Senate Bill S7852

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

                                  7852

                            I N  S E N A T E

                             October 3, 2012
                               ___________

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

AN ACT to amend the executive law, the legislative law  and  the  public
  officers  law,  in  relation to doing away with the legislative ethics
  commission and transferring certain duties to the joint commission  on
  public  ethics;  and  to  repeal  article 5 of the legislative law, in
  relation to the legislative ethics commission

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

  Section 1. Article 5 of the legislative law is REPEALED.
  S  2. Section 94 of the executive law, as amended by section 6 of part
A of chapter 399 of the laws of 2011, is amended to read as follows:
  S 94. Joint commission on public ethics; functions, powers and duties;
review of financial disclosure statements; advisory  opinions;  investi-
gation and enforcement.
  1. There is established within the department of state a joint commis-
sion on public ethics which shall consist of [fourteen] FIVE members and
shall  have and exercise the powers and duties set forth in this section
with respect to statewide elected officials, members of the  legislature
and  employees  of the legislature, and state officers and employees, as
defined in sections seventy-three  and  seventy-three-a  of  the  public
officers law, candidates for statewide elected office and for the senate
or assembly, and the political party chairman as that term is defined in
section  seventy-three-a  of  the public officers law, lobbyists and the
clients of lobbyists as such terms are defined in article one-A  of  the
legislative  law, and individuals who have formerly held such positions,
were lobbyists or clients of lobbyists, as such  terms  are  defined  in
article  one-A  of  the  legislative law, or who have formerly been such
candidates. This section shall not be deemed to have revoked or rescind-
ed any regulations or advisory opinions issued by the FORMER legislative
ethics commission, the FORMER commission on public integrity, the  state
ethics  commission  and the temporary lobbying commission in effect upon
the effective date of chapter fourteen of the laws of two thousand seven
which amended this section to the extent that such regulations or  opin-

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

                                                           LBD16534-02-2

S. 7852                             2

ions  are  not  inconsistent  with any law of the state of New York, but
such regulations and opinions shall apply only  to  matters  over  which
such commissions had jurisdiction at the time such regulations and opin-
ions  were  promulgated  or  issued.  The  commission  shall undertake a
comprehensive review of all such regulations and  opinions,  which  will
address  the  consistency  of  such  regulations and opinions among each
other and with the new statutory language, and of the  effectiveness  of
the  existing  laws, regulations, guidance and ethics enforcement struc-
ture to address the ethics  of  covered  public  officials  and  related
parties.  [Such  review  shall  be conducted with the legislative ethics
commission and, to the extent  possible,  the  report's  findings  shall
reflect the full input and deliberations of both commissions after joint
consultation.] The commission shall, before February first, two thousand
fifteen,  report  to  the governor and legislature regarding such review
and shall propose any regulatory or  statutory  changes  and  issue  any
advisory opinions necessitated by such review.
  2. The members of the commission shall be appointed [as follows: three
members  shall  be  appointed  by the temporary president of the senate,
three members shall be appointed by the speaker  of  the  assembly,  one
member  shall  be  appointed  by  the minority leader of the senate, one
member shall be appointed by the minority leader of  the  assembly,  and
six  members  shall  be  appointed]  by the governor [and the lieutenant
governor. In the event that a vacancy arises with respect to a member of
the commission first appointed pursuant to the chapter of  the  laws  of
two  thousand  eleven  which  amended  this subdivision by a legislative
leader, the legislative leaders of the same political party in the  same
house shall appoint a member to fill such vacancy irrespective of wheth-
er  that  legislative  leader's  political  party  is in the majority or
minority. Of the members appointed by the governor  and  the  lieutenant
governor,  at  least  three  members shall be and shall have been for at
least three years enrolled members of the major political party in which
the governor is not enrolled. In the event of a vacancy  in  a  position
previously appointed by the governor and lieutenant governor, the gover-
nor and lieutenant governor shall appoint a member of the same political
party  as  the  member that vacated that position. Prior to making their
respective appointments, the governor and the  lieutenant  governor  and
the  legislative  leaders  shall solicit and receive recommendations for
appointees from the attorney general and the comptroller of the state of
New York, which recommendations shall be fully and  properly  considered
but  shall  not  be binding] WITH THE ADVICE AND CONSENT OF THE LEGISLA-
TURE, WITHOUT REGARD TO POLITICAL AFFILIATION, FROM THE LIST PROVIDED BY
THE NOMINATING PANEL AS DESCRIBED IN SUBDIVISION TWO-A OF THIS SECTION.
  No individual shall be eligible for appointment as  a  member  of  the
commission who currently or within the last three years:
  (i) is or has been registered as a lobbyist in New York state;
  (ii)  is  or  has been a member of the New York state legislature or a
statewide elected official or a  commissioner  of  an  executive  agency
appointed by the governor; or
  (iii)  is  or has been a political party chairman, as defined in para-
graph (k) of subdivision one of section seventy-three of [this  article]
THE PUBLIC OFFICERS LAW.
  No  individual  shall  be  eligible for appointment as a member of the
commission who currently or within the last year is or has been a  state
officer or employee or legislative employee as defined in section seven-
ty-three of the public officers law.

S. 7852                             3

  2-A.  (A)  THE  GOVERNOR  SHALL  CREATE A NOMINATING PANEL COMPOSED OF
THREE MEMBERS WHOSE SOLE FUNCTION  SHALL  BE  TO  NOMINATE  PERSONS  FOR
CONSIDERATION  BY THE GOVERNOR FOR APPOINTMENT TO THE COMMISSION. REPRE-
SENTATION ON THE PANEL AND THE SELECTION OF SUCH  MEMBERS  SHALL  BE  AS
FOLLOWS:  ONE MEMBER SHALL BE THE CHIEF JUDGE OF THE COURT OF APPEALS OR
HIS OR HER DESIGNEE; ONE MEMBER SHALL BE THE PRESIDENT OF THE  NEW  YORK
STATE  BAR  ASSOCIATION  OR HIS OR HER DESIGNEE; AND ONE MEMBER SHALL BE
EXECUTIVE DIRECTOR OF THE NOT-FOR-PROFIT ORGANIZATION, COMMON CAUSE,  OR
HIS OR HER DESIGNEE.
  3.  Members  of  the  commission  shall serve for terms of five years;
provided, however, that of the members first appointed by  the  governor
[and lieutenant governor], one shall serve for one year, one shall serve
for  two years, one shall serve for three years, and one shall serve for
four years, as designated by the governor[; the members first  appointed
by  the  temporary  president  of  the  senate and by the speaker of the
assembly shall serve for four years and the members first  appointed  by
the  minority leaders of the senate and the assembly shall serve for two
years].
  4. The governor shall designate the chairman of  the  commission  from
among  the  members thereof, who shall serve as chairman at the pleasure
of the governor. The chairman  or  any  [eight]  THREE  members  of  the
commission may call a meeting.
  5.  Any  vacancy  occurring  on  the commission shall be filled within
thirty days of its occurrence in the same manner  as  the  member  whose
vacancy  is  being  filled  was  appointed. A person appointed to fill a
vacancy occurring other than by expiration of a term of office shall  be
appointed for the unexpired term of the member he or she succeeds.
  6.  [Eight] THREE members of the commission shall constitute a quorum,
and the commission shall have power to act by majority vote of the total
number of members of the commission without  vacancy  except  where  the
commission acts pursuant to subdivision thirteen, subdivision fourteen-a
or subdivision fourteen-b of this section.
  7. Members of the commission may be removed by the [appointing author-
ity]  GOVERNOR  solely for substantial neglect of duty, gross misconduct
in office, violation of the confidentiality restrictions in  subdivision
nine-a  of  this section, inability to discharge the powers or duties of
office or violation of this section, after written notice  and  opportu-
nity for a reply.
  8. The members of the joint commission shall receive a per diem allow-
ance  in the sum of three hundred dollars for each day actually spent in
the performance of his or her duties under this article, and,  in  addi-
tion  thereto,  shall be reimbursed for all reasonable expenses actually
and necessarily incurred by him or her in the performance of his or  her
duties under this article.
  9. The commission shall:
  (a) Appoint an executive director who shall act in accordance with the
policies of the commission. The appointment and removal of the executive
director  shall  be  made  solely by a vote of a majority of the commis-
sion[, which majority shall include at least one member appointed by the
governor from each of the two major political parties,  and  one  member
appointed  by  a legislative leader from each of the two major political
parties]. The commission may delegate authority to the executive  direc-
tor to act in the name of the commission between meetings of the commis-
sion  provided  such delegation is in writing, the specific powers to be
delegated are enumerated, and the  commission  shall  not  delegate  any
decisions  specified  in this section that require a vote of the commis-

