Bill Text: NY A07179 | 2023-2024 | General Assembly | Introduced


Bill Title: Relates to contributions from persons doing or seeking business dealings with a state governmental entity.

Spectrum: Moderate Partisan Bill (Democrat 4-1)

Status: (Introduced) 2024-01-03 - referred to election law [A07179 Detail]

Download: New_York-2023-A07179-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          7179

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                      May 12, 2023
                                       ___________

        Introduced by M. of A. McDONALD -- read once and referred to the Commit-
          tee on Election Law

        AN  ACT  to  amend  the  election law, in relation to contributions from
          persons doing or seeking business dealings with a  state  governmental
          entity

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The election law is amended by adding a new section  14-131
     2  to read as follows:
     3    §  14-131.  Contributions from persons doing or seeking business deal-
     4  ings with a state governmental entity. 1. The legislature finds that  it
     5  is necessary to reduce the appearance of or actual improper influence of
     6  the  state  contracting  process  and  increase  its fairness by banning
     7  campaign contributions from a company seeking state contracts to office-
     8  holders with authority  over  procuring  entities  during  a  restricted
     9  contribution period.
    10    2. For the purpose of this section, the following terms shall have the
    11  following meanings:
    12    (a)  "state governmental entity" shall mean the state of New York, any
    13  public authority, public benefit corporation  or  not-for-profit  corpo-
    14  ration,  the  majority of whose board members are officials of the state
    15  or are appointed by such officials, or any agency or  entity  affiliated
    16  with the state of New York.
    17    (b)  "person"  shall include any chief executive officer, chief finan-
    18  cial officer or chief operating officer of a business entity or  persons
    19  serving in an equivalent capacity, any person employed in a senior mana-
    20  gerial  capacity  regarding  a  business  entity,  or any person with an
    21  interest in a business entity which exceeds ten percent of the value  of
    22  such entity at fair market value.
    23    (c)  "senior  managerial capacity" shall mean a high-level supervisory
    24  capacity, either by virtue of title  or  duties,  in  which  substantial

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03612-03-3

        A. 7179                             2

     1  discretion  and oversight is exercised over the solicitation, letting or
     2  administration of business transactions with a state governmental  enti-
     3  ty, including contracts, franchises, concession, grants, economic devel-
     4  opment agreements and application for land use approvals.
     5    (d)  (i)  "business  dealing  with  a state governmental entity" shall
     6  mean:
     7    (A) one or more contracts with a single person or business entity  for
     8  the procurement of goods, services or construction that are in effect or
     9  that were entered into within the preceding one-year period with a state
    10  governmental entity and have a total value at or above one hundred thou-
    11  sand  dollars,  or,  with  respect  to contracts for construction, at or
    12  above five hundred thousand dollars, and shall include any contract  for
    13  the  underwriting  of  the  debt  of a state governmental entity and the
    14  retention of any bond counsel, disclosure counsel or underwriter's coun-
    15  sel in connection therewith; or
    16    (B) any acquisition or disposition of  real  property,  other  than  a
    17  public  auction or competitive sealed bid transaction or the acquisition
    18  of property pursuant to the  department  of  environmental  conservation
    19  land acquisition processes with a state governmental entity; or
    20    (C)  acquisition  of office space by the office of general services or
    21  any other state governmental entity, including acquisitions by purchase,
    22  condemnation, exchange or lease; or
    23    (D) one or more concessions or one or more franchises  with  a  single
    24  person  or  business entity that are in effect or that were entered into
    25  within the preceding one-year period from a  state  governmental  entity
    26  which  have a total estimated annual value at or above one hundred thou-
    27  sand dollars; or
    28    (E) one or more grants made to a single person or entity that  are  in
    29  effect  or  that  were entered into within the preceding one-year period
    30  that have a total value  at  or  above  one  hundred  thousand  dollars,
    31  received from a state governmental entity; or
    32    (F)  any economic development agreement entered into or in effect with
    33  a state governmental entity; or
    34    (G) any contract  for  the  investment  of  pension  funds,  including
    35  investments  in  a  private  equity  firm  and contracts with investment
    36  related consultants.
    37    (ii) for purposes of clauses (A), (D) and (E) of subparagraph  (i)  of
    38  this  paragraph,  all contracts, concessions, franchises and grants that
    39  are five thousand dollars or less in value shall be  excluded  from  any
    40  calculation  as to whether a contract, concession, franchise or grant is
    41  a business dealing with a state governmental  entity.  The  division  of
    42  homes  and  community renewal shall promulgate rules setting forth which
    43  categories of actions, transactions and agreements providing  affordable
    44  housing  shall  and  shall not constitute business dealings with a state
    45  governmental entity for purposes of this paragraph. The  division  shall
    46  consider  the  significance  of  the  affordable housing program and the
    47  degree of discretion by state officials in  determining  which  actions,
    48  transactions and agreements shall and shall not constitute such business
    49  dealings.  Notwithstanding  any  provision  of this paragraph, a housing
    50  assistance payment contract between a landlord and the division of homes
    51  and community renewal relating to the provision of rent subsidies pursu-
    52  ant to Section 8 of the United States Housing Act  of  1937,  42  U.S.C.
    53  1437  et.  seq.,  shall  not  constitute  business dealings with a state
    54  governmental entity for the purposes of this paragraph.
    55    (e) (i) "intermediary" shall  mean  an  individual,  business  entity,
    56  political committee, employee organization or other entity which:

        A. 7179                             3

     1    (A) other than in the regular course of business as a postal, delivery
     2  or  messenger  service, delivers any contribution from another person or
     3  business entity to a candidate or other authorized committee; or
     4    (B)  solicits contributions to a candidate or other authorized commit-
     5  tee where such solicitation is known to such candidate  or  his  or  her
     6  authorized  committee. For purposes of this clause, only persons clearly
     7  identified as the solicitor of a contribution to the candidate or his or
     8  her authorized committee shall be presumed to be known to such candidate
     9  or his or her authorized committee.
    10    (ii)  "intermediary"  shall  not  mean  spouses,  domestic   partners,
    11  parents, children or siblings of the person making such contribution, or
    12  any  fundraising  agent,  as  such  term is defined by the board, or any
    13  hosts of a campaign sponsored fundraising event paid for in whole or  in
    14  part  by  the  campaign. Where there are multiple individual hosts for a
    15  non-campaign sponsored event, the hosts shall designate one such host as
    16  the intermediary.
    17    (f) "restricted contribution period"  shall  mean  the  period  during
    18  which  any  person,  organization,  group of persons, or business entity
    19  that has business dealings or submits bids  or  proposals  for  business
    20  dealings  with  a  state  governmental  entity  shall be prohibited from
    21  making contributions or loans, or serving as an  intermediary  for  such
    22  contribution  or loan, to any officeholder of or with authority over the
    23  state governmental entity or entities responsible for the business deal-
    24  ing under its jurisdiction, or to any candidate for an  office  of  such
    25  governmental  entity,  including  to  such officeholder's or candidate's
    26  authorized political committees or political committees the officeholder
    27  or candidate exerts operational control over.
    28    (g) "business entity" shall mean a business corporation,  professional
    29  services  corporation,  limited  liability company, partnership, limited
    30  partnership, business trust, association or any other  legal  commercial
    31  entity  organized  under  the  laws  of this state or any other state or
    32  foreign jurisdiction, including any subsidiary  directly  or  indirectly
    33  controlled  by  the  business  entity,  and  any political organization,
    34  including but not limited to any political organization organized  under
    35  section 527 of the internal revenue code, that is directly or indirectly
    36  controlled by the business entity.
    37    3.  (a)  No person, organization, group of persons, or business entity
    38  that has business dealings or submits bids  or  proposals  for  business
    39  dealings  with  a state governmental entity shall, during the restricted
    40  contribution period, make a contribution or loan  to,  or  serve  as  an
    41  intermediary  for  such contribution or loan for, any officeholder of or
    42  with authority over the state governmental entity or entities  responsi-
    43  ble  for the business dealing under its jurisdiction or to any candidate
    44  for  an  office  of  such  governmental  entity,   including   to   such
    45  officeholder's  or  candidate's authorized political committees or poli-
    46  tical  committees  the  officeholder  or  candidate  exerts  operational
    47  control over.
    48    (b) Pursuant to section 14-120 of this title, no person, organization,
    49  group  of  persons,  or  business  entity  that has business dealings or
    50  submits bids or proposals for business dealings  with  a  state  govern-
    51  mental  entity  shall,  during  the restricted contribution period, make
    52  contributions to political committees not  authorized  or  operationally
    53  controlled  by  the  officeholder or candidate for the purpose of trans-
    54  ferring a contribution to the officeholder's or  candidate's  authorized
    55  political  committees  or  political  committees  they exert operational
    56  control over where such contribution would be prohibited under paragraph

