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

                                 6196--A

                            I N  S E N A T E

                               (PREFILED)

                             January 8, 2014
                               ___________

Introduced by Sens. HOYLMAN, KRUEGER, PERKINS, SERRANO -- read twice and
  ordered  printed, and when printed to be committed to the Committee on
  Investigations and Government Operations -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee

AN  ACT to amend the legislative law, in relation to prohibiting members
  of the legislature from receiving certain income and establishing  the
  commission on legislative compensation

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

  Section 1. The legislative law is amended by adding two  new  sections
5-b and 5-c to read as follows:
  S  5-B. PROHIBITION ON OUTSIDE EARNED INCOME FOR MEMBERS. 1.  STARTING
IN CALENDAR YEAR TWO THOUSAND FIFTEEN, A MEMBER OF THE  LEGISLATURE  MAY
NOT  HAVE  OUTSIDE EARNED INCOME ATTRIBUTABLE TO SUCH YEAR WHICH EXCEEDS
FIFTEEN PERCENT OF THE GROSS ANNUAL SALARY OF MEMBERS  OF  THE  LEGISLA-
TURE, PURSUANT TO SECTION FIVE OF THIS ARTICLE.
  2.  A.  FOR  THE  PURPOSES  OF  THIS SECTION, THE TERM "OUTSIDE EARNED
INCOME" INCLUDES, BUT IS NOT LIMITED  TO,  WAGES,  SALARIES,  FEES,  AND
OTHER FORMS OF COMPENSATION FOR SERVICES ACTUALLY RENDERED.
  B.  FOR THE PURPOSES OF THIS SECTION, THE TERM "OUTSIDE EARNED INCOME"
DOES NOT INCLUDE:
  (1) SALARY, BENEFITS, AND ALLOWANCES PAID BY NEW YORK STATE;
  (2) INCOME ATTRIBUTABLE TO  SERVICE  WITH  THE  MILITARY  RESERVES  OR
NATIONAL GUARD;
  (3) INCOME FROM PENSIONS AND OTHER CONTINUING BENEFITS ATTRIBUTABLE TO
PREVIOUS EMPLOYMENT OR SERVICES;
  (4) INCOME FROM INVESTMENT ACTIVITIES, WHERE THE MEMBER'S SERVICES ARE
NOT A MATERIAL FACTOR IN THE PRODUCTION OF INCOME;
  (5) INCOME FROM A TRADE OR BUSINESS IN WHICH THE MEMBER OR THEIR FAMI-
LY  HOLDS  A CONTROLLING INTEREST, WHERE THE MEMBER'S SERVICES ARE NOT A
MATERIAL FACTOR IN THE PRODUCTION OF INCOME;

