NY State Senate Bill 2017-S2742

Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to finance
Jan 17, 2017	referred to finance

2017-S2742 (ACTIVE) - Details

Current Committee:: Senate Finance
Law Section:: Public Officers Law
Laws Affected:: Amd §73-a, Pub Off L; amd §94, Exec L
Versions Introduced in 2015-2016 Legislative Session:: S3495

2017-S2742 (ACTIVE) - Summary

Relates to the business or professional activities of state employees; requires individuals or the firms or corporations with which they practice to report the names of clients and customers and nature of services rendered who they receive more than $10,000 from during the reporting period when directly connected to certain state business.

2017-S2742 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S2742

 TITLE OF BILL :  An act to amend the public officers law and the
executive law, in relation to the business or professional activities
of state employees

 PURPOSE :

To increase the amount of transparency from and disclosure by
legislators and other public officers in their reporting of income
earned outside of the legislature.

 SUMMARY OF PROVISIONS :

The bill makes changes to the form prescribed under the public
officers law for the annual disclosure of financial information by
certain public officers by requiring broader disclosure of large
clients and customers, by both legislators and their firms, when those
clients have business before the State. The additional information
required to be provided in the annual statement form would need to be
provided by every reporting individual who personally, or whose firm,
earned more than $10,000 during the reporting period for which
services, generally, were rendered in relation to a matter or matters
before the State of New York. The annual statement of financial
disclosure would be changed further so that the expanded disclosure
requirement would apply not just to members of the legislature and

other public officers who are either lawyers, real estate agents or
brokers, or lobbyists, but, instead, to any and every member of the
state legislature and other public officers who exceeded the outside
earning threshold. In addition to requiring greater disclosure of
outside income received by members of the legislature, the bill
further requires individuals to report, with greater specificity than
required under current law, the identity of their outside client(s)
and the nature of the services rendered on behalf of the outside
client(s), along with a particularized disclosure of the value of the
outside income or fees earned by the public officer or his or her
firm.

 EXISTING LAW :

Subdivision 3 of section 73-a of the public officers law provides for
the information required to be contained in the annual statement of
financial disclosure.

 JUSTIFICATION :

In its December 2013 preliminary report to the governor, the
Commission to Investigate Public Corruption (the "Moreland
Commission") reflected on its investigation of the influence of money
in politics and the need for greater transparency and accountability
in the disclosure of outside income by legislator. Furthering the
public trust, promoting democracy and the accountability of elected
officials to the voters required robust reform of the financial
disclosure laws under which members of the legislature currently
operate.

This bill incorporates recommendations made by the Moreland
Commission, in its December 2013 report, to increase the required
disclosure for elected officials, in order to cast aside the
corruption and appearance of corruption that thrive "when actual and
potential conflicts of interest are shrouded in darkness." While, as
the Moreland Commission found, "many legislators earn substantial
outside income, but disclose only a general description of what they
do," this bill places some sunshine on that dark income by requiring
broader disclosure of large clients and the work performed to earn the

outside income or fees, both by legislators and their firms, when
those clients or customers have business before the State of New York.

 LEGISLATIVE HISTORY :

2015-16: S.3495 Referred to Finance.

 FISCAL IMPLICATIONS :

None to the State.

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S2742 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2742
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 17, 2017
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 AN ACT to amend the public  officers  law  and  the  executive  law,  in
   relation to the business or professional activities of state employees
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 8 of subdivision 3 of section 73-a of the  public
 officers  law,  as  amended by section 6 of part K of chapter 286 of the
 laws of 2016, is amended to read as follows:
   8.  (a) [If the reporting individual practices law, is licensed by the
 department of state as a real estate broker  or  agent  or  practices  a
 profession licensed by the department of education, or works as a member
 or  employee of a firm required to register pursuant to section one-e of
 the legislative law as a lobbyist, describe the  services  rendered  for
 which compensation was paid including a general description of the prin-
 cipal subject areas of matters undertaken by such individual and princi-
 pal  duties performed. Specifically state whether the reporting individ-
 ual provides services directly to  clients.  Additionally,  if  such  an
 individual  practices  with  a  firm  or corporation and is a partner or
 shareholder of the firm or corporation, give a  general  description  of
 principal  subject  areas  of  matters undertaken by such firm or corpo-
 ration.