        A. 7179                             4

     1  (a) of this subdivision if made directly to the officeholder's or candi-
     2  date's authorized political  committees  or  political  committees  they
     3  exert operational control over.
     4    (c)  The state governmental entity directly responsible for a business
     5  dealing shall provide notice of  the  prohibition  established  by  this
     6  section  and the restricted contribution period commencement date to any
     7  person, organization, group of persons,  or  business  entity  that  has
     8  business  dealings or has submitted bids or proposals for business deal-
     9  ings with such state  governmental  entity.  State  government  entities
    10  responsible  for evaluating responses to a procurement posting or solic-
    11  itation shall provide to any person, organization, group of persons,  or
    12  business  entity  that submits a proposal in response to such posting or
    13  solicitation notice of the prohibition established by this  section  and
    14  the restricted contribution period commencement date.
    15    4.    (a)  For  business  dealings  with  a  governmental  entity, the
    16  restricted contribution period shall commence, with respect to a specif-
    17  ic person, organization, group of persons, or business  entity  when  it
    18  files  a  statement  of  registration  pursuant  to section one-e of the
    19  legislative law, to generate a procurement opportunity or pilot  program
    20  or  engages  lobbying, as defined by subdivision (c) of section one-c of
    21  the legislative law, to generate  a  procurement  opportunity  or  pilot
    22  program  or  submits  a  bid,  quotation, offer or response to the state
    23  governmental entity posting or solicitation, at the earliest posting, on
    24  a state governmental entity's website, in a newspaper of general  circu-
    25  lation or in the procurement opportunities newsletter in accordance with
    26  article four-C of the economic development law of written notice, adver-
    27  tisement or solicitation of a request for proposal, invitation for bids,
    28  or  solicitations  of proposals, or any other method provided for by law
    29  or regulation for soliciting  a  response  from  offerers  intending  to
    30  result  in a procurement contract with a state governmental entity.  The
    31  restricted contribution period does not apply to a person, organization,
    32  group of persons or business  entity  that  is  responding  to  a  state
    33  governmental  entity's  request  for  information or other informational
    34  exchanges occurring prior  to  such  governmental  entity's  posting  or
    35  solicitation  for  procurement  provided it has not filed a statement of
    36  registration pursuant to section one-e of the legislative law or engaged
    37  in lobbying, to generate a procurement opportunity or pilot  program  as
    38  defined  by  subdivision (c) of section one-c of the legislative law, to
    39  generate a procurement opportunity or pilot program.
    40    (b) Leases in which a state governmental entity is the proposed lessee
    41  shall only constitute business dealings with a state governmental entity
    42  from the date the application for acquisition is filed or  the  date  of
    43  the  certification of such application to a period of one year after the
    44  commencement of the lease term or after the commencement of any  renewal
    45  and,  where the state governmental entity is disposing of any real prop-
    46  erty interest, shall only constitute  business  dealings  with  a  state
    47  governmental  entity  from  the date of the submission of a proposal and
    48  during the term of any agreement and one year after.
    49    (c) Bids or  proposals  for  franchises  and  concessions  shall  only
    50  constitute  business  dealings  with a state governmental entity for the
    51  period from the submission of the bid or proposal until one  year  after
    52  the  date of such submission, concessions shall only constitute business
    53  dealings with a state  governmental  entity  during  the  term  of  such
    54  concession  and  for one year after the end of such term, and franchises
    55  shall only constitute business dealings with a state governmental entity

