S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2492--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2017
                                ___________
 
 Introduced  by  Sens. PHILLIPS, FELDER, KAMINSKY, MURPHY, RANZENHOFER --
   read twice and ordered printed, and when printed to  be  committed  to
   the Committee on Finance -- recommitted to the Committee on Finance in
   accordance  with  Senate  Rule 6, sec. 8 -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee
 
 AN  ACT  to  amend  the  state finance law and the retirement and social
   security law, in relation to purchasing restrictions
 
   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:
   § 165-B. PURCHASING RESTRICTIONS; PERSONS BOYCOTTING CERTAIN  AMERICAN
 ALLIES.  1.  AS  USED  IN  THIS SECTION, THE FOLLOWING DEFINITIONS SHALL
 APPLY:
   (A) "ALLIED NATION" SHALL MEAN:
   (I) ANY COUNTRY THAT IS A MEMBER OF THE NORTH ATLANTIC  TREATY  ORGAN-
 IZATION;
   (II)  ANY  COUNTRY THAT IS A SIGNATORY OF THE SOUTHEAST ASIA TREATY OF
 1954;
   (III) ANY COUNTRY, OTHER THAN VENEZUELA, THAT IS A  SIGNATORY  OF  THE
 RIO TREATY OF 1947;
   (IV) IRELAND;
   (V) ISRAEL;
   (VI) JAPAN; AND/OR
   (VII) THE REPUBLIC OF KOREA.
   (B)  "BOYCOTT"  SHALL MEAN TO ENGAGE IN ANY ACTIVITY, OR TO PROMOTE OR
 ENCOURAGE OTHERS TO ENGAGE IN ANY ACTIVITY,  THAT  WILL  RESULT  IN  ANY
 PERSON  ABSTAINING  FROM COMMERCIAL, SOCIAL OR POLITICAL RELATIONS, WITH
 ANY ALLIED NATION, OR COMPANIES BASED IN AN ALLIED NATION OR IN TERRITO-
 RIES CONTROLLED BY AN  ALLIED  NATION,  WITH  THE  INTENT  TO  PENALIZE,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06828-02-8

