S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  9036

                          I N  A S S E M B L Y

                            January 19, 2016
                               ___________

Introduced  by  M.  of  A.  WEINSTEIN  --  read once and referred to the
  Committee on Governmental Operations

AN ACT to amend the state finance law  and  the  retirement  and  social
  security law, in relation to purchasing restrictions

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The state finance law is amended by adding  a  new  section
165-b to read as follows:
  S  165-B. PURCHASING RESTRICTIONS; PERSONS BOYCOTTING CERTAIN AMERICAN
ALLIES. 1. AS USED IN THIS  SECTION,  THE  FOLLOWING  DEFINITIONS  SHALL
APPLY:
  (A) "ALLIED NATION" SHALL MEAN:
  (I)  ANY  COUNTRY THAT IS A MEMBER OF THE NORTH ATLANTIC TREATY ORGAN-
IZATION;
  (II) ANY COUNTRY THAT IS A SIGNATORY OF THE SOUTHEAST ASIA  TREATY  OF
1954;
  (III)  ANY  COUNTRY,  OTHER THAN VENEZUELA, THAT IS A SIGNATORY OF THE
RIO TREATY OF 1947;
  (IV) IRELAND;
  (V) ISRAEL;
  (VI) JAPAN; AND/OR
  (VII) THE REPUBLIC OF KOREA.
  (B) "BOYCOTT" SHALL MEAN TO ENGAGE IN ANY ACTIVITY, OR TO  PROMOTE  OR
ENCOURAGE  OTHERS  TO  ENGAGE  IN  ANY ACTIVITY, THAT WILL RESULT IN ANY
PERSON ABSTAINING FROM COMMERCIAL, SOCIAL OR POLITICAL  RELATIONS,  WITH
ANY ALLIED NATION, OR COMPANIES BASED IN AN ALLIED NATION OR IN TERRITO-
RIES  CONTROLLED  BY  AN  ALLIED  NATION,  WITH  THE INTENT TO PENALIZE,
INFLICT, OR CAUSE HARM TO, OR OTHERWISE PROMOTE OR CAST DISREPUTE  UPON,
SUCH ALLIED NATION, ITS PEOPLE OR ITS COMMERCIAL PRODUCTS.
  (C)  "PERSON"  SHALL  MEAN  ANY  NATURAL  PERSON, CORPORATION, LIMITED
LIABILITY COMPANY, UNINCORPORATED ASSOCIATION OR  ANY  OTHER  NONGOVERN-
MENTAL  ENTITY,  ORGANIZATION,  OR  GROUP,  OR  ANY  SUCCESSOR, SUBUNIT,
PARENT, OR SUBSIDIARY OF THE SAME.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13566-05-6
              

