NY State Senate Bill 2025-S8284A

Senate Bill S8284A

2025-2026 Legislative Session

Relates to the utilization of minority and women-owned business enterprises, service-disabled veteran-owned businesses, small businesses and microbusinesses by businesses operating in state-funded buildings

download bill text pdf

Current Bill Status - In Senate Committee Procurement And Contracts 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 09, 2025	print number 8284a
Jun 09, 2025	amend (t) and recommit to procurement and contracts
May 30, 2025	referred to procurement and contracts

Bill Amendments

Original

A (Active)

2025-S8284 - Details

Current Committee:: Senate Procurement And Contracts
Law Section:: Executive Law
Laws Affected:: Add Art 16-B §§340 - 343, Exec L

2025-S8284 - Summary

Relates to the utilization of minority and women-owned business enterprises, service-disabled veteran-owned businesses, small businesses and microbusinesses in state-funded construction projects; directs the empire state development corporation, in consultation with other state agencies, to develop a state division of post-construction commitments and compliance to create rules and regulations for private businesses operating in buildings constructed using state funding to have certain employment goals and living wage requirements, annual minority and women-owned business enterprise, certified service-disabled veteran-owned business, small business and microbusiness utilization goals for maintenance and operations spending, and a community grant program; directs the state division of post-construction commitments and compliance to establish a post-construction compliance review board; provides penalties for noncompliance.

2025-S8284 - Sponsor Memo

                                 
BILL NUMBER: S8284

SPONSOR: BASKIN
 
TITLE OF BILL:

An act to amend the executive law, in relation to the utilization of
minority and women-owned business enterprises, service-disabled veter-
an-owned businesses, small businesses and microbusinesses in
construction projects using state funding

 
PURPOSE:

This bill establishes Article 16-B of the Executive Law to ensure that
private entities operating state-funded construction projects meet post-
construction community benefit and diversity utilization requirements.
It arranges minority and women-owned business enterprises (MWBEs),
service-disabled veteran-owned businesses (SDVOBs), small businesses,
and microbusinesses participation in operational and maintenance spend-
ing post-construction and ensures economic and social equity through a
comprehensive compliance and enforcement framework.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 adds Article 16-B to the Executive Law:

* § 340 Definitions: Establishes clear definitions for "minority-owned
business enterprise," "women-owned business enterprise," "certified
service-disabled veteran-owned business," "small business," "microbusi-
ness," "operating business," and other key terms used in the article.

* § 341 State Division of Post-Construction Commitments and Compliance:

* Empowers Empire State Development, in consultation with other agen-
cies, to establish regulations for post-construction obligations.

* Requires employment goals, living wage standards, and annual spending
goals for MWBEs, SDVOBs, small and microbusinesses.

* Establishes a community grant program equaling 5% of the state's
investment in a project.

* Requires community assessments and planning where public land is with-
in a two-mile radius.

* § 342 Post-Construction Compliance Review Board:

* Establishes a five-member compliance review board appointed by the
Governor and confirmed by the Senate.

* Grants the board authority to grade compliance, waive regulations
under certain community benefit agreements, and serve as compliance
officers.

* § 343 Penalties for Non-Compliance:

* Authorizes the withholding of state funds, future funding ineligibil-
ity, and collection of liquidated damages from businesses failing to
meet compliance obligations.

Section 2 establishes the act's effective date as the 180th day after
becoming law, with immediate authority to promulgate necessary rules and
regulations.

 
JUSTIFICATION:

This bill ensures that the economic and equity goals tied to state-fund-
ed construction projects continue after construction is complete. Too
often, commitments to minority- and women-owned businesses, service-dis-
abled veteran-owned businesses, small and microbusinesses end once the
project is built.

By establishing enforceable post-construction spending goals, local
hiring requirements, and a community grant program, this legislation
guarantees ongoing investment in underserved communities. It creates a
compliance division and review board to monitor results, enforce stand-
ards, and apply penalties when businesses fail to meet obligations.

This bill closes a critical gap in state contracting policy, ensuring
that public investment delivers long-term, inclusive economic benefits
across New York.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become law. Effective immediately, any necessary rules or
regulations are to be made in advance of the effective date.

2025-S8284 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8284
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               May 30, 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 executive law, in relation  to  the  utilization  of
   minority and women-owned business enterprises, service-disabled veter-
   an-owned   businesses,   small   businesses   and  microbusinesses  in
   construction projects using state funding
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The executive law is amended by adding a new article 16-B
 to read as follows:
                                ARTICLE 16-B
         MWBE, SDVOB, SMALL BUSINESS AND MICROBUSINESS UTILIZATION
                   IN STATE-FUNDED CONSTRUCTION PROJECTS
 SECTION 340. DEFINITIONS.
         341. STATE DIVISION OF POST-CONSTRUCTION COMMITMENTS AND COMPLI-
                ANCE.
         342. POST-CONSTRUCTION COMPLIANCE REVIEW BOARD.
         343. PENALTIES FOR NON-COMPLIANCE.
   § 340. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   1. "MINORITY-OWNED BUSINESS ENTERPRISE" SHALL MEAN A  BUSINESS  ENTER-
 PRISE,  INCLUDING  A SOLE PROPRIETORSHIP, PARTNERSHIP, LIMITED LIABILITY
 COMPANY OR CORPORATION THAT IS:
   (A) AT LEAST FIFTY-ONE PERCENT OWNED BY ONE  OR  MORE  MINORITY  GROUP
 MEMBERS;
   (B)  AN  ENTERPRISE IN WHICH SUCH MINORITY OWNERSHIP IS REAL, SUBSTAN-
 TIAL AND CONTINUING;
   (C) AN ENTERPRISE IN WHICH SUCH MINORITY OWNERSHIP HAS  AND  EXERCISES
 THE AUTHORITY TO CONTROL INDEPENDENTLY THE DAY-TO-DAY BUSINESS DECISIONS
 OF THE ENTERPRISE;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13270-01-5
 S. 8284                             2

