S. 6627 2
BIDDER IN CONJUNCTION WITH THE AWARD OF A STATE CONTRACT OR A PROPOSED
PARTY TO A STATE CONTRACT.
4. "DIRECTOR" SHALL MEAN THE DIRECTOR OF THE DIVISION OF VETERAN-OWNED
BUSINESS DEVELOPMENT IN THE DEPARTMENT OF ECONOMIC DEVELOPMENT.
5. "VETERAN" SHALL MEAN A RESIDENT OF THIS STATE, WHO HAS SERVED ON
ACTIVE DUTY IN THE UNITED STATES ARMY, NAVY, AIR FORCE, MARINES, COAST
GUARD, AND/ OR RESERVES THEREOF, AND/OR THE ARMY NATIONAL GUARD, AIR
NATIONAL GUARD, NEW YORK GUARD AND/OR THE NEW YORK NAVAL MILITIA, AND
WHO IS CURRENTLY IN SERVICE, OR HAS BEEN RELEASED FROM SUCH SERVICE BY
HONORABLE DISCHARGE, OR WHO HAS BEEN FURLOUGHED TO THE RESERVE.
6. "VETERAN-OWNED BUSINESS ENTERPRISE" SHALL MEAN A BUSINESS ENTER-
PRISE, INCLUDING A SOLE PROPRIETORSHIP, PARTNERSHIP, CORPORATION, OR
LIMITED LIABILITY COMPANY THAT IS:
(A) AT LEAST FIFTY-ONE PERCENT OWNED BY A VETERAN;
(B) AN ENTERPRISE IN WHICH SUCH VETERAN OWNERSHIP IS REAL, SUBSTANTIAL
AND CONTINUING;
(C) AN ENTERPRISE IN WHICH SUCH VETERAN OWNERSHIP HAS AND EXERCISES
THE AUTHORITY TO CONTROL INDEPENDENTLY THE DAY-TO-DAY BUSINESS DECISIONS
OF THE ENTERPRISE;
(D) AN ENTERPRISE AUTHORIZED TO DO BUSINESS IN THIS STATE AND INDE-
PENDENTLY OWNED AND OPERATED;
(E) AN ENTERPRISE OWNED BY AN INDIVIDUAL OR INDIVIDUALS, WHOSE OWNER-
SHIP, CONTROL AND OPERATION ARE RELIED UPON FOR CERTIFICATION, WITH A
PERSONAL NET WORTH THAT DOES NOT EXCEED THREE MILLION FIVE HUNDRED THOU-
SAND DOLLARS, AS ADJUSTED ANNUALLY ON THE FIRST OF JANUARY FOR INFLATION
ACCORDING TO THE CONSUMER PRICE INDEX OF THE PREVIOUS YEAR; AND
(F) AN ENTERPRISE THAT IS A SMALL BUSINESS PURSUANT TO SUBDIVISION
FOURTEEN OF THIS SECTION.
7. "STATE AGENCY" SHALL MEAN:
(A) (I) ANY STATE DEPARTMENT; OR
(II) ANY DIVISION, BOARD, COMMISSION OR BUREAU OF ANY STATE DEPART-
MENT; OR
(III) THE STATE UNIVERSITY OF NEW YORK AND THE CITY UNIVERSITY OF NEW
YORK, INCLUDING ALL THEIR CONSTITUENT UNITS EXCEPT COMMUNITY COLLEGES
AND THE INDEPENDENT INSTITUTIONS OPERATING STATUTORY OR CONTRACT
COLLEGES ON BEHALF OF THE STATE; OR
(IV) A BOARD, A MAJORITY OF WHOSE MEMBERS ARE APPOINTED BY THE GOVER-
NOR OR WHO SERVE BY VIRTUE OF BEING STATE OFFICERS OR EMPLOYEES AS
DEFINED IN SUBPARAGRAPH (I), (II) OR (III) OF PARAGRAPH (I) OF SUBDIVI-
SION ONE OF SECTION SEVENTY-THREE OF THE PUBLIC OFFICERS LAW; OR
(B) A "STATE AUTHORITY," AS DEFINED IN SUBDIVISION ONE OF SECTION TWO
OF THE PUBLIC AUTHORITIES LAW.
8. "STATE ASSISTED HOUSING PROJECT" OR "PROJECT" SHALL MEAN, FOR SUCH
PROJECTS WHICH RECEIVE FROM THE NEW YORK STATE HOUSING FINANCE AGENCY,
THE AFFORDABLE HOUSING CORPORATION, THE HOUSING TRUST FUND CORPORATION
OR THE DIVISION OF HOUSING AND COMMUNITY RENEWAL A GRANT OR LOAN FOR ALL
OR PART OF THE TOTAL PROJECT COST:
(A) A "PERMANENT HOUSING PROJECT FOR HOMELESS FAMILIES" AS DEFINED IN
SUBDIVISION FIVE OF SECTION SIXTY-FOUR OF THE PRIVATE HOUSING FINANCE
LAW;
(B) A "PROJECT" AS DEFINED IN SUBDIVISION TWELVE OF SECTION ONE THOU-
SAND ONE HUNDRED ONE OF THE PRIVATE HOUSING FINANCE LAW PROVIDED SAID
PROJECT IS LOCATED IN A LARGE COUNTY AND CONSISTS OF MORE THAN TWELVE
RESIDENTIAL UNITS AT A SINGLE SITE;
(C) "AFFORDABLE HOME OWNERSHIP DEVELOPMENT PROGRAMS" AS DEFINED IN
SUBDIVISION EIGHT OF SECTION ONE THOUSAND ONE HUNDRED ELEVEN OF THE
S. 6627 3
PRIVATE HOUSING FINANCE LAW PROVIDED SAID PROJECT IS LOCATED IN A METRO-
POLITAN AREA AS HEREIN DEFINED AND CONSISTS OF MORE THAN TWELVE RESIDEN-
TIAL UNITS AT A SINGLE SITE;
(D) A "TURNKEY/ENHANCED RENTAL PROJECT" AS DEFINED IN SUBDIVISION TWO
OF SECTION ONE THOUSAND ONE HUNDRED SIX-A OF THE PRIVATE HOUSING FINANCE
LAW;
(E) "INFRASTRUCTURE IMPROVEMENTS" AS DEFINED IN SUBDIVISION TWO OF
SECTION ONE THOUSAND ONE HUNDRED THIRTY-ONE OF THE PRIVATE HOUSING
FINANCE LAW, TO THE EXTENT THAT SUCH "INFRASTRUCTURE IMPROVEMENTS" ARE
APPLIED FOR IN CONNECTION WITH A STATE ASSISTED HOUSING PROJECT AS
DEFINED IN PARAGRAPHS (A) THROUGH (D) OF THIS SUBDIVISION AND PROVIDED
FURTHER THAT THE APPLICANT FOR SUCH INFRASTRUCTURE IMPROVEMENTS AND FOR
SUCH STATE ASSISTED HOUSING PROJECT ARE IDENTICAL.
