Bill Text: NY S03495 | 2015-2016 | General Assembly | Amended
Bill Title: Relates to the business or professional activities of state employees; requires individuals or the firms or corporations with which they practice to report the names of clients and customers and nature of services rendered who they receive more than $10,000 from during the reporting period when directly connected to certain state business.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-04-20 - PRINT NUMBER 3495A [S03495 Detail]
Download: New_York-2015-S03495-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 3495--A 2015-2016 Regular Sessions IN SENATE February 10, 2015 ___________ Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- recommitted to the Committee on Finance in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the public officers law and the executive law, in relation to the business or professional activities of state employees The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph 8 of subdivision 3 of section 73-a of the public 2 officers law, as amended by section 37 of subpart A of part H of chapter 3 55 of the laws of 2014, subparagraphs (a), (b) and (c) as amended by 4 section 1 and subparagraphs (b-1) and (b-2) as added by section 2 of 5 part CC of chapter 56 of the laws of 2015, is amended to read as 6 follows: 7 8. (a) [If the reporting individual practices law, is licensed by the8department of state as a real estate broker or agent or practices a9profession licensed by the department of education, or works as a member10or employee of a firm required to register pursuant to section one-e of11the legislative law as a lobbyist, describe the services rendered for12which compensation was paid including a general description of the prin-13cipal subject areas of matters undertaken by such individual and princi-14pal duties performed. Specifically state whether the reporting individ-15ual provides services directly to clients. Additionally, if such an16individual practices with a firm or corporation and is a partner or17shareholder of the firm or corporation, give a general description of18principal subject areas of matters undertaken by such firm or corpo-19ration.20____________________________________________________________________21____________________________________________________________________EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09072-03-6S. 3495--A 2 1____________________________________________________________________2____________________________________________________________________3__________________________________________________________________] 4 Identify and specifically describe the source, including the name of 5 each client or customer, and the nature of any income or fees earned by 6 the reporting individual or, in the case of a client or customer 7 referred to a firm or corporation with which the reporting individual 8 practices, the firm or corporation, in excess of $10,000 during the 9 reporting period for such services rendered in direct connection with: 10 (i) A proposed bill or resolution in the senate or assembly during the 11 reporting period; 12 (ii) A contract in an amount totaling $50,000 or more from the state 13 or any state agency for services, materials or property; 14 (iii) A grant of $25,000 or more from the state or any state agency 15 during the reporting period; 16 (iv) A grant obtained through a legislative initiative during the 17 reporting period; or 18 (v) A case, proceeding, application or other matter that is not a 19 ministerial matter before a state agency during the reporting period. 20 Any description of the nature of income or fees earned by the report- 21 ing individual, or the firm or corporation with which such individual 22 practices, shall include a clear and complete explanation of the 23 services rendered in exchange for the income or fees earned by the 24 reporting individual, or by the firm or corporation with which such 25 individual practices. 26 For purposes of this question, "referred to a firm or corporation" 27 shall mean: having intentionally and knowingly taken a specific act or 28 series of acts to intentionally procure for the reporting individual's 29 firm or corporation or knowingly solicit or direct to the reporting 30 individual's firm or corporation in whole or substantial part, a person 31 or entity that becomes a client of that firm or corporation for the 32 purposes of representation for a matter as defined in subparagraphs (i) 33 through (v) of this paragraph, as a result of such procurement, solic- 34 itation or direction of the reporting individual. A reporting individual 35 need not disclose activities performed while lawfully acting pursuant to 36 paragraphs (c), (d), (e) and (f) of subdivision seven of section seven- 37 ty-three of this article. The disclosure requirement in this question 38 shall not require disclosure of clients or customers receiving medical 39 or dental services or brokering services from the reporting individual 40 or his or her firm. The reporting individual need not identify