     ____________________________________________________________________
     ____________________________________________________________________
     ____________________________________________________________________
     ____________________________________________________________________
     __________________________________________________________________ ]

 IDENTIFY AND SPECIFICALLY DESCRIBE THE SOURCE,  INCLUDING  THE  NAME  OF
 EACH  CLIENT OR CUSTOMER, AND THE NATURE OF ANY INCOME OR FEES EARNED BY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00174-01-7

 S. 2742                             2
 
 THE REPORTING INDIVIDUAL OR,  IN  THE  CASE  OF  A  CLIENT  OR  CUSTOMER
 REFERRED  TO  A  FIRM OR CORPORATION WITH WHICH THE REPORTING INDIVIDUAL
 PRACTICES, THE FIRM OR CORPORATION, IN  EXCESS  OF  $10,000  DURING  THE
 REPORTING PERIOD FOR SUCH SERVICES RENDERED IN DIRECT CONNECTION WITH:
   (I) A PROPOSED BILL OR RESOLUTION IN THE SENATE OR ASSEMBLY DURING THE
 REPORTING PERIOD;
   (II)  A  CONTRACT IN AN AMOUNT TOTALING $50,000 OR MORE FROM THE STATE
 OR ANY STATE AGENCY FOR SERVICES, MATERIALS OR PROPERTY;
   (III) A GRANT OF $25,000 OR MORE FROM THE STATE OR  ANY  STATE  AGENCY
 DURING THE REPORTING PERIOD;
   (IV)  A  GRANT  OBTAINED  THROUGH  A LEGISLATIVE INITIATIVE DURING THE
 REPORTING PERIOD; OR
   (V) A CASE, PROCEEDING, APPLICATION OR OTHER  MATTER  THAT  IS  NOT  A
 MINISTERIAL MATTER BEFORE A STATE AGENCY DURING THE REPORTING PERIOD.
   ANY  DESCRIPTION OF THE NATURE OF INCOME OR FEES EARNED BY THE REPORT-
 ING INDIVIDUAL, OR THE FIRM OR CORPORATION WITH  WHICH  SUCH  INDIVIDUAL
 PRACTICES,  SHALL  INCLUDE  A  CLEAR  AND  COMPLETE  EXPLANATION  OF THE
 SERVICES RENDERED IN EXCHANGE FOR THE  INCOME  OR  FEES  EARNED  BY  THE
 REPORTING  INDIVIDUAL,  OR  BY  THE  FIRM OR CORPORATION WITH WHICH SUCH
 INDIVIDUAL PRACTICES.
   FOR PURPOSES OF THIS QUESTION, "REFERRED TO  A  FIRM  OR  CORPORATION"
 SHALL  MEAN:  HAVING INTENTIONALLY AND KNOWINGLY TAKEN A SPECIFIC ACT OR
 SERIES OF ACTS TO INTENTIONALLY PROCURE FOR THE  REPORTING  INDIVIDUAL'S
 FIRM  OR  CORPORATION  OR  KNOWINGLY  SOLICIT OR DIRECT TO THE REPORTING
 INDIVIDUAL'S FIRM OR CORPORATION IN WHOLE OR SUBSTANTIAL PART, A  PERSON
 OR  ENTITY  THAT  BECOMES  A  CLIENT OF THAT FIRM OR CORPORATION FOR THE
 PURPOSES OF REPRESENTATION FOR A MATTER AS DEFINED IN SUBPARAGRAPHS  (I)
 THROUGH  (V)  OF THIS PARAGRAPH, AS A RESULT OF SUCH PROCUREMENT, SOLIC-
 ITATION OR DIRECTION OF THE REPORTING INDIVIDUAL. A REPORTING INDIVIDUAL
 NEED NOT DISCLOSE ACTIVITIES PERFORMED WHILE LAWFULLY ACTING PURSUANT TO
 PARAGRAPHS (C), (D), (E) AND (F) OF SUBDIVISION SEVEN OF SECTION  SEVEN-
 TY-THREE  OF  THIS  ARTICLE. THE DISCLOSURE REQUIREMENT IN THIS QUESTION
 SHALL NOT REQUIRE DISCLOSURE OF CLIENTS OR CUSTOMERS  RECEIVING  MEDICAL
 OR  DENTAL  SERVICES OR BROKERING SERVICES FROM THE REPORTING INDIVIDUAL
 OR HIS OR HER FIRM. THE  REPORTING  INDIVIDUAL  NEED  NOT  IDENTIFY  ANY
 CLIENT  TO  WHOM  HE  OR SHE OR HIS OR HER FIRM PROVIDED LEGAL REPRESEN-
 TATION WITH RESPECT TO THE INVESTIGATION OR PROSECUTION BY LAW  ENFORCE-
 MENT  AUTHORITIES,  BANKRUPTCY,  OR  DOMESTIC  RELATIONS  MATTERS.  WITH
 RESPECT TO CLIENTS REPRESENTED IN OTHER MATTERS, WHERE DISCLOSURE  OF  A
 CLIENT'S  IDENTITY  IS  LIKELY  TO  CAUSE HARM, THE REPORTING INDIVIDUAL
 SHALL REQUEST AN EXEMPTION FROM THE JOINT COMMISSION PURSUANT  TO  PARA-
 GRAPH  (I-1) OF SUBDIVISION NINE OF SECTION NINETY-FOUR OF THE EXECUTIVE
 LAW.
 
