be submitted periodically, but not less frequently
   45  than annually, as required by  the  director,  and  shall  include  such
   46  information  as  is  necessary for the director to determine whether the
   47  contracting agency and contractor have complied  with  the  purposes  of
   48  this article, including, without limitation, a summary of all waivers of
   49  the  requirements of subdivisions six and seven of section three hundred
   50  thirteen of this article allowed by the contracting  agency  during  the
   51  period  covered  by  the report, including a description of the basis of
   52  the waiver request and the rationale for granting any such waiver.  Each
   53  agency  shall  also  include in such annual report whether or not it has
   54  been required to prepare a remedial plan, and, if so, the plan  and  the
   55  extent to which the agency has complied with each element of the plan.
       S. 1655                            13
    1    4.  The  division  of  minority  [and], women's AND VETERANS' business
    2  development shall issue an  annual  report  which:  (a)  summarizes  the
    3  report  submitted  by  each  contracting  agency pursuant to subdivision
    4  three of this section; (b) contains such comparative or  other  informa-
    5  tion  as  the  director  deems appropriate, including but not limited to
    6  goals compared to actual participation of  minority  [and  women-owned],
    7  WOMEN  AND  VETERAN-OWNED  business enterprises in state contracting, to
    8  evaluate the effectiveness of the activities  undertaken  by  each  such
    9  contracting  agency  to  promote  increased  participation  by certified
   10  minority  [or  women-owned],  WOMEN  OR  VETERAN-OWNED  businesses  with
   11  respect  to  state contracts and subcontracts; (c) contains a summary of
   12  all waivers of the requirements of subdivisions six and seven of section
   13  three hundred thirteen of this article allowed by each contracting agen-
   14  cy during the period covered by the report, including a  description  of
   15  the  basis  of the waiver request and the contracting agency's rationale
   16  for granting any such waiver; (d) describes  any  efforts  to  create  a
   17  database  or  other  information storage and retrieval system containing
   18  information relevant to contracting  with  minority  [and  women-owned],
   19  WOMEN AND VETERAN-OWNED business enterprises; and (e) contains a summary
   20  of  (i) all determinations of violations of this article by a contractor
   21  or a contracting agency made during the period  covered  by  the  annual
   22  report  pursuant  to section three hundred sixteen-a of this article and
   23  (ii) the penalties or sanctions, if any,  assessed  in  connection  with
   24  such  determinations  and the rationale for such penalties or sanctions.
   25  Copies of the annual report shall be provided to the  commissioner,  the
   26  governor,  the  comptroller,  the temporary president of the senate, the
   27  speaker of the assembly, the minority leader of the senate, the minority
   28  leader of the assembly and shall also be made widely  available  to  the
   29  public  via,  among other things, publication on a website maintained by
   30  the division of minority [and], women's AND VETERANS' business  develop-
   31  ment.
   32    5.  Each agency shall include in its annual report to the governor and
   33  legislature pursuant to section one hundred sixty-four of [the executive
   34  law] THIS CHAPTER its annual goals  for  contracts  with  minority-owned
   35  [and], women-owned AND VETERAN-OWNED business enterprises, the number of
   36  actual  contracts issued to minority-owned [and], women-owned AND VETER-
   37  AN-OWNED business enterprises; and a  summary  of  all  waivers  of  the
   38  requirements  of  subdivisions  six  and  seven of section three hundred
   39  thirteen of this article allowed by  the  reporting  agency  during  the
   40  preceding  year,  including  a  description  of  the basis of the waiver
   41  request and the rationale for granting such waiver.  Each  agency  shall
   42  also  include  in such annual report whether or not it has been required
   43  to prepare a remedial plan, and, if so, the plan and the extent to which
   44  the agency has complied with each element of the plan.
   45    7.  If it is determined by the director that any agency has failed  to
   46  act  in  good  faith  to implement the remedial action plan, pursuant to
   47  subdivision six of this section within  one  year,  the  director  shall
   48  provide written notice of such a finding, which shall be publicly avail-
   49  able, and direct implementation of remedial actions to:
   50    (a)  assure  that  sufficient  and  effective  solicitation efforts to
   51  women, VETERAN and minority-owned business enterprises are being made by
   52  said agency;
   53    (b) divide contract requirements,  when  economically  feasible,  into
   54  quantities  that  will  expand  the  participation of women, VETERAN and
   55  minority-owned business enterprises;
       S. 1655                            14
    1    (c) eliminate extended experience or capitalization requirements, when
    2  programmatically and economically feasible,  that  will  expand  partic-
    3  ipation by women, VETERAN and minority-owned business enterprises;
    4    (d) identify specific proposed contracts as particularly attractive or
    5  appropriate for participation by women, VETERAN and minority-owned busi-
    6  ness  enterprises with such identification to result from and be coupled
    7  with the efforts of paragraphs (a), (b), and (c)  of  this  subdivision;
    8  and
    9    (e)  upon  a finding by the director that an agency has failed to take
   10  affirmative measures to implement the remedial plan and to follow any of
   11  the remedial actions set forth by the director, and in  the  absence  of
   12  any  objective  progress towards the agency's goals, require some or all
   13  of the agency's procurement, for a specified period of time,  be  placed
   14  under the direction and control of another agency or agencies.
   15    S  11.  Section 316 of the executive law, as amended by chapter 175 of
   16  the laws of 2010, is amended to read as follows:
   17    S 316. Enforcement. Upon receipt by the director of a complaint  by  a
   18  contracting  agency  that  a contractor has violated the provisions of a
   19  state contract which have been included to comply with the provisions of
   20  this article or of a contractor that a contracting agency  has  violated
   21  such provisions or has failed or refused to issue a waiver where one has
   22  been  applied  for  pursuant to subdivision six of section three hundred
   23  thirteen of this article or has denied such  application,  the  director
   24  shall  attempt  to  resolve the matter giving rise to such complaint. If
   25  efforts to resolve such matter to the satisfaction of  all  parties  are
   26  unsuccessful, the director shall refer the matter, within thirty days of
   27  the  receipt  of the complaint, to the division's hearing officers. Upon
   28  conclusion of the administrative  hearing,  the  hearing  officer  shall
   29  submit  to  the  director  his  or  her  decision  regarding the alleged
   30  violation of the contract and recommendations regarding  the  imposition
   31  of  sanctions,  fines  or  penalties.  The  director, within ten days of
   32  receipt of the decision, shall file a determination of such  matter  and
   33  shall cause a copy of such determination along with a copy of this arti-
   34  cle to be served upon the contractor by personal service or by certified
   35  mail return receipt requested. The decision of the hearing officer shall
   36  be  final  and  may  only  be vacated or modified as provided in article
   37  seventy-eight of the civil practice law and rules  upon  an  application
   38  made  within the time provided by such article. The determination of the
   39  director as to the imposition of any fines, sanctions or penalties shall
   40  be reviewable pursuant to article seventy-eight of  the  civil  practice
   41  law and rules. The penalties imposed for any violation which is premised
   42  upon  either  a  fraudulent  or  intentional  misrepresentation  by  the
   43  contractor or the contractor's willful and intentional disregard of  the
   44  minority   [and  women-owned],  WOMEN  AND  VETERAN-OWNED  participation
   45  requirement included in the contract may include  a  determination  that
   46  the  contractor  shall  be ineligible to submit a bid to any contracting
   47  agency or be awarded any such contract for a period not  to  exceed  one
   48  year  following the final determination; provided however, if a contrac-
   49  tor has previously been determined to be  ineligible  to  submit  a  bid
   50  pursuant  to  this  section,  the  penalties  imposed for any subsequent
   51  violation, if such violation occurs  within  five  years  of  the  first
   52  violation,  may  include  a  determination  that the contractor shall be
   53  ineligible to submit a bid to any contracting agency or be  awarded  any
   54  such  contract for a period not to exceed five years following the final
   55  determination. The division  of  minority  [and  women's],  WOMEN'S  AND
   56  VETERANS'  business  development  shall  maintain  a website listing all
       S. 1655                            15
    1  contractors that have been deemed ineligible to submit a bid pursuant to
    2  this section and the date after which each contractor shall  once  again
    3  become eligible to submit bids.
    4    S  12.  Section 316-a of the executive law, as added by chapter 175 of
    5  the laws of 2010, is amended to read as follows:
    6    S 316-a. Prohibitions  in  contracts;  violations.  Every  contracting
    7  agency  shall  include  a  provision  in  its  state contracts expressly
    8  providing that any contractor who willfully and intentionally  fails  to
    9  comply  with  the  minority  [and  women-owned], WOMEN AND VETERAN-OWNED
   10  participation requirements of this article as set forth  in  such  state
   11  contract  shall  be  liable  to the contracting agency for liquidated or
   12  other appropriate damages and shall provide for other appropriate  reme-
   13  dies  on  account  of  such  breach. A contracting agency that elects to
   14  proceed against a contractor for breach of contract as provided in  this
   15  section  shall be precluded from seeking enforcement pursuant to section
   16  three hundred sixteen  of  this  article;  provided  however,  that  the
   17  contracting  agency  shall  include a summary of all enforcement actions
   18  undertaken pursuant to this  section  in  its  annual  report  submitted
   19  pursuant  to  subdivision three of section three hundred fifteen of this
   20  article.
   21    S 13. Section 317 of the executive law, as added by chapter 261 of the
   22  laws of 1988, is amended to read as follows:
   23     S 317. Superseding effect of article with respect to state  law.  The
   24  provisions  of this article shall supersede any other provision of state
   25  law, which expressly implements or mandates an equal employment opportu-
   26  nity program or a program for securing participation  by  minority  [and
   27  women-owned],  WOMEN  AND VETERAN-OWNED business enterprises, concerning
   28  action to be taken by any party  to  a  state  contract,  to  which  the
   29  provisions of this article apply; provided, however, that the provisions
   30  of  any state law, not as hereinabove superseded, which expressly imple-
   31  ment or mandate such programs shall remain unimpaired by the  provisions
   32  of  this  article,  except  that the provisions of any such law shall be
   33  construed as if the provisions of  subdivisions  five,  six,  seven  and
   34  eight  of  section  three  hundred  thirteen  and  section three hundred
   35  sixteen of this article were fully set forth therein and made applicable
   36  only to complaints of violations under such provisions of law  occurring
   37  on  or  after  September first, nineteen hundred eighty-eight; provided,
   38  further, that nothing contained in this article shall  be  construed  to
   39  limit,  impair,  or  otherwise  restrict any state agency's authority or
   40  discretionary power in effect prior to the enactment of this article  to
   41  establish  or  continue,  by  rule,  regulation  or resolution, an equal
   42  opportunity program or a program for securing participation of  minority
   43  [and  women-owned],  WOMEN  AND  VETERAN-OWNED business enterprises with
   44  regard to banking relationships, the issuance of insurance  policies  or
   45  contracts  for  the  sale  of  bonds,  notes  or  other securities; and,
   46  provided further, that nothing contained in  the  immediately  preceding
   47  proviso  shall  be  construed  to  create, impair, alter, limit, modify,
   48  enlarge, abrogate or restrict any agency's  authority  or  discretionary
   49  power  with  respect  to  an  equal opportunity program or a program for
   50  securing participation of minority [and women-owned], WOMEN  AND  VETER-
   51  AN-OWNED enterprises.
   52    S 14. Section 4-a of the executive law, as added by chapter 175 of the
   53  laws of 2010, is amended to read as follows:
   54    S  4-a.  Chief  diversity  officer.  A chief diversity officer for the
   55  state shall be appointed by the governor and shall receive a  salary  to
       S. 1655                            16
    1  be  fixed  by  the governor within the amount appropriated therefor. The
    2  chief diversity officer's responsibilities shall include the following:
    3    1.  Advise and assist the governor in formulating policies relating to
    4  workforce diversity and minority [and], women's AND  VETERANS'  business
    5  enterprises;
    6    2.  Work  with the director of the division of minority [and], women's
    7  AND VETERANS' business development to prepare an annual plan for  ensur-
    8  ing  full  compliance  with  article  [fifteen-a  of  the executive law]
    9  FIFTEEN-A OF THIS CHAPTER by state agencies and  the  use  of  diversity
   10  practices by such agencies;
   11    3.  Advise the governor and the agencies regarding any measures neces-
   12  sary to ensure full compliance with  article  [fifteen-a]  FIFTEEN-A  of
   13  this chapter and use of diversity practices by state public authorities;
   14    4.  Serve  as  a  member  of the state procurement council established
   15  under section one hundred sixty-one of the state finance law;
   16    5. Serve as the governor's  liaison  with  organizations  representing
   17  minority [and women-owned], WOMEN AND VETERAN-OWNED business enterprises
   18  and  other organizations related to diversity in the state workforce and
   19  in state contracting;
   20    6. Serve as the governor's liaison  to  the  small  business  advisory
   21  council  for  issues  related to the creation of a diverse workforce and
   22  state procurement practices  relating  to  minority  [and  women-owned],
   23  WOMEN AND VETERAN-OWNED business enterprises;
   24    7. Review and consult with the director of minority [and], women's AND
   25  VETERANS'  business  development regarding policies relating to minority
   26  [and women-owned], WOMEN AND VETERAN-OWNED business enterprise  contract
   27  specialists at state agencies; and
   28    8.  Engage  in  other  actions  assigned to him or her by the governor
   29  relating to diversity in hiring or promotion of the state workforce  and
   30  in   encouraging   diversity   practices  and  compliance  with  article
   31  [fifteen-a] FIFTEEN-A of this chapter in procurement.
   32    S 15. The article heading of article 4-A of the  economic  development
   33  law,  as  added by chapter 55 of the laws of 1992, is amended to read as
   34  follows:
   35    DIVISION OF MINORITY [AND], WOMEN'S AND VETERANS' BUSINESS DEVELOPMENT
   36    S 16. Section 115 of the economic development law, as added by chapter
   37  55 of the laws of 1992, is amended to read as follows:
   38    S 115. Definitions. As used in this article, the following terms shall
   39  have the following meanings:
   40    1. "Division" shall mean the division of minority [and],  women's  AND
   41  VETERANS' business development created by this article.
   42    2. "Technical  assistance" shall mean assistance and services designed
   43  to improve the efficiency, effectiveness and viability of a minority [or
   44  women-owned], WOMEN OR VETERAN-OWNED business enterprise, including, but
   45  not limited to, management assistance, problem solving, the  development
   46  of  business  and  marketing plans, market analysis, financial planning,
   47  regulatory compliance, safety and security measures, export  assistance,
   48  procurement  assistance,  application  assistance, state program assist-
   49  ance, referral to private  and  public  financing  sources,  contracting
   50  assistance,  and  other forms of assistance which the commissioner deems
   51  necessary and appropriate.
   52    S 17. Section 116 of the economic development law, as added by chapter
   53  55 of the laws of 1992, is amended to read as follows:
   54    S 116. Office of minority [and], women's AND VETERANS' business devel-
   55  opment; transfer.  All the functions and powers possessed by and all the
   56  obligations and duties of  the  governor's  office  of  minority  [and],
       S. 1655                            17
    1  women's  AND  VETERANS'  business development office, created and estab-
    2  lished in the executive law [pursuant to  and  by  chapter  two  hundred
    3  sixty-one  of  the  laws  of  nineteen hundred eighty-eight], are hereby
    4  transferred and assigned to, assumed by and devolved upon the department
    5  of economic development.
    6    S 18. Section 117 of the economic development law, as added by chapter
    7  55 of the laws of 1992, is amended to read as follows:
    8    S  117.  Division  of  minority  [and], women's AND VETERANS' business
    9  development. There is hereby created within the department  of  economic
   10  development  a  division of minority and [women-owned], WOMEN AND VETER-
   11  AN-OWNED business development.  The director of such division  shall  be
   12  appointed  by the governor, shall report directly to the commissioner on
   13  the activities of the division, and shall hold office at the pleasure of
   14  the commissioner. The commissioner may appoint such officers, employees,
   15  agents, consultants and special committees as he or she may deem  neces-
   16  sary  to  carry  out  the provisions of this article and prescribe their
   17  duties.
   18    S 19. Section 118 of the economic development law, as added by chapter
   19  55 of the laws of 1992 and subdivision 7 as further amended  by  section
   20  15  of  part GG of chapter 63 of the laws of 2000, is amended to read as
   21  follows:
   22    S 118. Power and duties. In addition to the power and duties conferred
   23  by section one hundred sixteen of this article, the division shall  have
   24  the additional power and duty to:
   25    1.  Coordinate  with all state agencies performing functions affecting
   26  the operations of  minority  [business  enterprises,  and  women-owned],
   27  WOMEN AND VETERAN-OWNED business enterprises, AND VETERAN-OWNED BUSINESS
   28  ENTERPRISES as such terms are defined in section two hundred ten of this
   29  chapter;
   30    2.  Receive  complaints  and  inquiries  of operators of minority [and
   31  women-owned], WOMEN AND VETERAN-OWNED  business  enterprises  and  refer
   32  them  to  the appropriate federal, state or local agency for appropriate
   33  action on such complaints;
   34    3. Solicit recommendations from the operators of minority [and  women-
   35  owned],  WOMEN  AND  VETERAN-OWNED  business  enterprises  for improving
   36  existing state programs and refer such recommendations to the  governor,
   37  the legislature and appropriate state agencies or authorities;
   38    4.  Advise and make recommendations to the commissioner and the legis-
   39  lature on matters affecting the minority  [and  women-owned],  WOMEN  OR
   40  VETERAN-OWNED  business enterprises of the state and promote and encour-
   41  age the protection of the legitimate interests of minority  [and  women-
   42  owned], WOMEN OR VETERAN-OWNED business enterprises within the state;
   43    5.  Conduct  investigations, research, studies and analyses of matters
   44  affecting the interests of minority [and women-owned], WOMEN AND  VETER-
   45  AN-OWNED business enterprises;
   46    6.  Study  the  implementation  of  the  laws  affecting minority [and
   47  women-owned], WOMEN AND VETERAN-OWNED business enterprises and recommend
   48  to the commissioner new laws and amendments of laws for the  benefit  of
   49  minority  [and  women-owned],  WOMEN  AND  VETERAN-OWNED business enter-
   50  prises; and review pending legislation affecting  minority  [and  women-
   51  owned],  WOMEN  AND  VETERAN-OWNED  business  enterprises and report its
   52  findings to the commissioner;
   53    7. Provide technical  assistance  and  information  to  minority  [and
   54  women-owned],  WOMEN AND VETERAN-OWNED business enterprises in the state
   55  on economic development programs administered by the department, includ-
   56  ing, but not limited to:   (a) the  empire  zones  program,  established
       S. 1655                            18
    1  pursuant  to  article  eighteen-B  of the general municipal law, (b) the
    2  industrial effectiveness program, established pursuant to article  seven
    3  of  this  chapter, (c) the economic development skills training program,
    4  established  pursuant  to  article  eight  of  this chapter, and (d) the
    5  entrepreneurial assistance program, established pursuant to article nine
    6  of this chapter;
    7    8. Provide technical  assistance  and  information  to  minority  [and
    8  women-owned],  WOMEN AND VETERAN-OWNED business enterprises in the state
    9  on economic development programs administered by agencies other than the
   10  department, including, but not limited to programs administered  by  the
   11  urban  development  corporation,  the  job development authority and the
   12  science and technology foundation;
   13    9. Be responsible for conducting minority [and women-owned], WOMEN AND
   14  VETERAN-OWNED business enterprise assistance programs and for coordinat-
   15  ing the activities of all other state agencies acting within  the  scope
   16  of this section; and
   17    10.  Carry  out  the  activities to implement the minority [and women-
   18  owned], WOMEN AND VETERAN-OWNED business enterprise assistance programs,
   19  to the extent practicable, within amounts appropriated therefor by;
   20    (a)  collecting  and  maintaining  information  identifying  certified
   21  minority [and women-owned], WOMEN AND VETERAN-OWNED business enterprises
   22  within New York state;
   23    (b)  collecting,  maintaining,  and providing information to potential
   24  users identifying existing  contracting  and  procurement  opportunities
   25  within and outside New York state;
   26    (c)  maintaining,  providing  and  marketing a compilation of existing
   27  programs providing assistance for minority [and women-owned], WOMEN  AND
   28  VETERAN-OWNED business enterprises;
   29    (d)  identifying  special  needs  and  problems  facing  minority [and
   30  women-owned], WOMEN AND VETERAN-OWNED business  enterprises  within  New
   31  York state;
   32    (e)  contacting institutions, organizations and commercial enterprises
   33  that are potential consumers of minority [and  women-owned],  WOMEN  AND
   34  VETERAN-OWNED  business  products  and  services;  urging their expanded
   35  consumption of such goods and services;
   36    (f) facilitating the  establishment  of  minority  [and  women-owned],
   37  WOMEN AND VETERAN-OWNED business enterprises; and
   38    (g)  providing information concerning local and regional opportunities
   39  for minority [and women-owned], WOMEN AND VETERAN-OWNED business  enter-
   40  prises.
   41    S  20. Subdivisions 1, 3 and 6 of section 120 of the economic develop-
   42  ment law, subdivision 1 as amended by chapter 361 of the  laws  of  2009
   43  and subdivisions 3 and 6 as added by chapter 55 of the laws of 1992, are
   44  amended to read as follows:
   45    1.  There is hereby created in the division of minority [and], women's
   46  AND VETERANS' business development a minority [and  women-owned],  WOMEN
   47  AND  VETERAN-OWNED  business  enterprise advisory board. The board shall
   48  consist of twelve members to be appointed by the governor. The  governor
   49  shall designate a chairperson from the members of the advisory board, to
   50  serve as such at the pleasure of the governor. In appointing the members
   51  of  the advisory board the governor shall ensure that six of the members
   52  are individuals who are currently involved in the ownership and/or oper-
   53  ation of a minority [or women-owned], WOMEN  OR  VETERAN-OWNED  business
   54  enterprise  or  who  have  extensive  experience in minority [and women-
   55  owned], WOMEN AND VETERAN-OWNED  business  enterprise  ownership  and/or
   56  operation,  and that at least two of the members are individuals repres-
       S. 1655                            19
    1  enting banking, community development  financial,  insurance  or  surety
    2  bonding institutions.
    3    3.  The  advisory board shall meet regularly at least one time in each
    4  year. Special meetings may be called by its  chairperson  and  shall  be
    5  called by the chairperson at the request of the director of the division
    6  of minority [and], women's AND VETERANS' business development.
    7    6. The board shall have the power and duty to:
    8    (a)  advise the commissioner in carrying out the functions, powers and
    9  duties of the division, as set forth in this article;
   10    (b)  advise  the  commissioner,  the  governor,  and  the  legislature
   11  concerning  recommended  legislation necessary to foster and promote the
   12  prosperity, expansion and development  of  minority  [and  women-owned],
   13  WOMEN AND VETERAN-OWNED business enterprises within the state;
   14    (c)  advise  the  commissioner,  the  governor,  and  the  legislature
   15  concerning existing laws, rules,  regulations  and  practices  of  state
   16  agencies  which  are  counter-productive  or inimical to the prosperity,
   17  expansion and development  of  minority  [and  women-owned],  WOMEN  AND
   18  VETERAN-OWNED business enterprises within the state;
   19    (d)  advise  the  commissioner,  the  governor,  and  the  legislature
   20  concerning the development of inter-governmental cooperation among agen-
   21  cies of the federal, state and local governments and cooperation between
   22  private industry and government so as to assure the optimum  development
   23  of  minority  [and women-owned], WOMEN AND VETERAN-OWNED business enter-
   24  prises; and
   25    (e) serve as a catalyst for creating and maintaining a  minority  [and
   26  women-owned],  WOMEN AND VETERAN-OWNED business enterprise consciousness
   27  in New York state.
   28    (f) establish procedures for making annual awards to be known as  "New
   29  York  State Minority [and Women-Owned], WOMEN AND VETERAN-OWNED Business
   30  Excelsior Awards". These non-monetary awards shall be given in  recogni-
   31  tion  of  unusual  performance by persons, firms and organizations which
   32  are engaged in the operation of a New York state  minority  [and  women-
   33  owned], WOMEN AND VETERAN-OWNED business enterprise or which are engaged
   34  in   activities   to   assist  minority  [and  women-owned],  WOMEN  AND
   35  VETERAN-OWNED business enterprises in the state. The board may  nominate
   36  up to five award winners annually and forward such names to the governor
   37  for  consideration.  The governor may designate award winners from these
   38  nominees. Current members of the advisory  board  are  not  eligible  as
   39  nominees.
   40    S 21. Section 210 of the economic development law is amended by adding
   41  a new subdivision 7 to read as follows:
   42    7.  "VETERAN-OWNED BUSINESS ENTERPRISE" SHALL MEAN ANY BUSINESS ENTER-
   43  PRISE WHICH IS AT LEAST FIFTY-ONE PER CENTUM OWNED BY, OR IN THE CASE OF
   44  A PUBLICLY OWNED BUSINESS AT LEAST FIFTY-ONE PER CENTUM OF THE STOCK  OF
   45  WHICH  IS OWNED BY, CITIZENS OR PERMANENT RESIDENT ALIENS WHO ARE VETER-
   46  ANS WHERE SUCH OWNERSHIP INTEREST IS REAL,  SUBSTANTIAL  AND  CONTINUING
   47  AND  WHERE  SUCH PERSONS HAVE THE AUTHORITY TO INDEPENDENTLY CONTROL THE
   48  DAY-TO-DAY BUSINESS DECISIONS OF THE ENTITY.
   49    S 22. Paragraph (h) of subdivision 6 of section 133  of  the  economic
   50  development  law,  as  amended  by  chapter  491 of the laws of 2013, is
   51  amended to read as follows:
   52    (h) advise the commissioner on recommendations for the selection of  a
   53  minority  [and women-owned], WOMEN AND VETERAN-OWNED business enterprise
   54  statewide advocate as set forth by section three hundred eleven-a of the
   55  executive law; and
       S. 1655                            20
    1    S 23. Subdivision 1 of section 231 of the economic development law, as
    2  amended by chapter 352 of the laws  of  2009,  is  amended  to  read  as
    3  follows:
    4    1. The department, through its regional offices, is authorized: (a) to
    5  serve  as  a  center  for  information  regarding  economic  development
    6  resources available from state,  federal  and  local  agencies;  (b)  to
    7  provide outreach to businesses, with attention to small and medium-sized
    8  businesses,    including   minority   [and   women-owned],   WOMEN   AND
    9  VETERAN-OWNED business enterprises, for financial and technical  assist-
   10  ance  offered  by  state  economic development agencies, authorities, or
   11  other economic entities; (c) to serve as a  regional  center  to  accept
   12  applications  for state economic development programs; (d) to coordinate
   13  the economic development programs and activities of state  agencies  and
   14  authorities  within  each region including, but not limited to, outreach
   15  to businesses, technical assistance services,  skills  training  assist-
   16  ance,  sharing  of information, strategic economic development plans and
   17  programs, to provide or arrange for assistance in compliance with feder-
   18  al, state, and local rules,  regulations,  permits,  and  licenses,  and
   19  other  measures  to  enhance regional economic development and eliminate
   20  duplication of services; (e) to provide or  arrange  for  assistance  to
   21  persons, firms, agencies, partnerships or corporations, either public or
   22  private,  in  applying  for  assistance  from state economic development
   23  programs or for necessary licenses and permits or seeking to comply with
   24  federal, state and local  rules  and  regulations;  (f)  to  review  and
   25  comment,  within their knowledge and expertise, with respect to applica-
   26  tions for state assistance in a timely manner and form prescribed by the
   27  commissioner;  (g)  to  distribute  literature  and  marketing  material
   28  describing  the facilities, advantages and attractions of the region for
   29  business; (h) to  provide  economic  development  information,  planning
   30  services  and technical assistance to counties and municipalities within
   31  the region; (i) to provide information and  assistance  in  the  certif-
   32  ication  of minority [and women-owned], WOMEN AND VETERAN-OWNED business
   33  enterprises; (j) to provide or arrange for assistance to private  sector
   34  employers, whether operating for profit or not for profit, and to organ-
   35  izations and associations of such employers in developing and implement-
   36  ing  innovative and flexible employee compensation, assistance and bene-
   37  fit programs to enhance competitiveness and  meet  emerging  demographic
   38  and  market conditions; and (k) to provide information and assistance to
   39  small businesses on environmental compliance requirements of federal and
   40  state law and pollution prevention opportunities in furtherance of poli-
   41  cies and programs established in article twenty-eight  of  the  environ-
   42  mental   conservation   law  and  in  coordination  with  the  pollution
   43  prevention and environmental compliance coordinating council established
   44  in article twenty-eight of the environmental conservation law, including
   45  programs operated by the department,  the  department  of  environmental
   46  conservation  or  other  state  or  local  agencies from which technical
   47  assistance, or loans, grants or other financial assistance  for  compli-
   48  ance  and  pollution  prevention  may be obtained; and in providing such
   49  information and assistance, to promote pollution prevention approaches.
