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

                                  9228

                          I N  A S S E M B L Y

                            February 7, 2012
                               ___________

Introduced  by  M. of A. KOLB -- read once and referred to the Committee
  on Veterans' 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
  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 "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,  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 23 is added to read as follows:
  1. "Certified business" shall mean a business verified as a  minority,
HONORABLY DISCHARGED VETERAN or women-owned business enterprise pursuant
to  section three hundred fourteen of this article. FOR PURPOSES OF THIS
SECTION "VETERAN DISCHARGED OR  RELEASED  UNDER  CONDITIONS  OTHER  THAN
DISHONORABLE"  SHALL  MEAN  THOSE CONDITIONS DEFINED BY TITLE 38 CODE OF
FEDERAL REGULATIONS SECTION 3.12.
  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, HONORABLY DISCHARGED 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
contract.  The  plan  shall  specifically  contain a list, including the

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

                                                           LBD13540-03-2

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name, address and telephone number, of each  certified  enterprise  with
which the contractor intends to subcontract.
  23.  "HONORABLY  DISCHARGED  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 HONORABLY DISCHARGED
VETERANS;
  (B) AN ENTERPRISE IN WHICH THE OWNERSHIP INTEREST  OF  SUCH  HONORABLY
DISCHARGED VETERANS IS REAL, SUBSTANTIAL AND CONTINUING;
  (C)  AN ENTERPRISE IN WHICH SUCH HONORABLY DISCHARGED VETERAN'S OWNER-
SHIP 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) HONORABLY DISCHARGED VETERAN SHALL MEAN A PERSON 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  RECIPIENT  OF  THE
ARMED FORCES EXPEDITIONARY MEDAL, NAVY EXPEDITIONARY MEDAL, MARINE CORPS
EXPEDITIONARY MEDAL, OR GLOBAL WAR ON TERRORISM EXPEDITIONARY MEDAL, AND
WHO  WAS  DISCHARGED OR RELEASED THEREFROM UNDER OTHER THAN DISHONORABLE
CONDITIONS, 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 BY SECTION 3.2 OF TITLE 38 OF THE CODE OF FEDERAL REGULATIONS.
  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, HONORABLY DISCHARGED VETERAN and
women-owned business enterprises.
  (a)  to  encourage and assist contracting agencies in their efforts to
increase participation by minority,  HONORABLY  DISCHARGED  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,  HONORABLY  DISCHARGED VETERAN and women-owned business enter-
prises 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, HONORABLY DISCHARGED 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,
HONORABLY  DISCHARGED  VETERANS  and  women, and to promote and increase
participation by certified businesses with respect  to  state  contracts

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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 recommend new activities and
programs to effectuate the purposes of this article;
  (f) to prepare and update periodically a directory of certified minor-
ity, HONORABLY DISCHARGED VETERAN and women-owned  business  enterprises
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. Section 313 of the executive law, as amended by  chapter  175  of
the laws of 2010, is amended to read as follows:
  S 313. Opportunities  for  minority,  HONORABLY DISCHARGED VETERAN and
women-owned business enterprises. 1. Goals and requirements for agencies
and contractors.  Each agency shall structure procurement procedures for
contracts made directly or indirectly to minority, HONORABLY  DISCHARGED
VETERAN  and  women-owned  business  enterprises, in accordance with the
findings of the two thousand ten disparity study,  consistent  with  the
purposes  of  this  article, to attempt to achieve the following results
with regard to total annual statewide procurement:
  (a) construction industry for certified minority-owned business enter-
prises: fourteen and thirty-four hundredths percent;
  (b) construction industry for certified  women-owned  business  enter-
prises: eight and forty-one hundredths percent;
  (c)  construction related professional services industry for certified
minority-owned business enterprises: thirteen and twenty-one  hundredths
percent;
  (d)  construction related professional services industry for certified
women-owned  business  enterprises:  eleven  and  thirty-two  hundredths
percent;
  (e)  non-construction  related services industry for certified minori-
ty-owned business enterprises: nineteen and sixty hundredths percent;
  (f) non-construction related services industry  for  certified  women-
owned business enterprises: seventeen and forty-four hundredths percent;
  (g)  commodities industry for certified minority-owned business enter-
prises: sixteen and eleven hundredths percent;
  (h) commodities industry for  certified  women-owned  business  enter-
prises:  ten and ninety-three hundredths percent;
  (i)  overall  agency  total  dollar value of procurement for certified
minority-owned business enterprises: sixteen and fifty-three  hundredths
percent;
  (j)  overall  agency  total  dollar value of procurement for certified
women-owned business  enterprises:  twelve  and  thirty-nine  hundredths
percent; and
  (k)  overall  agency  total  dollar value of procurement for certified
minority, women-owned business enterprises: twenty-eight and  ninety-two
hundredths percent.
  1-a.  The  director  shall  ensure  that  each  state  agency has been
provided with a copy of the two thousand ten disparity study.
  1-b. Each agency shall develop and adopt agency-specific  goals  based
on the findings of the two thousand ten disparity study.
  2. The director shall promulgate rules and regulations pursuant to the
goals  established in subdivision one of this section that provide meas-
ures  and  procedures  to  ensure  that  certified  minority,  HONORABLY
DISCHARGED  VETERAN and women-owned businesses shall be given the oppor-

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tunity for maximum feasible participation in the  performance  of  state
contracts  and  to  assist in the agency's identification of those state
contracts for which minority, HONORABLY DISCHARGED  VETERAN  and  women-
owned  certified  businesses  may best bid to actively and affirmatively
promote and assist their  participation  in  the  performance  of  state
contracts  so  as  to facilitate the agency's achievement of the maximum
feasible portion of the goals for state contracts to such businesses.
  2-a. The director shall promulgate rules  and  regulations  that  will
accomplish the following:
  (a)  provide  for  the  certification and decertification of minority,
HONORABLY DISCHARGED VETERAN and women-owned  business  enterprises  for
all  agencies  through  a  single process that meets applicable require-
ments;
  (b) require that each contract solicitation document accompanying each
solicitation set  forth  the  expected  degree  of  minority,  HONORABLY
DISCHARGED  VETERAN  and  women-owned  business enterprise participation
based, in part, on:
  (i) the potential subcontract opportunities  available  in  the  prime
procurement contract; and
  (ii)  the  availability,  as  contained within the study, of certified
minority, HONORABLY DISCHARGED VETERAN and women-owned  business  enter-
prises  to  respond  competitively to the potential subcontract opportu-
nities;
  (c) require that each agency  provide  a  current  list  of  certified
minority business enterprises to each prospective contractor;
  (d)  allow  a contractor that is a certified minority-owned, HONORABLY
DISCHARGED VETERAN-OWNED or women-owned business enterprise to  use  the
work  it  performs  to  meet requirements for use of certified minority-
owned, HONORABLY DISCHARGED VETERAN-OWNED or women-owned business enter-
prises as subcontractors;
  (e) provide for joint ventures, which a bidder may count toward  meet-
ing  its minority, HONORABLY DISCHARGED VETERAN and women-owned business
enterprise participation;
  (f) consistent with subdivision  six  of  this  section,  provide  for
circumstances  under  which  an  agency  may  waive  obligations  of the
contractor  relating  to  minority,  HONORABLY  DISCHARGED  VETERAN  and
women-owned business enterprise participation;
  (g)  require that an agency verify that minority, HONORABLY DISCHARGED
VETERAN and women-owned business enterprises listed in a successful  bid
are actually participating to the extent listed in the project for which
the bid was submitted;
  (h)  provide  for  the  collection  of statistical data by each agency
concerning actual minority, HONORABLY DISCHARGED VETERAN and women-owned
business enterprise participation; and
  (i) require each agency to consult the most  current  disparity  study
when  calculating  agency-wide and contract specific participation goals
pursuant to this article.
  3. Solely for the purpose of providing the opportunity for  meaningful
participation  by  certified  businesses  in  the  performance  of state
contracts as provided in this section,  state  contracts  shall  include
leases  of  real property by a state agency to a lessee where: the terms
of such leases provide for the  construction,  demolition,  replacement,
major  repair or renovation of real property and improvements thereon by
such lessee; and the cost of such construction, demolition, replacement,
major repair or renovation of real  property  and  improvements  thereon
shall  exceed  the  sum  of one hundred thousand dollars. Reports to the