 
   (D)  AN  ENTERPRISE  AUTHORIZED TO DO BUSINESS IN THIS STATE AND INDE-
 PENDENTLY OWNED AND OPERATED;
   (E)  AN ENTERPRISE OWNED BY AN INDIVIDUAL OR INDIVIDUALS, WHOSE OWNER-
 SHIP, CONTROL AND OPERATION ARE RELIED UPON FOR  CERTIFICATION,  WITH  A
 PERSONAL  NET  WORTH  THAT  DOES NOT EXCEED FIFTEEN MILLION DOLLARS, AND
 SUCH OTHER AMOUNT AS THE DIRECTOR SHALL SET  FORTH  IN  REGULATIONS,  AS
 ADJUSTED ANNUALLY ON THE FIRST OF JANUARY FOR INFLATION ACCORDING TO THE
 CONSUMER PRICE INDEX OF THE PREVIOUS YEAR; AND
   (F)  AN  ENTERPRISE  THAT  IS A SMALL BUSINESS PURSUANT TO SUBDIVISION
 FOUR OF THIS SECTION.
   2. "WOMEN-OWNED BUSINESS ENTERPRISE" SHALL MEAN A BUSINESS ENTERPRISE,
 INCLUDING A SOLE PROPRIETORSHIP, PARTNERSHIP, LIMITED LIABILITY  COMPANY
 OR CORPORATION THAT IS:
   (A)  AT  LEAST  FIFTY-ONE  PERCENT  OWNED BY ONE OR MORE UNITED STATES
 CITIZENS OR PERMANENT RESIDENT NONCITIZENS WHO ARE WOMEN;
   (B) AN ENTERPRISE IN WHICH THE OWNERSHIP INTEREST  OF  SUCH  WOMEN  IS
 REAL, SUBSTANTIAL AND CONTINUING;
   (C)  AN ENTERPRISE IN WHICH SUCH WOMEN OWNERSHIP HAS AND EXERCISES THE
 AUTHORITY TO CONTROL INDEPENDENTLY THE DAY-TO-DAY BUSINESS DECISIONS  OF
 THE ENTERPRISE;
   (D)  AN  ENTERPRISE  AUTHORIZED TO DO BUSINESS IN THIS STATE AND INDE-
 PENDENTLY OWNED AND OPERATED;
   (E) AN ENTERPRISE OWNED BY AN INDIVIDUAL OR INDIVIDUALS, WHOSE  OWNER-
 SHIP,  CONTROL  AND  OPERATION ARE RELIED UPON FOR CERTIFICATION, WITH A
 PERSONAL NET WORTH THAT DOES NOT EXCEED  FIFTEEN  MILLION  DOLLARS,  AND
 SUCH  OTHER  AMOUNT  AS  THE DIRECTOR SHALL SET FORTH IN REGULATIONS, AS
 ADJUSTED ANNUALLY ON THE FIRST OF JANUARY FOR INFLATION ACCORDING TO THE
 CONSUMER PRICE INDEX OF THE PREVIOUS YEAR; AND
   (F) AN ENTERPRISE THAT IS A SMALL  BUSINESS  PURSUANT  TO  SUBDIVISION
 FOUR OF THIS SECTION.
   3.  "CERTIFIED  SERVICE-DISABLED  VETERAN-OWNED  BUSINESS  ENTERPRISE"
 SHALL MEAN A BUSINESS ENTERPRISE, INCLUDING A SOLE PROPRIETORSHIP, PART-
 NERSHIP, LIMITED LIABILITY COMPANY OR CORPORATION THAT IS:
   (A) AT LEAST FIFTY-ONE PERCENT OWNED BY ONE OR  MORE  SERVICE-DISABLED
 VETERANS;
   (B)  AN ENTERPRISE IN WHICH SUCH SERVICE-DISABLED VETERAN OWNERSHIP IS
 REAL, SUBSTANTIAL, AND CONTINUING;
   (C) AN ENTERPRISE IN WHICH SUCH SERVICE-DISABLED VETERAN OWNERSHIP HAS
 AND EXERCISES THE AUTHORITY  TO  CONTROL  INDEPENDENTLY  THE  DAY-TO-DAY
 BUSINESS DECISIONS OF THE ENTERPRISE;
   (D) AN ENTERPRISE AUTHORIZED TO DO BUSINESS IN THIS STATE AND IS INDE-
 PENDENTLY OWNED AND OPERATED;
   (E)  AN  ENTERPRISE  THAT  IS A SMALL BUSINESS WHICH HAS A SIGNIFICANT
 BUSINESS PRESENCE IN THE STATE, NOT DOMINANT IN ITS FIELD  AND  EMPLOYS,
 BASED  ON ITS INDUSTRY, A CERTAIN NUMBER OF PERSONS AS DETERMINED BY THE
 DIRECTOR OF THE DIVISIONS OF SERVICE-DISABLED VETERANS' BUSINESS  DEVEL-
 OPMENT,  BUT  NOT  TO  EXCEED  THREE  HUNDRED, TAKING INTO CONSIDERATION
 FACTORS WHICH INCLUDE, BUT ARE NOT LIMITED TO,  FEDERAL  SMALL  BUSINESS
 ADMINISTRATION  STANDARDS PURSUANT TO 13 CFR PART 121 AND ANY AMENDMENTS
 THERETO; AND
   (F) CERTIFIED BY THE OFFICE OF GENERAL SERVICES.
   4. "SMALL BUSINESS" SHALL MEAN A BUSINESS THAT IS NOT DOMINANT IN  ITS
 FIELD AND HAS ONE HUNDRED EMPLOYEES OR LESS.
   5.  "MICROBUSINESS"  SHALL MEAN A BUSINESS THAT IS NOT DOMINANT IN ITS
 FIELD AND HAS FIVE OR FEWER EMPLOYEES.
 S. 8284                             3
 
