Section 1304. Division of Economic and Financial Opportunity

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.  to  annually  report  to the mayor and the council, as required by
  such local law, on  the  activities  of  the  division  and  efforts  by
  agencies to comply with the provisions of such local law;
    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  permanent  resident  aliens  who are either minority group
  members or women, (ii) the ownership interest of such persons  is  real,
  substantial and continuing, and (iii) such persons 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 permanent resident aliens;
  (ii) the ownership interest of such persons  is  real,  substantial  and
  continuing,  (iii)  such  persons  have  and  exercise  the authority to
  control  independently  the  day  to  day  business  decisions  of   the
  enterprise;  and (iv) such persons have demonstrated, in accordance with
  regulations promulgated by the commissioner, that they are socially  and
  economically  disadvantaged.  A person who is "socially and economically
  disadvantaged"  shall  mean  a  person  who   has   experienced   social
  disadvantage  in  American  society  as a result of causes not common to
  persons 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.  A  person's  race,
  national  origin,  or  gender by itself, shall not qualify the person as
  "socially disadvantaged." In drafting such regulations, the commissioner
  shall consider criteria developed for federal  programs  established  to
  promote  opportunities  for businesses owned by persons who are socially
  and  economically  disadvantaged,  including  criteria  for  determining
  initial  and  continued  eligibility  in  relation  to  the net worth of
  persons claiming to be economically disadvantaged, provided that the net
  worth of a person 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.
    7. to audit such business enterprises and periodically review  and  in
  appropriate  cases  recertify  their  eligibility  for  participation in
  programs established pursuant to local law;
    8. 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;
    9.  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;
    10. to prepare and  periodically  update  a  directory  of  such  city
  certified  business enterprises for use by city agencies and contractors
  and develop a clearinghouse of  information  on  programs  and  services
  available to such business enterprises; and
    11.  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.