The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1543
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2021
                                ___________
 
 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 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01248-02-1

 S. 1543                             2
 
   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
 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,

 S. 1543                             3
 
 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.
   § 6. This act shall take effect immediately.