Bill Text: NY A06142 | 2017-2018 | General Assembly | Introduced
Bill Title: Creates the "veteran owned business enterprise act" to promote such business enterprises and includes service related veteran owned businesses with minority and women owned businesses.
Spectrum: Partisan Bill (Republican 18-0)
Status: (Introduced - Dead) 2018-05-16 - held for consideration in veterans' affairs [A06142 Detail]
Download: New_York-2017-A06142-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6142 2017-2018 Regular Sessions IN ASSEMBLY February 27, 2017 ___________ Introduced by M. of A. KOLB, HAWLEY, GIGLIO, RAIA, MALLIOTAKIS, CURRAN, STEC, BRABENEC, BLANKENBUSH, DiPIETRO -- Multi-Sponsored by -- M. of A. LOPEZ, McDONOUGH -- read once and referred to the Committee on Veterans' Affairs AN ACT to amend the executive law, the state finance law, the arts and cultural affairs law, the economic development law, the environmental conservation law, the public authorities law, the general municipal law, the banking law, the facilities development corporation act, the New York state medical care facilities finance agency act and the New York state urban development corporation act, in relation to promoting veteran owned business enterprises The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "veteran owned business enterprise act". 3 § 2. 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, VETERANS AND WOMEN WITH 6 RESPECT TO STATE CONTRACTS 7 § 3. Subdivisions 1 and 9 of section 310 of the executive law, as 8 added by chapter 261 of the laws of 1988, are amended and a new subdivi- 9 sion 24 is added to read as follows: 10 1. "Certified business" shall mean a business verified as a minority, 11 honorably discharged veteran or women-owned business enterprise pursuant 12 to section three hundred fourteen of this article. For purposes of this 13 section "veteran discharged or released under conditions other than 14 dishonorable" shall mean those conditions defined by title 38 code of 15 federal regulations section 3.12. 16 9. "Utilization plan" shall mean a plan prepared by a contractor and 17 submitted in connection with a proposed state contract. The utilization 18 plan shall identify certified minority, honorably discharged veteran or EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD03604-02-7A. 6142 2 1 women-owned business enterprises, if known, that have committed to 2 perform work in connection with the proposed state contract as well as 3 any such enterprises, if known, which the contractor intends to use in 4 connection with the contractor's performance of the proposed state 5 contract. The plan shall specifically contain a list, including the 6 name, address and telephone number, of each certified enterprise with 7 which the contractor intends to subcontract. 8 24. "Honorably discharged veteran owned business enterprise" shall 9 mean a business enterprise, including a sole proprietorship, partnership 10 or corporation that is: 11 (a) at least fifty-one percent owned by one or more United States 12 citizens or permanent resident aliens who are honorably discharged 13 veterans; 14 (b) an enterprise in which the ownership interest of such honorably 15 discharged veterans is real, substantial and continuing; 16 (c) an enterprise in which such honorably discharged veteran's owner- 17 ship has and exercises the authority to control independently the day- 18 to-day business decisions of the enterprise; 19 (d) an enterprise authorized to do business in this state and inde- 20 pendently owned and operated. 21 (e) Honorably discharged veteran shall mean a person who served in the 22 active military, naval, or air service during a period of war as defined 23 in paragraph (f) of this subdivision, or who was a recipient of the 24 armed forces expeditionary medal, navy expeditionary medal, marine corps 25 expeditionary medal, or global war on terrorism expeditionary medal, and 26 who was discharged or released therefrom under other than dishonorable 27 conditions, as documented according to rules and regulations of the 28 division of military and naval affairs. 29 (f) For the purposes of this article, service during time of war is 30 defined by section 3.2 of title 38 of the code of federal regulations. 31 § 4. Subdivision 1 and paragraphs (a), (d), (e) and (f) of subdivision 32 3 of section 311 of the executive law, subdivision 1 and paragraphs (d) 33 and (e) of subdivision 3 as amended by chapter 55 of the laws of 1992 34 and paragraphs (a) and (f) of subdivision 3 as added by chapter 261 of 35 the laws of 1988, are amended to read as follows: 36 1. The head of the division of minority and women's business develop- 37 ment shall be the director who shall be appointed by the governor and 38 hold office at the pleasure of the commissioner. It shall be the duty of 39 the director of the division of minority and women's business develop- 40 ment to assist the governor in the formulation and implementation of 41 laws and policies relating to minority, honorably discharged veteran and 42 women-owned business enterprises. 43 (a) to encourage and assist contracting agencies in their efforts to 44 increase participation by minority, honorably discharged veteran and 45 women-owned business enterprises on state contracts and subcontracts so 46 as to facilitate the award of a fair share of such contracts to them; 47 (d) to review periodically the practices and procedures of each 48 contracting agency with respect to compliance with the provisions of 49 this article, and to require them to file periodic reports with the 50 division of minority and women's business development as to the level of 51 minority, honorably discharged veteran and women-owned business enter- 52 prises participation in the awarding of agency contracts for goods and 53 services; 54 (e) on January first of each year report to the governor and the 55 chairpersons of the senate finance and assembly ways and means commit- 56 tees on the level of minority, honorably discharged veteran and women-A. 6142 3 1 owned business enterprises participating in each agency's contracts for 2 goods and services and on activities of the office and effort by each 3 contracting agency to promote employment of minority group members, 4 honorably discharged veterans and women, and to promote and increase 5 participation by certified businesses with respect to state contracts 6 and subcontracts so as to facilitate the award of a fair share of state 7 contracts to such businesses. The comptroller shall assist the division 8 in collecting information on the participation of certified business for 9 each contracting agency. Such report may recommend new activities and 10 programs to effectuate the purposes of this article; 11 (f) to prepare and update periodically a directory of certified minor- 12 ity, honorably discharged veteran and women-owned business enterprises 13 which shall, wherever practicable, be divided into categories of labor, 14 services, supplies, equipment, materials and recognized construction 15 trades and which shall indicate areas or locations of the state where 16 such enterprises are available to perform services; 17 § 5. Section 313 of the executive law, as amended by chapter 175 of 18 the laws of 2010, is amended to read as follows: 19 § 313. Opportunities for minority, honorably discharged veteran and 20 women-owned business enterprises. 1. Goals and requirements for agencies 21 and contractors. Each agency shall structure procurement procedures for 22 contracts made directly or indirectly to minority, honorably discharged 23 veteran and women-owned business enterprises, in accordance with the 24 findings of the two thousand ten disparity study, consistent with the 25 purposes of this article, to attempt to achieve the following results 26 with regard to total annual statewide procurement: 27 (a) construction industry for certified minority-owned business enter- 28 prises: fourteen and thirty-four hundredths percent; 29 (b) construction industry for certified women-owned business enter- 30 prises: eight and forty-one hundredths percent; 31 (c) construction related professional services industry for certified 32 minority-owned business enterprises: thirteen and twenty-one hundredths 33 percent; 34 (d) construction related professional services industry for certified 35 women-owned business enterprises: eleven and thirty-two hundredths 36 percent; 37 (e) non-construction related services industry for certified minori- 38 ty-owned business enterprises: nineteen and sixty hundredths percent; 39 (f) non-construction related services industry for certified women- 40 owned business enterprises: seventeen and forty-four hundredths percent; 41 (g) commodities industry for certified minority-owned business enter- 42 prises: sixteen and eleven hundredths percent; 43 (h) commodities industry for certified women-owned business enter- 44 prises: ten and ninety-three hundredths percent; 45 (i) overall agency total dollar value of procurement for certified 46 minority-owned business enterprises: sixteen and fifty-three hundredths 47 percent; 48 (j) overall agency total dollar value of procurement for certified 49 women-owned business enterprises: twelve and thirty-nine hundredths 50 percent; and 51 (k) overall agency total dollar value of procurement for certified 52 minority, women-owned business enterprises: twenty-eight and ninety-two 53 hundredths percent. 54 1-a. The director shall ensure that each state agency has been 55 provided with a copy of the two thousand ten disparity study.A. 6142 4 1 1-b. Each agency shall develop and adopt agency-specific goals based 2 on the findings of the two thousand ten disparity study. 3 2. The director shall promulgate rules and regulations pursuant to the 4 goals established in subdivision one of this section that provide meas- 5 ures and procedures to ensure that certified minority, honorably 6 discharged veteran and women-owned businesses shall be given the oppor- 7 tunity for maximum feasible participation in the performance of state 8 contracts and to assist in the agency's identification of those state 9 contracts for which minority, honorably discharged veteran and women- 10 owned certified businesses may best bid to actively and affirmatively 11 promote and assist their participation in the performance of state 12 contracts so as to facilitate the agency's achievement of the maximum 13 feasible portion of the goals for state contracts to such businesses. 14 2-a. The director shall promulgate rules and regulations that will 15 accomplish the following: 16 (a) provide for the certification and decertification of minority, 17 honorably discharged veteran and women-owned business enterprises for 18 all agencies through a single process that meets applicable require- 19 ments; 20 (b) require that each contract solicitation document accompanying each 21 solicitation set forth the expected degree of minority, honorably 22 discharged veteran and women-owned business enterprise participation 23 based, in part, on: 24 (i) the potential subcontract opportunities available in the prime 25 procurement contract; and 26 (ii) the availability, as contained within the study, of certified 27 minority, honorably discharged veteran and women-owned business enter- 28 prises to respond competitively to the potential subcontract opportu- 29 nities; 30 (c) require that each agency provide a current list of certified 31 minority business enterprises to each prospective contractor; 32 (d) allow a contractor that is a certified minority-owned, honorably 33 discharged veteran-owned or women-owned business enterprise to use the 34 work it performs to meet requirements for use of certified minority- 35 owned, honorably discharged veteran-owned or women-owned business enter- 36 prises as subcontractors; 37 (e) provide for joint ventures, which a bidder may count toward meet- 38 ing its minority, honorably discharged veteran and women-owned business 39 enterprise participation; 40 (f) consistent with subdivision six of this section, provide for 41 circumstances under which an agency may waive obligations of the 42 contractor relating to minority, honorably discharged veteran and 43 women-owned business enterprise participation; 44 (g) require that an agency verify that minority, honorably discharged 45 veteran and women-owned business enterprises listed in a successful bid 46 are actually participating to the extent listed in the project for which 47 the bid was submitted; 48 (h) provide for the collection of statistical data by each agency 49 concerning actual minority, honorably discharged veteran and women-owned 50 business enterprise participation; and 51 (i) require each agency to consult the most current disparity study 52 when calculating agency-wide and contract specific participation goals 53 pursuant to this article. 54 3. Solely for the purpose of providing the opportunity for meaningful 55 participation by certified businesses in the performance of state 56 contracts as provided in this section, state contracts shall includeA. 6142 5 1 leases of real property by a state agency to a lessee where: the terms 2 of such leases provide for the construction, demolition, replacement, 3 major repair or renovation of real property and improvements thereon by 4 such lessee; and the cost of such construction, demolition, replacement, 5 major repair or renovation of real property and improvements thereon 6 shall exceed the sum of one hundred thousand dollars. Reports to the 7 director pursuant to section three hundred fifteen of this article shall 8 include activities with respect to all such state contracts. Contracting 9 agencies shall include or require to be included with respect to state 10 contracts for the acquisition, construction, demolition, replacement, 11 major repair or renovation of real property and improvements thereon, 12 such provisions as may be necessary to effectuate the provisions of this 13 section in every bid specification and state contract, including, but 14 not limited to: (a) provisions requiring contractors to make a good 15 faith effort to solicit active participation by enterprises identified 16 in the directory of certified businesses provided to the contracting 17 agency by the office; (b) requiring the parties to agree as a condition 18 of entering into such contract, to be bound by the provisions of section 19 three hundred sixteen of this article; and (c) requiring the contractor 20 to include the provisions set forth in paragraphs (a) and (b) of this 21 subdivision in every subcontract in a manner that the provisions will be 22 binding upon each subcontractor as to work in connection with such 23 contract. Provided, however, that no such provisions shall be binding 24 upon contractors or subcontractors in the performance of work or the 25 provision of services that are unrelated, separate or distinct from the 26 state contract as expressed by its terms, and nothing in this section 27 shall authorize the director or any contracting agency to impose any 28 requirement on a contractor or subcontractor except with respect to a 29 state contract. 