9. "STATE CONTRACT" SHALL MEAN:
(A) A WRITTEN AGREEMENT OR PURCHASE ORDER INSTRUMENT, PROVIDING FOR A
TOTAL EXPENDITURE IN EXCESS OF TWENTY-FIVE THOUSAND DOLLARS, WHEREBY A
CONTRACTING AGENCY IS COMMITTED TO EXPEND OR DOES EXPEND FUNDS IN RETURN
FOR LABOR, SERVICES INCLUDING BUT NOT LIMITED TO LEGAL, FINANCIAL AND
OTHER PROFESSIONAL SERVICES, SUPPLIES, EQUIPMENT, MATERIALS OR ANY
COMBINATION OF THE FOREGOING, TO BE PERFORMED FOR, OR RENDERED OR
FURNISHED TO THE CONTRACTING AGENCY;
(B) A WRITTEN AGREEMENT IN EXCESS OF ONE HUNDRED THOUSAND DOLLARS
WHEREBY A CONTRACTING AGENCY IS COMMITTED TO EXPEND OR DOES EXPEND FUNDS
FOR THE ACQUISITION, CONSTRUCTION, DEMOLITION, REPLACEMENT, MAJOR REPAIR
OR RENOVATION OF REAL PROPERTY AND IMPROVEMENTS THEREON; AND
(C) A WRITTEN AGREEMENT IN EXCESS OF ONE HUNDRED THOUSAND DOLLARS
WHEREBY THE OWNER OF A STATE ASSISTED HOUSING PROJECT IS COMMITTED TO
EXPEND OR DOES EXPEND FUNDS FOR THE ACQUISITION, CONSTRUCTION, DEMOLI-
TION, REPLACEMENT, MAJOR REPAIR OR RENOVATION OF REAL PROPERTY AND
IMPROVEMENTS THEREON FOR SUCH PROJECT.
10. "SUBCONTRACT" SHALL MEAN AN AGREEMENT PROVIDING FOR A TOTAL
EXPENDITURE IN EXCESS OF TWENTY-FIVE THOUSAND DOLLARS FOR THE
CONSTRUCTION, DEMOLITION, REPLACEMENT, MAJOR REPAIR, RENOVATION, PLAN-
NING OR DESIGN OF REAL PROPERTY AND IMPROVEMENTS THEREON BETWEEN A
CONTRACTOR AND ANY INDIVIDUAL OR BUSINESS ENTERPRISE, INCLUDING A SOLE
PROPRIETORSHIP, PARTNERSHIP, CORPORATION, OR NOT-FOR-PROFIT CORPORATION,
IN WHICH A PORTION OF A CONTRACTOR'S OBLIGATION UNDER A STATE CONTRACT
IS UNDERTAKEN OR ASSUMED, BUT SHALL NOT INCLUDE ANY CONSTRUCTION, DEMO-
LITION, REPLACEMENT, MAJOR REPAIR, RENOVATION, PLANNING OR DESIGN OF
REAL PROPERTY OR IMPROVEMENTS THEREON FOR THE BENEFICIAL USE OF THE
CONTRACTOR.
11. "COMMISSIONER" SHALL MEAN THE COMMISSIONER OF ECONOMIC DEVELOP-
MENT.
12. "LESSEE" SHALL MEAN AN INDIVIDUAL, A BUSINESS ENTERPRISE, INCLUD-
ING A SOLE PROPRIETORSHIP, A PARTNERSHIP, A CORPORATION, A NOT-FOR-PRO-
FIT CORPORATION, OR ANY OTHER PARTY TO A LEASE WITH A STATE AGENCY AS
DEFINED IN SUBDIVISION SEVEN OF THIS SECTION, OR A RESPONDENT IN
CONJUNCTION WITH THE AWARD OF SUCH A LEASE OR A PROPOSED LESSEE WITH A
STATE AGENCY AS DEFINED IN SUBDIVISION SEVEN OF THIS SECTION.
13. "PERSONAL NET WORTH" SHALL MEAN THE AGGREGATE ADJUSTED NET VALUE
OF THE ASSETS OF AN INDIVIDUAL REMAINING AFTER TOTAL LIABILITIES ARE
DEDUCTED. PERSONAL NET WORTH INCLUDES THE INDIVIDUAL'S SHARE OF ASSETS
HELD JOINTLY WITH SAID INDIVIDUAL'S SPOUSE AND DOES NOT INCLUDE THE
INDIVIDUAL'S OWNERSHIP INTEREST IN THE VETERAN-OWNED BUSINESS ENTER-
PRISE, THE INDIVIDUAL'S EQUITY IN HIS OR HER PRIMARY RESIDENCE, OR UP TO
FIVE HUNDRED THOUSAND DOLLARS OF THE PRESENT CASH VALUE OF ANY QUALIFIED
S. 6627 4
RETIREMENT SAVINGS PLAN OR INDIVIDUAL RETIREMENT ACCOUNT HELD BY THE
INDIVIDUAL LESS ANY PENALTIES FOR EARLY WITHDRAWAL.
