S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9968
 
                           I N  A S S E M B L Y
 
                               March 2, 2018
                                ___________
 
 Introduced  by  M. of A. GALEF, WOERNER, MOSLEY, BLAKE, SEPULVEDA, JOHNS
   -- Multi-Sponsored by --  M.  of  A.  BUCHWALD,  CROUCH,  ENGLEBRIGHT,
   MAGEE, SKARTADOS, THIELE -- read once and referred to the Committee on
   Election Law
 
 AN  ACT  to amend the state finance law, in relation to the reporting of
   contributions by business entities and individuals

   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
 139-l to read as follows:
   § 139-L. REPORTING OF CONTRIBUTIONS BY BUSINESS ENTITIES AND  INDIVID-
 UALS.  1.  FOR  THE  PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   A. "BUSINESS ENTITY" MEANS:
   I. A FOR-PROFIT ENTITY AS FOLLOWS:
   A. IN THE CASE OF A CORPORATION: THE CORPORATION, ANY OFFICER  OF  THE
 CORPORATION, AND ANY PERSON OR BUSINESS ENTITY THAT OWNS OR CONTROLS TEN
 PERCENT OR MORE OF THE STOCK OF THE CORPORATION;
   B. IN THE CASE OF A GENERAL PARTNERSHIP: THE PARTNERSHIP AND ANY PART-
 NER;
   C.  IN  THE CASE OF A LIMITED PARTNERSHIP: THE LIMITED PARTNERSHIP AND
 ANY PARTNER;
   D. IN THE CASE OF A PROFESSIONAL CORPORATION: THE PROFESSIONAL  CORPO-
 RATION AND ANY SHAREHOLDER OR OFFICER;
   E.  IN  THE CASE OF A LIMITED LIABILITY COMPANY: THE LIMITED LIABILITY
 COMPANY AND ANY MEMBER;
   F. IN THE CASE OF A LIMITED LIABILITY PARTNERSHIP: THE LIMITED LIABIL-
 ITY PARTNERSHIP AND ANY PARTNER;
   G. IN THE CASE OF A SOLE PROPRIETORSHIP: THE PROPRIETOR; AND
   H. IN THE CASE OF ANY OTHER FORM OF ENTITY ORGANIZED UNDER THE LAWS OF
 THIS STATE OR ANY OTHER STATE OR FOREIGN JURISDICTION:  THE  ENTITY  AND
 ANY PRINCIPAL, OFFICER, OR PARTNER THEREOF;
   II.  ANY  SUBSIDIARY DIRECTLY OR INDIRECTLY CONTROLLED BY THE BUSINESS
 ENTITY;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD07704-01-7

