A10742 Summary:

BILL NOA10742
 
SAME ASSAME AS S08160
 
SPONSORHeastie
 
COSPNSR
 
MLTSPNSR
 
Amd 14-107, 14-100, 14-104, 14-112, 14-118, 14-126 & 14-124, add 14-107-a & 14-132, El L; amd 1-h, 1-j, 1-k & 1-c, Leg L; add 172-e, 172-f, 109 & 94, Exec L; amd 73, 73-a & 74, Pub Off L
 
Relates to independent expenditures during election campaigns; provides that independent expenditures shall not include payments or expenditures where coordination occurs in the creation, formation or operation of the person making such payment or expenditure (Part A); relates to monies received and expenditures made by a party committee or constituted committee (Part B); amends the election law, in relation to disposition of campaign funds (Part C); relates to in-kind donations (Part D); relates to contingency fees (Part E); relates to the disclosure of certain donations by charitable non-profit entities (Part F); relates to the disclosure of certain activities by non-charitable non-profit entities (Part G); relates to the registration of certain service providers and political consulting services; defines terms (Part H); relates to communications with professional journalists and newscasters (Part I); relates to investigations by the joint commissioner on public ethics and to violations of the lobbying act (Part J); and relates to financial disclosure forms (Part K).
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A10742 Actions:

BILL NOA10742
 
06/17/2016referred to ways and means
06/17/2016reported referred to rules
06/17/2016reported
06/17/2016rules report cal.558
06/17/2016substituted by s8160
 S08160 AMEND= FLANAGAN
 06/17/2016REFERRED TO RULES
 06/17/2016ORDERED TO THIRD READING CAL.2011
 06/17/2016MESSAGE OF NECESSITY - 3 DAY MESSAGE
 06/17/2016PASSED SENATE
 06/17/2016DELIVERED TO ASSEMBLY
 06/17/2016referred to ways and means
 06/17/2016substituted for a10742
 06/17/2016ordered to third reading rules cal.558
 06/17/2016message of necessity - 3 day message
 06/17/2016passed assembly
 06/17/2016returned to senate
 08/12/2016DELIVERED TO GOVERNOR
 08/24/2016SIGNED CHAP.286
 08/24/2016APPROVAL MEMO.4
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A10742 Committee Votes:

RULES Chair:Heastie Message of Necessity DATE:06/17/2016AYE/NAY:17/5 Action: Favorable
HeastieAyeKolbNay
GottfriedAyeTediscoNay
LentolAyeOaksNay
FarrellAyeButlerExcused
GanttExcusedCrouchExcused
NolanAyeFinchExcused
WeinsteinAyeBarclayNay
HooperAyeRaiaNay
OrtizExcusedDupreyExcused
PretlowAye
CookAye
GlickAye
MorelleAye
AubryAye
EnglebrightAye
WrightExcused
DinowitzAye
ColtonAye
MagnarelliAye
PerryAye
MarkeyExcused

RULES Chair:Heastie DATE:06/17/2016AYE/NAY:22/0 Action: Favorable
HeastieAyeKolbAye
GottfriedAyeTediscoAye
LentolAyeOaksAye
FarrellAyeButlerExcused
GanttExcusedCrouchExcused
NolanAyeFinchExcused
WeinsteinAyeBarclayAye
HooperAyeRaiaAye
OrtizExcusedDupreyExcused
PretlowAye
CookAye
GlickAye
MorelleAye
AubryAye
EnglebrightAye
WrightExcused
DinowitzAye
ColtonAye
MagnarelliAye
PerryAye
MarkeyExcused

WAYS AND MEANS Chair:Farrell DATE:06/17/2016AYE/NAY:27/0 Action: Favorable refer to committee Rules
FarrellAyeOaksAye
LentolAyeCrouchExcused
SchimmingerAyeBarclayAye
GanttExcusedFitzpatrickAye
WeinsteinAyeSaladinoAye
GlickAyeHawleyAye
NolanAyeDupreyExcused
PretlowAyeCorwinAye
PerryAyeMalliotakisAye
ColtonAyeWalterAye
CookAye
CahillAye
AubryAye
HooperAye
ThieleAye
WrightExcused
CusickAye
OrtizExcused
BenedettoExcused
MarkeyExcused
MoyaAye
WeprinExcused
RodriguezAye
RamosAye
BraunsteinAye

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A10742 Floor Votes:

There are no votes for this bill in this legislative session.
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A10742 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A10742                Revised 06/20/16
 
SPONSOR: Rules (Heastie)
  TITLE OF BILL: An act to amend the election law, in relation to inde- pendent expenditures during election campaigns (Part A); to amend the election law, in relation to monies received and expenditures made by a party committee or constituted committee (Part B); to amend the election law, in relation to disposition of campaign funds (Part C); to amend the legislative law, in relation to reports by lobbyists (Part D); to amend the legislative law, in relation to contingent fees (Part E); to amend the executive law, in relation to the disclosure of certain donations by charitable non-profit entities (Part F); to amend the executive law, in relation to disclosure of certain activities by non-charitable non-pro- fit entities (Part G); to amend the executive law, in relation to the registration of certain service providers (Part H); to amend the legis- lative law, in relation to communications with professional journalists and newscasters; and in relation to reporting of certain funding by lobbyists (Part I); to amend the executive law, in relation to investi- gations by the joint commission on public ethics and to violations of the lobbying act (Part J); and to amend the public officers law, in relation to financial disclosure forms (Part K)   PURPOSE OF THE BILL: The purpose of this bill is to provide New York State with comprehensive ethics, lobbying, campaign finance, and public officer's law reform.   SUMMARY OF PROVISIONS:   PART A Section 1 of the bill would add "coordination" to the list of non-inde- pendent expenditures and define the following scenarios as prohibited coordination: *The independent expenditure committee was formed by the candidate or the candidate's agents; *The candidate or the candidate's agents appeared at events sponsored by the independent expenditure committee; *The independent expenditure committee retained a candidate's former staffer; *The independent expenditure committee is operated by a member of the candidate's immediate family; *The communication reproduces non-public campaign-related material; *The independent expenditure committee shares space with the candidate or the candidate's agents; *The independent expenditure committee has strategic discussions with the candidate or the candidate's agents; *The independent expenditure committee and the candidate or the candi- date's agents share a professional campaign services provider, provided that a campaign services provider shall be permitted to maintain a confidentiality agreement with both parties in order to serve in a shared role; *The independent expenditure committee utilizes non-public information from a person who was previously retained by the candidate; Section 1 would also define certain relevant terms and establish non- coordination status for responses to policy issue inquiries and for communications related to preexisting commercial interests. Section 2 would make a conforming change in the election law related to the monetary disclosure threshold for independent expenditures. Section 3 would require persons making independent expenditures to register as independent expenditure committees and would require addi- tional disclosures for such committees upon registration. Section 4 would require independent expenditure committees to make certain additional disclosures as part of their filing obligations. Section 5 would establish that any criminal penalties resulting from section 14-107 of the election law shall require a knowing and willful violation in accordance with existing section 14126 of the election law, and that a knowing and willful violation of certain provisions of section 14-107 the election law shall result in a civil penalty. Section 6 would amend the definition of "contribution" in the election law to reference coordinated communications as defined in this bill. Section 7 would create and define the terms "independent expenditure committee" and "political action committee." Section 8 would make a conforming change in the election law related to authorization statements filed by political committees. Section 9would require political action committees to disclose any indi- viduals who exert operational control over the political action commit- tee, as well as any salaried employees of the political action commit- tee. Section 10 would prohibit certain foul's of spending by independent expenditure committees and political action committees. Section 11 would establish a civil penalty for a knowing and willful violation of the spending restrictions on independent expenditure committees and political action committees. Section 12 would establish severability. Section 13 would establish an effective date of 30 days.   PART B Section 1 would amend section 14-124 of the election law to require housekeeping accounts to be deposited in a segregated account. Section 2 would establish an immediate effective date.   PART C Section 1 of this bill would amend section 14-104-of the election law to permit a candidate to designate a three-person committee to be charged with appointing or removing the treasurer of the candidate's authorized committee. The candidate would retain the right to revoke designation of committee members at any time. Section 2 of this bill would amend section 14-132 of the election law to facilitate the winding down of an authorized candidate committee and to set a two-year time frame for winding down upon the death of a candi- date. The bill would provide multiple possible uses for funds in an authorized account upon wind down including: Returning donations to the contributor; Donating the funds to a charity; Donating the funds to SUNY or CUNY; Donating the funds to the state general fund; Contributing the funds to a candidate or party. Section 3 would set forth the effective date of the bill.   PART D Section 1 and 2 would amend section 1-h and 1-j of the legislative law to require lobbyists to disclose their source of funding to the Joint Commission on Public Ethics (JCOPE) when lobbying spending totals over fifteen thousand dollars, or when at least 3% of their expenditures were devoted to lobbying, and would require registration for each expense over two thousand five hundred dollars. Membership dues, fees and assessments would not be required to be disclosed. 501(c)(4)'s would also be required to disclose in-kind donations from 501(c)(3)'s. These sections would also trigger a reporting requirement for a 501(c)(3) who gives an in-kind donation of over $2500 to a 501(c)(4), to disclose their sources of funding to the Attorney General. Section 3 would make it effective on the 30th day after enactment.   PART E Section 1 would amend section 1-k of the legislative law to require that any lobbyist in receipt of contingent fees be subject to a misdemeanor A charge as well as the greater of a $10,000 civil penalty or disgorgement of any ill-gotten gains from the illegal contingency fee arrangement. Section 2 would establish an immediate effective date.   PART F Section 1 would add a new section 172-e to the executive law that would require a 501(c)(3) to report their sources of funding to the Department of Law when such entity makes an in kind donation to a 501(c)(4) of over $2500. Reporting would be mandated on a semi-annual basis. The source of funding reports would be shared with JCOPE for the purpose of posting such reports on the commission's website. The bill also articulates a disclosure waiver, and appeal, process. Section 2 would make the bill effective the ninetieth day after becoming law.   PART G Section 1 would add a new section 172-f to the executive law that would require501(c)(4) organizations who engage in issue advocacy to make certain disclosures regarding the issue advocacy to the Department of law. The bill requires the Department of Law to make such disclosures public on their website and provides for a disclosure waiver, and appeal, process. Section 2 would make the bill effective the thirtieth day after becoming law.   PART H Section 1 would add a new section 109 to the executive law that would require persons providing political consulting services to, or on behalf of an elected official or candidate for elected office, to register with the Department of State and provide certain information to the depart- ment of state in their registration. Section 2 would make the bill effective the sixtieth day after becoming law.   PART I Section 1 would amend section 1-c of the Legislative Law to exclude communications with journalists and editorial boards from the definition of lobbying. Section 2 would provide for an immediate effective date.   PART J Sections 1 and 2 would amend section 94 of the executive law to require JCOPE to provide persons under investigation with several due process rights including the right to be heard prior to a final determination by the commission, and a right be notified about charges and information when such information is not prejudicial to the complainant or investi- gation. Section 1 of the bill would also allow JCOPE sixty days to complete an investigation and would require JCOPE to notify the subject of an investigation when such investigation is closed. Section 3 would provide for an immediate effective date.   PART K Section 1 through 10 would make technical amendments including using gender inclusive pronouns and substituting "commission" for "committee" to conform with an updated agency name for JCOPE. Section 2 would make it effective immediately and provide for specific effective dates pertaining to the technical amendments to the Financial Disclosure Statement.   STATEMENT IN SUPPORT This bill strengthens New York State's election, lobbying, ethics, and public officer's laws. First, in response to the Supreme Court's Citi- zens United decision, this bill would institute the strictest anti-coor- dination law in the nation, and specifically prohibit coordination in New York State election law for the first time. The bill would also expressly identify which activities constitute prohibited coordination, and strictly prohibit coordination in egregious scenarios, such as the "independent" spender being an immediate family member of the candidate, as well as in subtle scenarios, such as the dissemination of a candi- date's campaign material by supposedly "independent" groups. This will allow New York's electoral politics to achieve a clear and meaningful demarcation between candidates and unlimited expenditures and will provide a much-needed reform to New York's campaign finance system. Second, the bill would increase penalties for egregious lobbying violations, while also providing for enhanced due process for persons under investigation for ethics and lobbying violations. The bill would also require political consultants that provide services to sitting elected officials or candidates for elected office and who also have clients with business before the state or a locality to register with the state and to disclose their clients. This reform prevents organiza- tions from corrupting the political process and utilizing funds that are not intended for political purposes Disclosure of political relation- ships and funding behaviors widely recognized to be influential, but which operate in the shadows, is essential to restoring the public's faith and trust in our political process.   BUDGET IMPLICATIONS: None   EFFECTIVE DATE: This act shall take effect immediately provided, however, that the applicable effective date of Parts B through K of this act shall be as specifically set forth in the last section of such Parts.
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A10742 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          10742
 
                   IN ASSEMBLY
 
                                      June 17, 2016
                                       ___________
 
        Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Heastie) --
          (at request of the Governor) -- read once and referred to the  Commit-
          tee on Ways and Means
 
        AN  ACT  to  amend the election law, in relation to independent expendi-
          tures during election campaigns (Part A); to amend the  election  law,
          in  relation  to  monies  received  and  expenditures  made by a party
          committee or constituted committee (Part B);  to  amend  the  election
          law,  in  relation to disposition of campaign funds (Part C); to amend
          the legislative law, in relation to reports by lobbyists (Part D);  to
          amend the legislative law, in relation to contingent fees (Part E); to
          amend  the  executive  law,  in  relation to the disclosure of certain
          donations by charitable non-profit entities (Part  F);  to  amend  the
          executive  law,  in  relation  to  disclosure of certain activities by
          non-charitable non-profit entities (Part G); to  amend  the  executive
          law,  in  relation  to  the  registration of certain service providers
          (Part H); to amend the legislative law, in relation to  communications
          with  professional  journalists  and  newscasters;  and in relation to
          reporting of certain funding by lobbyists (Part I); to amend the exec-
          utive law, in relation to investigations by the  joint  commission  on
          public  ethics  and to violations of the lobbying act (Part J); and to
          amend the public officers law, in  relation  to  financial  disclosure
          forms (Part K)
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. This act enacts into law major  components  of  legislation
     2  relating  to campaign funds. Each component is wholly contained within a
     3  Part identified as Parts A  through  K.  The  effective  date  for  each
     4  particular provision contained within such Part is set forth in the last
     5  section  of  such  Part. Any provision in any section contained within a
     6  Part, including the effective date of the Part, which makes a  reference
     7  to a section "of this act", when used in connection with that particular
     8  component,  shall  be  deemed  to  mean  and  refer to the corresponding
     9  section of the Part in which it is found. Section three of this act sets
    10  forth the general effective date of this act.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD12084-11-6

