NY State Senate Bill 2021-S706

Senate Bill S706

2021-2022 Legislative Session

Relates to purchasing restrictions on persons boycotting Israel and the investment of certain public funds in companies boycotting Israel

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Archive: Last Bill Status - In Senate Committee Procurement And Contracts 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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to procurement and contracts
Jan 25, 2021	committee discharged and committed to procurement and contracts
Jan 06, 2021	referred to finance

co-Sponsors

2021-S706 (ACTIVE) - Details

See Assembly Version of this Bill:: A5886
Current Committee:: Senate Procurement And Contracts
Law Section:: State Finance Law
Laws Affected:: Add §165-b, St Fin L; add §423-d, R & SS L
Versions Introduced in Other Legislative Sessions:: 2015-2016: A8220
2017-2018: A3239
2019-2020: S2430, A5847
2023-2024: S4479, A2093

2021-S706 (ACTIVE) - Summary

Relates to purchasing restrictions on persons boycotting Israel and the investment of certain public funds in companies boycotting Israel; requires the commissioner of general services to compile a list of companies boycotting Israel; establishes that such companies will be considered non-responsive bidders.

2021-S706 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S706

SPONSOR: KAPLAN
 
TITLE OF BILL:

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

 
PURPOSE:

To prohibit New York State from contracting with corporations that are
boycotting Israel.

 
SUMMARY OF PROVISIONS:

Section 1 amends the state finance law to include a new section 165-b
that defines boycott Israel, boycott activities, and persons.

Sub-section 2: Outlines the process the commissioner will utilize in

creating a list of persons not deemed to be a responsive bidder or
offerer.

Sub-section 3: A state agency shall require persons submitting a bid or
offer in response to a notice of procurement, at the time the bid is
submitted or the contract is renewed or assigned, if the person is not
identified on a list a state agency shall include certification informa-
tion in the procurement record.

Sub-section 4: Provides the actions a state agency will take, as may be
appropriate and provided by law, rule or contract, including but not
limited to imposing sanctions, seeking compliance, recovering damages or
declaring the contractor in default.  Sub-section 5: Requires the
Commissioner to report the list to the Governor and the Legislature
annually on or before October 1.

Section 2 amends the retirement and social security law to add a new
section 423-d in relation to the investment of public funds in companies
deemed to be a non-responsive bidder and offerer.

Section 3: Effective date.

 
JUSTIFICATION:

Boycott Divest and Sanction, (BDS) is an orchestrated movement designed
to weaken and delegitimize Israel through economic isolation, which will
cause great harm to one of our nation's strongest allies. Israel, being
the 4th largest recipient of New York State's exports (at $6.4 million),
has proven both a strategic and economic ally. It undermines our
national security to assist Israel's enemies.

South Carolina was the first state to enact legislation to counter the
BDS strategy followed by Illinois, Florida, Arizona and California.  18
other states have proposed similar legislation. Passing this legislation
is an important way for New York to show support to our ally.

 
LEGISLATIVE HISTORY:

S. 2430/A. 5847 of 2019/20; Referred to Senate Finance Committee
A. 3239 of 2018/2019; Referred to Governmental Operations

 
FISCAL IMPLICATIONS:

Minimal.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S706 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    706
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by Sens. KAPLAN, KAMINSKY -- read twice and ordered printed,
   and when printed to be committed to the Committee on Finance
 
 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.
   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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD00470-01-1

 S. 706                              2
 
 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
 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

 S. 706                              3
 
 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
 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.

 S. 706                              4
 
   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.

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Senate Bill S706

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Sponsored By

Anna M. Kaplan