What's happening
This bill requires businesses receiving $100,000 or more in state aid or tax benefits to annually assess and report their social and environmental impacts using an independent third-party standard.
Why it matters
Increases accountability for state-supported businesses. By mandating annual third-party assessments, the bill ensures that companies benefiting from significant public funds demonstrate their social and environmental impact, providing taxpayers with greater transparency on how state resources are used.
Establishes clear and credible standards. The requirement that assessments use an independent, multi-stakeholder-developed standard—rather than a self-created or government-created one—aims to prevent conflicts of interest and bolster the credibility and comparability of reported outcomes.
Promotes ongoing government oversight and public disclosure. The law mandates annual aggregate reporting to the governor and legislative committees, potentially influencing future funding decisions and enabling policymakers and the public to track trends and hold entities accountable for their performance.
Encourages broader consideration of social and environmental factors. By explicitly defining assessment criteria to include employee welfare, customer interests, community impact, and environmental stewardship, the bill pressures businesses to go beyond financial metrics and consider their wider societal responsibilities.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Businesses receiving state development aid
Recipients of $100,000 or more in funding, or tax benefit assistance, approved by the Urban Development Corporation or Department of Economic Development would have to submit annual social and environmental impact assessments.
Urban Development Corporation and Department of Economic Development
Both agencies would have to select independent third-party standards and report aggregate assessment results, including results by funding level, to the governor and designated legislative committee chairs annually.
Workers, customers and communities affected by aid recipients
The required assessments would examine businesses’ effects on employees, customers, communities and the environment, including effects involving subsidiaries and suppliers.
Independent social and environmental standard-setting organizations
Their standards could be selected only if they meet requirements for expertise, stakeholder participation, public comment and disclosure of criteria, governance and financial support.
Headline styles
Audit State-Funded Businesses' Impact
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to corporations, authorities and commissions
Full text
4 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1788
2017-2018 Regular Sessions
IN SENATE
January 10, 2017
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 business 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 Assembly, 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 community 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.
LBD02372-01-7
S. 1788 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 interest.
§ 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 thereafter, to the governor, the chairpersons of the senate committees on finance, commerce, economic development and small business, and corporations, 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 environmental 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 aggregate 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 (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 environmental 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 corporation 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 administer 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. 1788 3
452. Annual assessment.
§ 450. Definition. "Third-party standard" means 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 community 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 interest.
§ 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 annual 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 chairpersons of the assembly committees on ways and means, economic development, 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.
§ 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 assistance 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. 1788 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.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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
2016: S7767 - REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
Fiscal implications
None
Effective date
Immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.