any 41 client to whom he or she or his or her firm provided legal represen- 42 tation with respect to the investigation or prosecution by law enforce- 43 ment authorities, bankruptcy, or domestic relations matters. With 44 respect to clients represented in other matters, where disclosure of a 45 client's identity is likely to cause harm, the reporting individual 46 shall request an exemption from the joint commission pursuant to para- 47 graph (i-1) of subdivision nine of section ninety-four of the executive 48 law. 49 Name of Client/ Address Nature of Services Category of 50 Customer Rendered Value of 51 Earned 52 Income/Fees 53 (In Table II)S. 3495--A 3 1 ________________________________________________________________________ 2 ________________________________________________________________________ 3 ________________________________________________________________________ 4 ________________________________________________________________________ 5 ________________________________________________________________________ 6 (b) [APPLICABLE ONLY TO NEW CLIENTS OR CUSTOMERS FOR WHOM SERVICES ARE7PROVIDED ON OR AFTER JULY FIRST, TWO THOUSAND TWELVE AND BEFORE DECEMBER8THIRTY-FIRST, TWO THOUSAND FIFTEEN, OR FOR NEW MATTERS FOR EXISTING9CLIENTS OR CUSTOMERS WITH RESPECT TO THOSE SERVICES THAT ARE PROVIDED ON10OR AFTER JULY FIRST, TWO THOUSAND TWELVE AND BEFORE DECEMBER11THIRTY-FIRST, TWO THOUSAND FIFTEEN:12If the reporting individual personally provides services to any person13or entity, or works as a member or employee of a partnership or corpo-14ration that provides such services (referred to hereinafter as a15"firm"), then identify each client or customer to whom the reporting16individual personally provided services, or who was referred to the firm17by the reporting individual, and from whom the reporting individual or18his or her firm earned fees in excess of $10,000 during the reporting19period for such services rendered in direct connection with:20(i) A contract in an amount totaling $50,000 or more from the state or21any state agency for services, materials, or property;22(ii) A grant of $25,000 or more from the state or any state agency23during the reporting period;24(iii) A grant obtained through a legislative initiative during the25reporting period; or26(iv) A case, proceeding, application or other matter that is not a27ministerial matter before a state agency during the reporting period.28For purposes of this question, "referred to the firm" shall mean:29having intentionally and knowingly taken a specific act or series of30acts to intentionally procure for the reporting individual's firm or31knowingly solicit or direct to the reporting individual's firm in whole32or substantial part, a person or entity that becomes a client of that33firm for the purposes of representation for a matter as defined in34subparagraphs (i) through (iv) of this paragraph, as the result of such35procurement, solicitation or direction of the reporting individual. A36reporting individual need not disclose activities performed while37lawfully acting pursuant to paragraphs (c), (d), (e) and (f) of subdivi-38sion seven of section seventy-three of this article.39The disclosure requirement in this question shall not require disclo-40sure of clients or customers receiving medical or dental services,41mental health services, residential real estate brokering services, or42insurance brokering services from the reporting individual or his or her43firm. The reporting individual need not identify any client to whom he44or she or his or her firm provided legal representation with respect to45investigation or prosecution by law enforcement authorities, bankruptcy,46or domestic relations matters. With respect to clients represented in47other matters, where disclosure of a client's identity is likely to48cause harm, the reporting individual shall request an exemption from the49joint commission pursuant to paragraph (i) of subdivision nine of50section ninety-four of the executive law, provided, however, that a51reporting individual who first enters public office after July first,52two thousand twelve, need not report clients or customers with respect53to matters for which the reporting individual or his or her firm was54retained prior to entering public office.55Client Nature of Services ProvidedS. 