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

                                                           LBD13254-03-4

S. 6196--A                          2

  (6) COPYRIGHT ROYALTIES, FEES, AND THEIR FUNCTIONAL  EQUIVALENT,  FROM
THE  USE  OR SALE OF COPYRIGHT, PATENT AND SIMILAR FORMS OF INTELLECTUAL
PROPERTY RIGHTS, WHEN RECEIVED FROM ESTABLISHED USERS OR  PURCHASERS  OF
THOSE RIGHTS; AND
  (7) COMPENSATION  FOR  SERVICES  ACTUALLY  RENDERED  PRIOR  TO JANUARY
FIRST, TWO THOUSAND FIFTEEN, OR PRIOR TO BEING SWORN IN AS A  MEMBER  OF
THE LEGISLATURE.
  3.    NOTWITHSTANDING  ANY  OTHER  PROVISIONS  OF LAW TO THE CONTRARY,
MEMBERS OF THE LEGISLATURE ARE PROHIBITED FROM:
  A. RECEIVING COMPENSATION FOR AFFILIATING WITH OR BEING EMPLOYED BY  A
FIRM,  PARTNERSHIP,  ASSOCIATION,  CORPORATION,  OR  OTHER  ENTITY  THAT
PROVIDES  PROFESSIONAL  SERVICES  INVOLVING  A  FIDUCIARY  RELATIONSHIP,
EXCEPT FOR THE PRACTICE OF MEDICINE;
  B. PERMITTING THEIR NAME TO BE USED BY SUCH A FIRM, PARTNERSHIP, ASSO-
CIATION, CORPORATION, OR OTHER ENTITY;
  C.  RECEIVING COMPENSATION FOR PRACTICING A PROFESSION THAT INVOLVES A
FIDUCIARY RELATIONSHIP EXCEPT FOR THE PRACTICE OF MEDICINE;
  D. RECEIVING COMPENSATION AS AN OFFICER OR MEMBER OF THE BOARD  OF  AN
ASSOCIATION, CORPORATION, OR OTHER ENTITY;
  E.  RECEIVING COMPENSATION FOR TEACHING, WITHOUT PRIOR NOTIFICATION TO
AND APPROVAL FROM THE LEGISLATIVE ETHICS COMMISSION;
  F. RECEIVING ADVANCE PAYMENTS ON COPYRIGHT ROYALTIES, FEES, AND  THEIR
FUNCTIONAL EQUIVALENTS.
  4.  A  MEMBER  OF THE LEGISLATURE WHO KNOWINGLY AND WILLFULLY VIOLATES
THE PROVISIONS OF THIS SECTION SHALL BE SUBJECT TO A CIVIL PENALTY IN AN
AMOUNT NOT TO EXCEED FORTY  THOUSAND  DOLLARS.  ASSESSMENT  OF  A  CIVIL
PENALTY SHALL BE MADE BY THE LEGISLATIVE ETHICS COMMISSION. THE LEGISLA-
TIVE ETHICS COMMISSION, ACTING PURSUANT TO SUBDIVISION ELEVEN OF SECTION
EIGHTY OF THE LEGISLATIVE LAW, MAY, IN LIEU OF OR IN ADDITION TO 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.
  S  5-C.  COMMISSION  ON LEGISLATIVE COMPENSATION.   1. ON THE FIRST OF
APRIL OF  EVERY  FOURTH  YEAR,  COMMENCING  APRIL  FIRST,  TWO  THOUSAND
FIFTEEN, THERE SHALL BE ESTABLISHED FOR SUCH YEAR A COMMISSION ON LEGIS-
LATIVE  COMPENSATION  TO EXAMINE, EVALUATE AND MAKE RECOMMENDATIONS WITH
RESPECT TO ADEQUATE LEVELS OF COMPENSATION AND NON-SALARY  BENEFITS  FOR
MEMBERS  OF  THE STATE LEGISLATURE. IN ACCORDANCE WITH THE PROVISIONS OF
THIS SECTION, THE COMMISSION SHALL:
  A. EXAMINE THE PREVAILING ADEQUACY OF PAY LEVELS AND NON-SALARY  BENE-
FITS  RECEIVED BY MEMBERS OF THE STATE LEGISLATURE AND DETERMINE WHETHER
ANY OF SUCH PAY LEVELS WARRANT ADJUSTMENT; AND
  B. DETERMINE WHETHER, FOR ANY OF THE  FOUR  YEARS  COMMENCING  ON  THE
FIRST OF APRIL OF SUCH YEARS, FOLLOWING THE YEAR IN WHICH THE COMMISSION
IS  ESTABLISHED, THE ANNUAL SALARIES FOR THE MEMBERS OF THE STATE LEGIS-
LATURE WARRANT ADJUSTMENT.
  IN DISCHARGING ITS RESPONSIBILITIES UNDER PARAGRAPHS A AND B  OF  THIS
SUBDIVISION,  THE  COMMISSION  SHALL  TAKE  INTO ACCOUNT ALL APPROPRIATE
FACTORS INCLUDING, BUT NOT LIMITED TO:  THE  OVERALL  ECONOMIC  CLIMATE;
RATES  OF  INFLATION;  CHANGES  IN PUBLIC-SECTOR SPENDING; THE LEVELS OF
COMPENSATION AND  NON-SALARY  BENEFITS  RECEIVED  BY  JUDGES,  EXECUTIVE
BRANCH  OFFICIALS  AND  LEGISLATORS  OF  OTHER STATES AND OF THE FEDERAL
GOVERNMENT; THE LEVELS OF COMPENSATION AND NON-SALARY BENEFITS  RECEIVED
BY  PROFESSIONALS  IN  GOVERNMENT,  ACADEMIA  AND  PRIVATE AND NONPROFIT
ENTERPRISE; AND THE STATE'S ABILITY TO FUND  INCREASES  IN  COMPENSATION
AND NON-SALARY BENEFITS.

