S T A T E O F N E W Y O R K
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8446
I N S E N A T E
March 1, 2022
___________
Introduced by Sen. REICHLIN-MELNICK -- read twice and ordered printed,
and when printed to be committed to the Committee on Procurement and
Contracts
AN ACT to amend the state finance law and the retirement and social
security law, in relation to enacting the "stop Russian aggression
act"
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "stop Russian aggression act".
§ 2. The state finance law is amended by adding a new section 165-b to
read as follows:
§ 165-B. PURCHASING RESTRICTIONS; PERSONS DOING BUSINESS WITH OR IN
THE RUSSIAN FEDERATION. 1. AS USED IN THIS SECTION, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
(A) "PERSON" MEANS:
(I) A NATURAL PERSON, CORPORATION, COMPANY, LIMITED LIABILITY COMPANY,
BUSINESS, BUSINESS ASSOCIATION, PARTNERSHIP, SOCIETY, TRUST, OR ANY
OTHER NONGOVERNMENTAL 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.
(B) "DOING BUSINESS WITH OR IN THE RUSSIAN FEDERATION" MEANS ENGAGING
IN ANY ACTIVITY OR TRANSACTION FOR THE PURPOSE OF FINANCIAL OR PECUNIARY
GAIN OR PROFIT WITH THE RUSSIAN FEDERATION OR PERSONS BASED IN OR WITH
LOCATIONS IN THE RUSSIAN FEDERATION OR IN TERRITORIES CONTROLLED BY THE
RUSSIAN FEDERATION.
2. (A) A PERSON THAT IS IDENTIFIED ON A LIST CREATED PURSUANT TO PARA-
GRAPH (B) OF THIS SUBDIVISION AS A PERSON THAT IS DOING BUSINESS WITH OR
IN THE RUSSIAN FEDERATION AS DESCRIBED IN SUBDIVISION ONE OF THIS
SECTION, SHALL NOT BE DEEMED A RESPONSIVE BIDDER OR OFFEROR 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14854-02-2
S. 8446 2
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 IS DOING BUSINESS WITH OR IN THE RUSSIAN
FEDERATION 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 THE
EFFECTIVE DATE OF THIS SECTION. 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 DOING BUSINESS WITH OR IN THE RUSSIAN
FEDERATION, SHALL BE CONSIDERED AS EVIDENCE THAT A COMPANY IS DOING
BUSINESS WITH OR IN THE RUSSIAN FEDERATION. THE COMMISSIONER MAY
EXCLUDE FROM THE LIST PERSONS WHO ENGAGE IN ACTIVITIES OR TRANSACTIONS
OF NOMINAL OR NEGLIGIBLE VALUE.
(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 OFFEROR. THE NOTICE SHALL SPECIFY THE BUSINESS 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 BUSINESS ACTIVITIES AS DESCRIBED IN SUBDIVISION ONE
OF THIS SECTION, OR HAS CEASED SUCH BUSINESS ACTIVITIES, THE COMMISSION-
ER SHALL REMOVE SUCH PERSON FROM THE LIST DEVELOPED AND PUBLISHED IN
ACCORDANCE WITH THIS PARAGRAPH; AND
(3) THE COMMISSIONER SHALL MAKE A GOOD FAITH EFFORT TO AVOID INCLUDING
A PERSON ON THE LIST WHO IS NOT DOING BUSINESS WITH OR IN THE RUSSIAN
FEDERATION.
(C) NOTWITHSTANDING PARAGRAPHS (A) AND (B) OF THIS SUBDIVISION, A
STATE AGENCY MAY PERMIT A PERSON DOING BUSINESS WITH OR IN THE RUSSIAN
FEDERATION AS DESCRIBED BY SUBDIVISION ONE OF THIS SECTION TO BE DEEMED
A RESPONSIVE BIDDER OR OFFEROR, ON A CASE-BY-CASE BASIS WITH A STATE
AGENCY IF:
(I) THE BUSINESS 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, PUBLI-
CIZED, AND IS IMPLEMENTING A PLAN TO CEASE SUCH ACTIVITIES AND TO
REFRAIN FROM ENGAGING IN ANY NEW BUSINESS 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
AN EXISTING PROCUREMENT CONTRACT WITH A STATE AGENCY OR PROPOSES TO
S. 8446 3
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 BUSINESS 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.
§ 3. The retirement and social security law is amended by adding a new
section 423-d to read as follows:
§ 423-D. RUSSIAN BUSINESS DIVESTMENT. 1. AS USED IN THIS SECTION:
A. "PERSON" MEANS:
(I) A NATURAL PERSON, CORPORATION, COMPANY, LIMITED LIABILITY COMPANY,
BUSINESS, BUSINESS ASSOCIATION, PARTNERSHIP, SOCIETY, TRUST, OR ANY
OTHER NONGOVERNMENTAL 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.
