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

                                  4418

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 30, 2015
                               ___________

Introduced  by  M.  of  A.  KOLB, HAWLEY, GIGLIO, CORWIN, RAIA, TEDISCO,
  MALLIOTAKIS, LAVINE, CURRAN, STEC -- Multi-Sponsored by --  M.  of  A.
  McDONOUGH,  SALADINO  --  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 24 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02723-01-5
              

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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
name,  address  and  telephone number, of each certified enterprise with
which the contractor intends to subcontract.
  24. "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-

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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
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.

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  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-
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

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leases  of  real property by a state agency to a lessee where: the terms
of such leases provide for the  construction,  demolition,  replacement,
major  repair or renovation of real property and improvements thereon by
such lessee; and the cost of such construction, demolition, replacement,
major  repair  or  renovation  of real property and improvements thereon
shall exceed the sum of one hundred thousand  dollars.  Reports  to  the
director pursuant to section three hundred fifteen of this article shall
include activities with respect to all such state contracts. Contracting
agencies  shall  include or require to be included with respect to state
contracts for the acquisition,  construction,  demolition,  replacement,
major  repair  or  renovation of real property and improvements thereon,
such provisions as may be necessary to effectuate the provisions of this
section in every bid specification and state  contract,  including,  but
not  limited  to:  (a)  provisions  requiring contractors to make a good
faith effort to solicit active participation by  enterprises  identified
in  the  directory  of  certified businesses provided to the contracting
agency by the office; (b) requiring the parties to agree as a  condition
of entering into such contract, to be bound by the provisions of section
three  hundred sixteen of this article; and (c) requiring the contractor
to include the provisions set forth in paragraphs (a) and  (b)  of  this
subdivision in every subcontract in a manner that the provisions will be
binding  upon  each  subcontractor  as  to  work in connection with such
contract. Provided, however, that no such provisions  shall  be  binding
upon  contractors  or  subcontractors  in the performance of work or the
provision of services that are unrelated, separate or distinct from  the
state  contract  as  expressed by its terms, and nothing in this section
shall authorize the director or any contracting  agency  to  impose  any
requirement  on  a  contractor or subcontractor except with respect to a
state contract.
  4. In the implementation of this section, the contracting agency shall
(a) consult the findings contained within the disparity study evidencing
relevant industry specific availability of certified businesses;
  (b) implement a program that will enable the agency to  evaluate  each
contract to determine the appropriateness of the goal pursuant to subdi-
vision one of this section;
  (c)  consider  where  practicable,  the  severability  of construction
projects and other bundled contracts; and
  (d) consider compliance with  the  requirements  of  any  federal  law
concerning  opportunities for minority, 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-

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cy to notify the contractor in writing within a period of time specified
by the director as to any deficiencies  contained  in  the  contractor's
utilization  plan;  shall require remedy thereof within a period of time
specified  by the director; shall require the contractor to submit peri-
odic compliance reports relating to the operation and implementation  of
any  utilization  plan;  shall not allow any automatic waivers but shall
allow a contractor to apply for a partial or total waiver of the minori-
ty, 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

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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
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,

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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
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

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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.
  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

A. 4418                            10

department of economic development, the senate finance committee and the
assembly ways and means committee.
  S  9. Subdivision 5, paragraph (e) of subdivision 11, paragraph (e) of
subdivision 12 and paragraph (a) of subdivision 16 of section 213 of the
state finance law, subdivision 5, paragraph (e) of  subdivision  11  and
paragraph  (e)  of subdivision 12 as added by chapter 705 of the laws of
1993 and paragraph (a) of subdivision 16 as amended by section 2 of part
HH of chapter 59 of the laws of 2013, 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, or a quali-
fying  technology  or innovation business as defined in paragraph (g) of
subdivision eleven of this section, respectively 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  depos-
it,  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 section 1 of part U of chapter 58 of the  laws  of  2012,  is
amended to read as follows:
  1.  Linked  loans  made  to certified businesses in empire zones or to
eligible businesses in highly distressed areas or to eligible businesses
that are defined in paragraph (b-1) of subdivision eleven of section two
hundred thirteen of this article that are located in a renewal community
or defined in paragraph (b-2) of such subdivision that are located in an
empowerment zone or defined in paragraph (b-3) of such subdivision  that
are  located  in  an  enterprise  community,  respectively  for eligible
projects defined in paragraph (c) of subdivision twelve of  section  two
hundred  thirteen  of this article or to [minority-] MINORITY, 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

