A05847 Summary:

BILL NOA05847
 
SAME ASSAME AS S02430
 
SPONSORLavine (MS)
 
COSPNSRBichotte, Thiele, Otis, Jaffee, Miller MG, Weprin, Buchwald, Cymbrowitz, Dinowitz, Quart, Mosley, Ortiz, Braunstein, Hevesi, Abbate, Hawley, Fitzpatrick, Friend, Kolb, Paulin, Rozic, Ra
 
MLTSPNSRBlake, McDonough, Raia
 
Add §165-b, St Fin L; add §423-d, R & SS L
 
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 and establishes that such companies will be considered non-responsive bidders.
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A05847 Actions:

BILL NOA05847
 
02/20/2019referred to governmental operations
01/08/2020referred to governmental operations
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A05847 Committee Votes:

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A05847 Floor Votes:

There are no votes for this bill in this legislative session.
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A05847 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5847
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 20, 2019
                                       ___________
 
        Introduced   by  M.  of  A.  LAVINE,  BICHOTTE,  THIELE,  OTIS,  JAFFEE,
          M. G. MILLER, WEPRIN, BUCHWALD, CYMBROWITZ, DINOWITZ,  QUART,  MOSLEY,
          ORTIZ,  BRAUNSTEIN, HEVESI, ABBATE, HAWLEY, FITZPATRICK, FRIEND, KOLB,
          PAULIN, ROZIC, RA -- Multi-Sponsored by -- M. of A. BLAKE,  McDONOUGH,
          RAIA  -- read once and referred to the Committee on Governmental Oper-
          ations
 
        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.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08520-01-9

        A. 5847                             2
 
     1    2. (a) A person that is identified on a list created pursuant to para-
     2  graph (b) of this subdivision  as  a  person  that  boycotts  Israel  as
     3  described  in  subdivision  one  of  this section, shall not be deemed a
     4  responsive bidder or offerer pursuant to section one hundred sixty-three
     5  of this article.
     6    (b)  (i)  Not  later  than one hundred twenty days after the effective
     7  date of this section, the commissioner  shall  develop  or  contract  to
     8  develop,  using  credible information available to the public, including
     9  but not limited to information  provided  by  non-profit  organizations,
    10  research  firms,  international organizations and government entities, a
    11  list of persons it determines boycott Israel as described in subdivision
    12  one of this section. If the commissioner has contracted to  develop  the
    13  list,  the  list  shall  be finally developed not later than one hundred
    14  twenty days after this  section  shall  take  effect.  Such  list,  when
    15  completed,  shall  be  posted  on  the  website of the office of general
    16  services.  A statement by a person or representative of  a  person  with
    17  apparent authority to make such a statement, that it is participating in
    18  a boycott of Israel, or that it has initiated a boycott in response to a
    19  request  for a boycott of Israel, shall be considered as evidence that a
    20  company is participating in a boycott of Israel.
    21    (ii) The commissioner shall update the list every one  hundred  eighty
    22  days.
    23    (iii)  Before  finalizing an initial list pursuant to subparagraph (i)
    24  of this paragraph or an updated list pursuant to  subparagraph  (ii)  of
    25  this paragraph, the commissioner shall do all of the following:
    26    (1)  Provide  ninety days' written notice of the commissioner's intent
    27  to include the person on the list. The notice shall  inform  the  person
    28  that inclusion on the list would make the person a non-responsive bidder
    29  or offerer. The notice shall specify the boycott activities as described
    30  in  subdivision  one  of  this section, and provide that such person may
    31  apply to the commissioner, or to a supreme court,  to  be  removed  from
    32  such  list  pursuant to the requirements of this paragraph, if it ceases
    33  such activities.
    34    (2) In the event a person included by the commissioner on the list  to
    35  be  developed  and  published  in accordance with this paragraph, demon-
    36  strates to the commissioner or to a supreme court that  such  person  is
    37  not  engaged  in such boycott activities as described in subdivision one
    38  of this section, or has ceased such boycotting activities,  the  commis-
    39  sioner shall remove such person from the list developed and published in
    40  accordance with this paragraph.
    41    (3) The commissioner shall make a good faith effort to avoid including
    42  a person on the list who is not engaged in boycotting the state of Isra-
    43  el.
    44    (c)  Notwithstanding  paragraphs  (a)  and  (b) of this subdivision, a
    45  state agency may permit a  person  boycotting  Israel  as  described  by
    46  subdivision  one  of  this  section  to be deemed a responsive bidder or
    47  offerer, on a case-by-case basis with a state agency if:
    48    (i) The boycott activities were made before the effective date of this
    49  section, such activities have not been expanded  or  renewed  after  the
    50  effective  date of this section, and the person has adopted, publicized,
    51  and is implementing a plan to cease such activities and to refrain  from
    52  engaging in any new boycott activities; or
    53    (ii)  The  state  agency makes a determination that the commodities or
    54  services are necessary for the state agency to perform its functions and
    55  that, absent such an exemption, the state  agency  would  be  unable  to

