S T A T E O F N E W Y O R K
________________________________________________________________________
6609--A
I N S E N A T E
February 12, 2014
___________
A BUDGET BILL, submitted by the Governor pursuant to article seven of
the Constitution -- read twice and ordered printed, and when printed
to be committed to the Committee on Finance -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee
AN ACT to amend the executive law, in relation to expanding opportu-
nities for service-disabled veteran-owned business enterprises
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative findings. New York state (the "state") is home
to more than 900,000 veterans, seventy-two percent of whom have served
during periods of conflict. Additionally, the state is home to approxi-
mately 30,000 active duty military personnel as well as 30,000 national
guard and reserve personnel. In honor of their service to and sacrifice
for our nation, New York state declares that it is the public policy of
the state to promote and encourage the continuing economic development
of service-disabled veteran-owned businesses. In the furtherance of
this policy, the state aims to assist service-disabled veterans in play-
ing a greater role in the economy of the state and to provide additional
assistance and support to disabled veterans to better equip them to form
and expand small businesses, thereby enabling them to realize the Ameri-
can dream they fought to protect. To achieve this objective, the legis-
lature finds that it is in the best interest of the economic development
of the state to enact the "Service-Disabled Veteran-Owned Business Act".
S 1-a. Short title. This act shall be known and may be cited as the
"Service-Disabled Veteran-Owned Business Act".
S 2. The executive law is amended by adding a new article 17-B to read
as follows:
ARTICLE 17-B
PARTICIPATION BY SERVICE-DISABLED VETERANS WITH RESPECT TO
STATE CONTRACTS
SECTION 369-H. DEFINITIONS.
369-I. DIVISION OF SERVICE-DISABLED VETERANS' BUSINESS DEVELOP-
MENT.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD12074-02-4
S. 6609--A 2
369-J. OPPORTUNITIES FOR CERTIFIED SERVICE-DISABLED
VETERAN-OWNED BUSINESS ENTERPRISES.
369-K. SEVERABILITY.
S 369-H. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
1. "CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISE"
SHALL MEAN A BUSINESS ENTERPRISE, INCLUDING A SOLE PROPRIETORSHIP, PART-
NERSHIP, LIMITED LIABILITY COMPANY OR CORPORATION THAT IS:
(A) AT LEAST FIFTY-ONE PERCENT OWNED BY ONE OR MORE SERVICE-DISABLED
VETERANS;
(B) AN ENTERPRISE IN WHICH SUCH SERVICE-DISABLED VETERAN OWNERSHIP IS
REAL, SUBSTANTIAL, AND CONTINUING;
(C) AN ENTERPRISE IN WHICH SUCH SERVICE-DISABLED VETERAN OWNERSHIP HAS
AND EXERCISES THE AUTHORITY TO CONTROL INDEPENDENTLY THE DAY-TO-DAY
BUSINESS DECISIONS OF THE ENTERPRISE;
(D) AN ENTERPRISE AUTHORIZED TO DO BUSINESS IN THIS STATE AND IS INDE-
PENDENTLY-OWNED AND OPERATED;
(E) AN ENTERPRISE THAT IS A SMALL BUSINESS WHICH HAS A SIGNIFICANT
BUSINESS PRESENCE IN THE STATE, NOT DOMINANT IN ITS FIELD, AND EMPLOYS
LESS THAN THREE HUNDRED PERSONS; AND
(F) CERTIFIED BY THE OFFICE OF GENERAL SERVICES.
2. "COMMISSIONER" SHALL MEAN THE COMMISSIONER OF THE OFFICE OF GENERAL
SERVICES.
3. "DIRECTOR" SHALL MEAN THE DIRECTOR OF THE DIVISION OF SERVICE-DISA-
BLED VETERANS' BUSINESS DEVELOPMENT.
4. "DIVISION" SHALL MEAN THE DIVISION OF SERVICE-DISABLED VETERANS'
BUSINESS DEVELOPMENT IN THE OFFICE OF GENERAL SERVICES.