14. "SMALL BUSINESS" AS USED IN THIS SECTION, UNLESS OTHERWISE INDI-
CATED, SHALL MEAN A BUSINESS WHICH HAS A SIGNIFICANT BUSINESS PRESENCE
IN THE STATE, IS INDEPENDENTLY OWNED AND OPERATED, AND EMPLOYS, BASED ON
ITS INDUSTRY, A CERTAIN NUMBER OF PERSONS AS DETERMINED BY THE DIRECTOR,
BUT NOT TO EXCEED THREE HUNDRED, TAKING INTO CONSIDERATION FACTORS WHICH
INCLUDE, BUT ARE NOT LIMITED TO, FEDERAL SMALL BUSINESS ADMINISTRATION
STANDARDS. THE DIRECTOR MAY ISSUE REGULATIONS ON THE CONSTRUCTION OF THE
TERMS IN THIS DEFINITION.
S 369-A. OPPORTUNITIES FOR VETERAN-OWNED BUSINESS ENTERPRISES. 1.
GOALS AND REQUIREMENTS FOR AGENCIES AND CONTRACTORS. EACH AGENCY SHALL
STRUCTURE PROCUREMENT PROCEDURES FOR CONTRACTS MADE DIRECTLY OR INDI-
RECTLY TO VETERAN-OWNED BUSINESS ENTERPRISES, CONSISTENT WITH THE
PURPOSES OF THIS ARTICLE, TO ATTEMPT TO ACHIEVE THE FOLLOWING RESULTS
WITH REGARD TO TOTAL ANNUAL STATEWIDE PROCUREMENT:
(A) CONSTRUCTION INDUSTRY FOR CERTIFIED VETERAN-OWNED BUSINESS ENTER-
PRISES: THREE PERCENT;
(B) CONSTRUCTION RELATED PROFESSIONAL SERVICES INDUSTRY FOR CERTIFIED
VETERAN-OWNED BUSINESS ENTERPRISES: THREE PERCENT;
(C) NON-CONSTRUCTION RELATED SERVICES INDUSTRY FOR CERTIFIED VETERAN-
OWNED BUSINESS ENTERPRISES: THREE PERCENT;
(D) COMMODITIES INDUSTRY FOR CERTIFIED VETERAN-OWNED BUSINESS ENTER-
PRISES: THREE PERCENT; AND
(E) OVERALL AGENCY TOTAL DOLLAR VALUE OF PROCUREMENT FOR CERTIFIED
VETERAN-OWNED BUSINESS ENTERPRISES: THREE PERCENT.
2. THE DIRECTOR SHALL PROMULGATE RULES AND REGULATIONS PURSUANT TO THE
GOALS ESTABLISHED IN SUBDIVISION ONE OF THIS SECTION THAT PROVIDE MEAS-
URES AND PROCEDURES TO ENSURE THAT CERTIFIED VETERAN-OWNED BUSINESSES
SHALL BE GIVEN THE OPPORTUNITY FOR MAXIMUM FEASIBLE PARTICIPATION IN THE
PERFORMANCE OF STATE CONTRACTS AND TO ASSIST IN THE AGENCY'S IDENTIFICA-
TION OF THOSE STATE CONTRACTS FOR WHICH VETERAN-OWNED CERTIFIED BUSI-
NESSES MAY BEST BID TO ACTIVELY AND AFFIRMATIVELY PROMOTE AND ASSIST
THEIR PARTICIPATION IN THE PERFORMANCE OF STATE CONTRACTS SO AS TO
FACILITATE THE AGENCY'S ACHIEVEMENT OF THE MAXIMUM FEASIBLE PORTION OF
THE GOALS FOR STATE CONTRACTS TO SUCH BUSINESSES.
2-A. THE DIRECTOR SHALL PROMULGATE RULES AND REGULATIONS THAT WILL
ACCOMPLISH THE FOLLOWING:
(A) PROVIDE FOR THE CERTIFICATION AND DECERTIFICATION OF VETERAN-OWNED
BUSINESS ENTERPRISES FOR ALL AGENCIES THROUGH A SINGLE PROCESS THAT
MEETS APPLICABLE REQUIREMENTS;
(B) REQUIRE THAT EACH CONTRACT SOLICITATION DOCUMENT ACCOMPANYING EACH
SOLICITATION SET FORTH THE EXPECTED DEGREE OF VETERAN-OWNED BUSINESS
ENTERPRISE PARTICIPATION BASED, IN PART, ON:
(I) THE POTENTIAL SUBCONTRACT OPPORTUNITIES AVAILABLE IN THE PRIME
PROCUREMENT CONTRACT; AND
(II) THE AVAILABILITY, AS CONTAINED WITHIN THE STUDY, OF CERTIFIED
VETERAN-OWNED BUSINESS ENTERPRISES TO RESPOND COMPETITIVELY TO THE
POTENTIAL SUBCONTRACT OPPORTUNITIES;
(C) REQUIRE THAT EACH AGENCY PROVIDE A CURRENT LIST OF CERTIFIED
VETERAN BUSINESS ENTERPRISES TO EACH PROSPECTIVE CONTRACTOR;
(D) ALLOW A CONTRACTOR THAT IS A CERTIFIED VETERAN-OWNED BUSINESS
ENTERPRISE TO USE THE WORK IT PERFORMS TO MEET REQUIREMENTS FOR USE OF
VETERAN-OWNED BUSINESS ENTERPRISES AS SUBCONTRACTORS;
(E) PROVIDE FOR JOINT VENTURES, WHICH A BIDDER MAY COUNT TOWARD MEET-
ING ITS VETERAN-OWNED BUSINESS ENTERPRISE PARTICIPATION;
S. 6627 5
(F) CONSISTENT WITH SUBDIVISION FIVE OF THIS SECTION, PROVIDE FOR
CIRCUMSTANCES UNDER WHICH AN AGENCY MAY WAIVE OBLIGATIONS OF THE
CONTRACTOR RELATING TO VETERAN BUSINESS ENTERPRISE PARTICIPATION;
(G) REQUIRE THAT AN AGENCY VERIFY THAT VETERAN-OWNED BUSINESS ENTER-
PRISES LISTED IN A SUCCESSFUL BID ARE ACTUALLY PARTICIPATING TO THE
EXTENT LISTED IN THE PROJECT FOR WHICH THE BID WAS SUBMITTED;
(H) PROVIDE FOR THE COLLECTION OF STATISTICAL DATA BY EACH AGENCY
CONCERNING ACTUAL VETERAN-OWNED BUSINESS ENTERPRISE PARTICIPATION; AND
