Provides veterans with access to certain economic programs and incentives, and expands the population served by the division of minority and women's business development

Summary of provisions

Section 1 cites the name of this act as OORAH! An ACT Opening Opportunities, Resources and Access for Heroes

Section 1-a amends the article heading of Article 15-A of the Executive Law to read: PARTICIPATION BY MINORITY GROUP MEMBERS, WOMEN AND VETERANS WITH RESPECT TO STATE CONTRACTS.

Sections 2 adds the definition of "Veteran-Owned Business Enterprise" to section 310 of Article 15A of the Executive Law.

Sections 3-4 amend sections 311 and 311-a of the Executive Law to include veterans to be assisted by the Division of Minority and Women-Owned Business Development and the Minority and Women-Owned Business Enterprise Statewide Advocate which are renamed as the Division of Minority, Women and Veteran-Owned Business Development and the Minority, Women and Veteran-Owned Business Enterprise Statewide Advocate.

Section 5 includes veterans, with minorities and women in the equal opportunity clause of section 312 of the Executive Law.

Sections 6 amends section 312-a of the Executive Law to include veteran-owned businesses in the Study of Minority, Women and Veteran-Owned Business Enterprise Programs and expedites the study by one year to be delivered to the Governor by February 15, 2015.

Section 7 amends 313 of the Executive Law to include veteran-owned business enterprises with minority and women -owned business enterprises in the agency goals for total annual procurement of state contracts.

Sections 8 - 14 continue to amend Article 15-A by including veterans with minorities and women and their business enterprises to ensure they receive the same entitlements and opportunities in the

procurement of state contracts and economic programs. As such, Veterans are assisted in the certification process and may be certified as a veteran-owned business and included in the directory of certified minority, women, and now veteran-owned business enterprises which is disseminated to all contracting agencies and encouraged to be used by these agencies. Veterans will have access facilitated to technical, managerial, financial, and general business assistance; training; marketing; organization and personnel skill development; project management assistance; and other business development assistance.

Sections 15 amends Article 4-A of the Economic Development Law to include veterans. The title heading is amended to read DIVISION OF MINORITY, WOMEN AND VETERANS' BUSINESS DEVELOPMENT.

Sections 16 - 23 continue to amend the Economic Development law by including veterans with minorities and women within the Economic Development Law. This ensures that veteran-owned businesses will be provided information on economic development programs; provided with technical assistance including 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 and contracting assistance.

Sections 24, 25 and 28 amend the State Finance Law to include veterans with minorities and women and their business enterprises. As such, the Deferred Compensation Board will establish goals for the utilization of MWVBE (Minority, Women and Veteran-Owned Business Enterprise) asset managers, MWVBE financial institutions and MWVBE professional firms. VBE (Veteran Business Enterprise) asset managers will be included in procurement procedures in any request for a proposal or search process for asset management services. VBE financial institutions are included in procurement procedures to conduct trades of public equity securities and trades of fixed income securities. VBE professional firms (those in accounting, banking, financial advisory, insurance, legal, research, valuation) are also included in procurement procedures. The Mentor-Protege Program of whose purpose is to foster long-term relationships between approved mentor firms and MWBEs now include veterans, thus, MWVBEs.

Sections 26-27 amend sections 176 and 423-c of the Retirement and Social Security Law to include veterans within the law with minorities and women. The law as amended provides for the utilization of MWVBE asset managers for the investment of assets of the common retirement fund, thus adding veterans to the database of MWVBE asset managers, financial institutions and professional service providers in investment and brokerage transactions.

Sections 29-30 amend sections 2777 and 2879 of the Public Authorities Law to include veterans with minorities and women as stated in the law. As such, "veteran-owned business enterprise- is defined. VBEs are eligible for affirmative action to state contract opportunities and will be identified for those areas or types of contracts for which they may best bid so as to promote and facilitate their fair share of

procurement contracts by public authorities and public benefit corporations.

