Bill Text: NY S08160 | 2015-2016 | General Assembly | Introduced
Bill Title: Relates to independent expenditures during election campaigns; provides that independent expenditures shall not include payments or expenditures where coordination occurs in the creation, formation or operation of the person making such payment or expenditure (Part A); relates to monies received and expenditures made by a party committee or constituted committee (Part B); amends the election law, in relation to disposition of campaign funds (Part C); relates to in-kind donations (Part D); relates to contingency fees (Part E); relates to the disclosure of certain donations by charitable non-profit entities (Part F); relates to the disclosure of certain activities by non-charitable non-profit entities (Part G); relates to the registration of certain service providers and political consulting services; defines terms (Part H); relates to communications with professional journalists and newscasters (Part I); relates to investigations by the joint commission on public ethics and to violations of the lobbying act (Part J); and relates to financial disclosure forms (Part K).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2016-08-24 - APPROVAL MEMO.4 [S08160 Detail]
Download: New_York-2015-S08160-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8160 IN SENATE June 17, 2016 ___________ Introduced by Sen. FLANAGAN -- (at request of the Governor) -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the election law, in relation to independent expendi- tures during election campaigns (Part A); to amend the election law, in relation to monies received and expenditures made by a party committee or constituted committee (Part B); to amend the election law, in relation to disposition of campaign funds (Part C); to amend the legislative law, in relation to reports by lobbyists (Part D); to amend the legislative law, in relation to contingent fees (Part E); to amend the executive law, in relation to the disclosure of certain donations by charitable non-profit entities (Part F); to amend the executive law, in relation to disclosure of certain activities by non-charitable non-profit entities (Part G); to amend the executive law, in relation to the registration of certain service providers (Part H); to amend the legislative law, in relation to communications with professional journalists and newscasters; and in relation to reporting of certain funding by lobbyists (Part I); to amend the exec- utive law, in relation to investigations by the joint commission on public ethics and to violations of the lobbying act (Part J); and to amend the public officers law, in relation to financial disclosure forms (Part K) The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act enacts into law major components of legislation 2 relating to campaign funds. Each component is wholly contained within a 3 Part identified as Parts A through K. The effective date for each 4 particular provision contained within such Part is set forth in the last 5 section of such Part. Any provision in any section contained within a 6 Part, including the effective date of the Part, which makes a reference 7 to a section "of this act", when used in connection with that particular 8 component, shall be deemed to mean and refer to the corresponding 9 section of the Part in which it is found. Section three of this act sets 10 forth the general effective date of this act. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD12084-11-6S. 8160 2 1 PART A 2 Section 1. Subdivision 1 of section 14-107 of the election law, as 3 amended by section 8 of part CC of chapter 56 of the laws of 2015, is 4 amended to read as follows: 5 1. For purposes of this article: 6 (a) "Independent expenditure" means an expenditure made by [a person] 7 an independent expenditure committee conveyed to five hundred or more 8 members of a general public audience in the form of (i) an audio or 9 video communication via broadcast, cable or satellite, (ii) a written 10 communication via advertisements, pamphlets, circulars, flyers, 11 brochures, letterheads or (iii) other published statements which: (i) 12 irrespective of when such communication is made, contains words such as 13 "vote," "oppose," "support," "elect," "defeat," or "reject," which call 14 for the election or defeat of the clearly identified candidate, (ii) 15 refers to and advocates for or against a clearly identified candidate or 16 ballot proposal on or after January first of the year of the election in 17 which such candidate is seeking office or such proposal shall appear on 18 the ballot, or (iii) within sixty days before a general or special 19 election for the office sought by the candidate or thirty days before a 20 primary election, includes or references a clearly identified candidate. 21 An independent expenditure shall not include communications where such 22 candidate, the candidate's political committee or its agents, a party 23 committee or its agents, or a constituted committee or its agents or a 24 political committee formed to promote the success or defeat of a ballot 25 proposal or its agents, did authorize, request, suggest, foster or coop- 26 erate in such communication. 27 (b) Independent expenditures do not include expenditures in connection 28 with: 29 (i) a written news story, commentary, or editorial or a news story, 30 commentary, or editorial distributed through the facilities of any 31 broadcasting station, cable or satellite unless such publication or 32 facilities are owned or controlled by any political party, political 33 committee or candidate; or 34 (ii) a communication that constitutes a candidate debate or forum; or 35 (iii) internal communication by members to other members of a member- 36 ship organization of not more than five hundred members, for the purpose 37 of supporting or opposing a candidate or candidates for elective office, 38 provided such expenditures are not used for the costs of campaign mate- 39 rial or communications used in connection with broadcasting, telecast- 40 ing, newspapers, magazines, or other periodical publication, billboards, 41 or similar types of general public communications; or 42 (iv) internal communications by members to other members of a member- 43 ship organization of not more than five hundred members or communi- 44 cations by a corporation organized for charitable purposes pursuant to 45 §501(c)(3) of the internal revenue code, within sixty days before a 46 general or special election for the office sought by the candidate or 47 thirty days before a primary election, that includes or references a 48 clearly identified candidate but does not otherwise qualify as an inde- 49 pendent expenditure under this section. 50 (v) a communication published on the Internet, unless the communi- 51 cation is a paid advertisement. 52 (c) [For purposes of this section, the term "person" shall mean53person, group of persons, corporation, unincorporated business entity,54labor organization or business, trade or professional association or55organization, or political committee; provided, however, that such defi-S. 8160 3 1nition shall not include any party or constituted committee,] An inde- 2 pendent expenditure committee shall not include payments or expenditures 3 made by a party or constituted committee that is required to file 4 disclosure reports under this chapter. 5 (d) Independent expenditures shall not include payments or expendi- 6 tures where coordination occurs in the creation, formation, or operation 7 of the independent expenditure committee making the payment or expendi- 8 ture. 9 Coordination shall include: 10 (i) The candidate or the candidate's authorized committee, or an agent 11 of the candidate or candidate's authorized committee, participated in 12 the creation or formation of the independent expenditure committee with- 13 in two years of the general election, primary or special election in 14 which the candidate is a candidate for nomination or election and the 15 payment or expenditure made is for the benefit of that candidate. 16 (ii) The candidate or an agent of the candidate appears at any 17 fundraising event hosted by an independent expenditure committee, or its 18 agent, making a payment or expenditure that benefits that candidate 19 within two years of the general election, primary or special election in 20 which the candidate is a candidate for nomination or election. 21 (iii) The independent expenditure committee making the payment or 22 expenditure, or its agent, employed or retained an individual, other 23 than an individual described in subparagraph (viii) of this paragraph, 24 who was employed by the candidate, the candidate's authorized committee 25 or an agent of the candidate or has held a policymaking, non-administra- 26 tive position in the office of the candidate's elected office within two 27 years of the general election, primary or special election in which the 28 candidate is a candidate for nomination or election, and the payment or 29 expenditure is made for the benefit of that candidate. 30 (iv) The independent expenditure committee making the payment or 31 expenditure, or its agent, is a member of the candidate's immediate 32 family or is established, directed, or managed by a member of the imme- 33 diate family of the candidate, and the payment or expenditure is made 34 for the benefit of that candidate. 35 (v) The independent expenditure committee making the payment or 36 expenditure benefiting the candidate, republishes, disseminates, or 37 distributes, in whole or in part, any video, audio, written, or other 38 campaign-related material prepared by the candidate or the candidate's 39 authorized committee or by an agent of the candidate or the candidate's 40 authorized committee. This paragraph shall not apply if the independent 41 expenditure committee making the payment or expenditure obtains the 42 communication or materials from a publicly available source. 43 (vi) The candidate or the candidate's authorized committee, or an 44 agent of the candidate or the candidate's authorized committee, shares 45 or rents space for a campaign-related purpose with or from the independ- 46 ent expenditure committee, or its agent, making the payment or expendi- 47 ture benefitting the candidate. 48 (vii) The independent expenditure committee, or its agent, making the 49 payment or expenditure benefitting the candidate has participated in 50 strategic discussions with the candidate, the candidate's authorized 51 committee, or an agent of the candidate or the candidate's authorized 52 committee within two years of the general election, primary or special 53 election in which the candidate is a candidate for nomination or 54 election. Discussions shall be deemed strategic if information about 55 the candidate's or opponent's electoral campaign plans, projects, or 56 activities that is not obtained from a publicly available source isS. 8160 4 1 conveyed to the independent expenditure committee, or its agent, making 2 the payment or expenditure. This paragraph shall only apply to 3 discussions occurring after the independent expenditure committee is 4 formed or, one week after the candidate has been certified for that 5 election, whichever occurs first. 6 (viii) The independent expenditure committee, or its agent, making the 7 payment or expenditure benefitting the candidate, and the candidate or 8 the candidate's authorized committee knowingly retain the same individ- 9 ual or entity to provide professional campaign services within two years 10 of the general election, primary or special election in which the candi- 11 date is a candidate for nomination or election, and the professional 12 campaign services provider discloses strategic information regarding one 13 party with the other party. Information shall be deemed strategic if it 14 relates to either party's respective campaign or independent expenditure 15 plans, projects, or activities that are not obtained from a publicly 16 available source. This subparagraph shall not prohibit a candidate, a 17 candidate's authorized committee, or an agent of the candidate or the 18 candidate's authorized committee from retaining the same professional 19 campaign services provider as the independent expenditure committee, or 20 its agent, making the payment or expenditure benefitting the candidate 21 upon the professional campaign services provider entering into a confi- 22 dentiality agreement with both parties expressly stating that it will 23 not disclose strategic information regarding each party with the other 24 party. 25 (ix) The independent expenditure committee, or its agent, making the 26 payment or expenditure benefitting the candidate, utilizes strategic 27 information or data related to the candidate, that is not from a public- 28 ly available source and is not otherwise available by subscription, from 29 an individual who has been previously compensated, reimbursed or 30 retained by the candidate as a consultant, political, media or fundrais- 31 ing advisor, vendor or contractor within two years of the general 32 election, primary or special election in which the candidate is a candi- 33 date for nomination or election. 34 (e) The following shall not be coordination: 35 (i) A candidate's or a party or constituted committee's response to an 36 inquiry about that candidate's or party or constituted committee's posi- 37 tions on legislative or policy issues. 38 (ii) A public communication in which a candidate is clearly identified 39 only in his or her capacity as the owner or operator of a business that 40 existed prior to the candidacy is not a coordinated communication with 41 respect to the clearly identified candidate if: (A) The medium, timing, 42 content, and geographic distribution of the public communication are 43 consistent with public communications made prior to the candidacy; and 44 (B) The public communication does not promote, support, attack, or 45 oppose that candidate or another candidate in their capacity as candi- 46 dates who seeks the same office as that candidate. 