5. "SERVICE DISABLED VETERAN" SHALL MEAN (A) IN THE CASE OF THE UNITED
STATES ARMY, NAVY, AIR FORCE, MARINES, COAST GUARD, ARMY NATIONAL GUARD
OR AIR NATIONAL GUARD AND/OR RESERVES THEREOF, A VETERAN WHO RECEIVED A
COMPENSATION RATING OF TEN PERCENT OR GREATER FROM THE UNITED STATES
DEPARTMENT OF VETERANS AFFAIRS OR FROM THE UNITED STATES DEPARTMENT OF
DEFENSE BECAUSE OF A SERVICE-CONNECTED DISABILITY INCURRED IN THE LINE
OF DUTY, AND (B) IN THE CASE OF THE NEW YORK GUARD OR THE NEW YORK NAVAL
MILITIA AND/OR RESERVES THEREOF, A VETERAN WHO CERTIFIES, PURSUANT TO
THE RULES AND REGULATIONS PROMULGATED BY THE DIRECTOR, TO HAVING
INCURRED AN INJURY EQUIVALENT TO A COMPENSATION RATING OF TEN PERCENT OR
GREATER FROM THE UNITED STATES DEPARTMENT OF VETERANS AFFAIRS OR FROM
THE UNITED STATES DEPARTMENT OF DEFENSE BECAUSE OF A SERVICE-CONNECTED
DISABILITY INCURRED IN THE LINE OF DUTY.
6. "STATE AGENCY" SHALL MEAN (A) (I) ANY STATE DEPARTMENT, OR (II) ANY
DIVISION, BOARD, COMMISSION OR BUREAU OF ANY STATE DEPARTMENT, OR (III)
THE STATE UNIVERSITY OF NEW YORK AND THE CITY UNIVERSITY OF NEW YORK,
INCLUDING ALL THEIR CONSTITUENT UNITS EXCEPT COMMUNITY COLLEGES AND THE
INDEPENDENT INSTITUTIONS OPERATING STATUTORY OR CONTRACT COLLEGES ON
BEHALF OF THE STATE, OR (IV) A BOARD, A MAJORITY OF WHOSE MEMBERS ARE
APPOINTED BY THE GOVERNOR OR WHO SERVE BY VIRTUE OF BEING STATE OFFICERS
OR EMPLOYEES AS DEFINED IN SUBPARAGRAPH (I), (II) OR (III) OF PARAGRAPH
(I) OF SUBDIVISION ONE OF SECTION SEVENTY-THREE OF THE PUBLIC OFFICERS
LAW:
(B) A "STATE AUTHORITY," AS DEFINED IN SUBDIVISION ONE OF SECTION TWO
OF THE PUBLIC AUTHORITIES LAW, AND THE FOLLOWING:
ALBANY COUNTY AIRPORT AUTHORITY;
ALBANY PORT DISTRICT COMMISSION;
ALFRED, ALMOND, HORNELLSVILLE SEWER AUTHORITY;
BATTERY PARK CITY AUTHORITY;
S. 6609--A 3
CAYUGA COUNTY WATER AND SEWER AUTHORITY;
(NELSON A. ROCKEFELLER) EMPIRE STATE PLAZA PERFORMING ARTS
CENTER CORPORATION;
INDUSTRIAL EXHIBIT AUTHORITY;
LIVINGSTON COUNTY WATER AND SEWER AUTHORITY;
LONG ISLAND POWER AUTHORITY;
LONG ISLAND RAIL ROAD;
LONG ISLAND MARKET AUTHORITY;
MANHATTAN AND BRONX SURFACE TRANSIT OPERATING AUTHORITY;
METRO-NORTH COMMUTER RAILROAD;
METROPOLITAN SUBURBAN BUS AUTHORITY;
METROPOLITAN TRANSPORTATION AUTHORITY;
NATURAL HERITAGE TRUST;
NEW YORK CITY TRANSIT AUTHORITY;
NEW YORK CONVENTION CENTER OPERATING CORPORATION;
NEW YORK STATE BRIDGE AUTHORITY;
NEW YORK STATE OLYMPIC REGIONAL DEVELOPMENT AUTHORITY;
NEW YORK STATE THRUWAY AUTHORITY;
NIAGARA FALLS PUBLIC WATER AUTHORITY;
NIAGARA FALLS WATER BOARD;
PORT OF OSWEGO AUTHORITY;
POWER AUTHORITY OF THE STATE OF NEW YORK;
ROOSEVELT ISLAND OPERATING CORPORATION;
SCHENECTADY METROPLEX DEVELOPMENT AUTHORITY;
STATE INSURANCE FUND;
STATEN ISLAND RAPID TRANSIT OPERATING AUTHORITY;
STATE UNIVERSITY CONSTRUCTION FUND;
SYRACUSE REGIONAL AIRPORT AUTHORITY;
TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY.
