S T A T E   O F   N E W   Y O R K
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                                   5847
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             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:
 
   Section  1.  The  state finance law is amended by adding a new section
 165-b to read as follows:
   § 165-B. PURCHASING RESTRICTIONS; PERSONS  BOYCOTTING  ISRAEL.  1.  AS
 USED IN THIS SECTION, THE FOLLOWING DEFINITIONS SHALL APPLY:
   (A) "BOYCOTT ISRAEL" OR "BOYCOTT ACTIVITIES" MEANS ENGAGING IN ACTIONS
 THAT  ARE  INTENDED  TO PENALIZE, INFLICT ECONOMIC HARM ON, OR OTHERWISE
 LIMIT COMMERCIAL RELATIONS WITH THE STATE OF ISRAEL OR  COMPANIES  BASED
 IN  THE  STATE  OF  ISRAEL  OR IN TERRITORIES CONTROLLED BY THE STATE OF
 ISRAEL.
   (B) "BOYCOTT ISRAEL" OR "BOYCOTT ACTIVITIES" DO  NOT  INCLUDE  ACTIONS
 NECESSARY TO COMPLY WITH APPLICABLE LAW IN THE BUSINESS'S HOME JURISDIC-
 TION.
   (C) "PERSON" MEANS:
   (I) A CORPORATION, COMPANY, LIMITED LIABILITY COMPANY, BUSINESS, BUSI-
 NESS  ASSOCIATION,  PARTNERSHIP, SOCIETY, TRUST, OR ANY OTHER NONGOVERN-
 MENTAL ENTITY, ORGANIZATION, OR GROUP.
   (II) ANY SUCCESSOR, SUBUNIT, PARENT ENTITY, OR SUBSIDIARY OF,  OR  ANY
 ENTITY  UNDER  COMMON OWNERSHIP OR CONTROL WITH, ANY ENTITY DESCRIBED IN
 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
 
   2. (A) A PERSON THAT IS IDENTIFIED ON A LIST CREATED PURSUANT TO PARA-
 GRAPH (B) OF THIS SUBDIVISION  AS  A  PERSON  THAT  BOYCOTTS  ISRAEL  AS
 DESCRIBED  IN  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)  (I)  NOT  LATER  THAN ONE HUNDRED TWENTY DAYS AFTER THE EFFECTIVE
 DATE OF THIS SECTION, THE COMMISSIONER  SHALL  DEVELOP  OR  CONTRACT  TO
 DEVELOP,  USING  CREDIBLE INFORMATION AVAILABLE TO THE PUBLIC, INCLUDING
 BUT NOT LIMITED TO INFORMATION  PROVIDED  BY  NON-PROFIT  ORGANIZATIONS,
 RESEARCH  FIRMS,  INTERNATIONAL ORGANIZATIONS AND GOVERNMENT ENTITIES, A
 LIST OF PERSONS IT DETERMINES BOYCOTT ISRAEL AS DESCRIBED IN SUBDIVISION
 ONE OF THIS SECTION. IF THE COMMISSIONER HAS CONTRACTED TO  DEVELOP  THE
 LIST,  THE  LIST  SHALL  BE FINALLY DEVELOPED NOT LATER THAN ONE HUNDRED
 TWENTY DAYS AFTER THIS  SECTION  SHALL  TAKE  EFFECT.  SUCH  LIST,  WHEN
 COMPLETED,  SHALL  BE  POSTED  ON  THE  WEBSITE OF THE OFFICE OF GENERAL
 SERVICES.  A STATEMENT BY A PERSON OR REPRESENTATIVE OF  A  PERSON  WITH
