Senate Bill S3249

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

                                  3249

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             March 13, 2009
                               ___________

Introduced  by  Sens.  DeFRANCISCO,  MAZIARZ  --  read twice and ordered
  printed, and when printed to be committed to the Committee  on  Veter-
  ans, Homeland Security 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  environmental
  conservation  law,  the  public authorities law, the general municipal
  law, the banking law, the facilities development corporation act,  the
  New  York state medical care facilities finance agency act and the New
  York state urban development corporation act, in relation to promoting
  service related 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 related disabled veteran owned business enterprise act".
  S 2. 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 RELATED DISABLED
VETERANS AND WOMEN WITH RESPECT TO STATE CONTRACTS
  S 3. 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 18 is added to read as follows:
  1.  "Certified business" shall mean a business verified as a minority,
SERVICE RELATED 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 RELATED DISABLED VETERAN
or  women-owned  business  enterprises, if known, that have committed 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10411-01-9
              

S. 3249                             2

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.
  18. "SERVICE RELATED DISABLED VETERAN OWNED BUSINESS ENTERPRISE" SHALL
MEAN A BUSINESS ENTERPRISE, INCLUDING A SOLE PROPRIETORSHIP, PARTNERSHIP
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  RELATED  DISABLED
VETERANS;
  (B)  AN  ENTERPRISE  IN  WHICH  THE OWNERSHIP INTEREST OF SUCH SERVICE
RELATED DISABLED VETERANS IS REAL, SUBSTANTIAL AND CONTINUING;
  (C) AN ENTERPRISE IN WHICH SUCH  SERVICE  RELATED  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  RELATED  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  THERE  FROM  UNDER  OTHER
THAN  DISHONORABLE CONDITIONS, (II) HAS BEEN AWARDED A DISABILITY RATING
OF FORTY PERCENT OR HIGHER FROM THE FEDERAL VETERAN'S ADMINISTRATION  OR
FROM  THE UNITED STATES DEPARTMENT OF DEFENSE, WHERE THAT DISABILITY WAS
INCURRED IN LINE OF DUTY IN THE ACTIVE MILITARY, NAVAL OR  AIR  SERVICE,
AS  DOCUMENTED  ACCORDING  TO  RULES  AND REGULATIONS OF THE DIVISION OF
MILITARY AND NAVAL AFFAIRS.
  (F) FOR THE PURPOSES OF THIS ARTICLE, SERVICE DURING TIME  OF  WAR  IS
DEFINED AS FOLLOWS:
  (I)  THE  INDIVIDUAL  IN  QUESTION WAS A RECIPIENT OF THE ARMED FORCES
EXPEDITIONARY MEDAL, THE NAVY EXPEDITIONARY MEDAL OR  THE  MARINE  CORPS
EXPEDITIONARY MEDAL FOR PARTICIPATION IN OPERATIONS IN LEBANON FROM JUNE
FIRST, NINETEEN HUNDRED EIGHTY-THREE TO DECEMBER FIRST, NINETEEN HUNDRED
EIGHTY-SEVEN,  IN  GRENADA  FROM  OCTOBER TWENTY-THIRD, NINETEEN HUNDRED
EIGHTY-THREE TO NOVEMBER TWENTY-FIRST, NINETEEN HUNDRED EIGHTY-THREE, OR
IN PANAMA FROM DECEMBER TWENTIETH, NINETEEN HUNDRED EIGHTY-NINE TO JANU-
ARY THIRTY-FIRST, NINETEEN HUNDRED NINETY; OR
  (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;

S. 3249                             3

  (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 4. 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 RELATED DISABLED VETERAN
and women-owned business enterprises.
  (a)  to  encourage and assist contracting agencies in their efforts to
increase participation by minority, SERVICE RELATED 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 RELATED  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  RELATED  DISABLED  VETERAN  and
women-owned   business   enterprises   participating  in  each  agency's
contracts for goods and services and on activities  of  the  office  and
effort  by  each  contracting  agency  to promote employment of minority
group members, SERVICE RELATED  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  RELATED  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  5. The section heading, subdivision 3, paragraph (a) of subdivision
4, subdivision 5, paragraph (a) of subdivision 6 and  subdivision  8  of
section 313 of the executive law, as added by chapter 261 of the laws of
1988, are amended to read as follows:

S. 3249                             4

  Opportunities  for  minority,  SERVICE  RELATED  DISABLED  VETERAN and
women-owned business enterprises.
  3. In the implementation of this section, the contracting agency shall
consider  compliance with the requirements of any federal law concerning
opportunities for minority, SERVICE RELATED DISABLED VETERAN and  women-
owned  business  enterprises  which  effectuates  the  purpose  of  this
section. The contracting agency shall determine whether  the  imposition
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.
  (a) Contracting agencies shall administer the  rules  and  regulations
promulgated  by the director to ensure compliance with the provisions of
this section. 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 contract-
ing agency to review the utilization plan submitted  by  the  contractor
within a reasonable period of time as established by the director; shall
require the contracting agency to notify the contractor in writing with-
in  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; may require
the contractor to submit periodic compliance  reports  relating  to  the
operation  and  implementation  of  any  utilization plan; shall allow a
contractor to apply for a partial  or  total  waiver  of  the  minority,
SERVICE  RELATED  DISABLED  VETERAN  and women-owned business enterprise
participation requirements pursuant to subdivisions five and six of this
section; shall allow a contractor to file a complaint with the  director
pursuant to subdivision seven of this section in the event a contracting
agency  has failed or refused to issue a waiver of the minority, SERVICE
RELATED DISABLED VETERAN and  women-owned  business  enterprise  partic-
ipation  requirements or has denied such request for a waiver; and shall
allow a contracting agency to file a complaint with the director  pursu-
ant  to  subdivision  eight of this section in the event a contractor is
failing or has failed to comply with the minority, SERVICE RELATED DISA-
BLED VETERAN and women-owned business enterprise participation  require-
ments set forth in the state contract where no waiver has been granted.
  5.  Where  it  appears  that  a  contractor cannot, after a good faith
effort, comply with the minority, SERVICE RELATED 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  RELATED  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 RELATED 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

S. 3249                             5

shall first consider the  availability  of  other  business  enterprises
located in the region and shall thereafter consider the financial abili-
ty  of  minority, SERVICE RELATED DISABLED VETERAN and women-owned busi-
nesses  located  outside  the  region  in  which  the  contract is to be
performed to perform the state contract.
  (a) whether the  contractor  has  advertised  in  general  circulation
media,  trade  association publications, and minority-focus, VETERAN AND
DISABILITY-FOCUS and women-focus media and, in such event,  (i)  whether
or  not  certified  minority, SERVICE RELATED 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
  8.  If,  after  the review of a contractor's minority, SERVICE RELATED
DISABLED VETERAN and 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  RELATED
DISABLED  VETERAN and women-owned business participation requirements as
set forth in the state contract and where no waiver from  such  require-
ments  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 6. 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 RELATED 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 RELATED DISABLED  VETERAN  and  women-owned
business  enterprises with regard to banking relationships, the issuance

S. 3249                             6

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 RELATED DISABLED
VETERAN and women-owned enterprises.
  S  7.  Section 136-b of the state finance law, as added by chapter 261
of the laws of 1988, is amended to read as follows:
  S 136-b. Selection of underwriters by state agencies. Whenever a state
agency, as defined in article fifteen-A of the executive law, sells  its
bonds,  notes or other securities at a private sale, in selecting one or
more underwriters to purchase such securities  the  state  agency  shall
consider,  among  other  things,  the  participation  of firms certified
pursuant to such article as minority, SERVICE RELATED  DISABLED  VETERAN
or  women-owned firms and the ability of other firms under consideration
to work with minority, SERVICE RELATED DISABLED VETERAN and  women-owned
business  enterprises  so as to promote and assist participation by such
enterprises.
  S 8. 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 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 RELATED
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 RELATED DISA-
BLED  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

S. 3249                             7

in bidder outreach conferences. If the contractor  determines  that  New
York  state business enterprises are not available to participate on the
contract as subcontractors or suppliers, the contractor shall provide  a
statement indicating the method by which such determination was made. If
the  contractor  does  not intend to use subcontractors on the contract,
the contractor shall provide a statement verifying such  intent.    Such
contractors  shall also provide notification to New York state residents
of employment opportunities through listing any such positions with  the
community  services division, or providing for such notification in such
manner as is consistent with existing collective bargaining contracts or
agreements. On or before the effective date of this section, each  state
agency  or  department shall submit such policies to the division of the
budget and copies thereof to the department of audit  and  control,  the
department of economic development, the senate finance committee and the
assembly ways and means committee.
  S  9. 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  291  of
the laws of 2004, are amended to read as follows:
  5.  "Certified  [minority-] MINORITY, SERVICE RELATED DISABLED VETERAN
or women-owned business" means any [minority-] MINORITY, SERVICE RELATED
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  RELATED 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  RELATED 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 a certified [minority-] MINORITY, SERVICE
RELATED  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 10. Subdivision 1 of section 218 of the state finance law, as  added
by  chapter 705 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:
  1.  Linked  loans  made  to certified businesses in empire zones or to
eligible businesses in highly distressed areas or to  minority,  SERVICE
RELATED  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. 3249                             8