A. 9036                             2

  2. (A) ANY PERSON THAT IS IDENTIFIED ON A  LIST  CREATED  PURSUANT  TO
PARAGRAPH  (B) OF THIS SUBDIVISION AS A PERSON THAT BOYCOTTS, AS DEFINED
IN PARAGRAPH (B) OF SUBDIVISION ONE OF THIS SECTION, ANY ALLIED  NATION,
AS  DEFINED  IN  PARAGRAPH (A) OF SUBDIVISION ONE OF THIS SECTION, SHALL
NOT  BE  DEEMED  A RESPONSIVE BIDDER OR OFFERER, PURSUANT TO SECTION ONE
HUNDRED SIXTY-THREE OF THIS ARTICLE.
  (B) NOT LATER THAN NINETY  DAYS  AFTER  THE  EFFECTIVE  DATE  OF  THIS
SECTION,  AND  THEN  ANNUALLY THEREAFTER, THE COMMISSIONER SHALL DEVELOP
AND PUBLISH, USING CREDIBLE INFORMATION AVAILABLE TO THE PUBLIC, A  LIST
OF  PERSONS  DETERMINED  BY  THE  COMMISSIONER, THAT HAVE ENGAGED IN THE
BOYCOTTING OF ANY ALLIED NATION. THE COMMISSIONER SHALL NOT INCLUDE  ANY
PERSON  ON  THE  LIST  REQUIRED  TO BE SO DEVELOPED AND PUBLISHED IF THE
COMMISSIONER DETERMINES THAT  SUCH  PERSON  ENGAGING  IN  BOYCOTTING  AN
ALLIED  NATION,  ENGAGED  IN  SUCH  BOYCOTTING IN ORDER TO COMPLY WITH A
PROVISION OF LAW OF AN ALLIED NATION IN WHICH  SUCH  PERSON  RESIDES  OR
CONDUCTS  BUSINESS OPERATIONS.  SUCH LIST, WHEN DEVELOPED AND PUBLISHED,
SHALL BE POSTED ON THE WEBSITE OF THE OFFICE OF GENERAL SERVICES.
  (C) IN THE EVENT A PERSON INCLUDED BY THE COMMISSIONER ON THE LIST  TO
BE  DEVELOPED  AND  PUBLISHED  IN  ACCORDANCE WITH PARAGRAPH (B) OF THIS
SUBDIVISION, DEMONSTRATES TO  THE  COMMISSIONER  THAT  SUCH  PERSON  HAS
PERMANENTLY  CEASED  THEIR BOYCOTTING OF ANY ALLIED NATION, OR OBTAINS A
COURT ORDER FROM A SUPREME COURT THAT SUCH PERSON SHALL BE REMOVED  FROM
SUCH  LIST  DUE TO THE COURT'S DETERMINATION THAT SUCH PERSON HAS PERMA-
NENTLY CEASED THEIR BOYCOTTING OF ANY ALLIED NATION,  THEN  THE  COMMIS-
SIONER  SHALL  REMOVE  SUCH  PERSON  FROM  SUCH  LIST  SO  DEVELOPED AND
PUBLISHED IN ACCORDANCE WITH PARAGRAPH (B) OF THIS SUBDIVISION.
  (D) PRIOR TO  THE  FINAL  DEVELOPMENT  AND  PUBLICATION  OF  THE  LIST
REQUIRED  TO  BE PRODUCED PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION,
THE COMMISSIONER SHALL PROVIDE WRITTEN  NOTICE  OF  ALL  PERSONS  TO  BE
INCLUDED  ON  THE  LIST, OF THE COMMISSIONER'S INTENT TO SO INCLUDE SUCH
PERSON ON SUCH LIST, TOGETHER WITH WRITTEN NOTICE INFORMING SUCH  PERSON
THAT  INCLUSION  ON  SUCH  LIST  WOULD MAKE SUCH PERSON A NON-RESPONSIVE
BIDDER OR OFFERER, AND THAT SUCH PERSON MAY APPLY TO  THE  COMMISSIONER,
OR  TO  A  SUPREME  COURT,  TO BE REMOVED FROM SUCH LIST PURSUANT TO THE
REQUIREMENTS OF PARAGRAPH (C) OF THIS SUBDIVISION.
  (E) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, A STATE  AGENCY
MAY  PERMIT A PERSON PROMOTING OR OTHERWISE TAKING ACTION TO BOYCOTT ANY
ALLIED NATION TO  BE  DEEMED  A  RESPONSIVE  BIDDER  OR  OFFERER,  ON  A
CASE-BY-CASE BASIS WITH A STATE AGENCY IF:
  (I) THE PROMOTION OR OTHER BOYCOTT ACTION OCCURRED PRIOR TO THE EFFEC-
TIVE  DATE  OF  THIS  SECTION, SUCH ACTIVITIES HAVE NOT BEEN EXPANDED OR
RENEWED AFTER THE EFFECTIVE DATE OF THIS SECTION,  AND  THE  PERSON  HAS
ADOPTED,  PUBLICIZED,  AND  IS  IMPLEMENTING  A FORMAL PLAN TO CEASE ALL
BOYCOTTING OF ANY ALLIED NATION AND TO REFRAIN FROM ENGAGING IN ANY  NEW
BOYCOTT OF ANY ALLIED NATION; OR
  (II)  THE  STATE AGENCY MAKES A FORMAL, WRITTEN DETERMINATION THAT THE
COMMODITIES OR SERVICES  OFFERED  BY  THE  PERSON  NAMED  ON  THIS  LIST
PRODUCED  BY THE COMMISSIONER PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVI-
SION, ARE NECESSARY FOR THE STATE AGENCY TO PERFORM  ITS  FUNCTIONS  AND
THAT,  ABSENT  SUCH  AN  EXEMPTION,  THE STATE AGENCY WOULD BE UNABLE TO
OBTAIN THE COMMODITIES OR SERVICES FOR WHICH THE CONTRACT IS OFFERED.
  3. (A) A STATE AGENCY SHALL REQUIRE ALL PERSONS THAT SUBMIT A  BID  OR
OFFER  IN  RESPONSE TO A NOTICE OF PROCUREMENT, OR THAT PROPOSE TO RENEW
AN EXISTING PROCUREMENT CONTRACT, OR THAT PROPOSE TO ASSUME THE  RESPON-
SIBILITY  OF  A CONTRACTOR PURSUANT TO A PROCUREMENT CONTRACT, OR OTHER-
WISE PROPOSE TO ENTER INTO A CONTRACT WITH A STATE AGENCY  WITH  RESPECT

