S. 887 2
S 195.20 [Defrauding] SCHEME TO DEFRAUD the government IN THE FIRST
DEGREE.
A person is guilty of [defrauding] A SCHEME TO DEFRAUD the government
IN THE FIRST DEGREE when, being a public servant or party officer OR
ACTING IN CONCERT WITH A PUBLIC SERVANT OR PARTY OFFICER, he or she:
(a) engages in a scheme constituting a systematic ongoing course of
conduct with intent to:
(i) defraud the state or a political subdivision of the state or a
governmental instrumentality within the state; or
(II) to obtain property, services or other resources from the state or
a political subdivision of the state or a governmental instrumentality
within the state by false or fraudulent pretenses, representations or
promises; or
[(ii)] (III) defraud the state or a political subdivision of the state
or a governmental instrumentality within the state by making use of
property, services or resources of the state, political subdivision of
the state or a governmental instrumentality within the state for private
business purposes or other compensated non-governmental purposes; and
(b) EITHER (I) so obtains property, services or other resources with a
value in excess of one thousand dollars from such state, political
subdivision or governmental instrumentality, OR (II) CONFERS OR OBTAINS
A BENEFIT OR BENEFITS, DIRECTLY OR INDIRECTLY, WITH A COMBINED VALUE IN
EXCESS OF ONE THOUSAND DOLLARS.
[Defrauding] SCHEME TO DEFRAUD the government IN THE FIRST DEGREE is a
class [E] D felony.
S 4. The penal law is amended by adding a new section 195.18 to read
as follows:
S 195.18 SCHEME TO DEFRAUD THE GOVERNMENT IN THE SECOND DEGREE.
A PERSON IS GUILTY OF A SCHEME TO DEFRAUD THE GOVERNMENT IN THE SECOND
DEGREE WHEN, BEING A PUBLIC SERVANT OR PARTY OFFICER OR ACTING IN
CONCERT WITH A PUBLIC SERVANT OR PARTY OFFICER, HE OR SHE ENGAGES IN A
SCHEME CONSTITUTING A SYSTEMATIC ONGOING COURSE OF CONDUCT WITH INTENT
TO:
(A) DEFRAUD THE STATE OR A POLITICAL SUBDIVISION OF THE STATE OR A
GOVERNMENTAL INSTRUMENTALITY WITHIN THE STATE; OR
(B) OBTAIN PROPERTY, SERVICES OR OTHER RESOURCES FROM THE STATE OR A
POLITICAL SUBDIVISION OF THE STATE OR A GOVERNMENTAL INSTRUMENTALITY
WITHIN THE STATE BY FALSE OR FRAUDULENT PRETENSES, REPRESENTATIONS OR
PROMISES; OR
(C) DEFRAUD THE STATE OR A POLITICAL SUBDIVISION OF THE STATE OR A
GOVERNMENTAL INSTRUMENTALITY WITHIN THE STATE BY MAKING USE OF PROPERTY,
SERVICES OR RESOURCES OF THE STATE, POLITICAL SUBDIVISION OF THE STATE
OR A GOVERNMENTAL INSTRUMENTALITY WITHIN THE STATE FOR PRIVATE BUSINESS
PURPOSES OR OTHER COMPENSATED NON-GOVERNMENTAL PURPOSES.
SCHEME TO DEFRAUD THE GOVERNMENT IN THE SECOND DEGREE IS A CLASS E
FELONY.
S 5. The penal law is amended by adding a new section 200.28 to read
as follows:
S 200.28 DUTY TO PROVIDE FAITHFUL PUBLIC SERVICES.
FOR PURPOSES OF THIS ARTICLE, THE DUTIES OF A PUBLIC SERVANT SHALL
INCLUDE BUT NOT BE LIMITED TO THE DUTY TO PROVIDE FAITHFUL PUBLIC
SERVICES. IN EXECUTING THE DUTIES OF HIS OR HER OFFICE, EVERY PUBLIC
SERVANT SHALL HAVE THE DUTY TO PROVIDE FAITHFUL PUBLIC SERVICES TO HIS
OR HER CONSTITUENTS AND THE STATE OR POLITICAL SUBDIVISION THEREOF, AS
APPLICABLE. IN EXECUTING THE DUTIES OF HIS OR HER OFFICE OR EMPLOYMENT,
S. 887 3
EVERY PUBLIC SERVANT SHALL ALSO HAVE THE DUTY TO PROVIDE FAITHFUL PUBLIC
SERVICES TO A STATE OR LOCAL AGENCY OR LEGISLATURE, AS APPLICABLE.
