S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6818

                            I N  S E N A T E

                             March 26, 2012
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Finance

AN ACT to amend the executive law, the state finance law, the  arts  and
  cultural  affairs  law,  the economic development law, the energy law,
  the environmental conservation law, the labor law, the public authori-
  ties law, the racing,  pari-mutuel  wagering  and  breeding  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  service  connected  disabled  veteran  owned
  business enterprises

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Short title. This act shall be known and may  be  cited  as
the "service connected disabled veteran owned business enterprise act".
  S  2.  Subdivisions 1, 5, 6 and 7 of section 4-a of the executive law,
as added by chapter 175 of the laws of 2010,  are  amended  to  read  as
follows:
  1.  Advise and assist the governor in formulating policies relating to
workforce diversity and minority, SERVICE  CONNECTED  DISABLED  VETERANS
and women's business enterprises;
  5.  Serve  as  the  governor's liaison with organizations representing
minority, SERVICE CONNECTED DISABLED VETERANS and  women-owned  business
enterprises  and  other  organizations related to diversity in the state
workforce and in state contracting;
  6. Serve as the governor's liaison  to  the  small  business  advisory
council  for  issues  related to the creation of a diverse workforce and
state procurement practices  relating  to  minority,  SERVICE  CONNECTED
DISABLED VETERANS and women-owned business enterprises;
  7.  Review and consult with the director of minority and women's busi-
ness  development  regarding  policies  relating  to  minority,  SERVICE
CONNECTED DISABLED VETERANS and women-owned business enterprise contract
specialists at state agencies; and

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14305-01-2
              

S. 6818                             2

  S  3.  The  article  heading  of article 15-A of the executive law, as
added by chapter 261 of the laws of 1988, is amended to read as follows:
  PARTICIPATION  BY  MINORITY  GROUP MEMBERS, SERVICE CONNECTED DISABLED
VETERANS AND WOMEN WITH RESPECT TO STATE CONTRACTS
  S 4. Subdivisions 1 and 9 of section 310  of  the  executive  law,  as
added by chapter 261 of the laws of 1988, are amended and a new subdivi-
sion 23 is added to read as follows:
  1.  "Certified business" shall mean a business verified as a minority,
SERVICE CONNECTED DISABLED VETERAN or  women-owned  business  enterprise
pursuant to section three hundred fourteen of this article.
  9.  "Utilization  plan" shall mean a plan prepared by a contractor and
submitted in connection with a proposed state contract. The  utilization
plan  shall  identify  certified  minority,  SERVICE  CONNECTED DISABLED
VETERAN or women-owned business enterprises, if known, that have commit-
ted to perform work in connection with the proposed  state  contract  as
well  as any such enterprises, if known, which the contractor intends to
use in connection with the  contractor's  performance  of  the  proposed
state  contract.  The  plan shall specifically contain a list, including
the name, address and telephone number,  of  each  certified  enterprise
with which the contractor intends to subcontract.
  23.  "SERVICE  CONNECTED  DISABLED  VETERAN OWNED BUSINESS ENTERPRISE"
SHALL MEAN A BUSINESS ENTERPRISE, INCLUDING A SOLE PROPRIETORSHIP, PART-
NERSHIP OR CORPORATION THAT IS:
  (A) AT LEAST FIFTY-ONE PERCENT OWNED BY  ONE  OR  MORE  UNITED  STATES
CITIZENS OR PERMANENT RESIDENT ALIENS WHO ARE SERVICE CONNECTED DISABLED
VETERANS;
  (B)  AN  ENTERPRISE  IN  WHICH  THE OWNERSHIP INTEREST OF SUCH SERVICE
CONNECTED DISABLED VETERANS IS REAL, SUBSTANTIAL AND CONTINUING;
  (C) AN ENTERPRISE IN WHICH SUCH SERVICE CONNECTED  DISABLED  VETERAN'S
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)  SERVICE  CONNECTED  DISABLED  VETERAN SHALL MEAN A PERSON (I) WHO
SERVED IN THE ACTIVE MILITARY, NAVAL, OR AIR SERVICE DURING A PERIOD  OF
WAR AS DEFINED IN PARAGRAPH (F) OF THIS SUBDIVISION, OR WHO WAS A RECIP-
IENT  OF THE ARMED FORCES EXPEDITIONARY MEDAL, NAVY EXPEDITIONARY MEDAL,
MARINE CORPS EXPEDITIONARY MEDAL, OR GLOBAL WAR ON TERRORISM EXPEDITION-
ARY MEDAL, AND WHO WAS DISCHARGED OR RELEASED THEREFROM UNDER OTHER THAN
DISHONORABLE CONDITIONS, (II) HAS BEEN AWARDED A  DISABILITY  RATING  OF
FORTY  PERCENT  OR  HIGHER  FROM THE FEDERAL VETERAN'S ADMINISTRATION OR
FROM THE UNITED STATES DEPARTMENT OF DEFENSE, WHERE THAT DISABILITY  WAS
INCURRED  IN  LINE OF DUTY IN THE ACTIVE MILITARY, NAVAL OR AIR SERVICE,
AS DOCUMENTED ACCORDING TO RULES AND  REGULATIONS  OF  THE  DIVISION  OF
MILITARY AND NAVAL AFFAIRS.
  (F)  FOR  THE  PURPOSES OF THIS ARTICLE, SERVICE DURING TIME OF WAR IS
DEFINED AS FOLLOWS:
  (I) THE INDIVIDUAL IN QUESTION WAS A RECIPIENT  OF  THE  ARMED  FORCES
EXPEDITIONARY  MEDAL,  THE  NAVY EXPEDITIONARY MEDAL OR THE MARINE CORPS
EXPEDITIONARY MEDAL FOR PARTICIPATION IN OPERATIONS IN LEBANON FROM JUNE
FIRST, NINETEEN HUNDRED EIGHTY-THREE TO DECEMBER FIRST, NINETEEN HUNDRED
EIGHTY-SEVEN, IN GRENADA FROM  OCTOBER  TWENTY-THIRD,  NINETEEN  HUNDRED
EIGHTY-THREE TO NOVEMBER TWENTY-FIRST, NINETEEN HUNDRED EIGHTY-THREE, OR
IN PANAMA FROM DECEMBER TWENTIETH, NINETEEN HUNDRED EIGHTY-NINE TO JANU-
ARY THIRTY-FIRST, NINETEEN HUNDRED NINETY; OR

S. 6818                             3

  (II)  THE  INDIVIDUAL SERVED ON ACTIVE DUTY FOR NINETY DAYS OR MORE IN
THE ARMED FORCES OF THE UNITED STATES DURING ANY ONE  OF  THE  FOLLOWING
WARS OR HOSTILITIES:
  (1)  IN  THE  SPANISH-AMERICAN WAR FROM THE TWENTY-FIRST DAY OF APRIL,
EIGHTEEN HUNDRED NINETY-EIGHT TO THE ELEVENTH  DAY  OF  APRIL,  EIGHTEEN
HUNDRED NINETY-NINE, INCLUSIVE;
  (2) IN THE PHILIPPINE INSURRECTION OR THE CHINA RELIEF EXPEDITION FROM
THE  ELEVENTH  DAY  OF APRIL, EIGHTEEN HUNDRED NINETY-NINE TO THE FOURTH
DAY OF JULY, NINETEEN HUNDRED TWO, INCLUSIVE;
  (3) IN THE MEXICAN BORDER CAMPAIGN FROM THE NINTH DAY OF MAY, NINETEEN
HUNDRED SIXTEEN, TO THE FIFTH DAY OF APRIL, NINETEEN HUNDRED  SEVENTEEN,
INCLUSIVE;
  (4)  IN  WORLD  WAR  I  FROM  THE SIXTH DAY OF APRIL, NINETEEN HUNDRED
SEVENTEEN TO THE ELEVENTH DAY OF NOVEMBER,  NINETEEN  HUNDRED  EIGHTEEN,
INCLUSIVE;
  (5) IN WORLD WAR II FROM THE SEVENTH DAY OF DECEMBER, NINETEEN HUNDRED
FORTY-ONE   TO  THE  THIRTY-FIRST  DAY  OF  DECEMBER,  NINETEEN  HUNDRED
FORTY-SIX, INCLUSIVE;
  (6) IN THE KOREAN HOSTILITIES FROM THE  TWENTY-SEVENTH  DAY  OF  JUNE,
NINETEEN  HUNDRED  FIFTY  TO  THE  THIRTY-FIRST DAY OF JANUARY, NINETEEN
HUNDRED FIFTY-FIVE, INCLUSIVE;
  (7) IN THE VIETNAM CONFLICT FROM THE TWENTY-SECOND  DAY  OF  DECEMBER,
NINETEEN  HUNDRED  SIXTY-ONE TO THE SEVENTH DAY OF MAY, NINETEEN HUNDRED
SEVENTY-FIVE, INCLUSIVE; OR
  (8) IN THE PERSIAN GULF CONFLICT FROM THE SECOND DAY OF AUGUST,  NINE-
TEEN HUNDRED NINETY TO THE END OF SUCH CONFLICT.
  S 5. Subdivision 1 and paragraphs (a), (d), (e) and (f) of subdivision
3  of section 311 of the executive law, subdivision 1 and paragraphs (d)
and (e) of subdivision 3 as amended by chapter 55 of the  laws  of  1992
and  paragraphs  (a) and (f) of subdivision 3 as added by chapter 261 of
the laws of 1988, are amended to read as follows:
  1. The head of the division of minority and women's business  develop-
ment  shall  be  the director who shall be appointed by the governor and
hold office at the pleasure of the commissioner. It shall be the duty of
the director of the division of minority and women's  business  develop-
ment  to  assist  the  governor in the formulation and implementation of
laws and policies  relating  to  minority,  SERVICE  CONNECTED  DISABLED
VETERAN and women-owned business enterprises.
  (a)  to  encourage and assist contracting agencies in their efforts to
increase participation by minority, SERVICE CONNECTED  DISABLED  VETERAN
and women-owned business enterprises on state contracts and subcontracts
so as to facilitate the award of a fair share of such contracts to them;
  (d)  to  review  periodically  the  practices  and  procedures of each
contracting agency with respect to compliance  with  the  provisions  of
this  article,  and  to  require  them to file periodic reports with the
division of minority and women's business development as to the level of
minority, SERVICE CONNECTED DISABLED VETERAN  and  women-owned  business
enterprises  participation in the awarding of agency contracts for goods
and services;
  (e) on January first of each year  report  to  the  governor  and  the
chairpersons  of  the senate finance and assembly ways and means commit-
tees on the level of minority, SERVICE CONNECTED  DISABLED  VETERAN  and
women-owned   business   enterprises   participating  in  each  agency's
contracts for goods and services and on activities  of  the  office  and
effort  by  each  contracting  agency  to promote employment of minority
group members, SERVICE CONNECTED DISABLED VETERANS  and  women,  and  to

S. 6818                             4

promote  and increase participation by certified businesses with respect
to state contracts and subcontracts so as to facilitate the award  of  a
fair  share of state contracts to such businesses. The comptroller shall
assist  the  division  in collecting information on the participation of
certified business for each contracting agency. Such report  may  recom-
mend  new  activities  and  programs  to effectuate the purposes of this
article;
  (f) to prepare and update periodically a directory of certified minor-
ity, SERVICE CONNECTED DISABLED VETERAN and women-owned business  enter-
prises  which shall, wherever practicable, be divided into categories of
labor,  services,  supplies,   equipment,   materials   and   recognized
construction  trades  and which shall indicate areas or locations of the
state where such enterprises are available to perform services;
  S 6. Section 313 of the executive law, as amended by  chapter  175  of
the laws of 2010, is amended to read as follows:
  S 313. Opportunities  for minority, SERVICE CONNECTED DISABLED VETERAN
and women-owned business enterprises.  1.  Goals  and  requirements  for
agencies  and  contractors.    Each  agency  shall structure procurement
procedures for  contracts  made  directly  or  indirectly  to  minority,
SERVICE CONNECTED DISABLED VETERAN and women-owned business enterprises,
in accordance with the findings of the two thousand ten disparity study,
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 minority-owned business enter-
prises: fourteen and thirty-four hundredths percent;
  (b) construction industry for certified  women-owned  business  enter-
prises: eight and forty-one hundredths percent;
  (c)  construction related professional services industry for certified
minority-owned business enterprises: thirteen and twenty-one  hundredths
percent;
  (d)  construction related professional services industry for certified
women-owned  business  enterprises:  eleven  and  thirty-two  hundredths
percent;
  (e)  non-construction  related services industry for certified minori-
ty-owned business enterprises: nineteen and sixty hundredths percent;
  (f) non-construction related services industry  for  certified  women-
owned business enterprises: seventeen and forty-four hundredths percent;
  (g)  commodities industry for certified minority-owned business enter-
prises: sixteen and eleven hundredths percent;
  (h) commodities industry for  certified  women-owned  business  enter-
prises:  ten and ninety-three hundredths percent;
  (i)  overall  agency  total  dollar value of procurement for certified
minority-owned business enterprises: sixteen and fifty-three  hundredths
percent;
  (j)  overall  agency  total  dollar value of procurement for certified
women-owned business  enterprises:  twelve  and  thirty-nine  hundredths
percent; and
  (k)  overall  agency  total  dollar value of procurement for certified
minority, women-owned business enterprises: twenty-eight and  ninety-two
hundredths percent.
  1-a.  The  director  shall  ensure  that  each  state  agency has been
provided with a copy of the two thousand ten disparity study.
  1-b. Each agency shall develop and adopt agency-specific  goals  based
on the findings of the two thousand ten disparity study.
  2. The director shall promulgate rules and regulations pursuant to the
goals  established in subdivision one of this section that provide meas-

