Senate Bill S7730A

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7730--A
 
                        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
   -- reported favorably from said committee and committed to the Commit-
   tee   on  Finance  --  committee  discharged,  bill  amended,  ordered
   reprinted as amended and recommitted to said committee

 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 soft cost 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. SOFT COST SPENDING FOR CONSTRUCTION  CONTRACTS.  1.  FOR  THE
 PURPOSES  OF  THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
 MEANINGS:
   (A) "SOFT COSTS" (I) SHALL MEAN PURCHASES OF NON-CONSTRUCTION SPECIFIC
 MATERIALS AND SERVICES, INCLUDING, BUT NOT LIMITED TO:
   (1) OFFICE SUPPLIES;
   (2) CATERING;
   (3) MAINTENANCE MATERIALS; AND
   (4) SECURITY SERVICES; AND
   (II) SHALL NOT MEAN:
   (1) PRE-CONSTRUCTION COSTS, INCLUDING LEGAL SERVICES,  SITE  PLANNING,
 ARCHITECTURAL, AND ENGINEERING COSTS; OR
   (2) LABOR DIRECTLY RELATED TO THE CONSTRUCTION PROJECT.
   (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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11688-02-5
              

 S. 7730--A                          2
 
   (D)  "STATE AGENCY" SHALL HAVE THE SAME MEANING AS DEFINED IN SUBDIVI-
 SION NINE OF SECTION ONE HUNDRED SIXTY OF THIS ARTICLE.
   2.  IT  IS  THE  POLICY  OF  NEW YORK STATE TO NEGOTIATE CONTRACTS FOR
 CONSTRUCTIONS ON THE BASIS THAT SUCH PROFESSIONAL FIRMS SPEND A  PERCENT
 OF SUCH CONTRACT ON SOFT COSTS TO SUPPORT LOCAL SMALL BUSINESSES.
   3.  (A)  PRIOR  TO  ENTERING  INTO A CONTRACT WITH A STATE AGENCY, ALL
 PROFESSIONAL FIRMS SHALL SUBMIT TO SUCH STATE  AGENCY  A  SPENDING  PLAN
 ACCOUNTING  FOR  ITS ANTICIPATED SOFT COST SPENDING DURING THE COURSE OF
 THE CONTRACT. THE SPENDING PLAN SHALL REQUIRE THAT ALL SOFT COST  SPEND-
 ING  BE  SPENT  ON  SMALL  BUSINESSES  WITHIN  A  TEN-MILE RADIUS OF THE
 CONSTRUCTION SITE.  IF A PROFESSIONAL FIRM SHOWS IT HAS EXHAUSTED UTILI-
 ZATION OF ALL APPLICABLE SMALL BUSINESSES WITHIN A TEN-MILE  RADIUS  AND
 HAS STILL NOT REACHED ITS SPENDING PLAN GOAL, IT MAY UTILIZE SMALL BUSI-
 NESSES  LOCATED  WITHIN  THE  COUNTY  IN  WHICH THE CONSTRUCTION SITE IS
 LOCATED. THE SPENDING PLAN SHALL ACCOUNT FOR TWENTY PERCENT OF THE TOTAL
 ANTICIPATED  SOFT  COSTS  AS  LISTED  IN  THE  SPENDING  PLAN   IF   THE
 CONSTRUCTION  SITE IS LOCATED IN A CITY WITH A POPULATION OF ONE MILLION
 OR MORE; FOR CONSTRUCTION SITES LOCATED  IN  CITIES  WITH  A  POPULATION
 FEWER  THAN  ONE  MILLION,  THE  SPENDING PLAN SHALL ACCOUNT FOR FIFTEEN
 PERCENT OF THE TOTAL AMOUNT OF ANTICIPATED SOFT COSTS AS LISTED  IN  THE
 SPENDING PLAN.
   (B)  THE  PROFESSIONAL  FIRM  SHALL  SUBMIT  A REPORT OF ITS SOFT COST
 SPENDING TO SUCH STATE AGENCY ON A  QUARTERLY  BASIS.  THE  PROFESSIONAL
 FIRM SHALL INDICATE IN ITS REPORT IF ANY OF ITS ACTUAL SPENDING DIFFERED
 FROM  THE LOCAL SMALL BUSINESSES LISTED IN ITS SPENDING PLAN. SUCH STATE
 AGENCY SHALL REVIEW  EACH  REPORT  TO  DETERMINE  COMPLIANCE  WITH  THIS
 SECTION  AND  NOTIFY THE PROFESSIONAL FIRM IF IT IS FOUND TO BE NON-COM-
 PLIANT. IF SUCH STATE AGENCY DETERMINES THAT A PROFESSIONAL FIRM IS  OUT
 OF  COMPLIANCE  FOR  TWO OR MORE CONSECUTIVE QUARTERS, SUCH STATE AGENCY
 RESERVES THE RIGHT TO WITHHOLD FUTURE PUBLIC FUNDING TO THE PROFESSIONAL
 FIRM UNTIL THE SOFT COST SPENDING COMPLIANCE IS RECTIFIED.
   (C) SPENDING GOALS WITHIN THIS SECTION OF LAW SHALL NOT CONFLICT  WITH
 OR  MODIFY  ALREADY EXISTING OR FUTURE PARTICIPATION GOALS FOR THE STATE
 TO CONTRACT  WITH  MINORITY  AND  WOMEN-OWNED  BUSINESS  ENTERPRISES  IN
 ACCORDANCE WITH ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW.
   §  2.  This  act shall take effect immediately and shall only apply to
 contracts executed on or after such effective date.