LBD06148-01-9
A. 4490 2
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.
§ 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-
A. 4490 3
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;
§ 5. Section 313 of the executive law, as amended by chapter 175 of
the laws of 2010, is amended to read as follows:
§ 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.
A. 4490 4
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
A. 4490 5
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-
A. 4490 6
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
A. 4490 7
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,
A. 4490 8
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.
§ 6. Section 317 of the executive law, as added by chapter 261 of the
laws of 1988, is amended to read as follows:
§ 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.
§ 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:
§ 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
A. 4490 9
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.
§ 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. 4490 10
department of economic development, the senate finance committee and the
assembly ways and means committee.
§ 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;
§ 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. 4490 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.
§ 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.
§ 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. 4490 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.
§ 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:
§ 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;
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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.
§ 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.
§ 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;
§ 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:
§ 52-0113. Minority, HONORABLY DISCHARGED VETERAN and women-owned busi-
ness enterprise program.
A. 4490 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. 4490 15
§ 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, the opening paragraph of
paragraph (c) as amended by chapter 564 of the laws of 1988, and para-
graph (n) as amended by chapter 531 of the laws of 1993 are amended and
a new paragraph (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:
(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.
(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;
A. 4490 16
(C) A requirement that each contract solicitation document accompany-
ing each solicitation set forth the expected degree of minority, HONOR-
ABLY DISCHARGED VETERAN and women-owned business enterprise partic-
ipation based, in part, on:
I. the potential subcontract opportunities available in the prime
procurement contract; and
II. the availability of certified minority, HONORABLY DISCHARGED
VETERAN and women-owned business enterprises to respond competitively to
the potential subcontract opportunities;
(D) A requirement that each corporation provide a current list of
certified minority business enterprises to each prospective contractor;
(E) Provisions relating to joint ventures, under which a bidder may
count toward meeting its minority business enterprise participation
goal, the minority, HONORABLY DISCHARGED VETERAN and women-owned busi-
ness enterprise portion of the joint venture;
(F) Provisions under which the corporation may waive obligations of
the contractor relating to minority, HONORABLY DISCHARGED VETERAN and
women-owned business enterprise participation after a showing of good
faith efforts to comply with the requirements of this act pursuant to
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
A. 4490 17
York state, or (d) participated in bidder outreach conferences. If the
contractor determines that New York state business enterprises are not
available to participate on the contract as subcontractors or suppliers,
the contractor shall provide a statement indicating the method by which
such determination was made. If the contractor does not intend to use
subcontractors on the contract, the contractor shall provide a statement
verifying such intent; and
(iii) except for procurement contracts for which the corporation would
be expending funds received from another state, the corporation shall
include in all bid documents provided to potential bidders a statement
that information concerning the availability of New York state subcon-
tractors and suppliers is available from the New York state department
of economic development, which shall include the directory of certified
minority, HONORABLY DISCHARGED VETERAN and women-owned businesses, and
it is the policy of New York state to encourage the use of New York
state subcontractors and suppliers, and to promote the participation of
minority, HONORABLY DISCHARGED VETERAN and women-owned businesses where
possible, in the procurement of goods and services; and
§ 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.
§ 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;
§ 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. 4490 18
§ 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;
§ 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 such subdivision as relettered by section 7 of part S-1
of chapter 57 of the laws of 2009, are amended to read as follows:
(iii) undertake efforts to ensure meaningful participation by minori-
ty-owned, 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.
§ 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.
§ 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 U of chap-
ter 58 of the laws of 2018, is amended to read as follows:
A. 4490 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.
§ 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] SIXTEEN-C of section [1] ONE of chapter
[174] ONE HUNDRED SEVENTY-FOUR of the laws of [1968] NINETEEN HUNDRED
SIXTY-EIGHT, constituting the urban development corporation act, to the
extent that such program allows participation by credit unions.
§ 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:
§ 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
A. 4490 20
VETERAN and women-owned business enterprises, which may effectuate the
requirements of this section. If the corporation determines that by
virtue of the imposition of the requirements of any such law, in respect
to contracts, the provisions thereof duplicate or conflict with this
section, the corporation may waive the applicability of this section to
the extent of such duplication or conflict.
(c) Nothing in this section shall be deemed to require that overall
state and federal requirements for participation of minority, HONORABLY
DISCHARGED VETERAN and women-owned business enterprises in programs
authorized under this act be applied without regard to local circum-
stances to all projects or in all communities.
2. In order to implement the requirements and objectives of this
section, the corporation shall establish procedures to monitor the
contractors' compliance with provisions hereof, provide assistance in
obtaining competing qualified minority, HONORABLY DISCHARGED VETERAN and
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.
§ 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:
§ 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. 4490 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.
§ 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
§ 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, paragraph (i)
of subdivision 2 and paragraph (d) of subdivision 3 as added by chapter
474 of the laws of 2017, and subparagraphs (i) and (ii) of paragraph (i)
of subdivision 2 and paragraph (e) of subdivision 3 as amended by chap-
ter 378 of the laws of 2018, is amended to read as follows:
§ 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-
A. 4490 22
vision [five] 5 of section [two hundred ten] 210 of the economic devel-
opment law.