S. 6818                             5

ures and procedures to ensure that certified minority, SERVICE CONNECTED
DISABLED VETERAN and women-owned businesses shall be given the  opportu-
nity  for  maximum  feasible  participation  in the performance of state
contracts  and  to  assist in the agency's identification of those state
contracts for which minority, SERVICE  CONNECTED  DISABLED  VETERAN  and
women-owned  certified  businesses may best bid to actively and affirma-
tively 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  busi-
nesses.
  2-a.  The  director  shall  promulgate rules and regulations that will
accomplish the following:
  (a) provide for the certification  and  decertification  of  minority,
SERVICE  CONNECTED DISABLED VETERAN and women-owned business enterprises
for all agencies through a single process that meets applicable require-
ments;
  (b) require that each contract solicitation document accompanying each
solicitation  set  forth  the  expected  degree  of  minority,   SERVICE
CONNECTED  DISABLED  VETERAN and women-owned business enterprise partic-
ipation 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
minority, SERVICE CONNECTED DISABLED VETERAN  and  women-owned  business
enterprises to respond competitively to the potential subcontract oppor-
tunities;
  (c)  require  that  each  agency  provide  a current list of certified
minority business enterprises to each prospective contractor;
  (d) allow a contractor that is  a  certified  minority-owned,  SERVICE
CONNECTED  DISABLED  VETERAN-OWNED or women-owned business enterprise to
use the work it performs to  meet  requirements  for  use  of  certified
minority-owned,  SERVICE CONNECTED DISABLED VETERAN-OWNED or women-owned
business enterprises as subcontractors;
  (e) provide for joint ventures, which a bidder may count toward  meet-
ing  its  minority,  SERVICE  CONNECTED DISABLED VETERAN and women-owned
business enterprise participation;
  (f) consistent with subdivision  six  of  this  section,  provide  for
circumstances  under  which  an  agency  may  waive  obligations  of the
contractor relating to minority, SERVICE CONNECTED DISABLED VETERAN  and
women-owned business enterprise participation;
  (g)  require  that  an  agency verify that minority, SERVICE CONNECTED
DISABLED VETERAN  and  women-owned  business  enterprises  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  minority,  SERVICE  CONNECTED  DISABLED  VETERAN and
women-owned business enterprise participation; and
  (i) require each agency to consult the most  current  disparity  study
when  calculating  agency-wide and contract specific participation goals
pursuant to this article.
  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

S. 6818                             6

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 fifteen 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,  demolition,  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 sixteen 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 subcontractor except with respect to a
state contract.
  4. In the implementation of this section, the contracting agency shall
(a) consult the findings contained within the disparity study evidencing
relevant industry specific availability of certified businesses;
  (b) implement a program that will enable the agency to  evaluate  each
contract to determine the appropriateness of the goal pursuant to subdi-
vision one of this section;
  (c)  consider  where  practicable,  the  severability  of construction
projects and other bundled contracts; and
  (d) consider compliance with  the  requirements  of  any  federal  law
concerning opportunities for minority, SERVICE CONNECTED DISABLED VETER-
AN and women-owned business enterprises which effectuates the purpose of
this section. The contracting agency shall determine whether the imposi-
tion  of the requirements of any such law duplicate or conflict with the
provisions hereof and  if  such  duplication  or  conflict  exists,  the
contracting  agency shall waive the applicability of this section to the
extent of such duplication or conflict.
  5. (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 six 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 agen-
cy 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

S. 6818                             7

specified  by the director; shall require the contractor to submit peri-
odic compliance reports relating to the operation and 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 minori-
ty,  SERVICE  CONNECTED DISABLED VETERAN and women-owned business enter-
prise participation requirements pursuant to subdivisions six and  seven
of  this  section; shall allow a contractor to file a complaint with the
director pursuant to subdivision eight of this section in  the  event  a
contracting agency has failed or refused to issue a waiver of the minor-
ity,  SERVICE CONNECTED DISABLED VETERAN and women-owned business enter-
prise participation requirements or has denied such request for a  waiv-
er;  and  shall  allow a contracting agency to file a complaint with the
director pursuant to subdivision nine of this section  in  the  event  a
contractor is failing or has failed to comply with the minority, SERVICE
CONNECTED  DISABLED  VETERAN and women-owned business enterprise partic-
ipation requirements set forth in the state contract where no waiver has
been granted.
  (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  prefer-
ence.

S. 6818                             8

  6.  Where  it  appears  that  a  contractor cannot, after a good faith
effort, comply with the minority, SERVICE CONNECTED DISABLED VETERAN and
women-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 minority, SERVICE CONNECTED DISABLED  VETERAN  and  women-owned
business  enterprise  participation.  In  implementing the provisions of
this section, the contracting agency shall consider the number and types
of minority, SERVICE CONNECTED DISABLED VETERAN and women-owned 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 reason-
able  availability  of  contractors on the list of certified business to
furnish services for the project, it shall issue a waiver of  compliance
to  the contractor. In making such determination, the contracting agency
shall first consider the  availability  of  other  business  enterprises
located in the region and shall thereafter consider the financial abili-
ty of minority, SERVICE CONNECTED DISABLED VETERAN and women-owned busi-
nesses  located  outside  the  region  in  which  the  contract is to be
performed to perform the state contract.
  7. For purposes of determining a contractor's  good  faith  effort  to
comply  with  the  requirements  of  this section or to be entitled to a
waiver therefrom the contracting agency shall consider:
  (a) whether the  contractor  has  advertised  in  general  circulation
media,  trade  association  publications,  and  minority-focus,  SERVICE
CONNECTED DISABLED VETERAN-FOCUS and  women-focus  media  and,  in  such
event, (i) whether or not certified minority, SERVICE CONNECTED DISABLED
VETERAN  or  women-owned  businesses  which  have  been solicited by the
contractor exhibited interest in submitting proposals for  a  particular
project by attending a pre-bid conference; and
  (ii)  whether  certified  businesses  which have been solicited by the
contractor have responded in a timely fashion to the contractor's solic-
itations for timely competitive bid quotations prior to the  contracting
agency's bid date; and
  (b)  whether there has been written notification to appropriate certi-
fied businesses that appear in the  directory  of  certified  businesses
prepared pursuant to paragraph (f) of subdivision three of section three
hundred eleven of this article; and
  (c) whether the contractor can reasonably structure the amount of work
to  be  performed under subcontracts in order to increase the likelihood
of participation by certified businesses.
  8. 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  therefor  pursuant to subdivision six 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  sixteen  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.

S. 6818                             9

  9. If, after the review of a contractor's minority, SERVICE  CONNECTED
DISABLED VETERAN and [women owned] WOMEN-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  minority,  SERVICE
CONNECTED   DISABLED  VETERAN  and  women-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
sixteen 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 7. Section 317 of the executive law, as added by chapter 261 of  the
laws of 1988, is amended to read as follows:
  S  317.  Superseding  effect of article with respect to state law. The
provisions of this article shall supersede any other provision of  state
law, which expressly implements or mandates an equal employment opportu-
nity  program  or  a  program  for  securing  participation by minority,
SERVICE CONNECTED DISABLED VETERAN and women-owned business enterprises,
concerning action to be taken by any party to a state contract, to which
the provisions of  this  article  apply;  provided,  however,  that  the
provisions  of  any  state  law,  not  as  hereinabove superseded, which
expressly implement or mandate such programs shall remain unimpaired  by
the  provisions  of this article, except that the provisions of any such
law shall be construed as if the provisions of subdivisions  five,  six,
seven  and  eight  of  section  three hundred thirteen and section three
hundred sixteen of this article were fully set forth  therein  and  made
applicable only to complaints of violations under such provisions of law
occurring  on  or  after September first, nineteen hundred eighty-eight;
provided, further, that nothing  contained  in  this  article  shall  be
construed  to  limit,  impair,  or otherwise restrict any state agency's
authority or discretionary power in effect prior  to  the  enactment  of
this  article  to  establish  or continue, by rule, regulation or resol-
ution, an equal opportunity program or a program  for  securing  partic-
ipation  of minority, SERVICE CONNECTED DISABLED VETERAN and women-owned
business enterprises with regard to banking relationships, the  issuance
of insurance policies or contracts for the sale of bonds, notes or other
securities;  and,  provided further, that nothing contained in the imme-
diately preceding proviso shall be construed to create,  impair,  alter,
limit,  modify,  enlarge, abrogate or restrict any agency's authority or
discretionary power with respect to an equal opportunity  program  or  a
program  for securing participation of minority, SERVICE CONNECTED DISA-
BLED VETERAN and women-owned enterprises.
  S 8. Section 136-b of the state finance law, as added by  chapter  261
of the laws of 1988, is amended to read as follows:
  S 136-b. Selection of underwriters by state agencies. Whenever a state
agency,  as defined in article fifteen-A of the executive law, sells its
bonds, notes or other securities at a private sale, in selecting one  or
more  underwriters  to  purchase  such securities the state agency shall
consider, among other  things,  the  participation  of  firms  certified
pursuant to such article as minority, SERVICE CONNECTED DISABLED VETERAN
or  women-owned firms and the ability of other firms under consideration

S. 6818                            10

to work with minority, SERVICE CONNECTED  DISABLED  VETERAN  and  women-
owned  business enterprises so as to promote and assist participation by
such enterprises.
  S  9.  Paragraphs (b) and (d) of subdivision 2 of section 139-i of the
state finance law, as amended by chapter 531 of the laws  of  1993,  are
amended to read as follows:
  (b)  include  in  all  bid  documents  provided to potential bidders a
statement that information concerning the availability of New York state
subcontractors and suppliers  is  available  from  the  New  York  state
department of economic development, which shall include the directory of
certified  minority,  SERVICE CONNECTED DISABLED VETERAN and women-owned
businesses, and it is the policy of New York state to encourage the  use
of  New  York  state  subcontractors  and  suppliers, and to promote the
participation  of  minority,  SERVICE  CONNECTED  DISABLED  VETERAN  and
women-owned  businesses, where possible, in the procurement of goods and
services.
  (d) adopt policies to promote the  participation  by  New  York  state
business  enterprises  and  New  York  state  residents  in  procurement
contracts, with the cooperation of the department of  economic  develop-
ment  and  the  community  services  division of the department of labor
including, but not limited to,  providing  through  cooperative  efforts
with  contractors for the notification of New York state business enter-
prises of opportunities to participate as subcontractors  and  suppliers
on procurement contracts in an amount estimated to be equal to or great-
er  than  one million dollars and for the notification of New York state
residents of employment opportunities arising in New York state  out  of
procurement  contracts  in an amount estimated to be equal to or greater
than one million dollars; and promulgating procedures which will  assure
compliance  by  contractors  with  such notification.   Once awarded the
contract, such contractors shall document their efforts to encourage the
participation of New York state business enterprises  as  suppliers  and
subcontractors  on  procurement  contracts  equal to or greater than one
million dollars. Documented efforts by  a  successful  contractor  shall
consist  of and be limited to showing that such contractor has [(a)] (I)
solicited bids, in a timely and adequate manner,  from  New  York  state
business  enterprises  including  certified  minority, SERVICE CONNECTED
DISABLED VETERAN and women-owned business, or [(b)] (II)  contacted  the
New  York state department of economic development to obtain listings of
New York state business enterprises, or [(c)] (III) placed  notices  for
subcontractors  and  suppliers  in  newspapers, journals and other trade
publications distributed in New York state, or [(d)]  (IV)  participated
in  bidder  outreach  conferences. If the contractor determines that New
York state business enterprises are not available to participate on  the
contract  as subcontractors or suppliers, the contractor shall provide a
statement indicating the method by which such determination was made. If
the contractor does not intend to use subcontractors  on  the  contract,
the  contractor  shall  provide a statement verifying such intent.  Such
contractors shall also provide notification to New York state  residents
of  employment opportunities through listing any such positions with the
community services division, or providing for such notification in  such
manner as is consistent with existing collective bargaining contracts or
agreements.  On or before the effective date of this section, each state
agency or department shall submit such policies to the division  of  the
budget  and  copies  thereof to the department of audit and control, the
department of economic development, the senate finance committee and the
assembly ways and means committee.

