NY State Senate Bill 2025-S7730A

Senate Bill S7730A

2025-2026 Legislative Session

Requires state contracts with construction firms reserve a percent of such contract to soft cost 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
Jun 03, 2025	print number 7730a
Jun 03, 2025	amend (t) and recommit to finance
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
  S7730A
  
  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

Bill Amendments

Original

A (Active)

2025-S7730 - Details

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

2025-S7730 - Summary

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

2025-S7730 - 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 - 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.

2025-S7730A (ACTIVE) - Details

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

2025-S7730A (ACTIVE) - Summary

2025-S7730A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7730A

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 soft cost 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 20% of the
total anticipated soft costs (or 15% for smaller cities) toward soft
cost 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:

*"Soft cost" as 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 agency" shall have the same meaning as defined in subsection
nine of section one hundred and sixty of this article.  Subdivision 2
requires professional firms entering into construction contracts with
the state to submit a "spend plan" outlining how at least a percent of
the total project cost will be spent on soft cost purchases from small
businesses within a 10-mile radius of the construction site.

The spending plan shall account for 20% 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 15% of the total anticipated soft costs
as listed in the spending plan.

Subdivision 3 obligates professional firms to submit a "spend plan" to
the contracting state agency before contract execution, detailing how
the required soft cost 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 soft cost funds-soft costs and
non-constructionspecific 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 soft cost 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-S7730A (ACTIVE) - Bill Text download pdf

                             
                     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.

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