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