S. 6818                            11

  S 10. Subdivision 5, paragraph (e) of subdivision 11, paragraph (e) of
subdivision 12 and paragraph (a) of subdivision 16 of section 213 of the
state finance law, subdivision 5, paragraph (e) of  subdivision  11  and
paragraph  (e)  of subdivision 12 as added by chapter 705 of the laws of
1993  and  paragraph  (a) of subdivision 16 as amended by chapter 424 of
the laws of 2009, are amended to read as follows:
  5. "Certified [minority-] MINORITY, SERVICE CONNECTED DISABLED VETERAN
or  women-owned  business"  means  any  [minority-]  MINORITY,   SERVICE
CONNECTED DISABLED VETERAN or women-owned business enterprise as defined
in section three hundred ten of the executive law and certified pursuant
to section three hundred fourteen of the executive law.
  (e)  any  certified  [minority-]  MINORITY, SERVICE CONNECTED DISABLED
VETERAN or women-owned business seeking financing necessary to carry out
a procurement contract with an agency or authority or  other  entity  of
the state or federal government; or
  (e)  for  certified  [minority-]  MINORITY, SERVICE CONNECTED DISABLED
VETERAN and women-owned businesses, projects to provide financing neces-
sary to carry out a procurement contract with an agency or authority  or
other entity of the state or federal government.
  (a)  for  a  linked deposit made in connection with a linked loan to a
certified business in an empire zone or to an eligible business  located
in  a  highly distressed area or to an eligible business that is defined
in paragraph (b-1) of subdivision eleven of this section that is located
in a renewal community or defined in paragraph (b-2) of such subdivision
that is located in an empowerment zone or defined in paragraph (b-3)  of
such subdivision that is located in an enterprise community, respective-
ly  for eligible projects defined in paragraph (c) of subdivision twelve
of this section or a certified [minority-] MINORITY,  SERVICE  CONNECTED
DISABLED  VETERAN  or  women-owned  business  enterprise for an eligible
project defined in paragraph (e) of subdivision twelve of  this  section
or to a defense industry manufacturer for a project defined in paragraph
(d)  of  subdivision  twelve  of  this section, a fixed rate of interest
which is three hundred basis points below the lender's posted four  year
certificate of deposit rate or, if the lender does not offer a four year
certificate  of deposit, is three hundred basis points below the average
statewide rate for four year certificates of deposit  as  determined  by
the commissioner of economic development;
  S  11.  Subdivision  1  of  section  218  of the state finance law, as
amended by chapter 424 of the laws  of  2009,  is  amended  to  read  as
follows:
  1.  Linked  loans  made  to certified businesses in empire zones or to
eligible businesses in highly distressed areas or to eligible businesses
that are defined in paragraph (b-1) of subdivision eleven of section two
hundred thirteen of this article that are located in a renewal community
or defined in paragraph (b-2) of such subdivision that are located in an
empowerment zone or defined in paragraph (b-3) of such subdivision  that
are  located  in  an  enterprise  community,  respectively  for eligible
projects defined in paragraph (c) of subdivision twelve of  section  two
hundred  thirteen  of  this  article or to [minority-] MINORITY, SERVICE
CONNECTED DISABLED VETERAN or women-owned business  enterprises  for  an
eligible  project  defined  in  paragraph  (e)  of subdivision twelve of
section two hundred thirteen of this article or to  a  defense  industry
manufacturer  for  a  project  defined  in  paragraph (d) of subdivision
twelve of section two hundred thirteen of this article shall bear inter-
est at a fixed rate equal to three percentage  points  below  the  fixed
interest  rate the lender would have charged for the loan in the absence

S. 6818                            12

of a linked deposit based on its usual credit considerations.  All other
linked loans shall bear interest at a fixed rate equal to two percentage
points below the fixed interest rate the lender would have  charged  for
the  loan  in  the absence of a linked deposit based on its usual credit
considerations. Lenders shall certify to the  commissioner  of  economic
development that the rate to be charged on a linked loan is two percent-
age  points  or  three  percentage points, as the case may be, below the
interest rate the lender would have charged for the loan in the  absence
of a linked deposit.
  S  12. Paragraph (c) of subdivision 12 of section 3.07 of the arts and
cultural affairs law, as amended by chapter 255 of the laws of 1988,  is
amended to read as follows:
  (c)  (i)  In  the  performance  of  projects pursuant to this section,
minority, SERVICE CONNECTED DISABLED VETERAN  and  women-owned  business
enterprises shall be given the opportunity for meaningful participation.
For  purposes  hereof, minority business enterprise shall mean any busi-
ness enterprise which is at least fifty-one per centum owned by,  or  in
the  case of a publicly owned business, at least fifty-one per centum of
the stock or other voting interest is owned  by  citizens  or  permanent
resident aliens who are Black, Hispanic, Asian, American Indian, Pacific
Islander,  or  Alaskan  native,  and  such  ownership  interest is real,
substantial and  continuing  and  has  the  authority  to  independently
control the day to day business decisions of the entity for at least one
year; SERVICE CONNECTED DISABLED VETERAN OWNED BUSINESS ENTERPRISE SHALL
MEAN  THE  SAME AS PROVIDED IN SUBDIVISION TWENTY-THREE OF SECTION THREE
HUNDRED TEN OF THE EXECUTIVE LAW; and  women-owned  business  enterprise
shall  mean  any  business  enterprise  which  is at least fifty-one per
centum owned by, or in the case of a publicly owned business,  at  least
fifty-one  per centum of the stock to other voting interests of which is
owned by citizens or permanent resident aliens who are women,  and  such
ownership  interest  is  real,  substantial  and  continuing and has the
authority to independently control the day to day business decisions  of
the entity for at least one year.
  The provisions of this subdivision shall not be construed to limit the
ability of any minority business enterprise to bid on any contract.
  (ii)  In  order  to  implement the requirements and objectives of this
section, the council shall request, as appropriate,  the  assistance  of
other  state  agencies  to  monitor  the  contractors'  compliance  with
provisions hereof, provide assistance in obtaining  competing  qualified
minority,  SERVICE  CONNECTED  DISABLED VETERAN and women-owned business
enterprises to perform contracts proposed to be awarded, and take  other
appropriate   measures  to  improve  the  access  of  minority,  SERVICE
CONNECTED DISABLED VETERAN and women-owned business enterprises to these
contracts.
  S 13. Subdivision 2 of section 115 of the economic development law, as
added by chapter 55 of the laws of 1992, is amended to read as follows:
  2. "Technical assistance" shall mean assistance and services  designed
to  improve  the  efficiency, effectiveness and viability of a minority,
SERVICE CONNECTED DISABLED VETERAN or women-owned  business  enterprise,
including,  but  not limited to, management assistance, problem solving,
the development of business and marketing plans, market analysis, finan-
cial planning, regulatory  compliance,  safety  and  security  measures,
export assistance, procurement assistance, application assistance, state
program  assistance,  referral  to private and public financing sources,
contracting assistance, and other forms of assistance which the  commis-
sioner deems necessary and appropriate.

S. 6818                            13

  S 14. Section 118 of the economic development law, as added by chapter
55  of  the laws of 1992 and subdivision 7 as further amended by section
15 of part GG of chapter 63 of the laws of 2000, is amended to  read  as
follows:
  S 118. Power and duties. In addition to the power and duties conferred
by  section one hundred sixteen of this article, the division shall have
the additional power and duty to:
  1. Coordinate with all state agencies performing  functions  affecting
the operations of minority business enterprises, SERVICE CONNECTED DISA-
BLED  VETERAN OWNED BUSINESS ENTERPRISES and women-owned business enter-
prises, as such terms are defined in section two  hundred  ten  of  this
chapter;
  2.  Receive complaints and inquiries of operators of minority, SERVICE
CONNECTED DISABLED VETERAN  and  women-owned  business  enterprises  and
refer  them to the appropriate federal, state or local agency for appro-
priate action on such complaints;
  3. Solicit recommendations from the  operators  of  minority,  SERVICE
CONNECTED  DISABLED  VETERAN  and  women-owned  business enterprises for
improving existing state programs and refer such recommendations to  the
governor, the legislature and appropriate state agencies or authorities;
  4.  Advise and make recommendations to the commissioner and the legis-
lature on matters affecting the  minority,  SERVICE  CONNECTED  DISABLED
VETERAN  and  women-owned  business enterprises of the state and promote
and encourage the protection of the legitimate  interests  of  minority,
SERVICE  CONNECTED DISABLED VETERAN and women-owned business enterprises
within the state;
  5. Conduct investigations, research, studies and analyses  of  matters
affecting  the interests of minority, SERVICE CONNECTED DISABLED VETERAN
and women-owned business enterprises;
  6. Study the implementation of the laws  affecting  minority,  SERVICE
CONNECTED  DISABLED  VETERAN  and  women-owned  business enterprises and
recommend to the commissioner new laws and amendments of  laws  for  the
benefit  of  minority,  SERVICE RELATED DISABLED VETERAN and women-owned
business enterprises; and review pending legislation affecting minority,
SERVICE CONNECTED DISABLED VETERAN and women-owned business  enterprises
and report its findings to the commissioner;
  7.  Provide  technical assistance and information to minority, SERVICE
CONNECTED DISABLED VETERAN and women-owned business enterprises  in  the
state  on  economic development programs administered by the department,
including, but not limited to:   (a) the empire  zones  program,  estab-
lished  pursuant to article eighteen-B of the general municipal law, (b)
the industrial effectiveness program, established  pursuant  to  article
seven  of  this  chapter,  (c)  the economic development skills training
program, established pursuant to article eight of this chapter, and  (d)
the  entrepreneurial assistance program, established pursuant to article
nine of this chapter;
  8. Provide technical assistance and information to  minority,  SERVICE
CONNECTED  DISABLED  VETERAN and women-owned business enterprises in the
state on economic development programs administered  by  agencies  other
than the department, including, but not limited to programs administered
by  the urban development corporation, the job development authority and
the science and technology foundation;
  9. Be responsible for conducting minority, SERVICE CONNECTED  DISABLED
VETERAN  and women-owned business enterprise assistance programs and for
coordinating the activities of all other state  agencies  acting  within
the scope of this section; and

S. 6818                            14

  10.  Carry  out  the  activities  to  implement  the minority, SERVICE
CONNECTED DISABLED VETERAN and women-owned business  enterprise  assist-
ance  programs,  to  the extent practicable, within amounts appropriated
therefor by[;]:
  (a)  collecting  and  maintaining  information  identifying  certified
minority, SERVICE CONNECTED DISABLED VETERAN  and  women-owned  business
enterprises within New York state;
  (b)  collecting,  maintaining,  and providing information to potential
users identifying existing  contracting  and  procurement  opportunities
within and outside New York state;
  (c)  maintaining,  providing  and  marketing a compilation of existing
programs providing assistance for minority, SERVICE  CONNECTED  DISABLED
VETERAN and women-owned business enterprises;
  (d)  identifying  special  needs and problems facing minority, SERVICE
CONNECTED DISABLED VETERAN and women-owned business  enterprises  within
New York state;
  (e)  contacting institutions, organizations and commercial enterprises
that are potential consumers of  minority,  SERVICE  CONNECTED  DISABLED
VETERAN  and  women-owned  business  products and services; urging their
expanded consumption of such goods and services;
  (f) facilitating the  establishment  of  minority,  SERVICE  CONNECTED
DISABLED VETERAN and women-owned business enterprises; and
  (g)  providing information concerning local and regional opportunities
for minority, SERVICE CONNECTED DISABLED VETERAN and  women-owned  busi-
ness enterprises.
  S 15. Subdivision 5 of section 145 of the economic development law, as
added by chapter 137 of the laws of 2008, is amended to read as follows:
  5.  additional information to be included to increase the transparency
and utility of the system, including without limitation, notices by  the
comptroller   of  progress  payments  made  to  prime  contractors,  and
minority, SERVICE CONNECTED DISABLED VETERANS and  women-owned  business
enterprises  utilization  plans  and waivers granted pursuant to article
fifteen-A of the executive law.
  S 16.   Section 210 of the economic  development  law  is  amended  by
adding a new subdivision 6 to read as follows:
  6.  "SERVICE  CONNECTED  DISABLED  VETERAN  OWNED BUSINESS ENTERPRISE"
MEANS THE SAME AS DEFINED IN SUBDIVISION TWENTY-THREE OF  SECTION  THREE
HUNDRED TEN OF THE EXECUTIVE LAW.
  S  17.  Paragraphs  (b) and (i) of subdivision 1 of section 231 of the
economic development law, as amended by chapter 352 of the laws of 2009,
are amended to read as follows:
  (b) to provide outreach to businesses, with  attention  to  small  and
medium-sized  businesses, including minority, SERVICE CONNECTED DISABLED
VETERAN and women-owned business enterprises, for financial and  techni-
cal  assistance offered by state economic development agencies, authori-
ties, or other economic entities;
  (i) to provide information and  assistance  in  the  certification  of
minority,  SERVICE  CONNECTED  DISABLED VETERAN and women-owned business
enterprises;
  S 18. Subdivision 6 of section 6-102 of the energy law,  as  added  by
chapter 433 of the laws of 2009, is amended to read as follows:
  6.  The  board shall require any contractor or subcontractor awarded a
contract pursuant to the provisions  of  this  article  to  comply,  and
otherwise  exercise  all  of its responsibilities and conduct all of its
activities consistent with the provisions of article  fifteen-A  of  the
executive  law  with  regards  to  the  utilization and participation of

S. 6818                            15

certified minority, SERVICE CONNECTED DISABLED VETERANS and  women-owned
business enterprises.
  S  19. Section 52-0113 of the environmental conservation law, as added
by chapter 512 of the laws of 1986, is amended to read as follows:
S 52-0113. Minority, SERVICE CONNECTED DISABLED VETERAN and  women-owned
             business enterprise program.
  1.  a.  In  the  performance  of  projects  pursuant  to  this article
minority, SERVICE CONNECTED DISABLED VETERAN  and  women-owned  business
enterprises shall be given the opportunity for meaningful participation.
The  department or the office shall establish measures and procedures to
secure meaningful participation and identify those contracts  and  items
of  work  for  which  minority,  SERVICE  CONNECTED DISABLED VETERAN and
women-owned business enterprises may best bid to actively  and  affirma-
tively  promote and assist their participation in the projects, so as to
facilitate the award of a fair share of contracts to  such  enterprises;
provided,  however,  that  nothing in this article shall be construed to
limit the ability of the department or office to assure  that  qualified
minority,  SERVICE  CONNECTED  DISABLED VETERAN and women-owned business
enterprises may participate in the program.
  For purposes [hereof] OF THIS ARTICLE,  minority  business  enterprise
shall  mean  any  business  enterprise  which  is at least fifty-one per
centum owned by, or in the case of a publicly owned business,  at  least
fifty-one  per  centum  of  the  stock  of which is owned by citizens or
permanent resident aliens who are Black,  Hispanic,  Asian  or  American
Indian,  Pacific Islander or Alaskan natives and such ownership interest
is real, substantial and continuing and have the authority to  independ-
ently  control  the  day  to day business decisions of the entity for at
least one year; SERVICE CONNECTED DISABLED VETERAN OWNED BUSINESS ENTER-
PRISE SHALL MEAN THE SAME AS  DEFINED  IN  SUBDIVISION  TWENTY-THREE  OF
SECTION THREE HUNDRED TEN OF THE EXECUTIVE LAW; and women-owned business
enterprise  shall  mean any business enterprise which is at least fifty-
one per centum owned by, or in the case of a publicly owned business, at
least fifty-one per centum of the stock of which is owned by citizens or
permanent resident aliens who are women, and such ownership interest  is
real, substantial and continuing and have the authority to independently
control the day to day business decisions of the entity for at least one
year.  The  provisions of this paragraph shall not be construed to limit
the ability of any  minority,  SERVICE  CONNECTED  DISABLED  VETERAN  or
women-owned business enterprise to bid on any contract.
  b. In the implementation of this section, the department or the office
shall consider compliance by any contractor with the requirements of any
federal,  state,  or  local  law  concerning minority, SERVICE CONNECTED
DISABLED VETERAN and women-owned business enterprises, which may  effec-
tuate  the requirements of this section. If the department or the office
determines that by virtue of the imposition of the requirements  of  any
such law, in respect to capital project contracts, the provisions there-
of  duplicate  or  conflict  with such law, the department may waive the
applicability of this section to  the  extent  of  such  duplication  or
conflict.
  c.  Nothing  in  this  section shall be deemed to require that overall
state and federal requirements for participation  of  minority,  SERVICE
CONNECTED  DISABLED  VETERAN  and  women-owned  business  enterprises in
programs authorized under this article  be  applied  without  regard  to
local circumstances to all projects or in all communities.
  2.  In  order  to  implement  the  requirements and objectives of this
section, the department and the office  shall  establish  procedures  to