S. 6196--A                          3

  2.  THE  COMMISSION  SHALL  CONSIST OF NINE MEMBERS TO BE APPOINTED AS
FOLLOWS: THREE  SHALL  BE  APPOINTED  BY  THE  GOVERNOR;  ONE  SHALL  BE
APPOINTED  BY  THE  TEMPORARY  PRESIDENT  OF  THE  SENATE;  ONE SHALL BE
APPOINTED BY THE SPEAKER OF THE ASSEMBLY; ONE SHALL BE APPOINTED BY  THE
SENATE  MINORITY LEADER; ONE SHALL BE APPOINTED BY THE ASSEMBLY MINORITY
LEADER; AND TWO SHALL BE APPOINTED BY THE STATE COMPTROLLER. THE MEMBERS
APPOINTED SHALL NOT BE EMPLOYEES OF THE STATE OR ANY POLITICAL  SUBDIVI-
SION  THEREOF.  THE GOVERNOR SHALL DESIGNATE THE CHAIR OF THE COMMISSION
FROM AMONG THE MEMBERS SO APPOINTED.  VACANCIES IN THE COMMISSION  SHALL
BE  FILLED  IN  THE  SAME MANNER AS ORIGINAL APPOINTMENTS. TO THE EXTENT
PRACTICABLE, MEMBERS OF THE COMMISSION SHALL HAVE EXPERIENCE IN  ONE  OR
MORE  OF  THE  FOLLOWING: DETERMINATION OF EXECUTIVE COMPENSATION, HUMAN
RESOURCE ADMINISTRATION AND FINANCIAL MANAGEMENT.
  3. THE COMMISSION MAY MEET WITHIN AND  WITHOUT  THE  STATE,  MAY  HOLD
PUBLIC HEARINGS AND SHALL HAVE ALL THE POWERS OF A LEGISLATIVE COMMITTEE
PURSUANT TO THIS CHAPTER.
  4.  THE  MEMBERS  OF  THE COMMISSION SHALL RECEIVE NO COMPENSATION FOR
THEIR SERVICES BUT SHALL BE ALLOWED THEIR ACTUAL AND NECESSARY  EXPENSES
INCURRED IN THE PERFORMANCE OF THEIR DUTIES HEREUNDER.
  5. TO THE MAXIMUM EXTENT FEASIBLE, THE COMMISSION SHALL BE ENTITLED TO
REQUEST  AND RECEIVE AND SHALL UTILIZE AND BE PROVIDED WITH SUCH FACILI-
TIES, RESOURCES AND DATA OF  ANY  COURT,  DEPARTMENT,  DIVISION,  BOARD,
BUREAU, COMMISSION, AGENCY OR PUBLIC AUTHORITY OF THE STATE OR ANY POLI-
TICAL SUBDIVISION THEREOF AS IT MAY REASONABLY REQUEST TO PROPERLY CARRY
OUT ITS POWERS AND DUTIES PURSUANT TO THIS SECTION.
  6.  THE  COMMISSION MAY REQUEST, AND SHALL RECEIVE, REASONABLE ASSIST-
ANCE FROM STATE AGENCY PERSONNEL AS NECESSARY FOR THE PERFORMANCE OF ITS
FUNCTIONS.
  7. THE COMMISSION SHALL MAKE A REPORT TO THE GOVERNOR, THE STATE COMP-
TROLLER AND THE LEGISLATURE OF ITS FINDINGS, CONCLUSIONS, DETERMINATIONS
AND RECOMMENDATIONS, IF ANY, NOT LATER THAN ONE HUNDRED FIFTY DAYS AFTER
ITS ESTABLISHMENT. EACH RECOMMENDATION MADE TO IMPLEMENT A DETERMINATION
PURSUANT TO PARAGRAPH B OF SUBDIVISION ONE OF THIS  SECTION  SHALL  HAVE
THE FORCE OF LAW, AND SHALL SUPERSEDE INCONSISTENT PROVISIONS OF SECTION
FIVE  OF  THIS ARTICLE, UNLESS MODIFIED OR ABROGATED BY STATUTE PRIOR TO
APRIL FIRST OF THE YEAR AS TO WHICH SUCH DETERMINATION APPLIES.
  8. UPON THE MAKING OF ITS REPORT AS PROVIDED IN SUBDIVISION  SEVEN  OF
THIS SECTION, EACH COMMISSION ESTABLISHED PURSUANT TO THIS SECTION SHALL
BE DEEMED DISSOLVED.
  9. NOTWITHSTANDING THE PROVISIONS OF THIS SECTION OR OF ANY OTHER LAW,
EACH INCREASE IN SALARY OR COMPENSATION OF ANY MEMBER OF THE LEGISLATURE
PROVIDED BY THIS SECTION SHALL BE ADDED TO THE SALARY OR COMPENSATION OF
SUCH  MEMBER  AT  THE  BEGINNING OF THAT PAYROLL PERIOD THE FIRST DAY OF
WHICH IS NEAREST TO THE EFFECTIVE DATE OF SUCH INCREASE AS  PROVIDED  IN
THIS  SECTION, OR AT THE BEGINNING OF THE EARLIER OF TWO PAYROLL PERIODS
THE FIRST DAYS OF WHICH ARE NEAREST BUT EQUALLY NEAR  TO  THE  EFFECTIVE
DATE  OF  SUCH  INCREASE AS PROVIDED IN THIS SECTION; PROVIDED, HOWEVER,
THE PAYMENT OF SUCH SALARY INCREASE PURSUANT TO THIS SECTION ON  A  DATE
PRIOR  THERETO  INSTEAD  OF ON SUCH EFFECTIVE DATE, SHALL NOT OPERATE TO
CONFER ANY ADDITIONAL SALARY RIGHTS OR BENEFITS ON SUCH MEMBER.
  10. THE ANNUAL SALARIES AS PRESCRIBED PURSUANT TO THIS SECTION FOR THE
MEMBERS OF THE STATE  LEGISLATURE  WHENEVER  ADJUSTED  PURSUANT  TO  THE
PROVISIONS  OF THIS SECTION, SHALL BE ROUNDED UP TO THE NEAREST MULTIPLE
OF ONE HUNDRED DOLLARS.
  S 2. Subdivision 7 of section 80 of the legislative law is amended  by
adding a new paragraph f-1 to read as follows:

S. 6196--A                          4

  F-1.  PROMULGATE  GUIDELINES FOR MEMBERS OF THE LEGISLATURE TO REQUEST
PERMISSION FROM THE COMMISSION TO ACCEPT COMPENSATION FOR TEACHING,  AND
PROMULGATE  GUIDELINES FOR THE COMMISSION TO EVALUATE AND ISSUE A DETER-
MINATION FOR SUCH REQUESTS.
  S  3.  Paragraph (a) of subdivision 9 of section 80 of the legislative
law, as amended by section 9 of part A of chapter 399  of  the  laws  of
2011, is amended to read as follows:
  (a)  An  individual subject to the jurisdiction of the commission with
respect to the imposition of penalties who knowingly  and  intentionally
violates  the  provisions  of  subdivisions  two  through five-a, seven,
eight, twelve, fourteen or  fifteen  of  section  seventy-three  of  the
public  officers  law  OR  SECTION  FIVE-B  OF  THE LEGISLATIVE 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 disclo-
sure  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 knowing-
ly and intentionally violates the provisions of paragraph a, b, c, d, e,
g, or i of subdivision three of section seventy-four of the public offi-
cers  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. 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 penal-
ties to be imposed, the commission shall consider the seriousness of the
violation, the amount of gain to the individual and whether the individ-
ual  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 consti-
tutes a violation of subdivision twelve, fourteen or fifteen of  section
seventy-three  or  section  seventy-four of the public officers law, the
legislative ethics commission may, in lieu of or in addition to 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. Where the commission finds suffi-
cient cause, it shall refer such matter to the appropriate prosecutor. 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 information is falsely  understated.  Notwithstanding  any
other provision of law to the contrary, no other penalty, civil or crim-
inal  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 disciplinary action as otherwise provided by law. The  legis-
lative  ethics  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. Such rules, which  shall  not  be
subject to the promulgation and hearing requirements of the state admin-
istrative  procedure act, shall provide for due process procedural mech-
anisms substantially similar to those set forth in  such  article  three

S. 6196--A                          5

but  such mechanisms need not be identical in terms or scope. Assessment
of a civil penalty 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 4. This act shall take effect January 1, 2015.