S. 7852                             4

sion. The executive director shall be appointed without regard to  poli-
tical  affiliation  and  solely  on  the basis of fitness to perform the
duties assigned by this article, and shall be a  qualified,  independent
professional.  The  commission  may  remove  the  executive director for
neglect of duty, misconduct in office, violation of the  confidentiality
restrictions  in  subdivision  nine-a  of  this section, or inability or
failure to discharge the powers or duties of office, including the fail-
ure to follow the lawful instructions of the commission;
  (b) Appoint such other staff as are necessary to carry out its  duties
under this section;
  (b-1)  Review and approve a staffing plan provided and prepared by the
executive director which shall contain, at a  minimum,  a  list  of  the
various  units  and divisions as well as the number of positions in each
unit, titles and their duties, and salaries,  as  well  as  the  various
qualifications  for  each position including, but not limited to, educa-
tion and prior experience for each position[.];
  (c) Adopt, amend, and rescind rules and regulations to  govern  proce-
dures of the commission, which shall include, but not be limited to, the
procedure  whereby  a person who is required to file an annual financial
disclosure statement with the commission may request an additional peri-
od of time within which to file such statement, [other than  members  of
the  legislature, candidates for members of the legislature and legisla-
tive employees,] due to justifiable cause or undue hardship; such  rules
or  regulations  shall  provide  for a date beyond which in all cases of
justifiable cause or undue hardship no further extension of time will be
granted;
  (d) Adopt, amend, and rescind rules and regulations to assist appoint-
ing authorities in determining which persons  hold  policy-making  posi-
tions for purposes of section seventy-three-a of the public officers law
AND  MAY  PROMULGATE GUIDELINES TO ASSIST FIRMS, ASSOCIATIONS AND CORPO-
RATIONS IN SEPARATING AFFECTED PERSONS FROM NET REVENUES FOR PURPOSES OF
SUBDIVISION TEN OF SECTION SEVENTY-THREE OF THE PUBLIC OFFICERS LAW, AND
PROMULGATE GUIDELINES TO ASSIST ANY FIRM, ASSOCIATION OR CORPORATION  IN
WHICH ANY PRESENT OR FORMER STATEWIDE ELECTED OFFICIAL, STATE OFFICER OR
EMPLOYEE,  MEMBER  OF  THE LEGISLATURE OR LEGISLATIVE EMPLOYEE, OR POLI-
TICAL PARTY CHAIRMAN IS A MEMBER, ASSOCIATE, RETIRED MEMBER  OF  COUNSEL
OR  SHAREHOLDER,  IN COMPLYING WITH THE PROVISIONS OF SUBDIVISION TEN OF
SECTION SEVENTY-THREE OF THE PUBLIC OFFICERS LAW  WITH  RESPECT  TO  THE
SEPARATION  OF  SUCH PRESENT OR FORMER STATEWIDE ELECTED OFFICIAL, STATE
OFFICER OR EMPLOYEE, MEMBER OF THE LEGISLATURE OR LEGISLATIVE  EMPLOYEE,
OR  POLITICAL  PARTY CHAIRMAN FROM THE NET REVENUES OF THE FIRM, ASSOCI-
ATION OR CORPORATION. SUCH FIRM, ASSOCIATION OR CORPORATION SHALL NOT BE
REQUIRED TO ADOPT THE PROCEDURES CONTAINED IN THE GUIDELINES  TO  ESTAB-
LISH  COMPLIANCE  WITH  SUBDIVISION  TEN OF SECTION SEVENTY-THREE OF THE
PUBLIC OFFICERS LAW, BUT IF SUCH FIRM, ASSOCIATION OR  CORPORATION  DOES
ADOPT  SUCH PROCEDURES, IT SHALL BE DEEMED TO BE IN COMPLIANCE WITH SUCH
SUBDIVISION TEN;
  (d-1) Adopt, amend and rescind  rules  and  regulations  defining  the
permissible  use  of  and  promoting  the  proper  use of public service
announcements;
  (e) Make available forms for annual statements of financial disclosure
required  to  be  filed  pursuant  to   SUBDIVISION   SIX   OF   SECTION
SEVENTY-THREE AND section seventy-three-a of the public officers law;
  (f)  Review  financial  disclosure  statements  in accordance with the
provisions of this section, provided however, that  the  commission  may
delegate  all  or part of this review function to the executive director

S. 7852                             5

who shall be responsible for completing staff review of such  statements
in a manner consistent with the terms of the commission's delegation;
  (g)  Receive  complaints  and referrals alleging violations of section
seventy-three, seventy-three-a or seventy-four of  the  public  officers
law,  article  one-A of the legislative law or section one hundred seven
of the civil service law;
  (h) Permit any person who is required to file a  financial  disclosure
statement with the [joint] commission [on public ethics] to request that
the  commission  delete  from the copy thereof made available for public
inspection and copying one or more items of  information  which  may  be
deleted  by  the  commission  upon  a finding by the commission that the
information which would otherwise be required to be made  available  for
public  inspection  and  copying  will  have  no material bearing on the
discharge of the reporting person's official duties. If such request for
deletion is denied, the commission, in its notification of denial, shall
inform the person of his or her right to appeal the commission's  deter-
mination  pursuant  to  its rules governing adjudicatory proceedings and
appeals adopted pursuant to subdivision fourteen of this section;
  (i) Permit any person who is required to file a  financial  disclosure
statement  with  the [joint] commission [on public ethics] to request an
exemption from any requirement to report one or more items  of  informa-
tion  which  pertain  to  such person's spouse or unemancipated children
which item or items may be exempted by the commission upon a finding  by
the commission that the reporting individual's spouse, on his or her own
behalf  or on behalf of an unemancipated child, objects to providing the
information necessary to make such disclosure and that  the  information
which  would  otherwise be required to be reported will have no material
bearing on the discharge of the reporting person's official  duties.  If
such  request  for exemption is denied, the commission, in its notifica-
tion of denial, shall inform the person of his or her  right  to  appeal
the commission's determination pursuant to its rules governing adjudica-
tory proceedings and appeals adopted pursuant to subdivision fourteen of
this section;
  (i-1) Permit any person required to file a financial disclosure state-
ment to request an exemption from any requirement to report the identity
of  a  client  pursuant to question 8(b) in such statement based upon an
exemption set forth in that question. The reporting individual need  not
seek  an exemption to refrain from disclosing the identity of any client
with respect to any matter he or she or his or her firm  provided  legal
representation  to  the  client  in  connection with an investigation or
prosecution by law  enforcement  authorities,  bankruptcy,  or  domestic
relations  matters;  in addition, clients or customers receiving medical
or dental services, mental  health  services,  residential  real  estate
brokering   services,  or  insurance  brokering  services  need  not  be
disclosed[.];
  (j) Advise and assist any state agency in establishing rules and regu-
lations relating to possible conflicts  between  private  interests  and
official  duties  of  present  or former statewide elected officials and
state officers and employees;
  (k) Permit any person who has  not  been  determined  by  his  or  her
appointing  authority to hold a policy-making position but who is other-
wise required to file a financial disclosure  statement  to  request  an
exemption from such requirement in accordance with rules and regulations
governing  such exemptions. Such rules and regulations shall provide for
exemptions to be granted either on the application of an  individual  or
on  behalf of persons who share the same job title or employment classi-