(iii) "HONORABLY DISCHARGED VETERAN BUSINESS ENTERPRISE" SHALL MEAN
THE SAME AS DEFINED IN SUBDIVISION 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-
A. 4490 23
ness enterprises as well as to promote the long-term financial perform-
ance and success of early stage enterprises that are [minority-] MINORI-
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
A. 4490 24
financial assistance to [minority-] MINORITY, HONORABLY DISCHARGED
VETERAN and women-owned businesses upon certification to and acceptance
by the corporation that such assistance complies with rules and regu-
lations promulgated by the corporation: (i) working capital loans,
provided that the amount of the loan does not exceed thirty-five thou-
sand dollars and the term of the loan does not exceed five years; and
(ii) loans for the acquisition and/or improvement of real property and
for the acquisition of machinery and equipment provided that the amount
of the loan does not exceed fifty thousand dollars and the term of the
loan does not exceed the useful life of the equipment or property.
(d) (i) Notwithstanding any provision of law to the contrary, the
corporation may establish an administrative expenses trust fund account
for the benefit of each entity selected to administer a minority, HONOR-
ABLY DISCHARGED VETERAN and women revolving loan trust fund account. The
initial deposit of funds to an administrative expenses trust fund
account shall be an amount determined by the corporation but shall not
exceed twenty-five thousand dollars.
(ii) An entity selected to administer a minority, HONORABLY DISCHARGED
VETERAN and women revolving loan trust fund account may use the funds in
the administrative expenses trust fund account for costs incurred by it
in the start up and administration of the financial assistance program
authorized pursuant to this subdivision.
(iii) The corporation shall deposit into each administrative expenses
trust fund account:
(A) all income earned from the moneys on deposit in the corresponding
minority, HONORABLY DISCHARGED VETERAN and women revolving loan trust
fund account during the first year of the entity's administration of
said account; and
(B) beginning with its second year in administering a minority, HONOR-
ABLY DISCHARGED VETERAN and women revolving loan trust fund account,
said amounts may be used for costs incurred by the entity in administer-
ing the minority, HONORABLY DISCHARGED VETERAN and women revolving loan
trust fund account; and
(C) repayments of interest on loans made from the corresponding minor-
ity, HONORABLY DISCHARGED VETERAN and women revolving loan trust fund
account.
(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-
A. 4490 25
ty's administration of said account shall be deposited by the corpo-
ration into the corresponding minority, HONORABLY DISCHARGED VETERAN and
women revolving loan trust fund account and used to provide the finan-
cial assistance to [minority-] MINORITY, HONORABLY DISCHARGED VETERAN
and women-owned businesses as authorized pursuant to this section.
(f) The provisions of subdivisions [eight] 8, [nine] 9, and [fourteen]
14 through [nineteen] 19 of section [sixteen-a] 16-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] 16-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.
(i) Notwithstanding any other provisions of this subdivision, where
applicable, the corporation is authorized to enter into agreements as
may be necessary for the administration and reporting of funds repaid,
received, expended or collected in a manner consistent with the
provisions in section [sixteen-t] 16-T of this act. The use of such
funds by the corporation shall be consistent with the terms, conditions
and restrictions set forth under this subdivision, to provide financial
assistance to eligible businesses as defined in subdivisions [three] 3
and [five] 5 of section [two hundred ten] 210 of the economic develop-
ment law. Outstanding expenses, loans and other obligations executed
prior to the effective date of this paragraph shall be subject to the
terms and conditions of the original contract or contracts.
(i) The lending organization shall submit to the corporation annual
reports stating: the number of program loans made; the amount of program
funding used for loans; the use of loan proceeds by the borrower; the
number of jobs created or retained; the status of each outstanding
program loan, including fund balance; and such other information as the
corporation may require.
(ii) Beginning April 1, 2019, the corporation shall publish on its
website the information contained in the annual reports required under
subparagraph (i) of this paragraph in aggregate form omitting borrower
identifiable information.
A. 4490 26
(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] 2 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 enti-
ties selected to administer micro-loan funds pursuant to this subdivi-
sion.
(d) Notwithstanding any other provisions of this subdivision, where
applicable, the corporation is authorized to enter into agreements as
may be necessary for the administration and reporting of funds repaid,
received, expended or collected in a manner consistent with the
provisions in section [sixteen-t] 16-T of this act. The use of such
funds by the corporation shall be consistent with the terms, conditions
and restrictions set forth under this subdivision, to provide financial
assistance to eligible businesses as defined in subdivisions [three] 3
and [five] 5 of section [two hundred ten] 210 of the economic develop-
ment law. Outstanding expenses, loans and other obligations executed
prior to the effective date of this paragraph shall be subject to the
terms and conditions of the original contract or contracts.
(e)(i) The lending organization shall submit to the corporation annual
reports stating: the number of program loans made; the amount of program
funding used for loans; the use of loan proceeds by the borrower; the
number of jobs created or retained; the status of each outstanding
program loan, including fund balance; and such other information as the
corporation may require.