47 (f) For purposes of this section, the term "immediate family" means 48 spouse, child, parent, grandparent, brother, half-brother, sister, or 49 half-sister of the candidate, and the spouses of such persons. 50 (g) For purposes of this section, "agent" means a person authorized by 51 the candidate or the candidate's authorized committee, who acts on 52 behalf of or at the direction of a candidate or the candidate's author- 53 ized committee; or a party committee or constituted committee acting on 54 behalf of a candidate; or a person authorized by an independent expendi- 55 ture committee who acts on behalf of or at the direction of such commit- 56 tee.S. 8160 5 1 § 2. Subdivision 2 of section 14-107 of the election law, as added by 2 section 4 of subpart C of part H of chapter 55 of the laws of 2014, is 3 amended to read as follows: 4 2. Whenever any person makes an independent expenditure that costs 5 [more than] one thousand dollars or more in the aggregate, such communi- 6 cation shall clearly state the name of the person who paid for, or 7 otherwise published or distributed the communication and state, with 8 respect to communications regarding candidates, that the communication 9 was not expressly authorized or requested by any candidate, or by any 10 candidate's political committee or any of its agents. 11 § 3. Subdivision 3 of section 14-107 of the election law, as added by 12 section 4 of subpart C of part H of chapter 55 of the laws of 2014, is 13 amended to read as follows: 14 3. [(a)] Any person prior to making any independent expenditure shall 15 first register with the state board of elections as a political commit- 16 tee and as an independent expenditure committee in conformance with this 17 article. Such person shall comply with all disclosure obligations 18 required for political committees by law[.19(b) Any person who has registered with the state board of elections20pursuant to paragraph (a) of this subdivision shall disclose to the21state board of elections electronically, once a week on Friday any22contribution to such person over one thousand dollars or expenditures by23such person over five thousand dollars made prior to thirty days before24any primary, general, or special election.25(c) Any person who has registered with the state board of elections26pursuant to paragraph (a) of this subdivision shall disclose to the27state board of elections electronically, within twenty-four hours of28receipt, any contribution to such person over one thousand dollars or29expenditure by such person over five thousand dollars made within thirty30days before any primary, general, or special election.31(d) A knowing and willful violation of the provisions of this subdivi-32sion shall subject the person to a civil penalty equal to five thousand33dollars or the cost of the communication, whichever is greater, in a34special proceeding or civil action brought by the board or imposed35directly by the board of elections.] and shall provide the following 36 additional information upon registration: 37 (a) Where the person making the statement is an individual, the name, 38 address, occupation and employer of the person. 39 (b) Where the person making the statement is an entity, the name and 40 employer of any individual who exerts operational or managerial influ- 41 ence or control over the entity, as well as any salaried employee of the 42 entity. The disclosures required by this paragraph shall include the 43 name of at least one natural person. 44 (c) Identification of individuals named in paragraphs (a) and (b) of 45 this subdivision who have, during the two-year period before the state- 46 ment is filed, been employed or retained as a political, media, or 47 fundraising adviser or consultant for a candidate, any entity directly 48 controlled by a candidate, or any party committee or constituted commit- 49 tee, or have held a formal position in the office of a candidate's 50 elected office, or any party committee or constituted committee, and the 51 name of the relevant employer. 52 (d) Identification of individuals named in paragraphs (a), (b) and (c) 53 of this paragraph who are members of a candidate's immediate family. 54 (e) The information provided pursuant to this subdivision shall be 55 updated within twenty-four hours of any change in ownership or control 56 of any registered entity.S. 8160 6 1 § 4. Subdivision 4 of section 14-107 of the election law, as added by 2 section 4 of subpart C of part H of chapter 55 of the laws of 2014, is 3 amended to read as follows: 4 4. (a) Required disclosures. (i) Any independent expenditure committee 5 who has registered pursuant to subdivision three of this section shall 6 disclose to the state board of elections electronically, once a week on 7 Monday any contribution to such committee of one thousand dollars or 8 more or expenditures by such person over five thousand dollars made 9 during the reporting period. 10 (ii) Any independent expenditure committee who has registered with the 11 state board of elections pursuant to subdivision three of this section 12 shall disclose to the state board of elections electronically, within 13 twenty-four hours of receipt, any contribution to such independent 14 expenditure committee of one thousand dollars or more made within thirty 15 days before any primary, general, or special election. 16 (b) The disclosures required by [subdivision three] paragraph (a) of 17 this [section] subdivision shall include, in addition to any other 18 information required by law: 19 [(a)] (i) the name, address, occupation and employer of the person 20 making the statement; 21 [(b) the name, address, occupation and employer of the person making22the independent expenditure;23(c) the name, address, occupation and employer of any person providing24a contribution, gift, loan, advance or deposit of one thousand dollars25or more for the independent expenditure, or the provision of services26for the same, and the date it was given;27(d)] (ii) For each expenditure or payment made: (1) the dollar amount 28 paid for each independent expenditure, the name and address of the 29 person or entity receiving the payment, the date the payment was made 30 and a description of the independent expenditure; [and31(e)] (2) the election to which the independent expenditure pertains 32 and the name of the clearly identified candidate or the ballot proposal 33 referenced and whether the candidate or ballot proposal is supported or 34 opposed; and 35 (3) A list of all expenditures made by and liabilities incurred for 36 services rendered during the relevant reporting period. 37 (iii) For each contribution received the name, address, occupation and 38 employer of any person providing a contribution, gift, loan, advance or 39 deposit of one thousand dollars or more for the independent expenditure, 40 or the provision of services for the same and the date it was given. 41 § 5. Section 14-107 of the election law is amended by adding a new 42 subdivision 8 to read as follows: 43 8. (a) All criminal liability related to this section shall require 44 knowing and willful violations in accordance with section 14-126 of this 45 article. 46 (b) A knowing and willful violation of the provisions of subdivisions 47 three and four of this section shall subject the person to a civil 48 penalty equal to five thousand dollars or the cost of the communication, 49 whichever is greater, in a special proceeding or civil action brought by 50 the board. 51 § 6. The opening paragraph of paragraph 3 of subdivision 9 of section 52 14-100 of the election law, as amended by chapter 70 of the laws of 53 1983, is amended to read as follows: 54 any payment, by any person other than a candidate or a political 55 committee authorized by the candidate, made in connection with the nomi- 56 nation for election or election of any candidate, including any paymentS. 8160 7 1 or expenditure where coordination has occurred as defined in section 2 14-107 of this article, or any payment made to promote the success or 3 defeat of a political party or principle, or of any ballot proposal 4 including but not limited to compensation for the personal services of 5 any individual which are rendered in connection with a candidate's 6 election or nomination without charge; provided however, that none of 7 the foregoing shall be deemed a contribution if it is made, taken or 8 performed by a candidate or his spouse or by a person or a political 9 committee independent of the candidate or his agents or authorized poli- 10 tical committees. For purposes of this article, the term "independent of 11 the candidate or his agents or authorized political committees" shall 12 mean that the candidate or his agents or authorized political committees 13 did not authorize, request, suggest, foster or cooperate in any such 14 activity; and provided further, that the term contribution shall not 15 include: 16 § 7. Section 14-100 of the election law is amended by adding two new 17 subdivisions 15 and 16 to read as follows: 18 15. "independent expenditure committee" means a political committee, 19 that makes only independent expenditures as defined in this article, and 20 does not coordinate with a candidate, candidate's authorized committees 21 or an agent of the candidate as defined in paragraph (g) of subdivision 22 one of section 14-107 of this article. 23 For purposes of this section, an independent expenditure committee may 24 be created by a person, group of persons, corporation, unincorporated 25 business entity, labor organization or business, trade or professional 26 association, or organization, or political committee. 27 16. "political action committee" means a political committee which 28 makes no expenditures to aid or take part in the election or defeat of a 29 candidate, or to promote the success or defeat of a ballot proposal, 30 other than in the form of contributions, including in-kind contrib- 31 utions, to candidates, candidate's authorized committees, party commit- 32 tees, constituted committees, or independent expenditure committees 33 provided there is no common operational control between the political 34 action committee and the independent expenditure committee; or in the 35 form of communications that are not distributed to a general public 36 audience as described in subdivision thirteen of this section. 37 For purposes of this paragraph, "common operational control" means 38 that (i) the same individual or individuals exercise actual and strate- 39 gic control over the day-to-day affairs of both the political action 40 committee and the independent expenditure committee, or (ii) employees 41 of the political action committee and the independent expenditure 42 committee engage in communications related to the strategic operations 43 of either committee. 44 § 8. Section 14-112 of the election law, as amended by chapter 930 of 45 the laws of 1981, is amended to read as follows: 46 § 14-112. Political committee authorization statement. Any political 47 committee aiding or taking part in the election or nomination of any 48 candidate, other than [by making contributions] a political action 49 committee, shall file, in the office in which the statements of such 50 committee are to be filed pursuant to this article, either a sworn veri- 51 fied statement by the treasurer of such committee that the candidate has 52 authorized the political committee to aid or take part in his election 53 or that the candidate has not authorized the committee to aid or take 54 part in his election. 55 § 9. Subdivision 1 of section 14-118 of the election law, as amended 56 by chapter 156 of the laws of 2010, is amended to read as follows:S. 8160 8 1 1. Every political committee shall have a treasurer and a depository, 2 and shall cause the treasurer to keep detailed, bound accounts of all 3 receipts, transfers, loans, liabilities, contributions and expenditures, 4 made by the committee or any of its officers, members or agents acting 5 under its authority or in its behalf. All such accounts shall be 6 retained by a treasurer for a period of five years from the date of the 7 filing of the final statement with respect to the election, primary 8 election or convention to which they pertain. No officer, member or 9 agent of any political committee shall receive any receipt, transfer or 10 contribution, or make any expenditure or incur any liability until the 11 committee shall have chosen a treasurer and depository and filed their 12 names in accordance with this subdivision. There shall be filed in the 13 office in which the committee is required to file its statements under 14 section 14-110 of this article, within five days after the choice of a 15 treasurer and depository, a statement giving the name and address of the 16 treasurer chosen, the name and address of any person authorized to sign 17 checks by such treasurer, the name and address of the depository chosen 18 and the candidate or candidates or ballot proposal or proposals the 19 success or defeat of which the committee is to aid or take part; 20 provided, however, that such statement shall not be required of a 21 constituted committee and provided further that a political action 22 committee which makes no expenditures, to aid or take part in the 23 election or defeat of a candidate, other than in the form of contrib- 24 utions, shall not be required to list the candidates being supported or 25 opposed by such committee and shall also disclose the name and employer 26 for any individual who exerts operational control over the political 27 action committee as well as any salaried employee of the political 28 action committee. Such statement shall be signed by the treasurer and 29 all other persons authorized to sign checks. Any change in the informa- 30 tion required in any statement shall be reported, in an amended state- 31 ment filed in the same manner and in the same office as an original 32 statement filed under this section, within two days after it occurs, 33 except that any change to the mailing address on any such statement 34 filed at the state board may also be made in any manner deemed accepta- 35 ble by the state board. Only a banking organization authorized to do 36 business in this state may be designated a depository hereunder. 