S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5090
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 12, 2025
                                ___________
 
 Introduced  by M. of A. SOLAGES -- read once and referred to the Commit-
   tee on Governmental Operations
 
 AN ACT to amend the public officers law, the public authorities law  and
   the  general municipal law, in relation to prohibiting certain persons
   from receiving compensation for legal fees, consulting, or other  work
   performed for an industrial development agency, an economic assistance
   corporation, or from a state or local authority
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraphs (a) and (b) of subdivision 7 of  section  73  of
 the  public officers   law, as amended by section 3 of part K of chapter
 286 of the laws of 2016, are amended to read as follows:
   (a) No statewide elected official, or state officer or employee, other
 than in the proper discharge of official  state  or  local  governmental
 duties,  or  member of the legislature or legislative employee, or poli-
 tical party [chairman] CHAIR shall receive, directly or  indirectly,  or
 enter  into  any  agreement express or implied for, any compensation, in
 whatever form, for the appearance or rendition of services by  [himself,
 herself] THEMSELF or another in relation to any case, proceeding, appli-
 cation  or  other  matter before a state agency where such appearance or
 rendition of services is in connection with:
   (i) the purchase, sale, rental or lease of  real  property,  goods  or
 services, or a contract therefor, from, to or with any such agency;
   (ii) any proceeding relating to rate making;
   (iii)  the  adoption  or  repeal  of any rule or regulation having the
 force and effect of law;
   (iv) the obtaining of grants of money or loans;
   (v) licensing; [or]
   (vi) any proceeding relating to a franchise provided for in the public
 service law[.]; OR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07904-01-5
 A. 5090                             2
              

 
   (VII) LEGAL SERVICES, CONSULTING, OR ANY OTHER CONTRACTUAL EXPENDITURE
 FOR SERVICES, WHETHER ACTUALLY PERFORMED OR NOT FROM  A  STATE  OR LOCAL
 AUTHORITY IF SUCH STATEWIDE ELECTED OFFICIAL, STATE OFFICER  OR  EMPLOY-
 EE,   MEMBER   OF   THE  LEGISLATURE, LEGISLATIVE EMPLOYEE  OR POLITICAL
 PARTY  CHAIR:  (A)  IS DIRECTLY CONTRACTED BY A STATE OR LOCAL AUTHORITY
 FOR THE RELATED SERVICES; (B) OWNS OR CONTROLS  DIRECTLY  OR  INDIRECTLY
 TEN  PER  CENTUM  OR MORE OF STOCK IN A  CORPORATION THAT  IS CONTRACTED
 BY  A  STATE  OR  LOCAL  AUTHORITY FOR THE RELATED SERVICES; OR (C) OWNS
 OR CONTROLS TEN PER CENTUM OR MORE OF THE  CAPITAL,  PROFITS, OR   BENE-
 FICIAL  INTEREST  IN A FIRM OR ASSOCIATION THAT IS CONTRACTED BY A STATE
 OR LOCAL AUTHORITY FOR THE RELATED SERVICES.
   (b) No political party [chairman] CHAIR in a county wholly included in
 a city having a population of one million or more shall receive, direct-
 ly or indirectly, or enter into any agreement express  or  implied  for,
 any  compensation,  in whatever form, for the appearance or rendition of
 services by [himself, herself] THEMSELF or another in  relation  to  any
 case,  proceeding,  application  or  other matter before any city agency
 where such appearance or rendition of services is in connection with:
   (i) the purchase, sale, rental or lease of  real  property,  goods  or
 services, or a contract therefor, from, to or with any such agency;
   (ii) any proceeding relating to ratemaking;
   (iii)  the  adoption  or  repeal  of any rule or regulation having the
 force and effect of law;
   (iv) the obtaining of grants of money or loans;
   (v) licensing. For purposes of this paragraph,  the  term  "licensing"
 shall  mean  any  city  agency  activity  respecting  the grant, denial,
 renewal, revocation,  enforcement,  suspension,  annulment,  withdrawal,
 recall,  cancellation or amendment of a license, permit or other form of
 permission conferring the right or privilege to engage in (i) a  profes-
 sion, trade, or occupation or (ii) any business or activity regulated by
 a  regulatory  agency  of  a  city  agency  which in the absence of such
 license, permit or other form of permission would be prohibited; [and]
   (vi) any proceeding relating to a franchise[.]; AND
   (VII) LEGAL SERVICES, CONSULTING, OR ANY OTHER CONTRACTUAL EXPENDITURE
 FOR SERVICES, WHETHER ACTUALLY PERFORMED OR NOT FROM A  STATE  OR  LOCAL
 AUTHORITY  IF SUCH POLITICAL  PARTY CHAIR: (A) IS DIRECTLY CONTRACTED BY
 A STATE OR LOCAL  AUTHORITY  FOR  THE  RELATED  SERVICES;  (B)  OWNS  OR
 CONTROLS  DIRECTLY  OR  INDIRECTLY  TEN PER CENTUM OR MORE OF STOCK IN A
 CORPORATION THAT IS  CONTRACTED BY A STATE  OR LOCAL AUTHORITY  FOR  THE
 RELATED  SERVICES; OR (C) OWNS OR CONTROLS TEN PER CENTUM OR MORE OF THE
 CAPITAL, PROFITS, OR BENEFICIAL INTEREST IN A FIRM OR  ASSOCIATION  THAT
 IS CONTRACTED BY A STATE OR LOCAL AUTHORITY FOR THE RELATED SERVICES.
   §  2.  Subdivision 1 of section 2825 of the public authorities law, as
 amended by chapter 766 of the laws  of  2005,  is  amended  to  read  as
 follows:
   1.  No  public officer or employee shall be ineligible for appointment
 as a trustee or member of the governing body of a state or local author-
 ity, as defined in section two of this chapter, and any  public  officer
 or  employee  may  accept  such appointment and serve as such trustee or
 member without forfeiture of any other  public  office  or  position  of
 public  employment  by  reason  thereof.  PROVIDED, NO STATEWIDE ELECTED
 OFFICIAL, STATE OFFICER OR EMPLOYEE, MEMBER OF THE LEGISLATURE, LEGISLA-
 TIVE EMPLOYEE OR POLITICAL PARTY CHAIR AS DEFINED IN  SECTIONS  SEVENTY-
 THREE  AND  SEVENTY-THREE-A  OF  THE  PUBLIC  OFFICERS LAW SHALL RECEIVE
 COMPENSATION FOR  LEGAL  FEES,  CONSULTING,  OR  ANY  OTHER  CONTRACTUAL
 EXPENDITURE  FOR  SERVICES,  WHETHER  ACTUALLY  PERFORMED OR NOT, FROM A
 A. 5090                             3
 