 NAME OF CLIENT/     ADDRESS        NATURE OF SERVICES  CATEGORY OF
 CUSTOMER                           RENDERED            VALUE OF
                                                        EARNED
                                                        INCOME/FEES
                                                        (IN TABLE II)
 
 ________________________________________________________________________
 ________________________________________________________________________
 ________________________________________________________________________
 ________________________________________________________________________
 ________________________________________________________________________

 S. 2742                             3
 
   (b) [APPLICABLE ONLY TO NEW CLIENTS OR CUSTOMERS FOR WHOM SERVICES ARE
 PROVIDED ON OR AFTER JULY FIRST, TWO THOUSAND TWELVE AND BEFORE DECEMBER
 THIRTY-FIRST, TWO THOUSAND FIFTEEN, OR  FOR  NEW  MATTERS  FOR  EXISTING
 CLIENTS OR CUSTOMERS WITH RESPECT TO THOSE SERVICES THAT ARE PROVIDED ON
 OR   AFTER   JULY   FIRST,  TWO  THOUSAND  TWELVE  AND  BEFORE  DECEMBER
 THIRTY-FIRST, TWO THOUSAND FIFTEEN:
   If the reporting individual personally provides services to any person
 or entity, or works as a member or employee of a partnership  or  corpo-
 ration  that  provides  such  services  (referred  to  hereinafter  as a
 "firm"), then identify each client or customer  to  whom  the  reporting
 individual personally provided services, or who was referred to the firm
 by  the  reporting individual, and from whom the reporting individual or
 his or her firm earned fees in excess of $10,000  during  the  reporting
 period for such services rendered in direct connection with:
   (i) A contract in an amount totaling $50,000 or more from the state or
 any state agency for services, materials, or property;
   (ii)  A  grant  of  $25,000 or more from the state or any state agency
 during the reporting period;
   (iii) A grant obtained through a  legislative  initiative  during  the
 reporting period; or
   (iv)  A  case,  proceeding,  application or other matter that is not a
 ministerial matter before a state agency during the reporting period.
   For purposes of this question, "referred  to  the  firm"  shall  mean:
 having  intentionally  and  knowingly  taken a specific act or series of
 acts to intentionally procure for the  reporting  individual's  firm  or
 knowingly  solicit or direct to the reporting individual's firm in whole
 or substantial part, a person or entity that becomes a  client  of  that
 firm  for  the  purposes  of  representation  for a matter as defined in
 subparagraphs (i) through (iv) of this paragraph, as the result of  such
 procurement,  solicitation  or  direction of the reporting individual. A
 reporting  individual  need  not  disclose  activities  performed  while
 lawfully acting pursuant to paragraphs (c), (d), (e) and (f) of subdivi-
 sion seven of section seventy-three of this article.
   The  disclosure requirement in this question shall not require disclo-
 sure of clients or  customers  receiving  medical  or  dental  services,
 mental  health  services, residential real estate brokering services, or
 insurance brokering services from the reporting individual or his or her
 firm. The reporting individual need not identify any client to  whom  he
 or  she or his or her firm provided legal representation with respect to
 investigation or prosecution by law enforcement authorities, bankruptcy,
 or domestic relations matters. With respect to  clients  represented  in
 other  matters,  where  disclosure  of  a client's identity is likely to
 cause harm, the reporting individual shall request an exemption from the
 joint commission pursuant to paragraph  (i-1)  of  subdivision  nine  of
 section  ninety-four  of  the  executive  law, provided, however, that a
 reporting individual who first enters public office  after  July  first,
 two  thousand  twelve, need not report clients or customers with respect
 to matters for which the reporting individual or his  or  her  firm  was
 retained prior to entering public office.
 Client                                     Nature of Services Provided
 ________________________________________________________________________
 ________________________________________________________________________
 ________________________________________________________________________
 ________________________________________________________________________
 ________________________________________________________________________

