There shall be a division of economic and financial opportunity within the department.
a. The purpose of the division shall be to enhance the ability of minority and women owned business enterprises and emerging business enterprises to compete for city contracts, to enhance city agencies' awareness of such business enterprises, and to ensure their meaningful participation in city procurement.
b. The commissioner shall administer, coordinate, and enforce a citywide program established by local law for the identification, recruitment, certification and participation in city procurement of minority and women owned business enterprises and emerging business enterprises.
c. The commissioner shall be authorized to promulgate rules necessary to implement the purposes of such local law. The commissioner shall consult with the procurement policy board in drafting and adopting such rules. Such rules shall define sanctions, consistent with local law, which are appropriate to remedy violations or penalize contractors for failure to comply with the provisions of local law or with any program or rule established pursuant to local law.
d. The commissioner shall monitor the implementation of all financial, technical, managerial, and bonding assistance programs operated by city agencies to enhance participation by minority and women owned business enterprises and emerging business enterprises in city procurement.
e. The commissioner shall have the following powers and duties to implement the purposes of this section:
1. to direct and assist agencies in their efforts to increase participation by minority and women owned business enterprises and emerging business enterprises as contractors and subcontractors in city procurement;
2. to develop standardized forms and reporting documents;
3. to conduct, coordinate and facilitate technical assistance and educational programs;
4. to periodically review the compliance of city agencies with the provisions of local law for the identification, recruitment, certification and participation in city procurement of minority and women owned business enterprises and emerging business enterprises;
5. reserved;
6. a. to establish and operate, on behalf of the city, a centralized program for the certification of minority owned business enterprises, women owned business enterprises and emerging business enterprises for the purposes of establishing the eligibility of such businesses for participation in the programs and processes established pursuant to local law to ensure their meaningful participation in city procurement.
b. For the purposes of such certification, "minority owned business enterprise" and "women owned business enterprise" shall mean business enterprises authorized to do business in this state, including sole proprietorships, partnerships and corporations, in which (i) at least fifty-one percent of the ownership interest is held by United States citizens or lawful permanent residents who are either minority group members or women; (ii) the ownership interest of such individuals is real, substantial and continuing; and (iii) such individuals have and exercise the authority to control independently the day to day business decisions of the enterprise;
c. For the purposes of such certification, "emerging business enterprise" shall mean a business enterprise authorized to do business in this state, including sole proprietorships, partnerships and corporations, in which (i) at least fifty-one percent of the ownership interest is held by United States citizens or lawful permanent resident; (ii) the ownership interest of such individuals is real, substantial and continuing; (iii) such individuals have and exercise the authority to control independently the day to day business decisions of the enterprise; and (iv) such individuals have demonstrated, in accordance with regulations promulgated by the commissioner, that they are socially and economically disadvantaged. An individual who is "socially and economically disadvantaged" shall mean an individual who has experienced social disadvantage in American society as a result of causes not common to individuals who are not socially disadvantaged, and whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business area who are not socially disadvantaged. An individual's race, national origin, or gender by itself, shall not qualify the individual as "socially disadvantaged." In drafting such regulations, the commissioner shall consider criteria developed for federal programs established to promote opportunities for businesses owned by individuals who are socially and economically disadvantaged, including criteria for determining initial and continued eligibility in relation to the net worth of individuals claiming to be economically disadvantaged, provided that the net worth of an individual claiming disadvantage pursuant to this section must be less than one million dollars. In determining such net worth, the department shall exclude the ownership interest in the business enterprise and the equity in the primary personal residence.
d. To be eligible for certification, a business enterprise shall have a real and substantial business presence in the market for the city of New York, as defined by the commissioner pursuant to local law.
e. The commissioner of small business services may provide by rule criteria and procedures for firms certified as minority owned businesses and women owned businesses by other governmental entities to be recognized as certified business enterprises by the city of New York.
7. to conduct site visits at business enterprises seeking certification, the basis for which shall be provided by rule, to verify that such business enterprises are eligible for certification;
8. to audit such certified business enterprises and periodically review and in appropriate cases recertify their eligibility for participation in programs established pursuant to local law;
9. to direct and assist city agencies in their efforts to increase participation by minority owned business enterprises, women owned business enterprises and emerging business enterprises in any city-operated financial, technical, and management assistance program;
10. to assist all business enterprises certified pursuant to this section in becoming prequalified for all categories of procurement for which they may be eligible and for which contracting agencies utilize prequalification in the procurement process;
11. to prepare, periodically update, and post on the website of the division a directory of such city certified business enterprises for use by city agencies and contractors, which shall include information for each such business enterprise, as applicable, including but not limited to: (i) identification of the market sector in which the business enterprise operates; (ii) the bonding capacity of the business enterprise; (iii) the contract price and specific tasks performed by the business enterprise for its last three contracts; (iv) the union affiliation, if any, of the certified business enterprise; and (v) the renewal date for certification;
12. to develop a clearinghouse of information on programs and services available to such business enterprises; and
13. to provide such assistance to business enterprises interested in being certified as is needed to ensure that such businesses benefit from city technical, managerial, and financial assistance, and other business development programs.
f. Responsibilities of the city agencies. The head of each city agency shall:
1. establish and implement reasonable measures and procedures to secure the meaningful participation of city certified business enterprises in the agency's (1) procurement of goods, services and construction and (2) financial, technical and managerial assistance programs for such business enterprises;
2. monitor all city contracts under the agency's jurisdiction for compliance with programs and policies established pursuant to local law, and refer and recommend appropriate matters to the division of economic and financial opportunity and the law department;
3. designate a deputy commissioner or other executive officer to advise the commissioner concerning the activities of the agency in carrying out its responsibilities pursuant to local law;
4. cooperate with and furnish to the division such information and assistance as may be required in the performance of the division's functions under this section and local law and the rules promulgated thereunder;
5. make available to prospective bidders a current copy of the directory of city certified businesses; and
6. periodically report to the division on activities undertaken to promote and increase participation by city-certified businesses in its procurement and any financial, technical, or management assistance program which it administers.
g. Small and locally-based business enterprises. In addition to the purposes provided in this section, the division of economic and financial opportunity, or such other bureau or division of the department as the commissioner may designate, shall administer any programs for small or locally-based business enterprise programs as may be established by law. The division of economic and financial opportunity or such other bureau or division shall, pursuant to applicable local laws, certify such enterprises as are eligible to participate in such programs, periodically review and recertify their eligibility, audit business enterprises that participate in such programs, and publish a directory of participating enterprises.
(Am. L.L. 2020/058, 6/29/2020, eff. 8/28/2020; Am. L.L. 2023/069, 5/29/2023, eff. 6/28/2023)
Editor's note: For related unconsolidated provisions, see Administrative Code Appendix A at L.L. 1991/061, L.L. 2005/129 and L.L. 2006/012.