S T A T E O F N E W Y O R K
________________________________________________________________________
34
2015-2016 Regular Sessions
I N S E N A T E
(PREFILED)
January 7, 2015
___________
Introduced by Sens. HOYLMAN, GIANARIS, KRUEGER, PERKINS, SERRANO, STAVI-
SKY -- read twice and ordered printed, and when printed to be commit-
ted to the Committee on Investigations and Government Operations
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 SIXTEEN, 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.
LBD01499-01-5
S. 34 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 SIXTEEN, 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
SIXTEEN, 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. 34 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. 34 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. 34 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, 2016.