S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3917
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 31, 2019
                                ___________
 
 Introduced  by M. of A. ENGLEBRIGHT, MONTESANO -- read once and referred
   to the Committee on Governmental Operations
 
 AN ACT to amend the  state  finance  law,  in  relation  to  pay-to-play
   disclosure reform
 
   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
 139-m to read as follows:
   §  139-M. REPORTING OF CONTRIBUTIONS BY BUSINESS ENTITIES.  1. FOR THE
 PURPOSES OF THIS SECTION, A "BUSINESS ENTITY" SHALL MEAN ANY NATURAL  OR
 LEGAL  PERSON,  BUSINESS CORPORATION, PROFESSIONAL SERVICES CORPORATION,
 LIMITED LIABILITY COMPANY, PARTNERSHIP,  LIMITED  PARTNERSHIP,  BUSINESS
 TRUST, ASSOCIATION, LABOR ORGANIZATION, RELIGIOUS CORPORATION, EDUCATION
 CORPORATION,  OR  NOT-FOR-PROFIT CORPORATION ORGANIZED UNDER THE LAWS OF
 THIS STATE OR ANY OTHER STATE OR FOREIGN JURISDICTION, INCLUDING:
   A. ALL INDIVIDUALS WHO OWN OR CONTROL MORE THAN  TEN  PERCENT  OF  THE
 PROFITS  OR  ASSETS  OF A BUSINESS ENTITY OR TEN PERCENT OF THE STOCK IN
 THE CASE OF A BUSINESS ENTITY THAT  IS  A  CORPORATION  FOR  PROFIT,  AS
 APPROPRIATE;
   B.  KEY  EMPLOYEES  OF THE BUSINESS ENTITY, WHICH SHALL MEAN OFFICERS,
 MEMBERS OF THE BOARD OF DIRECTORS AND TRUSTEES, AND THEIR SPOUSES;
   C. ANY SUBSIDIARIES DIRECTLY OR INDIRECTLY CONTROLLED BY THE  BUSINESS
 ENTITY;
   D.  ANY  POLITICAL  ORGANIZATION  ORGANIZED  UNDER  SECTION 527 OF THE
 INTERNAL REVENUE CODE THAT IS DIRECTLY OR INDIRECTLY CONTROLLED  BY  THE
 BUSINESS  ENTITY,  OTHER  THAN  A CANDIDATE COMMITTEE, ELECTION FUND, OR
 POLITICAL PARTY COMMITTEE; AND
   E. IF A BUSINESS ENTITY IS A  NATURAL  PERSON,  THAT  PERSON'S  SPOUSE
 AND/OR CHILD, RESIDING WITH THE BUSINESS ENTITY.
   2. PRIOR TO THE SUBMISSION TO THE DEPARTMENT OF LAW AND THE DEPARTMENT
 OF AUDIT AND CONTROL FOR APPROVAL OF A PROCUREMENT CONTRACT FOR THE SALE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07147-01-9

