Bill Text: NY A09501 | 2021-2022 | General Assembly | Introduced
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Bill Title: Provides that 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 that such person is doing business with or in the Russian federation and shall not be deemed a responsive bidder or offeror.
Spectrum: Slight Partisan Bill (Democrat 13-5)
Status: (Introduced - Dead) 2022-05-12 - print number 9501a [A09501 Detail]
Download: New_York-2021-A09501-Introduced.html
Bill Title: Provides that 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 that such person is doing business with or in the Russian federation and shall not be deemed a responsive bidder or offeror.
Spectrum: Slight Partisan Bill (Democrat 13-5)
Status: (Introduced - Dead) 2022-05-12 - print number 9501a [A09501 Detail]
Download: New_York-2021-A09501-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 9501 IN ASSEMBLY March 10, 2022 ___________ Introduced by M. of A. SAYEGH -- read once and referred to the Committee on Governmental Operations AN ACT to amend the state finance law and the retirement and social security law, in relation to enacting the "stop Russian aggression act" The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "stop Russian aggression act". 3 § 2. The state finance law is amended by adding a new section 165-b to 4 read as follows: 5 § 165-b. Purchasing restrictions; persons doing business with or in 6 the Russian federation. 1. As used in this section, the following terms 7 shall have the following meanings: 8 (a) "Person" means: 9 (i) A natural person, corporation, company, limited liability company, 10 business, business association, partnership, society, trust, or any 11 other nongovernmental entity, organization, or group. 12 (ii) Any successor, subunit, parent entity, or subsidiary of, or any 13 entity under common ownership or control with, any entity described in 14 subparagraph (i) of this paragraph. 15 (b) "Doing business with or in the Russian federation" means engaging 16 in any activity or transaction for the purpose of financial or pecuniary 17 gain or profit with the Russian federation or persons based in or with 18 locations in the Russian federation or in territories controlled by the 19 Russian federation. 20 2. (a) A person that is identified on a list created pursuant to para- 21 graph (b) of this subdivision as a person that is doing business with or 22 in the Russian federation as described in subdivision one of this 23 section, shall not be deemed a responsive bidder or offeror pursuant to 24 section one hundred sixty-three of this article. 25 (b) (i) Not later than one hundred twenty days after the effective 26 date of this section, the commissioner shall develop or contract to 27 develop, using credible information available to the public, including EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14854-02-2A. 9501 2 1 but not limited to information provided by non-profit organizations, 2 research firms, international organizations and government entities, a 3 list of persons it determines is doing business with or in the Russian 4 federation as described in subdivision one of this section. If the 5 commissioner has contracted to develop the list, the list shall be 6 finally developed not later than one hundred twenty days after the 7 effective date of this section. Such list, when completed, shall be 8 posted on the website of the office of general services. A statement by 9 a person or representative of a person with apparent authority to make 10 such a statement, that it is doing business with or in the Russian 11 federation, shall be considered as evidence that a company is doing 12 business with or in the Russian federation. The commissioner may 13 exclude from the list persons who engage in activities or transactions 14 of nominal or negligible value. 15 (ii) The commissioner shall update the list every one hundred eighty 16 days. 17 (iii) Before finalizing an initial list pursuant to subparagraph (i) 18 of this paragraph or an updated list pursuant to subparagraph (ii) of 19 this paragraph, the commissioner shall do all of the following: 20 (1) Provide ninety days' written notice of the commissioner's intent 21 to include the person on the list. The notice shall inform the person 22 that inclusion on the list would make the person a non-responsive bidder 23 or offeror. The notice shall specify the business activities as 24 described in subdivision one of this section, and provide that such 25 person may apply to the commissioner, or to a supreme court, to be 26 removed from such list pursuant to the requirements of this paragraph, 27 if it ceases such activities; 28 (2) In the event a person included by the commissioner on the list to 29 be developed and published in accordance with this paragraph, demon- 30 strates to the commissioner or to a supreme court that such person is 31 not engaged in such business activities as described in subdivision one 32 of this section, or has ceased such business activities, the commission- 33 er shall remove such person from the list developed and published in 34 accordance with this paragraph; and 35 (3) The commissioner shall make a good faith effort to avoid including 36 a person on the list who is not doing business with or in the Russian 37 federation. 