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director pursuant to section three hundred fifteen of this article shall
include activities with respect to all such state contracts. Contracting
agencies shall include or require to be included with respect  to  state
contracts  for  the  acquisition, construction, demolition, replacement,
major repair or renovation of real property  and  improvements  thereon,
such provisions as may be necessary to effectuate the provisions of this
section  in  every  bid specification and state contract, including, but
not limited to: (a) provisions requiring  contractors  to  make  a  good
faith  effort  to solicit active participation by enterprises identified
in the directory of certified businesses  provided  to  the  contracting
agency  by the office; (b) requiring the parties to agree as a condition
of entering into such contract, to be bound by the provisions of section
three hundred sixteen of this article; and (c) requiring the  contractor
to  include  the  provisions set forth in paragraphs (a) and (b) of this
subdivision in every subcontract in a manner that the provisions will be
binding upon each subcontractor as  to  work  in  connection  with  such
contract.  Provided,  however,  that no such provisions shall be binding
upon contractors or subcontractors in the performance  of  work  or  the
provision  of services that are unrelated, separate or distinct from the
state contract as expressed by its terms, and nothing  in  this  section
shall  authorize  the  director  or any contracting agency to impose any
requirement on a contractor or subcontractor except with  respect  to  a
state contract.
  4. In the implementation of this section, the contracting agency shall
(a) consult the findings contained within the disparity study evidencing
relevant industry specific availability of certified businesses;
  (b)  implement  a program that will enable the agency to evaluate each
contract to determine the appropriateness of the goal pursuant to subdi-
vision one of this section;
  (c) consider  where  practicable,  the  severability  of  construction
projects and other bundled contracts; and
  (d)  consider  compliance  with  the  requirements  of any federal law
concerning opportunities for minority, HONORABLY DISCHARGED 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.
  5. (a) Contracting agencies shall administer the rules and regulations
promulgated by the director in a good faith effort to meet  the  maximum
feasible  portion of the agency's goals adopted pursuant to this article
and the regulations of the director. Such rules and  regulations:  shall
require a contractor to submit a utilization plan after bids are opened,
when  bids  are  required,  but  prior to the award of a state contract;
shall require the contracting agency  to  review  the  utilization  plan
submitted  by  the  contractor  and to post the utilization plan and any
waivers of compliance issued pursuant to subdivision six of this section
on the website of the contracting agency within a reasonable  period  of
time as established by the director; shall require the contracting agen-
cy to notify the contractor in writing within a period of time specified
by  the  director  as  to any deficiencies contained in the contractor's
utilization plan; shall require remedy thereof within a period  of  time
specified  by the director; shall require the contractor to submit peri-
odic compliance reports relating to the operation and implementation  of
any  utilization  plan;  shall not allow any automatic waivers but shall

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allow a contractor to apply for a partial or total waiver of the minori-
ty, HONORABLY DISCHARGED VETERAN  and  women-owned  business  enterprise
participation  requirements  pursuant  to  subdivisions six and seven of
this  section;  shall  allow  a  contractor to file a complaint with the
director pursuant to subdivision eight of this section in  the  event  a
contracting agency has failed or refused to issue a waiver of the minor-
ity,  HONORABLY  DISCHARGED  VETERAN and women-owned business enterprise
participation requirements or has denied such request for a waiver;  and
shall  allow  a contracting agency to file a complaint with the director
pursuant to subdivision nine of this section in the event  a  contractor
is  failing  or  has  failed  to  comply  with  the  minority, HONORABLY
DISCHARGED VETERAN and  women-owned  business  enterprise  participation
requirements  set  forth  in the state contract where no waiver has been
granted.
  (b) The rules and regulations promulgated pursuant to this subdivision
regarding a utilization plan shall provide that where  enterprises  have
been  identified  within a utilization plan, a contractor shall attempt,
in good faith, to utilize such enterprise at least to the  extent  indi-
cated. A contracting agency may require a contractor to indicate, within
a  utilization  plan,  what measures and procedures he or she intends to
take to comply with the provisions of this article, but may not require,
as a condition of award of,  or  compliance  with,  a  contract  that  a
contractor  utilize  a  particular  enterprise  in  performance  of  the
contract.
  (c) Without limiting other grounds for the disqualification of bids or
proposals on the basis of non-responsibility, a contracting  agency  may
disqualify  the bid or proposal of a contractor as being non-responsible
for failure to remedy notified deficiencies contained  in  the  contrac-
tor's  utilization plan within a period of time specified in regulations
promulgated by the director after receiving notification of  such  defi-
ciencies  from the contracting agency. Where failure to remedy any noti-
fied deficiency in the utilization plan is a  ground  for  disqualifica-
tion,  that  issue  and  all other grounds for disqualification shall be
stated in writing by the contracting agency. Where the contracting agen-
cy states that a failure to remedy any notified deficiency in the utili-
zation plan is a ground for disqualification  the  contractor  shall  be
entitled  to  an  administrative  hearing,  on  a  record, involving all
grounds  stated  by  the  contracting  agency.  Such  hearing  shall  be
conducted  by  the  appropriate  authority  of the contracting agency to
review the determination of  disqualification.  A  final  administrative
determination  made  following  such  hearing  shall  be reviewable in a
proceeding commenced under article seventy-eight of the  civil  practice
law  and rules, provided that such proceeding is commenced within thirty
days of the notice given by  certified  mail  return  receipt  requested
rendering such final administrative determination. Such proceeding shall
be  commenced in the supreme court, appellate division, third department
and such proceeding shall be  preferred  over  all  other  civil  causes
except  election causes, and shall be heard and determined in preference
to all other civil business pending therein,  except  election  matters,
irrespective  of position on the calendar. Appeals taken to the court of
appeals of the state of New York shall be subject to  the  same  prefer-
ence.
  6.  Where  it  appears  that  a  contractor cannot, after a good faith
effort, comply with  the  minority,  HONORABLY  DISCHARGED  VETERAN  and
women-owned  business enterprise participation requirements set forth in
a particular state contract, a contractor may file a written application

