NY State Senate Bill 2009-S8346

Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 24, 2010	referred to rules

2009-S8346 (ACTIVE) - Details

See Assembly Version of this Bill:: A11666
Current Committee:: Senate Rules
Law Section:: Penal Law
Laws Affected:: Amd §§10.00 & 195.20, add §§195.18 & 200.28, Pen L; amd §74, Pub Off L; amd §94, Exec L; amd §§80, 1-c, 1-e & 1-j, Leg L
Versions Introduced in 2011-2012 Legislative Session:: S887

2009-S8346 (ACTIVE) - Summary

Creates the "public corruption prevention and enforcement act of 2010"; establishes the crimes scheme to defraud the government in the first and second degrees; requires the provision of faithful public services; relates to reportable business relationships for legislative ethics purposes.

2009-S8346 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S8346

TITLE OF BILL:
An act
to amend the penal law, the
public officers law, the
executive law and the
legislative law, in
relation to the crimes of scheme to defraud the government in the
first and second degrees and
the provision of faithful public services; and
to amend the legislative law, in relation to reportable business
relationships for legislative ethics purposes

PURPOSE:
To create a duty of faithful public services for public servants, and
provide for criminal and civil penalties for violation of such duty;
to reform criminal bribery statutes to clarify legislative intent; to
reform the member item process with standards and prohibitions, and
civil and criminal penalties for violations, to add additional
disclosures to the annual statements of financial disclosure relating
to non-profits and value categories and to increase disclosure of
gifts and loans for candidates.

SUMMARY OF PROVISIONS:
Section 1 Title of act "Public Corruption Prevention and Enforcement

Act of 2010."

Section 2 Amends PL § 10.00 to define "scheme" for PL §§ 195.18 and
195.20 and "faithful public services· and "self-dealing."

Section 3 Amends PL § 195.20 to create the crime of scheme to defraud
the government in the first degree, a D felony.

Section 4 Adds new PL § 195.18, to create the crime of scheme to
defraud the government in the first degree, an E felony.

Sections 5 Adds new PL § 200.28 to create a duty to provide faithful
services for public servants,

Section 6 Amends POL § 74(1) to define "faithful public services· and
"self-dealing" for officers, and employees of a state agency, members
of the legislature and legislative employees.

Section 7 Amends POL § 74(3) to add the duty of faithful services to
the Code of Ethics.

Section 8 Amends POL § 74(4) to add a penalty for violation for scheme
to defraud and the duty of faithful public services, an E felony.

Section 9 Amends subdivision 13 of Executive Law § 94 to provide civil
penalties for violations of POL § 74(j) as added by this legislation.

Section 10 Amends subdivision 11 of Legislative Law § 80 to provide
civil penalties for violations of POL § 74(j) as added by this
legislation.

Section 11 Amends section 1-c of the Legislative Law to add
subdivision (w) to define "reportable business relationship".

Section 12 Amends subdivision (c) of section 1-e of the Legislative
Law to require lobbyists who have reportable business relationships
with a statewide elected official, state officer or employee, member
of the Legislature or legislative employee to disclose the nature of
business and the compensation.

Section 13 Amends subdivision (b) of section 1-j of the Legislative
Law to require clients of lobbyists who have reportable business
relationships with a statewide elected official, state officer or
employee, member of the Legislature or legislative employee to
disclose the nature of business and the compensation.

Section 14 provides the effective date.

JUSTIFICATION:
The recent corruption scandals in Albany and elsewhere that have
resulted in felony convictions and guilty pleas are reminders of the
urgent need for reform. The bill combines in one place measures that
are designed to prevent corrupt activity by strengthening ethics and
campaign finance disclosure requirements with measures designed to
strengthen enforcement against those who violate the public trust.
Public servants hold a public trust and they have a duty to perform
faithful services to the state or municipality and their constituents.
This bill creates a defined duty for public servants to provide
faithful services in the Penal Law and the Public Officers Law. The
duty, which applies to all levels of
government within the state, elected officials, employees and
appointees, is defined as conduct that is free of undisclosed
self-dealing and free of the unauthorized or unlawful conferral of
benefits. Under the bill, knowing and intentional violations of the
duty to provide faithful public services may be prosecuted by any
district attorney or an enforcement action may be brought by a state
commissions with ethics oversight.

