What's happening
This bill prohibits businesses bidding for state contracts from making campaign contributions to relevant officeholders or candidates during the procurement process.
Why it matters
Reduces the risk of “pay-to-play” politics. by blocking companies seeking government contracts from giving political contributions to officials or candidates with influence over those contracts, potentially making the procurement process fairer and less susceptible to corruption.
Casts a wide net over restricted entities. , applying not only to the bidding business but also to subsidiaries and associated political organizations (such as those under IRS Section 527), closing common loopholes used to circumvent contribution bans.
Defines clear timelines for when the contribution ban applies. , starting from the moment a company registers to lobby or submits a bid, and continuing until six months after the contract is awarded (for winners) or immediately after the contract is awarded (for non-winners), ensuring the restriction covers all critical decision periods.
Enforces compliance through significant penalties. (up to $10,000 or 200% of the illegal contribution) and mandates refunds of improper contributions, adding meaningful consequences to deter violations and incentivize both vendors and politicians to follow the law.
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Who cares
Headline styles
Ban Vendor Political Donations
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to elections
- Returned to senate
- Died in assembly
- Referred to election law
- Delivered to assembly
- Passed senateVote 60–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.165
- Referred to elections
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.
Ban Vendor Political Donations
In Assembly Committee · Election Law · Sponsor David Buchwald
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3167
2019-2020 Regular Sessions
IN SENATE
February 4, 2019
Introduced by Sen. MYRIE -- 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 government vendor contributions
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 vendor contributions. 1. (a) It shall be unlawful during the restricted vendor contribution period for any person, organization, group of persons, or business entity that submits a bid, quotation, offer or response to a state governmental entity posting or solicitation for procurement to make a contribution to any officeholder of or with authority over the state governmental entity or entities responsible for issuing such procurement posting or solicitation, evaluating responses to the procurement posting or solicitation for purposes of determining an award, or approving the selection of an awardee, or awarding the final contract, or to any candidate for an office of such governmental entity, including to such officeholder's or candidate's authorized political committees or political committees the officeholder or candidate exerts operational control over. It shall further be unlawful, pursuant to section 14-120 of this article, to make contributions to political committees not authorized or operationally controlled by the officeholder or candidate for the purpose of transferring a contribution to the officeholder's or candidate's authorized political committees or political committees they exert operational control over.
(b) 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.
(c) The state governmental entity directly responsible for issuing such posting or solicitation for procurement shall include a notice of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00939-01-9
S. 3167 2
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 a notice of the prohibition established by this section and the restricted vendor contribution period commencement date.
2. As used in this section "business entity" means 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 527 of the Internal Revenue Code, that is directly or indirectly controlled by the business entity.
3. The restricted vendor contribution period described in this section shall commence, with respect to a specific person, organization, group of persons, or business entity when it files a statement of registration pursuant to section one-e of the legislative law, or engages lobbying, as defined by subdivision (c) of section one-c of the legislative law, to generate a procurement opportunity or pilot program or submits a bid, quotation, offer or response to the state governmental entity posting or solicitation, at the earliest posting, on a state 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 offerers intending to result in a procurement contract with a state governmental entity. The restricted vendor 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 procurement provided it has not filed a statement of registration pursuant to section one-e of the legislative law or engaged in lobbying, as defined by subdivision (c) of section one-c of the legislative law, to generate a procurement opportunity or pilot program.
4. The restricted vendor contribution period described in this section shall end with respect to a specific person, organization, group of persons, or business entity if:
(a) the person, organization, group of persons, or business entity is the recipient of the final contract award, the restricted vendor contribution period shall end six months after the final contract award and approval by the state governmental entity and, where applicable, the state comptroller and if the person, organization, group of persons or business entity does not lobby on the execution of the contract after its award; or
(b) the person, organization, group of persons, or business entity is not the recipient of the final contract award, the restricted vendor contribution period shall end with the final contract award and approval by the state governmental entity and, where applicable, the state comptroller.
5. The restricted vendor contribution period shall recommence if a person, organization, group of persons or business entity engages in activity pursuant to subdivision three of this section.
