What's happening
This bill prohibits individuals or entities applying for state permits or licenses from making campaign contributions to officials overseeing the application during a restricted period, with penalties for violations.
Why it matters
Targets “pay-to-play” risks. By banning campaign contributions from permit or license applicants to officials overseeing their applications, the bill aims to reduce the perception or reality of favoritism or corruption in government contracting and licensing decisions.
Broad definition of “applicant”. The law covers not just individuals or businesses applying for permits or licenses, but also their subsidiaries, officers, close family members, and associated political organizations—closing common loopholes used to circumvent contribution bans.
Clear, enforceable timeframes. The restricted period is well-defined, starting when lobbying or an application is initiated and ending months after a decision is made (or immediately upon denial), ensuring that both pre- and post-application influence is addressed.
Strong penalties and mandatory refunds. Violators face substantial financial penalties—up to twice the amount contributed or $10,000—and any prohibited contributions must be refunded, creating a real deterrent for both donors and recipients.
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Who cares
State permit and license applicants
The bill would bar contributions to officeholders overseeing the relevant state agencies, candidates for those offices and their controlled committees during a restricted period triggered by registration, lobbying or an application.
Business owners, officers, directors and their families
The bill’s definition of a business entity would extend the restrictions to these individuals and specified relatives, as well as controlled subsidiaries and political organizations.
Officeholders, candidates and political committees
Anyone accepting a prohibited contribution or transfer on their behalf would have to refund it.
State licensing agencies and Board of Elections enforcement staff
Agencies would have to notify applicants of the restrictions, while the chief enforcement counsel could seek civil penalties for contributions made with intent to violate the law.
Headline styles
Ban Permit Application Donations
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 39
History
- Referred to elections
- Referred to elections
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5882
2019-2020 Regular Sessions
IN SENATE
May 16, 2019
Introduced by Sen. SKOUFIS -- 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 permit or license applicant 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. Permit or license applicant contributions. 1. (a) It shall be unlawful during the restricted permit and license applicant contribution period for any person, organization, group of persons, or business entity that submits an application for any permit or license to make a contribution to any officeholder of or with authority over the state governmental entity or entities responsible for issuing such permit or license, evaluating permit or license applications for purposes of their merit, or approving permit or license applications, 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) The state governmental entity directly responsible for issuing such permit or license shall include a notice of the prohibition established by this section in application materials and the state governmental entity responsible for evaluating such applications shall provide to any person, organization, group of persons, or business entity that submits an application a notice of the prohibition established by this
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10978-03-9
S. 5882 2
section and the restricted permit and license applicant 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, 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 and any owner, officer, director or a spouse, child, parent, or sibling of an owner, officer or director of such business entity.
3. The restricted permit and license applicant 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 receive a permit or license or submits an application to the state governmental entity responsible for issuing a permit or license. The restricted permit and license applicant 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 person, organization, group of persons or business entity submitting a permit or license application 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 receive a permit or license.
4. The restricted permit and license applicant 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 applied for permit or license, the restricted permit and license applicant contribution period shall end six months after the issuance of the permit or license 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 permit or license after its issuance; or
(b) the person, organization, group of persons, or business entity's application for a permit or license is denied, the restricted permit and license applicant contribution period shall end with the issuance of notification of the denial by the state governmental entity and, where applicable, the state comptroller.
5. The restricted permit and license applicant contribution period shall recommence if a person, organization, group of persons or business entity engages in activity pursuant to subdivision three of this section and, where the application for a permit or license was denied and the same permit or license is reapplied for within five years of the denial, shall be deemed to have not ended under subdivision four of this section.
§ 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 laws, makes a contrib-
S. 5882 3
ution 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 permit or license applicant contributions
Purpose
This bill would reduce the appearance of or actual improper influence of the state permitting and licensing process and increase its fairness by banning camping contributions from a company or its owners, officers, directors, or the spouses, children, parents or siblings of an owner, officer, or director of a company during a "restricted permit and license applicant contribution period." Prospective permit and license applicants would be barred from making contributions when seeking a permit or license from a state officeholder with authority over the state govemmental entity or entities responsible for issuing the permit or license for six months after receiving a permit or license, or when lobbying to receive a permit or license.
Summary of provisions
Section 1 of the bill creates a new section 131 of Article 14 of the Election Law.
Read the full memo (611 words)
Subsection 1 (a) prohibits permit or license applicant contributions, indirectly or directly, to political committees operationally controlled by officeholders with authority over state governmental entities respon- sible for issuing a permit or license, evaluating responses, or deter- mining or awarding permits or licenses.
Subsection 1 (b) requires the state government entity issuing a permit or license to include a notice of the prohibition on campaign contrib- utions by businesses or individuals seeking a permit or license.
Subsection 2 defines the term "business entity" broadly including affil- iated subsidiaries and political organizations directly or indirectly controlled by the business entity and any owner, officer, director or a spouse, child, parent, or sibling of an owner, officer or director of such business entity.
Subsection 3 defines the "restricted permit and license applicant contribution period" during which a business entity may not make contributions to the committees operationally controlled by officehold- ers with authority over state governmental permit or license applica- tion.
Subsection 4 indicates when the restricted permit and license applicant contribution period ends.
Section 2 of the bill amends sections 14-126 of Election Law by adding a new subdivision 8.
Subdivision 8 (a) provides that any business entity intentionally violating the law is subject to a penalty of up to $10,000 or 200% of the amount of the contribution, to be recoverable in a special proceed- ing brought by the board of elections chief enforcement counsel.
Subdivision 8 (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 permit and license applicant contribution contribution prohibition 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
In March, 2019 the State Senate recognized that corruption can easily arise when vendors are allowed to contribute to the very officeholders who issue or supervise those who issue state contracts. To close the door to possible corruption, the Senate passed S3167, "An act to amend the election law, in relation to government vendor contributions."
This bill extends the restrictions of S3167 to also restrict businesses or individuals seeking permits or licenses from state government from contributing to the campaigns of officials who issue or supervise the governmental entity responsible for issuing a permit or license. Addi- tionally, it codifies that these contribution restrictions apply not just to a business, but to its owners, officers, or directors and the spouses, children, parents and siblings of those owners, officers or directors.
Legislative history
None.
Fiscal implications
None to the state.
Effective date
This act shall take effect on the one hundred eightieth 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.