A. 9036                             3

TO  A  CONTRACT  FOR  COMMODITIES,  SERVICES, CONSTRUCTION, OR CONTRACTS
ENTERED INTO PURSUANT TO SECTION EIGHT OF THE PUBLIC  BUILDINGS  LAW  OR
SECTION THIRTY-EIGHT OF THE HIGHWAY LAW, TO CERTIFY, AT THE TIME THE BID
IS SUBMITTED, OR THE CONTRACT IS RENEWED OR ASSIGNED, THAT THE PERSON OR
THE  ASSIGNEE  IS  NOT  IDENTIFIED  ON  THE LIST DEVELOPED AND PUBLISHED
PURSUANT TO PARAGRAPH (B) OF SUBDIVISION TWO OF THIS  SECTION,  AND  ALL
STATE  AGENCIES  SHALL  INCLUDE  SUCH  CERTIFICATION  INFORMATION IN THE
PROCUREMENT RECORD.
  (B) ALL PERSONS THAT SUBMIT A BID OR OFFER IN RESPONSE TO A NOTICE  OF
PROCUREMENT,  OR  THAT PROPOSE TO RENEW AN EXISTING PROCUREMENT CONTRACT
WITH A STATE AGENCY, OR THAT PROPOSE TO ASSUME THE RESPONSIBILITY  OF  A
CONTRACTOR  PURSUANT  TO  A PROCUREMENT CONTRACT WITH A STATE AGENCY, OR
OTHERWISE PROPOSE TO ENTER INTO A CONTRACT  WITH  A  STATE  AGENCY  WITH
RESPECT  TO  A  CONTRACT  FOR  COMMODITIES,  SERVICES,  CONSTRUCTION, OR
CONTRACTS ENTERED INTO PURSUANT TO SECTION EIGHT OF THE PUBLIC BUILDINGS
LAW OR SECTION THIRTY-EIGHT OF THE HIGHWAY LAW, SHALL CERTIFY THAT  THEY
HAVE  NOT BOYCOTTED ANY ALLIED NATIONS, AND THAT THEY ARE NOT IDENTIFIED
ON THE LIST DEVELOPED AND PUBLISHED PURSUANT TO PARAGRAPH (B) OF  SUBDI-
VISION TWO OF THIS SECTION.
  4.  UPON  RECEIVING INFORMATION THAT A PERSON WHO HAS MADE THE CERTIF-
ICATION REQUIRED BY SUBDIVISION THREE OF THIS SECTION, IS, IN  FACT,  IN
VIOLATION  OF  SUCH  CERTIFICATION,  THE  STATE AGENCY SHALL REVIEW SUCH
INFORMATION, NOTIFY SUCH PERSON AND OFFER THEM AN OPPORTUNITY TO RESPOND
TO SUCH INFORMATION, WITHIN THIRTY DAYS OF  SUCH  NOTICE,  AND  IF  SUCH
PERSON  FAILS  TO  DEMONSTRATE  THAT THEY HAVE CEASED ANY BOYCOTT OF ANY
ALLIED NATION, THEN, THE STATE AGENCY SHALL TAKE SUCH ACTION AS  MAY  BE
APPROPRIATE  AND  PROVIDED  FOR BY LAW, RULE OR CONTRACT, INCLUDING, BUT
NOT LIMITED TO, NOTIFYING THE COMMISSIONER OF SUCH PERSON'S  BOYCOTT  OR
BOYCOTTS  OF  ANY  AND  ALL  ALLIED NATIONS, IMPOSING SANCTIONS, SEEKING
COMPLIANCE, RECOVERING DAMAGES, AND/OR DECLARING SUCH PERSON IN DEFAULT.
  5. ON OR BEFORE DECEMBER FIFTEENTH, TWO THOUSAND  SIXTEEN,  AND  EVERY
YEAR  THEREAFTER, THE COMMISSIONER SHALL ISSUE A REPORT TO THE GOVERNOR,
THE COMPTROLLER, THE TEMPORARY PRESIDENT OF THE SENATE, AND THE  SPEAKER
OF  THE ASSEMBLY, ON ALL THE ACTIONS TAKEN, AND ALL DETERMINATIONS MADE,
BY THE COMMISSIONER PURSUANT TO THIS SECTION, AND ANY AND ALL  RULES  OR
REGULATIONS ADOPTED.
  S 2. The retirement and social security law is amended by adding a new
section 423-d to read as follows:
  S  423-D. PROHIBITION ON INVESTMENT OF CERTAIN PUBLIC FUNDS IN PERSONS
BOYCOTTING CERTAIN AMERICAN ALLIES. 1. AS  USED  IN  THIS  SECTION,  THE
FOLLOWING DEFINITIONS SHALL APPLY:
  (A) "ALLIED NATION" SHALL MEAN:
  (I)  ANY  COUNTRY THAT IS A MEMBER OF THE NORTH ATLANTIC TREATY ORGAN-
IZATION;
  (II) ANY COUNTRY THAT IS A SIGNATORY OF THE SOUTHEAST ASIA TREATY;
  (III) ANY COUNTRY, OTHER THAN VENEZUELA, THAT IS A  SIGNATORY  OF  THE
RIO TREATY;
  (IV) IRELAND;
  (V) ISRAEL;
  (VI) JAPAN; AND/OR
  (VII) THE REPUBLIC OF KOREA.
  (B)  "BOYCOTT"  SHALL MEAN TO ENGAGE IN ANY ACTIVITY, OR TO PROMOTE OR
ENCOURAGE OTHERS TO ENGAGE IN ANY ACTIVITY,  THAT  WILL  RESULT  IN  ANY
PERSON  ABSTAINING  FROM COMMERCIAL, SOCIAL OR POLITICAL RELATIONS, WITH
ANY ALLIED NATION, OR COMPANIES BASED IN AN ALLIED NATION OR IN TERRITO-
RIES CONTROLLED BY AN  ALLIED  NATION,  WITH  THE  INTENT  TO  PENALIZE,