30 4. In the implementation of this section, the contracting agency shall 31 (a) consult the findings contained within the disparity study evidencing 32 relevant industry specific availability of certified businesses; 33 (b) implement a program that will enable the agency to evaluate each 34 contract to determine the appropriateness of the goal pursuant to subdi- 35 vision one of this section; 36 (c) consider where practicable, the severability of construction 37 projects and other bundled contracts; and 38 (d) consider compliance with the requirements of any federal law 39 concerning opportunities for minority, honorably discharged veteran and 40 women-owned business enterprises which effectuates the purpose of this 41 section. The contracting agency shall determine whether the imposition 42 of the requirements of any such law duplicate or conflict with the 43 provisions hereof and if such duplication or conflict exists, the 44 contracting agency shall waive the applicability of this section to the 45 extent of such duplication or conflict. 46 5. (a) Contracting agencies shall administer the rules and regulations 47 promulgated by the director in a good faith effort to meet the maximum 48 feasible portion of the agency's goals adopted pursuant to this article 49 and the regulations of the director. Such rules and regulations: shall 50 require a contractor to submit a utilization plan after bids are opened, 51 when bids are required, but prior to the award of a state contract; 52 shall require the contracting agency to review the utilization plan 53 submitted by the contractor and to post the utilization plan and any 54 waivers of compliance issued pursuant to subdivision six of this section 55 on the website of the contracting agency within a reasonable period of 56 time as established by the director; shall require the contracting agen-A. 6142 6 1 cy to notify the contractor in writing within a period of time specified 2 by the director as to any deficiencies contained in the contractor's 3 utilization plan; shall require remedy thereof within a period of time 4 specified by the director; shall require the contractor to submit peri- 5 odic compliance reports relating to the operation and implementation of 6 any utilization plan; shall not allow any automatic waivers but shall 7 allow a contractor to apply for a partial or total waiver of the minori- 8 ty, honorably discharged veteran and women-owned business enterprise 9 participation requirements pursuant to subdivisions six and seven of 10 this section; shall allow a contractor to file a complaint with the 11 director pursuant to subdivision eight of this section in the event a 12 contracting agency has failed or refused to issue a waiver of the minor- 13 ity, honorably discharged veteran and women-owned business enterprise 14 participation requirements or has denied such request for a waiver; and 15 shall allow a contracting agency to file a complaint with the director 16 pursuant to subdivision nine of this section in the event a contractor 17 is failing or has failed to comply with the minority, honorably 18 discharged veteran and women-owned business enterprise participation 19 requirements set forth in the state contract where no waiver has been 20 granted. 21 (b) The rules and regulations promulgated pursuant to this subdivision 22 regarding a utilization plan shall provide that where enterprises have 23 been identified within a utilization plan, a contractor shall attempt, 24 in good faith, to utilize such enterprise at least to the extent indi- 25 cated. A contracting agency may require a contractor to indicate, within 26 a utilization plan, what measures and procedures he or she intends to 27 take to comply with the provisions of this article, but may not require, 28 as a condition of award of, or compliance with, a contract that a 29 contractor utilize a particular enterprise in performance of the 30 contract. 31 (c) Without limiting other grounds for the disqualification of bids or 32 proposals on the basis of non-responsibility, a contracting agency may 33 disqualify the bid or proposal of a contractor as being non-responsible 34 for failure to remedy notified deficiencies contained in the contrac- 35 tor's utilization plan within a period of time specified in regulations 36 promulgated by the director after receiving notification of such defi- 37 ciencies from the contracting agency. Where failure to remedy any noti- 38 fied deficiency in the utilization plan is a ground for disqualifica- 39 tion, that issue and all other grounds for disqualification shall be 40 stated in writing by the contracting agency. Where the contracting agen- 41 cy states that a failure to remedy any notified deficiency in the utili- 42 zation plan is a ground for disqualification the contractor shall be 43 entitled to an administrative hearing, on a record, involving all 44 grounds stated by the contracting agency. Such hearing shall be 45 conducted by the appropriate authority of the contracting agency to 46 review the determination of disqualification. A final administrative 47 determination made following such hearing shall be reviewable in a 48 proceeding commenced under article seventy-eight of the civil practice 49 law and rules, provided that such proceeding is commenced within thirty 50 days of the notice given by certified mail return receipt requested 51 rendering such final administrative determination. Such proceeding shall 52 be commenced in the supreme court, appellate division, third department 53 and such proceeding shall be preferred over all other civil causes 54 except election causes, and shall be heard and determined in preference 55 to all other civil business pending therein, except election matters, 56 irrespective of position on the calendar. Appeals taken to the court ofA. 6142 7 1 appeals of the state of New York shall be subject to the same prefer- 2 ence. 3 6. Where it appears that a contractor cannot, after a good faith 4 effort, comply with the minority, honorably discharged veteran and 5 women-owned business enterprise participation requirements set forth in 6 a particular state contract, a contractor may file a written application 7 with the contracting agency requesting a partial or total waiver of such 8 requirements setting forth the reasons for such contractor's inability 9 to meet any or all of the participation requirements together with an 10 explanation of the efforts undertaken by the contractor to obtain the 11 required minority, honorably discharged veteran and women-owned business 12 enterprise participation. In implementing the provisions of this 13 section, the contracting agency shall consider the number and types of 14 minority, honorably discharged veteran and women-owned business enter- 15 prises located in the region in which the state contract is to be 16 performed, the total dollar value of the state contract, the scope of 17 work to be performed and the project size and term. If, based on such 18 considerations, the contracting agency determines there is not a reason- 19 able availability of contractors on the list of certified business to 20 furnish services for the project, it shall issue a waiver of compliance 21 to the contractor. In making such determination, the contracting agency 22 shall first consider the availability of other business enterprises 23 located in the region and shall thereafter consider the financial abili- 24 ty of minority, honorably discharged veteran and women-owned businesses 25 located outside the region in which the contract is to be performed to 26 perform the state contract. 27 7. For purposes of determining a contractor's good faith effort to 28 comply with the requirements of this section or to be entitled to a 29 waiver therefrom the contracting agency shall consider: 30 (a) whether the contractor has advertised in general circulation 31 media, trade association publications, and minority-focus, veteran-focus 32 and women-focus media and, in such event, (i) whether or not certified 33 minority, honorably discharged veteran or women-owned businesses which 34 have been solicited by the contractor exhibited interest in submitting 35 proposals for a particular project by attending a pre-bid conference; 36 and 37 (ii) whether certified businesses which have been solicited by the 38 contractor have responded in a timely fashion to the contractor's solic- 39 itations for timely competitive bid quotations prior to the contracting 40 agency's bid date; and 41 (b) whether there has been written notification to appropriate certi- 42 fied businesses that appear in the directory of certified businesses 43 prepared pursuant to paragraph (f) of subdivision three of section three 44 hundred eleven of this article; and 45 (c) whether the contractor can reasonably structure the amount of work 46 to be performed under subcontracts in order to increase the likelihood 47 of participation by certified businesses. 48 8. In the event that a contracting agency fails or refuses to issue a 49 waiver to a contractor as requested within twenty days after having made 50 application therefor pursuant to subdivision six of this section or if 51 the contracting agency denies such application, in whole or in part, the 52 contractor may file a complaint with the director pursuant to section 53 three hundred sixteen of this article setting forth the facts and 54 circumstances giving rise to the contractor's complaint together with a 55 demand for relief. The contractor shall serve a copy of such complaint 56 upon the contracting agency by personal service or by certified mail,A. 6142 8 1 return receipt requested. The contracting agency shall be afforded an 2 opportunity to respond to such complaint in writing. 3 9. If, after the review of a contractor's minority, honorably 4 discharged veteran and women owned business utilization plan or review 5 of a periodic compliance report and after such contractor has been 6 afforded an opportunity to respond to a notice of deficiency issued by 7 the contracting agency in connection therewith, it appears that a 8 contractor is failing or refusing to comply with the minority, honorably 9 discharged veteran and women-owned business participation requirements 10 as set forth in the state contract and where no waiver from such 11 requirements has been granted, the contracting agency may file a written 12 complaint with the director pursuant to section three hundred sixteen of 13 this article setting forth the facts and circumstances giving rise to 14 the contracting agency's complaint together with a demand for relief. 15 The contracting agency shall serve a copy of such complaint upon the 16 contractor by personal service or by certified mail, return receipt 17 requested. The contractor shall be afforded an opportunity to respond to 18 such complaint in writing. 19 § 6. Section 317 of the executive law, as added by chapter 261 of the 20 laws of 1988, is amended to read as follows: 21 § 317. Superseding effect of article with respect to state law. The 22 provisions of this article shall supersede any other provision of state 23 law, which expressly implements or mandates an equal employment opportu- 24 nity program or a program for securing participation by minority, honor- 25 ably discharged veteran and women-owned business enterprises, concerning 26 action to be taken by any party to a state contract, to which the 27 provisions of this article apply; provided, however, that the provisions 28 of any state law, not as hereinabove superseded, which expressly imple- 29 ment or mandate such programs shall remain unimpaired by the provisions 30 of this article, except that the provisions of any such law shall be 31 construed as if the provisions of subdivisions five, six, seven and 32 eight of section three hundred thirteen and section three hundred 33 sixteen of this article were fully set forth therein and made applicable 34 only to complaints of violations under such provisions of law occurring 35 on or after September first, nineteen hundred eighty-eight; provided, 36 further, that nothing contained in this article shall be construed to 37 limit, impair, or otherwise restrict any state agency's authority or 38 discretionary power in effect prior to the enactment of this article to 39 establish or continue, by rule, regulation or resolution, an equal 40 opportunity program or a program for securing participation of minority, 41 honorably discharged veteran and women-owned business enterprises with 42 regard to banking relationships, the issuance of insurance policies or 43 contracts for the sale of bonds, notes or other securities; and, 44 provided further, that nothing contained in the immediately preceding 45 proviso shall be construed to create, impair, alter, limit, modify, 46 enlarge, abrogate or restrict any agency's authority or discretionary 47 power with respect to an equal opportunity program or a program for 48 securing participation of minority, honorably discharged veteran and 49 women-owned enterprises. 50 § 7. Section 136-b of the state finance law, as added by chapter 261 51 of the laws of 1988, is amended to read as follows: 52 § 136-b. Selection of underwriters by state agencies. Whenever a state 53 agency, as defined in article fifteen-A of the executive law, sells its 54 bonds, notes or other securities at a private sale, in selecting one or 55 more underwriters to purchase such securities the state agency shall 56 consider, among other things, the participation of firms certifiedA. 6142 9 1 pursuant to such article as minority, honorably discharged veteran or 2 women-owned firms and the ability of other firms under consideration to 3 work with minority, honorably discharged veteran and women-owned busi- 4 ness enterprises so as to promote and assist participation by such 5 enterprises. 6 § 8. Paragraphs (b) and (d) of subdivision 2 of section 139-i of the 7 state finance law, as amended by chapter 531 of the laws of 1993, are 8 amended to read as follows: 9 (b) include in all bid documents provided to potential bidders a 10 statement that information concerning the availability of New York state 11 subcontractors and suppliers is available from the New York state 12 department of economic development, which shall include the directory of 13 certified minority and women-owned businesses, and it is the policy of 14 New York state to encourage the use of New York state subcontractors and 15 suppliers, and to promote the participation of minority, honorably 16 discharged veteran and women-owned businesses, where possible, in the 17 procurement of goods and services. 