S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 8304--A

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              June 10, 2011
                               ___________

Introduced  by  M.  of A. SILVER, O'DONNELL -- read once and referred to
  the Committee on Governmental Operations -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee

AN  ACT  to  amend part A of a chapter of the laws of 2011, establishing
  the public integrity reform act of 2011, as  proposed  in  legislative
  bills  numbers  S.5679  and  A.8301,  in  relation to making technical
  corrections thereto; and to amend the executive law,  in  relation  to
  the  joint  commission  on  public  ethics and the legislative law, in
  relation to the legislative ethics commission and reports by lobbyists

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Part  A of a chapter of the laws of 2011 establishing the
public integrity reform act of 2011, as proposed  in  legislative  bills
numbers  S.5679  and  A.8301,  is amended by adding a new section 3-a to
read as follows:
  S 3-A. PARAGRAPH (C) OF SUBDIVISION 6 OF  SECTION  73  OF  THE  PUBLIC
OFFICERS  LAW  IS  RELETTERED  PARAGRAPH  (D) AND A NEW PARAGRAPH (C) IS
ADDED TO READ AS FOLLOWS:
  (C) EVERY LEGISLATIVE  EMPLOYEE  NOT  SUBJECT  TO  THE  PROVISIONS  OF
SECTION SEVENTY-THREE-A OF THIS ARTICLE SHALL FILE SUCH STATEMENT PURSU-
ANT  TO  PARAGRAPH  (A)  OF THIS SUBDIVISION WITH THE LEGISLATIVE ETHICS
COMMISSION WHICH SHALL PROVIDE SUCH STATEMENT TO THE JOINT COMMISSION ON
PUBLIC ETHICS FOR FILING ON OR BEFORE THE FIRST DAY OF MARCH.
  S 2. The opening paragraph  of  paragraph  (a)  of  subdivision  2  of
section 73-a of the public officers law, as amended by section 5 of part
A  of  a  chapter  of the laws of 2011 establishing the public integrity
reform act of 2011, as proposed in legislative bills numbers S. 5679 and
A. 8301, is amended to read as follows:
  Every statewide elected official, state officer or employee, member of
the legislature, legislative employee and political party  chairman  and

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13085-04-1
              

A. 8304--A                          2

every candidate for statewide elected office or for member of the legis-
lature shall file an annual statement of financial disclosure containing
the  information  and in the form set forth in subdivision three of this
section.    On  or  before  the fifteenth day of May with respect to the
preceding calendar year: (1) every member  of  the  legislature[,  every
candidate for member of the legislature] and legislative employee WHO IS
SUBJECT  TO  THE  PROVISIONS  OF THIS SECTION, shall file such statement
with the legislative ethics commission which shall provide  such  state-
ment  along  with  any requests for exemptions or deletions to the joint
commission on public ethics for filing and rulings with respect to  such
requests  for exemptions or deletions, on or before the thirtieth day of
June; and (2) all other individuals  required  to  file  such  statement
shall file it with the joint commission on public ethics, except that:
  S  3.  Subparagraph  (ix) of paragraph (a) of subdivision 2 of section
73-a of the public officers law, as added by section 5 of part  A  of  a
chapter of the laws of 2011 establishing the public integrity reform act
of  2011,  as proposed in legislative bills numbers S. 5679 and A. 8301,
is amended to read as follows:
  (ix) [with respect to all candidates for member  of  the  legislature,
the  legislative  ethics  commission  shall  within five days of receipt
provide the joint commission on public ethics the statement filed pursu-
ant to subparagraphs (v), (vi), (vii)  and  (viii)  of  this  paragraph]
EVERY  CANDIDATE  FOR  MEMBER OF THE LEGISLATURE WHO IS REQUIRED TO FILE
SUCH STATEMENT PURSUANT TO SUBPARAGRAPHS (V), (VI), (VII) AND (VIII)  OF
THIS  PARAGRAPH,  SHALL  FILE SUCH STATEMENT WITH THE LEGISLATIVE ETHICS
COMMISSION WHICH SHALL PROVIDE SUCH STATEMENT ALONG  WITH  ANY  REQUESTS
FOR EXEMPTIONS OR DELETIONS TO THE JOINT COMMISSION ON PUBLIC ETHICS FOR
FILING  AND  RULINGS  WITH  RESPECT  TO  SUCH REQUESTS FOR EXEMPTIONS OR
DELETIONS WITHIN FIVE BUSINESS DAYS OF RECEIPT OF SUCH STATEMENT.
  S 4.  The second undesignated paragraph of subparagraph (b)  of  para-
graph  8 of subdivision 3 of section 73-a of the public officers law, as
added by section 5 of part A of a chapter of the laws of 2011 establish-
ing the public integrity reform act of 2011, as proposed in  legislative
bills numbers S. 5679 and A. 8301, is amended to read as follows:
  If the reporting individual personally provides services to any person
or  entity,  or  works  as  a  member or employee of a partnership [or],
corporation OR ENTITY that provides such services (referred  to  herein-
after  as  a  "firm"), then identify each client or customer to whom the
reporting individual personally provided services, or who  was  referred
to  the  firm  by  the reporting individual, and from whom the reporting
individual or his or her firm earned fees in excess  of  $10,000  during
the  reporting  period  for  such services rendered in direct connection
with:
  S 5.  Subdivision 14 of section 94 of the executive law, as amended by
section 6 of part A of a chapter of the laws of  2011  establishing  the
public  integrity  reform  act of 2011, as proposed in legislative bills
numbers S.  5679 and A.8301, is amended to read as follows:
  14.  An individual subject to the jurisdiction of the  commission  who
knowingly  and intentionally violates the provisions of subdivisions two
through five-a, seven, eight, twelve or fourteen  through  seventeen  of
section  seventy-three  of  the public officers law, section one hundred
seven of the civil service law, or a reporting individual who  knowingly
and  wilfully  fails to file an annual statement of financial disclosure
or who knowingly and wilfully with  intent  to  deceive  makes  a  false
statement  or  fraudulent omission or gives information which such indi-
vidual knows to be false on such statement of financial disclosure filed