twelve of section two hundred thirteen of this article shall bear inter-
est  at  a  fixed  rate equal to three percentage points below the fixed
interest rate the lender would have charged for the loan in the  absence
of  a linked deposit based on its usual credit considerations. All other
linked loans shall bear interest at a fixed rate equal to two percentage
points below the fixed interest rate the lender would have  charged  for
the  loan  in  the absence of a linked deposit based on its usual credit
considerations. Lenders shall certify to the  commissioner  of  economic
development that the rate to be charged on a linked loan is two percent-
age  points  or  three  percentage points, as the case may be, below the
interest rate the lender would have charged for the loan in the  absence
of a linked deposit.
  S  11. 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 RELATED  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  RELATED DISABLED VETERAN OWNED BUSINESS ENTERPRISE SHALL
MEAN THE SAME AS PROVIDED  IN  SUBDIVISION  EIGHTEEN  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 RELATED  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  RELATED
DISABLED   VETERAN   and   women-owned  business  enterprises  to  these
contracts.
  S 12. Subdivision 2 of section 115 of the economic development law, as
added by chapter 55 of the laws of 1992, is amended to read as follows:
  2. "Technical assistance" shall mean assistance and services  designed
to  improve  the  efficiency, effectiveness and viability of a minority,
SERVICE RELATED 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

S. 3249                             9

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 13. 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 RELATED 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
RELATED  DISABLED VETERAN and women-owned business enterprises and refer
them to the appropriate federal, state or local agency  for  appropriate
action on such complaints;
  3.  Solicit  recommendations  from  the operators of minority, SERVICE
RELATED  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 RELATED DISABLED
VETERAN and women-owned business enterprises of the  state  and  promote
and  encourage  the  protection of the legitimate interests of minority,
SERVICE RELATED 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  RELATED  DISABLED  VETERAN
and women-owned business enterprises;
  6.  Study  the  implementation of the laws affecting minority, SERVICE
RELATED DISABLED VETERAN and women-owned business enterprises and recom-
mend 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
RELATED DISABLED VETERAN and women-owned business enterprises and report
its findings to the commissioner;
  7. Provide technical assistance and information to  minority,  SERVICE
RELATED  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
RELATED DISABLED VETERAN and women-owned  business  enterprises  in  the
state  on  economic  development programs administered by agencies other
than the department, including, but not limited to programs administered
by the urban development corporation, the job development authority  and
the science and technology foundation;

S. 3249                            10

  9.  Be  responsible  for conducting minority, SERVICE RELATED 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
RELATED DISABLED VETERAN and women-owned business enterprise  assistance
programs,  to the extent practicable, within amounts appropriated there-
for by[;]:
  (a)  collecting  and  maintaining  information  identifying  certified
minority,  SERVICE  RELATED  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 RELATED DISABLED
VETERAN and women-owned business enterprises;
  (d) identifying special needs and problems  facing  minority,  SERVICE
RELATED 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  RELATED  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 RELATED  DISA-
BLED VETERAN and women-owned business enterprises; and
  (g)  providing information concerning local and regional opportunities
for minority, SERVICE RELATED DISABLED VETERAN and women-owned  business
enterprises.
  S  14.    Section  210  of  the economic development law is amended by
adding a new subdivision 6 to read as follows:
  6. "SERVICE RELATED DISABLED VETERAN OWNED BUSINESS ENTERPRISE"  MEANS
THE SAME AS DEFINED IN SUBDIVISION EIGHTEEN OF SECTION THREE HUNDRED TEN
OF THE EXECUTIVE LAW.
  S  15.  Paragraphs  (b) and (i) of subdivision 1 of section 231 of the
economic development law, as amended by chapter 98 of the laws of  2008,
are amended to read as follows:
  (b)  to  provide  outreach  to businesses, with attention to minority,
SERVICE RELATED DISABLED VETERAN and women-owned  business  enterprises,
for  financial and technical assistance offered by state economic devel-
opment agencies;
  (i) to provide information and  assistance  in  the  certification  of
minority,  SERVICE  RELATED  DISABLED  VETERAN  and women-owned business
enterprises;
  S 16. 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  RELATED  DISABLED VETERAN and women-owned
             business enterprise program.
  1. a.  In  the  performance  of  projects  pursuant  to  this  article
minority,  SERVICE  RELATED  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 RELATED DISABLED VETERAN and  women-
owned  business  enterprises  may best bid to actively and affirmatively
promote and assist their participation in the projects, so as to facili-

