§ 11-86 Revocation of Emerging Business Enterprise Status.
RCNY § 11-86
(a)A certified business must notify DSBS within forty-five (45) days of any material change in the information contained in the original certification application. A material change may include, but is not limited to, a change in any of the following: ownership; address; officers; or services provided by the certified business. If a material change occurs, a review may be conducted by DSBS and certification may be revoked. If an EBE's certification is revoked, such business enterprise may reapply for certification at any time following revocation. If a certified business fails to notify the director of EBE of such material change, the director of EBE may in his or her discretion, revoke the certification of an EBE for a period of up to five (5) years.
(b)DSBS, upon having reason to believe or upon receiving allegations indicating that a certified business enterprise is not eligible for certification as an EBE, may meet with socially and economically disadvantaged persons claiming ownership and control of the certified business and/or conduct an audit of such business enterprise, and shall take the following actions: (1) Determine whether the allegation can be substantiated; (2) Obtain in writing, if possible, the basis of any allegation from the person or persons making the allegation; (3) Notify a certified business in writing that its certification as an EBE is under review by the director of EBE and may be revoked. This notice shall specify the bases for such review and any facts specifically at issue; and (4) Provide the certified business with an opportunity to respond in writing to any allegations set forth in any notices questioning the certification status of a certified business, within thirty (30) days of the date of such notice, by personal service or certified mail, return receipt requested.
(c)If the socially and economically disadvantaged persons claiming ownership of the certified business fail to respond timely in writing to the notice of certification status review, or fail to meet with a DSBS representative or agree to an audit, the certification of the EBE may be revoked by the director of certification.
(d)The director of certification shall notify, in writing, a certified business of the revocation of its certification as an EBE within fourteen (14) days of revoking such certification. The socially and economically disadvantaged persons claiming ownership and control of a business enterprise which has had its certification as an EBE revoked may request an appeal of this decision within thirty (30) days of the date of the notice of revocation. Such appeal shall be conducted in accordance with procedures set forth in 66 RCNY § 11-84. If a request for an appeal is not made within the thirty (30) day period, the director of certification's determination shall be final and the business enterprise may not reapply for certification for two (2) years from the date of the notice of revocation provided, however, that if the facts and circumstances forming the basis of the revocation decision have changed significantly, the business enterprise may, at the discretion of the director of certification, be granted permission to reapply sooner.
(e)If at any time DSBS has reason to believe that an applicant or certified business has willfully and knowingly provided incorrect information or made false statements, it shall refer the matter to the Department of Investigation for investigation. Falsification of any document by an applicant or a certified business may lead to the imposition of civil and criminal penalties as provided by law and contract, de-certification as an EBE and the inclusion of an advice of caution in the City Vendor Information Exchange System ("VENDEX") database.