37 § 10. The election law is amended by adding a new section 14-107-a to 38 read as follows: 39 § 14-107-a. Prohibited spending by independent expenditure committees 40 and political action committees. 1. An independent expenditure committee 41 shall not contribute to any candidate, constituted committee, political 42 committee, or party committee. 43 2. (a) A political action committee shall not make any independent 44 expenditures and may only make contributions to any independent expendi- 45 ture committee if such committee does not have common operational 46 control. For purposes of this paragraph, "common operational control" 47 means that (i) the same individual or individuals exercise actual and 48 strategic control over the day-to-day affairs of both the political 49 action committee and the independent expenditure committee, or (ii) 50 employees of the political action committee and the independent expendi- 51 ture committee engage in communications related to the strategic oper- 52 ations of either committee. 53 (b) No candidate, candidate's authorized committee, party committee, 54 or constituted committee shall contribute to an independent expenditure 55 committee that is making expenditures benefitting the candidate or the 56 candidate supported by such party or constituted committee.S. 8160 9 1 § 11. Section 14-126 of the election law is amended by adding a new 2 subdivision 3-a to read as follows: 3 3-a. Any person who, acting as or on behalf of an independent expendi- 4 ture committee or a political action committee, knowingly and willfully 5 violates the provisions of section 14-107-a of this article shall be 6 subject to a civil penalty, up to one thousand dollars or up to the cost 7 of the communication, whichever is greater, to be recoverable in a 8 special proceeding or civil action to be brought by the state board of 9 elections. 10 § 12. Severability. If any clause, sentence, subdivision, paragraph, 11 section or part of this act be adjudged by any court of competent juris- 12 diction to be invalid, such judgment shall not affect, impair or invali- 13 date the remainder thereof, but shall be confined in its operation to 14 the clause, sentence, subdivision, paragraph, section or part thereof 15 directly involved in the controversy in which such judgment shall have 16 been rendered. 17 § 13. This act shall take effect on the thirtieth day after it shall 18 have become a law. 19 PART B 20 Section 1. Subdivision 3 of section 14-124 of the election law, as 21 amended by chapter 71 of the laws of 1988, is amended to read as 22 follows: 23 3. The contribution and receipt limits of this article shall not apply 24 to monies received and expenditures made by a party committee or consti- 25 tuted committee to maintain a permanent headquarters and staff and carry 26 on ordinary activities which are not for the express purpose of promot- 27 ing the candidacy of specific candidates; provided that such monies 28 described in this subdivision shall be deposited in a segregated 29 account. 30 § 2. This act shall take effect immediately. 31 PART C 32 Section 1. Subdivision 1 of section 14-104 of the election law, as 33 amended by chapter 430 of the laws of 1997, is amended to read as 34 follows: 35 1. Any candidate for election to public office, or for nomination for 36 public office at a contested primary election or convention, or for 37 election to a party position at a primary election, shall file state- 38 ments sworn, or subscribed and bearing a form notice that false state- 39 ments made therein are punishable as a class A misdemeanor pursuant to 40 section 210.45 of the penal law, at the times prescribed by this article 41 setting forth the particulars specified by section 14-102 of this arti- 42 cle, as to all moneys or other valuable things, paid, given, expended or 43 promised by him or her to aid his or her own nomination or election, or 44 to promote the success or defeat of a political party, or to aid or 45 influence the nomination or election or the defeat of any other candi- 46 date to be voted for at the election or primary election or at a conven- 47 tion, including contributions to political committees, officers, members 48 or agents thereof, and transfers, receipts and contributions to him or 49 her to be used for any of the purposes above specified, or in lieu ther- 50 eof, any such candidate may file such a sworn statement at the first 51 filing period, on a form prescribed by the state board of elections that 52 such candidate has made no such expenditures and does not intend to makeS. 8160 10 1 any such expenditures, except through a political committee authorized 2 by such candidate pursuant to this article. Such candidate may desig- 3 nate a committee of no less than three persons who shall be authorized 4 to appoint and remove the treasurer of any authorized committee of the 5 candidate. The designation or revocation of the committee shall be 6 evidenced in a writing filed with the state board of elections by the 7 candidate authorizing the committee. The candidate may revoke such 8 designation at any time. A committee authorized by such a candidate may 9 fulfill all of the filing requirements of this act on behalf of such 10 candidate. 11 § 2. The election law is amended by adding a new section 14-132 to 12 read as follows: 13 § 14-132. Disposition of campaign funds. 1. Upon the death of a 14 candidate, former candidate or holder of elective office, where such 15 candidate or candidate's authorized committee received campaign contrib- 16 utions, all such funds shall be disposed of by any of the following 17 means, or any combination thereof, within two years of the death of such 18 person: 19 (a) returning, pro rata, to each contributor the funds that have not 20 been spent or obligated; 21 (b) donating the funds to a charitable organization or organizations 22 that meet the qualifications of section 501(c)(3) of the Internal Reven- 23 ue Code; 24 (c) donating the funds to the state university of New York or the city 25 university of New York; 26 (d) donating the funds to the state's general fund; or 27 (e) contributing or transferring the funds to a candidate, party, 28 constituted or political committee in accordance with the applicable 29 limits, if any, set forth in this article. 30 2. No such candidate's authorized political committee shall dispose of 31 campaign funds by making expenditures for personal use as defined in 32 section 14-130 of this article. 33 3. If funds are not disposed of within the time required by this 34 section, such funds shall be recoverable by the chief enforcement coun- 35 sel of the state board of elections in a special proceeding in state 36 supreme court in the manner prescribed by section 16-116 of this chapter 37 and deposited into the state's general fund. 38 § 3. This act shall take effect July 1, 2017, provided, however, that 39 where the applicable time frame for disposing of funds established by 40 section 14-132 of the election law, as added by section two of this act, 41 has elapsed on such effective date, all funds shall be disposed of with- 42 in 12 months of such effective date. INSERT 43 PART D 44 Section 1. Paragraph 4 of subdivision (c) of section 1-h of the 45 legislative law, as added by section 1 of part B of chapter 399 of the 46 laws of 2011, is amended to read as follows: 47 (4) Any lobbyist registered pursuant to section one-e of this article 48 whose lobbying activity is performed on its own behalf and not pursuant 49 to retention by a client: 50 (i) that has spent over [fifty] fifteen thousand dollars in the aggre- 51 gate for reportable compensation and expenses for lobbying, either 52 during the calendar year, or during the twelve-month period, prior to 53 the date of this bi-monthly report, andS. 8160 11 1 (ii) at least three percent of whose total expenditures during the 2 same period were devoted to lobbying in New York shall report to the 3 commission the names of each source of funding that has contributed over 4 [five] two thousand five hundred dollars from a single source that were 5 used to fund the lobbying activities reported and the [amounts] amount 6 of each contribution received from each identified source of funding; 7 provided, however, that amounts received from each identified source of 8 funding shall not be required to be disclosed if such amounts constitute 9 membership dues, fees, or assessments charged by the reporting entity to 10 enable an individual or entity to be a member of the reporting entity. 11 This disclosure shall not require disclosure of the sources of funding 12 whose disclosure, in the determination of the commission based upon a 13 review of the relevant facts presented by the reporting lobbyist, may 14 cause harm, threats, harassment, or reprisals to the source or to indi- 15 viduals or property affiliated with the source. The reporting lobbyist 16 may appeal the commission's determination and such appeal shall be heard 17 by a judicial hearing officer who is independent and not affiliated with 18 or employed by the commission, pursuant to regulations promulgated by 19 the commission. The reporting lobbyist shall not be required to disclose 20 the sources of funding that are the subject of such appeal pending final 21 judgment on appeal. 22 The disclosure shall not apply to: 23 (i) any corporation registered pursuant to article seven-A of the 24 executive law that is qualified as an exempt organization by the United 25 States Department of the Treasury under I.R.C. § 501(c)(3); provided, 26 however, that this disclosure shall apply to any in-kind donations of 27 staff, staff time, personnel, offices, office supplies, financial 28 support of any kind or any other resources to any corporation or entity 29 that is qualified as an exempt organization by the United States Depart- 30 ment of the Treasury under I.R.C. 501(c)(4) when such in-kind donations 31 are over two thousand five hundred dollars and from any corporation or 32 entity that is qualified as an exempt organization by the United States 33 Department of the Treasury under I.R.C. 501(c)(3). In such case the 34 entity receiving such in-kind donations shall disclose the fair market 35 value and identify the I.R.C. 501(c)(3) entity providing such in-kind 36 donations and give notice within a reasonable time to the 501(c)(3) 37 entity that it shall be required to file a report with the department of 38 law pursuant to section one hundred seventy-two-e of the executive law; 39 (ii) any corporation registered pursuant to article seven-A of the 40 executive law that is qualified as an exempt organization by the United 41 States Department of the Treasury under I.R.C. § 501(c)(4) and whose 42 primary activities concern any area of public concern determined by the 43 commission to create a substantial likelihood that application of this 44 disclosure requirement would lead to harm, threats, harassment, or 45 reprisals to a source of funding or to individuals or property affil- 46 iated with such source, including but not limited to the area of civil 47 rights and civil liberties and any other area of public concern deter- 48 mined pursuant to regulations promulgated by the commission to form a 49 proper basis for exemption on this basis from this disclosure require- 50 ment; or 51 (iii) any governmental entity. 52 The joint commission on public ethics shall promulgate regulations to 53 implement these requirements. 54 § 2. Paragraph 4 of subdivision (c) of section 1-j of the legislative 55 law, as added by section 2 of part B of chapter 399 of the laws of 2011, 56 is amended to read as follows:S. 8160 12 1 (4) Any client of a lobbyist that is required to file a semi-annual 2 report and: 3 (i) that has spent over [fifty] fifteen thousand dollars in the aggre- 4 gate for reportable compensation and expenses for lobbying, either 5 during the calendar year, or during the twelve-month period, prior to 6 the date of this semi-annual report, and 7 (ii) at least three percent of whose total expenditures during the 8 same period were devoted to lobbying in New York shall report to the 9 commission the names of each source of funding that has contributed over 10 [five] two thousand five hundred dollars from a single source that were 11 used to fund the lobbying activities reported and the [amounts] amount 12 of each contribution received from each identified source of funding; 13 provided, however, that amounts received from each identified source of 14 funding shall not be required to be disclosed if such amounts constitute 15 membership dues, fees, or assessments charged by the reporting entity to 16 enable an individual or entity to be a member of the reporting entity. 17 This disclosure shall not require disclosure of the sources of funding 18 whose disclosure, in the determination of the commission based upon a 19 review of the relevant facts presented by the reporting client or lobby- 20 ist, may cause harm, threats, harassment, or reprisals to the source or 21 to individuals or property affiliated with the source. The reporting 22 lobbyist may appeal the commission's determination and such appeal shall 23 be heard by a judicial hearing officer who is independent and not affil- 24 iated with or employed by the commission, pursuant to regulations 25 promulgated by the commission. The reporting lobbyist shall not be 26 required to disclose the sources of funding that are the subject of such 27 appeal pending final judgment on appeal. 