A. 9036                             4

INFLICT,  OR CAUSE HARM TO, OR OTHERWISE PROMOTE OR CAST DISREPUTE UPON,
SUCH ALLIED NATION, ITS PEOPLE OR ITS COMMERCIAL PRODUCTS.
  (C)  "PERSON"  SHALL  MEAN  ANY  NATURAL  PERSON, CORPORATION, LIMITED
LIABILITY COMPANY, UNINCORPORATED ASSOCIATION OR  ANY  OTHER  NONGOVERN-
MENTAL  ENTITY,  ORGANIZATION,  OR  GROUP,  OR  ANY  SUCCESSOR, SUBUNIT,
PARENT, OR SUBSIDIARY OF THE SAME.
  2. (A) ANY PERSON THAT IS IDENTIFIED ON THE LIST CREATED  PURSUANT  TO
PARAGRAPH  (B) OF SUBDIVISION TWO OF SECTION ONE HUNDRED SIXTY-FIVE-B OF
THE STATE FINANCE LAW, AS BEING A PERSON THAT HAS ENGAGED IN  A  BOYCOTT
OF ANY ALLIED NATION, SHALL NOT BE ELIGIBLE TO RECEIVE INVESTMENT OF ANY
MONEYS OR ASSETS OF THE COMMON RETIREMENT FUND IN ANY STOCKS, SECURITIES
OR OTHER OBLIGATIONS OF SUCH PERSON SO IDENTIFIED ON SUCH LIST DEVELOPED
AND PUBLISHED BY THE COMMISSIONER OF GENERAL SERVICES.
  (B) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, NO ASSETS OF
ANY  PENSION  OR ANNUITY FUND UNDER THE JURISDICTION OF THE COMPTROLLER,
SHALL FURTHER BE INVESTED IN ANY BANK  OR  FINANCIAL  INSTITUTION  WHICH
DIRECTLY,  OR  THROUGH  A PARENT OR SUBSIDIARY BOYCOTTS AN ALLIED NATION
AND NO SUCH ASSETS SHALL OTHERWISE BE INVESTED IN THE STOCKS, SECURITIES
OR OTHER OBLIGATIONS OF ANY PERSON WHICH DIRECTLY, OR THROUGH  A  PARENT
OR SUBSIDIARY ENTITY, BOYCOTTS ANY ALLIED NATION.
  3.  THE  COMPTROLLER  SHALL  TAKE  APPROPRIATE ACTION TO SELL, REDEEM,
DIVEST OR WITHDRAW ANY INVESTMENT HELD IN VIOLATION OF THE PROVISIONS OF
THIS SECTION. THIS SECTION SHALL NOT BE CONSTRUED TO REQUIRE THE  PREMA-
TURE  OR  OTHERWISE IMPRUDENT SALE, REDEMPTION, DIVESTMENT OR WITHDRAWAL
OF AN INVESTMENT, BUT SUCH  SALE,  DIVESTMENT  OR  WITHDRAWAL  SHALL  BE
COMPLETED  NO LATER THAN FIVE YEARS FOLLOWING THE EFFECTIVE DATE OF THIS
SECTION.
  4. ON OR BEFORE DECEMBER FIFTEENTH, TWO THOUSAND  SIXTEEN,  AND  EVERY
YEAR  THEREAFTER,  THE COMPTROLLER SHALL ISSUE A REPORT TO THE GOVERNOR,
THE COMMISSIONER OF GENERAL SERVICES, THE  TEMPORARY  PRESIDENT  OF  THE
SENATE,  AND  THE SPEAKER OF THE ASSEMBLY, ON ALL THE ACTIONS TAKEN, AND
ALL DETERMINATIONS MADE, BY THE COMPTROLLER, PURSUANT TO  THIS  SECTION,
AND ANY AND ALL RULES OR REGULATIONS ADOPTED.
  S 3. This act shall take effect immediately.