S T A T E O F N E W Y O R K
________________________________________________________________________
8646
I N A S S E M B L Y
January 7, 2016
___________
Introduced by M. of A. KOLB -- read once and referred to the Committee
on Governmental Operations
AN ACT to amend the legislative law, in relation to prohibiting or
limiting outside income for legislative leaders and committee chairs
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 LEGISLATIVE LEADERS
AND COMMITTEE CHAIRPERSONS. 1. STARTING IN CALENDAR YEAR TWO THOUSAND
SEVENTEEN, A MEMBER SERVING AS TEMPORARY PRESIDENT OF THE SENATE, MINOR-
ITY LEADER OF THE SENATE, SPEAKER OF THE ASSEMBLY, MINORITY LEADER OF
THE ASSEMBLY, OR OTHER LEGISLATIVE COALITION LEADER MAY NOT HAVE OUTSIDE
EARNED INCOME.
2. STARTING IN CALENDAR YEAR TWO THOUSAND SEVENTEEN, A MEMBER SERVING
AS CHAIRPERSON OF ANY SENATE OR ASSEMBLY COMMITTEE MAY NOT HAVE OUTSIDE
EARNED INCOME IN ANY CALENDAR YEAR WHICH EXCEEDS FIFTEEN PERCENT OF THE
GROSS ANNUAL SALARY OF THE OFFICE OF GOVERNOR.
3. A. FOR THE PURPOSES OF THIS SECTION, THE TERM "OUTSIDE EARNED
INCOME" SHALL MEAN ANY WAGES, SALARIES, FEES, OR ANY OTHER FORMS OF
COMPENSATION PAID, OR TO BE PAID, FOR SERVICES PERSONALLY RENDERED.
B. FOR THE PURPOSES OF THIS SECTION, THE TERM "OUTSIDE EARNED INCOME"
DOES NOT INCLUDE:
(1) AN INDIVIDUAL'S LEGISLATIVE SALARY, OR ANY ALLOWANCES OR BENEFITS
PROVIDED BY LAW;
(2) INCOME FROM PENSIONS AND OTHER CONTINUING BENEFITS ATTRIBUTABLE TO
PREVIOUS EMPLOYMENT OR SERVICES;
(3) INCOME ATTRIBUTABLE TO SERVICE WITH THE MILITARY RESERVES OR
NATIONAL GUARD;
(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.
A LBD13298-01-5
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(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 PERSONALLY RENDERED PRIOR TO JANUARY
FIRST, TWO THOUSAND SEVENTEEN, OR PRIOR TO BEING ELECTED OR APPOINTED AS
A LEGISLATIVE LEADER OR COMMITTEE CHAIRPERSON.
4. A. A MEMBER OF THE LEGISLATURE WHO KNOWINGLY AND WILLFULLY VIOLATES
THE PROVISIONS OF THIS SECTION SHALL FORFEIT HIS OR HER LEADERSHIP POSI-
TION OR CHAIRMANSHIP; AND SHALL BE SUBJECT TO A CIVIL PENALTY IN AN
AMOUNT NOT TO EXCEED FORTY THOUSAND DOLLARS, PLUS THE VALUE OF ANY
COMPENSATION RECEIVED AS A RESULT OF SUCH VIOLATION. ANY SUCH FINE
LEVIED PURSUANT TO THIS SECTION SHALL BE PAID TO THE GENERAL FUND OF NEW
YORK STATE.
B. ASSESSMENT OF A CIVIL PENALTY PURSUANT TO THIS SECTION SHALL BE
MADE BY THE LEGISLATIVE ETHICS COMMISSION. THE LEGISLATIVE ETHICS
COMMISSION, ACTING PURSUANT TO SUBDIVISION ELEVEN OF SECTION EIGHTY OF
THIS CHAPTER, SHALL, IN ADDITION TO A CIVIL PENALTY, REFER A VIOLATION
OF THIS SECTION TO THE APPROPRIATE LAW ENFORCEMENT AGENCY UPON FINDING
OF ANY OTHER CRIMINAL ACTIVITY.
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,
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. 8646 3
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.