STATE OF NEW YORK
________________________________________________________________________
4126
2021-2022 Regular Sessions
IN ASSEMBLY
February 1, 2021
___________
Introduced by M. of A. SCHMITT -- read once and referred to the Commit-
tee on Veterans' Affairs
AN ACT to amend the executive law, in relation to expanding opportu-
nities for veteran-owned business enterprises; and providing for the
repeal of such provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The executive law is amended by adding a new article 17-C
2 to read as follows:
3 ARTICLE 17-C
4 PARTICIPATION BY VETERANS
5 WITH RESPECT TO STATE CONTRACTS
6 Section 369-m. Definitions.
7 369-n. Division of veterans' business development.
8 369-o. Opportunities for certified veteran-owned business enter-
9 prises.
10 369-p. Severability.
11 § 369-m. Definitions. As used in this article, the following terms
12 shall have the following meanings:
13 1. "Certified veteran-owned business enterprise" shall mean a business
14 enterprise, including a sole proprietorship, partnership, limited
15 liability company or corporation that is:
16 (a) at least fifty-one percent owned by one or more veterans;
17 (b) an enterprise in which such veteran ownership is real, substan-
18 tial, and continuing;
19 (c) an enterprise in which such veteran ownership has and exercises
20 the authority to control independently the day-to-day business decisions
21 of the enterprise;
22 (d) an enterprise authorized to do business in this state and is inde-
23 pendently-owned and operated;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01435-01-1
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1 (e) an enterprise that is a small business which has a significant
2 business presence in the state, not dominant in its field and employs,
3 based on its industry, a certain number of persons as determined by the
4 director, but not to exceed three hundred, taking into consideration
5 factors which include, but are not limited to, federal small business
6 administration standards pursuant to 13 CFR part 121 and any amendments
7 thereto; and
8 (f) certified by the office of general services.
9 2. "Commissioner" shall mean the commissioner of the office of general
10 services.
11 3. "Director" shall mean the director of the division of veterans'
12 business development.
13 4. "Division" shall mean the division of veterans' business develop-
14 ment in the office of general services.
15 5. "State agency" shall mean: (a)(i) any state department; or (ii) any
16 division, board, commission or bureau of any state department; or (iii)
17 the state university of New York and the city university of New York,
18 including all their constituent units except community colleges and the
19 independent institutions operating statutory or contract colleges on
20 behalf of the state; or (iv) a board, a majority of whose members are
21 appointed by the governor or who serve by virtue of being state officers
22 or employees as defined in subparagraph (i), (ii) or (iii) of paragraph
23 (i) of subdivision one of section seventy-three of the public officers
24 law.
25 (b) a "state authority," as defined in subdivision one of section two
26 of the public authorities law, and the following:
27 Albany County Airport Authority;
28 Albany Port District Commission;
29 Alfred, Almond, Hornellsville Sewer Authority;
30 Battery Park City Authority;
31 Cayuga County Water and Sewer Authority;
32 (Nelson A. Rockefeller) Empire State Plaza Performing Arts Center
33 Corporation;
34 Industrial Exhibit Authority;
35 Livingston County Water and Sewer Authority;
36 Long Island Power Authority;
37 Long Island Rail Road;
38 Long Island Market Authority;
39 Manhattan and Bronx Surface Transit Operating Authority;
40 Metro-North Commuter Railroad;
41 Metropolitan Suburban Bus Authority;
42 Metropolitan Transportation Authority;
43 Natural Heritage Trust;
44 New York City Transit Authority;
45 New York Convention Center Operating Corporation;
46 New York State Bridge Authority;
47 New York State Olympic Regional Development Authority;
48 New York State Thruway Authority;
49 Niagara Falls Public Water Authority;
50 Niagara Falls Water Board;
51 Port of Oswego Authority;
52 Power Authority of the State of New York;
53 Roosevelt Island Operating Corporation;
54 Schenectady Metroplex Development Authority;
55 State Insurance Fund;
56 Staten Island Rapid Transit Operating Authority;
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1 State University Construction Fund;
2 Syracuse Regional Airport Authority;
3 Triborough Bridge and Tunnel Authority;
4 Upper Mohawk valley regional water board;
5 Upper Mohawk valley regional water finance authority;
6 Upper Mohawk valley memorial auditorium authority;
7 Urban Development Corporation and its subsidiary corporations.
8 (c) the following only to the extent of state contracts entered into
9 for its own account or for the benefit of a state agency as defined in
10 paragraph (a) or (b) of this subdivision:
11 Dormitory Authority of the State of New York;
12 Facilities Development Corporation;
13 New York State Energy Research and Development Authority;
14 New York State Science and Technology Foundation.
15 (d) "state contract" shall mean: (i) a written agreement or purchase
16 order instrument, providing for a total expenditure in excess of twen-
17 ty-five thousand dollars, whereby a contracting agency is committed to
18 expend or does expend funds in return for labor, services including but
19 not limited to legal, financial and other professional services,
20 supplies, equipment, materials or any combination of the foregoing, to
21 be performed for, or rendered or furnished to the contracting agency;
22 (ii) a written agreement in excess of one hundred thousand dollars
23 whereby a contracting agency is committed to expend or does expend funds
24 for the acquisition, construction, demolition, replacement, major repair
25 or renovation of real property and improvements thereon; and (iii) a
26 written agreement in excess of one hundred thousand dollars whereby the
27 owner of a state assisted housing project is committed to expend or does
28 expend funds for the acquisition, construction, demolition, replacement,
29 major repair or renovation of real property and improvements thereon for
30 such project.