 STATE OR LOCAL AUTHORITY IF   SUCH  STATEWIDE  ELECTED  OFFICIAL,  STATE
 OFFICER  OR EMPLOYEE, MEMBER OF THE LEGISLATURE, LEGISLATIVE EMPLOYEE OR
 POLITICAL PARTY CHAIR: (I) IS DIRECTLY CONTRACTED BY A  STATE  OR  LOCAL
 AUTHORITY  FOR  THE  RELATED SERVICES; (II) OWNS OR CONTROLS DIRECTLY OR
 INDIRECTLY TEN PER CENTUM OR MORE OF STOCK IN A CORPORATION OR  THAT  IS
 CONTRACTED  BY  A  STATE OR LOCAL AUTHORITY FOR THE RELATED SERVICES; OR
 (III) OWNS OR CONTROLS TEN PER CENTUM OR MORE OF THE  CAPITAL,  PROFITS,
 OR  BENEFICIAL INTEREST IN A FIRM OR ASSOCIATION THAT IS CONTRACTED BY A
 STATE OR LOCAL AUTHORITY FOR THE RELATED SERVICES.
   § 3. Section 801 of the general municipal law, as amended  by  chapter
 1043 of the laws of 1965, is amended to read as follows:
   § 801. Conflicts of interest prohibited. Except as provided in section
 eight  hundred two of this chapter, (1) no municipal officer or employee
 shall have an interest in any contract with the  municipality  of  which
 [he  is] THEY ARE an officer or employee, when such officer or employee,
 individually or as a member of a board, has the power  or  duty  to  (a)
 negotiate,  prepare,  authorize  or approve the contract or authorize or
 approve payment thereunder (b) audit bills or claims under the contract,
 or (c) appoint an officer or employee who  has  any  of  the  powers  or
 duties set forth above [and], (2) no chief fiscal officer, treasurer, or
 [his]  THEIR  deputy  or  employee,  shall have an interest in a bank or
 trust company designated as a  depository,  paying  agent,  registration
 agent  or  for  investment of funds of the municipality of which [he is]
 THEY ARE an officer or employee, AND  (3)  NO  MUNICIPAL  OFFICER  SHALL
 RECEIVE COMPENSATION FOR LEGAL FEES, CONSULTING, OR ANY OTHER CONTRACTU-
 AL  EXPENDITURE  FOR SERVICES, WHETHER ACTUALLY PERFORMED OR NOT, FROM A
 STATE OR LOCAL AUTHORITY IF   SUCH MUNICIPAL OFFICER:  (A)  IS  DIRECTLY
 CONTRACTED  BY  A STATE OR LOCAL AUTHORITY FOR THE RELATED SERVICES, (B)
 OWNS OR CONTROLS DIRECTLY OR INDIRECTLY TEN PERCENT OR MORE OF STOCK  IN
 A  CORPORATION  THAT IS CONTRACTED BY A STATE OR LOCAL AUTHORITY FOR THE
 RELATED SERVICES, OR (C) OWNS OR CONTROLS TEN PERCENT  OR  MORE  OF  THE
 CAPITAL,  PROFITS,  OR BENEFICIAL INTEREST IN A FIRM OR ASSOCIATION THAT
 IS CONTRACTED BY A STATE OR LOCAL AUTHORITY FOR  THE  RELATED  SERVICES.
 The  provisions  of  this  section  shall  in  no  event be construed to
 preclude the payment of lawful compensation and  necessary  expenses  of
 any  municipal  officer  or  employee in one or more positions of public
 employment, the holding of which is not prohibited by law.
   § 4. This act shall take effect immediately, and  apply  to  contracts
 entered into on or after such effective date.