S T A T E O F N E W Y O R K
________________________________________________________________________
3746
2017-2018 Regular Sessions
I N A S S E M B L Y
January 30, 2017
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Introduced by M. of A. CARROLL -- read once and referred to the Commit-
tee on Governmental Operations
AN ACT to amend the business corporation law, in relation to prohibiting
gifts to public officials
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The business corporation law is amended by adding a new
section 204 to read as follows:
§ 204. PROHIBITION OF GIFTS TO PUBLIC OFFICIALS.
(A) FOR THE PURPOSES OF THIS SECTION:
(1) THE TERMS "GIFT" AND "PUBLIC OFFICIAL" SHALL HAVE THE SAME MEANING
AS THOSE TERMS ARE DEFINED IN THE LEGISLATIVE LAW, EXCEPT THAT THE TERM
"GIFT", IN ADDITION TO THE DEFINITION SET FORTH IN THE LEGISLATIVE LAW,
SHALL INCLUDE ANY PRIVILEGES, BENEFITS OR RIGHTS THAT ARE OFFERED,
PROVIDED OR MADE AVAILABLE TO A PUBLIC OFFICIAL BUT NOT TO THE GENERAL
PUBLIC.
(2) THE TERM "PUBLIC FINANCING" SHALL INCLUDE, BUT NOT BE LIMITED TO,
STATE OR LOCAL GRANTS, SUBSIDIES, TAX EXEMPTIONS OR CREDITS, TAX ABATE-
MENTS, PAYMENTS IN LIEU OF TAXES, AND ANY DEBT ISSUED BY A STATE OR
LOCAL AGENCY, A PUBLIC AUTHORITY OR A PUBLIC BENEFIT CORPORATION.
(B)(1) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, NO DOMES-
TIC CORPORATION, FOREIGN CORPORATION, OR ANY SUBSIDIARY OF SUCH CORPO-
RATION WHICH (I) IS AUTHORIZED TO DO OR DOES BUSINESS IN THIS STATE AND
(II) RECEIVES DIRECTLY OR INDIRECTLY ANY FORM OR TYPE OF PUBLIC FINANC-
ING SHALL OFFER, GIVE OR PROVIDE A GIFT TO ANY PUBLIC OFFICIAL.
(2) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PROHIBIT OR PREVENT
A CORPORATION FROM OFFERING, GIVING OR PROVIDING GOODS OR SERVICES TO A
PUBLIC OFFICIAL ON THE SAME TERMS AND CONDITIONS AS GOODS OR SERVICES
ARE OFFERED OR PROVIDED TO THE GENERAL PUBLIC.
(C)(1) ANY CORPORATION THAT VIOLATES ANY PROVISIONS OF THIS SECTION
AND
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08462-01-7
A. 3746 2
(I) GENERATES ANNUAL GROSS REVENUES OF LESS THAN ONE MILLION DOLLARS
SHALL BE SUBJECT TO A FINE OF UP TO FIVE THOUSAND DOLLARS;
(II) GENERATES ANNUAL GROSS REVENUES OF BETWEEN ONE AND FIVE MILLION
DOLLARS SHALL BE SUBJECT TO A FINE OF UP TO TEN THOUSAND DOLLARS BUT NOT
LESS THAN FIVE THOUSAND DOLLARS;
(III) GENERATES ANNUAL GROSS REVENUES OF MORE THAN FIVE MILLION
DOLLARS BUT LESS THAN TEN MILLION DOLLARS SHALL BE SUBJECT TO A FINE OF
UP TO FIFTY THOUSAND DOLLARS BUT NOT LESS THAN TEN THOUSAND DOLLARS; AND
(IV) GENERATES ANNUAL GROSS REVENUES OF MORE THAN TEN MILLION DOLLARS
SHALL BE SUBJECT TO A FINE OF UP TO TWO HUNDRED AND FIFTY THOUSAND
DOLLARS BUT NOT LESS THAN FIFTY THOUSAND DOLLARS;
(2) ANY DIRECTOR OR OFFICER WHO KNOWINGLY VIOLATES THE PROVISIONS OF
THIS SECTION SHALL BE GUILTY OF A CLASS A MISDEMEANOR, AND SHALL BE
SUBJECT TO A MONETARY FINE OF UP TO SIX TIMES THE VALUE OF THE GIFT.
(D) THE NEW YORK STATE ATTORNEY GENERAL SHALL BE EMPOWERED AND AUTHOR-
IZED TO ENFORCE COMPLIANCE WITH THIS SECTION, INCLUDING IMPOSING THE
APPROPRIATE PENALTIES ON THOSE PARTIES WHO ARE FOUND TO HAVE VIOLATED
THE PROVISIONS OF THIS SECTION.
§ 2. This act shall take effect immediately.