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A09535 Summary:

A09535 Actions:

A09535 Committee Votes:

A09535 Floor Votes:

A09535 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9535
 
                   IN ASSEMBLY
 
                                     March 11, 2016
                                       ___________
 
        Introduced by M. of A. HEASTIE, MORELLE, PEOPLES-STOKES, LENTOL, CUSICK,
          LAVINE,  FARRELL,  DINOWITZ,  FAHY  --  Multi-Sponsored by -- M. of A.
          ABINANTI, ARROYO, BARRETT, BENEDETTO, BICHOTTE,  BRAUNSTEIN,  BRENNAN,
          BRINDISI,  BRONSON,  BUCHWALD,  CAHILL, CERETTO, COLTON, COOK, CRESPO,
          CYMBROWITZ, DAVILA, DenDEKKER, ENGLEBRIGHT, GALEF, GANTT, GLICK, GOTT-
          FRIED, GUNTHER,  HARRIS,  HEVESI,  HIKIND,  HOOPER,  HUNTER,  HYNDMAN,
          JAFFEE,  JEAN-PIERRE,  JOYNER, KAVANAGH, KEARNS, KIM, LIFTON, LINARES,
          LUPARDO, MAGEE, MAGNARELLI, MARKEY, MAYER, McDONALD,  MILLER,  MOSLEY,
          MOYA,  NOLAN,  O'DONNELL, OTIS, PAULIN, PERRY, PICHARDO, RAMOS, RODRI-
          GUEZ, ROSENTHAL, ROZIC, RUSSELL, RYAN, SCHIMEL, SEAWRIGHT,  SEPULVEDA,
          SIMANOWITZ, SIMON, SIMOTAS, SKARTADOS, SOLAGES, STECK, STIRPE, THIELE,
          TITONE,  TITUS, WALKER, WEINSTEIN, WOERNER, ZEBROWSKI -- read once and
          referred to the Committee on Codes
 
        AN ACT to amend the legislative  law,  in  relation  to  limitations  on
          outside  income for members; to amend the election law, in relation to
          campaign contributions by limited liability companies;  to  amend  the
          legislative law, in relation to communications with professional jour-
          nalists and newscasters; and in relation to reporting of certain fund-
          ing by lobbyists; and to amend the election law, in relation to monies
          received  and  expenditures  made  by a party committee or constituted
          committee
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1. The legislative law is amended by adding a new section 5-b
     2  to read as follows:
     3    § 5-b. Limit on outside income for members.  1. A member of the legis-
     4  lature receiving a salary for legislative work from  the  state  of  New
     5  York  shall  not,  in  a calendar year, earn outside income for personal
     6  services actually rendered in an amount greater than  forty  percent  of
     7  the  annual salary, as provided by law, of state justices of the supreme
     8  court.
     9    2. (a) For purposes of this section, the term "outside  income"  shall
    10  include  wages,  salaries,  fees, commissions and other forms of compen-
    11  sation for services actually rendered.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14682-01-6
        A. 9535                             2
 