18 (d) adopt policies to promote the participation by New York state 19 business enterprises and New York state residents in procurement 20 contracts, with the cooperation of the department of economic develop- 21 ment and the community services division of the department of labor 22 including, but not limited to, providing through cooperative efforts 23 with contractors for the notification of New York state business enter- 24 prises of opportunities to participate as subcontractors and suppliers 25 on procurement contracts in an amount estimated to be equal to or great- 26 er than one million dollars and for the notification of New York state 27 residents of employment opportunities arising in New York state out of 28 procurement contracts in an amount estimated to be equal to or greater 29 than one million dollars; and promulgating procedures which will assure 30 compliance by contractors with such notification. Once awarded the 31 contract, such contractors shall document their efforts to encourage the 32 participation of New York state business enterprises as suppliers and 33 subcontractors on procurement contracts equal to or greater than one 34 million dollars. Documented efforts by a successful contractor shall 35 consist of and be limited to showing that such contractor has [(a)] (i) 36 solicited bids, in a timely and adequate manner, from New York state 37 business enterprises including certified minority, honorably discharged 38 veteran and women-owned business, or [(b)] (ii) contacted the New York 39 state department of economic development to obtain listings of New York 40 state business enterprises, or [(c)] (iii) placed notices for subcon- 41 tractors and suppliers in newspapers, journals and other trade publica- 42 tions distributed in New York state, or [(d)] (iv) participated in 43 bidder outreach conferences. If the contractor determines that New York 44 state business enterprises are not available to participate on the 45 contract as subcontractors or suppliers, the contractor shall provide a 46 statement indicating the method by which such determination was made. If 47 the contractor does not intend to use subcontractors on the contract, 48 the contractor shall provide a statement verifying such intent. Such 49 contractors shall also provide notification to New York state residents 50 of employment opportunities through listing any such positions with the 51 community services division, or providing for such notification in such 52 manner as is consistent with existing collective bargaining contracts or 53 agreements. On or before the effective date of this section, each state 54 agency or department shall submit such policies to the division of the 55 budget and copies thereof to the department of audit and control, theA. 6142 10 1 department of economic development, the senate finance committee and the 2 assembly ways and means committee. 3 § 9. Subdivision 5, paragraph (e) of subdivision 11, paragraph (e) of 4 subdivision 12 and paragraph (a) of subdivision 16 of section 213 of the 5 state finance law, subdivision 5, paragraph (e) of subdivision 11 and 6 paragraph (e) of subdivision 12 as added by chapter 705 of the laws of 7 1993 and paragraph (a) of subdivision 16 as amended by section 2 of part 8 HH of chapter 59 of the laws of 2013, are amended to read as follows: 9 5. "Certified [minority-] minority, honorably discharged veteran or 10 women-owned business" means any [minority-] minority, honorably 11 discharged veteran or women-owned business enterprise as defined in 12 section three hundred ten of the executive law and certified pursuant to 13 section three hundred fourteen of the executive law. 14 (e) any certified [minority-] minority, honorably discharged veteran 15 or women-owned business seeking financing necessary to carry out a 16 procurement contract with an agency or authority or other entity of the 17 state or federal government; or 18 (e) for certified [minority-] minority, honorably discharged veteran 19 and women-owned businesses, projects to provide financing necessary to 20 carry out a procurement contract with an agency or authority or other 21 entity of the state or federal government. 22 (a) for a linked deposit made in connection with a linked loan to a 23 certified business in an empire zone or to an eligible business located 24 in a highly distressed area or to an eligible business that is defined 25 in paragraph (b-1) of subdivision eleven of this section that is located 26 in a renewal community or defined in paragraph (b-2) of such subdivision 27 that is located in an empowerment zone or defined in paragraph (b-3) of 28 such subdivision that is located in an enterprise community, or a quali- 29 fying technology or innovation business as defined in paragraph (g) of 30 subdivision eleven of this section, respectively for eligible projects 31 defined in paragraph (c) of subdivision twelve of this section or a 32 certified [minority-] minority, honorably discharged veteran or women- 33 owned business enterprise for an eligible project defined in paragraph 34 (e) of subdivision twelve of this section or to a defense industry 35 manufacturer for a project defined in paragraph (d) of subdivision 36 twelve of this section, a fixed rate of interest which is three hundred 37 basis points below the lender's posted four year certificate of deposit 38 rate or, if the lender does not offer a four year certificate of depos- 39 it, is three hundred basis points below the average statewide rate for 40 four year certificates of deposit as determined by the commissioner of 41 economic development; 42 § 10. Subdivision 1 of section 218 of the state finance law, as 43 amended by section 1 of part U of chapter 58 of the laws of 2012, is 44 amended to read as follows: 45 1. Linked loans made to certified businesses in empire zones or to 46 eligible businesses in highly distressed areas or to eligible businesses 47 that are defined in paragraph (b-1) of subdivision eleven of section two 48 hundred thirteen of this article that are located in a renewal community 49 or defined in paragraph (b-2) of such subdivision that are located in an 50 empowerment zone or defined in paragraph (b-3) of such subdivision that 51 are located in an enterprise community, respectively for eligible 52 projects defined in paragraph (c) of subdivision twelve of section two 53 hundred thirteen of this article or to [minority-] minority, honorably 54 discharged veteran or women-owned business enterprises for an eligible 55 project defined in paragraph (e) of subdivision twelve of section two 56 hundred thirteen of this article or to a defense industry manufacturerA. 6142 11 1 for a project defined in paragraph (d) of subdivision twelve of section 2 two hundred thirteen of this article or to an eligible business pursuant 3 to paragraph (a) of subdivision eleven of section two hundred thirteen 4 of this article that produces products defined in subdivision two of 5 section three hundred one of the agriculture and markets law for an 6 eligible project as defined in paragraph (b) of subdivision twelve of 7 section two hundred thirteen of this article shall bear interest at a 8 fixed rate equal to three percentage points below the fixed interest 9 rate the lender would have charged for the loan in the absence of a 10 linked deposit based on its usual credit considerations. All other 11 linked loans shall bear interest at a fixed rate equal to two percentage 12 points below the fixed interest rate the lender would have charged for 13 the loan in the absence of a linked deposit based on its usual credit 14 considerations. Lenders shall certify to the commissioner of economic 15 development that the rate to be charged on a linked loan is two percent- 16 age points or three percentage points, as the case may be, below the 17 interest rate the lender would have charged for the loan in the absence 18 of a linked deposit. 19 § 11. Paragraph (c) of subdivision 12 of section 3.07 of the arts and 20 cultural affairs law, as amended by chapter 255 of the laws of 1988, is 21 amended to read as follows: 22 (c) (i) In the performance of projects pursuant to this section, 23 minority, honorably discharged veteran and women-owned business enter- 24 prises shall be given the opportunity for meaningful participation. For 25 purposes hereof, minority business enterprise shall mean any business 26 enterprise which is at least fifty-one per centum owned by, or in the 27 case of a publicly owned business, at least fifty-one per centum of the 28 stock or other voting interest is owned by citizens or permanent resi- 29 dent aliens who are Black, Hispanic, Asian, American Indian, Pacific 30 Islander, or Alaskan native, and such ownership interest is real, 31 substantial and continuing and has the authority to independently 32 control the day to day business decisions of the entity for at least one 33 year; honorably discharged veteran owned business enterprise shall mean 34 the same as provided in subdivision twenty-four of section three hundred 35 ten of the executive law; and women-owned business enterprise shall mean 36 any business enterprise which is at least fifty-one per centum owned by, 37 or in the case of a publicly owned business, at least fifty-one per 38 centum of the stock to other voting interests of which is owned by citi- 39 zens or permanent resident aliens who are women, and such ownership 40 interest is real, substantial and continuing and has the authority to 41 independently control the day to day business decisions of the entity 42 for at least one year. 43 The provisions of this subdivision shall not be construed to limit the 44 ability of any minority business enterprise to bid on any contract. 45 (ii) In order to implement the requirements and objectives of this 46 section, the council shall request, as appropriate, the assistance of 47 other state agencies to monitor the contractors' compliance with 48 provisions hereof, provide assistance in obtaining competing qualified 49 minority, honorably discharged veteran and women-owned business enter- 50 prises to perform contracts proposed to be awarded, and take other 51 appropriate measures to improve the access of minority, honorably 52 discharged veteran and women-owned business enterprises to these 53 contracts. 54 § 12. Subdivision 2 of section 115 of the economic development law, as 55 added by chapter 55 of the laws of 1992, is amended to read as follows:A. 6142 12 1 2. "Technical assistance" shall mean assistance and services designed 2 to improve the efficiency, effectiveness and viability of a minority, 3 honorably discharged veteran or women-owned business enterprise, includ- 4 ing, but not limited to, management assistance, problem solving, the 5 development of business and marketing plans, market analysis, financial 6 planning, regulatory compliance, safety and security measures, export 7 assistance, procurement assistance, application assistance, state 8 program assistance, referral to private and public financing sources, 9 contracting assistance, and other forms of assistance which the commis- 10 sioner deems necessary and appropriate. 11 § 13. Section 118 of the economic development law, as added by chapter 12 55 of the laws of 1992 and subdivision 7 as further amended by section 13 15 of part GG of chapter 63 of the laws of 2000, is amended to read as 14 follows: 15 § 118. Power and duties. In addition to the power and duties conferred 16 by section one hundred sixteen of this article, the division shall have 17 the additional power and duty to: 18 1. Coordinate with all state agencies performing functions affecting 19 the operations of minority business enterprises, honorably discharged 20 veteran owned business enterprises and women-owned business enterprises, 21 as such terms are defined in section two hundred ten of this chapter; 22 2. Receive complaints and inquiries of operators of minority, honor- 23 ably discharged veteran and women-owned business enterprises and refer 24 them to the appropriate federal, state or local agency for appropriate 25 action on such complaints; 26 3. Solicit recommendations from the operators of minority, honorably 27 discharged veteran and women-owned business enterprises for improving 28 existing state programs and refer such recommendations to the governor, 29 the legislature and appropriate state agencies or authorities; 30 4. Advise and make recommendations to the commissioner and the legis- 31 lature on matters affecting the minority, honorably discharged veteran 32 and women-owned business enterprises of the state and promote and 33 encourage the protection of the legitimate interests of minority, honor- 34 ably discharged veteran and women-owned business enterprises within the 35 state; 36 5. Conduct investigations, research, studies and analyses of matters 37 affecting the interests of minority, honorably discharged veteran and 38 women-owned business enterprises; 39 6. Study the implementation of the laws affecting minority, honorably 40 discharged veteran and women-owned business enterprises and recommend to 41 the commissioner new laws and amendments of laws for the benefit of 42 minority, honorably discharged veteran and women-owned business enter- 43 prises; and review pending legislation affecting minority, honorably 44 discharged veteran and women-owned business enterprises and report its 45 findings to the commissioner; 46 7. Provide technical assistance and information to minority, honorably 47 discharged veteran and women-owned business enterprises in the state on 48 economic development programs administered by the department, including, 49 but not limited to: (a) the empire zones program, established pursuant 50 to article eighteen-B of the general municipal law, (b) the industrial 51 effectiveness program, established pursuant to article seven of this 52 chapter, (c) the economic development skills training program, estab- 53 lished pursuant to article eight of this chapter, and (d) the entrepre- 54 neurial assistance program, established pursuant to article nine of this 55 chapter;A. 6142 13 1 8. Provide technical assistance and information to minority, honorably 2 discharged veteran and women-owned business enterprises in the state on 3 economic development programs administered by agencies other than the 4 department, including, but not limited to programs administered by the 5 urban development corporation, the job development authority and the 6 science and technology foundation; 7 9. Be responsible for conducting minority, honorably discharged veter- 8 an and women-owned business enterprise assistance programs and for coor- 9 dinating the activities of all other state agencies acting within the 10 scope of this section; and 11 10. Carry out the activities to implement the minority, honorably 12 discharged veteran and women-owned business enterprise assistance 13 programs, to the extent practicable, within amounts appropriated there- 14 for by[;]: 15 (a) collecting and maintaining information identifying certified 16 minority, honorably discharged veteran and women-owned business enter- 17 prises within New York state; 18 (b) collecting, maintaining, and providing information to potential 19 users identifying existing contracting and procurement opportunities 20 within and outside New York state; 21 (c) maintaining, providing and marketing a compilation of existing 22 programs providing assistance for minority, honorably discharged veteran 23 and women-owned business enterprises; 24 (d) identifying special needs and problems facing minority, honorably 25 discharged veteran and women-owned business enterprises within New York 26 state; 27 (e) contacting institutions, organizations and commercial enterprises 28 that are potential consumers of minority, honorably discharged veteran 29 and women-owned business products and services; urging their expanded 30 consumption of such goods and services; 31 (f) facilitating the establishment of minority, honorably discharged 32 veteran and women-owned business enterprises; and 33 (g) providing information concerning local and regional opportunities 34 for minority, honorably discharged veteran and women-owned business 35 enterprises. 