A. 8304--A                          3

pursuant to section seventy-three-a of the public officers law shall  be
subject  to  a  civil  penalty in an amount not to exceed forty thousand
dollars and the value of any gift, compensation or benefit received as a
result  of such violation. An individual who knowingly and intentionally
violates the provisions of paragraph a, b, c, d, e, g, or i of  subdivi-
sion  three  of section seventy-four of the public officers law shall be
subject to a civil penalty in an  amount  not  to  exceed  ten  thousand
dollars and the value of any gift, compensation or benefit received as a
result  of such violation.  An individual subject to the jurisdiction of
the commission who knowingly and willfully violates article one-A of the
legislative law shall be subject to civil penalty  as  provided  for  in
that article.  Except with respect to members of the legislature, CANDI-
DATES  FOR  MEMBER OF THE LEGISLATURE and legislative employees, assess-
ment of a civil penalty hereunder shall be made by the  commission  with
respect  to  persons  subject  to  its jurisdiction.   With respect to a
violation of any law other than sections seventy-three, seventy-three-a,
and seventy-four of the public officers law, where the commission  finds
sufficient cause by a vote held in the same manner as set forth in para-
graph  [(b)] (A) of subdivision thirteen of this section, it shall refer
such matter to the appropriate prosecutor for further investigation.  In
assessing the amount of the civil penalties to be imposed,  the  commis-
sion shall consider the seriousness of the violation, the amount of gain
to the individual and whether the individual previously had any civil or
criminal  penalties  imposed  pursuant  to  this  section, and any other
factors the commission  deems  appropriate.    Except  with  respect  to
members of the legislature, CANDIDATES FOR MEMBER OF THE LEGISLATURE and
legislative  employees,  for a violation of this subdivision, other than
for conduct which constitutes a violation of section one  hundred  seven
of the civil service law, subdivisions twelve or fourteen through seven-
teen  of  section  seventy-three  or  section seventy-four of the public
officers law or article one-A of the  legislative  law,  the  commission
may,  in lieu of or in addition to a civil penalty, refer a violation to
the appropriate prosecutor and  upon  such  conviction,  such  violation
shall  be punishable as a class A misdemeanor. A civil penalty for false
filing may not be imposed hereunder in the event a category  of  "value"
or  "amount" reported hereunder is incorrect unless such reported infor-
mation is falsely understated. Notwithstanding any  other  provision  of
law  to the contrary, no other penalty, civil or criminal may be imposed
for a failure to file, or for a false filing, of such  statement,  or  a
violation  of  subdivision  six  of  section seventy-three of the public
officers law, except that the appointing authority may impose  discipli-
nary  action  as  otherwise  provided  by  law. The commission may refer
violations of this subdivision to the appointing authority for discipli-
nary action as otherwise provided by law. The commission shall be deemed
to be an agency within the meaning of article three of the state  admin-
istrative  procedure  act and shall adopt rules governing the conduct of
adjudicatory proceedings and appeals  taken  pursuant  to  a  proceeding
commenced  under  article  seventy-eight  of  the civil practice law and
rules relating to the assessment of the civil penalties  herein  author-
ized  and  commission  denials  of  requests  for  certain  deletions or
exemptions to be made from a financial disclosure statement  as  author-
ized  in  paragraph  (h)  or  paragraph  (i) of subdivision nine of this
section. Such rules, which shall not be subject to the approval require-
ments of the state administrative procedure act, shall provide  for  due
process  procedural  mechanisms substantially similar to those set forth
in article three of the state  administrative  procedure  act  but  such

