S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3738
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 28, 2021
                                ___________
 
 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 1 of section 73 of the public officers law  is
 amended by adding two new paragraphs (n) and (o) to read as follows:
   (N) THE TERM "CORPORATION" SHALL HAVE THE SAME MEANING AS SUCH TERM IS
 DEFINED IN SECTION ONE HUNDRED TWO OF THE BUSINESS CORPORATION LAW.
   (O)  THE  TERM "LIMITED LIABILITY COMPANY" SHALL HAVE THE SAME MEANING
 AS SUCH TERM IS DEFINED IN  SECTION  ONE  HUNDRED  TWO  OF  THE  LIMITED
 LIABILITY COMPANY LAW.
   §  2.  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01248-02-1

 A. 3738                             2
 
 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
 subdivision to the appropriate prosecutor and upon such conviction  such
 violation shall be punishable as a class A misdemeanor.
   §  3.  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. FOR
 THE PURPOSE OF THIS SUBDIVISION, THE TERM "CORPORATION" SHALL  HAVE  THE
 SAME  MEANING  AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED TWO OF THE
 BUSINESS CORPORATION LAW AND THE TERM "LIMITED LIABILITY COMPANY"  SHALL
 HAVE THE SAME MEANING AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED TWO
 OF THE LIMITED LIABILITY COMPANY LAW.
   § 4. Section 800 of the general municipal law is amended by adding two
 new subdivisions 7 and 8 to read as follows:
   7.  "CORPORATION"  HAS  THE  SAME  MEANING  AS SUCH TERM IS DEFINED IN
 SECTION ONE HUNDRED TWO OF THE BUSINESS CORPORATION LAW.
   8. "LIMITED LIABILITY COMPANY" HAS THE SAME MEANING AS  SUCH  TERM  IS
 DEFINED IN SECTION ONE HUNDRED TWO OF THE LIMITED LIABILITY COMPANY LAW.
   §  5.  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-

 A. 3738                             3
 
 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.
   § 6. This act shall take effect immediately.