   6. "OPERATING BUSINESS" SHALL MEAN  A  PRIVATE  BUSINESS  OPERATING  A
 CONSTRUCTION  PROJECT  WITH  STATE AGENCY FUNDING OR ON LAND LEASED FROM
 THE STATE OF NEW YORK.
   7.  "THE  DIVISION" SHALL MEAN THE STATE DIVISION OF POST-CONSTRUCTION
 COMMITMENTS AND COMPLIANCE ESTABLISHED PURSUANT TO SECTION THREE HUNDRED
 FORTY-ONE OF THIS ARTICLE.
   8. "THE BOARD" SHALL  MEAN  THE  POST-CONSTRUCTION  COMPLIANCE  REVIEW
 BOARD  ESTABLISHED  PURSUANT  TO SECTION THREE HUNDRED FORTY-TWO OF THIS
 ARTICLE.
   9. "MINORITY GROUP MEMBER" SHALL  MEAN  A  UNITED  STATES  CITIZEN  OR
 PERMANENT  RESIDENT  NONCITIZEN WHO IS AND CAN DEMONSTRATE MEMBERSHIP IN
 ONE OF THE FOLLOWING GROUPS:
   (A) BLACK PERSONS HAVING ORIGINS IN ANY OF THE  BLACK  AFRICAN  RACIAL
 GROUPS;
   (B)  HISPANIC/LATINO  PERSONS  OF  MEXICAN,  PUERTO  RICAN, DOMINICAN,
 CUBAN, CENTRAL OR SOUTH AMERICAN OF EITHER INDIAN  OR  HISPANIC  ORIGIN,
 REGARDLESS OF RACE;
   (C) NATIVE AMERICAN OR ALASKAN NATIVE PERSONS HAVING ORIGINS IN ANY OF
 THE ORIGINAL PEOPLES OF NORTH AMERICA; OR
   (D)  ASIAN  AND  PACIFIC ISLANDER PERSONS HAVING ORIGINS IN ANY OF THE
 FAR EAST COUNTRIES, SOUTH EAST ASIA,  THE  INDIAN  SUBCONTINENT  OR  THE
 PACIFIC ISLANDS.
   § 341. STATE DIVISION OF POST-CONSTRUCTION COMMITMENTS AND COMPLIANCE.
 1.  THE EMPIRE STATE DEVELOPMENT CORPORATION, IN CONSULTATION WITH OTHER
 STATE AGENCIES INCLUDING, BUT NOT LIMITED  TO,  THE  OFFICE  OF  GENERAL
 SERVICES, THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY, AND THE DEPART-
 MENT  OF  STATE,  SHALL  DEVELOP  A  STATE DIVISION OF POST-CONSTRUCTION
 COMMITMENTS AND COMPLIANCE TO CREATE RULES AND REGULATIONS  FOR  PRIVATE
 BUSINESSES  OPERATING STATE-FUNDED CONSTRUCTION PROJECTS TO HAVE EMPLOY-
 MENT GOALS AND LIVING WAGE REQUIREMENTS, ANNUAL MINORITY AND WOMEN-OWNED
 BUSINESS ENTERPRISE, CERTIFIED SERVICE-DISABLED VETERAN-OWNED  BUSINESS,
 SMALL  BUSINESS  AND MICROBUSINESS UTILIZATION GOALS FOR MAINTENANCE AND
 OPERATIONS SPENDING, AND A COMMUNITY GRANT PROGRAM.
   2. SUCH RULES AND REGULATIONS SHALL APPLY TO STATE-FUNDED CONSTRUCTION
 PROJECTS THAT ARE EITHER:
   (A) OPERATED BY PRIVATE COMPANIES AND STATE-FINANCED  AT  ONE  MILLION
 DOLLARS   OR   MORE,   INCLUDING   TAX  SUBSIDIES,  LAND  VALUATION,  OR
 CONSTRUCTION INVESTMENT; OR
   (B) OPERATED BY PRIVATE COMPANIES THAT ARE LEASING STATE-OWNED LAND OR
 PROPERTY.
   3. UNLESS THE OPERATING BUSINESS HAS  A  UNIONIZED  WORKFORCE  AT  THE
 STATE-FUNDED  CONSTRUCTION  PROJECT,  AT  LEAST  TWENTY-FIVE  PERCENT OF
 EMPLOYEES WORKING ON SUCH CONSTRUCTION PROJECT  SHALL  BE  RESIDENTS  OF
 DISADVANTAGED  ZIP  CODES,  AND  THE  OPERATING BUSINESS SHALL PROVIDE A
 LIVING WAGE FOR EMPLOYEES OF SUCH CONSTRUCTION PROJECTS.
   4. (A) AN OPERATING BUSINESS SHALL UTILIZE  MINORITY  AND  WOMEN-OWNED
 BUSINESS  ENTERPRISES,  CERTIFIED  SERVICE-DISABLED  VETERAN-OWNED BUSI-
 NESSES, SMALL BUSINESSES AND MICROBUSINESSES FOR  SUCH  OPERATING  BUSI-
 NESS'S  ANNUAL SPENDING ON OPERATIONS AND MAINTENANCE, INCLUDING BUT NOT
 LIMITED TO VENDORS, SUPPLIES, CATERING AND SECURITY, IN ACCORDANCE  WITH
 THE FOLLOWING GOALS:
   (I)  FIFTEEN  PERCENT  OF  SUCH  SPENDING SHALL BE WITH MINORITY-OWNED
 BUSINESS ENTERPRISES;
   (II) FIFTEEN PERCENT OF SUCH SPENDING SHALL BE WITH WOMEN-OWNED  BUSI-
 NESS ENTERPRISES;
 S. 8284                             4
 
