Bill Text: NY A08232 | 2021-2022 | General Assembly | Introduced
Bill Title: Prohibits members of the legislature and statewide elected officials from receiving certain income.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2022-01-05 - referred to governmental operations [A08232 Detail]
Download: New_York-2021-A08232-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8232 2021-2022 Regular Sessions IN ASSEMBLY August 25, 2021 ___________ Introduced by M. of A. WALLACE -- read once and referred to the Commit- tee on Governmental Operations AN ACT to amend the legislative law, the public officers law and the executive law, in relation to prohibiting members of the legislature and statewide elected officials 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-three, 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. LBD11672-02-1A. 8232 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-three, 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. Subdivision 7 of section 80 of the legislative law is amended by 32 adding a new paragraph f-1 to read as follows: 33 f-1. Promulgate guidelines for members of the legislature to request 34 permission from the commission to accept compensation for teaching, and 35 promulgate guidelines for the commission to evaluate and issue a deter- 36 mination for such requests. 37 § 3. Paragraph (a) of subdivision 9 of section 80 of the legislative 38 law, as amended by section 9 of part A of chapter 399 of the laws of 39 2011, is amended to read as follows: 40 (a) An individual subject to the jurisdiction of the commission with 41 respect to the imposition of penalties who knowingly and intentionally 42 violates the provisions of subdivisions two through five-a, seven, 43 eight, twelve, fourteen or fifteen of section seventy-three of the 44 public officers law or section five-b of this chapter or a reporting 45 individual who knowingly and wilfully fails to file an annual statement 46 of financial disclosure or who knowingly and wilfully with intent to 47 deceive makes a false statement or gives information which such individ- 48 ual knows to be false on such statement of financial disclosure filed 49 pursuant to section seventy-three-a of the public officers law shall be 50 subject to a civil penalty in an amount not to exceed forty thousand 51 dollars and the value of any gift, compensation or benefit received as a 52 result of such violation. Any such individual who knowingly and inten- 53 tionally violates the provisions of paragraph a, b, c, d, e, g, or i of 54 subdivision three of section seventy-four of the public officers law 55 shall be subject to a civil penalty in an amount not to exceed ten thou- 56 sand dollars and the value of any gift, compensation or benefit receivedA. 8232 3 1 as a result of such violation. Assessment of a civil penalty hereunder 2 shall be made by the commission with respect to persons subject to its 3 jurisdiction. In assessing the amount of the civil penalties to be 4 imposed, the commission shall consider the seriousness of the violation, 5 the amount of gain to the individual and whether the individual previ- 6 ously had any civil or criminal penalties imposed pursuant to this 7 section, and any other factors the commission deems appropriate. For a 8 violation of this section, other than for conduct which constitutes a 9 violation of subdivision twelve, fourteen or fifteen of section seven- 10 ty-three or section seventy-four of the public officers law, the legis- 11 lative ethics commission may, in lieu of or in addition to a civil 12 penalty, refer a violation to the appropriate prosecutor and upon such 13 conviction, but only after such referral, such violation shall be 14 punishable as a class A misdemeanor. Where the commission finds suffi- 15 cient cause, it shall refer such matter to the appropriate prosecutor. A 16 civil penalty for false filing may not be imposed hereunder in the event 17 a category of "value" or "amount" reported hereunder is incorrect unless 18 such reported information is falsely understated. Notwithstanding any 19 other provision of law to the contrary, no other penalty, civil or crim- 20 inal may be imposed for a failure to file, or for a false filing, of 21 such statement, or a violation of subdivision six of section seventy- 22 three of the public officers law, except that the appointing authority 23 may impose disciplinary action as otherwise provided by law. The legis- 24 lative ethics commission shall be deemed to be an agency within the 25 meaning of article three of the state administrative procedure act and 26 shall adopt rules governing the conduct of adjudicatory proceedings and 27 appeals taken pursuant to a proceeding commenced under article seventy- 28 eight of the civil practice law and rules relating to the assessment of 29 the civil penalties herein authorized. Such rules, which shall not be 30 subject to the promulgation and hearing requirements of the state admin- 31 istrative procedure act, shall provide for due process procedural mech- 32 anisms substantially similar to those set forth in such article three 33 but such mechanisms need not be identical in terms or scope. Assessment 34 of a civil penalty shall be final unless modified, suspended or vacated 35 within thirty days of imposition, with respect to the assessment of such 36 penalty, or unless such denial of request is reversed within such time 37 period, and upon becoming final shall be subject to review at the 38 instance of the affected reporting individuals in a proceeding commenced 39 against the legislative ethics commission, pursuant to article seventy- 40 eight of the civil practice law and rules. 