S. 7852                             6

fication which the commission deems to be  comparable  for  purposes  of
this  section.  Such rules and regulations may permit the granting of an
exemption where, in the discretion of the commission, the public  inter-
est  does  not  require  disclosure  and  the  applicant's duties do not
involve the negotiation, authorization or approval of:
  (i) contracts, leases, franchises,  revocable  consents,  concessions,
variances,  special  permits, or licenses as defined in section seventy-
three of the public officers law;
  (ii) the purchase, sale, rental or lease of real  property,  goods  or
services, or a contract therefor;
  (iii) the obtaining of grants of money or loans; or
  (iv) the adoption or repeal of any rule or regulation having the force
and effect of law;
  (l) Prepare an annual report to the governor and legislature summariz-
ing the activities of the commission during the previous year and recom-
mending any changes in the laws governing the conduct of persons subject
to  the  jurisdiction  of  the commission, or the rules, regulations and
procedures  governing  the  commission's  conduct.  Such  report   shall
include: (i) a listing by assigned number of each complaint and referral
received  which  alleged  a  possible violation within its jurisdiction,
including the current status of each complaint, and (ii) where a  matter
has  been resolved, the date and nature of the disposition and any sanc-
tion imposed,  subject  to  the  confidentiality  requirements  of  this
section,  provided,  however,  that such annual report shall not contain
any information for which disclosure is not permitted pursuant to subdi-
vision nineteen of this section;
  (m) Determine a question common to a  class  or  defined  category  of
persons or items of information required to be disclosed, where determi-
nation  of  the  question  will prevent undue repetition of requests for
exemption or deletion or prevent undue complication  in  complying  with
the requirements of such section; and
  (n)  Promulgate  guidelines for the commission to conduct a program of
random reviews, to be carried out in the following  manner:  (i)  annual
statements  of  financial  disclosure  shall be selected for review in a
manner pursuant to which the identity of  any  particular  person  whose
statement  is  selected is unknown to the commission and its staff prior
to its selection; (ii) such review shall include a preliminary  examina-
tion  of  the  selected statement for internal consistency, a comparison
with other records maintained by the  commission,  including  previously
filed  statements and requests for advisory opinions, and examination of
relevant public information; (iii) upon completion  of  the  preliminary
examination,  the  commission shall determine whether further inquiry is
warranted, whereupon it shall notify the reporting individual in writing
that the statement is under review, advise the reporting  individual  of
the specific areas of inquiry, and provide the reporting individual with
the  opportunity  to  provide  any  relevant  information related to the
specific areas of inquiry, and the opportunity to file amendments to the
selected statement on forms provided by  the  commission;  and  (iv)  if
thereafter sufficient cause exists, the commission shall take additional
actions, as appropriate and consistent with law.
  9-a.  (a)  When  an  individual becomes a commissioner or staff of the
commission, that individual shall be required to sign  a  non-disclosure
statement.
  (b)  Except  as  otherwise  required  or  provided  by  law, testimony
received or any other information obtained by a commissioner or staff of
the commission shall not be disclosed by  any  such  individual  to  any

S. 7852                             7

person  or  entity  outside  the  commission  during the pendency of any
matter. Any confidential communication to any person or  entity  outside
the  commission  related  to the matters before the commission may occur
only as authorized by the commission.
  (c) The commission shall establish procedures necessary to prevent the
unauthorized disclosure of any information received by any member of the
commission  or  staff of the commission. Any breaches of confidentiality
shall be investigated by the inspector general  and  appropriate  action
shall  be  taken.  Any commissioner or person employed by the commission
who intentionally and without authorization releases confidential infor-
mation received by the commission shall be guilty of a class A misdemea-
nor.
  9-b. During the period of his or her service as a commissioner of  the
commission,  each  commissioner shall refrain from making, or soliciting
from other persons, any contributions to candidates for election to  the
offices  of governor, lieutenant governor, member of the assembly or the
senate, attorney general or state comptroller.
  10. The commission shall prepare materials and design  and  administer
an  ethics  training  program  for  individuals subject to the financial
disclosure requirements of section seventy-three-a of the  public  offi-
cers  law  with  respect  to  the  provisions of sections seventy-three,
seventy-three-a, and seventy-four of the public  officers  law  and  any
other  law,  administrative  regulation,  or  internal policy that is of
relevance to the ethical conduct of such individuals in public  service,
as follows:
  (a) The commission shall develop and administer a comprehensive ethics
training  course  and  shall  designate and train instructors to conduct
such training. Such course shall be designed as a two-hour  program  and
shall  include practical application of the material covered and a ques-
tion-and-answer participatory segment. Unless the commission  grants  an
extension or waiver for good cause shown, all individuals subject to the
financial  disclosure  requirements  of  section  seventy-three-a of the
public officers law shall complete such course within two years  of  the
effective  date  of the chapter of the laws of two thousand eleven which
amended this section, or for  those  individuals  elected  or  appointed
after  the  effective  date  of  the chapter of the laws of two thousand
eleven which amended this section, within two years of becoming  subject
to  the  financial disclosure requirements of section seventy-three-a of
the public officers law.
  (b) The commission shall  develop  and  administer  an  online  ethics
orientation course and shall notify all individuals newly subject to the
financial  disclosure  requirements  of  section  seventy-three-a of the
public officers law of such course, which shall  be  completed  by  such
individuals  within  three  months  of becoming subject to such require-
ments, unless the commission grants an  extension  or  waiver  for  good
cause  shown.  Individuals  who  have completed the comprehensive ethics
training course shall not be required  to  complete  the  online  ethics
orientation course.
  (c)  The  commission shall develop and administer an ethics seminar or
ethics seminars  for  individuals  who  have  previously  completed  the
comprehensive ethics training course. Such seminars shall be designed as
ninety-minute programs and shall include any changes in law, regulation,
or policy or in the interpretation thereof, practical application of the
material  covered, and a question-and-answer segment. Unless the commis-
sion grants an extension or waiver for good cause shown,  such  individ-
uals  shall  be  scheduled to attend a seminar at least once every three

