Amd SS10.00, 195.20, 200.00, 200.03 & 200.04, add SS195.18 & 200.28, Pen L; amd SS73-a & 74, ren S80 to be
S81, add S80, Pub Off L; amd S94, Exec L; ren S99-d to be S99-w, amd S99-w, add S99-v, St Fin L; amd S211,
Judy L; amd SS14-100, 14-104, 14-108 & 14-120, El L
Enacts the public corruption prevention and enforcement act of 2013; increases penalties for violations relating to scheme to defraud the government, duty to provide faithful public services, and bribery; increases penalties for financial disclosure violations by public officials; relates to community project grants; provides for an executive community projects fund; relates to inspection of annual statements; amends provisions relating to campaign contributions and expenditures.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7217
SPONSOR: Malliotakis TITLE OF BILL: An act to amend the penal law, in relation to increas-
ing penalties for violations relating to scheme to defraud the govern-
ment, bribery, and duty to provide faithful public services; to amend
the public officers law, in relation to faithful public services,
increasing penalties for financial disclosure violations, and community
project grants; to amend the executive law, in relation to making tech-
nical changes thereto; to amend the state finance law, in relation to
the legislative community projects fund and executive community projects
fund; to amend the judiciary law, in relation to the inspection of annu-
al statements of financial disclosure; and to amend the election law, in
relation to campaign contributions and expenditures
PURPOSE:
The legislation will create the "Public Corruption Prevention and
Enforcement Act of 2013. This act defines and promotes "faithful public
service" and provides criminal and civil penalties for the violation of
this conduct.
The "Public Corruption Prevention and Enforcement Act of 2013" clarifies
the definition of self-dealing, scheme to defraud, bribery and defines
the penalties for such crimes as various levels of a felony. Real reform
and regulation is proposed in this act by increasing transparency and
penalties regarding member-items, financial disclosure forms, and
campaign contributions.
SUMMARY OF PROVISIONS:
Section 1 - creates the "Public Corruption Prevention and Enforcement
Act of 2013."
Section 2 - Amends PL § 10.00 to define "scheme for PL § 5 195.18 and
195.20 and "faithful public services" and "self-dealing."
Section 3 - Amends PI, § 195.20 to create the crime of scheme to defraud
the government in the first degree, a D felony.
Section 4 - Adds new PI, § 195.18, to create the crime of scheme to
defraud the government in the first degree, an E felony.
Sections 5, 6 and 7 Amend PI, § § 200,00, 200.03 and 200.04 to make
changes to address a common law issue involving burden of proof.
Section 8 Adds new PL § 200.28 to create a duty to provide faithful
services for public servants.
JUSTIFICATION:
With Albany's growing reputation for scandal, combined with the public
perception and mistrust of elected officials there's a true sense of
urgency for real reform in the New York State Legislature. The "Public
Corruption Prevention and Enforcement Act of 2013" combines preventative
measures against corruption with stricter forms of enforcement for those
who violate the law.
Elected officials hold a tremendous amount of public trust and have a
serious responsibility to perform faithful services to their constitu-
ents. This bill creates a defined duty for public servants in the Penal
Law as well as the Public Officers Law. The duty described applies to
all public servants elected within the state, their employees and
appointees, and is defined as conduct that is free of undisclosed self
dealing and free of the unauthorized or unlawful conferral of benefits.
Under this legislation, knowing and intentional violations of the duty
to provide faithful public services may be prosecuted by any district
attorney or an enforcement action may be brought by a state commissions
with ethics oversight.
This legislation will expand the limited existing crime of Defrauding
the Government and create the crime of Scheme to Defraud the Government
in the First and Second Degree. Currently, the law is limited to schemes
to defraud government agencies of money or property and schemes involv-
ing public servants. Under this act others who seek to corrupt the oper-
ation of government will now be included. This violation will be
punishable as either a class D or E felony, depending on the nature of
the offense.
In addition, three sections of bribery involving public servants in the
Penal Law are amended to reflect the proper standard of proof and to
ensure offers to bribes are punished seriously. The bill amends bribery
in the first, second and third degrees in order to create a crime simi-
lar to the public bribery statutes consistent with commercial bribery,
sports bribery. and labor bribery.
An imperative piece of this legislation creates new standards, which
strengthen ethics requirements and increase transparency regarding
community projects grants, commonly known as "member-items." Under The
Public Corruption Prevention and Enforcement Act of 2013, not-for-pro-
fits or other organizations are barred from receiving a grant if they.
have been; barred by a. government agency in any jurisdiction within the
last five years; failed to file a tax return or to pay taxes in the last
five years; or used a third-party or agent to secure the grant. If the
standards are violated, the attorney general will have the jurisdiction
to recover the grant through an action under the Executive Law.
In addition, this act prohibits legislators from sponsoring or request-
ing any grants if they themselves, a relative, or spouse is a director,
officer or trustee of the not-for-profit or organization receiving any
grant. Legislators, their spouses and relatives are also banned from
having a financial interest in or receiving any financial benefit from a
grant. The attorney general and any district attorney will have juris-
diction to investigate and prosecute the prohibitions.
Finally, real campaign finance reform will be enacted in regards to the
Public Officers and Election Law to reduce public corruption. The cate-
gories of value or amounts on the annual statements of financial disclo-
sure filed in all three branches of state government are disclosed to
the public upon release. Current provisions in law and rules allow this
information to be redacted. A question is also added to the annual
statement of financial disclosure requiring the reporting individual to
disclose relationships with non-profits. Finally, candidates for public
office and their spouse or domestic partner are required to report gifts
or loans for the twelve months preceding a candidate designation.
Although the New York State Legislature has many dedicated and hardwork-
ing members, this legislation will help clarify ethics laws, while
providing stricter penalties and measures of enforcement
LEGISLATIVE HISTORY:
4/25/11 Referred to Codes
1/4/12 Referred to Codes
FISCAL IMPLICATIONS:
None
EFFECTIVE DATE:
This act shall take effect immediately.