Section 31 amends section 6-129 of the Administrative Code of the City of New York. It amends the title to include veterans as follows: Participation by Minority-Owned, Women-Owned and Veteran-Owned Business Enterprises and Emerging Business Enterprises in City Procurement. The code is amended to define and include veteran-owned businesses. Veterans are inserted for consideration into the list of specific city-wide contracting goals including contracting goals for construction contracts, professional service contracts, standard services contracts and goods contracts though they are not given a specific percentage share of such contracts until the already enacted "review" of 2015 designates a share for veterans. Inclusion on the list with minority. women and emerging businesses for consideration of contracts will enable veterans to be a part of agency utilization plans and outreach activities.

Section 32 amends subdivision 12 of Section 3.07 of the Arts and Cultural Affairs Law. As amended, veterans are included with minorities and women to ensure they are afforded equal opportunity without discrimination for all contracts of design, construction, services and materials for the improvements, expansion or rehabilitation of existing buildings. Minority, women and veteran-owned business enterprises shall be given the opportunity of meaningful participation in such contracts.

Section 33 amends subdivision 33 of section 454 of the Banking Law to include veterans with minorities and women. As amended, the Minority, Women and Veteran-Owned Business and Development and Lending Program allows the participation of credit unions.

Section 34 amends section 52-0113 of the Environmental Conservation Law by including veterans. With veterans, the Department of Environmental Conservation shall provide assistance in obtaining qualified Minority, Women and Veteran-Owned Business Enterprises to perform contracts to be awarded and to take appropriate measures to improve the access of MWVBEs.

Sections 35-39 amend sections 957, 959, 963, 964 and 970-r of the General Municipal Law to define "veteran-owned business enterprise" and ensure their meaningful participation in Empire Zone activities, including assistance to companies in applying for available benefits, preparations of applications for financing assistance and technical services. As amended, the Empire Zone Capital Corporation shall undertake measures and procedures to ensure meaningful participation of minority, women and veteran-owned business enterprises in the activities of such corporation. As amended, section 39 of the General Municipal Law requires applicants for financial assistance in brownfield communities to disclose what financial commitments they have provided for the services of minority, women and veteran-owned business enterprises.

Sections 40-64 amend the New York State Urban Development Corporation Act to include veterans with minorities and women throughout the Act. This act establishes the New York State Urban Development Corporation which issues bonds and notes to the investing public to develop and

redevelop areas, encourage research development, industries, manufacturing, and commercial development and better housing. As amended, "veteran business enterprise" is defined; the use of MWVBEs is a criterion in prioritizing projects for the allocation of tax credits; VBEs are added with MWBEs to establish the Minority, Women and Veteran-Owned Business Development and Lending Program for the purpose of providing financial and technical assistance to minority, women and veteran entrepreneurs; establishes programs in conjunction with community based entities for small loans and loans to start up MWVBEs; calls for the establishment of comprehensive programs for minority, women and veteran contractors, which may include assistance through loans, bonding assistance and technical assistance; includes veterans as low cost tenants in an "incubator" facility; establishes a program to assist MWVBEs to create incubators; establishes revolving loan trust fund accounts to minority, women and veterans; establishes a micro-loan program (loans under $7500); provides MWVBEs with procurement subcontracting assistance and creates the State Bonding Guarantee Assistance Program to enable MWVBEs to meet payment and/or performance bonding requirements for construction projects and government-sponsored transportation-related construction projects.

Sections 65-66 amend Sections 9-a and 9-b of the Facilities Development Corporation Act to include veterans with minorities and women. This Act established the Facilities Development Corporation to receive and administer monies for the construction and improvement of mental hygiene facilities and to provide maintenance and treatment of the mentally disabled. As amended, `veteran-owned business" is defined; contractors shall not discriminate and shall provide equal opportunity to minorities, women and veterans and MWVBEs will be affirmatively promoted and assisted in their fair share award of contracts.

Sections 67-68 amend sections 16-a and 16-b in the New York State Medical Care Facilities Finance Agency Act to include veterans with minorities and women. This Act established the Agency to provide additional funds for the construction of health-related facilities by nursing home companies, hospitals, non-profit medical corporations and by municipalities constituting social service districts. As amended, "veteran-owned business" is defined. As such, contractors shall not discriminate and shall provide equal opportunity to minorities, women and veterans and MWVBEs will be affirmatively promoted and assisted in their fair share award of contracts.