S. 7852                             8

years after having completed the comprehensive ethics  training  course.
In  lieu of attending an ethics seminar, such individuals may complete a
subsequent comprehensive ethics training program.
  (d)  The  provisions  of  this  subdivision shall be applicable to the
legislature except to the extent that  an  ethics  training  program  is
otherwise  established  by  the  assembly or senate for their respective
members and employees and such program meets  or  exceeds  each  of  the
requirements set forth in this section.
  (e) On an annual basis, the joint commission [in coordination with the
legislative  ethics commission] shall determine the status of compliance
with these training requirements by each state agency and by the  senate
and  the assembly. Such determination shall include aggregate statistics
regarding participation in such training, and shall be reported  to  the
governor and the legislature in writing.
  10-A.  THE COMMISSION SHALL DEVELOP EDUCATIONAL MATERIALS AND TRAINING
WITH REGARD TO LEGISLATIVE ETHICS FOR MEMBERS  OF  THE  LEGISLATURE  AND
LEGISLATIVE  EMPLOYEES INCLUDING AN ONLINE ETHICS ORIENTATION COURSE FOR
NEWLY-HIRED EMPLOYEES AND, AS REQUESTED BY THE SENATE OR  THE  ASSEMBLY,
MATERIALS  AND  TRAINING  IN RELATION TO A COMPREHENSIVE ETHICS TRAINING
PROGRAM.
  11. The commission, or the executive director and staff of the commis-
sion if responsibility therefor has been delegated,  shall  inspect  all
financial  disclosure  statements filed with the commission to ascertain
whether any person subject to  the  reporting  requirements  of  section
seventy-three-a  of  the  public  officers law has failed to file such a
statement, has filed a deficient statement  or  has  filed  a  statement
which  reveals  a  possible violation of section seventy-three, seventy-
three-a or seventy-four of the public officers law.
  12. If a person required to file a financial disclosure statement with
the commission has failed to file a disclosure statement or has filed  a
deficient statement, the commission shall notify the reporting person in
writing, state the failure to file or detail the deficiency, provide the
person  with a fifteen day period to cure the deficiency, and advise the
person of the  penalties  for  failure  to  comply  with  the  reporting
requirements.  Such notice shall be confidential. If the person fails to
make such filing or fails to cure the deficiency  within  the  specified
time  period,  the commission shall send a notice of delinquency: (a) to
the reporting person; (b) in the case of a statewide  elected  official,
member  of  the legislature, or a legislative employee, to the temporary
president of the senate and the speaker of the assembly; and (c) in  the
case  of  a  state  officer or employee, to the appointing authority for
such person. Such notice of delinquency may be sent at any  time  during
the  reporting  person's  service as a statewide elected official, state
officer or employee, member of the assembly or the senate, or a legisla-
tive employee or a political party chair or while a candidate for state-
wide office, or within one year after termination  of  such  service  or
candidacy.
  12-A.  The  jurisdiction  of  the  commission, when acting pursuant to
[subdivision fourteen  of]  this  section  [with  respect  to  financial
disclosure],  shall continue notwithstanding that the [reporting] person
separates from state service, or ceases  to  hold  public  or  political
party office, or ceases to be a candidate, provided the commission noti-
fies  such  person  of  the alleged [failure to file or deficient filing
pursuant to this subdivision] VIOLATION OF LAW WITHIN ONE YEAR FROM  HIS
OR  HER  SEPARATION  FROM STATE SERVICE, THE TERMINATION FROM HIS OR HER
OFFICE OR THE TERMINATION OF HIS OR HER CANDIDACY.

S. 7852                             9

  13. (a) Investigations. If the commission receives a  sworn  complaint
alleging  a  violation  of  section  seventy-three,  seventy-three-a, or
seventy-four of the public officers law, section one  hundred  seven  of
the  civil  service  law  or  article  one-A of the legislative law by a
person or entity subject to the jurisdiction of the commission including
members  of the legislature and legislative employees and candidates for
member of the legislature, or if a  reporting  individual  has  filed  a
statement  which reveals a possible violation of these provisions, or if
the commission determines on its own initiative to investigate a  possi-
ble  violation,  the  commission shall notify the individual in writing,
describe the possible or alleged violation of such laws and provide  the
person  with  a fifteen day period in which to submit a written response
setting forth information relating to the activities cited as a possible
or alleged violation of law. The  commission  shall,  within  forty-five
calendar days after a complaint or a referral is received or an investi-
gation  is initiated on the commission's own initiative, vote on whether
to commence a full investigation of the matter  under  consideration  to
determine  whether  a  substantial  basis  exists  to  conclude  that  a
violation of law has occurred. The staff of the joint  commission  shall
provide  to  the  members  prior  to such vote information regarding the
likely scope and content of the investigation, and a subpoena  plan,  to
the  extent  such  information is available. Such investigation shall be
conducted if at least [eight] THREE members of the  commission  vote  to
authorize  it.  [Where  the subject of such investigation is a member of
the legislature or a legislative employee or a candidate for  member  of
the  legislature,  at least two of the eight or more members who so vote
to authorize such an investigation must have been appointed by a  legis-
lative  leader  or  leaders  from the major political party in which the
subject of the proposed investigation is  enrolled  if  such  person  is
enrolled  in a major political party. Where the subject of such investi-
gation is a state officer or state employee, at least two of  the  eight
or more members who so vote to authorize such an investigation must have
been  appointed  by  the  governor  and  lieutenant  governor. Where the
subject of such investigation is  a  statewide  elected  official  or  a
direct  appointee of such an official, at least two of the eight or more
members who so vote to authorize such an investigation  must  have  been
appointed by the governor and lieutenant governor and be enrolled in the
major political party in which the subject of the proposed investigation
is enrolled, if such person is enrolled in a major political party.]
  (b)  Substantial basis investigation. Upon the affirmative vote of not
less than [eight] THREE commission members  to  commence  a  substantial
basis  investigation,  written notice of the commission's decision shall
be provided to the individual who is the  subject  of  such  substantial
basis  investigation.  Such  written  notice shall include a copy of the
commission's rules and procedures and shall also include notification of
such individual's right to be heard within thirty calendar days  of  the
date  of  the  commission's  written  notice.  The commission shall also
inform the individual of its rules regarding the conduct of adjudicatory
proceedings and appeals and the other due process procedural  mechanisms
available  to such individual. If the commission determines at any stage
that there is no violation or that any potential  conflict  of  interest
violation  has been rectified, it shall so advise the individual and the
complainant, if any. All of the foregoing proceedings shall be confiden-
tial.
  (c) The jurisdiction of the commission when acting  pursuant  to  this
section shall continue notwithstanding that a statewide elected official

S. 7852                            10

or  a state officer or employee or member of the legislature or legisla-
tive employee separates from state service, or a political  party  chair
ceases  to hold such office, or a candidate ceases to be a candidate, or
a  lobbyist or client of a lobbyist ceases to act as such, provided that
the commission  notifies  such  individual  or  entity  of  the  alleged
violation  of  law  pursuant to paragraph (a) of this subdivision within
one year from his or her separation from state service  or  his  or  her
termination  of party service or candidacy, or from his, her or its last
report filed pursuant to article one-A of the legislative law.   Nothing
in  this section shall serve to limit the jurisdiction of the commission
in enforcement of subdivision eight  of  section  seventy-three  of  the
public officers law.
  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
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 and
legislative employees, assessment] ASSESSMENT of a civil  penalty  here-
under 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 paragraph (b) of subdivision thirteen
of  this section, it shall refer such matter to the appropriate prosecu-
tor for further investigation. In assessing  the  amount  of  the  civil
penalties  to  be imposed, the commission 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 pursu-
ant  to  this section, and any other factors the commission deems appro-
priate. [Except with respect to members of the legislature and  legisla-
tive employees, for] 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 or in addition to a civil penalty, refer a violation to the appropri-
ate prosecutor and upon such conviction, such violation shall be punish-
able  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 information is

