Bill Text: NY S06161 | 2023-2024 | General Assembly | Introduced


Bill Title: Relates to participation by veterans with respect to state contracts by expanding Article 3 of the veterans' services law to cover all veteran-owned business enterprises instead of only service-disabled veteran-owned business enterprises; makes related corrections in law.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-01-03 - REFERRED TO VETERANS, HOMELAND SECURITY AND MILITARY AFFAIRS [S06161 Detail]

Download: New_York-2023-S06161-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          6161

                               2023-2024 Regular Sessions

                    IN SENATE

                                     March 31, 2023
                                       ___________

        Introduced  by  Sen.  ASHBY  -- read twice and ordered printed, and when
          printed to be committed to the Committee on Veterans, Homeland Securi-
          ty and Military Affairs

        AN ACT to amend the veterans' services law, the cannabis law, the  labor
          law,  the  state finance law and the state technology law, in relation
          to participation by veterans with respect to state contracts

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1. The article heading of article 3 of the veterans' services
     2  law is amended to read as follows:
     3         PARTICIPATION BY [SERVICE-DISABLED] VETERANS WITH RESPECT TO
     4                               STATE CONTRACTS
     5    § 2. Subdivisions 1, 3 and 4 of section 40 of the  veterans'  services
     6  law are amended to read as follows:
     7    1.  "Certified  [service-disabled]  veteran-owned business enterprise"
     8  shall mean a business enterprise, including a sole proprietorship, part-
     9  nership, limited liability company or corporation that is:
    10    (a) at least fifty-one percent owned by one or more [service-disabled]
    11  veterans;
    12    (b) an enterprise in which such [service-disabled]  veteran  ownership
    13  is real, substantial, and continuing;
    14    (c)  an  enterprise in which such [service-disabled] veteran ownership
    15  has and exercises the authority to control independently the  day-to-day
    16  business decisions of the enterprise;
    17    (d) an enterprise authorized to do business in this state and is inde-
    18  pendently-owned and operated;
    19    (e)  an  enterprise  that  is a small business which has a significant
    20  business presence in the state, not dominant in its field  and  employs,
    21  based  on its industry, a certain number of persons as determined by the
    22  director, but not to exceed three  hundred,  taking  into  consideration
    23  factors  which  include,  but are not limited to, federal small business

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10527-01-3

        S. 6161                             2

     1  administration standards pursuant to 13 CFR part 121 and any  amendments
     2  thereto; and
     3    (f) certified by the office of general services.
     4    3. "Director" shall mean the director of the division of [service-dis-
     5  abled] veterans' business development.
     6    4.  "Division" shall mean the division of [service-disabled] veterans'
     7  business development in the office of general services.
     8    § 3. Section 41 of the veterans' services law is amended  to  read  as
     9  follows:
    10    §  41.  Division of [service-disabled] veterans' business development.
    11  1.  The head of the division of  [service-disabled]  veterans'  business
    12  development shall be the director who shall be appointed by the governor
    13  and who shall hold office at the pleasure of the commissioner.
    14    2.  The  director  may  appoint  such  deputies, assistants, and other
    15  employees as may be needed for the performance of the duties  prescribed
    16  herein  subject to the provisions of the civil service law and the rules
    17  and regulations of  the  civil  service  commission.  The  director  may
    18  request  and  shall  receive  from  any (i) department, division, board,
    19  bureau, or executive commission of the state or (ii) state agency,  such
    20  assistance as may be necessary to carry out the provisions of this arti-
    21  cle.
    22    3. The director shall have the following powers and duties:
    23    (a)  Develop, collect, summarize and disseminate information that will
    24  be helpful to persons and organizations throughout the state  in  under-
    25  taking  or  promoting  the  establishment  and successful operation of a
    26  [service-disabled] veteran-owned business.
    27    (b) Develop and make available to state agencies a directory of certi-
    28  fied [service-disabled] veteran-owned business enterprises which  shall,
    29  wherever  practicable,  be  divided  into categories of labor, services,
    30  supplies, equipment, materials and recognized  construction  trades  and
    31  which  shall  indicate areas or locations of the state where such enter-
    32  prises are available to perform services. Such directory shall be posted
    33  on the office of general services website.
    34    (c) Assist state agencies in the development of programs to foster and
    35  promote the use of [service-disabled] veteran-owned business enterprises
    36  on state contracts.
    37    (d) Coordinate the plans, programs and operations of the state govern-
    38  ment which affect or may contribute to the  establishment,  preservation
    39  and  development  of  [service-disabled]  veteran-owned  business enter-
    40  prises.
    41    (e) To appoint independent hearing officers who by contract  or  terms
    42  of  employment shall preside over adjudicatory hearings pursuant to this
    43  section for the office and who are assigned no other work by the office.
    44    (f) In conjunction with  the  commissioner,  develop  a  comprehensive
    45  statewide  plan and operational guidelines to promote [service-disabled]
    46  veteran-owned business enterprises  and  to  assist  them  in  obtaining
    47  opportunities to participate in the procurement of goods and services by
    48  the  state,  including  identification  of  barriers  to  veterans'  and
    49  service-disabled veterans' business development  and  investigation  and
    50  evaluation of their impact on achieving the objectives of this article.
    51    4. The commissioner shall:
    52    (a)  Coordinate  training  of all procurement personnel of state agen-
    53  cies, emphasizing increased sensitivity and responsiveness to the unique
    54  needs and  requirements  of  [service-disabled]  veteran-owned  business
    55  enterprises.