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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, HONORABLY DISCHARGED 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, HONORABLY DISCHARGED VETERAN and women-owned  business  enter-
prises  located  in  the  region  in  which  the state contract is to be
performed, the total dollar value of the state contract,  the  scope  of
work  to  be  performed and the project size and term. If, based on such
considerations, the contracting agency determines there is not a reason-
able availability of contractors on the list of  certified  business  to
furnish  services for the project, it shall issue a waiver of compliance
to the contractor. In making such determination, the contracting  agency
shall  first  consider  the  availability  of other business enterprises
located in the region and shall thereafter consider the financial abili-
ty of minority, HONORABLY DISCHARGED VETERAN and women-owned  businesses
located  outside  the region in which the contract is to be performed to
perform the state contract.
  7. For purposes of determining a contractor's  good  faith  effort  to
comply  with  the  requirements  of  this section or to be entitled to a
waiver therefrom the contracting agency shall consider:
  (a) whether the  contractor  has  advertised  in  general  circulation
media, trade association publications, and minority-focus, VETERAN-FOCUS
and  women-focus  media and, in such event, (i) whether or not certified
minority, HONORABLY DISCHARGED VETERAN or women-owned  businesses  which
have  been  solicited by the contractor exhibited interest in submitting
proposals for a particular project by attending  a  pre-bid  conference;
and
  (ii)  whether  certified  businesses  which have been solicited by the
contractor have responded in a timely fashion to the contractor's solic-
itations for timely competitive bid quotations prior to the  contracting
agency's bid date; and
  (b)  whether there has been written notification to appropriate certi-
fied businesses that appear in the  directory  of  certified  businesses
prepared pursuant to paragraph (f) of subdivision three of section three
hundred eleven of this article; and
  (c) whether the contractor can reasonably structure the amount of work
to  be  performed under subcontracts in order to increase the likelihood
of participation by certified businesses.
  8. In the event that a contracting agency fails or refuses to issue  a
waiver to a contractor as requested within twenty days after having made
application  therefor  pursuant to subdivision six of this section or if
the contracting agency denies such application, in whole or in part, the
contractor may file a complaint with the director  pursuant  to  section
three  hundred  sixteen  of  this  article  setting  forth the facts and
circumstances giving rise to the contractor's complaint together with  a
demand  for  relief. The contractor shall serve a copy of such complaint
upon the contracting agency by personal service or  by  certified  mail,
return  receipt  requested.  The contracting agency shall be afforded an
opportunity to respond to such complaint in writing.
  9.  If,  after  the  review  of  a  contractor's  minority,  HONORABLY
DISCHARGED  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

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the contracting agency  in  connection  therewith,  it  appears  that  a
contractor is failing or refusing to comply with the minority, HONORABLY
DISCHARGED  VETERAN  and women-owned business participation requirements
as  set  forth  in  the  state  contract  and  where no waiver from such
requirements has been granted, the contracting agency may file a written
complaint with the director pursuant to section three hundred sixteen of
this article setting forth the facts and circumstances  giving  rise  to
the  contracting  agency's  complaint together with a demand for relief.
The contracting agency shall serve a copy of  such  complaint  upon  the
contractor  by  personal  service  or  by certified mail, return receipt
requested. The contractor shall be afforded an opportunity to respond to
such complaint in writing.
  S 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, HONOR-
ABLY DISCHARGED 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  imple-
ment  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  resolution,  an  equal
opportunity program or a program for securing participation of minority,
HONORABLY  DISCHARGED  VETERAN and women-owned business enterprises with
regard to banking relationships, the issuance of insurance  policies  or
contracts  for  the  sale  of  bonds,  notes  or  other securities; and,
provided further, that nothing contained in  the  immediately  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,  HONORABLY  DISCHARGED  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, HONORABLY  DISCHARGED  VETERAN  or
women-owned  firms and the ability of other firms under consideration to
work with minority, HONORABLY DISCHARGED VETERAN and  women-owned  busi-
ness  enterprises  so  as  to  promote  and assist participation by such
enterprises.

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  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,  HONORABLY
DISCHARGED  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, HONORABLY DISCHARGED
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  subcon-
tractors  and suppliers in newspapers, journals and other trade publica-
tions distributed in New York  state,  or  [(d)]  (IV)  participated  in
bidder  outreach conferences. If the contractor determines that New York
state business enterprises are  not  available  to  participate  on  the
contract  as subcontractors or suppliers, the contractor shall provide a
statement indicating the method by which such determination was made. If
the contractor does not intend to use subcontractors  on  the  contract,
the  contractor  shall  provide a statement verifying such intent.  Such
contractors shall also provide notification to New York state  residents
of  employment opportunities through listing any such positions with the
community services division, or providing for such notification in  such
manner as is consistent with existing collective bargaining contracts or
agreements.  On or before the effective date of this section, each state
agency or department shall submit such policies to the division  of  the
budget  and  copies  thereof to the department of audit and control, the
department of economic development, the senate finance committee and the
assembly ways and means committee.
  S 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

A. 9228                            10

1993  and  paragraph  (a) of subdivision 16 as amended by chapter 424 of
the laws of 2009, are amended to read as follows:
  5.  "Certified  [minority-]  MINORITY, HONORABLY DISCHARGED VETERAN or
women-owned  business"  means  any   [minority-]   MINORITY,   HONORABLY
DISCHARGED  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, HONORABLY  DISCHARGED  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, HONORABLY DISCHARGED VETERAN
and women-owned businesses, projects to provide financing  necessary  to
carry  out  a  procurement contract with an agency or authority or other
entity of the state or federal government.
  (a) for a linked deposit made in connection with a linked  loan  to  a
certified  business in an empire zone or to an eligible business located
in a highly distressed area or to an eligible business that  is  defined
in paragraph (b-1) of subdivision eleven of this section that is located
in a renewal community or defined in paragraph (b-2) of such subdivision
that  is located in an empowerment zone or defined in paragraph (b-3) of
such subdivision that is located in an enterprise community, respective-
ly for eligible projects defined in paragraph (c) of subdivision  twelve
of   this   section  or  a  certified  [minority-]  MINORITY,  HONORABLY
DISCHARGED 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
amended  by  chapter  424  of  the  laws  of 2009, is amended to read as
follows:
  1. Linked loans made to certified businesses in  empire  zones  or  to
eligible businesses in highly distressed areas or to eligible businesses
that are defined in paragraph (b-1) of subdivision eleven of section two
hundred thirteen of this article that are located in a renewal community
or defined in paragraph (b-2) of such subdivision that are located in an
empowerment  zone or defined in paragraph (b-3) of such subdivision that
are located  in  an  enterprise  community,  respectively  for  eligible
projects  defined  in paragraph (c) of subdivision twelve of section two
hundred thirteen of this article or to minority-,  HONORABLY  DISCHARGED
VETERAN-  or  women-owned  business  enterprises for an eligible project
defined in paragraph (e) of subdivision twelve of  section  two  hundred
thirteen  of  this  article  or to a defense industry manufacturer for a
project defined in paragraph (d) of subdivision twelve  of  section  two
hundred  thirteen  of  this  article shall bear interest at a fixed rate
equal to three percentage points below the fixed interest rate the lend-
er 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.

