NY State Senate Bill 2017-S8039

Archive: Last Bill Status - In Senate Committee Elections Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 22, 2018	referred to elections

co-Sponsors

2017-S8039 (ACTIVE) - Details

See Assembly Version of this Bill:: A9924
Current Committee:: Senate Elections
Law Section:: Election Law
Laws Affected:: Add §14-131, amd §14-126, El L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S3167, A113
2021-2022: S483, A5839
2023-2024: S6247, A7179

2017-S8039 (ACTIVE) - Summary

Relates to government vendor contributions.

2017-S8039 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8039

SPONSOR: CROCI
 
TITLE OF BILL:  An act to amend the election law, in relation to
government vendor contributions

 
PURPOSE OF THE BILL:

This bill would reduce the appearance of or actual improper influence of
the state contracting process and increase its fairness by banning
campaign contributions from a company seeking state contracts to office-
holders with authority over procuring entities during a "restricted
vendor contribution period." Prospective vendors would be barred from
making contributions when responding to a request for proposal (RFP),
for six months after winning a contract, or when lobbying to create a
procurement opportunity.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill creates a new section 14-131 of the Election Law.

Subsection 1 (a) prohibits vendor contributions, indirectly or directly,
to political committees during the restricted vendor contribution period
operationally, when those committees are controlled by officeholders
with authority over state governmental entities responsible for issuing
a procurement solicitation, evaluating responses, or determining or
awarding a final contract or to political committees of candidates for
office of such a government entity.

Subsection 1 (b) treats the Senate and Assembly as different govern-
mental entities for purposes of this section.

Subsection 1 (c) requires the state government entity issuing a procure-
ment solicitation to include a notice of the prohibition on campaign
contributions by vendors submitting a proposal in response to the solic-
itation.

Subsection 2 defines the term "business entity" to include affiliated
subsidiaries and political organizations directly or indirectly
controlled by the business entity.

Subsection 3 defines the beginning of the "restricted vendor contrib-
ution period."

Subsection 4 indicates when the "restricted vendor contribution period"
ends.

Section 2 of the bill amends sections 14-126 of Election Law by adding a
new subdivision 7.

Subdivision 7 (a) provides for a penalty of up to $10,000 or 200% of the
amount of the contribution.

Subdivision 7 (b) provides that any person acting on behalf of an
officeholder, candidate or political committee who receives a contrib-
ution in contravention with the restricted vendor contribution prohibi-
tion will be required to refund the contribution.

Section 3 establishes the effective date of the legislation.
 
JUSTIFICATION:

New York State government has over 50,000 contracts worth billions of
dollars with companies that provide products and services across numer-
ous industries. Allegations of bid rigging of contacts in New York have
led to indictments and trials of company executives and state officials.
The federal government as well as nineteen states and New York City have
laws that restrict campaign contributions from entities seeking govern-
ment contracts.

Many state contracts are bid out through Requests for Proposals (RFPs).
Other contracts are the result of lobbying and engagement of government
by vendors to make their products and services known to state officials,
which may result in a competitive bid by the procuring entity or a
contract reached with a specific vendor without a competitive bidding
process. Currently, when a vendor presents its products and services to
a governmental entity, it may also make campaign contributions to
officeholders overseeing that entity. This may unfairly influence the
procurement process or create a perception of improper influence. This
legislation prohibits vendors from making contributions to the office-
holder with authority over the bidding entity during a "restricted
vendor contribution period" or two candidates for such offices. The
"restricted vendor contribution period" varies depending on vendors
activities but at minimum covers from when an RFP is issued to when a
contract is awarded when a vendor makes a bid. The restricted period
lasts six months beyond the award of the contract for the winning
vendor. A vendor lobbying to create a procurement opportunity or on an
awarded contracts is also prohibited from making contributions during
that time. Contributions to legislators will only be banned if the
legislature is bidding for product or service, and limited to vendors
lobbying or bidding for a specific contract for that particular product
or service.

 
PRIOR LEGISLATIVE HISTORY:

New bill (similar to Governor's proposal, part L of A.3010/S.2010 of
2017 and Part L of A9510/S.7510 of 2018)

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None

 
EFFECTS ON FINES. TERMS OF IMPRISONMENT AND OTHER PENAL SANCTIONS:

Vendors in violation of the law are subject to a civil penalty up to
$10,000 or 200% of the amount of the contribution, whichever is greater.