        S. 6161                             3

     1    (b)  Conduct  a  coordinated review of all existing and proposed state
     2  training and technical assistance activities in direct  support  of  the
     3  [service-disabled]  veterans'  business  development  program  to assure
     4  consistency with the objectives of this article.
     5    (c)  Evaluate  and  assess  availability  of  firms for the purpose of
     6  increasing participation of such firms in state contracting in consulta-
     7  tion with relevant state entities including, but not limited to, the New
     8  York state department of veterans' services.
     9    (d) Provide advice and technical assistance to promote  [service-disa-
    10  bled]   veteran-owned   business  enterprises'  understanding  of  state
    11  procurement laws, practices and procedures to  facilitate  and  increase
    12  the  participation  of  [service-disabled] veteran-owned business enter-
    13  prises in state procurement.
    14    (e) Establish regular performance reporting systems  regarding  imple-
    15  mentation of the programs designed to increase [service-disabled] veter-
    16  an-owned  business participation in procurement contracts by state agen-
    17  cies.
    18    (f) Submit a report by the thirty-first of December each year, to  the
    19  governor,  the  temporary  president  of  the senate, the speaker of the
    20  assembly and the chairpersons of the senate finance  and  assembly  ways
    21  and  means  committees. Such report shall include information including,
    22  but not limited to, the number of contracts  entered  into  pursuant  to
    23  this  article,  the  average  amount  of  such  contracts, the number of
    24  [service-disabled] veteran-owned  business  enterprises  certified,  the
    25  number  of applications for certification as a [service-disabled] veter-
    26  an-owned business enterprise, the number of  denials  for  such  certif-
    27  ication,  the number of appeals of such denials, and the outcome of such
    28  appeals and the average time that is required for such certification  to
    29  be  completed.  Also to be included shall be the level of [service-disa-
    30  bled] veteran-owned businesses participating in each agency's  contracts
    31  for  goods and services and on activities of the division and efforts by
    32  each contracting agency to  promote  utilization  of  [service-disabled]
    33  veteran-owned  businesses  and  to promote and increase participation by
    34  certified [service-disabled] veteran-owned businesses  with  respect  to
    35  state  contracts  and  subcontracts to such businesses.  Such report may
    36  recommend new activities and programs to effectuate the purposes of this
    37  article.
    38    5. Certification. (a) The director, or in the absence of the director,
    39  the commissioner, within ninety days of the effective date of this arti-
    40  cle, shall promulgate rules and regulations providing for the establish-
    41  ment of a statewide certification  program  including  rules  and  regu-
    42  lations  governing  the  approval,  denial,  or  revocation  of any such
    43  certification. Such rules and regulations  shall  include,  but  not  be
    44  limited  to,  such  matters as may be required to ensure that the estab-
    45  lished procedures thereunder shall at least be in  compliance  with  the
    46  code  of  fair procedure set forth in section seventy-three of the civil
    47  rights law.
    48    (b) The division of [service-disabled] veterans' business  development
    49  shall  be responsible for verifying businesses as being owned, operated,
    50  and controlled by a [service-disabled] veteran and for  certifying  such
    51  verified  businesses. Status as a [service-disabled] veteran pursuant to
    52  paragraph (a) of this subdivision shall be documented by a copy  of  the
    53  veteran's  certificate of release or discharge from active duty, includ-
    54  ing  but  not  limited  to,  a  DD-214  form  or  an  honorable  service
    55  certificate/report  of casualty from the Department of Defense, a letter
    56  of certification by the United States Department of Veterans Affairs  or