28 The disclosure shall not apply to: 29 (i) any corporation registered pursuant to article seven-A of the 30 executive law that is qualified as an exempt organization by the United 31 States Department of the Treasury under I.R.C. § 501(c)(3); provided, 32 however, that this disclosure shall apply to any in-kind donations of 33 staff, staff time, personnel, offices, office supplies, financial 34 support of any kind or any other resources to any corporation or entity 35 that is qualified as an exempt organization by the United States Depart- 36 ment of the Treasury under I.R.C. 501(c)(4) when such in-kind donations 37 are over two thousand five hundred dollars and from any corporation or 38 entity that is qualified as an exempt organization by the United States 39 Department of the Treasury under I.R.C. 501(c)(3). In such case the 40 entity receiving such in-kind donations shall disclose the fair market 41 value and identify the I.R.C. 501(c)(3) entity providing such in-kind 42 donations and give notice within a reasonable time to the 501(c)(3) 43 entity that it shall be required to file a report with the department of 44 law pursuant to section one hundred seventy-two-e of the executive law; 45 (ii) any corporation registered pursuant to article seven-A of the 46 executive law that is qualified as an exempt organization by the United 47 States Department of the Treasury under I.R.C. § 501(c)(4) and whose 48 primary activities concern any area of public concern determined by the 49 commission to create a substantial likelihood that application of this 50 disclosure requirement would lead to harm, threats, harassment, or 51 reprisals to a source of funding or to individuals or property affil- 52 iated with such source, including but not limited to the area of civil 53 rights and civil liberties and any other area of public concern deter- 54 mined pursuant to regulations promulgated by the commission to form a 55 proper basis for exemption on this basis from this disclosure require- 56 ment; orS. 8160 13 1 (iii) any governmental entity. 2 The joint commission on public ethics shall promulgate regulations to 3 implement these requirements. 4 § 3. This act shall take effect on the thirtieth day after it shall 5 have become a law. 6 PART E 7 Section 1. Subdivision (b) of section 1-k of the legislative law, as 8 amended by chapter 1 of the laws of 2005, is amended to read as follows: 9 (b) No person shall accept such a retainer or employment. [A violation10of] Any person who violates this section shall be subject to a civil 11 penalty not to exceed the greater of ten thousand dollars or the value 12 of the contingent fee, and such violation shall be a class A misdemea- 13 nor. 14 § 2. This act shall take effect immediately. 15 PART F 16 Section 1. The executive law is amended by adding a new section 172-e 17 to read as follows: 18 § 172-e. Disclosure of certain donations by charitable non-profit 19 entities. 1. Definitions. For the purposes of this section: 20 (a) "Covered entity" shall mean any corporation or entity that is 21 qualified as an exempt organization or entity by the United States 22 Department of the Treasury under I.R.C. 501(c)(3) that is required to 23 report to the department of law pursuant to this section. 24 (b) "In-kind donation" shall mean donations of staff, staff time, 25 personnel, offices, office supplies, financial support of any kind or 26 any other resources. 27 (c) "Donation" shall mean any contribution, including a gift, loan, 28 in-kind donation, advance or deposit of money or anything of value. 29 (d) "Recipient entity" shall mean any corporation or entity that is 30 qualified as an exempt organization or entity by the United States 31 Department of the Treasury under I.R.C. 501(c)(4) that is required to 32 file a source of funding report with the joint commission on public 33 ethics pursuant to sections one-h and one-j of the legislative law. 34 (e) "Reporting period" shall mean the six month period within a calen- 35 dar year starting January first and ending June thirtieth or the six 36 month period within a calendar year starting July first and ending 37 December thirty-first. 38 2. Funding disclosure reports to be filed by covered entities. (a) Any 39 covered entity that makes an in-kind donation in excess of two thousand 40 five hundred dollars to a recipient entity during a relevant reporting 41 period shall file a funding disclosure report with the department of 42 law. The funding disclosure report shall include: 43 (i) the name and address of the covered entity that made the in-kind 44 donation; 45 (ii) the name and address of the recipient entity that received or 46 benefitted from the in-kind donation; 47 (iii) the names of any persons who exert operational or managerial 48 control over the covered entity. The disclosures required by this para- 49 graph shall include the name of at least one natural person; 50 (iv) the date the in-kind donation was made by the covered entity;S. 8160 14 1 (v) any donation in excess of two thousand five hundred dollars to the 2 covered entity during the relevant reporting period including the iden- 3 tity of the donor of any such donation; and 4 (vi) the date of any such donation to a covered entity. 5 (b) The covered entity shall file a funding disclosure report with the 6 department of law within thirty days of the close of a reporting period. 7 3. Public disclosure of funding disclosure reports. The department of 8 law shall promulgate any regulations necessary to implement these 9 requirements and shall forward the disclosure reports to the joint 10 commission on public ethics for the purpose of publishing such reports 11 on the commission's website, within thirty days of the close of each 12 reporting period; provided however that the attorney general, or his or 13 her designee, may determine that disclosure of donations to the covered 14 entity shall not be made public if, based upon a review of the relevant 15 facts presented by the covered entity, such disclosure may cause harm, 16 threats, harassment, or reprisals to the source of the donation or to 17 individuals or property affiliated with the source of the donation. The 18 covered entity may appeal the attorney general's determination and such 19 appeal shall be heard by a judicial hearing officer who is independent 20 and not affiliated with or employed by the department of law, pursuant 21 to regulations promulgated by the department of law. The covered enti- 22 ty's sources of donations that are the subject of such appeal shall not 23 be made public pending final judgment on appeal. 24 § 2. This act shall take effect on the ninetieth day after it shall 25 have become a law. 26 PART G 27 Section 1. The executive law is amended by adding a new section 172-f 28 to read as follows: 29 § 172-f. Disclosure of certain activities by non-charitable non-profit 30 entities. 1. Definitions. (a) "Covered Entity" means any corporation 31 or entity that is qualified as an exempt organization or entity by the 32 United States Department of the Treasury under I.R.C. 501(c)(4). 33 (b) "Covered communication" means a communication, that does not 34 require a report pursuant to article one-A of the legislative law or 35 article fourteen of the election law, by a covered entity conveyed to 36 five hundred or more members of a general public audience in the form 37 of: (i) an audio or video communication via broadcast, cable or satel- 38 lite; (ii) a written communication via advertisements, pamphlets, circu- 39 lars, flyers, brochures, letterheads; or (iii) other published statement 40 which: refers to and advocates for or against a clearly identified 41 elected official or the position of any elected official or administra- 42 tive or legislative body relating to the outcome of any vote or 43 substance of any legislation, potential legislation, pending legis- 44 lation, rule, regulation, hearing, or decision by any legislative, exec- 45 utive or administrative body. 46 Covered communication shall not include: (i) communications with a 47 professional journalist or newscaster, including an editorial board or 48 editorial writer of a newspaper, magazine, news agency, press associ- 49 ation or wire service, relating to news, as these terms are defined in 50 section seventy-nine-h of the civil rights law, and communications 51 relating to confidential and non-confidential news as described in 52 subdivisions (b) and (c) of section seventy-nine-h of the civil rights 53 law respectively and communications made pursuant to community outreach 54 efforts for broadcast stations required by federal law; orS. 8160 15 1 (ii) a communication that is: (A) directed, sent or distributed by the 2 covered entity only to individuals who affirmatively consent to be 3 members of the covered entity, contribute funds to the covered entity, 4 or, pursuant to the covered entity's articles or bylaws, have the right 5 to vote directly or indirectly for the election of directors or offi- 6 cers, or on changes to bylaws, disposition of all or substantially all 7 of the covered entity's assets or the merger or dissolution of the 8 covered entity; or (B) for the purpose of promoting or staging any 9 candidate debate, town hall or similar forum to which at least two 10 candidates seeking the same office, or two proponents of differing posi- 11 tions on a referendum or question submitted to voters, are invited as 12 participants, and which does not promote or advance one candidate or 13 position over another. 14 (c) "Expenditures for covered communications" shall mean: (i) any 15 expenditure made, liability incurred, or contribution provided for 16 covered communications; or (ii) any other transfer of funds, assets, 17 services or any other thing of value to any individual, group, associ- 18 ation, corporation whether organized for profit or not-for-profit, labor 19 union, political committee, political action committee, or any other 20 entity for the purpose of supporting or engaging in covered communi- 21 cations by the recipient or a third party. 22 (d) "Donation" shall mean any contribution, including in-kind, gift, 23 loan, advance or deposit of money or anything of value made to a covered 24 entity unless such donation is deposited into an account the funds of 25 which are not used for making expenditures for covered communications. 26 (e) "Reporting period" shall mean the six month period within a calen- 27 dar year starting January first and ending June thirtieth or the six 28 month period within a calendar year starting July first and ending 29 December thirty-first. 30 2. Disclosure of expenditures for covered communications. (a) Any 31 covered entity that makes expenditures for covered communications in an 32 aggregate amount or fair market value exceeding ten thousand dollars in 33 a calendar year shall file a financial disclosure report with the 34 department of law. The financial disclosure report shall include: 35 (i) the name and address of the covered entity that made the expendi- 36 ture for covered communications; 37 (ii) the name or names of any individuals who exert operational or 38 managerial control over the covered entity. The disclosures required by 39 this paragraph shall include the name of at least one natural person; 40 (iii) a description of the covered communication; 41 (iv) the dollar amount paid for each covered communication, the name 42 and address of the person or entity receiving the payment, and the date 43 the payment was made; and 44 (iv) the name and address of any individual, corporation, association, 45 or group that made a donation of one thousand dollars or more to the 46 covered entity and the date of such donation. 47 (b) The covered entity shall file a financial disclosure report with 48 the department of law within thirty days of the close of a reporting 49 period. 50 (c) If a covered entity keeps one or more segregated bank accounts 51 containing funds used solely for covered communications and makes all of 52 its expenditures for covered communications from such accounts, then 53 with respect to donations included in subparagraph (iv) of paragraph (a) 54 of this subdivision, the financial report need only include donations 55 deposited into such accounts.S. 8160 16 1 3. The department of law shall make the financial disclosure reports 2 available to the public on the department of law website within thirty 3 days of the close of each reporting period, provided however that the 4 attorney general, or his or her designee, may determine that disclosure 5 of donations shall not be made public if, based upon a review of the 6 relevant facts presented by the covered entity, such disclosure may 7 cause harm, threats, harassment, or reprisals to the source of the 8 donation or to individuals or property affiliated with the source of the 9 donation. The covered entity may appeal the attorney general's determi- 10 nation and such appeal shall be heard by a judicial hearing officer who 11 is independent and not affiliated with or employed by the department of 12 law, pursuant to regulations promulgated by the department of law. The 13 covered entity shall not be required to disclose the sources of 14 donations that are the subject of such appeal pending final judgment on 15 appeal. 16 § 2. This act shall take effect on the thirtieth day after it shall 17 have become a law. 18 PART H 19 Section 1. The executive law is amended by adding a new section 109 to 20 read as follows: 21 § 109. Registration of certain service providers. 