 A. 3917                             2
 
 OF  GOODS,  SERVICES,  OR  CONSTRUCTION TO A STATE AGENCY, AS DEFINED IN
 SECTION ONE HUNDRED SIXTY OF THIS CHAPTER, OR ANY PUBLIC AUTHORITY  WHEN
 ITS  PROCUREMENT  CONTRACTS ARE SUBMITTED TO THE DEPARTMENT OF AUDIT AND
 CONTROL  FOR  APPROVAL,  OR TO EITHER HOUSE OF THE STATE LEGISLATURE OR,
 FOR PROCUREMENTS THAT DO NOT REQUIRE THE APPROVAL OF THE  DEPARTMENT  OF
 LAW  OR  THE  DEPARTMENT OF AUDIT AND CONTROL, PRIOR TO THE EXECUTION OF
 THE PROCUREMENT CONTRACT, INCLUDING BUT NOT LIMITED TO CONTRACTS FOR THE
 ACQUISITION, SALE, OR LEASE OF ANY REAL PROPERTY FROM OR TO ANY BUSINESS
 ENTITY OR PRIOR TO THE AWARD OF A GRANT  TO  ANY  BUSINESS  ENTITY,  THE
 BUSINESS  ENTITY  SHALL  REPORT ON A FORM TO BE CREATED BY THE OFFICE OF
 AUDIT AND CONTROL ALL CONTRIBUTIONS THE BUSINESS ENTITY MADE DURING  THE
 PRECEDING  EIGHTEEN  MONTHS TO A CANDIDATE COMMITTEE OR ELECTION FUND OF
 ANY CANDIDATE OR HOLDER OF THE OFFICE OF GOVERNOR, LIEUTENANT  GOVERNOR,
 STATE  COMPTROLLER  OR ATTORNEY GENERAL IF THE PROCUREMENT IS TO BE MADE
 BY A STATE AGENCY OR CONTRIBUTIONS TO CANDIDATES  FOR  ELECTION  TO  THE
 HOUSE  OF  THE STATE LEGISLATURE SEEKING THE PROCUREMENT IF THE PROCURE-
 MENT IS TO BE MADE BY A HOUSE OF THE LEGISLATURE.  THE  BUSINESS  ENTITY
 SHALL  HAVE A CONTINUING DUTY TO REPORT ANY CONTRIBUTION IT MAKES DURING
 THE TERM OF THE CONTRACT UNTIL ITS COMPLETION OR FOR A PERIOD  OF  EIGH-
 TEEN MONTHS AFTER THE AWARD, WHICHEVER IS GREATER.
   3.  IT SHALL BE A BREACH OF THE TERMS OF THE GOVERNMENT CONTRACT FOR A
 BUSINESS ENTITY TO KNOWINGLY  CONCEAL  OR  MISREPRESENT  A  CONTRIBUTION
 GIVEN  OR  RECEIVED OR TO MAKE OR SOLICIT CONTRIBUTIONS THROUGH INTERME-
 DIARIES FOR THE PURPOSE OF CONCEALING OR MISREPRESENTING THE  SOURCE  OF
 THE CONTRIBUTION.
   4.  IF A BUSINESS ENTITY IS FOUND, AFTER NOTIFICATION OF AN ALLEGATION
 OF A VIOLATION OF THE PROVISIONS OF THIS SECTION, AN OPPORTUNITY  TO  BE
 HEARD, AND REVIEW AND INVESTIGATION BY THE ETHICS OFFICER OF THE GOVERN-
 MENTAL ENTITY CONDUCTING THE PROCUREMENT OR OTHER DESIGNATED OFFICIAL OF
 THE PROCURING GOVERNMENTAL ENTITY RESPONSIBLE FOR REVIEWING AND INVESTI-
 GATING  SUCH  MATTERS,  TO  HAVE  KNOWINGLY  AND  WILLFULLY VIOLATED THE
 REQUIREMENTS OF THIS SECTION, IT SHALL  RESULT  IN  A  DETERMINATION  OF
 NON-RESPONSIBILITY  FOR  SUCH  BUSINESS ENTITY, AND SUCH BUSINESS ENTITY
 AND ITS SUBSIDIARIES, AND ANY RELATED OR SUCCESSOR ENTITY WITH  SUBSTAN-
 TIALLY  SIMILAR  FUNCTION,  MANAGEMENT, BOARD OF DIRECTORS, OFFICERS AND
 SHAREHOLDERS SHALL NOT BE AWARDED THE PROCUREMENT CONTRACT,  UNLESS  THE
 GOVERNMENTAL  ENTITY FINDS THAT THE AWARD OF THE PROCUREMENT CONTRACT TO
 THE BUSINESS ENTITY IS NECESSARY TO PROTECT PUBLIC  PROPERTY  OR  PUBLIC
 HEALTH  OR SAFETY, AND THAT THE BUSINESS ENTITY IS THE ONLY SOURCE CAPA-
 BLE OF SUPPLYING THE REQUIRED ARTICLE OF PROCUREMENT WITHIN  THE  NECES-
 SARY  TIMEFRAME,  PROVIDED THAT THE GOVERNMENTAL ENTITY SHALL INCLUDE IN
 THE PROCUREMENT RECORD A STATEMENT DESCRIBING THE BASIS FOR  SUCH  FIND-
 ING. ANY SUBSEQUENT DETERMINATION OF NON-RESPONSIBILITY DUE TO VIOLATION
 OF THIS SECTION WITHIN FOUR YEARS OF A DETERMINATION OF NON-RESPONSIBIL-
 ITY  DUE  TO  A  VIOLATION  OF THIS SECTION SHALL RESULT IN THE BUSINESS
 ENTITY BEING RENDERED INELIGIBLE TO SUBMIT A PROPOSAL ON OR  BE  AWARDED
 ANY PROCUREMENT CONTRACT FOR A PERIOD OF FOUR YEARS FROM THE DATE OF THE
 SECOND  FINAL DETERMINATION. EVERY GOVERNMENTAL ENTITY SHALL ENSURE THAT
 ITS SOLICITATIONS OF PROPOSALS FOR PROCUREMENT CONTRACTS REQUIRE  POTEN-
 TIAL   VENDORS   TO  DISCLOSE  FINDINGS  OF  NON-RESPONSIBILITY  DUE  TO
 VIOLATIONS OF THE PROVISIONS OF THIS SECTION WITHIN  THE  PREVIOUS  FOUR
 YEARS  MADE BY ANY GOVERNMENTAL ENTITY. THE FAILURE OF BUSINESS ENTITIES
 TO TIMELY DISCLOSE ACCURATE AND COMPLETE INFORMATION OR OTHERWISE  COOP-
 ERATE WITH THE GOVERNMENTAL ENTITY IN ADMINISTERING THIS PROVISION SHALL
 BE CONSIDERED BY THE GOVERNMENTAL ENTITY IN ITS DETERMINATION OF RESPON-
 SIBILITY. UPON A DETERMINATION OF NON-RESPONSIBILITY OR DEBARMENT DUE TO