        S. 6161                             4

     1  the  United  States Department of Defense and any additional information
     2  that may be required by the  division  of  [service-disabled]  veterans'
     3  business  development. In the case of the New York guard or the New York
     4  naval  militia  and/or  reserves thereof, status as a [service-disabled]
     5  veteran pursuant to this paragraph shall be documented pursuant to rules
     6  and regulations promulgated by the director, or in the  absence  of  the
     7  director, the commissioner.
     8    (c)  Following application for certification pursuant to this section,
     9  the director shall provide the applicant  with  written  notice  of  the
    10  status of the application, including notice of any outstanding deficien-
    11  cies,  within  thirty  days.  Within sixty days of submission of a final
    12  completed application, the director shall  provide  the  applicant  with
    13  written  notice  of a determination by the director approving or denying
    14  such certification and, in the event of a denial,  a  statement  setting
    15  forth  the  reasons  for  such  denial.  Upon a determination denying or
    16  revoking certification, the business enterprise for which  certification
    17  has  been  so  denied or revoked shall, upon written request made within
    18  thirty days from receipt of notice of such determination, be entitled to
    19  a hearing before an independent  hearing  officer  designated  for  such
    20  purpose  by  the  director. In the event that a request for a hearing is
    21  not made within such thirty-day  period,  such  determination  shall  be
    22  deemed  to  be  final.  The  independent hearing officer shall conduct a
    23  hearing and upon the conclusion of such hearing, issue a written  recom-
    24  mendation  to  the  director to affirm, reverse, or modify such determi-
    25  nation of the director. Such written recommendation shall be  issued  to
    26  the  parties.  The  director, within thirty days, by order, must accept,
    27  reject or modify such recommendation of  the  hearing  officer  and  set
    28  forth in writing the reason therefor. The director shall serve a copy of
    29  such order and reasons therefor upon the business enterprise by personal
    30  service  or by certified mail return receipt requested. The order of the
    31  director shall be subject to review pursuant to article seventy-eight of
    32  the civil practice law and rules.
    33    (d) All certifications shall be valid for a period of five years.
    34    § 4. Section 42 of the veterans' services law is amended  to  read  as
    35  follows:
    36    §  42.  Opportunities  for  certified [service-disabled] veteran-owned
    37  business enterprises. 1. The director, or in the absence of  the  direc-
    38  tor,  the commissioner, within ninety days of the effective date of this
    39  article  shall  promulgate  rules  and  regulations  for  the  following
    40  purposes:
    41    (a)   provide   measures  and  procedures  to  ensure  that  certified
    42  [service-disabled] veteran-owned business enterprises are  afforded  the
    43  opportunity  for  meaningful  participation  in the performance of state
    44  contracts and to assist in state agencies' identification of those state
    45  contracts for which certified [service-disabled] veteran-owned  business
    46  enterprises may best perform;
    47    (b)  provide for measures and procedures that assist state agencies in
    48  the identification of state contracts where  [service-disabled]  veteran
    49  contract  goals  are practical, feasible and appropriate for the purpose
    50  of increasing the utilization of [service-disabled] veteran-owned  busi-
    51  ness enterprise participation on state contracts;
    52    (c)  achieve  a statewide goal for participation on state contracts by
    53  [service-disabled] veteran-owned business enterprises of six percent;
    54    (d) provide for procedures  relating  to  submission  and  receipt  of
    55  applications  by  [service-disabled]  veteran-owned business enterprises
    56  for certification;