S. 6818                            16

monitor  the  contractors'  compliance  with  provisions hereof, provide
assistance in obtaining competing qualified minority, SERVICE  CONNECTED
DISABLED   VETERAN  and  women-owned  business  enterprises  to  perform
contracts proposed to be awarded, and take other appropriate measures to
improve  the  access of minority, SERVICE CONNECTED DISABLED VETERAN and
women-owned business enterprises to these contracts.
  S 20. Paragraph (e) of subdivision 2 of section 222 of the labor  law,
as  added by section 18 of part MM of chapter 57 of the laws of 2008, is
amended to read as follows:
  (e) Any contract, subcontract, lease, grant, bond, covenant, or  other
agreement  for  construction,  reconstruction,  demolition,  excavation,
rehabilitation, repair,  renovation,  alteration,  or  improvement  with
respect  to each project undertaken pursuant to this section, the entity
shall consider the financial and organizational capacity of  contractors
and  subcontractors  in  relation  to  the  magnitude  of  work they may
perform, the record of performance of contractors and subcontractors  on
previous work, the record of contractors and subcontractors in complying
with   existing   labor   standards  and  maintaining  harmonious  labor
relations, and the commitment of  contractors  to  work  with  minority,
SERVICE CONNECTED DISABLED VETERANS and women-owned business enterprises
pursuant  to  article  fifteen-A  of  the  executive  law  through joint
ventures of subcontractor relationships.  With respect to  any  contract
for  construction,  reconstruction,  demolition,  excavation,  rehabili-
tation, repair, renovation, alteration,  or  improvement  in  excess  of
three  million  dollars  in  the counties of the Bronx, Kings, New York,
Queens, and Richmond; one million five hundred thousand dollars  in  the
counties  of  Nassau, Suffolk and Westchester; and five hundred thousand
dollars in all other counties within the state; the entity shall further
require that each contractor  and  subcontractor  shall  participate  in
apprentice  training programs in the trades of work it employs that have
been approved by the department for not less than three years and  shall
have graduated at least one apprentice in the last three years and shall
have  at  least one apprentice currently enrolled in such apprenticeship
training program. In addition, it must be demonstrated that the  program
has made significant efforts to attract and retain minority apprentices,
as  determined  by affirmative action goals established for such program
by the department.
  S 21. Paragraph e of subdivision 2 of section  1269-e  of  the  public
authorities  law,  as added by section 13 of part H of chapter 25 of the
laws of 2009, is amended to read as follows:
  e. the extent of participation by minority, SERVICE CONNECTED DISABLED
VETERANS and women owned enterprises in authority contracts and services
in accordance with article fifteen-A of the executive law; and
  S 22. Subparagraph (i) of paragraph  (b),  the  opening  paragraph  of
paragraph  (c), paragraphs (f), (g), (h), (i) and (j), and subparagraphs
(ii) and (iii) of paragraph (n) of subdivision 3 and  subdivision  6  of
section  2879  of  the public authorities law, subparagraph (i) of para-
graph (b) of subdivision 3 and subdivision 6 as amended, paragraphs (f),
(g), (h), (i) and (j) as added and paragraph (n)  of  subdivision  3  as
relettered  by chapter 174 of the laws of 2010, the opening paragraph of
paragraph (c) of subdivision 3 as amended by chapter 564 of the laws  of
1988,  subparagraphs (ii) and (iii) of paragraph (n) of subdivision 3 as
amended by chapter 531 of the laws of 1993, are amended and a new  para-
graph (e-1) is added to subdivision 3 to read as follows:
  (i)  for the selection of such contractors on a competitive basis, and
provisions relating to the circumstances under which the  board  may  by

S. 6818                            17

resolution  waive  competition,  including,  notwithstanding  any  other
provision of  law  requiring  competition,  the  purchase  of  goods  or
services  from  small  business concerns or those certified as minority,
SERVICE  CONNECTED DISABLED VETERAN or women-owned business enterprises,
or goods or technology that are recycled or remanufactured, in an amount
not to exceed two hundred thousand dollars without a formal  competitive
process;
  An  identification  of  those  areas  or  types of contracts for which
minority, SERVICE CONNECTED DISABLED  VETERAN  or  women-owned  business
enterprises  may  best  bid so as to promote and assist participation by
such enterprises  and  facilitate  a  fair  share  of  the  awarding  of
contracts  to  such  enterprises.  For  the  purposes of this section, a
minority business enterprise means any business enterprise, including  a
sole proprietorship, partnership or corporation that is:
  (E-1) FOR PURPOSES OF THIS SECTION, "SERVICE CONNECTED DISABLED VETER-
AN  OWNED  BUSINESS ENTERPRISE" MEANS THE SAME AS DEFINED IN SUBDIVISION
TWENTY-THREE OF SECTION THREE HUNDRED TEN OF THE EXECUTIVE LAW.
  (f) Requirements for the designation of one or more  senior  staff  of
the  corporation  to  oversee  the corporation's programs established to
promote and assist: (i) participation  by  certified  minority,  SERVICE
CONNECTED  DISABLED  VETERAN  or women-owned business enterprises in the
corporation's procurement opportunities and facilitation of the award of
procurement contracts to  such  enterprises;  (ii)  the  utilization  of
certified  minority,  SERVICE CONNECTED DISABLED VETERAN and women-owned
business enterprises as subcontractors and suppliers by entities  having
procurement contracts with the corporation; and (iii) the utilization of
partnerships,  joint  ventures  or  other  similar  arrangements between
certified minority, SERVICE CONNECTED DISABLED VETERAN  and  women-owned
business  enterprises  and  other  entities having procurement contracts
with the corporation. Such staff shall be familiar with the  procurement
of  the types of construction, financial, legal or professional services
utilized by the corporation, report directly to the corporation's execu-
tive director, president or chief executive officer and either  directly
or through their designees participate in the procurement process.
  (g) Requirements for providing notice, in addition to any other notice
of  procurement opportunities required by law, to professional and other
organizations that serve minority, SERVICE  CONNECTED  DISABLED  VETERAN
and  women-owned  business  enterprises  providing the types of services
procured by the corporation.
  (h) Procedures for maintaining lists of qualified certified  minority,
SERVICE CONNECTED DISABLED VETERAN and women-owned business enterprises,
including  professional  firms  that have expressed an interest in doing
business with the corporation and ensuring that such lists  are  updated
regularly.  The  corporation  shall  also consult the lists of certified
minority, SERVICE CONNECTED DISABLED VETERAN  and  women-owned  business
enterprises  maintained by the department of economic development pursu-
ant to article fifteen-A of the executive law.
  (i) The establishment of appropriate goals for participation by minor-
ity, SERVICE CONNECTED DISABLED VETERAN or women-owned  business  enter-
prises  in  procurement contracts awarded by the corporation and for the
utilization of minority, SERVICE CONNECTED DISABLED VETERAN  and  women-
owned  enterprises  as  subcontractors  and suppliers by entities having
procurement contracts with the corporation. Statewide numerical  partic-
ipation target goals shall be established by each authority based on the
findings of the two thousand ten disparity study.

S. 6818                            18

  (j)  Requirements to conduct procurements in a manner that will enable
the corporation to achieve the maximum feasible  portion  of  the  goals
established pursuant to paragraph (i) of this subdivision and that elim-
inates barriers to participation by minority, SERVICE CONNECTED DISABLED
VETERAN  and  women-owned  business  enterprises  in  the  corporation's
procurements. Such procurement requirements shall include the following:
  (A) Measures and procedures to ensure that certified businesses  shall
be  given  the  opportunity  for  maximum  feasible participation in the
performance of state contracts and to assist in the corporation's  iden-
tification  of  those state contracts for which certified businesses may
best bid to actively and affirmatively promote and assist their  partic-
ipation  in  the  performance of state contracts so as to facilitate the
corporation's achievement of the maximum feasible portion of  the  goals
for state contracts to such businesses;
  (B) Provisions designating the division of minority, SERVICE CONNECTED
DISABLED  VETERAN  and  women-owned  business development to certify and
decertify minority, SERVICE CONNECTED DISABLED VETERAN  and  women-owned
business  enterprises for all corporations through a single process that
meets applicable state and federal requirements;
  (C) A requirement that each contract solicitation document  accompany-
ing each solicitation set forth the expected degree of minority, SERVICE
CONNECTED  DISABLED  VETERAN and women-owned business enterprise partic-
ipation based, in part, on:
  I. the potential subcontract  opportunities  available  in  the  prime
procurement contract; and
  II. the availability of certified minority, SERVICE CONNECTED DISABLED
VETERAN and women-owned business enterprises to respond competitively to
the potential subcontract opportunities;
  (D)  A  requirement  that  each  corporation provide a current list of
certified minority business enterprises to each prospective contractor;
  (E) Provisions relating to joint ventures, under which  a  bidder  may
count  toward  meeting  its  minority  business enterprise participation
goal, the minority, SERVICE CONNECTED DISABLED VETERAN  and  women-owned
business enterprise portion of the joint venture;
  (F)  Provisions  under  which the corporation may waive obligations of
the contractor relating to minority, SERVICE CONNECTED DISABLED  VETERAN
and  women-owned  business  enterprise  participation after a showing of
good faith efforts to comply with the requirements of this act  pursuant
to  the  waiver provisions contained in subdivision six of section three
hundred thirteen of the executive law;
  (G) A requirement that the corporation verify that  minority,  SERVICE
CONNECTED  DISABLED  VETERAN and women-owned business enterprises listed
in a successful bid are actually participating to the extent  listed  in
the project for which the bid was submitted;
  (H) In the implementation of this section, the contracting corporation
shall:
  I.  consider,  where  practicable,  the  severability  of construction
projects and other bundled contracts;
  II. implement a program that will enable the corporation  to  evaluate
each  contract  to determine the appropriateness of the goal pursuant to
paragraph (i) of this subdivision;
  III. consider compliance with the  requirements  of  any  federal  law
concerning opportunities for minority, SERVICE CONNECTED DISABLED VETER-
AN and women-owned business enterprises which effectuates the purpose of
this section; and

S. 6818                            19

  IV.  consult  the  most  recent  disparity  study  pursuant to article
fifteen-A of the executive law.
  (ii)  with  the  cooperation of the department of economic development
and through cooperative efforts  with  contractors,  providing  for  the
notification  of New York state business enterprises of opportunities to
participate as subcontractors and suppliers on procurement contracts let
by the corporation in an amount estimated to be equal to or greater than
one million  dollars  and  promulgating  procedures  which  will  assure
compliance  by  contractors  with  such  notification.  Once awarded the
contract such contractors shall document their efforts to encourage  the
participation  of  New  York state business enterprises as suppliers and
subcontractors on procurement contracts equal to  or  greater  than  one
million  dollars.  Documented  efforts  by a successful contractor shall
consist of and be limited to showing that such contractor has (a) solic-
ited bids, in a timely and adequate manner, from New York state business
enterprises including certified  minority,  SERVICE  CONNECTED  DISABLED
VETERAN  and  women-owned  business, or (b) contacted the New York state
department of economic development to obtain listings of New York  state
business  enterprises,  or  (c)  placed  notices  for subcontractors and
suppliers in newspapers, journals and other trade publications  distrib-
uted  in  New York state, or (d) participated in bidder outreach confer-
ences. If the contractor determines that New York state business  enter-
prises   are   not   available   to   participate  on  the  contract  as
subcontractors or suppliers, the contractor shall  provide  a  statement
indicating  the  method  by  which  such  determination was made. If the
contractor does not intend to use subcontractors on  the  contract,  the
contractor shall provide a statement verifying such intent; and
  (iii) except for procurement contracts for which the corporation would
be  expending  funds  received from another state, the corporation shall
include in all bid documents provided to potential bidders  a  statement
that  information  concerning the availability of New York state subcon-
tractors and suppliers is available from the New York  state  department
of  economic development, which shall include the directory of certified
minority, SERVICE CONNECTED DISABLED VETERAN and women-owned businesses,
and it is the policy of New York state to encourage the use of New  York
state  subcontractors and suppliers, and to promote the participation of
minority, SERVICE CONNECTED DISABLED VETERAN and women-owned  businesses
where possible, in the procurement of goods and services; and
  6. Each corporation, as part of the guidelines established pursuant to
subdivision  three  of  this section, shall establish policies regarding
the preparation of publicly available reports on  procurement  contracts
entered  into  by  such corporation. Such policies shall provide, at the
minimum, for the preparation of a report no less frequently than annual-
ly, summarizing procurement activity by such corporation for the  period
of  the report, including a listing of all procurement contracts entered
into, all contracts entered into with New  York  state  business  enter-
prises  and  the subject matter and value thereof, all contracts entered
into with certified minority,  SERVICE  CONNECTED  DISABLED  VETERAN  or
women-owned business enterprises and the subject matter and value there-
of,  all  referrals  made  and all penalties imposed pursuant to section
three hundred sixteen of the executive law, all contracts  entered  into
with  foreign  business  enterprises,  and  the subject matter and value
thereof, the selection process used  to  select  such  contractors,  all
procurement  contracts  which  were exempt from the publication require-
ments of article four-C of the economic development law, the  basis  for
any such exemption and the status of existing procurement contracts.

