NY State Senate Bill 2019-S3167

Archive: Last Bill Status - In Senate Committee Elections Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to elections returned to senate died in assembly
Mar 05, 2019	referred to election law delivered to assembly passed senate
Feb 28, 2019	advanced to third reading
Feb 27, 2019	2nd report cal.
Feb 26, 2019	1st report cal.165
Feb 04, 2019	referred to elections

Votes

- Mar 5, 2019 - Floor Vote
  S3167
  
  Aye
  
  60
  
  Nay
  
  0
  
  Absent
  
  1
  
  Excused
  
  2
  
  Abstained
  
  0
  - - Floor Vote: Mar 5, 2019
      
      aye (60)
      
      Addabbo Jr.
      
      Akshar
      
      Amedore
      
      Antonacci
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hoylman-Sigal
      
      Jackson
      
      Jacobs
      
      Jordan
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      LaValle
      
      Lanza
      
      Liu
      
      Martinez
      
      May
      
      Mayer
      
      Metzger
      
      Montgomery
      
      Myrie
      
      O'Mara
      
      Ortt
      
      Parker
      
      Persaud
      
      Ramos
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Seward
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      absent (1)
      
      Young
      
      excused (2)
      
      Kaminsky
      
      Little
  Feb 25, 2019 - Elections Committee Vote
  S3167
  
  Aye
  
  7
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Elections Committee Vote: Feb 25, 2019
      
      aye (7)
      
      Akshar
      
      Kavanagh
      
      May
      
      Mayer
      
      Myrie
      
      Salazar
      
      Young

co-Sponsors

View additional co-sponsors

2019-S3167 (ACTIVE) - Details

See Assembly Version of this Bill:: A113
Current Committee:: Senate Elections
Law Section:: Election Law
Laws Affected:: Add §14-131, amd §14-126, El L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S8039, A9924
2021-2022: S483, A5839
2023-2024: S6247, A7179

2019-S3167 (ACTIVE) - Summary

Relates to government vendor contributions.

2019-S3167 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3167

SPONSOR: MYRIE
 
TITLE OF BILL:

An act to amend the election law, in relation to government vendor
contributions

 
PURPOSE:

This bill would reduce the appearance of or actual improper influence of
the state contracting process and increase its fairness by banning camp-
ing contributions from a company seeking state contracts to officehold-
ers with authority over procuring entities during a "restricted vendor
contribution period." Prospective vendors would be barred from making
contributions when responding to a request for proposals (RFPs) for six
months after winning a contract, or when lobbying to create a procure-
ment opportunity.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill creates a new section 131 of Article 14 of the
Election Law.

Subsection 1 (a) prohibits vendor contributions, indirectly or directly,
to political committees operationally controlled by officeholders with
authority over state governmental entities responsible for issuing a
procurement solicitation, evaluating responses, or determining or award-
ing a final contract.

Subsection 1 (b) distinguishes between the senate and assembly when a
solicitation for procurement is issued by the legislature.

Subsection 1 (c) requires the state government entity issuing a procure-
ment solicitation to include a notice of the prohibition on campaign
contributions by vendors submitting a proposal in response to the solic-
itation.

Subsection 2 defines the term "business entity" broadly including affil-
iated subsidiaries and political organizations directly or indirectly
controlled by the business entity.

Subsection 3 defines the "restricted vendor contribution period" during
which a business entity may not make contributions to the committees
operationally controlled by officeholders with authority over state
governmental entities issuing a procurement solicitation.

Subsection 4 indicates when the restricted vendor contribution period
begins and ends. The restricted vendor contribution period covers the
period from the issuance of a bid until 6 months after a contract has
been awarded (except the post award 6-month restricted period does not
apply to losing bidders) and, for vendors registering as lobbyists to
create a procurement opportunity, additionally includes the period
before a bid is issued during which the vendor is registered to lobby to
create a procurement opportunity or pilot program.

