S T A T E O F N E W Y O R K
________________________________________________________________________
1840
2013-2014 Regular Sessions
I N S E N A T E
(PREFILED)
January 9, 2013
___________
Introduced by Sens. PARKER, KRUEGER, SAMPSON -- read twice and ordered
printed, and when printed to be committed to the Committee on Finance
AN ACT to amend the executive law, in relation to prohibiting the state
from entering into contracts with companies requiring employees to
stipulate to binding arbitration for all disputes
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The executive law is amended by adding a new section 170-c
to read as follows:
S 170-C. PROHIBITING THE STATE AND CERTAIN STATE ENTITIES FROM ENTER-
ING INTO CONTRACTS WITH CERTAIN COMPANIES REQUIRING EMPLOYEES TO STIPU-
LATE TO BINDING ARBITRATION AGREEMENTS. 1. NOTWITHSTANDING ANY INCON-
SISTENT PROVISIONS OF ANY GENERAL OR SPECIAL LAW OR RESOLUTION, NEITHER
THE STATE NOR ANY STATE AGENCY INCLUDING: (I) ANY STATE DEPARTMENT, OR
(II) ANY DIVISION, BOARD, COMMISSION, OR BUREAU OF ANY STATE DEPARTMENT,
OR (III) THE STATE UNIVERSITY OF NEW YORK AND THE CITY UNIVERSITY OF NEW
YORK, INCLUDING ALL THEIR CONSTITUENT UNITS, EXCEPT COMMUNITY COLLEGES
AND THE INDEPENDENT INSTITUTIONS OPERATING STATUTORY OR CONTRACT
COLLEGES ON BEHALF OF THE STATE, OR (IV) A BOARD, A MAJORITY OF WHOSE
MEMBERS ARE APPOINTED BY THE GOVERNOR OR WHO SERVE BY VIRTUE OF BEING
STATE OFFICERS OR EMPLOYEES AS DEFINED IN SUBPARAGRAPH (I), (II) OR
(III) OF PARAGRAPH (I) OF SUBDIVISION ONE OF SECTION SEVENTY-THREE OF
THE PUBLIC OFFICERS LAW, (V) ANY PUBLIC AUTHORITY, OTHER THAN
MULTI-STATE AUTHORITIES, PUBLIC BENEFIT CORPORATIONS, AND COMMISSIONS AT
LEAST ONE OF WHOSE MEMBERS IS APPOINTED BY THE GOVERNOR, NOR THE LEGIS-
LATIVE AND JUDICIAL BRANCHES OF GOVERNMENT, NOR ANY FUND OF ANY OF THE
FOREGOING, NOR ANY OFFICER OF ANY OF THE FOREGOING, SHALL CONTRACT OR
RENEW A CONTRACT FOR THE SUPPLY OF GOODS, SERVICES, OR CONSTRUCTION WITH
ANY OVERSEAS CONTRACTOR WHO DOES NOT AGREE TO STIPULATE TO THE FOLLOWING
AS A MATERIAL CONDITION OF THE CONTRACT: THE CONTRACTOR, ANY SUBSIDIARY
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03065-01-3
S. 1840 2
OF A CONTRACTOR, ANY FRANCHISER OF THE CONTRACTOR, AND ANY SUBCONTRACTOR
TO BE EMPLOYED BY THE CONTRACTOR SHALL NOT UTILIZE AN EMPLOYMENT
CONTRACT CONTAINING CLAUSES WHICH REQUIRE EMPLOYEES TO STIPULATE TO
BINDING ARBITRATION AGREEMENTS FOR ALL DISPUTES UNLESS DISPUTES INVOLV-
ING SEXUAL ASSAULT OR OTHER ASSAULT ARE EXCLUDED.
2. ANY CONTRACTOR, ANY SUBSIDIARY OF A CONTRACTOR, FRANCHISER OF THE
CONTRACTOR, AND ANY SUBCONTRACTOR TO BE EMPLOYED BY THE CONTRACTOR SHALL
CERTIFY THAT IT IS IN COMPLIANCE WITH THE REQUIREMENTS OF THIS SECTION.
SUCH CERTIFICATION SHALL BE FILED WITH THE STATE GOVERNMENTAL CONTRACT-
ING PARTY AND MADE A PART OF ITS CONTRACT FILE.
3. UPON RECEIVING INFORMATION THAT A CONTRACTOR WHO HAS MADE THE STIP-
ULATION AND CERTIFICATION REQUIRED BY THIS SECTION IS IN VIOLATION
THEREOF, THE STATE GOVERNMENTAL CONTRACTING PARTY SHALL REVIEW SUCH
INFORMATION AND OFFER THE CONTRACTOR AN OPPORTUNITY TO RESPOND. IF THE
STATE GOVERNMENTAL CONTRACTING PARTY FINDS THAT A VIOLATION HAS
OCCURRED, IT SHALL TAKE SUCH ACTION AS MAY BE APPROPRIATE AND PROVIDED
FOR BY LAW, RULE OR REGULATION, OR CONTRACT, INCLUDING, BUT NOT LIMITED
TO, IMPOSING SANCTIONS, SEEKING COMPLIANCE, RECOVERING DAMAGES, DECLAR-
ING THE CONTRACTOR IN DEFAULT, AND SEEKING DEBARMENT OR SUSPENSION OF
THE CONTRACTOR.
S 2. If any provision of this act or the application thereof is held
invalid, the remainder of this act and the application thereof to other
persons or circumstances shall not be affected by such holding and shall
remain in full force and effect.
S 3. This act shall take effect immediately.