 A. 9968                             2
 
   III. ANY POLITICAL ORGANIZATION ORGANIZED UNDER  SECTION  527  OF  THE
 INTERNAL  REVENUE  CODE THAT IS DIRECTLY OR INDIRECTLY CONTROLLED BY THE
 BUSINESS ENTITY, OTHER THAN A CANDIDATE  COMMITTEE,  ELECTION  FUND,  OR
 POLITICAL  PARTY  COMMITTEE;  AND  WITH  RESPECT TO AN INDIVIDUAL WHO IS
 INCLUDED  WITHIN  THE  DEFINITION  OF BUSINESS ENTITY, SUCH INDIVIDUAL'S
 SPOUSE OR DOMESTIC PARTNER, AND ANY CHILD RESIDING WITH THE  INDIVIDUAL,
 PROVIDED,  HOWEVER, THAT, THIS SECTION SHALL NOT APPLY TO A CONTRIBUTION
 MADE BY SUCH SPOUSE, DOMESTIC PARTNER, OR CHILD TO A CANDIDATE FOR  WHOM
 THE  CONTRIBUTOR  IS  ENTITLED TO VOTE OR TO A POLITICAL PARTY COMMITTEE
 WITHIN WHOSE JURISDICTION THE CONTRIBUTOR RESIDES UNLESS  SUCH  CONTRIB-
 UTION IS IN VIOLATION OF THIS SECTION; OR
   IV.  ANY  NOT-FOR-PROFIT  ORGANIZATION PURSUANT TO SECTION ONE HUNDRED
 SEVENTY-NINE-Q OF THIS CHAPTER, OR ORGANIZED UNDER THE LAWS OF THE STATE
 OR ANY OTHER STATE OR FOREIGN JURISDICTION.
   B. "CONTRIBUTION" MEANS ANY MONETARY  CONTRIBUTION,  IN-KIND  CONTRIB-
 UTION OR GIFT.
   C. "IN-KIND CONTRIBUTIONS" SHALL INCLUDE BUT NOT BE LIMITED TO:
   I. GOODS OR SERVICES OFFERED FREE OF CHARGE;
   II.  GOODS  AND  SERVICES  OFFERED  AT  LESS THAN THE USUAL AND NORMAL
 CHARGE; AND
   III. PAYMENTS BY A THIRD PARTY FOR GOODS AND SERVICES  RENDERED  TO  A
 CANDIDATE OR POLITICAL COMMITTEE.
   D. "GOVERNMENTAL ENTITY" SHALL MEAN:
   I.  ANY DEPARTMENT, BOARD, BUREAU, COMMISSION, DIVISION, OFFICE, COUN-
 CIL, COMMITTEE OR OFFICER OF THE STATE, WHETHER PERMANENT OR TEMPORARY;
   II. EACH HOUSE OF THE STATE LEGISLATURE;
   III. THE UNIFIED COURT SYSTEM;
   IV. ANY PUBLIC AUTHORITY, PUBLIC  BENEFIT  CORPORATION  OR  COMMISSION
 CREATED BY OR EXISTING PURSUANT TO THE PUBLIC AUTHORITIES LAW;
   V.  A  PUBLIC AUTHORITY OR PUBLIC BENEFIT CORPORATION, AT LEAST ONE OF
 WHOSE MEMBERS IS APPOINTED BY THE GOVERNOR OR WHO SERVES AS A MEMBER  BY
 VIRTUE OF HOLDING A CIVIL OFFICE OF THE STATE;
   VI.  MUNICIPAL  AGENCY,  AS  THAT TERM IS DEFINED IN PARAGRAPH (II) OF
 SUBDIVISION (S) OF SECTION ONE-C OF THE LEGISLATIVE LAW; OR
   VII. A SUBSIDIARY OR AFFILIATE OF SUCH A PUBLIC AUTHORITY.
   E. "ARTICLE OF PROCUREMENT" SHALL MEAN A COMMODITY, SERVICE, TECHNOLO-
 GY, PUBLIC WORK, CONSTRUCTION, REVENUE CONTRACT, THE PURCHASE,  SALE  OR
 LEASE  OF  REAL PROPERTY OR AN ACQUISITION OR GRANTING OF OTHER INTEREST
 IN REAL PROPERTY, THAT IS THE SUBJECT OF A GOVERNMENTAL PROCUREMENT.
   F. "GOVERNMENTAL PROCUREMENT" SHALL MEAN:
   I. THE PUBLIC ANNOUNCEMENT, PUBLIC NOTICE, OR PUBLIC COMMUNICATION  TO
 ANY  POTENTIAL  VENDOR  OF  A DETERMINATION OF A NEED FOR A PROCUREMENT,
 WHICH SHALL INCLUDE, BUT NOT BE LIMITED TO, THE PUBLIC  NOTIFICATION  OF
 THE  SPECIFICATIONS, BID DOCUMENTS, REQUEST FOR PROPOSALS, OR EVALUATION
 CRITERIA FOR A PROCUREMENT CONTRACT;
   II. SOLICITATION FOR A PROCUREMENT CONTRACT;
   III. EVALUATION OF A PROCUREMENT CONTRACT;
   IV. AWARD, APPROVAL, DENIAL OR DISAPPROVAL OF A PROCUREMENT  CONTRACT;
 OR
   V.  APPROVAL  OR DENIAL OF AN ASSIGNMENT, AMENDMENT (OTHER THAN AMEND-
 MENTS THAT ARE AUTHORIZED AND PAYABLE UNDER THE TERMS OF THE PROCUREMENT
 CONTRACT AS IT WAS FINALLY AWARDED OR APPROVED BY  THE  COMPTROLLER,  AS
 APPLICABLE),  RENEWAL  OR  EXTENSION  OF  A PROCUREMENT CONTRACT, OR ANY
 OTHER MATERIAL CHANGE IN THE PROCUREMENT CONTRACT RESULTING IN A  FINAN-
 CIAL BENEFIT TO THE OFFERER.

