S T A T E   O F   N E W   Y O R K
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                                 8220--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              June 12, 2015
                               ___________

Introduced  by M. of A. LAVINE, SIMON, BICHOTTE, THIELE, KAMINSKY, OTIS,
  HOOPER, JAFFEE,  MILLER,  WEPRIN,  BUCHWALD,  SIMANOWITZ,  CYMBROWITZ,
  SCHIMEL,  DINOWITZ,  QUART, BRINDISI, HIKIND, KEARNS, GJONAJ, SKOUFIS,
  MOSLEY, ORTIZ, MAGNARELLI, BRAUNSTEIN, HEVESI, ABBATE, NOJAY, LUPINAC-
  CI, HAWLEY,  FITZPATRICK,  FRIEND,  LAWRENCE,  WALTER,  KOLB,  PAULIN,
  ROZIC,  CURRAN,  RA,  MURRAY  -- Multi-Sponsored by -- M. of A. BLAKE,
  McDONOUGH, McKEVITT, McLAUGHLIN, RAIA -- read once and referred to the
  Committee on Governmental Operations -- recommitted to  the  Committee
  on  Governmental Operations in accordance with Assembly Rule 3, sec. 2
  -- committee discharged, bill amended, ordered  reprinted  as  amended
  and recommitted to said committee

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 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)  "BOYCOTT  ISRAEL"  OR "BOYCOTT ACTIVITIES" DO NOT INCLUDE ACTIONS
NECESSARY TO COMPLY WITH APPLICABLE LAW IN THE BUSINESS'S HOME JURISDIC-
TION.
  (C) "PERSON" MEANS:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11575-03-6

              

A. 8220--A                          2

  (I) A CORPORATION, COMPANY, LIMITED LIABILITY COMPANY, BUSINESS, BUSI-
NESS ASSOCIATION, PARTNERSHIP, SOCIETY, TRUST, OR ANY  OTHER  NONGOVERN-
MENTAL 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.
  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
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 BOYCOTT 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.  A STATEMENT BY A PERSON OR REPRESENTATIVE OF  A  PERSON  WITH
APPARENT AUTHORITY TO MAKE SUCH A STATEMENT, THAT IT IS PARTICIPATING IN
A BOYCOTT OF ISRAEL, OR THAT IT HAS INITIATED A BOYCOTT IN RESPONSE TO A
REQUEST  FOR A BOYCOTT OF ISRAEL, SHALL BE CONSIDERED AS EVIDENCE THAT A
COMPANY IS PARTICIPATING IN A BOYCOTT OF ISRAEL.
  (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 OFFERER. THE NOTICE SHALL SPECIFY THE BOYCOTT 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 BOYCOTT ACTIVITIES AS DESCRIBED IN SUBDIVISION ONE
OF THIS SECTION, OR HAS CEASED SUCH BOYCOTTING ACTIVITIES,  THE  COMMIS-
SIONER SHALL REMOVE SUCH PERSON FROM THE LIST DEVELOPED AND PUBLISHED IN
ACCORDANCE WITH THIS PARAGRAPH.
  (3) THE COMMISSIONER SHALL MAKE A GOOD FAITH EFFORT TO AVOID INCLUDING
A PERSON ON THE LIST WHO IS NOT ENGAGED IN BOYCOTTING THE STATE OF ISRA-
EL.
  (C)  NOTWITHSTANDING  PARAGRAPHS  (A)  AND  (B) 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,

A. 8220--A                          3

AND IS IMPLEMENTING A 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
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,  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.
  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:
  (A) "BOYCOTT ISRAEL" MEANS ENGAGING IN ACTIONS THAT  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) "BOYCOTT ISRAEL" DOES NOT INCLUDE ACTIONS NECESSARY TO COMPLY WITH
APPLICABLE LAW IN THE BUSINESS'S HOME JURISDICTION.

A. 8220--A                          4

  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  ISSUE A REPORT TO THE GOVERNOR, THE COMPTROLLER, THE
TEMPORARY PRESIDENT OF THE SENATE, AND THE SPEAKER OF THE  ASSEMBLY  AND
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.