A. 8304--A                          4

mechanisms  need  not  be  identical  in terms or scope. Assessment of a
civil penalty or commission denial of such  a  request  shall  be  final
unless  modified, suspended or vacated within thirty days of imposition,
with respect to the assessment of such penalty, or unless such denial of
request  is  reversed  within  such time period, and upon becoming final
shall be subject to review at the instance  of  the  affected  reporting
individuals  in  a proceeding commenced against the commission, pursuant
to article seventy-eight of the civil practice law and rules.
  S 6. Paragraph 4 of subdivision (c) of section 1-h of the  legislative
law,  as  added  by section 1 of part B of a chapter of the laws of 2011
establishing the public integrity reform act of  2011,  as  proposed  in
legislative  bills  numbers  S.  5679 and A. 8301, is amended to read as
follows:
  (4) Any lobbyist registered pursuant to section one-e of this  article
whose  lobbying activity is performed on its own behalf and not pursuant
to retention by a client:
  (i) that has spent over fifty thousand dollars for reportable  compen-
sation  and  expenses  for  lobbying either during the calendar year, or
during the twelve-month period, prior to the  date  of  this  bi-monthly
report, and
  (ii)  at  least  three  percent of whose total expenditures during the
same period were devoted to lobbying in New York,
shall report to the commission the names of each source of funding  over
five  thousand  dollars  from a single source that were used to fund the
lobbying activities reported and the amounts received from each  identi-
fied source of funding.
  This disclosure shall not require disclosure of the sources of funding
whose  disclosure,  in  the determination of the commission based upon a
review of the relevant facts presented by the  reporting  lobbyist,  may
cause  harm, threats, harassment, or reprisals to the source or to indi-
viduals or property affiliated with the source. The  reporting  lobbyist
may appeal the commission's determination and such appeal shall be heard
by a judicial hearing officer who is independent and not affiliated with
or  employed  by  the commission, pursuant to regulations promulgated by
the commission. The reporting lobbyist shall not be required to disclose
the sources of funding that are the subject of such appeal pending final
judgment on appeal.
  The disclosure shall not apply to:
  (i) any [corporation] ENTITY registered pursuant to article seven-A of
the executive law that is qualified as an  exempt  organization  by  the
United States Department of the Treasury under I.R.C. S 501(c)(3);
  (ii)  any  [corporation] ENTITY registered pursuant to article seven-A
of the executive law that is qualified as an exempt organization by  the
United  States  Department  of the Treasury under I.R.C. S 501(c)(4) and
whose primary activities concern any area of public  concern  determined
by the commission to create a substantial likelihood that application of
this  disclosure requirement would lead to harm, threats, harassment, or
reprisals to a source of funding or to individuals  or  property  affil-
iated  with  such source, including but not limited to the area of civil
rights and civil liberties and any other area of public  concern  deter-
mined  pursuant  to  regulations promulgated by the commission to form a
proper basis for exemption on this basis from this  disclosure  require-
ment; or
  (iii) any governmental entity.
  The  joint commission on public ethics shall promulgate regulations to
implement these requirements.

A. 8304--A                          5

  S 7. Paragraph h of subdivision 7 of section  80  of  the  legislative
law,  as amended by section 9 of part A of a chapter of the laws of 2011
establishing the public integrity reform act of  2011,  as  proposed  in
legislative  bills  numbers  S.  5679 and A. 8301, is amended to read as
follows:
  h.  Review  financial  disclosure  statements  in  accordance with the
provisions of this section, provided however, that  the  commission  may
delegate  all  or  part  of  the  review  function relating to financial
disclosure statements filed by MEMBERS OF  THE  LEGISLATURE,  CANDIDATES
FOR  MEMBER  OF  THE  LEGISLATURE  AND legislative employees pursuant to
sections seventy-three and seventy-three-a of the public officers law to
the executive director who shall be  responsible  for  completing  staff
review  of  such statements in a manner consistent with the terms of the
commission's delegation;
  S 8. This act shall take effect immediately;  provided  that  sections
one,  two,  three, four, five and seven of this act shall take effect on
the same date and in the same manner as part A and section six  of  this
act  shall  take  effect  on the same date as part B of a chapter of the
laws of 2011 establishing the public integrity reform act  of  2011,  as
proposed in legislative bills numbers S. 5679 and A. 8301, take effect.