 S. 2742                             4

   (b-1)  APPLICABLE  ONLY  TO NEW CLIENTS OR CUSTOMERS FOR WHOM SERVICES
 ARE PROVIDED ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND FIFTEEN, OR
 FOR NEW MATTERS FOR EXISTING CLIENTS OR CUSTOMERS WITH RESPECT TO  THOSE
 SERVICES  THAT ARE PROVIDED ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOU-
 SAND  FIFTEEN  (FOR  PURPOSES  OF  THIS  QUESTION, "SERVICES" SHALL MEAN
 CONSULTATION, REPRESENTATION, ADVICE OR OTHER SERVICES):
   If the reporting individual receives income from employment reportable
 in question 8(a) and personally provides services to any person or enti-
 ty, or works as a member or employee of  a  partnership  or  corporation
 that  provides  such services (referred to hereinafter as a "firm"), the
 reporting individual shall identify each client or customer to whom  the
 reporting  individual  personally provided services, or who was referred
 to the firm by the reporting individual, and  from  whom  the  reporting
 individual  or  his  or her firm earned fees in excess of $10,000 during
 the reporting period in direct connection with:
   (i) A contract in an amount totaling $10,000 or more from the state or
 any state agency for services, materials, or property;
   (ii) A grant of $10,000 or more from the state  or  any  state  agency
 during the reporting period;
   (iii)  A  grant  obtained  through a legislative initiative during the
 reporting period; or
   (iv) A case, proceeding, application or other matter  that  is  not  a
 ministerial matter before a state agency during the reporting period.
   For  such  services  rendered  by the reporting individual directly to
 each such client, describe each matter that  was  the  subject  of  such
 representation, the services actually provided and the payment received.
 For payments received from clients referred to the firm by the reporting
 individual, if the reporting individual directly received a referral fee
 or  fees  for  such  referral,  identify  the  client and the payment so
 received.
   For purposes of this question, "referred  to  the  firm"  shall  mean:
 having  intentionally  and  knowingly  taken a specific act or series of
 acts to intentionally procure for the  reporting  individual's  firm  or
 having  knowingly  solicited  or  directed to the reporting individual's
 firm in whole or substantial part, a person or  entity  that  becomes  a
 client  of  that firm for the purposes of representation for a matter as
 defined in clauses (i) through (iv) of this subparagraph, as the  result
 of such procurement, solicitation or direction of the reporting individ-
 ual. A reporting individual need not disclose activities performed while
 lawfully  acting  in  his or her capacity as provided in paragraphs (c),
 (d), (e) and (f) of subdivision seven of section seventy-three  of  this
 article.
   Client   Matter     Nature of Services Provided      Category
                                                      of Amount
                                                     (in Table I)

