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

* 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