S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10228
 
                           I N  A S S E M B L Y
 
                              March 27, 2020
                                ___________
 
 Introduced by M. of A. BUCHWALD -- read once and referred to the Commit-
   tee on Governmental Operations
 
 AN  ACT  to  amend  the  public officers law, in relation to prohibiting
   public officers and employees from using nonpublic information derived
   from their official positions for personal benefit
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This act shall be known and may be cited as the "New York
 Stock Act".
   § 2. The public officers law is amended by adding a new article 7-A to
 read as follows:
                                ARTICLE 7-A
                     USE OF NON-PUBLIC INFORMATION FOR
                        PERSONAL BENEFIT PROHIBITED
 SECTION 112.   DEFINITIONS.
         112-A. PROHIBITION OF  THE  USE  OF  NONPUBLIC  INFORMATION  FOR
                  PRIVATE PROFIT.
         112-B. PROHIBITION OF INSIDER TRADING.
         112-C. OTHER STATE OFFICIALS.
         112-D. PARTICIPATION IN INITIAL PUBLIC OFFERINGS.
         112-E. RULE OF CONSTRUCTION.
   §  112. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1. "MEMBER OF THE LEGISLATURE" MEANS A MEMBER OF THE  NEW  YORK  STATE
 SENATE OR NEW YORK STATE ASSEMBLY.
   2.  "EMPLOYEE OF THE LEGISLATURE" MEANS ANY OFFICER OR EMPLOYEE OF THE
 LEGISLATURE BUT IT SHALL NOT INCLUDE MEMBERS OF THE LEGISLATURE.
   3. "EXECUTIVE BRANCH EMPLOYEE" MEANS:
   A. ANY PERSON EMPLOYED IN THE CIVIL SERVICE OF THIS STATE;
   B. THE GOVERNOR;
   C. THE LIEUTENANT GOVERNOR;
   D. THE COMPTROLLER; AND
   E. THE ATTORNEY GENERAL.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD16062-04-0