41 § 4. Subdivision 3 of section 74 of the public officers law is amended 42 by adding a new paragraph j to read as follows: 43 j. (i) Starting in calendar year two thousand twenty-three, no officer 44 elected to a statewide office within the state may have outside earned 45 income attributable to such year which exceeds fifteen percent of their 46 gross annual salary. 47 (ii) (A) For the purposes of this section, the term "outside earned 48 income" includes, but is not limited to, wages, salaries, fees, and 49 other forms of compensation for services actually rendered. 50 (B) For the purposes of this section, the term "outside earned income" 51 does not include: 52 (1) salary, benefits, and allowances paid by New York state; 53 (2) income attributable to service with the military reserves or 54 national guard; 55 (3) income from pensions and other continuing benefits attributable to 56 previous employment or services;A. 8232 4 1 (4) income from investment activities, where the member's services are 2 not a material factor in the production of income; 3 (5) income from a trade or business in which the officer or their 4 family holds a controlling interest, where the officer's services are 5 not a material factor in the production of income; 6 (6) copyright royalties, fees, and their functional equivalent, from 7 the use or sale of copyright, patent and similar forms of intellectual 8 property rights, when received from established users or purchasers of 9 those rights; and 10 (7) compensation for services actually rendered prior to January 11 first, two thousand twenty-three, or prior to being sworn in as a state- 12 wide elected officer. 13 (C) Notwithstanding any other provisions of law to the contrary, offi- 14 cers elected to a statewide office within the state are prohibited from: 15 (1) receiving compensation for affiliating with or being employed by a 16 firm, partnership, association, corporation, or other entity that 17 provides professional services involving a fiduciary relationship, 18 except for the practice of medicine; 19 (2) permitting their name to be used by such a firm, partnership, 20 association, corporation, or other entity; 21 (3) receiving compensation for practicing a profession that involves a 22 fiduciary relationship except for the practice of medicine; 23 (4) receiving compensation as an officer or member of the board of an 24 association, corporation, or other entity; 25 (5) receiving compensation for teaching, without prior notification to 26 and approval from the joint commission on public ethics; and 27 (6) receiving advance payments on copyright royalties, fees, and their 28 functional equivalents. 29 (D) An officer elected to a statewide office within the state who 30 knowingly and willfully violates the provisions of this section shall be 31 subject to a civil penalty in an amount not to exceed forty thousand 32 dollars. Assessment of a civil penalty shall be made by the joint 33 commission on public ethics. The joint commission on public ethics, may, 34 in lieu of or in addition to a civil penalty, refer a violation to the 35 appropriate prosecutor and upon such conviction, but only after such 36 referral, such violation shall be punishable as a class A misdemeanor. 37 § 5. Subdivision 9 of section 94 of the executive law is amended by 38 adding a new paragraph (o) to read as follows: 39 (o) Promulgate guidelines for statewide elected officials to request 40 permission from the commission to accept compensation for teaching, and 41 promulgate guidelines for the commission to evaluate and issue a deter- 42 mination for such requests. 43 § 6. Subdivision 14 of section 94 of the executive law, as amended by 44 section 6 of part A of chapter 399 of the laws of 2011, is amended to 45 read as follows: 46 14. An individual subject to the jurisdiction of the commission who 47 knowingly and intentionally violates the provisions of subdivisions two 48 through five-a, seven, eight, twelve or fourteen through seventeen of 49 section seventy-three of the public officers law, section one hundred 50 seven of the civil service law, or a reporting individual who knowingly 51 and wilfully fails to file an annual statement of financial disclosure 52 or who knowingly and wilfully with intent to deceive makes a false 53 statement or fraudulent omission or gives information which such indi- 54 vidual knows to be false on such statement of financial disclosure filed 55 pursuant to section seventy-three-a of the public officers law shall be 56 subject to a civil penalty in an amount not to exceed forty thousandA. 