        A. 10742                            2
 
     1                                   PART A
 
     2    Section  1.  Subdivision  1  of section 14-107 of the election law, as
     3  amended by section 8 of part CC of chapter 56 of the laws  of  2015,  is
     4  amended to read as follows:
     5    1. For purposes of this article:
     6    (a)  "Independent expenditure" means an expenditure made by [a person]
     7  an independent expenditure committee conveyed to five  hundred  or  more
     8  members  of  a  general  public  audience in the form of (i) an audio or
     9  video communication via broadcast, cable or satellite,  (ii)  a  written
    10  communication   via   advertisements,   pamphlets,   circulars,  flyers,
    11  brochures, letterheads or (iii) other published  statements  which:  (i)
    12  irrespective  of when such communication is made, contains words such as
    13  "vote," "oppose," "support," "elect," "defeat," or "reject," which  call
    14  for  the  election  or  defeat of the clearly identified candidate, (ii)
    15  refers to and advocates for or against a clearly identified candidate or
    16  ballot proposal on or after January first of the year of the election in
    17  which such candidate is seeking office or such proposal shall appear  on
    18  the  ballot,  or  (iii)  within  sixty  days before a general or special
    19  election for the office sought by the candidate or thirty days before  a
    20  primary election, includes or references a clearly identified candidate.
    21  An  independent  expenditure shall not include communications where such
    22  candidate, the candidate's political committee or its  agents,  a  party
    23  committee  or  its agents, or a constituted committee or its agents or a
    24  political committee formed to promote the success or defeat of a  ballot
    25  proposal or its agents, did authorize, request, suggest, foster or coop-
    26  erate in such communication.
    27    (b) Independent expenditures do not include expenditures in connection
    28  with:
    29    (i)  a  written  news story, commentary, or editorial or a news story,
    30  commentary, or editorial  distributed  through  the  facilities  of  any
    31  broadcasting  station,  cable  or  satellite  unless such publication or
    32  facilities are owned or controlled by  any  political  party,  political
    33  committee or candidate; or
    34    (ii) a communication that constitutes a candidate debate or forum; or
    35    (iii)  internal communication by members to other members of a member-
    36  ship organization of not more than five hundred members, for the purpose
    37  of supporting or opposing a candidate or candidates for elective office,
    38  provided such expenditures are not used for the costs of campaign  mate-
    39  rial  or  communications used in connection with broadcasting, telecast-
    40  ing, newspapers, magazines, or other periodical publication, billboards,
    41  or similar types of general public communications; or
    42    (iv) internal communications by members to other members of a  member-
    43  ship  organization  of  not  more  than five hundred members or communi-
    44  cations by a corporation organized for charitable purposes  pursuant  to
    45  §501(c)(3)  of  the  internal  revenue  code, within sixty days before a
    46  general or special election for the office sought by  the  candidate  or
    47  thirty  days  before  a  primary election, that includes or references a
    48  clearly identified candidate but does not otherwise qualify as an  inde-
    49  pendent expenditure under this section.
    50    (v)  a  communication  published  on the Internet, unless the communi-
    51  cation is a paid advertisement.
    52    (c) [For purposes of  this  section,  the  term  "person"  shall  mean
    53  person,  group  of persons, corporation, unincorporated business entity,
    54  labor organization or business, trade  or  professional  association  or
    55  organization, or political committee; provided, however, that such defi-

        A. 10742                            3

     1  nition  shall  not include any party or constituted committee,] An inde-
     2  pendent expenditure committee shall not include payments or expenditures
     3  made by a party or  constituted  committee  that  is  required  to  file
     4  disclosure reports under this chapter.
     5    (d)  Independent  expenditures  shall not include payments or expendi-
     6  tures where coordination occurs in the creation, formation, or operation
     7  of the independent expenditure committee making the payment or  expendi-
     8  ture.
     9    Coordination shall include:
    10    (i) The candidate or the candidate's authorized committee, or an agent
    11  of  the  candidate  or candidate's authorized committee, participated in
    12  the creation or formation of the independent expenditure committee with-
    13  in two years of the general election, primary  or  special  election  in
    14  which  the  candidate  is a candidate for nomination or election and the
    15  payment or expenditure made is for the benefit of that candidate.
    16    (ii) The candidate or  an  agent  of  the  candidate  appears  at  any
    17  fundraising event hosted by an independent expenditure committee, or its
    18  agent,  making  a  payment  or  expenditure that benefits that candidate
    19  within two years of the general election, primary or special election in
    20  which the candidate is a candidate for nomination or election.
    21    (iii) The independent expenditure  committee  making  the  payment  or
    22  expenditure,  or  its  agent,  employed or retained an individual, other
    23  than an individual described in subparagraph (viii) of  this  paragraph,
    24  who  was employed by the candidate, the candidate's authorized committee
    25  or an agent of the candidate or has held a policymaking, non-administra-
    26  tive position in the office of the candidate's elected office within two
    27  years of the general election, primary or special election in which  the
    28  candidate  is a candidate for nomination or election, and the payment or
    29  expenditure is made for the benefit of that candidate.
    30    (iv) The independent  expenditure  committee  making  the  payment  or
    31  expenditure,  or  its  agent,  is  a member of the candidate's immediate
    32  family or is established, directed, or managed by a member of the  imme-
    33  diate  family  of  the candidate, and the payment or expenditure is made
    34  for the benefit of that candidate.
    35    (v) The  independent  expenditure  committee  making  the  payment  or
    36  expenditure  benefiting  the  candidate,  republishes,  disseminates, or
    37  distributes, in whole or in part, any video, audio,  written,  or  other
    38  campaign-related  material  prepared by the candidate or the candidate's
    39  authorized committee or by an agent of the candidate or the  candidate's
    40  authorized committee.  This paragraph shall not apply if the independent
    41  expenditure  committee  making  the  payment  or expenditure obtains the
    42  communication or materials from a publicly available source.
    43    (vi) The candidate or the  candidate's  authorized  committee,  or  an
    44  agent  of  the candidate or the candidate's authorized committee, shares
    45  or rents space for a campaign-related purpose with or from the independ-
    46  ent expenditure committee, or its agent, making the payment or  expendi-
    47  ture benefitting the candidate.
    48    (vii)  The independent expenditure committee, or its agent, making the
    49  payment or expenditure benefitting the  candidate  has  participated  in
    50  strategic  discussions  with  the  candidate, the candidate's authorized
    51  committee, or an agent of the candidate or  the  candidate's  authorized
    52  committee  within  two years of the general election, primary or special
    53  election in which  the  candidate  is  a  candidate  for  nomination  or
    54  election.    Discussions  shall be deemed strategic if information about
    55  the candidate's or opponent's electoral  campaign  plans,  projects,  or
    56  activities  that  is  not  obtained  from a publicly available source is

        A. 10742                            4
 
     1  conveyed to the independent expenditure committee, or its agent,  making
     2  the   payment  or  expenditure.  This  paragraph  shall  only  apply  to
     3  discussions occurring after the  independent  expenditure  committee  is
     4  formed  or,  one  week  after  the candidate has been certified for that
     5  election, whichever occurs first.
     6    (viii) The independent expenditure committee, or its agent, making the
     7  payment or expenditure benefitting the candidate, and the  candidate  or
     8  the  candidate's authorized committee knowingly retain the same individ-
     9  ual or entity to provide professional campaign services within two years
    10  of the general election, primary or special election in which the candi-
    11  date is a candidate for nomination or  election,  and  the  professional
    12  campaign services provider discloses strategic information regarding one
    13  party  with the other party. Information shall be deemed strategic if it
    14  relates to either party's respective campaign or independent expenditure
    15  plans, projects, or activities that are not  obtained  from  a  publicly
    16  available  source.   This subparagraph shall not prohibit a candidate, a
    17  candidate's authorized committee, or an agent of the  candidate  or  the
    18  candidate's  authorized  committee  from retaining the same professional
    19  campaign services provider as the independent expenditure committee,  or
    20  its  agent,  making the payment or expenditure benefitting the candidate
    21  upon the professional campaign services provider entering into a  confi-
    22  dentiality  agreement  with  both parties expressly stating that it will
    23  not disclose strategic information regarding each party with  the  other
    24  party.
    25    (ix)  The  independent expenditure committee, or its agent, making the
    26  payment or expenditure benefitting  the  candidate,  utilizes  strategic
    27  information or data related to the candidate, that is not from a public-
    28  ly available source and is not otherwise available by subscription, from
    29  an  individual  who  has  been  previously  compensated,  reimbursed  or
    30  retained by the candidate as a consultant, political, media or fundrais-
    31  ing advisor, vendor or  contractor  within  two  years  of  the  general
    32  election, primary or special election in which the candidate is a candi-
    33  date for nomination or election.
    34    (e) The following shall not be coordination:
    35    (i) A candidate's or a party or constituted committee's response to an
    36  inquiry about that candidate's or party or constituted committee's posi-
    37  tions on legislative or policy issues.
    38    (ii) A public communication in which a candidate is clearly identified
    39  only  in his or her capacity as the owner or operator of a business that
    40  existed prior to the candidacy is not a coordinated  communication  with
    41  respect  to the clearly identified candidate if: (A) The medium, timing,
    42  content, and geographic distribution of  the  public  communication  are
    43  consistent  with  public communications made prior to the candidacy; and
    44  (B) The public communication  does  not  promote,  support,  attack,  or
    45  oppose  that  candidate or another candidate in their capacity as candi-
    46  dates who seeks the same office as that candidate.
    47    (f) For purposes of this section, the term  "immediate  family"  means
    48  spouse,  child,  parent,  grandparent, brother, half-brother, sister, or
    49  half-sister of the candidate, and the spouses of such persons.
    50    (g) For purposes of this section, "agent" means a person authorized by
    51  the candidate or the  candidate's  authorized  committee,  who  acts  on
    52  behalf  of or at the direction of a candidate or the candidate's author-
    53  ized committee; or a party committee or constituted committee acting  on
    54  behalf of a candidate; or a person authorized by an independent expendi-
    55  ture committee who acts on behalf of or at the direction of such commit-
    56  tee.

        A. 10742                            5
 
     1    §  2. Subdivision 2 of section 14-107 of the election law, as added by
     2  section 4 of subpart C of part H of chapter 55 of the laws of  2014,  is
     3  amended to read as follows:
     4    2.  Whenever  any  person  makes an independent expenditure that costs
     5  [more than] one thousand dollars or more in the aggregate, such communi-
     6  cation shall clearly state the name of  the  person  who  paid  for,  or
     7  otherwise  published  or  distributed  the communication and state, with
     8  respect to communications regarding candidates, that  the  communication
     9  was  not  expressly  authorized or requested by any candidate, or by any
    10  candidate's political committee or any of its agents.
    11    § 3. Subdivision 3 of section 14-107 of the election law, as added  by
    12  section  4  of subpart C of part H of chapter 55 of the laws of 2014, is
    13  amended to read as follows:
    14    3. [(a)] Any person prior to making any independent expenditure  shall
    15  first  register with the state board of elections as a political commit-
    16  tee and as an independent expenditure committee in conformance with this
    17  article. Such  person  shall  comply  with  all  disclosure  obligations
    18  required for political committees by law[.
    19    (b)  Any  person  who has registered with the state board of elections
    20  pursuant to paragraph (a) of this  subdivision  shall  disclose  to  the
    21  state  board  of  elections  electronically,  once  a week on Friday any
    22  contribution to such person over one thousand dollars or expenditures by
    23  such person over five thousand dollars made prior to thirty days  before
    24  any primary, general, or special election.
    25    (c)  Any  person  who has registered with the state board of elections
    26  pursuant to paragraph (a) of this  subdivision  shall  disclose  to  the
    27  state  board  of  elections  electronically, within twenty-four hours of
    28  receipt, any contribution to such person over one  thousand  dollars  or
    29  expenditure by such person over five thousand dollars made within thirty
    30  days before any primary, general, or special election.
    31    (d) A knowing and willful violation of the provisions of this subdivi-
    32  sion  shall subject the person to a civil penalty equal to five thousand
    33  dollars or the cost of the communication, whichever  is  greater,  in  a
    34  special  proceeding  or  civil  action  brought  by the board or imposed
    35  directly by the board of elections.] and  shall  provide  the  following
    36  additional information upon registration:
    37    (a)  Where the person making the statement is an individual, the name,
    38  address, occupation and employer of the person.
    39    (b) Where the person making the statement is an entity, the  name  and
    40  employer  of  any individual who exerts operational or managerial influ-
    41  ence or control over the entity, as well as any salaried employee of the
    42  entity. The disclosures required by this  paragraph  shall  include  the
    43  name of at least one natural person.
    44    (c)  Identification  of individuals named in paragraphs (a) and (b) of
    45  this subdivision who have, during the two-year period before the  state-
    46  ment  is  filed,  been  employed  or  retained as a political, media, or
    47  fundraising adviser or consultant for a candidate, any  entity  directly
    48  controlled by a candidate, or any party committee or constituted commit-
    49  tee,  or  have  held  a  formal  position in the office of a candidate's
    50  elected office, or any party committee or constituted committee, and the
    51  name of the relevant employer.
    52    (d) Identification of individuals named in paragraphs (a), (b) and (c)
    53  of this paragraph who are members of a candidate's immediate family.
    54    (e) The information provided pursuant to  this  subdivision  shall  be
    55  updated  within  twenty-four hours of any change in ownership or control
    56  of any registered entity.