     1    (b) For the purposes of this section, the term "outside income"  shall
     2  not include:
     3    (1) salary, benefits, and allowances paid by the state;
     4    (2)  income  and allowances attributable to service in the reserves of
     5  the armed forces of the United States, national guard, or  other  active
     6  military service;
     7    (3)  capital  gains or payments from a pension, deferred compensation,
     8  or retirement plan;
     9    (4) earnings accrued from prior employment or actual service  rendered
    10  prior  to the member taking office, even if the earnings are not paid or
    11  do not become due until after the person becomes a member;
    12    (5) income derived from investment activities, including investment in
    13  real estate, where the member's services are not a  material  factor  in
    14  the production of income;
    15    (6)  income derived from the profits of a business, firm, corporation,
    16  limited liability company, partnership, or other business entity, due to
    17  the member's ownership interest;
    18    (7) payments from  workers'  compensation  benefits,  social  security
    19  benefits,  death  benefits,  or  other  government  or private insurance
    20  payments;
    21    (8) income or benefits from an inheritance, trust, or  other  transfer
    22  pursuant  to  a  will or similar instrument or by operation of intestacy
    23  laws;
    24    (9) one-time distributions, such as lottery winnings or  court  awards
    25  or settlements, even if paid in installments; or
    26    (10) alimony, maintenance, or child support.
    27    (c)  For  purposes  of determining whether the member's yearly outside
    28  income exceeds the limit established in subdivision one of this section,
    29  a member of the legislature who  earns  income,  including  income  from
    30  commissions  or  contingency  fees,  paid  at one time but based on work
    31  performed on a matter in more than one year may at the member's election
    32  apportion that income over the same number of years going  forward  from
    33  the  date  the  income  was received as the number of years in which the
    34  work was performed.
    35    3. A member of the legislature shall not receive a salary or any other
    36  form of payment  or  compensation  from  a  firm,  corporation,  limited
    37  liability  company,  partnership,  association, or other entity ("firm")
    38  for use of his or her name in the name of the firm  or  on  such  firm's
    39  letterhead,  website  or promotional materials unless the amount of such
    40  payment or compensation is directly related to work  actually  performed
    41  by  the  member  and  the  amount is reasonable when compared to similar
    42  payments customarily charged in the locality  for  similar  services  or
    43  such  payment  or  compensation  is proportionally based on an ownership
    44  interest in the firm held by the member.
    45    4. For members engaged in the  practice  of  law  in  the  state,  the
    46  following shall apply:
    47    (a)  Division  of fees. A member who is engaged in the practice of law
    48  in the state shall not divide a fee  for  legal  services  with  another
    49  lawyer  who  is  not  associated in the same law firm unless such lawyer
    50  performs legal services and the division of fees is in proportion to the
    51  services performed by each lawyer; and
    52    (b) Payment for referrals. (1) A member who is a lawyer who is engaged
    53  in the practice of law  in  the  state  shall  not  compensate  or  give
    54  anything  of  value  to  a person or organization to recommend or obtain
    55  employment by a client, or as a reward for having made a  recommendation
    56  resulting  in  employment  by  a  client;  (2)  A member who is a lawyer
        A. 9535                             3
 
     1  engaged in the practice of law in the state may be recommended, employed
     2  or paid by the following offices or organizations if there is no  inter-
     3  ference with the exercise of independent professional judgment on behalf
     4  of  the  client: a legal aid or public defender office; a military legal
     5  assistance office; a lawyer referral service operated by a  bar  associ-
     6  ation  or  as  authorized  by  law;  and any bona fide organization that
     7  recommends or pays for legal services, in accordance with the  rules  of
     8  professional  conduct  promulgated  by  the  appellate  divisions of the
     9  supreme court.
    10    § 2. The legislative law is amended by adding a  new  section  5-c  to
    11  read as follows:
    12    §  5-c. Conflicts restrictions. 1. A member of the legislature may not
    13  receive income from an ownership  interest  in  any  firm,  corporation,
    14  limited  liability corporation, or partnership that engages in lobbying,
    15  as defined in article one-A of this chapter, that represents clients  in
    16  litigation against the state, that enters into contracts with the state,
    17  or  that appears in matters before the state if the member of the legis-
    18  lature is prohibited by section seventy-three of the public officers law
    19  from engaging in such activity, unless the member of the legislature has
    20  received an opinion from the legislative ethics commission, pursuant  to
    21  article five of this chapter, that directs the member of the legislature
    22  to  take  actions to prevent income from the prohibited activities being
    23  paid to the member of the legislature as part of the  income  from  such
    24  ownership   interest  and  the  legislator  fully  complies  with  those
    25  directions.
    26    2. Any member of the legislature who receives income from an ownership
    27  interest in a firm, corporation, limited liability corporation, or part-
    28  nership shall, within thirty days of taking  office  or  within  fifteen
    29  days of become aware of such income, whichever is later, submit informa-
    30  tion  to  the legislative ethics commission that would allow the commis-
    31  sion to evaluate such income and give the legislator  advice  to  ensure
    32  compliance  with  the  requirements  of sections seventy-three, seventy-
    33  three-a, and seventy-four of the public officers law. The commission may
    34  request further information before issuing its advice.   The  member  of
    35  the  legislature  may  only  retain  such  interest  if the member fully
    36  complies with the advice of the commission.
    37    § 3. Section 14-116 of the election law, subdivision 1 as redesignated
    38  by chapter 9 of the laws of 1978 and subdivision 2 as amended by chapter
    39  260 of the laws of 1981, is amended to read as follows:
    40    § 14-116. Political contributions  by  certain  organizations.  1.  No
    41  corporation  [or], limited liability company, joint-stock association or
    42  other corporate entity doing business in this  state,  except  a  corpo-
    43  ration  or  association  organized  or maintained for political purposes
    44  only, shall directly or indirectly pay or use or offer, consent or agree
    45  to pay or use any money or property for  or  in  aid  of  any  political
    46  party, committee or organization, or for, or in aid of, any corporation,
    47  limited liability company, joint-stock [or], other association, or other
    48  corporate entity organized or maintained for political purposes, or for,
    49  or  in  aid of, any candidate for political office or for nomination for
    50  such  office,  or  for  any  political  purpose  whatever,  or  for  the
    51  reimbursement or indemnification of any person for moneys or property so
    52  used.  Any  officer,  director, stock-holder, member, owner, attorney or
    53  agent of any corporation [or], limited  liability  company,  joint-stock
    54  association  or  other  corporate  entity  which  violates  any  of  the
    55  provisions of this section, who participates in, aids, abets or  advises
    56  or consents to any such violations, and any person who solicits or know-
        A. 9535                             4
 