S. 3249                            11

tate 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  RELATED  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 RELATED DISABLED VETERAN OWNED  BUSINESS  ENTER-
PRISE  SHALL MEAN THE SAME AS DEFINED IN SUBDIVISION EIGHTEEN OF SECTION
THREE HUNDRED TEN OF THE EXECUTIVE LAW; and women-owned business  enter-
prise 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 RELATED 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 RELATED  DISA-
BLED  VETERAN and women-owned business enterprises, which may effectuate
the requirements of this section. If the department or the office deter-
mines that by virtue of the imposition of the requirements of  any  such
law,  in  respect  to  capital project contracts, the provisions thereof
duplicate or conflict with such law, the department may waive the appli-
cability 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
RELATED  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 RELATED
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 RELATED DISABLED VETERAN and
women-owned business enterprises to these contracts.
  S 17. The opening paragraph of paragraph (c) and clause (a) of subpar-
agraph (ii) and subparagraph (iii) of paragraph (i) of subdivision 3  of
section  2879  of  the  public authorities law, the opening paragraph of
paragraph (c) as amended by chapter 564 of the laws of 1988  and  clause
(a)  of  subparagraph  (ii)  and  subparagraph (iii) of paragraph (i) as
amended by chapter 531 of the laws of 1993, are amended and a new  para-
graph (e-1) is added to read as follows:
  An  identification  of  those  areas  or  types of contracts for which
minority, SERVICE  RELATED  DISABLED  VETERAN  or  women-owned  business

S. 3249                            12

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:
  (a) solicited bids, in a timely and adequate  manner,  from  New  York
state business enterprises including certified minority, SERVICE RELATED
DISABLED VETERAN and women-owned business, or
  (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 RELATED 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  RELATED  DISABLED VETERAN and women-owned businesses
where possible, in the procurement of goods and services; and
  (E-1) FOR PURPOSES OF THIS SECTION, "SERVICE RELATED DISABLED  VETERAN
OWNED  BUSINESS  ENTERPRISE"  MEANS  THE  SAME AS DEFINED IN SUBDIVISION
EIGHTEEN OF SECTION THREE HUNDRED TEN OF THE EXECUTIVE LAW.
  S 18. Section 957 of the general municipal law is amended by adding  a
new subdivision (u) to read as follows:
  (U) "SERVICE RELATED DISABLED VETERAN OWNED BUSINESS ENTERPRISE" SHALL
MEAN  THE  SAME  AS  DEFINED  IN  SUBDIVISION  EIGHTEEN OF SECTION THREE
HUNDRED TEN OF THE EXECUTIVE LAW.
  S 19. Subdivisions (h) and (u) of section 959 of the general municipal
law, as amended by section 5 of part A of chapter  63  of  the  laws  of
2005, are amended to read as follows:
  (h)  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  RELATED 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;
  (u) 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 RELATED DISABLED VETERAN and women-owned business
development; training for zone officials; business and tourism  develop-
ment  and  marketing  programs; and other innovative programs and activ-
ities in support of economic and community development within the zones;
and
  S 20. 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:

S. 3249                            13

  (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 RELATED
DISABLED VETERAN and women-owned businesses;
  S  21. 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 RELATED DISABLED VETERAN-OWNED
and women-owned business enterprises in empire zone  development  activ-
ities;
  S  22. Paragraphs (iii) and (xii) of subdivision (b) 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, are amended to read as follows:
  (iii)  undertake efforts to ensure meaningful participation by minori-
ty-owned, SERVICE RELATED 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 RELATED DISABLED VETERAN and women-owned business
development within the zones shall be distributed  by  the  commissioner
pursuant to a competitive proposal solicitation process.
  S  23. 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 RELATED 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-

S. 3249                            14

ingful participation by locally owned business enterprises in the activ-
ities and investments of such corporation.
  S  24. Subparagraph 7 of paragraph f of subdivision 3 of section 970-r
of the general municipal law, as added by section 1 of part F of chapter
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 RELATED DISABLED VETERAN and
women-owned businesses.
  S 25. 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 RELATED 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  26.  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  RELATED  DISABLED VETERAN and women-owned
business enterprise program. 1. (a) Minority, SERVICE  RELATED  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 RELATED 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 RELATED DISA-
BLED 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 Islan-
der  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
RELATED DISABLED VETERANS BUSINESS ENTERPRISE SHALL  MEAN  THE  SAME  AS
DEFINED  IN  SUBDIVISION  18  OF  SECTION  310 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.