        S. 6161                             5

     1    (e) provide for the monitoring and compliance of  state  contracts  by
     2  state agencies with respect to the provisions of this article;
     3    (f)  provide  for  the  requirement that state agencies submit regular
     4  reports, as determined by the director, with respect to their  [service-
     5  disabled]  veteran-owned business enterprise program activity, including
     6  but not limited to, utilization reporting and state contract  monitoring
     7  and compliance;
     8    (g) notwithstanding any provision of the state finance law, the public
     9  buildings  law,  the  highway  law, the transportation law or the public
    10  authorities law to the contrary, provide for the reservation  or  set-a-
    11  side  of  certain procurements by state agencies in order to achieve the
    12  objectives of this article; provided, however,  that  such  procurements
    13  shall  remain  subject  to (i) priority of preferred sources pursuant to
    14  sections one hundred sixty-two and one hundred sixty-three of the  state
    15  finance  law;  (ii)  the approval of the comptroller of the state of New
    16  York pursuant to section one hundred  twelve  and  section  one  hundred
    17  sixty-three  of  the  state finance law and section twenty-eight hundred
    18  seventy-nine-a of the public authorities law; and (iii) the  procurement
    19  record  requirements  pursuant  to  paragraph  g  of subdivision nine of
    20  section one hundred sixty-three of the state finance law; and
    21    (h) provide for any other purposes to effectuate this article.
    22    2. State agencies shall administer the rules and  regulations  promul-
    23  gated by the director for the implementation of this article.
    24    §  5.  Subdivision  28  of  section 4 of the veterans' services law is
    25  amended to read as follows:
    26    28. To include within the annual report  as  required  by  subdivision
    27  seventeen  of  this section an accounting of the number of veteran-owned
    28  small businesses in the state of New York, to be listed by the following
    29  designations: small business concern owned and controlled by veterans as
    30  set forth in 15 U.S.C. section 632(Q)(3), as amended from time to  time,
    31  and [service disabled] veteran-owned business enterprise as set forth in
    32  article  three  of  this  chapter. Such listing shall include but not be
    33  limited to the name of the veteran owner or  owners  of  each  business,
    34  location of each such business, the type of each such business and when-
    35  ever  practicable, be divided into categories of labor, services, equip-
    36  ment, materials and recognized construction trades. The department shall
    37  request this information annually from the U.S. department  of  veterans
    38  affairs,  any  other  appropriate federal agencies and the department of
    39  [service-disabled] veterans' business development within  the  New  York
    40  state office of general services.
    41    §  6. Clause (B) of subparagraph (v) of paragraph (a) of subdivision 3
    42  of section 35 of the cannabis law is amended to read as follows:
    43    (B) whether the registered organization is  a  minority  and/or  woman
    44  owned  business enterprise, a [service-disabled] veteran-owned business,
    45  or from communities disproportionally impacted  by  the  enforcement  of
    46  cannabis prohibition;
    47    §  7. The section heading, subdivision 1, paragraph (f) of subdivision
    48  2, and paragraph (f) of subdivision 5 of section 87 of the cannabis law,
    49  paragraph (f) of subdivision 5 as amended by section 29 of  part  PP  of
    50  chapter 56 of the laws of 2022, are amended to read as follows:
    51    Social  and  economic  equity,  minority  and  women-owned businesses,
    52  distressed farmers and [service-disabled] veterans;  incubator  program.
    53  1.   The board, in consultation with the chief equity officer and execu-
    54  tive director, and after receiving public input shall create and  imple-
    55  ment  a  social and economic equity plan and actively promote applicants
    56  from communities disproportionately impacted  by  cannabis  prohibition,