1. For purposes of 22 this section: 23 (a) "Client" shall mean a person or entity who in the preceding calen- 24 dar year retained or hired the political consultant relating to matters 25 before any state or local government agency, authority or official, 26 including services, advice or consultation relating to any state or 27 local government contract for real property, goods or services, an 28 appearance in a ratemaking proceeding, an appearance in a regulatory 29 matter, or an appearance in a legislative matter other than matters 30 described in subparagraph (E) of the second undesignated paragraph of 31 subdivision (c) of section one-c of the legislative law. 32 (b) "Political consulting services" shall mean services provided by a 33 political consultant to or on behalf of an elected public official in 34 New York state or to or on behalf of a candidate for elected office in 35 New York state, or to or on behalf of a person nominated for elected 36 public office which services: (1) assist or are intended to assist in a 37 campaign for nomination for election or election to office in New York 38 state, including fundraising activities, voter outreach, composition and 39 distribution of promotional literature, advertisements, or other similar 40 communications, as set forth in section 14-106 of the election law, or 41 (2) consist of political advice to an elected public official or candi- 42 date for elected public office in New York state or person nominated for 43 elected public office; provided, however, that political consulting 44 services shall not include bona fide legal work directly related to 45 litigation or legal advice with regard to securing a place on the 46 ballot, the petitioning process, the conduct of an election, or which 47 involves the election law. 48 (c) "Political consultant" shall mean a person who holds himself or 49 herself out to persons in this state as a person who performs political 50 consulting services in a professional capacity and who is usually 51 compensated, excluding reimbursement for expenses, for such services. 52 2. The secretary of state shall promulgate rules and regulations 53 prescribing a registration form to be used by any political consultant 54 who provides political consulting services to a sitting elected publicS. 8160 17 1 official, candidate for elected public office or person nominated for 2 elected public office and who has also been retained by a client for 3 such services. 4 3. Such registration form shall identify: 5 (a) the name, address, and telephone number of the political consult- 6 ant; 7 (b) the name, address, and telephone number of each sitting elected 8 public official, candidate for elected public office, and person nomi- 9 nated for elected public office who the political consultant provided 10 political consulting services to; 11 (c) the name, address, and telephone number of each client who retains 12 or hires a political consultant in the preceding calendar year provided, 13 that in the event the client is an entity, at least one natural person 14 who has a controlling interest in such entity shall be identified; and 15 (d) a brief description of the nature of the political consulting 16 services provided to each identified client. 17 4. Such registration shall be filed with the department of state and 18 shall cover a six month reporting period. The reporting period shall 19 mean the six month period within a calendar year starting January first 20 and ending June thirtieth or the six month period within a calendar year 21 starting July first and ending December thirty-first. 22 5. The secretary of state shall post the completed forms on the 23 department of state's website within thirty days of the close of each 24 reporting period. 25 6. The department of state may impose a civil penalty of up to seven 26 hundred fifty dollars upon any political consultant who fails to file a 27 registration required by this section provided, however, that the secre- 28 tary shall provide such political consultant a reasonable opportunity to 29 cure such a failure. 30 7. The department of state shall adopt, amend and rescind rules and 31 regulations defining the degree and extent of political consulting 32 services necessary to require the reporting pursuant to this section. 33 § 2. This act shall take effect on the sixtieth day after it shall 34 have become a law. 35 PART I 36 Section 1. Subparagraph (B) of the second undesignated paragraph of 37 subdivision (c) of section 1-c of the legislative law, as added by chap- 38 ter 1 of the laws of 2005, is amended to read as follows: 39 (B) (i) Newspapers and other periodicals and radio and television 40 stations, and owners and employees thereof, provided that their activ- 41 ities in connection with proposed legislation, rules, regulations or 42 rates, municipal ordinances and resolutions, executive orders, tribal- 43 state compacts, memoranda of understanding or other tribal-state agree- 44 ments related to Class III gaming as provided in 25 U.S.C. § 2701, or 45 procurement contracts by a state agency, municipal agency, local legis- 46 lative body, the state legislature, or the unified court system, are 47 limited to the publication or broadcast of news items, editorials or 48 other comments, or paid advertisements; 49 (ii) Communications with a professional journalist, or newscaster, 50 including an editorial board or editorial writer of a newspaper, maga- 51 zine, news agency, press association or wire service, relating to news, 52 as these terms are defined in section seventy-nine-h of the civil rights 53 law, and communications relating to confidential and non-confidential 54 news as described in subdivisions (b) and (c) of section seventy-nine-hS. 8160 18 1 of the civil rights law respectively and communications made pursuant to 2 community outreach efforts for broadcast stations required by federal 3 law. 4 § 2. This act shall take effect immediately. 5 PART J 6 Section 1. Paragraph (a) of subdivision 13 of section 94 of the execu- 7 tive law, as amended by section 6 of part A of chapter 399 of the laws 8 of 2011, is amended to read as follows: 9 (a) Investigations. If the commission receives a sworn complaint 10 alleging a violation of section seventy-three, seventy-three-a, or 11 seventy-four of the public officers law, section one hundred seven of 12 the civil service law or article one-A of the legislative law by a 13 person or entity subject to the jurisdiction of the commission including 14 members of the legislature and legislative employees and candidates for 15 member of the legislature, or if a reporting individual has filed a 16 statement which reveals a possible violation of these provisions, or if 17 the commission determines on its own initiative to investigate a possi- 18 ble violation, the commission shall notify the individual in writing, 19 describe the possible or alleged violation of such laws, provide a 20 description of the allegations against him or her and the evidence, if 21 any, supporting such allegations, provided however that the joint 22 commission shall redact any information that might, in the judgment of 23 the commission, be prejudicial to either the complainant or the investi- 24 gation; the letter also shall set forth the sections of law alleged to 25 have been violated and provide the person with a fifteen day period in 26 which to submit a written response, including any evidence, statements, 27 and proposed witnesses, setting forth information relating to the activ- 28 ities cited as a possible or alleged violation of law. The commission 29 shall, within [forty-five] sixty calendar days after a complaint or a 30 referral is received or an investigation is initiated on the commis- 31 sion's own initiative, vote on whether to commence a full investigation 32 of the matter under consideration to determine whether a substantial 33 basis exists to conclude that a violation of law has occurred. The staff 34 of the joint commission shall provide to the members prior to such vote 35 information regarding the likely scope and content of the investigation, 36 and a subpoena plan, to the extent such information is available. Such 37 investigation shall be conducted if at least eight members of the 38 commission vote to authorize it. Where the subject of such investigation 39 is a member of the legislature or a legislative employee or a candidate 40 for member of the legislature, at least two of the eight or more members 41 who so vote to authorize such an investigation must have been appointed 42 by a legislative leader or leaders from the major political party in 43 which the subject of the proposed investigation is enrolled if such 44 person is enrolled in a major political party. Where the subject of such 45 investigation is a state officer or state employee, at least two of the 46 eight or more members who so vote to authorize such an investigation 47 must have been appointed by the governor and lieutenant governor. Where 48 the subject of such investigation is a statewide elected official or a 49 direct appointee of such an official, at least two of the eight or more 50 members who so vote to authorize such an investigation must have been 51 appointed by the governor and lieutenant governor and be enrolled in the 52 major political party in which the subject of the proposed investigation 53 is enrolled, if such person is enrolled in a major political party.S. 8160 19 1 § 2. Paragraph (b) of subdivision 13 of section 94 of the executive 2 law, as amended by section 6 of part A of chapter 399 of the laws of 3 2011, is amended to read as follows: 4 (b) Substantial basis investigation. Upon the affirmative vote of not 5 less than eight commission members to commence a substantial basis 6 investigation, written notice of the commission's decision shall be 7 provided to the individual who is the subject of such substantial basis 8 investigation. Such written notice shall include a copy of the commis- 9 sion's rules and procedures and shall also include notification of such 10 individual's right to be heard within thirty calendar days of the date 11 of the commission's written notice. If the commission votes to commence 12 a substantial basis investigation, the commission shall provide to the 13 individual a notice setting forth the alleged violations of law and the 14 factual basis for those allegations. The commission shall provide to 15 the individual any additional evidence supporting the allegations not 16 set forth in the letter sent pursuant to paragraph (a) of this subdivi- 17 sion in sufficient detail to enable the individual to respond, at least 18 seven days before the hearing. Such hearing shall afford the individual 19 with a reasonable opportunity to appear in person, and by attorney, give 20 sworn testimony and present evidence. Such hearing shall occur before 21 the commission votes on whether or not to issue a substantial basis 22 report. The commission shall also inform the individual of its rules 23 regarding the conduct of adjudicatory proceedings and appeals and the 24 other due process procedural mechanisms available to such individual. If 25 the commission determines at any stage that there is no violation [or], 26 that any potential [conflict of interest] violation has been rectified, 27 or if the investigation is closed for any other reason, it shall so 28 advise the individual and the complainant, if any in writing within 29 fifteen days of such decision. All of the foregoing proceedings shall 30 be confidential. 31 § 3. This act shall take effect immediately. 32 PART K 33 Section 1. Subdivision 3 of section 73 of the public officers law, as 34 amended by chapter 242 of the laws of 1989, is amended to read as 35 follows: 36 3. (a) No statewide elected official, member of the legislature, 37 legislative employee, full-time salaried state officer or employee shall 38 receive, directly or indirectly, or enter into any agreement express or 39 implied for, any compensation, in whatever form, for the appearance or 40 rendition of services by himself, herself or another against the inter- 41 est of the state in relation to any case, proceeding, application or 42 other matter before, or the transaction of business by himself, herself 43 or another with, the court of claims. 44 (b) No state officer or employee who is required to file an annual 45 statement of financial disclosure pursuant to the provisions of section 46 seventy-three-a of this article, and is not otherwise subject to the 47 provisions of this section, shall receive, directly or indirectly, or 48 enter into any agreement express or implied, for any compensation, in 49 whatever form, for the appearance or rendition of services by himself, 50 herself or another against the interest of the state agency by which he 51 or she is employed or affiliated in relation to any case, proceeding, 52 application or other matter before, or the transaction of business by 53 himself, herself or another with, the court of claims.S. 8160 20 1 § 2. Subdivision 5 of section 73 of the public officers law, as 2 amended by chapter 14 of the laws of 2007, is amended to read as 3 follows: 4 5. No statewide elected official, state officer or employee, individ- 5 ual whose name has been submitted by the governor to the senate for 6 confirmation to become a state officer or employee, member of the legis- 7 lature or legislative employee shall, directly or indirectly: 8 (a) solicit, accept or receive any gift having more than a nominal 9 value, whether in the form of money, service, loan, travel, lodging, 10 meals, refreshments, entertainment, discount, forbearance or promise, or 11 in any other form, under circumstances in which it could reasonably be 12 inferred that the gift was intended to influence him or her, or could 13 reasonably be expected to influence him or her, in the performance of 14 his or her official duties or was intended as a reward for any official 15 action on his or her part. No person shall, directly or indirectly, 16 offer or make any such gift to a statewide elected official, or any 17 state officer or employee, member of the legislature or legislative 18 employee under such circumstances. 