S. 6818                            20

  S  23. Section 957 of the general municipal law is amended by adding a
new subdivision (u) to read as follows:
  (U)  "SERVICE  CONNECTED  DISABLED  VETERAN OWNED BUSINESS ENTERPRISE"
SHALL MEAN THE SAME AS DEFINED IN SUBDIVISION  TWENTY-THREE  OF  SECTION
THREE HUNDRED TEN OF THE EXECUTIVE LAW.
  S 24. Subdivisions (g) and (t) of section 959 of the general municipal
law,  as  amended  by section 3 of part S-1 of chapter 57 of the laws of
2009, are amended to read as follows:
  (g) Coordinate, with the local empire zone  administrative  board  and
state  agencies  and  authorities, the provision of business development
programs and services for each empire zone in  order  to  stimulate  the
creation  and  development  of new small businesses, including new small
minority-owned, SERVICE CONNECTED DISABLED VETERAN-OWNED and women-owned
business enterprises, and may request and shall receive from any depart-
ment, division, board, bureau, commission, agency or public authority of
the state such assistance as may be necessary;
  (t) Coordinate with the urban development corporation the creation  of
a  special category of assistance for zones within the regional economic
development partnership program,  which  will  make  available  economic
development  assistance grants for zone programs and activities, includ-
ing, but not limited  to,  planning,  service  coordination,  and  local
institutional capacity building for human resource development necessary
for  economic revitalization; planning and development of small business
incubators; job placement and preparedness programs for zones residents;
education and training programs for zone businesses; child care programs
and projects supportive of business  development;  technical  assistance
for  minority,  SERVICE CONNECTED DISABLED VETERAN and women-owned busi-
ness development; training for  zone  officials;  business  and  tourism
development  and  marketing  programs; and other innovative programs and
activities in support of economic and community development  within  the
zones;
  S  25.  Paragraph (x) of subdivision (b) of section 961 of the general
municipal law, as added by chapter 708 of the laws of 1993,  is  amended
to read as follows:
  (x) identify financial commitments the applicant will make to the zone
for activities, including, but not limited to, marketing of the zone for
business  development,  human  resource  services for zone residents and
businesses, and services for small [and],  minority,  SERVICE  CONNECTED
DISABLED VETERAN and women-owned businesses;
  S  26. Subdivision (j) of section 962 of the general municipal law, as
amended by chapter 624 of the laws of 1990 and  as  further  amended  by
section  15  of part GG of chapter 63 of the laws of 2000, is amended to
read as follows:
  (j) a description of activities  designed  to  ensure  the  meaningful
participation    of    minority-owned,    SERVICE   CONNECTED   DISABLED
VETERAN-OWNED and women-owned business enterprises in empire zone devel-
opment activities;
  S 27. Paragraphs (iii) and (xii) of subdivision (a) of section 963  of
the general municipal law, as amended by chapter 708 of the laws of 1993
and  as  further  amended  by section 15 of part GG of chapter 63 of the
laws of 2000 and such subdivision as relettered by section 7 of part S-1
of chapter 57 of the laws of 2009, are amended to read as follows:
  (iii) undertake efforts to ensure meaningful participation by  minori-
ty-owned, SERVICE CONNECTED DISABLED VETERAN-OWNED and women-owned busi-
ness enterprises in empire zone activities;

S. 6818                            21

  (xii)  provide  within  the  zone,  or contract with a new or existing
community-based local development  corporation  or  entity  to  provide,
strategic  economic  development  planning  for  the zone, marketing and
promotion of the zone, assistance to companies in applying for available
benefits, preparation of applications for financing assistance and other
technical assistance services; coordination of the delivery of state and
local  programs  within  the zones; and operation of such other economic
development assistance programs in furtherance of the empire zone devel-
opment plan as may be appropriate. Provided, however, within the  amount
appropriated  therefor  and allocated by the director of the budget, the
commissioner, through annual administrative  contracts,  shall,  to  the
maximum  extent  feasible,  make  equally  available  financial support,
through contracts or other means,  to  assist  with  the  administrative
expenses  of  the  local  zone  administrative bodies or community-based
development organizations. No funds shall be  made  available  for  this
purpose  unless the amount to be provided has been matched by private or
governmental sources, other than state  sources,  in  amounts  at  least
equalling that to be provided by the state. Such matching funds shall be
earmarked  and used exclusively for the local administration of the zone
program or for activities of the zone program. At least fifty percent of
such matching funds shall be in cash, provided that the commissioner may
waive this requirement for communities with populations  of  twenty-five
thousand  or  less, and provided, further, that any amounts appropriated
for minority, SERVICE CONNECTED DISABLED VETERAN and  women-owned  busi-
ness  development  within  the zones shall be distributed by the commis-
sioner pursuant to a competitive proposal solicitation process.
  S 28. Subdivision (c) of section 964 of the general municipal law,  as
amended  by  chapter  708  of the laws of 1993 and as further amended by
section 15 of part GG of chapter 63 of the laws of 2000, is  amended  to
read as follows:
  (c)  Each empire zone capital corporation shall, to the maximum extent
feasible, undertake measures and procedures to ensure meaningful partic-
ipation by minority-owned, SERVICE CONNECTED DISABLED VETERAN-OWNED  and
women-owned  business  enterprises  in the activities and investments of
such corporation. Each such corporation shall additionally, to the maxi-
mum extent feasible, undertake measures and procedures to  ensure  mean-
ingful participation by locally owned business enterprises in the activ-
ities and investments of such corporation.
  S  29. Subparagraph 7 of paragraph f of subdivision 3 of section 970-r
of the general municipal law, as amended by section 1 of part F of chap-
ter 577 of the laws of 2004, is amended to read as follows:
  (7) the financial commitments the applicant will make  to  the  brown-
field  opportunity  area  for  activities including, but not limited to,
marketing of the area for business development, human resource  services
for  residents  and  businesses  in the brownfield opportunity area, and
services for small [and], minority, SERVICE CONNECTED  DISABLED  VETERAN
and women-owned businesses.
  S  30. Subdivision 33 of section 454 of the banking law, as amended by
chapter 679 of the laws of 2003, is amended to read as follows:
  33. Notwithstanding any other provision of this article to the contra-
ry, to participate in the [minority -] MINORITY, SERVICE CONNECTED DISA-
BLED VETERAN and women-owned business development and  lending  program,
as  established  in section 16-c of section 1 of chapter 174 of the laws
of 1968, constituting the urban  development  corporation  act,  to  the
extent that such program allows participation by credit unions.

S. 6818                            22

  S  31.  Paragraph  (e)  of subdivision 2 of section 213 of the racing,
pari-mutuel wagering and breeding law, as added by  chapter  18  of  the
laws of 2008, is amended to read as follows:
  (e)  Whenever  the  franchise  oversight board enters into a contract,
subcontract,  lease,  grant,  bond,  covenant  or  other  agreement  for
construction,  reconstruction,  demolition,  excavation, rehabilitation,
repair, renovation, alteration, or  improvement  with  respect  to  each
project  undertaken  pursuant  to  this chapter, the franchise oversight
board shall  consider  the  financial  and  organizational  capacity  of
contractors and subcontractors in relation to the magnitude of work they
may perform, the record of performance of contractors and subcontractors
on  previous  work,  the  record  of  contractors  and subcontractors in
complying with existing labor standards and maintaining harmonious labor
relations, and the commitment of  contractors  to  work  with  minority,
SERVICE CONNECTED DISABLED VETERANS and women owned business enterprises
pursuant  to  article  fifteen-A  of  the  executive  law  through joint
ventures or subcontractor relationships.
  S 32. Section 9-b of section 1 of chapter 359 of  the  laws  of  1968,
constituting  the  facilities  development  corporation act, as added by
chapter 58 of the laws of 1987, is amended to read as follows:
  S 9-b. Minority, SERVICE CONNECTED DISABLED  VETERAN  and  women-owned
business enterprise program. 1. (a) Minority, SERVICE CONNECTED DISABLED
VETERAN and women-owned business enterprises shall be given the opportu-
nity  for  meaningful  participation  in  all  contracts executed by the
corporation pursuant to the provisions of this act other than  contracts
the  cost  of which is borne solely by a municipality or municipalities.
The corporation shall establish measures and procedures to secure  mean-
ingful  participation and identify those contracts and items of work for
which minority, SERVICE CONNECTED DISABLED VETERAN and women-owned busi-
ness enterprises may best bid to actively and affirmatively promote  and
assist  their  participation  in  the  projects, so as to facilitate the
award of a fair share of contracts to such enterprises; provided, howev-
er, that nothing in this act shall be construed to limit the ability  of
the  corporation  to  assure  that qualified minority, SERVICE CONNECTED
DISABLED VETERAN and women-owned business enterprises may participate in
the program. For purposes hereof,  minority  business  enterprise  shall
mean  any  business  enterprise  which  is at least fifty-one per centum
owned by, or in the case of a publicly owned business, at  least  fifty-
one  per  centum of the stock of which is owned by citizens or permanent
resident aliens who are  Black,  Hispanic,  Asian  or  American  Indian,
Pacific Islander or Alaskan natives and such ownership interest is real,
substantial  and  continuing  and  have  the  authority to independently
control the day to day business decisions of the entity for at least one
year; SERVICE CONNECTED DISABLED VETERANS BUSINESS ENTERPRISE SHALL MEAN
THE SAME AS DEFINED IN SUBDIVISION 23 OF SECTION 310  OF  THE  EXECUTIVE
LAW;  and women-owned business enterprise shall mean any business enter-
prise which is at least fifty-one per centum owned by, or in the case of
a publicly owned business, at least fifty-one per centum of the stock of
which is owned by citizens or permanent resident aliens who  are  women,
and such ownership interest is real, substantial and continuing and have
the authority to independently control the day to day business decisions
of the entity for at least one year.
  The  provisions  of this paragraph shall not be construed to limit the
ability of any minority, SERVICE CONNECTED DISABLED  VETERAN  or  women-
owned business enterprise to bid on any contract.

S. 6818                            23

  (b)  In  the  implementation  of  this  section, the corporation shall
consider compliance by any  contractor  with  the  requirements  of  any
federal,  state,  or  local  law  concerning minority, SERVICE CONNECTED
DISABLED VETERAN and women-owned business enterprises, which may  effec-
tuate  the  requirements  of this section. If the corporation determines
that by virtue of the imposition of the requirements of any such law, in
respect to contracts, the provisions thereof duplicate or conflict  with
this  section,  the  corporation  may  waive  the  applicability of this
section to the extent of such duplication or conflict.
  (c) Nothing in this section shall be deemed to  require  that  overall
state  and  federal  requirements for participation of minority, SERVICE
CONNECTED DISABLED  VETERAN  and  women-owned  business  enterprises  in
programs  authorized  under  this act be applied without regard to local
circumstances to all projects or in all communities.
  2. In order to implement  the  requirements  and  objectives  of  this
section,  the  corporation  shall  establish  procedures  to monitor the
contractors' compliance with provisions hereof,  provide  assistance  in
obtaining  competing  qualified  minority,  SERVICE  CONNECTED  DISABLED
VETERAN  and  women-owned  business  enterprises  to  perform  contracts
proposed  to  be awarded, and take other appropriate measures to improve
the access of minority, SERVICE CONNECTED DISABLED  VETERAN  and  women-
owned business enterprises to these contracts.
  S  33.  Section  16-b of section 1 of chapter 392 of the laws of 1973,
constituting the New York state medical care facilities  finance  agency
act,  as  added by chapter 58 of the laws of 1987, is amended to read as
follows:
  S 16-b. Minority, SERVICE CONNECTED DISABLED VETERAN  and  women-owned
business enterprise program. 1. a. In the performance of projects pursu-
ant  to this act minority, SERVICE CONNECTED DISABLED VETERAN and women-
owned business enterprises shall be given the opportunity for meaningful
participation. The agency shall establish  measures  and  procedures  to
secure  meaningful  participation and identify those contracts and items
of work for which  minority,  SERVICE  CONNECTED  DISABLED  VETERAN  and
women-owned  business  enterprises may best bid to actively and affirma-
tively promote and assist their participation in the projects, so as  to
facilitate  the  award of a fair share of contracts to such enterprises;
provided, however, that nothing in this act shall be construed to  limit
the  ability  of  the  agency to assure that qualified minority, SERVICE
CONNECTED DISABLED VETERAN  and  women-owned  business  enterprises  may
participate  in  the  program.  For  purposes  hereof, minority business
enterprise shall mean any business enterprise which is at  least  fifty-
one per centum owned by, or in the case of a publicly owned business, at
least fifty-one per centum of the stock of which is owned by citizens or
permanent  resident  aliens  who  are Black, Hispanic, Asian or American
Indian, Pacific Islander or Alaskan natives and such ownership  interest
is  real, substantial and continuing and have the authority to independ-
ently control the day to day business decisions of  the  entity  for  at
least  one year; SERVICE CONNECTED DISABLED VETERANS BUSINESS ENTERPRISE
SHALL MEAN THE SAME AS DEFINED IN SUBDIVISION 23 OF SECTION 310  OF  THE
EXECUTIVE  LAW; and women-owned business enterprise shall mean any busi-
ness enterprise which is at least fifty-one per centum owned by,  or  in
the  case of a publicly owned business, at least fifty-one per centum of
the stock of which is owned by citizens or permanent resident aliens who
are women, and such ownership interest is real, substantial and continu-
ing and have the authority to independently control the day to day busi-
ness decisions of the entity for at least one year.