 
EFFECTIVE DATE:
This act shall take effect on the 180th day after it shall have become a
law.

2017-S8039 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8039
 
                             I N  S E N A T E
 
                              March 22, 2018
                                ___________
 
 Introduced  by  Sen.  CROCI  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Elections
 
 AN ACT to amend the election  law,  in  relation  to  government  vendor
   contributions
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The election law is amended by adding a new section  14-131
 to read as follows:
   § 14-131. GOVERNMENT VENDOR CONTRIBUTIONS. 1. (A) IT SHALL BE UNLAWFUL
 DURING  THE RESTRICTED VENDOR CONTRIBUTION PERIOD FOR ANY PERSON, ORGAN-
 IZATION, GROUP OF PERSONS, OR BUSINESS ENTITY THAT SUBMITS A BID, QUOTA-
 TION, OFFER OR RESPONSE TO A STATE GOVERNMENTAL ENTITY POSTING OR SOLIC-
 ITATION FOR PROCUREMENT TO MAKE A CONTRIBUTION TO ANY OFFICEHOLDER OF OR
 WITH AUTHORITY OVER THE STATE GOVERNMENTAL ENTITY OR ENTITIES  RESPONSI-
 BLE  FOR  ISSUING  SUCH  PROCUREMENT POSTING OR SOLICITATION, EVALUATING
 RESPONSES TO THE PROCUREMENT POSTING OR  SOLICITATION  FOR  PURPOSES  OF
 DETERMINING  AN  AWARD,  OR  APPROVING  THE  SELECTION OF AN AWARDEE, OR
 AWARDING THE FINAL CONTRACT, OR TO ANY CANDIDATE FOR AN OFFICE  OF  SUCH
 GOVERNMENTAL  ENTITY,  INCLUDING  TO  SUCH OFFICEHOLDER'S OR CANDIDATE'S
 AUTHORIZED POLITICAL COMMITTEES OR POLITICAL COMMITTEES THE OFFICEHOLDER
 OR CANDIDATE EXERTS OPERATIONAL CONTROL OVER. IT SHALL FURTHER BE UNLAW-
 FUL, PURSUANT TO SECTION 14-120 OF THIS ARTICLE, TO  MAKE  CONTRIBUTIONS
 TO  POLITICAL  COMMITTEES  NOT AUTHORIZED OR OPERATIONALLY CONTROLLED BY
 THE OFFICEHOLDER OR CANDIDATE FOR THE PURPOSE OF TRANSFERRING A CONTRIB-
 UTION TO THE OFFICEHOLDER'S OR CANDIDATE'S AUTHORIZED POLITICAL  COMMIT-
 TEES OR POLITICAL COMMITTEES THEY EXERT OPERATIONAL CONTROL OVER.
   (B)  FOR  PURPOSES  OF  THIS  SECTION THE ASSEMBLY AND SENATE SHALL BE
 SEPARATE AND DISTINCT GOVERNMENTAL ENTITIES WHEN A PARTICULAR POSTING OR
 SOLICITATION FOR PROCUREMENT IS ISSUED BY ONLY ONE RESPECTIVE HOUSE.
   (C) THE STATE GOVERNMENTAL ENTITY  DIRECTLY  RESPONSIBLE  FOR  ISSUING
 SUCH  POSTING  OR SOLICITATION FOR PROCUREMENT SHALL INCLUDE A NOTICE OF
 THE PROHIBITION ESTABLISHED BY THIS SECTION AND THE  STATE  GOVERNMENTAL
 ENTITY RESPONSIBLE FOR EVALUATING RESPONSES TO SUCH POSTING OR SOLICITA-
 TION  SHALL  PROVIDE  TO  ANY PERSON, ORGANIZATION, GROUP OF PERSONS, OR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD14548-01-8