        S. 6161                             6

     1  and  promote  racial, ethnic, and gender diversity when issuing licenses
     2  for adult-use cannabis related activities, including mentoring potential
     3  applicants, by prioritizing consideration of applications by  applicants
     4  who  are from communities disproportionately impacted by the enforcement
     5  of cannabis prohibition or who qualify  as  a  minority  or  women-owned
     6  business, distressed farmers, or [service-disabled] veterans. Such qual-
     7  ifications  shall  be determined by the board, with recommendations from
     8  the state cannabis advisory board, the chief equity officer  and  execu-
     9  tive director, by regulation.
    10    (f) [service-disabled] veterans.
    11    (f)  "[Service-disabled  veterans] Veterans" shall mean persons quali-
    12  fied under article three of the veterans' services law.
    13    § 8. Subdivision 6 of section 224-d of the labor law,  as  amended  by
    14  section  30  of part PP of chapter 56 of the laws of 2022, is amended to
    15  read as follows:
    16    6. Each owner and  developer  subject  to  the  requirements  of  this
    17  section shall comply with the objectives and goals of certified minority
    18  and  women-owned  business  enterprises pursuant to article fifteen-A of
    19  the executive law and certified [service-disabled]  veteran-owned  busi-
    20  nesses  pursuant  to  article  three  of the veterans' services law. The
    21  department in consultation with the  commissioner  of  the  division  of
    22  minority  and women's business development and the director of the divi-
    23  sion of [service-disabled] veterans'  business  development  shall  make
    24  training  and  resources  available  to  assist minority and women-owned
    25  business  enterprises  and  [service-disabled]  veteran-owned   business
    26  enterprises  on covered renewable energy systems to achieve and maintain
    27  compliance with prevailing wage requirements. The department shall  make
    28  such  training  and resources available online and shall afford minority
    29  and women-owned business  enterprises  and  [service-disabled]  veteran-
    30  owned  business  enterprises  an  opportunity to submit comments on such
    31  training.
    32    § 9. Subdivision 1 of section 143 of the state finance law, as amended
    33  by section 27 of part PP of chapter 56 of the laws of 2022,  is  amended
    34  to read as follows:
    35    1.  Notwithstanding  any  inconsistent  provision  of  any  general or
    36  special law, the board, division, department, bureau, agency, officer or
    37  commission of the state charged with the duty  of  preparing  plans  and
    38  specifications  for  and  awarding  or  entering  into contracts for the
    39  performance of public work may require the payment of  a  fixed  sum  of
    40  money,  not  exceeding  one hundred dollars, for each copy of such plans
    41  and specifications, by persons or corporations desiring a copy  thereof.
    42  Any  person  or corporation desiring a copy of such plans and specifica-
    43  tions and making the deposit required by this section shall be furnished
    44  with one copy of the plans and specifications. Notwithstanding the fore-
    45  going, where payment is required it shall  be  waived  upon  request  by
    46  minority-  and  women-owned  business  enterprises certified pursuant to
    47  article fifteen-A of the executive law or by  [service-disabled]  veter-
    48  an-owned business enterprises certified pursuant to article three of the
    49  veterans'  services law. Such payment may also be waived when such plans
    50  and specifications are made available and obtained electronically or  in
    51  any non-paper form from the board, division, department, bureau, agency,
    52  officer or commission of the state.
    53    §  10. Paragraph j of subdivision 1 and subdivision 6-d of section 163
    54  of the state finance law, as amended by section 28 of part PP of chapter
    55  56 of the laws of 2022, are amended to read as follows:

        S. 6161                             7

     1    j. "Best value" means the basis for awarding contracts for services to
     2  the offerer which optimizes quality, cost and efficiency, among  respon-
     3  sive and responsible offerers. Such basis shall reflect, wherever possi-
     4  ble, objective and quantifiable analysis. Such basis may also identify a
     5  quantitative  factor  for  offerers that are small businesses, certified
     6  minority- or women-owned business enterprises as defined in subdivisions
     7  one, seven, fifteen and twenty of section three hundred ten of the exec-
     8  utive law or [service-disabled] veteran-owned  business  enterprises  as
     9  defined  in  subdivision  one of section forty of the veterans' services
    10  law to be used in evaluation of offers for  awarding  of  contracts  for
    11  services.
    12    6-d.  Pursuant  to  the  authority provided in subdivision six of this
    13  section, state agencies shall report annually on a fiscal year basis  by
    14  July first of the ensuing year to the director of the division of minor-
    15  ity  and  women-owned  business  development  the total number and total
    16  value of contracts awarded to businesses certified pursuant  to  article
    17  fifteen-A of the executive law, and with respect to contracts awarded to
    18  businesses certified pursuant to article three of the veterans' services
    19  law such information shall be reported to the division of [service-disa-
    20  bled]  veteran-owned business enterprises for inclusion in their respec-
    21  tive annual reports.
    22    § 11. Subdivision 3 of section 103-a of the state technology  law,  as
    23  amended  by  section 31 of part PP of chapter 56 of the laws of 2022, is
    24  amended to read as follows:
    25    3. The director shall  conduct  an  outreach  campaign  informing  the
    26  public  of  the  iCenter and shall conduct specific outreach to minority
    27  and women-owned  business  enterprises  certified  pursuant  to  article
    28  fifteen-A of the executive law, small businesses as such term is defined
    29  in  section  one hundred thirty-one of the economic development law, and
    30  [service disabled] veteran owned business enterprises certified pursuant
    31  to article three of the veterans' services law to inform such businesses
    32  of iCenter initiatives.
    33    § 12. This act shall take effect on the ninetieth day after  it  shall
    34  have become a law; provided, however, that:
    35    (a)  if  section  2 of part PP of chapter 56 of the laws of 2022 shall
    36  not have taken effect on or before such date  then  sections  one,  two,
    37  three, four, five and six of this act shall take effect on the same date
    38  and in the same manner as such chapter of the laws of 2022 takes effect;
    39    (b)  if  section 29 of part PP of chapter 56 of the laws of 2022 shall
    40  not have taken effect on or before such date then section seven of  this
    41  act  shall  take  effect on the same date and in the same manner as such
    42  chapter of the laws of 2022 takes effect;
    43    (c) if section 30 of part PP of chapter 56 of the laws of  2022  shall
    44  not  have taken effect on or before such date then section eight of this
    45  act shall take effect on the same date and in the same  manner  as  such
    46  chapter of the laws of 2022 takes effect;
    47    (d)  if  section 27 of part PP of chapter 56 of the laws of 2022 shall
    48  not have taken effect on or before such date then section nine  of  this
    49  act  shall  take  effect on the same date and in the same manner as such
    50  chapter of the laws of 2022 takes effect;
    51    (e) if section 28 of part PP of chapter 56 of the laws of  2022  shall
    52  not  have  taken  effect on or before such date then section ten of this
    53  act shall take effect on the same date and in the same  manner  as  such
    54  chapter of the laws of 2022 takes effect;
    55    (f)  if  section 31 of part PP of chapter 56 of the laws of 2022 shall
    56  not have taken effect on or before such date then section eleven of this

        S. 6161                             8

     1  act shall take effect on the same date and in the same  manner  as  such
     2  chapter of the laws of 2022 takes effect; and
     3    (g)  the  amendments  to  section 163 of the state finance law made by
     4  section ten of this act shall not affect the repeal of such section  and
     5  shall be deemed repealed therewith.
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