36 § 14. Section 210 of the economic development law is amended by 37 adding a new subdivision 7 to read as follows: 38 7. "Honorably discharged veteran owned business enterprise" means the 39 same as defined in subdivision twenty-four of section three hundred ten 40 of the executive law. 41 § 15. Paragraphs (b) and (i) of subdivision 1 of section 231 of the 42 economic development law, as amended by chapter 352 of the laws of 2009, 43 are amended to read as follows: 44 (b) to provide outreach to businesses, with attention to small and 45 medium-sized businesses, including minority, honorably discharged veter- 46 an and women-owned business enterprises, for financial and technical 47 assistance offered by state economic development agencies, authorities, 48 or other economic entities; 49 (i) to provide information and assistance in the certification of 50 minority, honorably discharged veteran and women-owned business enter- 51 prises; 52 § 16. Section 52-0113 of the environmental conservation law, as added 53 by chapter 512 of the laws of 1986, is amended to read as follows: 54 § 52-0113. Minority, honorably discharged veteran and women-owned busi- 55 ness enterprise program.A. 6142 14 1 1. a. In the performance of projects pursuant to this article 2 minority, honorably discharged veteran and women-owned business enter- 3 prises shall be given the opportunity for meaningful participation. The 4 department or the office shall establish measures and procedures to 5 secure meaningful participation and identify those contracts and items 6 of work for which minority, honorably discharged veteran and women-owned 7 business enterprises may best bid to actively and affirmatively promote 8 and assist their participation in the projects, so as to facilitate the 9 award of a fair share of contracts to such enterprises; provided, howev- 10 er, that nothing in this article shall be construed to limit the ability 11 of the department or office to assure that qualified minority, honorably 12 discharged veteran and women-owned business enterprises may participate 13 in the program. 14 For purposes [hereof] of this article, minority business enterprise 15 shall mean any business enterprise which is at least fifty-one per 16 centum owned by, or in the case of a publicly owned business, at least 17 fifty-one per centum of the stock of which is owned by citizens or 18 permanent resident aliens who are Black, Hispanic, Asian or American 19 Indian, Pacific Islander or Alaskan natives and such ownership interest 20 is real, substantial and continuing and have the authority to independ- 21 ently control the day to day business decisions of the entity for at 22 least one year; honorably discharged veteran owned business enterprise 23 shall mean the same as defined in subdivision twenty-four of section 24 three hundred ten of the executive law; and women-owned business enter- 25 prise shall mean any business enterprise which is at least fifty-one per 26 centum owned by, or in the case of a publicly owned business, at least 27 fifty-one per centum of the stock of which is owned by citizens or 28 permanent resident aliens who are women, and such ownership interest is 29 real, substantial and continuing and have the authority to independently 30 control the day to day business decisions of the entity for at least one 31 year. 32 The provisions of this paragraph shall not be construed to limit the 33 ability of any minority, honorably discharged veteran or women-owned 34 business enterprise to bid on any contract. 35 b. In the implementation of this section, the department or the office 36 shall consider compliance by any contractor with the requirements of any 37 federal, state, or local law concerning minority, honorably discharged 38 veteran and women-owned business enterprises, which may effectuate the 39 requirements of this section. If the department or the office determines 40 that by virtue of the imposition of the requirements of any such law, in 41 respect to capital project contracts, the provisions thereof duplicate 42 or conflict with such law, the department may waive the applicability of 43 this section to the extent of such duplication or conflict. 44 c. Nothing in this section shall be deemed to require that overall 45 state and federal requirements for participation of minority, honorably 46 discharged veteran and women-owned business enterprises in programs 47 authorized under this article be applied without regard to local circum- 48 stances to all projects or in all communities. 49 2. In order to implement the requirements and objectives of this 50 section, the department and the office shall establish procedures to 51 monitor the contractors' compliance with provisions hereof, provide 52 assistance in obtaining competing qualified minority, honorably 53 discharged veteran and women-owned business enterprises to perform 54 contracts proposed to be awarded, and take other appropriate measures to 55 improve the access of minority, honorably discharged veteran and women- 56 owned business enterprises to these contracts.A. 6142 15 1 § 17. Subparagraph (i) of paragraph (b), the opening paragraph of 2 paragraph (c), paragraphs (i) and (j) and subparagraphs (ii) and (iii) 3 of paragraph (n) of subdivision 3 of section 2879 of the public authori- 4 ties law, subparagraph (i) of paragraph (b) as amended, paragraphs (i) 5 and (j) as added, and subparagraphs (ii) and (iii) of paragraph (n) as 6 relettered by chapter 174 of the laws of 2010 and the opening paragraph 7 of paragraph (c) as amended by chapter 564 of the laws of 1988, are 8 amended and a new paragraph (e-1) is added to read as follows: 9 (i) for the selection of such contractors on a competitive basis, and 10 provisions relating to the circumstances under which the board may by 11 resolution waive competition, including, notwithstanding any other 12 provision of law requiring competition, the purchase of goods or 13 services from small business concerns or those certified as minority, 14 honorably discharged veteran or women-owned business enterprises, or 15 goods or technology that are recycled or remanufactured, in an amount 16 not to exceed two hundred thousand dollars without a formal competitive 17 process; 18 An identification of those areas or types of contracts for which 19 minority, honorably discharged veteran or women-owned business enter- 20 prises may best bid so as to promote and assist participation by such 21 enterprises and facilitate a fair share of the awarding of contracts to 22 such enterprises. For the purposes of this section, a minority business 23 enterprise means any business enterprise, including a sole proprietor- 24 ship, partnership or corporation that is: 25 (e-1) For purposes of this section, "honorably discharged veteran 26 owned business enterprise" means the same as defined in subdivision 27 twenty-four of section three hundred ten of the executive law. 28 (i) The establishment of appropriate goals for participation by minor- 29 ity, honorably discharged veteran or women-owned business enterprises in 30 procurement contracts awarded by the corporation and for the utilization 31 of minority, honorably discharged veteran and women-owned enterprises as 32 subcontractors and suppliers by entities having procurement contracts 33 with the corporation. Statewide numerical participation target goals 34 shall be established by each authority based on the findings of the two 35 thousand ten disparity study. 36 (j) Requirements to conduct procurements in a manner that will enable 37 the corporation to achieve the maximum feasible portion of the goals 38 established pursuant to paragraph (i) of this subdivision and that elim- 39 inates barriers to participation by minority, honorably discharged 40 veteran and women-owned business enterprises in the corporation's 41 procurements. Such procurement requirements shall include the following: 42 (A) Measures and procedures to ensure that certified businesses shall 43 be given the opportunity for maximum feasible participation in the 44 performance of state contracts and to assist in the corporation's iden- 45 tification of those state contracts for which certified businesses may 46 best bid to actively and affirmatively promote and assist their partic- 47 ipation in the performance of state contracts so as to facilitate the 48 corporation's achievement of the maximum feasible portion of the goals 49 for state contracts to such businesses; 50 (B) Provisions designating the division of minority, honorably 51 discharged veteran and women-owned business development to certify and 52 decertify minority, honorably discharged veteran and women-owned busi- 53 ness enterprises for all corporations through a single process that 54 meets applicable state and federal requirements; 55 (C) A requirement that each contract solicitation document accompany- 56 ing each solicitation set forth the expected degree of minority, honor-A. 6142 16 1 ably discharged veteran and women-owned business enterprise partic- 2 ipation based, in part, on: 3 I. the potential subcontract opportunities available in the prime 4 procurement contract; and 5 II. the availability of certified minority, honorably discharged 6 veteran and women-owned business enterprises to respond competitively to 7 the potential subcontract opportunities; 8 (D) A requirement that each corporation provide a current list of 9 certified minority business enterprises to each prospective contractor; 10 (E) Provisions relating to joint ventures, under which a bidder may 11 count toward meeting its minority business enterprise participation 12 goal, the minority, honorably discharged veteran and women-owned busi- 13 ness enterprise portion of the joint venture; 14 (F) Provisions under which the corporation may waive obligations of 15 the contractor relating to minority, honorably discharged veteran and 16 women-owned business enterprise participation after a showing of good 17 faith efforts to comply with the requirements of this act pursuant to 18 the waiver provisions contained in subdivision six of section three 19 hundred thirteen of the executive law; 20 (G) A requirement that the corporation verify that minority, honorably 21 discharged veteran and women-owned business enterprises listed in a 22 successful bid are actually participating to the extent listed in the 23 project for which the bid was submitted; 24 (H) In the implementation of this section, the contracting corporation 25 shall: 26 I. consider, where practicable, the severability of construction 27 projects and other bundled contracts; 28 II. implement a program that will enable the corporation to evaluate 29 each contract to determine the appropriateness of the goal pursuant to 30 paragraph (i) of this subdivision; 31 III. consider compliance with the requirements of any federal law 32 concerning opportunities for minority, honorably discharged veteran and 33 women-owned business enterprises which effectuates the purpose of this 34 section; and 35 IV. consult the most recent disparity study pursuant to article 36 fifteen-A of the executive law. 37 (ii) with the cooperation of the department of economic development 38 and through cooperative efforts with contractors, providing for the 39 notification of New York state business enterprises of opportunities to 40 participate as subcontractors and suppliers on procurement contracts let 41 by the corporation in an amount estimated to be equal to or greater than 42 one million dollars and promulgating procedures which will assure 43 compliance by contractors with such notification. Once awarded the 44 contract such contractors shall document their efforts to encourage the 45 participation of New York state business enterprises as suppliers and 46 subcontractors on procurement contracts equal to or greater than one 47 million dollars. Documented efforts by a successful contractor shall 48 consist of and be limited to showing that such contractor has (a) solic- 49 ited bids, in a timely and adequate manner, from New York state business 50 enterprises including certified minority, honorably discharged veteran 51 and women-owned business, or (b) contacted the New York state department 52 of economic development to obtain listings of New York state business 53 enterprises, or (c) placed notices for subcontractors and suppliers in 54 newspapers, journals and other trade publications distributed in New 55 York state, or (d) participated in bidder outreach conferences. If the 56 contractor determines that New York state business enterprises are notA. 6142 17 1 available to participate on the contract as subcontractors or suppliers, 2 the contractor shall provide a statement indicating the method by which 3 such determination was made. If the contractor does not intend to use 4 subcontractors on the contract, the contractor shall provide a statement 5 verifying such intent; and 6 (iii) except for procurement contracts for which the corporation would 7 be expending funds received from another state, the corporation shall 8 include in all bid documents provided to potential bidders a statement 9 that information concerning the availability of New York state subcon- 10 tractors and suppliers is available from the New York state department 11 of economic development, which shall include the directory of certified 12 minority, honorably discharged veteran and women-owned businesses, and 13 it is the policy of New York state to encourage the use of New York 14 state subcontractors and suppliers, and to promote the participation of 15 minority, honorably discharged veteran and women-owned businesses where 16 possible, in the procurement of goods and services; and 17 § 18. Section 957 of the general municipal law is amended by adding a 18 new subdivision (u) to read as follows: 19 (u) "Honorably