S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7751
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 6, 2023
                                ___________
 
 Introduced by M. of A. E. BROWN -- read once and referred to the Commit-
   tee on Governmental Operations
 
 AN  ACT  to  amend  the  state finance law and the retirement and social
   security law, in relation to purchasing restrictions
 
   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 CERTAIN  AMERICAN
 ALLIES.  1.  AS  USED  IN  THIS SECTION, THE FOLLOWING DEFINITIONS SHALL
 APPLY:
   (A) "ALLIED NATION" SHALL MEAN:
   (I) ANY COUNTRY THAT IS A MEMBER OF THE NORTH ATLANTIC  TREATY  ORGAN-
 IZATION;
   (II)  ANY  COUNTRY THAT IS A SIGNATORY OF THE SOUTHEAST ASIA TREATY OF
 1954;
   (III) ANY COUNTRY, OTHER THAN VENEZUELA, THAT IS A  SIGNATORY  OF  THE
 RIO TREATY OF 1947;
   (IV) IRELAND;
   (V) ISRAEL;
   (VI) JAPAN; AND/OR
   (VII) THE REPUBLIC OF KOREA.
   (B)  "BOYCOTT"  SHALL MEAN TO ENGAGE IN ANY ACTIVITY, OR TO PROMOTE OR
 ENCOURAGE OTHERS TO ENGAGE IN ANY ACTIVITY,  THAT  WILL  RESULT  IN  ANY
 PERSON  ABSTAINING  FROM COMMERCIAL, SOCIAL OR POLITICAL RELATIONS, WITH
 ANY ALLIED NATION, OR COMPANIES BASED IN AN ALLIED NATION OR IN TERRITO-
 RIES CONTROLLED BY AN  ALLIED  NATION,  WITH  THE  INTENT  TO  PENALIZE,
 INFLICT,  OR CAUSE HARM TO, OR OTHERWISE PROMOTE OR CAST DISREPUTE UPON,
 SUCH ALLIED NATION, ITS PEOPLE OR ITS COMMERCIAL PRODUCTS.
   (C) "PERSON" SHALL  MEAN  ANY  NATURAL  PERSON,  CORPORATION,  LIMITED
 LIABILITY  COMPANY,  UNINCORPORATED  ASSOCIATION OR ANY OTHER NONGOVERN-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05176-01-3
              