        A. 10742                            6
 
     1    § 4. Subdivision 4 of section 14-107 of the election law, as added  by
     2  section  4  of subpart C of part H of chapter 55 of the laws of 2014, is
     3  amended to read as follows:
     4    4. (a) Required disclosures. (i) Any independent expenditure committee
     5  who  has  registered pursuant to subdivision three of this section shall
     6  disclose to the state board of elections electronically, once a week  on
     7  Monday  any  contribution  to  such committee of one thousand dollars or
     8  more or expenditures by such person  over  five  thousand  dollars  made
     9  during the reporting period.
    10    (ii) Any independent expenditure committee who has registered with the
    11  state  board  of elections pursuant to subdivision three of this section
    12  shall disclose to the state board of  elections  electronically,  within
    13  twenty-four  hours  of  receipt,  any  contribution  to such independent
    14  expenditure committee of one thousand dollars or more made within thirty
    15  days before any primary, general, or special election.
    16    (b) The disclosures required by [subdivision three] paragraph  (a)  of
    17  this  [section]  subdivision  shall  include,  in  addition to any other
    18  information required by law:
    19    [(a)] (i) the name, address, occupation and  employer  of  the  person
    20  making the statement;
    21    [(b)  the  name, address, occupation and employer of the person making
    22  the independent expenditure;
    23    (c) the name, address, occupation and employer of any person providing
    24  a contribution, gift, loan, advance or deposit of one  thousand  dollars
    25  or  more  for  the independent expenditure, or the provision of services
    26  for the same, and the date it was given;
    27    (d)] (ii) For each expenditure or payment made:  (1) the dollar amount
    28  paid for each independent expenditure,  the  name  and  address  of  the
    29  person  or  entity  receiving the payment, the date the payment was made
    30  and a description of the independent expenditure; [and
    31    (e)] (2) the election to which the  independent  expenditure  pertains
    32  and  the name of the clearly identified candidate or the ballot proposal
    33  referenced and whether the candidate or ballot proposal is supported  or
    34  opposed; and
    35    (3)  A  list  of all expenditures made by and liabilities incurred for
    36  services rendered during the relevant reporting period.
    37    (iii) For each contribution received the name, address, occupation and
    38  employer of any person providing a contribution, gift, loan, advance  or
    39  deposit of one thousand dollars or more for the independent expenditure,
    40  or the provision of services for the same and the date it was given.
    41    §  5.  Section  14-107  of the election law is amended by adding a new
    42  subdivision 8 to read as follows:
    43    8. (a) All criminal liability related to this  section  shall  require
    44  knowing and willful violations in accordance with section 14-126 of this
    45  article.
    46    (b)  A knowing and willful violation of the provisions of subdivisions
    47  three and four of this section shall  subject  the  person  to  a  civil
    48  penalty equal to five thousand dollars or the cost of the communication,
    49  whichever is greater, in a special proceeding or civil action brought by
    50  the board.
    51    §  6. The opening paragraph of paragraph 3 of subdivision 9 of section
    52  14-100 of the election law, as amended by chapter  70  of  the  laws  of
    53  1983, is amended to read as follows:
    54    any  payment,  by  any  person  other  than a candidate or a political
    55  committee authorized by the candidate, made in connection with the nomi-
    56  nation for election or election of any candidate, including any  payment

        A. 10742                            7
 
     1  or  expenditure  where  coordination  has occurred as defined in section
     2  14-107 of this article, or any payment made to promote  the  success  or
     3  defeat  of  a  political  party  or principle, or of any ballot proposal
     4  including  but  not limited to compensation for the personal services of
     5  any individual which are  rendered  in  connection  with  a  candidate's
     6  election  or  nomination  without charge; provided however, that none of
     7  the foregoing shall be deemed a contribution if it  is  made,  taken  or
     8  performed  by  a  candidate  or his spouse or by a person or a political
     9  committee independent of the candidate or his agents or authorized poli-
    10  tical committees. For purposes of this article, the term "independent of
    11  the candidate or his agents or authorized  political  committees"  shall
    12  mean that the candidate or his agents or authorized political committees
    13  did  not  authorize,  request,  suggest, foster or cooperate in any such
    14  activity; and provided further, that the  term  contribution  shall  not
    15  include:
    16    §  7.  Section 14-100 of the election law is amended by adding two new
    17  subdivisions 15 and 16 to read as follows:
    18    15. "independent expenditure committee" means a  political  committee,
    19  that makes only independent expenditures as defined in this article, and
    20  does  not coordinate with a candidate, candidate's authorized committees
    21  or an agent of the candidate as defined in paragraph (g) of  subdivision
    22  one of section 14-107 of this article.
    23    For purposes of this section, an independent expenditure committee may
    24  be  created  by  a person, group of persons, corporation, unincorporated
    25  business entity, labor organization or business, trade  or  professional
    26  association, or organization, or political committee.
    27    16.  "political  action  committee"  means a political committee which
    28  makes no expenditures to aid or take part in the election or defeat of a
    29  candidate, or to promote the success or defeat  of  a  ballot  proposal,
    30  other  than  in  the  form  of contributions, including in-kind contrib-
    31  utions, to candidates, candidate's authorized committees, party  commit-
    32  tees,  constituted  committees,  or  independent  expenditure committees
    33  provided there is no common operational control  between  the  political
    34  action  committee  and  the independent expenditure committee; or in the
    35  form of communications that are not  distributed  to  a  general  public
    36  audience as described in subdivision thirteen of this section.
    37    For  purposes  of  this  paragraph, "common operational control" means
    38  that (i) the same individual or individuals exercise actual and  strate-
    39  gic  control  over  the  day-to-day affairs of both the political action
    40  committee and the independent expenditure committee, or  (ii)  employees
    41  of  the  political  action  committee  and  the  independent expenditure
    42  committee engage in communications related to the  strategic  operations
    43  of either committee.
    44    §  8. Section 14-112 of the election law, as amended by chapter 930 of
    45  the laws of 1981, is amended to read as follows:
    46    § 14-112. Political committee authorization statement.  Any  political
    47  committee  aiding  or  taking  part in the election or nomination of any
    48  candidate, other than  [by  making  contributions]  a  political  action
    49  committee,  shall  file,  in  the office in which the statements of such
    50  committee are to be filed pursuant to this article, either a sworn veri-
    51  fied statement by the treasurer of such committee that the candidate has
    52  authorized the political committee to aid or take part in  his  election
    53  or  that  the  candidate has not authorized the committee to aid or take
    54  part in his election.
    55    § 9. Subdivision 1 of section 14-118 of the election law,  as  amended
    56  by chapter 156 of the laws of 2010, is amended to read as follows:

        A. 10742                            8
 
     1    1.  Every political committee shall have a treasurer and a depository,
     2  and shall cause the treasurer to keep detailed, bound  accounts  of  all
     3  receipts, transfers, loans, liabilities, contributions and expenditures,
     4  made  by  the committee or any of its officers, members or agents acting
     5  under  its  authority  or  in  its  behalf.  All  such accounts shall be
     6  retained by a treasurer for a period of five years from the date of  the
     7  filing  of  the  final  statement  with respect to the election, primary
     8  election or convention to which they  pertain.  No  officer,  member  or
     9  agent  of any political committee shall receive any receipt, transfer or
    10  contribution, or make any expenditure or incur any liability  until  the
    11  committee  shall  have chosen a treasurer and depository and filed their
    12  names in accordance with this subdivision. There shall be filed  in  the
    13  office  in  which the committee is required to file its statements under
    14  section 14-110 of this article, within five days after the choice  of  a
    15  treasurer and depository, a statement giving the name and address of the
    16  treasurer  chosen, the name and address of any person authorized to sign
    17  checks by such treasurer, the name and address of the depository  chosen
    18  and  the  candidate  or  candidates  or ballot proposal or proposals the
    19  success or defeat of which  the  committee  is  to  aid  or  take  part;
    20  provided,  however,  that  such  statement  shall  not  be required of a
    21  constituted committee and  provided  further  that  a  political  action
    22  committee  which  makes  no  expenditures,  to  aid  or take part in the
    23  election or defeat of a candidate, other than in the  form  of  contrib-
    24  utions,  shall not be required to list the candidates being supported or
    25  opposed by such committee and shall also disclose the name and  employer
    26  for  any  individual  who  exerts operational control over the political
    27  action committee as well as  any  salaried  employee  of  the  political
    28  action  committee.  Such  statement shall be signed by the treasurer and
    29  all other persons authorized to sign checks. Any change in the  informa-
    30  tion  required  in any statement shall be reported, in an amended state-
    31  ment filed in the same manner and in the  same  office  as  an  original
    32  statement  filed  under  this  section, within two days after it occurs,
    33  except that any change to the mailing  address  on  any  such  statement
    34  filed  at the state board may also be made in any manner deemed accepta-
    35  ble by the state board. Only a banking  organization  authorized  to  do
    36  business in this state may be designated a depository hereunder.
    37    §  10. The election law is amended by adding a new section 14-107-a to
    38  read as follows:
    39    § 14-107-a. Prohibited spending by independent expenditure  committees
    40  and political action committees. 1. An independent expenditure committee
    41  shall  not contribute to any candidate, constituted committee, political
    42  committee, or party committee.
    43    2. (a) A political action committee shall  not  make  any  independent
    44  expenditures and may only make contributions to any independent expendi-
    45  ture  committee  if  such  committee  does  not  have common operational
    46  control. For purposes of this paragraph,  "common  operational  control"
    47  means  that  (i)  the same individual or individuals exercise actual and
    48  strategic control over the day-to-day  affairs  of  both  the  political
    49  action  committee  and  the  independent  expenditure committee, or (ii)
    50  employees of the political action committee and the independent expendi-
    51  ture committee engage in communications related to the  strategic  oper-
    52  ations of either committee.
    53    (b)  No  candidate, candidate's authorized committee, party committee,
    54  or constituted committee shall contribute to an independent  expenditure
    55  committee  that  is making expenditures benefitting the candidate or the
    56  candidate supported by such party or constituted committee.

        A. 10742                            9
 
     1    § 11. Section 14-126 of the election law is amended by  adding  a  new
     2  subdivision 3-a to read as follows:
     3    3-a. Any person who, acting as or on behalf of an independent expendi-
     4  ture  committee or a political action committee, knowingly and willfully
     5  violates the provisions of section 14-107-a of  this  article  shall  be
     6  subject to a civil penalty, up to one thousand dollars or up to the cost
     7  of  the  communication,  whichever  is  greater,  to be recoverable in a
     8  special proceeding or civil action to be brought by the state  board  of
     9  elections.
    10    §  12.  Severability. If any clause, sentence, subdivision, paragraph,
    11  section or part of this act be adjudged by any court of competent juris-
    12  diction to be invalid, such judgment shall not affect, impair or invali-
    13  date the remainder thereof, but shall be confined in  its  operation  to
    14  the  clause,  sentence,  subdivision, paragraph, section or part thereof
    15  directly involved in the controversy in which such judgment  shall  have
    16  been rendered.
    17    §  13.  This act shall take effect on the thirtieth day after it shall
    18  have become a law.
 
    19                                   PART B
 
    20    Section 1. Subdivision 3 of section 14-124 of  the  election  law,  as
    21  amended  by  chapter  71  of  the  laws  of  1988, is amended to read as
    22  follows:
    23    3. The contribution and receipt limits of this article shall not apply
    24  to monies received and expenditures made by a party committee or consti-
    25  tuted committee to maintain a permanent headquarters and staff and carry
    26  on ordinary activities which are not for the express purpose of  promot-
    27  ing  the  candidacy  of  specific  candidates; provided that such monies
    28  described in  this  subdivision  shall  be  deposited  in  a  segregated
    29  account.
    30    § 2. This act shall take effect immediately.
 
    31                                   PART C
 
    32    Section  1.  Subdivision  1  of section 14-104 of the election law, as
    33  amended by chapter 430 of the laws  of  1997,  is  amended  to  read  as
    34  follows:
    35    1.  Any candidate for election to public office, or for nomination for
    36  public office at a contested primary  election  or  convention,  or  for
    37  election  to  a  party position at a primary election, shall file state-
    38  ments sworn, or subscribed and bearing a form notice that  false  state-
    39  ments  made  therein are punishable as a class A misdemeanor pursuant to
    40  section 210.45 of the penal law, at the times prescribed by this article
    41  setting forth the particulars specified by section 14-102 of this  arti-
    42  cle, as to all moneys or other valuable things, paid, given, expended or
    43  promised  by him or her to aid his or her own nomination or election, or
    44  to promote the success or defeat of a political  party,  or  to  aid  or
    45  influence  the  nomination or election or the defeat of any other candi-
    46  date to be voted for at the election or primary election or at a conven-
    47  tion, including contributions to political committees, officers, members
    48  or agents thereof, and transfers, receipts and contributions to  him  or
    49  her to be used for any of the purposes above specified, or in lieu ther-
    50  eof,  any  such  candidate  may file such a sworn statement at the first
    51  filing period, on a form prescribed by the state board of elections that
    52  such candidate has made no such expenditures and does not intend to make

        A. 10742                           10
 
     1  any such expenditures, except through a political  committee  authorized
     2  by  such  candidate pursuant to this article.  Such candidate may desig-
     3  nate a committee of no less than three persons who shall  be  authorized
     4  to  appoint  and remove the treasurer of any authorized committee of the
     5  candidate.   The designation or revocation of  the  committee  shall  be
     6  evidenced  in  a  writing filed with the state board of elections by the
     7  candidate authorizing the committee.   The  candidate  may  revoke  such
     8  designation  at any time. A committee authorized by such a candidate may
     9  fulfill all of the filing requirements of this act  on  behalf  of  such
    10  candidate.
    11    §  2.  The  election  law is amended by adding a new section 14-132 to
    12  read as follows:
    13    § 14-132. Disposition of campaign funds.   1.  Upon  the  death  of  a
    14  candidate,  former  candidate  or  holder of elective office, where such
    15  candidate or candidate's authorized committee received campaign contrib-
    16  utions, all such funds shall be disposed of  by  any  of  the  following
    17  means, or any combination thereof, within two years of the death of such
    18  person:
    19    (a)  returning,  pro rata, to each contributor the funds that have not
    20  been spent or obligated;
    21    (b) donating the funds to a charitable organization  or  organizations
    22  that meet the qualifications of section 501(c)(3) of the Internal Reven-
    23  ue Code;
    24    (c) donating the funds to the state university of New York or the city
    25  university of New York;
    26    (d) donating the funds to the state's general fund; or
    27    (e)  contributing  or  transferring  the  funds to a candidate, party,
    28  constituted or political committee in  accordance  with  the  applicable
    29  limits, if any, set forth in this article.
    30    2. No such candidate's authorized political committee shall dispose of
    31  campaign  funds  by  making  expenditures for personal use as defined in
    32  section 14-130 of this article.
    33    3. If funds are not disposed of  within  the  time  required  by  this
    34  section,  such funds shall be recoverable by the chief enforcement coun-
    35  sel of the state board of elections in a  special  proceeding  in  state
    36  supreme court in the manner prescribed by section 16-116 of this chapter
    37  and deposited into the state's general fund.
    38    §  3. This act shall take effect July 1, 2017, provided, however, that
    39  where the applicable time frame for disposing of  funds  established  by
    40  section 14-132 of the election law, as added by section two of this act,
    41  has elapsed on such effective date, all funds shall be disposed of with-
    42  in 12 months of such effective date.  INSERT
 
