S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    81
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 4, 2023
                                ___________
 
 Introduced  by  M.  of  A.  SAYEGH,  PAULIN, THIELE, DeSTEFANO, MIKULIN,
   PALMESANO -- read once and referred to the Committee  on  Governmental
   Operations
 
 AN ACT to amend the state finance 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

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01785-01-3
              

 A. 81                               2
 
 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
 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
 A. 81                               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 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, THE 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. This act shall take effect immediately.