NY State Senate Bill 2015-S7767

Senate Bill S7767

2015-2016 Legislative Session

Requires certain business recipients of state aid to perform an annual assessment of the business' social and environmental impact as assessed against a third party standard

download bill text pdf

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 12, 2016	referred to corporations, authorities and commissions

2015-S7767 (ACTIVE) - Details

Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: New York State Urban Development Corporation Act
Laws Affected:: Amd §§3, 30 & 30-A, UDC Act; add Art 23 §§450 - 452, Ec Dev L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S1788, S7151
2019-2020: S2309
2021-2022: S2953
2023-2024: S2958

2015-S7767 (ACTIVE) - Summary

Requires certain business recipients of state aid to perform an annual assessment of the business' social and environmental impact as assessed against a third party standard.

2015-S7767 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S7767

 TITLE OF BILL :

An act to amend the New York state urban development corporation act
and the economic development law, in relation to requiring certain
business recipients of state aid to perform an annual assessment of
the business' social and environmental impact as assessed against a
third party standard

 PURPOSE OR GENERAL IDEA OF BILL :

To require entities that receive over $100K in Economic Development
assistance or tax benefits to complete a third party assessment,
approved by the Empire State Development Corporation (ESDC), measuring
their social and environmental impact.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1: Defines "Third Party Standard" as a recognized standard for
defining, reporting, and assessing business' social and environmental
performance.

* Assesses the effects of the business and its operations upon the
following:

* the employees and work force of the business, its subsidiaries, and
its suppliers;

* the interests of customers as beneficiaries of the business;

* community and societal factors, including those of each community in
which offices or facilities of the business, its subsidiaries, or its
suppliers are located;

* the local and global environment

* Standard can't be developed by state OR the business whose social
and env. impact is being assessed

* Entity that does assessment must:

* have access to necessary expertise to assess overall business social
and environmental performance; and

* use a balanced multi-stakeholder approach to develop the standard,
including a reasonable public comment period.

* Following must be made publicly available:

* The criteria considered when measuring the overall social and
environmental performance of a business.

* The relative weightings, if any, of those criteria.

* The identity of the directors, officers, material owners, and the
governing body of the entity that developed and controls revisions to
the standard.

* The process by which revisions to the standard and changes to the
membership of the governing body are made.

* An accounting of the revenue and sources of financial support for
the entity, with sufficient detail to disclose any relationships that
could reasonably be considered to present a potential conflict of
interest.
Section 2:

* Corporation must submit annual report to governor and chairs of
various Senate/Assembly committees on the social and environmental
impact of entities required to report. Such report shall include an
analysis of the aggregate third party standard assessment results
including aggregate assessment results by funding level.

Section 3:

* Requires anyone that receives over $100K in program assistance or
tax benefits to complete a third party assessment measuring their
social and environmental impact annually

Sections 4 and 5:

* Adds same requirements to the Economic Development Law

 JUSTIFICATION :

In 2011, New York State enacted a law permitting the incorporation of
"benefit corporations," which must have a "general public benefit"
purpose, defined as a material, positive impact on society and the
environment, taken as a whole, as assessed against a third-party
standard, through activities that promote a combination of specific
public benefits.

Benefit corporations allow businesses to measure their success using
their positive impact on society, rather than just profits. To
maximize the potential of benefit corporations, this bill requires
entities that receive over $100K in economic development assistance or
tax benefits to complete a third party assessment, approved by ESDC,
measuring their social and environmental impact. New York will be able
to choose from multiple organizations who offer third party
assessments that meet the criteria of the bill. By getting a more
accurate picture of the impact of businesses on society, New York will
ensure that businesses who provide the greatest benefits receive
assistance.

 PRIOR LEGISLATIVE HISTORY :

New Bill.

 FISCAL IMPLICATIONS :

None

 EFFECTIVE DATE :
Immediately

2015-S7767 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7767

                            I N  S E N A T E

                              May 12, 2016
                               ___________

Introduced  by Sen. SQUADRON -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and Commissions

AN ACT to amend the New York state urban development corporation act and
  the  economic  development law, in relation to requiring certain busi-
  ness recipients of state aid to perform an annual  assessment  of  the
  business'  social and environmental impact as assessed against a third
  party standard

