Bill Text: NY S04479 | 2023-2024 | General Assembly | Introduced
Bill Title: Relates to purchasing restrictions on persons boycotting Israel and the investment of certain public funds in companies boycotting Israel; requires the commissioner of general services to compile a list of companies boycotting Israel; establishes that such companies will be considered non-responsive bidders.
Spectrum: Bipartisan Bill
Status: (Introduced) 2024-01-03 - REFERRED TO PROCUREMENT AND CONTRACTS [S04479 Detail]
Download: New_York-2023-S04479-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4479 2023-2024 Regular Sessions IN SENATE February 9, 2023 ___________ Introduced by Sen. ADDABBO -- 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 purchasing restrictions on persons boycotting Israel; and to amend the retirement and social security law, in relation to the investment of certain public funds in companies boycotting Israel The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The state finance law is amended by adding a new section 2 165-b to read as follows: 3 § 165-b. Purchasing restrictions; persons boycotting Israel. 1. As 4 used in this section, the following definitions shall apply: 5 (a) "Boycott Israel" or "boycott activities" means engaging in actions 6 that are intended to penalize, inflict economic harm on, or otherwise 7 limit commercial relations with the State of Israel or companies based 8 in the State of Israel or in territories controlled by the State of 9 Israel. 10 (b) "Boycott Israel" or "boycott activities" do not include actions 11 necessary to comply with applicable law in the business's home jurisdic- 12 tion. 13 (c) "Person" means: 14 (i) A corporation, company, limited liability company, business, busi- 15 ness association, partnership, society, trust, or any other nongovern- 16 mental entity, organization, or group. 17 (ii) Any successor, subunit, parent entity, or subsidiary of, or any 18 entity under common ownership or control with, any entity described in 19 subparagraph (i) of this paragraph. 20 2. (a) A person that is identified on a list created pursuant to para- 21 graph (b) of this subdivision as a person that boycotts Israel as 22 described in subdivision one of this section, shall not be deemed a EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02831-01-3S. 4479 2 1 responsive bidder or offerer pursuant to section one hundred sixty-three 2 of this article. 3 (b) (i) Not later than one hundred twenty days after the effective 4 date of this section, the commissioner shall develop or contract to 5 develop, using credible information available to the public, including 6 but not limited to information provided by non-profit organizations, 7 research firms, international organizations and government entities, a 8 list of persons it determines boycott Israel as described in subdivision 9 one of this section. If the commissioner has contracted to develop the 10 list, the list shall be finally developed not later than one hundred 11 twenty days after this section shall take effect. Such list, when 12 completed, shall be posted on the website of the office of general 13 services. A statement by a person or representative of a person with 14 apparent authority to make such a statement, that it is participating in 15 a boycott of Israel, or that it has initiated a boycott in response to a 16 request for a boycott of Israel, shall be considered as evidence that a 17 company is participating in a boycott of Israel. 18 (ii) The commissioner shall update the list every one hundred eighty 19 days. 20 (iii) Before finalizing an initial list pursuant to subparagraph (i) 21 of this paragraph or an updated list pursuant to subparagraph (ii) of 22 this paragraph, the commissioner shall do all of the following: 23 (1) Provide ninety days' written notice of the commissioner's intent 24 to include the person on the list. The notice shall inform the person 25 that inclusion on the list would make the person a non-responsive bidder 26 or offerer. The notice shall specify the boycott activities as described 27 in subdivision one of this section, and provide that such person may 28 apply to the commissioner, or to a supreme court, to be removed from 29 such list pursuant to the requirements of this paragraph, if it ceases 30 such activities. 31 (2) In the event a person included by the commissioner on the list to 32 be developed and published in accordance with this paragraph, demon- 33 strates to the commissioner or to a supreme court that such person is 34 not engaged in such boycott activities as described in subdivision one 35 of this section, or has ceased such boycotting activities, the commis- 36 sioner shall remove such person from the list developed and published in 37 accordance with this paragraph. 38 (3) The commissioner shall make a good faith effort to avoid including 39 a person on the list who is not engaged in boycotting the state of Isra- 40 el. 41 (c) Notwithstanding paragraphs (a) and (b) of this subdivision, a 42 state agency may permit a person boycotting Israel as described by 43 subdivision one of this section to be deemed a responsive bidder or 44 offerer, on a case-by-case basis with a state agency if: 45 (i) The boycott activities were made before the effective date of this 46 section, such activities have not been expanded or renewed after the 47 effective date of this section, and the person has adopted, publicized, 48 and is implementing a plan to cease such activities and to refrain from 49 engaging in any new boycott activities; or 50 (ii) The state agency makes a determination that the commodities or 51 services are necessary for the state agency to perform its functions and 52 that, absent such an exemption, the state agency would be unable to 53 obtain the commodities or services for which the contract is offered. 