S. 7852                            11

falsely understated. Notwithstanding any other provision of law  to  the
contrary, no other penalty, civil or criminal may be imposed for a fail-
ure 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 disciplinary  action  as
otherwise  provided  by law. The commission may refer violations of this
subdivision to the  appointing  authority  for  disciplinary  action  as
otherwise provided by law. The commission shall be deemed to be an agen-
cy  within  the  meaning  of  article  three of the state administrative
procedure act and shall adopt rules governing the conduct of adjudicato-
ry 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 commis-
sion denials of requests for certain deletions or exemptions to be  made
from  a financial disclosure statement as authorized in paragraph (h) or
paragraph (i) of subdivision nine of this  section.  Such  rules,  which
shall  not be subject to the approval requirements of the state adminis-
trative procedure act, shall provide for due  process  procedural  mech-
anisms  substantially similar to those set forth in article three of the
state administrative procedure act but such mechanisms need not be iden-
tical 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.
  14-a. [The joint commission on public ethics shall  have  jurisdiction
to  investigate, but shall have no jurisdiction to impose penalties upon
members of or candidates for member of the  legislature  or  legislative
employees  for  any violation of the public officers law.] If, after its
substantial basis investigation, by a vote of  at  least  [eight]  THREE
members,  [two of whom are enrolled members of the investigated individ-
ual's political party if the individual is enrolled in a major political
party and were appointed by  a  legislative  leader  of  such  political
party,]  the  joint  commission on public ethics has found a substantial
basis to conclude that a member of  the  legislature  or  a  legislative
employee  or  candidate  for  member of the legislature has violated any
provisions of such laws, it shall [present] PREPARE a written report [to
the legislative ethics commission,] and deliver a copy of the report  to
the  individual  who  is  the subject of the report. Such written report
shall include:
  (a) the commission's findings of fact and any  evidence  addressed  in
such  findings;  conclusions  of  law and citations to any relevant law,
rule, opinion, regulation or standard of conduct upon which  it  relied;
and
  (b) a determination that a substantial basis exists to conclude that a
violation  has  occurred,  and  the  reasons and basis for such determi-
nation.
  [The joint commission shall also separately provide to the legislative
ethics commission copies  of  additional  documents  or  other  evidence
considered including evidence that may contradict the joint commission's
findings,  the  names  of and other information regarding any additional
witnesses, and any other materials.] With respect to a violation of  any
law other than sections seventy-three, seventy-three-a, and seventy-four

S. 7852                            12

of  the public officers law, where the joint commission finds sufficient
cause by a vote held in the same manner as set forth in paragraph (b) of
subdivision thirteen of this section, it shall refer such matter to  the
appropriate prosecutor.
  14-b.  [With respect to the investigation of any individual who is not
a member of the legislature or a legislative employee or  candidate  for
member  of the legislature, if after its investigation the joint commis-
sion has found a substantial basis to conclude that the  individual  has
violated  the  public  officers  law  or  the legislative law, the joint
commission shall send a substantial basis investigation report  contain-
ing  its findings of fact and conclusions of law to the individual. With
respect to an individual who is a statewide elected official or a direct
appointee of such an official, no violation  may  be  found  unless  the
majority  voting  in  support  of  such  a finding includes at least two
members appointed by the governor and lieutenant governor  and  enrolled
in the individual's major political party, if he or she is enrolled in a
major  political  party.  Where  the  subject of such investigation is a
state officer or employee who is not a direct appointee of  a  statewide
elected  official, at least two of the eight or more members who vote to
issue a substantial basis investigation report must have been  appointed
by  the  governor  and lieutenant governor. The commission shall release
such report publicly within forty-five days of its issuance.
  14-c. With respect to an investigation of a  lobbyist,  if  after  its
investigation  the  joint  commission  has  found a substantial basis to
conclude that the lobbyist has violated the legislative law,  the  joint
commission shall issue a substantial basis investigation report contain-
ing  its  findings  of  fact  and conclusions of law to the lobbyist and
shall make public such report within forty-five days of  its  issuance.]
NOT LATER THAN FORTY-FIVE CALENDAR DAYS AFTER PREPARATION BY THE COMMIS-
SION  OF  A  WRITTEN  SUBSTANTIAL  BASIS  INVESTIGATION  REPORT  AND ANY
SUPPORTING DOCUMENTATION OR OTHER MATERIALS REGARDING  A  MATTER  BEFORE
THE  COMMISSION  PURSUANT  TO  THIS  SECTION,  UNLESS REQUESTED BY A LAW
ENFORCEMENT AGENCY TO SUSPEND THE  COMMISSION'S  ACTION  BECAUSE  OF  AN
ONGOING  CRIMINAL  INVESTIGATION,  THE COMMISSION SHALL MAKE PUBLIC SUCH
REPORT IN ITS ENTIRETY; PROVIDED, HOWEVER, THAT THE COMMISSION MAY WITH-
HOLD SUCH INFORMATION FOR NOT MORE THAN ONE  ADDITIONAL  PERIOD  OF  THE
SAME  DURATION  AND,  IF  DEEMED  NECESSARY, CONDUCT ADDITIONAL INVESTI-
GATION, IN WHICH CASE THE COMMISSION SHALL, UPON THE TERMINATION OF SUCH
ADDITIONAL PERIOD OR UPON PREPARATION OF A NEW REPORT AFTER  SUCH  ADDI-
TIONAL  INVESTIGATION,  MAKE PUBLIC THE WRITTEN REPORT AND PUBLISH IT ON
THE COMMISSION'S WEBSITE. THE COMMISSION SHALL  NOT  CONDUCT  ADDITIONAL
INVESTIGATION  MORE  THAN  ONCE.  IF  THE COMMISSION CONDUCTS ADDITIONAL
FACT-FINDING, THE COMMISSION'S ORIGINAL REPORT  SHALL  REMAIN  CONFIDEN-
TIAL.
  14-C.  THE  COMMISSION  SHALL REVIEW THE MATTER ADDRESSED IN A WRITTEN
SUBSTANTIAL BASIS INVESTIGATION REPORT. NO LATER THAN NINETY DAYS  AFTER
FINAL  PREPARATION  OF  SUCH REPORT, THE COMMISSION SHALL DISPOSE OF THE
MATTER BY MAKING ONE OR MORE OF THE FOLLOWING DETERMINATIONS:
  A. WHETHER THE COMMISSION ADOPTS THE FINAL CONTENT OF SUCH A REPORT;
  B. WHETHER AND WHICH PENALTIES HAVE BEEN ASSESSED PURSUANT TO APPLICA-
BLE LAW OR RULE AND THE REASONS THEREFOR; AND
  C. WHETHER FURTHER ACTIONS HAVE BEEN TAKEN BY THE COMMISSION TO PUNISH
OR DETER THE MISCONDUCT AT ISSUE AND THE REASONS THEREFOR.
  THE  COMMISSION'S  DISPOSITION  SHALL  BE  REPORTED  IN  WRITING   AND
PUBLISHED  ON  ITS WEBSITE NO LATER THAN TEN DAYS AFTER SUCH DISPOSITION