B. "DOING BUSINESS WITH OR IN THE RUSSIAN FEDERATION" MEANS ENGAGING
IN ANY ACTIVITY OR TRANSACTION FOR THE PURPOSE OF FINANCIAL OR PECUNIARY
GAIN OR PROFIT WITH THE RUSSIAN FEDERATION OR PERSONS BASED IN OR WITH
LOCATIONS IN THE RUSSIAN FEDERATION OR IN TERRITORIES CONTROLLED BY THE
RUSSIAN FEDERATION.
C. "DIRECT INVESTMENT" MEANS OWNERSHIP OF AN INDIVIDUAL STOCK, SECURI-
TY, EQUITY, ASSET, OR OTHER OBLIGATION OF A CORPORATION OR COMPANY.
D. "EXCLUSION LIST" MEANS THE LIST CREATED PURSUANT TO PARAGRAPH A OF
SUBDIVISION TWO OF THIS SECTION.
S. 8446 4
E. "INDIRECT INVESTMENT" MEANS A HOLDING IN AN INVESTMENT VEHICLE THAT
DIRECTLY OR INDIRECTLY OWNS AN INDIVIDUAL STOCK, SECURITY, EQUITY,
ASSET, OR OTHER OBLIGATION OF A CORPORATION OR COMPANY.
2. A. WITHIN SIX MONTHS OF THE EFFECTIVE DATE OF THIS SECTION, THE
COMPTROLLER SHALL CREATE AN EXCLUSION LIST OF ALL PERSONS DOING BUSINESS
WITH OR IN THE RUSSIAN FEDERATION IN WHOSE STOCKS, SECURITIES, EQUITIES,
ASSETS, OR OTHER OBLIGATIONS THE COMMON RETIREMENT FUND HAS ANY MONEYS
OR ASSETS DIRECTLY INVESTED.
B. UPON COMPLETION OF THE EXCLUSION LIST, IT SHALL BE MADE PUBLICLY
AVAILABLE, AND A COPY SHALL BE SENT TO THE TEMPORARY PRESIDENT OF THE
SENATE AND THE SPEAKER OF THE ASSEMBLY.
C. THE COMPTROLLER SHALL SUBMIT NOTIFICATION TO ANY PERSON THAT HAS
BEEN INCLUDED IN THE EXCLUSION LIST INFORMING THEM OF THEIR INCLUSION,
AS WELL AS THE REQUIREMENTS OF SUBDIVISIONS THREE AND FIVE OF THIS
SECTION.
D. AT THE COMPTROLLER'S DISCRETION, BUT NO LATER THAN TWO YEARS AFTER
THE COMPLETION OF THE EXCLUSION LIST, AND NO LESS FREQUENTLY THAN ANNU-
ALLY THEREAFTER, THE COMPTROLLER SHALL UPDATE THE EXCLUSION LIST TO
REMOVE ANY PERSON THAT IS NO LONGER DOING BUSINESS WITH OR IN THE
RUSSIAN FEDERATION, AND ADD ANY PERSON NECESSARY TO COMPLY WITH PARA-
GRAPH A OF THIS SUBDIVISION, WITH THE EXCEPTION OF SUCH PERSONS REMOVED
FROM THE EXCLUSION LIST PURSUANT TO PARAGRAPH B OF SUBDIVISION FOUR OF
THIS SECTION.
3. A. AT ANY TIME FOLLOWING THE PUBLICATION OF THE EXCLUSION LIST, ANY
PERSON INCLUDED IN THE LIST MAY SUBMIT TO THE COMPTROLLER A REQUEST FOR
REMOVAL ON THE BASIS OF CLEAR AND CONVINCING EVIDENCE THAT THEY ARE NOT
CURRENTLY DOING BUSINESS WITH OR IN THE RUSSIAN FEDERATION AS DEFINED IN
SUBDIVISION ONE OF THIS SECTION OR THAT THEY WILL NO LONGER MEET SUCH
DEFINITION BY JANUARY FIRST, TWO THOUSAND THIRTY.
B. UPON SATISFACTION THAT A PERSON HAS MET THE REQUIREMENTS OF PARA-
GRAPH A OF THIS SUBDIVISION, THE COMPTROLLER SHALL REMOVE THAT CORPO-
RATION OR COMPANY FROM THE EXCLUSION LIST, AND PROVIDE A WRITTEN EXPLA-
NATION FOR SUCH REMOVAL TO THE TEMPORARY PRESIDENT OF THE SENATE AND THE
SPEAKER OF THE ASSEMBLY.
4. A. WITHIN SIX MONTHS FROM THE COMPLETION OF THE EXCLUSION LIST THE
COMPTROLLER SHALL ISSUE A DETERMINATION AS TO WHETHER DIVESTMENT FROM
ANY OR ALL PERSONS ON THE EXCLUSION LIST, IN WHOLE OR IN PART, PURSUANT
TO SUBDIVISION FIVE OF THIS SECTION COMPLIES WITH HIS OR HER FIDUCIARY
OBLIGATIONS AND THE PRUDENT INVESTOR RULE AS DEFINED BY SECTION 11-2.3
OF THE ESTATES, POWERS AND TRUSTS LAW. THE COMPTROLLER SHALL MAKE SUCH
DETERMINATION PUBLICLY AVAILABLE AND A COPY SHALL BE SENT TO THE TEMPO-
RARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY.