   50    S 24. Paragraph (i) of subdivision 3 of  section  22-c  of  the  state
   51  finance law, as amended by section 1 of part O of chapter 59 of the laws
   52  of 2009, is amended to read as follows:
   53    (i)  An  explanation  of  any  actions proposed to be taken to achieve
   54  increased opportunity for meaningful participation in the performance of
   55  state contracts by minority [and women-owned], WOMEN  AND  VETERAN-OWNED
   56  business  enterprises in accordance with article fifteen-A of the execu-
       S. 1655                            21
    1  tive law, including a compliance report to be submitted by July first of
    2  each year commencing with the two thousand five--two thousand six fiscal
    3  year and for each subsequent year  thereafter  that  includes:  all  the
    4  items of information required in accordance with regulations promulgated
    5  by the director of the division of minority [and], women's AND VETERANS'
    6  business  development  in  the  department of economic development under
    7  article fifteen-A of the  executive  law;  goals  for  participation  by
    8  certified  minority  [or  women-owned],  WOMEN OR VETERAN-OWNED business
    9  enterprises for such fiscal year; and a  description  of  the  types  of
   10  expenditures, projects or contracts.
   11    S  25.  Paragraphs  c and d of subdivision 2 of section 5 of the state
   12  finance law, as added by chapter 171 of the laws of 2010, are amended to
   13  read as follows:
   14    c. Within the discretion of the deferred  compensation  board  and  in
   15  accordance with and subject to its fiduciary duty and obligations to the
   16  deferred  compensation  plan  for state employees and to the members and
   17  beneficiaries of such plan and such other investment limitations as  may
   18  be  prescribed  by  this  chapter,  the  deferred  compensation board is
   19  authorized to establish an [MWBE] MWVBE asset management  and  financial
   20  institution  strategy  including  reasonable  goals  for  utilization of
   21  [MWBE] MWVBE asset managers, [MWBE]  MWVBE  financial  institutions  and
   22  [MWBE]  MWVBE professional service firms, which shall include, but shall
   23  not be limited to, the following objectives:
   24    (i) conducting procurement procedures in a manner that will assure the
   25  inclusion of [MWBE] MWVBE asset managers in any request for proposal  or
   26  search  process  for  asset management services undertaken in accordance
   27  with the rules and regulations and of the board;
   28    (ii) subject to best execution policies, developing a strategy to  (1)
   29  conduct  trades  of public equity securities with [MWBE] MWVBE financial
   30  institutions and (2) conduct trades of fixed-income  securities  through
   31  [MWBE] MWVBE financial institutions;
   32    (iii)  conducting  procurement procedures in a manner that will assure
   33  the inclusion of [MWBE] MWVBE financial institutions  and  other  [MWBE]
   34  MWVBE  professional  service  firms  in  procurements  for services that
   35  include  accounting,  banking,  financial  advisory,  insurance,  legal,
   36  research,  valuation  and other financial and professional services that
   37  are undertaken in accordance with  the  rules  and  regulations  of  the
   38  board;
   39    (iv)  cooperating  with  other fiduciary controlled entities and state
   40  agencies and offices to identify [MWBE]  MWVBE  asset  managers,  [MWBE]
   41  MWVBE  financial  institutions  and  [MWBE]  MWVBE  professional service
   42  firms.
   43    As used in this section,  the  terms  "[MWBE]  MWVBE  asset  manager",
   44  "[MWBE]  MWVBE financial institutions", "[MWBE] MWVBE", "fiduciary-cont-
   45  rolled entities" and "best execution" shall have the meanings  specified
   46  in section one hundred seventy-six of the retirement and social security
   47  law.
   48    d. The board is also authorized to:
   49    (i)  periodically  provide notice of the existence of such strategy so
   50  that [MWBE] MWVBE asset managers, [MWBE]  MWVBE  financial  institutions
   51  and  other [MWBE] MWVBE professional service firms are made aware of the
   52  opportunities made available pursuant to this strategy;
   53    (ii) within sixty days of the end of each fiscal  year  following  the
   54  effective  date  of this paragraph, the board shall report to the gover-
   55  nor, legislature and the chief diversity officer of  the  state  of  New
   56  York  on  the participation of [MWBE] MWVBE asset managers, [MWBE] MWVBE
       S. 1655                            22
    1  financial institutions and [MWBE] MWVBE professional  service  providers
    2  in  investment  and  brokerage  transactions  with  or  as  providers of
    3  services for the deferred compensation plans,  including  a  comparative
    4  analysis  of  such  activity  relative  to  such activity with all asset
    5  managers, financial institutions and professional service providers  for
    6  the  relevant  period and on the progress and the success of the efforts
    7  undertaken during such period to achieve the  goals  of  such  strategy.
    8  Each  report  shall  be  simultaneously  published on the website of the
    9  deferred compensation plans for not less than sixty days  following  its
   10  release to the governor and the other recipients named above;
   11    (iii)  work  with  the other fiduciary-controlled entities to create a
   12  database of such [MWBE] MWVBE entities; and
   13    (iv) periodically, but not less than annually, hold  a  conference  to
   14  promote such strategy in conjunction with the other fiduciary-controlled
   15  entities.
   16    S  26.  Subdivisions  4,  6 and 7 of section 176 of the retirement and
   17  social security law, as added by chapter 171 of the laws  of  2010,  are
   18  amended to read as follows:
   19    4.  The  term "[MWBE] MWVBE asset manager" shall mean an asset manager
   20  in any of the following asset classes: public  equity  or  fixed  income
   21  securities,  hedge funds, fund of hedge funds, private equity (including
   22  venture capital), fund of private equity funds, real  estate  investment
   23  funds,  fund of real estate funds, or any other asset class for which an
   24  applicable fiduciary-controlled entity engages external  asset  managers
   25  that  is  (a) a [MWBE] MWVBE; and (b) a registered investment advisor or
   26  exempt  from  such  registration  and  (c)  certified  pursuant  to  the
   27  provisions  of  subdivision three of section four hundred twenty-three-c
   28  of this chapter.
   29    6. The term "[MWBE] MWVBE" for the purpose  of  engaging  in  business
   30  with  the fiduciary-controlled entities covered by this section, means a
   31  business enterprise, including without limitation,  a  sole  proprietor-
   32  ship,  partnership,  limited partnership, limited liability partnership,
   33  limited liability company, corporation or other similar  entity  whether
   34  domestic or foreign, that is:
   35    (a)(i)  at  least  fifty-one percent owned by (A) one or more minority
   36  group members, or (B) one or more women, OR (C) ONE OR MORE VETERANS  in
   37  each  case, who have significant experience in asset management, broker-
   38  age, other financial services or related professional services  such  as
   39  accounting,  valuation  or  legal  services, or (ii) substantially owned
   40  and/or operated by women, VETERANS or minority group  members  who  have
   41  significant  experience  in asset management, brokerage, other financial
   42  services or related professional services such as accounting,  valuation
   43  or legal services;
   44    (b) an enterprise in which such minority [or], women OR VETERAN owner-
   45  ship or operation is real, substantial and continuing;
   46    (c) an enterprise in which such minority [or], women OR VETERAN owner-
   47  ship  or  operation has and exercises the authority to control independ-
   48  ently the day-to-day business decisions of the enterprise;
   49    (d) an enterprise authorized to do business in this state; and
   50    (e) an enterprise certified  by  the  state  comptroller  pursuant  to
   51  section four hundred twenty-three-c of this chapter.
   52    7.  The term "[MWBE] MWVBE financial institution" shall mean (a) as it
   53  relates to brokerage services, a registered broker  dealer  that  is  an
   54  [MWBE]  MWVBE  certified pursuant to the provisions of subdivision three
   55  of section four hundred twenty-three-c of this chapter  and  (b)  as  it
   56  relates  to  any  other  financial  services,  an [MWBE] MWVBE certified
       S. 1655                            23
    1  pursuant to the provisions of subdivision three of section four  hundred
    2  twenty-three-c  of  this  chapter that provides banking, financial advi-
    3  sory,  insurance,  financial  research,  valuation  or  other  financial
    4  services.
    5    S  27.  Section  423-c  of  the retirement and social security law, as
    6  added by chapter 171 of the laws of 2010, is amended to read as follows:
    7    S 423-c. [MWBE] MWVBE asset management and financial institution stra-
    8  tegy. 1.  Within the discretion of the state comptroller and in  accord-
    9  ance  with and subject to his or her fiduciary duties and obligations as
   10  trustee of the common retirement fund and to the members,  retirees  and
   11  beneficiaries  of such fund and such other investment limitations as may
   12  be prescribed by this chapter, the comptroller is authorized  to  estab-
   13  lish an [MWBE] MWVBE asset management and financial institution strategy
   14  including  reasonable goals for utilization of [MWBE] MWVBE asset manag-
   15  ers, [MWBE] MWVBE financial institutions and [MWBE] MWVBE financial  and
   16  professional  service firms, which strategy shall include, but shall not
   17  be limited to, the following objectives:
   18    (a) investing assets of the common retirement fund with  [MWBE]  MWVBE
   19  asset managers;
   20    (b)  subject to best execution: (i) conducting trades of public equity
   21  securities with [MWBE] MWVBE financial institutions; and (ii) conducting
   22  trades of fixed-income securities through [MWBE] MWVBE financial  insti-
   23  tutions;
   24    (c)  allocating  investments  of  assets of the common retirement fund
   25  either through: (i) direct investments in the equities and debt  securi-
   26  ties  of  [MWBEs]  MWVBES;  or  (ii) indirectly through special programs
   27  involving [MWBE] MWVBE asset managers; and
   28    (d) awarding contracts for accounting,  banking,  financial  advisory,
   29  insurance,  legal,  research,  valuation and other financial and profes-
   30  sional services to [MWBE] MWVBE financial institutions and other  [MWBE]
   31  MWVBE professional service firms.
   32    2.  The  comptroller is also authorized to: (a) periodically advertise
   33  the existence of the strategy established in this section so that [MWBE]
   34  MWVBE asset managers, [MWBE]  MWVBE  financial  institutions  and  other
   35  [MWBE]  MWVBE  professional service firms are made aware of the opportu-
   36  nities made available pursuant to such strategy;
   37    (b) within sixty days of the end of each  fiscal  year  following  the
   38  effective  date  of  this section, the state comptroller shall report to
   39  the governor, legislature and the chief diversity officer of  the  state
   40  of  New York on the participation of [MWBE] MWVBE asset managers, [MWBE]
   41  MWVBE financial  institutions  and  [MWBE]  MWVBE  professional  service
   42  providers  in investment and brokerage transactions with or as providers
   43  of services for the common  retirement  fund,  including  a  comparative
   44  analysis  of  such  activity  relative  to  such activity with all asset
   45  managers, financial institutions and professional service providers  for
   46  the  relevant  period  and  on  the  progress and success of the efforts
   47  undertaken during such period to achieve the  goals  of  such  strategy.
   48  Each  report  shall  be  simultaneously  published on the website of the
   49  common retirement fund for  not  less  than  sixty  days  following  its
   50  release to the governor and the other recipients named above;
   51    (c)  work  with  the  other  fiduciary-controlled entities to create a
   52  database of such [MWBE] MWVBE entities; and
   53    (d) periodically, but not less than annually,  hold  a  conference  to
   54  promote such strategy in conjunction with the other fiduciary-controlled
   55  entities.
       S. 1655                            24
    1    3. (a) The state comptroller shall establish and adopt a certification
    2  process  and  guidelines  for  the  sole  purpose  of identification and
    3  reporting on [MWBE] MWVBE firms providing asset  management,  brokerage,
    4  or  other  financial or professional services as such term is defined in
    5  subdivision six of section one hundred seventy-six of this chapter. Such
    6  certification  shall  differentiate  and  the comptroller shall maintain
    7  separate categories for [MWBE] MWVBE asset managers meeting the criteria
    8  of subparagraph (i) of paragraph (a) of subdivision six of  section  one
    9  hundred  seventy-six  of  this  chapter  and [MWBE] MWVBE asset managers
   10  meeting the criteria of subparagraph  (ii)  of  paragraph  (a)  of  such
   11  subdivision.
   12    (b)  Such certification process shall include, but need not be limited
   13  to, a request for the following information relating  to  each  managing
   14  principal,  principal,  operating  principal,  chief  financial officer,
   15  operating vice-president, vice-president, partner,  owner  and  employee
   16  associated with a prospective [MWBE] MWVBE entity:
   17    (i) title;
   18    (ii) position;
   19    (iii) ownership percentage;
   20    (iv) ethnicity;
   21    (v) gender; and
   22    (vi) length of service.
   23    S 28. Section 147 of the state finance law, as added by chapter 360 of
   24  the laws of 2009, is amended to read as follows:
   25    S  147.  Mentor-protege  program. 1. In every state agency, department
   26  and authority which has let more than ten million dollars in service and
   27  construction contracts in the prior fiscal  year,  the  chief  executive
   28  officer  of that agency, department or authority shall develop a mentor-
   29  protege program  to  foster  long-term  relationships  between  approved
   30  mentor   firms,   and   small   business   concerns  and  minority  [and
   31  women-owned], WOMEN AND VETERAN-OWNED businesses certified  pursuant  to
   32  article fifteen-A of the executive law, in order to enhance the capabil-
   33  ities  of  small and minority [and women-owned], WOMEN AND VETERAN-OWNED
   34  business concerns, improve their success in contracting with  the  state
   35  or  receiving subcontracts under a state contract, and to create sources
   36  of reliable contractors and subcontractors ready to perform larger  jobs
   37  and  responsibilities.   Participation in the program shall be voluntary
   38  for both the mentor firm and the protege firm.
   39    2. The chief executive officer of each agency, department or  authori-
   40  ty,  in  consultation  with  the division of minority [and], women's AND
   41  VETERANS' business development and the division for small-business shall
   42  develop requirements for:
   43    (a) approval of contractors participating in the  program  established
   44  pursuant  to  subdivision  one  of  this  section,  to be known, for the
   45  purposes of such program, as "mentor firms". Mentor  firms  must  demon-
   46  strate commitment and ability to assist protege firms, including favora-
   47  ble financial health, good character, and experience in contracting with
   48  the  state.  Once  approved, a mentor firm must annually certify that it
   49  continues to possess good character and a favorable financial  position.
   50  Incentives  for  mentor firms to participate in the program may include:
   51  (i) where contracts are awarded by  best  value,  additional  evaluation
   52  points  as specified in the request for proposal; and (ii) where protege
   53  firms are certified minority [and women-owned], WOMEN AND  VETERAN-OWNED
   54  businesses,  credit  towards  fulfillment of minority [and women-owned],
   55  WOMEN AND VETERAN-OWNED business participation  requirements,  including
   56  without  limitation  additional  credit  towards fulfillment of minority
       S. 1655                            25
    1  [and  women-owned],  WOMEN  AND  VETERAN-OWNED  business  subcontracting
    2  participation  goals based on costs incurred by a mentor firm in provid-
    3  ing assistance to a certified  minority  [and  women-owned],  WOMEN  AND
    4  VETERAN-OWNED business protege firm.
    5    (b) approval for small and certified minority [and women-owned], WOMEN
    6  AND  VETERAN-OWNED  business  concerns  receiving  assistance  under the
    7  program established pursuant to subdivision one of this section,  to  be
    8  known,  for  the purposes of such program, as "protege firms". A protege
    9  firm may have only one mentor at a  time  and  may  participate  in  the
   10  mentor-protege program for a maximum of five years.
   11    (c)  a  process by which each mentor firm, before providing assistance
   12  to a protege firm under the program, shall enter into  a  mentor-protege
   13  agreement  regarding  the  assistance to be provided by the mentor firm,
   14  for a period as determined by the chief executive officer of the agency,
   15  department or authority. A mentor firm may provide a protege  firm  with
   16  assistance  and  training  in  general  business  management;  financial
   17  management, engineering, safety and technical matters;  bonding  assist-
   18  ance  or  bonding  waivers;  subcontracts;  rent-free  use of facilities
   19  and/or equipment; joint venture arrangements; and any  other  assistance
   20  as  determined  by the chief executive officer of the agency, department
   21  or authority. Mentor-protege agreements shall be approved by  the  chief
   22  executive  officer  of  the  agency,  department or authority, and shall
   23  provide that either party may terminate the agreement with  thirty  days
   24  advance  notice  and  notice to the chief executive officer. No determi-
   25  nation of affiliation or control may be found between a protege firm and
   26  its mentor firm based on the mentor-protege agreement or any  assistance
   27  provided pursuant to such agreement.
   28    S  29. Subdivision 7 of section 2777 of the public authorities law, as
   29  added by chapter 686 of the laws of 1993, is amended to read as follows:
   30    7. It is hereby found and declared that it has been  and  remains  the
   31  policy  of the state of New York to promote equal opportunity in employ-
   32  ment for all persons, without discrimination on account of race,  creed,
   33  color,  national  origin,  sex,  age,  disability  or marital status, to
   34  promote equality of economic  opportunity  for  minority  group  members
   35  [and],  women  AND VETERANS, and business enterprises owned by them, and
   36  to eradicate the effects  of  private  and  governmental  discrimination
   37  which  has  erected and continues to maintain barriers that unreasonably
   38  impair access by minority [and  women-owned],  WOMEN  AND  VETERAN-OWNED
   39  business enterprises to state contract opportunities.
   40    Recent  reviews and analyses of contracting in New York, including the
   41  study by the division of minority [and], women's AND VETERANS'  business
   42  development of the department of economic development entitled "Opportu-
   43  nity  Denied!  A  Study  of  Racial and Sexual Discrimination Related to
   44  Government Contracting  in  New  York  State,"  confirm  through  direct
   45  evidence  of  racial  and sexual discrimination in and by New York state
   46  sufficient to justify race and sex conscious remedies. For  the  purpose
   47  of furthering the state's compelling interest in eradicating the effects
   48  of racial and sexual discrimination therefore, it is necessary and prop-
   49  er that article fifteen-A of the executive law, concerning participation
   50  by  minority group members [and], women AND VETERANS and business enter-
   51  prises owned by them, shall apply to the Albany county airport  authori-
   52  ty.
   53    S  30.  Subdivisions 3 and 6 of section 2879 of the public authorities
   54  law, subdivision 3 as amended by chapter 564 of the laws of 1988,  para-
   55  graph (b) of subdivision 3 as amended by chapter 45 of the laws of 1994,
   56  subparagraph  (iv) of paragraph (b) of subdivision 3 as amended by chap-
       S. 1655                            26
    1  ter 383 of the laws of 1994, paragraph (m) of subdivision 3 as added  by
    2  chapter  862  of  the  laws  of  1990, paragraph (n) of subdivision 3 as
    3  amended by chapter 531 of the laws of 1993, paragraphs (o)  and  (p)  of
    4  subdivision  3 as added by chapter 844 of the laws of 1992, subparagraph
    5  (i) of paragraph (b) of subdivision 3  and  subdivision  6  as  amended,
    6  paragraphs  (f),  (g),  (h),  (i)  and (j) of subdivision 3 as added and
    7  paragraphs (k), (l), (m), (n), (o) and (p) of subdivision  3  as  relet-
    8  tered  by  chapter  174  of  the  laws  of  2010, are amended to read as
    9  follows:
   10    3. The guidelines approved by the corporation shall include,  but  not
   11  be limited to the following:
   12    (a) A description of the types of goods purchased, and for procurement
   13  contracts  for  services, a description of those areas of responsibility
   14  and oversight requiring the use of personal services and the reasons for
   15  the use of personal services in such areas.
   16    (b) Requirements regarding the selection of contractors,  which  shall
   17  include provisions:
   18    (i)  for the selection of such contractors on a competitive basis, and
   19  provisions relating to the circumstances under which the  board  may  by
   20  resolution  waive  competition,  including,  notwithstanding  any  other
   21  provision of  law  requiring  competition,  the  purchase  of  goods  or
   22  services from small business concerns or those certified as minority [or
   23  women-owned],  WOMEN  OR VETERAN-OWNED business enterprises, or goods or
   24  technology that are recycled or remanufactured,  in  an  amount  not  to
   25  exceed  two  hundred thousand dollars without a formal competitive proc-
   26  ess;
   27    (ii) describing when the award of procurement contracts shall  require
   28  approval  of the board by resolution, provided that any contract involv-
   29  ing services to be rendered over a period in excess of  one  year  shall
   30  require  the approval of the board by resolution and an annual review of
   31  the contract by the board;
   32    (iii) setting forth responsibilities of contractors;
   33    (iv) as used in this subparagraph, the term "professional firm"  shall
   34  be defined as any individual or sole proprietorship, partnership, corpo-
   35  ration,  association, or other legal entity permitted by law to practice
   36  the professions of architecture, engineering or surveying.
   37    The corporation shall not refuse to negotiate with a professional firm
   38  solely because the ratio of the "allowable  indirect  costs"  to  direct
   39  labor  costs  of  the  professional firm or the hourly labor rate in any
   40  labor category of the professional firm exceeds a  limitation  generally
   41  set by the corporation in the determination of the reasonableness of the
   42  estimated  cost of services to be rendered by the professional firm, but
   43  rather the corporation should also consider the reasonableness  of  cost
   44  based  on  the  total  estimated cost of the service of the professional
   45  firm which should include, among other  things,  all  the  direct  labor
   46  costs  of  the  professional  firm for such services plus all "allowable
   47  indirect costs," other  direct  costs,  and  negotiated  profit  of  the
   48  professional firm. "Allowable indirect costs" of a professional firm are
   49  defined  as  those costs generally associated with overhead which cannot
   50  be specifically identified with a single project  or  contract  and  are
   51  considered  reasonable  and  allowable  under specific state contract or
   52  allowability limits.
   53    (c) An identification of those areas or types of contracts  for  which
   54  minority  [or  women-owned], WOMEN OR VETERAN-OWNED business enterprises
   55  may best bid so as to promote and assist participation  by  such  enter-
   56  prises  and facilitate a fair share of the awarding of contracts to such
       S. 1655                            27
    1  enterprises. For the purposes  of  this  section,  a  minority  business
    2  enterprise  means  any business enterprise, including a sole proprietor-
    3  ship, partnership or corporation that is:
    4    (i)  at  least  fifty-one  percent owned by one or more minority group
    5  members or in the case of a publicly-owned business at  least  fifty-one
    6  percent  of the common stock or other voting interests of which is owned
    7  by one or more minority group members;
    8    (ii) an enterprise in which the minority ownership is  real,  substan-
    9  tial and continuing;
   10    (iii)  an enterprise in which the minority ownership has and exercises
   11  the authority to control independently the day-to-day business decisions
   12  of the enterprise; and
   13    (iv) an enterprise authorized to do business in New York state,  inde-
   14  pendently owned and operated, and not dominant in its field.
   15    (d)  For the purposes of this section, a minority group member means a
   16  United States citizen or permanent resident alien who is and can  demon-
   17  strate membership in one of the following groups:
   18    (i)  Black  persons  having origins in any of the Black African racial
   19  groups not of Hispanic origin;
   20    (ii) Hispanic persons of  Mexican,  Puerto  Rican,  Dominican,  Cuban,
   21  Central  or  South American of either Indian or Hispanic origin, regard-
   22  less of race;
   23    (iii) Asian and Pacific Islander persons having origins in any of  the
   24  Far  East,  Southeast  Asia,  the  Indian  sub-continent  or the Pacific
   25  Islands; or
   26    (iv) Native American persons having origins in  any  of  the  original
   27  peoples of North America.
   28    (e)  For  the  purposes of this section, a women-owned business enter-
   29  prise means a business  enterprise,  including  a  sole  proprietorship,
   30  partnership or corporation which is:
   31    (i)  at  least  fifty-one  percent  owned by one or more United States
   32  citizens or permanent resident aliens who are women or in the case of  a
   33  publicly-owned  business  at least fifty-one percent of the common stock
   34  or other voting interests of which is owned by United States citizens or
   35  permanent resident aliens who are women;
   36    (ii) an enterprise in which the ownership interest of women  is  real,
   37  substantial and continuing;
   38    (iii) an enterprise in which the women ownership has and exercises the
   39  authority  to control independently the day-to-day business decisions of
   40  the enterprise; and
   41    (iv) an enterprise authorized to do business in New York state,  inde-
   42  pendently owned and operated, and not dominant in its field.
   43    (E-1)  FOR  THE  PURPOSES  OF  THIS  SECTION, A VETERAN-OWNED BUSINESS
   44  ENTERPRISE MEANS A BUSINESS ENTERPRISE, INCLUDING A SOLE PROPRIETORSHIP,
   45  PARTNERSHIP OR CORPORATION WHICH IS:
   46    (I) AT LEAST FIFTY-ONE PERCENT OWNED BY  ONE  OR  MORE  UNITED  STATES
   47  CITIZENS OR PERMANENT RESIDENT ALIENS WHO ARE VETERANS OR IN THE CASE OF
   48  A PUBLICLY-OWNED BUSINESS AT LEAST FIFTY-ONE PERCENT OF THE COMMON STOCK
   49  OR OTHER VOTING INTERESTS OF WHICH IS OWNED BY UNITED STATES CITIZENS OR
   50  PERMANENT RESIDENT ALIENS WHO ARE VETERANS;
   51    (II)  AN  ENTERPRISE  IN  WHICH  THE OWNERSHIP INTEREST OF VETERANS IS
   52  REAL, SUBSTANTIAL AND CONTINUING;
   53    (III) AN ENTERPRISE IN WHICH THE VETERAN OWNERSHIP HAS  AND  EXERCISES
   54  THE AUTHORITY TO CONTROL INDEPENDENTLY THE DAY-TO-DAY BUSINESS DECISIONS
   55  OF THE ENTERPRISE; AND
       S. 1655                            28
    1    (IV)  AN ENTERPRISE AUTHORIZED TO DO BUSINESS IN NEW YORK STATE, INDE-
    2  PENDENTLY OWNED AND OPERATED, AND NOT DOMINANT IN ITS FIELD.
    3    (f)  Requirements  for  the designation of one or more senior staff of
    4  the corporation to oversee the  corporation's  programs  established  to
    5  promote  and  assist: (i) participation by certified minority [or women-
    6  owned], WOMEN OR VETERAN-OWNED business enterprises in the corporation's
    7  procurement opportunities and facilitation of the award  of  procurement
    8  contracts to such enterprises; (ii) the utilization of certified minori-
    9  ty  [and  women-owned],  WOMEN AND VETERAN-OWNED business enterprises as
   10  subcontractors and suppliers by entities  having  procurement  contracts
   11  with  the  corporation; and (iii) the utilization of partnerships, joint
   12  ventures or other similar arrangements between certified  minority  [and
   13  women-owned],  WOMEN  AND  VETERAN-OWNED  business enterprises and other
   14  entities having procurement contracts with the corporation.  Such  staff
   15  shall  be  familiar  with  the procurement of the types of construction,
   16  financial, legal or professional services utilized by  the  corporation,
   17  report  directly  to  the corporation's executive director, president or
   18  chief executive officer and either directly or through  their  designees
   19  participate in the procurement process.
   20    (g) Requirements for providing notice, in addition to any other notice
   21  of  procurement opportunities required by law, to professional and other
   22  organizations that serve minority [and women-owned], WOMEN AND  VETERAN-
   23  OWNED  business  enterprises providing the types of services procured by
   24  the corporation.
   25    (h) Procedures for maintaining lists of qualified  certified  minority
   26  [and women-owned], WOMEN AND VETERAN-OWNED business enterprises, includ-
   27  ing professional firms that have expressed an interest in doing business
   28  with the corporation and ensuring that such lists are updated regularly.
   29  The  corporation shall also consult the lists of certified minority [and
   30  women-owned], WOMEN AND VETERAN-OWNED business enterprises maintained by
   31  the department of economic development pursuant to article fifteen-A  of
   32  the executive law.