31 6. "Veteran" shall mean a person who served in and who has received an
32 honorable or general discharge from, the United States army, navy, air
33 force, marines, coast guard, and/or reserves thereof, and/or in the army
34 national guard, air national guard, New York guard and/or the New York
35 naval militia.
36 § 369-n. Division of veterans' business development. 1. The head of
37 the division of veterans' business development shall be the director who
38 shall be appointed by the governor and who shall hold office at the
39 pleasure of the commissioner.
40 2. The director may appoint such deputies, assistants, and other
41 employees as may be needed for the performance of the duties prescribed
42 herein subject to the provisions of the civil service law and the rules
43 and regulations of the civil service commission. The director may
44 request and shall receive from any (i) department, division, board,
45 bureau, or executive commission of the state or (ii) state agency, such
46 assistance as may be necessary to carry out the provisions of this arti-
47 cle.
48 3. The director shall have the following powers and duties:
49 (a) Develop, collect, summarize and disseminate information that will
50 be helpful to persons and organizations throughout the state in under-
51 taking or promoting the establishment and successful operation of a
52 veteran-owned business.
53 (b) Develop and make available to state agencies a directory of certi-
54 fied veteran-owned business enterprises which shall, wherever practica-
55 ble, be divided into categories of labor, services, supplies, equipment,
56 materials and recognized construction trades and which shall indicate
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1 areas or locations of the state where such enterprises are available to
2 perform services. Such directory shall be posted on the office of gener-
3 al services website.
4 (c) Assist state agencies in the development of programs to foster and
5 promote the use of veteran-owned business enterprises on state
6 contracts.
7 (d) Coordinate the plans, programs and operations of the state govern-
8 ment which affect or may contribute to the establishment, preservation
9 and development of veteran-owned business enterprises.
10 (e) To appoint independent hearing officers who by contract or terms
11 of employment shall preside over adjudicatory hearings pursuant to this
12 section for the office and who are assigned no other work by the office.
13 (f) In conjunction with the commissioner, develop a comprehensive
14 statewide plan and operational guidelines to promote veteran-owned busi-
15 ness enterprises and to assist them in obtaining opportunities to
16 participate in the procurement of goods and services by the state,
17 including identification of barriers to veterans' business development
18 and investigation and evaluation of their impact on achieving the objec-
19 tives of this article.
20 4. The commissioner shall:
21 (a) Coordinate training of all procurement personnel of state agen-
22 cies, emphasizing increased sensitivity and responsiveness to the unique
23 needs and requirements of veteran-owned business enterprises.
24 (b) Conduct a coordinated review of all existing and proposed state
25 training and technical assistance activities in direct support of the
26 veterans' business development program to assure consistency with the
27 objectives of this article.
28 (c) Evaluate and assess availability of firms for the purpose of
29 increasing participation of such firms in state contracting in consulta-
30 tion with relevant state entities including, but not limited to, the New
31 York state division of veterans' affairs.
32 (d) Provide advice and technical assistance to promote veteran-owned
33 business enterprises' understanding of state procurement laws, practices
34 and procedures to facilitate and increase the participation of veteran-
35 owned business enterprises in state procurement.
36 (e) Establish regular performance reporting systems regarding imple-
37 mentation of the programs designed to increase veteran-owned business
38 participation in procurement contracts by state agencies.
39 (f) Submit a report by the thirty-first of December each year, with
40 the first report due by the thirty-first of December in the calendar
41 year next succeeding the calendar year in which this article shall have
42 become a law, to the governor, the temporary president of the senate,
43 and the speaker of the assembly. Such report shall include information
44 including, but not limited to, the number of contracts entered into
45 pursuant to this article, the average amount of such contracts, the
46 number of veteran-owned business enterprises certified, the number of
47 applications for certification as a veteran-owned business enterprise,
48 the number of denials for such certification, the number of appeals of
49 such denials, and the outcome of such appeals and the average time that
50 is required for such certification to be completed.
51 5. Certification. (a) The director, or in the absence of the director,
52 the commissioner, within ninety days of the effective date of this arti-
53 cle, shall promulgate rules and regulations providing for the establish-
54 ment of a statewide certification program including rules and regu-
55 lations governing the approval, denial, or revocation of any such
56 certification. Such rules and regulations shall include, but not be
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1 limited to, such matters as may be required to ensure that the estab-
2 lished procedures thereunder shall at least be in compliance with the
3 code of fair procedure set forth in section seventy-three of the civil
4 rights law.
5 (b) The division of veterans' business development shall be responsi-
6 ble for verifying businesses as being owned, operated, and controlled by
7 a veteran or veterans and for certifying such verified businesses.