S 6. Subdivision 1 of section 74 of the public officers law, as
amended by chapter 1012 of the laws of 1965, the opening paragraph as
amended by chapter 14 of the laws of 2007, is amended to read as
follows:
1. [Definition. As used in this section:] DEFINITIONS OF TERMS OF
GENERAL USE IN THIS SECTION:
A. The term "state agency" shall mean any state department, or divi-
sion, board, commission, or bureau of any state department or any public
benefit corporation or public authority at least one of whose members is
appointed by the governor or corporations closely affiliated with
specific state agencies as defined by paragraph (d) of subdivision five
of section fifty-three-a of the state finance law or their successors.
B. The term "legislative employee" shall mean any officer or employee
of the legislature but it shall not include members of the legislature.
C. THE TERM "FAITHFUL PUBLIC SERVICES" SHALL MEAN CONDUCT THAT IS FREE
OF UNDISCLOSED SELF-DEALING AND FREE OF THE UNAUTHORIZED OR UNLAWFUL
CONFERRAL OR INTENDED CONFERRAL OF A BENEFIT, DIRECTLY OR INDIRECTLY, ON
AN OFFICER OR EMPLOYEE OF A STATE AGENCY, MEMBER OF THE LEGISLATURE OR
LEGISLATIVE EMPLOYEE. EVERY OFFICER OR EMPLOYEE OF A STATE AGENCY,
MEMBER OF THE LEGISLATURE OR LEGISLATIVE EMPLOYEE SHALL HAVE A DUTY OF
FAITHFUL PUBLIC SERVICES WITH RESPECT TO HIS OR HER CONSTITUENTS AND THE
STATE OR TO A STATE AGENCY OR LEGISLATURE, AS APPLICABLE.
D. THE TERM "SELF-DEALING" SHALL MEAN ANY ACTION TAKEN BY AN OFFICER
OR EMPLOYEE OF A STATE AGENCY, MEMBER OF THE LEGISLATURE OR LEGISLATIVE
EMPLOYEE IN HIS OR HER OFFICIAL CAPACITY WITH INTENT TO BENEFIT HIMSELF
OR HERSELF, DIRECTLY OR INDIRECTLY, AND WHICH RELATES TO HIS OR HER
PRIVATE BUSINESS INTERESTS.
S 7. Subdivision 3 of section 74 of the public officers law is amended
by adding a new paragraph j to read as follows:
J. IN EXECUTING THE DUTIES OF HIS OR HER OFFICE, EVERY OFFICER OR
EMPLOYEE OF A STATE AGENCY, MEMBER OF THE LEGISLATURE OR LEGISLATIVE
EMPLOYEE SHALL HAVE THE DUTY TO PROVIDE FAITHFUL PUBLIC SERVICES TO HIS
OR HER CONSTITUENTS AND THE STATE, AS APPLICABLE. IN EXECUTING THE
DUTIES OF HIS OR HER OFFICE OR EMPLOYMENT, EVERY OFFICER OR EMPLOYEE OF
A STATE AGENCY, MEMBER OF THE LEGISLATURE OR LEGISLATIVE EMPLOYEE SHALL
ALSO HAVE THE DUTY TO PROVIDE FAITHFUL PUBLIC SERVICES TO A STATE AGENCY
OR THE LEGISLATURE, AS APPLICABLE.
S 8. Subdivision 4 of section 74 of the public officers law, as
amended by chapter 14 of the laws of 2007, is amended to read as
follows:
4. Violations. In addition to any penalty contained in any other
provision of law any such officer, member or employee who shall knowing-
ly and intentionally violate any of the provisions of this section may
be fined, suspended or removed from office or employment in the manner
provided by law. Any such individual who knowingly and intentionally
violates the provisions of paragraph b, c, d or i of subdivision three
of this section 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. Any such individual who
knowingly and intentionally violates the provisions of paragraph a, e or
g of subdivision three of this section shall be subject to a civil
penalty in an amount not to exceed the value of any gift, compensation
or benefit received as a result of such violation. ANY SUCH INDIVIDUAL
WHO KNOWINGLY AND INTENTIONALLY VIOLATES THE PROVISIONS OF PARAGRAPH J
S. 887 4
OF SUBDIVISION THREE OF THIS SECTION 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.