UPPER MOHAWK VALLEY REGIONAL WATER BOARD.
UPPER MOHAWK VALLEY REGIONAL WATER FINANCE AUTHORITY.
UPPER MOHAWK VALLEY MEMORIAL AUDITORIUM AUTHORITY.
URBAN DEVELOPMENT CORPORATION AND ITS SUBSIDIARY CORPORATIONS.
(C) THE FOLLOWING ONLY TO THE EXTENT OF STATE CONTRACTS ENTERED INTO
FOR ITS OWN ACCOUNT OR FOR THE BENEFIT OF A STATE AGENCY AS DEFINED IN
PARAGRAPH (A) OR (B) OF THIS SUBDIVISION:
DORMITORY AUTHORITY OF THE STATE OF NEW YORK;
FACILITIES DEVELOPMENT CORPORATION;
NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY;
NEW YORK STATE SCIENCE AND TECHNOLOGY FOUNDATION.
7. "STATE CONTRACT" SHALL MEAN ANY WRITTEN AGREEMENT FOR THE ACQUISI-
TION OF GOODS OR SERVICES OF ANY KIND BY A STATE AGENCY IN THE ACTUAL OR
ESTIMATED AMOUNT OF FIVE THOUSAND DOLLARS OR MORE.
8. "VETERAN" SHALL MEAN A PERSON WHO SERVED IN AND WHO HAS RECEIVED AN
HONORABLE OR GENERAL DISCHARGE FROM, THE UNITED STATES ARMY, NAVY, AIR
FORCE, MARINE CORPS, COAST GUARD, AND/OR RESERVES THEREOF, AND/OR IN THE
ARMY NATIONAL GUARD, AIR NATIONAL GUARD, NEW YORK GUARD AND/OR THE NEW
YORK NAVAL MILITIA.
S 369-I. DIVISION OF SERVICE-DISABLED VETERANS' BUSINESS DEVELOPMENT.
1. THE HEAD OF THE DIVISION OF SERVICE-DISABLED VETERANS' BUSINESS
DEVELOPMENT SHALL BE THE DIRECTOR WHO SHALL BE APPOINTED BY THE GOVER-
NOR, UPON ADVICE AND CONSENT OF THE SENATE, AND WHO SHALL HOLD OFFICE AT
THE PLEASURE OF THE COMMISSIONER.
2. THE DIRECTOR MAY APPOINT SUCH DEPUTIES, ASSISTANTS, AND OTHER
EMPLOYEES AS MAY BE NEEDED FOR THE PERFORMANCE OF THE DUTIES PRESCRIBED
HEREIN SUBJECT TO THE PROVISIONS OF THE CIVIL SERVICE LAW AND THE RULES
S. 6609--A 4
AND REGULATIONS OF THE CIVIL SERVICE COMMISSION. THE DIRECTOR MAY
REQUEST AND SHALL RECEIVE FROM ANY DEPARTMENT, DIVISION, BOARD, BUREAU,
EXECUTIVE COMMISSION OR AGENCY OF THE STATE SUCH ASSISTANCE AS MAY BE
NECESSARY TO CARRY OUT THE PROVISIONS OF THIS ARTICLE.
3. THE DIRECTOR SHALL HAVE THE FOLLOWING POWERS AND DUTIES:
(A) DEVELOP, COLLECT, SUMMARIZE AND DISSEMINATE INFORMATION THAT WILL
BE HELPFUL TO PERSONS AND ORGANIZATIONS THROUGHOUT THE STATE IN UNDER-
TAKING OR PROMOTING THE ESTABLISHMENT AND SUCCESSFUL OPERATION OF A
SERVICE-DISABLED VETERAN-OWNED BUSINESS.
