Pay-to-Play Restrictions Come to New York State

Pay-to-play reforms take many different forms. For example, in New Jersey, the current restrictions are embodied in state statutes, gubernatorial executive orders, municipal ordinances, and State Investment Council regulations. Now, almost five years to the day after the first gubernatorial executive order limiting political contributions in relation to New Jersey State contracting opportunities, New York State Comptroller Thomas J. DiNapoli has issued an executive order to prohibit the New York State Common Retirement Fund from doing business with investment advisers who make, solicit or coordinate political contributions to the State Comptroller or a candidate for State Comptroller. The DiNapoli executive order is modeled on recent SEC proposals.

The 2004 New Jersey gubernatorial executive order spurred state legislation and a proliferation of local regulations. Will the DiNapoli order similarly give rise to additional reforms in New York?