discharged veteran owned business enterprise" shall 20 mean the same as defined in subdivision twenty-four of section three 21 hundred ten of the executive law. 22 § 19. Subdivisions (g) and (t) of section 959 of the general municipal 23 law, as amended by section 3 of part S-1 of chapter 57 of the laws of 24 2009, are amended to read as follows: 25 (g) Coordinate, with the local empire zone administrative board and 26 state agencies and authorities, the provision of business development 27 programs and services for each empire zone in order to stimulate the 28 creation and development of new small businesses, including new small 29 minority-owned, honorably discharged veteran-owned and women-owned busi- 30 ness enterprises, and may request and shall receive from any department, 31 division, board, bureau, commission, agency or public authority of the 32 state such assistance as may be necessary; 33 (t) Coordinate with the urban development corporation the creation of 34 a special category of assistance for zones within the regional economic 35 development partnership program, which will make available economic 36 development assistance grants for zone programs and activities, includ- 37 ing, but not limited to, planning, service coordination, and local 38 institutional capacity building for human resource development necessary 39 for economic revitalization; planning and development of small business 40 incubators; job placement and preparedness programs for zones residents; 41 education and training programs for zone businesses; child care programs 42 and projects supportive of business development; technical assistance 43 for minority, honorably discharged veteran and women-owned business 44 development; training for zone officials; business and tourism develop- 45 ment and marketing programs; and other innovative programs and activ- 46 ities in support of economic and community development within the zones; 47 § 20. Paragraph (x) of subdivision (b) of section 961 of the general 48 municipal law, as added by chapter 708 of the laws of 1993, is amended 49 to read as follows: 50 (x) identify financial commitments the applicant will make to the zone 51 for activities, including, but not limited to, marketing of the zone for 52 business development, human resource services for zone residents and 53 businesses, and services for small [and], minority, honorably discharged 54 veteran and women-owned businesses; 55 § 21. Subdivision (j) of section 962 of the general municipal law, as 56 amended by chapter 624 of the laws of 1990 and as further amended byA. 6142 18 1 section 15 of part GG of chapter 63 of the laws of 2000, is amended to 2 read as follows: 3 (j) a description of activities designed to ensure the meaningful 4 participation of minority-owned, honorably discharged veteran-owned and 5 women-owned business enterprises in empire zone development activities; 6 § 22. Paragraphs (iii) and (xii) of subdivision (a) of section 963 of 7 the general municipal law, as amended by chapter 708 of the laws of 8 1993, as further amended by section 15 of part GG of chapter 63 of the 9 laws of 2000 and as relettered by section 7 of part S-1 of chapter 57 of 10 the laws of 2009, are amended to read as follows: 11 (iii) undertake efforts to ensure meaningful participation by minori- 12 ty-owned, honorably discharged veteran-owned and women-owned business 13 enterprises in empire zone activities; 14 (xii) provide within the zone, or contract with a new or existing 15 community-based local development corporation or entity to provide, 16 strategic economic development planning for the zone, marketing and 17 promotion of the zone, assistance to companies in applying for available 18 benefits, preparation of applications for financing assistance and other 19 technical assistance services; coordination of the delivery of state and 20 local programs within the zones; and operation of such other economic 21 development assistance programs in furtherance of the empire zone devel- 22 opment plan as may be appropriate. Provided, however, within the amount 23 appropriated therefor and allocated by the director of the budget, the 24 commissioner, through annual administrative contracts, shall, to the 25 maximum extent feasible, make equally available financial support, 26 through contracts or other means, to assist with the administrative 27 expenses of the local zone administrative bodies or community-based 28 development organizations. No funds shall be made available for this 29 purpose unless the amount to be provided has been matched by private or 30 governmental sources, other than state sources, in amounts at least 31 equalling that to be provided by the state. Such matching funds shall be 32 earmarked and used exclusively for the local administration of the zone 33 program or for activities of the zone program. At least fifty percent of 34 such matching funds shall be in cash, provided that the commissioner may 35 waive this requirement for communities with populations of twenty-five 36 thousand or less, and provided, further, that any amounts appropriated 37 for minority, honorably discharged veteran and women-owned business 38 development within the zones shall be distributed by the commissioner 39 pursuant to a competitive proposal solicitation process. 40 § 23. Subdivision (c) of section 964 of the general municipal law, as 41 amended by chapter 708 of the laws of 1993 and as further amended by 42 section 15 of part GG of chapter 63 of the laws of 2000, is amended to 43 read as follows: 44 (c) Each empire zone capital corporation shall, to the maximum extent 45 feasible, undertake measures and procedures to ensure meaningful partic- 46 ipation by minority-owned, honorably discharged veteran-owned and 47 women-owned business enterprises in the activities and investments of 48 such corporation. Each such corporation shall additionally, to the maxi- 49 mum extent feasible, undertake measures and procedures to ensure mean- 50 ingful participation by locally owned business enterprises in the activ- 51 ities and investments of such corporation. 52 § 24. Subparagraph 7 of paragraph f of subdivision 3 of section 970-r 53 of the general municipal law, as amended by section 1 of part F of chap- 54 ter 577 of the laws of 2004, is amended to read as follows: 55 (7) the financial commitments the applicant will make to the brown- 56 field opportunity area for activities including, but not limited to,A. 6142 19 1 marketing of the area for business development, human resource services 2 for residents and businesses in the brownfield opportunity area, and 3 services for small [and], minority, honorably discharged veteran and 4 women-owned businesses. 5 § 25. Subdivision 33 of section 454 of the banking law, as amended by 6 chapter 679 of the laws of 2003, is amended to read as follows: 7 33. Notwithstanding any other provision of this article to the contra- 8 ry, to participate in the [minority -] minority, honorably discharged 9 veteran and women-owned business development and lending program, as 10 established in section [16-c] sixteen-c of section [1] one of chapter 11 [174] one hundred seventy-four of the laws of [1968] nineteen hundred 12 sixty-eight, constituting the urban development corporation act, to the 13 extent that such program allows participation by credit unions. 14 § 26. Section 9-b of section 1 of chapter 359 of the laws of 1968, 15 constituting the facilities development corporation act, as added by 16 chapter 58 of the laws of 1987, is amended to read as follows: 17 § 9-b. Minority, honorably discharged veteran and women-owned business 18 enterprise program. 1. (a) Minority, honorably discharged veteran and 19 women-owned business enterprises shall be given the opportunity for 20 meaningful participation in all contracts executed by the corporation 21 pursuant to the provisions of this act other than contracts the cost of 22 which is borne solely by a municipality or municipalities. The corpo- 23 ration shall establish measures and procedures to secure meaningful 24 participation and identify those contracts and items of work for which 25 minority, honorably discharged veteran and women-owned business enter- 26 prises may best bid to actively and affirmatively promote and assist 27 their participation in the projects, so as to facilitate the award of a 28 fair share of contracts to such enterprises; provided, however, that 29 nothing in this act shall be construed to limit the ability of the 30 corporation to assure that qualified minority, honorably discharged 31 veteran and women-owned business enterprises may participate in the 32 program. For purposes hereof, minority business enterprise shall mean 33 any business enterprise which is at least fifty-one per centum owned by, 34 or in the case of a publicly owned business, at least fifty-one per 35 centum of the stock of which is owned by citizens or permanent resident 36 aliens who are Black, Hispanic, Asian or American Indian, Pacific Islan- 37 der or Alaskan natives and such ownership interest is real, substantial 38 and continuing and have the authority to independently control the day 39 to day business decisions of the entity for at least one year; honorably 40 discharged veteran business enterprise shall mean the same as defined in 41 subdivision 24 of section 310 of the executive law; and women-owned 42 business enterprise shall mean any business enterprise which is at least 43 fifty-one per centum owned by, or in the case of a publicly owned busi- 44 ness, at least fifty-one per centum of the stock of which is owned by 45 citizens or permanent resident aliens who are women, and such ownership 46 interest is real, substantial and continuing and have the authority to 47 independently control the day to day business decisions of the entity 48 for at least one year. 49 The provisions of this paragraph shall not be construed to limit the 50 ability of any minority, honorably discharged veteran or women-owned 51 business enterprise to bid on any contract. 52 (b) In the implementation of this section, the corporation shall 53 consider compliance by any contractor with the requirements of any 54 federal, state, or local law concerning minority, honorably discharged 55 veteran and women-owned business enterprises, which may effectuate the 56 requirements of this section. If the corporation determines that byA. 6142 20 1 virtue of the imposition of the requirements of any such law, in respect 2 to contracts, the provisions thereof duplicate or conflict with this 3 section, the corporation may waive the applicability of this section to 4 the extent of such duplication or conflict. 5 (c) Nothing in this section shall be deemed to require that overall 6 state and federal requirements for participation of minority, honorably 7 discharged veteran and women-owned business enterprises in programs 8 authorized under this act be applied without regard to local circum- 9 stances to all projects or in all communities. 10 2. In order to implement the requirements and objectives of this 11 section, the corporation shall establish procedures to monitor the 12 contractors' compliance with provisions hereof, provide assistance in 13 obtaining competing qualified minority, honorably discharged veteran and 14 women-owned business enterprises to perform contracts proposed to be 15 awarded, and take other appropriate measures to improve the access of 16 minority, honorably discharged veteran and women-owned business enter- 17 prises to these contracts. 18 § 27. 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 § 16-b. Minority, honorably discharged veteran and women-owned busi- 23 ness enterprise program. 1. a. In the performance of projects pursuant 24 to this act minority, honorably discharged veteran and women-owned busi- 25 ness enterprises shall be given the opportunity for meaningful partic- 26 ipation. The agency shall establish measures and procedures to secure 27 meaningful participation and identify those contracts and items of work 28 for which minority, honorably discharged veteran and women-owned busi- 29 ness enterprises may best bid to actively and affirmatively promote and 30 assist their participation in the projects, so as to facilitate the 31 award of a fair share of contracts to such enterprises; provided, howev- 32 er, that nothing in this act shall be construed to limit the ability of 33 the agency to assure that qualified minority, honorably discharged 34 veteran and women-owned business enterprises may participate in the 35 program. For purposes hereof, minority business enterprise shall mean 36 any business enterprise which is at least fifty-one per centum owned by, 37 or in the case of a publicly owned business, at least fifty-one per 38 centum of the stock of which is owned by citizens or permanent resident 39 aliens who are Black, Hispanic, Asian or American Indian, Pacific Islan- 40 der or Alaskan natives and such ownership interest is real, substantial 41 and continuing and have the authority to independently control the day 42 to day business decisions of the entity for at least one year; honorably 43 discharged veteran business enterprise shall mean the same as defined in 44 subdivision 24 of section 310 of the executive law; and women-owned 45 business enterprise shall mean any business enterprise which is at least 46 fifty-one per centum owned by, or in the case of a publicly owned busi- 47 ness, at least fifty-one per centum of the stock of which is owned by 48 citizens or permanent resident aliens who are women, and such ownership 49 interest is real, substantial and continuing and have the authority to 50 independently control the day to day business decisions of the entity 51 for at least one year. 52 The provisions of this paragraph shall not be construed to limit the 53 ability of any minority, honorably discharged veteran or women-owned 54 business enterprise to bid on any contract. 55 b. In the implementation of this section, the agency shall consider 56 compliance by any contractor with the requirements of any federal,A. 6142 21 1 state, or local law concerning minority, honorably discharged veteran 2 and women-owned business enterprises, which may effectuate the require- 3 ments of this section. If the department or the office determines that 4 by virtue of the imposition of the requirements of any such law, in 5 respect to contracts, the provisions thereof duplicate or conflict with 6 this act, the agency may waive the applicability of this section to the 7 extent of such duplication or conflict. 8 c. Nothing in this section shall be deemed to require that overall 9 state and federal requirements for participation of minority, honorably 10 discharged veteran and women-owned business enterprises in programs 11 authorized under this act be applied without regard to local circum- 12 stances to all projects or in all communities. 