A. 4418                            11

for  a project defined in paragraph (d) of subdivision twelve of section
two hundred thirteen of this article or to an eligible business pursuant
to paragraph (a) of subdivision eleven of section two  hundred  thirteen
of  this  article  that  produces products defined in subdivision two of
section three hundred one of the agriculture  and  markets  law  for  an
eligible  project  as  defined in paragraph (b) of subdivision twelve of
section two hundred thirteen of this article shall bear  interest  at  a
fixed  rate  equal  to  three percentage points below the fixed interest
rate the lender would have charged for the loan  in  the  absence  of  a
linked  deposit  based  on  its usual credit considerations.   All other
linked loans shall bear interest at a fixed rate equal to two percentage
points below the fixed interest rate the lender would have  charged  for
the  loan  in  the absence of a linked deposit based on its usual credit
considerations. Lenders shall certify to the  commissioner  of  economic
development that the rate to be charged on a linked loan is two percent-
age  points  or  three  percentage points, as the case may be, below the
interest rate the lender would have charged for the loan in the  absence
of a linked deposit.
  S  11. Paragraph (c) of subdivision 12 of section 3.07 of the arts and
cultural affairs law, as amended by chapter 255 of the laws of 1988,  is
amended to read as follows:
  (c)  (i)  In  the  performance  of  projects pursuant to this section,
minority, 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-FOUR 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 citi-
zens  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:

A. 4418                            12

  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:
  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;

A. 4418                            13

  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)  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 7 to read as follows:
  7. "HONORABLY DISCHARGED VETERAN OWNED BUSINESS ENTERPRISE" MEANS  THE
SAME  AS DEFINED IN SUBDIVISION TWENTY-FOUR 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.

A. 4418                            14

  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
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-FOUR  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.

A. 4418                            15

  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
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:

A. 4418                            16

  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
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

A. 4418                            17

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
  (E-1) FOR PURPOSES OF  THIS  SECTION,  "HONORABLY  DISCHARGED  VETERAN
OWNED  BUSINESS  ENTERPRISE"  MEANS  THE  SAME AS DEFINED IN SUBDIVISION
TWENTY-FOUR 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-FOUR  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;

A. 4418                            18

  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;
  (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:

A. 4418                            19

  (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.
  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 24 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

A. 4418                            20

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
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  24  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.

A. 4418                            21

  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.
  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, subdivision 1  as  amended  by
section  1  of  part AA of chapter 55 of the laws of 2014, 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 busi-
ness development and lending program for the purpose of providing finan-
cial  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.

A. 4418                            22

  (iii) "HONORABLY DISCHARGED VETERAN BUSINESS  ENTERPRISE"  SHALL  MEAN
THE  SAME  AS  DEFINED IN SUBDIVISION 24 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;
  (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;
  (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; and
  (viii) notwithstanding any provision of law to the contrary, establish
a  [minority-]  MINORITY,  HONORABLY  DISCHARGED VETERAN and women-owned
business investment fund to provide critical financial support to foster
the  development  of  new   and   emerging   ideas   and   products   of
[minority-]MINORITY,  HONORABLY DISCHARGED VETERAN and women-owned busi-
ness enterprises as well as to promote the long-term financial  perform-
ance and success of early stage enterprises that are [minority-] MINORI-

A. 4418                            23

TY,   HONORABLY   DISCHARGED  VETERAN  and  women-owned  start-ups.  The
selection of an eligible applicant and  beneficiary  companies  for  the
[minority-] MINORITY, HONORABLY DISCHARGED VETERAN and women-owned busi-
ness investment fund shall be selected by the process established pursu-
ant to subdivisions [two] 2 through [four] 4 of section [sixteen-u] 16-U
of  this  act.    [Minority-]  MINORITY, HONORABLY DISCHARGED VETERAN or
women-owned business enterprises who  participate  in  such  [minority-]
MINORITY,  HONORABLY DISCHARGED VETERAN and women-owned business invest-
ment fund under this subdivision shall not be precluded from  qualifying
for any other assistance, grant or loan made available from the state.
  (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.
  (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

A. 4418                            24

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.
  (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

A. 4418                            25

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.
  (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

A. 4418                            26

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.
  (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.

A. 4418                            27

  (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.
  (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;

A. 4418                            28

  (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
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.

A. 4418                            29

  (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
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

A. 4418                            30

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-
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:

A. 4418                            31

  (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
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-

A. 4418                            32

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
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.

A. 4418                            33

  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.
  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.