A. 9228                            11

Lenders  shall  certify to the commissioner of economic development that
the rate to be charged on a linked loan  is  two  percentage  points  or
three percentage points, as the case may be, below the interest rate the
lender would have charged for the loan in the absence of a linked depos-
it.
  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, HONORABLY DISCHARGED VETERAN and women-owned  business  enter-
prises  shall be given the opportunity for meaningful participation. 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  or  other voting interest is owned by citizens or permanent resi-
dent 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;  HONORABLY DISCHARGED VETERAN OWNED BUSINESS ENTERPRISE SHALL MEAN
THE SAME AS  PROVIDED  IN  SUBDIVISION  TWENTY-THREE  OF  SECTION  THREE
HUNDRED  TEN  OF  THE EXECUTIVE LAW; and women-owned business enterprise
shall mean any business enterprise  which  is  at  least  fifty-one  per
centum  owned  by, or in the case of a publicly owned business, at least
fifty-one per centum of the stock to other voting interests of which  is
owned  by  citizens or permanent resident aliens who are women, and such
ownership interest is real,  substantial  and  continuing  and  has  the
authority  to independently control the day to day business decisions of
the entity for at least one year.
  The provisions of this subdivision shall not be construed to limit the
ability of any minority business enterprise to bid on any contract.
  (ii) In order to implement the requirements  and  objectives  of  this
section,  the  council  shall request, as appropriate, the assistance of
other  state  agencies  to  monitor  the  contractors'  compliance  with
provisions  hereof,  provide assistance in obtaining competing qualified
minority, HONORABLY DISCHARGED VETERAN and women-owned  business  enter-
prises  to  perform  contracts  proposed  to  be awarded, and take other
appropriate measures  to  improve  the  access  of  minority,  HONORABLY
DISCHARGED   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,
HONORABLY DISCHARGED VETERAN or women-owned business enterprise, includ-
ing, but not limited to, management  assistance,  problem  solving,  the
development  of business and marketing plans, market analysis, financial
planning, regulatory compliance, safety and  security  measures,  export
assistance,   procurement   assistance,  application  assistance,  state
program assistance, referral to private and  public  financing  sources,
contracting  assistance, and other forms of assistance which the commis-
sioner deems necessary and appropriate.
  S 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:

A. 9228                            12

  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,  HONORABLY  DISCHARGED
VETERAN OWNED BUSINESS ENTERPRISES and women-owned business enterprises,
as such terms are defined in section two hundred ten of this chapter;
  2.  Receive  complaints and inquiries of operators of minority, HONOR-
ABLY DISCHARGED 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,  HONORABLY
DISCHARGED  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, HONORABLY  DISCHARGED  VETERAN
and  women-owned  business  enterprises  of  the  state  and promote and
encourage the protection of the legitimate interests of minority, HONOR-
ABLY DISCHARGED VETERAN and women-owned business enterprises within  the
state;
  5.  Conduct  investigations, research, studies and analyses of matters
affecting the interests of minority, HONORABLY  DISCHARGED  VETERAN  and
women-owned business enterprises;
  6.  Study the implementation of the laws affecting minority, HONORABLY
DISCHARGED VETERAN and women-owned business enterprises and recommend to
the commissioner new laws and amendments of  laws  for  the  benefit  of
minority,  HONORABLY  DISCHARGED VETERAN and women-owned business enter-
prises; and review pending  legislation  affecting  minority,  HONORABLY
DISCHARGED  VETERAN  and women-owned business enterprises and report its
findings to the commissioner;
  7. Provide technical assistance and information to minority, HONORABLY
DISCHARGED 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, established 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,  estab-
lished  pursuant to article eight of this chapter, and (d) the entrepre-
neurial assistance program, established pursuant to article nine of this
chapter;
  8. Provide technical assistance and information to minority, HONORABLY
DISCHARGED VETERAN and women-owned business enterprises in the state  on
economic  development  programs  administered by agencies other than the
department, including, but not limited to programs administered  by  the
urban  development  corporation,  the  job development authority and the
science and technology foundation;
  9. Be responsible for conducting minority, HONORABLY DISCHARGED VETER-
AN and women-owned business enterprise assistance programs and for coor-
dinating the activities of all other state agencies  acting  within  the
scope of this section; and
  10.  Carry  out  the  activities  to implement the minority, HONORABLY
DISCHARGED  VETERAN  and  women-owned  business  enterprise   assistance
programs,  to the extent practicable, within amounts appropriated there-
for by[;]:

A. 9228                            13

  (a)  collecting  and  maintaining  information  identifying  certified
minority,  HONORABLY  DISCHARGED VETERAN and women-owned business enter-
prises 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, HONORABLY DISCHARGED VETERAN
and women-owned business enterprises;
  (d) identifying special needs and problems facing minority,  HONORABLY
DISCHARGED  VETERAN and women-owned business enterprises within New York
state;
  (e) contacting institutions, organizations and commercial  enterprises
that  are  potential consumers of minority, HONORABLY DISCHARGED VETERAN
and women-owned business products and services;  urging  their  expanded
consumption of such goods and services;
  (f)  facilitating  the establishment of minority, HONORABLY DISCHARGED
VETERAN and women-owned business enterprises; and
  (g) providing information concerning local and regional  opportunities
for  minority,  HONORABLY  DISCHARGED  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.  "HONORABLY DISCHARGED VETERAN OWNED BUSINESS ENTERPRISE" MEANS THE
SAME AS DEFINED IN SUBDIVISION TWENTY-THREE 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 352 of the laws of 2009,
are amended to read as follows:
  (b)  to  provide  outreach  to businesses, with attention to small and
medium-sized businesses, including minority, HONORABLY DISCHARGED VETER-
AN and women-owned business enterprises,  for  financial  and  technical
assistance  offered by state economic development agencies, authorities,
or other economic entities;
  (i) to provide information and  assistance  in  the  certification  of
minority,  HONORABLY  DISCHARGED VETERAN and women-owned business enter-
prises;
  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,  HONORABLY DISCHARGED VETERAN and women-owned busi-
             ness enterprise program.
  1. a.  In  the  performance  of  projects  pursuant  to  this  article
minority,  HONORABLY  DISCHARGED VETERAN and women-owned business enter-
prises 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, HONORABLY DISCHARGED VETERAN and women-owned
business  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 article shall be construed to limit the ability
of the department or office to assure that qualified minority, HONORABLY
DISCHARGED  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