 S. 8039                             2

 BUSINESS ENTITY THAT SUBMITS A PROPOSAL IN RESPONSE TO SUCH  POSTING  OR
 SOLICITATION A NOTICE OF THE PROHIBITION ESTABLISHED BY THIS SECTION AND
 THE RESTRICTED VENDOR CONTRIBUTION PERIOD COMMENCEMENT DATE.
   2.  AS  USED IN THIS SECTION "BUSINESS ENTITY" MEANS A BUSINESS CORPO-
 RATION, PROFESSIONAL SERVICES CORPORATION,  LIMITED  LIABILITY  COMPANY,
 PARTNERSHIP,  LIMITED  PARTNERSHIP,  BUSINESS  TRUST, ASSOCIATION OR ANY
 OTHER LEGAL COMMERCIAL ENTITY ORGANIZED UNDER THE LAWS OF THIS STATE  OR
 ANY  OTHER  STATE  OR  FOREIGN  JURISDICTION,  INCLUDING  ANY SUBSIDIARY
 DIRECTLY OR INDIRECTLY CONTROLLED BY THE BUSINESS ENTITY, AND ANY  POLI-
 TICAL ORGANIZATION, INCLUDING BUT NOT LIMITED TO ANY POLITICAL ORGANIZA-
 TION  ORGANIZED  UNDER SECTION 527 OF THE INTERNAL REVENUE CODE, THAT IS
 DIRECTLY OR INDIRECTLY CONTROLLED BY THE BUSINESS ENTITY.
   3. THE RESTRICTED VENDOR CONTRIBUTION PERIOD DESCRIBED IN THIS SECTION
 SHALL COMMENCE, WITH RESPECT TO A SPECIFIC PERSON,  ORGANIZATION,  GROUP
 OF PERSONS, OR BUSINESS ENTITY WHEN IT FILES A STATEMENT OF REGISTRATION
 PURSUANT  TO  SECTION ONE-E OF THE LEGISLATIVE LAW, OR ENGAGES LOBBYING,
 AS DEFINED BY SUBDIVISION (C) OF SECTION ONE-C OF THE  LEGISLATIVE  LAW,
 TO GENERATE A PROCUREMENT OPPORTUNITY OR PILOT PROGRAM OR SUBMITS A BID,
 QUOTATION, OFFER OR RESPONSE TO THE STATE GOVERNMENTAL ENTITY POSTING OR
 SOLICITATION,  AT THE EARLIEST POSTING, ON A STATE GOVERNMENTAL ENTITY'S
 WEBSITE, IN A NEWSPAPER OF GENERAL CIRCULATION  OR  IN  THE  PROCUREMENT
 OPPORTUNITIES  NEWSLETTER  IN  ACCORDANCE  WITH  ARTICLE  FOUR-C  OF THE
 ECONOMIC DEVELOPMENT LAW OF WRITTEN NOTICE, ADVERTISEMENT  OR  SOLICITA-
 TION OF A REQUEST FOR PROPOSAL, INVITATION FOR BIDS, OR SOLICITATIONS OF
 PROPOSALS,  OR  ANY  OTHER  METHOD PROVIDED FOR BY LAW OR REGULATION FOR
 SOLICITING A RESPONSE FROM OFFERERS INTENDING TO RESULT IN A PROCUREMENT
 CONTRACT  WITH  A  STATE  GOVERNMENTAL  ENTITY.  THE  RESTRICTED  VENDOR
 CONTRIBUTION  PERIOD  DOES NOT APPLY TO A PERSON, ORGANIZATION, GROUP OF
 PERSONS OR BUSINESS ENTITY THAT IS RESPONDING TO  A  STATE  GOVERNMENTAL
 ENTITY'S REQUEST FOR INFORMATION OR OTHER INFORMATIONAL EXCHANGES OCCUR-
 RING  PRIOR  TO  SUCH  GOVERNMENTAL ENTITY'S POSTING OR SOLICITATION FOR
 PROCUREMENT PROVIDED IT HAS NOT FILED A STATEMENT OF REGISTRATION PURSU-
 ANT TO SECTION ONE-E OF THE LEGISLATIVE LAW OR ENGAGED IN  LOBBYING,  AS
 DEFINED  BY  SUBDIVISION (C) OF SECTION ONE-C OF THE LEGISLATIVE LAW, TO
 GENERATE A PROCUREMENT OPPORTUNITY OR PILOT PROGRAM.
   4. THE RESTRICTED VENDOR CONTRIBUTION PERIOD DESCRIBED IN THIS SECTION
 SHALL END WITH RESPECT TO A  SPECIFIC  PERSON,  ORGANIZATION,  GROUP  OF
 PERSONS, OR BUSINESS ENTITY IF:
   (A)  THE PERSON, ORGANIZATION, GROUP OF PERSONS, OR BUSINESS ENTITY IS
 THE RECIPIENT  OF  THE  FINAL  CONTRACT  AWARD,  THE  RESTRICTED  VENDOR
 CONTRIBUTION  PERIOD SHALL END SIX MONTHS AFTER THE FINAL CONTRACT AWARD
 AND APPROVAL BY THE STATE GOVERNMENTAL ENTITY AND, WHERE APPLICABLE, THE
 STATE COMPTROLLER AND IF THE PERSON, ORGANIZATION, GROUP OF  PERSONS  OR
 BUSINESS  ENTITY  DOES  NOT LOBBY ON THE EXECUTION OF THE CONTRACT AFTER
 ITS AWARD; OR
   (B) THE PERSON, ORGANIZATION, GROUP OF PERSONS, OR BUSINESS ENTITY  IS
 NOT  THE  RECIPIENT  OF  THE FINAL CONTRACT AWARD, THE RESTRICTED VENDOR
 CONTRIBUTION PERIOD SHALL END WITH THE FINAL CONTRACT AWARD AND APPROVAL
 BY THE STATE GOVERNMENTAL ENTITY AND, WHERE APPLICABLE, THE STATE  COMP-
 TROLLER.
   5.  THE  RESTRICTED  VENDOR  CONTRIBUTION PERIOD SHALL RECOMMENCE IF A
 PERSON, ORGANIZATION, GROUP OF PERSONS OR  BUSINESS  ENTITY  ENGAGES  IN
 ACTIVITY PURSUANT TO SUBDIVISION THREE OF THIS SECTION.
   §  2.  Section  14-126  of the election law is amended by adding a new
 subdivision 7 to read as follows:

 S. 8039                             3
 
   7. (A) ANY PERSON, ORGANIZATION, GROUP OF PERSONS, OR BUSINESS  ENTITY
 AS  THAT  TERM  IS  USED  IN  SECTION 14-131 OF THIS ARTICLE, WHO, UNDER
 CIRCUMSTANCES EVINCING AN INTENT TO VIOLATE SUCH LAW, MAKES  A  CONTRIB-
 UTION  IN  CONTRAVENTION  OF  SECTION  14-131  OF  THIS ARTICLE SHALL BE
 SUBJECT  TO  A  CIVIL  PENALTY NOT TO EXCEED THE GREATER OF TEN THOUSAND
 DOLLARS OR AN AMOUNT EQUAL TO TWO HUNDRED PERCENT OF  THE  CONTRIBUTION,
 TO  BE RECOVERABLE IN A SPECIAL PROCEEDING OR CIVIL ACTION TO BE BROUGHT
 BY THE STATE BOARD OF ELECTIONS CHIEF ENFORCEMENT COUNSEL.
   (B) ANY PERSON WHO, ACTING AS OR ON BEHALF OF AN OFFICEHOLDER,  CANDI-
 DATE,  OR  POLITICAL  COMMITTEE,  ACCEPTS  A  CONTRIBUTION OR RECEIVES A
 TRANSFER IN CONTRAVENTION OF SECTION 14-131 OF  THIS  ARTICLE  SHALL  BE
 REQUIRED TO REFUND SUCH CONTRIBUTION.
   § 3. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Senate Bill S8039

Sponsored By

Archive: Last Bill Status - In Senate Committee Elections Committee

co-Sponsors

2017-S8039 (ACTIVE) - Details

2017-S8039 (ACTIVE) - Summary

2017-S8039 (ACTIVE) - Sponsor Memo

2017-S8039 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S8039

Share this bill

Sponsored By

Thomas D. Croci

Archive: Last Bill Status - In Senate Committee Elections Committee

co-Sponsors

Luis R. Sepúlveda

2017-S8039 (ACTIVE) - Details

2017-S8039 (ACTIVE) - Summary

2017-S8039 (ACTIVE) - Sponsor Memo

2017-S8039 (ACTIVE) - Bill Text download pdf

Comments