Sec. 144.4. Revocation of certification as a minority- or women-owned business enterprise

(a) The director shall revoke the minority- or woman-owned business enterprise status of a certified business for a period of two years, if it is demonstrated that minority group members or women no longer own and control the business enterprise in accordance with rules set forth in section 144.2 of this Part.

(b) A certified business enterprise must notify the division within 30 days of any material change in the information contained in the original application. A material change is any development that would materially affect eligibility, based on all certification criteria, including but not limited to: a change in ethnicity, sex, percentage of ownership in the business enterprise, address, officers or services provided by the certified business. If a material change is indicated, a review may be conducted by the division.

(c) Review of continued eligibility.

The director may, upon becoming aware of facts suggesting that a certified minority- or women-owned business enterprise no longer meets the certification criteria of this Part or cannot perform a commercially useful function, initiate a review of a certified minority- or women-owned business enterprise during the course of its certification according to the procedures of this subdivision.

(1) Notification of review.

Upon determining to conduct a review of the continued eligibility of a business enterprise to be certified as a minority- or women-owned business enterprise, the director shall notify such certified minority- or women-owned business enterprise in writing of his or her intent to conduct a review.

(i) Contents of notification of review. The notification of review shall specify the grounds of the review, including the certification criteria that the director has become aware that the certified minority- or women-owned business enterprise may no longer satisfy, and request information or documents related to the grounds for the review.

(ii) The director may, at his or her discretion, request that minority group member or women owners relied upon for certification of the minority- or women-owned business enterprise under review participate in a phone interview or be subject to a site visit.

(2) After completing his or her review of the continued eligibility of a certified minority- or women-owned business enterprise, the director shall notify such business enterprise of the results of the review in writing; within 30 days of completion of such review.

(d) Notification of intent to revoke certification.

In the event that the director determines that a business enterprise is no longer eligible to be certified as a minority- or women-owned business enterprise, after conducting a review of such business enterprise, the director shall notify such business enterprise via personal service or certified mail, return receipt requested, of his or her intent to revoke its certification as a minority- or women-owned business enterprise.

(1) Contents of notice of intent to revoke certification. The notification of intent to revoke certification shall identify the certification criteria that form the basis of the revocation and describe the procedures by which the revocation may be appealed pursuant to Part 145 of this Title.

(e) Notice of revocation of certification.

In the event that a business enterprise fails to timely appeal a notification of intent to revoke certification or following an appeal pursuant to section 145.2 of this Title, the director may issue a notice of revocation of certification and remove such business enterprise from the directory. Such notice shall indicate that the certification of the business enterprise as a minority- or women-owned business enterprise is revoked as of the date of the notice, that the business enterprise has been removed from the directory as of the date of the notice, and that the business enterprise may not reapply for certification as a minority- or women-owned business enterprise for two years from the date of the notice of revocation of certification.

(f) Revocation for convictions of fraud.

The director, upon becoming aware of a final judgment of conviction by any court of competent jurisdiction, for fraud by any person of a New York State certified minority- or women-owned business enterprise, as it relates to the business enterprise’s certification criteria of this Part, or of a conviction for fraudulently misrepresenting the status of the business enterprise, shall revoke such business enterprise’s certification in accordance with the procedures of this subdivision.

(1) Where a person has been convicted of fraud as a misdemeanor, that person may not reapply for certification as a minority- or women-owned business enterprise for two years from the date of revocation.

(2) Where a person has been convicted of fraud as a felony, that person may not reapply for certification as a minority- or women-owned business enterprise for up to five years from the date of revocation.

(3) Where a person has been convicted two times for fraud as a felony, within 10 years of the first conviction, that person shall be banned from applying for certification as a minority- or women-owned business for life.

(g) The final decision of the director shall be subject to review, pursuant to article 78 of the Civil Practice Law and Rules.

(h) During the pendency of a challenge, a presumption of eligibility shall remain in effect for the challenged certified minority- and women-owned business enterprise.