   33    (i) The establishment of appropriate goals for participation by minor-
   34  ity  [or  women-owned],  WOMEN  OR VETERAN-OWNED business enterprises in
   35  procurement contracts awarded by the corporation and for the utilization
   36  of minority [and women-owned], WOMEN  OR  VETERAN-OWNED  enterprises  as
   37  subcontractors  and  suppliers  by entities having procurement contracts
   38  with the corporation. Statewide  numerical  participation  target  goals
   39  shall  be established by each authority based on the findings of the two
   40  thousand ten disparity study AND THEREAFTER  THE  TWO  THOUSAND  SIXTEEN
   41  DISPARITY STUDY.
   42    (j)  Requirements to conduct procurements in a manner that will enable
   43  the corporation to achieve the maximum feasible  portion  of  the  goals
   44  established pursuant to paragraph (i) of this subdivision and that elim-
   45  inates  barriers  to  participation by minority [and women-owned], WOMEN
   46  AND VETERAN-OWNED business enterprises  in  the  corporation's  procure-
   47  ments. Such procurement requirements shall include the following:
   48    (A)  Measures and procedures to ensure that certified businesses shall
   49  be given the opportunity  for  maximum  feasible  participation  in  the
   50  performance  of state contracts and to assist in the corporation's iden-
   51  tification of those state contracts for which certified  businesses  may
   52  best  bid to actively and affirmatively promote and assist their partic-
   53  ipation in the performance of state contracts so as  to  facilitate  the
   54  corporation's  achievement  of the maximum feasible portion of the goals
   55  for state contracts to such businesses;
       S. 1655                            29
    1    (B) Provisions designating the division of minority [and women-owned],
    2  WOMEN AND VETERAN-OWNED business development to  certify  and  decertify
    3  minority [and women-owned], WOMEN AND VETERAN-OWNED business enterprises
    4  for  all  corporations  through  a  single process that meets applicable
    5  state and federal requirements;
    6    (C)  A requirement that each contract solicitation document accompany-
    7  ing each solicitation set forth the expected  degree  of  minority  [and
    8  women-owned],  WOMEN AND VETERAN-OWNED business enterprise participation
    9  based, in part, on:
   10    I. the potential subcontract  opportunities  available  in  the  prime
   11  procurement contract; and
   12    II.  the  availability  of certified minority [and women-owned], WOMEN
   13  AND VETERAN-OWNED business enterprises to respond competitively  to  the
   14  potential subcontract opportunities;
   15    (D)  A  requirement  that  each  corporation provide a current list of
   16  certified minority business enterprises to each prospective contractor;
   17    (E) Provisions relating to joint ventures, under which  a  bidder  may
   18  count  toward  meeting  its  minority  business enterprise participation
   19  goal, the minority [and women-owned], WOMEN AND  VETERAN-OWNED  business
   20  enterprise portion of the joint venture;
   21    (F)  Provisions  under  which the corporation may waive obligations of
   22  the contractor relating to minority [and women-owned], WOMEN AND  VETER-
   23  AN-OWNED business enterprise participation after a showing of good faith
   24  efforts  to  comply  with  the  requirements of this act pursuant to the
   25  waiver provisions contained in subdivision six of section three  hundred
   26  thirteen of the executive law;
   27    (G)  A  requirement  that  the  corporation  verify that minority [and
   28  women-owned], WOMEN AND VETERAN-OWNED business enterprises listed  in  a
   29  successful  bid  are  actually participating to the extent listed in the
   30  project for which the bid was submitted;
   31    (H) In the implementation of this section, the contracting corporation
   32  shall:
   33    I. consider,  where  practicable,  the  severability  of  construction
   34  projects and other bundled contracts;
   35    II.  implement  a program that will enable the corporation to evaluate
   36  each contract to determine the appropriateness of the goal  pursuant  to
   37  paragraph (i) of this subdivision;
   38    III.  consider  compliance  with  the  requirements of any federal law
   39  concerning opportunities  for  minority  [and  women-owned],  WOMEN  AND
   40  VETERAN-OWNED business enterprises which effectuates the purpose of this
   41  section; and
   42    IV.  consult  the  most  recent  disparity  study  pursuant to article
   43  fifteen-A of the executive law.
   44    (k) A listing of the types of provisions to be contained  in  procure-
   45  ment  contracts, including provisions concerning the nature and monitor-
   46  ing of the work to be performed,  the  use  of  corporate  supplies  and
   47  facilities, the use of corporate personnel and any other provisions.
   48    (l)  Provisions  regarding  procurement contracts which involve former
   49  officers or employees of the corporation.
   50    (m) Procedures regarding procurement contracts which are  exempt  from
   51  the  publication requirements of article four-C of the economic develop-
   52  ment law.
   53    (n) Policies to promote the participation by New York  state  business
   54  enterprises  and  New  York  state  residents  in procurement contracts,
   55  including, but not limited to:
       S. 1655                            30
    1    (i) providing for the corporation to collect and to consult the  spec-
    2  ifications of New York state business enterprises in developing specifi-
    3  cations  for  any  procurement  contract for the purchase of goods where
    4  possible, practicable, feasible and consistent with open bidding, except
    5  for  procurement  contracts for which the corporation would be expending
    6  funds received from another state. The corporation shall,  where  feasi-
    7  ble,  make  use  of  the  stock item specification forms prepared by the
    8  commissioner of general services, and where necessary, consult with  the
    9  commissioner of the office of general services, in developing such spec-
   10  ifications and make such determinations; and
   11    (ii)  with  the  cooperation of the department of economic development
   12  and through cooperative efforts  with  contractors,  providing  for  the
   13  notification  of New York state business enterprises of opportunities to
   14  participate as subcontractors and suppliers on procurement contracts let
   15  by the corporation in an amount estimated to be equal to or greater than
   16  one million  dollars  and  promulgating  procedures  which  will  assure
   17  compliance  by  contractors  with  such  notification.  Once awarded the
   18  contract such contractors shall document their efforts to encourage  the
   19  participation  of  New  York state business enterprises as suppliers and
   20  subcontractors on procurement contracts equal to  or  greater  than  one
   21  million  dollars.  Documented  efforts  by a successful contractor shall
   22  consist of and be limited to showing that such contractor has (a) solic-
   23  ited bids, in a timely and adequate manner, from New York state business
   24  enterprises including certified minority [and  women-owned],  WOMEN  AND
   25  VETERAN-OWNED  business,  or (b) contacted the New York state department
   26  of economic development to obtain listings of New  York  state  business
   27  enterprises,  or  (c) placed notices for subcontractors and suppliers in
   28  newspapers, journals and other trade  publications  distributed  in  New
   29  York  state,  or (d) participated in bidder outreach conferences. If the
   30  contractor determines that New York state business enterprises  are  not
   31  available to participate on the contract as subcontractors or suppliers,
   32  the  contractor shall provide a statement indicating the method by which
   33  such determination was made. If the contractor does not  intend  to  use
   34  subcontractors on the contract, the contractor shall provide a statement
   35  verifying such intent; and
   36    (iii) except for procurement contracts for which the corporation would
   37  be  expending  funds  received from another state, the corporation shall
   38  include in all bid documents provided to potential bidders  a  statement
   39  that  information  concerning the availability of New York state subcon-
   40  tractors and suppliers is available from the New York  state  department
   41  of  economic development, which shall include the directory of certified
   42  minority [and women-owned], WOMEN AND VETERAN-OWNED businesses,  and  it
   43  is  the  policy of New York state to encourage the use of New York state
   44  subcontractors and suppliers, and to promote the participation of minor-
   45  ity [and women-owned], WOMEN AND VETERAN-OWNED businesses  where  possi-
   46  ble, in the procurement of goods and services; and
   47    (iv)  with  the  cooperation of the community services division of the
   48  department of labor and through cooperative  efforts  with  contractors,
   49  providing for the notification of New York state residents of employment
   50  opportunities arising in New York state out of procurement contracts let
   51  by the corporation in an amount estimated to be equal to or greater than
   52  one  million  dollars;  and  promulgating  procedures  which will assure
   53  compliance by contractors with such notification by  requiring  contrac-
   54  tors  to  submit post-award compliance reports documenting their efforts
   55  to provide such notification through listing any such positions with the
   56  community services division, or providing for such notification in  such
       S. 1655                            31
    1  manner as is consistent with existing collective bargaining contracts or
    2  agreements; and
    3    (v)  including in each set of documents soliciting bids on procurement
    4  contracts to let by the  corporation  a  statement  notifying  potential
    5  bidders  located in foreign countries that the corporation may assign or
    6  otherwise transfer offset credits created by such  procurement  contract
    7  to third parties located in New York state; providing for the assignment
    8  or  other form of transfer of offset credits created by such procurement
    9  contracts, directly or indirectly, to third parties located in New  York
   10  state,  in accordance with the written directions of the commissioner of
   11  economic development; and providing for  the  corporation  to  otherwise
   12  cooperate  with the department of economic development in efforts to get
   13  foreign countries to recognize offset credits assigned or transferred to
   14  third parties located in New York  state  created  by  such  procurement
   15  contracts; and
   16    (vi)  promulgating  procedures  which  will assure compliance with the
   17  federal equal employment opportunity  act  of  1972  (P.L.  92-261),  as
   18  amended, by contractors of the corporation.
   19    (o)  For  the  purposes  of  this  section, a "New York state business
   20  enterprise" means a business enterprise, including  a  sole  proprietor-
   21  ship,  partnership,  or  corporation,  which offers for sale or lease or
   22  other form of exchange, goods which are sought by  the  corporation  and
   23  which  are substantially manufactured, produced or assembled in New York
   24  state, or services which are sought by the  corporation  and  which  are
   25  substantially performed within New York state.
   26    (p)  For  the  purposes of this section, a "New York resident" means a
   27  natural person who maintains  a  fixed,  permanent  and  principal  home
   28  located  within New York state and to which such person, whenever tempo-
   29  rarily located, always intends to return.
   30    6. Each corporation, as part of the guidelines established pursuant to
   31  subdivision three of this section, shall  establish  policies  regarding
   32  the  preparation  of publicly available reports on procurement contracts
   33  entered into by such corporation. Such policies shall  provide,  at  the
   34  minimum, for the preparation of a report no less frequently than annual-
   35  ly,  summarizing procurement activity by such corporation for the period
   36  of the report, including a listing of all procurement contracts  entered
   37  into,  all  contracts  entered  into with New York state business enter-
   38  prises and the subject matter and value thereof, all  contracts  entered
   39  into  with  certified  minority [or women-owned], WOMEN OR VETERAN-OWNED
   40  business enterprises and the  subject  matter  and  value  thereof,  all
   41  referrals  made  and  all  penalties  imposed  pursuant to section three
   42  hundred sixteen of the executive law, all contracts  entered  into  with
   43  foreign  business enterprises, and the subject matter and value thereof,
   44  the selection process used to select such contractors,  all  procurement
   45  contracts which were exempt from the publication requirements of article
   46  four-C of the economic development law, the basis for any such exemption
   47  and the status of existing procurement contracts.
   48    S  31.  Section  6-129  of  the administrative code of the city of New
   49  York, as amended by local law number 1 of the city of New York  for  the
   50  year 2013, is amended to read as follows:
   51    S 6-129. Participation by minority-owned [and], women-owned AND VETER-
   52  AN-OWNED  business enterprises and emerging business enterprises in city
   53  procurement.
   54    a. Programs established. There are hereby established a program, to be
   55  administered by the department of small business services in  accordance
   56  with  the  provisions of this section, designed to enhance participation
       S. 1655                            32
    1  by minority-owned [and], women-owned AND VETERAN-OWNED  business  enter-
    2  prises  in  city  procurement  and a program, also to be administered by
    3  such department in accordance  with  the  provisions  of  this  section,
    4  designed  to  enhance  participation by emerging business enterprises in
    5  city procurement.
    6    b. Policy. It is the policy of the city to seek to ensure fair partic-
    7  ipation in city procurement; and in furtherance of such policy to  fully
    8  and  vigorously  enforce  all  laws  prohibiting  discrimination, and to
    9  promote equal opportunity in city procurement  by  vigorously  enforcing
   10  the city's contractual rights and pursuing its contractual remedies. The
   11  program  established pursuant to this section is intended to address the
   12  impact of discrimination on  the  city's  procurement  process,  and  to
   13  promote  the  public  interest  in  avoiding fraud and favoritism in the
   14  procurement process,  increasing  competition  for  city  business,  and
   15  lowering contract costs.
   16    c.  Definitions.  For  purposes  of  this section, the following terms
   17  shall have the following meaning:
   18    (1) "Agency" means a city, county, borough, or other office, position,
   19  administration, department, division, bureau, board or commission, or  a
   20  corporation,  institution or agency of government, the expenses of which
   21  are paid in whole or in part from the city treasury.
   22    (2) "Agency chief contracting officer" means the individual to whom an
   23  agency head has delegated authority to organize and supervise the  agen-
   24  cy's procurement activity.
   25    (3)  "Availability  rate" means the percentage of business enterprises
   26  within an industry classification that are owned by  minorities,  women,
   27  VETERANS  or individuals who are socially and economically disadvantaged
   28  willing and able to perform agency contracts.
   29    (4) "Bidder" means any person submitting a bid or proposal in response
   30  to a solicitation for such bid or proposal from an agency.
   31    (5) "Bidders list" or "proposers list" means a list maintained  by  an
   32  agency that includes persons from whom bids or proposals can be solicit-
   33  ed.
   34    (6) "City" means the city of New York.
   35    (7)  "City chief procurement officer" means the individual to whom the
   36  mayor has delegated authority to coordinate and oversee the  procurement
   37  activity of mayoral agency staff, including the agency chief contracting
   38  officers and any offices that have oversight responsibility for procure-
   39  ment.
   40    (8)  "Commercially  useful  function"  means a real and actual service
   41  that is a distinct and verifiable element of the work called  for  in  a
   42  contract. In determining whether an MBE, WBE, VBE or EBE is performing a
   43  commercially  useful  function, factors including but not limited to the
   44  following shall be considered:
   45    (a) whether it has the skill and expertise to  perform  the  work  for
   46  which it is being utilized, and possesses all necessary licenses;
   47    (b) whether it is in the business of performing, managing or supervis-
   48  ing the work for which it has been certified and is being utilized; and
   49    (c)  whether  it purchases goods and/or services from another business
   50  and whether its participation in the contract would have  the  principal
   51  effect  of allowing it to act as a middle person or broker in which case
   52  it may not be considered to be performing a commercially useful function
   53  for purposes of this section.
   54    (9) "Commissioner" shall  mean  the  commissioner  of  small  business
   55  services.
       S. 1655                            33
    1    (10)  "Construction"  means  construction, reconstruction, demolition,
    2  excavation,  renovation,  alteration,  improvement,  rehabilitation,  or
    3  repair of any building, facility, physical structure of any kind.
    4    (11)  "Contract"  means any agreement, purchase order or other instru-
    5  ment whereby the city is committed to expend or  does  expend  funds  in
    6  return   for   goods,   professional  services,  standard  services,  or
    7  construction.
    8    (12) "Contractor" means a person who has been awarded a contract by  a
    9  city agency.
   10    (13)  "Direct  subcontractor"  means  a person who has entered into an
   11  agreement with a contractor to provide services or perform work that  is
   12  required pursuant to a contract with a city agency.
   13    (14) "Director" means an individual designated by the mayor to perform
   14  the  oversight  functions of the director described in this section, who
   15  either reports directly to the mayor or is a commissioner.
   16    (15) "Directory" means a list prepared by the division of firms certi-
   17  fied pursuant to section 1304 of the charter.
   18    (16) "Division" shall mean the  division  of  economic  and  financial
   19  opportunity within the department of small business services.
   20    (17)  "EBE" means an emerging business enterprise certified in accord-
   21  ance with section 1304 of the charter.
   22    (18) "Geographic market of the city"  means  the  following  counties:
   23  Bronx,  Kings,  New  York,  Queens,  Richmond, Nassau, Putnam, Rockland,
   24  Suffolk and Westchester within  the  State  of  New  York;  and  Bergen,
   25  Hudson, and Passaic within the state of New Jersey.
   26    (19) "Goal" means a numerical target.
   27    (20) "Graduate MBE," "graduate WBE," "GRADUATE VBE," or "graduate EBE"
   28  means an MBE, WBE, VBE or EBE which shall have been awarded contracts by
   29  one  or  more  agencies within the past three years where the total city
   30  funding from the expense and capital  budgets  for  such  contracts  was
   31  equal  to  or  greater  than  fifty  million  dollars and whose size has
   32  exceeded the size standards established for its industry by  the  United
   33  States small business administration for three years.
   34    (21)  "Human  services"  means  services  provided  to  third parties,
   35  including social services such as day  care,  foster  care,  home  care,
   36  homeless   assistance,   housing   and  shelter  assistance,  preventive
   37  services, youth services, and senior centers; health or medical services
   38  including those provided  by  health  maintenance  organizations;  legal
   39  services;  employment  assistance  services,  vocational and educational
   40  programs; and recreation programs.
   41    (22) "Indirect subcontractor" means a person who has entered  into  an
   42  agreement  with  a  direct  subcontractor to provide services or perform
   43  work that is required pursuant to the  direct  subcontractor's  contract
   44  with a contractor.
   45    (23)  "Industry classification" means one of the following classifica-
   46  tions:
   47    (a) construction;
   48    (b) professional services;
   49    (c) standard services; and
   50    (d) goods.
   51    (24) "Joint venture" means an association, of limited scope and  dura-
   52  tion,  between two or more persons who have entered into an agreement to
   53  perform and/or provide services required by a contract,  in  which  each
   54  such  person  contributes  property, capital, effort, skill and/or know-
   55  ledge, and in which each such person is entitled to share in the profits
       S. 1655                            34
    1  and losses of the venture in reasonable proportion to the economic value
    2  of its contribution.
    3    (25)  "MBE"  means  a  minority-owned business enterprise certified in
    4  accordance with section 1304 of the charter.
    5    (26) "Minority group" means  Black  Americans;  Asian  Americans,  and
    6  Hispanic  Americans,  provided that the commissioner shall be authorized
    7  to add additional groups to this definition upon a finding that there is
    8  statistically significant disparity between the  availability  of  firms
    9  owned  by  individuals in such a group and the utilization of such firms
   10  in city procurement.
   11    (27) "Non-certified firm" means a business  enterprise  that  has  not
   12  been  certified as an MBE, WBE or EBE in accordance with section 1304 of
   13  the charter OR VBE.
   14    (28) "Person" means  any  business,  individual,  partnership,  corpo-
   15  ration, firm, company, or other form of doing business.
   16    (29)  "Professional  services" means services that require specialized
   17  skills and the exercise  of  judgment,  including  but  not  limited  to
   18  accountants,  lawyers,  doctors,  computer  programmers and consultants,
   19  architectural and  engineering  services,  and  construction  management
   20  services.
   21    (30) "Qualified joint venture agreement" means a joint venture between
   22  one  or  more MBEs, WBEs, VBES, and/or EBEs and another person, in which
   23  the percentage of profit or loss to which the certified firm or firms is
   24  entitled or exposed for participation in the contract, as set  forth  in
   25  the  joint  venture  agreement,  is  at least 25% of the total profit or
   26  loss.
   27    (31) "Scope of work" means  specific  tasks  required  in  a  contract
   28  and/or services or goods that must be provided to perform specific tasks
   29  required in a contract.
   30    (32)  "Standard  services"  means  services  other  than  professional
   31  services and human services.
   32    (33) "Utilization rate" means the percentage of total contract expend-
   33  itures expended on contracts or subcontracts with firms that  are  owned
   34  by  women,  VETERANS,  minorities,  or  individuals who are socially and
   35  economically disadvantaged, respectively, in one or more industry  clas-
   36  sifications.
   37    (34)  "WBE"  means  a  women-owned  business  enterprise  certified in
   38  accordance with section 1304 of the charter.
   39    (35) "VBE" MEANS A VETERAN-OWNED BUSINESS ENTERPRISE.
   40    d. Citywide goals. (1) The citywide  contracting  participation  goals
   41  for  MBEs, WBEs, VBES and EBEs, which may be met through awards of prime
   42  contracts or subcontracts as described in subdivision j of this section,
   43  shall be as follows:
   44    For construction contracts:
   45    Category:                   Participation goal:
   46    Black Americans             8% of total annual
   47                                agency expenditures on such contracts
   48    Asian Americans             8% of total annual agency
   49                                expenditures on such contracts
   50    Hispanic Americans          4% of total annual agency
   51                                expenditures on such contracts
   52    Women                       18% of total annual agency
   53                                expenditures on such contracts
   54    VETERANS                    A PERCENTAGE TO BE DETERMINED
   55                                BY THE COMMISSIONER IN ACCORDANCE
   56                                WITH THE PROVISIONS OF PARAGRAPH
       S. 1655                            35
    1                                FOUR OF THIS SUBDIVISION
    2    Emerging                    6% of total annual agency expenditures
    3                                on such contracts
    4    For professional services contracts:
    5    Category:                   Participation goal:
    6    Black Americans             12% of total annual agency
    7                                expenditures on such contracts
    8    Hispanic Americans          8% of total annual agency
    9                                expenditures on such contracts
   10    Women                       37% of total annual agency
   11                                expenditures on such contracts
   12    VETERANS                    A PERCENTAGE TO BE DETERMINED BY THE
   13                                COMMISSIONER IN ACCORDANCE WITH THE
   14                                PROVISIONS OF PARAGRAPH FOUR OF THIS
   15                                SUBDIVISION
   16                                expenditures on such contracts
   17    Emerging                    6% of total annual agency expenditures
   18                                on such contracts
   19    For standard services contracts:
   20    Category:                   Participation goal:
   21    Black Americans             12% of total annual agency
   22                                expenditures on such contracts
   23    Asian Americans             3% of total annual agency
   24                                expenditures on such contracts
   25    Hispanic Americans          6% of total annual agency
   26                                expenditures on such contracts
   27    Women                       10% of total annual agency
   28                                expenditures on such contracts
   29    VETERANS                    A PERCENTAGE TO BE DETERMINED BY THE
   30                                COMMISSIONER IN ACCORDANCE WITH THE
   31                                PROVISIONS OF PARAGRAPH FOUR OF THIS
   32                                SUBDIVISION
   33    Emerging                    6% of total annual agency expenditures
   34                                on such contracts
   35    For goods contracts under one hundred thousand dollars:
   36    Category:                   Participation goal:
   37    Black Americans             7% of total annual agency
   38                                expenditures on such contracts
   39    Asian Americans             8% of total annual agency
   40                                expenditures on such contracts
   41    Hispanic Americans          5% of total annual agency
   42                                expenditures on such contracts
   43    Women                       25% of total annual agency
   44                                expenditures on such contracts
   45    VETERANS                    A PERCENTAGE TO BE DETERMINED BY THE
   46                                COMMISSIONER IN ACCORDANCE WITH THE
   47                                PROVISIONS OF PARAGRAPH FOUR OF THIS
   48                                SUBDIVISION
   49    Emerging                    6% of total annual agency expenditures
   50                                on such contracts
   51    (2)  (a)  The  division  and  the city chief procurement officer shall
   52  develop a citywide utilization plan for procurements of goods.
   53    (b) Agencies shall develop agency utilization plans pursuant to subdi-
   54  vision g of this section. The citywide  goals  shall  not  be  summarily
   55  adopted  as goals for all annual agency utilization plans; rather, goals
   56  for such plans may be set at levels higher, lower, or the  same  as  the
       S. 1655                            36
    1  citywide goals, subject to the approval of the commissioner as described
    2  in  paragraph  three  of subdivision g of this section. When setting its
    3  goals, each agency shall consider  the  citywide  goals,  the  size  and
    4  nature  of  its own procurement portfolio, and the availability of MBEs,
    5  WBEs, VBES and EBEs with the capacity to perform the specific types  and
    6  scale  of work for which the agency anticipates it will solicit procure-
    7  ments during  the  year.  Agencies  shall  seek  to  ensure  substantial
    8  progress toward the attainment of each of these goals in as short a time
    9  as practicable.
   10    (3)  The  citywide  goals  shall not be summarily adopted as goals for
   11  individual procurements; rather, as set forth in subdivision i  of  this
   12  section, goals for such procurements may be set at levels higher, lower,
   13  or  the  same  as the citywide goals. In setting such goals, each agency
   14  shall take into account the  citywide  goals  and  the  agency's  annual
   15  utilization plan, the size and nature of the procurement, and the avail-
   16  ability  of  MBEs,  WBEs, VBES and EBEs with the capacity to perform the
   17  specific types and scale of work involved in its procurements.
   18    (4) (a) No later than 2015, the commissioner, in consultation with the
   19  city chief procurement officer, shall, for each industry  classification
   20  and  each  minority  group, review and compare the availability rates of
   21  firms owned by minorities [and], women AND VETERANS to  the  utilization
   22  rates  of  such  firms  in agency contracts and direct subcontracts, and
   23  shall on the basis of such review and any  other  relevant  information,
   24  where  appropriate,  revise by rule the citywide participation goals set
   25  forth in this subdivision AND DETERMINE APPROPRIATE CONTRACTING PERCENT-
   26  AGE GOALS FOR VETERANS.  In making such revision, the commissioner shall
   27  consider the extent to which discrimination continues to have an  impact
   28  on  the  ability  of minorities [and], women AND VETERANS to compete for
   29  city contracts and  subcontracts.  The  commissioner  shall  submit  the
   30  results  of  such review and any proposed revisions to the participation
   31  goals to the speaker of  the  council  at  least  sixty  days  prior  to
   32  publishing  a  proposed rule that would revise participation goals. Such
   33  review shall thereafter be conducted at least once every two years.
   34    (b) No later than 2015,  the  commissioner  shall  review  information
   35  collected  by  the department to determine the availability and utiliza-
   36  tion of EBEs, and shall on the basis of such review and any other  rele-
   37  vant information, where appropriate, revise by rule the citywide partic-
   38  ipation goals set forth in this subdivision AND INCLUDE VETERANS IN SUCH
   39  GOALS.  Such revised goals shall be set at a level intended to assist in
   40  overcoming the impact of discrimination on such businesses. Such  review
   41  shall be conducted in 2015 and at least once every two years thereafter.
   42    e. Responsibilities of the division.
   43    (1)  The  division  shall  create and maintain and periodically update
   44  directories by industry classification of  MBEs,  WBEs,  VBES  and  EBEs
   45  which  it shall supply to all agencies, post on its website and on other
   46  relevant city websites  and  make  available  for  dissemination  and/or
   47  public  inspection  at  its  offices  and  other  locations  within each
   48  borough.
   49    (2) The division shall make its resources available to assist agencies
   50  and contractors in (i) determining the availability of MBEs, WBEs,  VBES
   51  and  EBEs  to participate in their contracts as prime contractors and/or
   52  subcontractors;  and  (ii)  identifying  opportunities  appropriate  for
   53  participation by MBEs, WBEs, VBES and EBEs in contracts.
   54    (3)  The division shall develop and maintain relationships with organ-
   55  izations representing contractors, including MBEs, WBEs, VBES and  EBEs,
       S. 1655                            37
    1  and  solicit their support and assistance in efforts to increase partic-
    2  ipation of MBEs, WBEs, VBES and EBEs in city procurement.
    3    (4)  The  division  shall coordinate with city and state entities that
    4  maintain databases of MBEs, WBEs, VBES and EBEs and work to enhance city
    5  availability data and directories.
    6    (5) The division shall keep agency M/WBE AND VBE officers informed  of
    7  conferences,  contractor fairs, and other services that are available to
    8  assist them in pursuing the objectives of this section.
    9    (6) The division shall conduct, coordinate  and  facilitate  technical
   10  assistance  and  educational  programs for MBEs, WBEs, VBES and EBEs and
   11  other contractors designed to enhance participation of MBEs, WBEs,  VBES
   12  and  EBEs  in  city  procurement.  The  division shall further develop a
   13  clearinghouse of information on programs and services available to MBEs,
   14  WBEs, VBES and EBEs.   The division shall conduct  meetings  with  MBEs,
   15  WBEs, VBES and EBEs to discuss what agencies look for in evaluating bids
   16  and  proposals.  The  division  shall  also educate prime contractors on
   17  opportunities to partner or subcontract with certified MBEs, WBEs,  VBES
   18  and EBEs.
   19    (7)  The division shall develop standardized forms and reporting docu-
   20  ments for agencies and contractors to facilitate the reporting  require-
   21  ments of this section.
   22    (8)  The division shall direct and assist agencies in their efforts to
   23  increase participation by MBEs, WBEs, VBES and EBEs in any city-operated
   24  financial, technical, and management assistance program.
   25    (9) The division shall study and recommend to the commissioner methods
   26  to streamline the M/WBE, VBE and EBE certification process.
   27    (10) Each fiscal year the division,  in  consultation  with  the  city
   28  chief procurement officer, shall audit at least 5% of all open contracts
   29  for  which contractor utilization plans have been established in accord-
   30  ance with subdivision i of this section and 5% of all contracts  awarded
   31  to  MBEs,  WBEs,  VBES, and EBEs to assess compliance with this section.
   32  All solicitations for contracts for which contractor  utilization  plans
   33  are to be established shall include notice of potential audit.
   34    (11)  The  division  shall  assist agencies in identifying and seeking
   35  ways to reduce or eliminate practices such as  bonding  requirements  or
   36  delays  in  payment  by  prime  contractors that may present barriers to
   37  competition by MBEs, WBEs, VBES and EBEs.
   38    (12) The division shall encourage prime  contractors  to  enter  joint
   39  venture agreements with MBEs, WBEs, VBES and EBEs.
   40    (13)  (a)  The division shall, upon reviewing applications for certif-
   41  ication and recertification, determine whether a  firm  qualifies  as  a
   42  graduate MBE, WBE, VBE or EBE.
