Today, New York State Comptroller Tom DiNapoli called on the Securities and Exchange Commission to require all businesses that donate to elected officials who control public pensions funds from doing any business with that fund for a period of two years after the donation is made.

This proposal was apparently considered by the SEC in 1999, but was never put into place.

From the release:

“Pay-to-play has absolutely no place in the management of public pension funds,” DiNapoli said. “I’ve implemented a number of effective reforms to address the problem in New York. But as we’ve seen with on-going investigations into public pension plan practices across the country, this is a national problem that needs a federal solution. The SEC can help restore public confidence in state and local government pension plans all across the nation.”

Here’s the letter.