New York Codes, Rules and Regulations › Title 21 - Miscellaneous › Chapter LXXIV - New York City School Construction Authority › Part 9605 - Regulations Governing Participation By Locally Based Enterprises And Graduate Locally Based Enterprises In Construction Contracts Awarded By The New York City School Construction Authority › Certification of LBEs and GLBEs › Section 9605.5 - Eligibility

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A contractor or
				  subcontractor shall be certified as an LBE upon a determination by the
				  authority that it has met the eligibility requirements set forth in this Part.
				  The initial certification shall be effective for three years and shall expire
				  at the end of such period.
(b) 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 an LBE
				  except that it does not meet the criteria set forth in section
				  9605.3(p)(2) of
				  this Part may nevertheless be certified as an LBE provided that such
				  certification shall expire one year after it is granted.
(c) An LBE seeking continuance of
				  certification granted according to subdivision (b) of this section will be
				  notified by the authority two months prior to its certification expiration to
				  submit documents within 30 days after the date of the notification. If, after
				  the one year certification period, the business meets all the criteria for LBE
				  eligibility as set forth in section
				  9605.3(p) of this
				  Part, certification shall be granted for two more years. This business may
				  apply to have certification renewed after this two-year period as set forth in
				  subdivision (d) of this section.
(d) An LBE whose certification is expiring
				  will be notified by the authority prior to such expiration. An LBE seeking to
				  have its certification renewed for another three-year period, shall submit
				  certification documents within 30 days of the notification of its pending
				  certification expiration.
(e) An
				  applicant which has previously been certified as an LBE and which now meets the
				  criteria for GLBE as set forth in section
				  9605.3(m) of this
				  Part, shall be certified as a GLBE for an additional two years. Thereafter, it
				  must meet the criteria for LBE eligibility as set forth in section
				  9605.3(p) of this
				  Part, in order to be recertified as an LBE for an additional three years in
				  accordance with the provisions set forth in subdivision (a) of this
				  section.
(f) Failure to submit
				  recertification documents within 30 days of the recertification notice as set
				  forth in subdivision (c) or (d) of this section shall result in the expiration
				  of LBE certification on the anniversary date.
(g) If an LBE or GLBE submits certification
				  documents timely, as set forth in subdivision (c) or (d) of this section, and
				  the authority is unable to make a determination before the anniversary date,
				  the certification will continue until the authority makes a determination as to
				  the LBE's or GLBE's status.
(h) It
				  is the intent of this Part to qualify businesses as LBEs or GLBEs only if the
				  ownership, management and operations of the business are conducted by persons
				  who do not own, manage or operate other construction businesses which would
				  otherwise be ineligible and who are not currently employed or were not employed
				  by the ineligible company for at least six consecutive months within the year
				  preceding the application for LBE or GLBE certification. Any business applying
				  for LBE or GLBE certification that does not conform to this intent shall be
				  deemed ineligible as a LBE or GLBE.
(i) A LBE or GLBE must be an independent
				  business. A business that is a separate entity for tax or corporate purposes
				  shall not necessarily be deemed to be an independent business. In determining
				  whether a business is an independent business, the authority shall consider all
				  relevant factors including but not limited to:
(1) the date the business was
				  established;
(2) the identity of
				  the principals;
(3) the sources of
				  financing; and
(4) the major
				  shareholders (if any) of the business.
A principal or shareholder in a business seeking
					 certification as an LBE or GLBE cannot be a principal or shareholder in another
					 construction firm where added together the two construction firms have gross
					 receipts in excess of the limits set forth in section
					 9605.3(m) or (p)
					 of this Part.