   43    (b)  The  division shall promulgate regulations establishing a process
   44  by which a certified MBE, WBE, VBE or EBE may challenge a  determination
   45  that it qualifies as a graduate MBE, WBE, VBE or EBE.
   46    (c)  At any time more than two years after the division has determined
   47  that a firm qualifies as a graduate MBE, WBE, VBE or EBE, the  firm  may
   48  apply  to  have  such  designation  lifted.  The division shall lift the
   49  designation if the firm demonstrates that it has  been  below  the  size
   50  standards established by the United States small business administration
   51  for its industry for a period of two years or more.
   52    f. Responsibilities of agency M/WBE AND VBE officers. Each agency head
   53  shall  designate a deputy commissioner or other executive officer to act
   54  as the agency M/WBE AND VBE officer who shall be directly accountable to
   55  the agency head concerning the activities of the agency in carrying  out
   56  its  responsibilities  pursuant to this section, including the responsi-
       S. 1655                            38
    1  bilities relating to EBE participation. The duties of the M/WBE AND  VBE
    2  officer shall include, but not be limited to:
    3    (1) creating the agency's utilization plan in accordance with subdivi-
    4  sion g of this section;
    5    (2) acting as the agency's liaison with the division;
    6    (3)  acting  as  a  liaison  with organizations and/or associations of
    7  MBEs, WBEs, VBES and EBEs, informing such organizations  and/or  associ-
    8  ations  of  the  agency's  procurement  procedures, and advising them of
    9  future procurement opportunities;
   10    (4) ensuring that agency bid solicitations and requests for  proposals
   11  are  sent  to  MBEs,  WBEs, VBES and EBEs in a timely manner, consistent
   12  with this section and rules of the procurement policy board;
   13    (5) referring MBEs,  WBEs,  VBES  and  EBEs  to  technical  assistance
   14  services available from agencies and other organizations;
   15    (6)  reviewing  requests  for  waivers and/or modifications of partic-
   16  ipation goals and contractor utilization plans in accordance with  para-
   17  graphs 11 and/or 12 of subdivision i of this section;
   18    (7)  working  with  the division and city chief procurement officer in
   19  creating directories as required  pursuant  to  subdivision  k  of  this
   20  section. In fulfilling this duty, the agency M/WBE AND VBE officer shall
   21  track  and  record  each  contractor that is an MBE, WBE, VBE or EBE and
   22  each subcontractor hired pursuant to  such  officer's  agency  contracts
   23  that  is  an MBE, WBE, VBE or EBE, and shall share such information with
   24  the director, the commissioner, and the city chief procurement officer;
   25    (8) for contracts for which contractor  utilization  plans  have  been
   26  established  pursuant  to subdivision i of this section, monitoring each
   27  contractor's compliance with its utilization plan by appropriate  means,
   28  which  shall  include, but need not be limited to, job site inspections,
   29  contacting MBEs, WBEs, VBES and EBEs identified in the plan  to  confirm
   30  their participation, and auditing the contractor's books and records;
   31    (9)  monitoring  the agency's procurement activities to ensure compli-
   32  ance with its agency utilization plan and progress towards  the  partic-
   33  ipation goals as established in such plan;
   34    (10)  providing  to the city chief procurement officer information for
   35  the reports required in subdivision l of this section and providing  any
   36  other  plans  and/or  reports  required  pursuant  to  this  section  or
   37  requested by the director and/or the city chief procurement officer; and
   38    (11) participating in meetings required pursuant to subdivision  m  of
   39  this section.
   40    g. Agency utilization plans.
   41    (1)  Beginning  May  15, 2006, and on April 1 of each year thereafter,
   42  each agency which, during the fiscal year which ended on June 30 of  the
   43  preceding year, has made procurements in excess of five million dollars,
   44  without  counting procurements that are exempt pursuant to paragraph two
   45  of subdivision q of this section, shall  submit  an  agency  utilization
   46  plan  for  the fiscal year commencing in July of the year when such plan
   47  is to be submitted to the commissioner. Upon approval by the commission-
   48  er such plan shall be submitted to the speaker of  the  council.    Each
   49  such plan shall, at a minimum, include the following:
   50    (a) the agency's participation goals for MBEs, WBEs, VBES and EBEs for
   51  the  year,  provided  however,  that when setting its goals, each agency
   52  shall consider the citywide goals,  the  size  and  nature  of  its  own
   53  procurement portfolio (excluding contracts described in paragraph two of
   54  subdivision q of this section), and the availability of MBEs, WBEs, VBES
   55  and  EBEs  with  the capacity to perform the specific types and scale of
       S. 1655                            39
    1  work for which the  agency  anticipates  it  will  solicit  procurements
    2  during the year;
    3    (b)  an  explanation  for  any  agency goal that is different than the
    4  participation goal for the relevant group and industry classification as
    5  determined pursuant to subdivision d of this section;
    6    (c) a list of the names and titles of agency personnel responsible for
    7  implementation of the agency utilization plan;
    8    (d) methods and relevant activities proposed for achieving  the  agen-
    9  cy's participation goals; and
   10    (e)  any  other information which the agency or the commissioner deems
   11  relevant or necessary.
   12    (2) An agency utilization plan shall set forth specific  participation
   13  goals  for  MBEs,  WBEs,  VBES and/or EBEs for purchases of professional
   14  services, standard services, construction and goods valued at  or  below
   15  twenty  thousand  dollars,  and  for purchases of professional services,
   16  standard services, construction and goods valued at or below one hundred
   17  thousand dollars. When setting its goals for such purchases, in addition
   18  to the factors set forth in paragraph  (1)  of  this  subdivision,  each
   19  agency  shall  specifically consider the potential for such purchases to
   20  provide opportunities for MBEs, WBEs, VBES and EBEs to  develop  greater
   21  capacity, thereby increasing competition for city procurements.
   22    (3)  An  agency  utilization  plan may be amended from time to time to
   23  reflect changes in the agency's projected expenditures or other relevant
   24  circumstances and  resulting  changes  in  such  agency's  participation
   25  goals.  Such amendments shall be submitted to the commissioner, the city
   26  chief procurement officer and the speaker of the council at least thirty
   27  days prior to implementation.
   28    (4) Prior  to  approving  individual  agency  utilization  plans,  the
   29  commissioner,  in  consultation with the city chief procurement officer,
   30  shall consider whether such plans viewed in the aggregate establish  any
   31  goals  exceeding  the corresponding citywide goals set forth in subdivi-
   32  sion d of this section. If any aggregated goals are found to exceed  the
   33  corresponding  citywide goal, the commissioner shall require agencies to
   34  adjust their goals so that plans, viewed in the aggregate, do not estab-
   35  lish goals exceeding the citywide goals. Nothing in this paragraph shall
   36  be construed to limit the awards of contracts and subcontracts that  may
   37  be made to MBEs, WBEs, VBES and EBEs without using goals.
   38    (5)  The commissioner, in consultation with the city chief procurement
   39  officer, shall, no later than July 31 of each year, publish on the divi-
   40  sion's website a plan and schedule for each agency detailing the  antic-
   41  ipated  contracting  actions  for the upcoming fiscal year that form the
   42  basis for the agency utilization plan of each such agency. The plan  and
   43  schedule  shall include information specific to each prospective invita-
   44  tion for bids, request for proposal, or other  solicitation,  including,
   45  but  not  limited to, the specific type and scale of the services and/or
   46  goods to be procured, the term of the proposed contract, the  method  of
   47  solicitation  the  agency intends to utilize, and the anticipated fiscal
   48  year quarter of the planned solicitation.
   49    h. Achieving agency participation goals.
   50    (1) Each agency head shall be directly accountable for the  goals  set
   51  forth in his or her agency's utilization plan.
   52    (2)  Each agency shall make all reasonable efforts to meet the partic-
   53  ipation goals established  in  its  agency  utilization  plan.  Agencies
   54  shall,  at a minimum, use the following methods to achieve participation
   55  goals:
       S. 1655                            40
    1    (a) Agencies shall engage in outreach activities  to  encourage  MBEs,
    2  WBEs,  VBES  and  EBEs  to  compete  for all facets of their procurement
    3  activities, including contracts awarded by negotiated acquisition, emer-
    4  gency and sole source contracts, and each agency shall seek  to  utilize
    5  MBEs,  WBEs,  VBES  and/or  EBEs  for  all  types of goods, services and
    6  construction they procure.
    7    (b) Agencies shall encourage eligible businesses to apply for  certif-
    8  ication as MBEs, WBEs, VBES and EBEs and inclusion in the directories of
    9  MBEs,  WBEs,  VBES  and  EBEs. Agencies shall also encourage MBEs, WBEs,
   10  VBES and EBEs to have their names included on their bidders lists,  seek
   11  pre-qualification  where  applicable,  and  compete for city business as
   12  contractors and subcontractors. Agencies  are  encouraged  to  advertise
   13  procurement  opportunities  in  general  circulation  media,  trade  and
   14  professional association publications  and  small  business  media,  and
   15  publications of minority [and], women's AND VETERANS' business organiza-
   16  tions,  and send written notice of specific procurement opportunities to
   17  minority [and], women's AND VETERANS' business organizations.
   18    (c) All agency solicitations  for  bids  or  proposals  shall  include
   19  information  referring potential bidders or proposers to the directories
   20  of MBEs, WBEs, VBES and EBEs prepared by the division.
   21    (d) In planning procurements, agencies shall consider  the  effect  of
   22  the  scope,  specifications  and size of a contract on opportunities for
   23  participation by MBEs, WBEs, VBES and EBEs.
   24    (e) Prior to soliciting bids or proposals for contracts valued at over
   25  ten million dollars, other than contracts for capital projects valued at
   26  over twenty-five million dollars and contracts that are exempt  pursuant
   27  to  paragraph  two  of  subdivision  q  of this section, an agency shall
   28  submit the bid or proposal to the city chief procurement officer  for  a
   29  determination  whether it is practicable to divide the proposed contract
   30  into smaller contracts and whether doing so will enhance competition for
   31  such contracts among MBEs, WBEs,  VBES  and  EBEs  and  other  potential
   32  bidders  or  proposers. If the city chief procurement officer determines
   33  that it is both practicable and advantageous in light of cost and  other
   34  relevant  factors  to divide such contracts into smaller contracts, then
   35  he or she shall direct the agency to do so.
   36    (f) Agencies shall examine their internal procurement policies, proce-
   37  dures and practices and, where practicable, address those  elements,  if
   38  any,  that  may  negatively affect participation of MBEs, WBEs, VBES and
   39  EBEs in city procurement.
   40    i. Participation goals for contracts for construction and professional
   41  and standard services.
   42    (1) Prior to issuing the solicitation of bids or proposals  for  indi-
   43  vidual contracts, agencies shall establish participation goals for MBEs,
   44  WBEs, VBES and/or EBEs. Such goals may be greater than, less than or the
   45  same  as  the  relevant  citywide  goal or goals established pursuant to
   46  subdivision d of this section. Taking into account the factors listed in
   47  this subdivision, an agency may establish a goal for a procurement  that
   48  may  be  achieved  by  a  combination  of prime contract and subcontract
   49  dollars, a combination of construction and services  performed  pursuant
   50  to  the  contract, and/or a combination of MBEs, WBEs, VBES and/or EBEs.
   51  Alternatively, an agency may establish  specific  goals  for  particular
   52  types of services, and/or goals for particular types of certified firms.
   53  In  determining  the  participation  goals for a particular contract, an
   54  agency shall consider the following factors:
   55    (a) the scope of work;
       S. 1655                            41
    1    (b) the availability of MBEs, WBEs, VBES and EBEs able to perform  the
    2  particular tasks required in the contract;
    3    (c)  the  extent  to  which the type and scale of work involved in the
    4  contract present prime contracting and subcontracting opportunities  for
    5  amounts within the capacity of MBEs, WBEs, VBES and EBEs;
    6    (d)  the  agency's  progress to date toward meeting its annual partic-
    7  ipation goals through race-neutral, gender-neutral and other means,  and
    8  the  agency's  expectations  as  to the effect such methods will have on
    9  participation of MBEs, WBEs,  VBES  and  EBEs  in  the  agency's  future
   10  contracts; and
   11    (e) any other factors the contracting agency deems relevant.
   12    (2)  A  contracting  agency shall not be required to establish partic-
   13  ipation goals for
   14    (i) procurements described in subdivision q of this section; or
   15    (ii) when the agency has already attained the  relevant  goal  in  its
   16  annual  utilization plan, or expects that it will attain such goal with-
   17  out the use of such participation goals.
   18    (3) For each contract in which a contracting  agency  has  established
   19  participation  goals,  such  agency  shall state in the solicitation for
   20  such contract that bidders and/or proposers shall be required  to  agree
   21  as  a  material  term of the contract that the contractor shall meet the
   22  participation goals unless such goals are  waived  or  modified  by  the
   23  agency  in  accordance  with  this section. A contractor that is an MBE,
   24  WBE, VBE or EBE shall be permitted to count its own participation toward
   25  fulfillment of the relevant participation goal, provided that the  value
   26  of  such a contractor's participation shall be determined by subtracting
   27  from the total value of the contract any  amounts  that  the  contractor
   28  pays  to  direct  subcontractors. A contractor that is a qualified joint
   29  venture shall be permitted to count a  percentage  of  its  own  partic-
   30  ipation toward fulfillment of the relevant participation goal. The value
   31  of  such a contractor's participation shall be determined by subtracting
   32  from the total value of the contract any  amounts  that  the  contractor
   33  pays to direct subcontractors, and then multiplying the remainder by the
   34  percentage  to  be  applied  to  total profit to determine the amount to
   35  which an MBE, WBE, VBE or EBE is entitled pursuant to the joint  venture
   36  agreement.  Notwithstanding  any  provision  of  this  paragraph  to the
   37  contrary, a contractor's achievement of  participation  goals  shall  be
   38  determined  as  described  in  paragraph  two  of  subdivision j of this
   39  section.
   40    (4) For each contract in which participation  goals  are  established,
   41  the  agency shall include in its solicitation and/or bidding materials a
   42  referral to the directories prepared by the division  pursuant  to  this
   43  section.
   44    (5)  For  each contract for which participation goals are established,
   45  the contractor shall be required to submit with its bid  or  proposal  a
   46  contractor utilization plan indicating:
   47    (a)  whether  the  contractor is an MBE, WBE, VBE, EBE, or a qualified
   48  joint venture;
   49    (b) the percentage of work it intends to award to  direct  subcontrac-
   50  tors; and
   51    (c)  in  cases  where  the  contractor intends to award direct subcon-
   52  tracts, a description of the type and dollar value  of  work  designated
   53  for  participation  by MBEs, WBEs, VBES and/or EBEs, and the time frames
   54  in which such work is scheduled to begin and end.
   55    When the contractor utilization plan  indicates  that  the  bidder  or
   56  proposer  does  not  intend  to meet the participation goals, the bid or
       S. 1655                            42
    1  proposal shall not be deemed responsive unless the agency has granted  a
    2  pre-award  request  for change pursuant to paragraph 11 of this subdivi-
    3  sion.
    4    (6)  (a) For each contract for which a contractor utilization plan has
    5  been submitted, the contracting agency shall require that within  thirty
    6  days  of  the  issuance of notice to proceed, and at least once per year
    7  thereafter, the contractor submit a list of persons to which it  intends
    8  to award subcontracts within the next twelve months. In the event that a
    9  contracting agency disapproves a contractor's selection of a subcontrac-
   10  tor  or subcontractors, the contracting agency shall allow such contrac-
   11  tor a reasonable time to propose alternate subcontractors.
   12    (b) The contracting agency may also require the contractor  to  report
   13  periodically about the contracts awarded by its direct subcontractors to
   14  indirect subcontractors.
   15    (7) For each contract for which a contractor utilization plan has been
   16  submitted,  the  contractor shall, with each voucher for payment, and/or
   17  periodically as the agency may  require,  submit  statements,  certified
   18  under  penalty  of  perjury, which shall include, but not be limited to,
   19  the total amount the contractor paid to its direct subcontractors,  and,
   20  where applicable pursuant to subparagraph (1) of paragraph (1) of subdi-
   21  vision j of this section, the total amount direct subcontractors paid to
   22  indirect  subcontractors,  the  names,  addresses and contact numbers of
   23  each MBE, WBE, VBE or EBE hired as a subcontractor by the contractor  or
   24  any  of the contractor's direct subcontractors, as well as the dates and
   25  amounts paid to each MBE, WBE, VBE or EBE.  The  contractor  shall  also
   26  submit,  along  with  its voucher for final payment, the total amount it
   27  paid to subcontractors, and, where applicable pursuant  to  subparagraph
   28  (1)  of paragraph (1) of subdivision j of this section, the total amount
   29  its direct subcontractors paid directly to  their  indirect  subcontrac-
   30  tors;  and a final list, certified under penalty of perjury, which shall
   31  include the name, address and contact information of each  subcontractor
   32  that  is  an  MBE, WBE, VBE or EBE, the work performed by, and the dates
   33  and amounts paid to each.
   34    (8) If payments made to, or work performed by,  MBEs,  WBEs,  VBES  or
   35  EBEs  are less than the amount specified in the contractor's utilization
   36  plan, the agency shall take appropriate action in accordance with subdi-
   37  vision o of this section, unless the contractor has obtained a modifica-
   38  tion of its utilization plan pursuant to paragraph 12 of  this  subdivi-
   39  sion.
   40    (9)  When  advertising  a  solicitation  for  bids  or proposals for a
   41  contract for which a participation goal has been  established,  agencies
   42  shall include in the advertisement a general statement that the contract
   43  will be subject to participation goals for MBEs, WBEs, VBES and/or EBEs.
   44    (10)  In  the  event that a contractor with a contract that includes a
   45  contractor utilization plan submits a request for  a  change  order  the
   46  value  of  which  exceeds the greater of ten percent of such contract or
   47  $500,000, the agency shall review the scope of work  for  the  contract,
   48  and the scale and types of work involved in the change order, and deter-
   49  mine whether the participation goals should be modified.
   50    (11)  Requests  from bidders or proposers for changes in participation
   51  goals.
   52    (a) A bidder or proposer may request that an agency change the partic-
   53  ipation goal or goals established for the  procurement  on  the  grounds
   54  that  goals  are  unreasonable in light of the availability of certified
   55  firms to perform the services required, or by demonstrating that it  has
       S. 1655                            43
    1  legitimate  business reasons for proposing a lower level of subcontract-
    2  ing in its utilization plan.
    3    (b)  If the contracting agency determines that the participation goals
    4  established for the procurement are unreasonable in light of the  avail-
    5  ability  of  certified  firms to perform the services required, it shall
    6  revise the solicitation and extend the deadline for bids and proposals.
    7    (c) Subject to subparagraph (d) of  this  paragraph,  the  contracting
    8  agency  may grant a full or partial waiver of the participation goals to
    9  a bidder or proposer who demonstrates that it  has  legitimate  business
   10  reasons  for  proposing  the  level of subcontracting in its utilization
   11  plan. The contracting agency shall make its determination  in  light  of
   12  factors that shall include, but not be limited to, whether the bidder or
   13  proposer  has  the  capacity  and the bona fide intention to perform the
   14  contract without any subcontracting, or to perform the contract  without
   15  awarding  the  amount  of  subcontracts represented by the participation
   16  goals. In making such determination, the agency may consider whether the
   17  utilization plan is consistent with past subcontracting practices of the
   18  bidder or proposer, whether the bidder or proposer has made  efforts  to
   19  form  a  joint  venture with a certified firm, and whether the bidder or
   20  proposer has made  good  faith  efforts  to  identify  portions  of  the
   21  contract  that  it  intends  to  subcontract. The city chief contracting
   22  officer shall notify the council of any such waiver granted with respect
   23  to a registered contract in the quarterly report  required  pursuant  to
   24  subdivision 1 of this section.
   25    (d)  The  agency M/WBE AND VBE officer shall provide written notice of
   26  requests for a full or partial waiver of the participation goals to  the
   27  division  and  the  city chief procurement officer and shall not approve
   28  any such request without the approval  of  the  city  chief  procurement
   29  officer, provided that the city chief procurement officer, upon adequate
   30  assurances  of an agency's ability to administer its utilization plan in
   31  accordance with the provisions  of  this  section,  may  determine  that
   32  further approval from the city chief procurement officer is not required
   33  with  respect  to  such requests for an agency's contracts or particular
   34  categories of an agency's contracts. The city chief procurement  officer
   35  shall  notify  the  speaker  of  the council in writing in the quarterly
   36  report required pursuant to subdivision 1 of this section following  the
   37  registration  of  a  contract  for which a request for a full or partial
   38  waiver of a participation goal was granted, provided that where an agen-
   39  cy has been authorized to grant waivers without approval  of  the  chief
   40  procurement officer, such notice shall be provided to the speaker of the
   41  council  by  the  agency.  Such  notification  shall include, but not be
   42  limited to, the name of the contractor, the original participation goal,
   43  the waiver request, including all documentation, and an explanation  for
   44  the approval of such request.
   45    (12)  Modification  of  utilization  plans  at contractor's request or
   46  agency's initiative. (a) A contractor may request  modification  of  its
   47  utilization  plan after the award of a contract. Subject to subparagraph
   48  (b) of this paragraph, an agency may grant such request if it determines
   49  that such contractor has established, with appropriate  documentary  and
   50  other  evidence, that it made all reasonable, good faith efforts to meet
   51  the goals set by the agency for the contract. In  making  such  determi-
   52  nation,  the agency shall consider evidence of the following efforts, as
   53  applicable, along with any other relevant factors:
   54    (i) The contractor advertised  opportunities  to  participate  in  the
   55  contract,  where  appropriate,  in  general circulation media, trade and
   56  professional association publications  and  small  business  media,  and
       S. 1655                            44
    1  publications of minority [and], women's AND VETERANS' business organiza-
    2  tions;
    3    (ii)  The  contractor  provided  notice  of  specific opportunities to
    4  participate in the contract, in a  timely  manner,  to  minority  [and],
    5  women's AND VETERANS' business organizations;
    6    (iii)  The  contractor  sent  written  notices,  by  certified mail or
    7  facsimile, in a timely manner, to advise MBEs, WBEs, VBES or  EBEs  that
    8  their interest in the contract was solicited;
    9    (iv) The contractor made efforts to identify portions of the work that
   10  could  be  substituted  for  portions  originally designated for partic-
   11  ipation by MBEs, WBEs, VBES and/or EBEs in  the  contractor  utilization
   12  plan,  and  for which the contractor claims an inability to retain MBEs,
   13  WBEs, VBES or EBEs;
   14    (v) The contractor held meetings with MBEs,  WBEs,  VBES  and/or  EBEs
   15  prior  to  the date their bids or proposals were due, for the purpose of
   16  explaining in detail the scope and requirements of the  work  for  which
   17  their bids or proposals were solicited;
   18    (vi)  The  contractor  made efforts to negotiate with MBEs, WBEs, VBES
   19  and/or EBEs as relevant to perform  specific  subcontracts,  or  act  as
   20  suppliers or service providers;
   21    (vii) Timely written requests for assistance made by the contractor to
   22  the agency M/WBE AND VBE liaison officer and to the division; and
   23    (viii) Description of how recommendations made by the division and the
   24  contracting agency were acted upon and an explanation of why action upon
   25  such  recommendations did not lead to the desired level of participation
   26  of MBEs, WBEs, VBES and/or EBEs.
   27    (b) The agency M/WBE AND VBE officer shall provide written  notice  of
   28  requests  for  such  modifications  to  the  division and the city chief
   29  procurement officer and shall not approve any such request for modifica-
   30  tion without  the  approval  of  the  city  chief  procurement  officer,
   31  provided  that  the city chief procurement officer, upon adequate assur-
   32  ances of an agency's ability  to  administer  its  utilization  plan  in
   33  accordance  with  the  provisions  of  this  section, may determine that
   34  further approval from the city chief procurement officer is not required
   35  with respect to such requests for an agency's  contracts  or  particular
   36  categories of an agency's contracts. The city chief procurement officer,
   37  shall  notify the speaker of the council in writing within seven days of
   38  the approval of a  request  for  modification  of  a  utilization  plan,
   39  provided that where an agency has been authorized to grant modifications
   40  without  approval of the chief procurement officer, such notice shall be
   41  provided to the speaker of the council by the agency. Such  notification
   42  shall  include,  but  not be limited to, the name of the contractor, the
   43  original utilization  plan,  the  modification  request,  including  all
   44  documentation, and an explanation for the approval of such request.
   45    (c)  An  agency  may  modify the participation goals established for a
   46  procurement when the scope of the work has been changed by the agency in
   47  a manner that affects the scale and types of work  that  the  contractor
   48  indicated in its contractor utilization plan would be awarded to subcon-
   49  tractors.
   50    (d)  The  agency M/WBE AND VBE officer shall provide written notice to
   51  the contractor of its determination that shall include the  reasons  for
   52  such determination.
   53    (13)  For  each contract in which a contracting agency has established
   54  participation goals, the agency shall evaluate and assess  the  contrac-
   55  tor's performance in meeting each such goal. Such evaluation and assess-
       S. 1655                            45
    1  ment  shall  be  a part of the contractor's overall contract performance
    2  evaluation required pursuant to section 333 of the charter.
    3    j. Determining credit for MBE, WBE, VBE and EBE participation.
    4    (1) An agency's achievement of its annual goals shall be calculated as
    5  follows:
    6    (a)  The  dollar amount that an agency has paid or is obligated to pay
    7  to a prime contractor that is an MBE, WBE, VBE or EBE,  reduced  by  the
    8  dollar  amount the contractor has paid or is obligated to pay its direct
    9  subcontractors upon their completion of work, shall be  credited  toward
   10  the  relevant  goal.  Where  an agency has paid or is obligated to pay a
   11  prime contractor that is both an MBE and a WBE,  such  amount  shall  be
   12  credited  toward the relevant goal for MBEs or the goal for WBEs.  WHERE
   13  AN AGENCY HAS PAID OR IS OBLIGATED TO PAY A  PRIME  CONTRACTOR  THAT  IS
   14  BOTH  AN  MBE OR WBE AND A VBE, SUCH AMOUNT SHALL BE CREDITED TOWARD THE
   15  RELEVANT GOAL FOR MBES OR WBES, AS APPLICABLE, OR THE GOAL FOR VBES.
   16    (b) Except as provided in subparagraph  (c)  of  this  paragraph,  the
   17  total  dollar amount that a prime contractor of an agency has paid or is
   18  obligated to pay to a direct subcontractor that is an MBE, WBE,  VBE  or
   19  EBE  shall be credited toward the relevant goal. Where such a contractor
   20  has paid or is obligated to pay a direct subcontractor that is  both  an
   21  MBE  and  a  WBE, such amount shall be credited toward the relevant goal
   22  for MBEs or the goal for WBEs.  WHERE SUCH A CONTRACTOR HAS PAID  OR  IS
   23  OBLIGATED TO PAY A DIRECT SUBCONTRACTOR THAT IS BOTH AN MBE OR WBE AND A
   24  VBE,  SUCH AMOUNT SHALL BE CREDITED TOWARD THE RELEVANT GOAL FOR MBES OR
   25  WBES, AS APPLICABLE, OR THE GOAL FOR VBES.
   26    (c) In the case of contracts  of  the  types  identified  pursuant  to
   27  subparagraph (l) of this paragraph, the total dollar amount that a prime
   28  contractor of an agency has paid or is obligated to pay a direct subcon-
   29  tractor  that  is  an MBE, WBE, VBE or EBE, reduced by the dollar amount
   30  the direct subcontractor has paid or is obligated to  pay  its  indirect
   31  subcontractors  upon  completion  of  work, shall be credited toward the
   32  relevant goal. Where such a contractor has paid or is obligated to pay a
   33  direct contractor that is both an MBE and a WBE, such  amount  shall  be
   34  credited  toward the relevant goal for MBEs or the goal for WBEs.  WHERE
   35  SUCH CONTRACTOR HAS PAID OR IS OBLIGATED TO PAY A DIRECT CONTRACTOR THAT
   36  IS BOTH AN MBE OR WBE AND A VBE, SUCH AMOUNT SHALL  BE  CREDITED  TOWARD
   37  THE RELEVANT GOAL FOR MBES OR WBES, AS APPLICABLE, OR THE GOAL FOR VBES.
   38    (d)  In  the  case  of  contracts  of the types identified pursuant to
   39  subparagraph (1) of this paragraph,  the  total  dollar  amount  that  a
   40  direct subcontractor of the prime contractor has paid or is obligated to
   41  pay  to  an indirect subcontractor that is an MBE, WBE, VBE or EBE shall
   42  be credited toward the relevant goal. Where such a contractor  has  paid
   43  or  is  obliged  to pay an indirect contractor that is both an MBE and a
   44  WBE, such amount shall be credited toward the relevant goal for MBEs  or
   45  the  goal for WBEs.  WHERE SUCH A CONTRACTOR HAS PAID OR IS OBLIGATED TO
   46  PAY A DIRECT CONTRACTOR THAT IS BOTH AN MBE  OR  WBE  AND  A  VBE,  SUCH
   47  AMOUNT  SHALL  BE CREDITED TOWARD THE RELEVANT GOAL FOR MBES OR WBES, AS
   48  APPLICABLE, OR THE GOAL FOR VBES.
   49    (e) For requirements contracts, credit shall be given for  the  actual
   50  dollar amount paid under the contract.