S. 7852                            13

UNLESS REQUESTED BY A LAW ENFORCEMENT AGENCY TO SUSPEND THE COMMISSION'S
ACTION BECAUSE OF AN ONGOING CRIMINAL INVESTIGATION.
  15.  A copy of any notice of delinquency or substantial basis investi-
gation report shall be included in the reporting person's  file  and  be
available  for  public inspection and copying pursuant to the provisions
of this section.
  16. Upon written request from any person who is subject to the  juris-
diction  of  the  commission  and  the requirements of sections seventy-
three, seventy-three-a or  seventy-four  of  the  public  officers  law,
[other  than  members  of  the legislature, candidates for member of the
legislature and employees of  the  legislature,]  the  commission  shall
render written advisory opinions on the requirements of said provisions.
An  opinion  rendered  by  the  commission  OR BY THE FORMER LEGISLATIVE
ETHICS COMMISSION, until and unless amended or revoked, shall be binding
on the commission in any subsequent proceeding concerning the person who
requested the opinion and who acted in good faith, unless material facts
were omitted or misstated by the person in the request for  an  opinion.
Such  opinion  may also be relied upon by such person, and may be intro-
duced and shall be a defense, in any  criminal  or  civil  action.  Such
requests shall be confidential but the commission may publish such opin-
ions provided that the name of the requesting person and other identify-
ing details shall not be included in the publication.
  17.  In  addition to any other powers and duties specified by law, the
commission shall have the power and duty to:
  (a) Promulgate rules concerning restrictions on outside activities and
limitations on the receipt of gifts and honoraria by persons subject  to
its jurisdiction, provided, however, a violation of such rules in and of
itself  shall not be punishable pursuant to subdivision fourteen of this
section unless the conduct constituting the  violation  would  otherwise
constitute a violation of this section; and
  (b) Administer and enforce all the provisions of this section; and
  (c) Conduct any investigation necessary to carry out the provisions of
this section. Pursuant to this power and duty, the commission may admin-
ister oaths or affirmations, subpoena witnesses, compel their attendance
and  require  the  production  of any books or records which it may deem
relevant or material;
  18. Within one hundred twenty days  of  the  effective  date  of  this
subdivision,  the  commission  shall  create  and  thereafter maintain a
publicly accessible website which shall  set  forth  the  procedure  for
filing  a  complaint  with  the  commission, and which shall contain the
documents identified in subdivision nineteen of this section, other than
financial disclosure statements filed by state officers or employees  or
legislative  employees,  and  any other records or information which the
commission determines to be appropriate.
  19. (a) Notwithstanding the provisions of article six  of  the  public
officers  law,  the only records of the commission which shall be avail-
able for public inspection and copying are:
  (1) the information set forth in  an  annual  statement  of  financial
disclosure filed pursuant to section seventy-three-a of the public offi-
cers  law except information deleted pursuant to paragraph (h) of subdi-
vision nine of this section;
  (2) notices of delinquency  sent  under  subdivision  twelve  of  this
section;
  (3)  notices  of  civil  assessments  imposed under this section which
shall include a description of the nature of the alleged wrongdoing, the

S. 7852                            14

procedural history of the complaint,  the  findings  and  determinations
made by the commission, and any sanction imposed;
  (4) the terms of any settlement or compromise of a complaint or refer-
ral which includes a fine, penalty or other remedy;
  (5)  those required to be held or maintained publicly available pursu-
ant to article one-A of the legislative law; and
  (6) substantial basis investigation reports issued by  the  commission
pursuant  to subdivision fourteen-a or fourteen-b of this section. [With
respect to reports concerning members of the legislature or  legislative
employees or candidates for member of the legislature, the joint commis-
sion  shall  not publicly disclose or otherwise disseminate such reports
except in conformance with the requirements of paragraph (b) of subdivi-
sion nine of section eighty of the legislative law.]
  (b) Notwithstanding the provisions of  article  seven  of  the  public
officers  law,  no  meeting or proceeding, including any such proceeding
contemplated under paragraph (h) or (i)  of  subdivision  nine  of  this
section,  of  the  commission  shall  be  open  to the public, except if
expressly provided otherwise by the commission  or  as  is  required  by
article one-A of the legislative law.
  (c)  Pending  any application for deletion or exemption to the commis-
sion, all information which is the subject or a part of the  application
shall  remain confidential. Upon an adverse determination by the commis-
sion, the reporting individual may request, and upon  such  request  the
commission  shall  provide, that any information which is the subject or
part of the application remain confidential for a period of thirty  days
following  notice of such determination. In the event that the reporting
individual resigns his office and holds no other office subject  to  the
jurisdiction of the commission, the information shall not be made public
and shall be expunged in its entirety.
  20.    THE  COMMISSION SHALL CREATE AND THEREAFTER MAINTAIN A PUBLICLY
ACCESSIBLE WEBSITE WHICH SHALL SET FORTH  THE  PROCEDURE  FOR  FILING  A
COMPLAINT WITH THE COMMISSION, AND WHICH SHALL CONTAIN ANY OTHER RECORDS
OR INFORMATION WHICH THE COMMISSION DETERMINES TO BE APPROPRIATE.
  21. If any part or provision of this section or the application there-
of  to  any  person  or organization is adjudged by a court of competent
jurisdiction to be unconstitutional or otherwise invalid, such  judgment
shall  not  affect or impair any other part or provision or the applica-
tion thereof to any other person or organization, but shall be  confined
in its operation to such part or provision.
  S  3.  Subdivision 5 of section 12 of the legislative law, as added by
chapter 141 of the laws of 1994, is amended to read as follows:
  5. Notwithstanding any provision of law to the contrary, services  and
expenses  of the legislative health service, legislative library, legis-
lative messenger service, [legislative ethics committee]  JOINT  COMMIS-
SION ON PUBLIC ETHICS, joint operations of the legislative task force on
demographic  research  and  reapportionment,  and  contributions  to the
national conference of state legislatures shall be payable  after  audit
by  and on the warrant of the comptroller upon vouchers certified by the
temporary president of the senate or his or her designee and the speaker
of the assembly or his or her designee.
  S 4.  Paragraph (a) of subdivision 1, the opening paragraph  of  para-
graph  (a)  and paragraph (c) of subdivision 6, the opening paragraph of
subparagraph (ii) of paragraph (b) and paragraph (g) of  subdivision  8,
and  subdivision  10 of section 73 of the public officers law, paragraph
(a) of subdivision 1 as amended by section 1 of part A of chapter 399 of
the laws of 2011, the opening paragraph of paragraph (a) of  subdivision

