S T A T E O F N E W Y O R K
________________________________________________________________________
8304--A
2011-2012 Regular Sessions
I N A S S E M B L Y
June 10, 2011
___________
Introduced by M. of A. SILVER, O'DONNELL -- read once and referred to
the Committee on Governmental Operations -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend part A of a chapter of the laws of 2011, establishing
the public integrity reform act of 2011, as proposed in legislative
bills numbers S.5679 and A.8301, in relation to making technical
corrections thereto; and to amend the executive law, in relation to
the joint commission on public ethics and the legislative law, in
relation to the legislative ethics commission and reports by lobbyists
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Part A of a chapter of the laws of 2011 establishing the
public integrity reform act of 2011, as proposed in legislative bills
numbers S.5679 and A.8301, is amended by adding a new section 3-a to
read as follows:
S 3-A. PARAGRAPH (C) OF SUBDIVISION 6 OF SECTION 73 OF THE PUBLIC
OFFICERS LAW IS RELETTERED PARAGRAPH (D) AND A NEW PARAGRAPH (C) IS
ADDED TO READ AS FOLLOWS:
(C) EVERY LEGISLATIVE EMPLOYEE NOT SUBJECT TO THE PROVISIONS OF
SECTION SEVENTY-THREE-A OF THIS ARTICLE SHALL FILE SUCH STATEMENT PURSU-
ANT TO PARAGRAPH (A) OF THIS SUBDIVISION WITH THE LEGISLATIVE ETHICS
COMMISSION WHICH SHALL PROVIDE SUCH STATEMENT TO THE JOINT COMMISSION ON
PUBLIC ETHICS FOR FILING ON OR BEFORE THE FIRST DAY OF MARCH.
S 2. The opening paragraph of paragraph (a) of subdivision 2 of
section 73-a of the public officers law, as amended by section 5 of part
A of a chapter of the laws of 2011 establishing the public integrity
reform act of 2011, as proposed in legislative bills numbers S. 5679 and
A. 8301, is amended to read as follows:
Every statewide elected official, state officer or employee, member of
the legislature, legislative employee and political party chairman and
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13085-04-1
A. 8304--A 2
every candidate for statewide elected office or for member of the legis-
lature shall file an annual statement of financial disclosure containing
the information and in the form set forth in subdivision three of this
section. On or before the fifteenth day of May with respect to the
preceding calendar year: (1) every member of the legislature[, every
candidate for member of the legislature] and legislative employee WHO IS
SUBJECT TO THE PROVISIONS OF THIS SECTION, shall file such statement
with the legislative ethics commission which shall provide such state-
ment along with any requests for exemptions or deletions to the joint
commission on public ethics for filing and rulings with respect to such
requests for exemptions or deletions, on or before the thirtieth day of
June; and (2) all other individuals required to file such statement
shall file it with the joint commission on public ethics, except that:
S 3. Subparagraph (ix) of paragraph (a) of subdivision 2 of section
73-a of the public officers law, as added by section 5 of part A of a
chapter of the laws of 2011 establishing the public integrity reform act
of 2011, as proposed in legislative bills numbers S. 5679 and A. 8301,
is amended to read as follows:
(ix) [with respect to all candidates for member of the legislature,
the legislative ethics commission shall within five days of receipt
provide the joint commission on public ethics the statement filed pursu-
ant to subparagraphs (v), (vi), (vii) and (viii) of this paragraph]
EVERY CANDIDATE FOR MEMBER OF THE LEGISLATURE WHO IS REQUIRED TO FILE
SUCH STATEMENT PURSUANT TO SUBPARAGRAPHS (V), (VI), (VII) AND (VIII) OF
THIS PARAGRAPH, SHALL FILE SUCH STATEMENT WITH THE LEGISLATIVE ETHICS
COMMISSION WHICH SHALL PROVIDE SUCH STATEMENT ALONG WITH ANY REQUESTS
FOR EXEMPTIONS OR DELETIONS TO THE JOINT COMMISSION ON PUBLIC ETHICS FOR
FILING AND RULINGS WITH RESPECT TO SUCH REQUESTS FOR EXEMPTIONS OR
DELETIONS WITHIN FIVE BUSINESS DAYS OF RECEIPT OF SUCH STATEMENT.