The bill also expands the limited existing crime of Defrauding the
Government and creates the crimes of Scheme to Defraud the Government
in the First and Second Degrees. Currently, that law is limited to
schemes to defraud government agencies of money or property. This
bill would include corrupt schemes involving public servants and others
who seek to corrupt the operation of government.  Violation is
punishable as either a Class D or E felony, depending on the nature
of the offense.

The duty of faithful services is similar to federal law, known
as honest services fraud under 18 U.S.C. §§ 1341, 1346. Earlier
this year the Supreme Court heard arguments on combined
challenges to the law and a decision is expected soon.  Unlike the
the federal law, and to address the concerns raised in the Supreme
Court, the state duty to provide faithful services is well defined
and only applies to public servants and party officers or anybody who
acts with a public servant or party officer,

In addition, three sections of bribery involving public servants in
the Penal Law are amended to reflect the proper standard of proof and
to ensure that offers to bribe are punished as seriously as the
Legislature has intended. The Court of Appeals has interpreted an
existing bribery statute to require either a mutual agreement between
the parties of a bribe or, that the person giving the bribe believe
that public servant will be influenced, thereby effectively reading
important language out of existing law. (People v. Tran, 80 N.Y.2d
170, 176 (1992)). The bill amends bribery in the first, second and
third degrees to eliminate this anomaly and make the public bribery
statutes consistent with commercial bribery, sports bribery, and
labor bribery statutes in the Penal Law, all of which require an
intent to influence a public servant.

The bill creates new standards and prohibitions for community projects
grants, which are commonly known as "member items." The community
projects fund in the State Finance Law is renamed the Legislative
Community Projects Fund. A similar fund is added to the State Finance
Law for the executive for grants made by the governor.

Under the standards for the community project funds, grantees are
barred from receiving grant if the grantee, was barred by a
government agency in any jurisdiction within the last five years,
failed to file a tax return or to pay taxes in the last five years,
or used a third-party or agent to secure the grant. If the standards
are violated, the attorney general may recover the grant through an
action under the Executive Law § 63-c.

In addition, the bill creates prohibitions for the sponsors of grants,
members of the Legislature or the governor. Sponsors are barred from
requesting grants if the sponsor or a relative of the sponsor is a
director, officer or trustee of the grantee. Sponsors and their
relatives are barred from having a financial interest in or receiving
a benefit from a grant. The attorney general and any district
attorney have concurrent authority to investigate and prosecute the
prohibitions.

The bill also increases disclosure in both the Public Officers and the
Election Law as a prophylactic measure to reduce public corruption.
The categories of value or amounts on the annual statements of
financial disclosure filed in all three branches of state government
are disclosed to the public upon release, Current provisions in law
and rules allow this information to be redacted. A question is added

to the annual statement of financial disclosure requiring the
reporting individual to disclose relationships with non-profits.
Finally, candidates for public office and their spouse or domestic
partner are required to report gifts or loans for the twelve months
preceding a candidate designation.

LEGISLATIVE HISTORY:
None.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediately, provided that 11, 12 and 13 of this act shall take effect
on the 90th day after it shall have become a law.

2009-S8346 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8346

                            I N  S E N A T E

                              June 24, 2010
                               ___________

Introduced  by  Sen. SCHNEIDERMAN -- read twice and ordered printed, and
  when printed to be committed to the Committee on Rules

AN ACT to amend the penal law, the public officers  law,  the  executive
  law  and  the  legislative law, in relation to the crimes of scheme to
  defraud the government  in  the  first  and  second  degrees  and  the
  provision  of  faithful  public services; and to amend the legislative
  law, in relation to reportable business relationships for  legislative
  ethics purposes