19 (b) solicit, accept or receive any gift, as defined in section one-c 20 of the legislative law, from any person who is prohibited from deliver- 21 ing such gift pursuant to section one-m of the legislative law unless 22 under the circumstances it is not reasonable to infer that the gift was 23 intended to influence him or her; or 24 (c) permit the solicitation, acceptance, or receipt of any gift, as 25 defined in section one-c of the legislative law, from any person who is 26 prohibited from delivering such gift pursuant to section one-m of the 27 legislative law to a third party including a charitable organization, on 28 such official's designation or recommendation or on his or her behalf, 29 under circumstances where it is reasonable to infer that the gift was 30 intended to influence him or her. 31 § 3. Subdivisions 6 and 7 of section 73 of the public officers law, as 32 amended by chapter 813 of the laws of 1987, paragraph (a) of subdivision 33 6 as amended by section 3 of part A of chapter 399 of the laws of 2011, 34 paragraph (b) of subdivision 6 as amended by chapter 14 of the laws of 35 2007, and paragraph (a) of subdivision 7 as amended and paragraph (h) of 36 subdivision 7 as added by chapter 530 of the laws of 2004, are amended 37 to read as follows: 38 6. (a) Every legislative employee not subject to the provisions of 39 section seventy-three-a of this chapter shall, on and after December 40 fifteenth and before the following January fifteenth, in each year, file 41 with the joint commission on public ethics and the legislative ethics 42 commission a financial disclosure statement of 43 (1) each financial interest, direct or indirect of himself or herself, 44 his or her spouse and his or her unemancipated children under the age of 45 eighteen years in any activity which is subject to the jurisdiction of a 46 regulatory agency or name of the entity in which the interest is had and 47 whether such interest is over or under five thousand dollars in value. 48 (2) every office and directorship held by him or her in any corpo- 49 ration, firm or enterprise which is subject to the jurisdiction of a 50 regulatory agency, including the name of such corporation, firm or 51 enterprise. 52 (3) any other interest or relationship which he or she determines in 53 his or her discretion might reasonably be expected to be particularly 54 affected by legislative action or in the public interest should be 55 disclosed.S. 8160 21 1 (b) Copies of such statements shall be open for public inspection and 2 copying. 3 (c) Any such legislative employee who knowingly and wilfully with 4 intent to deceive makes a false statement or gives information which he 5 or she knows to be false in any written statement required to be filed 6 pursuant to this subdivision, shall be assessed a civil penalty in an 7 amount not to exceed ten thousand dollars. Assessment of a civil penalty 8 shall be made by the legislative ethics [committee] commission in 9 accordance with the provisions of subdivision [twelve] ten of section 10 eighty of the legislative law. For a violation of this subdivision, the 11 [committee] commission may, in lieu of a civil penalty, refer a 12 violation to the appropriate prosecutor and upon conviction, but only 13 after such referral, such violation shall be punishable as a class A 14 misdemeanor. 15 7. (a) No statewide elected official, or state officer or employee, 16 other than in the proper discharge of official state or local govern- 17 mental duties, or member of the legislature or legislative employee, or 18 political party chairman shall receive, directly or indirectly, or enter 19 into any agreement express or implied for, any compensation, in whatever 20 form, for the appearance or rendition of services by himself, herself or 21 another in relation to any case, proceeding, application or other matter 22 before a state agency where such appearance or rendition of services is 23 in connection with: 24 (i) the purchase, sale, rental or lease of real property, goods or 25 services, or a contract therefor, from, to or with any such agency; 26 (ii) any proceeding relating to rate making; 27 (iii) the adoption or repeal of any rule or regulation having the 28 force and effect of law; 29 (iv) the obtaining of grants of money or loans; 30 (v) licensing; or 31 (vi) any proceeding relating to a franchise provided for in the public 32 service law. 33 (b) No political party chairman in a county wholly included in a city 34 having a population of one million or more shall receive, directly or 35 indirectly, or enter into any agreement express or implied for, any 36 compensation, in whatever form, for the appearance or rendition of 37 services by himself, herself or another in relation to any case, 38 proceeding, application or other matter before any city agency where 39 such appearance or rendition of services is in connection with: 40 (i) the purchase, sale, rental or lease of real property, goods or 41 services, or a contract therefor, from, to or with any such agency; 42 (ii) any proceeding relating to ratemaking; 43 (iii) the adoption or repeal of any rule or regulation having the 44 force and effect of law; 45 (iv) the obtaining of grants of money or loans; 46 (v) licensing. For purposes of this paragraph, the term "licensing" 47 shall mean any city agency activity respecting the grant, denial, 48 renewal, revocation, enforcement, suspension, annulment, withdrawal, 49 recall, cancellation or amendment of a license, permit or other form of 50 permission conferring the right or privilege to engage in (i) a profes- 51 sion, trade, or occupation or (ii) any business or activity regulated by 52 a regulatory agency of a city agency which in the absence of such 53 license, permit or other form of permission would be prohibited; and 54 (vi) any proceeding relating to a franchise. 55 (c) Nothing contained in this subdivision shall prohibit a statewide 56 elected official, or a state officer or employee, unless otherwiseS. 8160 22 1 prohibited, or a member of the legislature or legislative employee, or 2 political party chairman, from appearing before a state agency in a 3 representative capacity if such appearance in a representative capacity 4 is in connection with a ministerial matter. 5 (d) Nothing contained in this subdivision shall prohibit a member of 6 the legislature, or a legislative employee on behalf of such member, 7 from participating in or advocating any position in any matter in an 8 official or legislative capacity, including, but not limited to, acting 9 as a public advocate whether or not on behalf of a constituent. Nothing 10 in this paragraph shall be construed to limit the application of the 11 provisions of section seventy-seven of this chapter. 12 (e) Nothing contained in this subdivision shall prohibit a state offi- 13 cer or employee from appearing before a state agency in a representative 14 capacity on behalf of an employee organization in any matter where such 15 appearance is duly authorized by an employee organization. 16 (f) Nothing contained in this subdivision shall prohibit a political 17 party chairman from participating in or advocating any matter in an 18 official capacity. 19 (g) Nothing contained in this subdivision shall prohibit internal 20 research or discussion of a matter, provided, however, that the time is 21 not charged to the client and the person does not share in the net 22 revenues generated or produced by the matter. 23 (h) Nothing contained in this subdivision shall prohibit a state offi- 24 cer or employee, unless otherwise prohibited, from appearing or render- 25 ing services in relation to a case, proceeding, application or trans- 26 action before a state agency, other than the agency in which the officer 27 or employee is employed, when such appearance or rendition of services 28 is made while carrying out official duties as an elected or appointed 29 official, or employee of a local government or one of its agencies. 30 § 4. Subdivision 8-b of section 73 of the public officers law, as 31 added by chapter 540 of the laws of 2004, is renumbered subdivision 8-c. 32 § 5. Subdivision 10 of section 73 of the public officers law, as 33 amended by section 13 of part A of chapter 399 of the laws of 2011, is 34 amended to read as follows: 35 10. Nothing contained in this section, the judiciary law, the educa- 36 tion law or any other law or disciplinary rule shall be construed or 37 applied to prohibit any firm, association or corporation, in which any 38 present or former statewide elected official, state officer or employee, 39 or political party chairman, member of the legislature or legislative 40 employee is a member, associate, retired member, of counsel or share- 41 holder, from appearing, practicing, communicating or otherwise rendering 42 services in relation to any matter before, or transacting business with 43 a state agency, or a city agency with respect to a political party 44 chairman in a county wholly included in a city with a population of more 45 than one million, otherwise proscribed by this section, the judiciary 46 law, the education law or any other law or disciplinary rule with 47 respect to such official, member of the legislature or officer or 48 employee, or political party chairman, where such statewide elected 49 official, state officer or employee, member of the legislature or legis- 50 lative employee, or political party chairman does not share in the net 51 revenues, as defined in accordance with generally accepted accounting 52 principles by the joint commission on public ethics or by the legisla- 53 tive ethics [committee] commission in relation to persons subject to 54 their respective jurisdictions, resulting therefrom, or, acting in good 55 faith, reasonably believed that he or she would not share in the net 56 revenues as so defined; nor shall anything contained in this section,S. 8160 23 1 the judiciary law, the education law or any other law or disciplinary 2 rule be construed to prohibit any firm, association or corporation in 3 which any present or former statewide elected official, member of the 4 legislature, legislative employee, full-time salaried state officer or 5 employee or state officer or employee who is subject to the provisions 6 of section seventy-three-a of this article is a member, associate, 7 retired member, of counsel or shareholder, from appearing, practicing, 8 communicating or otherwise rendering services in relation to any matter 9 before, or transacting business with, the court of claims, where such 10 statewide elected official, member of the legislature, legislative 11 employee, full-time salaried state officer or employee or state officer 12 or employee who is subject to the provisions of section seventy-three-a 13 of this article does not share in the net revenues, as defined in 14 accordance with generally accepted accounting principles by the joint 15 commission on public ethics or by the legislative ethics [committee] 16 commission in relation to persons subject to their respective jurisdic- 17 tions, resulting therefrom, or, acting in good faith, reasonably 18 believed that he or she would not share in the net revenues as so 19 defined. 20 § 6. Paragraph 8 of subdivision 3 of section 73-a of the public offi- 21 cers law, as amended by section 37 of subpart A of part H of chapter 55 22 of the laws of 2014, subparagraphs (a), (b) and (c) as amended by 23 section 1 and subparagraphs (b-1) and (b-2) as added by section 2 of 24 part CC of chapter 56 of the laws of 2015, is amended to read as 25 follows: 26 8. (a) If the reporting individual practices law, is licensed by the 27 department of state as a real estate broker or agent or practices a 28 profession licensed by the department of education, or works as a member 29 or employee of a firm required to register pursuant to section one-e of 30 the legislative law as a lobbyist, describe the services rendered for 31 which compensation was paid including a general description of the prin- 32 cipal subject areas of matters undertaken by such individual and princi- 33 pal duties performed. Specifically state whether the reporting individ- 34 ual provides services directly to clients. Additionally, if such an 35 individual practices with a firm or corporation and is a partner or 36 shareholder of the firm or corporation, give a general description of 37 principal subject areas of matters undertaken by such firm or corpo- 38 ration. 39 ____________________________________________________________________ 40 ____________________________________________________________________ 41 ____________________________________________________________________ 42 ____________________________________________________________________ 43 ____________________________________________________________________ 44 (b) APPLICABLE ONLY TO NEW CLIENTS OR CUSTOMERS FOR WHOM SERVICES ARE 45 PROVIDED ON OR AFTER JULY FIRST, TWO THOUSAND TWELVE AND BEFORE DECEMBER 46 THIRTY-FIRST, TWO THOUSAND FIFTEEN, OR FOR NEW MATTERS FOR EXISTING 47 CLIENTS OR CUSTOMERS WITH RESPECT TO THOSE SERVICES THAT ARE PROVIDED ON 48 OR AFTER JULY FIRST, TWO THOUSAND TWELVE AND BEFORE DECEMBER 49 THIRTY-FIRST, TWO THOUSAND FIFTEEN: 50 If the reporting individual personally provides services to any person 51 or entity, or works as a member or employee of a partnership or corpo- 52 ration that provides such services (referred to hereinafter as a 53 "firm"), then identify each client or customer to whom the reporting 54 individual personally provided services, or who was referred to the firmS. 