 S. 2492--A                          2
 
 INFLICT,  OR CAUSE HARM TO, OR OTHERWISE PROMOTE OR CAST DISREPUTE UPON,
 SUCH ALLIED NATION, ITS PEOPLE OR ITS COMMERCIAL PRODUCTS.
   (C)  "PERSON"  SHALL  MEAN  ANY  NATURAL  PERSON, CORPORATION, LIMITED
 LIABILITY COMPANY, UNINCORPORATED ASSOCIATION OR  ANY  OTHER  NONGOVERN-
 MENTAL  ENTITY,  ORGANIZATION,  OR  GROUP,  OR  ANY  SUCCESSOR, SUBUNIT,
 PARENT, OR SUBSIDIARY OF THE SAME.
   2. (A) ANY PERSON THAT IS IDENTIFIED ON A  LIST  CREATED  PURSUANT  TO
 PARAGRAPH  (B) OF THIS SUBDIVISION AS A PERSON THAT BOYCOTTS, AS DEFINED
 IN PARAGRAPH (B) OF SUBDIVISION ONE OF THIS SECTION, ANY ALLIED  NATION,
 AS  DEFINED  IN  PARAGRAPH (A) OF 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)  NOT  LATER  THAN  NINETY  DAYS  AFTER  THE EFFECTIVE DATE OF THIS
 SECTION, AND THEN ANNUALLY THEREAFTER, THE  COMMISSIONER  SHALL  DEVELOP
 AND  PUBLISH, USING CREDIBLE INFORMATION AVAILABLE TO THE PUBLIC, A LIST
 OF PERSONS DETERMINED BY THE COMMISSIONER,  THAT  HAVE  ENGAGED  IN  THE
 BOYCOTTING  OF ANY ALLIED NATION. THE COMMISSIONER SHALL NOT INCLUDE ANY
 PERSON ON THE LIST REQUIRED TO BE SO  DEVELOPED  AND  PUBLISHED  IF  THE
 COMMISSIONER  DETERMINES  THAT  SUCH  PERSON  ENGAGING  IN BOYCOTTING AN
 ALLIED NATION, ENGAGED IN SUCH BOYCOTTING IN  ORDER  TO  COMPLY  WITH  A
 PROVISION  OF  LAW  OF  AN ALLIED NATION IN WHICH SUCH PERSON RESIDES OR
 CONDUCTS BUSINESS OPERATIONS.  SUCH LIST, WHEN DEVELOPED AND  PUBLISHED,
 SHALL BE POSTED ON THE WEBSITE OF THE OFFICE OF GENERAL SERVICES.
   (C)  IN THE EVENT A PERSON INCLUDED BY THE COMMISSIONER ON THE LIST TO
 BE DEVELOPED AND PUBLISHED IN ACCORDANCE  WITH  PARAGRAPH  (B)  OF  THIS
 SUBDIVISION,  DEMONSTRATES  TO  THE  COMMISSIONER  THAT  SUCH PERSON HAS
 PERMANENTLY CEASED THEIR BOYCOTTING OF ANY ALLIED NATION, OR  OBTAINS  A
 COURT  ORDER FROM A SUPREME COURT THAT SUCH PERSON SHALL BE REMOVED FROM
 SUCH LIST DUE TO THE COURT'S DETERMINATION THAT SUCH PERSON  HAS  PERMA-
 NENTLY  CEASED  THEIR  BOYCOTTING OF ANY ALLIED NATION, THEN THE COMMIS-
 SIONER SHALL  REMOVE  SUCH  PERSON  FROM  SUCH  LIST  SO  DEVELOPED  AND
 PUBLISHED IN ACCORDANCE WITH PARAGRAPH (B) OF THIS SUBDIVISION.
   (D)  PRIOR  TO  THE  FINAL  DEVELOPMENT  AND  PUBLICATION  OF THE LIST
 REQUIRED TO BE PRODUCED PURSUANT TO PARAGRAPH (B) OF  THIS  SUBDIVISION,
 THE  COMMISSIONER  SHALL  PROVIDE  WRITTEN  NOTICE  OF ALL PERSONS TO BE
 INCLUDED ON THE LIST, OF THE COMMISSIONER'S INTENT TO  SO  INCLUDE  SUCH
 PERSON  ON SUCH LIST, TOGETHER WITH WRITTEN NOTICE INFORMING SUCH PERSON
 THAT INCLUSION ON SUCH LIST WOULD  MAKE  SUCH  PERSON  A  NON-RESPONSIVE
 BIDDER  OR  OFFERER, AND THAT SUCH PERSON MAY APPLY TO THE COMMISSIONER,
 OR TO A SUPREME COURT, TO BE REMOVED FROM  SUCH  LIST  PURSUANT  TO  THE
 REQUIREMENTS OF PARAGRAPH (C) OF THIS SUBDIVISION.
   (E)  NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, A STATE AGENCY
 MAY PERMIT A PERSON PROMOTING OR OTHERWISE TAKING ACTION TO BOYCOTT  ANY
 ALLIED NATION TO BE DEEMED A RESPONSIVE BIDDER OR OFFERER, ON A CASE-BY-
 CASE BASIS WITH A STATE AGENCY IF:
   (I) THE PROMOTION OR OTHER BOYCOTT ACTION OCCURRED PRIOR TO THE EFFEC-
 TIVE  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 ALL
 BOYCOTTING OF ANY ALLIED NATION AND TO REFRAIN FROM ENGAGING IN ANY  NEW
 BOYCOTT OF ANY ALLIED NATION; OR
   (II)  THE  STATE AGENCY MAKES A FORMAL, WRITTEN DETERMINATION THAT THE
 COMMODITIES OR SERVICES  OFFERED  BY  THE  PERSON  NAMED  ON  THIS  LIST
 PRODUCED  BY THE COMMISSIONER PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVI-
 SION, ARE NECESSARY FOR THE STATE AGENCY TO PERFORM  ITS  FUNCTIONS  AND