   (III)  SIX  PERCENT  OF SUCH SPENDING SHALL BE WITH CERTIFIED SERVICE-
 DISABLED VETERAN-OWNED BUSINESSES;
   (IV) TEN PERCENT OF SUCH SPENDING SHALL BE WITH SMALL BUSINESSES; AND
   (V) FIVE PERCENT OF SUCH SPENDING SHALL BE WITH MICROBUSINESSES.
   (B)  IF  AN OPERATING BUSINESS UTILIZES MINORITY AND WOMEN-OWNED BUSI-
 NESS ENTERPRISES AND CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESSES
 THAT ARE ALSO SMALL BUSINESSES, SUCH OPERATING BUSINESS'S SPENDING  WITH
 SUCH  CERTIFIED COMPANIES MAY COUNT FOR UP TO HALF OF THE SMALL BUSINESS
 SPENDING GOAL FOR SUCH YEAR.
   5. (A) THERE IS HEREBY ESTABLISHED WITHIN  THE  DIVISION  A  COMMUNITY
 GRANT  PROGRAM  FOR  THE  PURPOSE  OF  AWARDING  GRANTS  TO ENTITIES AND
 CONSTRUCTION PROJECTS THAT ADDRESS  SOCIO-ECONOMIC  DISPARITIES  IN  THE
 MUNICIPALITY IN WHICH THE OPERATING BUSINESS IS LOCATED.
   (B)  GRANTS AWARDED UNDER SUCH PROGRAM SHALL BE EQUAL TO AT LEAST FIVE
 PERCENT OF STATE INVESTMENT IN SUCH CONSTRUCTION PROJECT.
   (C) SUCH GRANT PROGRAM SHALL HAVE A PUBLIC  APPLICATION  PROCESS  MADE
 AVAILABLE  TO  NONPROFIT GROUPS AND AGENCIES RESIDING WITHIN THE PROJECT
 MUNICIPALITY. SUCH APPLICATION SHALL BE MADE AVAILABLE  BOTH  PHYSICALLY
 AND ELECTRONICALLY.
   6. WHERE THERE IS PUBLIC LAND OWNED BY A MUNICIPAL OR GOVERNMENT ENTI-
 TY  OR CORPORATION WITHIN A TWO-MILE RADIUS OF THE CONSTRUCTION PROJECT,
 THE DIVISION SHALL SUBMIT A DATA-DRIVEN ASSESSMENT AND SUGGESTED PLAN OF
 POST-CONSTRUCTION COMMUNITY COMMITMENTS FOLLOWING  TWO  PUBLIC  HEARINGS
 HELD BY THE DIVISION WITHIN THE MUNICIPALITY. SUCH PLAN SHALL BE SUBMIT-
 TED  TO  THE  MUNICIPALITY  FOR THE PURPOSES OF COMMUNITY BENEFITS TO BE
 CONSIDERED BEFORE LAND SALE BY THE MUNICIPALITY.
   7. THE DIVISION IS HEREBY AUTHORIZED TO PROMULGATE  ANY  RULES  AND/OR
 REGULATIONS NECESSARY TO EFFECTUATE THE PROVISIONS OF THIS ARTICLE.
   § 342. POST-CONSTRUCTION  COMPLIANCE  REVIEW  BOARD.  1.  THE DIVISION
 SHALL ESTABLISH A POST-CONSTRUCTION COMPLIANCE REVIEW BOARD.
   2. THE BOARD SHALL CONSIST OF FIVE MEMBERS  TO  BE  APPOINTED  BY  THE
 GOVERNOR AND APPROVED BY THE SENATE. THE BOARD SHALL HAVE REPRESENTATION
 FROM  EACH  OF THE FOLLOWING ECONOMIC DEVELOPMENT REGIONS AS ESTABLISHED
 UNDER ARTICLE ELEVEN OF THE ECONOMIC DEVELOPMENT  LAW:  CAPITAL  REGION,
 WESTERN NEW YORK, NEW YORK CITY, CENTRAL NEW YORK, AND LONG ISLAND.
   3.  THE  BOARD  SHALL  MEET  QUARTERLY  TO GRADE THE POST-CONSTRUCTION
 COMPLIANCE EFFORTS OF EACH OPERATING  BUSINESS  AND  DETERMINE  IF  SUCH
 OPERATING  BUSINESS'S CONSTRUCTION PROJECT MEETS EITHER THE GOALS OF THE
 DIVISION OR ANY COMMUNITY BENEFIT AGREEMENT  POST-CONSTRUCTION  MANDATES
 RELATED TO SUCH CONSTRUCTION PROJECT.
   4.  THE  DIVISION  SHALL CREATE AN ANNUAL REPORT OUTLINING A QUARTERLY
 GRADE AND A SUMMARY OF THE PROJECT'S  COMPLIANCE  EFFORTS.  SUCH  REPORT
 SHALL BE MADE AVAILABLE TO THE PUBLIC BY ELECTRONIC, DIGITAL OR PHYSICAL
 PUBLICATION.
   5.  IF  A  CONSTRUCTION PROJECT HAS A COMMUNITY BENEFIT AGREEMENT THAT
 LEGALLY MANDATES POST-CONSTRUCTION  COMMITMENTS,  THE  RULES  AND  REGU-
 LATIONS  OF  THE  DIVISION ESTABLISHED PURSUANT TO SECTION THREE HUNDRED
 FORTY-ONE OF THIS ARTICLE MAY BE WAIVED BY A MAJORITY VOTE OF THE BOARD.
   6. THE BOARD SHALL SERVE AS A COMPLIANCE OFFICER FOR  THE  ENFORCEMENT
 OF SUCH COMMUNITY BENEFIT AGREEMENT.
   § 343. PENALTIES FOR NON-COMPLIANCE. IF AN OPERATING BUSINESS IS FOUND
 NOT  TO  BE IN COMPLIANCE WITH ANY PROVISIONS OF THIS ARTICLE, THE DIVI-
 SION SHALL HAVE THE AUTHORITY TO:
   (A) WITHHOLD ANY PENDING STATE FUNDS UNTIL THE CONSTRUCTION PROJECT IS
 FOUND BY THE BOARD TO BE IN COMPLIANCE WITH THE PROVISIONS OF THIS ARTI-
 CLE;
 S. 8284                             5
 
   (B) PROHIBIT THE OPERATING BUSINESS AND ANY OF  SUCH  OPERATING  BUSI-
 NESS'S  SUBSIDIARIES  FROM RECEIVING ANY STATE FUNDING OR TAX INCENTIVES
 FOR A PERIOD OF FIVE YEARS; AND/OR
   (C)  SEEK  LIQUIDATED DAMAGES FOR THE PRO-RATA AMOUNT OF STATE INVEST-
 MENT IN THE CONSTRUCTION PROJECT.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law. Effective immediately, the addition,  amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such date.

