Enacts the New York State Service-Disabled, Veteran-Owned Business Enterprise Opportunity Act

Summary Of Specific Provisions: This bill amends the Executive Law by adding a new article 17-A to create the New York State Service-Disabled Veteran-Owned Business Enterprise Opportunity Act.

The bill defines several terms including veteran, service-disabled veterans, certified service-disabled veteran business enterprise and service-disabled veteran-owned business enterprise.

A service-disabled veteran-owned business enterprise shall mean a busi- ness enterprise including sole proprietorship, partnership or corpo- ration (a) that is at least 51 percent owned by one or more service-dis- abled veterans; (b) that is an enterprise in which the ownership interest of such service-disabled veterans is real, substantial and continuing; (c) that employs 100 or fewer permanent full-time employees; (d) that is organized to engage in commercial transactions; (e) that is domiciled in this state; and (f) where the management and control of the daily business operations are by one or more service-disabled veterans, or for a service-disabled veteran with a permanent and total disability, by the spouse or permanent caregiver of the veteran. The service-disa- bled veterans who exercise management and control are not required to be the same service-disabled veterans as the owners of the business.

Section 369 creates a statewide certification program. The commissioner of the office of general services, in consultation with the the division of small business shall promulgate rules and regulations providing for the establishment of a statewide certification program. OGS shall be responsible for verifying businesses as being owned, operated, and controlled by service-disabled veterans and for granting, denying and revoking certification. A procedure enabling OGS to accept federal certification in lieu of requiring the applicant to complete the state certification process is required under this legislation. All certif- ications shall be valid for a period of three years. A certified service-disabled veteran-owned business enterprise must notify the office within thirty business days after any event that may significant- ly affect the certification of the business enterprise, including, but not limited to, a change in ownership or change in management and daily business enterprise operations.

OGS with the assistance of the division for small-business, shall report to the governor, the temporary president of the senate and the speaker of the assembly on or before April first of each year, beginning in two thousand eleven, on the participation of service-disabled veteran-owned

business enterprise in state procurement. Such report shall include but not be limited to (a) the number of service-disabled veteran-owned busi- ness enterprises who submitted a bid for a state procurement contract; (b) the number of service-disabled veteran-owned business enterprises who entered into procurement contracts and the total value of those procurement contracts; (c) the location of service-disabled veteran- owned business enterprises who entered into procurement contracts with the state by region; and (d) a listing of contracts by services that were provided by service-disabled veteran-owned businesses that entered into procurement contracts with this state.

Section 369-a Duties of the division of small-business. The division shall (1) assist the office in establishing a certification procedure, which shall be review triennially and updated as necessary and (2) assist OGS with the annual report to the governor and legislature, as required under this legislation.

Section 369-b Duties of the division of veterans' affairs. The division shall (1.) identify eligible service-disabled veteran business enter- prises by any electronic means, including electronic mail or internet website, or by any other reasonable means and share such information with OGS and the department for small business and (2) encourage and assist eligible service-disabled veteran-owned business enterprises to apply for certification under this legislation.

The state finance law is amended by adding a new section 139-1. When purchasing goods, services or construction for public use, any state agency, department or authority which has let more than two million dollars in commodities services and construction contracts in the prior fiscal year shall award contracts for such purchases to a certified service-disabled veteran-owned business enterprise who submits a bid or proposal and is a responsive and responsible bidder, even if such participant is not the lowest bidder for such contract, provided, howev- er, that such award may only be made to the lowest bid that is reason- ably competitive, and provided also that there is no lower bid or proposal by a certified minority or women-owned business enterprise. "Reasonably competitive" means for the purpose of this bill a bid from a certified service-disabled veteran-owned business enterprise does not exceed the lowest bid by more than six percent. If two or more quali- fied service-disabled veteran-owned business enterprises are the lowest bidders on a contract, all other things being equal, the qualified service-disabled veteran with the lowest bid shall be awarded the contract under this legislation.

Justification: Several states have enacted legislation that helps service-disabled veteran-owned businesses partake in their respective state's procurement contracts for goods and services. This proposal will help service-disabled veterans who own businesses in New York state take part in the state's procurement process.

Many of the service-disabled veterans who are returning to our state from their military service in Iraq and Afghanistan are starting busi-

nesses. This legislation is one step in helping these men and women in achieving their dream of becoming successful business owners, especially in light of these economic times.

Prior Legislative History: New Legislation.

Fiscal Implications For State And Local Governments: None.

Effective Date: This act shall take effect on the first day of April next succeeding the date on which it shall have become a law; provided, however, that effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized and directed to be made and completed on or before such effective date.