 A. 9968                             3
 
   G.  "PROCUREMENT CONTRACT" SHALL MEAN ANY CONTRACT OR OTHER AGREEMENT,
 INCLUDING AN AMENDMENT, EXTENSION, RENEWAL OR CHANGE ORDER TO AN  EXIST-
 ING  CONTRACT  (OTHER  THAN  AMENDMENTS, EXTENSIONS, RENEWALS, OR CHANGE
 ORDERS THAT ARE AUTHORIZED AND PAYABLE UNDER THE TERMS OF  THE  CONTRACT
 AS  IT  WAS  FINALLY AWARDED OR APPROVED BY THE COMPTROLLER, AS APPLICA-
 BLE), FOR AN ARTICLE OF PROCUREMENT INVOLVING  AN  ESTIMATED  ANNUALIZED
 EXPENDITURE  IN  EXCESS  OF  FIFTEEN  THOUSAND  DOLLARS. GRANTS, ARTICLE
 ELEVEN-B STATE FINANCE LAW CONTRACTS, PROGRAM CONTRACTS BETWEEN NOT-FOR-
 PROFIT ORGANIZATIONS, AS DEFINED IN ARTICLE ELEVEN-B  OF  THIS  CHAPTER,
 AND THE UNIFIED COURT SYSTEM, INTERGOVERNMENTAL AGREEMENTS, RAILROAD AND
 UTILITY FORCE ACCOUNTS, UTILITY RELOCATION PROJECT AGREEMENTS OR ORDERS,
 CONTRACTS  GOVERNING  ORGAN  TRANSPLANTS,  CONTRACTS  ALLOWING FOR STATE
 PARTICIPATION IN TRADE SHOWS, AND EMINENT DOMAIN TRANSACTIONS SHALL  NOT
 BE DEEMED PROCUREMENT CONTRACTS.
   H. "BUSINESS DEALINGS WITH THE STATE" SHALL MEAN:
   I.  ANY  PROCUREMENT  CONTRACT  FOR  ARTICLES  OF  PROCUREMENT THAT IS
 ENTERED INTO OR IN EFFECT WITH THE STATE, OTHER THAN A CONTRACT PROCURED
 THROUGH COMPETITIVE SEALED BIDDING, OR SOLE AND  SINGLE  SOURCE,  OR  AN
 EMERGENCY  CONTRACT  AWARDED  FOR  SERVICES  AND COMMODITIES PURSUANT TO
 SECTION ONE HUNDRED SIXTY-THREE OF THIS CHAPTER;
   II. ANY ACQUISITION OR DISPOSITION OF REAL PROPERTY WITH THE STATE  OR
 GOVERNMENTAL ENTITY;
   III. ONE OR MORE CONCESSIONS (OTHER THAN CONCESSIONS AWARDED THROUGH A
 COMPETITIVE  SEALED  BID)  OR  FRANCHISES FROM THE STATE OR GOVERNMENTAL
 ENTITY;
   IV. ANY CONTRACT FOR THE INVESTMENT OF STATE PENSION FUNDS,  INCLUDING
 INVESTMENTS  IN  A  PRIVATE  EQUITY  FIRM  AND CONTRACTS WITH INVESTMENT
 RELATED CONSULTANTS.
   I. THE TERM "STATEWIDE ELECTED  OFFICIAL"  SHALL  MEAN  THE  GOVERNOR,
 LIEUTENANT GOVERNOR, COMPTROLLER OR ATTORNEY GENERAL.
   2.  NO BUSINESS ENTITY OR INDIVIDUAL WHO ENGAGES IN ANY BUSINESS DEAL-
 INGS WITH THE STATE  OR  ANY  GOVERNMENTAL  ENTITY  OR  ITS  INDEPENDENT
 AUTHORITIES  IF  THE  VALUE  OF THE TRANSACTION EXCEEDS FIFTEEN THOUSAND
 DOLLARS, SHALL MAKE OR HAVE MADE MONETARY OR IN-KIND CONTRIBUTIONS OR  A
 PLEDGE  OF CONTRIBUTION IN EXCESS OF ONE THOUSAND DOLLARS TO AN INDIVID-
 UAL WHO HOLDS THE POSITION OF A STATEWIDE ELECTED OFFICIAL, A MEMBER  OF
 THE  LEGISLATURE  OR A CANDIDATE FOR SUCH POSITION, INCLUDING THE CANDI-
 DATE'S COMMITTEE OR ELECTION FUND, IF SUCH CONTRACT MUST  BE  VOTED  ON,
 ENDORSED,  PROMOTED,  OR  APPROVED  BY SUCH INDIVIDUAL OR OFFICE RELATED
 THERETO; OR A STATE, COUNTY OR MUNICIPAL POLITICAL PARTY  COMMITTEE  FOR
 ANY POLITICAL PURPOSE OR USE:
   A.  WITHIN TWELVE MONTHS IMMEDIATELY PRECEDING THE COMMENCEMENT OF THE
 BIDDING AND NEGOTIATIONS TO ENGAGE IN BUSINESS DEALINGS WITH  THE  STATE
 OR THE COMMENCEMENT OF THE GOVERNMENTAL PROCUREMENT PROCESS;
   B. DURING THE LENGTH OF THE TERM OF THE CONTRACT OR AGREEMENT IN BUSI-
 NESS DEALINGS WITH THE STATE; OR
   C.  WITHIN THE TWELVE MONTHS IMMEDIATELY FOLLOWING THE LAST DAY OF THE
 TERM OF THE CONTRACT OR AGREEMENT.
   3. A. THE STATE SHALL REQUIRE A BUSINESS ENTITY OR INDIVIDUAL,  DURING
 THE  GOVERNMENTAL  PROCUREMENT  PROCESS AND PRIOR TO THE AWARDING OF ANY
 CONTRACT OR AGREEMENT IN BUSINESS DEALINGS WITH  THE  STATE,  TO  REPORT
 THROUGH A DISCLOSURE STATEMENT LISTING ALL CONTRIBUTIONS MADE DURING THE
 PRECEDING TWELVE MONTHS TO ANY STATEWIDE ELECTED OFFICIAL, ANY MEMBER OF
 THE  LEGISLATURE  OR A CANDIDATE FOR SUCH POSITION, INCLUDING THE CANDI-
 DATE'S COMMITTEE OR ELECTION FUND OR A STATE, COUNTY OR MUNICIPAL  POLI-
 TICAL  PARTY  COMMITTEE  FOR ANY POLITICAL PURPOSE OR USE.  THE BUSINESS