S. 3249                            15

  The  provisions  of this paragraph shall not be construed to limit the
ability of any minority, SERVICE RELATED 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 RELATED DISA-
BLED VETERAN and women-owned business enterprises, which may  effectuate
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
RELATED  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 RELATED 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 RELATED  DISABLED  VETERAN  and  women-owned  business
enterprises to these contracts.
  S  27.  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 RELATED  DISABLED  VETERAN  and  women-owned
business enterprise program. 1. a. In the performance of projects pursu-
ant  to  this  act minority, SERVICE RELATED 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 RELATED DISABLED VETERAN and  women-
owned  business  enterprises  may best bid to actively and affirmatively
promote and assist their participation in the projects, so as to facili-
tate 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
RELATED  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 RELATED DISABLED  VETERANS  BUSINESS  ENTERPRISE
SHALL  MEAN  THE SAME AS DEFINED IN SUBDIVISION 18 OF SECTION 310 OF THE
EXECUTIVE LAW; and women-owned business enterprise shall mean any  busi-
ness  enterprise  which is at least fifty-one per centum owned by, or in
the case of a publicly owned business, at least fifty-one per centum  of
the stock of which is owned by citizens or permanent resident aliens who

S. 3249                            16

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 RELATED 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 RELATED DISABLED VETER-
AN 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
RELATED   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  RELATED  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 RELATED  DISABLED  VETERAN  and  women-owned  business
enterprises to these contracts.
  S  28. 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  RELATED  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 29. 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  RELATED  DISABLED  VETERAN  and
women-owned business development and lending program.
  (1)  [Minority-]    MINORITY,  SERVICE  RELATED  DISABLED  VETERAN and
women-owned business development and lending  program.    (a)  There  is
hereby  created a [minority-] MINORITY, SERVICE RELATED DISABLED VETERAN
and women-owned business development and lending program for the purpose
of providing financial and technical  assistance  to  minority,  SERVICE
RELATED DISABLED VETERAN and women-entrepreneurs.
  (b)  For  the  purposes  of  this section the following words or terms
shall mean as follows:
  (i) "minority-owned business enterprise" or "minority-owned  business"
shall  mean  the  same  as  "minority business enterprise" as defined in
subdivision [three] 3 of section [two hundred ten] 210 of  the  economic
development law.
  (ii) "women-owned business enterprise" or "women-owned business" shall
mean  the same as "women-owned business enterprise" as defined in subdi-

S. 3249                            17

vision [five] 5 of section [two hundred ten] 210 of the economic  devel-
opment law.
  (iii)  "SERVICE  RELATED  DISABLED VETERANS BUSINESS ENTERPRISE" SHALL
MEAN THE SAME AS DEFINED IN SUBDIVISION 18 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  RELATED  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  RELATED  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  RELATED  DISABLED  VETERAN  and
women-owned businesses;
  (ii)  establish  a comprehensive program for minority, SERVICE RELATED
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 RELATED DISABLED VETERAN  and  women-owned  businesses
and  for  [minority-]  MINORITY,  SERVICE  RELATED  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 RELATED DISABLED VETERAN and women-owned
businesses;
  (v) establish a program to create incubators to assist small and  high
risk  [minority-]  MINORITY, SERVICE RELATED DISABLED VETERAN and women-
owned businesses to grow and prosper;
  (vi)  promote  equity  investment  in  [minority-]  MINORITY,  SERVICE
RELATED 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  RELATED DISABLED VETERAN and women-owned busi-
nesses and potential minority,  SERVICE  RELATED  DISABLED  VETERAN  and
women-entrepreneurs.
  (2)  Minority,  SERVICE  RELATED  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 RELATED

S. 3249                            18

DISABLED VETERAN  and  women-owned  businesses,  the  corporation  shall
establish minority, SERVICE RELATED DISABLED VETERAN and women revolving
loan  trust fund accounts and related administrative expenses trust fund
accounts.
  (a)  Each minority, SERVICE RELATED DISABLED VETERAN and women revolv-
ing loan trust fund account shall be administered by one or more of  the
following  types  of  entities  that provide services to community busi-
nesses and have as one  of  their  primary  purposes  the  provision  of
services  and  assistance to [minority-] MINORITY, SERVICE RELATED 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 RELATED 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 RELATED DISABLED
VETERAN and women revolving loan trust fund  account,  the  entity  must
also:  (i)  have staff with sufficient expertise to analyze applications
for financial assistance, to regularly monitor financial  assistance  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 feasibility
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 appropriate. The
corporation shall identify entities  eligible  to  administer  minority,
SERVICE  RELATED  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  RELATED
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
RELATED  DISABLED  VETERAN and women-owned businesses upon certification
to and acceptance by the corporation that such assistance complies  with
rules  and regulations promulgated by the corporation: (i) working capi-
tal loans, provided that the amount of the loan does not exceed  thirty-
five  thousand  dollars  and  the  term of the loan does not exceed five
years; and (ii) loans for the acquisition  and/or  improvement  of  real
property  and  for  the  acquisition of machinery and equipment provided
that the amount of the loan does not exceed fifty thousand  dollars  and
the term of the loan does not exceed the useful life of the equipment or
property.
  (d)  (i)  Notwithstanding  any  provision  of law to the contrary, the
corporation may establish an administrative expenses trust fund  account
for  the  benefit  of  each  entity  selected  to administer a minority,
SERVICE RELATED DISABLED VETERAN and women  revolving  loan  trust  fund