 ________________________________________________________________________
 ________________________________________________________________________
 ________________________________________________________________________
 ________________________________________________________________________
 ________________________________________________________________________

   (b-2)  APPLICABLE  ONLY  TO NEW CLIENTS OR CUSTOMERS FOR WHOM SERVICES
 ARE PROVIDED ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND FIFTEEN, OR
 FOR NEW MATTERS FOR EXISTING CLIENTS OR CUSTOMERS WITH RESPECT TO  THOSE
 SERVICES  THAT ARE PROVIDED ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOU-

 S. 2742                             5

 SAND FIFTEEN (FOR PURPOSES  OF  THIS  QUESTION,  "SERVICES"  SHALL  MEAN
 CONSULTATION, REPRESENTATION, ADVICE OR OTHER SERVICES):
   (i)  With  respect  to  reporting individuals who receive ten thousand
 dollars or more from employment or activity  reportable  under  question
 8(a), for each client or customer NOT otherwise disclosed or exempted in
 question  8 or 13, disclose the name of each client or customer known to
 the reporting individual  to  whom  the  reporting  individual  provided
 services:  (A) who paid the reporting individual in excess of five thou-
 sand dollars for such services; or (B) who  had  been  billed  with  the
 knowledge of the reporting individual in excess of five thousand dollars
 by  the  firm  or  other entity named in question 8(a) for the reporting
 individual's services.
 Client               Services              Category of Amount
                  Actually Provided            (in Table I)
 ________________________________________________________________________
 ________________________________________________________________________
 ________________________________________________________________________
 ________________________________________________________________________
 ________________________________________________________________________

 FOLLOWING IS AN ILLUSTRATIVE, NON-EXCLUSIVE LIST OF EXAMPLES OF
 DESCRIPTIONS OF "SERVICES ACTUALLY PROVIDED":
   * REVIEWED DOCUMENTS AND CORRESPONDENCE;
   * REPRESENTED CLIENT (IDENTIFY CLIENT BY NAME) IN LEGAL PROCEEDING;
   * PROVIDED LEGAL ADVICE ON CLIENT MATTER (IDENTIFY CLIENT BY NAME);
   * CONSULTED WITH CLIENT OR CONSULTED WITH LAW PARTNERS/ASSOCIATES/MEMBERS
     OF FIRM ON CLIENT MATTER (IDENTIFY CLIENT BY NAME);
   * PREPARED CERTIFIED FINANCIAL STATEMENT FOR CLIENT (IDENTIFY CLIENT BY
     NAME);
   * REFERRED INDIVIDUAL OR ENTITY (IDENTIFY CLIENT BY NAME) FOR
     REPRESENTATION OR CONSULTATION;
   * COMMERCIAL BROKERING SERVICES (IDENTIFY CUSTOMER BY NAME);
   * PREPARED CERTIFIED ARCHITECTURAL OR ENGINEERING
     RENDERINGS FOR CLIENT (IDENTIFY CUSTOMER BY NAME);
   * COURT APPOINTED GUARDIAN OR EVALUATOR (IDENTIFY COURT NOT CLIENT).
   (ii) With respect to reporting individuals who disclosed  in  question
 8(a)  that the reporting individual did not provide services to a client
 but provided services to a firm or business, identify  the  category  of
 amount  received  for  providing such services and describe the services
 rendered.
 Services Actually Provided                  Category of Amount (Table I)
 ________________________________________________________________________
 ________________________________________________________________________
 ________________________________________________________________________
   A reporting individual need not disclose  activities  performed  while
 lawfully  acting  in  his or her capacity as provided in paragraphs (c),
 (d), (e) and (f) of subdivision seven of section seventy-three  of  this
 article.
 The  disclosure  requirement  in  questions  (b-1)  and  (b-2) shall not
 require disclosing clients or customers  receiving  medical,  pharmaceu-
 tical  or  dental  services, mental health services, or residential real
 estate brokering services from the reporting individual or  his  or  her
 firm  or  if  federal  law prohibits or limits disclosure. The reporting
 individual need not identify any client to whom he or she or his or  her
 firm  provided  legal  representation  with  respect to investigation or
 prosecution by law enforcement authorities,  bankruptcy,  family  court,