2025-S8284A (ACTIVE) - Details

Current Committee:: Senate Procurement And Contracts
Law Section:: Executive Law
Laws Affected:: Add Art 16-B §§340 - 343, Exec L

2025-S8284A (ACTIVE) - Summary

2025-S8284A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8284A

SPONSOR: BASKIN
 
TITLE OF BILL:

An act to amend the executive law, in relation to the utilization of
minority and women-owned business enterprises, service-disabled veter-
an-owned businesses, small businesses and microbusinesses by private
businesses operating in buildings and other structures that were
constructed using state funding

 
PURPOSE:

This bill establishes Article 16-B of the Executive Law to ensure that
private businesses operating in buildings constructed with state fund-
ing, or on state-leased land, continue to meet post-construction diver-
sity, employment, and community benefit requirements. The bill mandates
the participation of minority and women-owned business enterprises
(MWBEs), service-disabled veteran-owned businesses (SDVOBs), small busi-
nesses, and microbusinesses in the operational and maintenance phases
post-construction, and promotes long-term economic equity through robust
compliance, reporting, and enforcement mechanisms.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 adds Article 16-B to the Executive Law:

*§ 340 Definitions: Establishes clear definitions for "minority-owned
business enterprise," "women-owned business enterprise," "certified
service-disabled veteran-owned business," "small business," "microbusi-
ness," "operating business," and "division," "board," and "minority
group member," along with "state investment."

*§ 341 State Division of Post-Construction Commitments and Compliance:

*Creates a division under Empire State Development to develop rules and
regulations for private businesses operating in state-funded buildings
or on state-leased land.

*Establishes utilization goals for MWBEs (15%), women-owned businesses
(15%), SDVOBs (6%), small businesses (10%), and microbusinesses (5%) for
operations and maintenance spending.

*Imposes a local hiring requirement: at least 25% of employees must
reside in disadvantaged zip codes (unless the business is unionized, in
which case union agreements apply).

*Requires payment of a living wage for employees.

*Creates a Community Grant Program, requiring grants equal to at least
5% of the state's construction investment to fund socioeconomic projects
in the municipality.

*Requires a data-driven community assessment and plan if the business is
within two miles of public land, following two public hearings.

*§ 342 Post-Construction Compliance Review Board:


*Establishes a five-member board appointed by the Governor and confirmed
by the Senate, with representation from major economic development
regions.

*Grades quarterly compliance efforts of operating businesses and over-
sees enforcement of community benefit agreements.

*Issues annual public reports detailing compliance.

*May waive certain regulatory requirements where a legally binding
community benefit agreement exists.

*§ 343 Penalties for Non-Compliance: Grants the division authority to:

*Withhold pending state funds;

*Bar non-compliant businesses and subsidiaries from receiving state
funds or tax incentives for five years;

*Collect liquidated damages proportional to the state's investment.

Section 2 sets the effective date as the 180th day after becoming law,
with immediate authority to promulgate necessary rules and regulations
in advance.

 
JUSTIFICATION:

This legislation addresses a significant gap in New York State's
contracting policies by ensuring that public investment continues to
generate inclusive economic benefits after construction ends. Too often,
commitments to MWBEs, SDVOBs, small and microbusinesses expire once
construction is complete. By establishing enforceable post-construction
goals, hiring standards, and a community grant program, this bill guar-
antees lasting support for disadvantaged communities.

The creation of a compliance division and review board will ensure tran-
sparency, accountability, and community engagement in the post-construc-
tion phase. This legislation promotes economic inclusion, uplifts small
enterprises, and ensures that state investments yield long-term value
for all New Yorkers.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become law. Effective immediately, the addition, amendment,
and/or repeal of any rule or regulation necessary for the implementation
of this act on its effective date are authorized to be made and
completed on or before such date.

2025-S8284A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8284--A
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               May 30, 2025
                                ___________
 
 Introduced  by  Sen.  BASKIN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Procurement and  Contracts
   --  committee  discharged,  bill amended, ordered reprinted as amended
   and recommitted to said committee
 
 AN ACT to amend the executive law, in relation  to  the  utilization  of
   minority and women-owned business enterprises, service-disabled veter-
   an-owned  businesses,  small businesses and microbusinesses by private
   businesses operating in  buildings  and  other  structures  that  were
   constructed using state funding
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The executive law is amended by adding a new  article  16-B
 to read as follows:
                                ARTICLE 16-B
         MWBE, SDVOB, SMALL BUSINESS AND MICROBUSINESS UTILIZATION
         FOR PRIVATE BUSINESSES OPERATING IN BUILDINGS CONSTRUCTED
                            WITH STATE FUNDING
 SECTION 340. DEFINITIONS.
         341. STATE DIVISION OF POST-CONSTRUCTION COMMITMENTS AND COMPLI-
                ANCE.
         342. POST-CONSTRUCTION COMPLIANCE REVIEW BOARD.
         343. PENALTIES FOR NON-COMPLIANCE.
   § 340. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   1.  "MINORITY-OWNED  BUSINESS ENTERPRISE" SHALL MEAN A BUSINESS ENTER-
 PRISE, INCLUDING A SOLE PROPRIETORSHIP, PARTNERSHIP,  LIMITED  LIABILITY
 COMPANY OR CORPORATION THAT IS:
   (A)  AT  LEAST  FIFTY-ONE  PERCENT OWNED BY ONE OR MORE MINORITY GROUP
 MEMBERS;
   (B) AN ENTERPRISE IN WHICH SUCH MINORITY OWNERSHIP IS  REAL,  SUBSTAN-
 TIAL AND CONTINUING;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13270-03-5