S. 3249                            19

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 RELATED
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 RELATED 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  RELATED  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 RELATED DISABLED VETERAN and women
revolving loan trust fund account; and
  (C) repayments of interest on loans made from the corresponding minor-
ity, SERVICE RELATED 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 RELATED 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  RELATED  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 RELATED
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 RELATED 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 RELATED DISABLED VETERAN and women revolving loan
trust  fund account during and after the second year of a selected enti-
ty's administration of said account shall be  deposited  by  the  corpo-
ration into the corresponding minority, SERVICE RELATED DISABLED VETERAN
and  women  revolving  loan  trust  fund account and used to provide the
financial assistance to [minority-] MINORITY, SERVICE  RELATED  DISABLED
VETERAN  and  women-owned  businesses  as  authorized  pursuant  to this
section.
  (f) The provisions of subdivisions eight, nine, and  fourteen  through
nineteen  of  section  sixteen-a  of this act pertaining to the regional
revolving loan trust fund shall also  be  applicable  to  the  minority,
SERVICE  RELATED  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 RELATED DISABLED  VETERAN  and  women  revolving  loan
trust  fund  account,  and  "regional revolving [loans] LOAN trust fund"

S. 3249                            20

shall mean a  minority,  SERVICE  RELATED  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 RELATED DISABLED VETERAN  and  women-owned
business  development  and  lending  program  to  any entity selected to
administer a  minority,  SERVICE  RELATED  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 RELATED 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, including
moneys appropriated by the state and any income earned by, or  increment
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  RELATED  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 RELATED 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  RELATED  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 RELATED DISABLED VETERAN and  women  contracting
program.  For  the  purpose  of  establishing a comprehensive program to
assist minority, SERVICE RELATED DISABLED VETERAN and women contractors,
the corporation may provide loans, loan guarantees, technical assistance
and bonding assistance,  the  corporation  may  enter  into  cooperative
agreements with cities, counties, municipalities, authorities, agencies,
federally and state chartered credit unions in New York state and feder-
ally  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

S. 3249                            21

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] MINORITY-, SERVICE RELATED DISABLED  VETERAN  and
women-owned  government contractors as part of its comprehensive techni-
cal assistance program.
  (c) The corporation is authorized to provide  assistance  through  the
creation  of,  or  assistance  to,  a minority, SERVICE RELATED DISABLED
VETERAN and women bonding guarantee program to enable minority,  SERVICE
RELATED  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 RELATED 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
RELATED  DISABLED VETERAN and women-owned businesses. For the purpose of
establishing a program to provide direct financial assistance to [minor-
ity-] MINORITY, SERVICE RELATED DISABLED VETERAN and  women-owned  busi-
nesses,  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 RELATED DISABLED
VETERAN and women-owned enterprises to  match  equity  contributions  to
such  enterprises  by  financial  institutions and community development
equity capital funds, provided, however, that such assistance  shall  be
targeted  to  start-up and early stage enterprises in the manufacturing,
retail and service sectors located in economically distressed areas.
  (6) Deposits and loan  guarantees.  For  the  purpose  of  encouraging
private  financial  institutions  to  make loans to eligible enterprises
pursuant to this section for any of the eligible  projects  pursuant  to
subdivisions  four  and five of this section, the corporation is author-
ized to:
  (a) Make linked deposits of funds into federally and  state  chartered
credit  unions  in  New York state, in order to encourage such organiza-
tions to make small loans to minority, SERVICE RELATED DISABLED  VETERAN
and women-owned businesses; and