   51    (f)  Where  one or more MBEs, WBEs, VBES or EBEs is participating in a
   52  qualified joint venture, the amounts that the joint venture is  required
   53  to  pay  its  direct  subcontractors  shall be subtracted as provided in
   54  subparagraph (a) of this paragraph, and then a percentage of the remain-
   55  ing dollar amount of the contract  equal  to  the  percentage  of  total
   56  profit  to  which  MBEs, WBEs, VBES or EBEs are entitled pursuant to the
       S. 1655                            46
    1  joint venture agreement shall be  credited  toward  the  relevant  goal.
    2  Where  such  a  participant in a joint venture is both an MBE and a WBE,
    3  such amount shall be credited toward the relevant goal for MBEs  or  the
    4  goal  for WBEs.  WHERE SUCH A CONTRACTOR HAS PAID OR IS OBLIGATED TO PAY
    5  A DIRECT CONTRACTOR THAT IS BOTH AN MBE OR WBE AND A  VBE,  SUCH  AMOUNT
    6  SHALL BE CREDITED TOWARD THE RELEVANT GOAL FOR MBES OR WBES, AS APPLICA-
    7  BLE, OR THE GOAL FOR VBES.
    8    (g)  No  credit  shall  be given for participation in a contract by an
    9  MBE, WBE, VBE or EBE that does not perform a commercially  useful  func-
   10  tion.
   11    (h)  No  credit  shall be given for the participation in a contract by
   12  any company that has not been certified as an MBE, WBE, VBE  or  EBE  in
   13  accordance with section 1304 of the charter.
   14    (i)  In  the  case of a contract for which the contractor is paid on a
   15  commission basis, the dollar amount of the contract may be determined on
   16  the basis of the commission  earned  or  reasonably  anticipated  to  be
   17  earned under the contract.
   18    (j)  No  credit  shall be given to a contractor for participation in a
   19  contract by a graduate MBE, WBE, VBE or EBE.
   20    (k) The participation of a certified company  shall  not  be  credited
   21  toward more than one participation goal.
   22    (1) The city chief procurement officer may identify types of contracts
   23  where  payments  to indirect subcontractors shall be credited toward the
   24  relevant participation goals.
   25    (2) A contractor's achievement of its participation goals  established
   26  in its utilization plan shall be calculated as follows:
   27    (a)  A  contractor's  use  of direct subcontractors and their indirect
   28  subcontractors toward achievement of each goal established in its utili-
   29  zation plan shall be calculated in the  same  manner  as  described  for
   30  calculating  the achievement of agency utilization goals as described in
   31  paragraph (1) of this subdivision, except that a contractor's use  of  a
   32  subcontractor  that  is  both  an MBE and a WBE, OR IS AN MBE OR WBE AND
   33  ALSO A VBE, shall not be credited toward the contractor's achievement of
   34  more than one goal;
   35    (b) A contractor that is an MBE, WBE, VBE or EBE shall be permitted to
   36  count its own participation toward fulfillment of the  relevant  partic-
   37  ipation  goal,  provided  that  the value of such a contractor's partic-
   38  ipation shall be determined by subtracting from the total value  of  the
   39  contract  any amounts that the contractor pays to direct subcontractors,
   40  and provided further that a contractor that is both an MBE and a WBE, OR
   41  IS AN MBE OR WBE AND ALSO A VBE, shall not be credited for  its  partic-
   42  ipation toward more than one goal;
   43    (c)  No  credit shall be given to the contractor for the participation
   44  of a company that is not certified in accordance with  section  1304  of
   45  the  charter  before  the date that the subcontractor completes the work
   46  under the subcontract.
   47    (d) A contractor that is a qualified joint venture shall be  permitted
   48  to count a percentage of its own participation toward fulfillment of the
   49  relevant  participation  goal.  The value of such a contractor's partic-
   50  ipation shall be determined by subtracting from the total value  of  the
   51  contract  any amounts that the contractor pays to direct subcontractors,
   52  and then multiplying the remainder by the percentage to  be  applied  to
   53  total profit to determine the amount to which an MBE, WBE, VBE or EBE is
   54  entitled  pursuant  to  the joint venture agreement; provided that where
   55  such a participant in a joint venture is both an MBE and a WBE, OR IS AN
       S. 1655                            47
    1  MBE OR A WBE AND ALSO A VBE, such amount shall not  be  credited  toward
    2  more than one goal.
    3    k. Small purchases.
    4    Whenever  an  agency  solicits  bids  or proposals for small purchases
    5  pursuant to section three hundred fourteen of the  charter,  the  agency
    6  shall  maintain  records  identifying  the  MBEs, WBEs, VBES and EBEs it
    7  solicited, which shall become part of the contract file.
    8    l. Compliance reporting.
    9    (1) The city chief procurement officer, in consultation with the divi-
   10  sion, shall prepare and submit quarterly reports to the speaker  of  the
   11  council  as  described  in  this section. Preliminary reports containing
   12  information for the fiscal year in progress shall be  submitted  to  the
   13  speaker  of the council by January first, April first, and July first of
   14  each year, and a final report containing information for  the  preceding
   15  fiscal  year shall be submitted to the speaker of the council by October
   16  first of each year. The reports, which shall also be posted on the divi-
   17  sion's website, shall contain the following  information,  disaggregated
   18  by agency:
   19    (a)  the number and total dollar value of contracts awarded, disaggre-
   20  gated by industry classification and size of contract, including but not
   21  limited to, contracts  valued  at  or  below  twenty  thousand  dollars,
   22  contracts  valued  above  twenty  thousand  dollars  and at or below one
   23  hundred thousand dollars, contracts valued above  one  hundred  thousand
   24  dollars  and at or below one million dollars, contracts valued above one
   25  million dollars and at or below five million dollars,  contracts  valued
   26  above  five million dollars and at or below twenty five million dollars,
   27  and contracts valued above twenty five million dollars;
   28    (b) for those contracts for which an agency set participation goals in
   29  accordance with subdivision i of this section:
   30    (i) The number and total dollar amount of such contracts disaggregated
   31  by industry classification, size of contract and  status  as  MBE,  WBE,
   32  VBE,  EBE,  or non-certified firm, and further disaggregated by minority
   33  and gender group, and the number and dollar value of such contracts that
   34  were awarded to firms that are certified both as MBEs and WBEs, OR AS AN
   35  MBE OR WBE AND ALSO A VBE;
   36    (ii) the number and total dollar value of  such  contracts  that  were
   37  awarded  to  qualified joint ventures and the total dollar amount attri-
   38  buted to the MBE, WBE, VBE or EBE joint venture partners,  disaggregated
   39  by  minority and gender group, size of contract and industry classifica-
   40  tion, and the number and  dollar  value  of  such  contracts  that  were
   41  awarded  to firms that are certified both as MBEs and WBEs, OR AS AN MBE
   42  OR WBE AND ALSO A VBE;
   43    (iii) The number and  total  dollar  value  of  subcontracts  approved
   44  during the reporting period that were entered into pursuant to contracts
   45  for which participation requirements under this section have been estab-
   46  lished  (including  both  contracts awarded during the current reporting
   47  period and those awarded in earlier reporting periods that  remain  open
   48  during  the  current  reporting period), and the number and total dollar
   49  amount of such subcontracts awarded to MBEs, WBEs, VBES and EBEs, disag-
   50  gregated by minority and gender group, size of subcontract and  industry
   51  classification,  and  the  number  and dollar value of such subcontracts
   52  that were awarded to firms that are certified both as MBEs and WBEs,  OR
   53  AS AN MBE OR WBE AND ALSO A VBE;
   54    (iv)  a  list  of  the requests for full or partial waivers of partic-
   55  ipation requirements for such contracts made pursuant to paragraph 11 of
   56  subdivision i of this section and the determinations made  with  respect
       S. 1655                            48
    1  to  such  requests,  and the number and dollar amount of those contracts
    2  for which such waivers were granted, disaggregated by  industry  classi-
    3  fication; and
    4    (v)  a list of the requests for modification of participation require-
    5  ments for such contracts made pursuant to paragraph 12 of subdivision  i
    6  of  this  section  and  the  determinations  made  with  respect to such
    7  requests, and the number and dollar amount of those contracts for  which
    8  such  modifications  were granted, disaggregated by industry classifica-
    9  tion;
   10    (c) a detailed list of each complaint received pursuant to paragraph 1
   11  of subdivision o of this section which shall, at a minimum, include  the
   12  nature  of  each  complaint  and  the  action taken in investigating and
   13  addressing such complaint including  whether  and  in  what  manner  the
   14  enforcement provisions of subdivision o of this section were invoked and
   15  the remedies applied;
   16    (d)  a  detailed  list of all non-compliance findings made pursuant to
   17  paragraph 4 of subdivision o  of  this  section  and  actions  taken  in
   18  response to such findings;
   19    (e)  the  number  of firms certified or recertified in accordance with
   20  section 1304 of the charter during the six months immediately  preceding
   21  such report;
   22    (f)  the  number  and  percentage  of  contracts  audited  pursuant to
   23  [section] paragraph 10 of subdivision e of this section and a summary of
   24  the results of each audit.
   25    (g) a summary of efforts to reduce or eliminate barriers  to  competi-
   26  tion  as  required  pursuant  to  paragraph  11 of subdivision e of this
   27  section;
   28    (h) a list of all solicitations submitted to the city  chief  procure-
   29  ment officer pursuant to subparagraph [e] (E) of paragraph 2 of subdivi-
   30  sion h of this section and a summary of the determination made regarding
   31  each such submission; and
   32    (i)  any  other  information as may be required by the director and/or
   33  the commissioner.
   34    (2) The annual  reports  submitted  in  October  shall,  in  addition,
   35  contain a determination made by the director and the commissioner, as to
   36  whether  each  agency has made substantial progress toward achieving its
   37  utilization goals and whether the city  has  made  substantial  progress
   38  toward  achieving the citywide goals established pursuant to subdivision
   39  d of this section.
   40    (3) If an agency that has submitted an agency utilization plan  pursu-
   41  ant  to  subdivision  g of this section fails to achieve its utilization
   42  goal, the agency head shall prepare and  submit  to  the  director,  the
   43  commissioner, the city chief procurement officer, and the speaker of the
   44  council  by  October  first  a  performance improvement plan which shall
   45  describe in detail the efforts  such  agency  intends  to  undertake  to
   46  increase M/WBE AND VBE participation.
   47    (4)  The  data that provide the basis for the reports required by this
   48  subdivision shall be made available electronically to the council at the
   49  time the reports are submitted.
   50    m. Agency compliance.
   51    (1) Each agency shall submit to the commissioner and  the  city  chief
   52  procurement  officer such information as is necessary for the city chief
   53  procurement officer to complete his or her reports as required in subdi-
   54  vision l of this section. The director, the commissioner, and  the  city
   55  chief  procurement  officer shall review each agency's submissions.  The
   56  director shall convene the agency M/WBE AND VBE officers for those agen-
       S. 1655                            49
    1  cies that have submitted utilization plans pursuant to subdivision g  of
    2  this  section  as  often  as  the  director deems necessary, but no less
    3  frequently than once per quarter, in order to have agency M/WBE AND  VBE
    4  officers  (i) discuss the results of the reports required in subdivision
    5  1 of this section; (ii)  offer  detailed  information  concerning  their
    6  effectuation  of  their performance improvement plans and any additional
    7  efforts undertaken to  meet  goals  established  in  agency  utilization
    8  plans; (iii) share the practices that have yielded successes in increas-
    9  ing  M/WBE  AND  VBE  participation;  and (iv) devise strategic plans to
   10  improve the performance of those failing to meet  goals  established  in
   11  agency utilization plans. No less frequently than twice per year, agency
   12  heads  for those agencies that have submitted utilization plans pursuant
   13  to subdivision g of this section shall  join  such  quarterly  meetings.
   14  Whenever  it  has  been determined that an agency is not making adequate
   15  progress toward the goals established in its  agency  utilization  plan,
   16  the  director,  the commissioner, and the city chief procurement officer
   17  shall act to improve such agency's performance, and may take any of  the
   18  following actions:
   19    (a)  require  the  agency  to  submit  more frequent reports about its
   20  procurement activity;
   21    (b) require the agency to notify the director, the  commissioner,  and
   22  the  city  chief  procurement  officer, prior to solicitation of bids or
   23  proposals for, and/or prior to award of, contracts in any category where
   24  the agency has not made adequate progress toward achieving its  utiliza-
   25  tion goals;
   26    (c)  reduce  or rescind contract processing authority delegated by the
   27  mayor pursuant to sections 317 and 318 of the charter; and
   28    (d) any other action the director,  the  commissioner,  and  the  city
   29  chief procurement officer deem appropriate.
   30    (2)  Noncompliance.  Whenever the director, the city chief procurement
   31  officer, or the commissioner finds that an agency has failed  to  comply
   32  with  its  duties under this section, he or she shall attempt to resolve
   33  such noncompliance informally with the agency head. In  the  event  that
   34  the  agency  fails  to  remedy  its  noncompliance  after  such informal
   35  efforts, the director and  the  city  chief  procurement  officer  shall
   36  submit  such  findings  in  writing  to the mayor and the speaker of the
   37  council, and the mayor shall take appropriate measures to ensure compli-
   38  ance.
   39    (3) Failure by an agency to submit information required by the  direc-
   40  tor,  the division, or the city chief procurement officer, in accordance
   41  with this section, including but not limited  to  the  utilization  plan
   42  required  pursuant  to  subdivision  g  of this section, shall be deemed
   43  noncompliance.
   44    n. Pre-qualification. An agency establishing a list  of  pre-qualified
   45  bidders  or proposers may deny pre-qualification to prospective contrac-
   46  tors who fail to demonstrate in their application for  pre-qualification
   47  that  they  have  complied  with  applicable  federal,  state  and local
   48  requirements for participation of MBEs, WBEs, VBES and EBEs in  procure-
   49  ments.  A denial of pre-qualification may be appealed pursuant to appli-
   50  cable procurement policy board rules.
   51    o. Enforcement.
   52    (1) Any person who believes that a violation of  the  requirements  of
   53  this  section,  rules  promulgated  pursuant  to  its provisions, or any
   54  provision of a contract that implements  this  section  or  such  rules,
   55  including,  but  not  limited  to,  any contractor utilization plan, has
   56  occurred may submit a complaint in writing to  the  division,  the  city
       S. 1655                            50
    1  chief  procurement  officer  and  the  comptroller.  The  division shall
    2  promptly investigate such complaint and determine whether there has been
    3  a violation.
    4    (2)  Any complaint alleging fraud, corruption or other criminal behav-
    5  ior on, the part of a bidder,  proposer,  contractor,  subcontractor  or
    6  supplier  shall  be  referred  to  the commissioner of the department of
    7  investigation.
    8    (3) Contract award.
    9    (a) When an agency receives  a  protest  from  a  bidder  or  proposer
   10  regarding  a  contracting  action  that  is related to this section, the
   11  agency shall send copies of the protest and any appeal thereof, and  any
   12  decisions  made  on  the protest or such appeal, to the division and the
   13  comptroller.
   14    (b) Whenever a contracting agency has  determined  that  a  bidder  or
   15  proposer has violated this section, or rules promulgated pursuant to its
   16  provisions,  the  agency  may  disqualify  such  bidder or proposer from
   17  competing for such contract and the agency may revoke such  bidder's  or
   18  proposer's prequalification status.
   19    (4) Contract administration.
   20    (a)  For  each contract for which participation requirements have been
   21  established under this section, at least once annually during  the  term
   22  of  such  contract, the contracting agency shall review the contractor's
   23  progress toward attainment of its utilization plan,  including  but  not
   24  limited to, by reviewing the percentage of work the contractor has actu-
   25  ally awarded to MBE, WBE, VBE and/or EBE subcontractors and the payments
   26  the contractor has made to such subcontractors.
   27    (b)  Whenever  an agency believes that a contractor or a subcontractor
   28  is not in compliance with this section, rules  promulgated  pursuant  to
   29  its  provisions  or  any  provision  of  a contract that implements this
   30  section, including, but not limited to any contractor utilization  plan,
   31  the  agency  shall  send  a written notice to the city chief procurement
   32  officer, the division and the contractor describing the alleged  noncom-
   33  pliance  and  offering  the  contractor an opportunity to be heard.  The
   34  agency shall then conduct an investigation  to  determine  whether  such
   35  contractor or subcontractor is in compliance.
   36    (c)  In  the  event  that a contractor has been found to have violated
   37  this section, rules promulgated  pursuant  to  its  provisions,  or  any
   38  provision of a contract that implements this section, including, but not
   39  limited  to  any  contractor  utilization  plan,  the contracting agency
   40  shall, after consulting with the city chief procurement officer and  the
   41  division,  determine  whether  any  of  the  following actions should be
   42  taken:
   43    (i) enter an agreement with the contractor allowing the contractor  to
   44  cure the violation;
   45    (ii)   revoke  the  contractor's  pre-qualification  to  bid  or  make
   46  proposals for future contracts;
   47    (iii) make a  finding  that  the  contractor  is  in  default  of  the
   48  contract;
   49    (iv) terminate the contract;
   50    (v) declare the contractor to be in breach of contract;
   51    (vi) withhold payment or reimbursement;
   52    (vii) determine not to renew the contract;
   53    (viii) assess actual and consequential damages;
   54    (ix)  assess  liquidated  damages  or reduction of fees, provided that
   55  liquidated damages may be based on amounts representing costs of  delays
   56  in carrying out the purposes of the program established by this section,
       S. 1655                            51
    1  or  in meeting the purposes of the contract, the costs of meeting utili-
    2  zation goals through additional procurements, the  administrative  costs
    3  of  investigation  and  enforcement,  or  other factors set forth in the
    4  contract;
    5    (x)  exercise  rights under the contract to procure goods, services or
    6  construction from  another  contractor  and  charge  the  cost  of  such
    7  contract  to  the contractor that has been found to be in noncompliance;
    8  or
    9    (xi) take any other appropriate remedy.
   10    (5) To the extent available pursuant to rules of the procurement poli-
   11  cy board, a contractor may seek resolution  of  a  dispute  regarding  a
   12  contract  related to this section. The contracting agency shall submit a
   13  copy of such submission to the division.
   14    (6) Whenever an agency has reason to believe that an MBE, WBE, VBE  or
   15  EBE  is  not  qualified  for  certification,  or  is  participating in a
   16  contract in a manner that does not serve a commercially useful function,
   17  or has violated any provision of this section, the agency  shall  notify
   18  the  commissioner  who shall determine whether the certification of such
   19  business enterprise should be revoked.
   20    (7) Statements made in any instrument submitted to an agency  pursuant
   21  to these rules shall be submitted under penalty of perjury and any false
   22  or misleading statement or omission shall be grounds for the application
   23  of  any  applicable  criminal  and/or  civil  penalties for perjury. The
   24  making of a false or fraudulent statement by an MBE, WBE, VBE or EBE  in
   25  any  instrument submitted pursuant to these rules shall, in addition, be
   26  grounds for revocation of its certification.
   27    (8) A contractor's record in implementing its  contractor  utilization
   28  plan  shall be a factor in the evaluation of its performance. Whenever a
   29  contracting agency determines that  a  contractor's  compliance  with  a
   30  contractor  utilization  plan has been unsatisfactory, the agency shall,
   31  after consultation with the city  chief  procurement  officer,  file  an
   32  advice of caution form for inclusion in VENDEX as caution data.
   33    p. Procurements by elected officials and the council.
   34    (1)  In  the  case of procurements by independently elected city offi-
   35  cials other than the mayor, where these rules provide for any action  to
   36  be  taken  by  the  director or the city chief procurement officer, such
   37  action shall instead be taken by such elected officials.
   38    (2) In the case of procurements by  the  council,  where  these  rules
   39  provide  for  any  action  to be taken by the director or the city chief
   40  procurement officer, such action shall instead be taken by  the  speaker
   41  of the council.
   42    q.  Applicability.  Agencies  shall  not  be required to apply partic-
   43  ipation requirements to the following types of contracts:
   44    (1) those subject to  federal  or  state  funding  requirements  which
   45  preclude the city from imposing the requirements of this subdivision;
   46    (2)  those  subject to federal or state law participation requirements
   47  for MBEs, WBEs, disadvantaged business enterprises, VBES, and/or EBEs;
   48    (3) contracts between agencies;
   49    (4) procurements made  through  the  United  States  general  services
   50  administration  or another federal agency, or through the New York state
   51  office of general services or another state agency, or any other govern-
   52  mental agency.
   53    (5) emergency procurements pursuant to section three  hundred  fifteen
   54  of the charter;
   55    (6)  sole  source procurements pursuant to section three hundred twen-
   56  ty-one of the charter;
       S. 1655                            52
    1    (7) contracts for human services; and
    2    (8) contracts awarded to not-for-profit organizations.
    3    r.  Comptroller.  The comptroller shall randomly examine contracts for
    4  which contractor utilization plans are established to assess  compliance
    5  with  such  plans.  All solicitations for contracts for which contractor
    6  utilization plans are to be established shall include notice  of  poten-
    7  tial comptroller examinations.
    8    S 32. Paragraphs (a), (b) and (c) of subdivision 12 of section 3.07 of
    9  the arts and cultural affairs law, as amended by chapter 255 of the laws
   10  of 1988, are amended to read as follows:
   11    (a)  All  contracts  for  design, construction, services and materials
   12  pursuant to this section of whatever nature and all documents soliciting
   13  bids or proposals therefor  shall  contain  or  make  reference  to  the
   14  following provisions:
   15    (i)  That  the  contractor  will not discriminate against employees or
   16  applicants for  employment  because  of  race,  creed,  color,  national
   17  origin,  sex,  age, disability, or marital status, and will undertake or
   18  continue existing programs of affirmative action to ensure that minority
   19  group persons [and], women AND VETERANS are afforded  equal  opportunity
   20  without  discrimination. Such programs shall include, but not be limited
   21  to,  recruitment,  employment,  job  assignment,  promotion,  upgrading,
   22  demotion,  transfer, layoff, termination, rates of pay or other forms of
   23  compensation, and  selection  for  training  and  retraining,  including
   24  apprenticeship and on-the-job training;
   25    (ii)  That  the  contractor shall request any employment agency, labor
   26  union, or authorized representative of  workers  with  which  it  has  a
   27  collective  bargaining  or other agreement or understanding and which is
   28  involved in the performance of the contract to furnish a written  state-
   29  ment  that  it  will  not  discriminate  because  of race, creed, color,
   30  national origin, sex, age, disability or  marital  status  and  it  will
   31  cooperate  in  the  implementation of the contractor's obligations here-
   32  under;
   33    (iii) That the contractor will state, in any solicitations  or  adver-
   34  tisements  for employees placed by or on behalf of the contractor in the
   35  performance of the contract,  that  all  qualified  applicants  will  be
   36  afforded  equal employment opportunity without discrimination because of
   37  race, creed, color, national origin, sex,  age,  disability  or  marital
   38  status;
   39    (iv)  That the contractor will include the provisions of subparagraphs
   40  (i) through (iii) of this paragraph in  every  subcontract  or  purchase
   41  order  in  such  a manner that such provisions will be binding upon each
   42  subcontractor or vendor as to its work in connection with  the  contract
   43  with the agency.
   44    (b)  The  council shall establish appropriate measures, procedures and
   45  guidelines to ensure that contractors and subcontractors undertake mean-
   46  ingful programs to employ and promote qualified minority  group  members
   47  [and],  women AND VETERANS.  Such procedures may require after notice in
   48  a bid solicitation, the submission of a minority [and], women AND VETER-
   49  ANS workforce utilization program prior to the award of any contract, or
   50  at any time thereafter, and may require  the  submission  of  compliance
   51  reports  relating  to  the operation and implementation of any workforce
   52  utilization program adopted hereunder. The council may take  appropriate
   53  action,  including  the  impositions  of sanctions for non-compliance to
   54  effectuate the provisions of this  subdivision  and  the  monitoring  of
   55  compliance with this subdivision.
       S. 1655                            53
    1    (c)  (i)  In  the  performance  of  projects pursuant to this section,
    2  minority [and women-owned], WOMEN AND VETERAN-OWNED business enterprises
    3  shall  be  given  the  opportunity  for  meaningful  participation.  For
    4  purposes  hereof,  minority  business enterprise shall mean any business
    5  enterprise  which  is  at least fifty-one per centum owned by, or in the
    6  case of a publicly owned business, at least fifty-one per centum of  the
    7  stock  or  other voting interest is owned by citizens or permanent resi-
    8  dent aliens who are Black, Hispanic,  Asian,  American  Indian,  Pacific
    9  Islander,  or  Alaskan  native,  and  such  ownership  interest is real,
   10  substantial and  continuing  and  has  the  authority  to  independently
   11  control the day to day business decisions of the entity for at least one
   12  year;  [and]  women-owned  business  enterprise  shall mean any business
   13  enterprise which is at least fifty-one per centum owned by,  or  in  the
   14  case  of a publicly owned business, at least fifty-one per centum of the
   15  stock to other voting interests of which is owned by citizens or  perma-
   16  nent resident aliens who are women, and such ownership interest is real,
   17  substantial  and  continuing  and  has  the  authority  to independently
   18  control the day to day business decisions of the entity for at least one
   19  year AND VETERAN-OWNED  BUSINESS  ENTERPRISE  SHALL  MEAN  ANY  BUSINESS
   20  ENTERPRISE  WHICH  IS  AT LEAST FIFTY-ONE PER CENTUM OWNED BY, OR IN THE
   21  CASE OF A PUBLICLY OWNED BUSINESS, AT LEAST FIFTY-ONE PERCENTUM  OF  THE
   22  STOCK  TO OTHER VOTING INTERESTS OF WHICH IS OWNED BY CITIZENS OR PERMA-
   23  NENT RESIDENT ALIENS WHO ARE VETERANS, AND SUCH  OWNERSHIP  INTEREST  IS
   24  REAL,  SUBSTANTIAL AND CONTINUING AND HAS THE AUTHORITY TO INDEPENDENTLY
   25  CONTROL THE DAY TO DAY BUSINESS DECISIONS OF THE ENTITY FOR AT LEAST ONE
   26  YEAR.
   27    The provisions of this subdivision shall not be construed to limit the
   28  ability of any minority business enterprise to bid on any contract.
   29    (ii) In order to implement the requirements  and  objectives  of  this
   30  section,  the  council  shall request, as appropriate, the assistance of
   31  other  state  agencies  to  monitor  the  contractors'  compliance  with
   32  provisions  hereof,  provide assistance in obtaining competing qualified
   33  minority [and women-owned], WOMEN AND VETERAN-OWNED business enterprises
   34  to perform contracts proposed to be awarded, and take other  appropriate
   35  measures  to improve the access of minority [and women-owned], WOMEN AND
   36  VETERAN-OWNED business enterprises to these contracts.
   37    S 33. Subdivision 33 of section 454 of the banking law, as amended  by
   38  chapter 679 of the laws of 2003, is amended to read as follows:
   39    33. Notwithstanding any other provision of this article to the contra-
   40  ry,  to  participate  in  the  minority - [and women-owned], WOMEN - AND
   41  VETERAN-OWNED business development and lending program[, as  established
   42  in section 16-c of section 1 of chapter 174 of the laws of 1968, consti-
   43  tuting  the  urban development corporation act,] to the extent that such
   44  program allows participation by credit unions.
   45    S 34. Section 52-0113 of the environmental conservation law, as  added
   46  by chapter 512 of the laws of 1986, is amended to read as follows:
   47  S 52-0113. Minority  [and women-owned], WOMEN AND VETERAN-OWNED business
   48               enterprise program.