    43                                   PART D
 
    44    Section  1.    Paragraph  4  of  subdivision (c) of section 1-h of the
    45  legislative law, as added by section 1 of part B of chapter 399  of  the
    46  laws of 2011, is amended to read as follows:
    47    (4)  Any lobbyist registered pursuant to section one-e of this article
    48  whose lobbying activity is performed on its own behalf and not  pursuant
    49  to retention by a client:
    50    (i) that has spent over [fifty] fifteen thousand dollars in the aggre-
    51  gate  for  reportable  compensation  and  expenses  for lobbying, either
    52  during the calendar year, or during the twelve-month  period,  prior  to
    53  the date of this bi-monthly report, and

        A. 10742                           11
 
     1    (ii)  at  least  three  percent of whose total expenditures during the
     2  same period were devoted to lobbying in New York  shall  report  to  the
     3  commission the names of each source of funding that has contributed over
     4  [five]  two thousand five hundred dollars from a single source that were
     5  used  to  fund the lobbying activities reported and the [amounts] amount
     6  of each contribution received from each identified  source  of  funding;
     7  provided,  however, that amounts received from each identified source of
     8  funding shall not be required to be disclosed if such amounts constitute
     9  membership dues, fees, or assessments charged by the reporting entity to
    10  enable an individual or entity to be a member of the reporting entity.
    11    This disclosure shall not require disclosure of the sources of funding
    12  whose disclosure, in the determination of the commission  based  upon  a
    13  review  of  the  relevant facts presented by the reporting lobbyist, may
    14  cause harm, threats, harassment, or reprisals to the source or to  indi-
    15  viduals  or  property affiliated with the source. The reporting lobbyist
    16  may appeal the commission's determination and such appeal shall be heard
    17  by a judicial hearing officer who is independent and not affiliated with
    18  or employed by the commission, pursuant to  regulations  promulgated  by
    19  the commission. The reporting lobbyist shall not be required to disclose
    20  the sources of funding that are the subject of such appeal pending final
    21  judgment on appeal.
    22    The disclosure shall not apply to:
    23    (i)  any  corporation  registered  pursuant  to article seven-A of the
    24  executive law that is qualified as an exempt organization by the  United
    25  States  Department  of  the Treasury under I.R.C. § 501(c)(3); provided,
    26  however, that this disclosure shall apply to any  in-kind  donations  of
    27  staff,  staff  time,  personnel,  offices,  office  supplies,  financial
    28  support of any kind or any other resources to any corporation or  entity
    29  that is qualified as an exempt organization by the United States Depart-
    30  ment  of the Treasury under I.R.C. 501(c)(4) when such in-kind donations
    31  are over two thousand five hundred dollars and from any  corporation  or
    32  entity  that is qualified as an exempt organization by the United States
    33  Department of the Treasury under I.R.C.  501(c)(3).   In such  case  the
    34  entity  receiving  such in-kind donations shall disclose the fair market
    35  value and identify the I.R.C. 501(c)(3) entity  providing  such  in-kind
    36  donations  and  give  notice  within  a reasonable time to the 501(c)(3)
    37  entity that it shall be required to file a report with the department of
    38  law pursuant to section one hundred seventy-two-e of the executive law;
    39    (ii) any corporation registered pursuant to  article  seven-A  of  the
    40  executive  law that is qualified as an exempt organization by the United
    41  States Department of the Treasury under I.R.C.  §  501(c)(4)  and  whose
    42  primary  activities concern any area of public concern determined by the
    43  commission to create a substantial likelihood that application  of  this
    44  disclosure  requirement  would  lead  to  harm,  threats, harassment, or
    45  reprisals to a source of funding or to individuals  or  property  affil-
    46  iated  with  such source, including but not limited to the area of civil
    47  rights and civil liberties and any other area of public  concern  deter-
    48  mined  pursuant  to  regulations promulgated by the commission to form a
    49  proper basis for exemption on this basis from this  disclosure  require-
    50  ment; or
    51    (iii) any governmental entity.
    52    The  joint commission on public ethics shall promulgate regulations to
    53  implement these requirements.
    54    § 2. Paragraph 4 of subdivision (c) of section 1-j of the  legislative
    55  law, as added by section 2 of part B of chapter 399 of the laws of 2011,
    56  is amended to read as follows:

        A. 10742                           12
 
     1    (4)  Any  client  of a lobbyist that is required to file a semi-annual
     2  report and:
     3    (i) that has spent over [fifty] fifteen thousand dollars in the aggre-
     4  gate  for  reportable  compensation  and  expenses  for lobbying, either
     5  during the calendar year, or during the twelve-month  period,  prior  to
     6  the date of this semi-annual report, and
     7    (ii)  at  least  three  percent of whose total expenditures during the
     8  same period were devoted to lobbying in New York  shall  report  to  the
     9  commission the names of each source of funding that has contributed over
    10  [five]  two thousand five hundred dollars from a single source that were
    11  used to fund the lobbying activities reported and the  [amounts]  amount
    12  of  each  contribution  received from each identified source of funding;
    13  provided, however, that amounts received from each identified source  of
    14  funding shall not be required to be disclosed if such amounts constitute
    15  membership dues, fees, or assessments charged by the reporting entity to
    16  enable an individual or entity to be a member of the reporting entity.
    17    This disclosure shall not require disclosure of the sources of funding
    18  whose  disclosure,  in  the determination of the commission based upon a
    19  review of the relevant facts presented by the reporting client or lobby-
    20  ist, may cause harm, threats, harassment, or reprisals to the source  or
    21  to  individuals  or  property  affiliated with the source. The reporting
    22  lobbyist may appeal the commission's determination and such appeal shall
    23  be heard by a judicial hearing officer who is independent and not affil-
    24  iated with or  employed  by  the  commission,  pursuant  to  regulations
    25  promulgated  by  the  commission.  The  reporting  lobbyist shall not be
    26  required to disclose the sources of funding that are the subject of such
    27  appeal pending final judgment on appeal.
    28    The disclosure shall not apply to:
    29    (i) any corporation registered pursuant  to  article  seven-A  of  the
    30  executive  law that is qualified as an exempt organization by the United
    31  States Department of the Treasury under I.R.C.  §  501(c)(3);  provided,
    32  however,  that  this  disclosure shall apply to any in-kind donations of
    33  staff,  staff  time,  personnel,  offices,  office  supplies,  financial
    34  support  of any kind or any other resources to any corporation or entity
    35  that is qualified as an exempt organization by the United States Depart-
    36  ment of the Treasury under I.R.C. 501(c)(4) when such in-kind  donations
    37  are  over  two thousand five hundred dollars and from any corporation or
    38  entity that is qualified as an exempt organization by the United  States
    39  Department  of  the  Treasury under I.R.C.  501(c)(3).  In such case the
    40  entity receiving such in-kind donations shall disclose the  fair  market
    41  value  and  identify  the I.R.C. 501(c)(3) entity providing such in-kind
    42  donations and give notice within a  reasonable  time  to  the  501(c)(3)
    43  entity that it shall be required to file a report with the department of
    44  law pursuant to section one hundred seventy-two-e of the executive law;
    45    (ii)  any  corporation  registered  pursuant to article seven-A of the
    46  executive law that is qualified as an exempt organization by the  United
    47  States  Department  of  the  Treasury under I.R.C. § 501(c)(4) and whose
    48  primary activities concern any area of public concern determined by  the
    49  commission  to  create a substantial likelihood that application of this
    50  disclosure requirement would  lead  to  harm,  threats,  harassment,  or
    51  reprisals  to  a  source of funding or to individuals or property affil-
    52  iated with such source, including but not limited to the area  of  civil
    53  rights  and  civil liberties and any other area of public concern deter-
    54  mined pursuant to regulations promulgated by the commission  to  form  a
    55  proper  basis  for exemption on this basis from this disclosure require-
    56  ment; or

        A. 10742                           13
 
     1    (iii) any governmental entity.
     2    The  joint commission on public ethics shall promulgate regulations to
     3  implement these requirements.
     4    § 3. This act shall take effect on the thirtieth day  after  it  shall
     5  have become a law.
 
     6                                   PART E
 
     7    Section  1.  Subdivision (b) of section 1-k of the legislative law, as
     8  amended by chapter 1 of the laws of 2005, is amended to read as follows:
     9    (b) No person shall accept such a retainer or employment. [A violation
    10  of] Any person who violates this section shall be  subject  to  a  civil
    11  penalty  not  to exceed the greater of ten thousand dollars or the value
    12  of the contingent fee, and such violation shall be a class  A  misdemea-
    13  nor.
    14    § 2. This act shall take effect immediately.
 
    15                                   PART F
 
    16    Section  1. The executive law is amended by adding a new section 172-e
    17  to read as follows:
    18    § 172-e. Disclosure of  certain  donations  by  charitable  non-profit
    19  entities. 1.  Definitions. For the purposes of this section:
    20    (a)  "Covered  entity"  shall  mean  any corporation or entity that is
    21  qualified as an exempt organization  or  entity  by  the  United  States
    22  Department  of  the  Treasury under I.R.C. 501(c)(3) that is required to
    23  report to the department of law pursuant to this section.
    24    (b) "In-kind donation" shall mean  donations  of  staff,  staff  time,
    25  personnel,  offices,  office  supplies, financial support of any kind or
    26  any other resources.
    27    (c) "Donation" shall mean any contribution, including  a  gift,  loan,
    28  in-kind donation, advance or deposit of money or anything of value.
    29    (d)  "Recipient  entity"  shall mean any corporation or entity that is
    30  qualified as an exempt organization  or  entity  by  the  United  States
    31  Department  of  the  Treasury under I.R.C. 501(c)(4) that is required to
    32  file a source of funding report with  the  joint  commission  on  public
    33  ethics pursuant to sections one-h and one-j of the legislative law.
    34    (e) "Reporting period" shall mean the six month period within a calen-
    35  dar  year  starting  January  first and ending June thirtieth or the six
    36  month period within a calendar  year  starting  July  first  and  ending
    37  December thirty-first.
    38    2. Funding disclosure reports to be filed by covered entities. (a) Any
    39  covered  entity that makes an in-kind donation in excess of two thousand
    40  five hundred dollars to a recipient entity during a  relevant  reporting
    41  period  shall  file  a  funding disclosure report with the department of
    42  law. The funding disclosure report shall include:
    43    (i) the name and address of the covered entity that made  the  in-kind
    44  donation;
    45    (ii)  the  name  and  address of the recipient entity that received or
    46  benefitted from the in-kind donation;
    47    (iii) the names of any persons who  exert  operational  or  managerial
    48  control  over the covered entity. The disclosures required by this para-
    49  graph shall include the name of at least one natural person;
    50    (iv) the date the in-kind donation was made by the covered entity;

        A. 10742                           14
 
     1    (v) any donation in excess of two thousand five hundred dollars to the
     2  covered entity during the relevant reporting period including the  iden-
     3  tity of the donor of any such donation; and
     4    (vi) the date of any such donation to a covered entity.
     5    (b) The covered entity shall file a funding disclosure report with the
     6  department of law within thirty days of the close of a reporting period.
     7    3.  Public disclosure of funding disclosure reports. The department of
     8  law shall  promulgate  any  regulations  necessary  to  implement  these
     9  requirements  and  shall  forward  the  disclosure  reports to the joint
    10  commission on public ethics for the purpose of publishing  such  reports
    11  on  the  commission's  website,  within thirty days of the close of each
    12  reporting period; provided however that the attorney general, or his  or
    13  her  designee, may determine that disclosure of donations to the covered
    14  entity shall not be made public if, based upon a review of the  relevant
    15  facts  presented  by the covered entity, such disclosure may cause harm,
    16  threats, harassment, or reprisals to the source of the  donation  or  to
    17  individuals  or property affiliated with the source of the donation. The
    18  covered entity may appeal the attorney general's determination and  such
    19  appeal  shall  be heard by a judicial hearing officer who is independent
    20  and not affiliated with or employed by the department of  law,  pursuant
    21  to  regulations  promulgated by the department of law. The covered enti-
    22  ty's sources of donations that are the subject of such appeal shall  not
    23  be made public pending final judgment on appeal.
    24    §  2.  This  act shall take effect on the ninetieth day after it shall
    25  have become a law.
 