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. This act shall be known and may be  cited  as  the  "public
corruption prevention and enforcement act of 2010".
  S  2.  Section  10.00  of the penal law is amended by adding three new
subdivisions 21, 22 and 23 to read as follows:
  21. FOR THE PURPOSES OF SECTIONS 195.18 AND  195.20  OF  THIS  CHAPTER
"SCHEME"  MEANS  ANY  PLAN,  PATTERN,  DEVICE, CONTRIVANCE, OR COURSE OF
ACTION, AND "INTENT TO DEFRAUD" INCLUDES AN INTENT TO DEPRIVE THE  STATE
OR A POLITICAL SUBDIVISION OF THE STATE OR A GOVERNMENTAL INSTRUMENTALI-
TY OF FAITHFUL PUBLIC SERVICES.
  22.  "FAITHFUL  PUBLIC  SERVICES" MEANS CONDUCT THAT IS FREE OF UNDIS-
CLOSED SELF-DEALING AND FREE OF THE UNAUTHORIZED OR  UNLAWFUL  CONFERRAL
OR  INTENDED CONFERRAL OF A BENEFIT, DIRECTLY OR INDIRECTLY, ON A PUBLIC
SERVANT.
  23. "SELF-DEALING" MEANS ANY ACTION TAKEN BY A PUBLIC SERVANT  IN  HIS
OR  HER  OFFICIAL  CAPACITY  WITH  INTENT TO BENEFIT HIMSELF OR HERSELF,
DIRECTLY OR INDIRECTLY, AND WHICH RELATES TO HIS OR HER PRIVATE BUSINESS
INTERESTS.
  S 3. Section 195.20 of the penal law, as amended by chapter 1  of  the
laws of 2010, is amended to read as follows:
S  195.20  [Defrauding]  SCHEME  TO  DEFRAUD the government IN THE FIRST
           DEGREE.
  A person is guilty of [defrauding] A SCHEME TO DEFRAUD the  government
IN  THE  FIRST  DEGREE  when, being a public servant or party officer OR
ACTING IN CONCERT WITH A PUBLIC SERVANT OR PARTY OFFICER, he or she:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD17862-02-0

S. 8346                             2

  (a) engages in a scheme constituting a systematic  ongoing  course  of
conduct with intent to:
  (i)  defraud  the  state  or a political subdivision of the state or a
governmental instrumentality within the state; or
  (II) to obtain property, services or other resources from the state or
a political subdivision of the state or a  governmental  instrumentality
within  the  state  by false or fraudulent pretenses, representations or
promises; or
  [(ii)] (III) defraud the state or a political subdivision of the state
or a governmental instrumentality within the  state  by  making  use  of
property,  services  or resources of the state, political subdivision of
the state or a governmental instrumentality within the state for private
business purposes or other compensated non-governmental purposes; and
  (b) EITHER (I) so obtains property, services or other resources with a
