What's happening
This bill prohibits New York State contracts and public pension investments with companies that boycott Israel.
Why it matters
Broad Definition of "Boycott Israel". The bill defines boycotting Israel to include actions that penalize, inflict economic harm on, or limit commercial relations with Israel, its companies, or companies in territories it controls. This broad scope means businesses could be affected even if their actions are targeted at disputed territories, not just Israel proper.
Creation of a Public "Blacklist". New York will create and regularly update a public list of companies deemed to be participating in boycotts of Israel. Companies placed on this list will receive notice and a chance to challenge their inclusion, but being named could harm reputations and business prospects well beyond state contracts.
State Agency and Pension Fund Impacts. All New York state agencies will be barred from contracting with listed companies, and state pension funds must divest from those companies. This could limit the pool of vendors and investment options available to the state, potentially affecting costs or returns.
Potential Legal and Free Speech Concerns. By targeting companies for their political or ethical positions on Israel, the bill could raise First Amendment questions and expose the state to legal challenges, as well as complicate relationships with advocacy groups and international partners.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
State contractors and subcontractors
Entities listed as boycotting Israel would face exclusion from state procurement, with limited exceptions for bidders, and contractors would have to certify they are not listed and avoid listed subcontractors.
Office of General Services and state purchasing agencies
The bill would require a public boycott list, regular updates and notice procedures, while purchasing agencies would enforce certification requirements and address violations.
State comptroller and public pension fund managers
The bill would prohibit covered investments in companies and financial institutions boycotting Israel and require divestment of prohibited holdings within three years.
Companies boycotting Israel or businesses in Israeli-controlled territories
Their boycott activities could trigger contracting and investment restrictions, though actions necessary to comply with applicable law in their home jurisdiction would be excluded.
Headline styles
Stop State Deals With Israel Boycotters
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 7
2 Co-sponsors
History
- Referred to finance
- Referred to finance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Bar State Deals With Israel Boycotters
In Assembly Committee · Governmental Operations · Sponsor Charles Lavine
Full text
4 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2430
2019-2020 Regular Sessions
IN SENATE
January 24, 2019
Introduced by Sen. KAPLAN -- 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 purchasing restrictions on persons boycotting Israel; and to amend the retirement and social security law, in relation to the investment of certain public funds in companies boycotting Israel
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The state finance law is amended by adding a new section 165-b to read as follows:
§ 165-b. Purchasing restrictions; persons boycotting Israel. 1. As used in this section, the following definitions shall apply:
(a) "Boycott Israel" or "boycott activities" means engaging in actions that are intended to penalize, inflict economic harm on, or otherwise limit commercial relations with the State of Israel or companies based in the State of Israel or in territories controlled by the State of Israel.
(b) "Boycott Israel" or "boycott activities" do not include actions necessary to comply with applicable law in the business's home jurisdiction.
(c) "Person" means:
(i) A corporation, company, limited liability company, business, business association, partnership, society, trust, or any other nongovernmental entity, organization, or group.
(ii) Any successor, subunit, parent entity, or subsidiary of, or any entity under common ownership or control with, any entity described in subparagraph (i) of this paragraph.
2. (a) A person that is identified on a list created pursuant to paragraph (b) of this subdivision as a person that boycotts Israel as described in subdivision one of this section, shall not be deemed a
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08520-01-9
S. 2430 2
responsive bidder or offerer pursuant to section one hundred sixty-three of this article.
(b) (i) Not later than one hundred twenty days after the effective date of this section, the commissioner shall develop or contract to develop, using credible information available to the public, including but not limited to information provided by non-profit organizations, research firms, international organizations and government entities, a list of persons it determines boycott Israel as described in subdivision one of this section. If the commissioner has contracted to develop the list, the list shall be finally developed not later than one hundred twenty days after this section shall take effect. Such list, when completed, shall be posted on the website of the office of general services. A statement by a person or representative of a person with apparent authority to make such a statement, that it is participating in a boycott of Israel, or that it has initiated a boycott in response to a request for a boycott of Israel, shall be considered as evidence that a company is participating in a boycott of Israel.
(ii) The commissioner shall update the list every one hundred eighty days.
(iii) Before finalizing an initial list pursuant to subparagraph (i) of this paragraph or an updated list pursuant to subparagraph (ii) of this paragraph, the commissioner shall do all of the following:
(1) Provide ninety days' written notice of the commissioner's intent to include the person on the list. The notice shall inform the person that inclusion on the list would make the person a non-responsive bidder or offerer. The notice shall specify the boycott activities as described in subdivision one of this section, and provide that such person may apply to the commissioner, or to a supreme court, to be removed from such list pursuant to the requirements of this paragraph, if it ceases such activities.
(2) In the event a person included by the commissioner on the list to be developed and published in accordance with this paragraph, demonstrates to the commissioner or to a supreme court that such person is not engaged in such boycott activities as described in subdivision one of this section, or has ceased such boycotting activities, the commissioner shall remove such person from the list developed and published in accordance with this paragraph.
(3) The commissioner shall make a good faith effort to avoid including a person on the list who is not engaged in boycotting the state of Israel.
(c) Notwithstanding paragraphs (a) and (b) of this subdivision, a state agency may permit a person boycotting Israel as described by subdivision one of this section to be deemed a responsive bidder or offerer, on a case-by-case basis with a state agency if:
(i) The boycott activities were made before the effective date of this section, such activities have not been expanded or renewed after the effective date of this section, and the person has adopted, publicized, and is implementing a plan to cease such activities and to refrain from engaging in any new boycott activities; or
(ii) The state agency makes a determination that the commodities or services are necessary for the state agency to perform its functions and that, absent such an exemption, the state agency would be unable to obtain the commodities or services for which the contract is offered. Such determination shall be entered into the procurement record.