 A. 9968                             4
 
 ENTITY OR INDIVIDUAL SHALL ALSO PROVIDE A WRITTEN AFFIDAVIT THAT IT  HAS
 NOT  MADE A CONTRIBUTION THAT WOULD BAR THE AWARD OF A CONTRACT PURSUANT
 TO THIS SECTION.
   B.  THE  GOVERNMENTAL  ENTITY  CONDUCTING THE GOVERNMENTAL PROCUREMENT
 SHALL REVIEW SUCH REPORTS PRIOR TO  THE  AWARDING  OF  ANY  CONTRACT  OR
 AGREEMENT  TO  ENGAGE  IN  BUSINESS DEALINGS WITH THE STATE TO DETERMINE
 WHETHER SUCH BUSINESS ENTITY OR INDIVIDUAL HAS  MADE  ANY  CONTRIBUTIONS
 EXCEEDING  THE  LIMITS SET FORTH IN SUBDIVISION TWO OF THIS SECTION. IF,
 THROUGH SUCH A REVIEW, IT IS DETERMINED THAT ANY SUCH  CONTRIBUTION,  OR
 ANY  OTHER  ACT  THAT  WOULD CONSTITUTE A BREACH OF CONTRACT PURSUANT TO
 SUBDIVISION FOUR OF THIS SECTION, OR POSES A CONFLICT OF INTEREST IN THE
 AWARDING OF ANY CONTRACT OR AGREEMENT, THE BUSINESS ENTITY OR INDIVIDUAL
 SHALL BE DISQUALIFIED FROM BIDDING ON OR BEING AWARDED SUCH CONTRACT  OR
 AGREEMENT  TO  ENGAGE  IN BUSINESS DEALINGS WITH THE STATE. THE BUSINESS
 ENTITY OR INDIVIDUAL SHALL HAVE A  CONTINUING  DUTY  TO  REPORT  TO  THE
 GOVERNMENTAL  ENTITY  THAT  OVERSEES  THE  GOVERNMENTAL  PROCUREMENT ANY
 CONTRIBUTIONS THAT CONSTITUTE A VIOLATION OF THIS SECTION THAT ARE  MADE
 DURING THE DURATION OF THE TERM OF BUSINESS DEALINGS WITH THE STATE.
   4. A. A BREACH OF CONTRACT INCLUDES:
   I. MAKING OR SOLICITING A CONTRIBUTION IN VIOLATION OF THIS SECTION;
   II.  KNOWINGLY  CONCEALING  OR MISREPRESENTING A CONTRIBUTION GIVEN OR
 RECEIVED;
   III. MAKING OR SOLICITING CONTRIBUTIONS THROUGH INTERMEDIARIES FOR THE
 PURPOSE OF CONCEALING OR MISREPRESENTING THE SOURCE OF THE CONTRIBUTION;
   IV. ENGAGING OR EMPLOYING A LOBBYIST OR A CONSULTANT WITH  THE  INTENT
 OF UNDERSTANDING THAT THE PERSON WOULD MAKE OR SOLICIT ANY CONTRIBUTION;
 AND
   V.  FUND  CONTRIBUTIONS  MADE BY THIRD PARTIES, INCLUDING CONSULTANTS,
 ATTORNEYS, FAMILY MEMBERS, AND EMPLOYEES.
   B. THE GOVERNMENTAL ENTITY CONDUCTING THE GOVERNMENTAL PROCUREMENT  OR
 OVERSEEING  THE  BUSINESS  ENTITY OR INDIVIDUAL'S BUSINESS DEALINGS WITH
 THE STATE SHALL NOTIFY THE BUSINESS ENTITY OR INDIVIDUAL OF SUCH  BREACH
 OF  CONTRACT.   SUCH BUSINESS ENTITY OR INDIVIDUAL SHALL HAVE SIXTY DAYS
 TO CURE THE DEFECT BY REQUESTING THAT THE EXCESS  CONTRIBUTIONS  TO  THE