 S. 8284--A                          2
 
   (C)  AN  ENTERPRISE IN WHICH SUCH MINORITY OWNERSHIP HAS AND EXERCISES
 THE AUTHORITY TO CONTROL INDEPENDENTLY THE DAY-TO-DAY BUSINESS DECISIONS
 OF THE ENTERPRISE;
   (D)  AN  ENTERPRISE  AUTHORIZED TO DO BUSINESS IN THIS STATE AND INDE-
 PENDENTLY OWNED AND OPERATED;
   (E) AN ENTERPRISE OWNED BY AN INDIVIDUAL OR INDIVIDUALS, WHOSE  OWNER-
 SHIP,  CONTROL  AND  OPERATION ARE RELIED UPON FOR CERTIFICATION, WITH A
 PERSONAL NET WORTH THAT DOES NOT EXCEED  FIFTEEN  MILLION  DOLLARS,  AND
 SUCH  OTHER  AMOUNT  AS  THE DIRECTOR SHALL SET FORTH IN REGULATIONS, AS
 ADJUSTED ANNUALLY ON THE FIRST OF JANUARY FOR INFLATION ACCORDING TO THE
 CONSUMER PRICE INDEX OF THE PREVIOUS YEAR; AND
   (F) AN ENTERPRISE THAT IS A SMALL  BUSINESS  PURSUANT  TO  SUBDIVISION
 FOUR OF THIS SECTION.
   2. "WOMEN-OWNED BUSINESS ENTERPRISE" SHALL MEAN A BUSINESS ENTERPRISE,
 INCLUDING  A SOLE PROPRIETORSHIP, PARTNERSHIP, LIMITED LIABILITY COMPANY
 OR CORPORATION THAT IS:
   (A) AT LEAST FIFTY-ONE PERCENT OWNED BY  ONE  OR  MORE  UNITED  STATES
 CITIZENS OR PERMANENT RESIDENT NONCITIZENS WHO ARE WOMEN;
   (B)  AN  ENTERPRISE  IN  WHICH THE OWNERSHIP INTEREST OF SUCH WOMEN IS
 REAL, SUBSTANTIAL AND CONTINUING;
   (C) AN ENTERPRISE IN WHICH SUCH WOMEN OWNERSHIP HAS AND EXERCISES  THE
 AUTHORITY  TO CONTROL INDEPENDENTLY THE DAY-TO-DAY BUSINESS DECISIONS OF
 THE ENTERPRISE;
   (D) AN ENTERPRISE AUTHORIZED TO DO BUSINESS IN THIS  STATE  AND  INDE-
 PENDENTLY OWNED AND OPERATED;
   (E)  AN ENTERPRISE OWNED BY AN INDIVIDUAL OR INDIVIDUALS, WHOSE OWNER-
 SHIP, CONTROL AND OPERATION ARE RELIED UPON FOR  CERTIFICATION,  WITH  A
 PERSONAL  NET  WORTH  THAT  DOES NOT EXCEED FIFTEEN MILLION DOLLARS, AND
 SUCH OTHER AMOUNT AS THE DIRECTOR SHALL SET  FORTH  IN  REGULATIONS,  AS
 ADJUSTED ANNUALLY ON THE FIRST OF JANUARY FOR INFLATION ACCORDING TO THE
 CONSUMER PRICE INDEX OF THE PREVIOUS YEAR; AND
   (F)  AN  ENTERPRISE  THAT  IS A SMALL BUSINESS PURSUANT TO SUBDIVISION
 FOUR OF THIS SECTION.
   3.  "CERTIFIED  SERVICE-DISABLED  VETERAN-OWNED  BUSINESS  ENTERPRISE"
 SHALL MEAN A BUSINESS ENTERPRISE, INCLUDING A SOLE PROPRIETORSHIP, PART-
 NERSHIP, LIMITED LIABILITY COMPANY OR CORPORATION THAT IS:
   (A)  AT  LEAST FIFTY-ONE PERCENT OWNED BY ONE OR MORE SERVICE-DISABLED
 VETERANS;
   (B) AN ENTERPRISE IN WHICH SUCH SERVICE-DISABLED VETERAN OWNERSHIP  IS
 REAL, SUBSTANTIAL, AND CONTINUING;
   (C) AN ENTERPRISE IN WHICH SUCH SERVICE-DISABLED VETERAN OWNERSHIP HAS
 AND  EXERCISES  THE  AUTHORITY  TO  CONTROL INDEPENDENTLY THE DAY-TO-DAY
 BUSINESS DECISIONS OF THE ENTERPRISE;
   (D) AN ENTERPRISE AUTHORIZED TO DO BUSINESS IN THIS STATE AND IS INDE-
 PENDENTLY OWNED AND OPERATED;
   (E) AN ENTERPRISE THAT IS A SMALL BUSINESS  WHICH  HAS  A  SIGNIFICANT
 BUSINESS  PRESENCE  IN THE STATE, NOT DOMINANT IN ITS FIELD AND EMPLOYS,
 BASED ON ITS INDUSTRY, A CERTAIN NUMBER OF PERSONS AS DETERMINED BY  THE
 DIRECTOR OF THE DIVISION OF SERVICE-DISABLED VETERANS' BUSINESS DEVELOP-
 MENT, BUT NOT TO EXCEED THREE HUNDRED, TAKING INTO CONSIDERATION FACTORS
 WHICH  INCLUDE,  BUT ARE NOT LIMITED TO, FEDERAL SMALL BUSINESS ADMINIS-
 TRATION STANDARDS PURSUANT TO 13 CFR PART 121 AND ANY AMENDMENTS  THERE-
 TO; AND
   (F) CERTIFIED BY THE OFFICE OF GENERAL SERVICES.
   4.  "SMALL BUSINESS" SHALL MEAN A BUSINESS THAT IS NOT DOMINANT IN ITS
 FIELD AND HAS ONE HUNDRED EMPLOYEES OR LESS.
 S. 8284--A                          3
 
