What's happening
This bill restricts campaign contributions from individuals and entities seeking government contracts, licenses, or benefits during specified periods, with penalties for violations.
Why it matters
Significantly narrows allowable campaign contributions. from individuals, their relatives, and business entities actively seeking government contracts, licenses, real estate deals, or discretionary benefits, reducing the maximum permissible donation to just 15% of the usual legal limit during a defined “restricted participant contribution period.”
Targets not just direct applicants, but also key figures and their families. including business owners, officers, directors, partners, and household relatives—making it harder to circumvent the rules via proxies or affiliated groups.
Establishes a clear timeline for when contribution restrictions apply. , starting from the moment a bid or application is submitted (or even earlier, upon public notice of the opportunity) and extending up to one year after the contract, license, or benefit is awarded or denied, effectively covering the entire decision-making window.
Penalizes intentional violations with steep civil fines. (up to $10,000 or 200% of the contribution, whichever is greater), and mandates that improperly accepted contributions be refunded, adding strong enforcement teeth and increasing the risks for both donors and recipients connected to government business.
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Who cares
Government contractors, grant applicants and license seekers
The bill would cut their contribution limits to 15% of otherwise permitted limits for covered officeholders and candidates during restricted periods, extending one year beyond final award and approval for successful applicants.
Business owners, officers, directors and relatives
The restrictions would also reach these individuals, with intentional violations carrying civil penalties of up to the greater of $10,000 or twice the contribution.
State and local officeholders, candidates and political committees
Contributions they receive from covered participants would face lower limits, and anyone accepting a noncompliant contribution on their behalf would have to refund it.
State and local procurement agencies
Agencies issuing solicitations and evaluating responses would have to provide notices of the restrictions and, for procurement respondents, the restricted period’s start date.
Headline styles
Limit Political Donations During Deals
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 61
No co-sponsors yet.
History
- Referred to election law
- Delivered to assembly
- Passed senateVote 60–2
- Ordered to third reading cal.1131
- Committee discharged and committed to rules
- Referred to elections
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8409
IN SENATE
May 4, 2018
Introduced by Sen. RANZENHOFER -- read twice and ordered printed, and when printed to be committed to the Committee on Elections
AN ACT to amend the election law, in relation to restricted government participant contribution periods
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The election law is amended by adding a new section 14-131 to read as follows:
§ 14-131. Government participant contributions. 1. For the purposes of this section the following terms shall have the following meanings:
(a) "Relative of any person" shall mean any person living in the same household as the individual and any person who is a direct descendant of the grandparents of such individual or of the grandparents of such individual's spouse or the spouse of such descendants;
(b) "Licensing" shall mean any activity respecting the grant, denial, renewal, revocation, enforcement, suspension, annulment, withdrawal, recall, cancellation or amendment of a license, permit or other form of permission conferring the right or privilege to engage in (i) a profession, trade, or occupation, or (ii) any business or activity regulated by a regulatory agency of a city agency that in the absence of such license, permit or other form of permission would be prohibited;
(c) "Local governmental agency" shall mean: (i) any department, board, bureau, commission, division, office, council, committee or officer of a municipality, whether permanent or temporary, or (ii) an industrial development agency or local public benefit corporation as that term is defined in section sixty-six of the general construction law;
(d) "Business entity" shall mean a business corporation, professional services corporation, limited liability company, partnership, limited partnership, business trust, association or any other legal commercial entity organized under the laws of this state or any other state or foreign jurisdiction, including any subsidiary directly or indirectly controlled by the business entity, and any political organization, including but not limited to any political organization organized under section five hundred twenty-seven of the internal revenue code, that is
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15218-04-8
S. 8409 2
directly or indirectly controlled by the business entity, and any owner, officer, director or partner of such business entity, or a relative of such person; and
(e) "State governmental entity" shall mean any public authority, public benefit corporation, or not-for-profit corporation, the majority of whose board members are officials of the state or are appointed by such officials.
2. The "restricted participant contribution period" as used in this section shall:
(a) commence, with respect to a specific person, relative of any person, organization, group of persons, or business entity that (i) submits a bid, quotation, application, offer, or response to the state, state governmental entity, or local governmental entity posting or solicitation, at the earliest of the date of application or bid, or the date of posting on a state's, state governmental entity's, or local governmental entity's website, in a newspaper of general circulation or in the procurement opportunities newsletter in accordance with article four-C of the economic development law of written notice, advertisement or solicitation of a request for proposal, invitation for bids, or solicitations of proposals, or any other method provided for by law or regulation for soliciting a response from offerors intending to result in a procurement construction, reconstruction, or repair contract grant or license with a state or local governmental entity or the date of application, (ii) submits or receives a bid for any acquisition or disposition of real property (other than a public auction or competitive sealed bid transaction) with the state, a state governmental entity, or local governmental entity, or (iii) submits an application for or receives the approval or of a benefit given or awarded at the discretion of the state, a state governmental entity, or local governmental entity.