 STATEWIDE  ELECTED  OFFICIAL,  MEMBER OF THE LEGISLATURE OR CANDIDATE BE
 RETURNED IMMEDIATELY. PROOF OF RECEIPT OF SUCH RETURN SHALL BE SUBMITTED
 TO THE COMMISSIONER AT LEAST FIVE BUSINESS DAYS PRIOR TO THE AWARDING OF
 THE CONTRACT. IN THE EVENT THAT PROOF OF RETURN OF THE  EXCESS  CONTRIB-
 UTION LIMITS ARE NOT SUBMITTED BY THE BUSINESS ENTITY OR INDIVIDUAL, THE
 STATE AGENCY SHALL REJECT THE PROPOSAL OR APPLICATION.
   C.  A  BUSINESS  ENTITY OR INDIVIDUAL DETERMINED TO HAVE WILLINGLY AND
 KNOWINGLY MADE A CONTRIBUTION IN DIRECT VIOLATION OF THIS SECTION  SHALL
 BE  LIABLE  FOR  A  PENALTY  OF UP TO THE VALUE OF ITS CONTRACT WITH THE
 GOVERNMENTAL ENTITY AND MAY BE BARRED FROM CONTRACTING WITH ANY  GOVERN-
 MENTAL ENTITY FOR A PERIOD OF FIVE YEARS.
   D.  A  BUSINESS ENTITY OR INDIVIDUAL THAT FILES A FALSE SWORN CONTRIB-
 UTIONS STATEMENT SHALL HAVE ITS CONTRACT WITH  THE  GOVERNMENTAL  ENTITY
 DECLARED  NULL AND VOID AND SHALL BE DISQUALIFIED FROM BEING AWARDED ANY
 CONTRACT WITH ANY GOVERNMENTAL ENTITY FOR A PERIOD OF  FOUR  YEARS  FROM
 THE  DATE  OF  THE  FILING OF SUCH FALSE STATEMENT. SUCH MATTER SHALL BE
 REFERRED TO THE LOCAL DISTRICT ATTORNEY FOR PROSECUTION.
   E. CONTRIBUTIONS MADE BY A BUSINESS ENTITY OR INDIVIDUAL MADE PRIOR TO
 THE EFFECTIVE DATE OF THIS SECTION SHALL NOT CONSTITUTE A VIOLATION. THE
 DISCLOSURE REQUIREMENTS SHALL NOT APPLY TO CONTRACTS RELATED TO BUSINESS
 DEALINGS WITH THE STATE AWARDED SUBSEQUENT TO THE EFFECTIVE DATE OF THIS

 A. 9968                             5
 
 SECTION IF THE REQUEST FOR PROPOSAL PROCESS WAS INITIATED PRIOR TO  SUCH
 EFFECTIVE DATE.
   F.  THE  OFFICE  OF  GENERAL  SERVICES SHALL, ON A BI-ANNUAL BASIS, IN
 JANUARY AND JULY, COMPILE A  LIST  OF  NAMES,  BASED  ON  SUCH  OFFICE'S
 RECORDS,  LISTING  ANY BUSINESS ENTITY OR INDIVIDUAL ENGAGED IN BUSINESS
 DEALINGS WITH THE STATE, AS OF THOSE MONTHS. SUCH  LIST  SHALL  BE  MADE
 AVAILABLE ON SUCH OFFICE'S WEBSITE.
   §  2. If any section of this act or any part thereof shall be adjudged
 by any court of competent jurisdiction  to  be  invalid,  such  judgment
 shall  not  affect,  impair  or  invalidate  the  remainder or any other
 section or part thereof.
   § 3. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.