   5. "MICROBUSINESS" SHALL MEAN A BUSINESS THAT IS NOT DOMINANT  IN  ITS
 FIELD AND HAS FIVE OR FEWER EMPLOYEES.
   6.  "OPERATING  BUSINESS" SHALL MEAN A PRIVATE BUSINESS OPERATING IN A
 BUILDING, FACILITY OR OTHER STRUCTURE THAT WAS  CONSTRUCTED  WITH  STATE
 AGENCY FUNDING OR OPERATING ON LAND LEASED FROM THE STATE OF NEW YORK.
   7.  "THE  DIVISION" SHALL MEAN THE STATE DIVISION OF POST-CONSTRUCTION
 COMMITMENTS AND COMPLIANCE ESTABLISHED PURSUANT TO SECTION THREE HUNDRED
 FORTY-ONE OF THIS ARTICLE.
   8. "THE BOARD" SHALL  MEAN  THE  POST-CONSTRUCTION  COMPLIANCE  REVIEW
 BOARD  ESTABLISHED  PURSUANT  TO SECTION THREE HUNDRED FORTY-TWO OF THIS
 ARTICLE.
   9. "MINORITY GROUP MEMBER" SHALL  MEAN  A  UNITED  STATES  CITIZEN  OR
 PERMANENT  RESIDENT  NONCITIZEN WHO IS AND CAN DEMONSTRATE MEMBERSHIP IN
 ONE OF THE FOLLOWING GROUPS:
   (A) BLACK PERSONS HAVING ORIGINS IN ANY OF THE  BLACK  AFRICAN  RACIAL
 GROUPS;
   (B)  HISPANIC/LATINO  PERSONS  OF  MEXICAN,  PUERTO  RICAN, DOMINICAN,
 CUBAN, CENTRAL OR SOUTH AMERICAN OF EITHER INDIAN  OR  HISPANIC  ORIGIN,
 REGARDLESS OF RACE;
   (C) NATIVE AMERICAN OR ALASKAN NATIVE PERSONS HAVING ORIGINS IN ANY OF
 THE ORIGINAL PEOPLES OF NORTH AMERICA; OR
   (D)  ASIAN  AND  PACIFIC ISLANDER PERSONS HAVING ORIGINS IN ANY OF THE
 FAR EAST COUNTRIES, SOUTH EAST ASIA,  THE  INDIAN  SUBCONTINENT  OR  THE
 PACIFIC ISLANDS.
   10.  "STATE  INVESTMENT" SHALL MEAN THE AMOUNT OF STATE FUNDING IN THE
 CONSTRUCTION OF A STRUCTURE THAT IS TO BE OPERATED OR IS CURRENTLY OPER-
 ATED BY A PRIVATE BUSINESS. STATE INVESTMENT INCLUDES, BUT IS NOT LIMIT-
 ED TO, TAX SUBSIDIES, LAND  VALUATION,  CASH,  OR  OTHER  STATE-FINANCED
 FUNDING.
   § 341. STATE DIVISION OF POST-CONSTRUCTION COMMITMENTS AND COMPLIANCE.
 1.  THE EMPIRE STATE DEVELOPMENT CORPORATION, IN CONSULTATION WITH OTHER
 STATE AGENCIES INCLUDING, BUT NOT LIMITED  TO,  THE  OFFICE  OF  GENERAL
 SERVICES, THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY, AND THE DEPART-
 MENT  OF  STATE,  SHALL  DEVELOP  A  STATE DIVISION OF POST-CONSTRUCTION
 COMMITMENTS AND COMPLIANCE TO CREATE RULES AND REGULATIONS  FOR  PRIVATE
 BUSINESSES  OPERATING  IN STRUCTURES WHOSE CONSTRUCTION WAS STATE-FUNDED
 OR OPERATING ON LAND LEASED FROM THE STATE OF NEW YORK TO  HAVE  EMPLOY-
 MENT GOALS AND LIVING WAGE REQUIREMENTS, ANNUAL MINORITY AND WOMEN-OWNED
 BUSINESS  ENTERPRISE, CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS,
 SMALL BUSINESS AND MICROBUSINESS UTILIZATION GOALS FOR  MAINTENANCE  AND
 OPERATIONS SPENDING, AND A COMMUNITY GRANT PROGRAM.
   2. SUCH RULES AND REGULATIONS SHALL APPLY TO OPERATING BUSINESSES THAT
 ARE EITHER:
   (A)  OPERATED  BY PRIVATE COMPANIES IN STRUCTURES WITH A STATE INVEST-
 MENT OF ONE MILLION DOLLARS OR MORE, INCLUDING TAX SUBSIDIES, LAND VALU-
 ATION, OR CONSTRUCTION INVESTMENT; OR
   (B) OPERATED BY PRIVATE COMPANIES THAT ARE LEASING STATE-OWNED LAND OR
 PROPERTY.
   3. UNLESS THE OPERATING BUSINESS HAS A UNIONIZED WORKFORCE,  AT  LEAST
 TWENTY-FIVE  PERCENT  OF  EMPLOYEES WORKING ON SUCH CONSTRUCTION PROJECT
 SHALL BE RESIDENTS OF DISADVANTAGED ZIP CODES, AND THE  OPERATING  BUSI-
 NESS  SHALL PROVIDE A LIVING WAGE FOR EMPLOYEES.  WHERE A NEW YORK STATE
 COLLECTIVE BARGAINING UNION AGREEMENT HAS BEEN AGREED  UPON,  THE  DIVI-
 SION'S GUIDELINES FOR POST-CONSTRUCTION JOB CREATION SHALL BE WAIVED AND
 THE  DIVISION SHALL SERVE AS AN OVERSIGHT TO ENSURE JOB CREATION COMMIT-
 MENTS UNDER SUCH AGREEMENT ARE MET.
 S. 8284--A                          4

