NY A02876

Creates a statewide certification program for veteran-owned business enterprises (VBEs) administered by the Director of the Division of Veteran-Owned Business Development in the Department of Economic Development.

Establishes procurement goals requiring state agencies to attempt to achieve 3 percent of annual statewide procurement spending in five categories: construction, construction-related professional services, non-construction services, commodities, and overall total dollar value for certified VBEs.

Defines veteran-owned businesses as at least 51 percent owned by a veteran with real, substantial, and continuing ownership, independent day-to-day control, personal net worth not exceeding $3.5 million (adjusted annually for inflation), and small business status under 300 employees.

Requires contractors to submit utilization plans identifying certified VBE subcontractors and allows partial or total waivers when contractors demonstrate good faith efforts but cannot meet participation requirements due to unavailable certified businesses in the region.

Establishes an enforcement process through administrative hearings with penalties up to one-year bidding ineligibility for fraudulent misrepresentation or willful disregard of VBE participation requirements, or up to five years for subsequent violations within five years of the first violation.