Bill Text: NY A01350 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to prohibiting outside income for members of the legislature in excess of fifteen percent of gross annual salary.

Spectrum: Moderate Partisan Bill (Democrat 4-1)

Status: (Introduced - Dead) 2020-01-08 - referred to governmental operations [A01350 Detail]

Download: New_York-2019-A01350-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          1350
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 15, 2019
                                       ___________
        Introduced  by  M.  of A. SANTABARBARA, WOERNER, RAIA, GUNTHER -- Multi-
          Sponsored by -- M. of A. GLICK  --  read  once  and  referred  to  the
          Committee on Governmental Operations
        AN  ACT to amend the legislative law, in relation to prohibiting members
          of the legislature from receiving certain income
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1. The legislative law is amended by adding a new section 5-b
     2  to read as follows:
     3    § 5-b. Prohibition on outside earned income for members. 1.   Starting
     4  in  calendar  year  two thousand twenty-one, a member of the legislature
     5  may not have outside earned  income  attributable  to  such  year  which
     6  exceeds  fifteen  percent  of  the gross annual salary of members of the
     7  legislature, pursuant to section five of this article.
     8    2. a. For the purposes of  this  section,  the  term  "outside  earned
     9  income"  includes,  but  is  not  limited to, wages, salaries, fees, and
    10  other forms of compensation for services actually rendered.
    11    b. For the purposes of this section, the term "outside earned  income"
    12  does not include:
    13    (1) salary, benefits, and allowances paid by New York state;
    14    (2)  income  attributable  to  service  with  the military reserves or
    15  national guard;
    16    (3) income from pensions and other continuing benefits attributable to
    17  previous employment or services;
    18    (4) income from investment activities, where the member's services are
    19  not a material factor in the production of income;
    20    (5) income from a trade or business in which the member or their fami-
    21  ly holds a controlling interest, where the member's services are  not  a
    22  material factor in the production of income;
    23    (6)  copyright  royalties, fees, and their functional equivalent, from
    24  the use or sale of copyright, patent and similar forms  of  intellectual
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06442-01-9

        A. 1350                             2
     1  property  rights,  when received from established users or purchasers of
     2  those rights; and
     3    (7) compensation  for  services  actually  rendered  prior  to January
     4  first, two thousand twenty-one, or prior to being sworn in as  a  member
     5  of the legislature.
     6    3.    Notwithstanding  any  other  provisions  of law to the contrary,
     7  members of the legislature are prohibited from:
     8    a. receiving compensation for affiliating with or being employed by  a
     9  firm,  partnership,  association,  corporation,  or  other  entity  that
    10  provides  professional  services  involving  a  fiduciary  relationship,
    11  except for the practice of medicine;
    12    b. permitting their name to be used by such a firm, partnership, asso-
    13  ciation, corporation, or other entity;
    14    c.  receiving compensation for practicing a profession that involves a
    15  fiduciary relationship except for the practice of medicine;
    16    d. receiving compensation as an officer or member of the board  of  an
    17  association, corporation, or other entity;
    18    e.  receiving compensation for teaching, without prior notification to
    19  and approval from the legislative ethics commission;
    20    f. receiving advance payments on copyright royalties, fees, and  their
    21  functional equivalents.
    22    4.  A  member  of the legislature who knowingly and willfully violates
    23  the provisions of this section shall be subject to a civil penalty in an
    24  amount not to exceed forty  thousand  dollars.  Assessment  of  a  civil
    25  penalty shall be made by the legislative ethics commission. The legisla-
    26  tive ethics commission, acting pursuant to subdivision eleven of section
    27  eighty of this chapter, may, in lieu of or in addition to a civil penal-
    28  ty,  refer  a  violation  to  the  appropriate  prosecutor and upon such
    29  conviction, but only  after  such  referral,  such  violation  shall  be
    30  punishable as a class A misdemeanor.
    31    §  2.  Paragraph (a) of subdivision 9 of section 80 of the legislative
    32  law, as amended by section 9 of part A of chapter 399  of  the  laws  of
    33  2011, is amended to read as follows:
    34    (a)  An  individual subject to the jurisdiction of the commission with
    35  respect to the imposition of penalties who knowingly  and  intentionally
    36  violates  the  provisions  of  subdivisions  two  through five-a, seven,
    37  eight, twelve, fourteen or  fifteen  of  section  seventy-three  of  the
    38  public  officers  law  or  section five-b of this chapter or a reporting
    39  individual who knowingly and wilfully fails to file an annual  statement
    40  of  financial  disclosure  or  who knowingly and wilfully with intent to
    41  deceive makes a false statement or gives information which such individ-
    42  ual knows to be false on such statement of  financial  disclosure  filed
    43  pursuant  to section seventy-three-a of the public officers law shall be
    44  subject to a civil penalty in an amount not  to  exceed  forty  thousand
    45  dollars and the value of any gift, compensation or benefit received as a
    46  result  of  such violation. Any such individual who knowingly and inten-
    47  tionally violates the provisions of paragraph a, b, c, d, e, g, or i  of
    48  subdivision  three  of  section  seventy-four of the public officers law
    49  shall be subject to a civil penalty in an amount not to exceed ten thou-
    50  sand dollars and the value of any gift, compensation or benefit received
    51  as a result of such violation. Assessment of a civil  penalty  hereunder
    52  shall  be  made by the commission with respect to persons subject to its
    53  jurisdiction. In assessing the amount  of  the  civil  penalties  to  be
    54  imposed, the commission shall consider the seriousness of the violation,
    55  the  amount  of gain to the individual and whether the individual previ-
    56  ously had any civil or  criminal  penalties  imposed  pursuant  to  this