13 2. In order to implement the requirements and objectives of this 14 section, the agency shall establish procedures to monitor the contrac- 15 tors' compliance with provisions hereof, provide assistance in obtaining 16 competing qualified minority, honorably discharged veteran and women- 17 owned business enterprises to perform contracts proposed to be awarded, 18 and take other appropriate measures to improve the access of minority, 19 honorably discharged veteran and women-owned business enterprises to 20 these contracts. 21 § 28. Paragraph (c) of subdivision 10 of section 16-a of section 1 of 22 chapter 174 of the laws of 1968, constituting the New York state urban 23 development corporation act, as amended by chapter 477 of the laws of 24 2002, is amended to read as follows: 25 (c) of minority, honorably discharged veteran or women-owned enter- 26 prises or enterprises owned by dislocated workers, such workers as 27 defined in the Workforce Investment Act (P.L. 105-220); and 28 § 29. Section 16-c of section 1 of chapter 174 of the laws of 1968, 29 constituting the New York state urban development corporation act, as 30 added by chapter 169 of the laws of 1994, subdivision 1 as amended by 31 section 1 of part AA of chapter 55 of the laws of 2014, subparagraphs 32 (i) and (ii) of paragraph (a) of subdivision 2 as further amended by 33 section 15 of part GG of chapter 63 of the laws of 2000, is amended to 34 read as follows: 35 § 16-c. [Minority-] Minority, honorably discharged veteran and women- 36 owned business development and lending program. 37 (1) [Minority-] Minority, honorably discharged veteran and women-owned 38 business development and lending program. (a) There is hereby created a 39 [minority-] minority, honorably discharged veteran and women-owned busi- 40 ness development and lending program for the purpose of providing finan- 41 cial and technical assistance to minority, honorably discharged veteran 42 and women-entrepreneurs. 43 (b) For the purposes of this section the following words or terms 44 shall mean as follows: 45 (i) "minority-owned business enterprise" or "minority-owned business" 46 shall mean the same as "minority business enterprise" as defined in 47 subdivision [three] 3 of section [two hundred ten] 210 of the economic 48 development law. 49 (ii) "women-owned business enterprise" or "women-owned business" shall 50 mean the same as "women-owned business enterprise" as defined in subdi- 51 vision [five] 5 of section [two hundred ten] 210 of the economic devel- 52 opment law. 53 (iii) "honorably discharged veteran business enterprise" shall mean 54 the same as defined in subdivision 24 of section 310 of the executive 55 law.A. 6142 22 1 (iv) "incubator" shall mean a facility providing low-cost space, tech- 2 nical assistance and support services, including, but not limited to, 3 central services shared by tenants of the facility, to [minority-] 4 minority, honorably discharged veteran and women-owned business enter- 5 prises. 6 (c) Assistance shall not be provided under this section for: 7 (i) the purchase or rehabilitation of real property for speculative 8 purposes; 9 (ii) payment of any tax or employee benefit arrearage; 10 (iii) residential construction, renovation or development 11 construction, except for assistance to minority, honorably discharged 12 veteran and women contractors under subdivision four of this section; 13 (iv) educational institutions and proprietary education firms, except 14 licensed child care facilities; 15 (v) hospitals or residential health care facilities; 16 (vi) overnight lodging facilities; 17 (vii) refinancing of debt or equity invested in an enterprise or 18 project. 19 (d) The corporation is authorized to: 20 (i) establish programs in conjunction with locally, and community 21 based entities to decentralize lending for small loans and loans to 22 start up [minority-] minority, honorably discharged veteran and women- 23 owned businesses; 24 (ii) establish a comprehensive program for minority, honorably 25 discharged veteran and women contractors, which may include assistance 26 through loans, bonding assistance and technical assistance; 27 (iii) establish a program to provide loans to established [minority-] 28 minority, honorably discharged veteran and women-owned businesses and 29 for [minority-] minority, honorably discharged veteran and women-owned 30 businesses, including loans to such businesses seeking to acquire or 31 expand a franchise; 32 (iv) provide loan guarantees to financial institutions and make linked 33 deposits into federally and state chartered credit unions for the 34 purpose of encouraging private financial institutions to make loans to 35 [minority-] minority, honorably discharged veteran and women-owned busi- 36 nesses; 37 (v) establish a program to create incubators to assist small and high 38 risk [minority-] minority, honorably discharged veteran and women-owned 39 businesses to grow and prosper; 40 (vi) promote equity investment in [minority-] minority, honorably 41 discharged veteran and women-owned businesses; 42 (vii) establish a comprehensive technical assistance program in coop- 43 eration with the department of economic development to assist [minori-44ty-] minority, honorably discharged veteran and women-owned businesses 45 and potential minority, honorably discharged veteran and women-entre- 46 preneurs; and 47 (viii) notwithstanding any provision of law to the contrary, establish 48 a [minority-] minority, honorably discharged veteran and women-owned 49 business investment fund to provide critical financial support to foster 50 the development of new and emerging ideas and products of 51 [minority-]minority, honorably discharged veteran and women-owned busi- 52 ness enterprises as well as to promote the long-term financial perform- 53 ance and success of early stage enterprises that are [minority-] minori- 54 ty, honorably discharged veteran and women-owned start-ups. The 55 selection of an eligible applicant and beneficiary companies for the 56 [minority-] minority, honorably discharged veteran and women-owned busi-A. 6142 23 1 ness investment fund shall be selected by the process established pursu- 2 ant to subdivisions [two] 2 through [four] 4 of section sixteen-u of 3 this act. [Minority-] Minority, honorably discharged veteran or women- 4 owned business enterprises who participate in such [minority-] minority, 5 honorably discharged veteran and women-owned business investment fund 6 under this subdivision shall not be precluded from qualifying for any 7 other assistance, grant or loan made available from the state. 8 (2) Minority, honorably discharged veteran and women revolving loan 9 trust fund. For the purpose of establishing programs in conjunction with 10 locally and community based entities to decentralize lending for small 11 loans and loans to start up [minority-] minority, honorably discharged 12 veteran and women-owned businesses, the corporation shall establish 13 minority, honorably discharged veteran and women revolving loan trust 14 fund accounts and related administrative expenses trust fund accounts. 15 (a) Each minority, honorably discharged veteran and women revolving 16 loan trust fund account shall be administered by one or more of the 17 following types of entities that provide services to community busi- 18 nesses and have as one of their primary purposes the provision of 19 services and assistance to [minority-] minority, honorably discharged 20 veteran and women-owned businesses: 21 (i) empire zone capital corporations established pursuant to section 22 [nine hundred sixty-four] 964 of the general municipal law; 23 (ii) community-based local development corporations or industrial 24 development agencies that serve a municipality in which an empire zone 25 has been established pursuant to article [eighteen-B] 18-B of the gener- 26 al municipal law and have as their primary purpose assistance to [minor-27ity-] minority, honorably discharged veteran and women-owned businesses 28 located or to be located in such empire zone; or 29 (iii) local and community development corporations, industrial devel- 30 opment agencies, or other not-for-profit entities, representative of the 31 community. 32 (b) To be eligible to administer a minority, honorably discharged 33 veteran and women revolving loan trust fund account, the entity must 34 also: (i) have staff with sufficient expertise to analyze applications 35 for financial assistance, to regularly monitor financial assistance to 36 clients, and to provide management or technical assistance to clients; 37 and (ii) have established a loan committee composed of six or more 38 persons experienced in business management, commercial lending or in the 39 operation of a for-profit business, at least one-half of whom shall be 40 experienced in commercial lending, at least one-third of whom shall be 41 minority persons and at least one-third of whom shall be women. Such 42 loan committee shall review every application, determine the feasibility 43 of the proposed project and the likelihood of repayment of the requested 44 financing and shall recommend to the governing body of the entity such 45 action on the application as the loan committee deems appropriate. The 46 corporation shall identify entities eligible to administer minority, 47 honorably discharged veteran and women revolving loan trust fund 48 accounts through a competitive statewide request for proposal process. 49 (c) Any entity selected to administer a minority, honorably discharged 50 veteran and women revolving loan trust fund account shall be eligible to 51 draw funds from the account as needed to provide the following types of 52 financial assistance to [minority-] minority, honorably discharged 53 veteran and women-owned businesses upon certification to and acceptance 54 by the corporation that such assistance complies with rules and regu- 55 lations promulgated by the corporation: (i) working capital loans, 56 provided that the amount of the loan does not exceed thirty-five thou-A. 6142 24 1 sand dollars and the term of the loan does not exceed five years; and 2 (ii) loans for the acquisition and/or improvement of real property and 3 for the acquisition of machinery and equipment provided that the amount 4 of the loan does not exceed fifty thousand dollars and the term of the 5 loan does not exceed the useful life of the equipment or property. 6 (d) (i) Notwithstanding any provision of law to the contrary, the 7 corporation may establish an administrative expenses trust fund account 8 for the benefit of each entity selected to administer a minority, honor- 9 ably discharged veteran and women revolving loan trust fund account. The 10 initial deposit of funds to an administrative expenses trust fund 11 account shall be an amount determined by the corporation but shall not 12 exceed twenty-five thousand dollars. 13 (ii) An entity selected to administer a minority, honorably discharged 14 veteran and women revolving loan trust fund account may use the funds in 15 the administrative expenses trust fund account for costs incurred by it 16 in the start up and administration of the financial assistance program 17 authorized pursuant to this subdivision. 18 (iii) The corporation shall deposit into each administrative expenses 19 trust fund account: 20 (A) all income earned from the moneys on deposit in the corresponding 21 minority, honorably discharged veteran and women revolving loan trust 22 fund account during the first year of the entity's administration of 23 said account; and 24 (B) beginning with its second year in administering a minority, honor- 25 ably discharged veteran and women revolving loan trust fund account, 26 said amounts may be used for costs incurred by the entity in administer- 27 ing the minority, honorably discharged veteran and women revolving loan 28 trust fund account; and 29 (C) repayments of interest on loans made from the corresponding minor- 30 ity, honorably discharged veteran and women revolving loan trust fund 31 account. 32 (iv) Funds from the administrative expenses trust fund account may be 33 used for costs incurred at any time by an administering entity in its 34 administration of a minority, honorably discharged veteran and women 35 revolving loan trust fund account pursuant to this section. 36 (v) Funds deposited in an administrative expenses trust fund account 37 shall be disbursed by the corporation to the entity that administers the 38 corresponding minority, honorably discharged veteran and women revolving 39 loan trust fund account on a periodic basis and shall be expended by the 40 entity in accordance with an annual budget and any updates of same, 41 approved by the corporation. 42 (e) Any entity selected to administer a minority, honorably discharged 43 veteran and women revolving loan trust fund account shall pay to the 44 corporation for deposit any repayments received in connection with 45 financial assistance provided from its account. Payments consisting of 46 the repayment of the principal amount of a loan shall be deposited by 47 the corporation into the minority, honorably discharged veteran and 48 women revolving loan trust fund account from which the loan was made. 49 The interest earned by the corporation from the investment of moneys in 50 each minority, honorably discharged veteran and women revolving loan 51 trust fund account during and after the second year of a selected enti- 52 ty's administration of said account shall be deposited by the corpo- 53 ration into the corresponding minority, honorably discharged veteran and 54 women revolving loan trust fund account and used to provide the finan- 55 cial assistance to [minority-] minority, honorably discharged veteran 56 and women-owned businesses as authorized pursuant to this section.A. 6142 25 1 (f) The provisions of subdivisions [eight] 8, [nine] 9, and [fourteen] 2 14 through [nineteen] 19 of section sixteen-a of this act pertaining to 3 the regional revolving loan trust fund shall also be applicable to the 4 minority, honorably discharged veteran and women revolving loan trust 5 fund, provided that: where the term "regional corporation" appears ther- 6 ein it shall be interpreted to mean an entity selected to administer a 7 minority, honorably discharged veteran and women revolving loan trust 8 fund account, and "regional revolving [loans] loan trust fund" shall 9 mean a minority, honorably discharged veteran and women revolving loan 10 trust fund, and where the term "this section" appears therein it shall 11 mean this section sixteen-c. 12 (g) The corporation may provide funds from an appropriation for the 13 [minority-] minority, honorably discharged veteran and women-owned busi- 14 ness development and lending program to any entity selected to adminis- 15 ter a minority, honorably discharged veteran and women revolving loan 16 trust fund for the purposes of recapitalizing such account and the enti- 17 ty's corresponding administrative expenses trust fund account following 18 an evaluation by the corporation of the entity's administration and use 19 of such accounts. 