A. 9228                            14

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; HONORABLY DISCHARGED VETERAN OWNED  BUSINESS  ENTERPRISE
SHALL  MEAN  THE  SAME AS DEFINED IN SUBDIVISION TWENTY-THREE 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, HONORABLY DISCHARGED 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, HONORABLY DISCHARGED
VETERAN and women-owned business enterprises, which may  effectuate  the
requirements of this section. If the department or the office determines
that by virtue of the imposition of the requirements of any such law, in
respect  to  capital project contracts, the provisions thereof duplicate
or conflict with such law, the department may waive the applicability of
this section to the extent of such duplication or conflict.
  c. Nothing in this section shall be deemed  to  require  that  overall
state  and federal requirements for participation of minority, HONORABLY
DISCHARGED VETERAN and  women-owned  business  enterprises  in  programs
authorized under this article be applied without regard to local circum-
stances 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,   HONORABLY
DISCHARGED  VETERAN  and  women-owned  business  enterprises  to perform
contracts proposed to be awarded, and take other appropriate measures to
improve the access of minority, HONORABLY DISCHARGED VETERAN and  women-
owned business enterprises to these contracts.
  S  17.  Subparagraph  (i)  of  paragraph (b), the opening paragraph of
paragraph (c), paragraphs (i) and (j) and subparagraphs (ii)  and  (iii)
of paragraph (n) of subdivision 3 of section 2879 of the public authori-
ties  law,  subparagraph (i) of paragraph (b) as amended, paragraphs (i)
and (j) as added, and subparagraphs (ii) and (iii) of paragraph  (n)  as
relettered  by  chapter  174  of  the  laws of 2010 and paragraph (c) as
amended by chapter 564 of the laws of 1988, are amended and a new  para-
graph (e-1) is added to read as follows:
  (i)  for the selection of such contractors on a competitive basis, and
provisions relating to the circumstances under which the  board  may  by
resolution  waive  competition,  including,  notwithstanding  any  other
provision of  law  requiring  competition,  the  purchase  of  goods  or
services  from  small  business concerns or those certified as minority,
HONORABLY DISCHARGED VETERAN or  women-owned  business  enterprises,  or
goods  or  technology  that are recycled or remanufactured, in an amount

A. 9228                            15

not to exceed two hundred thousand dollars without a formal  competitive
process;
  An  identification  of  those  areas  or  types of contracts for which
minority, HONORABLY DISCHARGED VETERAN or  women-owned  business  enter-
prises  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  proprietor-
ship, partnership or corporation that is:
  (i) The establishment of appropriate goals for participation by minor-
ity, HONORABLY DISCHARGED VETERAN or women-owned business enterprises in
procurement contracts awarded by the corporation and for the utilization
of minority, HONORABLY DISCHARGED VETERAN and women-owned enterprises as
subcontractors  and  suppliers  by entities having procurement contracts
with the corporation. Statewide  numerical  participation  target  goals
shall  be established by each authority based on the findings of the two
thousand ten disparity study.
  (j) Requirements to conduct procurements in a manner that will  enable
the  corporation  to  achieve  the maximum feasible portion of the goals
established pursuant to paragraph (i) of this subdivision and that elim-
inates barriers  to  participation  by  minority,  HONORABLY  DISCHARGED
VETERAN  and  women-owned  business  enterprises  in  the  corporation's
procurements. Such procurement requirements shall include the following:
  (A) Measures and procedures to ensure that certified businesses  shall
be  given  the  opportunity  for  maximum  feasible participation in the
performance of state contracts and to assist in the corporation's  iden-
tification  of  those state contracts for which certified businesses may
best bid to actively and affirmatively promote and assist their  partic-
ipation  in  the  performance of state contracts so as to facilitate the
corporation's achievement of the maximum feasible portion of  the  goals
for state contracts to such businesses;
  (B)   Provisions  designating  the  division  of  minority,  HONORABLY
DISCHARGED VETERAN and women-owned business development to  certify  and
decertify  minority,  HONORABLY DISCHARGED VETERAN and women-owned busi-
ness enterprises for all corporations  through  a  single  process  that
meets applicable state and federal requirements;
  (C)  A requirement that each contract solicitation document accompany-
ing each solicitation set forth the expected degree of minority,  HONOR-
ABLY  DISCHARGED  VETERAN  and  women-owned  business enterprise partic-
ipation based, in part, on:
  I. the potential subcontract  opportunities  available  in  the  prime
procurement contract; and
  II.  the  availability  of  certified  minority,  HONORABLY DISCHARGED
VETERAN and women-owned business enterprises to respond competitively to
the potential subcontract opportunities;
  (D) A requirement that each corporation  provide  a  current  list  of
certified minority business enterprises to each prospective contractor;
  (E)  Provisions  relating  to joint ventures, under which a bidder may
count toward meeting  its  minority  business  enterprise  participation
goal,  the  minority, HONORABLY DISCHARGED VETERAN and women-owned busi-
ness enterprise portion of the joint venture;
  (F) Provisions under which the corporation may  waive  obligations  of
the  contractor  relating  to minority, HONORABLY DISCHARGED VETERAN and
women-owned business enterprise participation after a  showing  of  good
faith  efforts  to  comply with the requirements of this act pursuant to

A. 9228                            16

the waiver provisions contained in  subdivision  six  of  section  three
hundred thirteen of the executive law;
  (G) A requirement that the corporation verify that minority, HONORABLY
DISCHARGED  VETERAN  and  women-owned  business  enterprises listed in a
successful bid are actually participating to the extent  listed  in  the
project for which the bid was submitted;
  (H) In the implementation of this section, the contracting corporation
shall:
  I.  consider,  where  practicable,  the  severability  of construction
projects and other bundled contracts;
  II. implement a program that will enable the corporation  to  evaluate
each  contract  to determine the appropriateness of the goal pursuant to
paragraph (i) of this subdivision;
  III. consider compliance with the  requirements  of  any  federal  law
concerning  opportunities for minority, HONORABLY DISCHARGED VETERAN and
women-owned business enterprises which effectuates the purpose  of  this
section; and
  IV.  consult  the  most  recent  disparity  study  pursuant to article
fifteen-A of the executive law.
  (ii) with the cooperation of the department  of  economic  development
and  through  cooperative  efforts  with  contractors, providing for the
notification of New York state business enterprises of opportunities  to
participate as subcontractors and suppliers on procurement contracts let
by the corporation in an amount estimated to be equal to or greater than
one  million  dollars  and  promulgating  procedures  which  will assure
compliance by contractors  with  such  notification.  Once  awarded  the
contract  such contractors shall document their efforts to encourage the
participation of New York state business enterprises  as  suppliers  and
subcontractors  on  procurement  contracts  equal to or greater than one
million dollars. Documented efforts by  a  successful  contractor  shall
consist of and be limited to showing that such contractor has (a) solic-
ited bids, in a timely and adequate manner, from New York state business
enterprises  including  certified minority, HONORABLY DISCHARGED VETERAN
and women-owned business, or (b) contacted the New York state department
of economic development to obtain listings of New  York  state  business
enterprises,  or  (c) placed notices for subcontractors and suppliers in
newspapers, journals and other trade  publications  distributed  in  New
York  state,  or (d) participated in bidder outreach conferences. If the
contractor determines that New York state business enterprises  are  not
available to participate on the contract as subcontractors or suppliers,
the  contractor shall provide a statement indicating the method by which
such determination was made. If the contractor does not  intend  to  use
subcontractors on the contract, the contractor shall provide a statement
verifying such intent; and
  (iii) except for procurement contracts for which the corporation would
be  expending  funds  received from another state, the corporation shall
include in all bid documents provided to potential bidders  a  statement
that  information  concerning the availability of New York state subcon-
tractors and suppliers is available from the New York  state  department
of  economic development, which shall include the directory of certified
minority, HONORABLY DISCHARGED 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,  HONORABLY DISCHARGED VETERAN and women-owned businesses where
possible, in the procurement of goods and services; and