 A. 3917                             3
 
 A  VIOLATION  OF  THIS SECTION, THE GOVERNMENTAL ENTITY SHALL NOTIFY THE
 OFFICE OF GENERAL SERVICES, WHICH SHALL KEEP  A  LIST  OF  ALL  BUSINESS
 ENTITIES  THAT  HAVE  BEEN  DETERMINED  TO  BE NONRESPONSIBLE BIDDERS OR
 DEBARRED  DUE  TO VIOLATION OF THIS SECTION, AND THE OFFICE OF AUDIT AND
 CONTROL. THE OFFICE OF GENERAL SERVICES SHALL MAKE  SUCH  LIST  PUBLICLY
 AVAILABLE AND SHALL PUBLISH SUCH LIST ON ITS WEBSITE.
   5.  EVERY  CONTRACT AND BID APPLICATION AND SPECIFICATIONS PROMULGATED
 IN  CONNECTION  THEREWITH  COVERED  BY  THIS  ARTICLE  SHALL  CONTAIN  A
 PROVISION  DESCRIBING  THE  REQUIREMENTS OF THIS SECTION AND A STATEMENT
 THAT COMPLIANCE WITH THIS SECTION SHALL BE A MATERIAL TERM AND CONDITION
 OF SAID CONTRACT OR BID APPLICATION AND BINDING UPON THE PARTIES THERETO
 UPON THE ENTRY OF ALL APPLICABLE CONTRACTS.
   6. THE DEPARTMENT OF AUDIT AND CONTROL SHALL MAINTAIN A DETAILED LIST-
 ING OF ALL CONTRIBUTIONS, ON ITS WEBSITE, MADE  BY  INTERESTED  BUSINESS
 ENTITIES IN THE PROCUREMENT RECORDS OF CONTRACTS INVOLVING SUCH BUSINESS
 ENTITIES.
   §  2.  This  act shall take effect on the ninetieth day after it shall
 have become a law.