S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1499
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2021
                                ___________
 
 Introduced by M. of A. SANTABARBARA, WOERNER, GUNTHER -- Multi-Sponsored
   by  --  M.  of  A. GLICK -- read once and referred to the Committee on
   Governmental Operations
 
 AN ACT to amend the legislative law, in relation to prohibiting  members
   of the legislature from receiving certain income

   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 a new section  5-b
 to read as follows:
   §  5-B. PROHIBITION ON OUTSIDE EARNED INCOME FOR MEMBERS. 1.  STARTING
 IN CALENDAR YEAR TWO THOUSAND TWENTY-THREE, 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
 LEGISLATURE, 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;
   (6) COPYRIGHT ROYALTIES, FEES, AND THEIR FUNCTIONAL  EQUIVALENT,  FROM
 THE  USE  OR SALE OF COPYRIGHT, PATENT AND SIMILAR FORMS OF INTELLECTUAL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD04606-01-1

 A. 1499                             2
 
 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 TWENTY-THREE, 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 THIS CHAPTER, MAY, IN LIEU OF OR IN ADDITION TO A CIVIL PENAL-
 TY, 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.
   § 2. 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 THIS  CHAPTER  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 individ-
 ual  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  inten-
 tionally  violates the provisions of paragraph a, b, c, d, e, g, or i 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 thou-
 sand 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 penalties to be
 imposed, the commission shall consider the seriousness of the violation,
 the amount of gain to the individual and whether the  individual  previ-
 ously  had  any  civil  or  criminal  penalties imposed pursuant to this

 A. 1499                             3
 
 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  seven-
 ty-three  or section seventy-four of the public officers law, the legis-
 lative 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
 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.
   § 3. This act shall take effect January 1, 2023.