S T A T E O F N E W Y O R K
________________________________________________________________________
5002
2017-2018 Regular Sessions
I N A S S E M B L Y
February 6, 2017
___________
Introduced by M. of A. O'DONNELL, LIFTON -- read once and referred to
the Committee on Governmental Operations
AN ACT to amend the legislative law, in relation to compensation of
members of the legislature and prohibiting members of the legislature
from receiving certain outside income
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The opening paragraph of subdivision 1 of section 5 of the
legislative law, as amended by chapter 635 of the laws of 1998, is
amended to read as follows:
Effective January first, [nineteen hundred ninety-nine] TWO THOUSAND
EIGHTEEN, each member of the legislature shall receive a salary [of
seventy-nine thousand five hundred dollars per annum] IN AN AMOUNT EQUAL
TO THE SALARY OF THE MEMBERS OF THE UNITED STATES CONGRESS. Such salary
of a member of the legislature shall be payable in twenty-six bi-weekly
installments provided, however, that if legislative passage of the budg-
et as defined in subdivision three of this section has not occurred
prior to the first day of any fiscal year, the net amount of any such
bi-weekly salary installment payments to be paid on or after such day
shall be withheld and not paid until such legislative passage of the
budget has occurred whereupon bi-weekly salary installment payments
shall resume and an amount equal to the accrued, withheld and unpaid
installments shall be promptly paid to each member.
§ 2. The legislative law is amended by adding a new section 5-b to
read as follows:
§ 5-B. PROHIBITION ON OUTSIDE EARNED INCOME FOR MEMBERS. 1. STARTING
IN CALENDAR YEAR TWO THOUSAND EIGHTEEN, 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.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09470-01-7
A. 5002 2
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;
(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 EIGHTEEN, 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.
§ 3. Subdivision 7 of section 80 of the legislative law is amended by
adding a new paragraph f-1 to read as follows:
F-1. PROMULGATE GUIDELINES FOR MEMBERS OF THE LEGISLATURE TO REQUEST
PERMISSION FROM THE COMMISSION TO ACCEPT COMPENSATION FOR TEACHING, AND
PROMULGATE GUIDELINES FOR THE COMMISSION TO EVALUATE AND ISSUE A DETER-
MINATION FOR SUCH REQUESTS;
§ 4. 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,
A. 5002 3
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 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.
§ 5. This act shall take effect January 1, 2018.