S. 7852                            15

6  as amended by section 3 of part A of chapter 399 of the laws of 2011,
paragraph (c) of subdivision 6 as amended by chapter 813 of the laws  of
1987,  the  opening  paragraph  of subparagraph (ii) of paragraph (b) of
subdivision  8  as amended by chapter 574 of the laws of 2011, paragraph
(g) of subdivision 8 as added by chapter 218 of the laws  of  1998,  and
subdivision  10 as amended by section 13 of part A of chapter 399 of the
laws of 2011, are amended to read as follows:
  (a) The term "compensation" shall mean any money, thing  of  value  or
financial  benefit  conferred  in  return for services rendered or to be
rendered. With regard to matters undertaken by a  firm,  corporation  or
association, compensation shall mean net revenues, as defined in accord-
ance  with  generally  accepted  accounting principles as defined by the
joint commission on public ethics [or legislative ethics commission]  in
relation  to  persons  subject  to  [their respective jurisdictions] THE
JOINT COMMISSION'S JURISDICTION.
  Every legislative employee not subject to the  provisions  of  section
seventy-three-a  of  this chapter shall, on and after December fifteenth
and before the following January fifteenth, in each year, file with  the
joint  commission  on  public ethics [and the legislative ethics commis-
sion] a financial disclosure statement of
  (c) Any such legislative employee  who  knowingly  and  wilfully  with
intent  to deceive makes a false statement or gives information which he
knows to be false in any written statement required to be filed pursuant
to this subdivision, shall be assessed a civil penalty in an amount  not
to  exceed  ten thousand dollars. Assessment of a civil penalty shall be
made by the [legislative ethics committee] JOINT  COMMISSION  ON  PUBLIC
ETHICS  in  accordance with the provisions of subdivision [twelve] FOUR-
TEEN of section [eighty] NINETY-FOUR of the [legislative] EXECUTIVE law.
For a violation of this subdivision, the  [committee]  JOINT  COMMISSION
may,  in  lieu  of a civil penalty, refer a violation to the appropriate
prosecutor and upon conviction,  but  only  after  such  referral,  such
violation shall be punishable as a class A misdemeanor.
  The  provisions  of subparagraph (i) of this paragraph shall not apply
to any such officer or employee who at the time  of  or  prior  to  such
termination  had  served in a policymaking position as determined by the
appointing authority, which determination had been filed with the [state
ethics commission or the commission on public integrity]  JOINT  COMMIS-
SION  ON  PUBLIC  ETHICS,  provided that such officer or employee may so
appear or practice or receive such compensation with the prior  approval
of  the  [state ethics commission or the commission on public integrity]
JOINT COMMISSION ON PUBLIC ETHICS. In determining whether to grant  such
approval the [state ethics commission or the commission on public integ-
rity] JOINT COMMISSION ON PUBLIC ETHICS shall consider:
  (g)  Notwithstanding  the  provisions of subparagraphs (i) and (ii) of
paragraph (a) of this subdivision, a former state  officer  or  employee
may  contract individually, or as a member or employee of a firm, corpo-
ration or association, to render services to any state agency  when  the
agency  head certifies in writing to the [state ethics commission] JOINT
COMMISSION ON PUBLIC ETHICS that the services of such former officer  or
employee are required in connection with the agency's efforts to address
the state's year 2000 compliance problem.
  10.  Nothing  contained in this section, the judiciary law, the educa-
tion law or any other law or disciplinary rule  shall  be  construed  or
applied  to  prohibit any firm, association or corporation, in which any
present or former statewide elected official, state officer or employee,
or political party chairman, member of the  legislature  or  legislative

S. 7852                            16

employee  is  a  member, associate, retired member, of counsel or share-
holder, from appearing, practicing, communicating or otherwise rendering
services in relation to any matter before, or transacting business  with
a  state  agency,  or  a  city  agency with respect to a political party
chairman in a county wholly included in a city with a population of more
than one million, otherwise proscribed by this  section,  the  judiciary
law,  the  education  law  or  any  other  law or disciplinary rule with
respect to such official,  member  of  the  legislature  or  officer  or
employee,  or  political  party  chairman,  where such statewide elected
official, state officer or employee, member of the legislature or legis-
lative employee, or political party chairman does not share in  the  net
revenues,  as  defined  in accordance with generally accepted accounting
principles by the joint commission on public ethics [or by the  legisla-
tive  ethics committee] in relation to persons subject to [their respec-
tive jurisdictions] THE JOINT COMMISSION'S JURISDICTION, resulting ther-
efrom, or, acting in good faith, reasonably  believed  that  he  or  she
would  not  share  in the net revenues as so defined; nor shall anything
contained in this section, the judiciary law, the education law  or  any
other  law or disciplinary rule be construed to prohibit any firm, asso-
ciation or corporation in which any present or former statewide  elected
official,  member  of  the  legislature, legislative employee, full-time
salaried state officer or employee or state officer or employee  who  is
subject  to the provisions of section seventy-three-a of this article is
a member, associate, retired member, of  counsel  or  shareholder,  from
appearing,  practicing, communicating or otherwise rendering services in
relation to any matter before, or transacting business with,  the  court
of claims, where such statewide elected official, member of the legisla-
ture, legislative employee, full-time salaried state officer or employee
or state officer or employee who is subject to the provisions of section
seventy-three-a  of  this article does not share in the net revenues, as
defined in accordance with generally accepted accounting  principles  by
the  joint  commission  on  public  ethics [or by the legislative ethics
committee] in relation to persons subject to [their respective jurisdic-
tions] THE JOINT COMMISSION'S  JURISDICTION,  resulting  therefrom,  or,
acting in good faith, reasonably believed that he or she would not share
in the net revenues as so defined.
  S  5.  Paragraph (d) and (d-1) of subdivision 1, the opening paragraph
and subparagraphs (ii), (viii) and (ix) of paragraph (a) and  paragraphs
(c), (e), (f) and (g) of subdivision 2 and subdivision 4 of section 73-a
of  the public officers law, paragraph (d) of subdivision 1, the opening
paragraph and subparagraphs (ii), (viii) and (ix) of paragraph  (a)  and
paragraphs  (c),  (e), (f) and (g) of subdivision 2 and subdivision 4 as
amended and paragraph (d-1) of subdivision 1 as added by  section  5  of
part  A  of  chapter  399  of  the  laws of 2011, are amended to read as
follows:
  (d) The term "legislative employee" shall mean any officer or employee
of the legislature who receives annual compensation  in  excess  of  the
filing  rate  established by paragraph (l) below or who is determined to
hold a policy-making position by the appointing authority as  set  forth
in  a  written  instrument  which  shall  be filed with the [legislative
ethics commission and the] joint commission on public ethics.
  (d-1) A financial disclosure statement required  pursuant  to  section
seventy-three  of  this article and this section shall be deemed "filed"
with the joint commission on public ethics upon its filing,  in  accord-
ance with this section, [with the legislative ethics commission] for all
purposes  including, but not limited to, subdivision fourteen of section