 A. 7751                             2
 
 MENTAL ENTITY,  ORGANIZATION,  OR  GROUP,  OR  ANY  SUCCESSOR,  SUBUNIT,
 PARENT, OR SUBSIDIARY OF THE SAME.
   2.  (A)  ANY  PERSON  THAT IS IDENTIFIED ON A LIST CREATED PURSUANT TO
 PARAGRAPH (B) OF THIS SUBDIVISION AS A PERSON THAT BOYCOTTS, AS  DEFINED
 IN  PARAGRAPH (B) OF SUBDIVISION ONE OF THIS SECTION, ANY ALLIED NATION,
 AS DEFINED IN PARAGRAPH (A) OF 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) NOT LATER THAN NINETY  DAYS  AFTER  THE  EFFECTIVE  DATE  OF  THIS
 SECTION,  AND  THEN  ANNUALLY THEREAFTER, THE COMMISSIONER SHALL DEVELOP
 AND PUBLISH, USING CREDIBLE INFORMATION AVAILABLE TO THE PUBLIC, A  LIST
 OF  PERSONS  DETERMINED  BY  THE  COMMISSIONER, THAT HAVE ENGAGED IN THE
 BOYCOTTING OF ANY ALLIED NATION. THE COMMISSIONER SHALL NOT INCLUDE  ANY
 PERSON  ON  THE  LIST  REQUIRED  TO BE SO DEVELOPED AND PUBLISHED IF THE
 COMMISSIONER DETERMINES THAT  SUCH  PERSON  ENGAGING  IN  BOYCOTTING  AN
 ALLIED  NATION,  ENGAGED  IN  SUCH  BOYCOTTING IN ORDER TO COMPLY WITH A
 PROVISION OF LAW OF AN ALLIED NATION IN WHICH  SUCH  PERSON  RESIDES  OR
 CONDUCTS  BUSINESS OPERATIONS.  SUCH LIST, WHEN DEVELOPED AND PUBLISHED,
 SHALL BE POSTED ON THE WEBSITE OF THE OFFICE OF GENERAL SERVICES.
   (C) IN THE EVENT A PERSON INCLUDED BY THE COMMISSIONER ON THE LIST  TO
 BE  DEVELOPED  AND  PUBLISHED  IN  ACCORDANCE WITH PARAGRAPH (B) OF THIS
 SUBDIVISION, DEMONSTRATES TO  THE  COMMISSIONER  THAT  SUCH  PERSON  HAS
 PERMANENTLY  CEASED  THEIR BOYCOTTING OF ANY ALLIED NATION, OR OBTAINS A
 COURT ORDER FROM A SUPREME COURT THAT SUCH PERSON SHALL BE REMOVED  FROM
 SUCH  LIST  DUE TO THE COURT'S DETERMINATION THAT SUCH PERSON HAS PERMA-
 NENTLY CEASED THEIR BOYCOTTING OF ANY ALLIED NATION,  THEN  THE  COMMIS-
 SIONER  SHALL  REMOVE  SUCH  PERSON  FROM  SUCH  LIST  SO  DEVELOPED AND
 PUBLISHED IN ACCORDANCE WITH PARAGRAPH (B) OF THIS SUBDIVISION.
   (D) PRIOR TO  THE  FINAL  DEVELOPMENT  AND  PUBLICATION  OF  THE  LIST
 REQUIRED  TO  BE PRODUCED PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION,
 THE COMMISSIONER SHALL PROVIDE WRITTEN  NOTICE  OF  ALL  PERSONS  TO  BE
 INCLUDED  ON  THE  LIST, OF THE COMMISSIONER'S INTENT TO SO INCLUDE SUCH
 PERSON ON SUCH LIST, TOGETHER WITH WRITTEN NOTICE INFORMING SUCH  PERSON
 THAT  INCLUSION  ON  SUCH  LIST  WOULD MAKE SUCH PERSON A NON-RESPONSIVE
 BIDDER OR OFFERER, AND THAT SUCH PERSON MAY APPLY TO  THE  COMMISSIONER,
 OR  TO  A  SUPREME  COURT,  TO BE REMOVED FROM SUCH LIST PURSUANT TO THE
 REQUIREMENTS OF PARAGRAPH (C) OF THIS SUBDIVISION.
   (E) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, A STATE  AGENCY
 MAY  PERMIT A PERSON PROMOTING OR OTHERWISE TAKING ACTION TO BOYCOTT ANY
 ALLIED NATION TO BE DEEMED A RESPONSIVE BIDDER OR OFFERER, ON A CASE-BY-
 CASE BASIS WITH A STATE AGENCY IF:
   (I) THE PROMOTION OR OTHER BOYCOTT ACTION OCCURRED PRIOR TO THE EFFEC-
 TIVE 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  FORMAL  PLAN  TO  CEASE  ALL
 BOYCOTTING  OF ANY ALLIED NATION AND TO REFRAIN FROM ENGAGING IN ANY NEW
 BOYCOTT OF ANY ALLIED NATION; OR
   (II) THE STATE AGENCY MAKES A FORMAL, WRITTEN DETERMINATION  THAT  THE
 COMMODITIES  OR  SERVICES  OFFERED  BY  THE  PERSON  NAMED  ON THIS LIST
 PRODUCED BY THE COMMISSIONER PURSUANT TO PARAGRAPH (B) OF THIS  SUBDIVI-
 SION,  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.
   3.  (A)  A STATE AGENCY SHALL REQUIRE ALL PERSONS THAT SUBMIT A BID OR
 OFFER IN RESPONSE TO A NOTICE OF PROCUREMENT, OR THAT PROPOSE  TO  RENEW
 AN  EXISTING PROCUREMENT CONTRACT, OR THAT PROPOSE TO ASSUME THE RESPON-
 A. 7751                             3
 