     1  ingly receives any money or property in violation of this section, shall
     2  be guilty of a misdemeanor.
     3    2.  Notwithstanding the provisions of subdivision one of this section,
     4  any corporation or an organization financially supported in whole or  in
     5  part, by such corporation, any limited liability company or other corpo-
     6  rate  entity  may make expenditures, including contributions, not other-
     7  wise prohibited by law, for political purposes,  in  an  amount  not  to
     8  exceed  five  thousand  dollars  in  the aggregate in any calendar year;
     9  provided that no public utility shall use  revenues  received  from  the
    10  rendition of public service within the state for contributions for poli-
    11  tical purposes unless such cost is charged to the shareholders of such a
    12  public service corporation.
    13    3.  Each limited liability company that makes a contribution for poli-
    14  tical purposes shall file with the state board of elections, by December
    15  thirty-first of the year in which the contribution is made, on the  form
    16  prescribed  by  the state board of elections, the identity of all direct
    17  and indirect owners of the membership interests in the limited liability
    18  company and the proportion of each direct or indirect member's ownership
    19  interest in the limited liability company. Provided that, if by applica-
    20  tion of this subdivision, any direct or indirect owner of any membership
    21  interest is a limited liability company, all owners and  the  proportion
    22  of  their  membership  interests  in  any such limited liability company
    23  shall be further identified.
    24    § 4. Section 14-120 of the election law is amended  by  adding  a  new
    25  subdivision 3 to read as follows:
    26    3. (a) Notwithstanding any law to the contrary, all contributions made
    27  to  a  campaign  or  political  committee by a limited liability company
    28  shall be attributed to each member of the limited liability  company  in
    29  proportion  to  the member's ownership interest in the limited liability
    30  company. Provided that, if, by application of this paragraph, a campaign
    31  contribution  is  attributed  to  any  limited  liability  company,  the
    32  contributions  shall be further attributed proportionally to each direct
    33  or indirect owner of the membership interests of such limited  liability
    34  company.
    35    (b)  The state board of elections shall enact regulations that prevent
    36  the avoidance of the rules set forth in this subdivision.
    37    § 5. The second undesignated paragraph of subdivision (c)  of  section
    38  1-c  of  the legislative law is amended by adding a new subparagraph (R)
    39  to read as follows:
    40    (R) Communications with a professional journalist or newscaster relat-
    41  ing to news, as these terms are defined in section seventy-nine-h of the
    42  civil rights law, and communications relating to confidential  and  non-
    43  confidential  news  as  described in subdivisions (b) and (c) of section
    44  seventy-nine-h of the civil rights law respectively.
    45    § 6. Paragraph 4 of subdivision (c) of section 1-h of the  legislative
    46  law, as added by section 1 of part B of chapter 399 of the laws of 2011,
    47  is amended to read as follows:
    48    (4)  Any lobbyist registered pursuant to section one-e of this article
    49  whose lobbying activity is performed on its own behalf and not  pursuant
    50  to retention by a client[:
    51    (i)]  that has spent over [fifty] five thousand dollars for reportable
    52  compensation and expenses for lobbying either during the calendar  year,
    53  or  during the twelve-month period, prior to the date of this bi-monthly
    54  report[, and
    55    (ii) at least three percent of whose  total  expenditures  during  the
    56  same period were devoted to lobbying in New York]
        A. 9535                             5
 