 S. 2492--A                          3
 
 THAT,  ABSENT  SUCH  AN  EXEMPTION,  THE STATE AGENCY WOULD BE UNABLE TO
 OBTAIN THE COMMODITIES OR SERVICES FOR WHICH THE CONTRACT IS OFFERED.
   3.  (A)  A STATE AGENCY SHALL REQUIRE ALL PERSONS THAT SUBMIT A BID OR
 OFFER IN RESPONSE TO A NOTICE OF PROCUREMENT, OR THAT PROPOSE  TO  RENEW
 AN  EXISTING PROCUREMENT CONTRACT, OR THAT PROPOSE TO ASSUME THE RESPON-
 SIBILITY OF A CONTRACTOR PURSUANT TO A PROCUREMENT CONTRACT,  OR  OTHER-
 WISE  PROPOSE  TO ENTER INTO A CONTRACT WITH A STATE AGENCY WITH RESPECT
 TO A CONTRACT FOR  COMMODITIES,  SERVICES,  CONSTRUCTION,  OR  CONTRACTS
 ENTERED  INTO  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  THE  LIST  DEVELOPED  AND  PUBLISHED
 PURSUANT  TO  PARAGRAPH  (B) OF SUBDIVISION TWO OF THIS SECTION, AND ALL
 STATE AGENCIES SHALL  INCLUDE  SUCH  CERTIFICATION  INFORMATION  IN  THE
 PROCUREMENT RECORD.
   (B)  ALL PERSONS THAT SUBMIT A BID OR OFFER IN RESPONSE TO A NOTICE OF
 PROCUREMENT, OR THAT PROPOSE TO RENEW AN EXISTING  PROCUREMENT  CONTRACT
 WITH  A  STATE AGENCY, OR THAT PROPOSE TO ASSUME THE RESPONSIBILITY OF A
 CONTRACTOR PURSUANT TO A PROCUREMENT CONTRACT WITH A  STATE  AGENCY,  OR
 OTHERWISE  PROPOSE  TO  ENTER  INTO  A CONTRACT WITH A STATE AGENCY WITH
 RESPECT TO  A  CONTRACT  FOR  COMMODITIES,  SERVICES,  CONSTRUCTION,  OR
 CONTRACTS ENTERED INTO PURSUANT TO SECTION EIGHT OF THE PUBLIC BUILDINGS
 LAW  OR SECTION THIRTY-EIGHT OF THE HIGHWAY LAW, SHALL CERTIFY THAT THEY
 HAVE NOT BOYCOTTED ANY ALLIED NATIONS, AND THAT THEY ARE NOT  IDENTIFIED
 ON  THE LIST DEVELOPED AND PUBLISHED PURSUANT TO PARAGRAPH (B) OF SUBDI-
 VISION 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 FACT, IN
 VIOLATION OF SUCH CERTIFICATION, THE  STATE  AGENCY  SHALL  REVIEW  SUCH
 INFORMATION, NOTIFY SUCH PERSON AND OFFER THEM AN OPPORTUNITY TO RESPOND
 TO  SUCH  INFORMATION,  WITHIN  THIRTY  DAYS OF SUCH NOTICE, AND IF SUCH
 PERSON FAILS TO DEMONSTRATE THAT THEY HAVE CEASED  ANY  BOYCOTT  OF  ANY
 ALLIED  NATION,  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, NOTIFYING THE COMMISSIONER OF SUCH PERSON'S BOYCOTT OR
 BOYCOTTS OF ANY AND ALL  ALLIED  NATIONS,  IMPOSING  SANCTIONS,  SEEKING
 COMPLIANCE, RECOVERING DAMAGES, AND/OR DECLARING SUCH PERSON IN DEFAULT.
   5.  ON  OR BEFORE DECEMBER FIFTEENTH, TWO THOUSAND EIGHTEEN, AND EVERY
 YEAR THEREAFTER, THE COMMISSIONER SHALL ISSUE A REPORT TO THE  GOVERNOR,
 THE  COMPTROLLER, THE TEMPORARY PRESIDENT OF THE SENATE, AND THE SPEAKER
 OF THE ASSEMBLY, ON ALL THE ACTIONS TAKEN, AND ALL DETERMINATIONS  MADE,
 BY  THE  COMMISSIONER PURSUANT TO THIS SECTION, AND ANY AND ALL RULES OR
 REGULATIONS ADOPTED.
   § 2. The retirement and social security law is amended by adding a new
 section 423-d to read as follows:
   § 423-D. PROHIBITION ON INVESTMENT OF CERTAIN PUBLIC FUNDS IN  PERSONS
 BOYCOTTING  CERTAIN  AMERICAN  ALLIES.  1.  AS USED IN THIS SECTION, THE
 FOLLOWING DEFINITIONS SHALL APPLY:
   (A) "ALLIED NATION" SHALL MEAN:
   (I) ANY COUNTRY THAT IS A MEMBER OF THE NORTH ATLANTIC  TREATY  ORGAN-
 IZATION;
   (II) ANY COUNTRY THAT IS A SIGNATORY OF THE SOUTHEAST ASIA TREATY;
   (III)  ANY  COUNTRY,  OTHER THAN VENEZUELA, THAT IS A SIGNATORY OF THE
 RIO TREATY;
   (IV) IRELAND;
   (V) ISRAEL;