        A. 1350                             3
     1  section,  and  any other factors the commission deems appropriate. For a
     2  violation of this section, other than for conduct  which  constitutes  a
     3  violation  of  subdivision twelve, fourteen or fifteen of section seven-
     4  ty-three  or section seventy-four of the public officers law, the legis-
     5  lative ethics commission may, in lieu of  or  in  addition  to  a  civil
     6  penalty,  refer  a violation to the appropriate prosecutor and upon such
     7  conviction, but only  after  such  referral,  such  violation  shall  be
     8  punishable  as  a class A misdemeanor. Where the commission finds suffi-
     9  cient cause, it shall refer such matter to the appropriate prosecutor. A
    10  civil penalty for false filing may not be imposed hereunder in the event
    11  a category of "value" or "amount" reported hereunder is incorrect unless
    12  such reported information is falsely  understated.  Notwithstanding  any
    13  other provision of law to the contrary, no other penalty, civil or crim-
    14  inal  may  be  imposed  for a failure to file, or for a false filing, of
    15  such statement, or a violation of subdivision six  of  section  seventy-
    16  three  of  the public officers law, except that the appointing authority
    17  may impose disciplinary action as otherwise provided by law. The  legis-
    18  lative  ethics  commission  shall  be  deemed to be an agency within the
    19  meaning of article three of the state administrative procedure  act  and
    20  shall  adopt rules governing the conduct of adjudicatory proceedings and
    21  appeals taken pursuant to a proceeding commenced under article  seventy-
    22  eight  of the civil practice law and rules relating to the assessment of
    23  the civil penalties herein authorized. Such rules, which  shall  not  be
    24  subject to the promulgation and hearing requirements of the state admin-
    25  istrative  procedure act, shall provide for due process procedural mech-
    26  anisms substantially similar to those set forth in  such  article  three
    27  but  such mechanisms need not be identical in terms or scope. Assessment
    28  of a civil penalty shall be final unless modified, suspended or  vacated
    29  within thirty days of imposition, with respect to the assessment of such
    30  penalty,  or  unless such denial of request is reversed within such time
    31  period, and upon becoming final  shall  be  subject  to  review  at  the
    32  instance of the affected reporting individuals in a proceeding commenced
    33  against  the legislative ethics commission, pursuant to article seventy-
    34  eight of the civil practice law and rules.
    35    § 3. This act shall take effect January 1, 2021.
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