 S. 2742                             6

 estate  planning, or domestic relations matters, nor shall the reporting
 individual identify individuals represented  pursuant  to  an  insurance
 policy  but  the  reporting  individual shall in such circumstances only
 report  the  entity that provides compensation to the reporting individ-
 ual; with respect to matters in which the client's name is  required  by
 law  to  be  kept  confidential  (such as matters governed by the family
 court act) or in matters in which the reporting individual represents or
 provides services to minors, the client's  name  may  be  replaced  with
 initials.  To  the  extent  that the reporting individual, or his or her
 firm, provided legal representation with respect to  an  initial  public
 offering,  and  professional  disciplinary  rules,  federal law or regu-
 lations restrict the disclosure of information relating  to  such  work,
 the  reporting  individual shall (i) disclose the identity of the client
 and the services provided relating to the initial public offering to the
 office of court  administration,  who  will  maintain  such  information
 confidentially  in a locked box; and (ii) include in his or her response
 to questions (b-1) and (b-2) that pursuant to this paragraph, a  disclo-
 sure to the office of court administration has been made. Upon such time
 that  the  disclosure  of information maintained in the locked box is no
 longer restricted by professional disciplinary  rules,  federal  law  or
 regulation,  the reporting individual shall disclose such information in
 an amended disclosure statement in response to the  disclosure  require-
 ments  in  questions (b-1) and (b-2). The office of court administration
 shall develop and maintain a secure  portal  through  which  information
 submitted  to  it pursuant to this paragraph can be safely and confiden-
 tially stored. With respect to clients represented in other matters  not
 otherwise  exempt,  the reporting individual may request an exemption to
 publicly disclosing the name of that client from  the  joint  commission
 pursuant  to  paragraph (i-1) of subdivision nine of section ninety-four
 of the executive law, or from the office  of  court  administration.  In
 such  application,  the  reporting individual shall state the following:
 "My client is not currently receiving my services or seeking my services
 in connection with:
   (i) A proposed bill or resolution in the senate or assembly during the
 reporting period;
   (ii) A contract in an amount totaling $10,000 or more from  the  state
 or any state agency for services, materials, or property;
   (iii)  A  grant  of $10,000 or more from the state or any state agency
 during the reporting period;
   (iv) A grant obtained through  a  legislative  initiative  during  the
 reporting period; or
   (v)  A  case,  proceeding,  application  or other matter that is not a
 ministerial matter before a state agency during the reporting period."
   In reviewing the request for an exemption, the joint commission or the
 office of court administration may consult with  bar  or  other  profes-
 sional  associations  and the legislative ethics commission for individ-
 uals subject to its jurisdiction and may consider the rules  of  profes-
 sional conduct. In making its determination, the joint commission or the
 office  of  court administration shall conduct its own inquiry and shall
 consider factors including, but not limited to: (i) the nature  and  the
 size  of the client; (ii) whether the client has any business before the
 state; and if so, how significant  the  business  is;  and  whether  the
 client  has any particularized interest in pending legislation and if so
 how significant the interest is; (iii)  whether  disclosure  may  reveal
 trade secrets; (iv) whether disclosure could reasonably result in retal-
 iation  against  the client; (v) whether disclosure may cause undue harm

