New York Assembly Bill A08990

New York 2025-2026 Regular Session

• Introduced: 8/13/25
• Refer: 8/13/25

Caption

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.

Impact

The legislation sets forth employment and living wage requirements for businesses that have benefited from state investments of one million dollars or more. It mandates that a certain percentage of spending for maintenance and operations must be directed towards minority and women-owned businesses as well as the other defined business types. Specifically, the targets include fifteen percent for minority-owned and women-owned businesses, and smaller percentages for service-disabled veteran-owned businesses and microbusinesses. Such measures could have a substantial impact on increasing the participation of underrepresented businesses in profitable state-funded projects.

Summary

Bill A08990 proposes amendments to the executive law focusing on the utilization of minority and women-owned business enterprises, service-disabled veteran-owned businesses, small businesses, and microbusinesses in state-funded construction projects. The bill directs the Empire State Development Corporation, in consultation with other state agencies, to establish a dedicated division for post-construction commitments and compliance. This division will create specific rules and regulations that private businesses must follow if they operate within buildings constructed using state funding.

Contention

While supporters of A08990 argue that the bill will facilitate greater economic opportunities for marginalized groups and ensure equitable distribution of state contracts, opponents may voice concerns about the feasibility of meeting the set goals, the potential bureaucratic overhead imposed on private businesses, and the implications of penalties for noncompliance. The penalties for failing to meet the outlined utilization goals include the possibility of withholding state funds and prohibiting businesses from receiving future state funding for up to five years. This creates a contentious environment where the balance between regulation and business freedom will be scrutinized.