        A. 7179                             5

     1  for the period of one year after the commencement of  the  term  of  the
     2  franchise or after the commencement of any renewal.
     3    (d)  Grants  shall  constitute  business dealings with a state govern-
     4  mental entity for one year after such grant is made.
     5    (e) Economic development agreements shall constitute business dealings
     6  with a state governmental entity from the submission of  an  application
     7  for  such  agreement  and  during the term of such agreement and for one
     8  year after the end of such term.
     9    (f) Contracts for the  investment  of  pension  funds,  including  the
    10  investments  in  a  private  equity  firm  and contracts with investment
    11  related consultants, shall constitute business  dealings  with  a  state
    12  governmental entity from the time of presentation of investment opportu-
    13  nity  or  the submission of a proposal, whichever is earlier, and during
    14  the term of such contract and for one year after the end of such term.
    15    5. The restricted contribution period described in this section  shall
    16  end  for business dealings pursuant to clause (A) of subparagraph (i) of
    17  paragraph (d) of subdivision two of  this  section  with  respect  to  a
    18  specific person, organization, group of persons, or business entity if:
    19    (a)  the person, organization, group of persons, or business entity is
    20  the recipient of the final contract award, the  restricted  contribution
    21  period  shall end six months after the expiration of the final contract;
    22  or
    23    (b) the person, organization, group of persons, or business entity  is
    24  not  the  recipient of the final contract award, the restricted contrib-
    25  ution period shall end with the final contract award and approval by the
    26  state governmental entity and, where applicable, the state comptroller.
    27    6. The restricted contribution period for a governmental entity  shall
    28  recommence if a person, organization, group of persons or business enti-
    29  ty  engages in additional business dealings with such governmental enti-
    30  ty.
    31    7. Notwithstanding any provision of law to the contrary, the office of
    32  the state comptroller,  in  consultation  with  the  office  of  general
    33  services,  division  of the budget, and authorities budget office, shall
    34  create, operate, maintain, and update a  computerized  searchable  data-
    35  base,  or  modify  an  existing  database,  which  contains the names of
    36  persons who have business dealings or submit bids or proposals for busi-
    37  ness dealings with a state governmental entity. Such database  shall  be
    38  updated  at  least once a month in any general election year. Such data-
    39  base and all reported data on such database shall be made  available  to
    40  the  public  on the comptroller's website. Such database shall contain a
    41  function to enable members of the public to determine if a given  person
    42  is  in  the  database  because  such person has business dealings or has
    43  submitted bids or proposals for business dealings with a  state  govern-
    44  mental entity and the date a person is considered to have business deal-
    45  ing  a  state  governmental  entity.  Such database shall also contain a
    46  searchable list of persons removed from such database within the preced-
    47  ing five years, including the date the persons were considered  to  have
    48  business dealings or have submitted bids or proposals for business deal-
    49  ings  with a state governmental entity and the date of removal from such
    50  database.
    51    8. Notwithstanding any provision of law to the contrary, a person who:
    52  (a) has submitted bids or proposals on contracts for the procurement  of
    53  goods, services or construction; (b) has submitted bids or proposals for
    54  franchises  or  concessions  that  are no longer being considered for an
    55  award; or (c) for any other reason believes he or she should not  be  on
    56  the  database, may apply to the office of the state comptroller or other

        A. 7179                             6

     1  person designated by the comptroller for removal from the  database  and
     2  shall be removed from the database upon a determination that said person
     3  should not be included in the database.
     4    §  2.  Section  14-126  of the election law is amended by adding a new
     5  subdivision 8 to read as follows:
     6    8. (a) Any person, organization, group of persons, or business  entity
     7  as that term is used in section 14-131 of this title, who, under circum-
     8  stances  evincing an intent to violate such law, makes a contribution in
     9  contravention of section 14-131 or paragraph f  of  subdivision  one  of
    10  section  14-114 of this title shall be subject to a civil penalty not to
    11  exceed the greater of ten thousand dollars or an  amount  equal  to  two
    12  hundred  percent  of  the  contribution,  to be recoverable in a special
    13  proceeding or civil action to be brought by the state board of elections
    14  chief enforcement counsel.
    15    (b) Any person who, acting as or on behalf of an officeholder,  candi-
    16  date,  or  political  committee,  accepts  a  contribution or receives a
    17  transfer in contravention of section 14-131 or paragraph f  of  subdivi-
    18  sion  one  of  section  14-114 of this title shall be required to refund
    19  such contribution.
    20    § 3. This act shall take effect on the one hundred eightieth day after
    21  it shall have become a law.
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