 S. 2742                             7

 to the client; (vi) whether disclosure may result in undue harm  to  the
 attorney-client relationship; and (vii) whether disclosure may result in
 an unnecessary invasion of privacy to the client.
   The  joint  commission  or,  as  the  case may be, the office of court
 administration shall promptly make a final determination in response  to
 such  request, which shall include an explanation for its determination.
 The office of court administration shall issue its  final  determination
 within  three  days  of receiving the request. Notwithstanding any other
 provision of law or any professional disciplinary rule to the  contrary,
 the  disclosure of the identity of any client or customer in response to
 this question shall not constitute professional misconduct or  a  ground
 for  disciplinary action of any kind, or form the basis for any civil or
 criminal cause of action or proceeding. A reporting individual who first
 enters public office after January first, two thousand sixteen, need not
 report clients or customers  with  respect  to  matters  for  which  the
 reporting  individual  or his or her firm was retained prior to entering
 public office.
   (c)] APPLICABLE ONLY TO NEW CLIENTS OR CUSTOMERS FOR WHOM SERVICES ARE
 PROVIDED ON OR  AFTER  DECEMBER  THIRTY-FIRST,  TWO  THOUSAND  [FIFTEEN]
 SEVENTEEN,  OR  FOR  NEW  MATTERS FOR EXISTING CLIENTS OR CUSTOMERS WITH
 RESPECT TO THOSE SERVICES THAT ARE PROVIDED ON OR AFTER  DECEMBER  THIR-
 TY-FIRST, TWO THOUSAND [FIFTEEN] SEVENTEEN:
   If the reporting individual receives income of ten thousand dollars or
 greater  from any employment or activity reportable under question 8(a),
 identify each registered lobbyist who  has  directly  referred  to  such
 individual a client who was successfully referred to the reporting indi-
 vidual's  business  and  from  whom  the  reporting  individual  or firm
 received a fee for services in excess of five thousand  dollars.  Report
 only  those referrals that were made to a reporting individual by direct
 communication from a person known to such reporting individual to  be  a
 registered  lobbyist  at  the time the referral is made. With respect to
 each such referral, the reporting individual shall identify the  client,
 the registered lobbyist who has made the referral, the category of value
 of  the  compensation  received and a general description of the type of
 matter so referred. A reporting individual need not disclose  activities
 performed while lawfully acting pursuant to paragraphs (c), (d), (e) and
 (f)  of  subdivision seven of section seventy-three of this article. The
 disclosure requirements in this question shall  not  require  disclosing
 clients   or  customers  receiving  medical,  pharmaceutical  or  dental
 services, mental health services, or residential real  estate  brokering
 services  from the reporting individual or his or her firm or if federal
 law prohibits or limits disclosure. The reporting  individual  need  not
 identify  any client to whom he or she or his or her firm provided legal
 representation with respect  to  investigation  or  prosecution  by  law
 enforcement  authorities,  bankruptcy, family court, estate planning, or
 domestic relations matters, nor shall the reporting individual  identify
 individuals  represented pursuant to an insurance policy but the report-
 ing individual shall in such circumstances only report the  entity  that
 provides  compensation  to  the  reporting  individual;  with respect to
 matters in which the client's name is required by law to be kept  confi-
 dential (such as matters governed by the family court act) or in matters
 in  which  the  reporting  individual represents or provides services to
 minors, the client's name may be replaced with initials. To  the  extent
 that the reporting individual, or his or her firm, provided legal repre-
 sentation with respect to an initial public offering, and federal law or
 regulations  restricts  the  disclosure  of information relating to such

