Bill Text: NY S03154 | 2019-2020 | General Assembly | Introduced
Bill Title: Expands opportunities for veteran-owned business enterprises.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO VETERANS, HOMELAND SECURITY AND MILITARY AFFAIRS [S03154 Detail]
Download: New_York-2019-S03154-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 3154 2019-2020 Regular Sessions IN SENATE February 4, 2019 ___________ Introduced by Sen. JORDAN -- read twice and ordered printed, and when printed to be committed to the Committee on Veterans, Homeland Securi- ty and Military 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. LBD09446-01-9S. 3154 2 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;S. 3154 3 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 indicateS. 3154 4 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 beS. 3154 5 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 areS. 3154 6 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.