 SIBILITY OF A CONTRACTOR PURSUANT TO A PROCUREMENT CONTRACT,  OR  OTHER-
 WISE  PROPOSE  TO ENTER INTO A CONTRACT WITH A STATE AGENCY WITH RESPECT
 TO A CONTRACT FOR  COMMODITIES,  SERVICES,  CONSTRUCTION,  OR  CONTRACTS
 ENTERED  INTO  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  THE  LIST  DEVELOPED  AND  PUBLISHED
 PURSUANT  TO  PARAGRAPH  (B) OF SUBDIVISION TWO OF THIS SECTION, AND ALL
 STATE AGENCIES SHALL  INCLUDE  SUCH  CERTIFICATION  INFORMATION  IN  THE
 PROCUREMENT RECORD.
   (B)  ALL PERSONS THAT SUBMIT A BID OR OFFER IN RESPONSE TO A NOTICE OF
 PROCUREMENT, OR THAT PROPOSE TO RENEW AN EXISTING  PROCUREMENT  CONTRACT
 WITH  A  STATE AGENCY, OR THAT PROPOSE TO ASSUME THE RESPONSIBILITY OF A
 CONTRACTOR PURSUANT TO A PROCUREMENT CONTRACT WITH A  STATE  AGENCY,  OR
 OTHERWISE  PROPOSE  TO  ENTER  INTO  A CONTRACT WITH A STATE AGENCY WITH
 RESPECT TO  A  CONTRACT  FOR  COMMODITIES,  SERVICES,  CONSTRUCTION,  OR
 CONTRACTS ENTERED INTO PURSUANT TO SECTION EIGHT OF THE PUBLIC BUILDINGS
 LAW  OR SECTION THIRTY-EIGHT OF THE HIGHWAY LAW, SHALL CERTIFY THAT THEY
 HAVE NOT BOYCOTTED ANY ALLIED NATIONS, AND THAT THEY ARE NOT  IDENTIFIED
 ON  THE LIST DEVELOPED AND PUBLISHED PURSUANT TO PARAGRAPH (B) OF SUBDI-
 VISION 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 FACT, IN
 VIOLATION OF SUCH CERTIFICATION, THE  STATE  AGENCY  SHALL  REVIEW  SUCH
 INFORMATION, NOTIFY SUCH PERSON AND OFFER THEM AN OPPORTUNITY TO RESPOND
 TO  SUCH  INFORMATION,  WITHIN  THIRTY  DAYS OF SUCH NOTICE, AND IF SUCH
 PERSON FAILS TO DEMONSTRATE THAT THEY HAVE CEASED  ANY  BOYCOTT  OF  ANY
 ALLIED  NATION,  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, NOTIFYING THE COMMISSIONER OF SUCH PERSON'S BOYCOTT OR
 BOYCOTTS OF ANY AND ALL  ALLIED  NATIONS,  IMPOSING  SANCTIONS,  SEEKING
 COMPLIANCE, RECOVERING DAMAGES, AND/OR DECLARING SUCH PERSON IN DEFAULT.
   5.  ON  OR  BEFORE  DECEMBER FIFTEENTH, TWO THOUSAND TWENTY-THREE, AND
 EVERY YEAR THEREAFTER, THE COMMISSIONER SHALL  ISSUE  A  REPORT  TO  THE
 GOVERNOR,  THE  COMPTROLLER,  THE TEMPORARY PRESIDENT OF THE SENATE, AND
 THE SPEAKER OF THE ASSEMBLY, ON ALL THE ACTIONS TAKEN, AND ALL  DETERMI-
 NATIONS  MADE, BY THE COMMISSIONER PURSUANT TO THIS SECTION, AND ANY AND
 ALL RULES OR REGULATIONS ADOPTED.
   § 2. The retirement and social security law is amended by adding a new
 section 423-d to read as follows:
   § 423-D. PROHIBITION ON INVESTMENT OF CERTAIN PUBLIC FUNDS IN  PERSONS
 BOYCOTTING  CERTAIN  AMERICAN  ALLIES.  1.  AS USED IN THIS SECTION, THE
 FOLLOWING DEFINITIONS SHALL APPLY:
   (A) "ALLIED NATION" SHALL MEAN:
   (I) ANY COUNTRY THAT IS A MEMBER OF THE NORTH ATLANTIC  TREATY  ORGAN-
 IZATION;
   (II) ANY COUNTRY THAT IS A SIGNATORY OF THE SOUTHEAST ASIA TREATY;
   (III)  ANY  COUNTRY,  OTHER THAN VENEZUELA, THAT IS A SIGNATORY OF THE
 RIO TREATY;
   (IV) IRELAND;
   (V) ISRAEL;
   (VI) JAPAN; AND/OR
   (VII) THE REPUBLIC OF KOREA.
   (B) "BOYCOTT" SHALL MEAN TO ENGAGE IN ANY ACTIVITY, OR TO  PROMOTE  OR
 ENCOURAGE  OTHERS  TO  ENGAGE  IN  ANY ACTIVITY, THAT WILL RESULT IN ANY
 PERSON ABSTAINING FROM COMMERCIAL, SOCIAL OR POLITICAL  RELATIONS,  WITH
 A. 7751                             4
 
