S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3329
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 30, 2023
                                ___________
 
 Introduced by Sen. GOUNARDES -- 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, 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.  Short title.  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;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07465-02-3
              

 S. 3329                             2
 
   C. THE LIEUTENANT GOVERNOR;
   D. THE COMPTROLLER; AND
   E. THE ATTORNEY GENERAL.
   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  COMMISSION  ON  ETHICS  AND
 LOBBYING  IN  GOVERNMENT  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 POSI-
 TION 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.
 S. 3329                             3
 
   § 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.
   §  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.