Existing law

Current law provides for minority and women-owned businesses to have access to economic programs and incentives, including increased opportunities in state contracting. Veterans are not included in these programs.

Justification

Since the events of September 11, 2001, the number of American service men and women returning home has significantly increased, and more so in recent years. According to the US Census Bureau, in 2010 there were 21.8 million veterans nationally, which equated to one out of every eleven persons in the United States aged 18 and over. These veterans, our heroes. removed themselves from the workforce and put their careers on hold to serve our country; to serve all of us in protecting our freedoms. The poor economic climate and low job availability in our country is not conducive to a successful

transition from military to civilian life for our veterans. The Bureau of Labor Statistics reported the July 2013 unemployment rate for post 9/11 veterans to be 7.7%. up from 7.2% in June, 2013 and 0.3% higher than the national unemployment rate. For these reasons, veterans may be regarded as economically disadvantaged and worthy of being assisted. as are other groups.

In New York, Article 15-A of the Executive Law sets forth the Participation by Minority Group Members and Women with Respect to State Contracts to promote the participation of minority and women-owned businesses in the state contracting and procurement process. Entrepreneurial pursuits are tapped as a sure-fire means of employment for the entrepreneur and for those he or she will hire. With their sense of mission, logistical skills, desire to succeed, and determination to be employed. 22 % of veterans in the U.S. household population were either purchasing or starting a business according to the latest statistics from 2010; and 67% of these veteran entrepreneurs invested their own resources for their businesses. In the private sector workforce, veterans are at least 45% more likely than those with no active duty military experience to be self-employed. Article 15-A is the conduit for assisting the development, and most importantly, the growth and sustenance of these businesses. It is reasonable that veterans be afforded the same assistance given to minorities and women that Article 15-A offers. The creation of businesses and jobs is a positive force in generating more economic activity and prosperity for not only our veterans, but ultimately for all New Yorkers.

The most recent statistics published regarding veteran-owned businesses originate from 2007 census data in the U.S. Census Bureau's Survey of Business Owners (the 2012 survey has not yet been published). This study shows New York to be the fourth ranked state in the number of veteran-owned firms. Statewide, there were 127,156 firms representing 6.5% of the businesses in New York, with total sales/receipts of $70,786,543,000 or a 3.1% share of the state's sales/receipts. This sounds impressive, however, the most important statistic to consider in combination with the aforementioned is that New York ranked 49th among the states in the percentage share of all sales/receipts attributable to veteran-owned businesses. These statistics are compelling in showing the need for this legislation. Providing assistance with the procurement of state contracts is the catalyst needed to increase sales/receipts for the many New York veteran-owned businesses allowing them to be more prosperous.

This legislation seeks to include veterans and veteran-owned businesses within Article 15-A and provide conformity with the other New York State laws within its purview. It creates no new government programs, but uses the existing laws and structure already in place. It does not compete with, or reduce, the assistance already given to minorities and women; it merely extends these benefits to our deserving veterans.

Our veterans have been trained by the military; their capabilities and leadership skills are valuable assets in opening and operating their own businesses and therefore, must be repurposed into the private sector. Veterans demonstrate their strength most in the industries of construction and scientific and technical services. Veteran-owned

businesses are well represented in the areas of finance, insurance, transportation and warehousing. As New York State continues forward with MWBE certifications and MWBE assistance for the procurement of state contracts, it should march forward to allow veterans to be included in the same certification and procurement program. Not only will it boost our economy, but it will boost the morale of our returning, transitioning veterans. OORAH! (Opening Opportunities, Resources and Access for Heroes )

Legislative history

S.5968 2013, Rules; 2014, Finance

Fiscal implications

Minimal as the programs are already established for minorities and women; veterans would be included within the same programs.

Effective date

This Act shall take effect 60 days after it shall become law.