Assembly Bill A10970

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10970
 
                           I N  A S S E M B L Y
 
                              April 14, 2026
                                ___________
 
 Introduced by M. of A. VALDEZ -- read once and referred to the Committee
   on Governmental Operations
 
 AN  ACT  to  amend  the  state finance law, in relation to boycott-based
   adverse actions by  affected  state  entities  and  public  retirement
   systems
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1.  Legislative  findings.  Divestment  of  public  funds,  or
 precluding  entities  from  contracting with the state, based on partic-
 ipation in a political boycott carries significant  economic,  political
 and  constitutional implications. Such decisions are the province of the
 legislature, and not appropriately accomplished by unilateral  executive
 action.
   Executive  Order 157, issued June 5, 2016, directed state agencies and
 authorities to divest public funds from and exclude from state contract-
 ing entities identified as participating in the Boycott, Divestment  and
 Sanctions  ("BDS")  movement. This action was taken outside of the deli-
 berative processes through which such  consequential  policy  judgements
 should be made.
   The  legislature  takes  no  position  on  the merits of any political
 boycott.   It acts solely to restore  the  proper  constitutional  order
 under  which the legislature authorizes the use of public investment and
 procurement power for political or economic purposes.
   § 2. The state finance law is amended by adding a new section 139-n to
 read as follows:
   § 139-N. BOYCOTT-BASED ADVERSE ACTIONS BY AFFECTED STATE ENTITIES  AND
 PUBLIC  RETIREMENT  SYSTEMS.  1.  DEFINITIONS.  FOR THE PURPOSES OF THIS
 SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "POLITICAL BOYCOTT"  MEANS  A  COLLECTIVE,  ORGANIZED  REFUSAL  TO
 PURCHASE  GOODS,  UTILIZE  SERVICES,  OR  ENGAGE  IN  SOCIAL OR ECONOMIC
 RELATIONS WITH A BUSINESS, NATION OR ORGANIZATION TO  DEMAND  POLITICAL,
 SOCIAL OR POLICY CHANGE.
   (B)  "AFFECTED  STATE  ENTITY"  MEANS (I) ALL AGENCIES AND DEPARTMENTS
 OVER WHICH THE GOVERNOR HAS EXECUTIVE AUTHORITY, AND (II) ALL PUBLIC-BE-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15472-01-6
 A. 10970                            2
 
 NEFIT CORPORATIONS, PUBLIC AUTHORITIES, BOARDS AND COMMISSIONS FOR WHICH
 THE GOVERNOR APPOINTS THE CHAIR, THE CHIEF EXECUTIVE OR THE MAJORITY  OF
 BOARD MEMBERS.
   (C)  "PUBLIC  RETIREMENT  SYSTEM"  MEANS  THE NEW YORK STATE AND LOCAL
 RETIREMENT SYSTEM, THE NEW YORK STATE TEACHERS'  RETIREMENT  SYSTEM  AND
 ANY  OTHER  PUBLIC  PENSION OR RETIREMENT FUND ADMINISTERED BY THE STATE
 COMPTROLLER OR ANY OTHER STATE OFFICIAL OR BODY.
   (D) "BOYCOTT-BASED ADVERSE ACTION" MEANS ANY ACTION TO (I)  DIVEST  OR
 CAUSE  DIVESTITURE  OF PUBLIC RETIREMENT SYSTEM OR AFFECTED STATE ENTITY
 FUNDS FROM ANY SECURITY OR INVESTMENT; (II) DENY, TERMINATE  OR  DECLINE
 TO RENEW A STATE CONTRACT; OR (III) DISQUALIFY ANY PERSON OR ENTITY FROM
 BIDDING ON A STATE CONTRACT, WHERE SUCH ACTION IS BASED ON SUCH PERSON'S
 OR  ENTITY'S  PARTICIPATION  IN, PROMOTION OF OR SUPPORT FOR A POLITICAL
 BOYCOTT.
   2. NOTWITHSTANDING ANY LAW, RULE, EXECUTIVE ORDER OR REGULATION TO THE
 CONTRARY, NO AFFECTED STATE ENTITY OR  PUBLIC  RETIREMENT  SYSTEM  SHALL
 TAKE  ANY  BOYCOTT-BASED  ADVERSE ACTION OR COMPILE, MAINTAIN OR PUBLISH
 ANY LIST OF PERSONS OR ENTITIES  FOR  PURPOSES  OF  SUCH  ACTION  UNLESS
 EXPRESSLY AUTHORIZED BY THE LEGISLATURE. NO EXECUTIVE ORDER, ADMINISTRA-
 TIVE RULE, REGULATION OR GUIDANCE SHALL CONSTITUTE AUTHORIZATION FOR ANY
 AFFECTED  STATE  ENTITY OR PUBLIC RETIREMENT SYSTEM TO TAKE ANY BOYCOTT-
 BASED ADVERSE ACTION OR TO COMPILE, MAINTAIN  OR  PUBLISH  ANY  LIST  OF
 PERSONS OR ENTITIES FOR PURPOSES OF SUCH ACTION.
   3.  THE COMMISSIONER OF GENERAL SERVICES SHALL REMOVE FROM PUBLICATION
 AND CEASE TO MAINTAIN ANY LIST OF ENTITIES COMPILED PURSUANT  TO  EXECU-
 TIVE ORDER NUMBER ONE HUNDRED FIFTY-SEVEN OF TWO THOUSAND SIXTEEN.
   4.  NOTHING IN THIS SECTION SHALL BE CONSTRUED TO IMPAIR THE OPERATION
 OF ANY DIVESTMENT OR CONTRACTING EXCLUSION PROGRAM ESTABLISHED BY  STAT-
 UTE  OR  TO  LIMIT  THE  LEGISLATURE'S  AUTHORITY  TO  ENACT FUTURE SUCH
 PROGRAMS BY STATUTE.
   5. IF ANY CLAUSE, SENTENCE, PARAGRAPH, OR SUBDIVISION OF THIS  SECTION
 SHALL  BE ADJUDGED BY ANY COURT OF COMPETENT JURISDICTION TO BE INVALID,
 SUCH JUDGMENT SHALL NOT AFFECT,  IMPAIR,  OR  INVALIDATE  THE  REMAINDER
 THEREOF, BUT SHALL BE CONFINED IN ITS OPERATION TO THE CLAUSE, SENTENCE,
 PARAGRAPH,  OR  SUBDIVISION THEREOF DIRECTLY INVOLVED IN THE CONTROVERSY
 IN WHICH SUCH JUDGMENT SHALL HAVE BEEN RENDERED. IT IS  HEREBY  DECLARED
 TO  BE  THE  INTENT OF THE LEGISLATURE THAT THIS SECTION WOULD HAVE BEEN
 ENACTED EVEN IF SUCH INVALID PROVISIONS HAD NOT BEEN INCLUDED HEREIN.
   § 3. This act shall take effect immediately.