Governor Hugh Carey has signed legislation which further strengthens New York State’s anti-boycott legislation. A bill sponsored in the State Senate by Norman Levy (R) and in the State Assembly by Sheldon Silver (D) prohibits the letting of State contracts for construction, services or goods with a value in excess of $5,000 to contractors which are participating or have participated in an international boycott in violation of the United States Export Administration Act of 1969.
The bill also amends the State Finance Law to require that all State contracts for an amount exceeding $5,000 contain a clause in which the contractor agrees that neither he nor any substantially owned or affiliated person, firm or corporation has participated, is participating or shall participate in an international boycott in violation of the Export Administration Act.
The State Comptroller is authorized to void any contract, if subsequent to execution a contractor has been convicted of violation of the federal law. The provisions of the bill do not operate to impair any existing contract.
LAW WILL DISCOURAGE VIOLATIONS
Carey in signing the legislation stated, “The sanctions imposed by the federal law, coupled with law of our State, should be sufficient to discourage contractor violations of the Act. Although some would urge that State action in this area is unnecessarily duplicative, I believe the enactment of this bill is appropriate.”
New York State became the first state to have an anti-boycott law when Carey signed the Lisa law Aug. 8, 1975 which took effect Jan. 1, 1976.
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