Prohibits political contributions by businesses that have been awarded state contracts.
BILL NUMBER: S7478
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.
EXISTING LAW : New bill.
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 floodgates 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 : New bill.
FISCAL IMPLICATIONS : None to the state.
LOCAL FISCAL IMPLICATIONS : None.
EFFECTIVE DATE : This bill is effective on the 30th day after becoming law.
STATE OF NEW YORK ________________________________________________________________________ 7478 IN SENATE April 14, 2010 ___________Introduced by Sens. ADDABBO, SQUADRON -- 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. LBD16776-03-0