What's happening
This bill prohibits campaign contributions from entities seeking government contracts, grants, or licenses during certain periods, with penalties for violations.
Why it matters
Expands the definition of who is covered. The bill restricts not just direct government contractors or grant/license applicants, but also their owners, officers, directors, partners, and even relatives living in the same household, making it significantly harder to circumvent the rules through proxies.
Covers a broad range of government actions. The restrictions apply to anyone seeking contracts, grants, or licenses from state or local entities, including many different forms of business and political organizations, capturing a wide array of interactions with government.
Defines a specific “restricted period”. The ban on contributions lasts from the moment a bid or application is submitted (or even earlier, when a solicitation is posted) and continues until either a year after the contract is awarded or until the applicant is formally rejected, reducing influence throughout the most sensitive times.
Imposes meaningful penalties and refund requirements. Violators face stiff civil penalties (the greater of $10,000 or double the contribution), and candidates or committees who accept prohibited contributions must refund them, creating strong disincentives for both donors and recipients.
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Who cares
Headline styles
Limit Political Donations by Vendors
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to elections
- Referred to elections
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1932
2019-2020 Regular Sessions
IN SENATE
January 17, 2019
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 individual" 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) "Municipal 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; and
(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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01769-01-9
S. 1932 2
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 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.
2. (a) It shall be unlawful during the restricted participant contribution period for 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 a state or local entity in response to a solicitation or request for proposal for procurement, construction, reconstruction or repair, to make a contribution to any officeholder of the state or local governmental entity or entities responsible for, or responsible for choosing, directly or indirectly, the person or persons responsible for, issuing such posting, solicitation, license, request for proposal, evaluating such response, or responsible for approving or awarding the final procurement contract, license or grant, or to any candidate for an office of such governmental entity including to the authorized political committees of such officeholder or candidate.
(b) For purposes of this section the assembly and senate shall be considered to be two separate and distinct governmental entities when a posting or solicitation for procurement is issued by only one respective house.
(c) The state or local governmental entity directly responsible for issuing such posting or solicitation for procurement 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 vendor contribution period commencement date.
3. The restricted participant contribution period described in this section shall commence, with respect to a specific person, organization, group of persons, or business entity that submits a bid, quotation, application, offer or response to the state 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 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 contract grant or license with a state or local governmental entity or the date of application. The restricted participant contribution period does not apply to a person, 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.
4. The restricted participation contribution period described in this section shall end with respect to a specific person, organization, group of persons, or business entity as provided in paragraph (a) or (b) of this subdivision.
S. 1932 3
(a) If the person, organization, group of persons, or business entity is the recipient of the final contract grant or license award, the restricted vendor contribution period shall end one year after the final contract grant or license award and approval by the state or local governmental entity and, where applicable, the state comptroller.
(b) If the person, organization, group of persons, or business entity is not the recipient of the final contract, license or grant award, the restricted vendor contribution period shall end with the final contractor grant award and approval by the state or local governmental entity and, where applicable, the state comptroller, or the disapproval of the license or grant.
§ 2. Section 14-126 of the election law is amended by adding a new subdivision 8 to read as follows:
8. (a) Any person, organization, group of persons, or business entity as that term is used 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 regulate 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 - provides that it is unlawful for individuals, companies and other entities, individuals who are owners, officers or directors of such companies or other entities, or their relatives may not contribute to any elected official who has direct or indirect control over the decision to grant such grant, license or contract.
Paragraph 3 - sets out when the prohibited period begins.
Paragraph 4 - sets out when the prohibited period ends.
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 allegations and disclosures of significant donations by persons associated with companies who have received significant public contracts gives rise to public suspicion that there may be a relationship between the two occurrences, and public cynicism and distrust of the process of how public bodies make deci- sions. This bill resolves this problem by banning donations to public officials by persons seeking grants, licenses or business that will be given, either directly or by other public employees under the control of the elected official, until the application has been turned down or the business given to another party; or when the donor receives favorable action on its application for one year thereafter.
Legislative history
2017-18 - S5345 ELECTIONS
Fiscal implications
None
Effective date
Immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.