S. 6818                            24

  The provisions of this paragraph shall not be construed to  limit  the
ability  of  any  minority, SERVICE CONNECTED DISABLED VETERAN or women-
owned business enterprise to bid on any contract.
  b.  In  the  implementation of this section, the agency shall consider
compliance by any contractor  with  the  requirements  of  any  federal,
state,  or  local  law  concerning  minority, SERVICE CONNECTED DISABLED
VETERAN and women-owned business enterprises, which may  effectuate  the
requirements of this section. If the department or the office determines
that by virtue of the imposition of the requirements of any such law, in
respect  to contracts, the provisions thereof duplicate or conflict with
this act, the agency may waive the applicability of this section to  the
extent of such duplication or conflict.
  c.  Nothing  in  this  section shall be deemed to require that overall
state and federal requirements for participation  of  minority,  SERVICE
CONNECTED  DISABLED  VETERAN  and  women-owned  business  enterprises in
programs authorized under this act be applied without  regard  to  local
circumstances to all projects or in all communities.
  2.  In  order  to  implement  the  requirements and objectives of this
section, the agency shall establish procedures to monitor  the  contrac-
tors' compliance with provisions hereof, provide assistance in obtaining
competing  qualified  minority,  SERVICE  CONNECTED DISABLED VETERAN and
women-owned business enterprises to perform  contracts  proposed  to  be
awarded,  and  take  other appropriate measures to improve the access of
minority, SERVICE CONNECTED DISABLED VETERAN  and  women-owned  business
enterprises to these contracts.
  S  34. Paragraph (c) of subdivision 10 of section 16-a of section 1 of
chapter 174 of the laws of 1968, constituting the New York  state  urban
development  corporation  act,  as amended by chapter 477 of the laws of
2002, is amended to read as follows:
  (c) of minority, SERVICE CONNECTED  DISABLED  VETERAN  or  women-owned
enterprises  or enterprises owned by dislocated workers, such workers as
defined in the Workforce Investment Act (P.L. 105-220); and
  S 35. Section 16-c of section 1 of chapter 174 of the  laws  of  1968,
constituting  the  New  York state urban development corporation act, as
added by chapter 169 of the laws of 1994, subparagraphs (i) and (ii)  of
paragraph  (a) of subdivision 2 as further amended by section 15 of part
GG of chapter 63 of the laws of 2000, is amended to read as follows:
  S 16-c. [Minority-] MINORITY, SERVICE CONNECTED DISABLED  VETERAN  and
women-owned business development and lending program.
  (1)  [Minority-]    MINORITY,  SERVICE  CONNECTED DISABLED VETERAN and
women-owned business development and lending  program.    (a)  There  is
hereby created a [minority-] MINORITY, SERVICE CONNECTED DISABLED VETER-
AN  and  women-owned  business  development  and lending program for the
purpose of providing financial and  technical  assistance  to  minority,
SERVICE CONNECTED DISABLED VETERAN and women-entrepreneurs.
  (b)  For  the  purposes  of  this section the following words or terms
shall mean as follows:
  (i) "minority-owned business enterprise" or "minority-owned  business"
shall  mean  the  same  as  "minority business enterprise" as defined in
subdivision [three] 3 of section [two hundred ten] 210 of  the  economic
development law.
  (ii) "women-owned business enterprise" or "women-owned business" shall
mean  the same as "women-owned business enterprise" as defined in subdi-
vision [five] 5 of section [two hundred ten] 210 of the economic  devel-
opment law.

S. 6818                            25

  (iii)  "SERVICE CONNECTED DISABLED VETERANS BUSINESS ENTERPRISE" SHALL
MEAN THE SAME AS DEFINED IN SUBDIVISION 23 OF SECTION 310 OF THE  EXECU-
TIVE LAW.
  (IV) "incubator" shall mean a facility providing low-cost space, tech-
nical  assistance  and  support services, including, but not limited to,
central services shared by  tenants  of  the  facility,  to  [minority-]
MINORITY,  SERVICE  CONNECTED  DISABLED VETERAN and women-owned business
enterprises.
  (c) Assistance shall not be provided under this section for:
  (i) the purchase or rehabilitation of real  property  for  speculative
purposes;
  (ii) payment of any tax or employee benefit arrearage;
  (iii)    residential    construction,    renovation   or   development
construction, except for assistance to minority, SERVICE CONNECTED DISA-
BLED VETERAN and  women  contractors  under  subdivision  four  of  this
section;
  (iv)  educational institutions and proprietary education firms, except
licensed child care facilities;
  (v) hospitals or residential health care facilities;
  (vi) overnight lodging facilities;
  (vii) refinancing of debt or  equity  invested  in  an  enterprise  or
project.
  (d) The corporation is authorized to:
  (i)  establish  programs  in  conjunction  with locally, and community
based entities to decentralize lending for  small  loans  and  loans  to
start  up  [minority-]  MINORITY, SERVICE CONNECTED DISABLED VETERAN and
women-owned businesses;
  (ii) establish a comprehensive program for minority, SERVICE CONNECTED
DISABLED VETERAN and women contractors,  which  may  include  assistance
through loans, bonding assistance and technical assistance;
  (iii)  establish a program to provide loans to established [minority-]
MINORITY, SERVICE CONNECTED DISABLED VETERAN and women-owned  businesses
and  for  [minority-]  MINORITY,  SERVICE CONNECTED DISABLED VETERAN and
women-owned businesses, including loans to such  businesses  seeking  to
acquire or expand a franchise;
  (iv) provide loan guarantees to financial institutions and make linked
deposits  into  federally  and  state  chartered  credit  unions for the
purpose of encouraging private financial institutions to make  loans  to
[minority-] MINORITY, SERVICE CONNECTED DISABLED VETERAN and women-owned
businesses;
  (v)  establish a program to create incubators to assist small and high
risk  [minority-]  MINORITY,  SERVICE  CONNECTED  DISABLED  VETERAN  and
women-owned businesses to grow and prosper;
  (vi)  promote  equity  investment  in  [minority-]  MINORITY,  SERVICE
CONNECTED DISABLED VETERAN and women-owned businesses; and
  (vii) establish a comprehensive technical assistance program in  coop-
eration  with  the department of economic development to assist [minori-
ty-] MINORITY, SERVICE CONNECTED DISABLED VETERAN and women-owned  busi-
nesses  and  potential  minority, SERVICE CONNECTED DISABLED VETERAN and
women-entrepreneurs.
  (2) Minority, SERVICE CONNECTED DISABLED VETERAN and  women  revolving
loan trust fund. For the purpose of establishing programs in conjunction
with  locally  and  community based entities to decentralize lending for
small  loans  and  loans  to  start  up  [minority-]  MINORITY,  SERVICE
CONNECTED  DISABLED  VETERAN and women-owned businesses, the corporation
shall establish minority, SERVICE CONNECTED DISABLED VETERAN  and  women

S. 6818                            26

revolving  loan  trust fund accounts and related administrative expenses
trust fund accounts.
  (a)  Each  minority,  SERVICE  CONNECTED  DISABLED  VETERAN  and women
revolving loan trust fund account shall be administered by one  or  more
of  the  following  types of entities that provide services to community
businesses and have as one of their primary purposes  the  provision  of
services and assistance to [minority-] MINORITY, SERVICE CONNECTED DISA-
BLED VETERAN and women-owned businesses:
  (i)  empire  zone capital corporations established pursuant to section
[nine hundred sixty-four] 964 of the general municipal law;
  (ii) community-based  local  development  corporations  or  industrial
development  agencies  that serve a municipality in which an empire zone
has been established pursuant to article [eighteen-B] 18-B of the gener-
al municipal law and have as their primary purpose assistance to [minor-
ity-] MINORITY, SERVICE CONNECTED DISABLED VETERAN and women-owned busi-
nesses located or to be located in such empire zone; or
  (iii) local and community development corporations, industrial  devel-
opment agencies, or other not-for-profit entities, representative of the
community.
  (b)  To  be eligible to administer a minority, SERVICE CONNECTED DISA-
BLED VETERAN and women revolving loan trust  fund  account,  the  entity
must  also: (i) have staff with sufficient expertise to analyze applica-
tions for financial assistance, to regularly monitor  financial  assist-
ance  to  clients,  and to provide management or technical assistance to
clients; and (ii) have established a loan committee composed of  six  or
more  persons  experienced in business management, commercial lending or
in the operation of a for-profit business, at  least  one-half  of  whom
shall  be  experienced in commercial lending, at least one-third of whom
shall be minority persons and at least one-third of whom shall be women.
Such loan committee shall review every application, determine the feasi-
bility of the proposed project and the likelihood of  repayment  of  the
requested  financing  and  shall  recommend to the governing body of the
entity such action on the application as the loan committee deems appro-
priate. The corporation shall identify entities eligible  to  administer
minority,  SERVICE  CONNECTED  DISABLED VETERAN and women revolving loan
trust fund accounts through a competitive statewide request for proposal
process.
  (c) Any entity selected to administer a  minority,  SERVICE  CONNECTED
DISABLED  VETERAN  and  women revolving loan trust fund account shall be
eligible to draw funds from the account as needed to provide the follow-
ing types of  financial  assistance  to  [minority-]  MINORITY,  SERVICE
CONNECTED DISABLED VETERAN and women-owned businesses upon certification
to  and acceptance by the corporation that such assistance complies with
rules and regulations promulgated by the corporation: (i) working  capi-
tal  loans, provided that the amount of the loan does not exceed thirty-
five thousand dollars and the term of the  loan  does  not  exceed  five
years;  and  (ii)  loans  for the acquisition and/or improvement of real
property and for the acquisition of  machinery  and  equipment  provided
that  the  amount of the loan does not exceed fifty thousand dollars and
the term of the loan does not exceed the useful life of the equipment or
property.
  (d) (i) Notwithstanding any provision of  law  to  the  contrary,  the
corporation  may establish an administrative expenses trust fund account
for the benefit of  each  entity  selected  to  administer  a  minority,
SERVICE  CONNECTED  DISABLED VETERAN and women revolving loan trust fund
account. The initial deposit of  funds  to  an  administrative  expenses

S. 6818                            27

trust  fund account shall be an amount determined by the corporation but
shall not exceed twenty-five thousand dollars.
  (ii)  An  entity  selected to administer a minority, SERVICE CONNECTED
DISABLED VETERAN and women revolving loan trust fund account may use the
funds in the  administrative  expenses  trust  fund  account  for  costs
incurred  by  it  in  the  start  up and administration of the financial
assistance program authorized pursuant to this subdivision.
  (iii) The corporation shall deposit into each administrative  expenses
trust fund account:
  (A)  all income earned from the moneys on deposit in the corresponding
minority, SERVICE CONNECTED DISABLED VETERAN and  women  revolving  loan
trust  fund account during the first year of the entity's administration
of said account; and
  (B) beginning with  its  second  year  in  administering  a  minority,
SERVICE  CONNECTED  DISABLED VETERAN and women revolving loan trust fund
account, said amounts may be used for costs incurred by  the  entity  in
administering the minority, SERVICE CONNECTED DISABLED VETERAN and women
revolving loan trust fund account; and
  (C) repayments of interest on loans made from the corresponding minor-
ity,  SERVICE  CONNECTED DISABLED VETERAN and women revolving loan trust
fund account.
  (iv) Funds from the administrative expenses trust fund account may  be
used  for  costs  incurred at any time by an administering entity in its
administration of a minority, SERVICE  CONNECTED  DISABLED  VETERAN  and
women revolving loan trust fund account pursuant to this section.
  (v)  Funds  deposited in an administrative expenses trust fund account
shall be disbursed by the corporation to the entity that administers the
corresponding minority, SERVICE CONNECTED  DISABLED  VETERAN  and  women
revolving  loan  trust  fund  account  on  a periodic basis and shall be
expended by the entity in accordance  with  an  annual  budget  and  any
updates of same, approved by the corporation.
  (e)  Any  entity  selected to administer a minority, SERVICE CONNECTED
DISABLED VETERAN and women revolving loan trust fund account  shall  pay
to  the  corporation  for  deposit any repayments received in connection
with financial assistance provided from its account. Payments consisting
of the repayment of the principal amount of a loan shall be deposited by
the corporation into the minority, SERVICE  CONNECTED  DISABLED  VETERAN
and  women  revolving  loan  trust  fund account from which the loan was
made. The interest earned by the  corporation  from  the  investment  of
moneys  in  each  minority, SERVICE CONNECTED DISABLED VETERAN and women
revolving loan trust fund account during and after the second year of  a
selected  entity's  administration of said account shall be deposited by
the corporation into the corresponding minority, SERVICE CONNECTED DISA-
BLED VETERAN and women revolving loan trust fund  account  and  used  to
provide  the  financial  assistance  to  [minority-]  MINORITY,  SERVICE
CONNECTED DISABLED VETERAN  and  women-owned  businesses  as  authorized
pursuant to this section.
  (f)  The  provisions of subdivisions eight, nine, and fourteen through
nineteen of section sixteen-a of this act  pertaining  to  the  regional
revolving  loan  trust  fund  shall  also be applicable to the minority,
SERVICE CONNECTED DISABLED VETERAN and women revolving loan trust  fund,
provided  that: where the term "regional corporation" appears therein it
shall be  interpreted  to  mean  an  entity  selected  to  administer  a
minority,  SERVICE  CONNECTED  DISABLED VETERAN and women revolving loan
trust fund account, and "regional revolving  [loans]  LOAN  trust  fund"
shall  mean  a  minority,  SERVICE  CONNECTED DISABLED VETERAN and women