A. 9228                            17

  (E-1) FOR PURPOSES OF  THIS  SECTION,  "HONORABLY  DISCHARGED  VETERAN
OWNED  BUSINESS  ENTERPRISE"  MEANS  THE  SAME AS DEFINED IN SUBDIVISION
TWENTY-THREE 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) "HONORABLY DISCHARGED   VETERAN OWNED BUSINESS  ENTERPRISE"  SHALL
MEAN  THE  SAME  AS DEFINED IN SUBDIVISION TWENTY-THREE OF SECTION THREE
HUNDRED TEN OF THE EXECUTIVE LAW.
  S 19. Subdivisions (g) and (t) of section 959 of the general municipal
law, as amended by section 3 of part S-1 of chapter 57 of  the  laws  of
2009, are amended to read as follows:
  (g)  Coordinate,  with  the local empire zone administrative board and
state agencies and authorities, the provision  of  business  development
programs  and  services  for  each empire zone in order to stimulate the
creation and development of new small businesses,  including  new  small
minority-owned, HONORABLY DISCHARGED VETERAN-OWNED and women-owned busi-
ness enterprises, and may request and shall receive from any department,
division,  board,  bureau, commission, agency or public authority of the
state such assistance as may be necessary;
  (t) Coordinate with the urban development corporation the creation  of
a  special category of assistance for zones within the regional economic
development partnership program,  which  will  make  available  economic
development  assistance grants for zone programs and activities, includ-
ing, but not limited  to,  planning,  service  coordination,  and  local
institutional capacity building for human resource development necessary
for  economic revitalization; planning and development of small business
incubators; job placement and preparedness programs for zones residents;
education and training programs for zone businesses; child care programs
and projects supportive of business  development;  technical  assistance
for  minority,  HONORABLY  DISCHARGED  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;
  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:
  (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, HONORABLY DISCHARGED
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, HONORABLY DISCHARGED VETERAN-OWNED and
women-owned business enterprises in empire zone development activities;
  S 22. Paragraphs (iii) and (xii) of subdivision (a) of section 963  of
the  general  municipal  law,  as  amended by chapter 708 of the laws of
1993, as further amended by section 15 of part GG of chapter 63  of  the
laws of 2000 and as relettered by section 7 of part S-1 of chapter 57 of
the laws of 2009, are amended to read as follows:
  (iii)  undertake efforts to ensure meaningful participation by minori-
ty-owned, HONORABLY DISCHARGED VETERAN-OWNED  and  women-owned  business
enterprises in empire zone activities;

A. 9228                            18

  (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, HONORABLY  DISCHARGED  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,  HONORABLY  DISCHARGED  VETERAN-OWNED   and
women-owned  business  enterprises  in the activities and investments of
such corporation. Each such corporation shall additionally, to the maxi-
mum extent feasible, undertake measures and procedures to  ensure  mean-
ingful participation by locally owned business enterprises in the activ-
ities and investments of such corporation.
  S  24. Subparagraph 7 of paragraph f of subdivision 3 of section 970-r
of the general municipal law, as amended by section 1 of part F of chap-
ter 577 of the laws of 2004, is amended to read as follows:
  (7) the financial commitments the applicant will make  to  the  brown-
field  opportunity  area  for  activities including, but not limited to,
marketing of the area for business development, human resource  services
for  residents  and  businesses  in the brownfield opportunity area, and
services for small [and], minority,  HONORABLY  DISCHARGED  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,  HONORABLY  DISCHARGED
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.

A. 9228                            19

  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, HONORABLY DISCHARGED VETERAN and women-owned business
enterprise  program.  1.  (a) Minority, HONORABLY DISCHARGED VETERAN and
women-owned business enterprises shall  be  given  the  opportunity  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 corpo-
ration shall establish measures  and  procedures  to  secure  meaningful
participation  and  identify those contracts and items of work for which
minority, HONORABLY DISCHARGED VETERAN and women-owned  business  enter-
prises  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, however, that
nothing in this act shall be construed  to  limit  the  ability  of  the
corporation  to  assure  that  qualified  minority, HONORABLY DISCHARGED
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; HONORABLY
DISCHARGED VETERAN BUSINESS ENTERPRISE SHALL MEAN THE SAME AS DEFINED IN
SUBDIVISION 23 OF SECTION 310 OF  THE  EXECUTIVE  LAW;  and  women-owned
business enterprise shall mean any business enterprise which is at least
fifty-one  per centum owned by, or in the case of a publicly owned busi-
ness, 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,  HONORABLY DISCHARGED 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,  HONORABLY  DISCHARGED
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,  HONORABLY
DISCHARGED  VETERAN  and  women-owned  business  enterprises in programs
authorized under this act be applied without  regard  to  local  circum-
stances 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, HONORABLY DISCHARGED VETERAN and

A. 9228                            20

women-owned business enterprises to perform  contracts  proposed  to  be
awarded,  and  take  other appropriate measures to improve the access of
minority, HONORABLY DISCHARGED VETERAN and women-owned  business  enter-
prises 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, HONORABLY DISCHARGED VETERAN and  women-owned  busi-
ness  enterprise  program. 1. a. In the performance of projects pursuant
to this act minority, HONORABLY DISCHARGED VETERAN and women-owned busi-
ness enterprises shall be given the opportunity for  meaningful  partic-
ipation.  The  agency  shall establish measures and procedures to secure
meaningful participation and identify those contracts and items of  work
for  which  minority, HONORABLY DISCHARGED 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  agency  to  assure  that  qualified  minority, HONORABLY DISCHARGED
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; HONORABLY
DISCHARGED VETERAN BUSINESS ENTERPRISE SHALL MEAN THE SAME AS DEFINED IN
SUBDIVISION 23 OF SECTION 310 OF  THE  EXECUTIVE  LAW;  and  women-owned
business enterprise shall mean any business enterprise which is at least
fifty-one  per centum owned by, or in the case of a publicly owned busi-
ness, 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,  HONORABLY DISCHARGED 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,  HONORABLY  DISCHARGED  VETERAN
and  women-owned business enterprises, which may effectuate the require-
ments 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, HONORABLY
DISCHARGED VETERAN and  women-owned  business  enterprises  in  programs
authorized  under  this  act  be applied without regard to local circum-
stances to all projects or in all communities.

A. 9228                            21

  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, HONORABLY DISCHARGED  VETERAN  and  women-
owned  business enterprises to perform contracts proposed to be awarded,
and take other appropriate measures to improve the access  of  minority,
HONORABLY  DISCHARGED  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,  HONORABLY DISCHARGED VETERAN or women-owned enter-
prises 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, HONORABLY DISCHARGED VETERAN and women-
owned business development and lending program.
  (1) [Minority-]  MINORITY, HONORABLY  DISCHARGED  VETERAN  and  women-
owned  business  development  and lending program.   (a) There is hereby
created a [minority-] MINORITY, HONORABLY DISCHARGED VETERAN and  women-
owned  business  development  and  lending  program  for  the purpose of
providing financial and  technical  assistance  to  minority,  HONORABLY
DISCHARGED VETERAN and women-entrepreneurs.
  (b)  For  the  purposes  of  this section the following words or terms
shall mean as follows:
  (i) "minority-owned business enterprise" or "minority-owned  business"
shall  mean  the  same  as  "minority business enterprise" as defined in
subdivision [three] 3 of section [two hundred ten] 210 of  the  economic
development law.
  (ii) "women-owned business enterprise" or "women-owned business" shall
mean  the same as "women-owned business enterprise" as defined in subdi-
vision [five] 5 of section [two hundred ten] 210 of the economic  devel-
opment law.
  (iii)  "HONORABLY  DISCHARGED  VETERAN BUSINESS ENTERPRISE" SHALL MEAN
THE SAME AS DEFINED IN SUBDIVISION 23 OF SECTION 310  OF  THE  EXECUTIVE
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,  HONORABLY  DISCHARGED VETERAN and women-owned business enter-
prises.
  (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,  HONORABLY  DISCHARGED
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;

