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.