Section 2 of the bill amends sections 14-126 of Election Law by adding a
new subdivision 7.

Subdivision 7 (a) provides that any business entity intentionally
violating the law is subject to a penalty of up to $10,000 or 200
percent of the amount of the contribution, to be recoverable in a
special proceeding brought by the board of elections chief enforcement
counsel.

Subdivision 7 (b) provides that any person acting on behalf of an
officeholder, candidate or political committee who receives a contrib-
ution in contravention with the restricted vendor contribution prohibi-
tion will be required to refund the contribution.

Section 3 establishes the effective date of the legislation which is 180
days after passage into law.

 
JUSTIFICATION:

New York State government has over 50,000 contracts worth billions of
dollars with companies that provide products and services across numer-
ous industries. The United Nations, Transparency International and
Global Witness recognize the contracting process as vulnerable to
improper influence and "bid rigging." Allegations of bid rigging of
contacts in New York have led to indictments and trials of company exec-
utives and state officials in 2018. Nineteen states and New York City
have laws that restrict campaign contributions from entities seeking
government contracts.

Many state contracts are bid out through Requests for Proposals (RFPs).
Other contracts are the result of lobbying and engagement of government
by vendors to make their products and services known to state officials,
which may result in a competitive bid by the procuring entity or a
contract reached with a specific vendor without a competitive bidding
process. Currently, when a vendor presents its products and services to
a government entity, it may also make campaign contributions to office-
holders overseeing that entity. This may unfairly influence the procure-
ment process or create a perception of improper influence.  This legis-
lation prohibits vendors from making contributions to the officeholder
with authority over the bidding entity during a "restricted vendor
contribution period." The "restricted vendor contribution period" varies
depending on vendor's activities, but at minimum covers from when an RFP
is issued to when a contract is awarded when a vendor makes a bid. The
restricted period lasts six months beyond the award of the contract for
the winning vendor. A vendor lobbying to create a procurement opportu-
nity or on an awarded contract is also prohibited from making contrib-
utions during that time The prohibition will largely impact contrib-
utions to the Governor, as most bidding entities are state agencies.
Contributions to legislators will only be banned if the legislature is
bidding for a product or service, and are limited to vendors lobbying or
bidding for a specific contract for that particular product or service.

 
LEGISLATIVE HISTORY:

2018: A.9924 (Buchwald) - Referred to Election Law / S.8039 (Croci)
Referred to Elections (Similar to Governor's proposal, part ;L of A.3010
(Budget) /S.2010 (Budget) of 2017 and Part ;L of A.9510 (Budget) /S.
7510 (Budget) of 2018)

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None

 
EFFECTS ON FINES TERMS OF IMPRISONMENT AND OTHER PENAL SANCTIONS:

None

 
EFFECTIVE DATE:
This act shall take effect on the 180th day after it shall have become a
law.

2019-S3167 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3167
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 4, 2019
                                ___________
 
 Introduced  by  Sen.  MYRIE  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Elections
 