ANY SUCH INDIVIDUAL WHO, AS PART OF OR IN FURTHERANCE OF A SCHEME OR
ARTIFICE TO DEFRAUD A STATE AGENCY, THE LEGISLATURE, ANY POLITICAL
SUBDIVISION, HIS OR HER CONSTITUENTS OR THE STATE, AS APPLICABLE, KNOW-
INGLY AND INTENTIONALLY VIOLATES THE PROVISIONS OF PARAGRAPH J OF SUBDI-
VISION THREE OF THIS SECTION SHALL, IN ADDITION TO ANY PENALTY CONTAINED
IN THIS SECTION OR ANY OTHER PROVISION OF LAW, BE GUILTY OF A CLASS E
FELONY.
S 9. Subdivision 13 of section 94 of the executive law, as amended by
chapter 14 of the laws of 2007, is amended to read as follows:
13. An individual subject to the jurisdiction of the commission who
knowingly and intentionally violates the provisions of subdivisions two
through five, 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
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 b, c, d [or], i OR J of subdivision
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 who knowingly and intentionally
violates the provisions of paragraph a, e or g of subdivision three of
section seventy-four of the public officers law shall be subject to a
civil penalty in an amount not to exceed the value of any gift, compen-
sation or benefit received as a result of such violation. An individual
subject to the jurisdiction of the commission who knowingly and willful-
ly violates article one-A of the legislative law shall be subject to
civil penalty as provided for in that article. Assessment of a civil
penalty hereunder shall be made by the commission with respect to
persons subject to its jurisdiction. In assessing the amount of the
civil penalties to be imposed, the commission shall consider the seri-
ousness 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. 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 seventeen
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 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 here-
under in the event a category of "value" or "amount" reported hereunder
is incorrect unless such reported information 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 section seventy-
S. 887 5
three of the public officers law, except that the appointing authority
may impose disciplinary action as otherwise provided by law. The commis-
sion may refer violations of this subdivision to the appointing authori-
ty for disciplinary action as otherwise provided by law. The commission
shall be deemed to be an agency within the meaning of article three of
the state administrative 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
authorized 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
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 10. Subdivision 11 of section 80 of the legislative law, as amended
by chapter 14 of the laws of 2007, is amended to read as follows:
11. An individual subject to the jurisdiction of the commission who
knowingly and intentionally violates the provisions of subdivisions two
through five, seven, eight, twelve, fourteen or fifteen of section
seventy-three of the public officers 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 gives information which such individual knows to be
false on such statement of financial disclosure filed 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. Any such individual who knowingly and intentionally violates
the provisions of paragraph b, c, d, [or] i OR J of subdivision 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. Any such individual who knowingly and intentionally violates
the provisions of paragraph a, e or g of subdivision three of section
seventy-four of the public officers law shall be subject to a civil
penalty in an amount equal to the value of any gift, compensation or
benefit received as a result of such violation. Assessment of a civil
penalty hereunder shall be made by the commission with respect to
persons subject to its jurisdiction. In assessing the amount of the
civil penalties to be imposed, the commission shall consider the seri-
ousness 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. For a violation of this section, other than for
conduct which constitutes a violation of subdivision twelve, fourteen or
fifteen of section seventy-three or section seventy-four of the public
S. 887 6
officers law, the legislative ethics commission may, in lieu of a civil
penalty, refer a violation to the appropriate prosecutor and upon such
conviction, but only after such referral, 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 informa-
tion 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 section seventy-three of the public officers law, except
that the appointing authority may impose disciplinary action as other-
wise provided by law. The legislative ethics 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 i or paragraph j of subdivision seven of this section.
Such rules, which shall not be subject to the promulgation and hearing
requirements of the state administrative procedure act, shall provide
for due process procedural mechanisms substantially similar to those set
forth in such article three but such mechanisms need not be identical in
terms or scope. Assessment of a civil penalty or commission denial of
such a deletion or exemption 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 legislative ethics commission,
pursuant to article seventy-eight of the civil practice law and rules.