20 (h) Notwithstanding any provision of law to the contrary, the corpo- 21 ration shall establish a minority, honorably discharged veteran and 22 women revolving loan trust fund to pay into such fund any moneys made 23 available to the corporation for such fund from any source, including 24 moneys appropriated by the state and any income earned by, or increment 25 to, the account due to the investment thereof, or any repayment of 26 moneys advanced from the fund. The corporation shall not commingle the 27 moneys of such fund with any moneys held in trust by the corporation, 28 except for investment 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-] minority, honorably discharged veter- 39 an and women-owned businesses located within their respective service 40 areas, provided that loan review committees are established by such 41 administering entity, including women, honorably discharged veteran and 42 minority persons experienced in business management, business develop- 43 ment, commercial lending, entrepreneurship, or in the operation of a 44 for-profit business. 45 (c) Agreements entered into pursuant to paragraph (b) of this subdivi- 46 sion shall be governed by paragraphs (d) through (h) of subdivision 47 [two] 2 of this section, and minority, honorably discharged veteran and 48 women revolving loan trust fund accounts and administrative expenses 49 trust fund accounts shall be established in a similar fashion for enti- 50 ties selected to administer micro-loan funds pursuant to this subdivi- 51 sion. 52 (4) Minority, honorably discharged veteran and women contracting 53 program. For the purpose of establishing a comprehensive program to 54 assist minority, honorably discharged veteran and women contractors, the 55 corporation may provide loans, loan guarantees, technical assistance and 56 bonding assistance, the corporation may enter into cooperative agree-A. 6142 26 1 ments with cities, counties, municipalities, authorities, agencies, 2 federally and state chartered credit unions in New York state and feder- 3 ally insured banking organizations and financial institutions for such 4 purposes. 5 (a) To be eligible for a contractor loan, the borrower must have 6 either (i) a construction contract with, or a contract to provide goods 7 or services to, a governmental entity or authority, (ii) a subcontract 8 on a government-sponsored construction contract, (iii) a contract or 9 subcontract on a [government sponsored] government-sponsored residential 10 project, or (iv) a contract or subcontract on a construction project 11 previously approved by the corporation pursuant to section ten of this 12 act. 13 (b) The corporation shall provide technical assistance specifically 14 oriented to minority, honorably discharged veteran and women-owned 15 government contractors as part of its comprehensive technical assistance 16 program. 17 (c) The corporation is authorized to provide assistance through the 18 creation of, or assistance to, a minority, honorably discharged veteran 19 and women bonding guarantee program to enable minority, honorably 20 discharged veteran and women contractors and subcontractors to meet 21 payment or performance bonding requirements. 22 (i) Through such program, assistance in the form of working capital 23 loans and loan guarantees pursuant to subdivision [six] 6 of this 24 section may also be provided to minority, honorably discharged veteran 25 and women contractors and subcontractors who have secured contracts by 26 participating in the program. 27 (ii) The corporation shall either establish criteria for the bonding 28 guarantee program and for any required escrow funds which shall include 29 detailed provisions for eligibility; or if the corporation is providing 30 assistance to a program other than one established by the corporation, 31 review and approve the criteria established for such other program. 32 (5) Direct financial assistance for [minority-] minority, honorably 33 discharged veteran and women-owned businesses. For the purpose of estab- 34 lishing a program to provide direct financial assistance to [minority-] 35 minority, honorably discharged veteran and women-owned businesses, the 36 corporation is authorized to provide assistance in the form of: 37 (a) Business development loans and loan guarantees pursuant to subdi- 38 vision six of this section to eligible enterprises for the acquisition 39 or improvement of real property, machinery, equipment or working capi- 40 tal, provided that to be eligible for a business development loan, the 41 borrowers must have been in business for at least three years and 42 provided that the loans must be in an amount equal to or in excess of 43 fifty thousand dollars; 44 (b) Franchise loans to eligible enterprises seeking to acquire or 45 expand franchises of nationally recognized corporations, provided that 46 disbursements by the corporation of such loans shall be conditioned on 47 obtaining such franchises; 48 (c) Equity assistance for eligible minority, honorably discharged 49 veteran and women-owned enterprises to match equity contributions to 50 such enterprises by financial institutions and community development 51 equity capital funds, provided, however, that such assistance shall be 52 targeted to start-up and early stage enterprises in the manufacturing, 53 retail and service sectors located in economically distressed areas. 54 (6) Deposits and loan guarantees. For the purpose of encouraging 55 private financial institutions to make loans to eligible enterprises 56 pursuant to this section for any of the eligible projects pursuant toA. 6142 27 1 subdivisions four and five of this section, the corporation is author- 2 ized to: 3 (a) Make linked deposits of funds into federally and state chartered 4 credit unions in New York state, in order to encourage such organiza- 5 tions to make small loans to minority, honorably discharged veteran and 6 women-owned businesses; and 7 (b) Provide loan guarantees to private financial institutions for 8 loans made to eligible [minority-] minority, honorably discharged veter- 9 an and women-owned businesses pursuant to this subdivision for eligible 10 projects, provided that the guarantee shall be at least fifty percent 11 backed by funds of the corporation. Any such loan guaranteed by the 12 corporation shall be made to borrowers that are approved by the corpo- 13 ration and substantially meet the underwriting criteria the credit union 14 or financial institution customarily applies to similar borrowers for 15 similar loans supported by similar guarantees, and no guaranteed loan 16 funds shall be disbursed until the corporation has received, reviewed 17 and concurred, in writing, with the recommendation of the credit union 18 or banking or financial institution to make a loan. 19 (7) Minority, honorably discharged veteran and women small business 20 incubator program. 21 (a) The corporation shall establish a minority and women small busi- 22 ness incubator program for the purpose of providing financial support 23 for the creation of incubators to nurture minority, honorably discharged 24 veteran and women-owned business enterprises with growth potential. 25 (b) Under this subdivision the corporation is authorized to provide 26 low-interest loans and grants for construction financing and permanent 27 financing of up to seventy-five percent of project costs up to a maximum 28 of six hundred fifty thousand dollars per project, provided that the 29 total amount of grant assistance provided pursuant to this paragraph 30 shall not exceed twenty percent of an appropriation provided for the 31 purposes of this section. 32 (c) Incubator projects eligible for such assistance shall involve the 33 renovation or reconstruction of existing facilities or the acquisition 34 of equipment, except that construction shall be allowable in cases in 35 which an applicant can demonstrate to the satisfaction of the corpo- 36 ration that an existing facility is unavailable in the area to be served 37 by the new incubator facility. 38 (d) Incubator projects are not eligible to receive loans for the 39 purpose of covering operating costs or supplying incubator support 40 services, except that incubators in their first eighteen months of oper- 41 ation may receive one-time grants not to exceed forty thousand dollars, 42 which costs may include administrative costs of employing a resident 43 administrator/advisor to the incubator, provided that the corporation 44 shall not expend a sum greater than two hundred fifty thousand dollars 45 in any one state fiscal year, or so much as may be specifically appro- 46 priated for this purpose. 47 (e) Eligible incubator projects shall be required to demonstrate to 48 the corporation's satisfaction: 49 (i) public or private support and involvement sufficient to complete 50 the renovation of existing facilities or the construction of new facili- 51 ties and the acquisition of equipment; 52 (ii) significant community support for the project; 53 (iii) the existence of prospective tenants for such incubator space; 54 (iv) demand for such incubator space, which may include evidence of 55 the unavailability of suitable space for prospective tenants at appro-A. 6142 28 1 priate rental or lease costs in the community in which such prospective 2 tenants are located; and 3 (v) the inability of the project to occur without financial assistance 4 from the corporation. 5 (f) The corporation shall establish criteria for eligibility for fund- 6 ing for incubator projects, including but not limited to the following: 7 (i) the project must be designed to provide low-cost space and support 8 services to incubator tenants, coordination with other sources of 9 assistance and flexible leasing arrangements for tenants; 10 (ii) the project sponsors must provide a management plan and a busi- 11 ness plan for operating the incubator satisfactory to the corporation; 12 and 13 (iii) the project gives preference for incubator space and assistance 14 to [minority-] minority, honorably discharged veteran and women-owned 15 businesses which currently receive, or have received, assistance from 16 the corporation pursuant to this section and to incubator projects 17 proposed to be located in economically distressed areas. 18 (8) [Minority-] Minority, honorably discharged veteran and women-owned 19 business technical assistance program. (a) The corporation shall estab- 20 lish a comprehensive technical assistance program within the minority, 21 honorably discharged veteran and women business development office, in 22 cooperation with the department of economic development's division of 23 [minority-] minority, honorably discharged veteran and women-business 24 development established pursuant to article [four-A] 4-A of the economic 25 development law, to provide technical assistance to [minority-] minori- 26 ty, honorably discharged veteran and women-owned business enterprises 27 and to prospective [minority-] minority, honorably discharged veteran 28 and women-business entrepreneurs through third party service providers, 29 which assistance shall include, but not be limited to: 30 (i) technical assistance in development and execution of business 31 plans, including the formation of, acquisition of, management of, or 32 diversification of a [minority-] minority, honorably discharged veteran 33 or women-owned business enterprise; 34 (ii) technical assistance with applications for obtaining funds from 35 public and private financing sources; 36 (iii) technical assistance in the development of a working capital 37 budget; 38 (iv) referrals to other providers of technical assistance to [minori-39ty-] minority, honorably discharged veteran and women-owned businesses 40 and minority, honorably discharged veteran and women entrepreneurs, 41 where appropriate, including the entrepreneurial assistance program 42 established pursuant to article [nine] 9 of the economic development 43 law; and 44 (v) technical assistance through education programs directed primarily 45 at women, honorably discharged veteran and minority entrepreneurs. 46 (b) Technical assistance may be provided through direct corporate 47 support, through grants to or contracts with service providers or 48 governmental entities, and [minority-] minority, honorably discharged 49 veteran and women-owned business enterprises and individuals. 50 (9) Priorities. The corporation shall give priority to applications 51 for assistance pursuant to this section in which the business seeking 52 such assistance indicates a commitment to first consider persons eligi- 53 ble to participate in federal job training partnership act (P.L. 97-300) 54 programs.A. 6142 29 1 (10) Non-application of certain provisions. The provisions of section 2 ten and subdivision two of section sixteen of this act shall not apply 3 to assistance or projects authorized pursuant to this section. 4 (11) Rules and regulations. The corporation shall, assisted by the 5 commissioner of economic development and in consultation with the 6 department of economic development, promulgate rules and regulations in 7 accordance with the state administrative procedure act. Such rules and 8 regulations shall be consistent with the program plan required by subdi- 9 vision [nineteen] 19 of section [one hundred] 100 of the economic devel- 10 opment law. No funds shall be disbursed under this program until such 11 rules and regulations have been reviewed and approved by the corpo- 12 ration. All assistance and projects funded under this program shall be 13 funded in accordance with the rules and regulations in effect on the 14 date the completed application for such assistance shall be received by 15 the corporation. 