S T A T E O F N E W Y O R K
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6086
2015-2016 Regular Sessions
I N S E N A T E
November 6, 2015
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Introduced by Sen. GIANARIS -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
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:
S 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 POLITICALLY MOTIVATED AND 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) "PERSON" MEANS:
(I) A NATURAL PERSON, CORPORATION, COMPANY, LIMITED LIABILITY COMPANY,
BUSINESS ASSOCIATION, PARTNERSHIP, SOCIETY, TRUST, OR ANY OTHER NONGOV-
ERNMENTAL 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 ONE 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
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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11575-02-5
S. 6086 2
DEVELOP, USING CREDIBLE INFORMATION AVAILABLE TO THE PUBLIC, A LIST OF
PERSONS IT DETERMINES BOYCOTTS 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.
(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 BEFORE A
PERSON IS INCLUDED ON THE LIST:
(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 THAT THE PERSON, IF IT CEASES ITS
BOYCOTT ACTIVITIES AS DESCRIBED IN SUBDIVISION ONE OF THIS SECTION, MAY
BE REMOVED FROM THE LIST.
(2) THE COMMISSIONER SHALL PROVIDE A PERSON WITH AN OPPORTUNITY TO
COMMENT IN WRITING THAT IT IS NOT ENGAGED IN BOYCOTTING ISRAEL. IF THE
PERSON DEMONSTRATES TO THE COMMISSIONER THAT THE PERSON IS NOT ENGAGED
IN SUCH BOYCOTT ACTIVITIES AS DESCRIBED IN SUBDIVISION ONE OF THIS
SECTION, THE PERSON SHALL NOT BE INCLUDED ON THE LIST.
(3) THE COMMISSIONER SHALL MAKE EVERY EFFORT TO AVOID ERRONEOUSLY
INCLUDING A PERSON ON THE LIST.
(C) NOTWITHSTANDING PARAGRAPH (A) 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 FORMAL 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
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
S. 6086 3
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 AND THE LEGISLATURE
ANNUALLY ON OR BEFORE OCTOBER FIRST, ON THE STATUS OF THIS SECTION AND
ANY RULES OR REGULATIONS ADOPTED THEREUNDER.
S 2. The retirement and social security law is amended by adding a new
section 423-d to read as follows:
S 423-D. INVESTMENT OF CERTAIN PUBLIC FUNDS IN COMPANIES BOYCOTTING
ISRAEL. 1. FOR PURPOSES OF THIS SECTION, "BOYCOTT ISRAEL" MEANS ENGAGING
IN ACTIONS THAT ARE POLITICALLY MOTIVATED AND 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.
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.
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 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.
S 3. This act shall take effect immediately.