        A. 5847                             3
 
     1  obtain  the  commodities  or services for which the contract is offered.
     2  Such determination shall be entered into the procurement record.
     3    3.  (a)  A  state  agency shall require a person that submits a bid or
     4  offer in response to a notice of procurement, or that proposes to  renew
     5  an  existing  procurement  contract  with  a state agency or proposes to
     6  assume the responsibility of a  contractor  pursuant  to  a  procurement
     7  contract  with  a  state  agency  or  otherwise proposes to enter into a
     8  contract with a state agency with respect to a contract for commodities,
     9  services, construction, or contracts entered pursuant to  section  eight
    10  of  the public buildings law or section thirty-eight of the highway law,
    11  to certify, at the time the bid is submitted or the contract is  renewed
    12  or assigned, that the person or the assignee is not identified on a list
    13  created  pursuant to paragraph (b) of subdivision two of this section. A
    14  state agency shall include certification information in the  procurement
    15  record.
    16    (b)  A  person  that submits a bid or offer in response to a notice of
    17  procurement or that proposes to renew an existing  procurement  contract
    18  with  a  state  agency  or  proposes  to  assume the responsibility of a
    19  contractor pursuant to a procurement contract with a  state  agency,  or
    20  otherwise  proposes  to  enter  into a contract with a state agency with
    21  respect to  a  contract  for  commodities,  services,  construction,  or
    22  contracts  entered pursuant to section eight of the public buildings law
    23  or section thirty-eight of the highway law shall  not  utilize,  on  the
    24  contract  with the state agency, any subcontractor that is identified on
    25  a list created pursuant to paragraph (b)  of  subdivision  two  of  this
    26  section.
    27    4.  Upon  receiving information that a person who has made the certif-
    28  ication required by subdivision three of this section  is  in  violation
    29  thereof,  the  state  agency shall review such information and offer the
    30  person an opportunity to respond. If the  person  fails  to  demonstrate
    31  that it has ceased its boycott activities which are in violation of this
    32  act  within  ninety days after the determination of such violation, then
    33  the state agency shall take  such  action  as  may  be  appropriate  and
    34  provided  for  by  law, rule or contract, including, but not limited to,
    35  imposing sanctions, seeking compliance, recovering damages or  declaring
    36  the contractor in default.
    37    5.  The  commissioner  shall  report to the governor, comptroller, the
    38  temporary president of the senate and the speaker of the assembly  annu-
    39  ally  on  or before October first, on the status of this section and any
    40  rules or regulations adopted thereunder.
    41    § 2. The retirement and social security law is amended by adding a new
    42  section 423-d to read as follows:
    43    § 423-d. Investment of certain public funds  in  companies  boycotting
    44  Israel. 1. For purposes of this section:
    45    (a)  "boycott  Israel"  means engaging in actions that are intended to
    46  penalize, inflict  economic  harm  on,  or  otherwise  limit  commercial
    47  relations  with  the  State of Israel or companies based in the State of
    48  Israel or in territories controlled by the State of Israel.
    49    (b) "Boycott Israel" does not include actions necessary to comply with
    50  applicable law in the business's home jurisdiction.
    51    2. On and after the effective date  of  this  section,  no  moneys  or
    52  assets  of  the  common retirement fund shall be invested in the stocks,
    53  securities or other obligations of any institution or company boycotting
    54  Israel. Notwithstanding any provision of law to the contrary, no  assets
    55  of  any  pension  or  annuity  fund  under the jurisdiction of the comp-
    56  troller, shall be invested in any bank or  financial  institution  which

        A. 5847                             4
 
     1  directly  or  through  a  subsidiary  boycotts Israel and no such assets
     2  shall be invested in the stocks, securities or other obligations of  any
     3  company which directly or through a subsidiary boycotts Israel.
     4    3.  The  comptroller  shall  take  appropriate action to sell, redeem,
     5  divest or withdraw any investment held in violation of the provisions of
     6  this section. This section shall not be construed to require the  prema-
     7  ture  or  otherwise imprudent sale, redemption, divestment or withdrawal
     8  of an investment, but such sale, redemption,  divestment  or  withdrawal
     9  shall  be  completed  no  later than three years following the effective
    10  date of this section.
    11    4. Within sixty days after the effective date  of  this  section,  the
    12  comptroller  shall  issue a report to the governor, the comptroller, the
    13  temporary president of the senate, and the speaker of the  assembly  and
    14  file  with  the  legislature  a report of all investments held as of the
    15  effective date of this section which are in violation of the  provisions
    16  of  this section. Every year thereafter, the comptroller shall report on
    17  all investments sold, redeemed, divested or withdrawn in compliance with
    18  this section. Each report after  the  initial  report  shall  provide  a
    19  description  of  the  progress  which the comptroller has made since the
    20  previous report and since the effective date of this section.
    21    § 3. This act shall take effect immediately.
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