S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9617
 
                             I N  S E N A T E
 
                             December 19, 2022
                                ___________
 
 Introduced  by  Sen.  STEWART-COUSINS -- read twice and ordered printed,
   and when printed to be committed to the Committee on Rules
 
 AN ACT to amend the legislative law,  in  relation  to  compensation  of
   members
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1.  The opening paragraph of subdivision 1 of section 5 of the
 legislative law, as amended by chapter 635  of  the  laws  of  1998,  is
 amended to read as follows:
   Effective  January  first, [nineteen hundred ninety-nine] TWO THOUSAND
 TWENTY-THREE, each member of the legislature shall receive a  salary  of
 [seventy-nine  thousand  five  hundred]  ONE  HUNDRED FORTY-TWO THOUSAND
 dollars per annum. Such salary of a member of the legislature  shall  be
 payable  in twenty-six bi-weekly installments provided, however, that if
 legislative passage of the budget as defined  in  subdivision  three  of
 this section has not occurred prior to the first day of any fiscal year,
 the  net  amount of any such bi-weekly salary installment payments to be
 paid on or after such day shall be withheld  and  not  paid  until  such
 legislative passage of the budget has occurred whereupon bi-weekly sala-
 ry installment payments shall resume and an amount equal to the accrued,
 withheld and unpaid installments shall be promptly paid to each member.
   §  2.  The  legislative  law is amended by adding a new section 5-b to
 read as follows:
   § 5-B. LIMIT ON OUTSIDE EARNED INCOME BY MEMBERS. 1. EFFECTIVE JANUARY
 FIRST, TWO THOUSAND TWENTY-FIVE A MEMBER OF THE LEGISLATURE RECEIVING  A
 SALARY  FOR LEGISLATIVE WORK FROM THE STATE OF NEW YORK SHALL BE PERMIT-
 TED TO EARN OUTSIDE INCOME EACH YEAR  FOR  PERFORMING  FEE  FOR  SERVICE
 ACTIVITIES  AND COMPENSATED OUTSIDE ACTIVITIES APPROVED UNDER THE PERMA-
 NENT JOINT RULES OF THE SENATE AND ASSEMBLY IN  AN  AMOUNT  TOTALING  NO
 GREATER THAN THE EARNING LIMITATIONS FOR RETIRED PERSONS IN POSITIONS OF
 PUBLIC  SERVICE  ALLOWED  FOR  THE  SAME  YEAR  UNDER SUBDIVISION TWO OF
 SECTION TWO HUNDRED TWELVE OF THE RETIREMENT AND  SOCIAL  SECURITY  LAW.
 COMPLIANCE  WITH  THE  LIMIT  ON OUTSIDE EARNED INCOME DESCRIBED IN THIS
 SECTION SHALL BE A CONDITION PRECEDENT TO RECEIVING A SALARY FOR  LEGIS-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD16630-06-2
 S. 9617                             2
 