3495--A 4 1________________________________________________________________________2________________________________________________________________________3________________________________________________________________________4________________________________________________________________________5________________________________________________________________________6(b-1) APPLICABLE ONLY TO NEW CLIENTS OR CUSTOMERS FOR WHOM SERVICES7ARE PROVIDED ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND FIFTEEN, OR8FOR NEW MATTERS FOR EXISTING CLIENTS OR CUSTOMERS WITH RESPECT TO THOSE9SERVICES THAT ARE PROVIDED ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOU-10SAND FIFTEEN (FOR PURPOSES OF THIS QUESTION, "SERVICES" SHALL MEAN11CONSULTATION, REPRESENTATION, ADVICE OR OTHER SERVICES):12If the reporting individual receives income from employment reportable13in question 8(a) and personally provides services to any person or enti-14ty, or works as a member or employee of a partnership or corporation15that provides such services (referred to hereinafter as a "firm"), the16reporting individual shall identify each client or customer to whom the17reporting individual personally provided services, or who was referred18to the firm by the reporting individual, and from whom the reporting19individual or his or her firm earned fees in excess of $10,000 during20the reporting period in direct connection with:21(i) A contract in an amount totaling $10,000 or more from the state or22any state agency for services, materials, or property;23(ii) A grant of $10,000 or more from the state or any state agency24during the reporting period;25(iii) A grant obtained through a legislative initiative during the26reporting period; or27(iv) A case, proceeding, application or other matter that is not a28ministerial matter before a state agency during the reporting period.29For such services rendered by the reporting individual directly to30each such client, describe each matter that was the subject of such31representation, the services actually provided and the payment received.32For payments received from clients referred to the firm by the reporting33individual, if the reporting individual directly received a referral fee34or fees for such referral, identify the client and the payment so35received.36For purposes of this question, "referred to the firm" shall mean:37having intentionally and knowingly taken a specific act or series of38acts to intentionally procure for the reporting individual's firm or39having knowingly solicited or directed to the reporting individual's40firm in whole or substantial part, a person or entity that becomes a41client of that firm for the purposes of representation for a matter as42defined in clauses (i) through (iv) of this subparagraph, as the result43of such procurement, solicitation or direction of the reporting individ-44ual. A reporting individual need not disclose activities performed while45lawfully acting in his or her capacity as provided in paragraphs (c),46(d), (e) and (f) of subdivision seven of section seventy-three of this47article.48Client Matter Nature of Services Provided Category49of Amount50(in Table I)51________________________________________________________________________52________________________________________________________________________53________________________________________________________________________S. 3495--A 5 1________________________________________________________________________2________________________________________________________________________3(b-2) APPLICABLE ONLY TO NEW CLIENTS OR CUSTOMERS FOR WHOM SERVICES4ARE PROVIDED ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND FIFTEEN, OR5FOR NEW MATTERS FOR EXISTING CLIENTS OR CUSTOMERS WITH RESPECT TO THOSE6SERVICES THAT ARE PROVIDED ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOU-7SAND FIFTEEN (FOR PURPOSES OF THIS QUESTION, "SERVICES" SHALL MEAN8CONSULTATION, REPRESENTATION, ADVICE OR OTHER SERVICES):9(i) With respect to reporting individuals who receive ten thousand10dollars or more from employment or activity reportable under question118(a), for each client or customer NOT otherwise disclosed or exempted in12question 8 or 13, disclose the name of each client or customer known to13the reporting individual to whom the reporting individual provided14services: (A) who paid the reporting individual in excess of five thou-15sand dollars for such services; or (B) who had been billed with the16knowledge of the reporting individual in excess of five thousand dollars17by the firm or other entity named in question 8(a) for the reporting18individual's services.19Client Services Category of Amount20Actually Provided (in Table I)________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________21FOLLOWING IS AN ILLUSTRATIVE, NON-EXCLUSIVE LIST OF EXAMPLES OF22DESCRIPTIONS OF "SERVICES ACTUALLY PROVIDED":23* REVIEWED DOCUMENTS AND CORRESPONDENCE;24* REPRESENTED CLIENT (IDENTIFY CLIENT BY NAME) IN LEGAL PROCEEDING;25* PROVIDED LEGAL ADVICE ON CLIENT MATTER (IDENTIFY CLIENT BY NAME);26* CONSULTED WITH CLIENT OR CONSULTED WITH LAW PARTNERS/ASSOCIATES/MEMBERS27OF FIRM ON CLIENT MATTER (IDENTIFY CLIENT BY NAME);28* PREPARED CERTIFIED FINANCIAL STATEMENT FOR CLIENT (IDENTIFY CLIENT BY29NAME);30* REFERRED INDIVIDUAL OR ENTITY (IDENTIFY CLIENT BY NAME) FOR31REPRESENTATION OR CONSULTATION;32* COMMERCIAL BROKERING SERVICES (IDENTIFY CUSTOMER BY NAME);33* PREPARED CERTIFIED ARCHITECTURAL OR ENGINEERING34RENDERINGS FOR CLIENT (IDENTIFY CUSTOMER BY NAME);35* COURT APPOINTED GUARDIAN OR EVALUATOR (IDENTIFY COURT NOT CLIENT).36(ii) With respect to reporting individuals who disclosed in question378(a) that the reporting individual did not provide services to a client38but provided services to a firm or business, identify the category of39amount received for providing such services and describe the services40rendered.