 S. 2742                             8
 
 work, the reporting individual shall (i) disclose the  identity  of  the
 client and the services provided relating to the initial public offering
 to  the  office of court administration, who will maintain such informa-
 tion  confidentially  in  a  locked  box; and (ii) include in his or her
 response a statement that pursuant to this paragraph,  a  disclosure  to
 the  office  of  court administration has been made. Upon such time that
 the disclosure of information maintained in the locked box is no  longer
 restricted  by federal law or regulation, the reporting individual shall
 disclose such information in an amended disclosure statement in response
 to the disclosure requirements of this paragraph.  The office  of  court
 administration  shall develop and maintain a secure portal through which
 information submitted to it pursuant to this paragraph can be safely and
 confidentially stored. With respect  to  clients  represented  in  other
 matters  not  otherwise  exempt, the reporting individual may request an
 exemption to publicly disclosing the name of that client from the  joint
 commission  pursuant  to  paragraph (i-1) of subdivision nine of section
 ninety-four of the executive law, or from the office of  court  adminis-
 tration.  In  such application, the reporting individual shall state the
 following: "My client is not currently receiving my services or  seeking
 my services in connection with:
   (i) A proposed bill or resolution in the senate or assembly during the
 reporting period;
   (ii)  A  contract in an amount totaling $10,000 or more from the state
 or any state agency for services, materials, or property;
   (iii) A grant of $10,000 or more from the state or  any  state  agency
 during the reporting period;
   (iv)  A  grant  obtained  through  a legislative initiative during the
 reporting period; or
   (v) A case, proceeding, application or other  matter  that  is  not  a
 ministerial matter before a state agency during the reporting period."
   In reviewing the request for an exemption, the joint commission or the
 office  of  court  administration  may consult with bar or other profes-
 sional associations and the legislative ethics commission  for  individ-
 uals  subject  to its jurisdiction and may consider the rules of profes-
 sional conduct. In making its determination, the joint commission or the
 office of court administration shall conduct its own inquiry  and  shall
 consider  factors  including, but not limited to: (i) the nature and the
 size of the client; (ii) whether the client has any business before  the
 state;  and  if  so,  how  significant  the business is; and whether the
 client has any particularized interest in pending legislation and if  so
 how  significant  the  interest  is; (iii) whether disclosure may reveal
 trade secrets; (iv) whether disclosure could reasonably result in retal-
 iation against the client; (v) whether disclosure may cause  undue  harm
 to  the  client; (vi) whether disclosure may result in undue harm to the
 attorney-client relationship; and (vii) whether disclosure may result in
 an unnecessary invasion of privacy to the client.
   The joint commission or, as the case  may  be,  the  office  of  court
 administration  shall promptly make a final determination in response to
 such request, which shall include an explanation for its  determination.
 The  office  of court administration shall issue its final determination
 within three days of receiving the request.  Notwithstanding  any  other
 provision  of law or any professional disciplinary rule to the contrary,
 the disclosure of the identity of any client or customer in response  to
 this  question  shall not constitute professional misconduct or a ground
 for disciplinary action of any kind, or form the basis for any civil  or
 criminal cause of action or proceeding. A reporting individual who first

 S. 2742                             9
 
 enters  public office after December thirty-first, two thousand fifteen,
 need not report clients or customers with respect to matters  for  which
 the reporting individual or his or her firm was retained prior to enter-
 ing public office.
 Client        Name of Lobbyist     Description    Category of Amount
                                    of Matter       (in Table 1)
 ________________________________________________________________________
 ________________________________________________________________________
 ________________________________________________________________________
 ________________________________________________________________________
 ________________________________________________________________________

   [(d)]  (C) List the name, principal address and general description or
 the nature of the business activity of any entity in which the reporting
 individual or such individual's spouse had an investment  in  excess  of
 $1,000 excluding investments in securities and interests in real proper-
 ty.
   §  2.  Paragraph (i-l) of subdivision 9 of section 94 of the executive
 law, as added by section 6 of part A of chapter 399 of the laws of 2011,
 is amended to read as follows:
   (i-1) Permit any person required to file a financial disclosure state-
 ment to request an exemption from any requirement to report the identity
 of a client pursuant to question [8(b)] 8(A)  in  such  statement  based
 upon  an  exemption set forth in that question. The reporting individual
 need not seek an exemption to refrain from disclosing  the  identity  of
 any  client  with  respect  to  any  matter he or she or his or her firm
 provided legal representation to the client in connection with an inves-
 tigation or prosecution by law enforcement authorities,  bankruptcy,  or
 domestic  relations matters; in addition, clients or customers receiving
 medical or dental services, mental  health  services,  residential  real
 estate  brokering  services, or insurance brokering services need not be
 disclosed.
   § 3. This act shall take effect immediately.

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Sponsored By

Leroy Comrie

Archive: Last Bill Status - In Senate Committee Finance Committee

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