    26                                   PART G
 
    27    Section 1. The executive law is amended by adding a new section  172-f
    28  to read as follows:
    29    § 172-f. Disclosure of certain activities by non-charitable non-profit
    30  entities.    1. Definitions.  (a) "Covered Entity" means any corporation
    31  or entity that is qualified as an exempt organization or entity  by  the
    32  United States Department of the Treasury under I.R.C.  501(c)(4).
    33    (b)  "Covered  communication"  means  a  communication,  that does not
    34  require a report pursuant to article one-A of  the  legislative  law  or
    35  article  fourteen  of  the election law, by a covered entity conveyed to
    36  five hundred or more members of a general public audience  in  the  form
    37  of:  (i)  an audio or video communication via broadcast, cable or satel-
    38  lite; (ii) a written communication via advertisements, pamphlets, circu-
    39  lars, flyers, brochures, letterheads; or (iii) other published statement
    40  which: refers to and advocates  for  or  against  a  clearly  identified
    41  elected  official or the position of any elected official or administra-
    42  tive or legislative  body  relating  to  the  outcome  of  any  vote  or
    43  substance  of  any  legislation,  potential  legislation, pending legis-
    44  lation, rule, regulation, hearing, or decision by any legislative, exec-
    45  utive or administrative body.
    46    Covered communication shall not include:  (i)  communications  with  a
    47  professional  journalist  or newscaster, including an editorial board or
    48  editorial writer of a newspaper, magazine, news  agency,  press  associ-
    49  ation  or  wire service, relating to news, as these terms are defined in
    50  section seventy-nine-h of  the  civil  rights  law,  and  communications
    51  relating  to  confidential  and  non-confidential  news  as described in
    52  subdivisions (b) and (c) of section seventy-nine-h of the  civil  rights
    53  law  respectively and communications made pursuant to community outreach
    54  efforts for broadcast stations required by federal law; or

        A. 10742                           15

     1    (ii) a communication that is: (A) directed, sent or distributed by the
     2  covered entity only to  individuals  who  affirmatively  consent  to  be
     3  members  of  the covered entity, contribute funds to the covered entity,
     4  or, pursuant to the covered entity's articles or bylaws, have the  right
     5  to  vote  directly  or indirectly for the election of directors or offi-
     6  cers, or on changes to bylaws, disposition of all or  substantially  all
     7  of  the  covered  entity's  assets  or  the merger or dissolution of the
     8  covered entity; or (B) for the  purpose  of  promoting  or  staging  any
     9  candidate  debate,  town  hall  or  similar  forum to which at least two
    10  candidates seeking the same office, or two proponents of differing posi-
    11  tions on a referendum or question submitted to voters,  are  invited  as
    12  participants,  and  which  does  not promote or advance one candidate or
    13  position over another.
    14    (c) "Expenditures for covered  communications"  shall  mean:  (i)  any
    15  expenditure  made,  liability  incurred,  or  contribution  provided for
    16  covered communications; or (ii) any other  transfer  of  funds,  assets,
    17  services  or  any other thing of value to any individual, group, associ-
    18  ation, corporation whether organized for profit or not-for-profit, labor
    19  union, political committee, political action  committee,  or  any  other
    20  entity  for  the  purpose  of supporting or engaging in covered communi-
    21  cations by the recipient or a third party.
    22    (d) "Donation" shall mean any contribution, including  in-kind,  gift,
    23  loan, advance or deposit of money or anything of value made to a covered
    24  entity  unless  such  donation is deposited into an account the funds of
    25  which are not used for making expenditures for covered communications.
    26    (e) "Reporting period" shall mean the six month period within a calen-
    27  dar year starting January first and ending June  thirtieth  or  the  six
    28  month  period  within  a  calendar  year  starting July first and ending
    29  December thirty-first.
    30    2. Disclosure of expenditures for covered  communications.    (a)  Any
    31  covered  entity that makes expenditures for covered communications in an
    32  aggregate amount or fair market value exceeding ten thousand dollars  in
    33  a  calendar  year  shall  file  a  financial  disclosure report with the
    34  department of law. The financial disclosure report shall include:
    35    (i) the name and address of the covered entity that made the  expendi-
    36  ture for covered communications;
    37    (ii)  the  name  or  names of any individuals who exert operational or
    38  managerial control over the covered entity. The disclosures required  by
    39  this paragraph shall include the name of at least one natural person;
    40    (iii) a description of the covered communication;
    41    (iv)  the  dollar amount paid for each covered communication, the name
    42  and address of the person or entity receiving the payment, and the  date
    43  the payment was made; and
    44    (iv) the name and address of any individual, corporation, association,
    45  or  group  that  made  a donation of one thousand dollars or more to the
    46  covered entity and the date of such donation.
    47    (b) The covered entity shall file a financial disclosure  report  with
    48  the  department  of  law  within thirty days of the close of a reporting
    49  period.
    50    (c) If a covered entity keeps one or  more  segregated  bank  accounts
    51  containing funds used solely for covered communications and makes all of
    52  its  expenditures  for  covered  communications from such accounts, then
    53  with respect to donations included in subparagraph (iv) of paragraph (a)
    54  of this subdivision, the financial report need  only  include  donations
    55  deposited into such accounts.

        A. 10742                           16
 
     1    3.  The  department of law shall make the financial disclosure reports
     2  available to the public on the department of law website  within  thirty
     3  days  of  the  close of each reporting period, provided however that the
     4  attorney general, or his or her designee, may determine that  disclosure
     5  of  donations  shall  not  be made public if, based upon a review of the
     6  relevant facts presented by the  covered  entity,  such  disclosure  may
     7  cause  harm,  threats,  harassment,  or  reprisals  to the source of the
     8  donation or to individuals or property affiliated with the source of the
     9  donation. The covered entity may appeal the attorney general's  determi-
    10  nation  and such appeal shall be heard by a judicial hearing officer who
    11  is independent and not affiliated with or employed by the department  of
    12  law,  pursuant  to regulations promulgated by the department of law. The
    13  covered entity  shall  not  be  required  to  disclose  the  sources  of
    14  donations  that are the subject of such appeal pending final judgment on
    15  appeal.
    16    § 2. This act shall take effect on the thirtieth day  after  it  shall
    17  have become a law.
 
    18                                   PART H
 
    19    Section 1. The executive law is amended by adding a new section 109 to
    20  read as follows:
    21    §  109. Registration of certain service providers.  1. For purposes of
    22  this section:
    23    (a) "Client" shall mean a person or entity who in the preceding calen-
    24  dar year retained or hired the political consultant relating to  matters
    25  before  any  state  or  local  government agency, authority or official,
    26  including services, advice or consultation  relating  to  any  state  or
    27  local  government  contract  for  real  property,  goods or services, an
    28  appearance in a ratemaking proceeding, an  appearance  in  a  regulatory
    29  matter,  or  an  appearance  in  a legislative matter other than matters
    30  described in subparagraph (E) of the second  undesignated  paragraph  of
    31  subdivision (c) of section one-c of the legislative law.
    32    (b)  "Political consulting services" shall mean services provided by a
    33  political consultant to or on behalf of an elected  public  official  in
    34  New  York  state or to or on behalf of a candidate for elected office in
    35  New York state, or to or on behalf of a  person  nominated  for  elected
    36  public  office which services: (1) assist or are intended to assist in a
    37  campaign for nomination for election or election to office in  New  York
    38  state, including fundraising activities, voter outreach, composition and
    39  distribution of promotional literature, advertisements, or other similar
    40  communications,  as  set forth in section 14-106 of the election law, or
    41  (2) consist of political advice to an elected public official or  candi-
    42  date for elected public office in New York state or person nominated for
    43  elected  public  office;  provided,  however,  that political consulting
    44  services shall not include bona fide  legal  work  directly  related  to
    45  litigation  or  legal  advice  with  regard  to  securing a place on the
    46  ballot, the petitioning process, the conduct of an  election,  or  which
    47  involves the election law.
    48    (c)  "Political  consultant"  shall mean a person who holds himself or
    49  herself out to persons in this state as a person who performs  political
    50  consulting  services  in  a  professional  capacity  and  who is usually
    51  compensated, excluding reimbursement for expenses, for such services.
    52    2. The secretary of  state  shall  promulgate  rules  and  regulations
    53  prescribing  a  registration form to be used by any political consultant
    54  who provides political consulting services to a sitting  elected  public

        A. 10742                           17
 
     1  official,  candidate  for  elected public office or person nominated for
     2  elected public office and who has also been retained  by  a  client  for
     3  such services.
     4    3. Such registration form shall identify:
     5    (a)  the name, address, and telephone number of the political consult-
     6  ant;
     7    (b) the name, address, and telephone number of  each  sitting  elected
     8  public  official,  candidate for elected public office, and person nomi-
     9  nated for elected public office who the  political  consultant  provided
    10  political consulting services to;
    11    (c) the name, address, and telephone number of each client who retains
    12  or hires a political consultant in the preceding calendar year provided,
    13  that  in  the event the client is an entity, at least one natural person
    14  who has a controlling interest in such entity shall be identified; and
    15    (d) a brief description of the  nature  of  the  political  consulting
    16  services provided to each identified client.
    17    4.  Such  registration shall be filed with the department of state and
    18  shall cover a six month reporting period.  The  reporting  period  shall
    19  mean  the six month period within a calendar year starting January first
    20  and ending June thirtieth or the six month period within a calendar year
    21  starting July first and ending December thirty-first.
    22    5. The secretary of state  shall  post  the  completed  forms  on  the
    23  department  of  state's  website within thirty days of the close of each
    24  reporting period.
    25    6. The department of state may impose a civil penalty of up  to  seven
    26  hundred  fifty dollars upon any political consultant who fails to file a
    27  registration required by this section provided, however, that the secre-
    28  tary shall provide such political consultant a reasonable opportunity to
    29  cure such a failure.
    30    7. The department of state shall adopt, amend and  rescind  rules  and
    31  regulations  defining  the  degree  and  extent  of political consulting
    32  services necessary to require the reporting pursuant to this section.
    33    § 2. This act shall take effect on the sixtieth  day  after  it  shall
    34  have become a law.
 
    35                                   PART I
 
    36    Section  1.  Subparagraph  (B) of the second undesignated paragraph of
    37  subdivision (c) of section 1-c of the legislative law, as added by chap-
    38  ter 1 of the laws of 2005, is amended to read as follows:
    39    (B) (i) Newspapers and other  periodicals  and  radio  and  television
    40  stations,  and  owners and employees thereof, provided that their activ-
    41  ities in connection with proposed  legislation,  rules,  regulations  or
    42  rates,  municipal  ordinances and resolutions, executive orders, tribal-
    43  state compacts, memoranda of understanding or other tribal-state  agree-
    44  ments  related  to  Class III gaming as provided in 25 U.S.C. § 2701, or
    45  procurement contracts by a state agency, municipal agency, local  legis-
    46  lative  body,  the  state  legislature, or the unified court system, are
    47  limited to the publication or broadcast of  news  items,  editorials  or
    48  other comments, or paid advertisements;
    49    (ii)  Communications  with  a  professional journalist, or newscaster,
    50  including an editorial board or editorial writer of a  newspaper,  maga-
    51  zine,  news agency, press association or wire service, relating to news,
    52  as these terms are defined in section seventy-nine-h of the civil rights
    53  law, and communications relating to  confidential  and  non-confidential
    54  news  as described in subdivisions (b) and (c) of section seventy-nine-h

        A. 10742                           18
 
     1  of the civil rights law respectively and communications made pursuant to
     2  community outreach efforts for broadcast stations  required  by  federal
     3  law.
     4    § 2. This act shall take effect immediately.
 
     5                                   PART J
 
     6    Section 1. Paragraph (a) of subdivision 13 of section 94 of the execu-
     7  tive  law,  as amended by section 6 of part A of chapter 399 of the laws
     8  of 2011, is amended to read as follows:
     9    (a) Investigations. If  the  commission  receives  a  sworn  complaint
    10  alleging  a  violation  of  section  seventy-three,  seventy-three-a, or
    11  seventy-four of the public officers law, section one  hundred  seven  of
    12  the  civil  service  law  or  article  one-A of the legislative law by a
    13  person or entity subject to the jurisdiction of the commission including
    14  members of the legislature and legislative employees and candidates  for
    15  member  of  the  legislature,  or  if a reporting individual has filed a
    16  statement which reveals a possible violation of these provisions, or  if
    17  the  commission determines on its own initiative to investigate a possi-
    18  ble violation, the commission shall notify the  individual  in  writing,
    19  describe  the  possible  or  alleged  violation  of such laws, provide a
    20  description of the allegations against him or her and the  evidence,  if
    21  any,  supporting  such  allegations,  provided  however  that  the joint
    22  commission shall redact any information that might, in the  judgment  of
    23  the commission, be prejudicial to either the complainant or the investi-
    24  gation;  the  letter also shall set forth the sections of law alleged to
    25  have been violated and provide the person with a fifteen day  period  in
    26  which  to submit a written response, including any evidence, statements,
    27  and proposed witnesses, setting forth information relating to the activ-
    28  ities cited as a possible or alleged violation of  law.  The  commission
    29  shall,  within  [forty-five]  sixty calendar days after a complaint or a
    30  referral is received or an investigation is  initiated  on  the  commis-
    31  sion's  own initiative, vote on whether to commence a full investigation
    32  of the matter under consideration to  determine  whether  a  substantial
    33  basis exists to conclude that a violation of law has occurred. The staff
    34  of  the joint commission shall provide to the members prior to such vote
    35  information regarding the likely scope and content of the investigation,
    36  and a subpoena plan, to the extent such information is  available.  Such
    37  investigation  shall  be  conducted  if  at  least  eight members of the
    38  commission vote to authorize it. Where the subject of such investigation
    39  is a member of the legislature or a legislative employee or a  candidate
    40  for member of the legislature, at least two of the eight or more members
    41  who  so vote to authorize such an investigation must have been appointed
    42  by a legislative leader or leaders from the  major  political  party  in
    43  which  the  subject  of  the  proposed investigation is enrolled if such
    44  person is enrolled in a major political party. Where the subject of such
    45  investigation is a state officer or state employee, at least two of  the
    46  eight  or  more  members  who so vote to authorize such an investigation
    47  must have been appointed by the governor and lieutenant governor.  Where
    48  the  subject  of such investigation is a statewide elected official or a
    49  direct appointee of such an official, at least two of the eight or  more
    50  members  who  so  vote to authorize such an investigation must have been
    51  appointed by the governor and lieutenant governor and be enrolled in the
    52  major political party in which the subject of the proposed investigation
    53  is enrolled, if such person is enrolled in a major political party.