8 Status as a veteran pursuant to paragraph (a) of this subdivision shall
9 be documented by a copy of the veteran's certificate of release or
10 discharge from active duty, including but not limited to, a DD-214 form
11 or an honorable service certificate/report of causality from the depart-
12 ment of defense, a letter of certification by the United States depart-
13 ment of veterans affairs or the United States department of defense and
14 any additional information that may be required by the division of
15 veterans' business development. In the case of the New York guard or the
16 New York naval militia and/or reserves thereof, status as a veteran
17 pursuant to this paragraph shall be documented pursuant to rules and
18 regulations promulgated by the director, or in the absence of the direc-
19 tor, the commissioner.
20 (c) Following application for certification pursuant to this section,
21 the director shall provide the applicant with written notice of the
22 status of the application, including notice of any outstanding deficien-
23 cies, within thirty days. Within sixty days of submission of a final
24 completed application, the director shall provide the applicant with
25 written notice of a determination by the director approving or denying
26 such certification and, in the event of a denial, a statement setting
27 forth the reasons for such denial. Upon a determination denying or
28 revoking certification, the business enterprise for which certification
29 has been so denied or revoked shall, upon written request made within
30 thirty days from receipt of notice of such determination, be entitled to
31 a hearing before an independent hearing officer designated for such
32 purpose by the director. In the event that a request for a hearing is
33 not made within such thirty day period, such determination shall be
34 deemed to be final. The independent hearing officer shall conduct a
35 hearing and upon the conclusion of such hearing, issue a written recom-
36 mendation to the director to affirm, reverse, or modify such determi-
37 nation of the director. Such written recommendation shall be issued to
38 the parties. The director, within thirty days, by order, must accept,
39 reject or modify such recommendation of the hearing officer and set
40 forth in writing the reason therefor. The director shall serve a copy of
41 such order and reasons therefor upon the business enterprise by personal
42 service or by certified mail return receipt requested. The order of the
43 director shall be subject to review pursuant to article seventy-eight of
44 the civil practice law and rules.
45 (d) All certifications shall be valid for a period of five years.
46 § 369-o. Opportunities for certified veteran-owned business enter-
47 prises. 1. The director, or in the absence of the director, the commis-
48 sioner, within ninety days of the effective date of this article shall
49 promulgate rules and regulations for the following purposes:
50 (a) provide measures and procedures to ensure that certified veteran-
51 owned business enterprises are afforded the opportunity for meaningful
52 participation in the performance of state contracts and to assist in
53 state agencies' identification of those state contracts for which certi-
54 fied veteran-owned business enterprises may best perform;
55 (b) provide for measures and procedures that assist state agencies in
56 the identification of state contracts where veteran contract goals are
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1 practical, feasible and appropriate for the purpose of increasing the
2 utilization of veteran-owned business enterprise participation on state
3 contracts;
4 (c) achieve a statewide goal for participation on state contracts by
5 veteran-owned business enterprises at a percentage to be determined by
6 the commissioner;
7 (d) provide for procedures relating to submission and receipt of
8 applications by veteran-owned business enterprises for certification;
9 (e) provide for the monitoring and compliance of state contracts by
10 state agencies with respect to the provisions of this article;
11 (f) provide for the requirement that state agencies submit regular
12 reports, as determined by the director, with respect to their veteran-
13 owned business enterprise program activity, including but not limited
14 to, utilization reporting and state contract monitoring and compliance;
15 (g) notwithstanding any provision of the state finance law, the public
16 buildings law, the highway law, the transportation law or the public
17 authorities law to the contrary, provide for the reservation or set-a-
18 side of certain procurements by state agencies in order to achieve the
19 objectives of this article; provided, however, that such procurements
20 shall remain subject to (i) priority of preferred sources pursuant to
21 sections one hundred sixty-two and one hundred sixty-three of the state
22 finance law; (ii) the approval of the comptroller of the state of New
23 York pursuant to section one hundred twelve and section one hundred
24 sixty-three of the state finance law and section twenty-eight hundred
25 seventy-nine-a of the public authorities law; and (iii) the procurement
26 record requirements pursuant to paragraph g of subdivision nine of
27 section one hundred sixty-three of the state finance law; and
28 (h) provide for any other purposes to effectuate this article.
29 2. State agencies shall administer the rules and regulations promul-
30 gated by the director for the implementation of this article.
31 § 369-p. Severability. If any clause, sentence, paragraph, section or
32 part of this article shall be adjudged by any court of competent juris-
33 diction to be invalid, the judgment shall not affect, impair or invali-
34 date the remainder thereof, but shall be confined in its operation to
35 the clause, sentence, paragraph, section or part of this article direct-
36 ly involved in the controversy in which the judgment shall have been
37 rendered.
38 § 2. The commissioner of the office of general services shall conduct
39 a study to determine the percentage of contracts to be set aside under
40 this act for veteran-owned businesses.
41 § 3. No later than ninety calendar days after this act shall have
42 become a law, the commissioner of the office of general services shall
43 complete the study pursuant to section two of this act.
44 § 4. This act shall take effect immediately and shall expire and be
45 deemed repealed five years after such effective date.