S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6123
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 10, 2021
                                ___________
 
 Introduced  by M. of A. GALEF -- read once and referred to the Committee
   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;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08976-01-1

 A. 6123                             2
 
   D. THE COMPTROLLER; AND
   E. THE ATTORNEY GENERAL.
   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-

 A. 6123                             3
 
 TIES  THAT  ARE  THE SUBJECT OF AN INITIAL PUBLIC OFFERING IN ANY MANNER
 OTHER THAN IS AVAILABLE TO MEMBERS OF THE PUBLIC GENERALLY.
   §  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.