(ii) Beginning April 1, 2019, the corporation shall publish on its
website the information contained in the annual reports required under
subparagraph (i) of this paragraph in aggregate form omitting borrower
identifiable information.
(4) Minority, HONORABLY DISCHARGED VETERAN and women contracting
program. For the purpose of establishing a comprehensive program to
assist minority, HONORABLY DISCHARGED VETERAN and women contractors, the
corporation may provide loans, loan guarantees, technical assistance and
bonding assistance, the corporation may enter into cooperative agree-
ments with cities, counties, municipalities, authorities, agencies,
federally and state chartered credit unions in New York state and feder-
ally insured banking organizations and financial institutions for such
purposes.
(a) To be eligible for a contractor loan, the borrower must have
either (i) a construction contract with, or a contract to provide goods
A. 4490 27
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] 10 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] 6 of this
section may also be provided to minority, HONORABLY DISCHARGED VETERAN
and women contractors and subcontractors who have secured contracts by
participating in the program.
(ii) The corporation shall either establish criteria for the bonding
guarantee program and for any required escrow funds which shall include
detailed provisions for eligibility; or if the corporation is providing
assistance to a program other than one established by the corporation,
review and approve the criteria established for such other program.
(5) Direct financial assistance for [minority-] MINORITY, 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] 6 of this section to eligible enterprises for the acquisi-
tion or improvement of real property, machinery, equipment or working
capital, provided that to be eligible for a business development loan,
the borrowers must have been in business for at least three years and
provided that the loans must be in an amount equal to or in excess of
fifty thousand dollars;
(b) Franchise loans to eligible enterprises seeking to acquire or
expand franchises of nationally recognized corporations, provided that
disbursements by the corporation of such loans shall be conditioned on
obtaining such franchises;
(c) Equity assistance for eligible minority, HONORABLY DISCHARGED
VETERAN and women-owned enterprises to match equity contributions to
such enterprises by financial institutions and community development
equity capital funds, provided, however, that such assistance shall be
targeted to start-up and early stage enterprises in the manufacturing,
retail and service sectors located in economically distressed areas.
(6) Deposits and loan guarantees. For the purpose of encouraging
private financial institutions to make loans to eligible enterprises
pursuant to this section for any of the eligible projects pursuant to
subdivisions [four] 4 and [five] 5 of this section, the corporation is
authorized 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
A. 4490 28
(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;
(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:
A. 4490 29
(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.
(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-
A. 4490 30
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
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-
A. 4490 31
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.
§ 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;
§ 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;
§ 32. Subparagraph (vi) of paragraph (c) of subdivision 10 of section
16-e of section 1 of chapter 174 of the laws of 1968, constituting the
New York state urban development corporation act, as added by chapter
169 of the laws of 1994, is amended to read as follows:
(vi) management and procurement assistance to small business, includ-
ing [minority-] MINORITY, HONORABLY DISCHARGED VETERAN and women-owned
businesses;
§ 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;
A. 4490 32
§ 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 economic development for
technical assistance as such businesses may need, including but not
limited to:
(iv) assistance from the regional offices of the department of econom-
ic development, pursuant to article [eleven] 11 of the economic develop-
ment law, and the entrepreneurial assistance program, pursuant to arti-
cle [nine] 9 of such law, and any other such program receiving state
funds from this act or the department of economic development or any
other state agency that is intended to provide technical assistance to
small businesses [and], minority-owned, HONORABLY DISCHARGED VETERAN-
OWNED and women-owned small business enterprises.
§ 35. 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;
§ 36. 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-]
A. 4490 33
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;
§ 37. 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.
§ 38. 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;
§ 39. 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 capital
assistance and guaranteed loan program.
To provide financial assistance to small business [and], minority-
owned, HONORABLY DISCHARGED VETERAN-OWNED and women-owned business
enterprises engaged in government sponsored, transportation related
construction projects, the corporation shall establish a small business
[and], minority-owned, HONORABLY DISCHARGED VETERAN-OWNED and women-
owned business enterprise transportation capital assistance revolving
loan fund which shall provide loans or loan guarantees to small business
[and], minority-owned, HONORABLY DISCHARGED VETERAN-OWNED and women-
owned business enterprises. For purposes of this section:
Such loans, or loan guarantees for loans made by federally and state
chartered credit institutions, financial institutions, and federally
insured banking organizations to small business [and], minority-owned,
HONORABLY DISCHARGED VETERAN-OWNED and women-owned business enterprises,
shall be used to:
(a) To be eligible for such loans or loan guarantees (i) a minority-
owned, HONORABLY DISCHARGED VETERAN-OWNED or women-owned business enter-
prise must be certified as a minority-owned, HONORABLY DISCHARGED VETER-
AN-OWNED or women-owned business enterprise pursuant to article 15-A of
the executive law; and (ii) a small business or a minority-owned, HONOR-
ABLY DISCHARGED VETERAN-OWNED or women-owned business enterprise shall
A. 4490 34
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.
§ 40. 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; 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 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, made by section thirty-six of this
act shall not affect the expiration of such section and shall be deemed
to expire therewith.