S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1350
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 15, 2019
                                ___________
 
 Introduced  by  M.  of A. SANTABARBARA, WOERNER, RAIA, GUNTHER -- Multi-
   Sponsored by -- M. of A. GLICK  --  read  once  and  referred  to  the
   Committee on Governmental Operations
 
 AN  ACT to amend the legislative law, in relation to prohibiting members
   of the legislature from receiving certain income

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. 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 TWENTY-ONE, 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
 LEGISLATURE, 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.
   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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06442-01-9

 A. 1350                             2
 
 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 TWENTY-ONE, 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.
   §  2.  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,
 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

 A. 1350                             3
 
 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.
   § 3. This act shall take effect January 1, 2021.