3. SOLELY FOR THE PURPOSE OF PROVIDING THE OPPORTUNITY FOR MEANINGFUL
PARTICIPATION BY CERTIFIED BUSINESSES IN THE PERFORMANCE OF STATE
CONTRACTS AS PROVIDED IN THIS SECTION, STATE CONTRACTS SHALL INCLUDE
LEASES OF REAL PROPERTY BY A STATE AGENCY TO A LESSEE WHERE: THE TERMS
OF SUCH LEASES PROVIDE FOR THE CONSTRUCTION, DEMOLITION, REPLACEMENT,
MAJOR REPAIR OR RENOVATION OF REAL PROPERTY AND IMPROVEMENTS THEREON BY
SUCH LESSEE; AND THE COST OF SUCH CONSTRUCTION, DEMOLITION, REPLACEMENT,
MAJOR REPAIR OR RENOVATION OF REAL PROPERTY AND IMPROVEMENTS THEREON
SHALL EXCEED THE SUM OF ONE HUNDRED THOUSAND DOLLARS. REPORTS TO THE
DIRECTOR PURSUANT TO SECTION THREE HUNDRED SIXTY-NINE-C OF THIS ARTICLE
SHALL INCLUDE ACTIVITIES WITH RESPECT TO ALL SUCH STATE CONTRACTS.
CONTRACTING AGENCIES SHALL INCLUDE OR REQUIRE TO BE INCLUDED WITH
RESPECT TO STATE CONTRACTS FOR THE ACQUISITION, CONSTRUCTION, DEMOLI-
TION, REPLACEMENT, MAJOR REPAIR OR RENOVATION OF REAL PROPERTY AND
IMPROVEMENTS THEREON, SUCH PROVISIONS AS MAY BE NECESSARY TO EFFECTUATE
THE PROVISIONS OF THIS SECTION IN EVERY BID SPECIFICATION AND STATE
CONTRACT, INCLUDING, BUT NOT LIMITED TO: (A) PROVISIONS REQUIRING
CONTRACTORS TO MAKE A GOOD FAITH EFFORT TO SOLICIT ACTIVE PARTICIPATION
BY ENTERPRISES IDENTIFIED IN THE DIRECTORY OF CERTIFIED BUSINESSES
PROVIDED TO THE CONTRACTING AGENCY BY THE OFFICE; (B) REQUIRING THE
PARTIES TO AGREE AS A CONDITION OF ENTERING INTO SUCH CONTRACT, TO BE
BOUND BY THE PROVISIONS OF SECTION THREE HUNDRED SIXTY-NINE-D OF THIS
ARTICLE; AND (C) REQUIRING THE CONTRACTOR TO INCLUDE THE PROVISIONS SET
FORTH IN PARAGRAPHS (A) AND (B) OF THIS SUBDIVISION IN EVERY SUBCONTRACT
IN A MANNER THAT THE PROVISIONS WILL BE BINDING UPON EACH SUBCONTRACTOR
AS TO WORK IN CONNECTION WITH SUCH CONTRACT. PROVIDED, HOWEVER, THAT NO
SUCH PROVISIONS SHALL BE BINDING UPON CONTRACTORS OR SUBCONTRACTORS IN
THE PERFORMANCE OF WORK OR THE PROVISION OF SERVICES THAT ARE UNRELATED,
SEPARATE OR DISTINCT FROM THE STATE CONTRACT AS EXPRESSED BY ITS TERMS,
AND NOTHING IN THIS SECTION SHALL AUTHORIZE THE DIRECTOR OR ANY
CONTRACTING AGENCY TO IMPOSE ANY REQUIREMENT ON A CONTRACTOR OR SUBCON-
TRACTOR EXCEPT WITH RESPECT TO A STATE CONTRACT.
4. (A) CONTRACTING AGENCIES SHALL ADMINISTER THE RULES AND REGULATIONS
PROMULGATED BY THE DIRECTOR IN A GOOD FAITH EFFORT TO MEET THE MAXIMUM
FEASIBLE PORTION OF THE AGENCY'S GOALS ADOPTED PURSUANT TO THIS ARTICLE
AND THE REGULATIONS OF THE DIRECTOR. SUCH RULES AND REGULATIONS: SHALL
REQUIRE A CONTRACTOR TO SUBMIT A UTILIZATION PLAN AFTER BIDS ARE OPENED,
WHEN BIDS ARE REQUIRED, BUT PRIOR TO THE AWARD OF A STATE CONTRACT;
SHALL REQUIRE THE CONTRACTING AGENCY TO REVIEW THE UTILIZATION PLAN
SUBMITTED BY THE CONTRACTOR AND TO POST THE UTILIZATION PLAN AND ANY
WAIVERS OF COMPLIANCE ISSUED PURSUANT TO SUBDIVISION FIVE OF THIS
SECTION ON THE WEBSITE OF THE CONTRACTING AGENCY WITHIN A REASONABLE
PERIOD OF TIME AS ESTABLISHED BY THE DIRECTOR; SHALL REQUIRE THE
CONTRACTING AGENCY TO NOTIFY THE CONTRACTOR IN WRITING WITHIN A PERIOD
OF TIME SPECIFIED BY THE DIRECTOR AS TO ANY DEFICIENCIES CONTAINED IN
THE CONTRACTOR'S UTILIZATION PLAN; SHALL REQUIRE REMEDY THEREOF WITHIN A
PERIOD OF TIME SPECIFIED BY THE DIRECTOR; SHALL REQUIRE THE CONTRACTOR
TO SUBMIT PERIODIC COMPLIANCE REPORTS RELATING TO THE OPERATION AND
S. 6627 6
IMPLEMENTATION OF ANY UTILIZATION PLAN; SHALL NOT ALLOW ANY AUTOMATIC
WAIVERS BUT SHALL ALLOW A CONTRACTOR TO APPLY FOR A PARTIAL OR TOTAL
WAIVER OF THE VETERAN-OWNED BUSINESS ENTERPRISE PARTICIPATION REQUIRE-
MENTS PURSUANT TO SUBDIVISIONS FIVE AND SIX OF THIS SECTION; SHALL ALLOW
A CONTRACTOR TO FILE A COMPLAINT WITH THE DIRECTOR PURSUANT TO SUBDIVI-
SION SIX OF THIS SECTION IN THE EVENT A CONTRACTING AGENCY HAS FAILED OR
REFUSED TO ISSUE A WAIVER OF THE VETERAN-OWNED BUSINESS ENTERPRISE
PARTICIPATION REQUIREMENTS OR HAS DENIED SUCH REQUEST FOR A WAIVER.
