NY State Senate Bill 2025-S7730

Senate Bill S7730

2025-2026 Legislative Session

Requires state contracts with construction firms reserve five percent of such contract to discretionary spending towards small businesses

download bill text pdf

Current Bill Status - In Senate Committee Finance 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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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 13, 2025	reported and committed to finance
May 02, 2025	referred to procurement and contracts

Votes

- May 13, 2025 - Procurement And Contracts Committee Vote
  S7730
  
  5
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Procurement And Contracts Committee Vote: May 13, 2025
      
      aye (5)
      
      Baskin
      
      Brisport
      
      Comrie
      
      Sanders Jr.
      
      Webb
      
      aye wr (2)
      
      Martins
      
      Rhoads

2025-S7730 (ACTIVE) - Details

Current Committee:: Senate Finance
Law Section:: State Finance Law
Laws Affected:: Add §136-e, St Fin L

2025-S7730 (ACTIVE) - Summary

Requires state contracts with construction firms reserve five percent of such contract to discretionary spending towards small businesses located near the construction site; defines what qualifies as discretionary spending.

2025-S7730 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7730

SPONSOR: BASKIN
 
TITLE OF BILL:

An act to amend the state finance law, in relation to requiring
construction contracts entered into by the state include a provision on
the spending of discretionary funding

 
PURPOSE:

To support local economic development by requiring all construction
management firms contracted on state-funded construction projects to
submit a "spend plan" that commits to allocating at least 5% of the
total project cost toward discretionary purchases from small businesses
located within a 10-mile radius of the construction site.

 
SUMMARY OF SPECIFIC PROVISIONS:

This bill adds a new section 136-e to the state finance law, which:
Subdivision 1 defines key terms, including:

*"Discretionary spending" as soft costs and non-construction specific
materials, including office supplies, catering, maintenance materials,
and vendor services.

*"Professional firm" as any legal entity permitted by law to practice
the profession of construction.

*"Small business" as defined in Section 131 of the Economic Development
Law.

*"State department" as any department, division, or commission author-
ized to enter into contracts on behalf of the state.

Subdivision 2 requires professional firms entering into construction
contracts with the state to submit a "spend plan" outlining how at least
5% of the total project cost will be spent on discretionary purchases
from small businesses within a 10-mile radius of the construction site.

Subdivision 3 obligates professional firms to submit a "spend plan" to
the contracting state department before contract execution, detailing
how the required discretionary spending will be fulfilled in accordance
with the geographic and percentage criteria.

Section 2 states the act shall take effect immediately and apply only to
contracts executed on or after the effective date.

 
JUSTIFICATION:

State-funded construction projects are often the only new projects
occurring in many cities, towns, villages, and counties with limited or
no privately funded projects. While state law currently includes goals
for subcontracting and workforce hiring, there is no requirement or
guidance on how construction firms spend discretionary funds-soft costs
and non-construction- specific materials.

This bill addresses, that gap by requiring professional firms entering
into contracts with the state to submit a "spend plan" allocating five
percent of the total contract amount toward discretionary spending with
small businesses located within a ten-mile radius of the construction
site. This requirement will help ensure that the economic activity
generated by state construction projects also benefits local small busi-
nesses-those often most dependent on nearby development for sustained
growth and survival.  This program would help multiply the local invest-
ment factor by not only the construction project's direct investment,
but also the ancillary spending that occurs from construction projects.

 
LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:.

Costs can likely be absorbed into other regulatory processes for utili-
zation and workforce usage.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply only to contracts
executed on or after such effective date.

2025-S7730 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7730
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                May 2, 2025
                                ___________
 
 Introduced  by  Sen.  BASKIN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Procurement and Contracts
 
 AN ACT to  amend  the  state  finance  law,  in  relation  to  requiring
   construction  contracts  entered into by the state include a provision
   on the spending of discretionary funding

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  state finance law is amended by adding a new section
 136-e to read as follows:
   § 136-E. DISCRETIONARY SPENDING FOR CONSTRUCTION CONTRACTS. 1. FOR THE
 PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE  THE  FOLLOWING
 MEANINGS:
   (A)  "DISCRETIONARY  SPENDING" SHALL MEAN SOFT COSTS AND NON-CONSTRUC-
 TION SPECIFIC MATERIALS, INCLUDING, BUT NOT LIMITED TO:
   (I) OFFICE SUPPLIES;
   (II) CATERING;
   (III) MAINTENANCE MATERIALS; AND
   (IV) VENDOR SERVICES.
   (B) "PROFESSIONAL FIRM" SHALL MEAN ANY INDIVIDUAL OR SOLE  PROPRIETOR-
 SHIP,  PARTNERSHIP,  CORPORATION,  ASSOCIATION  OR  OTHER  LEGAL  ENTITY
 PERMITTED BY LAW TO PRACTICE THE PROFESSION OF CONSTRUCTION.
   (C) "SMALL BUSINESS" SHALL HAVE THE  SAME  MEANING  AS  SUCH  TERM  IS
 DEFINED  IN  SECTION  ONE HUNDRED THIRTY-ONE OF THE ECONOMIC DEVELOPMENT
 LAW.
   (D) "STATE DEPARTMENT" SHALL MEAN STATE GOVERNMENT DEPARTMENTS,  DIVI-
 SIONS  OR  COMMISSIONS  EMPOWERED BY THE STATE TO ENTER INTO CONTRACTUAL
 AGREEMENTS ON BEHALF OF THE STATE OF NEW YORK.
   2. IT IS THE POLICY OF NEW  YORK  STATE  TO  NEGOTIATE  CONTRACTS  FOR
 CONSTRUCTIONS  ON  THE  BASIS  THAT  SUCH  PROFESSIONAL FIRMS SPEND FIVE
 PERCENT OF SUCH CONTRACT ON  DISCRETIONARY  SPENDING  TO  SUPPORT  LOCAL
 SMALL BUSINESSES.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11688-01-5

 S. 7730                             2
 
   3.  ALL  PROFESSIONAL  FIRMS  PRIOR TO ENTERING INTO A CONTRACT WITH A
 STATE DEPARTMENT SHALL SUBMIT TO SUCH STATE DEPARTMENT A  SPENDING  PLAN
 ACCOUNTING  FOR  DISCRETIONARY SPENDING BY SUCH PROFESSIONAL FIRM DURING
 THE COURSE OF THE CONTRACT. THE SPENDING PLAN  SHALL  REQUIRE  THAT  ALL
 DISCRETIONARY  SPENDING  BE  SPENT ON SMALL BUSINESSES WITHIN A TEN-MILE
 RADIUS OF THE CONSTRUCTION SITE AND SUCH SPENDING PLAN SHALL ACCOUNT FOR
 FIVE PERCENT OF THE TOTAL COST OF CONTRACT.
   § 2. This act shall take effect immediately and shall  only  apply  to
 contracts executed on or after such effective date.

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