US Laws, Codes, Statutes & Cases

 
    §  6-108.1  Locally based enterprises. a. Definitions. As used in this
  section, the following terms have the following meanings:
    (1) "Contract"  means  any  written  agreement  whereby  the  city  is
  committed  to  expend  or  does  expend  funds  in  connection  with any
  construction project, except the term "contract" shall not include:
    (a) contracts for financial or other assistance between the city and a
  government or government agency; or
    (b) contracts, resolutions,  indentures,  declarations  of  trust,  or
  other   instruments   authorizing  or  relating  to  the  authorization,
  issuance, award, and sale of bonds, certificates of indebtedness, notes,
  or other fiscal obligations of the city, or consisting thereof; or
    (c) any other types of  contracts,  to  be  designated  in  rules  and
  regulations,  to  which  the  mayor  determines  that application of the
  provisions of this section is inappropriate.
    (2) "Contracting agency" means  a  city,  county,  borough,  or  other
  office, position, administration, department, division, bureau, board or
  commission,  or  a corporation, institution or agency of government, the
  expenses of which are paid in whole or in part from the city treasury.
    (3) "Construction project"  means  any  construction,  reconstruction,
  rehabilitation,  alteration,  conversion, extension, improvement, repair
  or demolition of real property contracted by a contracting agency.
    (4) "Economic development area" means an area of the  city  designated
  as  eligible  for participation in the community development block grant
  program of the United States department of housing and urban development
  and any other area designated by the mayor by the adoption of a rule  or
  regulation,  after  consultation  with the council, upon a determination
  that such area has a special need for development of business  and  jobs
  in construction.
    (5)  "Economically  disadvantaged  person"  means a person who, at the
  time of hiring by a locally based enterprise if such hiring occurred not
  more than  three  tax  years  prior  to  the  time  of  such  business's
  application for certification, or at the time of such application, is:
    (a) a resident in a single person household who receives (i) wages not
  in  excess  of  seventy percent of the lower-level "urban family budget"
  for the city as determined by the  United  States  department  of  labor
  bureau  of  labor  statistics;  or  (ii)  cash  welfare payments under a
  federal, state or local welfare program; or
    (b) a member of a family which (i)  has  a  family  income  less  than
  seventy percent of the lower-level "urban family budget" for the city as
  determined  by  the  United  States department of labor, bureau of labor
  statistics, or (ii) receives cash  welfare  payments  under  a  federal,
  state or local welfare program; or
    (c) a Vietnam era veteran as defined by applicable federal law who has
  been   unable  to  obtain  non-government  subsidized  employment  since
  discharge from the armed services; or
    (d) a displaced homemaker who has not been in the labor force for five
  years but has during those years worked in  the  home  providing  unpaid
  services  for  family members and was (i) dependent on public assistance
  or the income of another family member but is  no  longer  supported  by
  that  income, or (ii) receiving public assistance for dependent children
  in the home and that assistance will soon be terminated.
    (6) "Locally based enterprise" means a business which:
    (a) at the time of application for certification  has  received  gross
  receipts  in the last three tax years averaging no more than six hundred
  twenty-five thousand dollars or such higher  amount  as  may  have  been
  established  by  regulation  for  the relevant category of locally based
  enterprise pursuant to subdivision g of this section; and
    (b) in the tax year preceding such application, has