8232 5 1 dollars and the value of any gift, compensation or benefit received as a 2 result of such violation. An individual who knowingly and intentionally 3 violates the provisions of paragraph a, b, c, d, e, g, or i of subdivi- 4 sion three of section seventy-four of the public officers law shall be 5 subject to a civil penalty in an amount not to exceed ten thousand 6 dollars and the value of any gift, compensation or benefit received as a 7 result of such violation. An individual who knowingly and intentionally 8 violates the provisions of paragraph j of subdivision three of section 9 seventy-four of the public officers law shall be subject to a civil 10 penalty in an amount not to exceed forty thousand dollars and the value 11 of any gift, compensation or benefit received as a result of such 12 violation. An individual subject to the jurisdiction of the commission 13 who knowingly and willfully violates article one-A of the legislative 14 law shall be subject to civil penalty as provided for in that article. 15 Except with respect to members of the legislature and legislative 16 employees, assessment of a civil penalty hereunder shall be made by the 17 commission with respect to persons subject to its jurisdiction. With 18 respect to a violation of any law other than sections seventy-three, 19 seventy-three-a, and seventy-four of the public officers law, where the 20 commission finds sufficient cause by a vote held in the same manner as 21 set forth in paragraph (b) of subdivision thirteen of this section, it 22 shall refer such matter to the appropriate prosecutor for further inves- 23 tigation. In assessing the amount of the civil penalties to be imposed, 24 the commission shall consider the seriousness of the violation, the 25 amount of gain to the individual and whether the individual previously 26 had any civil or criminal penalties imposed pursuant to this section, 27 and any other factors the commission deems appropriate. Except with 28 respect to members of the legislature and legislative employees, for a 29 violation of this subdivision, other than for conduct which constitutes 30 a violation of section one hundred seven of the civil service law, 31 subdivisions twelve or fourteen through seventeen of section seventy- 32 three or section seventy-four of the public officers law or article 33 one-A of the legislative law, the commission may, in lieu of or in addi- 34 tion to a civil penalty, refer a violation to the appropriate prosecutor 35 and upon such conviction, such violation shall be punishable as a class 36 A misdemeanor. A civil penalty for false filing may not be imposed here- 37 under in the event a category of "value" or "amount" reported hereunder 38 is incorrect unless such reported information is falsely understated. 39 Notwithstanding any other provision of law to the contrary, no other 40 penalty, civil or criminal may be imposed for a failure to file, or for 41 a false filing, of such statement, or a violation of subdivision six of 42 section seventy-three of the public officers law, except that the 43 appointing authority may impose disciplinary action as otherwise 44 provided by law. The commission may refer violations of this subdivision 45 to the appointing authority for disciplinary action as otherwise 46 provided by law. The commission shall be deemed to be an agency within 47 the meaning of article three of the state administrative procedure act 48 and shall adopt rules governing the conduct of adjudicatory proceedings 49 and appeals taken pursuant to a proceeding commenced under article 50 seventy-eight of the civil practice law and rules relating to the 51 assessment of the civil penalties herein authorized and commission 52 denials of requests for certain deletions or exemptions to be made from 53 a financial disclosure statement as authorized in paragraph (h) or para- 54 graph (i) of subdivision nine of this section. Such rules, which shall 55 not be subject to the approval requirements of the state administrative 56 procedure act, shall provide for due process procedural mechanismsA. 8232 6 1 substantially similar to those set forth in article three of the state 2 administrative procedure act but such mechanisms need not be identical 3 in terms or scope. Assessment of a civil penalty or commission denial of 4 such a request shall be final unless modified, suspended or vacated 5 within thirty days of imposition, with respect to the assessment of such 6 penalty, or unless such denial of request is reversed within such time 7 period, and upon becoming final shall be subject to review at the 8 instance of the affected reporting individuals in a proceeding commenced 9 against the commission, pursuant to article seventy-eight of the civil 10 practice law and rules. 11 § 7. This act shall take effect January 1, 2023.