 ANY ALLIED NATION, OR COMPANIES BASED IN AN ALLIED NATION OR IN TERRITO-
 RIES  CONTROLLED  BY  AN  ALLIED  NATION,  WITH  THE INTENT TO PENALIZE,
 INFLICT, OR CAUSE HARM TO, OR OTHERWISE PROMOTE OR CAST DISREPUTE  UPON,
 SUCH ALLIED NATION, ITS PEOPLE OR ITS COMMERCIAL PRODUCTS.
   (C)  "PERSON"  SHALL  MEAN  ANY  NATURAL  PERSON, CORPORATION, LIMITED
 LIABILITY COMPANY, UNINCORPORATED ASSOCIATION OR  ANY  OTHER  NONGOVERN-
 MENTAL  ENTITY,  ORGANIZATION,  OR  GROUP,  OR  ANY  SUCCESSOR, SUBUNIT,
 PARENT, OR SUBSIDIARY OF THE SAME.
   2. (A) ANY PERSON THAT IS IDENTIFIED ON THE LIST CREATED  PURSUANT  TO
 PARAGRAPH  (B) OF SUBDIVISION TWO OF SECTION ONE HUNDRED SIXTY-FIVE-B OF
 THE STATE FINANCE LAW, AS BEING A PERSON THAT HAS ENGAGED IN  A  BOYCOTT
 OF ANY ALLIED NATION, SHALL NOT BE ELIGIBLE TO RECEIVE INVESTMENT OF ANY
 MONEYS OR ASSETS OF THE COMMON RETIREMENT FUND IN ANY STOCKS, SECURITIES
 OR OTHER OBLIGATIONS OF SUCH PERSON SO IDENTIFIED ON SUCH LIST DEVELOPED
 AND PUBLISHED BY THE COMMISSIONER OF GENERAL SERVICES.
   (B) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, NO ASSETS OF
 ANY  PENSION  OR ANNUITY FUND UNDER THE JURISDICTION OF THE COMPTROLLER,
 SHALL FURTHER BE INVESTED IN ANY BANK  OR  FINANCIAL  INSTITUTION  WHICH
 DIRECTLY,  OR  THROUGH  A PARENT OR SUBSIDIARY BOYCOTTS AN ALLIED NATION
 AND NO SUCH ASSETS SHALL OTHERWISE BE INVESTED IN THE STOCKS, SECURITIES
 OR OTHER OBLIGATIONS OF ANY PERSON WHICH DIRECTLY, OR THROUGH  A  PARENT
 OR SUBSIDIARY ENTITY, BOYCOTTS ANY ALLIED NATION.
   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,  DIVESTMENT  OR  WITHDRAWAL  SHALL  BE
 COMPLETED  NO LATER THAN FIVE YEARS FOLLOWING THE EFFECTIVE DATE OF THIS
 SECTION.
   4. ON OR BEFORE DECEMBER FIFTEENTH,  TWO  THOUSAND  TWENTY-THREE,  AND
 EVERY  YEAR  THEREAFTER,  THE  COMPTROLLER  SHALL  ISSUE A REPORT TO THE
 GOVERNOR, THE COMMISSIONER OF GENERAL SERVICES, THE TEMPORARY  PRESIDENT
 OF  THE  SENATE,  AND  THE  SPEAKER  OF THE ASSEMBLY, ON ALL THE ACTIONS
 TAKEN, AND ALL DETERMINATIONS MADE, BY THE COMPTROLLER, PURSUANT TO THIS
 SECTION, AND ANY AND ALL RULES OR REGULATIONS ADOPTED.
   § 3. This act shall take effect immediately.