A. 9228                            22

  (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, HONORABLY DISCHARGED VETERAN  and  women-
owned businesses;
  (ii)   establish  a  comprehensive  program  for  minority,  HONORABLY
DISCHARGED 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, HONORABLY DISCHARGED VETERAN and  women-owned  businesses  and
for  [minority-]  MINORITY, HONORABLY DISCHARGED 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, HONORABLY DISCHARGED VETERAN and women-owned busi-
nesses;
  (v)  establish a program to create incubators to assist small and high
risk [minority-] MINORITY, HONORABLY DISCHARGED VETERAN and  women-owned
businesses to grow and prosper;
  (vi)  promote  equity  investment  in  [minority-] MINORITY, HONORABLY
DISCHARGED 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, HONORABLY DISCHARGED VETERAN and  women-owned  businesses
and  potential  minority,  HONORABLY DISCHARGED VETERAN and women-entre-
preneurs.
  (2) Minority, HONORABLY DISCHARGED 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,  HONORABLY  DISCHARGED
VETERAN  and  women-owned  businesses,  the  corporation shall establish
minority, HONORABLY DISCHARGED VETERAN and women  revolving  loan  trust
fund accounts and related administrative expenses trust fund accounts.
  (a)  Each  minority,  HONORABLY DISCHARGED VETERAN and women revolving
loan trust fund account shall be administered by  one  or  more  of  the
following  types  of  entities  that provide services to community busi-
nesses and have as one  of  their  primary  purposes  the  provision  of
services  and  assistance  to [minority-] MINORITY, HONORABLY DISCHARGED
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, HONORABLY DISCHARGED VETERAN and women-owned businesses
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.

A. 9228                            23

  (b)  To  be  eligible  to  administer a minority, HONORABLY DISCHARGED
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,
HONORABLY  DISCHARGED  VETERAN  and  women  revolving  loan  trust  fund
accounts through a competitive statewide request for proposal process.
  (c) Any entity selected to administer a minority, HONORABLY DISCHARGED
VETERAN and women revolving loan trust fund account shall be eligible to
draw funds from the account as needed to provide the following types  of
financial  assistance  to  [minority-]  MINORITY,  HONORABLY  DISCHARGED
VETERAN and women-owned businesses upon certification to and  acceptance
by  the  corporation  that such assistance complies with rules and regu-
lations promulgated by  the  corporation:  (i)  working  capital  loans,
provided  that  the amount of the loan does not exceed thirty-five thou-
sand 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, HONOR-
ABLY DISCHARGED VETERAN and women revolving loan trust fund account. The
initial deposit of  funds  to  an  administrative  expenses  trust  fund
account  shall  be an amount determined by the corporation but shall not
exceed twenty-five thousand dollars.
  (ii) An entity selected to administer a minority, HONORABLY DISCHARGED
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, HONORABLY DISCHARGED 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, HONOR-
ABLY DISCHARGED VETERAN and women revolving  loan  trust  fund  account,
said amounts may be used for costs incurred by the entity in administer-
ing  the minority, HONORABLY DISCHARGED VETERAN and women revolving loan
trust fund account; and
  (C) repayments of interest on loans made from the corresponding minor-
ity, HONORABLY DISCHARGED VETERAN and women revolving  loan  trust  fund
account.

A. 9228                            24

  (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,  HONORABLY DISCHARGED 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, HONORABLY DISCHARGED 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, HONORABLY DISCHARGED
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,  HONORABLY DISCHARGED 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, HONORABLY DISCHARGED 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, HONORABLY DISCHARGED VETERAN and
women  revolving  loan trust fund account and used to provide the finan-
cial assistance to [minority-] MINORITY,  HONORABLY  DISCHARGED  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,
HONORABLY DISCHARGED  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,  HONORABLY  DISCHARGED  VETERAN and women revolving loan trust
fund account, and "regional revolving [loans]  LOAN  trust  fund"  shall
mean  a  minority, HONORABLY DISCHARGED 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, HONORABLY DISCHARGED VETERAN and women-owned busi-
ness development and lending program to any entity selected to  adminis-
ter  a  minority,  HONORABLY DISCHARGED VETERAN and women revolving loan
trust fund for the purposes of recapitalizing such account and the enti-
ty'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,  HONORABLY DISCHARGED 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.

A. 9228                            25

  (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, HONORABLY DISCHARGED VETER-
AN  and  women-owned  businesses located within their respective service
areas, provided that loan review  committees  are  established  by  such
administering  entity, including women, HONORABLY DISCHARGED VETERAN and
minority persons experienced in business management,  business  develop-
ment,  commercial  lending,  entrepreneurship,  or in the operation 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, HONORABLY DISCHARGED VETERAN and women
revolving loan trust fund accounts  and  administrative  expenses  trust
fund  accounts  shall  be  established in a similar fashion for entities
selected to administer micro-loan funds pursuant to this subdivision.
  (4) Minority,  HONORABLY  DISCHARGED  VETERAN  and  women  contracting
program.  For  the  purpose  of  establishing a comprehensive program to
assist minority, HONORABLY DISCHARGED VETERAN and women contractors, the
corporation may provide loans, loan guarantees, technical assistance and
bonding assistance, the corporation may enter  into  cooperative  agree-
ments  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
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,  HONORABLY  DISCHARGED  VETERAN  and  women-owned
government contractors as part of its comprehensive technical assistance
program.
  (c)  The  corporation  is authorized to provide assistance through the
creation of, or assistance to, a minority, HONORABLY DISCHARGED  VETERAN
and  women  bonding  guarantee  program  to  enable  minority, HONORABLY
DISCHARGED 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, HONORABLY DISCHARGED VETERAN and women
contractors and subcontractors who have secured contracts by participat-
ing 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.

A. 9228                            26

  (5)  Direct  financial  assistance for [minority-] MINORITY, HONORABLY
DISCHARGED VETERAN and women-owned businesses. For the purpose of estab-
lishing a program to provide direct financial assistance to  [minority-]
MINORITY,  HONORABLY  DISCHARGED VETERAN and women-owned businesses, the
corporation is authorized to provide assistance in the form of:
  (a)  Business development loans and loan guarantees pursuant to subdi-
vision six of this section to eligible enterprises for  the  acquisition
or  improvement  of real property, machinery, equipment or working capi-
tal, provided that to be eligible for a business development  loan,  the
borrowers  must  have  been  in  business  for  at least three years and
provided that the loans must be in an amount equal to or  in  excess  of
fifty thousand dollars;
  (b)  Franchise  loans  to  eligible  enterprises seeking to acquire or
expand franchises of nationally recognized corporations,  provided  that
disbursements  by  the corporation of such loans shall be conditioned on
obtaining such franchises;
  (c) Equity assistance  for  eligible  minority,  HONORABLY  DISCHARGED
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, HONORABLY DISCHARGED VETERAN and
women-owned businesses; and
  (b) Provide loan guarantees  to  private  financial  institutions  for
loans made to eligible [minority-] MINORITY, HONORABLY DISCHARGED VETER-
AN  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  corpo-
ration 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  credit  union
or banking or financial institution to make a loan.
  (7)  Minority,  HONORABLY  DISCHARGED VETERAN and women small business
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, HONORABLY DISCHARGED
VETERAN and women-owned business enterprises with growth potential.
  (b) Under this subdivision the corporation is  authorized  to  provide
low-interest  loans  and grants for construction financing and permanent
financing of up to seventy-five percent of project costs up to a maximum
of six hundred fifty thousand dollars per  project,  provided  that  the
total  amount  of  grant  assistance provided pursuant to this paragraph
shall not exceed twenty percent of an  appropriation  provided  for  the
purposes of this section.