54 Such determination shall be entered into the procurement record. 55 3. (a) A state agency shall require a person that submits a bid or 56 offer in response to a notice of procurement, or that proposes to renewS. 4479 3 1 an existing procurement contract with a state agency or proposes to 2 assume the responsibility of a contractor pursuant to a procurement 3 contract with a state agency or otherwise proposes to enter into a 4 contract with a state agency with respect to a contract for commodities, 5 services, construction, or contracts entered pursuant to section eight 6 of the public buildings law or section thirty-eight of the highway law, 7 to certify, at the time the bid is submitted or the contract is renewed 8 or assigned, that the person or the assignee is not identified on a list 9 created pursuant to paragraph (b) of subdivision two of this section. A 10 state agency shall include certification information in the procurement 11 record. 12 (b) A person that submits a bid or offer in response to a notice of 13 procurement or that proposes to renew an existing procurement contract 14 with a state agency or proposes to assume the responsibility of a 15 contractor pursuant to a procurement contract with a state agency, or 16 otherwise proposes to enter into a contract with a state agency with 17 respect to a contract for commodities, services, construction, or 18 contracts entered pursuant to section eight of the public buildings law 19 or section thirty-eight of the highway law shall not utilize, on the 20 contract with the state agency, any subcontractor that is identified on 21 a list created pursuant to paragraph (b) of subdivision two of this 22 section. 23 4. Upon receiving information that a person who has made the certif- 24 ication required by subdivision three of this section is in violation 25 thereof, the state agency shall review such information and offer the 26 person an opportunity to respond. If the person fails to demonstrate 27 that it has ceased its boycott activities which are in violation of this 28 act within ninety days after the determination of such violation, then 29 the state agency shall take such action as may be appropriate and 30 provided for by law, rule or contract, including, but not limited to, 31 imposing sanctions, seeking compliance, recovering damages or declaring 32 the contractor in default. 33 5. The commissioner shall report to the governor, comptroller, the 34 temporary president of the senate and the speaker of the assembly annu- 35 ally on or before October first, on the status of this section and any 36 rules or regulations adopted thereunder. 37 § 2. The retirement and social security law is amended by adding a new 38 section 423-d to read as follows: 39 § 423-d. Investment of certain public funds in companies boycotting 40 Israel. 1. For purposes of this section: 41 (a) "boycott Israel" means engaging in actions that are intended to 42 penalize, inflict economic harm on, or otherwise limit commercial 43 relations with the State of Israel or companies based in the State of 44 Israel or in territories controlled by the State of Israel. 45 (b) "Boycott Israel" does not include actions necessary to comply with 46 applicable law in the business's home jurisdiction. 47 2. On and after the effective date of this section, no moneys or 48 assets of the common retirement fund shall be invested in the stocks, 49 securities or other obligations of any institution or company boycotting 50 Israel. Notwithstanding any provision of law to the contrary, no assets 51 of any pension or annuity fund under the jurisdiction of the comp- 52 troller, shall be invested in any bank or financial institution which 53 directly or through a subsidiary boycotts Israel and no such assets 54 shall be invested in the stocks, securities or other obligations of any 55 company which directly or through a subsidiary boycotts Israel.S. 4479 4 1 3. The comptroller shall take appropriate action to sell, redeem, 2 divest or withdraw any investment held in violation of the provisions of 3 this section. This section shall not be construed to require the prema- 4 ture or otherwise imprudent sale, redemption, divestment or withdrawal 5 of an investment, but such sale, redemption, divestment or withdrawal 6 shall be completed no later than three years following the effective 7 date of this section. 8 4. Within sixty days after the effective date of this section, the 9 comptroller shall issue a report to the governor, the comptroller, the 10 temporary president of the senate, and the speaker of the assembly and 11 file with the legislature a report of all investments held as of the 12 effective date of this section which are in violation of the provisions 13 of this section. Every year thereafter, the comptroller shall report on 14 all investments sold, redeemed, divested or withdrawn in compliance with 15 this section. Each report after the initial report shall provide a 16 description of the progress which the comptroller has made since the 17 previous report and since the effective date of this section. 18 § 3. This act shall take effect immediately.