        A. 10742                           19
 
     1    § 2. Paragraph (b) of subdivision 13 of section 94  of  the  executive
     2  law,  as  amended  by  section 6 of part A of chapter 399 of the laws of
     3  2011, is amended to read as follows:
     4    (b)  Substantial basis investigation. Upon the affirmative vote of not
     5  less than eight commission  members  to  commence  a  substantial  basis
     6  investigation,  written  notice  of  the  commission's decision shall be
     7  provided to the individual who is the subject of such substantial  basis
     8  investigation.  Such  written notice shall include a copy of the commis-
     9  sion's rules and procedures and shall also include notification of  such
    10  individual's  right  to be heard within thirty calendar days of the date
    11  of the commission's written notice.  If the commission votes to commence
    12  a substantial basis investigation, the commission shall provide  to  the
    13  individual  a notice setting forth the alleged violations of law and the
    14  factual basis for those allegations.   The commission shall  provide  to
    15  the  individual  any  additional evidence supporting the allegations not
    16  set forth in the letter sent pursuant to paragraph (a) of this  subdivi-
    17  sion  in sufficient detail to enable the individual to respond, at least
    18  seven days before the hearing.  Such hearing shall afford the individual
    19  with a reasonable opportunity to appear in person, and by attorney, give
    20  sworn testimony and present evidence.  Such hearing shall  occur  before
    21  the  commission  votes  on  whether  or not to issue a substantial basis
    22  report. The commission shall also inform the  individual  of  its  rules
    23  regarding  the  conduct  of adjudicatory proceedings and appeals and the
    24  other due process procedural mechanisms available to such individual. If
    25  the commission determines at any stage that there is no violation  [or],
    26  that  any potential [conflict of interest] violation has been rectified,
    27  or if the investigation is closed for any  other  reason,  it  shall  so
    28  advise  the  individual  and  the  complainant, if any in writing within
    29  fifteen days of such decision.  All of the foregoing  proceedings  shall
    30  be confidential.
    31    § 3. This act shall take effect immediately.
 
    32                                   PART K
 
    33    Section  1. Subdivision 3 of section 73 of the public officers law, as
    34  amended by chapter 242 of the laws  of  1989,  is  amended  to  read  as
    35  follows:
    36    3.  (a)  No  statewide  elected  official,  member of the legislature,
    37  legislative employee, full-time salaried state officer or employee shall
    38  receive, directly or indirectly, or enter into any agreement express  or
    39  implied  for,  any compensation, in whatever form, for the appearance or
    40  rendition of services by himself, herself or another against the  inter-
    41  est  of  the  state  in relation to any case, proceeding, application or
    42  other matter before, or the transaction of business by himself,  herself
    43  or another with, the court of claims.
    44    (b)  No  state  officer  or employee who is required to file an annual
    45  statement of financial disclosure pursuant to the provisions of  section
    46  seventy-three-a  of  this  article,  and is not otherwise subject to the
    47  provisions of this section, shall receive, directly  or  indirectly,  or
    48  enter  into  any  agreement express or implied, for any compensation, in
    49  whatever form, for the appearance or rendition of services  by  himself,
    50  herself  or another against the interest of the state agency by which he
    51  or she is employed or affiliated in relation to  any  case,  proceeding,
    52  application  or  other  matter before, or the transaction of business by
    53  himself, herself or another with, the court of claims.

        A. 10742                           20
 
     1    § 2. Subdivision 5 of section  73  of  the  public  officers  law,  as
     2  amended  by  chapter  14  of  the  laws  of  2007, is amended to read as
     3  follows:
     4    5.  No statewide elected official, state officer or employee, individ-
     5  ual whose name has been submitted by the  governor  to  the  senate  for
     6  confirmation to become a state officer or employee, member of the legis-
     7  lature or legislative employee shall, directly or indirectly:
     8    (a)  solicit,  accept  or  receive any gift having more than a nominal
     9  value, whether in the form of money,  service,  loan,  travel,  lodging,
    10  meals, refreshments, entertainment, discount, forbearance or promise, or
    11  in  any  other form, under circumstances in which it could reasonably be
    12  inferred that the gift was intended to influence him or  her,  or  could
    13  reasonably  be  expected  to influence him or her, in the performance of
    14  his or her official duties or was intended as a reward for any  official
    15  action  on  his  or  her  part. No person shall, directly or indirectly,
    16  offer or make any such gift to a  statewide  elected  official,  or  any
    17  state  officer  or  employee,  member  of the legislature or legislative
    18  employee under such circumstances.
    19    (b) solicit, accept or receive any gift, as defined in  section  one-c
    20  of  the legislative law, from any person who is prohibited from deliver-
    21  ing such gift pursuant to section one-m of the  legislative  law  unless
    22  under  the circumstances it is not reasonable to infer that the gift was
    23  intended to influence him or her; or
    24    (c) permit the solicitation, acceptance, or receipt of  any  gift,  as
    25  defined  in section one-c of the legislative law, from any person who is
    26  prohibited from delivering such gift pursuant to section  one-m  of  the
    27  legislative law to a third party including a charitable organization, on
    28  such  official's  designation or recommendation or on his or her behalf,
    29  under circumstances where it is reasonable to infer that  the  gift  was
    30  intended to influence him or her.
    31    § 3. Subdivisions 6 and 7 of section 73 of the public officers law, as
    32  amended by chapter 813 of the laws of 1987, paragraph (a) of subdivision
    33  6  as amended by section 3 of part A of chapter 399 of the laws of 2011,
    34  paragraph (b) of subdivision 6 as amended by chapter 14 of the  laws  of
    35  2007, and paragraph (a) of subdivision 7 as amended and paragraph (h) of
    36  subdivision  7  as added by chapter 530 of the laws of 2004, are amended
    37  to read as follows:
    38    6. (a) Every legislative employee not subject  to  the  provisions  of
    39  section  seventy-three-a  of  this  chapter shall, on and after December
    40  fifteenth and before the following January fifteenth, in each year, file
    41  with the joint commission on public ethics and  the  legislative  ethics
    42  commission a financial disclosure statement of
    43    (1) each financial interest, direct or indirect of himself or herself,
    44  his or her spouse and his or her unemancipated children under the age of
    45  eighteen years in any activity which is subject to the jurisdiction of a
    46  regulatory agency or name of the entity in which the interest is had and
    47  whether such interest is over or under five thousand dollars in value.
    48    (2)  every  office  and  directorship held by him or her in any corpo-
    49  ration, firm or enterprise which is subject to  the  jurisdiction  of  a
    50  regulatory  agency,  including  the  name  of  such corporation, firm or
    51  enterprise.
    52    (3) any other interest or relationship which he or she  determines  in
    53  his  or  her  discretion might reasonably be expected to be particularly
    54  affected by legislative action or  in  the  public  interest  should  be
    55  disclosed.

        A. 10742                           21
 
     1    (b)  Copies of such statements shall be open for public inspection and
     2  copying.
     3    (c)  Any  such  legislative  employee  who knowingly and wilfully with
     4  intent to deceive makes a false statement or gives information which  he
     5  or  she  knows to be false in any written statement required to be filed
     6  pursuant to this subdivision, shall be assessed a civil  penalty  in  an
     7  amount not to exceed ten thousand dollars. Assessment of a civil penalty
     8  shall  be  made  by  the  legislative  ethics  [committee] commission in
     9  accordance with the provisions of subdivision [twelve]  ten  of  section
    10  eighty  of the legislative law. For a violation of this subdivision, the
    11  [committee] commission  may,  in  lieu  of  a  civil  penalty,  refer  a
    12  violation  to  the  appropriate prosecutor and upon conviction, but only
    13  after such referral, such violation shall be punishable  as  a  class  A
    14  misdemeanor.
    15    7.  (a)  No  statewide elected official, or state officer or employee,
    16  other than in the proper discharge of official state  or  local  govern-
    17  mental  duties, or member of the legislature or legislative employee, or
    18  political party chairman shall receive, directly or indirectly, or enter
    19  into any agreement express or implied for, any compensation, in whatever
    20  form, for the appearance or rendition of services by himself, herself or
    21  another in relation to any case, proceeding, application or other matter
    22  before a state agency where such appearance or rendition of services  is
    23  in connection with:
    24    (i)  the  purchase,  sale,  rental or lease of real property, goods or
    25  services, or a contract therefor, from, to or with any such agency;
    26    (ii) any proceeding relating to rate making;
    27    (iii) the adoption or repeal of any  rule  or  regulation  having  the
    28  force and effect of law;
    29    (iv) the obtaining of grants of money or loans;
    30    (v) licensing; or
    31    (vi) any proceeding relating to a franchise provided for in the public
    32  service law.
    33    (b)  No political party chairman in a county wholly included in a city
    34  having a population of one million or more shall  receive,  directly  or
    35  indirectly,  or  enter  into  any  agreement express or implied for, any
    36  compensation, in whatever form,  for  the  appearance  or  rendition  of
    37  services  by  himself,  herself  or  another  in  relation  to any case,
    38  proceeding, application or other matter before  any  city  agency  where
    39  such appearance or rendition of services is in connection with:
    40    (i)  the  purchase,  sale,  rental or lease of real property, goods or
    41  services, or a contract therefor, from, to or with any such agency;
    42    (ii) any proceeding relating to ratemaking;
    43    (iii) the adoption or repeal of any  rule  or  regulation  having  the
    44  force and effect of law;
    45    (iv) the obtaining of grants of money or loans;
    46    (v)  licensing.  For  purposes of this paragraph, the term "licensing"
    47  shall mean any  city  agency  activity  respecting  the  grant,  denial,
    48  renewal,  revocation,  enforcement,  suspension,  annulment, withdrawal,
    49  recall, cancellation or amendment of a license, permit or other form  of
    50  permission  conferring the right or privilege to engage in (i) a profes-
    51  sion, trade, or occupation or (ii) any business or activity regulated by
    52  a regulatory agency of a city  agency  which  in  the  absence  of  such
    53  license, permit or other form of permission would be prohibited; and
    54    (vi) any proceeding relating to a franchise.
    55    (c)  Nothing  contained in this subdivision shall prohibit a statewide
    56  elected official, or a  state  officer  or  employee,  unless  otherwise

        A. 10742                           22
 
     1  prohibited,  or  a member of the legislature or legislative employee, or
     2  political party chairman, from appearing before  a  state  agency  in  a
     3  representative  capacity if such appearance in a representative capacity
     4  is in connection with a ministerial matter.
     5    (d)  Nothing  contained in this subdivision shall prohibit a member of
     6  the legislature, or a legislative employee on  behalf  of  such  member,
     7  from  participating  in  or  advocating any position in any matter in an
     8  official or legislative capacity, including, but not limited to,  acting
     9  as  a public advocate whether or not on behalf of a constituent. Nothing
    10  in this paragraph shall be construed to limit  the  application  of  the
    11  provisions of section seventy-seven of this chapter.
    12    (e) Nothing contained in this subdivision shall prohibit a state offi-
    13  cer or employee from appearing before a state agency in a representative
    14  capacity  on behalf of an employee organization in any matter where such
    15  appearance is duly authorized by an employee organization.
    16    (f) Nothing contained in this subdivision shall prohibit  a  political
    17  party  chairman  from  participating  in  or advocating any matter in an
    18  official capacity.
    19    (g) Nothing contained in  this  subdivision  shall  prohibit  internal
    20  research  or discussion of a matter, provided, however, that the time is
    21  not charged to the client and the person  does  not  share  in  the  net
    22  revenues generated or produced by the matter.
    23    (h) Nothing contained in this subdivision shall prohibit a state offi-
    24  cer  or employee, unless otherwise prohibited, from appearing or render-
    25  ing services in relation to a case, proceeding,  application  or  trans-
    26  action before a state agency, other than the agency in which the officer
    27  or  employee  is employed, when such appearance or rendition of services
    28  is made while carrying out official duties as an  elected  or  appointed
    29  official, or employee of a local government or one of its agencies.
    30    §  4.  Subdivision  8-b  of  section 73 of the public officers law, as
    31  added by chapter 540 of the laws of 2004, is renumbered subdivision 8-c.
    32    § 5. Subdivision 10 of section 73  of  the  public  officers  law,  as
    33  amended  by  section 13 of part A of chapter 399 of the laws of 2011, is
    34  amended to read as follows:
    35    10. Nothing contained in this section, the judiciary law,  the  educa-
    36  tion  law  or  any  other law or disciplinary rule shall be construed or
    37  applied to prohibit any firm, association or corporation, in  which  any
    38  present or former statewide elected official, state officer or employee,
    39  or  political  party  chairman, member of the legislature or legislative
    40  employee is a member, associate, retired member, of  counsel  or  share-
    41  holder, from appearing, practicing, communicating or otherwise rendering
    42  services  in relation to any matter before, or transacting business with
    43  a state agency, or a city agency  with  respect  to  a  political  party
    44  chairman in a county wholly included in a city with a population of more
    45  than  one  million,  otherwise proscribed by this section, the judiciary
    46  law, the education law or  any  other  law  or  disciplinary  rule  with
    47  respect  to  such  official,  member  of  the  legislature or officer or
    48  employee, or political party  chairman,  where  such  statewide  elected
    49  official, state officer or employee, member of the legislature or legis-
    50  lative  employee,  or political party chairman does not share in the net
    51  revenues, as defined in accordance with  generally  accepted  accounting
    52  principles  by  the joint commission on public ethics or by the legisla-
    53  tive ethics [committee] commission in relation  to  persons  subject  to
    54  their  respective jurisdictions, resulting therefrom, or, acting in good
    55  faith, reasonably believed that he or she would not  share  in  the  net
    56  revenues  as  so  defined; nor shall anything contained in this section,

        A. 10742                           23
 
     1  the judiciary law, the education law or any other  law  or  disciplinary
     2  rule  be  construed  to prohibit any firm, association or corporation in
     3  which any present or former statewide elected official,  member  of  the
     4  legislature,  legislative  employee, full-time salaried state officer or
     5  employee or state officer or employee who is subject to  the  provisions
     6  of  section  seventy-three-a  of  this  article  is a member, associate,
     7  retired member, of counsel or shareholder, from  appearing,  practicing,
     8  communicating  or otherwise rendering services in relation to any matter
     9  before, or transacting business with, the court of  claims,  where  such
    10  statewide  elected  official,  member  of  the  legislature, legislative
    11  employee, full-time salaried state officer or employee or state  officer
    12  or  employee who is subject to the provisions of section seventy-three-a
    13  of this article does not share  in  the  net  revenues,  as  defined  in
    14  accordance  with  generally  accepted accounting principles by the joint
    15  commission on public ethics or by  the  legislative  ethics  [committee]
    16  commission  in relation to persons subject to their respective jurisdic-
    17  tions,  resulting  therefrom,  or,  acting  in  good  faith,  reasonably
    18  believed  that  he  or  she  would  not  share in the net revenues as so
    19  defined.
    20    § 6. Paragraph 8 of subdivision 3 of section 73-a of the public  offi-
    21  cers  law, as amended by section 37 of subpart A of part H of chapter 55
    22  of the laws of 2014, subparagraphs  (a),  (b)  and  (c)  as  amended  by
    23  section  1  and  subparagraphs  (b-1) and (b-2) as added by section 2 of
    24  part CC of chapter 56 of the  laws  of  2015,  is  amended  to  read  as
    25  follows:
    26    8.  (a)  If the reporting individual practices law, is licensed by the
    27  department of state as a real estate broker  or  agent  or  practices  a
    28  profession licensed by the department of education, or works as a member
    29  or  employee of a firm required to register pursuant to section one-e of
    30  the legislative law as a lobbyist, describe the  services  rendered  for
    31  which compensation was paid including a general description of the prin-
    32  cipal subject areas of matters undertaken by such individual and princi-
    33  pal  duties performed. Specifically state whether the reporting individ-
    34  ual provides services directly to  clients.  Additionally,  if  such  an
    35  individual  practices  with  a  firm  or corporation and is a partner or
    36  shareholder of the firm or corporation, give a  general  description  of
    37  principal  subject  areas  of  matters undertaken by such firm or corpo-
    38  ration.
 
