S2538-2013 Actions

• Jan 18, 2013: REFERRED TO FINANCE

S2538-2013 Memo

BILL NUMBER:S2538

TITLE OF BILL:  An act to amend the state finance law, in relation to
prohibiting political contributions by businesses that have been
awarded state contracts

PURPOSE:  The purpose of this bill is to ensure that business entities
receiving or renewing state contracts cannot directly or indirectly
make expenditures for political purposes, which could influence their
ability to receive such a contract or renewal, and would in effect
involve the use of public funds to buy such influence.

SUMMARY OF PROVISIONS:

Section 1: Adds a new state finance law 148, which Prohibits state
contractors from making direct and indirect political expenditures in
support of or in opposition to any political organization or
candidate.

Section 2: Provides that the Act shall take effect on the thirtieth
day after it becomes law, and will apply to contracts awarded or
renewed on or after that date.

JUSTIFICATION:  This bill is a response to the decision of the U.S.
Supreme Court in Citizens United v. Federal Election Commission, which
effectively eliminated restrictions on corporations' ability to spend
corporate treasury funds in support of or in opposition to political
candidates, political parties and ballot issues. This decision opens
the flood gates for corporations to use their considerable wealth to
spend as much as they want on independent political advertising in
support of or in opposition to candidates for political office, ballot
issues and political organizations. This could have a seriously
distorting and corrupting effect on the election of our
representatives and the awarding of government contracts, since the
ability to make such expenditures could be used to threaten those with
the authority to award government contracts, as well as politicians
with the power to influence those who award them.

LEGISLATIVE HISTORY:  2010: S.7478 - Referred to Elections.
2011-2012: S. 1565 - Referred to Finance.

FISCAL IMPLICATIONS:  None to the state.

EFFECTIVE DATE:  This bill is effective on the thirtieth day after
becoming law.

S2538-2013 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         2538
 2013-2014 Regular Sessions
 I N  SENATE
 January 18, 2013
 
 Introduced  by  Sen. ADDABBO -- read twice and ordered printed, and when
 printed to be committed to the Committee on Finance
 

AN ACT to amend the state finance law, in relation to prohibiting  poli
 tical  contributions  by  businesses  that  have  been  awarded  state
 contracts
 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
 148 to read as follows:

 

S 148. POLITICAL CONTRIBUTIONS PROHIBITED.   ANY CORPORATION,  LIMITED
 LIABILITY  COMPANY, PARTNERSHIP, LIMITED PARTNERSHIP, OR ANY OTHER BUSI
 NESS ENTITY THAT HAS BEEN AWARDED A CONTRACT OR RENEWAL OF A CONTRACT BY
 THE STATE, OR ANY  DEPARTMENT,  AGENCY  OR  OFFICIAL  THEREOF  SHALL  BE
 PROHIBITED  FROM  MAKING  ANY  POLITICAL EXPENDITURE, EITHER DIRECTLY OR
 INDIRECTLY, IN SUPPORT OF ANY ASSOCIATION ORGANIZED  OR  MAINTAINED  FOR
 POLITICAL  PURPOSES,  OR  FOR  OR  IN AID OF ANY CANDIDATE FOR POLITICAL
 OFFICE OR FOR THE NOMINATION FOR  SUCH  OFFICE,  OR  FOR  ANY  POLITICAL
 PURPOSE  WHATSOEVER,  OR FOR THE REIMBURSEMENT OR INDEMNIFICATION OF ANY
 PERSON FOR MONEYS OR PROPERTY SO USED. THE PROHIBITION SET FORTH IN THIS
 SECTION SHALL BE EFFECTIVE FOR THE PERIOD BEGINNING  ON  THE  DATE  SUCH
 CONTRACT  IS  AWARDED  OR RENEWED TO SUCH BUSINESS ENTITY UNTIL ONE YEAR
 FOLLOWING THE DATE SUCH CONTRACT IS COMPLETED, CANCELLED OR  TERMINATED.
 UPON ANY VIOLATION OF THIS SECTION BY SUCH BUSINESS ENTITY, SUCH AWARDED
 OR  RENEWED CONTRACT MAY BE CANCELLED OR TERMINATED BY THE STATE, OR ANY
 SUCH DEPARTMENT, AGENCY OR OFFICIAL THEREOF WITHOUT  THE  OCCURRENCE  OF
 ANY  PENALTY OR DAMAGES, PROVIDED THAT ANY MONIES OWING BY THE STATE FOR
 GOODS DELIVERED OR WORK DONE PRIOR TO SUCH CANCELLATION  OR  TERMINATION
 SHALL BE PAID.
 

S  2.  This  act shall take effect on the thirtieth day after it shall
 have become a law and shall apply to contracts awarded or renewed on  or
 after such date.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD03200-01-3

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