 A. 10228                            2
 
   4. "JUDICIAL OFFICER" MEANS ANY JUDGE OR  OTHER  JUDICIAL  OFFICER  OF
 THIS STATE.
   5.  "JUDICIAL EMPLOYEE" MEANS ANY OFFICER OR EMPLOYEE OF THE JUDICIARY
 BUT IT SHALL NOT INCLUDE JUDICIAL OFFICERS.
   § 112-A. PROHIBITION OF THE USE OF NONPUBLIC INFORMATION  FOR  PRIVATE
 PROFIT. THE LEGISLATIVE ETHICS COMMISSION SHALL ISSUE INTERPRETIVE GUID-
 ANCE OF THE RELEVANT RULES OF EACH CHAMBER, INCLUDING RULES ON CONFLICTS
 OF  INTEREST  AND GIFTS, CLARIFYING THAT A MEMBER OF THE LEGISLATURE AND
 AN EMPLOYEE OF THE LEGISLATURE MAY NOT USE NONPUBLIC INFORMATION DERIVED
 FROM SUCH PERSON'S POSITION AS A MEMBER OF THE LEGISLATURE  OR  EMPLOYEE
 OF THE LEGISLATURE OR GAINED FROM THE PERFORMANCE OF SUCH PERSON'S OFFI-
 CIAL RESPONSIBILITIES AS A MEANS FOR MAKING A PRIVATE PROFIT.
   §  112-B.  PROHIBITION  OF  INSIDER  TRADING.  SUBJECT  TO THE RULE OF
 CONSTRUCTION UNDER SECTION ONE HUNDRED  TWELVE-E  OF  THIS  ARTICLE  AND
 SOLELY  FOR  THE  PURPOSES OF INSIDER TRADING PROHIBITIONS ARISING UNDER
 THE SECURITIES EXCHANGE ACT OF 1934, EACH MEMBER OF THE  LEGISLATURE  OR
 EMPLOYEE  OF  THE LEGISLATURE OWES A DUTY ARISING FROM A RELATIONSHIP OF
 TRUST AND CONFIDENCE TO THE LEGISLATURE, THE STATE, AND THE CITIZENS  OF
 THIS  STATE WITH RESPECT TO MATERIAL, NONPUBLIC INFORMATION DERIVED FROM
 SUCH PERSON'S POSITION AS A MEMBER OF THE LEGISLATURE OR EMPLOYEE OF THE
 LEGISLATURE OR GAINED FROM THE PERFORMANCE  OF  SUCH  PERSON'S  OFFICIAL
 RESPONSIBILITIES.
   §  112-C.  OTHER STATE OFFICIALS. 1. A. THE JOINT COMMISSION ON PUBLIC
 ETHICS SHALL ISSUE SUCH INTERPRETIVE  GUIDANCE  OF  THE  RELEVANT  STATE
 ETHICS  STATUTES  AND  REGULATIONS,  INCLUDING  THE STANDARDS OF ETHICAL
 CONDUCT FOR EXECUTIVE BRANCH EMPLOYEES,  RELATED  TO  USE  OF  NONPUBLIC
 INFORMATION,  AS  NECESSARY TO CLARIFY THAT NO EXECUTIVE BRANCH EMPLOYEE
 MAY USE NONPUBLIC INFORMATION DERIVED FROM SUCH PERSON'S POSITION AS  AN
 EXECUTIVE  BRANCH  EMPLOYEE  OR  GAINED  FROM  THE  PERFORMANCE  OF SUCH
 PERSON'S OFFICIAL RESPONSIBILITIES AS  A  MEANS  FOR  MAKING  A  PRIVATE
 PROFIT.
   B.  THE  ADVISORY COMMITTEE ON JUDICIAL ETHICS SHALL ISSUE SUCH INTER-
 PRETIVE GUIDANCE OF THE RELEVANT ETHICS  RULES  APPLICABLE  TO  JUDICIAL
 OFFICERS,  AS  NECESSARY  TO  CLARIFY  THAT  NO JUDICIAL OFFICER MAY USE
 NONPUBLIC INFORMATION DERIVED FROM SUCH PERSON'S POSITION AS A  JUDICIAL
 OFFICER OR GAINED FROM THE PERFORMANCE OF SUCH PERSON'S OFFICIAL RESPON-
 SIBILITIES AS A MEANS FOR MAKING A PRIVATE PROFIT.
   C.  THE  ADVISORY COMMITTEE ON JUDICIAL ETHICS SHALL ISSUE SUCH INTER-
 PRETIVE GUIDANCE OF THE RELEVANT ETHICS  RULES  APPLICABLE  TO  JUDICIAL
 EMPLOYEES  AS  NECESSARY  TO  CLARIFY  THAT NO JUDICIAL EMPLOYEE MAY USE
 NONPUBLIC INFORMATION DERIVED FROM SUCH PERSON'S POSITION AS A  JUDICIAL
 EMPLOYEE  OR  GAINED  FROM  THE  PERFORMANCE  OF  SUCH PERSON'S OFFICIAL
 RESPONSIBILITIES AS A MEANS FOR MAKING A PRIVATE PROFIT.
   2. SUBJECT TO THE RULE  OF  CONSTRUCTION  UNDER  SECTION  ONE  HUNDRED
 TWELVE-E  OF  THIS  ARTICLE  AND SOLELY FOR THE PURPOSES INSIDER TRADING
 PROHIBITIONS ARISING UNDER THE SECURITIES EXCHANGE  ACT  OF  1934,  EACH
 EXECUTIVE  BRANCH  EMPLOYEE,  EACH  JUDICIAL  OFFICER, AND EACH JUDICIAL
 EMPLOYEE OWES A DUTY ARISING FROM A RELATIONSHIP OF TRUST AND CONFIDENCE
 TO THIS STATE AND THE CITIZENS OF THIS STATE WITH RESPECT  TO  MATERIAL,
 NONPUBLIC  INFORMATION  DERIVED FROM SUCH PERSON'S POSITION AS AN EXECU-
 TIVE BRANCH EMPLOYEE, JUDICIAL OFFICER, OR JUDICIAL EMPLOYEE  OR  GAINED
 FROM THE PERFORMANCE OF SUCH PERSON'S OFFICIAL RESPONSIBILITIES.
   §  112-D.  PARTICIPATION  IN  INITIAL  PUBLIC OFFERINGS. NO PERSON SET
 FORTH IN SECTION ONE HUNDRED TWELVE OF THIS ARTICLE MAY PURCHASE SECURI-
 TIES THAT ARE THE SUBJECT OF AN INITIAL PUBLIC OFFERING  IN  ANY  MANNER
 OTHER THAN IS AVAILABLE TO MEMBERS OF THE PUBLIC GENERALLY.

 A. 10228                            3
 
   §  112-E.  RULE OF CONSTRUCTION. NOTHING IN THIS ARTICLE OR THE INTER-
 PRETIVE GUIDANCE  TO  BE  ISSUED  PURSUANT  TO  THIS  ARTICLE  SHALL  BE
 CONSTRUED TO:
   1. IMPAIR OR LIMIT THE CONSTRUCTION OF THE ANTIFRAUD PROVISIONS OF THE
 SECURITIES  LAWS  OR  THE COMMODITY EXCHANGE ACT OR THE AUTHORITY OF THE
 SECURITIES AND EXCHANGE COMMISSION  OR  THE  COMMODITY  FUTURES  TRADING
 COMMISSION UNDER THOSE PROVISIONS;
   2.  BE  IN  DEROGATION  OF THE OBLIGATIONS, DUTIES, AND FUNCTIONS OF A
 MEMBER OF THE LEGISLATURE, AN EMPLOYEE OF THE LEGISLATURE, AN  EXECUTIVE
 BRANCH  EMPLOYEE,  A  JUDICIAL  OFFICER, OR A JUDICIAL EMPLOYEE, ARISING
 FROM SUCH PERSON'S OFFICIAL POSITION; OR
   3. BE IN DEROGATION OF EXISTING LAWS, REGULATIONS,  OR  ETHICAL  OBLI-
 GATIONS  GOVERNING MEMBERS OF THE LEGISLATURE, EMPLOYEES OF THE LEGISLA-
 TURE, EXECUTIVE BRANCH EMPLOYEES, JUDICIAL OFFICERS, OR JUDICIAL EMPLOY-
 EES.
   § 3. This act shall take effect immediately.