S 4. The second undesignated paragraph of subparagraph (b) of para-
graph 8 of subdivision 3 of section 73-a of the public officers law, as
added by section 5 of part A of a chapter of the laws of 2011 establish-
ing the public integrity reform act of 2011, as proposed in legislative
bills numbers S. 5679 and A. 8301, is amended to read as follows:
If the reporting individual personally provides services to any person
or entity, or works as a member or employee of a partnership [or],
corporation OR ENTITY that provides such services (referred to herein-
after as a "firm"), then identify each client or customer to whom the
reporting individual personally provided services, or who was referred
to the firm by the reporting individual, and from whom the reporting
individual or his or her firm earned fees in excess of $10,000 during
the reporting period for such services rendered in direct connection
with:
S 5. Subdivision 14 of section 94 of the executive law, as amended by
section 6 of part A of a chapter of the laws of 2011 establishing the
public integrity reform act of 2011, as proposed in legislative bills
numbers S. 5679 and A.8301, is amended to read as follows:
14. An individual subject to the jurisdiction of the commission who
knowingly and intentionally violates the provisions of subdivisions two
through five-a, 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
A. 8304--A 3
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 a, b, c, d, e, g, or i of subdivi-
sion 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 subject to the jurisdiction of
the commission who knowingly and willfully violates article one-A of the
legislative law shall be subject to civil penalty as provided for in
that article. Except with respect to members of the legislature, CANDI-
DATES FOR MEMBER OF THE LEGISLATURE and legislative employees, assess-
ment of a civil penalty hereunder shall be made by the commission with
respect to persons subject to its jurisdiction. With respect to a
violation of any law other than sections seventy-three, seventy-three-a,
and seventy-four of the public officers law, where the commission finds
sufficient cause by a vote held in the same manner as set forth in para-
graph [(b)] (A) of subdivision thirteen of this section, it shall refer
such matter to the appropriate prosecutor for further investigation. In
assessing the amount of the civil penalties to be imposed, the commis-
sion shall consider the seriousness 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. Except with respect to
members of the legislature, CANDIDATES FOR MEMBER OF THE LEGISLATURE and
legislative employees, 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 seven-
teen 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 or in addition to 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 hereunder in the event a category of "value"
or "amount" reported hereunder is incorrect unless such reported infor-
mation 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 subdivision six of section seventy-three of the public
officers law, except that the appointing authority may impose discipli-
nary action as otherwise provided by law. The commission may refer
violations of this subdivision to the appointing authority for discipli-
nary action as otherwise provided by law. The 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 (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
A. 8304--A 4
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 6. Paragraph 4 of subdivision (c) of section 1-h of the legislative
law, as added by section 1 of part B of a chapter of the laws of 2011
establishing the public integrity reform act of 2011, as proposed in
legislative bills numbers S. 5679 and A. 8301, is amended to read as
follows:
(4) Any lobbyist registered pursuant to section one-e of this article
whose lobbying activity is performed on its own behalf and not pursuant
to retention by a client:
(i) that has spent over fifty thousand dollars for reportable compen-
sation and expenses for lobbying either during the calendar year, or
during the twelve-month period, prior to the date of this bi-monthly
report, and
(ii) at least three percent of whose total expenditures during the
same period were devoted to lobbying in New York,
shall report to the commission the names of each source of funding over
five thousand dollars from a single source that were used to fund the
lobbying activities reported and the amounts received from each identi-
fied source of funding.
This disclosure shall not require disclosure of the sources of funding
whose disclosure, in the determination of the commission based upon a
review of the relevant facts presented by the reporting lobbyist, may
cause harm, threats, harassment, or reprisals to the source or to indi-
viduals or property affiliated with the source. The reporting lobbyist
may appeal the commission's determination and such appeal shall be heard
by a judicial hearing officer who is independent and not affiliated with
or employed by the commission, pursuant to regulations promulgated by
the commission. The reporting lobbyist shall not be required to disclose
the sources of funding that are the subject of such appeal pending final
judgment on appeal.
The disclosure shall not apply to:
(i) any [corporation] ENTITY registered pursuant to article seven-A of
the executive law that is qualified as an exempt organization by the
United States Department of the Treasury under I.R.C. S 501(c)(3);
(ii) any [corporation] ENTITY registered pursuant to article seven-A
of the executive law that is qualified as an exempt organization by the
United States Department of the Treasury under I.R.C. S 501(c)(4) and
whose primary activities concern any area of public concern determined
by the commission to create a substantial likelihood that application of
this disclosure requirement would lead to harm, threats, harassment, or
reprisals to a source of funding or to individuals or property affil-
iated with such source, including but not limited to the area of civil
rights and civil liberties and any other area of public concern deter-
mined pursuant to regulations promulgated by the commission to form a
proper basis for exemption on this basis from this disclosure require-
ment; or
(iii) any governmental entity.
The joint commission on public ethics shall promulgate regulations to
implement these requirements.
A. 8304--A 5
S 7. Paragraph h of subdivision 7 of section 80 of the legislative
law, as amended by section 9 of part A of a chapter of the laws of 2011
establishing the public integrity reform act of 2011, as proposed in
legislative bills numbers S. 5679 and A. 8301, is amended to read as
follows:
h. Review financial disclosure statements in accordance with the
provisions of this section, provided however, that the commission may
delegate all or part of the review function relating to financial
disclosure statements filed by MEMBERS OF THE LEGISLATURE, CANDIDATES
FOR MEMBER OF THE LEGISLATURE AND legislative employees pursuant to
sections seventy-three and seventy-three-a of the public officers law to
the executive director who shall be responsible for completing staff
review of such statements in a manner consistent with the terms of the
commission's delegation;
S 8. This act shall take effect immediately; provided that sections
one, two, three, four, five and seven of this act shall take effect on
the same date and in the same manner as part A and section six of this
act shall take effect on the same date as part B of a chapter of the
laws of 2011 establishing the public integrity reform act of 2011, as
proposed in legislative bills numbers S. 5679 and A. 8301, take effect.