S T A T E O F N E W Y O R K
________________________________________________________________________
8742
I N S E N A T E
April 6, 2022
___________
Introduced by Sen. REICHLIN-MELNICK -- read twice and ordered printed,
and when printed to be committed to the Committee on Ethics and Inter-
nal Governance
AN ACT to amend the public officers law, in relation to prohibiting
public officers and employees from using nonpublic information derived
from their official positions for personal benefit
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act shall be known and may be cited as the "New York
Stock Act".
§ 2. The public officers law is amended by adding a new article 7-A to
read as follows:
ARTICLE 7-A
USE OF NON-PUBLIC INFORMATION FOR
PERSONAL BENEFIT PROHIBITED
SECTION 112. DEFINITIONS.
112-A. PROHIBITION OF THE USE OF NONPUBLIC INFORMATION FOR
PRIVATE PROFIT.
112-B. PROHIBITION OF INSIDER TRADING.
112-C. OTHER STATE OFFICIALS.
112-D. PARTICIPATION IN INITIAL PUBLIC OFFERINGS.
112-E. RULE OF CONSTRUCTION.
§ 112. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
1. "MEMBER OF THE LEGISLATURE" MEANS A MEMBER OF THE NEW YORK STATE
SENATE OR NEW YORK STATE ASSEMBLY.
2. "EMPLOYEE OF THE LEGISLATURE" MEANS ANY OFFICER OR EMPLOYEE OF THE
LEGISLATURE BUT IT SHALL NOT INCLUDE MEMBERS OF THE LEGISLATURE.
3. "EXECUTIVE BRANCH EMPLOYEE" MEANS:
A. ANY PERSON EMPLOYED IN THE CIVIL SERVICE OF THIS STATE;
B. THE GOVERNOR;
C. THE LIEUTENANT GOVERNOR;
D. THE COMPTROLLER; AND
E. THE ATTORNEY GENERAL.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08976-01-1
S. 8742 2
4. "JUDICIAL OFFICER" MEANS ANY JUDGE OR OTHER JUDICIAL OFFICER OF
THIS STATE.
5. "JUDICIAL EMPLOYEE" MEANS ANY OFFICER OR EMPLOYEE OF THE JUDICIARY
BUT IT SHALL NOT INCLUDE JUDICIAL OFFICERS.
§ 112-A. PROHIBITION OF THE USE OF NONPUBLIC INFORMATION FOR PRIVATE
PROFIT. THE LEGISLATIVE ETHICS COMMISSION SHALL ISSUE INTERPRETIVE GUID-
ANCE OF THE RELEVANT RULES OF EACH CHAMBER, INCLUDING RULES ON CONFLICTS
OF INTEREST AND GIFTS, CLARIFYING THAT A MEMBER OF THE LEGISLATURE AND
AN EMPLOYEE OF THE LEGISLATURE MAY NOT USE NONPUBLIC INFORMATION DERIVED
FROM SUCH PERSON'S POSITION AS A MEMBER OF THE LEGISLATURE OR EMPLOYEE
OF THE LEGISLATURE OR GAINED FROM THE PERFORMANCE OF SUCH PERSON'S OFFI-
CIAL RESPONSIBILITIES AS A MEANS FOR MAKING A PRIVATE PROFIT.
§ 112-B. PROHIBITION OF INSIDER TRADING. SUBJECT TO THE RULE OF
CONSTRUCTION UNDER SECTION ONE HUNDRED TWELVE-E OF THIS ARTICLE AND
SOLELY FOR THE PURPOSES OF INSIDER TRADING PROHIBITIONS ARISING UNDER
THE SECURITIES EXCHANGE ACT OF 1934, EACH MEMBER OF THE LEGISLATURE OR
EMPLOYEE OF THE LEGISLATURE OWES A DUTY ARISING FROM A RELATIONSHIP OF
TRUST AND CONFIDENCE TO THE LEGISLATURE, THE STATE, AND THE CITIZENS OF
THIS STATE WITH RESPECT TO MATERIAL, NONPUBLIC INFORMATION DERIVED FROM
SUCH PERSON'S POSITION AS A MEMBER OF THE LEGISLATURE OR EMPLOYEE OF THE
LEGISLATURE OR GAINED FROM THE PERFORMANCE OF SUCH PERSON'S OFFICIAL
RESPONSIBILITIES.
§ 112-C. OTHER STATE OFFICIALS. 1. A. THE JOINT COMMISSION ON PUBLIC
ETHICS SHALL ISSUE SUCH INTERPRETIVE GUIDANCE OF THE RELEVANT STATE
ETHICS STATUTES AND REGULATIONS, INCLUDING THE STANDARDS OF ETHICAL
CONDUCT FOR EXECUTIVE BRANCH EMPLOYEES, RELATED TO USE OF NONPUBLIC
INFORMATION, AS NECESSARY TO CLARIFY THAT NO EXECUTIVE BRANCH EMPLOYEE
MAY USE NONPUBLIC INFORMATION DERIVED FROM SUCH PERSON'S POSITION AS AN
EXECUTIVE BRANCH EMPLOYEE OR GAINED FROM THE PERFORMANCE OF SUCH
PERSON'S OFFICIAL RESPONSIBILITIES AS A MEANS FOR MAKING A PRIVATE
PROFIT.