    (i) earned at least twenty-five percent of  its  gross  receipts  from
  work performed in economic development areas, or
    (ii)  employed  a workforce of which at least twenty-five percent were
  economically disadvantaged persons.
    (7) "Mayor" means the mayor of the city of New  York  or  the  mayor's
  designee.
    (8)  "Graduate  locally  based  enterprise" means a business which has
  been certified as a locally based enterprise and is  not  qualified  for
  renewal  of  such  certification  because,  during the three-year period
  immediately preceding its application for certification  as  a  graduate
  locally  based  enterprise,  its  gross  receipts averaged more than the
  amount established pursuant to subparagraph a of paragraph six  of  this
  subdivision, but not more than one million five hundred thousand dollars
  or such higher amount as may have been established by regulation for the
  relevant  category  of  graduate  locally  based  enterprise pursuant to
  subdivision g of this section.
    b. Each contracting agency shall, consistent with the requirements  of
  applicable city, state and federal law, including applicable competitive
  bidding  requirements,  seek to ensure that not less than ten percent of
  the total dollar  amount  of  all  contracts  awarded  for  construction
  projects  during  each  fiscal  year  shall  be awarded to locally based
  enterprises or graduate locally based enterprises.
    c. Each contracting agency shall, consistent with the requirements  of
  applicable  city,  state  and  federal law, include in every contract to
  which it becomes a party such terms and conditions as may be required by
  regulation promulgated pursuant to this section to provide that  if  any
  or  all  of  the contract is subcontracted, not less than ten percent of
  the total dollar amount of the contract  shall  be  awarded  to  locally
  based  enterprises  or  graduate locally based enterprises; except that,
  where an amount less than such percentage is subcontracted, such  lesser
  percentage shall be so awarded.
    d. Consistent with the rules and regulations of the board of estimate,
  a  full  or partial waiver of performance and completion bonds may, with
  the approval of the corporation counsel, be  granted  by  a  contracting
  agency  where  such  bonds  are  not deemed in the best interests of the
  city.  Contractors shall not require performance and payment bonds  from
  subcontractors  which are locally based enterprises and graduate locally
  based enterprises.
    e. The contracting agency may grant a full or partial  waiver  of  the
  requirements of this section upon a finding that an emergency exists, or
  that  no  qualified  locally  based enterprise or graduate locally based
  enterprise is available to perform a subcontract on reasonable terms, or
  for other good cause. Any such finding shall  be  made  in  writing  and
  shall set forth the reasons therefor. No waiver shall be granted without
  the approval of the mayor and timely written notification of such waiver
  to the council.
    f.  (1) The mayor shall establish a procedure for the certification of
  businesses which meet the requirements of this section  and  regulations
  promulgated  hereunder  as locally based enterprises or graduate locally
  based enterprises. Such procedure may  provide  for  a  business  to  be
  certified  as  a  graduate  locally based enterprise for a period not to
  exceed two years, to commence immediately after the  expiration  of  its
  certification  as  a locally based enterprise. A business which has been
  in existence for less than one year prior to the date of application for
  certification, and which would otherwise  qualify  as  a  locally  based
  enterprise  except  that  it  does  not  meet  the criteria set forth in
  subparagraph (b) of paragraph six of subdivision a of this section,  may
  nevertheless  be  certified  as  a  locally  based  enterprise, provided

  however that such certification shall be rescinded unless  the  business
  meets  the  criteria set forth in such subparagraph within one year from
  the date of its certification.  The  mayor  shall  maintain  a  list  of
  certified   locally   based   enterprises  and  graduate  locally  based
  enterprises for each borough which identifies the companies  which  have
  performed  work in such borough to qualify as a locally based enterprise
  or a graduate locally based enterprise.  The  contracting  agency  shall
  provide  to  contractors for their consideration the appropriate list of
  certified  locally  based  enterprises  and   graduate   locally   based
  enterprises  for the borough in which the construction contract on which
  they are bidding is located.
    (2) The mayor  may  rescind  the  certification  of  a  locally  based
  enterprise  or  graduate locally based enterprise after providing notice
  and an opportunity to be heard to the business upon a finding that  such
  business  is  not in compliance with the requirements of this section or
  the regulations promulgated hereunder.
    g. The mayor shall promulgate such rules and  regulations  as  may  be
  necessary  for  the  purpose  of  implementing  the  provisions  of this
  section. Such regulations may increase  the  gross  receipts  limitation
  provided  by  subparagraph (a) of paragraph six of subdivision a of this
  section to an amount not to exceed two million dollars, and may increase
  the gross receipts  limitation  provided  by  paragraph  eight  of  such
  subdivision  to an amount not to exceed five million dollars, for all or
  specifically designated categories  of  locally  based  enterprises  and
  graduate  locally based enterprises, so as to effectuate the purposes of
  this section. By regulation, such  gross  receipts  limitations  may  be
  further adjusted every two years to be higher than the amounts specified
  in  this  subdivision,  as  necessary  to  account  for  the  effects of
  inflation  as  indicated  by  an  appropriate  index  of  costs  in  the
  construction  industry,  developed  by  the  director  of  the office of
  construction, office of the mayor.  Such  regulations  may  also  adjust
  upward  the income limitation in paragraph five of subdivision a of this
  section to allow for increases in the cost of  living.  Any  contractual
  terms  and conditions for contractors and subcontractors provided for in
  any such regulation, including any sanctions to be imposed  for  failure
  to  comply  with  this  section,  shall  be  approved  as to form by the
  corporation counsel. All  rules  and  regulations  pursuant  to  and  in
  furtherance  of  this section shall be adopted and amended in accordance
  with chapter forty-five of the charter.
    h. The mayor shall submit an annual  report  to  the  council,  on  or
  before  April  first  of each year, concerning the administration of the
  program established pursuant to this section.