senate Bill S2538

Prohibits political contributions by businesses that have been awarded state contracts

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 18 / Jan / 2013
    • REFERRED TO FINANCE
  • 08 / Jan / 2014
    • REFERRED TO FINANCE

Summary

Prohibits political contributions by businesses that have been awarded state contracts.

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Bill Details

See Assembly Version of this Bill:
A205
Versions:
S2538
Legislative Cycle:
2013-2014
Current Committee:
Senate Finance
Law Section:
State Finance Law
Laws Affected:
Add ยง148, St Fin L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S1565, A5907
2009-2010: S7478, A10781

Sponsor Memo

BILL NUMBER:S2538

TITLE OF BILL: An act to amend the state finance law, in relation to
prohibiting political contributions by businesses that have been
awarded state contracts

PURPOSE: The purpose of this bill is to ensure that business entities
receiving or renewing state contracts cannot directly or indirectly
make expenditures for political purposes, which could influence their
ability to receive such a contract or renewal, and would in effect
involve the use of public funds to buy such influence.

SUMMARY OF PROVISIONS:

Section 1: Adds a new state finance law 148, which Prohibits state
contractors from making direct and indirect political expenditures in
support of or in opposition to any political organization or
candidate.

Section 2: Provides that the Act shall take effect on the thirtieth
day after it becomes law, and will apply to contracts awarded or
renewed on or after that date.

JUSTIFICATION: This bill is a response to the decision of the U.S.
Supreme Court in Citizens United v. Federal Election Commission, which
effectively eliminated restrictions on corporations' ability to spend
corporate treasury funds in support of or in opposition to political
candidates, political parties and ballot issues. This decision opens
the flood gates for corporations to use their considerable wealth to
spend as much as they want on independent political advertising in
support of or in opposition to candidates for political office, ballot
issues and political organizations. This could have a seriously
distorting and corrupting effect on the election of our
representatives and the awarding of government contracts, since the
ability to make such expenditures could be used to threaten those with
the authority to award government contracts, as well as politicians
with the power to influence those who award them.

LEGISLATIVE HISTORY: 2010: S.7478 - Referred to Elections.
2011-2012: S. 1565 - Referred to Finance.

FISCAL IMPLICATIONS: None to the state.

EFFECTIVE DATE: This bill is effective on the thirtieth day after
becoming law.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2538

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 18, 2013
                               ___________

Introduced  by  Sen. ADDABBO -- 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 prohibiting  poli-
  tical  contributions  by  businesses  that  have  been  awarded  state
  contracts

  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
148 to read as follows:
  S 148. POLITICAL CONTRIBUTIONS PROHIBITED.   ANY CORPORATION,  LIMITED
LIABILITY  COMPANY, PARTNERSHIP, LIMITED PARTNERSHIP, OR ANY OTHER BUSI-
NESS ENTITY THAT HAS BEEN AWARDED A CONTRACT OR RENEWAL OF A CONTRACT BY
THE STATE, OR ANY  DEPARTMENT,  AGENCY  OR  OFFICIAL  THEREOF  SHALL  BE
PROHIBITED  FROM  MAKING  ANY  POLITICAL EXPENDITURE, EITHER DIRECTLY OR
INDIRECTLY, IN SUPPORT OF ANY ASSOCIATION ORGANIZED  OR  MAINTAINED  FOR
POLITICAL  PURPOSES,  OR  FOR  OR  IN AID OF ANY CANDIDATE FOR POLITICAL
OFFICE OR FOR THE NOMINATION FOR  SUCH  OFFICE,  OR  FOR  ANY  POLITICAL
PURPOSE  WHATSOEVER,  OR FOR THE REIMBURSEMENT OR INDEMNIFICATION OF ANY
PERSON FOR MONEYS OR PROPERTY SO USED. THE PROHIBITION SET FORTH IN THIS
SECTION SHALL BE EFFECTIVE FOR THE PERIOD BEGINNING  ON  THE  DATE  SUCH
CONTRACT  IS  AWARDED  OR RENEWED TO SUCH BUSINESS ENTITY UNTIL ONE YEAR
FOLLOWING THE DATE SUCH CONTRACT IS COMPLETED, CANCELLED OR  TERMINATED.
UPON ANY VIOLATION OF THIS SECTION BY SUCH BUSINESS ENTITY, SUCH AWARDED
OR  RENEWED CONTRACT MAY BE CANCELLED OR TERMINATED BY THE STATE, OR ANY
SUCH DEPARTMENT, AGENCY OR OFFICIAL THEREOF WITHOUT  THE  OCCURRENCE  OF
ANY  PENALTY OR DAMAGES, PROVIDED THAT ANY MONIES OWING BY THE STATE FOR
GOODS DELIVERED OR WORK DONE PRIOR TO SUCH CANCELLATION  OR  TERMINATION
SHALL BE PAID.
  S  2.  This  act shall take effect on the thirtieth day after it shall
have become a law and shall apply to contracts awarded or renewed on  or
after such date.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03200-01-3

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