value in excess of one  thousand  dollars  from  such  state,  political
subdivision  or governmental instrumentality, OR (II) CONFERS OR OBTAINS
A BENEFIT OR BENEFITS, DIRECTLY OR INDIRECTLY, WITH A COMBINED VALUE  IN
EXCESS OF ONE THOUSAND DOLLARS.
  [Defrauding] SCHEME TO DEFRAUD the government IN THE FIRST DEGREE is a
class [E] D felony.
  S  4.  The penal law is amended by adding a new section 195.18 to read
as follows:
S 195.18 SCHEME TO DEFRAUD THE GOVERNMENT IN THE SECOND DEGREE.
  A PERSON IS GUILTY OF A SCHEME TO DEFRAUD THE GOVERNMENT IN THE SECOND
DEGREE WHEN, BEING A PUBLIC  SERVANT  OR  PARTY  OFFICER  OR  ACTING  IN
CONCERT  WITH  A PUBLIC SERVANT OR PARTY OFFICER, HE OR SHE ENGAGES IN A
SCHEME CONSTITUTING A SYSTEMATIC ONGOING COURSE OF CONDUCT  WITH  INTENT
TO:
  (A)  DEFRAUD  THE  STATE  OR A POLITICAL SUBDIVISION OF THE STATE OR A
GOVERNMENTAL INSTRUMENTALITY WITHIN THE STATE; OR
  (B) OBTAIN PROPERTY, SERVICES OR OTHER RESOURCES FROM THE STATE  OR  A
POLITICAL  SUBDIVISION  OF  THE  STATE OR A GOVERNMENTAL INSTRUMENTALITY
WITHIN THE STATE BY FALSE OR FRAUDULENT  PRETENSES,  REPRESENTATIONS  OR
PROMISES; OR
  (C)  DEFRAUD  THE  STATE  OR A POLITICAL SUBDIVISION OF THE STATE OR A
GOVERNMENTAL INSTRUMENTALITY WITHIN THE STATE BY MAKING USE OF PROPERTY,
SERVICES OR RESOURCES OF THE STATE, POLITICAL SUBDIVISION OF  THE  STATE
OR  A GOVERNMENTAL INSTRUMENTALITY WITHIN THE STATE FOR PRIVATE BUSINESS
PURPOSES OR OTHER COMPENSATED NON-GOVERNMENTAL PURPOSES.
  SCHEME TO DEFRAUD THE GOVERNMENT IN THE SECOND DEGREE  IS  A  CLASS  E
FELONY.
  S  5.  The penal law is amended by adding a new section 200.28 to read
as follows:
S 200.28 DUTY TO PROVIDE FAITHFUL PUBLIC SERVICES.
  FOR PURPOSES OF THIS ARTICLE, THE DUTIES OF  A  PUBLIC  SERVANT  SHALL
INCLUDE  BUT  NOT  BE  LIMITED  TO  THE  DUTY TO PROVIDE FAITHFUL PUBLIC
SERVICES. IN EXECUTING THE DUTIES OF HIS OR  HER  OFFICE,  EVERY  PUBLIC
SERVANT  SHALL  HAVE THE DUTY TO PROVIDE FAITHFUL PUBLIC SERVICES TO HIS
OR HER CONSTITUENTS AND THE STATE OR POLITICAL SUBDIVISION  THEREOF,  AS
APPLICABLE.  IN EXECUTING THE DUTIES OF HIS OR HER OFFICE OR EMPLOYMENT,
EVERY PUBLIC SERVANT SHALL ALSO HAVE THE DUTY TO PROVIDE FAITHFUL PUBLIC
SERVICES TO A STATE OR LOCAL AGENCY OR LEGISLATURE, AS APPLICABLE.
  S 6. Subdivision 1 of section  74  of  the  public  officers  law,  as
amended  by  chapter  1012 of the laws of 1965, the opening paragraph as
amended by chapter 14 of the  laws  of  2007,  is  amended  to  read  as
follows:

S. 8346                             3

  1.  [Definition.  As  used  in  this section:] DEFINITIONS OF TERMS OF
GENERAL USE IN THIS SECTION:
  A.  The  term "state agency" shall mean any state department, or divi-
sion, board, commission, or bureau of any state department or any public
benefit corporation or public authority at least one of whose members is
appointed by  the  governor  or  corporations  closely  affiliated  with
specific  state agencies as defined by paragraph (d) of subdivision five
of section fifty-three-a of the state finance law or their successors.
  B. The term "legislative employee" shall mean any officer or  employee
of the legislature but it shall not include members of the legislature.
  C. THE TERM "FAITHFUL PUBLIC SERVICES" SHALL MEAN CONDUCT THAT IS FREE
OF  UNDISCLOSED  SELF-DEALING  AND  FREE OF THE UNAUTHORIZED OR UNLAWFUL
CONFERRAL OR INTENDED CONFERRAL OF A BENEFIT, DIRECTLY OR INDIRECTLY, ON
AN OFFICER OR EMPLOYEE OF A STATE AGENCY, MEMBER OF THE  LEGISLATURE  OR
LEGISLATIVE  EMPLOYEE.  EVERY  OFFICER  OR  EMPLOYEE  OF A STATE AGENCY,
MEMBER OF THE LEGISLATURE OR LEGISLATIVE EMPLOYEE SHALL HAVE A  DUTY  OF
FAITHFUL PUBLIC SERVICES WITH RESPECT TO HIS OR HER CONSTITUENTS AND THE
STATE OR TO A STATE AGENCY OR LEGISLATURE, AS APPLICABLE.
  D.  THE  TERM "SELF-DEALING" SHALL MEAN ANY ACTION TAKEN BY AN OFFICER
OR EMPLOYEE OF A STATE AGENCY, MEMBER OF THE LEGISLATURE OR  LEGISLATIVE
EMPLOYEE  IN HIS OR HER OFFICIAL CAPACITY WITH INTENT TO BENEFIT HIMSELF
OR HERSELF, DIRECTLY OR INDIRECTLY, AND WHICH  RELATES  TO  HIS  OR  HER
PRIVATE BUSINESS INTERESTS.
  S 7. Subdivision 3 of section 74 of the public officers law is amended
by adding a new paragraph j to read as follows:
  J.  IN  EXECUTING  THE  DUTIES  OF HIS OR HER OFFICE, EVERY OFFICER OR
EMPLOYEE OF A STATE AGENCY, MEMBER OF  THE  LEGISLATURE  OR  LEGISLATIVE
EMPLOYEE  SHALL HAVE THE DUTY TO PROVIDE FAITHFUL PUBLIC SERVICES TO HIS
OR HER CONSTITUENTS AND THE  STATE,  AS  APPLICABLE.  IN  EXECUTING  THE
DUTIES  OF HIS OR HER OFFICE OR EMPLOYMENT, EVERY OFFICER OR EMPLOYEE OF
A STATE AGENCY, MEMBER OF THE LEGISLATURE OR LEGISLATIVE EMPLOYEE  SHALL
ALSO HAVE THE DUTY TO PROVIDE FAITHFUL PUBLIC SERVICES TO A STATE AGENCY
OR THE LEGISLATURE, AS APPLICABLE.
  S  8.  Subdivision  4  of  section  74  of the public officers law, as
amended by chapter 14 of the  laws  of  2007,  is  amended  to  read  as
follows:
  4.  Violations.  In  addition  to  any  penalty contained in any other
provision of law any such officer, member or employee who shall knowing-
ly and intentionally violate any of the provisions of this  section  may
be  fined,  suspended or removed from office or employment in the manner
provided by law. Any such individual  who  knowingly  and  intentionally
violates  the  provisions of paragraph b, c, d or i of subdivision three
of this section shall be subject to a civil penalty in an amount not  to
exceed  ten  thousand dollars and the value of any gift, compensation or
benefit received as a result of such violation. Any such individual  who
knowingly and intentionally violates the provisions of paragraph a, e or
g  of  subdivision  three  of  this  section shall be subject to a civil
penalty in an amount not to exceed the value of any  gift,  compensation
or  benefit received as a result of such violation.  ANY SUCH INDIVIDUAL
WHO KNOWINGLY AND INTENTIONALLY VIOLATES THE PROVISIONS OF  PARAGRAPH  J
OF SUBDIVISION THREE OF THIS SECTION SHALL BE SUBJECT TO A CIVIL PENALTY
IN  AN  AMOUNT  NOT  TO EXCEED TEN THOUSAND DOLLARS AND THE VALUE OF ANY
GIFT, COMPENSATION OR BENEFIT RECEIVED AS A RESULT  OF  SUCH  VIOLATION.
ANY  SUCH  INDIVIDUAL  WHO,  AS PART OF OR IN FURTHERANCE OF A SCHEME OR
ARTIFICE TO DEFRAUD A  STATE  AGENCY,  THE  LEGISLATURE,  ANY  POLITICAL
SUBDIVISION,  HIS OR HER CONSTITUENTS OR THE STATE, AS APPLICABLE, KNOW-