S. 3249                            22

  (b)  Provide  loan  guarantees  to  private financial institutions for
loans made to eligible [minority-] MINORITY,  SERVICE  RELATED  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 RELATED DISABLED VETERAN and women small busi-
ness incubator program.
  (a) The corporation shall establish a minority and women  small  busi-
ness  incubator  program  for the purpose of providing financial support
for the creation of incubators  to  nurture  minority,  SERVICE  RELATED
DISABLED VETERAN and women-owned business enterprises with growth poten-
tial.
  (b)  Under  this  subdivision the corporation is authorized to provide
low-interest loans and grants for construction financing  and  permanent
financing of up to seventy-five percent of project costs up to a maximum
of  six  hundred  fifty  thousand dollars per project, provided that the
total amount of grant assistance provided  pursuant  to  this  paragraph
shall  not  exceed  twenty  percent of an appropriation provided for the
purposes of this section.
  (c) Incubator projects eligible for such assistance shall involve  the
renovation  or  reconstruction of existing facilities or the acquisition
of equipment, except that construction shall be allowable  in  cases  in
which  an  applicant  can  demonstrate to the satisfaction of the corpo-
ration that an existing facility is unavailable in the area to be served
by the new incubator facility.
  (d) Incubator projects are not  eligible  to  receive  loans  for  the
purpose  of  covering  operating  costs  or  supplying incubator support
services, except that incubators in their first eighteen months of oper-
ation may receive one-time grants not to exceed forty thousand  dollars,
which  costs  may  include  administrative costs of employing a resident
administrator/advisor to the incubator, provided  that  the  corporation
shall  not  expend a sum greater than two hundred fifty thousand dollars
in any one state fiscal year, or so much as may be  specifically  appro-
priated for this purpose.
  (e)  Eligible  incubator  projects shall be required to demonstrate to
the corporation's satisfaction:
  (i) public or private support and involvement sufficient  to  complete
the renovation of existing facilities or the construction of new facili-
ties and the acquisition of equipment;
  (ii) significant community support for the project;
  (iii) the existence of prospective tenants for such incubator space;
  (iv)  demand  for  such incubator space, which may include evidence of
the unavailability of suitable space for prospective tenants  at  appro-
priate  rental or lease costs in the community in which such prospective
tenants are located; and
  (v) the inability of the project to occur without financial assistance
from the corporation.
  (f) The corporation shall establish criteria for eligibility for fund-
ing for incubator projects, including but not limited to the following:

S. 3249                            23

  (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 RELATED  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 RELATED DISABLED VETERAN and women-
owned business technical assistance program. (a) The  corporation  shall
establish a comprehensive technical assistance program within the minor-
ity,  SERVICE  RELATED  DISABLED  VETERAN and women business development
office, in cooperation with the  department  of  economic  development's
division  of  [minority-] MINORITY, SERVICE RELATED 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 RELATED DISABLED VETERAN  and  women-owned
business  enterprises  and  to prospective [minority-] MINORITY, SERVICE
RELATED DISABLED VETERAN and women-business entrepreneurs 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  RELATED  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 RELATED DISABLED VETERAN  and  women-owned  busi-
nesses  and  minority, SERVICE RELATED 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 RELATED 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  RELATED  DISA-
BLED VETERAN and women-owned business enterprises and individuals.
  (9)  Priorities.  The  corporation shall give priority to applications
for assistance pursuant to this section in which  the  business  seeking
such  assistance indicates a commitment to first consider persons eligi-
ble to participate in federal job training partnership act (P.L. 97-300)
programs.
  (10) Non-application of certain provisions. The provisions of  section
ten  and  subdivision two of section sixteen of this act shall not apply
to assistance or projects authorized pursuant to this section.
  (11) Rules and regulations. The corporation  shall,  assisted  by  the
commissioner  of  economic  development  and  in  consultation  with the
department of economic development, promulgate rules and regulations  in
accordance  with  the state administrative procedure act. Such rules and

S. 3249                            24

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  RELATED  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 RELATED 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  RELATED  DISABLED  VETERAN and women-owned business development
and lending program. Funds in the  minority,  SERVICE  RELATED  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  RELATED  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 RELATED DISABLED VETERAN and women
business development and lending account:  all  moneys  appropriated  or
reappropriated by New York state for the minority, SERVICE RELATED DISA-
BLED  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 RELATED DISABLED VETERAN and women business development and
lending account.
  (13)  Standardization. The corporation shall streamline the review and
approval process for projects  and  wherever  possible  standardize  all
relevant attendant documentation and legal documents.
  (14)  Approval  cycle. The corporation shall approve eligible loans or
grants on at least a four-month cycle and shall give priority  consider-
ation to the comparative degree of economic distress within the areas in
which  the  project  is  located.  Other factors to be considered by the
corporation shall include the impact of the project  on  the  employment
and economic condition of the community and the financial feasibility of
the project.
  (15)  Repayment.  Notwithstanding  the provisions of section [forty-a]
40-A of the state finance law and any other general or special  law,  no
written agreement under this program shall require repayment at any time
or  on any terms inconsistent with the provisions of this act or the New

S. 3249                            25

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 30. 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  RELATED  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 RELATED DISABLED VETERAN
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 31. 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 RELATED DISABLED VETERAN  and  women-owned
businesses;
  S  32. Subparagraph (vi) of paragraph (c) of subdivision 10 of section
16-e of section 1 of chapter 174 of the laws of 1968,  constituting  the
New  York  state  urban development corporation act, as added by chapter
169 of the laws of 1994, is amended to read as follows:
  (vi) management and procurement assistance to small business,  includ-
ing  [minority-]  MINORITY,  SERVICE RELATED DISABLED VETERAN and women-
owned businesses;
  S 33. Paragraph (d) of subdivision 18 of section 16-e of section 1  of
chapter  174  of the laws of 1968, constituting the New York state urban
development corporation act, as added by chapter  169  of  the  laws  of
1994, is amended to read as follows:

S. 3249                            26

  (d)  The  participation of [minority-] MINORITY, SERVICE RELATED DISA-
BLED VETERAN and women-owned businesses;
  S  34.  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 RELATED DISA-
BLED VETERAN-OWNED and women-owned business enterprises, certified as  a
minority-owned,  SERVICE  RELATED  DISABLED VETERAN-OWNED or women-owned
business enterprise pursuant to article [fifteen-A] 15-A of  the  execu-
tive  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 minori-
ty-owned, SERVICE RELATED DISABLED VETERAN-OWNED and  women-owned  busi-
ness enterprises and shall:
  (a)  Make available funds to surety companies providing bonds to small
businesses [and minority- owned], MINORITY-OWNED, SERVICE RELATED  DISA-
BLED  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 RELATED DISABLED  VETER-
AN-OWNED  or women-owned business enterprises seeking to become eligible
for bonding in preparation for bidding on construction projects, includ-
ing transportation related projects. The corporation shall  provide  and
may  refer such businesses to the department of economic 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 RELATED DISABLED VETER-
AN-OWNED and women-owned small business enterprises.
  S 35. 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  RELATED  DISABLED  VETERAN  and women-owned business
enterprises through flexible  financing  programs,  including,  but  not
limited to, loan loss reserve and revolving loan programs, working capi-
tal  loans, working capital loan guarantees, or other flexible financing
programs that leverage traditional financing;
  S 36. 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 added by section  1

S. 3249                            27

of  part  J  of  chapter  413 of the laws of 1999, is amended to read as
follows:
  (i)  provide  a plan to the corporation or its agent for the marketing
of the capital access program in highly distressed areas and to [minori-
ty-] MINORITY, SERVICE RELATED DISABLED VETERAN  and  women-owned  busi-
nesses,  with appropriate lending objectives identified by the financial
institution for such areas and businesses;
  S 37. Paragraph (g) of subdivision 1 of section 16-m of section  1  of
chapter  174  of the laws of 1968, constituting the New York state urban
development corporation act, as added by section 1 of part N of  chapter
84 of the laws of 2002, 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  RELATED  DISABLED  VETERAN  and women-owned business
enterprises through flexible  financing  programs,  including,  but  not
limited to, loan loss reserve and revolving loan programs, working capi-
tal  loans, working capital loan guarantees, or other flexible financing
programs that leverage traditional financing;
  S 38. 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 RELATED 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 39. 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 RELATED DISABLED VETERAN and women-owned busi-
ness development and lending program;
  S 40. 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 RELATED DISABLED VETER-
AN-OWNED and women-owned  business  enterprises  transportation  capital
assistance and guaranteed loan program.
  To  provide  financial  assistance  to small business [and], minority-
owned, SERVICE RELATED 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  RELATED  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 RELATED DISABLED  VETERAN-

S. 3249                            28

OWNED  and  women-owned  business  enterprises.    For  purposes of this
section:
  Such  loans,  or loan guarantees for loans made by federally and state
chartered credit institutions,  financial  institutions,  and  federally
insured  banking  organizations to small business [and], minority-owned,
SERVICE RELATED 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 RELATED DISABLED VETERAN-OWNED  or  women-owned  business
enterprise  must be certified as a minority-owned, SERVICE RELATED DISA-
BLED VETERAN-OWNED or women-owned business enterprise pursuant to  arti-
cle  15-A of the executive law; and (ii) a small business or a minority-
owned, SERVICE RELATED DISABLED VETERAN-OWNED  or  women-owned  business
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
RELATED 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
RELATED DISABLED  VETERAN-OWNED  and  women-owned  business  enterprises
transportation capital assistance and guaranteed loan program.
  S  41. This act shall take effect immediately; provided, however, that
the amendments to article 15-A of the executive law made by sections two
through six of this act shall not affect the expiration of such  article
and  shall be deemed to expire therewith; and provided, further that the
amendments to section 136-b of the state finance  law  made  by  section
seven  of  this  act shall not affect the expiration of such section and
shall be deemed to expire  therewith;  and  provided  further  that  the
amendments  to  section  16-m of section 1 of chapter 174 of the laws of
1968, constituting the New York state urban development corporation act,
made by section thirty-seven of this act shall not affect the expiration
of such section and shall be deemed to expire therewith.