   49    1. a. In the performance of projects pursuant to this article minority
   50  [and women-owned], WOMEN AND VETERAN-OWNED business enterprises shall be
   51  given the opportunity for meaningful participation.  The  department  or
   52  the  office shall establish measures and procedures to secure meaningful
   53  participation and identify those contracts and items of work  for  which
   54  minority [and women-owned], WOMEN AND VETERAN-OWNED business enterprises
   55  may  best  bid  to  actively  and affirmatively promote and assist their
   56  participation in the projects, so as to facilitate the award of  a  fair
       S. 1655                            54
    1  share  of contracts to such enterprises; provided, however, that nothing
    2  in this article shall be construed to limit the ability of  the  depart-
    3  ment  or  office  to  assure  that qualified minority [and women-owned],
    4  WOMEN  AND  VETERAN-OWNED  business  enterprises  may participate in the
    5  program. For purposes hereof, minority business  enterprise  shall  mean
    6  any business enterprise which is at least fifty-one per centum owned by,
    7  or  in  the  case  of  a publicly owned business, at least fifty-one per
    8  centum of the stock of which is owned by citizens or permanent  resident
    9  aliens who are Black, Hispanic, Asian or American Indian, Pacific Islan-
   10  der  or Alaskan natives and such ownership interest is real, substantial
   11  and continuing and have the authority to independently control  the  day
   12  to  day  business  decisions  of the entity for at least one year; [and]
   13  women-owned business enterprise shall mean any business enterprise which
   14  is at least fifty-one per centum owned by, or in the case of a  publicly
   15  owned  business,  at least fifty-one per centum of the stock of which is
   16  owned by citizens or permanent resident aliens who are women,  and  such
   17  ownership  interest  is  real,  substantial  and continuing and have the
   18  authority to independently control the day to day business decisions  of
   19  the  entity  for at least one year AND VETERAN-OWNED BUSINESS ENTERPRISE
   20  SHALL MEAN ANY BUSINESS ENTERPRISE  WHICH  IS  AT  LEAST  FIFTY-ONE  PER
   21  CENTUM  OWNED  BY, OR IN THE CASE OF A PUBLICLY OWNED BUSINESS, AT LEAST
   22  FIFTY-ONE PER CENTUM OF THE STOCK OF  WHICH  IS  OWNED  BY  CITIZENS  OR
   23  PERMANENT  RESIDENT ALIENS WHO ARE VETERANS, AND SUCH OWNERSHIP INTEREST
   24  IS REAL, SUBSTANTIAL AND CONTINUING AND HAVE THE AUTHORITY TO  INDEPEND-
   25  ENTLY  CONTROL  THE  DAY  TO DAY BUSINESS DECISIONS OF THE ENTITY FOR AT
   26  LEAST ONE YEAR.
   27    The provisions of this paragraph shall not be construed to  limit  the
   28  ability  of  any minority [or women-owned], WOMEN OR VETERAN-OWNED busi-
   29  ness enterprise to bid on any contract.
   30    b. In the implementation of this section, the department or the office
   31  shall consider compliance by any contractor with the requirements of any
   32  federal, state, or local  law  concerning  minority  [and  women-owned],
   33  WOMEN  AND  VETERAN-OWNED business enterprises, which may effectuate the
   34  requirements of this section. If the department or the office determines
   35  that by virtue of the imposition of the requirements of any such law, in
   36  respect to capital project contracts, the provisions  thereof  duplicate
   37  or conflict with such law, the department may waive the applicability of
   38  this section to the extent of such duplication or conflict.
   39    c.  Nothing  in  this  section shall be deemed to require that overall
   40  state and  federal  requirements  for  participation  of  minority  [and
   41  women-owned],  WOMEN  AND VETERAN-OWNED business enterprises in programs
   42  authorized under this article be applied without regard to local circum-
   43  stances to all projects or in all communities.
   44    2. In order to implement  the  requirements  and  objectives  of  this
   45  section,  the  department  and  the office shall establish procedures to
   46  monitor the contractors'  compliance  with  provisions  hereof,  provide
   47  assistance  in obtaining competing qualified minority [and women-owned],
   48  WOMEN  AND  VETERAN-OWNED  business  enterprises  to  perform  contracts
   49  proposed  to  be awarded, and take other appropriate measures to improve
   50  the access of minority [and women-owned], WOMEN AND VETERAN-OWNED  busi-
   51  ness enterprises to these contracts.
   52    S  35. Section 957 of the general municipal law is amended by adding a
   53  new subdivision (u) to read as follows:
   54     (U) "VETERAN-OWNED BUSINESS ENTERPRISE" SHALL HAVE THE  SAME  MEANING
   55  AS PROVIDED IN SECTION THREE HUNDRED TEN OF THE EXECUTIVE LAW.
       S. 1655                            55
    1    S  36.  Subdivisions  (a),  (g)  and (t) of section 959 of the general
    2  municipal law, subdivision (a) as amended by section  2  of  part  R  of
    3  chapter  57  of the laws of 2010 and subdivisions (g) and (t) as amended
    4  by section 3 of part S1 of chapter 57 of the laws of 2009,  are  amended
    5  to read as follows:
    6    (a)  After  consultation  with the director of the budget, the commis-
    7  sioner of labor, and the commissioner of taxation and  finance,  promul-
    8  gate  regulations, which, notwithstanding any provisions to the contrary
    9  in the state administrative procedure act, may be adopted on an emergen-
   10  cy basis, governing (i) criteria of eligibility for empire  zone  desig-
   11  nation,  provided, however, that such criteria be approved by the direc-
   12  tor of the budget; (ii) the application process; (iii) the certification
   13  by the commissioner as to the eligibility of  business  enterprises  for
   14  benefits  referred to in section nine hundred sixty-six of this article,
   15  which shall be governed by criteria including, but not limited  to:  (1)
   16  whether  the  business enterprise, if certified, is reasonably likely to
   17  create new employment or prevent a loss of employment in the  zone,  (2)
   18  whether  such  new  employment opportunities will be for individuals who
   19  will perform a substantial part of their employment  activities  in  the
   20  zone,  (3) whether certification will have the undesired effect of caus-
   21  ing individuals to transfer from existing employment with another  busi-
   22  ness  enterprise  to  similar employment with the business enterprise so
   23  certified, and transferring existing employment from one or  more  other
   24  municipalities, towns or villages in the state, or transferring existing
   25  employment  from  one  or more other businesses in the zone, (4) whether
   26  such enterprise is likely to enhance the economic climate of  the  zone,
   27  (5)  whether  the  commissioner  of labor establishes that such business
   28  enterprise, during the three years preceding the submission of an appli-
   29  cation for certification, has engaged in a substantial  violation  or  a
   30  pattern of violations of laws regulating unemployment insurance, workers
   31  compensation,  public  work,  child labor, employment of minorities [and
   32  women], WOMEN AND VETERANS, safety and health, or  other  laws  for  the
   33  protection  of  workers as determined by final judgment of a judicial or
   34  administrative proceeding; (6) whether such business meets the  require-
   35  ments  of  the  cost benefit analysis as established in paragraph (p) of
   36  section nine hundred fifty-seven of this article, and (7) if the commis-
   37  sioner of labor establishes that the business enterprise has been  found
   38  in  a criminal proceeding to have violated, in the previous three years,
   39  any of the laws referred to in subparagraph five of  this  paragraph  or
   40  regulations  promulgated  pursuant  to  such laws, the conditions of any
   41  permit issued thereunder,  or  similar  statute,  regulation,  order  or
   42  permit  condition  of  any other government agency, foreign or domestic,
   43  such business shall not be certified; provided, however, that a business
   44  enterprise that has shifted its operations, or  some  portions  thereof,
   45  from  an  area within New York state not designated as an empire zone or
   46  zone equivalent area to an area so designated shall not be certified  to
   47  receive such benefits except where such shift is entirely within a muni-
   48  cipality and has been approved by the local governing body of such muni-
   49  cipality  or in situations where it has been established, after a public
   50  hearing, that extraordinary circumstances exist which warrant the  relo-
   51  cation  of  a  business, in whole or part, into an empire zone or a zone
   52  equivalent area from another  municipality  and  the  municipality  from
   53  which  the  business is relocating approves of such relocation; or where
   54  such shift in operations is from a business incubator facility  operated
   55  by  a municipality or by a public or private not-for-profit entity which
   56  provides space and business support services to newly established firms;
       S. 1655                            56
    1  and (iv) the decertification by the commissioner, upon  the  recommenda-
    2  tion  of the commissioner of labor, so as to revoke the certification of
    3  business enterprises for benefits referred to in  section  nine  hundred
    4  sixty-six  of this article with respect to an empire zone or zone equiv-
    5  alent area upon a finding that the  business  enterprise  has  committed
    6  substantial  violations  of laws for the protection of workers including
    7  all federal, state and local labor laws, rules or regulations;  and  (v)
    8  the  decertification  by  the  commissioner  so as to revoke the certif-
    9  ication of business enterprises for benefits referred to in section nine
   10  hundred sixty-six of this article with respect to an empire zone or zone
   11  equivalent area upon a finding of any one  of  the  following:  (1)  the
   12  business  enterprise  made  material  misrepresentations  of fact on its
   13  application for certification or in any of its business annual  reports,
   14  or  the  business enterprise failed to disclose facts in its application
   15  for certification that  would  constitute  grounds  for  not  issuing  a
   16  certification;  (2)  the  business  enterprise  has failed to construct,
   17  expand, rehabilitate or operate or invest in its facility  substantially
   18  in  accordance with the representations contained in its application for
   19  certification; (3) the business enterprise  has  failed  to  create  new
   20  employment  or  prevent  a loss of employment in the empire zone or zone
   21  equivalent area; (4)  where  applicable,  the  business  enterprise  has
   22  failed  to  submit  an  annual  report after it has applied for zone tax
   23  benefits or program assistance based on  new  hires  or  investments  or
   24  failed  to  submit  other  information when due; (5) the business enter-
   25  prise, if first certified pursuant to this article prior  to  the  first
   26  day  of  August,  two  thousand two, caused individuals to transfer from
   27  existing employment with another business enterprise with similar owner-
   28  ship and located in New York state to similar employment with the certi-
   29  fied business enterprise  or  if  the  enterprise  acquired,  purchased,
   30  leased,  or  had  transferred to it real property previously owned by an
   31  entity with similar ownership, regardless of form  of  incorporation  or
   32  organization; (6) the business enterprise has failed to provide economic
   33  returns  to the state in the form of total remuneration to its employees
   34  (i.e. wages and benefits) and investments in  its  facility  greater  in
   35  value  to the tax benefits the business enterprise used and had refunded
   36  to it; or (7) the business enterprise has changed ownership or moved its
   37  operations out of the empire zone; said regulations shall  provide  that
   38  whenever  any  business  enterprise  is  decertified  with respect to an
   39  empire zone: (A) the date determined to be the earliest event constitut-
   40  ing grounds for revoking certification shall be the  effective  date  of
   41  decertification;  (B)  its certified single enterprise, if any, may also
   42  be decertified; and (C) the commissioner shall notify  the  commissioner
   43  of taxation and finance that such decertification has occurred, and such
   44  notification  should  include the effective date of such decertification
   45  and the zone or zone  equivalent  area  to  which  such  decertification
   46  applies; with respect to any business enterprise whose certification has
   47  been  revoked  pursuant  to  subparagraph five or six of this paragraph,
   48  that revocation (I) will be effective for a taxable year beginning on or
   49  after January first, two thousand eight and before  January  first,  two
   50  thousand  nine  and  for  subsequent  taxable years, unless the business
   51  enterprise is subsequently re-certified pursuant to part 11 of  title  5
   52  of the New York state codes, rules and regulations for a business enter-
   53  prise  for which a review is required to be conducted pursuant to subdi-
   54  vision (w) of this section in calendar year two thousand nine, and  (II)
   55  thereafter  will  be  effective  for  the  taxable year during which the
   56  commissioner makes his or her determination (prior  to  any  appeal)  to
       S. 1655                            57
    1  revoke  the  certification  of  a business enterprise and for subsequent
    2  taxable years;
    3    (g)  Coordinate,  with  the local empire zone administrative board and
    4  state agencies and authorities, the provision  of  business  development
    5  programs  and  services  for  each empire zone in order to stimulate the
    6  creation and development of new small businesses,  including  new  small
    7  minority-owned  [and],  women-owned  AND  VETERAN-OWNED  business enter-
    8  prises, and may request and shall receive from any department, division,
    9  board, bureau, commission, agency or public authority of the state  such
   10  assistance as may be necessary;
   11    (t)  Coordinate with the urban development corporation the creation of
   12  a special category of assistance for zones within the regional  economic
   13  development  partnership  program,  which  will  make available economic
   14  development assistance grants for zone programs and activities,  includ-
   15  ing,  but  not  limited  to,  planning,  service coordination, and local
   16  institutional capacity building for human resource development necessary
   17  for economic revitalization; planning and development of small  business
   18  incubators; job placement and preparedness programs for zones residents;
   19  education and training programs for zone businesses; child care programs
   20  and  projects  supportive  of business development; technical assistance
   21  for minority [and women-owned], WOMEN AND VETERAN-OWNED business  devel-
   22  opment;  training  for  zone officials; business and tourism development
   23  and marketing programs; and other innovative programs and activities  in
   24  support of economic and community development within the zones;
   25    S  37. Paragraphs (iii) and (xii) of subdivision (a) of section 963 of
   26  the general municipal law, as amended by chapter 708 of the laws of 1993
   27  and further amended by section 15 of part GG of chapter 63 of  the  laws
   28  of 2000, are amended to read as follows:
   29    (iii)  undertake efforts to ensure meaningful participation by minori-
   30  ty-owned [and women-owned], WOMEN AND VETERAN-OWNED business enterprises
   31  in empire zone activities;
   32    (xii) provide within the zone, or contract  with  a  new  or  existing
   33  community-based  local  development  corporation  or  entity to provide,
   34  strategic economic development planning  for  the  zone,  marketing  and
   35  promotion of the zone, assistance to companies in applying for available
   36  benefits, preparation of applications for financing assistance and other
   37  technical assistance services; coordination of the delivery of state and
   38  local  programs  within  the zones; and operation of such other economic
   39  development assistance programs in furtherance of the empire zone devel-
   40  opment plan as may be appropriate. Provided, however, within the  amount
   41  appropriated  therefor  and allocated by the director of the budget, the
   42  commissioner, through annual administrative  contracts,  shall,  to  the
   43  maximum  extent  feasible,  make  equally  available  financial support,
   44  through contracts or other means,  to  assist  with  the  administrative
   45  expenses  of  the  local  zone  administrative bodies or community-based
   46  development organizations. No funds shall be  made  available  for  this
   47  purpose  unless the amount to be provided has been matched by private or
   48  governmental sources, other than state  sources,  in  amounts  at  least
   49  equalling that to be provided by the state. Such matching funds shall be
   50  earmarked  and used exclusively for the local administration of the zone
   51  program or for activities of the zone program. At least fifty percent of
   52  such matching funds shall be in cash, provided that the commissioner may
   53  waive this requirement for communities with populations  of  twenty-five
   54  thousand  or  less, and provided, further, that any amounts appropriated
   55  for minority [and women-owned], WOMEN AND VETERAN-OWNED business  devel-
       S. 1655                            58
    1  opment  within the zones shall be distributed by the commissioner pursu-
    2  ant to a competitive proposal solicitation process.
    3    S  38. Subdivision (c) of section 964 of the general municipal law, as
    4  amended by chapter 708 of the  laws  of  1993  and  further  amended  by
    5  section  15  of part GG of chapter 63 of the laws of 2000, is amended to
    6  read as follows:
    7    (c) Each empire zone capital corporation shall, to the maximum  extent
    8  feasible, undertake measures and procedures to ensure meaningful partic-
    9  ipation  by minority-owned [and], women-owned AND VETERAN-OWNED business
   10  enterprises in the activities and investments of such corporation.  Each
   11  such  corporation  shall  additionally,  to the maximum extent feasible,
   12  undertake measures and procedures to ensure meaningful participation  by
   13  locally  owned business enterprises in the activities and investments of
   14  such corporation.
   15    S 39. Subparagraph 7 of paragraph f of subdivision 3 of section  970-r
   16  of the general municipal law, as amended by section 1 of part F of chap-
   17  ter 577 of the laws of 2004, is amended to read as follows:
   18    (7)  the  financial  commitments the applicant will make to the brown-
   19  field opportunity area for activities including,  but  not  limited  to,
   20  marketing  of the area for business development, human resource services
   21  for residents and businesses in the  brownfield  opportunity  area,  and
   22  services  for  small [and], minority [and women-owned], WOMEN AND VETER-
   23  AN-OWNED businesses.
   24    S 40. Section 3 of section 1 of chapter  174  of  the  laws  of  1968,
   25  constituting  the  New  York state urban development corporation act, is
   26  amended by adding a new subdivision 31 to read as follows:
   27    (31) "VETERAN BUSINESS ENTERPRISE". A BUSINESS ENTERPRISE WHICH IS  AT
   28  LEAST FIFTY-ONE PERCENT OWNED, OR IN THE CASE OF A PUBLICITY-OWNED BUSI-
   29  NESS  AT  LEAST  FIFTY-ONE  PERCENT  OF THE COMMON STOCK OR OTHER VOTING
   30  INTERESTS OF WHICH IS OWNED, BY  UNITED  STATES  CITIZENS  OR  PERMANENT
   31  RESIDENT  ALIENS  WHO ARE VETERANS, REGARDLESS OF RACE OR ETHNICITY, AND
   32  SUCH OWNERSHIP INTEREST IS REAL, SUBSTANTIAL  AND  CONTINUING  AND  SUCH
   33  VETERANS  HAVE  AND  EXERCISE THE AUTHORITY TO INDEPENDENTLY CONTROL THE
   34  DAY TO DAY BUSINESS DECISIONS OF THE ENTERPRISES.
   35    S 41. The second undesignated paragraph of subdivision 1 of section 12
   36  of section 1 of chapter 174 of the laws of 1968,  constituting  the  New
   37  York  state  urban development corporation act, as added by section 1 of
   38  part EE of chapter 60 of the  laws  of  2011,  is  amended  to  read  as
   39  follows:
   40    The empire state new market corporation, a community development enti-
   41  ty  certified  by the United States Department of the Treasury Community
   42  Development Financial Institutions Fund and a  corporate  subsidiary  of
   43  the  corporation,  by resolution, may direct any of its directors, offi-
   44  cers, or employees to  form  limited  liability  companies  pursuant  to
   45  section 203 of the limited liability company law for the sole purpose of
   46  certifying  and  performing as community development entities that would
   47  be eligible to receive an  allocation  of  tax  credits  under  the  new
   48  markets  tax credit program.  No limited liability company formed pursu-
   49  ant to this section shall merge or consolidate.  Each limited  liability
   50  company  shall act solely in relation to projects selected by the corpo-
   51  ration, or a corporate  subsidiary  of  the  corporation.  Each  limited
   52  liability  company  shall  be  empowered to receive an allocation of tax
   53  credits from a federal allocation to the  corporation,  or  a  corporate
   54  subsidiary  of the corporation, under the new markets tax credit program
   55  and to do any other act or things incidental to or  connected  with  the
   56  foregoing  purposes  or  in advancement thereof.   The corporation, or a
       S. 1655                            59
    1  corporate subsidiary of the corporation, shall be the managing member of
    2  each limited liability company created by the corporation. In  determin-
    3  ing  which projects to allocate tax credits to under the new markets tax
    4  credit  program, the corporation shall prioritize projects demonstrating
    5  one or more of the following goals or benefits:  (a) creating or retain-
    6  ing jobs in low income communities;  (b)  increasing  the  provision  of
    7  goods and services for low income community residents which would other-
    8  wise  not  be  available  at  the  same price or quality; (c) supporting
    9  minority [and women-owned], WOMEN AND VETERAN-OWNED or controlled  busi-
   10  nesses;  (d)  expanding  housing  opportunities for low income community
   11  persons; (e) supporting environmentally sustainable  outcomes;  and  (f)
   12  supporting efforts that otherwise benefit low income community residents
   13  by  leveraging  further  investment  in  their  communities.    Provided
   14  further, such projects shall  be  limited  to  projects  that  would  be
   15  authorized  under this act and shall be subject to approval by the board
   16  of the urban development corporation.   The  corporation  shall  publish
   17  information regarding the process used to select projects to receive the
   18  new markets tax credits and provide a copy to the temporary president of
   19  the  senate,  the  speaker  of  the assembly, the minority leader of the
   20  senate and the minority leader of the assembly.  The  corporation  shall
   21  strive for regional diversity in the allocation of tax credits under the
   22  new  markets  tax credit program.   The corporation shall include in the
   23  information required to be submitted annually  in  accordance  with  the
   24  provisions  of  subdivision  1 of section 2800 of the public authorities
   25  law information regarding assistance provided by it  or  its  subsidiary
   26  under  the  new  markets tax credit program, and shall provide financial
   27  information with respect to any subsidiary administering the program  in
   28  the  corporation's  financial  reports,  including its certified audited
   29  financial statements.
   30    S 42. Paragraph (c) of subdivision 9 of section 16-a of section  1  of
   31  chapter  174  of the laws of 1968, constituting the New York state urban
   32  development corporation act, as amended by chapter 477 of  the  laws  of
   33  2002, is amended to read as follows:
   34    (c)  of  minority [or women-owned], WOMEN OR VETERAN-OWNED enterprises
   35  or enterprises owned by dislocated workers, such workers as  defined  in
   36  the Workforce Investment Act (P.L. 105-220); and
   37    S  43.  Section  16-c of section 1 of chapter 174 of the laws of 1968,
   38  constituting the New York state urban development  corporation  act,  as
   39  added  by  chapter  169 of the laws of 1994, subdivision 1 as amended by
   40  section 1 of part AA of chapter 55 of the laws  of  2014,  and  subpara-
   41  graphs (i) and (ii) of paragraph (a) of subdivision 2 as further amended
   42  by  section  15 of part GG of chapter 63 of the laws of 2000, is amended
   43  to read as follows:
   44    S 16-c. Minority- [and women-owned], WOMEN- AND VETERAN-OWNED business
   45  development and lending program.
   46    (1) Minority- [and women-owned],  WOMEN-  AND  VETERAN-OWNED  business
   47  development  and lending program.  (a) There is hereby created a minori-
   48  ty- [and women-owned], WOMEN- AND VETERAN-OWNED business development and
   49  lending program for the purpose of  providing  financial  and  technical
   50  assistance  to  minority  [and  women-entrepreneurs],  WOMEN AND VETERAN
   51  ENTREPRENEURS.
   52    (b) For the purposes of this section  the  following  words  or  terms
   53  shall mean as follows:
   54    (i)  "minority-owned business enterprise" or "minority-owned business"
   55  shall mean the same as "minority  business  enterprise"  as  defined  in
       S. 1655                            60
    1  subdivision three of section two hundred ten of the economic development
    2  law.
    3    (ii) "women-owned business enterprise" or "women-owned business" shall
    4  mean  the same as "women-owned business enterprise" as defined in subdi-
    5  vision five of section two hundred ten of the economic development law.
    6    (iii) "VETERAN-OWNED BUSINESS ENTERPRISE" OR "VETERAN-OWNED  BUSINESS"
    7  SHALL MEAN THE SAME AS "VETERAN-OWNED BUSINESS ENTERPRISE" AS DEFINED IN
    8  SUBDIVISION SEVEN OF SECTION TWO HUNDRED TEN OF THE ECONOMIC DEVELOPMENT
    9  LAW.
   10    (IV) "incubator" shall mean a facility providing low-cost space, tech-
   11  nical  assistance  and  support services, including, but not limited to,
   12  central services shared by tenants of the facility,  to  minority-  [and
   13  women-owned], WOMEN- AND VETERAN-OWNED business enterprises.
   14    (c) Assistance shall not be provided under this section for:
   15    (i)  the  purchase  or rehabilitation of real property for speculative
   16  purposes;
   17    (ii) payment of any tax or employee benefit arrearage;
   18    (iii)   residential   construction,    renovation    or    development
   19  construction, except for assistance to minority [and], women AND VETERAN
   20  contractors under subdivision four of this section;
   21    (iv)  educational institutions and proprietary education firms, except
   22  licensed child care facilities;
   23    (v) hospitals or residential health care facilities;
   24    (vi) overnight lodging facilities;
   25    (vii) refinancing of debt or  equity  invested  in  an  enterprise  or
   26  project.
   27    (d) The corporation is authorized to:
   28    (i)  establish  programs  in  conjunction  with locally, and community
   29  based entities to decentralize lending for  small  loans  and  loans  to
   30  start  up  minority-  [and  women-owned], WOMEN- AND VETERAN-OWNED busi-
   31  nesses;
   32    (ii) establish a comprehensive program for minority [and],  women  AND
   33  VETERAN contractors, which may include assistance through loans, bonding
   34  assistance and technical assistance;
   35    (iii)  establish  a  program to provide loans to established minority-
   36  [and women-owned], WOMEN- AND VETERAN-OWNED businesses and for minority-
   37  [and women-owned], WOMEN- AND VETERAN-OWNED businesses, including  loans
   38  to such businesses seeking to acquire or expand a franchise;
   39    (iv) provide loan guarantees to financial institutions and make linked
   40  deposits  into  federally  and  state  chartered  credit  unions for the
   41  purpose of encouraging private financial institutions to make  loans  to
   42  minority- [and women-owned], WOMEN- AND VETERAN-OWNED businesses;
   43    (v)  establish a program to create incubators to assist small and high
   44  risk minority- [and women-owned], WOMEN- AND VETERAN-OWNED businesses to
   45  grow and prosper;
   46    (vi) promote equity investment in minority- [and women-owned],  WOMEN-
   47  AND VETERAN-OWNED businesses; [and]
   48    (vii)  establish a comprehensive technical assistance program in coop-
   49  eration with the department of economic development to assist  minority-
   50  [and  women-owned],  WOMEN-  AND  VETERAN-OWNED businesses and potential
   51  [minority and women-entrepreneurs] MINORITY-, WOMEN- AND  VETERAN-ENTRE-
   52  PRENEURS; and
   53    (viii) notwithstanding any provision of law to the contrary, establish
   54  a minority- [and women-owned], WOMEN- AND VETERAN-OWNED business invest-
   55  ment  fund  to provide critical financial support to foster the develop-
   56  ment of new and emerging ideas and products  of  minority-  [and  women-
       S. 1655                            61
    1  owned],  WOMEN-  AND  VETERAN-OWNED  business  enterprises as well as to
    2  promote the long-term financial performance and success of  early  stage
    3  enterprises   that   are   minority-   [and   women-owned],  WOMEN-  AND
    4  VETERAN-OWNED  start-ups.  The  selection  of  an eligible applicant and
    5  beneficiary companies for the minority- [and  women-owned],  WOMEN-  AND
    6  VETERAN-OWNED  business investment fund shall be selected by the process
    7  established  pursuant  to  subdivisions  two  through  four  of  section
    8  sixteen-u   of   this   act.  Minority-  [or  women-owned],  WOMEN-  AND
    9  VETERAN-OWNED business enterprises who  participate  in  such  minority-
   10  [and  women-owned],  WOMEN-  AND  VETERAN-OWNED business investment fund
   11  under this subdivision shall not be precluded from  qualifying  for  any
   12  other assistance, grant or loan made available from the state.
   13    (2)  Minority  [and], women AND VETERAN revolving loan trust fund. For
   14  the purpose of establishing programs in  conjunction  with  locally  and
   15  community  based  entities  to  decentralize lending for small loans and
   16  loans to start up minority- [and women-owned], WOMEN- AND  VETERAN-OWNED
   17  businesses,  the  corporation  shall establish minority [and], women AND
   18  VETERAN revolving loan trust fund accounts  and  related  administrative
   19  expenses trust fund accounts.
   20    (a)  Each  minority [and], women AND VETERAN revolving loan trust fund
   21  account shall be administered by one or more of the following  types  of
   22  entities  that  provide services to community businesses and have as one
   23  of their primary purposes the provision of services  and  assistance  to
   24  minority- [and women-owned], WOMEN- AND VETERAN-OWNED businesses:
   25    (i)  empire  zone capital corporations established pursuant to section
   26  nine hundred sixty-four of the general municipal law;
   27    (ii) community-based  local  development  corporations  or  industrial
   28  development  agencies  that serve a municipality in which an empire zone
   29  has been established pursuant  to  article  eighteen-B  of  the  general
   30  municipal  law and have as their primary purpose assistance to minority-
   31  [and women-owned], WOMEN- AND VETERAN-OWNED businesses located or to  be
   32  located in such empire zone; or
   33    (iii)  local and community development corporations, industrial devel-
   34  opment agencies, or other not-for-profit entities, representative of the
   35  community.
   36    (b) To be eligible to administer a minority [and], women  AND  VETERAN
   37  revolving  loan trust fund account, the entity must also: (i) have staff
   38  with sufficient expertise to analyze applications for financial  assist-
   39  ance,  to  regularly  monitor  financial  assistance  to clients, and to
   40  provide management or technical assistance to  clients;  and  (ii)  have
   41  established a loan committee composed of six or more persons experienced
   42  in  business  management,  commercial  lending  or in the operation of a
   43  for-profit business, at least one-half of whom shall be  experienced  in
   44  commercial  lending,  at  least [one-third] ONE-QUARTER of whom shall be
   45  minority persons and at least [one-third] ONE-QUARTER of whom  shall  be
   46  women  AND  AT  LEAST  ONE-QUARTER OF WHOM SHALL BE VETERANS.  Such loan
   47  committee shall review every application, determine the  feasibility  of
   48  the  proposed  project  and the likelihood of repayment of the requested
   49  financing and shall recommend to the governing body of the  entity  such
   50  action  on  the application as the loan committee deems appropriate. The
   51  corporation shall identify entities eligible to administer minority  and
   52  women revolving loan trust fund accounts through a competitive statewide
   53  request for proposal process.