________________________________________________________________________________________________________________________________________________________________________________________________________________________41A reporting individual need not disclose activities performed while42lawfully acting in his or her capacity as provided in paragraphs (c),43(d), (e) and (f) of subdivision seven of section seventy-three of this44article.45The disclosure requirement in questions (b-1) and (b-2) shall not46require disclosing clients or customers receiving medical, pharmaceu-S. 3495--A 6 1tical or dental services, mental health services, or residential real2estate brokering services from the reporting individual or his or her3firm or if federal law prohibits or limits disclosure. The reporting4individual need not identify any client to whom he or she or his or her5firm provided legal representation with respect to investigation or6prosecution by law enforcement authorities, bankruptcy, family court,7estate planning, or domestic relations matters, nor shall the reporting8individual identify individuals represented pursuant to an insurance9policy but the reporting individual shall in such circumstances only10report the entity that provides compensation to the reporting individ-11ual; with respect to matters in which the client's name is required by12law to be kept confidential (such as matters governed by the family13court act) or in matters in which the reporting individual represents or14provides services to minors, the client's name may be replaced with15initials. To the extent that the reporting individual, or his or her16firm, provided legal representation with respect to an initial public17offering, and professional disciplinary rules, federal law or regu-18lations restrict the disclosure of information relating to such work,19the reporting individual shall (i) disclose the identity of the client20and the services provided relating to the initial public offering to the21office of court administration, who will maintain such information22confidentially in a locked box; and (ii) include in his or her response23to questions (b-1) and (b-2) that pursuant to this paragraph, a disclo-24sure to the office of court administration has been made. Upon such time25that the disclosure of information maintained in the locked box is no26longer restricted by professional disciplinary rules, federal law or27regulation, the reporting individual shall disclose such information in28an amended disclosure statement in response to the disclosure require-29ments in questions (b-1) and (b-2). The office of court administration30shall develop and maintain a secure portal through which information31submitted to it pursuant to this paragraph can be safely and confiden-32tially stored. With respect to clients represented in other matters not33otherwise exempt, the reporting individual may request an exemption to34publicly disclosing the name of that client from the joint commission35pursuant to paragraph (i) of subdivision nine of section ninety-four of36the executive law, or from the office of court administration. In such37application, the reporting individual shall state the following: "My38client is not currently receiving my services or seeking my services in39connection with:40(i) A proposed bill or resolution in the senate or assembly during the41reporting period;42(ii) A contract in an amount totaling $10,000 or more from the state43or any state agency for services, materials, or property;44(iii) A grant of $10,000 or more from the state or any state agency45during the reporting period;46(iv) A grant obtained through a legislative initiative during the47reporting period; or48(v) A case, proceeding, application or other matter that is not a49ministerial matter before a state agency during the reporting period."50In reviewing the request for an exemption, the joint commission or the51office of court administration may consult with bar or other profes-52sional associations and the legislative ethics commission for individ-53uals subject to its jurisdiction and may consider the rules of profes-54sional conduct. In making its determination, the joint commission or the55office of court administration shall conduct its own inquiry and shall56consider factors including, but not limited to: (i) the nature and theS. 3495--A 7 1size of the client; (ii) whether the client has any business before the2state; and if so, how significant the business is; and whether the3client has any particularized interest in pending legislation and if so4how significant the interest is; (iii) whether disclosure may reveal5trade secrets; (iv) whether disclosure could reasonably result in retal-6iation against the client; (v) whether disclosure may cause undue harm7to the client; (vi) whether disclosure may result in undue harm to the8attorney-client relationship; and (vii) whether disclosure may result in9an unnecessary invasion of privacy to the client.10The joint commission or, as the case may