 AN ACT to amend the election  law,  in  relation  to  government  vendor
   contributions
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The election law is amended by adding a new section  14-131
 to read as follows:
   § 14-131. GOVERNMENT VENDOR CONTRIBUTIONS. 1. (A) IT SHALL BE UNLAWFUL
 DURING  THE RESTRICTED VENDOR CONTRIBUTION PERIOD FOR ANY PERSON, ORGAN-
 IZATION, GROUP OF PERSONS, OR BUSINESS ENTITY THAT SUBMITS A BID, QUOTA-
 TION, OFFER OR RESPONSE TO A STATE GOVERNMENTAL ENTITY POSTING OR SOLIC-
 ITATION FOR PROCUREMENT TO MAKE A CONTRIBUTION TO ANY OFFICEHOLDER OF OR
 WITH AUTHORITY OVER THE STATE GOVERNMENTAL ENTITY OR ENTITIES  RESPONSI-
 BLE  FOR  ISSUING  SUCH  PROCUREMENT POSTING OR SOLICITATION, EVALUATING
 RESPONSES TO THE PROCUREMENT POSTING OR  SOLICITATION  FOR  PURPOSES  OF
 DETERMINING  AN  AWARD,  OR  APPROVING  THE  SELECTION OF AN AWARDEE, OR
 AWARDING THE FINAL CONTRACT, OR TO ANY CANDIDATE FOR AN OFFICE  OF  SUCH
 GOVERNMENTAL  ENTITY,  INCLUDING  TO  SUCH OFFICEHOLDER'S OR CANDIDATE'S
 AUTHORIZED POLITICAL COMMITTEES OR POLITICAL COMMITTEES THE OFFICEHOLDER
 OR CANDIDATE EXERTS OPERATIONAL CONTROL OVER. IT SHALL FURTHER BE UNLAW-
 FUL, PURSUANT TO SECTION 14-120 OF THIS ARTICLE, TO  MAKE  CONTRIBUTIONS
 TO  POLITICAL  COMMITTEES  NOT AUTHORIZED OR OPERATIONALLY CONTROLLED BY
 THE OFFICEHOLDER OR CANDIDATE FOR THE PURPOSE OF TRANSFERRING A CONTRIB-
 UTION TO THE OFFICEHOLDER'S OR CANDIDATE'S AUTHORIZED POLITICAL  COMMIT-
 TEES OR POLITICAL COMMITTEES THEY EXERT OPERATIONAL CONTROL OVER.
   (B)  FOR  PURPOSES  OF  THIS  SECTION THE ASSEMBLY AND SENATE SHALL BE
 SEPARATE AND DISTINCT GOVERNMENTAL ENTITIES WHEN A PARTICULAR POSTING OR
 SOLICITATION FOR PROCUREMENT IS ISSUED BY ONLY ONE RESPECTIVE HOUSE.
   (C) THE STATE GOVERNMENTAL ENTITY  DIRECTLY  RESPONSIBLE  FOR  ISSUING
 SUCH  POSTING  OR SOLICITATION FOR PROCUREMENT SHALL INCLUDE A NOTICE OF
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00939-01-9