 APPARENT AUTHORITY TO MAKE SUCH A STATEMENT, THAT IT IS PARTICIPATING IN
 A BOYCOTT OF ISRAEL, OR THAT IT HAS INITIATED A BOYCOTT IN RESPONSE TO A
 REQUEST  FOR A BOYCOTT OF ISRAEL, SHALL BE CONSIDERED AS EVIDENCE THAT A
 COMPANY IS PARTICIPATING IN A BOYCOTT OF ISRAEL.
   (II) THE COMMISSIONER SHALL UPDATE THE LIST EVERY ONE  HUNDRED  EIGHTY
 DAYS.
   (III)  BEFORE  FINALIZING AN INITIAL LIST PURSUANT TO SUBPARAGRAPH (I)
 OF THIS PARAGRAPH OR AN UPDATED LIST PURSUANT TO  SUBPARAGRAPH  (II)  OF
 THIS PARAGRAPH, THE COMMISSIONER SHALL DO ALL OF THE FOLLOWING:
   (1)  PROVIDE  NINETY DAYS' WRITTEN NOTICE OF THE COMMISSIONER'S INTENT
 TO INCLUDE THE PERSON ON THE LIST. THE NOTICE SHALL  INFORM  THE  PERSON
 THAT INCLUSION ON THE LIST WOULD MAKE THE PERSON A NON-RESPONSIVE BIDDER
 OR OFFERER. THE NOTICE SHALL SPECIFY THE BOYCOTT ACTIVITIES AS DESCRIBED
 IN  SUBDIVISION  ONE  OF  THIS SECTION, AND PROVIDE THAT SUCH PERSON MAY
 APPLY TO THE COMMISSIONER, OR TO A SUPREME COURT,  TO  BE  REMOVED  FROM
 SUCH  LIST  PURSUANT TO THE REQUIREMENTS OF THIS PARAGRAPH, IF IT CEASES
 SUCH ACTIVITIES.
   (2) IN THE EVENT A PERSON INCLUDED BY THE COMMISSIONER ON THE LIST  TO
 BE  DEVELOPED  AND  PUBLISHED  IN ACCORDANCE WITH THIS PARAGRAPH, DEMON-
 STRATES TO THE COMMISSIONER OR TO A SUPREME COURT THAT  SUCH  PERSON  IS
 NOT  ENGAGED  IN SUCH BOYCOTT ACTIVITIES AS DESCRIBED IN SUBDIVISION ONE
 OF THIS SECTION, OR HAS CEASED SUCH BOYCOTTING ACTIVITIES,  THE  COMMIS-
 SIONER SHALL REMOVE SUCH PERSON FROM THE LIST DEVELOPED AND PUBLISHED IN
 ACCORDANCE WITH THIS PARAGRAPH.
   (3) THE COMMISSIONER SHALL MAKE A GOOD FAITH EFFORT TO AVOID INCLUDING
 A PERSON ON THE LIST WHO IS NOT ENGAGED IN BOYCOTTING THE STATE OF ISRA-
 EL.
   (C)  NOTWITHSTANDING  PARAGRAPHS  (A)  AND  (B) OF THIS SUBDIVISION, A
 STATE AGENCY MAY PERMIT A  PERSON  BOYCOTTING  ISRAEL  AS  DESCRIBED  BY
 SUBDIVISION  ONE  OF  THIS  SECTION  TO BE DEEMED A RESPONSIVE BIDDER OR
 OFFERER, ON A CASE-BY-CASE BASIS WITH A STATE AGENCY IF:
   (I) THE BOYCOTT ACTIVITIES WERE MADE BEFORE THE EFFECTIVE 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 PLAN TO CEASE SUCH ACTIVITIES AND TO REFRAIN  FROM
 ENGAGING IN ANY NEW BOYCOTT ACTIVITIES; OR
   (II)  THE  STATE  AGENCY MAKES A DETERMINATION THAT THE COMMODITIES OR
 SERVICES ARE NECESSARY FOR THE STATE AGENCY TO PERFORM ITS FUNCTIONS AND
 THAT, ABSENT SUCH AN EXEMPTION, THE STATE  AGENCY  WOULD  BE  UNABLE  TO