S. 3167 3
§ 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 or receives a transfer 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 government vendor contributions
Purpose
This bill would reduce the appearance of or actual improper influence of the state contracting process and increase its fairness by banning camp- ing contributions from a company seeking state contracts to officehold- ers with authority over procuring entities during a "restricted vendor contribution period." Prospective vendors would be barred from making contributions when responding to a request for proposals (RFPs) for six months after winning a contract, or when lobbying to create a procure- ment opportunity.
Summary of provisions
Section 1 of the bill creates a new section 131 of Article 14 of the Election Law.
Read the full memo (876 words)
Subsection 1 (a) prohibits vendor contributions, indirectly or directly, to political committees operationally controlled by officeholders with authority over state governmental entities responsible for issuing a procurement solicitation, evaluating responses, or determining or award- ing a final contract.
Subsection 1 (b) distinguishes between the senate and assembly when a solicitation for procurement is issued by the legislature.
Subsection 1 (c) requires the state government entity issuing a procure- ment solicitation to include a notice of the prohibition on campaign contributions by vendors submitting a proposal in response to the solic- itation.
Subsection 2 defines the term "business entity" broadly including affil- iated subsidiaries and political organizations directly or indirectly controlled by the business entity.
Subsection 3 defines the "restricted vendor contribution period" during which a business entity may not make contributions to the committees operationally controlled by officeholders with authority over state governmental entities issuing a procurement solicitation.
Subsection 4 indicates when the restricted vendor contribution period begins and ends. The restricted vendor contribution period covers the period from the issuance of a bid until 6 months after a contract has been awarded (except the post award 6-month restricted period does not apply to losing bidders) and, for vendors registering as lobbyists to create a procurement opportunity, additionally includes the period before a bid is issued during which the vendor is registered to lobby to create a procurement opportunity or pilot program.
Section 2 of the bill amends sections 14-126 of Election Law by adding a new subdivision 7.
Subdivision 7 (a) provides that any business entity intentionally violating the law is subject to a penalty of up to $10,000 or 200 percent of the amount of the contribution, to be recoverable in a special proceeding brought by the board of elections chief enforcement counsel.
Subdivision 7 (b) provides that any person acting on behalf of an officeholder, candidate or political committee who receives a contrib- ution in contravention with the restricted vendor contribution prohibi- tion will be required to refund the contribution.
Section 3 establishes the effective date of the legislation which is 180 days after passage into law.
Justification
New York State government has over 50,000 contracts worth billions of dollars with companies that provide products and services across numer- ous industries. The United Nations, Transparency International and Global Witness recognize the contracting process as vulnerable to improper influence and "bid rigging." Allegations of bid rigging of contacts in New York have led to indictments and trials of company exec- utives and state officials in 2018. Nineteen states and New York City have laws that restrict campaign contributions from entities seeking government contracts.
Many state contracts are bid out through Requests for Proposals (RFPs). Other contracts are the result of lobbying and engagement of government by vendors to make their products and services known to state officials, which may result in a competitive bid by the procuring entity or a contract reached with a specific vendor without a competitive bidding process. Currently, when a vendor presents its products and services to a government entity, it may also make campaign contributions to office- holders overseeing that entity. This may unfairly influence the procure- ment process or create a perception of improper influence. This legis- lation prohibits vendors from making contributions to the officeholder with authority over the bidding entity during a "restricted vendor contribution period." The "restricted vendor contribution period" varies depending on vendor's activities, but at minimum covers from when an RFP is issued to when a contract is awarded when a vendor makes a bid. The restricted period lasts six months beyond the award of the contract for the winning vendor. A vendor lobbying to create a procurement opportu- nity or on an awarded contract is also prohibited from making contrib- utions during that time The prohibition will largely impact contrib- utions to the Governor, as most bidding entities are state agencies. Contributions to legislators will only be banned if the legislature is bidding for a product or service, and are limited to vendors lobbying or bidding for a specific contract for that particular product or service.
Legislative history
2018: A.9924 (Buchwald) - Referred to Election Law / S.8039 (Croci) Referred to Elections (Similar to Governor's proposal, part ;L of A.3010 (Budget) /S.2010 (Budget) of 2017 and Part ;L of A.9510 (Budget) /S. 7510 (Budget) of 2018)
Fiscal implications for state and local governments
None
Effects on fines terms of imprisonment and other penal sanctions
None
Effective date
This act shall take effect on the 180th day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.