3. (a) A state agency shall require a person that submits a bid or offer in response to a notice of procurement, or that proposes to renew
S. 2430 3
an existing procurement contract with a state agency or proposes to assume the responsibility of a contractor pursuant to a procurement contract with a state agency or otherwise proposes to enter into a contract with a state agency with respect to a contract for commodities, services, construction, or contracts entered pursuant to section eight of the public buildings law or section thirty-eight of the highway law, to certify, at the time the bid is submitted or the contract is renewed or assigned, that the person or the assignee is not identified on a list created pursuant to paragraph (b) of subdivision two of this section. A state agency shall include certification information in the procurement record.
(b) A person that submits a bid or offer in response to a notice of procurement or that proposes to renew an existing procurement contract with a state agency or proposes to assume the responsibility of a contractor pursuant to a procurement contract with a state agency, or otherwise proposes to enter into a contract with a state agency with respect to a contract for commodities, services, construction, or contracts entered pursuant to section eight of the public buildings law or section thirty-eight of the highway law shall not utilize, on the contract with the state agency, any subcontractor that is identified on a list created pursuant to paragraph (b) of subdivision two of this section.
4. Upon receiving information that a person who has made the certification required by subdivision three of this section is in violation thereof, the state agency shall review such information and offer the person an opportunity to respond. If the person fails to demonstrate that it has ceased its boycott activities which are in violation of this act within ninety days after the determination of such violation, then the state agency shall take such action as may be appropriate and provided for by law, rule or contract, including, but not limited to, imposing sanctions, seeking compliance, recovering damages or declaring the contractor in default.
5. The commissioner shall report to the governor, comptroller, the temporary president of the senate and the speaker of the assembly annually on or before October first, on the status of this section and any rules or regulations adopted thereunder.
§ 2. The retirement and social security law is amended by adding a new section 423-d to read as follows:
§ 423-d. Investment of certain public funds in companies boycotting Israel. 1. For purposes of this section:
(a) "boycott Israel" means engaging in actions that are intended to penalize, inflict economic harm on, or otherwise limit commercial relations with the State of Israel or companies based in the State of Israel or in territories controlled by the State of Israel.
(b) "Boycott Israel" does not include actions necessary to comply with applicable law in the business's home jurisdiction.
2. On and after the effective date of this section, no moneys or assets of the common retirement fund shall be invested in the stocks, securities or other obligations of any institution or company boycotting Israel. Notwithstanding any provision of law to the contrary, no assets of any pension or annuity fund under the jurisdiction of the comptroller, shall be invested in any bank or financial institution which directly or through a subsidiary boycotts Israel and no such assets shall be invested in the stocks, securities or other obligations of any company which directly or through a subsidiary boycotts Israel.
S. 2430 4
3. The comptroller shall take appropriate action to sell, redeem, divest or withdraw any investment held in violation of the provisions of this section. This section shall not be construed to require the premature or otherwise imprudent sale, redemption, divestment or withdrawal of an investment, but such sale, redemption, divestment or withdrawal shall be completed no later than three years following the effective date of this section.
4. Within sixty days after the effective date of this section, the comptroller shall issue a report to the governor, the comptroller, the temporary president of the senate, and the speaker of the assembly and file with the legislature a report of all investments held as of the effective date of this section which are in violation of the provisions of this section. Every year thereafter, the comptroller shall report on all investments sold, redeemed, divested or withdrawn in compliance with this section. Each report after the initial report shall provide a description of the progress which the comptroller has made since the previous report and since the effective date of this section.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the state finance law, in relation to purchasing restrictions on persons boycotting Israel; and to amend the retirement and social security law, in relation to the investment of certain public funds in companies boycotting Israel
Purpose
To prohibit New York State from contracting with corporations that are boycotting Israel.
Summary of provisions
Section 1 amends the state finance law to include a new section 165-b that defines boycott Israel, boycott activities, and persons.
Sub-section 2: Outlines the process the commissioner will utilize in creating a list of persons not deemed to be a responsive bidder or offerer.
Sub-section 3: A state agency shall require persons submitting a bid or offer in response to a notice of procurement, at the time the bid is submitted or the contract is renewed or assigned, if the person is not identified on a list a state agency shall include certification informa- tion in the procurement record.
Sub-section 4: Provides the actions a state agency will take, as may be appropriate and provided by law, rule or contract, including but not limited to imposing sanctions, seeking compliance, recovering damages or declaring the contractor in default.
Sub-section 5: Requires the Commissioner to report the list to the Governor and the Legislature annually on or before October 1.
Section 2 amends the retirement and social security law to add a new section 423-d in relation to the investment of public funds in companies deemed to be a non-responsive bidder and offerer.
Section 3: Effective date.
Justification
Boycott Divest and Sanction, (BDS) is an orchestrated movement designed to weaken and delegitimize Israel through economic isolation, which will cause great harm to one of our nation's strongest allies. Israel, being the 4th largest recipient of New York State's exports (at $6.4 million), has proven both a strategic and economic ally. It undermines our national security to assist Israel's enemies.
South Carolina was the first state to enact legislation to counter the BDS strategy followed by Illinois, Florida, Arizona and California. 18 other states have proposed similar legislation. Passing this legislation is an important way for New York to show support to our ally.
Legislative history
A. 3239 of 2018/2019; Referred to Governmental Operations
Fiscal implications
To be Determined.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.