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Section 3 of section 1 of chapter 174 of the laws of 1968,
constituting the New York state urban  development  corporation  act  is
amended by adding a new subdivision 31 to read as follows:
  (31)  "THIRD-PARTY  STANDARD".  A  RECOGNIZED  STANDARD  FOR DEFINING,
REPORTING, AND ASSESSING BUSINESS' SOCIAL AND ENVIRONMENTAL  PERFORMANCE
THAT:
  (A)  ASSESSES  THE EFFECTS OF THE BUSINESS AND ITS OPERATIONS UPON THE
FOLLOWING:
  (I) THE EMPLOYEES AND WORK FORCE OF THE  BUSINESS,  ITS  SUBSIDIARIES,
AND ITS SUPPLIERS;
  (II) THE INTERESTS OF CUSTOMERS AS BENEFICIARIES OF THE BUSINESS;
  (III) COMMUNITY AND SOCIETAL FACTORS, INCLUDING THOSE OF EACH COMMUNI-
TY  IN WHICH OFFICES OR FACILITIES OF THE BUSINESS, ITS SUBSIDIARIES, OR
ITS SUPPLIERS ARE LOCATED; AND
  (IV) THE LOCAL AND GLOBAL ENVIRONMENT; AND
  (B) IS DEVELOPED BY AN ENTITY OTHER THAN:
  (I) THE STATE; OR
  (II) THE BUSINESS WHOSE  SOCIAL  AND  ENVIRONMENTAL  IMPACT  IS  BEING
ASSESSED AGAINST THE THIRD PARTY STANDARD; AND
  (III) SUCH ENTITY SHALL:
  (A)  HAVE  ACCESS  TO  NECESSARY EXPERTISE TO ASSESS OVERALL BUSINESS'
SOCIAL AND ENVIRONMENTAL PERFORMANCE; AND
  (B) USE A BALANCED MULTI-STAKEHOLDER APPROACH TO DEVELOP THE STANDARD,
INCLUDING A REASONABLE PUBLIC COMMENT PERIOD; AND

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD11038-03-6

S. 7767                             2

  (C) MAKES THE FOLLOWING INFORMATION PUBLICLY AVAILABLE:
  (I)  THE  CRITERIA  CONSIDERED  WHEN  MEASURING THE OVERALL SOCIAL AND
ENVIRONMENTAL PERFORMANCE OF A BUSINESS;
  (II) THE RELATIVE WEIGHTINGS, IF ANY, OF THOSE CRITERIA;
  (III) THE IDENTITY OF THE DIRECTORS, OFFICERS,  MATERIAL  OWNERS,  AND
THE  GOVERNING  BODY OF THE ENTITY THAT DEVELOPED AND CONTROLS REVISIONS
TO THE STANDARD;
  (IV) THE PROCESS BY WHICH REVISIONS TO THE STANDARD AND CHANGES TO THE
MEMBERSHIP OF THE GOVERNING BODY ARE MADE; AND
  (V) AN ACCOUNTING OF THE REVENUE AND SOURCES OF FINANCIAL SUPPORT  FOR
THE  ENTITY,  WITH  SUFFICIENT DETAIL TO DISCLOSE ANY RELATIONSHIPS THAT
COULD REASONABLY BE CONSIDERED TO PRESENT A POTENTIAL CONFLICT OF INTER-
EST.
  S 2. Section 30 of section 1 of chapter  174  of  the  laws  of  1968,
constituting  the  New  York  state urban development corporation act is
amended by adding a new subdivision (d) to read as follows:
  (D) REPORT.  IN ADDITION TO ANY OTHER REQUIREMENTS IMPOSED BY THE  ACT
OR  OTHERWISE  REGARDING  EVALUATIONS  OF  PROGRAMS  ADMINISTERED BY THE
CORPORATION, THE CORPORATION SHALL REPORT ON AN ANNUAL  BASIS  BEGINNING
OCTOBER  FIRST, TWO THOUSAND SEVENTEEN, AND ON EACH OCTOBER FIRST THERE-
AFTER, TO THE GOVERNOR, THE CHAIRPERSONS OF  THE  SENATE  COMMITTEES  ON
FINANCE,  COMMERCE,  ECONOMIC DEVELOPMENT AND SMALL BUSINESS, AND CORPO-
RATIONS, AUTHORITIES AND COMMISSIONS, THE CHAIRPERSONS OF  THE  ASSEMBLY
COMMITTEES  ON  WAYS  AND  MEANS,  ECONOMIC  DEVELOPMENT,  CORPORATIONS,
AUTHORITIES AND COMMISSIONS, AND SMALL BUSINESS ON THE SOCIAL AND  ENVI-
RONMENTAL IMPACT OF ENTITIES REQUIRED TO REPORT UNDER SUBDIVISION (I) OF
SECTION  THIRTY-A  OF THIS ACT. SUCH REPORT SHALL INCLUDE AN ANALYSIS OF
THE AGGREGATE THIRD PARTY STANDARD ASSESSMENT RESULTS  INCLUDING  AGGRE-
GATE ASSESSMENT RESULTS BY FUNDING LEVEL.
  S  3.  Section  30-a  of section 1 of chapter 174 of the laws of 1968,
constituting the New York state urban  development  corporation  act  is
amended by adding a new subdivision (i) to read as follows:
  (I)  THE  CORPORATION SHALL, UPON APPROVAL OF AN APPLICATION OR FORMAL
REQUEST FOR FUNDING, IN AN AMOUNT OF ONE  HUNDRED  THOUSAND  DOLLARS  OR
MORE,  OR TAX BENEFIT ASSISTANCE FOR ANY ENTITY OR PROJECT, REQUIRE SUCH
RECIPIENT TO PERFORM AN ANNUAL ASSESSMENT OF THEIR SOCIAL  AND  ENVIRON-
MENTAL  IMPACT AS ASSESSED AGAINST A THIRD PARTY STANDARD, AS DEFINED IN
SUBDIVISION THIRTY-ONE OF SECTION THREE OF  THIS  ACT.  SUCH  ASSESSMENT
SHALL BE SUBMITTED TO THE CORPORATION BY THE ENTITY RECEIVING FUNDING OR
TAX BENEFIT ASSISTANCE APPROVED BY THE CORPORATION NINETY DAYS AFTER THE
FIRST YEAR FROM THE DATE OF APPROVAL AND ANNUALLY THEREAFTER. THE CORPO-
RATION  SHALL  SELECT  AN INDEPENDENT THIRD PARTY STANDARD AS DEFINED IN
SUBDIVISION THIRTY-ONE OF SECTION THREE OF THIS ACT. SUCH STANDARD SHALL
BE CHOSEN WITHIN ONE HUNDRED EIGHTY DAYS AFTER  THE  EFFECTIVE  DATE  OF
THIS  SUBDIVISION. THE CORPORATION MAY USE ANY FUNDS NECESSARY TO ADMIN-
ISTER AND IMPLEMENT THIS SECTION.
  S 4. The economic development law is amended by adding a  new  article
23 to read as follows:
                               ARTICLE 23
                      FUNDING RECIPIENT ASSESSMENT
SECTION 450. DEFINITION.
        451. REPORT.
        452. ANNUAL ASSESSMENT.
  S  450. DEFINITION. "THIRD-PARTY STANDARD" MEANS A RECOGNIZED STANDARD
FOR DEFINING, REPORTING, AND ASSESSING  BUSINESS'  SOCIAL  AND  ENVIRON-
MENTAL PERFORMANCE THAT:

S. 7767                             3

  (A)  ASSESSES  THE EFFECTS OF THE BUSINESS AND ITS OPERATIONS UPON THE
FOLLOWING:
  (I)  THE  EMPLOYEES  AND WORK FORCE OF THE BUSINESS, ITS SUBSIDIARIES,
AND ITS SUPPLIERS;
  (II) THE INTERESTS OF CUSTOMERS AS BENEFICIARIES OF THE BUSINESS;
  (III) COMMUNITY AND SOCIETAL FACTORS, INCLUDING THOSE OF EACH COMMUNI-
TY IN WHICH OFFICES OR FACILITIES OF THE BUSINESS, ITS SUBSIDIARIES,  OR
ITS SUPPLIERS ARE LOCATED; AND
  (IV) THE LOCAL AND GLOBAL ENVIRONMENT; AND
  (B) IS DEVELOPED BY AN ENTITY OTHER THAN:
  (I) THE STATE; OR
  (II)  THE  BUSINESS  WHOSE  SOCIAL  AND  ENVIRONMENTAL IMPACT IS BEING
ASSESSED AGAINST THE THIRD PARTY STANDARD; AND
  (III) SUCH ENTITY SHALL:
  (A) HAVE ACCESS TO NECESSARY EXPERTISE  TO  ASSESS  OVERALL  BUSINESS'
SOCIAL AND ENVIRONMENTAL PERFORMANCE; AND
  (B) USE A BALANCED MULTI-STAKEHOLDER APPROACH TO DEVELOP THE STANDARD,
INCLUDING A REASONABLE PUBLIC COMMENT PERIOD; AND
  (C) MAKES THE FOLLOWING INFORMATION PUBLICLY AVAILABLE:
  (I)  THE  CRITERIA  CONSIDERED  WHEN  MEASURING THE OVERALL SOCIAL AND
ENVIRONMENTAL PERFORMANCE OF A BUSINESS;
  (II) THE RELATIVE WEIGHTINGS, IF ANY, OF THOSE CRITERIA;
  (III) THE IDENTITY OF THE DIRECTORS, OFFICERS,  MATERIAL  OWNERS,  AND
THE  GOVERNING  BODY OF THE ENTITY THAT DEVELOPED AND CONTROLS REVISIONS
TO THE STANDARD;
  (IV) THE PROCESS BY WHICH REVISIONS TO THE STANDARD AND CHANGES TO THE
MEMBERSHIP OF THE GOVERNING BODY ARE MADE; AND
  (V) AN ACCOUNTING OF THE REVENUE AND SOURCES OF FINANCIAL SUPPORT  FOR
THE  ENTITY,  WITH  SUFFICIENT DETAIL TO DISCLOSE ANY RELATIONSHIPS THAT
COULD REASONABLY BE CONSIDERED TO PRESENT A POTENTIAL CONFLICT OF INTER-
EST.
  S 451. REPORT. IN ADDITION TO ANY OTHER REQUIREMENTS  IMPOSED  BY  THE
ACT  OR  OTHERWISE REGARDING EVALUATIONS OF PROGRAMS ADMINISTERED BY THE
DEPARTMENT, THE COMMISSIONER AND THE DEPARTMENT SHALL REPORT ON AN ANNU-
AL BASIS BEGINNING OCTOBER FIRST, TWO THOUSAND SEVENTEEN,  AND  ON  EACH
OCTOBER  FIRST  THEREAFTER,  TO  THE  GOVERNOR,  THE CHAIRPERSONS OF THE
SENATE COMMITTEES ON FINANCE, COMMERCE, ECONOMIC DEVELOPMENT  AND  SMALL
BUSINESS,  AND  CORPORATIONS,  AUTHORITIES  AND  COMMISSIONS, THE CHAIR-
PERSONS OF THE ASSEMBLY COMMITTEES ON WAYS AND MEANS, ECONOMIC  DEVELOP-
MENT,  CORPORATIONS,  AUTHORITIES AND COMMISSIONS, AND SMALL BUSINESS ON
THE SOCIAL AND ENVIRONMENTAL IMPACT OF ENTITIES REQUIRED TO REPORT UNDER
SECTION FOUR HUNDRED  FIFTY-TWO  OF  THIS  ARTICLE.  SUCH  REPORT  SHALL
INCLUDE  AN  ANALYSIS  OF  THE AGGREGATE THIRD PARTY STANDARD ASSESSMENT
RESULTS INCLUDING AGGREGATE ASSESSMENT RESULTS BY FUNDING LEVEL.
  S 452. ANNUAL ASSESSMENT. THE COMMISSIONER AND THE  DEPARTMENT  SHALL,
UPON  APPROVAL  OF  AN  APPLICATION OR FORMAL REQUEST FOR FUNDING, IN AN
AMOUNT OF ONE HUNDRED THOUSAND DOLLARS OR MORE, OR TAX  BENEFIT  ASSIST-
ANCE  FOR  ANY  ENTITY  OR PROJECT, REQUIRE SUCH RECIPIENT TO PERFORM AN
ANNUAL ASSESSMENT OF THEIR SOCIAL AND ENVIRONMENTAL IMPACT  AS  ASSESSED
AGAINST A THIRD PARTY STANDARD, AS DEFINED IN SECTION FOUR HUNDRED FIFTY
OF THIS ARTICLE. SUCH ASSESSMENT SHALL BE SUBMITTED TO THE DEPARTMENT BY
THE  ENTITY  RECEIVING FUNDING OR TAX BENEFIT ASSISTANCE APPROVED BY THE
DEPARTMENT NINETY DAYS AFTER THE FIRST YEAR FROM THE  DATE  OF  APPROVAL
AND  ANNUALLY  THEREAFTER.  THE  DEPARTMENT  SHALL SELECT AN INDEPENDENT
THIRD PARTY STANDARD AS DEFINED IN SECTION FOUR HUNDRED  FIFTY  OF  THIS
ARTICLE.    SUCH STANDARD SHALL BE CHOSEN WITHIN ONE HUNDRED EIGHTY DAYS

S. 7767                             4

AFTER THE EFFECTIVE DATE OF THIS SECTION. THE  DEPARTMENT  MAY  USE  ANY
FUNDS NECESSARY TO ADMINISTER AND IMPLEMENT THIS SECTION.
  S 5. This act shall take effect immediately.

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