(B) DEVELOP AND MAKE AVAILABLE TO STATE AGENCIES A DIRECTORY OF CERTI-
FIED SERVICE-DISABLED VETERAN-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 ENTER-
PRISES ARE AVAILABLE TO PERFORM SERVICES.
(C) ASSIST STATE AGENCIES IN THE DEVELOPMENT OF PROGRAMS TO FOSTER AND
PROMOTE THE USE OF SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES
ON STATE CONTRACTS.
(D) COORDINATE THE PLANS, PROGRAMS AND OPERATIONS OF THE STATE GOVERN-
MENT WHICH AFFECT OR MAY CONTRIBUTE TO THE ESTABLISHMENT, PRESERVATION
AND DEVELOPMENT OF SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES.
(E) IN CONJUNCTION WITH THE COMMISSIONER, DEVELOP A COMPREHENSIVE
STATEWIDE PLAN AND OPERATIONAL GUIDELINES TO PROMOTE SERVICE-DISABLED
VETERAN-OWNED BUSINESS ENTERPRISES AND TO ASSIST THEM IN OBTAINING
OPPORTUNITIES TO PARTICIPATE IN THE PROCUREMENT OF GOODS AND SERVICES BY
THE STATE, INCLUDING IDENTIFICATION OF BARRIERS TO SERVICE-DISABLED
VETERANS' BUSINESS DEVELOPMENT AND INVESTIGATION AND EVALUATION OF THEIR
IMPACT ON ACHIEVING THE OBJECTIVES OF THIS ARTICLE.
4. THE COMMISSIONER SHALL:
(A) COORDINATE TRAINING OF ALL PROCUREMENT PERSONNEL OF STATE AGEN-
CIES, EMPHASIZING INCREASED SENSITIVITY AND RESPONSIVENESS TO THE UNIQUE
NEEDS AND REQUIREMENTS OF SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTER-
PRISES.
(B) CONDUCT A COORDINATED REVIEW OF ALL EXISTING AND PROPOSED STATE
TRAINING AND TECHNICAL ASSISTANCE ACTIVITIES IN DIRECT SUPPORT OF THE
SERVICE-DISABLED VETERANS' BUSINESS DEVELOPMENT PROGRAM TO ASSURE
CONSISTENCY WITH THE OBJECTIVES OF THIS ARTICLE.
(C) EVALUATE AND ASSESS AVAILABILITY OF FIRMS FOR THE PURPOSE OF
INCREASING PARTICIPATION OF SUCH FIRMS IN STATE CONTRACTING IN CONSULTA-
TION WITH RELEVANT STATE ENTITIES INCLUDING, BUT NOT LIMITED TO, THE NEW
YORK STATE DIVISION OF VETERANS' AFFAIRS.
(D) PROVIDE ADVICE AND TECHNICAL ASSISTANCE TO PROMOTE SERVICE-DISA-
BLED VETERAN-OWNED BUSINESS ENTERPRISES' UNDERSTANDING OF STATE PROCURE-
MENT LAWS, PRACTICES AND PROCEDURES TO FACILITATE AND INCREASE THE
PARTICIPATION OF SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES IN
STATE PROCUREMENT.
(E) ESTABLISH REGULAR PERFORMANCE REPORTING SYSTEMS REGARDING IMPLE-
MENTATION OF THE PROGRAMS DESIGNED TO INCREASE SERVICE-DISABLED VETER-
AN-OWNED BUSINESS PARTICIPATION IN PROCUREMENT CONTRACTS BY STATE AGEN-
CIES.