S. 8346                             4

INGLY AND INTENTIONALLY VIOLATES THE PROVISIONS OF PARAGRAPH J OF SUBDI-
VISION THREE OF THIS SECTION SHALL, IN ADDITION TO ANY PENALTY CONTAINED
IN THIS SECTION OR ANY OTHER PROVISION OF LAW, BE GUILTY OF  A  CLASS  E
FELONY.
  S  9. Subdivision 13 of section 94 of the executive law, as amended by
chapter 14 of the laws of 2007, is amended to read as follows:
  13. An individual subject to the jurisdiction of  the  commission  who
knowingly  and intentionally violates the provisions of subdivisions two
through five, seven, eight, twelve  or  fourteen  through  seventeen  of
section  seventy-three  of  the public officers law, section one hundred
seven of the civil service law, or a reporting individual who  knowingly
and  wilfully  fails to file an annual statement of financial disclosure
or who knowingly and wilfully with  intent  to  deceive  makes  a  false
statement  or  fraudulent omission or gives information which such indi-
vidual knows to be false on such statement of financial disclosure filed
pursuant to section seventy-three-a of the public officers law shall  be
subject  to  a  civil  penalty in an amount not to exceed forty thousand
dollars and the value of any gift, compensation or benefit received as a
result of such violation. An individual who knowingly and  intentionally
violates the provisions of paragraph b, c, d [or], i OR J of subdivision
three  of  section  seventy-four  of  the  public  officers law shall be
subject to a civil penalty in an  amount  not  to  exceed  ten  thousand
dollars and the value of any gift, compensation or benefit received as a
result  of such violation. An individual who knowingly and intentionally
violates the provisions of paragraph a, e or g of subdivision  three  of
section  seventy-four  of  the public officers law shall be subject to a
civil penalty in an amount not to exceed the value of any gift,  compen-
sation  or benefit received as a result of such violation. An individual
subject to the jurisdiction of the commission who knowingly and willful-
ly violates article one-A of the legislative law  shall  be  subject  to
civil  penalty  as  provided for in that article.  Assessment of a civil
penalty hereunder shall be  made  by  the  commission  with  respect  to
persons  subject  to  its  jurisdiction.  In assessing the amount of the
civil penalties to be imposed, the commission shall consider  the  seri-
ousness  of  the  violation,  the  amount  of gain to the individual and
whether the individual previously had any civil  or  criminal  penalties
imposed  pursuant  to this section, and any other factors the commission
deems appropriate. For a violation of this subdivision, other  than  for
conduct  which  constitutes  a violation of section one hundred seven of
the civil service law, subdivisions twelve or fourteen through seventeen
of section seventy-three or section seventy-four of the public  officers
law or article one-A of the legislative law, the commission may, in lieu
of  a civil penalty, refer a violation to the appropriate prosecutor and
upon such conviction, such violation shall be punishable as  a  class  A
misdemeanor.  A  civil penalty for false filing may not be imposed here-
under in the event a category of "value" or "amount" reported  hereunder
is  incorrect  unless  such reported information is falsely understated.
Notwithstanding any other provision of law to  the  contrary,  no  other
penalty,  civil or criminal may be imposed for a failure to file, or for
a false filing, of such statement, or a violation  of  section  seventy-
three  of  the public officers law, except that the appointing authority
may impose disciplinary action as otherwise provided by law. The commis-
sion may refer violations of this subdivision to the appointing authori-
ty for disciplinary action as otherwise provided by law. The  commission
shall  be  deemed to be an agency within the meaning of article three of
the state administrative procedure act and shall adopt  rules  governing