B. THE ADVISORY COMMITTEE ON JUDICIAL ETHICS SHALL ISSUE SUCH INTER-
PRETIVE GUIDANCE OF THE RELEVANT ETHICS RULES APPLICABLE TO JUDICIAL
OFFICERS, AS NECESSARY TO CLARIFY THAT NO JUDICIAL OFFICER MAY USE
NONPUBLIC INFORMATION DERIVED FROM SUCH PERSON'S POSITION AS A JUDICIAL
OFFICER OR GAINED FROM THE PERFORMANCE OF SUCH PERSON'S OFFICIAL RESPON-
SIBILITIES AS A MEANS FOR MAKING A PRIVATE PROFIT.
C. THE ADVISORY COMMITTEE ON JUDICIAL ETHICS SHALL ISSUE SUCH INTER-
PRETIVE GUIDANCE OF THE RELEVANT ETHICS RULES APPLICABLE TO JUDICIAL
EMPLOYEES AS NECESSARY TO CLARIFY THAT NO JUDICIAL EMPLOYEE MAY USE
NONPUBLIC INFORMATION DERIVED FROM SUCH PERSON'S POSITION AS A JUDICIAL
EMPLOYEE OR GAINED FROM THE PERFORMANCE OF SUCH PERSON'S OFFICIAL
RESPONSIBILITIES AS A MEANS FOR MAKING A PRIVATE PROFIT.
2. SUBJECT TO THE RULE OF CONSTRUCTION UNDER SECTION ONE HUNDRED
TWELVE-E OF THIS ARTICLE AND SOLELY FOR THE PURPOSES INSIDER TRADING
PROHIBITIONS ARISING UNDER THE SECURITIES EXCHANGE ACT OF 1934, EACH
EXECUTIVE BRANCH EMPLOYEE, EACH JUDICIAL OFFICER, AND EACH JUDICIAL
EMPLOYEE OWES A DUTY ARISING FROM A RELATIONSHIP OF TRUST AND CONFIDENCE
TO THIS STATE AND THE CITIZENS OF THIS STATE WITH RESPECT TO MATERIAL,
NONPUBLIC INFORMATION DERIVED FROM SUCH PERSON'S POSITION AS AN EXECU-
TIVE BRANCH EMPLOYEE, JUDICIAL OFFICER, OR JUDICIAL EMPLOYEE OR GAINED
FROM THE PERFORMANCE OF SUCH PERSON'S OFFICIAL RESPONSIBILITIES.
§ 112-D. PARTICIPATION IN INITIAL PUBLIC OFFERINGS. NO PERSON SET
FORTH IN SECTION ONE HUNDRED TWELVE OF THIS ARTICLE MAY PURCHASE SECURI-
TIES THAT ARE THE SUBJECT OF AN INITIAL PUBLIC OFFERING IN ANY MANNER
OTHER THAN IS AVAILABLE TO MEMBERS OF THE PUBLIC GENERALLY.
S. 8742 3
§ 112-E. RULE OF CONSTRUCTION. NOTHING IN THIS ARTICLE OR THE INTER-
PRETIVE GUIDANCE TO BE ISSUED PURSUANT TO THIS ARTICLE SHALL BE
CONSTRUED TO:
1. IMPAIR OR LIMIT THE CONSTRUCTION OF THE ANTIFRAUD PROVISIONS OF THE
SECURITIES LAWS OR THE COMMODITY EXCHANGE ACT OR THE AUTHORITY OF THE
SECURITIES AND EXCHANGE COMMISSION OR THE COMMODITY FUTURES TRADING
COMMISSION UNDER THOSE PROVISIONS;
2. BE IN DEROGATION OF THE OBLIGATIONS, DUTIES, AND FUNCTIONS OF A
MEMBER OF THE LEGISLATURE, AN EMPLOYEE OF THE LEGISLATURE, AN EXECUTIVE
BRANCH EMPLOYEE, A JUDICIAL OFFICER, OR A JUDICIAL EMPLOYEE, ARISING
FROM SUCH PERSON'S OFFICIAL POSITION; OR
3. BE IN DEROGATION OF EXISTING LAWS, REGULATIONS, OR ETHICAL OBLI-
GATIONS GOVERNING MEMBERS OF THE LEGISLATURE, EMPLOYEES OF THE LEGISLA-
TURE, EXECUTIVE BRANCH EMPLOYEES, JUDICIAL OFFICERS, OR JUDICIAL EMPLOY-
EES.
§ 3. This act shall take effect immediately.