(B) THE RULES AND REGULATIONS PROMULGATED PURSUANT TO THIS SUBDIVISION
REGARDING A UTILIZATION PLAN SHALL PROVIDE THAT WHERE ENTERPRISES HAVE
BEEN IDENTIFIED WITHIN A UTILIZATION PLAN, A CONTRACTOR SHALL ATTEMPT,
IN GOOD FAITH, TO UTILIZE SUCH ENTERPRISE AT LEAST TO THE EXTENT INDI-
CATED. A CONTRACTING AGENCY MAY REQUIRE A CONTRACTOR TO INDICATE, WITHIN
A UTILIZATION PLAN, WHAT MEASURES AND PROCEDURES HE OR SHE INTENDS TO
TAKE TO COMPLY WITH THE PROVISIONS OF THIS ARTICLE, BUT MAY NOT REQUIRE,
AS A CONDITION OF AWARD OF, OR COMPLIANCE WITH, A CONTRACT THAT A
CONTRACTOR UTILIZE A PARTICULAR ENTERPRISE IN PERFORMANCE OF THE
CONTRACT.
(C) WITHOUT LIMITING OTHER GROUNDS FOR THE DISQUALIFICATION OF BIDS OR
PROPOSALS ON THE BASIS OF NON-RESPONSIBILITY, A CONTRACTING AGENCY MAY
DISQUALIFY THE BID OR PROPOSAL OF A CONTRACTOR AS BEING NON-RESPONSIBLE
FOR FAILURE TO REMEDY NOTIFIED DEFICIENCIES CONTAINED IN THE CONTRAC-
TOR'S UTILIZATION PLAN WITHIN A PERIOD OF TIME SPECIFIED IN REGULATIONS
PROMULGATED BY THE DIRECTOR AFTER RECEIVING NOTIFICATION OF SUCH DEFI-
CIENCIES FROM THE CONTRACTING AGENCY. WHERE FAILURE TO REMEDY ANY NOTI-
FIED DEFICIENCY IN THE UTILIZATION PLAN IS A GROUND FOR DISQUALIFICA-
TION, THAT ISSUE AND ALL OTHER GROUNDS FOR DISQUALIFICATION SHALL BE
STATED IN WRITING BY THE CONTRACTING AGENCY. WHERE THE CONTRACTING AGEN-
CY STATES THAT A FAILURE TO REMEDY ANY NOTIFIED DEFICIENCY IN THE UTILI-
ZATION PLAN IS A GROUND FOR DISQUALIFICATION THE CONTRACTOR SHALL BE
ENTITLED TO AN ADMINISTRATIVE HEARING, ON A RECORD, INVOLVING ALL
GROUNDS STATED BY THE CONTRACTING AGENCY. SUCH HEARING SHALL BE
CONDUCTED BY THE APPROPRIATE AUTHORITY OF THE CONTRACTING AGENCY TO
REVIEW THE DETERMINATION OF DISQUALIFICATION. A FINAL ADMINISTRATIVE
DETERMINATION MADE FOLLOWING SUCH HEARING SHALL BE REVIEWABLE IN A
PROCEEDING COMMENCED UNDER ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE
LAW AND RULES, PROVIDED THAT SUCH PROCEEDING IS COMMENCED WITHIN THIRTY
DAYS OF THE NOTICE GIVEN BY CERTIFIED MAIL RETURN RECEIPT REQUESTED
RENDERING SUCH FINAL ADMINISTRATIVE DETERMINATION. SUCH PROCEEDING
SHALL BE COMMENCED IN THE SUPREME COURT, APPELLATE DIVISION, THIRD
DEPARTMENT AND SUCH PROCEEDING SHALL BE PREFERRED OVER ALL OTHER CIVIL
CAUSES EXCEPT ELECTION CAUSES, AND SHALL BE HEARD AND DETERMINED IN
PREFERENCE TO ALL OTHER CIVIL BUSINESS PENDING THEREIN, EXCEPT ELECTION
MATTERS, IRRESPECTIVE OF POSITION ON THE CALENDAR. APPEALS TAKEN TO THE
COURT OF APPEALS OF THE STATE OF NEW YORK SHALL BE SUBJECT TO THE SAME
PREFERENCE.