 S. 2492--A                          4
 
   (VI) JAPAN; AND/OR
   (VII) THE REPUBLIC OF KOREA.
   (B)  "BOYCOTT"  SHALL MEAN TO ENGAGE IN ANY ACTIVITY, OR TO PROMOTE OR
 ENCOURAGE OTHERS TO ENGAGE IN ANY ACTIVITY,  THAT  WILL  RESULT  IN  ANY
 PERSON  ABSTAINING  FROM COMMERCIAL, SOCIAL OR POLITICAL RELATIONS, WITH
 ANY ALLIED NATION, OR COMPANIES BASED IN AN ALLIED NATION OR IN TERRITO-
 RIES CONTROLLED BY AN  ALLIED  NATION,  WITH  THE  INTENT  TO  PENALIZE,
 INFLICT,  OR CAUSE HARM TO, OR OTHERWISE PROMOTE OR CAST DISREPUTE UPON,
 SUCH ALLIED NATION, ITS PEOPLE OR ITS COMMERCIAL PRODUCTS.
   (C) "PERSON" SHALL  MEAN  ANY  NATURAL  PERSON,  CORPORATION,  LIMITED
 LIABILITY  COMPANY,  UNINCORPORATED  ASSOCIATION OR ANY OTHER NONGOVERN-
 MENTAL ENTITY,  ORGANIZATION,  OR  GROUP,  OR  ANY  SUCCESSOR,  SUBUNIT,
 PARENT, OR SUBSIDIARY OF THE SAME.
   2.  (A)  ANY PERSON THAT IS IDENTIFIED ON THE LIST CREATED PURSUANT TO
 PARAGRAPH (B) OF SUBDIVISION TWO OF SECTION ONE HUNDRED SIXTY-FIVE-B  OF
 THE  STATE  FINANCE LAW, AS BEING A PERSON THAT HAS ENGAGED IN A BOYCOTT
 OF ANY ALLIED NATION, SHALL NOT BE ELIGIBLE TO RECEIVE INVESTMENT OF ANY
 MONEYS OR ASSETS OF THE COMMON RETIREMENT FUND IN ANY STOCKS, SECURITIES
 OR OTHER OBLIGATIONS OF SUCH PERSON SO IDENTIFIED ON SUCH LIST DEVELOPED
 AND PUBLISHED BY THE COMMISSIONER OF GENERAL SERVICES.
   (B) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, NO ASSETS OF
 ANY PENSION OR ANNUITY FUND UNDER THE JURISDICTION OF  THE  COMPTROLLER,
 SHALL  FURTHER  BE  INVESTED  IN ANY BANK OR FINANCIAL INSTITUTION WHICH
 DIRECTLY, OR THROUGH A PARENT OR SUBSIDIARY BOYCOTTS  AN  ALLIED  NATION
 AND NO SUCH ASSETS SHALL OTHERWISE BE INVESTED IN THE STOCKS, SECURITIES
 OR  OTHER  OBLIGATIONS OF ANY PERSON WHICH DIRECTLY, OR THROUGH A PARENT
 OR SUBSIDIARY ENTITY, BOYCOTTS ANY ALLIED NATION.
   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,  DIVESTMENT OR WITHDRAWAL SHALL BE
 COMPLETED NO LATER THAN FIVE YEARS FOLLOWING THE EFFECTIVE DATE OF  THIS
 SECTION.
   4.  ON  OR BEFORE DECEMBER FIFTEENTH, TWO THOUSAND EIGHTEEN, AND EVERY
 YEAR THEREAFTER, THE COMPTROLLER SHALL ISSUE A REPORT TO  THE  GOVERNOR,
 THE  COMMISSIONER  OF  GENERAL  SERVICES, THE TEMPORARY PRESIDENT OF THE
 SENATE, AND THE SPEAKER OF THE ASSEMBLY, ON ALL THE ACTIONS  TAKEN,  AND
 ALL  DETERMINATIONS  MADE, BY THE COMPTROLLER, PURSUANT TO THIS SECTION,
 AND ANY AND ALL RULES OR REGULATIONS ADOPTED.
   § 3. This act shall take effect immediately.