8160 24 1 by the reporting individual, and from whom the reporting individual or 2 his or her firm earned fees in excess of $10,000 during the reporting 3 period for such services rendered in direct connection with: 4 (i) A contract in an amount totaling $50,000 or more from the state or 5 any state agency for services, materials, or property; 6 (ii) A grant of $25,000 or more from the state or any state agency 7 during the reporting period; 8 (iii) A grant obtained through a legislative initiative during the 9 reporting period; or 10 (iv) A case, proceeding, application or other matter that is not a 11 ministerial matter before a state agency during the reporting period. 12 For purposes of this question, "referred to the firm" shall mean: 13 having intentionally and knowingly taken a specific act or series of 14 acts to intentionally procure for the reporting individual's firm or 15 knowingly solicit or direct to the reporting individual's firm in whole 16 or substantial part, a person or entity that becomes a client of that 17 firm for the purposes of representation for a matter as defined in 18 subparagraphs (i) through (iv) of this paragraph, as the result of such 19 procurement, solicitation or direction of the reporting individual. A 20 reporting individual need not disclose activities performed while 21 lawfully acting pursuant to paragraphs (c), (d), (e) and (f) of subdivi- 22 sion seven of section seventy-three of this article. 23 The disclosure requirement in this question shall not require disclo- 24 sure of clients or customers receiving medical or dental services, 25 mental health services, residential real estate brokering services, or 26 insurance brokering services from the reporting individual or his or her 27 firm. The reporting individual need not identify any client to whom he 28 or she or his or her firm provided legal representation with respect to 29 investigation or prosecution by law enforcement authorities, bankruptcy, 30 or domestic relations matters. With respect to clients represented in 31 other matters, where disclosure of a client's identity is likely to 32 cause harm, the reporting individual shall request an exemption from the 33 joint commission pursuant to paragraph [(i)] (i-1) of subdivision nine 34 of section ninety-four of the executive law, provided, however, that a 35 reporting individual who first enters public office after July first, 36 two thousand twelve, need not report clients or customers with respect 37 to matters for which the reporting individual or his or her firm was 38 retained prior to entering public office. 39 Client Nature of Services Provided 40 ________________________________________________________________________ 41 ________________________________________________________________________ 42 ________________________________________________________________________ 43 ________________________________________________________________________ 44 ________________________________________________________________________ 45 (b-1) APPLICABLE ONLY TO NEW CLIENTS OR CUSTOMERS FOR WHOM SERVICES 46 ARE PROVIDED ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND FIFTEEN, OR 47 FOR NEW MATTERS FOR EXISTING CLIENTS OR CUSTOMERS WITH RESPECT TO THOSE 48 SERVICES THAT ARE PROVIDED ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOU- 49 SAND FIFTEEN (FOR PURPOSES OF THIS QUESTION, "SERVICES" SHALL MEAN 50 CONSULTATION, REPRESENTATION, ADVICE OR OTHER SERVICES): 51 If the reporting individual receives income from employment reportable 52 in question 8(a) and personally provides services to any person or enti- 53 ty, or works as a member or employee of a partnership or corporation 54 that provides such services (referred to hereinafter as a "firm"), the 55 reporting individual shall identify each client or customer to whom theS. 8160 25 1 reporting individual personally provided services, or who was referred 2 to the firm by the reporting individual, and from whom the reporting 3 individual or his or her firm earned fees in excess of $10,000 during 4 the reporting period in direct connection with: 5 (i) A contract in an amount totaling $10,000 or more from the state or 6 any state agency for services, materials, or property; 7 (ii) A grant of $10,000 or more from the state or any state agency 8 during the reporting period; 9 (iii) A grant obtained through a legislative initiative during the 10 reporting period; or 11 (iv) A case, proceeding, application or other matter that is not a 12 ministerial matter before a state agency during the reporting period. 13 For such services rendered by the reporting individual directly to 14 each such client, describe each matter that was the subject of such 15 representation, the services actually provided and the payment received. 16 For payments received from clients referred to the firm by the reporting 17 individual, if the reporting individual directly received a referral fee 18 or fees for such referral, identify the client and the payment so 19 received. 20 For purposes of this question, "referred to the firm" shall mean: 21 having intentionally and knowingly taken a specific act or series of 22 acts to intentionally procure for the reporting individual's firm or 23 having knowingly solicited or directed to the reporting individual's 24 firm in whole or substantial part, a person or entity that becomes a 25 client of that firm for the purposes of representation for a matter as 26 defined in clauses (i) through (iv) of this subparagraph, as the result 27 of such procurement, solicitation or direction of the reporting individ- 28 ual. A reporting individual need not disclose activities performed while 29 lawfully acting in his or her capacity as provided in paragraphs (c), 30 (d), (e) and (f) of subdivision seven of section seventy-three of this 31 article. 32 Client Matter Nature of Services Provided Category 33 of Amount 34 (in Table I) 35 ________________________________________________________________________ 36 ________________________________________________________________________ 37 ________________________________________________________________________ 38 ________________________________________________________________________ 39 ________________________________________________________________________ 40 (b-2) APPLICABLE ONLY TO NEW CLIENTS OR CUSTOMERS FOR WHOM SERVICES 41 ARE PROVIDED ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND FIFTEEN, OR 42 FOR NEW MATTERS FOR EXISTING CLIENTS OR CUSTOMERS WITH RESPECT TO THOSE 43 SERVICES THAT ARE PROVIDED ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOU- 44 SAND FIFTEEN (FOR PURPOSES OF THIS QUESTION, "SERVICES" SHALL MEAN 45 CONSULTATION, REPRESENTATION, ADVICE OR OTHER SERVICES): 46 (i) With respect to reporting individuals who receive ten thousand 47 dollars or more from employment or activity reportable under question 48 8(a), for each client or customer NOT otherwise disclosed or exempted in 49 question 8 or 13, disclose the name of each client or customer known to 50 the reporting individual to whom the reporting individual provided 51 services: (A) who paid the reporting individual in excess of five thou- 52 sand dollars for such services; or (B) who had been billed with the 53 knowledge of the reporting individual in excess of five thousand dollarsS. 8160 26 1 by the firm or other entity named in question 8(a) for the reporting 2 individual's services. 3 Client Services Category of Amount 4 Actually Provided (in Table I) ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 5 FOLLOWING IS AN ILLUSTRATIVE, NON-EXCLUSIVE LIST OF EXAMPLES OF 6 DESCRIPTIONS OF "SERVICES ACTUALLY PROVIDED": 7 * REVIEWED DOCUMENTS AND CORRESPONDENCE; 8 * REPRESENTED CLIENT (IDENTIFY CLIENT BY NAME) IN LEGAL PROCEEDING; 9 * PROVIDED LEGAL ADVICE ON CLIENT MATTER (IDENTIFY CLIENT BY NAME); 10 * CONSULTED WITH CLIENT OR CONSULTED WITH LAW PARTNERS/ASSOCIATES/MEMBERS 11 OF FIRM ON CLIENT MATTER (IDENTIFY CLIENT BY NAME); 12 * PREPARED CERTIFIED FINANCIAL STATEMENT FOR CLIENT (IDENTIFY CLIENT BY 13 NAME); 14 * REFERRED INDIVIDUAL OR ENTITY (IDENTIFY CLIENT BY NAME) FOR 15 REPRESENTATION OR CONSULTATION; 16 * COMMERCIAL BROKERING SERVICES (IDENTIFY CUSTOMER BY NAME); 17 * PREPARED CERTIFIED ARCHITECTURAL OR ENGINEERING 18 RENDERINGS FOR CLIENT (IDENTIFY CUSTOMER BY NAME); 19 * COURT APPOINTED GUARDIAN OR EVALUATOR (IDENTIFY COURT NOT CLIENT). 20 (ii) With respect to reporting individuals who disclosed in question 21 8(a) that the reporting individual did not provide services to a client 22 but provided services to a firm or business, identify the category of 23 amount received for providing such services and describe the services 24 rendered. 25 Services Actually Provided Category of Amount (Table I) ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 26 A reporting individual need not disclose activities performed while 27 lawfully acting in his or her capacity as provided in paragraphs (c), 28 (d), (e) and (f) of subdivision seven of section seventy-three of this 29 article. 30 The disclosure requirement in questions (b-1) and (b-2) shall not 31 require disclosing clients or customers receiving medical, pharmaceu- 32 tical or dental services, mental health services, or residential real 33 estate brokering services from the reporting individual or his or her 34 firm or if federal law prohibits or limits disclosure. The reporting 35 individual need not identify any client to whom he or she or his or her 36 firm provided legal representation with respect to investigation or 37 prosecution by law enforcement authorities, bankruptcy, family court, 38 estate planning, or domestic relations matters, nor shall the reporting 39 individual identify individuals represented pursuant to an insurance 40 policy but the reporting individual shall in such circumstances only 41 report the entity that provides compensation to the reporting individ- 42 ual; with respect to matters in which the client's name is required by 43 law to be kept confidential (such as matters governed by the family 44 court act) or in matters in which the reporting individual represents or 45 provides services to minors, the client's name may be replaced with 46 initials. To the extent that the reporting individual, or his or her 47 firm, provided legal representation with respect to an initial publicS. 8160 27 1 offering, and professional disciplinary rules, federal law or regu- 2 lations restrict the disclosure of information relating to such work, 3 the reporting individual shall (i) disclose the identity of the client 4 and the services provided relating to the initial public offering to the 5 office of court administration, who will maintain such information 6 confidentially in a locked box; and (ii) include in his or her response 7 to questions (b-1) and (b-2) that pursuant to this paragraph, a disclo- 8 sure to the office of court administration has been made. Upon such time 9 that the disclosure of information maintained in the locked box is no 10 longer restricted by professional disciplinary rules, federal law or 11 regulation, the reporting individual shall disclose such information in 12 an amended disclosure statement in response to the disclosure require- 13 ments in questions (b-1) and (b-2). The office of court administration 14 shall develop and maintain a secure portal through which information 15 submitted to it pursuant to this paragraph can be safely and confiden- 16 tially stored. With respect to clients represented in other matters not 17 otherwise exempt, the reporting individual may request an exemption to 18 publicly disclosing the name of that client from the joint commission 19 pursuant to paragraph [(i)] (i-1) of subdivision nine of section nine- 20 ty-four of the executive law, or from the office of court adminis- 21 tration. In such application, the reporting individual shall state the 22 following: "My client is not currently receiving my services or seeking 23 my services in connection with: 24 (i) A proposed bill or resolution in the senate or assembly during the 25 reporting period; 26 (ii) A contract in an amount totaling $10,000 or more from the state 27 or any state agency for services, materials, or property; 28 (iii) A grant of $10,000 or more from the state or any state agency 29 during the reporting period; 30 (iv) A grant obtained through a legislative initiative during the 31 reporting period; or 32 (v) A case, proceeding, application or other matter that is not a 33 ministerial matter before a state agency during the reporting period." 34 In reviewing the request for an exemption, the joint commission or the 35 office of court administration may consult with bar or other profes- 36 sional associations and the legislative ethics commission for individ- 37 uals subject to its jurisdiction and may consider the rules of profes- 38 sional conduct. In making its determination, the joint commission or the 39 office of court administration shall conduct its own inquiry and shall 40 consider factors including, but not limited to: (i) the nature and the 41 size of the client; (ii) whether the client has any business before the 42 state; and if so, how significant the business is; and whether the 43 client has any particularized interest in pending legislation and if so 44 how significant the interest is; (iii) whether disclosure may reveal 45 trade secrets; (iv) whether disclosure could reasonably result in retal- 46 iation against the client; (v) whether disclosure may cause undue harm 47 to the client; (vi) whether disclosure may result in undue harm to the 48 attorney-client relationship; and (vii) whether disclosure may result in 49 an unnecessary invasion of privacy to the client. 