38 (c) Notwithstanding paragraphs (a) and (b) of this subdivision, a 39 state agency may permit a person doing business with or in the Russian 40 federation as described by subdivision one of this section to be deemed 41 a responsive bidder or offeror, on a case-by-case basis with a state 42 agency if: 43 (i) The business activities were made before the effective date of 44 this section, such activities have not been expanded or renewed after 45 the effective date of this section, and the person has adopted, publi- 46 cized, and is implementing a plan to cease such activities and to 47 refrain from engaging in any new business activities; or 48 (ii) The state agency makes a determination that the commodities or 49 services are necessary for the state agency to perform its functions and 50 that, absent such an exemption, the state agency would be unable to 51 obtain the commodities or services for which the contract is offered. 52 Such determination shall be entered into the procurement record. 53 3. (a) A state agency shall require a person that submits a bid or 54 offer in response to a notice of procurement, or that proposes to renew 55 an existing procurement contract with a state agency or proposes to 56 assume the responsibility of a contractor pursuant to a procurementA. 9501 3 1 contract with a state agency or otherwise proposes to enter into a 2 contract with a state agency with respect to a contract for commodities, 3 services, construction, or contracts entered pursuant to section eight 4 of the public buildings law or section thirty-eight of the highway law, 5 to certify, at the time the bid is submitted or the contract is renewed 6 or assigned, that the person or the assignee is not identified on a list 7 created pursuant to paragraph (b) of subdivision two of this section. A 8 state agency shall include certification information in the procurement 9 record. 10 (b) A person that submits a bid or offer in response to a notice of 11 procurement or that proposes to renew an existing procurement contract 12 with a state agency or proposes to assume the responsibility of a 13 contractor pursuant to a procurement contract with a state agency, or 14 otherwise proposes to enter into a contract with a state agency with 15 respect to a contract for commodities, services, construction, or 16 contracts entered pursuant to section eight of the public buildings law 17 or section thirty-eight of the highway law shall not utilize, on the 18 contract with the state agency, any subcontractor that is identified on 19 a list created pursuant to paragraph (b) of subdivision two of this 20 section. 21 4. Upon receiving information that a person who has made the certif- 22 ication required by subdivision three of this section is in violation 23 thereof, the state agency shall review such information and offer the 24 person an opportunity to respond. If the person fails to demonstrate 25 that it has ceased its business activities which are in violation of 26 this act within ninety days after the determination of such violation, 27 then the state agency shall take such action as may be appropriate and 28 provided for by law, rule or contract, including, but not limited to, 29 imposing sanctions, seeking compliance, recovering damages or declaring 30 the contractor in default. 31 5. The commissioner shall report to the governor, comptroller, the 32 temporary president of the senate and the speaker of the assembly annu- 33 ally on or before October first, on the status of this section and any 34 rules or regulations adopted thereunder. 35 § 3. The retirement and social security law is amended by adding a new 36 section 423-d to read as follows: 37 § 423-d. Russian business divestment. 1. As used in this section: 38 a. "Person" means: 39 (i) A natural person, corporation, company, limited liability company, 40 business, business association, partnership, society, trust, or any 41 other nongovernmental entity, organization, or group. 42 (ii) Any successor, subunit, parent entity, or subsidiary of, or any 43 entity under common ownership or control with, any entity described in 44 subparagraph (i) of this paragraph. 45 b. "Doing business with or in the Russian federation" means engaging 46 in any activity or transaction for the purpose of financial or pecuniary 47 gain or profit with the Russian federation or persons based in or with 48 locations in the Russian federation or in territories controlled by the 49 Russian federation. 50 c. "Direct investment" means ownership of an individual stock, securi- 51 ty, equity, asset, or other obligation of a corporation or company. 52 d. "Exclusion list" means the list created pursuant to paragraph a of 53 subdivision two of this section. 54 e. "Indirect investment" means a holding in an investment vehicle that 55 directly or indirectly owns an individual stock, security, equity, 56 asset, or other obligation of a corporation or company.A. 9501 4 1 2. a. Within six months of the effective date of this section, the 2 comptroller shall create an exclusion list of all persons doing business 3 with or in the Russian federation in whose stocks, securities, equities, 4 assets, or other obligations the common retirement fund has any moneys 5 or assets directly invested. 