 S. 3167                             2
 
 THE PROHIBITION ESTABLISHED BY THIS SECTION AND THE  STATE  GOVERNMENTAL
 ENTITY RESPONSIBLE FOR EVALUATING RESPONSES TO SUCH POSTING OR SOLICITA-
 TION  SHALL  PROVIDE  TO  ANY PERSON, ORGANIZATION, GROUP OF PERSONS, OR
 BUSINESS  ENTITY  THAT SUBMITS A PROPOSAL IN RESPONSE TO SUCH POSTING OR
 SOLICITATION A NOTICE OF THE PROHIBITION ESTABLISHED BY THIS SECTION AND
 THE RESTRICTED VENDOR CONTRIBUTION PERIOD COMMENCEMENT DATE.
   2. AS USED IN THIS SECTION "BUSINESS ENTITY" MEANS A  BUSINESS  CORPO-
 RATION,  PROFESSIONAL  SERVICES  CORPORATION, LIMITED LIABILITY COMPANY,
 PARTNERSHIP, LIMITED PARTNERSHIP, BUSINESS  TRUST,  ASSOCIATION  OR  ANY
 OTHER  LEGAL COMMERCIAL ENTITY ORGANIZED UNDER THE LAWS OF THIS STATE OR
 ANY OTHER  STATE  OR  FOREIGN  JURISDICTION,  INCLUDING  ANY  SUBSIDIARY
 DIRECTLY  OR INDIRECTLY CONTROLLED BY THE BUSINESS ENTITY, AND ANY POLI-
 TICAL ORGANIZATION, INCLUDING BUT NOT LIMITED TO ANY POLITICAL ORGANIZA-
 TION ORGANIZED UNDER SECTION 527 OF THE INTERNAL REVENUE CODE,  THAT  IS
 DIRECTLY OR INDIRECTLY CONTROLLED BY THE BUSINESS ENTITY.
   3. THE RESTRICTED VENDOR CONTRIBUTION PERIOD DESCRIBED IN THIS SECTION
 SHALL  COMMENCE,  WITH RESPECT TO A SPECIFIC PERSON, ORGANIZATION, GROUP
 OF PERSONS, OR BUSINESS ENTITY WHEN IT FILES A STATEMENT OF REGISTRATION
 PURSUANT TO SECTION ONE-E OF THE LEGISLATIVE LAW, OR  ENGAGES  LOBBYING,
 AS  DEFINED  BY SUBDIVISION (C) OF SECTION ONE-C OF THE LEGISLATIVE LAW,
 TO GENERATE A PROCUREMENT OPPORTUNITY OR PILOT PROGRAM OR SUBMITS A BID,
 QUOTATION, OFFER OR RESPONSE TO THE STATE GOVERNMENTAL ENTITY POSTING OR
 SOLICITATION, AT THE EARLIEST POSTING, ON A STATE GOVERNMENTAL  ENTITY'S
 WEBSITE,  IN  A  NEWSPAPER  OF GENERAL CIRCULATION OR IN THE PROCUREMENT
 OPPORTUNITIES NEWSLETTER  IN  ACCORDANCE  WITH  ARTICLE  FOUR-C  OF  THE
 ECONOMIC  DEVELOPMENT  LAW OF WRITTEN NOTICE, ADVERTISEMENT OR SOLICITA-
 TION OF A REQUEST FOR PROPOSAL, INVITATION FOR BIDS, OR SOLICITATIONS OF
 PROPOSALS, OR ANY OTHER METHOD PROVIDED FOR BY  LAW  OR  REGULATION  FOR
 SOLICITING A RESPONSE FROM OFFERERS INTENDING TO RESULT IN A PROCUREMENT
 CONTRACT  WITH  A  STATE  GOVERNMENTAL  ENTITY.  THE  RESTRICTED  VENDOR
 CONTRIBUTION PERIOD DOES NOT APPLY TO A PERSON, ORGANIZATION,  GROUP  OF
 PERSONS  OR  BUSINESS  ENTITY THAT IS RESPONDING TO A STATE GOVERNMENTAL
 ENTITY'S REQUEST FOR INFORMATION OR OTHER INFORMATIONAL EXCHANGES OCCUR-
 RING PRIOR TO SUCH GOVERNMENTAL ENTITY'S  POSTING  OR  SOLICITATION  FOR
 PROCUREMENT PROVIDED IT HAS NOT FILED A STATEMENT OF REGISTRATION PURSU-
 ANT  TO  SECTION ONE-E OF THE LEGISLATIVE LAW OR ENGAGED IN LOBBYING, AS
 DEFINED BY SUBDIVISION (C) OF SECTION ONE-C OF THE LEGISLATIVE  LAW,  TO
 GENERATE A PROCUREMENT OPPORTUNITY OR PILOT PROGRAM.
   4. THE RESTRICTED VENDOR CONTRIBUTION PERIOD DESCRIBED IN THIS SECTION
 SHALL  END  WITH  RESPECT  TO  A SPECIFIC PERSON, ORGANIZATION, GROUP OF
 PERSONS, OR BUSINESS ENTITY IF:
   (A) THE PERSON, ORGANIZATION, GROUP OF PERSONS, OR BUSINESS ENTITY  IS
 THE  RECIPIENT  OF  THE  FINAL  CONTRACT  AWARD,  THE  RESTRICTED VENDOR
 CONTRIBUTION PERIOD SHALL END SIX MONTHS AFTER THE FINAL CONTRACT  AWARD
 AND APPROVAL BY THE STATE GOVERNMENTAL ENTITY AND, WHERE APPLICABLE, THE
 STATE  COMPTROLLER  AND IF THE PERSON, ORGANIZATION, GROUP OF PERSONS OR
 BUSINESS ENTITY DOES NOT LOBBY ON THE EXECUTION OF  THE  CONTRACT  AFTER
 ITS AWARD; OR
   (B)  THE PERSON, ORGANIZATION, GROUP OF PERSONS, OR BUSINESS ENTITY IS
 NOT THE RECIPIENT OF THE FINAL CONTRACT  AWARD,  THE  RESTRICTED  VENDOR
 CONTRIBUTION PERIOD SHALL END WITH THE FINAL CONTRACT AWARD AND APPROVAL
 BY  THE STATE GOVERNMENTAL ENTITY AND, WHERE APPLICABLE, THE STATE COMP-
 TROLLER.
   5. THE RESTRICTED VENDOR CONTRIBUTION PERIOD  SHALL  RECOMMENCE  IF  A
 PERSON,  ORGANIZATION,  GROUP  OF  PERSONS OR BUSINESS ENTITY ENGAGES IN
 ACTIVITY PURSUANT TO SUBDIVISION THREE OF THIS SECTION.