   54    (c)  Any  entity  selected  to  administer a minority [and], women AND
   55  VETERAN revolving loan trust fund account  shall  be  eligible  to  draw
   56  funds  from  the  account  as  needed  to provide the following types of
       S. 1655                            62
    1  financial assistance to minority- [and women-owned], WOMEN-  AND  VETER-
    2  AN-OWNED  businesses  upon certification to and acceptance by the corpo-
    3  ration that such assistance complies with rules and regulations  promul-
    4  gated  by  the corporation: (i) working capital loans, provided that the
    5  amount of the loan does not exceed thirty-five thousand dollars and  the
    6  term  of  the  loan  does  not exceed five years; and (ii) loans for the
    7  acquisition and/or improvement of real property and for the  acquisition
    8  of machinery and equipment provided that the amount of the loan does not
    9  exceed  fifty  thousand dollars and the term of the loan does not exceed
   10  the useful life of the equipment or property.
   11    (d) (i) Notwithstanding any provision of  law  to  the  contrary,  the
   12  corporation  may establish an administrative expenses trust fund account
   13  for the benefit of each entity selected to administer a minority  [and],
   14  women AND VETERAN revolving loan trust fund account. The initial deposit
   15  of  funds  to  an administrative expenses trust fund account shall be an
   16  amount determined by the corporation but shall  not  exceed  twenty-five
   17  thousand dollars.
   18    (ii)  An  entity  selected  to  administer a minority [and], women AND
   19  VETERAN revolving loan trust fund account  may  use  the  funds  in  the
   20  administrative  expenses  trust fund account for costs incurred by it in
   21  the start up and administration  of  the  financial  assistance  program
   22  authorized pursuant to this subdivision.
   23    (iii)  The corporation shall deposit into each administrative expenses
   24  trust fund account:
   25    (A) all income earned from the moneys on deposit in the  corresponding
   26  minority  [and],  women  AND  VETERAN  revolving loan trust fund account
   27  during the first year of the entity's administration  of  said  account;
   28  and
   29    (B)  beginning with its second year in administering a minority [and],
   30  women AND VETERAN revolving loan trust fund account, said amounts may be
   31  used for costs incurred by the  entity  in  administering  the  minority
   32  [and], women AND VETERAN revolving loan trust fund account; and
   33    (C) repayments of interest on loans made from the corresponding minor-
   34  ity [and], women AND VETERAN revolving loan trust fund account.
   35    (iv)  Funds from the administrative expenses trust fund account may be
   36  used for costs incurred at any time by an administering  entity  in  its
   37  administration  of  a  minority  [and], women AND VETERAN revolving loan
   38  trust fund account pursuant to this section.
   39    (v) Funds deposited in an administrative expenses trust  fund  account
   40  shall be disbursed by the corporation to the entity that administers the
   41  corresponding  minority  [and],  women  AND VETERAN revolving loan trust
   42  fund account on a periodic basis and shall be expended by the entity  in
   43  accordance  with  an  annual budget and any updates of same, approved by
   44  the corporation.
   45    (e) Any entity selected to administer  a  minority  [and],  women  AND
   46  VETERAN  revolving  loan trust fund account shall pay to the corporation
   47  for deposit any repayments received in connection with financial assist-
   48  ance provided from its account. Payments consisting of the repayment  of
   49  the  principal  amount  of  a loan shall be deposited by the corporation
   50  into the minority [and], women AND VETERAN  revolving  loan  trust  fund
   51  account  from which the loan was made. The interest earned by the corpo-
   52  ration from the investment of moneys in each minority [and],  women  AND
   53  VETERAN  revolving  loan  trust fund account during and after the second
   54  year of a selected entity's administration  of  said  account  shall  be
   55  deposited  by  the  corporation  into  the corresponding minority [and],
   56  women AND VETERAN revolving loan trust fund account and used to  provide
       S. 1655                            63
    1  the  financial  assistance  to  minority-  [and women-owned], WOMEN- AND
    2  VETERAN-OWNED businesses as authorized pursuant to this section.
    3    (f)  The  provisions of subdivisions eight, nine, and fourteen through
    4  nineteen of section sixteen-a of this act  pertaining  to  the  regional
    5  revolving  loan  trust  fund  shall  also  be applicable to the minority
    6  [and], women AND VETERAN revolving loan trust fund, provided that: where
    7  the term "regional corporation" appears therein it shall be  interpreted
    8  to  mean  an  entity  selected to administer a minority [and], women AND
    9  VETERAN revolving loan trust fund account, and "regional revolving loans
   10  trust fund" shall mean a minority [and],  women  AND  VETERAN  revolving
   11  loan  trust  fund,  and where the term "this section" appears therein it
   12  shall mean this section sixteen-c.
   13    (g) The corporation may provide funds from an  appropriation  for  the
   14  minority-  [and women-owned], WOMEN- AND VETERAN-OWNED business develop-
   15  ment and lending program to any entity selected to administer a minority
   16  [and], women AND VETERAN revolving loan trust fund for the  purposes  of
   17  recapitalizing  such  account and the entity's corresponding administra-
   18  tive expenses trust fund account following an evaluation by  the  corpo-
   19  ration of the entity's administration and use of such accounts.
   20    (h)  Notwithstanding  any provision of law to the contrary, the corpo-
   21  ration shall establish a minority [and],  women  AND  VETERAN  revolving
   22  loan  trust  fund to pay into such fund any moneys made available to the
   23  corporation for such fund from any source, including moneys appropriated
   24  by the state and any income earned by, or increment to, the account  due
   25  to  the investment thereof, or any repayment of moneys advanced from the
   26  fund.  The corporation shall not commingle the moneys of such fund  with
   27  any  moneys  held  in  trust  by  the corporation, except for investment
   28  purposes.
   29    (3) Micro-loan program. (a)  For  the  purposes  of  this  subdivision
   30  "micro-loan"  shall  mean  a  loan  of under seven thousand five hundred
   31  dollars.
   32    (b) The corporation shall, pursuant to requests for  proposals,  enter
   33  into  agreements  for  other  types  of locally, community or regionally
   34  administered loan programs than those set forth in  subdivision  two  of
   35  this  section, including micro-loan programs to be administered by local
   36  development corporations, local  industrial  development  organizations,
   37  municipalities  and not-for-profit organizations, to provide micro-loans
   38  to small and high risk minority- [and women-owned], WOMEN- AND  VETERAN-
   39  OWNED businesses located within their respective service areas, provided
   40  that  loan review committees are established by such administering enti-
   41  ty, including women, VETERANS and minority persons experienced in  busi-
   42  ness management, business development, commercial lending, entrepreneur-
   43  ship, or in the operation of a for-profit business.
   44    (c) Agreements entered into pursuant to paragraph (b) of this subdivi-
   45  sion  shall be governed by paragraphs (d) through (h) of subdivision two
   46  of this section, and minority [and], women AND  VETERAN  revolving  loan
   47  trust  fund  accounts  and  administrative  expenses trust fund accounts
   48  shall be established in a  similar  fashion  for  entities  selected  to
   49  administer micro-loan funds pursuant to this subdivision.
   50    (4)  Minority  [and],  women  AND VETERAN contracting program. For the
   51  purpose of establishing  a  comprehensive  program  to  assist  minority
   52  [and], women AND VETERAN contractors, the corporation may provide loans,
   53  loan guarantees, technical assistance and bonding assistance, the corpo-
   54  ration  may  enter  into  cooperative  agreements with cities, counties,
   55  municipalities, authorities, agencies,  federally  and  state  chartered
       S. 1655                            64
    1  credit  unions in New York state and federally insured banking organiza-
    2  tions and financial institutions for such purposes.
    3    (a)  To  be  eligible  for  a  contractor loan, the borrower must have
    4  either (i) a construction contract with, or a contract to provide  goods
    5  or  services  to, a governmental entity or authority, (ii) a subcontract
    6  on a government-sponsored construction contract,  (iii)  a  contract  or
    7  subcontract  on  a  government  sponsored residential project, or (iv) a
    8  contract or subcontract on a construction project previously approved by
    9  the corporation pursuant to section ten of this act.
   10    (b) The corporation shall provide  technical  assistance  specifically
   11  oriented   to   [minority   and   women-owned]   MINORITY-,  WOMEN-  AND
   12  VETERAN-OWNED government contractors as part of its comprehensive  tech-
   13  nical assistance program.
   14    (c)  The  corporation  is authorized to provide assistance through the
   15  creation of, or assistance to, a minority [and], women AND VETERAN bond-
   16  ing guarantee program  to  enable  minority  [and],  women  AND  VETERAN
   17  contractors  and  subcontractors  to meet payment or performance bonding
   18  requirements.
   19    (i) Through such program, assistance in the form  of  working  capital
   20  loans  and  loan  guarantees pursuant to subdivision six of this section
   21  may also be provided to minority [and], women  AND  VETERAN  contractors
   22  and  subcontractors  who  have secured contracts by participating in the
   23  program.
   24    (ii) The corporation shall either establish criteria for  the  bonding
   25  guarantee  program and for any required escrow funds which shall include
   26  detailed provisions for eligibility; or if the corporation is  providing
   27  assistance  to  a program other than one established by the corporation,
   28  review and approve the criteria established for such other program.
   29    (5) Direct  financial  assistance  for  minority-  [and  women-owned],
   30  WOMEN-  AND  VETERAN-OWNED businesses. For the purpose of establishing a
   31  program to provide direct financial assistance to minority- [and  women-
   32  owned],  WOMEN- AND VETERAN-OWNED businesses, the corporation is author-
   33  ized to provide assistance in the form of:
   34    (a) Business development loans and loan guarantees pursuant to  subdi-
   35  vision  six  of this section to eligible enterprises for the acquisition
   36  or improvement of real property, machinery, equipment or  working  capi-
   37  tal,  provided  that to be eligible for a business development loan, the
   38  borrowers must have been in  business  for  at  least  three  years  and
   39  provided  that  the  loans must be in an amount equal to or in excess of
   40  fifty thousand dollars;
   41    (b) Franchise loans to eligible  enterprises  seeking  to  acquire  or
   42  expand  franchises  of nationally recognized corporations, provided that
   43  disbursements by the corporation of such loans shall be  conditioned  on
   44  obtaining such franchises;
   45    (c)  Equity assistance for eligible [minority and women-owned] MINORI-
   46  TY-, WOMEN- AND VETERAN-OWNED enterprises to match equity  contributions
   47  to  such enterprises by financial institutions and community development
   48  equity capital funds, provided, however, that such assistance  shall  be
   49  targeted  to  start-up and early stage enterprises in the manufacturing,
   50  retail and service sectors located in economically distressed areas.
   51    (6) Deposits and loan  guarantees.  For  the  purpose  of  encouraging
   52  private  financial  institutions  to  make loans to eligible enterprises
   53  pursuant to this section for any of the eligible  projects  pursuant  to
   54  subdivisions  four  and five of this section, the corporation is author-
   55  ized to:
       S. 1655                            65
    1    (a) Make linked deposits of funds into federally and  state  chartered
    2  credit  unions  in  New York state, in order to encourage such organiza-
    3  tions to make small  loans  to  [minority  and  women-owned]  MINORITY-,
    4  WOMEN- AND VETERAN-OWNED businesses; and
    5    (b)  Provide  loan  guarantees  to  private financial institutions for
    6  loans made to eligible minority- [and women-owned], WOMEN- AND  VETERAN-
    7  OWNED  businesses  pursuant  to  this subdivision for eligible projects,
    8  provided that the guarantee shall be at least fifty  percent  backed  by
    9  funds  of  the  corporation. Any such loan guaranteed by the corporation
   10  shall be made to borrowers that are  approved  by  the  corporation  and
   11  substantially  meet the underwriting criteria the credit union or finan-
   12  cial institution customarily applies to similar  borrowers  for  similar
   13  loans  supported  by  similar  guarantees,  and no guaranteed loan funds
   14  shall be disbursed until the  corporation  has  received,  reviewed  and
   15  concurred,  in  writing,  with the recommendation of the credit union or
   16  banking or financial institution to make a loan.
   17    (7)  Minority  [and],  women  AND  VETERAN  small  business  incubator
   18  program. (a) The corporation shall establish a minority [and], women AND
   19  VETERAN  small  business  incubator program for the purpose of providing
   20  financial support for the creation of incubators  to  nurture  [minority
   21  and  women-owned]  MINORITY-,  WOMEN-  AND VETERAN-OWNED business enter-
   22  prises with growth potential.
   23    (b) Under this subdivision the corporation is  authorized  to  provide
   24  low-interest  loans  and grants for construction financing and permanent
   25  financing of up to seventy-five percent of project costs up to a maximum
   26  of six hundred fifty thousand dollars per  project,  provided  that  the
   27  total  amount  of  grant  assistance provided pursuant to this paragraph
   28  shall not exceed twenty percent of an  appropriation  provided  for  the
   29  purposes of this section.
   30    (c)  Incubator projects eligible for such assistance shall involve the
   31  renovation or reconstruction of existing facilities or  the  acquisition
   32  of  equipment,  except  that construction shall be allowable in cases in
   33  which an applicant can demonstrate to the  satisfaction  of  the  corpo-
   34  ration that an existing facility is unavailable in the area to be served
   35  by the new incubator facility.
   36    (d)  Incubator  projects  are  not  eligible  to receive loans for the
   37  purpose of covering  operating  costs  or  supplying  incubator  support
   38  services, except that incubators in their first eighteen months of oper-
   39  ation  may receive one-time grants not to exceed forty thousand dollars,
   40  which costs may include administrative costs  of  employing  a  resident
   41  administrator/advisor  to  the  incubator, provided that the corporation
   42  shall not expend a sum greater than two hundred fifty  thousand  dollars
   43  in  any  one state fiscal year, or so much as may be specifically appro-
   44  priated for this purpose.
   45    (e) Eligible incubator projects shall be required  to  demonstrate  to
   46  the corporation's satisfaction:
   47    (i)  public  or private support and involvement sufficient to complete
   48  the renovation of existing facilities or the construction of new facili-
   49  ties and the acquisition of equipment;
   50    (ii) significant community support for the project;
   51    (iii) the existence of prospective tenants for such incubator space;
   52    (iv) demand for such incubator space, which may  include  evidence  of
   53  the  unavailability  of suitable space for prospective tenants at appro-
   54  priate rental or lease costs in the community in which such  prospective
   55  tenants are located; and
       S. 1655                            66
    1    (v) the inability of the project to occur without financial assistance
    2  from the corporation.
    3    (f) The corporation shall establish criteria for eligibility for fund-
    4  ing for incubator projects, including but not limited to the following:
    5    (i) the project must be designed to provide low-cost space and support
    6  services  to  incubator  tenants,  coordination  with  other  sources of
    7  assistance and flexible leasing arrangements for tenants;
    8    (ii) the project sponsors must provide a management plan and  a  busi-
    9  ness  plan  for operating the incubator satisfactory to the corporation;
   10  and
   11    (iii) the project gives preference for incubator space and  assistance
   12  to  minority-  [and  women-owned],  WOMEN-  AND VETERAN-OWNED businesses
   13  which currently receive, or have received, assistance  from  the  corpo-
   14  ration pursuant to this section and to incubator projects proposed to be
   15  located in economically distressed areas.
   16    (8)  Minority-  [and  women-owned],  WOMEN- AND VETERAN-OWNED business
   17  technical assistance program. (a)  The  corporation  shall  establish  a
   18  comprehensive  technical  assistance  program within the minority [and],
   19  women AND VETERAN business development office, in cooperation  with  the
   20  department  of  economic development's division of minority- [and women-
   21  business], WOMEN- AND VETERAN-BUSINESS development established  pursuant
   22  to  article four-A of the economic development law, to provide technical
   23  assistance to minority-  [and  women-owned],  WOMEN-  AND  VETERAN-OWNED
   24  business  enterprises and to prospective minority- [and women-business],
   25  WOMEN- AND VETERAN-BUSINESS entrepreneurs through  third  party  service
   26  providers,  which  assistance  shall include, but not be limited to: (i)
   27  technical assistance in development and  execution  of  business  plans,
   28  including the formation of, acquisition of, management of, or diversifi-
   29  cation of a minority- [or women-owned], WOMEN- OR VETERAN-OWNED business
   30  enterprise;  (ii)  technical  assistance with applications for obtaining
   31  funds from public and private financing sources; (iii) technical assist-
   32  ance in the development of a working capital budget; (iv)  referrals  to
   33  other  providers of technical assistance to minority- [and women-owned],
   34  WOMEN- AND VETERAN-OWNED businesses and minority [and], women AND VETER-
   35  AN  entrepreneurs,  where  appropriate,  including  the  entrepreneurial
   36  assistance  program established pursuant to article nine of the economic
   37  development law; and (v) technical assistance through education programs
   38  directed primarily at women , VETERAN and minority entrepreneurs.
   39    (b) Technical assistance may  be  provided  through  direct  corporate
   40  support,  through  grants  to  or  contracts  with  service providers or
   41  governmental entities,  and  minority-  [and  women-owned],  WOMEN-  AND
   42  VETERAN-OWNED business enterprises and individuals.
   43    (9)  Priorities.  The  corporation shall give priority to applications
   44  for assistance pursuant to this section in which  the  business  seeking
   45  such  assistance indicates a commitment to first consider persons eligi-
   46  ble to participate in federal job training partnership act (P.L. 97-300)
   47  programs.
   48    (10) Non-application of certain provisions. The provisions of  section
   49  ten  and  subdivision two of section sixteen of this act shall not apply
   50  to assistance or projects authorized pursuant to this section.
   51    (11) Rules and regulations. The corporation  shall,  assisted  by  the
   52  commissioner  of  economic  development  and  in  consultation  with the
   53  department of economic development, promulgate rules and regulations  in
   54  accordance  with  the state administrative procedure act. Such rules and
   55  regulations shall be consistent with the program plan required by subdi-
   56  vision nineteen of section one hundred of the economic development  law.
       S. 1655                            67
    1  No  funds  shall  be  disbursed  under this program until such rules and
    2  regulations have been reviewed and  approved  by  the  corporation.  All
    3  assistance  and  projects  funded  under this program shall be funded in
    4  accordance  with  the  rules  and  regulations in effect on the date the
    5  completed application for such  assistance  shall  be  received  by  the
    6  corporation.
    7    (12)  Minority [and], women AND VETERAN business development and lend-
    8  ing account.  Notwithstanding any provision of law to the contrary,  the
    9  corporation  shall  establish  within  the treasury of the corporation a
   10  minority [and], women  AND  VETERAN  business  development  and  lending
   11  account,  and  shall  pay into such account any moneys which may be made
   12  available to the corporation for this purpose from any source including,
   13  but not limited to, moneys appropriated by the state and  any  repayment
   14  of  principal  and interest on loans made by the corporation pursuant to
   15  the minority-  [and  women-owned],  WOMEN-  AND  VETERAN-OWNED  business
   16  development  and lending program. Funds in the minority [and], women AND
   17  VETERAN business development and lending account, including  funds  from
   18  the  repayment  of  principal  and  interest on loans made by the corpo-
   19  ration, may be used for any form of assistance authorized hereunder. The
   20  amounts deposited in the minority  [and],  women  AND  VETERAN  business
   21  development  and  lending account may not be interchanged with any other
   22  account, but may be commingled with any  other  account  for  investment
   23  purposes.  All  loans  disbursed by the corporation shall be repaid into
   24  the account. The corporation shall enter into a written  agreement  with
   25  the  director  of  the budget for repayment, to the state comptroller to
   26  the credit of the capital projects fund, of all moneys  in  the  account
   27  after  a  period  of  time  to  be determined by the corporation and the
   28  director of the budget.  The corporation shall transfer to the  minority
   29  [and],  women  AND VETERAN business development and lending account: all
   30  moneys appropriated or reappropriated by New York state for the minority
   31  [and], women AND VETERAN revolving loan trust fund that  have  not  been
   32  committed  prior  to  the  effective  date  of the appropriation for the
   33  program in the current fiscal year, or become uncommitted subsequent  to
   34  the effective date of the program's appropriation for the current fiscal
   35  year;  and all repayments of principal and interest on loans made by the
   36  corporation which are currently on deposit in, or payable to, the minor-
   37  ity [and], women AND VETERAN business development and lending account.
   38    (13) Standardization. The corporation shall streamline the review  and
   39  approval  process  for  projects  and  wherever possible standardize all
   40  relevant attendant documentation and legal documents.
   41    (14) Approval cycle. The corporation shall approve eligible  loans  or
   42  grants  on at least a four-month cycle and shall give priority consider-
   43  ation to the comparative degree of economic distress within the areas in
   44  which the project is located. Other factors  to  be  considered  by  the
   45  corporation  shall  include  the impact of the project on the employment
   46  and economic condition of the community and the financial feasibility of
   47  the project.
   48    (15) Repayment. Notwithstanding the provisions of section  forty-a  of
   49  the  state  finance law and any other general or special law, no written
   50  agreement under this program shall require repayment at any time  or  on
   51  any  terms  inconsistent with the provisions of this act or the New York
   52  state project finance agency act; except, however, that the  corporation
   53  may  make  grants  to projects using funds appropriated for this purpose
   54  and that the repayment provision may not apply to such grants.
   55    (16) Reports. The chairman of the  corporation  shall  submit  to  the
   56  director  of  the  budget, the speaker of the assembly and the temporary
       S. 1655                            68
    1  president of the senate  an  evaluation  of  the  effectiveness  of  the
    2  program prepared by an entity independent of the corporation. The corpo-
    3  ration shall select the program evaluator through a request for proposal
    4  process. Such evaluation shall determine whether the assistance provided
    5  has  enhanced  the  economic condition of assisted companies or communi-
    6  ties, and shall make recommendation for improvements  which  would  make
    7  the  program  more  effective.  Such  evaluation  shall  be submitted by
    8  September first, nineteen hundred ninety-five and September first  every
    9  two years thereafter.
   10    S  44.  Subparagraphs (viii) and (x) of paragraph (e) of subdivision 7
   11  of section 16-d of section 1 of chapter 174 of the laws of 1968, consti-
   12  tuting the New York state urban development corporation act, as added by
   13  chapter 169 of the laws of 1994, are amended to read as follows:
   14    (viii) export, marketing, procurement and subcontracting assistance to
   15  small  and  medium-sized  industrial  firms,  including  minority-  [and
   16  women-owned], WOMEN- AND VETERAN-OWNED businesses, and to flexible manu-
   17  facturing  networks,  and  programs  to assist regional and multi-county
   18  business marketing and procurement programs;
   19    (x) business  planning,  management  assistance  and  counseling,  and
   20  financial  packaging  assistance  to  small  and medium-sized industrial
   21  firms, including minority- [and women-owned], WOMEN-  AND  VETERAN-OWNED
   22  businesses,  flexible  manufacturing  networks,  and new enterprises and
   23  small businesses,  including  the  establishment  of  neighborhood-based
   24  business  service  centers  designed  to deliver comprehensive technical
   25  assistance to new and  small  businesses  in  specific  communities  and
   26  neighborhoods;
   27    S  45.  Subparagraph (ii) of paragraph (h) of subdivision 7 of section
   28  16-d of section 1 of chapter 174 of the laws of 1968,  constituting  the
   29  New  York  state  urban development corporation act, as added by chapter
   30  169 of the laws of 1994, is amended to read as follows:
   31    (ii) support for business development projects of  women,  members  of
   32  minority groups, VETERANS or dislocated workers;
   33    S 46. Clause (B) of subparagraph (i) of paragraph (h) of subdivision 8
   34  of section 16-d of section 1 of chapter 174 of the laws of 1968, consti-
   35  tuting the New York state urban development corporation act, as added by
   36  chapter  169 of the laws of 1994 and as further amended by section 15 of
   37  part GG of chapter 63 of the  laws  of  2000,  is  amended  to  read  as
   38  follows:
   39    (B)  community based local development corporations, industrial devel-
   40  opment agencies, or other not-for-profit entities which serve a  munici-
   41  pality in which an empire zone has been established and which, as one of
   42  their  primary  purposes,  provide  services  and assistance to business
   43  enterprises located or to be located  in  such  empire  zone,  including
   44  minority- [and women-owned], WOMEN- AND VETERAN-OWNED businesses;
   45    S 47.  Paragraph (b) of subdivision 14 of section 16-d of section 1 of
   46  chapter  174  of the laws of 1968, constituting the New York state urban
   47  development corporation act, as added by chapter  169  of  the  laws  of
   48  1994, is amended to read as follows:
   49    (b)  Submit to the director of the budget, the speaker of the assembly
   50  and the temporary president of the senate an evaluation  of  the  effec-
   51  tiveness  of  the urban and community development program prepared by an
   52  entity independent of the corporation. The corporation shall select  the
   53  program  evaluator  through  a request for proposal process. Such evalu-
   54  ation shall discuss the variety and types of programs supported  by  the
   55  corporation under this program; and, as appropriate, the extent to which
   56  the  program has served to create and maintain jobs; the extent to which
       S. 1655                            69
    1  the program has helped to increase the vitality  of  local  communities;
    2  the  extent to which the program is coordinated with other related state
    3  and local assistance programs; the extent to which  the  program  serves
    4  minorities  [and],  women  AND VETERANS; the extent to which the program
    5  serves urban and rural areas; the extent to  which  the  program  serves
    6  economically distressed and highly distressed areas; the extent to which
    7  the program has helped to increase the capacity of local governments and
    8  organizations  to  undertake  economic  development activities; and such
    9  other components as the commissioner of economic development shall  deem
   10  appropriate; and shall make recommendations for improvements which would
   11  make  the  program more effective. Such evaluation shall be submitted by
   12  September first, nineteen hundred ninety-five  and  by  September  first
   13  every two years thereafter.
   14    S  48.  Paragraph (h) of subdivision 1 of section 16-e of section 1 of
   15  chapter 174 of the laws of 1968, constituting the New York  state  urban
   16  development  corporation  act,  as  added  by chapter 169 of the laws of
   17  1994, is amended to read as follows:
   18    (h) "Revolving loan fund account grants" shall include: (i) grants  to
   19  provide the local match for federally funded community-based loan funds;
   20  (ii) grants to capitalize and recapitalize regional revolving loan trust
   21  fund  accounts  pursuant  to  section  sixteen-a  of this act; and (iii)
   22  grants to recapitalize minority [and], women AND VETERAN revolving  loan
   23  trust  fund  accounts  established pursuant to section sixteen-c of this
   24  act.
   25    S 49.  Subparagraph (i) of paragraph (c) of subdivision 5  of  section
   26  16-e  of  section 1 of chapter 174 of the laws of 1968, constituting the
   27  New York state urban development corporation act, as  added  by  chapter
   28  169 of the laws of 1994, is amended to read as follows:
   29    (i)  business development by women, minorities, VETERANS or unemployed
   30  persons;
   31    S 50.  Subparagraphs (vi) and (ix) of paragraph (c) of subdivision  10
   32  of section 16-e of section 1 of chapter 174 of the laws of 1968, consti-
   33  tuting the New York state urban development corporation act, as added by
   34  chapter 169 of the laws of 1994, are amended to read as follows:
   35    (vi)  management and procurement assistance to small business, includ-
   36  ing minority- [and women-owned], WOMEN- AND VETERAN-OWNED businesses;
   37    (ix) assistance to expand the capacity of existing  entities  adminis-
   38  tering minority [and], women AND VETERAN revolving loan funds to deliver
   39  services;
   40    S  51.   Subdivision 13 of section 16-e of section 1 of chapter 174 of
   41  the laws of 1968, constituting the  New  York  state  urban  development
   42  corporation act, as added by chapter 169 of the laws of 1994, is amended
   43  to read as follows:
   44    (13)  Regional  loan fund account grants. Assistance from this program
   45  may be provided for grants of up to five  hundred  thousand  dollars  to
   46  capitalize,  and  up  to  two  hundred thousand dollars to recapitalize,
   47  regional revolving loan trust  fund  accounts  established  pursuant  to
   48  section  sixteen-a of this act and up to two hundred thousand dollars to
   49  recapitalize minority [and], women AND VETERAN revolving loan trust fund
   50  accounts established pursuant to section sixteen-c of this act;  and  up
   51  to two hundred thousand dollars to provide the local match for appropri-
   52  ately federally-financed community-based loan funds.