5. WHERE IT APPEARS THAT A CONTRACTOR CANNOT, AFTER A GOOD FAITH
EFFORT, COMPLY WITH THE VETERAN-OWNED BUSINESS ENTERPRISE PARTICIPATION
REQUIREMENTS SET FORTH IN A PARTICULAR STATE CONTRACT, A CONTRACTOR MAY
FILE A WRITTEN APPLICATION WITH THE CONTRACTING AGENCY REQUESTING A
PARTIAL OR TOTAL WAIVER OF SUCH REQUIREMENTS SETTING FORTH THE REASONS
FOR SUCH CONTRACTOR'S INABILITY TO MEET ANY OR ALL OF THE PARTICIPATION
REQUIREMENTS TOGETHER WITH AN EXPLANATION OF THE EFFORTS UNDERTAKEN BY
THE CONTRACTOR TO OBTAIN THE REQUIRED VETERAN-OWNED BUSINESS ENTERPRISE
PARTICIPATION. IN IMPLEMENTING THE PROVISIONS OF THIS SECTION, THE
CONTRACTING AGENCY SHALL CONSIDER THE NUMBER AND TYPES OF VETERAN-OWNED
S. 6627 7
BUSINESS ENTERPRISES LOCATED IN THE REGION IN WHICH THE STATE CONTRACT
IS TO BE PERFORMED, THE TOTAL DOLLAR VALUE OF THE STATE CONTRACT, THE
SCOPE OF WORK TO BE PERFORMED AND THE PROJECT SIZE AND TERM. IF, BASED
ON SUCH CONSIDERATIONS, THE CONTRACTING AGENCY DETERMINES THERE IS NOT A
REASONABLE AVAILABILITY OF CONTRACTORS ON THE LIST OF CERTIFIED BUSINESS
TO FURNISH SERVICES FOR THE PROJECT, IT SHALL ISSUE A WAIVER OF COMPLI-
ANCE TO THE CONTRACTOR. IN MAKING SUCH DETERMINATION, THE CONTRACTING
AGENCY SHALL FIRST CONSIDER THE AVAILABILITY OF OTHER BUSINESS ENTER-
PRISES LOCATED IN THE REGION AND SHALL THEREAFTER CONSIDER THE FINANCIAL
ABILITY OF VETERAN-OWNED BUSINESSES LOCATED OUTSIDE THE REGION IN WHICH
THE CONTRACT IS TO BE PERFORMED TO PERFORM THE STATE CONTRACT.
6. IN THE EVENT THAT A CONTRACTING AGENCY FAILS OR REFUSES TO ISSUE A
WAIVER TO A CONTRACTOR AS REQUESTED WITHIN TWENTY DAYS AFTER HAVING MADE
APPLICATION THEREFORE PURSUANT TO SUBDIVISION FIVE OF THIS SECTION OR IF
THE CONTRACTING AGENCY DENIES SUCH APPLICATION, IN WHOLE OR IN PART, THE
CONTRACTOR MAY FILE A COMPLAINT WITH THE DIRECTOR PURSUANT TO SECTION
THREE HUNDRED SIXTY-NINE-D OF THIS ARTICLE SETTING FORTH THE FACTS AND
CIRCUMSTANCES GIVING RISE TO THE CONTRACTOR'S COMPLAINT TOGETHER WITH A
DEMAND FOR RELIEF. THE CONTRACTOR SHALL SERVE A COPY OF SUCH COMPLAINT
UPON THE CONTRACTING AGENCY BY PERSONAL SERVICE OR BY CERTIFIED MAIL,
RETURN RECEIPT REQUESTED. THE CONTRACTING AGENCY SHALL BE AFFORDED AN
OPPORTUNITY TO RESPOND TO SUCH COMPLAINT IN WRITING.
7. IF, AFTER THE REVIEW OF A CONTRACTOR'S VETERAN-OWNED BUSINESS
UTILIZATION PLAN OR REVIEW OF A PERIODIC COMPLIANCE REPORT AND AFTER
SUCH CONTRACTOR HAS BEEN AFFORDED AN OPPORTUNITY TO RESPOND TO A NOTICE
OF DEFICIENCY ISSUED BY THE CONTRACTING AGENCY IN CONNECTION THEREWITH,
IT APPEARS THAT A CONTRACTOR IS FAILING OR REFUSING TO COMPLY WITH THE
VETERAN-OWNED BUSINESS PARTICIPATION REQUIREMENTS AS SET FORTH IN THE
STATE CONTRACT AND WHERE NO WAIVER FROM SUCH REQUIREMENTS HAS BEEN
GRANTED, THE CONTRACTING AGENCY MAY FILE A WRITTEN COMPLAINT WITH THE
DIRECTOR PURSUANT TO SECTION THREE HUNDRED SIXTY-NINE-D OF THIS ARTICLE
SETTING FORTH THE FACTS AND CIRCUMSTANCES GIVING RISE TO THE CONTRACTING
AGENCY'S COMPLAINT TOGETHER WITH A DEMAND FOR RELIEF. THE CONTRACTING
AGENCY SHALL SERVE A COPY OF SUCH COMPLAINT UPON THE CONTRACTOR BY
PERSONAL SERVICE OR BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED. THE
CONTRACTOR SHALL BE AFFORDED AN OPPORTUNITY TO RESPOND TO SUCH COMPLAINT
IN WRITING.
S 369-B. STATEWIDE CERTIFICATION PROGRAM. 1. THE DIRECTOR SHALL
PROMULGATE RULES AND REGULATIONS PROVIDING FOR THE ESTABLISHMENT OF A
STATEWIDE CERTIFICATION PROGRAM INCLUDING RULES AND REGULATIONS GOVERN-
ING THE APPROVAL, DENIAL OR REVOCATION OF ANY SUCH CERTIFICATION.
2. FOR THE PURPOSES OF THIS ARTICLE, THE OFFICE SHALL BE RESPONSIBLE
FOR VERIFYING BUSINESSES AS BEING OWNED, OPERATED, AND CONTROLLED BY
VETERANS AND FOR CERTIFYING SUCH VERIFIED BUSINESSES. THE DIRECTOR SHALL
PREPARE A DIRECTORY OF CERTIFIED BUSINESSES FOR USE BY CONTRACTING AGEN-
CIES AND CONTRACTORS IN CARRYING OUT THE PROVISIONS OF THIS ARTICLE. THE
DIRECTOR SHALL PERIODICALLY UPDATE THE DIRECTORY.