50 The joint commission or, as the case may be, the office of court 51 administration shall promptly make a final determination in response to 52 such request, which shall include an explanation for its determination. 53 The office of court administration shall issue its final determination 54 within three days of receiving the request. Notwithstanding any other 55 provision of law or any professional disciplinary rule to the contrary, 56 the disclosure of the identity of any client or customer in response toS. 8160 28 1 this question shall not constitute professional misconduct or a ground 2 for disciplinary action of any kind, or form the basis for any civil or 3 criminal cause of action or proceeding. A reporting individual who first 4 enters public office after January first, two thousand sixteen, need not 5 report clients or customers with respect to matters for which the 6 reporting individual or his or her firm was retained prior to entering 7 public office. 8 [Client Services Category of Amount9Actually Provided (in Table I)________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________10________________________________________________________________________] 11 (c) APPLICABLE ONLY TO NEW CLIENTS OR CUSTOMERS FOR WHOM SERVICES ARE 12 PROVIDED ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND FIFTEEN, OR FOR 13 NEW MATTERS FOR EXISTING CLIENTS OR CUSTOMERS WITH RESPECT TO THOSE 14 SERVICES THAT ARE PROVIDED ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOU- 15 SAND FIFTEEN: 16 If the reporting individual receives income of ten thousand dollars or 17 greater from any employment or activity reportable under question 8(a), 18 identify each registered lobbyist who has directly referred to such 19 individual a client who was successfully referred to the reporting indi- 20 vidual's business and from whom the reporting individual or firm 21 received a fee for services in excess of five thousand dollars. Report 22 only those referrals that were made to a reporting individual by direct 23 communication from a person known to such reporting individual to be a 24 registered lobbyist at the time the referral is made. With respect to 25 each such referral, the reporting individual shall identify the client, 26 the registered lobbyist who has made the referral, the category of value 27 of the compensation received and a general description of the type of 28 matter so referred. A reporting individual need not disclose activities 29 performed while lawfully acting pursuant to paragraphs (c), (d), (e) and 30 (f) of subdivision seven of section seventy-three of this article. The 31 disclosure requirements in this question shall not require disclosing 32 clients or customers receiving medical, pharmaceutical or dental 33 services, mental health services, or residential real estate brokering 34 services from the reporting individual or his or her firm or if federal 35 law prohibits or limits disclosure. The reporting individual need not 36 identify any client to whom he or she or his or her firm provided legal 37 representation with respect to investigation or prosecution by law 38 enforcement authorities, bankruptcy, family court, estate planning, or 39 domestic relations matters, nor shall the reporting individual identify 40 individuals represented pursuant to an insurance policy but the report- 41 ing individual shall in such circumstances only report the entity that 42 provides compensation to the reporting individual; with respect to 43 matters in which the client's name is required by law to be kept confi- 44 dential (such as matters governed by the family court act) or in matters 45 in which the reporting individual represents or provides services to 46 minors, the client's name may be replaced with initials. To the extent 47 that the reporting individual, or his or her firm, provided legal repre- 48 sentation with respect to an initial public offering, and federal law or 49 regulations restricts the disclosure of information relating to such 50 work, the reporting individual shall (i) disclose the identity of the 51 client and the services provided relating to the initial public offering 52 to the office of court administration, who will maintain such informa-S. 8160 29 1 tion confidentially in a locked box; and (ii) include in his or her 2 response a statement that pursuant to this paragraph, a disclosure to 3 the office of court administration has been made. Upon such time that 4 the disclosure of information maintained in the locked box is no longer 5 restricted by federal law or regulation, the reporting individual shall 6 disclose such information in an amended disclosure statement in response 7 to the disclosure requirements of this paragraph. The office of court 8 administration shall develop and maintain a secure portal through which 9 information submitted to it pursuant to this paragraph can be safely and 10 confidentially stored. With respect to clients represented in other 11 matters not otherwise exempt, the reporting individual may request an 12 exemption to publicly disclosing the name of that client from the joint 13 commission pursuant to paragraph [(i)] (i-1) of subdivision nine of 14 section ninety-four of the executive law, or from the office of court 15 administration. In such application, the reporting individual shall 16 state the following: "My client is not currently receiving my services 17 or seeking my services in connection with: 18 (i) A proposed bill or resolution in the senate or assembly during the 19 reporting period; 20 (ii) A contract in an amount totaling $10,000 or more from the state 21 or any state agency for services, materials, or property; 22 (iii) A grant of $10,000 or more from the state or any state agency 23 during the reporting period; 24 (iv) A grant obtained through a legislative initiative during the 25 reporting period; or 26 (v) A case, proceeding, application or other matter that is not a 27 ministerial matter before a state agency during the reporting period." 28 In reviewing the request for an exemption, the joint commission or the 29 office of court administration may consult with bar or other profes- 30 sional associations and the legislative ethics commission for individ- 31 uals subject to its jurisdiction and may consider the rules of profes- 32 sional conduct. In making its determination, the joint commission or the 33 office of court administration shall conduct its own inquiry and shall 34 consider factors including, but not limited to: (i) the nature and the 35 size of the client; (ii) whether the client has any business before the 36 state; and if so, how significant the business is; and whether the 37 client has any particularized interest in pending legislation and if so 38 how significant the interest is; (iii) whether disclosure may reveal 39 trade secrets; (iv) whether disclosure could reasonably result in retal- 40 iation against the client; (v) whether disclosure may cause undue harm 41 to the client; (vi) whether disclosure may result in undue harm to the 42 attorney-client relationship; and (vii) whether disclosure may result in 43 an unnecessary invasion of privacy to the client. 44 The joint commission or, as the case may be, the office of court 45 administration shall promptly make a final determination in response to 46 such request, which shall include an explanation for its determination. 47 The office of court administration shall issue its final determination 48 within three days of receiving the request. Notwithstanding any other 49 provision of law or any professional disciplinary rule to the contrary, 50 the disclosure of the identity of any client or customer in response to 51 this question shall not constitute professional misconduct or a ground 52 for disciplinary action of any kind, or form the basis for any civil or 53 criminal cause of action or proceeding. A reporting individual who first 54 enters public office after December thirty-first, two thousand fifteen, 55 need not report clients or customers with respect to matters for whichS. 8160 30 1 the reporting individual or his or her firm was retained prior to enter- 2 ing public office. 3 Client Name of Lobbyist Description Category of Amount 4 of Matter (in Table 1) 5 ________________________________________________________________________ 6 ________________________________________________________________________ 7 ________________________________________________________________________ 8 ________________________________________________________________________ 9 ________________________________________________________________________ 10 (d) List the name, principal address and general description or the 11 nature of the business activity of any entity in which the reporting 12 individual or such individual's spouse had an investment in excess of 13 $1,000 excluding investments in securities and interests in real proper- 14 ty. 15 § 7. Subdivisions 2 and 3 of section 74 of the public officers law, as 16 amended by chapter 1012 of the laws of 1965, paragraph d of subdivision 17 3 as amended by chapter 1 of the laws of 2010, are amended to read as 18 follows: 19 2. Rule with respect to conflicts of interest. No officer or employee 20 of a state agency, member of the legislature or legislative employee 21 should have any interest, financial or otherwise, direct or indirect, or 22 engage in any business or transaction or professional activity or incur 23 any obligation of any nature, which is in substantial conflict with the 24 proper discharge of his or her duties in the public interest. 25 3. Standards. 26 a. No officer or employee of a state agency, member of the legislature 27 or legislative employee should accept other employment which will impair 28 his or her independence of judgment in the exercise of his or her offi- 29 cial duties. 30 b. No officer or employee of a state agency, member of the legislature 31 or legislative employee should accept employment or engage in any busi- 32 ness or professional activity which will require him or her to disclose 33 confidential information which he or she has gained by reason of his or 34 her official position or authority. 35 c. No officer or employee of a state agency, member of the legislature 36 or legislative employee should disclose confidential information 37 acquired by him or her in the course of his or her official duties nor 38 use such information to further his or her personal interests. 39 d. No officer or employee of a state agency, member of the legislature 40 or legislative employee should use or attempt to use his or her official 41 position to secure unwarranted privileges or exemptions for himself or 42 herself or others, including but not limited to, the misappropriation to 43 himself, herself or to others of the property, services or other 44 resources of the state for private business or other compensated non-go- 45 vernmental purposes. 46 e. No officer or employee of a state agency, member of the legislature 47 or legislative employee should engage in any transaction as represen- 48 tative or agent of the state with any business entity in which he or she 49 has a direct or indirect financial interest that might reasonably tend 50 to conflict with the proper discharge of his or her official duties. 51 f. An officer or employee of a state agency, member of the legislature 52 or legislative employee should not by his or her conduct give reasonable 53 basis for the impression that any person can improperly influence him or 54 her or unduly enjoy his or her favor in the performance of his or herS. 8160 31 1 official duties, or that he or she is affected by the kinship, rank, 2 position or influence of any party or person. 3 g. An officer or employee of a state agency should abstain from making 4 personnel investments in enterprises which he or she has reason to 5 believe may be directly involved in decisions to be made by him or her 6 or which will otherwise create substantial conflict between his or her 7 duty in the public interest and his or her private interest. 8 h. An officer or employee of a state agency, member of the legislature 9 or legislative employee should endeavor to pursue a course of conduct 10 which will not raise suspicion among the public that he or she is likely 11 to be engaged in acts that are in violation of his or her trust. 12 i. No officer or employee of a state agency employed on a full-time 13 basis nor any firm or association of which such an officer or employee 14 is a member nor corporation a substantial portion of the stock of which 15 is owned or controlled directly or indirectly by such officer or employ- 16 ee, should sell goods or services to any person, firm, corporation or 17 association which is licensed or whose rates are fixed by the state 18 agency in which such officer or employee serves or is employed. 19 § 8. This act shall take effect immediately; and shall apply to annual 20 statements of financial disclosure filed for calendar years commencing 21 on or after January 1, 2017. 22 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 23 sion, section or part of this act shall be adjudged by any court of 24 competent jurisdiction to be invalid, such judgment shall not affect, 25 impair, or invalidate the remainder thereof, but shall be confined in 26 its operation to the clause, sentence, paragraph, subdivision, section 27 or part thereof directly involved in the controversy in which such judg- 28 ment shall have been rendered. It is hereby declared to be the intent of 29 the legislature that this act would have been enacted even if such 30 invalid provisions had not been included herein. 31 § 3. This act shall take effect immediately provided, however, that 32 the applicable effective date of Parts A through K of this act shall be 33 as specifically set forth in the last section of such Parts.
