S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6685
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 25, 2021
                                ___________
 
 Introduced  by  M.  of A. GALEF, WOERNER, DICKENS, GOTTFRIED, ZEBROWSKI,
   SEAWRIGHT, SIMON,  HYNDMAN,  NIOU,  CAHILL,  J. M. GIGLIO,  MONTESANO,
   ASHBY  --  Multi-Sponsored by -- M. of A. ENGLEBRIGHT, EPSTEIN, 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-m to read as follows:
   §  139-M. 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02943-01-1

              

 A. 6685                             2
 
   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;
   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

 A. 6685                             3
 
 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.
   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

 A. 6685                             4
 
 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
 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.

 A. 6685                             5
 
   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
 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.