S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2628

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            January 17, 2013
                               ___________

Introduced by M. of A. KAVANAGH -- read once and referred to the Commit-
  tee on Governmental Operations

AN  ACT to amend the executive law, in relation to prohibiting the state
  from entering into contracts with  companies  requiring  employees  to
  stipulate to binding arbitration for all disputes

  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  170-c
to read as follows:
  S  170-C. PROHIBITING THE STATE AND CERTAIN STATE ENTITIES FROM ENTER-
ING INTO CONTRACTS WITH CERTAIN COMPANIES REQUIRING EMPLOYEES TO  STIPU-
LATE  TO  BINDING  ARBITRATION AGREEMENTS. 1. NOTWITHSTANDING ANY INCON-
SISTENT PROVISIONS OF ANY GENERAL OR SPECIAL LAW OR RESOLUTION,  NEITHER
THE  STATE  NOR ANY STATE AGENCY INCLUDING: (I) ANY STATE DEPARTMENT, OR
(II) ANY DIVISION, BOARD, COMMISSION, OR BUREAU OF ANY STATE DEPARTMENT,
OR (III) THE STATE UNIVERSITY OF NEW YORK AND THE CITY UNIVERSITY OF NEW
YORK, INCLUDING ALL THEIR CONSTITUENT UNITS, EXCEPT  COMMUNITY  COLLEGES
AND  THE  INDEPENDENT  INSTITUTIONS  OPERATING  STATUTORY    OR CONTRACT
COLLEGES ON BEHALF OF THE STATE, OR (IV) A BOARD, A  MAJORITY  OF  WHOSE
MEMBERS  ARE  APPOINTED  BY THE GOVERNOR OR WHO SERVE BY VIRTUE OF BEING
STATE OFFICERS OR EMPLOYEES AS DEFINED  IN  SUBPARAGRAPH  (I),  (II)  OR
(III)  OF  PARAGRAPH (I)  OF SUBDIVISION ONE OF SECTION SEVENTY-THREE OF
THE  PUBLIC  OFFICERS  LAW,  (V)  ANY  PUBLIC  AUTHORITY,   OTHER   THAN
MULTI-STATE AUTHORITIES, PUBLIC BENEFIT CORPORATIONS, AND COMMISSIONS AT
LEAST  ONE OF WHOSE MEMBERS IS APPOINTED BY THE GOVERNOR, NOR THE LEGIS-
LATIVE AND JUDICIAL BRANCHES OF GOVERNMENT, NOR ANY FUND OF ANY  OF  THE
FOREGOING,  NOR  ANY  OFFICER OF ANY OF THE FOREGOING, SHALL CONTRACT OR
RENEW A CONTRACT FOR THE SUPPLY OF GOODS, SERVICES, OR CONSTRUCTION WITH
ANY OVERSEAS CONTRACTOR WHO DOES NOT AGREE TO STIPULATE TO THE FOLLOWING
AS A MATERIAL CONDITION OF THE CONTRACT: THE CONTRACTOR, ANY  SUBSIDIARY
OF A CONTRACTOR, ANY FRANCHISER OF THE CONTRACTOR, AND ANY SUBCONTRACTOR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03065-01-3
              

A. 2628                             2

TO  BE  EMPLOYED  BY  THE  CONTRACTOR  SHALL  NOT  UTILIZE AN EMPLOYMENT
CONTRACT CONTAINING CLAUSES WHICH  REQUIRE  EMPLOYEES  TO  STIPULATE  TO
BINDING  ARBITRATION AGREEMENTS FOR ALL DISPUTES UNLESS DISPUTES INVOLV-
ING SEXUAL ASSAULT OR OTHER ASSAULT ARE EXCLUDED.
  2.  ANY  CONTRACTOR, ANY SUBSIDIARY OF A CONTRACTOR, FRANCHISER OF THE
CONTRACTOR, AND ANY SUBCONTRACTOR TO BE EMPLOYED BY THE CONTRACTOR SHALL
CERTIFY THAT IT IS IN COMPLIANCE WITH THE REQUIREMENTS OF THIS  SECTION.
SUCH  CERTIFICATION SHALL BE FILED WITH THE STATE GOVERNMENTAL CONTRACT-
ING PARTY AND MADE A PART OF ITS CONTRACT FILE.
  3. UPON RECEIVING INFORMATION THAT A CONTRACTOR WHO HAS MADE THE STIP-
ULATION AND   CERTIFICATION REQUIRED BY THIS  SECTION  IS  IN  VIOLATION
THEREOF,  THE  STATE  GOVERNMENTAL  CONTRACTING  PARTY SHALL REVIEW SUCH
INFORMATION AND OFFER THE CONTRACTOR AN OPPORTUNITY TO RESPOND.  IF  THE
STATE   GOVERNMENTAL  CONTRACTING  PARTY  FINDS  THAT  A  VIOLATION  HAS
OCCURRED, IT SHALL TAKE SUCH ACTION AS MAY BE APPROPRIATE  AND  PROVIDED
FOR  BY LAW, RULE OR REGULATION, OR CONTRACT, INCLUDING, BUT NOT LIMITED
TO, IMPOSING SANCTIONS, SEEKING COMPLIANCE, RECOVERING DAMAGES,  DECLAR-
ING  THE  CONTRACTOR  IN DEFAULT, AND SEEKING DEBARMENT OR SUSPENSION OF
THE CONTRACTOR.
  S 2. If any provision of this act or the application thereof  is  held
invalid,  the remainder of this act and the application thereof to other
persons or circumstances shall not be affected by such holding and shall
remain in full force and effect.
  S 3. This act shall take effect immediately.