be, the office of court11administration shall promptly make a final determination in response to12such request, which shall include an explanation for its determination.13The office of court administration shall issue its final determination14within three days of receiving the request. Notwithstanding any other15provision of law or any professional disciplinary rule to the contrary,16the disclosure of the identity of any client or customer in response to17this question shall not constitute professional misconduct or a ground18for disciplinary action of any kind, or form the basis for any civil or19criminal cause of action or proceeding. A reporting individual who first20enters public office after January first, two thousand sixteen, need not21report clients or customers with respect to matters for which the22reporting individual or his or her firm was retained prior to entering23public office.24Client Services Category of Amount25Actually Provided (in Table I)________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________26(c)] APPLICABLE ONLY TO NEW CLIENTS OR CUSTOMERS FOR WHOM SERVICES ARE 27 PROVIDED ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND [FIFTEEN] 28 SIXTEEN, OR FOR NEW MATTERS FOR EXISTING CLIENTS OR CUSTOMERS WITH 29 RESPECT TO THOSE SERVICES THAT ARE PROVIDED ON OR AFTER DECEMBER THIR- 30 TY-FIRST, TWO THOUSAND [FIFTEEN] SIXTEEN: 31 If the reporting individual receives income of ten thousand dollars or 32 greater from any employment or activity reportable under question 8(a), 33 identify each registered lobbyist who has directly referred to such 34 individual a client who was successfully referred to the reporting indi- 35 vidual's business and from whom the reporting individual or firm 36 received a fee for services in excess of five thousand dollars. Report 37 only those referrals that were made to a reporting individual by direct 38 communication from a person known to such reporting individual to be a 39 registered lobbyist at the time the referral is made. With respect to 40 each such referral, the reporting individual shall identify the client, 41 the registered lobbyist who has made the referral, the category of value 42 of the compensation received and a general description of the type of 43 matter so referred. A reporting individual need not disclose activities 44 performed while lawfully acting pursuant to paragraphs (c), (d), (e) and 45 (f) of subdivision seven of section seventy-three of this article. The 46 disclosure requirements in this question shall not require disclosing 47 clients or customers receiving medical, pharmaceutical or dental 48 services, mental health services, or residential real estate brokering 49 services from the reporting individual or his or her firm or if federal 50 law prohibits or limits disclosure. The reporting individual need not 51 identify any client to whom he or she or his or her firm provided legalS. 3495--A 8 1 representation with respect to investigation or prosecution by law 2 enforcement authorities, bankruptcy, family court, estate planning, or 3 domestic relations matters, nor shall the reporting individual identify 4 individuals represented pursuant to an insurance policy but the report- 5 ing individual shall in such circumstances only report the entity that 6 provides compensation to the reporting individual; with respect to 7 matters in which the client's name is required by law to be kept confi- 8 dential (such as matters governed by the family court act) or in matters 9 in which the reporting individual represents or provides services to 10 minors, the client's name may be replaced with initials. To the extent 11 that the reporting individual, or his or her firm, provided legal repre- 12 sentation with respect to an initial public offering, and federal law or 13 regulations restricts the disclosure of information relating to such 14 work, the reporting individual shall (i) disclose the identity of the 15 client and the services provided relating to the initial public offering 16 to the office of court administration, who will maintain such informa- 17 tion confidentially in a locked box; and (ii) include in his or her 18 response a statement that pursuant to this paragraph, a disclosure to 19 the office of court administration has been made. Upon such time that 20 the disclosure of information maintained in the locked box is no longer 21 restricted by federal law or regulation, the reporting individual shall 22 disclose such information in an amended disclosure statement in response 23 to the disclosure requirements of this paragraph. The office of court 24 administration shall develop and maintain a secure portal through which 25 information submitted to it pursuant to this paragraph can be safely and 26 confidentially stored. With respect to clients represented in other 27 matters not otherwise exempt, the reporting individual may request an 28 exemption to publicly disclosing the name of that client from the joint 29 commission pursuant to paragraph (i) of subdivision nine of section 30 ninety-four of the executive