S. 7852                            17

ninety-four of the executive law[, subdivision nine of section eighty of
the legislative law] and subdivision four of this section.
  Every statewide elected official, state officer or employee, member of
the  legislature,  legislative employee and political party chairman and
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 shall
file  such  statement,  ALONG  WITH  ANY  REQUESTS  FOR  EXEMPTIONS   OR
DELETIONS,  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], WHICH SHALL
MAKE 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:
  (ii)  a  person who is required to file an annual financial disclosure
statement with the joint commission on public ethics, and who is granted
an additional period of time within which to file such statement due  to
justifiable  cause  or undue hardship, in accordance with required rules
and regulations on the subject adopted pursuant to paragraph c of subdi-
vision nine of section ninety-four of the executive law shall file  such
statement  within the additional period of time granted[; and the legis-
lative ethics commission shall notify the  joint  commission  on  public
ethics of any extension granted pursuant to this paragraph];
  (viii)  a  candidate  substituted  for  another candidate, who fills a
vacancy in a party designation or in an independent  nomination,  caused
by declination, shall file such statement within ten days after the last
day allowed by law to file a certificate to fill a vacancy in such party
designation or independent nomination[;
  (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  pursuant  to
subparagraphs (v), (vi), (vii) and (viii) of this paragraph].
  (c)  If  the  reporting individual is a senator or member of assembly,
candidate for the senate or member of assembly or a legislative  employ-
ee,  [such  statement  shall  be  filed with both the legislative ethics
commission established by section eighty of the legislative law and  the
joint  commission on public ethics in accordance with paragraph (d-1) of
subdivision one of this section.  If  the  reporting  individual  is  a]
statewide  elected  official,  candidate for statewide elected office, a
state officer or employee or a political party chairman, such  statement
shall be filed with the joint commission on public ethics established by
section ninety-four of the executive law.
  (e)  Any  person required to file such statement who commences employ-
ment after May fifteenth of any year, MEMBERS OF THE LEGISLATURE, LEGIS-
LATIVE EMPLOYEES, and political party chairman shall file such statement
within thirty days after commencing employment or of taking the position
of political party chairman, as the case may be. [In the case of members
of the legislature and legislative employees, such statements  shall  be
filed  with  the  legislative ethics commission within thirty days after
commencing employment,  and  the  legislative  ethics  commission  shall
provide  such statements to the joint commission on public ethics within
forty-five days of receipt.]

S. 7852                            18

  (f) A person who may otherwise be required to file more than one annu-
al financial disclosure statement [with both  the  joint  commission  on
public ethics and the legislative ethics commission] in any one calendar
year  may  satisfy  such  requirement  by filing one such statement with
[either  body  and  by  notifying the other body of such compliance] THE
JOINT COMMISSION ON PUBLIC ETHICS.
  (g) A person who is employed in more than one employment capacity  for
one  or  more  employers  certain  of  whose  officers and employees are
subject to filing a financial disclosure statement [with the same ethics
commission, as the case may be,] and who  receives  distinctly  separate
payments  of  compensation  for  such employment shall be subject to the
filing requirements of this section if the aggregate annual compensation
for all such employment capacities is  in  excess  of  the  filing  rate
notwithstanding that such person would not otherwise be required to file
with  respect  to  any one particular employment capacity. [A person not
otherwise required to file a financial  disclosure  statement  hereunder
who  is  employed  by an employer certain of whose officers or employees
are subject to filing a financial disclosure statement  with  the  joint
commission  on  public  ethics  and  who is also employed by an employer
certain of whose officers or employees are subject to filing a financial
disclosure statement with the legislative ethics commission shall not be
subject to filing such statement with  either  such  commission  on  the
basis  that his aggregate annual compensation from all such employers is
in excess of the filing rate.]
  4. 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 this section shall be subject  to  a  civil
penalty in an amount not to exceed forty thousand dollars. Assessment of
a  civil  penalty  hereunder  shall  be  made by the joint commission on
public ethics [or by the legislative ethics commission, as the case  may
be,  with respect to persons subject to their respective jurisdictions].
The joint commission on public ethics  acting  pursuant  to  subdivision
fourteen of section ninety-four of the executive law [or the legislative
ethics  commission  acting  pursuant  to  subdivision  eleven of section
eighty of the legislative law, as the case may be,] may, in lieu  of  or
in  addition  to  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
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,
except that the appointing authority may impose disciplinary  action  as
otherwise  provided  by  law. The joint commission on public ethics [and
the legislative ethics commission] shall [each] be deemed to be an agen-
cy within the meaning of  article  three  of  the  state  administrative
procedure act and shall adopt rules governing the conduct of adjudicato-
ry  proceedings  and  appeals  relating  to  the assessment of the civil
penalties herein authorized. Such rules, which shall not be  subject  to
the  approval  requirements  of  the state administrative procedure act,
shall provide for due process procedural mechanisms substantially  simi-
lar  to  those  set forth in such article three but such mechanisms need
not be identical in terms or scope. Assessment of a civil penalty  shall

S. 7852                            19

be  final  unless  modified,  suspended or vacated within thirty days of
imposition and upon becoming final shall be subject  to  review  at  the
instance  of the affected reporting individual in a proceeding commenced
against the joint commission on public ethics [or the legislative ethics
commission], pursuant to article seventy-eight of the civil practice law
and rules.
  S  6.  Transfer  of  records.  The legislative ethics commission shall
deliver to the joint commission on  public  ethics  all  books,  papers,
records, and property as requested by the joint commission.
  S  7.  Continuity  of  authority. For the purpose of succession to all
functions, powers, duties and obligations transferred and  assigned  to,
devolved  upon and assumed by it pursuant to this act, the joint commis-
sion on public ethics shall be deemed and held to constitute the contin-
uation of the legislative ethics commission.
  S 8. Completion of unfinished business. Any business or  other  matter
undertaken  or commenced by the legislative ethics commission pertaining
to or connected with the functions, powers, obligations and duties here-
by transferred and assigned to the joint commission  on  public  ethics,
and  pending  on  the  effective  date  of this act may be conducted and
completed by the joint commission on public ethics in  the  same  manner
and  under  the same terms and conditions and with the same effect as if
conducted and completed by the former legislative ethics commission.
  S 9. Terms occurring in laws, contracts and other documents.  Whenever
the legislative ethics commission is referred to or  designated  in  any
law, contract or documents pertaining solely to those functions, powers,
obligations  and  duties  hereby  transferred  and assigned to the joint
commission on public ethics, such  reference  or  designation  shall  be
deemed to refer to the joint commission on public ethics.
  S  10.  Existing  rights  and remedies preserved. No existing right or
remedy of any character shall be lost, impaired or affected by reason of
this act.
  S 11. Pending actions and proceedings. No action or proceeding pending
at the time when this act shall take effect, brought by or  against  the
legislative  ethics  commission  shall  be affected by this act, but the
same may be prosecuted or defended in the name of the  joint  commission
on public ethics and upon application to the court, the joint commission
on public ethics shall be substituted as a party.
  S 12. Notwithstanding any contrary provision of the state finance law,
transfer  of  appropriations  heretofore  made to the legislative ethics
commission, all appropriations or  reappropriations  for  the  functions
herein transferred heretofore made to the legislative ethics commission,
or  segregated pursuant to law, to the extent of remaining unexpended or
unencumbered balances thereof,  whether  allocated  or  unallocated  and
whether  obligated  or  unobligated, are hereby transferred to the joint
commission on public ethics to the extent necessary  to  carry  out  its
functions,  powers and duties subject to the approval of the director of
the budget for the same purposes for which  originally  appropriated  or
reappropriated and shall be payable on vouchers certified or approved by
the  joint commission on public ethics on audit and warrant of the comp-
troller.
  S 13. This act shall take effect January 1,  2013  provided,  however,
that the amendments to paragraph (i-1) of subdivision 9 and subparagraph
1  of paragraph (a) of subdivision 19 of section 94 of the executive law
made by section two of this act, shall take effect on the same date  and
in  the  same manner as subdivision 3 of section 22 of part A of chapter
399 of the laws of 2011 takes effect.