S. 6818                            28

revolving loan trust fund, and where the  term  "this  section"  appears
therein it shall mean this section sixteen-c.
  (g)  The  corporation  may provide funds from an appropriation for the
[minority-] MINORITY, SERVICE CONNECTED DISABLED VETERAN and women-owned
business development and lending  program  to  any  entity  selected  to
administer  a  minority,  SERVICE  CONNECTED  DISABLED VETERAN and women
revolving loan trust  fund  for  the  purposes  of  recapitalizing  such
account  and  the  entity's  corresponding administrative expenses trust
fund account following an evaluation by the corporation of the  entity's
administration and use of such accounts.
  (h)  Notwithstanding  any provision of law to the contrary, the corpo-
ration shall establish a minority, SERVICE  CONNECTED  DISABLED  VETERAN
and  women  revolving  loan  trust fund to pay into such fund any moneys
made available to the corporation for such fund from any source, includ-
ing moneys appropriated by the state and any income earned by, or incre-
ment to, the account due to the investment thereof, or any repayment  of
moneys  advanced from the fund.  The corporation shall not commingle the
moneys of such fund with any moneys held in trust  by  the  corporation,
except for investment purposes.
  (3)  Micro-loan  program.  (a)  For  the  purposes of this subdivision
"micro-loan" shall mean a loan of  under  seven  thousand  five  hundred
dollars.
  (b)  The  corporation shall, pursuant to requests for proposals, enter
into agreements for other types  of  locally,  community  or  regionally
administered  loan  programs  than those set forth in subdivision two of
this section, including micro-loan programs to be administered by  local
development  corporations,  local  industrial development organizations,
municipalities and not-for-profit organizations, to provide  micro-loans
to  small and high risk [minority-] MINORITY, SERVICE CONNECTED DISABLED
VETERAN and  women-owned  businesses  located  within  their  respective
service  areas,  provided that loan review committees are established by
such administering entity, including women, SERVICE  CONNECTED  DISABLED
VETERAN  and  minority persons experienced in business management, busi-
ness development, commercial lending, entrepreneurship, or in the opera-
tion of a for-profit business.
  (c) Agreements entered into pursuant to paragraph (b) of this subdivi-
sion shall be governed by paragraphs (d) through (h) of subdivision  two
of  this  section,  and minority, SERVICE CONNECTED DISABLED VETERAN and
women revolving loan trust fund  accounts  and  administrative  expenses
trust  fund accounts shall be established in a similar fashion for enti-
ties selected to administer micro-loan funds pursuant to  this  subdivi-
sion.
  (4) Minority, SERVICE CONNECTED DISABLED VETERAN and women contracting
program.  For  the  purpose  of  establishing a comprehensive program to
assist minority, SERVICE CONNECTED DISABLED VETERAN and  women  contrac-
tors,  the  corporation  may  provide  loans, loan guarantees, technical
assistance and bonding assistance, the corporation may enter into  coop-
erative  agreements  with cities, counties, municipalities, authorities,
agencies, federally and state chartered credit unions in New York  state
and  federally  insured banking organizations and financial institutions
for such purposes.
  (a) To be eligible for a  contractor  loan,  the  borrower  must  have
either  (i) a construction contract with, or a contract to provide goods
or services to, a governmental entity or authority, (ii)  a  subcontract
on  a  government-sponsored  construction  contract, (iii) a contract or
subcontract on a [government sponsored] GOVERNMENT-SPONSORED residential

S. 6818                            29

project, or (iv) a contract or subcontract  on  a  construction  project
previously  approved  by the corporation pursuant to section ten of this
act.
  (b)  The  corporation  shall provide technical assistance specifically
oriented to minority, SERVICE CONNECTED DISABLED VETERAN and women-owned
government contractors as part of its comprehensive technical assistance
program.
  (c) The corporation is authorized to provide  assistance  through  the
creation  of,  or  assistance to, a minority, SERVICE CONNECTED DISABLED
VETERAN and women bonding guarantee program to enable minority,  SERVICE
CONNECTED  DISABLED  VETERAN and women contractors and subcontractors to
meet payment or performance bonding requirements.
  (i) Through such program, assistance in the form  of  working  capital
loans  and  loan  guarantees pursuant to subdivision six of this section
may also be provided to minority, SERVICE CONNECTED DISABLED VETERAN and
women contractors and  subcontractors  who  have  secured  contracts  by
participating in the program.
  (ii)  The  corporation shall either establish criteria for the bonding
guarantee program and for any required escrow funds which shall  include
detailed  provisions for eligibility; or if the corporation is providing
assistance to a program other than one established by  the  corporation,
review and approve the criteria established for such other program.
  (5)  Direct  financial  assistance  for  [minority-] MINORITY, SERVICE
CONNECTED DISABLED VETERAN and women-owned businesses. For  the  purpose
of  establishing  a  program  to  provide direct financial assistance to
[minority-] MINORITY, SERVICE CONNECTED DISABLED VETERAN and women-owned
businesses, the corporation is authorized to provide assistance  in  the
form of:
  (a)  Business development loans and loan guarantees pursuant to subdi-
vision six of this section to eligible enterprises for  the  acquisition
or  improvement  of real property, machinery, equipment or working capi-
tal, provided that to be eligible for a business development  loan,  the
borrowers  must  have  been  in  business  for  at least three years and
provided that the loans must be in an amount equal to or  in  excess  of
fifty thousand dollars;
  (b)  Franchise  loans  to  eligible  enterprises seeking to acquire or
expand franchises of nationally recognized corporations,  provided  that
disbursements  by  the corporation of such loans shall be conditioned on
obtaining such franchises;
  (c) Equity assistance for eligible minority, SERVICE  CONNECTED  DISA-
BLED  VETERAN  and women-owned enterprises to match equity contributions
to such enterprises by financial institutions and community  development
equity  capital  funds, provided, however, that such assistance shall be
targeted to start-up and early stage enterprises in  the  manufacturing,
retail and service sectors located in economically distressed areas.
  (6)  Deposits  and  loan  guarantees.  For  the purpose of encouraging
private financial institutions to make  loans  to  eligible  enterprises
pursuant  to  this  section for any of the eligible projects pursuant to
subdivisions four and five of this section, the corporation  is  author-
ized to:
  (a)  Make  linked deposits of funds into federally and state chartered
credit unions in New York state, in order to  encourage  such  organiza-
tions to make small loans to minority, SERVICE CONNECTED DISABLED VETER-
AN and women-owned businesses; and
  (b)  Provide  loan  guarantees  to  private financial institutions for
loans made to eligible [minority-] MINORITY, SERVICE CONNECTED  DISABLED

S. 6818                            30

VETERAN  and  women-owned  businesses  pursuant  to this subdivision for
eligible projects, provided that the guarantee shall be at  least  fifty
percent  backed by funds of the corporation. Any such loan guaranteed by
the  corporation  shall  be  made  to borrowers that are approved by the
corporation and substantially meet the underwriting criteria the  credit
union  or financial institution customarily applies to similar borrowers
for similar loans supported by similar  guarantees,  and  no  guaranteed
loan  funds  shall  be  disbursed  until  the  corporation has received,
reviewed and concurred, in writing, with the recommendation of the cred-
it union or banking or financial institution to make a loan.
  (7) Minority, SERVICE CONNECTED DISABLED VETERAN and women small busi-
ness incubator program.
  (a) The corporation shall  establish  a  minority,  SERVICE  CONNECTED
DISABLED  VETERAN  and  women  small  business incubator program for the
purpose of providing financial support for the creation of incubators to
nurture minority, SERVICE CONNECTED  DISABLED  VETERAN  and  women-owned
business enterprises with growth potential.
  (b)  Under  this  subdivision the corporation is authorized to provide
low-interest loans and grants for construction financing  and  permanent
financing of up to seventy-five percent of project costs up to a maximum
of  six  hundred  fifty  thousand dollars per project, provided that the
total amount of grant assistance provided  pursuant  to  this  paragraph
shall  not  exceed  twenty  percent of an appropriation provided for the
purposes of this section.
  (c) Incubator projects eligible for such assistance shall involve  the
renovation  or  reconstruction of existing facilities or the acquisition
of equipment, except that construction shall be allowable  in  cases  in
which  an  applicant  can  demonstrate to the satisfaction of the corpo-
ration that an existing facility is unavailable in the area to be served
by the new incubator facility.
  (d) Incubator projects are not  eligible  to  receive  loans  for  the
purpose  of  covering  operating  costs  or  supplying incubator support
services, except that incubators in their first eighteen months of oper-
ation may receive one-time grants not to exceed forty thousand  dollars,
which  costs  may  include  administrative costs of employing a resident
administrator/advisor to the incubator, provided  that  the  corporation
shall  not  expend a sum greater than two hundred fifty thousand dollars
in any one state fiscal year, or so much as may be  specifically  appro-
priated for this purpose.
  (e)  Eligible  incubator  projects shall be required to demonstrate to
the corporation's satisfaction:
  (i) public or private support and involvement sufficient  to  complete
the renovation of existing facilities or the construction of new facili-
ties and the acquisition of equipment;
  (ii) significant community support for the project;
  (iii) the existence of prospective tenants for such incubator space;
  (iv)  demand  for  such incubator space, which may include evidence of
the unavailability of suitable space for prospective tenants  at  appro-
priate  rental or lease costs in the community in which such prospective
tenants are located; and
  (v) the inability of the project to occur without financial assistance
from the corporation.
  (f) The corporation shall establish criteria for eligibility for fund-
ing for incubator projects, including but not limited to the following:

S. 6818                            31

  (i) the project must be designed to provide low-cost space and support
services to  incubator  tenants,  coordination  with  other  sources  of
assistance and flexible leasing arrangements for tenants;
  (ii)  the  project sponsors must provide a management plan and a busi-
ness plan for operating the incubator satisfactory to  the  corporation;
and
  (iii)  the project gives preference for incubator space and assistance
to [minority-] MINORITY, SERVICE CONNECTED DISABLED VETERAN  and  women-
owned  businesses  which currently receive, or have received, assistance
from the corporation pursuant to this section and to incubator  projects
proposed to be located in economically distressed areas.
  (8)  [Minority-]  MINORITY,  SERVICE  CONNECTED  DISABLED  VETERAN and
women-owned business technical assistance program. (a)  The  corporation
shall  establish a comprehensive technical assistance program within the
minority, SERVICE CONNECTED DISABLED VETERAN and women business develop-
ment office, in cooperation with the  department  of  economic  develop-
ment's  division  of  [minority-]  MINORITY,  SERVICE CONNECTED DISABLED
VETERAN and women-business development established pursuant  to  article
[four-A]  4-A  of  the  economic  development  law, to provide technical
assistance to [minority-] MINORITY, SERVICE CONNECTED  DISABLED  VETERAN
and  women-owned  business  enterprises  and  to prospective [minority-]
MINORITY, SERVICE CONNECTED DISABLED VETERAN and  women-business  entre-
preneurs  through  third party service providers, which assistance shall
include, but not be limited to:
  (i) technical assistance in  development  and  execution  of  business
plans,  including  the  formation  of, acquisition of, management of, or
diversification of a [minority-] MINORITY,  SERVICE  CONNECTED  DISABLED
VETERAN or women-owned business enterprise;
  (ii)  technical  assistance with applications for obtaining funds from
public and private financing sources;
  (iii) technical assistance in the development  of  a  working  capital
budget;
  (iv)  referrals to other providers of technical assistance to [minori-
ty-] MINORITY, SERVICE CONNECTED DISABLED VETERAN and women-owned  busi-
nesses and minority, SERVICE CONNECTED DISABLED VETERAN and women entre-
preneurs,  where  appropriate,  including the entrepreneurial assistance
program established pursuant to article [nine] 9 of the economic  devel-
opment law; and
  (v) technical assistance through education programs directed primarily
at women, SERVICE CONNECTED DISABLED VETERAN and minority entrepreneurs.
  (b)  Technical  assistance  may  be  provided through direct corporate
support, through grants  to  or  contracts  with  service  providers  or
governmental entities, and [minority-] MINORITY, SERVICE CONNECTED DISA-
BLED VETERAN and women-owned business enterprises and individuals.
  (9)  Priorities.  The  corporation shall give priority to applications
for assistance pursuant to this section in which  the  business  seeking
such  assistance indicates a commitment to first consider persons eligi-
ble to participate in federal job training partnership act (P.L. 97-300)
programs.
  (10) Non-application of certain provisions. The provisions of  section
ten  and  subdivision two of section sixteen of this act shall not apply
to assistance or projects authorized pursuant to this section.
  (11) Rules and regulations. The corporation  shall,  assisted  by  the
commissioner  of  economic  development  and  in  consultation  with the
department of economic development, promulgate rules and regulations  in
accordance  with  the state administrative procedure act. Such rules and