law, or from the office of court adminis- 31 tration. In such application, the reporting individual shall state the 32 following: "My client is not currently receiving my services or seeking 33 my services in connection with: 34 (i) A proposed bill or resolution in the senate or assembly during the 35 reporting period; 36 (ii) A contract in an amount totaling $10,000 or more from the state 37 or any state agency for services, materials, or property; 38 (iii) A grant of $10,000 or more from the state or any state agency 39 during the reporting period; 40 (iv) A grant obtained through a legislative initiative during the 41 reporting period; or 42 (v) A case, proceeding, application or other matter that is not a 43 ministerial matter before a state agency during the reporting period." 44 In reviewing the request for an exemption, the joint commission or the 45 office of court administration may consult with bar or other profes- 46 sional associations and the legislative ethics commission for individ- 47 uals subject to its jurisdiction and may consider the rules of profes- 48 sional conduct. In making its determination, the joint commission or the 49 office of court administration shall conduct its own inquiry and shall 50 consider factors including, but not limited to: (i) the nature and the 51 size of the client; (ii) whether the client has any business before the 52 state; and if so, how significant the business is; and whether the 53 client has any particularized interest in pending legislation and if so 54 how significant the interest is; (iii) whether disclosure may reveal 55 trade secrets; (iv) whether disclosure could reasonably result in retal- 56 iation against the client; (v) whether disclosure may cause undue harmS. 3495--A 9 1 to the client; (vi) whether disclosure may result in undue harm to the 2 attorney-client relationship; and (vii) whether disclosure may result in 3 an unnecessary invasion of privacy to the client. 4 The joint commission or, as the case may be, the office of court 5 administration shall promptly make a final determination in response to 6 such request, which shall include an explanation for its determination. 7 The office of court administration shall issue its final determination 8 within three days of receiving the request. Notwithstanding any other 9 provision of law or any professional disciplinary rule to the contrary, 10 the disclosure of the identity of any client or customer in response to 11 this question shall not constitute professional misconduct or a ground 12 for disciplinary action of any kind, or form the basis for any civil or 13 criminal cause of action or proceeding. A reporting individual who first 14 enters public office after December thirty-first, two thousand fifteen, 15 need not report clients or customers with respect to matters for which 16 the reporting individual or his or her firm was retained prior to enter- 17 ing public office. 18 Client Name of Lobbyist Category of Amount (in 19 Table 1) 20 ________________________________________________________________________ 21 ________________________________________________________________________ 22 ________________________________________________________________________ 23 ________________________________________________________________________ 24 ________________________________________________________________________ 25 [(d)] (c) List the name, principal address and general description or 26 the nature of the business activity of any entity in which the reporting 27 individual or such individual's spouse had an investment in excess of 28 $1,000 excluding investments in securities and interests in real proper- 29 ty. 30 ____________________________________________________________________ 31 ____________________________________________________________________ 32 ____________________________________________________________________ 33 ____________________________________________________________________ 34 ____________________________________________________________________ 35 § 2. Paragraph (i-l) of subdivision 9 of section 94 of the executive 36 law, as added by section 6 of part A of chapter 399 of the laws of 2011, 37 is amended to read as follows: 38 (i-1) Permit any person required to file a financial disclosure state- 39 ment to request an exemption from any requirement to report the identity 40 of a client pursuant to question [8(b)] 8(a) in such statement based 41 upon an exemption set forth in that question. The reporting individual 42 need not seek an exemption to refrain from disclosing the identity of 43 any client with respect to any matter he or she or his or her firm 44 provided legal representation to the client in connection with an inves- 45 tigation or prosecution by law enforcement authorities, bankruptcy, or 46 domestic relations matters; in addition, clients or customers receiving 47 medical or dental services, mental health services, residential real 48 estate brokering services, or insurance brokering services need not be 49 disclosed. 50 § 3. This act shall take effect immediately.
