S T A T E O F N E W Y O R K
________________________________________________________________________
5824--A
2015-2016 Regular Sessions
I N A S S E M B L Y
March 5, 2015
___________
Introduced by M. of A. SANTABARBARA, WOERNER, RAIA, GUNTHER, KEARNS,
LUPINACCI -- Multi-Sponsored by -- M. of A. GLICK -- read once and
referred to the Committee on Governmental Operations -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the legislative law, in relation to prohibiting members
of the legislature from receiving certain income
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The legislative law is amended by adding a new section 5-b
to read as follows:
S 5-B. PROHIBITION ON OUTSIDE EARNED INCOME FOR MEMBERS. 1. STARTING
IN CALENDAR YEAR TWO THOUSAND SEVENTEEN, A MEMBER OF THE LEGISLATURE MAY
NOT HAVE OUTSIDE EARNED INCOME ATTRIBUTABLE TO SUCH YEAR WHICH EXCEEDS
FIFTEEN PERCENT OF THE GROSS ANNUAL SALARY OF MEMBERS OF THE LEGISLA-
TURE, PURSUANT TO SECTION FIVE OF THIS ARTICLE.
2. A. FOR THE PURPOSES OF THIS SECTION, THE TERM "OUTSIDE EARNED
INCOME" INCLUDES, BUT IS NOT LIMITED TO, WAGES, SALARIES, FEES, AND
OTHER FORMS OF COMPENSATION FOR SERVICES ACTUALLY RENDERED.
B. FOR THE PURPOSES OF THIS SECTION, THE TERM "OUTSIDE EARNED INCOME"
DOES NOT INCLUDE:
(1) SALARY, BENEFITS, AND ALLOWANCES PAID BY NEW YORK STATE;
(2) INCOME ATTRIBUTABLE TO SERVICE WITH THE MILITARY RESERVES OR
NATIONAL GUARD;
(3) INCOME FROM PENSIONS AND OTHER CONTINUING BENEFITS ATTRIBUTABLE TO
PREVIOUS EMPLOYMENT OR SERVICES;
(4) INCOME FROM INVESTMENT ACTIVITIES, WHERE THE MEMBER'S SERVICES ARE
NOT A MATERIAL FACTOR IN THE PRODUCTION OF INCOME;
(5) INCOME FROM A TRADE OR BUSINESS IN WHICH THE MEMBER OR THEIR FAMI-
LY HOLDS A CONTROLLING INTEREST, WHERE THE MEMBER'S SERVICES ARE NOT A
MATERIAL FACTOR IN THE PRODUCTION OF INCOME;
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09298-02-5
A. 5824--A 2
(6) COPYRIGHT ROYALTIES, FEES, AND THEIR FUNCTIONAL EQUIVALENT, FROM
THE USE OR SALE OF COPYRIGHT, PATENT AND SIMILAR FORMS OF INTELLECTUAL
PROPERTY RIGHTS, WHEN RECEIVED FROM ESTABLISHED USERS OR PURCHASERS OF
THOSE RIGHTS; AND
(7) COMPENSATION FOR SERVICES ACTUALLY RENDERED PRIOR TO JANUARY
FIRST, TWO THOUSAND SEVENTEEN, OR PRIOR TO BEING SWORN IN AS A MEMBER OF
THE LEGISLATURE.
3. NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW TO THE CONTRARY,
MEMBERS OF THE LEGISLATURE ARE PROHIBITED FROM:
A. RECEIVING COMPENSATION FOR AFFILIATING WITH OR BEING EMPLOYED BY A
FIRM, PARTNERSHIP, ASSOCIATION, CORPORATION, OR OTHER ENTITY THAT
PROVIDES PROFESSIONAL SERVICES INVOLVING A FIDUCIARY RELATIONSHIP,
EXCEPT FOR THE PRACTICE OF MEDICINE;
B. PERMITTING THEIR NAME TO BE USED BY SUCH A FIRM, PARTNERSHIP, ASSO-
CIATION, CORPORATION, OR OTHER ENTITY;
C. RECEIVING COMPENSATION FOR PRACTICING A PROFESSION THAT INVOLVES A
FIDUCIARY RELATIONSHIP EXCEPT FOR THE PRACTICE OF MEDICINE;
D. RECEIVING COMPENSATION AS AN OFFICER OR MEMBER OF THE BOARD OF AN
ASSOCIATION, CORPORATION, OR OTHER ENTITY;
E. RECEIVING COMPENSATION FOR TEACHING, WITHOUT PRIOR NOTIFICATION TO
AND APPROVAL FROM THE LEGISLATIVE ETHICS COMMISSION;
F. RECEIVING ADVANCE PAYMENTS ON COPYRIGHT ROYALTIES, FEES, AND THEIR
FUNCTIONAL EQUIVALENTS.
4. A MEMBER OF THE LEGISLATURE WHO KNOWINGLY AND WILLFULLY VIOLATES
THE PROVISIONS OF THIS SECTION SHALL BE SUBJECT TO A CIVIL PENALTY IN AN
AMOUNT NOT TO EXCEED FORTY THOUSAND DOLLARS. ASSESSMENT OF A CIVIL
PENALTY SHALL BE MADE BY THE LEGISLATIVE ETHICS COMMISSION. THE LEGISLA-
TIVE ETHICS COMMISSION, ACTING PURSUANT TO SUBDIVISION ELEVEN OF SECTION
EIGHTY OF THIS CHAPTER, MAY, IN LIEU OF OR IN ADDITION TO A CIVIL PENAL-
TY, 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.
S 2. Paragraph (a) of subdivision 9 of section 80 of the legislative
law, as amended by section 9 of part A of chapter 399 of the laws of
2011, is amended to read as follows:
(a) An individual subject to the jurisdiction of the commission with
respect to the imposition of penalties who knowingly and intentionally
violates the provisions of subdivisions two through five-a, seven,
eight, twelve, fourteen or fifteen of section seventy-three of the
public officers law OR SECTION FIVE-B OF THIS CHAPTER 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 individ-
ual 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 inten-
tionally violates the provisions of paragraph a, b, c, d, e, g, or i 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 thou-
sand dollars and 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 seriousness of the violation,
A. 5824--A 3
the amount of gain to the individual and whether the individual previ-
ously 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 seven-
ty-three or section seventy-four of the public officers law, the legis-
lative ethics commission 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. Where the commission finds suffi-
cient cause, it shall refer such matter to the appropriate prosecutor. 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 crim-
inal 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 disciplinary action as otherwise provided by law. The legis-
lative ethics 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 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. Such rules, which shall not be
subject to the promulgation and hearing requirements of the state admin-
istrative procedure act, shall provide for due process procedural mech-
anisms 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 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 3. This act shall take effect January 1, 2017.