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

                                  4205

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             March 14, 2013
                               ___________

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

AN ACT to amend the 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 general municipal law,  the  banking  law,  the  racing,
  pari-mutuel  wagering  and  breeding  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;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04501-01-3

              

S. 4205                             2

  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
  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

S. 4205                             3

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
  (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

S. 4205                             4

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
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.

S. 4205                             5

  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-
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

S. 4205                             6

contracts  as  provided  in  this section, state contracts shall include
leases of real property by a state agency to a lessee where:  the  terms
of  such  leases  provide for the construction, demolition, replacement,
major  repair or renovation of real property and improvements thereon by
such lessee; and the cost of such construction, demolition, replacement,
major repair or renovation of real  property  and  improvements  thereon
shall  exceed  the  sum  of one hundred thousand dollars. Reports to the
director pursuant to section three hundred 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

S. 4205                             7

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
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,

S. 4205                             8

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.
  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

S. 4205                             9

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.
  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

S. 4205                            10

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
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

S. 4205                            11

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 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 section 1 of part U of chapter 58 of the  laws  of  2012,  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

S. 4205                            12

twelve of section two hundred thirteen of this article or to an eligible
business pursuant to paragraph (a) of subdivision eleven of section  two
hundred  thirteen  of  this  article  that  produces products defined in
subdivision  two  of  section  three  hundred one of the agriculture and
markets law for an eligible project  as  defined  in  paragraph  (b)  of
subdivision twelve of section two hundred thirteen of this article shall
bear interest 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 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 percentage 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,

S. 4205                            13

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 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

S. 4205                            14

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
  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;

S. 4205                            15

  (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
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-

S. 4205                            16

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
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

S. 4205                            17

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
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

S. 4205                            18

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.
  (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:

S. 4205                            19

  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
  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

S. 4205                            20

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 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. 4205                            21

  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;
  (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. 4205                            22

  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 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

S. 4205                            23

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 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

S. 4205                            24

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.
  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

S. 4205                            25

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.
  (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.

S. 4205                            26

  (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
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

S. 4205                            27

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
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

S. 4205                            28

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
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

S. 4205                            29

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
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

S. 4205                            30

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
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-

S. 4205                            31

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:
  (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.

S. 4205                            32

  (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
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

S. 4205                            33

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
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:

S. 4205                            34

  (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:
  (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

S. 4205                            35

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
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

S. 4205                            36

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
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, four, five, six and seven of this act shall not affect the  expi-
ration  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 expi-
ration  of  such  section  and  shall be deemed to expire therewith; and
provided, further that the amendments to section 16-i of  section  1  of
chapter  174  of the laws of 1968, constituting the New York state urban
development corporation act, made by  section  forty-one  of  this  act,
shall  not  affect  the expiration of such section 16-i and shall expire
therewith.