16 (12) Minority, honorably discharged veteran and women business devel- 17 opment and lending account. Notwithstanding any provision of law to the 18 contrary, the corporation shall establish within the treasury of the 19 corporation a minority, honorably discharged veteran and women business 20 development and lending account, and shall pay into such account any 21 moneys which may be made available to the corporation for this purpose 22 from any source including, but not limited to, moneys appropriated by 23 the state and any repayment of principal and interest on loans made by 24 the corporation pursuant to the [minority-] minority, honorably 25 discharged veteran and women-owned business development and lending 26 program. Funds in the minority, honorably discharged veteran and women 27 business development and lending account, including funds from the 28 repayment of principal and interest on loans made by the corporation, 29 may be used for any form of assistance authorized hereunder. The amounts 30 deposited in the minority, honorably discharged veteran and women busi- 31 ness development and lending account may not be interchanged with any 32 other account, but may be commingled with any other account for invest- 33 ment purposes. All loans disbursed by the corporation shall be repaid 34 into the account. The corporation shall enter into a written agreement 35 with the director of the budget for repayment, to the state comptroller 36 to the credit of the capital projects fund, of all moneys in the account 37 after a period of time to be determined by the corporation and the 38 director of the budget. The corporation shall transfer to the minority, 39 honorably discharged veteran and women business development and lending 40 account: all moneys appropriated or reappropriated by New York state for 41 the minority, honorably discharged veteran and women revolving loan 42 trust fund that have not been committed prior to the effective date of 43 the appropriation for the program in the current fiscal year, or become 44 uncommitted subsequent to the effective date of the program's appropri- 45 ation for the current fiscal year; and all repayments of principal and 46 interest on loans made by the corporation which are currently on deposit 47 in, or payable to, the minority, honorably discharged veteran and women 48 business development and lending account. 49 (13) Standardization. The corporation shall streamline the review and 50 approval process for projects and wherever possible standardize all 51 relevant attendant documentation and legal documents. 52 (14) Approval cycle. The corporation shall approve eligible loans or 53 grants on at least a four-month cycle and shall give priority consider- 54 ation to the comparative degree of economic distress within the areas in 55 which the project is located. Other factors to be considered by the 56 corporation shall include the impact of the project on the employmentA. 6142 30 1 and economic condition of the community and the financial feasibility of 2 the project. 3 (15) Repayment. Notwithstanding the provisions of section [forty-a] 4 40-a of the state finance law and any other general or special law, no 5 written agreement under this program shall require repayment at any time 6 or on any terms inconsistent with the provisions of this act or the New 7 York state project finance agency act; except, however, that the corpo- 8 ration may make grants to projects using funds appropriated for this 9 purpose and that the repayment provision may not apply to such grants. 10 (16) Reports. The chairman of the corporation shall submit to the 11 director of the budget, the speaker of the assembly and the temporary 12 president of the senate an evaluation of the effectiveness of the 13 program prepared by an entity independent of the corporation. The corpo- 14 ration shall select the program evaluator through a request for proposal 15 process. Such evaluation shall determine whether the assistance provided 16 has enhanced the economic condition of assisted companies or communi- 17 ties, and shall make recommendation for improvements which would make 18 the program more effective. Such evaluation shall be submitted by 19 September first, nineteen hundred ninety-five and September first every 20 two years thereafter. 21 § 30. Subparagraphs (viii) and (x) of paragraph (e) of subdivision 7 22 of section 16-d of section 1 of chapter 174 of the laws of 1968, consti- 23 tuting the New York state urban development corporation act, as added by 24 chapter 169 of the laws of 1994, are amended to read as follows: 25 (viii) export, marketing, procurement and subcontracting assistance to 26 small and medium-sized industrial firms, including [minority-] minority, 27 honorably discharged veteran and women-owned businesses, and to flexible 28 manufacturing networks, and programs to assist regional and multi-county 29 business marketing and procurement programs; 30 (x) business planning, management assistance and counseling, and 31 financial packaging assistance to small and medium-sized industrial 32 firms, including [minority-] minority, honorably discharged veteran and 33 women-owned businesses, flexible manufacturing networks, and new enter- 34 prises and small businesses, including the establishment of neighbor- 35 hood-based business service centers designed to deliver comprehensive 36 technical assistance to new and small businesses in specific communities 37 and neighborhoods; 38 § 31. Clause (B) of subparagraph (i) of paragraph (h) of subdivision 8 39 of section 16-d of section 1 of chapter 174 of the laws of 1968, consti- 40 tuting the New York state urban development corporation act, as added by 41 chapter 169 of the laws of 1994 and as further amended by section 15 of 42 part GG of chapter 63 of the laws of 2000, is amended to read as 43 follows: 44 (B) community based local development corporations, industrial devel- 45 opment agencies, or other not-for-profit entities which serve a munici- 46 pality in which an empire zone has been established and which, as one of 47 their primary purposes, provide services and assistance to business 48 enterprises located or to be located in such empire zone, including 49 [minority-] minority, honorably discharged veteran and women-owned busi- 50 nesses; 51 § 32. Subparagraph (vi) of paragraph (c) of subdivision 10 of section 52 16-e of section 1 of chapter 174 of the laws of 1968, constituting the 53 New York state urban development corporation act, as added by chapter 54 169 of the laws of 1994, is amended to read as follows:A. 6142 31 1 (vi) management and procurement assistance to small business, includ- 2 ing [minority-] minority, honorably discharged veteran and women-owned 3 businesses; 4 § 33. Paragraph (d) of subdivision 18 of section 16-e of section 1 of 5 chapter 174 of the laws of 1968, constituting the New York state urban 6 development corporation act, as added by chapter 169 of the laws of 7 1994, is amended to read as follows: 8 (d) The participation of [minority-] minority, honorably discharged 9 veteran and women-owned businesses; 10 § 34. The opening paragraph, paragraph (a) and the opening paragraph 11 and subparagraph (iv) of paragraph (b) of subdivision 1 of section 16-f 12 of section 1 of chapter 174 of the laws of 1968, constituting the New 13 York state urban development corporation act, as added by chapter 169 of 14 the laws of 1994, are amended to read as follows: 15 There is hereby created a state bonding guarantee assistance program 16 to enable small businesses, [and] minority-owned, honorably discharged 17 veteran-owned and women-owned business enterprises, certified as a 18 minority-owned, honorably discharged veteran-owned or women-owned busi- 19 ness enterprise pursuant to article [fifteen-A] 15-A of the executive 20 law, to meet payment and/or performance bonding requirements by provid- 21 ing additional financial backing needed to induce a surety company to 22 issue a bond for construction projects, including but not limited to, 23 government sponsored, transportation related construction projects. For 24 purposes of this section, the term small business shall have the same 25 meaning as defined in section [one hundred thirty-one] 131 of the 26 economic development law. Such program shall give preference to minori- 27 ty-owned, honorably discharged veteran-owned and women-owned business 28 enterprises and shall: 29 (a) Make available funds to surety companies providing bonds to small 30 businesses [and minority- owned], minority-owned, honorably discharged 31 veteran-owned or women-owned business enterprises in an amount equal to 32 a percentage not to exceed fifty percent of the face value of bonds 33 issued by the surety. 34 Provide technical assistance in completing bonding applications for 35 small businesses [and], minority-owned, honorably discharged veteran- 36 owned or women-owned business enterprises seeking to become eligible for 37 bonding in preparation for bidding on construction projects, including 38 transportation related projects. The corporation shall provide and may 39 refer such businesses to the department of economic development for 40 technical assistance as such businesses may need, including but not 41 limited to: 42 (iv) assistance from the regional offices of the department of econom- 43 ic development, pursuant to article [eleven] 11 of the economic develop- 44 ment law, and the entrepreneurial assistance program, pursuant to arti- 45 cle [nine] 9 of such law, and any other such program receiving state 46 funds from this act or the department of economic development or any 47 other state agency that is intended to provide technical assistance to 48 small businesses [and], minority-owned, honorably discharged veteran- 49 owned and women-owned small business enterprises. 50 § 35. Subparagraph (i) of paragraph (c) of subdivision 2 of section 51 16-k of section 1 of chapter 174 of the laws of 1968, constituting the 52 New York state urban development corporation act, as amended by chapter 53 103 of the laws of 2011, is amended to read as follows: 54 (i) provide a plan to the corporation or its agent for the marketing 55 of the capital access program to small businesses, including those in 56 highly distressed areas and to [minority-] minority, honorablyA. 6142 32 1 discharged veteran and women-owned businesses, with appropriate lending 2 objectives identified by the financial institution for such areas and 3 businesses; 4 § 36. Paragraph (g) of subdivision 1 of section 16-m of section 1 of 5 chapter 174 of the laws of 1968, constituting the New York state urban 6 development corporation act, as added by section 1 of part N of chapter 7 84 of the laws of 2002, is amended to read as follows: 8 (g) Assistance to local or regional organizations to facilitate 9 financing for small- and medium-sized business, including [minority-] 10 minority, honorably discharged veteran and women-owned business enter- 11 prises through flexible financing programs, including, but not limited 12 to, loan loss reserve and revolving loan programs, working capital 13 loans, working capital loan guarantees, or other flexible financing 14 programs that leverage traditional financing; 15 § 37. Paragraph 1 of subdivision (c) of section 30 of section 1 of 16 chapter 174 of the laws of 1968, constituting the New York state urban 17 development corporation act, as amended by chapter 732 of the laws of 18 1990, is amended to read as follows: 19 (1) In addition to any other requirements imposed by the act or other- 20 wise regarding evaluations of programs administered by the corporation, 21 each evaluation shall include an analysis of the job creation effect of 22 such program, the number of small businesses that received assistance, 23 the number of minority, honorably discharged veteran and women-owned 24 firms that received assistance, the number of projects undertaken in 25 distressed and highly distressed communities, and, if applicable, the 26 repayment experience of borrowers of funds from the corporation. 27 § 38. Paragraph 2 of subdivision (e) of section 30-a 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 2 of part M1 of chapter 30 62 of the laws of 2003, is amended to read as follows: 31 (2) require projects to be financed out of the empire state economic 32 development fund be approved generally in amounts which are proportional 33 to amounts appropriated for the urban and community development program, 34 and the minority, honorably discharged veteran and women-owned business 35 development and lending program; 36 § 39. The section heading, the opening paragraph of subdivision 1, the 37 opening paragraph of subdivision 2, paragraph (a) of subdivision 3 and 38 subdivisions 4 and 5 of section 38 of section 1 of chapter 174 of the 39 laws of 1968, constituting the New York state urban development corpo- 40 ration act, as amended by chapter 169 of the laws of 1994, are amended 41 to read as follows: 42 Small business [and], minority-owned, honorably discharged veteran- 43 owned and women-owned business enterprises transportation capital 44 assistance and guaranteed loan program. 45 To provide financial assistance to small business [and], minority- 46 owned, honorably discharged veteran-owned and women-owned business 47 enterprises engaged in government sponsored, transportation related 48 construction projects, the corporation shall establish a small business 49 [and], minority-owned, honorably discharged veteran-owned and women- 50 owned business enterprise transportation capital assistance revolving 51 loan fund which shall provide loans or loan guarantees to small business 52 [and], minority-owned, honorably discharged veteran-owned and women- 53 owned business enterprises. For purposes of this section: 54 Such loans, or loan guarantees for loans made by federally and state 55 chartered credit institutions, financial institutions, and federally 56 insured banking organizations to small business [and], minority-owned,A. 6142 33 1 honorably discharged veteran-owned and women-owned business enterprises, 2 shall be used to: 3 (a) To be eligible for such loans or loan guarantees (i) a minority- 4 owned, honorably discharged veteran-owned or women-owned business enter- 5 prise must be certified as a minority-owned, honorably discharged veter- 6 an-owned or women-owned business enterprise pursuant to article 15-A of 7 the executive law; and (ii) a small business or a minority-owned, honor- 8 ably discharged veteran-owned or women-owned business enterprise shall 9 have a contract or sub-contract to provide goods or services related to 10 a government sponsored, transportation related construction project. 11 4. The corporation shall give preference to minority-owned, honorably 12 discharged veteran-owned and women-owned business enterprises in making 13 such loans and loan guarantees and shall establish such other criteria 14 as it may deem necessary for this program and for any required amount 15 that shall be held in reserve for any guarantees made under this 16 program. 17 5. Notwithstanding any inconsistent provision of law, general, special 18 or local, including pursuant to capital projects budget appropriations 19 or reappropriations, where applicable, the corporation is hereby author- 20 ized to enter into such agreements as may be necessary for the operation 21 and administration of a small business [and], minority-owned, honorably 22 discharged veteran-owned and women-owned business enterprises transpor- 23 tation capital assistance and guaranteed loan program. 24 § 40. This act shall take effect immediately; provided, however, that 25 the amendments to article 15-A of the executive law made by sections two 26 through six of this act shall not affect the expiration of such article 27 and shall be deemed to expire therewith; and provided, further that the 28 amendments to section 136-b of the state finance law made by section 29 seven of this act shall not affect the expiration of such section and 30 shall be deemed to expire therewith.