    39      ____________________________________________________________________
    40      ____________________________________________________________________
    41      ____________________________________________________________________
    42      ____________________________________________________________________
    43      ____________________________________________________________________
 
    44    (b) APPLICABLE ONLY TO NEW CLIENTS OR CUSTOMERS FOR WHOM SERVICES  ARE
    45  PROVIDED ON OR AFTER JULY FIRST, TWO THOUSAND TWELVE AND BEFORE DECEMBER
    46  THIRTY-FIRST,  TWO  THOUSAND  FIFTEEN,  OR  FOR NEW MATTERS FOR EXISTING
    47  CLIENTS OR CUSTOMERS WITH RESPECT TO THOSE SERVICES THAT ARE PROVIDED ON
    48  OR  AFTER  JULY  FIRST,  TWO  THOUSAND  TWELVE   AND   BEFORE   DECEMBER
    49  THIRTY-FIRST, TWO THOUSAND FIFTEEN:
    50    If the reporting individual personally provides services to any person
    51  or  entity,  or works as a member or employee of a partnership or corpo-
    52  ration that  provides  such  services  (referred  to  hereinafter  as  a
    53  "firm"),  then  identify  each  client or customer to whom the reporting
    54  individual personally provided services, or who was referred to the firm

        A. 10742                           24
 
     1  by the reporting individual, and from whom the reporting  individual  or
     2  his  or  her  firm earned fees in excess of $10,000 during the reporting
     3  period for such services rendered in direct connection with:
     4    (i) A contract in an amount totaling $50,000 or more from the state or
     5  any state agency for services, materials, or property;
     6    (ii)  A  grant  of  $25,000 or more from the state or any state agency
     7  during the reporting period;
     8    (iii) A grant obtained through a  legislative  initiative  during  the
     9  reporting period; or
    10    (iv)  A  case,  proceeding,  application or other matter that is not a
    11  ministerial matter before a state agency during the reporting period.
    12    For purposes of this question, "referred  to  the  firm"  shall  mean:
    13  having  intentionally  and  knowingly  taken a specific act or series of
    14  acts to intentionally procure for the  reporting  individual's  firm  or
    15  knowingly  solicit or direct to the reporting individual's firm in whole
    16  or substantial part, a person or entity that becomes a  client  of  that
    17  firm  for  the  purposes  of  representation  for a matter as defined in
    18  subparagraphs (i) through (iv) of this paragraph, as the result of  such
    19  procurement,  solicitation  or  direction of the reporting individual. A
    20  reporting  individual  need  not  disclose  activities  performed  while
    21  lawfully acting pursuant to paragraphs (c), (d), (e) and (f) of subdivi-
    22  sion seven of section seventy-three of this article.
    23    The  disclosure requirement in this question shall not require disclo-
    24  sure of clients or  customers  receiving  medical  or  dental  services,
    25  mental  health  services, residential real estate brokering services, or
    26  insurance brokering services from the reporting individual or his or her
    27  firm. The reporting individual need not identify any client to  whom  he
    28  or  she or his or her firm provided legal representation with respect to
    29  investigation or prosecution by law enforcement authorities, bankruptcy,
    30  or domestic relations matters. With respect to  clients  represented  in
    31  other  matters,  where  disclosure  of  a client's identity is likely to
    32  cause harm, the reporting individual shall request an exemption from the
    33  joint commission pursuant to paragraph [(i)] (i-1) of  subdivision  nine
    34  of  section  ninety-four of the executive law, provided, however, that a
    35  reporting individual who first enters public office  after  July  first,
    36  two  thousand  twelve, need not report clients or customers with respect
    37  to matters for which the reporting individual or his  or  her  firm  was
    38  retained prior to entering public office.
    39  Client                                     Nature of Services Provided
    40  ________________________________________________________________________
    41  ________________________________________________________________________
    42  ________________________________________________________________________
    43  ________________________________________________________________________
    44  ________________________________________________________________________
 
    45    (b-1)  APPLICABLE  ONLY  TO NEW CLIENTS OR CUSTOMERS FOR WHOM SERVICES
    46  ARE PROVIDED ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND FIFTEEN, OR
    47  FOR NEW MATTERS FOR EXISTING CLIENTS OR CUSTOMERS WITH RESPECT TO  THOSE
    48  SERVICES  THAT ARE PROVIDED ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOU-
    49  SAND FIFTEEN (FOR PURPOSES  OF  THIS  QUESTION,  "SERVICES"  SHALL  MEAN
    50  CONSULTATION, REPRESENTATION, ADVICE OR OTHER SERVICES):
    51    If the reporting individual receives income from employment reportable
    52  in question 8(a) and personally provides services to any person or enti-
    53  ty,  or  works  as  a member or employee of a partnership or corporation
    54  that provides such services (referred to hereinafter as a  "firm"),  the
    55  reporting  individual shall identify each client or customer to whom the

        A. 10742                           25
 
     1  reporting individual personally provided services, or who  was  referred
     2  to  the  firm  by  the reporting individual, and from whom the reporting
     3  individual or his or her firm earned fees in excess  of  $10,000  during
     4  the reporting period in direct connection with:
     5    (i) A contract in an amount totaling $10,000 or more from the state or
     6  any state agency for services, materials, or property;
     7    (ii)  A  grant  of  $10,000 or more from the state or any state agency
     8  during the reporting period;
     9    (iii) A grant obtained through a  legislative  initiative  during  the
    10  reporting period; or
    11    (iv)  A  case,  proceeding,  application or other matter that is not a
    12  ministerial matter before a state agency during the reporting period.
    13    For such services rendered by the  reporting  individual  directly  to
    14  each  such  client,  describe  each  matter that was the subject of such
    15  representation, the services actually provided and the payment received.
    16  For payments received from clients referred to the firm by the reporting
    17  individual, if the reporting individual directly received a referral fee
    18  or fees for such referral,  identify  the  client  and  the  payment  so
    19  received.
    20    For  purposes  of  this  question,  "referred to the firm" shall mean:
    21  having intentionally and knowingly taken a specific  act  or  series  of
    22  acts  to  intentionally  procure  for the reporting individual's firm or
    23  having knowingly solicited or directed  to  the  reporting  individual's
    24  firm  in  whole  or  substantial part, a person or entity that becomes a
    25  client of that firm for the purposes of representation for a  matter  as
    26  defined  in clauses (i) through (iv) of this subparagraph, as the result
    27  of such procurement, solicitation or direction of the reporting individ-
    28  ual. A reporting individual need not disclose activities performed while
    29  lawfully acting in his or her capacity as provided  in  paragraphs  (c),
    30  (d),  (e)  and (f) of subdivision seven of section seventy-three of this
    31  article.
    32    Client   Matter     Nature of Services Provided      Category
    33                                                       of Amount
    34                                                      (in Table I)
 
    35  ________________________________________________________________________
    36  ________________________________________________________________________
    37  ________________________________________________________________________
    38  ________________________________________________________________________
    39  ________________________________________________________________________
 
    40    (b-2) APPLICABLE ONLY TO NEW CLIENTS OR CUSTOMERS  FOR  WHOM  SERVICES
    41  ARE PROVIDED ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND FIFTEEN, OR
    42  FOR  NEW MATTERS FOR EXISTING CLIENTS OR CUSTOMERS WITH RESPECT TO THOSE
    43  SERVICES THAT ARE PROVIDED ON OR AFTER DECEMBER THIRTY-FIRST, TWO  THOU-
    44  SAND  FIFTEEN  (FOR  PURPOSES  OF  THIS  QUESTION, "SERVICES" SHALL MEAN
    45  CONSULTATION, REPRESENTATION, ADVICE OR OTHER SERVICES):
    46    (i) With respect to reporting individuals  who  receive  ten  thousand
    47  dollars  or  more  from employment or activity reportable under question
    48  8(a), for each client or customer NOT otherwise disclosed or exempted in
    49  question 8 or 13, disclose the name of each client or customer known  to
    50  the  reporting  individual  to  whom  the  reporting individual provided
    51  services: (A) who paid the reporting individual in excess of five  thou-
    52  sand  dollars  for  such  services;  or (B) who had been billed with the
    53  knowledge of the reporting individual in excess of five thousand dollars

        A. 10742                           26
 
     1  by the firm or other entity named in question  8(a)  for  the  reporting
     2  individual's services.
     3  Client               Services              Category of Amount
     4                   Actually Provided            (in Table I)
        ________________________________________________________________________
        ________________________________________________________________________
        ________________________________________________________________________
        ________________________________________________________________________
        ________________________________________________________________________
 
     5  FOLLOWING IS AN ILLUSTRATIVE, NON-EXCLUSIVE LIST OF EXAMPLES OF
     6  DESCRIPTIONS OF "SERVICES ACTUALLY PROVIDED":
     7    * REVIEWED DOCUMENTS AND CORRESPONDENCE;
     8    * REPRESENTED CLIENT (IDENTIFY CLIENT BY NAME) IN LEGAL PROCEEDING;
     9    * PROVIDED LEGAL ADVICE ON CLIENT MATTER (IDENTIFY CLIENT BY NAME);
    10    * CONSULTED WITH CLIENT OR CONSULTED WITH LAW PARTNERS/ASSOCIATES/MEMBERS
    11      OF FIRM ON CLIENT MATTER (IDENTIFY CLIENT BY NAME);
    12    * PREPARED CERTIFIED FINANCIAL STATEMENT FOR CLIENT (IDENTIFY CLIENT BY
    13      NAME);
    14    * REFERRED INDIVIDUAL OR ENTITY (IDENTIFY CLIENT BY NAME) FOR
    15      REPRESENTATION OR CONSULTATION;
    16    * COMMERCIAL BROKERING SERVICES (IDENTIFY CUSTOMER BY NAME);
    17    * PREPARED CERTIFIED ARCHITECTURAL OR ENGINEERING
    18      RENDERINGS FOR CLIENT (IDENTIFY CUSTOMER BY NAME);
    19    * COURT APPOINTED GUARDIAN OR EVALUATOR (IDENTIFY COURT NOT CLIENT).
    20    (ii)  With  respect to reporting individuals who disclosed in question
    21  8(a) that the reporting individual did not provide services to a  client
    22  but  provided  services  to a firm or business, identify the category of
    23  amount received for providing such services and  describe  the  services
    24  rendered.
    25  Services Actually Provided                  Category of Amount (Table I)
        ________________________________________________________________________
        ________________________________________________________________________
        ________________________________________________________________________
    26    A  reporting  individual  need not disclose activities performed while
    27  lawfully acting in his or her capacity as provided  in  paragraphs  (c),
    28  (d),  (e)  and (f) of subdivision seven of section seventy-three of this
    29  article.
    30  The disclosure requirement  in  questions  (b-1)  and  (b-2)  shall  not
    31  require  disclosing  clients  or customers receiving medical, pharmaceu-
    32  tical or dental services, mental health services,  or  residential  real
    33  estate  brokering  services  from the reporting individual or his or her
    34  firm or if federal law prohibits or  limits  disclosure.  The  reporting
    35  individual  need not identify any client to whom he or she or his or her
    36  firm provided legal representation  with  respect  to  investigation  or
    37  prosecution  by  law  enforcement authorities, bankruptcy, family court,
    38  estate planning, or domestic relations matters, nor shall the  reporting
    39  individual  identify  individuals  represented  pursuant to an insurance
    40  policy but the reporting individual shall  in  such  circumstances  only
    41  report  the  entity that provides compensation to the reporting individ-
    42  ual; with respect to matters in which the client's name is  required  by
    43  law  to  be  kept  confidential  (such as matters governed by the family
    44  court act) or in matters in which the reporting individual represents or
    45  provides services to minors, the client's  name  may  be  replaced  with
    46  initials.  To  the  extent  that the reporting individual, or his or her
    47  firm, provided legal representation with respect to  an  initial  public

