S T A T E O F N E W Y O R K
________________________________________________________________________
7555
I N S E N A T E
January 24, 2020
___________
Introduced by Sen. KAMINSKY -- read twice and ordered printed, and when
printed to be committed to the Committee on Ethics and Internal Gover-
nance
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
S. 7555 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.