BILL NUMBER: S8246
SPONSOR: MYRIE
 
TITLE OF BILL:
An act to amend the state finance law, in relation to campaign contrib-
utions by vendors
 
PURPOSE:
This bill prohibits vendors from directly or indirectly contributing to
a statewide elected official, a candidate for a statewide elected
office, or their authorized political committee, during an active
government procurement.
 
SUMMARY OF PROVISIONS:
Section 1 of this bill adds a new section to the State Finance Law,
section 139-m, to define "procuring entity," "vendor," "restricted peri-
od," "procurement contract", and "article of procurement". The bill
clarifies that the term vendor shall not include an entity designated by
the Legislature to receive grant funding for a specific program purpose.
Section 139-m prohibits vendors from contributing to a statewide elected
official, a candidate for a statewide elected office, or their author-
ized political committee, during the restricted period.
This bill also requires every procurement contract entered into between
the State or any procuring entity and a vendor, to contain a statement
subscribed and affirmed by the vendor, certifying that the vendor has
not made any contributions to, or solicited any contributions on behalf
of, any statewide elected official, any candidate to statewide elected
office, or any candidates authorized political committee, during the
restricted period and as of the date of submission of this statement.
Section 2 of this bill amends the State Finance Law section 163(9) as it
relates to determinations of responsibility of proposed contractors.
Section 3 of this bill provides an effective date.
 
JUSTIFICATION:
In New York, it is legal for a vendor to make a campaign contribution to
a Statewide elected official, or a candidate for Statewide elected
office during an active procurement. Several states and localities
prohibit or limit campaign contributions from individuals or corpo-
rations contracting with the State, commonly referred to as "pay-to-
play" restrictions. Pay-to-play restrictions are intended to strengthen
the integrity of the contracting process and preserve public trust by
preventing both the appearance of corruption and actual instances of
corruption.
When government vendors make contributions to elected officials who have
the authority to influence the award of the contract, the public's
perception is that the vendor is attempting to unduly influence the
outcome of the procurement, regardless of whether this is true, the
integrity of the contracting process is tarnished. The need to restrict
vendors from making campaign contributions during State procurements is
clear, and this bill intends to make it unlawful for a vendor to make a
contribution to any Statewide elected official, or candidate for State-
wide elected office from the time they engage in a procurement opportu-
nity until the final contract award, or for a period after the contract
award for the contract recipient.
 
LEGISLATIVE HISTORY:
2024: S.9697, passed the Senate.
 
FISCAL IMPLICATIONS:
None to the State.
 
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that procure-
ment contracts for which bid solicitations have been issued prior to the
effective date of this act shall not be subject to the provisions of
this act.

Statutes affected:
S8246: 163 state finance law, 163(9) state finance law