S05962 Summary:

BILL NOS05962
 
SAME ASSAME AS UNI. A08199
 
SPONSORLANZA
 
COSPNSRMARCELLINO, MARTINS, BONACIC, BOYLE, FLANAGAN, GALLIVAN, LARKIN, LAVALLE, LIBOUS, MARCHIONE, ZELDIN
 
MLTSPNSR
 
Add S139-l, St Fin L
 
Relates to pay-to-play disclosure reform; requires reporting of contributions business entities have made to a candidate committee or election fund of certain public officers prior to contracts for procurement.
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S05962 Actions:

BILL NOS05962
 
10/21/2013REFERRED TO FINANCE
01/08/2014REFERRED TO FINANCE
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S05962 Floor Votes:

There are no votes for this bill in this legislative session.
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S05962 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
            S. 5962                                                  A. 8199
 
                               2013-2014 Regular Sessions
 
                SENATE - ASSEMBLY
 
                                    October 21, 2013
                                       ___________
 
        IN  SENATE  --  Introduced  by  Sens. LANZA, VALESKY, MARCELLINO -- read
          twice and ordered printed, and when printed to  be  committed  to  the
          Committee on Finance
 
        IN  ASSEMBLY  --  Introduced  by  M.  of A. ENGLEBRIGHT -- read once and
          referred to the Committee on Governmental Operations
 

        AN ACT to amend the  state  finance  law,  in  relation  to  pay-to-play
          disclosure reform
 
          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  139-l to read as follows:
     3    §  139-l. Reporting of contributions by business entities.  1. For the
     4  purposes of this section, a "business entity" shall mean any natural  or
     5  legal  person,  business corporation, professional services corporation,
     6  limited liability company, partnership,  limited  partnership,  business
     7  trust, association, labor organization, religious corporation, education
     8  corporation,  or  not-for-profit corporation organized under the laws of

     9  this state or any other state or foreign jurisdiction, including:
    10    a. all individuals who own or control more than  ten  percent  of  the
    11  profits  or  assets  of a business entity or ten percent of the stock in
    12  the case of a business entity that  is  a  corporation  for  profit,  as
    13  appropriate;
    14    b.  key  employees  of the business entity, which shall mean officers,
    15  members of the board of directors and trustees, and their spouses;
    16    c. any subsidiaries directly or indirectly controlled by the  business
    17  entity;
    18    d.  any  political  organization  organized  under  section 527 of the
    19  Internal Revenue Code that is directly or indirectly controlled  by  the

    20  business  entity,  other  than  a candidate committee, election fund, or
    21  political party committee; and
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11979-01-3

        S. 5962                             2                            A. 8199
 
     1    e. if a business entity is a  natural  person,  that  person's  spouse
     2  and/or child, residing with the business entity.
     3    2. Prior to the submission to the department of law and the department
     4  of audit and control for approval of a procurement contract for the sale
     5  of  goods,  services,  or  construction to a state agency, as defined in

     6  section one hundred sixty of this chapter, or any public authority  when
     7  its  procurement  contracts are submitted to the department of audit and
     8  control for approval, or to either house of the  state  legislature  or,
     9  for  procurements  that do not require the approval of the department of
    10  law or the department of audit and control, prior to  the  execution  of
    11  the procurement contract, including but not limited to contracts for the
    12  acquisition, sale, or lease of any real property from or to any business
    13  entity  or  prior  to  the  award of a grant to any business entity, the
    14  business entity shall report on a form to be created by  the  office  of
    15  audit  and control all contributions the business entity made during the

    16  preceding eighteen months to a candidate committee or election  fund  of
    17  any  candidate or holder of the office of governor, lieutenant governor,
    18  state comptroller, or attorney general if the procurement is to be  made
    19  by  a  state  agency  or contributions to candidates for election to the
    20  house of the state legislature seeking the procurement if  the  procure-
    21  ment  is  to  be made by a house of the legislature. The business entity
    22  shall have a continuing duty to report any contribution it makes  during
    23  the  term  of the contract until its completion or for a period of eigh-
    24  teen months after the award, whichever is greater.
    25    3. It shall be a breach of the terms of the government contract for  a

    26  business  entity  to  knowingly  conceal  or misrepresent a contribution
    27  given or received or to make or solicit contributions  through  interme-
    28  diaries  for  the purpose of concealing or misrepresenting the source of
    29  the contribution.
    30    4. If a business entity is found, after notification of an  allegation
    31  of  a  violation of the provisions of this section, an opportunity to be
    32  heard, and review and investigation by the ethics officer of the govern-
    33  mental entity conducting the procurement or other designated official of
    34  the procuring governmental entity responsible for reviewing and investi-
    35  gating such matters,  to  have  knowingly  and  willfully  violated  the
    36  requirements  of  this  section,  it  shall result in a determination of

    37  non-responsibility for such business entity, and  such  business  entity
    38  and  its subsidiaries, and any related or successor entity with substan-
    39  tially similar function, management, board of directors,  officers,  and
    40  shareholders  shall  not be awarded the procurement contract, unless the
    41  governmental entity finds that the award of the procurement contract  to
    42  the  business  entity  is necessary to protect public property or public
    43  health or safety, and that the business entity is the only source  capa-
    44  ble  of  supplying the required article of procurement within the neces-
    45  sary timeframe, provided that the governmental entity shall  include  in
    46  the  procurement  record a statement describing the basis for such find-

    47  ing. Any subsequent determination of non-responsibility due to violation
    48  of this section within four years of a determination of non-responsibil-
    49  ity due to a violation of this section  shall  result  in  the  business
    50  entity  being  rendered ineligible to submit a proposal on or be awarded
    51  any procurement contract for a period of four years from the date of the
    52  second final determination. Every governmental entity shall ensure  that
    53  its  solicitations of proposals for procurement contracts require poten-
    54  tial  vendors  to  disclose  findings  of  non-responsibility   due   to
    55  violations  of  the  provisions of this section within the previous four
    56  years made by any governmental entity. The failure of business  entities


        S. 5962                             3                            A. 8199
 
     1  to  timely disclose accurate and complete information or otherwise coop-
     2  erate with the governmental entity in administering this provision shall
     3  be considered by the governmental entity in its determination of respon-
     4  sibility. Upon a determination of non-responsibility or debarment due to
     5  a  violation  of  this section, the governmental entity shall notify the
     6  office of general services, which shall keep  a  list  of  all  business
     7  entities  that  have  been  determined  to  be nonresponsible bidders or
     8  debarred due to violation of this section, and the office of  audit  and
     9  control.  The  office  of general services shall make such list publicly

    10  available and shall publish such list on its website.
    11    5. Every contract and bid application and  specifications  promulgated
    12  in  connection  therewith  covered  by  this  article  shall  contain  a
    13  provision describing the requirements of this section  and  a  statement
    14  that compliance with this section shall be a material term and condition
    15  of said contract or bid application and binding upon the parties thereto
    16  upon the entry of all applicable contracts.
    17    6.  The  office  of  the  New  York state comptroller shall maintain a
    18  detailed listing of all contributions, on its website,  made  by  inter-
    19  ested  business entities in the procurement records of contracts involv-
    20  ing such business entities.

    21    § 2. This act shall take effect on the ninetieth day  after  it  shall
    22  have become a law.
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