The restricted participant contribution period does not apply to a person, relative of any individual, organization, group of persons or business entity that is responding to a state governmental entity's request for information or other informational exchanges occurring prior to such governmental entity's posting or solicitation for participation; and
(b) end with respect to a specific person, relative of any person, organization, group of persons, or business entity;
(i) if the person, relative, organization, group of persons, or business entity is the recipient of the final contract grant or license award, the restricted participant contribution period shall end one year after the final contract grant or license award and approval by the state, state governmental entity, local governmental entity and, where applicable, the state comptroller;
(ii) if the person, relative, organization, group of persons, or business entity is not the recipient of the final contract, license or grant award, the restricted participant contribution period shall end with the final contractor grant award and approval by the state, state governmental entity, local governmental entity and, where applicable, the state comptroller, or the disapproval of the license or grant;
(iii) if the person, relative, organization, group of persons, or business entity is the recipient or seller of the real property, the restricted participant contribution period shall end one year after the real estate closing transaction is completed; or
(iv) if the person, relative, organization, group of persons, or business entity submits an application for or receives a benefit given or awarded at the discretion of the state, a state governmental entity, or
S. 8409 3
local governmental entity, the restricted participant contribution period shall end one year after the benefit or approval is given or awarded.
3. During the restricted participant contribution period, the contribution limits set forth in article fourteen of this chapter for any person, relative of any person, organization, group of persons or business entity or any owner, director or officer, or their relative, of such business entity that submits an application for any grant or license, or a bid, quotation, offer, response or application to the state, state governmental entity, or local entity in response to a solicitation or request for proposal for procurement, construction, reconstruction or repair, submits or receives a bid to acquire or dispose of real property with such governmental entity, or seeks an award, benefit or approval from a governmental entity, shall be reduced to fifteen percent of the contribution limits otherwise permitted pursuant to section 14-114 of this article to the officeholder of the state or local governmental entity or entities responsible for choosing directly, the person or persons responsible for, issuing such posting, solicitation, license, request for proposal, evaluating such response, or the entity directly responsible for approving or awarding the final contract, license, grant, real property transaction, or approval, award or benefit, or to any candidate for an office of such governmental entity including to the authorized political committees of such office holder or candidate.
4. The state, state governmental entity, or local governmental entity directly responsible for issuing such posting or solicitation shall include a notice of the prohibition established by this section and the state governmental entity responsible for evaluating responses to such posting or solicitation shall provide, to any person, organization, group of persons, or business entity that submits a proposal in response to such posting or solicitation for procurement, a notice of the prohibition established by this section and the restricted participant contribution period commencement date.
5. For purposes of this section, the assembly and senate shall be separate and distinct governmental entities when a particular posting or solicitation for procurement is issued by only one respective house.
§ 2. Section 14-126 of the election law is amended by adding a new subdivision 8 to read as follows:
8. (a) Any person, relative of any person, organization, group of persons, or business entity as such terms are used and defined in section 14-131 of this article, who, under circumstances evincing an intent to violate such law, makes a contribution in contravention of section 14-131 of this article shall be subject to a civil penalty not to exceed the greater of ten thousand dollars or an amount equal to two hundred percent of the contribution, to be recoverable in a special proceeding or civil action to be brought by the state board of elections chief enforcement counsel.
(b) Any person who, acting as or on behalf of an officeholder, candidate, or political committee, accepts a contribution in contravention of section 14-131 of this article shall be required to refund such contribution.
§ 3. This act shall take effect on the one hundred eightieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the election law, in relation to restricted government participant contribution periods
Purpose
To limit political donations from parties applying for grants or licenses or doing business with public entities to the public officials or candidates who would approve such grants, licenses or. contracts .
Summary of provisions
Section 1 - adds a new section 14-131 to the Election Law. Paragraph 1 contains definitions. Paragraph 2 sets forth the restricted participant contribution period. Paragraph 3 provides that during the restricted participation contribution period, contribution from defined individ- uals, companies and other entities, to elected officials who have direct or indirect control over the decision to grant such grant, license or contract shall be limited to fifteen percent of the contribution limit that would otherwise apply. Paragraph 4. requires certain notices by governmental entities issuing solicitations shall include a notification of the donation limitation.
Section 2 - sets forth the penalties for violation of this law.
Section 3 - effective date.
Existing law
The Election Law currently contains various limitations on political donations.
Justification
Donations made to elected officials who will make the decision whether to make a grant, issue a license, or choose who will receive a contract, or who chooses the people who make such decisions is ripe for the appearance of impropriety. Unfortunately, disclosures of significant donations by persons, and persons associated with companies, who have received significant public contracts or licenses gives rise to public suspicion that there may be a relationship between the two occurrences, and thus to public cynicism and distrust of the process of how public bodies make decisions. This bill resolves this problem by limiting donations to public officials by persons seeking grants, licenses or business that will be given, either directly or by other public employ- ees under the control of the elected official, until the application has been turned down or the business given to another party; or, when the person receives favorable action on their application, for one year thereafter, for one year after a real estate closing involving the state or a local governmental entity as a party to the transaction, or one year after such party has been granted a benefit or an award at by the state or local governmental entity's discretion.
Legislative history
New bill.
Fiscal implications
None
Effective date
180 days after it shall become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.