S 11. Section 1-c of the legislative law is amended by adding a new
subdivision (w) to read as follows:
(W) THE TERM "REPORTABLE BUSINESS RELATIONSHIP" SHALL MEAN A RELATION-
SHIP IN WHICH COMPENSATION IS PAID BY A LOBBYIST OR BY A CLIENT OF A
LOBBYIST, IN EXCHANGE FOR ANY GOODS, SERVICES OR ANYTHING OF VALUE TO BE
PERFORMED OR PROVIDED BY OR INTENDED TO BE PERFORMED OR PROVIDED BY (I)
ANY STATEWIDE ELECTED OFFICIAL, STATE OFFICER, STATE EMPLOYEE, MEMBER OF
THE LEGISLATURE OR LEGISLATIVE EMPLOYEE OR (II) ANY ENTITY IN WHICH THE
LOBBYIST OR THE CLIENT OF A LOBBYIST KNOWS OR HAS REASON TO KNOW THE
STATEWIDE ELECTED OFFICIAL, STATE OFFICER, STATE EMPLOYEE, MEMBER OF THE
LEGISLATURE OR LEGISLATIVE EMPLOYEE IS A PROPRIETOR, PARTNER, DIRECTOR,
OFFICER OR MANAGER WHO RECEIVES TEN PERCENT OR MORE OF THE PROFITS FROM
SUCH ENTITY, OR OWNS OR CONTROLS TEN PERCENT OR MORE OF THE STOCK OF
SUCH ENTITY (OR ONE PERCENT IN THE CASE OF A CORPORATION WHOSE STOCK IS
REGULARLY TRADED ON AN ESTABLISHED SECURITIES EXCHANGE).
S 12. Subdivision (c) of section 1-e of the legislative law is amended
by adding a new paragraph 8 to read as follows:
(8) (I) THE NAME AND PUBLIC OFFICE ADDRESS OF ANY STATEWIDE ELECTED
OFFICIAL, STATE OFFICER OR EMPLOYEE, MEMBER OF THE LEGISLATURE OR LEGIS-
LATIVE EMPLOYEE AND ENTITY WITH WHOM THE LOBBYIST HAS A REPORTABLE BUSI-
NESS RELATIONSHIP IN EXCESS OF ONE THOUSAND DOLLARS DURING THE REPORTING
PERIOD;
(II) A DESCRIPTION OF THE GENERAL SUBJECT OR SUBJECTS OF THE TRANS-
ACTIONS BETWEEN THE LOBBYIST OR LOBBYISTS AND THE STATEWIDE ELECTED
S. 887 7
OFFICIAL, STATE OFFICER OR EMPLOYEE, MEMBER OF THE LEGISLATURE OR LEGIS-
LATIVE EMPLOYEE AND ENTITY; AND
(III) THE COMPENSATION, INCLUDING EXPENSES, TO BE PAID BY VIRTUE OF
THE BUSINESS RELATIONSHIP.
S 13. Subdivision (b) of section 1-j of the legislative law is amended
by adding a new paragraph 6 to read as follows:
(6) (I) THE NAME AND PUBLIC OFFICE ADDRESS OF ANY STATEWIDE ELECTED
OFFICIAL, STATE OFFICER OR EMPLOYEE, MEMBER OF THE LEGISLATURE OR LEGIS-
LATIVE EMPLOYEE AND ENTITY WITH WHOM THE CLIENT OF A LOBBYIST HAS A
REPORTABLE BUSINESS RELATIONSHIP IN EXCESS OF FIVE HUNDRED DOLLARS
DURING THE REPORTING PERIOD;
(II) A DESCRIPTION OF THE GENERAL SUBJECT OR SUBJECTS OF THE TRANS-
ACTIONS BETWEEN THE CLIENT OF THE LOBBYIST OR LOBBYISTS AND THE STATE-
WIDE ELECTED OFFICIAL, STATE OFFICER OR EMPLOYEE, MEMBER OF THE LEGISLA-
TURE OR LEGISLATIVE EMPLOYEE AND ENTITY; AND
(III) THE COMPENSATION, INCLUDING EXPENSES, TO BE PAID BY VIRTUE OF
THE BUSINESS RELATIONSHIP.
S 14. This act shall take effect immediately, provided that sections
eleven, twelve and thirteen of this act shall take effect on the nineti-
eth day after it shall have become a law.