A. 9228                            27

  (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:
  (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,  HONORABLY DISCHARGED 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, HONORABLY DISCHARGED VETERAN and women-owned
business technical assistance program. (a) The corporation shall  estab-
lish  a  comprehensive technical assistance program within the minority,
HONORABLY DISCHARGED VETERAN and women business development  office,  in
cooperation  with  the  department of economic development's division of
[minority-] MINORITY, HONORABLY DISCHARGED  VETERAN  and  women-business
development established pursuant to article [four-A] 4-A of the economic
development  law, to provide technical assistance to [minority-] MINORI-
TY, HONORABLY DISCHARGED VETERAN and  women-owned  business  enterprises
and  to  prospective  [minority-] MINORITY, HONORABLY DISCHARGED 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

A. 9228                            28

diversification  of a [minority-] MINORITY, HONORABLY DISCHARGED 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, HONORABLY DISCHARGED VETERAN and  women-owned  businesses
and  minority,  HONORABLY  DISCHARGED  VETERAN  and women entrepreneurs,
where appropriate,  including  the  entrepreneurial  assistance  program
established  pursuant  to  article  [nine] 9 of the economic development
law; and
  (v) technical assistance through education programs directed primarily
at women, HONORABLY DISCHARGED 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,  HONORABLY  DISCHARGED
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
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, HONORABLY DISCHARGED VETERAN and women business devel-
opment and lending account.  Notwithstanding any provision of law to the
contrary, the corporation shall establish within  the  treasury  of  the
corporation  a minority, HONORABLY DISCHARGED 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,   HONORABLY
DISCHARGED  VETERAN  and  women-owned  business  development and lending
program. Funds in the minority, HONORABLY DISCHARGED 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 hereunder. The amounts
deposited  in the minority, HONORABLY DISCHARGED VETERAN and women busi-
ness development and lending account may not be  interchanged  with  any
other  account, but may be commingled with any other account for invest-
ment purposes. All loans disbursed by the corporation  shall  be  repaid

A. 9228                            29

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,
HONORABLY DISCHARGED VETERAN and women business development and  lending
account: all moneys appropriated or reappropriated by New York state for
the  minority,  HONORABLY  DISCHARGED  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  appropri-
ation  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 minority, HONORABLY DISCHARGED 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
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,
HONORABLY DISCHARGED 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, HONORABLY DISCHARGED VETERAN  and
women-owned  businesses, flexible manufacturing networks, and new enter-

A. 9228                            30

prises and small businesses, including the  establishment  of  neighbor-
hood-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, HONORABLY DISCHARGED VETERAN and women-owned busi-
nesses;
  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, HONORABLY DISCHARGED 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:
  (d)  The  participation  of [minority-] MINORITY, HONORABLY DISCHARGED
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,  HONORABLY  DISCHARGED
VETERAN-OWNED  and  women-owned  business  enterprises,  certified  as a
minority-owned, HONORABLY DISCHARGED VETERAN-OWNED or women-owned  busi-
ness  enterprise  pursuant  to article [fifteen-A] 15-A of the executive
law, to meet payment and/or performance bonding requirements by  provid-
ing  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,  HONORABLY  DISCHARGED  VETERAN-OWNED and women-owned business
enterprises and shall:
  (a) Make available funds to surety companies providing bonds to  small
businesses  [and  minority- owned], MINORITY-OWNED, HONORABLY DISCHARGED
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,   HONORABLY   DISCHARGED

A. 9228                            31

VETERAN-OWNED or women-owned  business  enterprises  seeking  to  become
eligible   for  bonding  in  preparation  for  bidding  on  construction
projects, including transportation  related  projects.  The  corporation
shall provide and may refer such businesses to the department of econom-
ic  development  for  technical  assistance as such businesses may need,
including but not limited to:
  (iv) assistance from the regional offices of the department of econom-
ic development, pursuant to article [eleven] 11 of the economic develop-
ment law, and the entrepreneurial assistance program, pursuant to  arti-
cle  [nine]  9  of  such law, and any other such program receiving state
funds from this act or the department of  economic  development  or  any
other  state  agency that is intended to provide technical assistance to
small   businesses   [and],   minority-owned,    HONORABLY    DISCHARGED
VETERAN-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, HONORABLY DISCHARGED VETERAN and women-owned  business  enter-
prises  through  flexible financing programs, including, but not limited
to, loan loss reserve  and  revolving  loan  programs,  working  capital
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 amended by  chapter
103 of the laws of 2011, is amended to read as follows:
  (i)  provide  a plan to the corporation or its agent for the marketing
of the capital access program to small businesses,  including  those  in
highly   distressed   areas   and  to  [minority-]  MINORITY,  HONORABLY
DISCHARGED VETERAN and women-owned businesses, 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,  HONORABLY  DISCHARGED VETERAN and women-owned business enter-
prises through flexible financing programs, including, but  not  limited
to,  loan  loss  reserve  and  revolving  loan programs, working capital
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,  HONORABLY DISCHARGED VETERAN and women-owned
firms that received assistance, the number  of  projects  undertaken  in

A. 9228                            32

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, HONORABLY DISCHARGED VETERAN and women-owned  business
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,   HONORABLY   DISCHARGED
VETERAN-OWNED and women-owned business enterprises transportation  capi-
tal assistance and guaranteed loan program.
  To  provide  financial  assistance  to small business [and], minority-
owned,  HONORABLY  DISCHARGED  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,  HONORABLY  DISCHARGED  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,  HONORABLY  DISCHARGED  VETERAN-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,
HONORABLY DISCHARGED VETERAN-OWNED and women-owned business enterprises,
shall be used to:
  (a)  To  be eligible for such loans or loan guarantees (i) a minority-
owned, HONORABLY DISCHARGED VETERAN-OWNED or women-owned business enter-
prise must be certified as a minority-owned, HONORABLY DISCHARGED VETER-
AN-OWNED or women-owned business enterprise pursuant to article 15-A  of
the executive law; and (ii) a small business or a minority-owned, HONOR-
ABLY  DISCHARGED  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, HONORABLY
DISCHARGED 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, HONORABLY
DISCHARGED VETERAN-OWNED and women-owned business enterprises  transpor-
tation capital assistance and guaranteed loan program.

A. 9228                            33

  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 sections 16-i and 16-m of section 1 of chapter 174 of  the
laws  of  1968, constituting the New York state urban development corpo-
ration act, made by sections thirty-five and thirty-seven, respectively,
of this act shall not affect the expirations of such sections and  shall
be deemed to expire therewith.