A03647 Summary:

BILL NO    A03647 

SAME AS    No same as 

SPONSOR    Brennan

COSPNSR    

MLTSPNSR   

Add S204, BC L

Prohibits corporations that receive public financing from giving gifts to
public officials.
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A03647 Actions:

BILL NO    A03647 

01/27/2015 referred to governmental operations
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A03647 Votes:

There are no votes for this bill in this legislative session.
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A03647 Memo:

BILL NUMBER:A3647

TITLE OF BILL:

An act to amend the business corporation law, in relation to
prohibiting gifts to public officials

PURPOSE OR GENERAL IDEA OF BILL:

To prohibit any domestic or foreign business corporation from offering
or providing a gift to any State public officials.

SUMMARY OF SPECIFIC PROVISIONS:

Section one of the bill adds a new section 0 204 to the business
corporation law to prohibit any business corporation that does
business in this State or receives any form of State public financing
from offering and giving a gift to public officials.

The new section sets forth penalties for violating the prohibition
based on the annual revenue of the corporation. Any director or
officer who knowingly violates this section is guilty of a class A
misdemeanor and subject to a fine of up to six times the value of the
gift.

The State Attorney General is empowered to enforce the provisions of
this new section. Section two provides that this act shall take effect
immediately.

JUSTIFICATION:

Under current law, no registered lobbyist or the lobbyists client may
offer or give a gift to a public official "unless it is not reasonable
to infer that the gift was intended to influence such public
officials."

The law contains a potential loophole since it would appear to allow a
corporation or organization that does not retain a registered lobbyist
to offer or proffer a gift to public officials even if the gift was
intended to influence the official. Moreover, it is very difficult to
prove that a gift was intended to influence a person, especially if
there has been a long-term personal relationship between the two
individuals.

Public opinion on the ethical behavior of elected officials,
especially in this State, is at record lows. To remove any ambiguities
or subjectivity in the law and to ensure the highest ethical
standards, this bill would expressly prohibit any business corporation
that does business in, or receives public financing from, the State
from offering or giving any gifts to public officials.

PRIOR LEGISLATIVE HISTORY:

New bill

FISCAL IMPLICATIONS:


None

EFFECTIVE DATE:

This act shall take effect immediately.
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A03647 Text:

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         3647

                              2015-2016 Regular Sessions

                                 I N  A S S E M B L Y

                                   January 27, 2015
                                      ___________

       Introduced  by M. of A. BRENNAN -- read once and referred to the Commit-
         tee on Governmental Operations

       AN ACT to amend the business corporation law, in relation to prohibiting
         gifts to public officials

         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section  1.  The  business  corporation law is amended by adding a new
    2  section 204 to read as follows:
    3  S 204. PROHIBITION OF GIFTS TO PUBLIC OFFICIALS.
    4    (A) FOR THE PURPOSES OF THIS SECTION:
    5    (1) THE TERMS "GIFT" AND "PUBLIC OFFICIAL" SHALL HAVE THE SAME MEANING
    6  AS THOSE TERMS ARE DEFINED IN THE LEGISLATIVE LAW, EXCEPT THAT THE  TERM
    7  "GIFT",  IN ADDITION TO THE DEFINITION SET FORTH IN THE LEGISLATIVE LAW,
    8  SHALL INCLUDE ANY PRIVILEGES,  BENEFITS  OR  RIGHTS  THAT  ARE  OFFERED,
    9  PROVIDED  OR  MADE AVAILABLE TO A PUBLIC OFFICIAL BUT NOT TO THE GENERAL
   10  PUBLIC.
   11    (2) THE TERM "PUBLIC FINANCING" SHALL INCLUDE, BUT NOT BE LIMITED  TO,
   12  STATE  OR LOCAL GRANTS, SUBSIDIES, TAX EXEMPTIONS OR CREDITS, TAX ABATE-
   13  MENTS, PAYMENTS IN LIEU OF TAXES, AND ANY DEBT  ISSUED  BY  A  STATE  OR
   14  LOCAL AGENCY, A PUBLIC AUTHORITY OR A PUBLIC BENEFIT CORPORATION.
   15    (B)(1) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, NO DOMES-
   16  TIC  CORPORATION,  FOREIGN CORPORATION, OR ANY SUBSIDIARY OF SUCH CORPO-
   17  RATION WHICH (I) IS AUTHORIZED TO DO OR DOES BUSINESS IN THIS STATE  AND
   18  (II)  RECEIVES DIRECTLY OR INDIRECTLY ANY FORM OR TYPE OF PUBLIC FINANC-
   19  ING SHALL OFFER, GIVE OR PROVIDE A GIFT TO ANY PUBLIC OFFICIAL.
   20    (2) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PROHIBIT OR  PREVENT
   21  A  CORPORATION FROM OFFERING, GIVING OR PROVIDING GOODS OR SERVICES TO A
   22  PUBLIC OFFICIAL ON THE SAME TERMS AND CONDITIONS AS  GOODS  OR  SERVICES
   23  ARE OFFERED OR PROVIDED TO THE GENERAL PUBLIC.
   24    (C)(1)  ANY  CORPORATION  THAT VIOLATES ANY PROVISIONS OF THIS SECTION
   25  AND

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD02503-01-5
       A. 3647                             2

    1    (I) GENERATES ANNUAL GROSS REVENUES OF LESS THAN ONE  MILLION  DOLLARS
    2  SHALL BE SUBJECT TO A FINE OF UP TO FIVE THOUSAND DOLLARS;
    3    (II)  GENERATES  ANNUAL GROSS REVENUES OF BETWEEN ONE AND FIVE MILLION
    4  DOLLARS SHALL BE SUBJECT TO A FINE OF UP TO TEN THOUSAND DOLLARS BUT NOT
    5  LESS THAN FIVE THOUSAND DOLLARS;
    6    (III) GENERATES ANNUAL  GROSS  REVENUES  OF  MORE  THAN  FIVE  MILLION
    7  DOLLARS  BUT LESS THAN TEN MILLION DOLLARS SHALL BE SUBJECT TO A FINE OF
    8  UP TO FIFTY THOUSAND DOLLARS BUT NOT LESS THAN TEN THOUSAND DOLLARS; AND
    9    (IV) GENERATES ANNUAL GROSS REVENUES OF MORE THAN TEN MILLION  DOLLARS
   10  SHALL  BE  SUBJECT  TO  A  FINE  OF UP TO TWO HUNDRED AND FIFTY THOUSAND
   11  DOLLARS BUT NOT LESS THAN FIFTY THOUSAND DOLLARS;
   12    (2) ANY DIRECTOR OR OFFICER WHO KNOWINGLY VIOLATES THE  PROVISIONS  OF
   13  THIS  SECTION  SHALL  BE  GUILTY  OF A CLASS A MISDEMEANOR, AND SHALL BE
   14  SUBJECT TO A MONETARY FINE OF UP TO SIX TIMES THE VALUE OF THE GIFT.
   15    (D) THE NEW YORK STATE ATTORNEY GENERAL SHALL BE EMPOWERED AND AUTHOR-
   16  IZED TO ENFORCE COMPLIANCE WITH THIS  SECTION,  INCLUDING  IMPOSING  THE
   17  APPROPRIATE  PENALTIES  ON  THOSE PARTIES WHO ARE FOUND TO HAVE VIOLATED
   18  THE PROVISIONS OF THIS SECTION.
   19    S 2. This act shall take effect immediately.
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