S. 6818                            32

regulations shall be consistent with the program plan required by subdi-
vision [nineteen] 19 of section [one hundred] 100 of the economic devel-
opment law. No funds shall be disbursed under this  program  until  such
rules  and  regulations  have  been  reviewed and approved by the corpo-
ration. All assistance and projects funded under this program  shall  be
funded  in  accordance  with  the rules and regulations in effect on the
date the completed application for such assistance shall be received  by
the corporation.
  (12)  Minority,  SERVICE CONNECTED DISABLED VETERAN and women business
development and lending account.  Notwithstanding any provision  of  law
to  the contrary, the corporation shall establish within the treasury of
the corporation a minority, SERVICE CONNECTED DISABLED VETERAN and women
business development and  lending  account,  and  shall  pay  into  such
account  any  moneys  which may be made available to the corporation for
this purpose from any source  including,  but  not  limited  to,  moneys
appropriated by the state and any repayment of principal and interest on
loans  made  by  the  corporation  pursuant to the [minority-] MINORITY,
SERVICE CONNECTED DISABLED VETERAN and women-owned business  development
and  lending  program. Funds in the minority, SERVICE CONNECTED DISABLED
VETERAN and women business development and  lending  account,  including
funds  from the repayment of principal and interest on loans made by the
corporation, may be used for any form  of  assistance  authorized  here-
under. The amounts deposited in the minority, SERVICE CONNECTED DISABLED
VETERAN  and  women  business development and lending account may not be
interchanged with any other account, but  may  be  commingled  with  any
other account for investment purposes. All loans disbursed by the corpo-
ration  shall  be  repaid  into the account. The corporation shall enter
into a written agreement with the director of the budget for  repayment,
to  the state comptroller to the credit of the capital projects fund, of
all moneys in the account after a period of time to be determined by the
corporation and the director of  the  budget.    The  corporation  shall
transfer  to  the minority, SERVICE CONNECTED DISABLED VETERAN and women
business development and lending account:  all  moneys  appropriated  or
reappropriated  by  New  York  state for the minority, SERVICE CONNECTED
DISABLED VETERAN and women revolving loan trust fund that have not  been
committed  prior  to  the  effective  date  of the appropriation for the
program in the current fiscal year, or become uncommitted subsequent  to
the effective date of the program's appropriation for the current fiscal
year;  and all repayments of principal and interest on loans made by the
corporation which are currently on deposit in, or payable to, the minor-
ity, SERVICE CONNECTED DISABLED VETERAN and women  business  development
and lending account.
  (13)  Standardization. The corporation shall streamline the review and
approval process for projects  and  wherever  possible  standardize  all
relevant attendant documentation and legal documents.
  (14)  Approval  cycle. The corporation shall approve eligible loans or
grants on at least a four-month cycle and shall give priority  consider-
ation to the comparative degree of economic distress within the areas in
which  the  project  is  located.  Other factors to be considered by the
corporation shall include the impact of the project  on  the  employment
and economic condition of the community and the financial feasibility of
the project.
  (15)  Repayment.  Notwithstanding  the provisions of section [forty-a]
40-A of the state finance law and any other general or special  law,  no
written agreement under this program shall require repayment at any time
or  on any terms inconsistent with the provisions of this act or the New

S. 6818                            33

York state project finance agency act; except, however, that the  corpo-
ration  may  make  grants  to projects using funds appropriated for this
purpose and that the repayment provision may not apply to such grants.
  (16)  Reports.  The  chairman  of  the corporation shall submit to the
director of the budget, the speaker of the assembly  and  the  temporary
president  of  the  senate  an  evaluation  of  the effectiveness of the
program prepared by an entity independent of the corporation. The corpo-
ration shall select the program evaluator through a request for proposal
process. Such evaluation shall determine whether the assistance provided
has enhanced the economic condition of assisted  companies  or  communi-
ties,  and  shall  make recommendation for improvements which would make
the program more  effective.  Such  evaluation  shall  be  submitted  by
September  first, nineteen hundred ninety-five and September first every
two years thereafter.
  S 36. Subparagraphs (viii) and (x) of paragraph (e) of  subdivision  7
of section 16-d of section 1 of chapter 174 of the laws of 1968, consti-
tuting the New York state urban development corporation act, as added by
chapter 169 of the laws of 1994, are amended to read as follows:
  (viii) export, marketing, procurement and subcontracting assistance to
small and medium-sized industrial firms, including [minority-] MINORITY,
SERVICE  CONNECTED  DISABLED  VETERAN and women-owned businesses, and to
flexible manufacturing networks, and programs  to  assist  regional  and
multi-county business marketing and procurement programs;
  (x)  business  planning,  management  assistance  and  counseling, and
financial packaging assistance  to  small  and  medium-sized  industrial
firms, including [minority-] MINORITY, SERVICE CONNECTED DISABLED VETER-
AN  and women-owned businesses, flexible manufacturing networks, and new
enterprises and small businesses, including the establishment of  neigh-
borhood-based business service centers designed to deliver comprehensive
technical assistance to new and small businesses in specific communities
and neighborhoods;
  S 37. Clause (B) of subparagraph (i) of paragraph (h) of subdivision 8
of section 16-d of section 1 of chapter 174 of the laws of 1968, consti-
tuting the New York state urban development corporation act, as added by
chapter  169 of the laws of 1994 and as further amended by section 15 of
part GG of chapter 63 of the  laws  of  2000,  is  amended  to  read  as
follows:
  (B)  community based local development corporations, industrial devel-
opment agencies, or other not-for-profit entities which serve a  munici-
pality in which an empire zone has been established and which, as one of
their  primary  purposes,  provide  services  and assistance to business
enterprises located or to be located  in  such  empire  zone,  including
[minority-] MINORITY, SERVICE CONNECTED DISABLED VETERAN and women-owned
businesses;
  S  38. Subparagraph (vi) of paragraph (c) of subdivision 10 of section
16-e of section 1 of chapter 174 of the laws of 1968,  constituting  the
New  York  state  urban development corporation act, as added by chapter
169 of the laws of 1994, is amended to read as follows:
  (vi) management and procurement assistance to small business,  includ-
ing  [minority-] MINORITY, SERVICE CONNECTED DISABLED VETERAN and women-
owned businesses;
  S 39. Paragraph (d) of subdivision 18 of section 16-e of section 1  of
chapter  174  of the laws of 1968, constituting the New York state urban
development corporation act, as added by chapter  169  of  the  laws  of
1994, is amended to read as follows:

S. 6818                            34

  (d) The participation of [minority-] MINORITY, SERVICE CONNECTED DISA-
BLED VETERAN and women-owned businesses;
  S  40.  The opening paragraph, paragraph (a) and the opening paragraph
and subparagraph (iv) of paragraph (b) of subdivision 1 of section  16-f
of  section  1  of chapter 174 of the laws of 1968, constituting the New
York state urban development corporation act, as added by chapter 169 of
the laws of 1994, are amended to read as follows:
  There is hereby created a state bonding guarantee  assistance  program
to  enable  small  businesses,  [and]  minority-owned, SERVICE CONNECTED
DISABLED VETERAN-OWNED and women-owned business  enterprises,  certified
as  a minority-owned, SERVICE CONNECTED DISABLED VETERAN-OWNED or women-
owned business enterprise pursuant to article [fifteen-A]  15-A  of  the
executive  law,  to meet payment and/or performance bonding requirements
by providing additional financial backing  needed  to  induce  a  surety
company  to  issue  a  bond for construction projects, including but not
limited to, government sponsored,  transportation  related  construction
projects.  For  purposes  of this section, the term small business shall
have the same meaning as defined in section [one hundred thirty-one] 131
of the economic development law. Such program shall give  preference  to
minority-owned, SERVICE CONNECTED DISABLED VETERAN-OWNED and women-owned
business enterprises and shall:
  (a)  Make available funds to surety companies providing bonds to small
businesses [and  minority-  owned],  MINORITY-OWNED,  SERVICE  CONNECTED
DISABLED  VETERAN-OWNED or women-owned business enterprises in an amount
equal to a percentage not to exceed fifty percent of the face  value  of
bonds issued by the surety.
  Provide  technical  assistance  in completing bonding applications for
small  businesses  [and],  minority-owned,  SERVICE  CONNECTED  DISABLED
VETERAN-OWNED  or  women-owned  business  enterprises  seeking to become
eligible  for  bonding  in  preparation  for  bidding  on   construction
projects,  including  transportation  related  projects. The corporation
shall provide and may refer such businesses to the department of econom-
ic development for technical assistance as  such  businesses  may  need,
including but not limited to:
  (iv) assistance from the regional offices of the department of econom-
ic development, pursuant to article [eleven] 11 of the economic develop-
ment  law, and the entrepreneurial assistance program, pursuant to arti-
cle [nine] 9 of such law, and any other  such  program  receiving  state
funds  from  this  act  or the department of economic development or any
other state agency that is intended to provide technical  assistance  to
small  businesses  [and],  minority-owned,  SERVICE  CONNECTED  DISABLED
VETERAN-OWNED and women-owned small business enterprises.
  S 41. Paragraph (g) of subdivision 1 of section 16-i of section  1  of
chapter  174  of the laws of 1968, constituting the New York state urban
development corporation act, as amended by chapter 471 of  the  laws  of
2001, is amended to read as follows:
  (g)  Assistance  to  local  or  regional  organizations  to facilitate
financing for small- and medium-sized  business,  including  [minority-]
MINORITY,  SERVICE  CONNECTED  DISABLED VETERAN and women-owned business
enterprises through flexible  financing  programs,  including,  but  not
limited to, loan loss reserve and revolving loan programs, working capi-
tal  loans, working capital loan guarantees, or other flexible financing
programs that leverage traditional financing;
  S 42. Subparagraph (i) of paragraph (c) of subdivision  2  of  section
16-k  of  section 1 of chapter 174 of the laws of 1968, constituting the

S. 6818                            35

New York state urban development corporation act, as amended by  chapter
103 of the laws of 2011, is amended to read as follows:
  (i)  provide  a plan to the corporation or its agent for the marketing
of the capital access program to small businesses,  including  those  in
highly  distressed  areas and to [minority-] MINORITY, SERVICE CONNECTED
DISABLED VETERAN and women-owned businesses,  with  appropriate  lending
objectives  identified  by  the financial institution for such areas and
businesses;
  S 43. Paragraph 1 of subdivision (c) of section 30  of  section  1  of
chapter  174  of the laws of 1968, constituting the New York state urban
development corporation act, as amended by chapter 732 of  the  laws  of
1990, is amended to read as follows:
  (1) In addition to any other requirements imposed by the act or other-
wise  regarding evaluations of programs administered by the corporation,
each evaluation shall include an analysis of the job creation effect  of
such  program,  the number of small businesses that received assistance,
the number of minority, SERVICE CONNECTED DISABLED  VETERAN  and  women-
owned  firms that received assistance, the number of projects undertaken
in distressed and highly distressed communities, and, if applicable, the
repayment experience of borrowers of funds from the corporation.
  S 44. Paragraph 2 of subdivision (e) of section 30-a of section  1  of
chapter  174  of the laws of 1968, constituting the New York state urban
development corporation act, as added by section 2 of part M1 of chapter
62 of the laws of 2003, is amended to read as follows:
  (2) require projects to be financed out of the empire  state  economic
development fund be approved generally in amounts which are proportional
to amounts appropriated for the urban and community development program,
and  the  minority,  SERVICE  CONNECTED DISABLED VETERAN and women-owned
business development and lending program;
  S 45. The section heading, the opening paragraph of subdivision 1, the
opening paragraph of subdivision 2, paragraph (a) of subdivision  3  and
subdivisions  4  and  5 of section 38 of section 1 of chapter 174 of the
laws of 1968, constituting the New York state urban  development  corpo-
ration  act,  as amended by chapter 169 of the laws of 1994, are amended
to read as follows:
  Small  business  [and],  minority-owned,  SERVICE  CONNECTED  DISABLED
VETERAN-OWNED  and women-owned business enterprises transportation capi-
tal assistance and guaranteed loan program.
  To provide financial assistance to  small  business  [and],  minority-
owned, SERVICE CONNECTED DISABLED VETERAN-OWNED and women-owned business
enterprises  engaged  in  government  sponsored,  transportation related
construction projects, the corporation shall establish a small  business
[and],  minority-owned,  SERVICE  CONNECTED  DISABLED  VETERAN-OWNED and
women-owned  business  enterprise  transportation   capital   assistance
revolving  loan  fund  which  shall  provide loans or loan guarantees to
small business [and], minority-owned, SERVICE CONNECTED DISABLED  VETER-
AN-OWNED  and  women-owned  business enterprises.   For purposes of this
section:
  Such loans, or loan guarantees for loans made by federally  and  state
chartered  credit  institutions,  financial  institutions, and federally
insured banking organizations to small business  [and],  minority-owned,
SERVICE CONNECTED DISABLED VETERAN-OWNED and women-owned business enter-
prises, shall be used to:
  (a)  To  be eligible for such loans or loan guarantees (i) a minority-
owned, SERVICE CONNECTED DISABLED VETERAN-OWNED or women-owned  business
enterprise  must  be  certified  as  a minority-owned, SERVICE CONNECTED

S. 6818                            36

DISABLED VETERAN-OWNED or women-owned business  enterprise  pursuant  to
article 15-A of the executive law; and (ii) a small business or a minor-
ity-owned, SERVICE CONNECTED DISABLED VETERAN-OWNED or women-owned busi-
ness  enterprise  shall have a contract or sub-contract to provide goods
or services related to a government  sponsored,  transportation  related
construction project.
  4.  The  corporation  shall give preference to minority-owned, SERVICE
CONNECTED DISABLED VETERAN-OWNED and women-owned business enterprises in
making such loans and loan guarantees and  shall  establish  such  other
criteria  as it may deem necessary for this program and for any required
amount that shall be held in reserve for any guarantees made under  this
program.
  5. Notwithstanding any inconsistent provision of law, general, special
or  local,  including pursuant to capital projects budget appropriations
or reappropriations, where applicable, the corporation is hereby author-
ized to enter into such agreements as may be necessary for the operation
and administration of a small business  [and],  minority-owned,  SERVICE
CONNECTED  DISABLED  VETERAN-OWNED  and women-owned business enterprises
transportation capital assistance and guaranteed loan program.
  S 46. This act shall take effect immediately; provided, however,  that
the  amendments  to  article  15-A of the executive law made by sections
three through seven of this act shall not affect the expiration of  such
article  and  shall be deemed to expire therewith; and provided, further
that the amendments to section 136-b of the state finance  law  made  by
section  eight  of  this  act  shall  not  affect the expiration of such
section and shall be deemed to expire therewith.