S. 8346                             5

the  conduct of adjudicatory proceedings and appeals taken pursuant to a
proceeding commenced under article seventy-eight of the  civil  practice
law  and  rules relating to the assessment of the civil penalties herein
authorized  and  commission denials of requests for certain deletions or
exemptions to be made from a financial disclosure statement  as  author-
ized  in  paragraph  (h)  or  paragraph  (i) of subdivision nine of this
section. Such rules, which shall not be subject to the approval require-
ments of the state administrative procedure act, shall provide  for  due
process  procedural  mechanisms substantially similar to those set forth
in article three of the state  administrative  procedure  act  but  such
mechanisms  need  not  be  identical  in terms or scope. Assessment of a
civil penalty or commission denial of such  a  request  shall  be  final
unless  modified, suspended or vacated within thirty days of imposition,
with respect to the assessment of such penalty, or unless such denial of
request is reversed within such time period,  and  upon  becoming  final
shall  be  subject  to  review at the instance of the affected reporting
individuals in a proceeding commenced against the  commission,  pursuant
to article seventy-eight of the civil practice law and rules.
  S  10. Subdivision 11 of section 80 of the legislative law, as amended
by chapter 14 of the laws of 2007, is amended to read as follows:
  11. An individual subject to the jurisdiction of  the  commission  who
knowingly  and intentionally violates the provisions of subdivisions two
through five, seven, eight,  twelve,  fourteen  or  fifteen  of  section
seventy-three  of  the public officers law or a reporting individual who
knowingly and wilfully fails to file an annual  statement  of  financial
disclosure  or who knowingly and wilfully with intent to deceive makes a
false statement or gives information which such individual knows  to  be
false  on  such  statement  of  financial  disclosure  filed pursuant to
section seventy-three-a of the public officers law shall be subject to a
civil penalty in an amount not to exceed forty thousand dollars and  the
value  of any gift, compensation or benefit received as a result of such
violation. Any such individual who knowingly and intentionally  violates
the provisions of paragraph b, c, d, [or] i OR J of subdivision three of
section  seventy-four  of  the public officers law shall be subject to a
civil penalty in an amount not to exceed ten thousand  dollars  and  the
value  of any gift, compensation or benefit received as a result of such
violation. Any such individual who knowingly and intentionally  violates
the  provisions  of  paragraph a, e or g of subdivision three of section
seventy-four of the public officers law shall  be  subject  to  a  civil
penalty  in  an  amount  equal to the value of any gift, compensation or
benefit received as a result of such violation. Assessment  of  a  civil
penalty  hereunder  shall  be  made  by  the  commission with respect to
persons subject to its jurisdiction. In  assessing  the  amount  of  the
civil  penalties  to be imposed, the commission shall consider the seri-
ousness of the violation, the amount  of  gain  to  the  individual  and
whether  the  individual  previously had any civil or criminal penalties
imposed pursuant to this section, and any other factors  the  commission
deems  appropriate.  For  a  violation  of  this section, other than for
conduct which constitutes a violation of subdivision twelve, fourteen or
fifteen of section seventy-three or section seventy-four of  the  public
officers  law, the legislative ethics commission may, in lieu of a civil
penalty, refer a violation to the appropriate prosecutor and  upon  such
conviction,  but  only  after  such  referral,  such  violation shall be
punishable as a class A misdemeanor. A civil penalty  for  false  filing
may  not  be  imposed  hereunder  in  the event a category of "value" or
"amount" reported hereunder is incorrect unless such  reported  informa-

