Open Economic Doors for Veterans

Section 1. This act shall be known and may be cited as "OORAH! An ACT Opening Opportunities, Resources and Access for Heroes".

§ 1-a. The article heading of article 15-A of the executive law, as added by chapter 261 of the laws of 1988, is amended to read as follows:

PARTICIPATION BY MINORITY GROUP MEMBERS [AND],

WOMEN AND VETERANS WITH RESPECT TO STATE CONTRACTS

§ 2. Subdivisions 1, 4, 9, 10, 19 and 22 of section 310 of the executive law, subdivisions 1 and 9 as added by chapter 261 of the laws of 1988, subdivisions 4 and 10 as amended by chapter 55 of the laws of 1992

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD04099-02-7

A. 3971 2

and subdivisions 19 and 22 as added by chapter 175 of the laws of 2010, are amended and a new subdivision 15-a is added to read as follows:

1. "Certified business" shall mean a business verified as a minority [or women-owned], women or veteran-owned business enterprise pursuant to section three hundred fourteen of this article.

4. "Director" shall mean the director of the division of minority [and women's], women and veterans' business development in the department of economic development.

9. "Utilization plan" shall mean a plan prepared by a contractor and submitted in connection with a proposed state contract. The utilization plan shall identify certified minority [or women-owned], women or veteran-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.

10. "Office" shall mean the division of minority [and], women's and veterans' business development in the department of economic development.

15-a. "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 United States veterans;

(b) an enterprise in which the ownership interest of such veterans is real, substantial and continuing;

(c) an enterprise in which such veteran ownership 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 independently owned and operated;

(e) an enterprise owned by an individual or individuals, whose ownership, control and operation are relied upon for certification, with a personal net worth that does not exceed three million five hundred thousand dollars, as adjusted annually on the first of January for inflation according to the consumer price index of the previous year; and

(f) an enterprise that is a small business pursuant to subdivision twenty of this section.

A firm owned by a minority group member who is also a veteran may be certified as a minority-owned business enterprise, a veteran-owned business enterprise, or both, and may be counted towards either a minorityowned business enterprise goal or a veteran-owned business enterprise goal, in regard to any contract or any goal, set by an agency or authority, but such participation may not be counted towards both such goals. Such an enterprise's participation in a contract may not be divided between the minority-owned business enterprise goal and the veteranowned business enterprise goal. A firm owned by a woman who is also a veteran may be certified as a women-owned business enterprise, a veteran-owned business enterprise, or both, and may be counted towards either a women-owned business enterprise goal or a veteran-owned business enterprise goal, in regard to any contract or any goal, set by an agency or authority, but such participation may not be counted towards both such goals. Such an enterprise's participation in a contract may not be

A. 3971 3

divided between the women-owned business enterprise goal and the veteran-owned business enterprise goal.

19. "Personal net worth" shall mean the aggregate adjusted net value of the assets of an individual remaining after total liabilities are deducted. Personal net worth includes the individual's share of assets held jointly with said individual's spouse and does not include the individual's ownership interest in the certified minority [and womenowned], women or veteran-owned business enterprise, the individual's equity in his or her primary residence, or up to five hundred thousand dollars of the present cash value of any qualified retirement savings plan or individual retirement account held by the individual less any penalties for early withdrawal.

22. "Diversity practices" shall mean the contractor's practices and policies with respect to:

(a) utilizing certified minority [and women-owned], women and veteran-owned business enterprises in contracts awarded by a state agency or other public corporation, as subcontractors and suppliers; and

(b) entering into partnerships, joint ventures or other similar arrangements with certified minority [and women-owned], women or veteran-owned business enterprises as defined in this article or other applicable statute or regulation governing an entity's utilization of minority [or women-owned], women or veteran-owned business enterprises.

§ 3. The section heading, subdivision 1, paragraphs (a), (d), (e) and (f) of subdivision 3 of section 311 of the executive law, the section heading, 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:

Division of minority [and], women's and veterans' business development. 1. The head of the division of minority [and], women's and veterans' business development 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 and veterans' business development to assist the governor in the formulation and implementation of laws and policies relating to minority [and women-owned] women and veteran-owned business enterprises.

(a) to encourage and assist contracting agencies in their efforts to increase participation by minority [and women-owned], women and veteran-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 and veterans' business development as to the level of minority [and women-owned], women and veteran-owned business enterprises 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 committees on the level of minority [and women-owned], women and veteran-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 [and], women and veterans, 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

A. 3971 4

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 minority [and women-owned], women and veteran-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;

§ 3-a. Paragraph (c) of subdivision 4 of section 311 of the executive law, as added by chapter 361 of the laws of 2009, is amended to read as follows:

(c) seek to maximize utilization by minority [and women-owned], women and veteran-owned business enterprises of available federal resources including but not limited to federal grants, loans, loan guarantees, surety bonding guarantees, technical assistance, and programs and services of the federal small business administration.

§ 4. The section heading and subdivisions 1, 2 and 3 of section 311-a of the executive law, as added by section 4 of part BB of chapter 59 of the laws of 2006, are amended to read as follows:

Minority [and women-owned], women and veteran-owned business enterprise statewide advocate. 1. There is hereby established within the department of economic development an office of the minority [and women-owned], women and veteran-owned business enterprise statewide advocate. The statewide advocate shall be appointed by the commissioner with the advice of the small business advisory board as established in section one hundred thirty-three of the economic development law and shall serve in the unclassified service of the director. The statewide advocate shall be located in the Albany empire state development office.

2. The advocate shall act as a liaison for minority [and women-owned], women and veteran-owned business enterprises [(MWBEs)] (MWVBEs) to assist them in obtaining technical, managerial, financial and other business assistance for certified businesses and applicants. The advocate shall investigate complaints brought by or on behalf of [MWBEs] (MWVBEs) concerning certification delays and instances of violations of law by state agencies. The statewide advocate shall assist certified businesses and applicants in the certification process. Other functions of the statewide advocate shall be directed by the commissioner. The advocate may request and the director may appoint staff and employees of the division of minority [and women], women's and veterans' business development to support the administration of the office of the statewide advocate.

3. The statewide advocate shall establish a toll-free number at the department of economic development to be used to answer questions concerning the [MWBE] MWVBE certification process.

§ 5. The section heading and paragraph (a) of subdivision 1 of section 312 of the executive law, as added by chapter 261 of the laws of 1988, are amended to read as follows:

Equal employment opportunities for minority group members [and], women and veterans.

(a) The contractor will not discriminate against employees or applicants for employment because of race, creed, color, national origin, sex, age, disability or marital status, and will undertake or continue existing programs of affirmative action to ensure that minority group members [and], women and veterans are afforded equal employment opportu-

A. 3971 5

nities without discrimination. For purposes of this article affirmative action shall mean recruitment, employment, job assignment, promotion, upgradings, demotion, transfer, layoff, or termination and rates of pay or other forms of compensation.

§ 6. Section 312-a of the executive law, as amended by section 1 of part Q of chapter 58 of the laws of 2015, is amended to read as follows:

§ 312-a. Study of minority [and women-owned], women and veteran-owned business enterprise programs. 1. The director of the division of minority [and women-owned], women and veteran-owned business development in the department of economic development is authorized and directed to recommission a statewide disparity study regarding the participation of minority [and women-owned], women and veteran-owned business enterprises in state contracts since the amendment of this article to be delivered to the governor and legislature no later than August fifteenth, two thousand sixteen. The study shall be prepared by an entity independent of the department and selected through a request for proposal process. The purpose of such study is: