NY State Senate Bill 2021-S2953

Senate Bill S2953

2021-2022 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

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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
Jan 05, 2022	referred to corporations, authorities and commissions
Jan 26, 2021	referred to corporations, authorities and commissions

2021-S2953 (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:: 2015-2016: S7767
2017-2018: S1788, S7151
2019-2020: S2309
2023-2024: S2958

2021-S2953 (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.

2021-S2953 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S2953

SPONSOR: KAVANAGH
 
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 stand-
ard

 
PURPOSE:

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 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 environ-
mental 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 aggre-
gate 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 envi-
ronment, taken as a whole, as assessed against a third-party standard,
through activities that promote a combination of specific public bene-
fits.

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.

 
FISCAL IMPACT:

None.

 
LEGISLATIVE HISTORY:

2019-2020: S2309 - REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

2018:S7151- REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

2017:S1788- REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

2016:S7767- REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S2953 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2953
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 26, 2021
                                ___________
 
 Introduced  by Sen. KAVANAGH -- 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:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06188-01-1

 S. 2953                             2
 
   (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.
   § 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 TWENTY, AND ON EACH OCTOBER FIRST THEREAFT-
 ER, 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 (J) 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.
   §  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 (j) to read as follows:
   (J)  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.
   § 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.

 S. 2953                             3
 
         452. ANNUAL ASSESSMENT.
   §  450. DEFINITION. "THIRD PARTY STANDARD" MEANS A RECOGNIZED STANDARD
 FOR DEFINING, REPORTING, AND ASSESSING  BUSINESS'  SOCIAL  AND  ENVIRON-
 MENTAL 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
   (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.
   §  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 TWENTY, AND ON EACH OCTO-
 BER  FIRST  THEREAFTER,  TO THE GOVERNOR, THE CHAIRPERSONS OF THE SENATE
 COMMITTEES ON FINANCE, COMMERCE, ECONOMIC DEVELOPMENT  AND  SMALL  BUSI-
 NESS, AND CORPORATIONS, AUTHORITIES AND COMMISSIONS, THE CHAIRPERSONS OF
 THE  ASSEMBLY COMMITTEES ON WAYS AND MEANS, ECONOMIC DEVELOPMENT, CORPO-
 RATIONS, 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.
   § 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

 S. 2953                             4
 
 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
 AFTER THE EFFECTIVE DATE OF THIS SECTION. THE  DEPARTMENT  MAY  USE  ANY
 FUNDS NECESSARY TO ADMINISTER AND IMPLEMENT THIS SECTION.
   § 5. This act shall take effect immediately.

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