Service-Disabled Veteran-Owned Business Act
Governors Program Bill #35: S.6865 (Ball)/A.9135 (Ortiz)
March 28, 2014
The Service-Disabled Veteran-Owned Business Act (“Act”) passed both houses this week, and adds Article 17-B to the Executive Law. In addition to creating a new Division of Service-Disabled Veteran-Owned Business Enterprises (“Division”) within the Office of General Services (“OGS”) to help promote and continue their growth, it also creates, in statute, a new state contracting goal similar to the MWBE program; the goal defined in statute is 6 percent of state agency contracts (this would include authorities and SUNY and CUNY).
The definition of a service-disabled veteran-owned business is similar to the definitions for minority- and women-owned business enterprises, and is defined as a business that is:
- Authorized to do business in New York State. Must also have a significant business presence in New York.
- A small business, not dominant in their field that employs, based on their industry, a certain number of persons as determined by the director of the division, not to exceed 300 people.
- Independently owned and operated by one or more service-disabled veteran of the United States Army, Navy, Air Force, Marines, Coast Guard, Army National Guard, or Air National Guard and/or the reserves thereof. The definition of service-disabled veteran-owned business also includes those that served in the New York National Guard or New York Naval Militia or reserves thereof. The ownership must be at least 51 percent, and the veteran(s) must have control over day-to-day business decisions.
For this Act, the definition of “state contract” would include:
- Any state contract expected to be $25,000 or more for labor; services (including but not limited to legal, financial, and other professional services); supplies; equipment; and/or materials. This will only be on such contracts where a goal is determined to be feasible, practical and appropriate.
- Any state contract expected to be $100,000 or more for construction related contracts, including the acquisition, construction, demolition, major repair or renovation of real property. This would include construction-related work listed above for any state-assisted housing project. This will only be on such contracts where a goal is determined to be feasible, practical and appropriate.
The Director of the Division will be responsible for creating a directory of certified service-disabled veteran-owned business enterprises; this directory will be made available to state agencies and posted on the OGS website. The Director will also be responsible for helping state agencies foster and promote the use of these businesses on state contracts.
This bill will shall take effect immediately; only sections related to the Act will be repealed March 31, 2019. Within 90 days of this bill taking affect the director (or Commissioner of OGS if no director has been appointed) will promulgate rules and regulations necessary to carry this Act out, this would include rules and regulations to provide measures and procedures to help state agencies identify state contracts where such contract goals are practical, feasible and appropriate.