 S. 3167                             3
 
   § 2. Section 14-126 of the election law is amended  by  adding  a  new
 subdivision 8 to read as follows:
   8.  (A) ANY PERSON, ORGANIZATION, GROUP OF PERSONS, OR BUSINESS ENTITY
 AS THAT TERM IS USED IN SECTION  14-131  OF  THIS  ARTICLE,  WHO,  UNDER
 CIRCUMSTANCES  EVINCING  AN INTENT TO VIOLATE SUCH LAW, MAKES A CONTRIB-
 UTION IN CONTRAVENTION OF  SECTION  14-131  OF  THIS  ARTICLE  SHALL  BE
 SUBJECT  TO  A  CIVIL  PENALTY NOT TO EXCEED THE GREATER OF TEN THOUSAND
 DOLLARS OR AN AMOUNT EQUAL TO TWO HUNDRED PERCENT OF  THE  CONTRIBUTION,
 TO  BE RECOVERABLE IN A SPECIAL PROCEEDING OR CIVIL ACTION TO BE BROUGHT
 BY THE STATE BOARD OF ELECTIONS CHIEF ENFORCEMENT COUNSEL.
   (B) ANY PERSON WHO, ACTING AS OR ON BEHALF OF AN OFFICEHOLDER,  CANDI-
 DATE,  OR  POLITICAL  COMMITTEE,  ACCEPTS  A  CONTRIBUTION OR RECEIVES A
 TRANSFER IN CONTRAVENTION OF SECTION 14-131 OF  THIS  ARTICLE  SHALL  BE
 REQUIRED TO REFUND SUCH CONTRIBUTION.
   § 3. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.

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Senate Bill S3167

Sponsored By

Archive: Last Bill Status - In Senate Committee Elections Committee

Actions

Votes

Mar 5, 2019 - Floor Vote

Floor Vote: Mar 5, 2019

Feb 25, 2019 - Elections Committee Vote

Elections Committee Vote: Feb 25, 2019

co-Sponsors

2019-S3167 (ACTIVE) - Details

2019-S3167 (ACTIVE) - Summary

2019-S3167 (ACTIVE) - Sponsor Memo

2019-S3167 (ACTIVE) - Bill Text download pdf

Comments

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Senate Bill S3167

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Sponsored By

Zellnor Myrie

Archive: Last Bill Status - In Senate Committee Elections Committee

Actions

Votes

co-Sponsors

Alessandra Biaggi

Anna M. Kaplan

Liz Krueger

Jen Metzger

2019-S3167 (ACTIVE) - Details

2019-S3167 (ACTIVE) - Summary

2019-S3167 (ACTIVE) - Sponsor Memo

2019-S3167 (ACTIVE) - Bill Text download pdf

Comments