 A. 5847                             3
 
 OBTAIN  THE  COMMODITIES  OR SERVICES FOR WHICH THE CONTRACT IS OFFERED.
 SUCH DETERMINATION SHALL BE ENTERED INTO THE PROCUREMENT RECORD.
   3.  (A)  A  STATE  AGENCY SHALL REQUIRE A PERSON THAT SUBMITS A BID OR
 OFFER IN RESPONSE TO A NOTICE OF PROCUREMENT, OR THAT PROPOSES TO  RENEW
 AN  EXISTING  PROCUREMENT  CONTRACT  WITH  A STATE AGENCY OR PROPOSES TO
 ASSUME THE RESPONSIBILITY OF A  CONTRACTOR  PURSUANT  TO  A  PROCUREMENT
 CONTRACT  WITH  A  STATE  AGENCY  OR  OTHERWISE PROPOSES TO ENTER INTO A
 CONTRACT WITH A STATE AGENCY WITH RESPECT TO A CONTRACT FOR COMMODITIES,
 SERVICES, CONSTRUCTION, OR CONTRACTS ENTERED 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 A LIST
 CREATED  PURSUANT TO PARAGRAPH (B) OF SUBDIVISION TWO OF THIS SECTION. A
 STATE AGENCY SHALL INCLUDE CERTIFICATION INFORMATION IN THE  PROCUREMENT
 RECORD.
   (B)  A  PERSON  THAT SUBMITS A BID OR OFFER IN RESPONSE TO A NOTICE OF
 PROCUREMENT OR THAT PROPOSES TO RENEW AN EXISTING  PROCUREMENT  CONTRACT
 WITH  A  STATE  AGENCY  OR  PROPOSES  TO  ASSUME THE RESPONSIBILITY OF A
 CONTRACTOR PURSUANT TO A PROCUREMENT CONTRACT WITH A  STATE  AGENCY,  OR
 OTHERWISE  PROPOSES  TO  ENTER  INTO A CONTRACT WITH A STATE AGENCY WITH
 RESPECT TO  A  CONTRACT  FOR  COMMODITIES,  SERVICES,  CONSTRUCTION,  OR
 CONTRACTS  ENTERED PURSUANT TO SECTION EIGHT OF THE PUBLIC BUILDINGS LAW
 OR SECTION THIRTY-EIGHT OF THE HIGHWAY LAW SHALL  NOT  UTILIZE,  ON  THE
 CONTRACT  WITH THE STATE AGENCY, ANY SUBCONTRACTOR THAT IS IDENTIFIED ON
 A LIST CREATED PURSUANT TO PARAGRAPH (B)  OF  SUBDIVISION  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  VIOLATION
 THEREOF,  THE  STATE  AGENCY SHALL REVIEW SUCH INFORMATION AND OFFER THE
 PERSON AN OPPORTUNITY TO RESPOND. IF THE  PERSON  FAILS  TO  DEMONSTRATE
 THAT IT HAS CEASED ITS BOYCOTT ACTIVITIES WHICH ARE IN VIOLATION OF THIS
 ACT  WITHIN  NINETY DAYS AFTER THE DETERMINATION OF SUCH VIOLATION, 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,
 IMPOSING SANCTIONS, SEEKING COMPLIANCE, RECOVERING DAMAGES OR  DECLARING
 THE CONTRACTOR IN DEFAULT.
   5.  THE  COMMISSIONER  SHALL  REPORT TO THE GOVERNOR, COMPTROLLER, THE
 TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY  ANNU-
 ALLY  ON  OR BEFORE OCTOBER FIRST, ON THE STATUS OF THIS SECTION AND ANY
 RULES OR REGULATIONS ADOPTED THEREUNDER.
   § 2. The retirement and social security law is amended by adding a new
 section 423-d to read as follows:
   § 423-D. INVESTMENT OF CERTAIN PUBLIC FUNDS  IN  COMPANIES  BOYCOTTING
 ISRAEL. 1. FOR PURPOSES OF THIS SECTION:
   (A)  "BOYCOTT  ISRAEL"  MEANS ENGAGING IN ACTIONS THAT ARE INTENDED TO
 PENALIZE, INFLICT  ECONOMIC  HARM  ON,  OR  OTHERWISE  LIMIT  COMMERCIAL
 RELATIONS  WITH  THE  STATE OF ISRAEL OR COMPANIES BASED IN THE STATE OF
 ISRAEL OR IN TERRITORIES CONTROLLED BY THE STATE OF ISRAEL.
   (B) "BOYCOTT ISRAEL" DOES NOT INCLUDE ACTIONS NECESSARY TO COMPLY WITH
 APPLICABLE LAW IN THE BUSINESS'S HOME JURISDICTION.
   2. ON AND AFTER THE EFFECTIVE DATE  OF  THIS  SECTION,  NO  MONEYS  OR
 ASSETS  OF  THE  COMMON RETIREMENT FUND SHALL BE INVESTED IN THE STOCKS,
 SECURITIES OR OTHER OBLIGATIONS OF ANY INSTITUTION OR COMPANY BOYCOTTING
 ISRAEL. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, NO  ASSETS
 OF  ANY  PENSION  OR  ANNUITY  FUND  UNDER THE JURISDICTION OF THE COMP-
 TROLLER, SHALL BE INVESTED IN ANY BANK OR  FINANCIAL  INSTITUTION  WHICH

 A. 5847                             4
 
 DIRECTLY  OR  THROUGH  A  SUBSIDIARY  BOYCOTTS ISRAEL AND NO SUCH ASSETS
 SHALL BE INVESTED IN THE STOCKS, SECURITIES OR OTHER OBLIGATIONS OF  ANY
 COMPANY WHICH DIRECTLY OR THROUGH A SUBSIDIARY BOYCOTTS ISRAEL.
   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, REDEMPTION,  DIVESTMENT  OR  WITHDRAWAL
 SHALL  BE  COMPLETED  NO  LATER THAN THREE YEARS FOLLOWING THE EFFECTIVE
 DATE OF THIS SECTION.
   4. WITHIN SIXTY DAYS AFTER THE EFFECTIVE DATE  OF  THIS  SECTION,  THE
 COMPTROLLER  SHALL  ISSUE A REPORT TO THE GOVERNOR, THE COMPTROLLER, THE
 TEMPORARY PRESIDENT OF THE SENATE, AND THE SPEAKER OF THE  ASSEMBLY  AND
 FILE  WITH  THE  LEGISLATURE  A REPORT OF ALL INVESTMENTS HELD AS OF THE
 EFFECTIVE DATE OF THIS SECTION WHICH ARE IN VIOLATION OF THE  PROVISIONS
 OF  THIS SECTION. EVERY YEAR THEREAFTER, THE COMPTROLLER SHALL REPORT ON
 ALL INVESTMENTS SOLD, REDEEMED, DIVESTED OR WITHDRAWN IN COMPLIANCE WITH
 THIS SECTION. EACH REPORT AFTER  THE  INITIAL  REPORT  SHALL  PROVIDE  A
 DESCRIPTION  OF  THE  PROGRESS  WHICH THE COMPTROLLER HAS MADE SINCE THE
 PREVIOUS REPORT AND SINCE THE EFFECTIVE DATE OF THIS SECTION.
   § 3. This act shall take effect immediately.