The New York State Senate

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  10104

                          I N  A S S E M B L Y

                             March 12, 2020
                               ___________

Introduced  by M. of A. SOLAGES -- read once and referred to the Commit-
  tee on Governmental Operations

AN ACT to amend the public officers law, the public authorities law  and
  the  general municipal law, in relation to prohibiting certain persons
  from receiving compensation for legal fees, consulting, or other  work
  performed for an industrial development agency, an economic assistance
  corporation, or from a state or local authority

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 18 of section 73 of the public officers law, as
amended by section 5 of part CC of chapter 56 of the laws  of  2015,  is
amended to read as follows:
  18.   NO STATEWIDE ELECTED OFFICIAL, STATE OFFICER OR EMPLOYEE, MEMBER
OF THE LEGISLATURE, LEGISLATIVE EMPLOYEE OR POLITICAL PARTY CHAIRMAN  AS
DEFINED IN THIS SECTION AND SECTION SEVENTY-THREE-A OF THIS ARTICLE WHO:
(I)  OWNS  OR  CONTROLS DIRECTLY OR INDIRECTLY TEN PER CENTUM OR MORE OF
STOCK IN A CORPORATION OR LIMITED LIABILITY COMPANY;  OR  (II)  OWNS  OR
CONTROLS  TEN  PER CENTUM OR MORE OF THE CAPITAL, PROFITS, OR BENEFICIAL
INTEREST IN A PARTNERSHIP OR FIRM, SHALL RECEIVE COMPENSATION FOR  LEGAL
FEES,  CONSULTING,  OR  ANY  OTHER CONTRACTUAL EXPENDITURE FOR SERVICES,
WHETHER ACTUALLY PERFORMED OR NOT, FROM A STATE OR  LOCAL  AUTHORITY  AS
DEFINED IN SECTION TWO OF THE PUBLIC AUTHORITIES LAW.
  19.  In  addition  to  any penalty contained in any other provision of
law, any person who knowingly and intentionally violates the  provisions
of subdivisions two through five, seven, seven-a, eight, twelve or four-
teen  through [seventeen] EIGHTEEN of this section 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 in connection with
such violation. Assessment of a civil penalty hereunder shall be made by
the state oversight body with jurisdiction over  such  person.  A  state
oversight  body  acting  pursuant to its jurisdiction, may, in lieu of a
civil penalty, with respect to a violation of subdivisions  two  through
five,  seven  or  eight  of  this section, refer a violation of any such

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD14666-01-0

A. 10104                            2

subdivision to the appropriate prosecutor and upon such conviction  such
violation shall be punishable as a class A misdemeanor.
  §  2.  Subdivision 1 of section 2825 of the public authorities law, as
amended by chapter 766 of the laws  of  2005,  is  amended  to  read  as
follows:
  1.  No  public officer or employee shall be ineligible for appointment
as a trustee or member of the governing body of a state or local author-
ity, as defined in section two of this chapter, and any  public  officer
or  employee  may  accept  such appointment and serve as such trustee or
member without forfeiture of any other  public  office  or  position  of
public  employment  by reason thereof.  PROVIDED, ADDITIONALLY NO STATE-
WIDE ELECTED OFFICIAL, STATE OFFICER OR EMPLOYEE, MEMBER OF THE LEGISLA-
TURE, LEGISLATIVE EMPLOYEE OR POLITICAL PARTY  CHAIRMAN  AS  DEFINED  IN
SECTIONS  SEVENTY-THREE  AND  SEVENTY-THREE-A OF THE PUBLIC OFFICERS LAW
WHO: (I) OWNS OR CONTROLS DIRECTLY OR INDIRECTLY TEN PER CENTUM OR  MORE
OF  STOCK IN A CORPORATION OR LIMITED LIABILITY COMPANY; OR (II) OWNS OR
CONTROLS TEN PER CENTUM OR MORE OF THE CAPITAL, PROFITS,  OR  BENEFICIAL
INTEREST  IN A PARTNERSHIP OR FIRM, SHALL RECEIVE COMPENSATION FOR LEGAL
FEES, CONSULTING, OR ANY OTHER  CONTRACTUAL  EXPENDITURE  FOR  SERVICES,
WHETHER ACTUALLY PERFORMED OR NOT, FROM A STATE OR LOCAL AUTHORITY.
  §  3.  Section 801 of the general municipal law, as amended by chapter
1043 of the laws of 1965, is amended to read as follows:
  § 801. Conflicts of interest prohibited. Except as provided in section
eight hundred two of this chapter, (1) no municipal officer or  employee
shall have an interest in any contract with the municipality of which he
is  an  officer or employee, when such officer or employee, individually
or as a member of a board, has the  power  or  duty  to  (a)  negotiate,
prepare,  authorize  or  approve  the  contract  or authorize or approve
payment thereunder (b) audit bills or claims under the contract, or  (c)
appoint  an  officer or employee who has any of the powers or duties set
forth above [and], (2) no chief fiscal officer, treasurer, or his deputy
or employee, shall have an interest in a bank or  trust  company  desig-
nated  as  a depository, paying agent, registration agent or for invest-
ment of funds of the municipality of which he is an officer or employee,
AND (3) NO MUNICIPAL OFFICER WHO (A) OWNS OR CONTROLS DIRECTLY OR  INDI-
RECTLY  TEN PERCENT OR MORE OF STOCK IN A CORPORATION OR LIMITED LIABIL-
ITY COMPANY, OR (B) OWNS OR CONTROLS TEN PERCENT OR MORE OF THE CAPITAL,
PROFITS, OR BENEFICIAL INTEREST IN A PARTNERSHIP OR FIRM, SHALL  RECEIVE
COMPENSATION  FOR  LEGAL  FEES,  CONSULTING,  OR  ANY  OTHER CONTRACTUAL
EXPENDITURE FOR SERVICES, WHETHER ACTUALLY  PERFORMED  OR  NOT,  FROM  A
STATE OR LOCAL AUTHORITY AS DEFINED IN SECTION TWO OF THE PUBLIC AUTHOR-
ITIES  LAW.    The  provisions  of  this  section  shall  in no event be
construed to preclude the payment of lawful compensation  and  necessary
expenses  of  any municipal officer or employee in one or more positions
of public employment, the holding of which is not prohibited by law.
  § 4. This act shall take effect immediately.