   4. (A) AN OPERATING BUSINESS SHALL UTILIZE  MINORITY  AND  WOMEN-OWNED
 BUSINESS  ENTERPRISES,  CERTIFIED  SERVICE-DISABLED  VETERAN-OWNED BUSI-
 NESSES, SMALL BUSINESSES AND MICROBUSINESSES FOR  SUCH  OPERATING  BUSI-
 NESS'S  ANNUAL SPENDING ON OPERATIONS AND MAINTENANCE, INCLUDING BUT NOT
 LIMITED  TO VENDORS, SUPPLIES, CATERING AND SECURITY, IN ACCORDANCE WITH
 THE FOLLOWING GOALS:
   (I) FIFTEEN PERCENT OF SUCH  SPENDING  SHALL  BE  WITH  MINORITY-OWNED
 BUSINESS ENTERPRISES;
   (II)  FIFTEEN PERCENT OF SUCH SPENDING SHALL BE WITH WOMEN-OWNED BUSI-
 NESS ENTERPRISES;
   (III) SIX PERCENT OF SUCH SPENDING SHALL BE  WITH  CERTIFIED  SERVICE-
 DISABLED VETERAN-OWNED BUSINESSES;
   (IV) TEN PERCENT OF SUCH SPENDING SHALL BE WITH SMALL BUSINESSES; AND
   (V) FIVE PERCENT OF SUCH SPENDING SHALL BE WITH MICROBUSINESSES.
   (B)  IF  AN OPERATING BUSINESS UTILIZES MINORITY AND WOMEN-OWNED BUSI-
 NESS ENTERPRISES AND CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESSES
 THAT ARE ALSO SMALL BUSINESSES, SUCH OPERATING BUSINESS'S SPENDING  WITH
 SUCH  CERTIFIED COMPANIES MAY COUNT FOR UP TO HALF OF THE SMALL BUSINESS
 SPENDING GOAL FOR SUCH YEAR.
   5. (A) THERE IS HEREBY ESTABLISHED WITHIN  THE  DIVISION  A  COMMUNITY
 GRANT  PROGRAM  FOR  THE  PURPOSE  OF  AWARDING  GRANTS  TO ENTITIES AND
 CONSTRUCTION PROJECTS THAT ADDRESS  SOCIO-ECONOMIC  DISPARITIES  IN  THE
 MUNICIPALITY IN WHICH THE OPERATING BUSINESS IS LOCATED.
   (B)  GRANTS AWARDED UNDER SUCH PROGRAM SHALL BE EQUAL TO AT LEAST FIVE
 PERCENT OF THE STATE INVESTMENT IN THE CONSTRUCTION OF THE STRUCTURE  IN
 WHICH THE OPERATING BUSINESS IS LOCATED.
   (C)  SUCH  GRANT  PROGRAM SHALL HAVE A PUBLIC APPLICATION PROCESS MADE
 AVAILABLE TO NONPROFIT GROUPS AND AGENCIES RESIDING WITHIN  THE  PROJECT
 MUNICIPALITY.  SUCH  APPLICATION SHALL BE MADE AVAILABLE BOTH PHYSICALLY
 AND ELECTRONICALLY.
   6. WHERE THERE IS PUBLIC LAND OWNED BY A MUNICIPAL OR GOVERNMENT ENTI-
 TY OR CORPORATION WITHIN A TWO-MILE RADIUS OF  THE  OPERATING  BUSINESS,
 THE DIVISION SHALL SUBMIT A DATA-DRIVEN ASSESSMENT AND SUGGESTED PLAN OF
 POST-CONSTRUCTION  COMMUNITY  COMMITMENTS  FOLLOWING TWO PUBLIC HEARINGS
 HELD BY THE DIVISION WITHIN THE MUNICIPALITY. SUCH PLAN SHALL BE SUBMIT-
 TED TO THE MUNICIPALITY FOR THE PURPOSES OF  COMMUNITY  BENEFITS  TO  BE
 CONSIDERED BEFORE LAND SALE BY THE MUNICIPALITY.
   7.  THE  DIVISION  IS HEREBY AUTHORIZED TO PROMULGATE ANY RULES AND/OR
 REGULATIONS NECESSARY TO EFFECTUATE THE PROVISIONS OF THIS ARTICLE.
   § 342. POST-CONSTRUCTION COMPLIANCE  REVIEW  BOARD.  1.  THE  DIVISION
 SHALL ESTABLISH A POST-CONSTRUCTION COMPLIANCE REVIEW BOARD.
   2.  THE  BOARD  SHALL  CONSIST  OF FIVE MEMBERS TO BE APPOINTED BY THE
 GOVERNOR AND APPROVED BY THE SENATE. THE BOARD SHALL HAVE REPRESENTATION
 FROM EACH OF THE FOLLOWING ECONOMIC DEVELOPMENT REGIONS  AS  ESTABLISHED
 UNDER  ARTICLE  ELEVEN  OF THE ECONOMIC DEVELOPMENT LAW: CAPITAL REGION,
 WESTERN NEW YORK, NEW YORK CITY, CENTRAL NEW YORK, AND LONG ISLAND.
   3. THE BOARD SHALL  MEET  QUARTERLY  TO  GRADE  THE  POST-CONSTRUCTION
 COMPLIANCE  EFFORTS  OF  EACH  OPERATING  BUSINESS AND DETERMINE IF SUCH
 OPERATING BUSINESS MEETS EITHER THE GOALS OF THE DIVISION OR ANY  COMMU-
 NITY BENEFIT AGREEMENT POST-CONSTRUCTION MANDATES.
   4.  THE  DIVISION  SHALL CREATE AN ANNUAL REPORT OUTLINING A QUARTERLY
 GRADE AND A SUMMARY OF THE PROJECT'S  COMPLIANCE  EFFORTS.  SUCH  REPORT
 SHALL BE MADE AVAILABLE TO THE PUBLIC BY ELECTRONIC, DIGITAL OR PHYSICAL
 PUBLICATION.
   5.  IF THE OPERATING BUSINESS IS SUBJECT TO A COMMUNITY BENEFIT AGREE-
 MENT THAT LEGALLY MANDATES POST-CONSTRUCTION COMMITMENTS, THE RULES  AND
 S. 8284--A                          5
 
 REGULATIONS  OF  THE  DIVISION  ESTABLISHED  PURSUANT  TO  SECTION THREE
 HUNDRED FORTY-ONE OF THIS ARTICLE MAY BE WAIVED BY A  MAJORITY  VOTE  OF
 THE BOARD.
   6.  THE  BOARD SHALL SERVE AS A COMPLIANCE OFFICER FOR THE ENFORCEMENT
 OF SUCH COMMUNITY BENEFIT AGREEMENT.
   § 343. PENALTIES FOR NON-COMPLIANCE. IF AN OPERATING BUSINESS IS FOUND
 NOT TO BE IN COMPLIANCE WITH ANY PROVISIONS OF THIS ARTICLE,  THE  DIVI-
 SION SHALL HAVE THE AUTHORITY TO:
   (A)  WITHHOLD  ANY PENDING STATE FUNDS UNTIL THE OPERATING BUSINESS IS
 FOUND BY THE BOARD TO BE IN COMPLIANCE WITH THE PROVISIONS OF THIS ARTI-
 CLE;
   (B) PROHIBIT THE OPERATING BUSINESS AND ANY OF  SUCH  OPERATING  BUSI-
 NESS'S  SUBSIDIARIES  FROM RECEIVING ANY STATE FUNDING OR TAX INCENTIVES
 FOR A PERIOD OF FIVE YEARS; AND/OR
   (C) SEEK LIQUIDATED DAMAGES FOR THE PRO-RATA AMOUNT OF  STATE  INVEST-
 MENT.
   § 2. This act shall take effect on the one hundred eightieth day after
 it  shall have become a law. Effective immediately, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation of this act on its effective date are authorized to be  made  and
 completed on or before such date.

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