        A. 10742                           27
 
     1  offering,  and  professional  disciplinary  rules,  federal law or regu-
     2  lations restrict the disclosure of information relating  to  such  work,
     3  the  reporting  individual shall (i) disclose the identity of the client
     4  and the services provided relating to the initial public offering to the
     5  office  of  court  administration,  who  will  maintain such information
     6  confidentially in a locked box; and (ii) include in his or her  response
     7  to  questions (b-1) and (b-2) that pursuant to this paragraph, a disclo-
     8  sure to the office of court administration has been made. Upon such time
     9  that the disclosure of information maintained in the locked  box  is  no
    10  longer  restricted  by  professional  disciplinary rules, federal law or
    11  regulation, the reporting individual shall disclose such information  in
    12  an  amended  disclosure statement in response to the disclosure require-
    13  ments in questions (b-1) and (b-2). The office of  court  administration
    14  shall  develop  and  maintain  a secure portal through which information
    15  submitted to it pursuant to this paragraph can be safely  and  confiden-
    16  tially  stored. With respect to clients represented in other matters not
    17  otherwise exempt, the reporting individual may request an  exemption  to
    18  publicly  disclosing  the  name of that client from the joint commission
    19  pursuant to paragraph [(i)] (i-1) of subdivision nine of  section  nine-
    20  ty-four  of  the  executive  law,  or  from the office of court adminis-
    21  tration. In such application, the reporting individual shall  state  the
    22  following:  "My client is not currently receiving my services or seeking
    23  my services in connection with:
    24    (i) A proposed bill or resolution in the senate or assembly during the
    25  reporting period;
    26    (ii) A contract in an amount totaling $10,000 or more from  the  state
    27  or any state agency for services, materials, or property;
    28    (iii)  A  grant  of $10,000 or more from the state or any state agency
    29  during the reporting period;
    30    (iv) A grant obtained through  a  legislative  initiative  during  the
    31  reporting period; or
    32    (v)  A  case,  proceeding,  application  or other matter that is not a
    33  ministerial matter before a state agency during the reporting period."
    34    In reviewing the request for an exemption, the joint commission or the
    35  office of court administration may consult with  bar  or  other  profes-
    36  sional  associations  and the legislative ethics commission for individ-
    37  uals subject to its jurisdiction and may consider the rules  of  profes-
    38  sional conduct. In making its determination, the joint commission or the
    39  office  of  court administration shall conduct its own inquiry and shall
    40  consider factors including, but not limited to: (i) the nature  and  the
    41  size  of the client; (ii) whether the client has any business before the
    42  state; and if so, how significant  the  business  is;  and  whether  the
    43  client  has any particularized interest in pending legislation and if so
    44  how significant the interest is; (iii)  whether  disclosure  may  reveal
    45  trade secrets; (iv) whether disclosure could reasonably result in retal-
    46  iation  against  the client; (v) whether disclosure may cause undue harm
    47  to the client; (vi) whether disclosure may result in undue harm  to  the
    48  attorney-client relationship; and (vii) whether disclosure may result in
    49  an unnecessary invasion of privacy to the client.
    50    The  joint  commission  or,  as  the  case may be, the office of court
    51  administration shall promptly make a final determination in response  to
    52  such  request, which shall include an explanation for its determination.
    53  The office of court administration shall issue its  final  determination
    54  within  three  days  of receiving the request. Notwithstanding any other
    55  provision of law or any professional disciplinary rule to the  contrary,
    56  the  disclosure of the identity of any client or customer in response to

        A. 10742                           28
 
     1  this question shall not constitute professional misconduct or  a  ground
     2  for  disciplinary action of any kind, or form the basis for any civil or
     3  criminal cause of action or proceeding. A reporting individual who first
     4  enters public office after January first, two thousand sixteen, need not
     5  report  clients  or  customers  with  respect  to  matters for which the
     6  reporting individual or his or her firm was retained prior  to  entering
     7  public office.
     8  [Client              Services              Category of Amount
     9                   Actually Provided            (in Table I)
        ________________________________________________________________________
        ________________________________________________________________________
        ________________________________________________________________________
        ________________________________________________________________________
    10  ________________________________________________________________________]
    11    (c)  APPLICABLE ONLY TO NEW CLIENTS OR CUSTOMERS FOR WHOM SERVICES ARE
    12  PROVIDED ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND FIFTEEN, OR FOR
    13  NEW MATTERS FOR EXISTING CLIENTS OR  CUSTOMERS  WITH  RESPECT  TO  THOSE
    14  SERVICES  THAT ARE PROVIDED ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOU-
    15  SAND FIFTEEN:
    16    If the reporting individual receives income of ten thousand dollars or
    17  greater from any employment or activity reportable under question  8(a),
    18  identify  each  registered  lobbyist  who  has directly referred to such
    19  individual a client who was successfully referred to the reporting indi-
    20  vidual's business  and  from  whom  the  reporting  individual  or  firm
    21  received  a  fee for services in excess of five thousand dollars. Report
    22  only those referrals that were made to a reporting individual by  direct
    23  communication  from  a person known to such reporting individual to be a
    24  registered lobbyist at the time the referral is made.  With  respect  to
    25  each  such referral, the reporting individual shall identify the client,
    26  the registered lobbyist who has made the referral, the category of value
    27  of the compensation received and a general description of  the  type  of
    28  matter  so referred. A reporting individual need not disclose activities
    29  performed while lawfully acting pursuant to paragraphs (c), (d), (e) and
    30  (f) of subdivision seven of section seventy-three of this  article.  The
    31  disclosure  requirements  in  this question shall not require disclosing
    32  clients  or  customers  receiving  medical,  pharmaceutical  or   dental
    33  services,  mental  health services, or residential real estate brokering
    34  services from the reporting individual or his or her firm or if  federal
    35  law  prohibits  or  limits disclosure. The reporting individual need not
    36  identify any client to whom he or she or his or her firm provided  legal
    37  representation  with  respect  to  investigation  or  prosecution by law
    38  enforcement authorities, bankruptcy, family court, estate  planning,  or
    39  domestic  relations matters, nor shall the reporting individual identify
    40  individuals represented pursuant to an insurance policy but the  report-
    41  ing  individual  shall in such circumstances only report the entity that
    42  provides compensation to  the  reporting  individual;  with  respect  to
    43  matters  in which the client's name is required by law to be kept confi-
    44  dential (such as matters governed by the family court act) or in matters
    45  in which the reporting individual represents  or  provides  services  to
    46  minors,  the  client's name may be replaced with initials. To the extent
    47  that the reporting individual, or his or her firm, provided legal repre-
    48  sentation with respect to an initial public offering, and federal law or
    49  regulations restricts the disclosure of  information  relating  to  such
    50  work,  the  reporting  individual shall (i) disclose the identity of the
    51  client and the services provided relating to the initial public offering
    52  to the office of court administration, who will maintain  such  informa-

        A. 10742                           29
 
     1  tion  confidentially  in  a  locked  box; and (ii) include in his or her
     2  response a statement that pursuant to this paragraph,  a  disclosure  to
     3  the  office  of  court administration has been made. Upon such time that
     4  the  disclosure of information maintained in the locked box is no longer
     5  restricted by federal law or regulation, the reporting individual  shall
     6  disclose such information in an amended disclosure statement in response
     7  to  the  disclosure requirements of this paragraph.  The office of court
     8  administration shall develop and maintain a secure portal through  which
     9  information submitted to it pursuant to this paragraph can be safely and
    10  confidentially  stored.  With  respect  to  clients represented in other
    11  matters not otherwise exempt, the reporting individual  may  request  an
    12  exemption  to publicly disclosing the name of that client from the joint
    13  commission pursuant to paragraph [(i)]  (i-1)  of  subdivision  nine  of
    14  section  ninety-four  of  the executive law, or from the office of court
    15  administration. In such  application,  the  reporting  individual  shall
    16  state  the  following: "My client is not currently receiving my services
    17  or seeking my services in connection with:
    18    (i) A proposed bill or resolution in the senate or assembly during the
    19  reporting period;
    20    (ii) A contract in an amount totaling $10,000 or more from  the  state
    21  or any state agency for services, materials, or property;
    22    (iii)  A  grant  of $10,000 or more from the state or any state agency
    23  during the reporting period;
    24    (iv) A grant obtained through  a  legislative  initiative  during  the
    25  reporting period; or
    26    (v)  A  case,  proceeding,  application  or other matter that is not a
    27  ministerial matter before a state agency during the reporting period."
    28    In reviewing the request for an exemption, the joint commission or the
    29  office of court administration may consult with  bar  or  other  profes-
    30  sional  associations  and the legislative ethics commission for individ-
    31  uals subject to its jurisdiction and may consider the rules  of  profes-
    32  sional conduct. In making its determination, the joint commission or the
    33  office  of  court administration shall conduct its own inquiry and shall
    34  consider factors including, but not limited to: (i) the nature  and  the
    35  size  of the client; (ii) whether the client has any business before the
    36  state; and if so, how significant  the  business  is;  and  whether  the
    37  client  has any particularized interest in pending legislation and if so
    38  how significant the interest is; (iii)  whether  disclosure  may  reveal
    39  trade secrets; (iv) whether disclosure could reasonably result in retal-
    40  iation  against  the client; (v) whether disclosure may cause undue harm
    41  to the client; (vi) whether disclosure may result in undue harm  to  the
    42  attorney-client relationship; and (vii) whether disclosure may result in
    43  an unnecessary invasion of privacy to the client.
    44    The  joint  commission  or,  as  the  case may be, the office of court
    45  administration shall promptly make a final determination in response  to
    46  such  request, which shall include an explanation for its determination.
    47  The office of court administration shall issue its  final  determination
    48  within  three  days  of receiving the request. Notwithstanding any other
    49  provision of law or any professional disciplinary rule to the  contrary,
    50  the  disclosure of the identity of any client or customer in response to
    51  this question shall not constitute professional misconduct or  a  ground
    52  for  disciplinary action of any kind, or form the basis for any civil or
    53  criminal cause of action or proceeding. A reporting individual who first
    54  enters public office after December thirty-first, two thousand  fifteen,
    55  need  not  report clients or customers with respect to matters for which

        A. 10742                           30

     1  the reporting individual or his or her firm was retained prior to enter-
     2  ing public office.
     3  Client        Name of Lobbyist     Description    Category of Amount
     4                                     of Matter       (in Table 1)
     5  ________________________________________________________________________
     6  ________________________________________________________________________
     7  ________________________________________________________________________
     8  ________________________________________________________________________
     9  ________________________________________________________________________
 
    10    (d)  List  the  name, principal address and general description or the
    11  nature of the business activity of any entity  in  which  the  reporting
    12  individual  or  such  individual's spouse had an investment in excess of
    13  $1,000 excluding investments in securities and interests in real proper-
    14  ty.
    15    § 7. Subdivisions 2 and 3 of section 74 of the public officers law, as
    16  amended by chapter 1012 of the laws of 1965, paragraph d of  subdivision
    17  3  as  amended  by chapter 1 of the laws of 2010, are amended to read as
    18  follows:
    19    2. Rule with respect to conflicts of interest. No officer or  employee
    20  of  a  state  agency,  member of the legislature or legislative employee
    21  should have any interest, financial or otherwise, direct or indirect, or
    22  engage in any business or transaction or professional activity or  incur
    23  any  obligation of any nature, which is in substantial conflict with the
    24  proper discharge of his or her duties in the public interest.
    25    3. Standards.
    26    a. No officer or employee of a state agency, member of the legislature
    27  or legislative employee should accept other employment which will impair
    28  his or her independence of judgment in the exercise of his or her  offi-
    29  cial duties.
    30    b. No officer or employee of a state agency, member of the legislature
    31  or  legislative employee should accept employment or engage in any busi-
    32  ness or professional activity which will require him or her to  disclose
    33  confidential  information which he or she has gained by reason of his or
    34  her official position or authority.
    35    c. No officer or employee of a state agency, member of the legislature
    36  or  legislative  employee  should  disclose   confidential   information
    37  acquired  by  him or her in the course of his or her official duties nor
    38  use such information to further his or her personal interests.
    39    d. No officer or employee of a state agency, member of the legislature
    40  or legislative employee should use or attempt to use his or her official
    41  position to secure unwarranted privileges or exemptions for  himself  or
    42  herself or others, including but not limited to, the misappropriation to
    43  himself,  herself  or  to  others  of  the  property,  services or other
    44  resources of the state for private business or other compensated non-go-
    45  vernmental purposes.
    46    e. No officer or employee of a state agency, member of the legislature
    47  or legislative employee should engage in any  transaction  as  represen-
    48  tative or agent of the state with any business entity in which he or she
    49  has  a  direct or indirect financial interest that might reasonably tend
    50  to conflict with the proper discharge of his or her official duties.
    51    f. An officer or employee of a state agency, member of the legislature
    52  or legislative employee should not by his or her conduct give reasonable
    53  basis for the impression that any person can improperly influence him or
    54  her or unduly enjoy his or her favor in the performance of  his  or  her

        A. 10742                           31
 
     1  official  duties,  or  that  he or she is affected by the kinship, rank,
     2  position or influence of any party or person.
     3    g. An officer or employee of a state agency should abstain from making
     4  personnel  investments  in  enterprises  which  he  or she has reason to
     5  believe may be directly involved in decisions to be made by him  or  her
     6  or  which  will otherwise create substantial conflict between his or her
     7  duty in the public interest and his or her private interest.
     8    h. An officer or employee of a state agency, member of the legislature
     9  or legislative employee should endeavor to pursue a  course  of  conduct
    10  which will not raise suspicion among the public that he or she is likely
    11  to be engaged in acts that are in violation of his or her trust.
    12    i.  No  officer  or employee of a state agency employed on a full-time
    13  basis nor any firm or association of which such an officer  or  employee
    14  is  a member nor corporation a substantial portion of the stock of which
    15  is owned or controlled directly or indirectly by such officer or employ-
    16  ee, should sell goods or services to any person,  firm,  corporation  or
    17  association  which  is  licensed  or  whose rates are fixed by the state
    18  agency in which such officer or employee serves or is employed.
    19    § 8. This act shall take effect immediately; and shall apply to annual
    20  statements of financial disclosure filed for calendar  years  commencing
    21  on or after January 1, 2017.
    22    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
    23  sion,  section  or  part  of  this act shall be adjudged by any court of
    24  competent jurisdiction to be invalid, such judgment  shall  not  affect,
    25  impair,  or  invalidate  the remainder thereof, but shall be confined in
    26  its operation to the clause, sentence, paragraph,  subdivision,  section
    27  or part thereof directly involved in the controversy in which such judg-
    28  ment shall have been rendered. It is hereby declared to be the intent of
    29  the  legislature  that  this  act  would  have been enacted even if such
    30  invalid provisions had not been included herein.
    31    § 3. This act shall take effect immediately  provided,  however,  that
    32  the  applicable effective date of Parts A through K of this act shall be
    33  as specifically set forth in the last section of such Parts.
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