Requires state agencies who contract to disseminate advertising material to exclude material which relates to the agency's mission; defines the term "state agency".
TITLE OF BILL: An act to amend the executive law, in relation to contracts to disseminate certain advertising materials
PURPOSE: To prohibit state agencies, when entering into a contract 10 disseminate advertising materials to the public, from disseminating materials which relate, directly or indirectly, 10 the authority, mission, or subject matter of the state agency.
SUMMARY OF SPECIFIC PROVISIONS: Section 1 amends the executive law by adding a new section 33, to provide that when a state agency enters into a contract to disseminate advertising materials to the public relating to a product or service, such contract shall exclude the advertisement of products or services which relate, to the authority, mission, or subject matter of the state agency.
JUSTIFICATION: State agencies occasionally contract to permit the inclusion of advertising materials in mailings from the agency to the public. For example, the Department of Motor Vehicles permits the inclusion of advertisements for auto insurance companies in mailings relating to motor vehicle registration renewals.
The inclusion of advertising materials which closely relate to the regulatory authority of a state agency suggests the tacit endorsement of the state for the provider of a product or service. This effect is compounded when the product or service is required in order to comply with state law or regulation enforced by the agency-for example, proof of maintaining mandatory financial responsibility requirements as enforced by the Department of Motor Vehicles.
By allowing contracts to be negotiated with providers of such products or services, the stale agency unavoidably creates the perception of favoritism toward one competitor to the disadvantage of other competing providers.
LEGISLATIVE HISTORY: 2010: S.7256 - Referred to Finance / A.10322 - Passed Assembly.
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 3335 2011-2012 Regular Sessions IN SENATE February 17, 2011 ___________Introduced by Sen. LANZA -- read twice and ordered printed, and when printed to be committed to the Committee on Finance AN ACT to amend the executive law, in relation to contracts to dissem- inate certain advertising materials THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The executive law is amended by adding a new section 33 to read as follows: S 33. CONTRACTS TO DISSEMINATE ADVERTISING MATERIALS. 1. FOR THE PURPOSES OF THIS SECTION, "STATE AGENCY" SHALL MEAN ANY STATE DEPART- MENT, BOARD, BUREAU, DIVISION, COMMISSION, COMMITTEE, PUBLIC AUTHORITY, PUBLIC BENEFIT CORPORATION, COUNCIL, OFFICE, OR OTHER GOVERNMENTAL ENTI- TY PERFORMING A GOVERNMENTAL OR PROPRIETARY FUNCTION FOR THE STATE. 2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, WHEN A STATE AGENCY ENTERS INTO A CONTRACT DIRECTLY OR THROUGH A THIRD PARTY TO DISSEMINATE, THROUGH MAILINGS OR OTHERWISE, ADVERTISING MATERIALS TO THE PUBLIC RELATING TO A PRODUCT OR SERVICE, SUCH CONTRACT SHALL EXCLUDE THE ADVER- TISEMENT OF PRODUCTS OR SERVICES WHICH RELATE, DIRECTLY OR INDIRECTLY, TO THE AUTHORITY, MISSION, OR SUBJECT MATTER OF THE STATE AGENCY. S 2. This act shall take effect immediately and shall apply to all contracts entered into on and after such effective date.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08251-01-1