B. IF THE COMPTROLLER DETERMINES THAT DIVESTMENT FROM ANY PERSON ON
THE EXCLUSION LIST DOES NOT COMPLY WITH HIS OR HER FIDUCIARY OBLIGATIONS
AND THE PRUDENT INVESTOR RULE AS DEFINED BY SECTION 11-2.3 OF THE
ESTATES, POWERS AND TRUSTS LAW, THAT PERSON SHALL BE REMOVED FROM THE
EXCLUSION LIST.
C. AT ANY TIME, SUBJECT TO THE COMPTROLLER'S DISCRETION, BUT NO LATER
THAN TWO YEARS FROM THE EFFECTIVE DATE OF THIS SECTION, AND EVERY TWO
YEARS THEREAFTER, ANY PERSON REMOVED FROM THE EXCLUSION LIST PURSUANT TO
PARAGRAPH B OF THIS SUBDIVISION SHALL BE RETURNED TO THE EXCLUSION LIST,
SUBJECT TO A NEW DETERMINATION OF PRUDENCE ISSUED AT THAT TIME PURSUANT
TO PARAGRAPH A OF THIS SUBDIVISION.
5. A. COMMENCING ONE YEAR AFTER THE EFFECTIVE DATE OF THIS SECTION,
SUBJECT TO AN AFFIRMATIVE DETERMINATION OF PRUDENCE PURSUANT TO SUBDIVI-
SION FOUR OF THIS SECTION, AND IN ACCORDANCE WITH SOUND INVESTMENT
S. 8446 5
CRITERIA AND CONSISTENT WITH HIS OR HER FIDUCIARY OBLIGATIONS, THE COMP-
TROLLER SHALL: (I) DIVEST THE COMMON RETIREMENT FUND OF ANY STOCKS,
SECURITIES, EQUITIES, ASSETS, OR OTHER OBLIGATIONS OF PERSONS ON THE
EXCLUSION LIST IN WHICH ANY MONEYS OR ASSETS OF THE COMMON RETIREMENT
FUND ARE DIRECTLY INVESTED; AND (II) CEASE NEW DIRECT INVESTMENTS OF ANY
MONEYS OR ASSETS OF THE COMMON RETIREMENT FUND IN ANY STOCKS, SECURI-
TIES, OR OTHER OBLIGATIONS OF ANY PERSON DOING BUSINESS WITH OR IN THE
RUSSIAN FEDERATION.
B. DIVESTMENT FROM PERSONS DOING BUSINESS WITH OR IN THE RUSSIAN
FEDERATION PURSUANT TO THIS SUBDIVISION SHALL BE COMPLETED NO LATER THAN
TWO YEARS FROM THE EFFECTIVE DATE OF THIS SECTION. DIVESTMENT FROM
PERSONS DOING BUSINESS WITH OR IN THE RUSSIAN FEDERATION RETURNED TO THE
EXCLUSION LIST PURSUANT TO PARAGRAPH C OF SUBDIVISION FOUR OF THIS
SECTION SHALL BE COMPLETED NO LATER THAN TWO YEARS FROM THE DATE OF
RETURN TO THE EXCLUSION LIST.
6. COMMENCING ONE YEAR AFTER THE EFFECTIVE DATE OF THIS SECTION, AND
NO LATER THAN FIVE YEARS FROM THE EFFECTIVE DATE OF THIS SECTION,
SUBJECT TO AN AFFIRMATIVE DETERMINATION OF PRUDENCE PURSUANT TO SUBDIVI-
SION FOUR OF THIS SECTION, AND IN ACCORDANCE WITH SOUND INVESTMENT
CRITERIA AND CONSISTENT WITH HIS OR HER FIDUCIARY OBLIGATIONS, THE COMP-
TROLLER SHALL ENDEAVOR TO ENSURE THAT NO MONEYS OR ASSETS OF THE COMMON
RETIREMENT FUND ARE INVESTED IN AN INDIRECT INVESTMENT VEHICLE UNLESS HE
OR SHE IS SATISFIED ON REASONABLE GROUNDS THAT SUCH INDIRECT INVESTMENT
VEHICLE IS UNLIKELY TO HAVE IN EXCESS OF TWO PERCENT OF ITS ASSETS,
AVERAGED ANNUALLY, DIRECTLY OR INDIRECTLY INVESTED IN PERSONS DOING
BUSINESS WITH OR IN THE RUSSIAN FEDERATION.
7. COMMENCING TWO YEARS AFTER THE EFFECTIVE DATE OF THIS SECTION AND
ANNUALLY THEREAFTER THE COMPTROLLER SHALL ISSUE A REPORT TO THE TEMPO-
RARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY, AND SHALL
MAKE SUCH REPORT PUBLICLY AVAILABLE, OUTLINING ALL ACTIONS TAKEN TO
COMPLY WITH THIS SECTION.
§ 4. This act shall take effect immediately.