S. 8346                             6

tion  is falsely understated. Notwithstanding any other provision of law
to the contrary, no other penalty, civil or criminal may be imposed  for
a  failure  to  file,  or  for  a  false filing, of such statement, or a
violation  of  section  seventy-three of the public officers law, except
that the appointing authority may impose disciplinary action  as  other-
wise  provided by law. The legislative ethics commission shall be deemed
to be an agency within the meaning of article three of the state  admin-
istrative  procedure  act and shall adopt rules governing the conduct of
adjudicatory proceedings and appeals  taken  pursuant  to  a  proceeding
commenced  under  article  seventy-eight  of  the civil practice law and
rules relating to the assessment of the civil penalties  herein  author-
ized  and  commission  denials  of  requests  for  certain  deletions or
exemptions to be made from a financial disclosure statement  as  author-
ized in paragraph i or paragraph j of subdivision seven of this section.
Such  rules,  which shall not be subject to the promulgation and hearing
requirements of the state administrative procedure  act,  shall  provide
for due process procedural mechanisms substantially similar to those set
forth in such article three but such mechanisms need not be identical in
terms  or  scope.  Assessment of a civil penalty or commission denial of
such a deletion or exemption request shall  be  final  unless  modified,
suspended  or  vacated within thirty days of imposition, with respect to
the assessment of such penalty, or unless  such  denial  of  request  is
reversed  within  such  time  period,  and  upon becoming final shall be
subject to review at the instance of the affected reporting  individuals
in  a  proceeding  commenced  against the legislative ethics commission,
pursuant to article seventy-eight of the civil practice law and rules.
  S 11. Section 1-c of the legislative law is amended by  adding  a  new
subdivision (w) to read as follows:
  (W) THE TERM "REPORTABLE BUSINESS RELATIONSHIP" SHALL MEAN A RELATION-
SHIP  IN  WHICH  COMPENSATION  IS PAID BY A LOBBYIST OR BY A CLIENT OF A
LOBBYIST, IN EXCHANGE FOR ANY GOODS, SERVICES OR ANYTHING OF VALUE TO BE
PERFORMED OR PROVIDED BY OR INTENDED TO BE PERFORMED OR PROVIDED BY  (I)
ANY STATEWIDE ELECTED OFFICIAL, STATE OFFICER, STATE EMPLOYEE, MEMBER OF
THE  LEGISLATURE OR LEGISLATIVE EMPLOYEE OR (II) ANY ENTITY IN WHICH THE
LOBBYIST OR THE CLIENT OF A LOBBYIST KNOWS OR HAS  REASON  TO  KNOW  THE
STATEWIDE ELECTED OFFICIAL, STATE OFFICER, STATE EMPLOYEE, MEMBER OF THE
LEGISLATURE  OR LEGISLATIVE EMPLOYEE IS A PROPRIETOR, PARTNER, DIRECTOR,
OFFICER OR MANAGER WHO RECEIVES TEN PERCENT OR MORE OF THE PROFITS  FROM
SUCH  ENTITY,  OR  OWNS  OR CONTROLS TEN PERCENT OR MORE OF THE STOCK OF
SUCH ENTITY (OR ONE PERCENT IN THE CASE OF A CORPORATION WHOSE STOCK  IS
REGULARLY TRADED ON AN ESTABLISHED SECURITIES EXCHANGE).
  S 12. Subdivision (c) of section 1-e of the legislative law is amended
by adding a new paragraph 8 to read as follows:
  (8)  (I)  THE  NAME AND PUBLIC OFFICE ADDRESS OF ANY STATEWIDE ELECTED
OFFICIAL, STATE OFFICER OR EMPLOYEE, MEMBER OF THE LEGISLATURE OR LEGIS-
LATIVE EMPLOYEE AND ENTITY WITH WHOM THE LOBBYIST HAS A REPORTABLE BUSI-
NESS RELATIONSHIP IN EXCESS OF ONE THOUSAND DOLLARS DURING THE REPORTING
PERIOD;
  (II) A DESCRIPTION OF THE GENERAL SUBJECT OR SUBJECTS  OF  THE  TRANS-
ACTIONS  BETWEEN  THE  LOBBYIST  OR  LOBBYISTS AND THE STATEWIDE ELECTED
OFFICIAL, STATE OFFICER OR EMPLOYEE, MEMBER OF THE LEGISLATURE OR LEGIS-
LATIVE EMPLOYEE AND ENTITY; AND
  (III) THE COMPENSATION, INCLUDING EXPENSES, TO BE PAID  BY  VIRTUE  OF
THE BUSINESS RELATIONSHIP.
  S 13. Subdivision (b) of section 1-j of the legislative law is amended
by adding a new paragraph 6 to read as follows:

S. 8346                             7

  (6)  (I)  THE  NAME AND PUBLIC OFFICE ADDRESS OF ANY STATEWIDE ELECTED
OFFICIAL, STATE OFFICER OR EMPLOYEE, MEMBER OF THE LEGISLATURE OR LEGIS-
LATIVE EMPLOYEE AND ENTITY WITH WHOM THE CLIENT  OF  A  LOBBYIST  HAS  A
REPORTABLE  BUSINESS  RELATIONSHIP  IN  EXCESS  OF  FIVE HUNDRED DOLLARS
DURING THE REPORTING PERIOD;
  (II)  A  DESCRIPTION  OF THE GENERAL SUBJECT OR SUBJECTS OF THE TRANS-
ACTIONS BETWEEN THE CLIENT OF THE LOBBYIST OR LOBBYISTS AND  THE  STATE-
WIDE ELECTED OFFICIAL, STATE OFFICER OR EMPLOYEE, MEMBER OF THE LEGISLA-
TURE OR LEGISLATIVE EMPLOYEE AND ENTITY; AND
  (III)  THE  COMPENSATION,  INCLUDING EXPENSES, TO BE PAID BY VIRTUE OF
THE BUSINESS RELATIONSHIP.
  S 14. This act shall take effect immediately, provided  that  sections
eleven, twelve and thirteen of this act shall take effect on the nineti-
eth day after it shall have become a law.

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Sponsored By

Eric T. Schneiderman

Archive: Last Bill Status - In Senate Committee Rules Committee

Actions

2009-S8346 (ACTIVE) - Details

2009-S8346 (ACTIVE) - Summary

2009-S8346 (ACTIVE) - Sponsor Memo

2009-S8346 (ACTIVE) - Bill Text download pdf

Comments