S 369-J. OPPORTUNITIES FOR CERTIFIED SERVICE-DISABLED VETERAN-OWNED
BUSINESS ENTERPRISES. 1. THE DIRECTOR, OR IN THE ABSENCE OF A DIRECTOR,
THE COMMISSIONER, WITHIN NINETY DAYS OF THE EFFECTIVE DATE OF THIS ARTI-
CLE, SHALL PROMULGATE RULES AND REGULATIONS FOR THE FOLLOWING PURPOSES:
(A) PROVIDE MEASURES AND PROCEDURES TO ENSURE THAT CERTIFIED SERVICE-
DISABLED VETERAN-OWNED BUSINESS ENTERPRISES ARE AFFORDED THE OPPORTUNITY
S. 6609--A 5
FOR MEANINGFUL PARTICIPATION IN THE PERFORMANCE OF STATE CONTRACTS AND
TO ASSIST IN STATE AGENCIES' IDENTIFICATION OF THOSE STATE CONTRACTS FOR
WHICH CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES MAY
BEST PERFORM;
(B) PROVIDE FOR MEASURES AND PROCEDURES THAT ASSIST STATE AGENCIES IN
THE IDENTIFICATION OF STATE CONTRACTS WHERE SERVICE-DISABLED VETERAN
CONTRACT GOALS ARE PRACTICAL, FEASIBLE AND APPROPRIATE FOR THE PURPOSE
OF INCREASING THE UTILIZATION OF SERVICE-DISABLED VETERAN-OWNED BUSINESS
ENTERPRISE PARTICIPATION ON STATE CONTRACTS;
(C) ACHIEVE A STATEWIDE GOAL FOR PARTICIPATION ON STATE CONTRACTS BY
SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES OF FIVE PERCENT;
(D) PROVIDE FOR THE CERTIFICATION AND DECERTIFICATION OF SERVICE-DISA-
BLED VETERAN-OWNED BUSINESS ENTERPRISES FOR ALL AGENCIES THROUGH A
SINGLE PROCESS;
(E) PROVIDE FOR PROCEDURES RELATING TO SUBMISSION AND RECEIPT OF
APPLICATIONS BY SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES FOR
CERTIFICATION;
(F) PROVIDE FOR THE MONITORING AND COMPLIANCE OF STATE CONTRACTS BY
STATE AGENCIES WITH RESPECT TO THE PROVISIONS OF THIS ARTICLE;
(G) PROVIDE FOR THE REQUIREMENT THAT STATE AGENCIES SUBMIT REGULAR
REPORTS, AS DETERMINED BY THE DIRECTOR, WITH RESPECT TO THEIR
SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISE PROGRAM ACTIVITY,
INCLUDING BUT NOT LIMITED TO, UTILIZATION REPORTING AND STATE CONTRACT
MONITORING AND COMPLIANCE;
(H) NOTWITHSTANDING ANY PROVISION OF THE STATE FINANCE LAW OR THE
PUBLIC AUTHORITIES LAW TO THE CONTRARY, PROVIDE FOR THE RESERVATION OR
SET-ASIDE OF CERTAIN PROCUREMENTS BY STATE AGENCIES IN ORDER TO ACHIEVE
THE OBJECTIVES OF THIS ARTICLE; AND
(I) PROVIDE FOR ANY OTHER PURPOSES TO EFFECTUATE THIS ARTICLE.
2. STATE AGENCIES SHALL ADMINISTER THE RULES AND REGULATIONS PROMUL-
GATED BY THE DIRECTOR FOR THE IMPLEMENTATION OF THIS ARTICLE.
S 369-K. SEVERABILITY. IF ANY CLAUSE, SENTENCE, PARAGRAPH, SECTION OR
PART OF THIS ARTICLE SHALL BE ADJUDGED BY ANY COURT OF COMPETENT JURIS-
DICTION TO BE INVALID, THE JUDGMENT SHALL NOT AFFECT, IMPAIR OR INVALI-
DATE THE REMAINDER THEREOF, BUT SHALL BE CONFINED IN ITS OPERATION TO
THE CLAUSE, SENTENCE, PARAGRAPH, SECTION OR PART OF THIS ARTICLE DIRECT-
LY INVOLVED IN THE CONTROVERSY IN WHICH THE JUDGMENT SHALL HAVE BEEN
RENDERED.
S 3. The opening paragraph of subdivision 7 of section 310 of the
executive law, as amended by chapter 175 of the laws of 2010, is amended
to read as follows:
"Minority-owned business enterprise" shall mean a business enterprise,
including a sole proprietorship, partnership, LIMITED LIABILITY COMPANY
or corporation that is:
S 4. This act shall take effect immediately; provided that the amend-
ments to section 310 of the executive law, made by section three of this
act, shall not affect the expiration of such section and shall expire
therewith.