3. FOLLOWING APPLICATION FOR CERTIFICATION PURSUANT TO THIS SECTION,
THE DIRECTOR SHALL PROVIDE THE APPLICANT WITH WRITTEN NOTICE OF THE
STATUS OF THE APPLICATION, INCLUDING NOTICE OF ANY OUTSTANDING DEFICIEN-
CIES, WITHIN THIRTY DAYS. WITHIN SIXTY DAYS OF SUBMISSION OF A FINAL
COMPLETED APPLICATION, THE DIRECTOR SHALL PROVIDE THE APPLICANT WITH
WRITTEN NOTICE OF A DETERMINATION BY THE OFFICE APPROVING OR DENYING
SUCH CERTIFICATION AND, IN THE EVENT OF A DENIAL A STATEMENT SETTING
FORTH THE REASONS FOR SUCH DENIAL. UPON A DETERMINATION DENYING OR
REVOKING CERTIFICATION, THE BUSINESS ENTERPRISE FOR WHICH CERTIFICATION
S. 6627 8
HAS BEEN SO DENIED OR REVOKED SHALL, UPON WRITTEN REQUEST MADE WITHIN
THIRTY DAYS FROM RECEIPT OF NOTICE OF SUCH DETERMINATION, BE ENTITLED TO
A HEARING BEFORE AN INDEPENDENT HEARING OFFICER DESIGNATED FOR SUCH
PURPOSE BY THE DIRECTOR. IN THE EVENT THAT A REQUEST FOR A HEARING IS
NOT MADE WITHIN SUCH THIRTY DAY PERIOD, SUCH DETERMINATION SHALL BE
DEEMED TO BE FINAL. THE INDEPENDENT HEARING OFFICER SHALL CONDUCT A
HEARING AND UPON THE CONCLUSION OF SUCH HEARING, ISSUE A WRITTEN RECOM-
MENDATION TO THE DIRECTOR TO AFFIRM, REVERSE OR MODIFY SUCH DETERMI-
NATION OF THE DIRECTOR. SUCH WRITTEN RECOMMENDATION SHALL BE ISSUED TO
THE PARTIES. THE DIRECTOR, WITHIN THIRTY DAYS, BY ORDER, MUST ACCEPT,
REJECT OR MODIFY SUCH RECOMMENDATION OF THE HEARING OFFICER AND SET
FORTH IN WRITING THE REASONS THEREFOR. THE DIRECTOR SHALL SERVE A COPY
OF SUCH ORDER AND REASONS THEREFOR UPON THE BUSINESS ENTERPRISE BY
PERSONAL SERVICE OR BY CERTIFIED MAIL RETURN RECEIPT REQUESTED. THE
ORDER OF THE DIRECTOR SHALL BE SUBJECT TO REVIEW PURSUANT TO ARTICLE
SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES.
4. ALL CERTIFICATIONS SHALL BE VALID FOR A PERIOD OF THREE YEARS.
S 369-C. RESPONSIBILITIES OF CONTRACTING AGENCIES. 1. EACH CONTRACTING
AGENCY SHALL BE RESPONSIBLE FOR MONITORING STATE CONTRACTS UNDER ITS
JURISDICTION, AND RECOMMENDING MATTERS TO THE OFFICE RESPECTING NON-COM-
PLIANCE WITH THE PROVISIONS OF THIS ARTICLE SO THAT THE OFFICE MAY TAKE
SUCH ACTION AS IS APPROPRIATE TO INSURE COMPLIANCE WITH THE PROVISIONS
OF THIS ARTICLE, THE RULES AND REGULATIONS OF THE DIRECTOR ISSUED HERE-
UNDER AND THE CONTRACTUAL PROVISIONS REQUIRED PURSUANT TO THIS ARTICLE.
ALL CONTRACTING AGENCIES SHALL COMPLY WITH THE RULES AND REGULATIONS OF
THE OFFICE AND ARE DIRECTED TO COOPERATE WITH THE OFFICE AND TO FURNISH
TO THE OFFICE SUCH INFORMATION AND ASSISTANCE AS MAY BE REQUIRED IN THE
PERFORMANCE OF ITS FUNCTIONS UNDER THIS ARTICLE.
2. EACH CONTRACTING AGENCY SHALL PROVIDE TO PROSPECTIVE BIDDERS A
CURRENT COPY OF THE DIRECTORY OF CERTIFIED BUSINESSES, AND A COPY OF THE
REGULATIONS REQUIRED PURSUANT TO SECTIONS THREE HUNDRED SIXTY-NINE-A OF
THIS ARTICLE AT THE TIME BIDS OR PROPOSALS ARE SOLICITED.
3. EACH CONTRACTING AGENCY SHALL REPORT TO THE DIRECTOR WITH RESPECT
TO ACTIVITIES UNDERTAKEN TO PROMOTE EMPLOYMENT OF VETERANS AND PROMOTE
AND INCREASE PARTICIPATION BY CERTIFIED BUSINESSES WITH RESPECT TO STATE
CONTRACTS AND SUBCONTRACTS. SUCH REPORTS SHALL BE SUBMITTED PERIOD-
ICALLY, BUT NOT LESS FREQUENTLY THAN ANNUALLY, AS REQUIRED BY THE DIREC-
TOR, AND SHALL INCLUDE SUCH INFORMATION AS IS NECESSARY FOR THE DIRECTOR
TO DETERMINE WHETHER THE CONTRACTING AGENCY AND CONTRACTOR HAVE COMPLIED
WITH THE PURPOSES OF THIS ARTICLE, INCLUDING, WITHOUT LIMITATION, A
SUMMARY OF ALL WAIVERS OF THE REQUIREMENTS OF SUBDIVISIONS FIVE AND SIX
OF SECTION THREE HUNDRED SIXTY-NINE-A OF THIS ARTICLE ALLOWED BY THE
CONTRACTING AGENCY DURING THE PERIOD COVERED BY THE REPORT, INCLUDING A
DESCRIPTION OF THE BASIS OF THE WAIVER REQUEST AND THE RATIONALE FOR
GRANTING ANY SUCH WAIVER. EACH AGENCY SHALL ALSO INCLUDE IN SUCH ANNUAL
REPORT WHETHER OR NOT IT HAS BEEN REQUIRED TO PREPARE A REMEDIAL PLAN,
AND, IF SO, THE PLAN AND THE EXTENT TO WHICH THE AGENCY HAS COMPLIED
WITH EACH ELEMENT OF THE PLAN.