 LATIVE  ACTIVITIES FROM THE STATE OF NEW YORK, AND VOTING AS A MEMBER OF
 THE LEGISLATURE OF THE STATE OF NEW YORK.
   2.  A.  FOR PURPOSES OF THIS SECTION, THE TERM "OUTSIDE EARNED INCOME"
 SHALL MEAN WAGES, SALARIES, FEES AND OTHER  FORMS  OF  COMPENSATION  FOR
 SERVICES ACTUALLY RENDERED.
   B.  FOR THE PURPOSES OF THIS SECTION, THE TERM "OUTSIDE EARNED INCOME"
 SHALL NOT INCLUDE:
   (1) SALARY, BENEFITS AND ALLOWANCES PAID BY THE STATE;
   (2) INCOME AND ALLOWANCES ATTRIBUTABLE TO SERVICE IN THE  RESERVES  OF
 THE  ARMED  FORCES  OF THE UNITED STATES, NATIONAL GUARD OR OTHER ACTIVE
 MILITARY SERVICE;
   (3) COPYRIGHT ROYALTIES, FEES, AND THEIR FUNCTIONAL  EQUIVALENT,  FROM
 THE USE OF COPYRIGHTS, PATENTS AND SIMILAR FORMS OF INTELLECTUAL PROPER-
 TY  RIGHTS,  WHEN  RECEIVED FROM ESTABLISHED USERS OR PURCHASERS OF SUCH
 RIGHTS;
   (4) INCOME FROM RETIREMENT PLANS OF THE STATE OF NEW YORK OR THE  CITY
 OF NEW YORK, PRIVATE PENSION PLANS OR DEFERRED COMPENSATION PLANS (E.G.,
 401,  403(B),  457,  ETC.)  ESTABLISHED  IN ACCORDANCE WITH THE INTERNAL
 REVENUE CODE;
   (5) INCOME FROM INVESTMENTS AND  CAPITAL  GAINS,  WHERE  THE  MEMBER'S
 SERVICES ARE NOT A MATERIAL FACTOR IN THE PRODUCTION OF INCOME;
   (6)  INCOME FROM A TRADE OR BUSINESS IN WHICH A MEMBER OF THEIR FAMILY
 HOLDS A CONTROLLING INTEREST, WHERE THE  MEMBER'S  SERVICES  ARE  NOT  A
 MATERIAL FACTOR IN THE PRODUCTION OF INCOME; AND
   (7)  COMPENSATION  FROM  SERVICES  ACTUALLY  RENDERED PRIOR TO JANUARY
 FIRST, TWO THOUSAND TWENTY-FIVE, OR PRIOR TO BEING SWORN IN AS A  MEMBER
 OF THE LEGISLATURE.
   3.  A  MEMBER  OF  THE  LEGISLATURE  WHO  KNOWINGLY  AND INTENTIONALLY
 VIOLATES THE PROVISIONS OF THIS SECTION 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 IN  CONNECTION  WITH  SUCH
 VIOLATION.  ASSESSMENT  OF A CIVIL PENALTY SHALL BE MADE BY THE LEGISLA-
 TIVE ETHICS COMMISSION.
   § 3. Paragraph (a) of subdivision 9 of section 80 of  the  legislative
 law,  as  amended  by  section 4 of part QQ of chapter 56 of the laws of
 2022, 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
 S. 9617                             3
 
 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
 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.
   §  4.  Paragraph (i) of subdivision 7 of section 80 of the legislative
 law, as amended by section 4 of part QQ of chapter 56  of  the  laws  of
 2022, is amended to read as follows:
   i.  Upon  written request from any person who is subject to the juris-
 diction of the commission and  the  requirements  of  sections  seventy-
 three,  seventy-three-a and seventy-four of the public officers law, AND
 SECTION FIVE-B OF THIS CHAPTER render formal advisory  opinions  on  the
 requirements  of  said  provisions. A formal written opinion rendered by
 the commission, until and unless amended or revoked, shall be binding on
 the legislative ethics commission in any subsequent proceeding  concern-
 ing  the  person  who requested the opinion and who acted in good faith,
 unless material facts were omitted or misstated by  the  person  in  the
 request  for  an opinion.   Such opinion may also be relied upon by such
 person, and may be introduced and shall be a defense in any criminal  or
 civil  action. The commission on ethics and lobbying in government shall
 not investigate an individual for potential violations of law based upon
 conduct approved and covered in its entirety by such an opinion,  except
 that  such opinion shall not prevent or preclude an investigation of and
 report to the legislative ethics commission concerning  the  conduct  of
 S. 9617                             4
 
 the  person  who obtained it by the commission on ethics and lobbying in
 government for violations of section seventy-three,  seventy-three-a  or
 seventy-four  of the public officers law AND SECTION 5-B OF THIS CHAPTER
 to  determine whether the person accurately and fully represented to the
 legislative ethics commission the facts relevant to the formal  advisory
 opinion  and  whether  the  person's  conduct conformed to those factual
 representations. The commission on ethics  and  lobbying  in  government
 shall be authorized and shall have jurisdiction to investigate potential
 violations  of  the law arising from conduct outside of the scope of the
 terms of the advisory opinion; and
   § 5. Paragraph (a) of subdivision 10 of section 94  of  the  executive
 law, as added by section 2 of part QQ of chapter 56 of the laws of 2022,
 is amended to read as follows:
   (a)  The  commission  shall  receive complaints and referrals alleging
 violations of section seventy-three, seventy-three-a or seventy-four  of
 the  public officers law, article one-A AND SECTION FIVE-B of the legis-
 lative law, or section one hundred seven of the civil service law.
   § 6. If any clause, sentence, paragraph, section or part of  this  act
 shall  be adjudged by any court of competent jurisdiction to be invalid,
 such judgment shall not affect, impair or invalidate the remainder ther-
 eof, but shall be confined in its operation  to  the  clause,  sentence,
 paragraph,  section or part thereof directly involved in the controversy
 in which such judgment shall have been rendered.
   § 7. This act shall take effect January 1, 2023.