   53    S  52. Paragraph (d) of subdivision 18 of section 16-e of section 1 of
   54  chapter 174 of the laws of 1968, constituting the New York  state  urban
   55  development  corporation  act,  as  added  by chapter 169 of the laws of
   56  1994, is amended to read as follows:
       S. 1655                            70
    1    (d) The participation  of  minority-  [and  women-owned],  WOMEN-  AND
    2  VETERAN-OWNED businesses;
    3    S  53.    Subdivision 1 of section 16-f of section 1 of chapter 174 of
    4  the laws of 1968, constituting the  New  York  state  urban  development
    5  corporation act, as added by chapter 169 of the laws of 1994, is amended
    6  to read as follows:
    7    (1)  Program created.  There is hereby created a state bonding guaran-
    8  tee assistance program to enable small  businesses,  and  minority-owned
    9  [and],  women-owned AND VETERAN-OWNED business enterprises, certified as
   10  a minority-owned [or], women-owned OR VETERAN-OWNED business  enterprise
   11  pursuant  to  article  fifteen-A  of  the executive law, to meet payment
   12  and/or performance bonding requirements by providing  additional  finan-
   13  cial  backing  needed  to  induce  a  surety company to issue a bond for
   14  construction projects, including but not limited  to,  government  spon-
   15  sored,  transportation  related  construction  projects. For purposes of
   16  this section, the term small business shall have  the  same  meaning  as
   17  defined  in  section  one hundred thirty-one of the economic development
   18  law. Such program shall give preference to minority-owned [and],  women-
   19  owned AND VETERAN-OWNED business enterprises and shall:
   20    (a)  Make available funds to surety companies providing bonds to small
   21  businesses and  [minority-  owned  or]  MINORITY-OWNED,  women-owned  OR
   22  VETERAN-OWNED  business  enterprises  in an amount equal to a percentage
   23  not to exceed fifty percent of the face value of  bonds  issued  by  the
   24  surety.
   25    (b)  Provide  technical  assistance in completing bonding applications
   26  for  small  businesses   and   minority-owned   [or],   women-owned   OR
   27  VETERAN-OWNED  business enterprises seeking to become eligible for bond-
   28  ing in preparation  for  bidding  on  construction  projects,  including
   29  transportation  related  projects. The corporation shall provide and may
   30  refer such businesses to the  department  of  economic  development  for
   31  technical  assistance  as  such  businesses  may need, including but not
   32  limited to:
   33    (i) a review of the applicants' market and business competitive strat-
   34  egy;
   35    (ii) consultation and review of the development and planned  implemen-
   36  tation of a working capital budget;
   37    (iii)  assistance  with  applications  for the receipt of funding from
   38  other financial sources and providing  referrals  to  other  appropriate
   39  public and private sources of financing; and
   40    (iv) assistance from the regional offices of the department of econom-
   41  ic  development,  pursuant to article eleven of the economic development
   42  law, and the entrepreneurial assistance  program,  pursuant  to  article
   43  nine  of such law, and any other such program receiving state funds from
   44  this act or the department of economic development or  any  other  state
   45  agency  that  is intended to provide technical assistance to small busi-
   46  nesses and minority-owned [and],  women-owned  AND  VETERAN-OWNED  small
   47  business enterprises.
   48    S  54.  Paragraph (g) of subdivision 1 of section 16-i of section 1 of
   49  chapter 174 of the laws of 1968, constituting the New York  state  urban
   50  development  corporation  act,  as amended by chapter 471 of the laws of
   51  2001, is amended to read as follows:
   52    (g) Assistance  to  local  or  regional  organizations  to  facilitate
   53  financing  for  small-  and  medium-sized  business, including minority-
   54  [and], women-owned AND VETERAN-OWNED business enterprises through flexi-
   55  ble financing programs, including, but not limited to, loan loss reserve
   56  and revolving loan programs, working capital loans, working capital loan
       S. 1655                            71
    1  guarantees, or other flexible financing programs  that  leverage  tradi-
    2  tional financing;
    3    S  55.  Subparagraph  (i) of paragraph (c) of subdivision 2 of section
    4  16-k of section 1 of chapter 174 of the laws of 1968,  constituting  the
    5  New  York state urban development corporation act, as amended by chapter
    6  103 of the laws of 2011, is amended to read as follows:
    7    (i) provide a plan to the corporation or its agent for  the  marketing
    8  of  the  capital  access program to small businesses, including those in
    9  highly distressed areas and to minority- [and], women-owned  AND  VETER-
   10  AN-OWNED  businesses,  with appropriate lending objectives identified by
   11  the financial institution for such areas and businesses;
   12    S 56. Subparagraph (i) of paragraph (e) of subdivision  2  of  section
   13  16-l  of  section 1 of chapter 174 of the laws of 1968, constituting the
   14  New York state urban development corporation act, as  added  by  chapter
   15  471 of the laws of 2001, is amended to read as follows:
   16    (i) innovative activities and programs designed to encourage value-ad-
   17  ded  small  business  development  and  growth in rural areas, including
   18  cottage and  crafts  industries;  group  marketing  of  local  products;
   19  women-owned  industries;  VETERAN-OWNED  INDUSTRIES;  natural  resources
   20  development; and  tourism.  Such  activities  and  programs  shall  also
   21  include  projects pertaining to agriculture and agribusiness development
   22  to stimulate the development and implementation of new  and  alternative
   23  production, processing, storage, distribution and marketing technologies
   24  and  improvements  for  New York food, agricultural and forest products.
   25  Projects promoting strengthened farm management practices shall also  be
   26  eligible for assistance;
   27    S  57.  Paragraph (g) of subdivision 1 of section 16-m of section 1 of
   28  chapter 174 of the laws of 1968, constituting the New York  state  urban
   29  development  corporation act, as added by section 1 of part N of chapter
   30  84 of the laws of 2002, is amended to read as follows:
   31    (g) Assistance  to  local  or  regional  organizations  to  facilitate
   32  financing  for  small-  and  medium-sized  business, including minority-
   33  [and], women-owned AND VETERAN-OWNED business enterprises through flexi-
   34  ble financing programs, including, but not limited to, loan loss reserve
   35  and revolving loan programs, working capital loans, working capital loan
   36  guarantees, or other flexible financing programs  that  leverage  tradi-
   37  tional financing;
   38    S  58.  Subparagraph  (i) of paragraph (e) of subdivision 7 of section
   39  16-o of section 1 of chapter 174 of the laws of 1968,  constituting  the
   40  New  York  state  urban development corporation act, as added by chapter
   41  186 of the laws of 2007, is amended to read as follows:
   42    (i) provide jobs for low income people or  are  owned  by  low  income
   43  people, women, VETERANS or minority entrepreneurs; or
   44    S  59.  Paragraph (b) of subdivision 1 of section 16-q of section 1 of
   45  chapter 174 of the laws of 1968, constituting the New York  state  urban
   46  development corporation act, as added by section 2 of part QQ of chapter
   47  57 of the laws of 2008, is amended to read as follows:
   48    (b)  Support for the attraction or expansion of a business, including,
   49  but not limited to, those primarily engaged in activities identified  as
   50  a  strategic  industry, and minority-owned [and], women-owned AND VETER-
   51  AN-OWNED business enterprises as defined by subdivisions (c) and (g)  of
   52  section nine hundred fifty-seven of the general municipal law.
   53    S  60.  Subdivisions  3 and 11 of section 16-t of section 1 of chapter
   54  174 of the laws of 1968, constituting the New York state urban  develop-
   55  ment  corporation  act, as amended by section 1 of part II of chapter 59
   56  of the laws of 2013, are amended to read as follows:
       S. 1655                            72
    1    3. Program loans to small businesses shall be targeted and marketed to
    2  [minority and women-owned] MINORITY-, WOMEN-  AND  VETERAN-OWNED  enter-
    3  prises  and  other small businesses that are having difficulty accessing
    4  traditional credit markets. Program loans to small businesses  shall  be
    5  used  for  the  creation and retention of jobs, as defined by the corpo-
    6  ration, including: (a)  working  capital;  (b)  the  acquisition  and/or
    7  improvement  of  real  property;  (c)  the  acquisition of machinery and
    8  equipment, property or improvement; or (d) the refinancing of debt obli-
    9  gations. There shall be two categories of loans to small  businesses:  a
   10  micro  loan that shall have a principal amount that is less than twenty-
   11  five thousand dollars and a regular loan that  shall  have  a  principal
   12  amount  not  less  than twenty-five thousand dollars. Prior to receiving
   13  program funds, the lending organization must certify to the  corporation
   14  that  such  loan  complies  with  this section and rules and regulations
   15  promulgated for the  program  and  that  the  lending  organization  has
   16  performed  its  obligations  pursuant  to and is in compliance with this
   17  section, the program rules and regulations and  all  agreements  entered
   18  into  between  the corporation and the lending organization. The program
   19  funds amount used by the lending organization to fund a  program  appli-
   20  cant  loan  shall not be more than fifty percent of the principal amount
   21  of such loan. The program funds amount used by the lending  organization
   22  to  fund  a program applicant loan shall not be greater than one hundred
   23  and twenty-five thousand dollars. Minority-  [and  women-owned],  WOMEN-
   24  AND  VETERAN-OWNED  business  enterprises and other small businesses who
   25  access such program loans under this subdivision shall not be  precluded
   26  from  accessing  such short-term financing loans provided under subdivi-
   27  sion eleven of this section.
   28    11. Notwithstanding anything to the  contrary  in  this  section,  the
   29  corporation  may  provide  at  least  five  hundred  thousand dollars in
   30  program funds pursuant to this section to lending organizations for  the
   31  purpose  of  making  short-term  financing  available  to minority- [and
   32  women-owned], WOMEN- AND VETERAN-OWNED business  enterprises  and  other
   33  small businesses performing contracts to provide construction or profes-
   34  sional services for state procurement purposes. Such loans shall be used
   35  to underwrite the cost of labor, materials, and equipment directly asso-
   36  ciated  with  (1) the contract being financed or (2) a contract that has
   37  been satisfied for which the  business  is  awaiting  payment  from  the
   38  state. The program funds amount used by the lending organization to fund
   39  a  program  applicant  loan shall not be more than eighty percent of the
   40  principal amount of such loan. The program  funds  amount  used  by  the
   41  lending  organization  to  fund  a  program  applicant loan shall not be
   42  greater than one hundred twenty-five thousand  dollars.  Minority-  [and
   43  women-owned],  WOMEN-  AND  VETERAN-OWNED business enterprises and other
   44  small businesses who access such short-term financing loans  under  this
   45  subdivision  shall  not  be  precluded from accessing such program loans
   46  provided under subdivision three of this section.
   47    S 61. Subparagraph (xvi) of paragraph (b) of subdivision 2 of  section
   48  16-v  of  section 1 of chapter 174 of the laws of 1968, constituting the
   49  New York state urban development corporation act, as added by section  1
   50  of  part  C  of  chapter  59  of the laws of 2013, is amended to read as
   51  follows:
   52    (xvi) a plan to recruit minority- [and women-owned], WOMEN- AND VETER-
   53  AN-OWNED businesses for location and participation  with  the  incubator
   54  program.
   55    S  62.  Paragraph  1  of subdivision (c) of section 30 of section 1 of
   56  chapter 174 of the laws of 1968, constituting the New York  state  urban
       S. 1655                            73
    1  development  corporation  act,  as amended by chapter 732 of the laws of
    2  1990, is amended to read as follows:
    3    (1) In addition to any other requirements imposed by the act or other-
    4  wise  regarding evaluations of programs administered by the corporation,
    5  each evaluation shall include an analysis of the job creation effect  of
    6  such  program,  the number of small businesses that received assistance,
    7  the number of [minority and women-owned] MINORITY-, WOMEN- AND  VETERAN-
    8  OWNED  firms that received assistance, the number of projects undertaken
    9  in distressed and highly distressed communities, and, if applicable, the
   10  repayment experience of borrowers of funds from the corporation.
   11    S 63. Paragraph 2 of subdivision (e) of section 30-a of section  1  of
   12  chapter  174  of the laws of 1968, constituting the New York state urban
   13  development corporation act, as added by section 2 of part M1 of chapter
   14  62 of the laws of 2003, is amended to read as follows:
   15    (2) require projects to be financed out of the empire  state  economic
   16  development fund be approved generally in amounts which are proportional
   17  to amounts appropriated for the urban and community development program,
   18  and  the  [minority  and women-owned] MINORITY-, WOMEN AND VETERAN-OWNED
   19  business development and lending program;
   20    S 64. Section 38 of section 1 of chapter 174  of  the  laws  of  1968,
   21  constituting  the  New  York state urban development corporation act, as
   22  amended by chapter 169 of the laws  of  1994,  is  amended  to  read  as
   23  follows:
   24    S  38. Small business and minority-owned [and], women-owned AND VETER-
   25  AN-OWNED business  enterprises  transportation  capital  assistance  and
   26  guaranteed  loan  program.  1.  To provide financial assistance to small
   27  business and minority-owned [and], women-owned AND  VETERAN-OWNED  busi-
   28  ness enterprises engaged in government sponsored, transportation related
   29  construction  projects, the corporation shall establish a small business
   30  and minority-owned [and], women-owned AND VETERAN-OWNED business  enter-
   31  prise  transportation capital assistance revolving loan fund which shall
   32  provide loans or loan guarantees to small  business  and  minority-owned
   33  [and], women-owned AND VETERAN-OWNED business enterprises.  For purposes
   34  of this section: (a) the term small business shall have the same meaning
   35  as defined in section one hundred thirty-one of the economic development
   36  law  and  (b)  the  term project shall mean a project of state agency or
   37  authority that sponsors transportation related construction projects and
   38  participates in this program and any  definition  of  project  contained
   39  elsewhere in this act shall not apply.
   40    2.  Such  loans,  or  loan  guarantees for loans made by federally and
   41  state chartered credit institutions, financial institutions, and  feder-
   42  ally  insured banking organizations to small business and minority-owned
   43  [and], women-owned AND VETERAN-OWNED business enterprises, shall be used
   44  to (a) enable such  businesses,  through  the  acquisition,  leasing  or
   45  improvement  of  real  property,  machinery or equipment, or through the
   46  provision  of  working  capital  to   secure   service,   commodity   or
   47  construction  contracts;  (b) restore working capital to such businesses
   48  which have successfully  completed  work  under  a  contract  but  whose
   49  liquidity has been adversely affected by problems resulting from delayed
   50  payments;  and  (c)  ensure the completion of the work associated with a
   51  governmental service, commodity or construction  contract  in  order  to
   52  prevent default on such contract.
   53    3.  (a) To be eligible for such loans or loan guarantees (i) a minori-
   54  ty-owned [or], women-owned OR VETERAN-OWNED business enterprise must  be
   55  certified  as  a minority-owned [or], women-owned OR VETERAN-OWNED busi-
   56  ness enterprise pursuant to article 15-A of the executive law; and  (ii)
       S. 1655                            74
    1  a  small business or a minority-owned [or], women-owned OR VETERAN-OWNED
    2  business enterprise shall have a contract  or  sub-contract  to  provide
    3  goods  or  services  related  to  a government sponsored, transportation
    4  related construction project.
    5    (b)  Only  such  business enterprises referred to the corporation by a
    6  written application of a state agency or authority that sponsors  trans-
    7  portation  related  construction  projects shall be eligible for program
    8  assistance. Such assistance shall be provided to such an enterprise only
    9  in connection with its performance as a contractor or sub-contractor  on
   10  a  specific  transportation  related  project of the referring agency or
   11  authority. In order for such an agency or authority to refer such enter-
   12  prises to the corporation, such agency or authority shall enter  into  a
   13  master  agreement  with the corporation covering procedures and require-
   14  ments for providing program assistance. The corporation shall  determine
   15  whether or not to approve such an agency's or authority's written appli-
   16  cation  for program assistance to such a business within twenty business
   17  days of the corporation's receipt of such application.  If  it  approves
   18  the application, the corporation will provide assistance pursuant to the
   19  applicable master agreement.
   20    4.  The  corporation  shall  give  preference to minority-owned [and],
   21  women-owned AND VETERAN-OWNED business enterprises in making such  loans
   22  and  loan  guarantees  and shall establish such other criteria as it may
   23  deem necessary for this program and for any required amount  that  shall
   24  be held in reserve for any guarantees made under this program.
   25    5. Notwithstanding any inconsistent provision of law, general, special
   26  or  local,  including pursuant to capital projects budget appropriations
   27  or reappropriations, where applicable, the corporation is hereby author-
   28  ized to enter into such agreements as may be necessary for the operation
   29  and administration of a small business and minority-owned [and],  women-
   30  owned  AND  VETERAN-OWNED  business  enterprises  transportation capital
   31  assistance and guaranteed loan program.
   32    6. The corporation is authorized to establish a  revolving  loan  fund
   33  account  into  which  funds  may be received and from which funds may be
   34  expended for the aforementioned purposes.
   35    7. The provisions of  section  ten  and  subdivision  two  of  section
   36  sixteen  of  this  act shall not apply to assistance provided under this
   37  program.
   38    S 65. Paragraph (a) of subdivision 1 of section 9-a of  section  1  of
   39  chapter  359 of the laws of 1968 constituting the facilities development
   40  corporation act, as added by chapter 58 of the laws of 1987, is  amended
   41  to read as follows:
   42    (a)  The  contractor will not discriminate against employees or appli-
   43  cants for employment because of race,  creed,  color,  national  origin,
   44  sex,  age, disability, or marital status, and will undertake or continue
   45  existing programs of affirmative action to ensure  that  minority  group
   46  persons [and], women AND VETERANS are afforded equal opportunity without
   47  discrimination.  Such  programs  shall  include,  but not be limited to,
   48  recruitment, employment, job assignment, promotion, upgrading, demotion,
   49  transfer, layoff, termination, rates of pay or other  forms  of  compen-
   50  sation, and selections for training or retraining, including apprentice-
   51  ship and on-the-job training.
   52    S  66.  Section  9-b  of  section 1 of chapter 359 of the laws of 1968
   53  constituting the facilities development corporation  act,  as  added  by
   54  chapter 58 of the laws of 1987, is amended to read as follows:
   55    S  9-b.  Minority  [and women-owned], WOMEN AND VETERAN-OWNED business
   56  enterprise program. 1. (a) Minority [and women-owned], WOMEN AND  VETER-
       S. 1655                            75
    1  AN-OWNED  business  enterprises shall be given the opportunity for mean-
    2  ingful participation in all contracts executed by the corporation pursu-
    3  ant to the provisions of this act other than contracts the cost of which
    4  is  borne  solely  by  a municipality or municipalities. The corporation
    5  shall establish measures and procedures  to  secure  meaningful  partic-
    6  ipation and identify those contracts and items of work for which minori-
    7  ty  [and  women-owned], WOMEN AND VETERAN-OWNED business enterprises may
    8  best bid to actively and affirmatively promote and assist their  partic-
    9  ipation  in  the projects, so as to facilitate the award of a fair share
   10  of contracts to such enterprises; provided,  however,  that  nothing  in
   11  this  act  shall be construed to limit the ability of the corporation to
   12  assure  that   qualified   minority   [and   women-owned],   WOMEN   AND
   13  VETERAN-OWNED  business  enterprises may participate in the program. For
   14  purposes hereof, minority business enterprise shall  mean  any  business
   15  enterprise  which  is  at least fifty-one per centum owned by, or in the
   16  case of a publicly owned business, at least fifty-one per centum of  the
   17  stock of which is owned by citizens or permanent resident aliens who are
   18  Black,  Hispanic,  Asian or American Indian, Pacific Islander or Alaskan
   19  natives and such ownership interest is real, substantial and  continuing
   20  and  have the authority to independently control the day to day business
   21  decisions of the entity for at least one year; and women-owned  business
   22  enterprise  shall  mean any business enterprise which is at least fifty-
   23  one per centum owned by, or in the case of a publicly owned business, at
   24  least fifty-one per centum of the stock of which is owned by citizens or
   25  permanent resident aliens who are women, and such ownership interest  is
   26  real, substantial and continuing and have the authority to independently
   27  control the day to day business decisions of the entity for at least one
   28  year;  AND  VETERAN-OWNED  BUSINESS  ENTERPRISE  SHALL MEAN ANY BUSINESS
   29  ENTERPRISE WHICH IS AT LEAST FIFTY-ONE PER CENTUM OWNED BY,  OR  IN  THE
   30  CASE  OF A PUBLICLY OWNED BUSINESS, AT LEAST FIFTY-ONE PER CENTUM OF THE
   31  STOCK OF WHICH IS OWNED BY CITIZENS OR PERMANENT RESIDENT ALIENS WHO ARE
   32  VETERANS, AND SUCH OWNERSHIP INTEREST IS REAL, SUBSTANTIAL AND  CONTINU-
   33  ING AND HAVE THE AUTHORITY TO INDEPENDENTLY CONTROL THE DAY TO DAY BUSI-
   34  NESS DECISIONS OF THE ENTITY FOR AT LEAST ONE YEAR.
   35    The  provisions  of this paragraph shall not be construed to limit the
   36  ability of any minority [or women-owned], WOMEN OR  VETERAN-OWNED  busi-
   37  ness enterprise to bid on any contract.
   38    (b)  In  the  implementation  of  this  section, the corporation shall
   39  consider compliance by any  contractor  with  the  requirements  of  any
   40  federal,  state,  or  local  law  concerning minority [and women-owned],
   41  WOMEN OR VETERAN-OWNED business enterprises, which  may  effectuate  the
   42  requirements  of  this  section.  If  the corporation determines that by
   43  virtue of the imposition of the requirements of any such law, in respect
   44  to contracts, the provisions thereof duplicate  or  conflict  with  this
   45  section,  the corporation may waive the applicability of this section to
   46  the extent of such duplication or conflict.
   47    (c) Nothing in this section shall be deemed to  require  that  overall
   48  state  and  federal  requirements  for  participation  of  minority [and
   49  women-owned], WOMEN AND VETERAN-OWNED business enterprises  in  programs
   50  authorized  under  this  act  be applied without regard to local circum-
   51  stances to all projects or in all communities.
   52    2. In order to implement  the  requirements  and  objectives  of  this
   53  section,  the  corporation  shall  establish  procedures  to monitor the
   54  contractors' compliance with provisions hereof,  provide  assistance  in
   55  obtaining  competing  qualified  minority  [and  women-owned], WOMEN AND
   56  VETERAN-OWNED business enterprises to perform contracts proposed  to  be
       S. 1655                            76
    1  awarded,  and  take  other appropriate measures to improve the access of
    2  minority [and women-owned], WOMEN AND VETERAN-OWNED business enterprises
    3  to these contracts.
    4    S  67.  Paragraph  a  of subdivision 1 of section 16-a of section 1 of
    5  chapter 392 of the laws of 1973, constituting the New York state medical
    6  care facilities finance agency act, as added by chapter 58 of  the  laws
    7  of 1987, is amended to read as follows:
    8    a.  The  contractor  will not discriminate against employees or appli-
    9  cants for employment because of race,  creed,  color,  national  origin,
   10  sex,  age, disability, or marital status, and will undertake or continue
   11  existing programs of affirmative action to ensure  that  minority  group
   12  persons [and], women AND VETERANS are afforded equal opportunity without
   13  discrimination.  Such  programs  shall  include,  but not be limited to,
   14  recruitment, employment, job assignment, promotion, upgrading, demotion,
   15  transfer, layoff, termination, rates of pay or other  forms  of  compen-
   16  sation, and selections for training or retraining, including apprentice-
   17  ship and on-the-job training.
   18    S  68.  Section  16-b of section 1 of chapter 392 of the laws of 1973,
   19  constituting the New York state medical care facilities  finance  agency
   20  act,  as  added by chapter 58 of the laws of 1987, is amended to read as
   21  follows:
   22    S 16-b. Minority [and women-owned], WOMEN AND  VETERAN-OWNED  business
   23  enterprise  program.  1.  a.  In the performance of projects pursuant to
   24  this act minority [and women-owned], WOMEN  AND  VETERAN-OWNED  business
   25  enterprises shall be given the opportunity for meaningful participation.
   26  The  agency shall establish measures and procedures to secure meaningful
   27  participation and identify those contracts and items of work  for  which
   28  minority [and women-owned], WOMEN AND VETERAN-OWNED business enterprises
   29  may  best  bid  to  actively  and affirmatively promote and assist their
   30  participation in the projects, so as to facilitate the award of  a  fair
   31  share  of contracts to such enterprises; provided, however, that nothing
   32  in this act shall be construed to limit the ability  of  the  agency  to
   33  assure   that   qualified   minority   [and   women-owned],   WOMEN  AND
   34  VETERAN-OWNED business enterprises may participate in the  program.  For
   35  purposes  hereof,  minority  business enterprise shall mean any business
   36  enterprise which is at least fifty-one per centum owned by,  or  in  the
   37  case  of a publicly owned business, at least fifty-one per centum of the
   38  stock of which is owned by citizens or permanent resident aliens who are
   39  Black, Hispanic, Asian or American Indian, Pacific Islander  or  Alaskan
   40  natives  and such ownership interest is real, substantial and continuing
   41  and have the authority to independently control the day to day  business
   42  decisions  of the entity for at least one year; and women-owned business
   43  enterprise shall mean any business enterprise which is at  least  fifty-
   44  one per centum owned by, or in the case of a publicly owned business, at
   45  least fifty-one per centum of the stock of which is owned by citizens or
   46  permanent  resident aliens who are women, and such ownership interest is
   47  real, substantial and continuing and have the authority to independently
   48  control the day to day business decisions of the entity for at least one
   49  year; AND VETERAN-OWNED BUSINESS  ENTERPRISE  SHALL  MEAN  ANY  BUSINESS
   50  ENTERPRISE  WHICH  IS  AT LEAST FIFTY-ONE PER CENTUM OWNED BY, OR IN THE
   51  CASE OF A PUBLICLY OWNED BUSINESS, AT LEAST FIFTY-ONE PER CENTUM OF  THE
   52  STOCK OF WHICH IS OWNED BY CITIZENS OR PERMANENT RESIDENT ALIENS WHO ARE
   53  VETERANS AND SUCH OWNERSHIP INTEREST IS REAL, SUBSTANTIAL AND CONTINUING
   54  AND  HAVE THE AUTHORITY TO INDEPENDENTLY CONTROL THE DAY TO DAY BUSINESS
   55  DECISIONS OF THE ENTITY FOR AT LEAST ONE YEAR.
       S. 1655                            77
    1    The provisions of this paragraph shall not be construed to  limit  the
    2  ability  of  any minority [or women-owned], WOMEN OR VETERAN-OWNED busi-
    3  ness enterprise to bid on any contract.
    4    b.  In  the  implementation of this section, the agency shall consider
    5  compliance by any contractor  with  the  requirements  of  any  federal,
    6  state,  or  local  law  concerning minority [and women-owned], WOMEN AND
    7  VETERAN-OWNED business enterprises, which may  effectuate  the  require-
    8  ments  of  this section. If the department or the office determines that
    9  by virtue of the imposition of the requirements  of  any  such  law,  in
   10  respect  to contracts, the provisions thereof duplicate or conflict with
   11  this act, the agency may waive the applicability of this section to  the
   12  extent of such duplication or conflict.
   13    c.  Nothing  in  this  section shall be deemed to require that overall
   14  state and  federal  requirements  for  participation  of  minority  [and
   15  women-owned],  WOMEN  AND VETERAN-OWNED business enterprises in programs
   16  authorized under this act be applied without  regard  to  local  circum-
   17  stances to all projects or in all communities.
   18    2.  In  order  to  implement  the  requirements and objectives of this
   19  section, the agency shall establish procedures to monitor  the  contrac-
   20  tors' compliance with provisions hereof, provide assistance in obtaining
   21  competing  qualified minority [and women-owned], WOMEN AND VETERAN-OWNED
   22  business enterprises to perform contracts proposed to  be  awarded,  and
   23  take  other  appropriate measures to improve the access of minority [and
   24  women-owned], WOMEN AND  VETERAN-OWNED  business  enterprises  to  these
   25  contracts.
   26    S  69.  This  act shall take effect on the sixtieth day after it shall
   27  have become a law; provided however,
   28    a. the amendments to  article  15-A  of  the  executive  law  made  by
   29  sections  one-a,  two,  three,  three-a,  four, five, six, seven, eight,
   30  nine, ten, eleven, twelve and thirteen of this act shall not affect  the
   31  expiration of such article and shall expire therewith;
   32    b.  the amendments to the second undesignated paragraph of subdivision
   33  1 of section 12 of section 1 of chapter 174 of the laws of 1968, consti-
   34  tuting the New York state urban development  corporation  act,  made  by
   35  section forty-one of this act shall not affect the expiration and repeal
   36  of  such  paragraph and shall be deemed to expire and be repealed there-
   37  with;
   38    c. the amendments to paragraph (g) of subdivision 1 of section 16-i of
   39  section 1 of chapter 174 of the laws of 1968, constituting the New  York
   40  state  urban  development corporation act, made by section fifty-four of
   41  this act shall not affect the expiration of such paragraph and shall  be
   42  deemed to expire therewith.