6 b. Upon completion of the exclusion list, it shall be made publicly 7 available, and a copy shall be sent to the temporary president of the 8 senate and the speaker of the assembly. 9 c. The comptroller shall submit notification to any person that has 10 been included in the exclusion list informing them of their inclusion, 11 as well as the requirements of subdivisions three and five of this 12 section. 13 d. At the comptroller's discretion, but no later than two years after 14 the completion of the exclusion list, and no less frequently than annu- 15 ally thereafter, the comptroller shall update the exclusion list to 16 remove any person that is no longer doing business with or in the 17 Russian federation, and add any person necessary to comply with para- 18 graph a of this subdivision, with the exception of such persons removed 19 from the exclusion list pursuant to paragraph b of subdivision four of 20 this section. 21 3. a. At any time following the publication of the exclusion list, any 22 person included in the list may submit to the comptroller a request for 23 removal on the basis of clear and convincing evidence that they are not 24 currently doing business with or in the Russian federation as defined in 25 subdivision one of this section or that they will no longer meet such 26 definition by January first, two thousand thirty. 27 b. Upon satisfaction that a person has met the requirements of para- 28 graph a of this subdivision, the comptroller shall remove that corpo- 29 ration or company from the exclusion list, and provide a written expla- 30 nation for such removal to the temporary president of the senate and the 31 speaker of the assembly. 32 4. a. Within six months from the completion of the exclusion list the 33 comptroller shall issue a determination as to whether divestment from 34 any or all persons on the exclusion list, in whole or in part, pursuant 35 to subdivision five of this section complies with his or her fiduciary 36 obligations and the prudent investor rule as defined by section 11-2.3 37 of the estates, powers and trusts law. The comptroller shall make such 38 determination publicly available and a copy shall be sent to the tempo- 39 rary president of the senate and the speaker of the assembly. 40 b. If the comptroller determines that divestment from any person on 41 the exclusion list does not comply with his or her fiduciary obligations 42 and the prudent investor rule as defined by section 11-2.3 of the 43 estates, powers and trusts law, that person shall be removed from the 44 exclusion list. 45 c. At any time, subject to the comptroller's discretion, but no later 46 than two years from the effective date of this section, and every two 47 years thereafter, any person removed from the exclusion list pursuant to 48 paragraph b of this subdivision shall be returned to the exclusion list, 49 subject to a new determination of prudence issued at that time pursuant 50 to paragraph a of this subdivision. 51 5. a. Commencing one year after the effective date of this section, 52 subject to an affirmative determination of prudence pursuant to subdivi- 53 sion four of this section, and in accordance with sound investment 54 criteria and consistent with his or her fiduciary obligations, the comp- 55 troller shall: (i) divest the common retirement fund of any stocks, 56 securities, equities, assets, or other obligations of persons on theA. 9501 5 1 exclusion list in which any moneys or assets of the common retirement 2 fund are directly invested; and (ii) cease new direct investments of any 3 moneys or assets of the common retirement fund in any stocks, securi- 4 ties, or other obligations of any person doing business with or in the 5 Russian federation. 6 b. Divestment from persons doing business with or in the Russian 7 federation pursuant to this subdivision shall be completed no later than 8 two years from the effective date of this section. Divestment from 9 persons doing business with or in the Russian federation returned to the 10 exclusion list pursuant to paragraph c of subdivision four of this 11 section shall be completed no later than two years from the date of 12 return to the exclusion list. 13 6. Commencing one year after the effective date of this section, and 14 no later than five years from the effective date of this section, 15 subject to an affirmative determination of prudence pursuant to subdivi- 16 sion four of this section, and in accordance with sound investment 17 criteria and consistent with his or her fiduciary obligations, the comp- 18 troller shall endeavor to ensure that no moneys or assets of the common 19 retirement fund are invested in an indirect investment vehicle unless he 20 or she is satisfied on reasonable grounds that such indirect investment 21 vehicle is unlikely to have in excess of two percent of its assets, 22 averaged annually, directly or indirectly invested in persons doing 23 business with or in the Russian federation. 24 7. Commencing two years after the effective date of this section and 25 annually thereafter the comptroller shall issue a report to the tempo- 26 rary president of the senate and the speaker of the assembly, and shall 27 make such report publicly available, outlining all actions taken to 28 comply with this section. 29 § 4. This act shall take effect immediately.