S 369-D. ENFORCEMENT. UPON RECEIPT BY THE DIRECTOR OF A COMPLAINT BY A
CONTRACTING AGENCY THAT A CONTRACTOR HAS VIOLATED THE PROVISIONS OF A
STATE CONTRACT WHICH HAVE BEEN INCLUDED TO COMPLY WITH THE PROVISIONS OF
THIS ARTICLE OR OF A CONTRACTOR THAT A CONTRACTING AGENCY HAS VIOLATED
SUCH PROVISIONS OR HAS FAILED OR REFUSED TO ISSUE A WAIVER WHERE ONE HAS
BEEN APPLIED FOR PURSUANT TO SUBDIVISION FIVE OF SECTION THREE HUNDRED
SIXTY-NINE-A OF THIS ARTICLE OR HAS DENIED SUCH APPLICATION, THE DIREC-
TOR SHALL ATTEMPT TO RESOLVE THE MATTER GIVING RISE TO SUCH COMPLAINT.
S. 6627 9
IF EFFORTS TO RESOLVE SUCH MATTER TO THE SATISFACTION OF ALL PARTIES ARE
UNSUCCESSFUL, THE DIRECTOR SHALL REFER THE MATTER, WITHIN THIRTY DAYS OF
THE RECEIPT OF THE COMPLAINT, TO THE DIVISION'S HEARING OFFICERS. UPON
CONCLUSION OF THE ADMINISTRATIVE HEARING, THE HEARING OFFICER SHALL
SUBMIT TO THE DIRECTOR HIS OR HER DECISION REGARDING THE ALLEGED
VIOLATION OF THE CONTRACT AND RECOMMENDATIONS REGARDING THE IMPOSITION
OF SANCTIONS, FINES OR PENALTIES. THE DIRECTOR, WITHIN TEN DAYS OF
RECEIPT OF THE DECISION, SHALL FILE A DETERMINATION OF SUCH MATTER AND
SHALL CAUSE A COPY OF SUCH DETERMINATION ALONG WITH A COPY OF THIS ARTI-
CLE TO BE SERVED UPON THE CONTRACTOR BY PERSONAL SERVICE OR BY CERTIFIED
MAIL RETURN RECEIPT REQUESTED. THE DECISION OF THE HEARING OFFICER SHALL
BE FINAL AND MAY ONLY BE VACATED OR MODIFIED AS PROVIDED IN ARTICLE
SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES UPON AN APPLICATION
MADE WITHIN THE TIME PROVIDED BY SUCH ARTICLE. THE DETERMINATION OF THE
DIRECTOR AS TO THE IMPOSITION OF ANY FINES, SANCTIONS OR PENALTIES SHALL
BE REVIEWABLE PURSUANT TO ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE
LAW AND RULES. THE PENALTIES IMPOSED FOR ANY VIOLATION WHICH IS PREMISED
UPON EITHER A FRAUDULENT OR INTENTIONAL MISREPRESENTATION BY THE
CONTRACTOR OR THE CONTRACTOR'S WILLFUL AND INTENTIONAL DISREGARD OF THE
VETERAN-OWNED PARTICIPATION REQUIREMENT INCLUDED IN THE CONTRACT MAY
INCLUDE A DETERMINATION THAT THE CONTRACTOR SHALL BE INELIGIBLE TO
SUBMIT A BID TO ANY CONTRACTING AGENCY OR BE AWARDED ANY SUCH CONTRACT
FOR A PERIOD NOT TO EXCEED ONE YEAR FOLLOWING THE FINAL DETERMINATION;
PROVIDED HOWEVER, IF A CONTRACTOR HAS PREVIOUSLY BEEN DETERMINED TO BE
INELIGIBLE TO SUBMIT A BID PURSUANT TO THIS SECTION, THE PENALTIES
IMPOSED FOR ANY SUBSEQUENT VIOLATION, IF SUCH VIOLATION OCCURS WITHIN
FIVE YEARS OF THE FIRST VIOLATION, MAY INCLUDE A DETERMINATION THAT THE
CONTRACTOR SHALL BE INELIGIBLE TO SUBMIT A BID TO ANY CONTRACTING AGENCY
OR BE AWARDED ANY SUCH CONTRACT FOR A PERIOD NOT TO EXCEED FIVE YEARS
FOLLOWING THE FINAL DETERMINATION. THE DIVISION OF VETERAN'S BUSINESS
DEVELOPMENT SHALL MAINTAIN A WEBSITE LISTING ALL CONTRACTORS THAT HAVE
BEEN DEEMED INELIGIBLE TO SUBMIT A BID PURSUANT TO THIS SECTION AND THE
DATE AFTER WHICH EACH CONTRACTOR SHALL ONCE AGAIN BECOME ELIGIBLE TO
SUBMIT BIDS.
S 369-E. SEVERABILITY. IF ANY CLAUSE, SENTENCE, PARAGRAPH, SECTION OR
PART OF THIS ARTICLE SHALL BE ADJUDGED BY ANY COURT OF COMPETENT JURIS-
DICTION TO BE INVALID, THE JUDGMENT SHALL NOT AFFECT, IMPAIR OR INVALI-
DATE THE REMAINDER THEREOF, BUT SHALL BE CONFINED IN ITS OPERATION TO
THE CLAUSE, SENTENCE, PARAGRAPH, SECTION OR PART OF THIS ARTICLE DIRECT-
LY INVOLVED IN THE CONTROVERSY IN WHICH THE JUDGMENT SHALL HAVE BEEN
RENDERED.
S 2. This act shall take effect immediately.