Bill Text: NY S07555 | 2019-2020 | General Assembly | Introduced

---

Bill Title: Prohibits elected officials and persons in a leadership position of a party committee from receiving compensation for legal fees, consulting, or other work performed for an industrial development agency, an economic assistance corporation or state or local authority.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2020-12-28 - COMMITTED TO RULES [S07555 Detail]

Download: New_York-2019-S07555-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________

                                          7555

                    IN SENATE

                                    January 24, 2020
                                       ___________

        Introduced  by Sen. KAMINSKY -- read twice and ordered printed, and when
          printed to be committed to the Committee on Ethics and Internal Gover-
          nance

        AN ACT to amend the public officers law, the public authorities law  and
          the  general municipal law, in relation to prohibiting certain persons
          from receiving compensation for legal fees, consulting, or other  work
          performed for an industrial development agency, an economic assistance
          corporation, or from a state or local authority

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subdivision 18 of section 73 of the public officers law, as
     2  amended by section 5 of part CC of chapter 56 of the laws  of  2015,  is
     3  amended to read as follows:
     4    18.   No statewide elected official, state officer or employee, member
     5  of the legislature, legislative employee or political party chairman  as
     6  defined in this section and section seventy-three-a of this article who:
     7  (i)  owns  or  controls directly or indirectly ten per centum or more of
     8  stock in a corporation or limited liability company;  or  (ii)  owns  or
     9  controls  ten  per centum or more of the capital, profits, or beneficial
    10  interest in a partnership or firm, shall receive compensation for  legal
    11  fees,  consulting,  or  any  other contractual expenditure for services,
    12  whether actually performed or not, from a state or  local  authority  as
    13  defined in section two of the public authorities law.
    14    19.  In  addition  to  any penalty contained in any other provision of
    15  law, any person who knowingly and intentionally violates the  provisions
    16  of subdivisions two through five, seven, seven-a, eight, twelve or four-
    17  teen  through [seventeen] eighteen of this section shall be subject to a
    18  civil penalty in an amount not to exceed forty thousand dollars and  the
    19  value  of  any gift, compensation or benefit received in connection with
    20  such violation. Assessment of a civil penalty hereunder shall be made by
    21  the state oversight body with jurisdiction over  such  person.  A  state
    22  oversight  body  acting  pursuant to its jurisdiction, may, in lieu of a
    23  civil penalty, with respect to a violation of subdivisions  two  through
    24  five,  seven  or  eight  of  this section, refer a violation of any such

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14666-01-0
        S. 7555                             2

     1  subdivision to the appropriate prosecutor and upon such conviction  such
     2  violation shall be punishable as a class A misdemeanor.
     3    §  2.  Subdivision 1 of section 2825 of the public authorities law, as
     4  amended by chapter 766 of the laws  of  2005,  is  amended  to  read  as
     5  follows:
     6    1.  No  public officer or employee shall be ineligible for appointment
     7  as a trustee or member of the governing body of a state or local author-
     8  ity, as defined in section two of this chapter, and any  public  officer
     9  or  employee  may  accept  such appointment and serve as such trustee or
    10  member without forfeiture of any other  public  office  or  position  of
    11  public  employment  by reason thereof.  Provided, additionally no state-
    12  wide elected official, state officer or employee, member of the legisla-
    13  ture, legislative employee or political party  chairman  as  defined  in
    14  sections  seventy-three  and  seventy-three-a of the public officers law
    15  who: (i) owns or controls directly or indirectly ten per centum or  more
    16  of  stock in a corporation or limited liability company; or (ii) owns or
    17  controls ten per centum or more of the capital, profits,  or  beneficial
    18  interest  in a partnership or firm, shall receive compensation for legal
    19  fees, consulting, or any other  contractual  expenditure  for  services,
    20  whether actually performed or not, from a state or local authority.
    21    §  3.  Section 801 of the general municipal law, as amended by chapter
    22  1043 of the laws of 1965, is amended to read as follows:
    23    § 801. Conflicts of interest prohibited. Except as provided in section
    24  eight hundred two of this chapter, (1) no municipal officer or  employee
    25  shall have an interest in any contract with the municipality of which he
    26  is  an  officer or employee, when such officer or employee, individually
    27  or as a member of a board, has the  power  or  duty  to  (a)  negotiate,
    28  prepare,  authorize  or  approve  the  contract  or authorize or approve
    29  payment thereunder (b) audit bills or claims under the contract, or  (c)
    30  appoint  an  officer or employee who has any of the powers or duties set
    31  forth above [and], (2) no chief fiscal officer, treasurer, or his deputy
    32  or employee, shall have an interest in a bank or  trust  company  desig-
    33  nated  as  a depository, paying agent, registration agent or for invest-
    34  ment of funds of the municipality of which he is an officer or employee,
    35  and (3) no municipal officer who (a) owns or controls directly or  indi-
    36  rectly  ten percent or more of stock in a corporation or limited liabil-
    37  ity company, or (b) owns or controls ten percent or more of the capital,
    38  profits, or beneficial interest in a partnership or firm, shall  receive
    39  compensation  for  legal  fees,  consulting,  or  any  other contractual
    40  expenditure for services, whether actually  performed  or  not,  from  a
    41  state or local authority as defined in section two of the public author-
    42  ities  law.    The  provisions  of  this  section  shall  in no event be
    43  construed to preclude the payment of lawful compensation  and  necessary
    44  expenses  of  any municipal officer or employee in one or more positions
    45  of public employment, the holding of which is not prohibited by law.
    46    § 4. This act shall take effect immediately.