     1  shall  report to the commission the names of each source of funding over
     2  [five] one thousand dollars from a single source that were used to  fund
     3  the  lobbying  activities  reported  and  the amounts received from each
     4  identified source of funding.
     5    This disclosure shall not require disclosure of the sources of funding
     6  whose  disclosure,  in  the determination of the commission based upon a
     7  review of the relevant facts presented by the  reporting  lobbyist,  may
     8  cause  harm, threats, harassment, or reprisals to the source or to indi-
     9  viduals or property affiliated with the source. The  reporting  lobbyist
    10  may appeal the commission's determination and such appeal shall be heard
    11  by a judicial hearing officer who is independent and not affiliated with
    12  or  employed  by  the commission, pursuant to regulations promulgated by
    13  the commission. The reporting lobbyist shall not be required to disclose
    14  the sources of funding that are the subject of such appeal pending final
    15  judgment on appeal.
    16    The disclosure shall not apply to:
    17    (i) any corporation registered pursuant  to  article  seven-A  of  the
    18  executive  law that is qualified as an exempt organization by the United
    19  States Department of the Treasury under I.R.C. § 501(c)(3);
    20    (ii) any corporation registered pursuant to  article  seven-A  of  the
    21  executive  law that is qualified as an exempt organization by the United
    22  States Department of the Treasury under I.R.C.  §  501(c)(4)  and  whose
    23  primary  activities concern any area of public concern determined by the
    24  commission to create a substantial likelihood that application  of  this
    25  disclosure  requirement  would  lead  to  harm,  threats, harassment, or
    26  reprisals to a source of funding or to individuals  or  property  affil-
    27  iated  with  such source, including but not limited to the area of civil
    28  rights and civil liberties and any other area of public  concern  deter-
    29  mined  pursuant  to  regulations promulgated by the commission to form a
    30  proper basis for exemption on this basis from this  disclosure  require-
    31  ment; or
    32    (iii) any governmental entity.
    33    The  joint commission on public ethics shall promulgate regulations to
    34  implement these requirements.
    35    § 7. Paragraph 4 of subdivision (c) of section 1-j of the  legislative
    36  law, as added by section 2 of part B of chapter 399 of the laws of 2011,
    37  is amended to read as follows:
    38    (4)  Any  client  of a lobbyist that is required to file a semi-annual
    39  report and[:
    40    (i) that] has spent over [fifty] five thousand dollars for  reportable
    41  compensation  and expenses for lobbying either during the calendar year,
    42  or during the twelve-month period, prior to the date of this semi-annual
    43  report[, and
    44    (ii) at least three percent of whose  total  expenditures  during  the
    45  same period were devoted to lobbying in New York]
    46  shall  report to the commission the names of each source of funding over
    47  [five] one thousand dollars from a single source that were used to  fund
    48  the  lobbying  activities  reported  and  the amounts received from each
    49  identified source of funding.
    50    This disclosure shall not require disclosure of the sources of funding
    51  whose disclosure, in the determination of the commission  based  upon  a
    52  review of the relevant facts presented by the reporting client or lobby-
    53  ist,  may cause harm, threats, harassment, or reprisals to the source or
    54  to individuals or property affiliated with  the  source.  The  reporting
    55  lobbyist may appeal the commission's determination and such appeal shall
    56  be heard by a judicial hearing officer who is independent and not affil-
        A. 9535                             6
 
     1  iated  with  or  employed  by  the  commission,  pursuant to regulations
     2  promulgated by the commission.  The  reporting  lobbyist  shall  not  be
     3  required to disclose the sources of funding that are the subject of such
     4  appeal pending final judgment on appeal.
     5    The disclosure shall not apply to:
     6    (i)  any  corporation  registered  pursuant  to article seven-A of the
     7  executive law that is qualified as an exempt organization by the  United
     8  States Department of the Treasury under I.R.C. § 501(c)(3);
     9    (ii)  any  corporation  registered  pursuant to article seven-A of the
    10  executive law that is qualified as an exempt organization by the  United
    11  States  Department  of  the  Treasury under I.R.C. § 501(c)(4) and whose
    12  primary activities concern any area of public concern determined by  the
    13  commission  to  create a substantial likelihood that application of this
    14  disclosure requirement would  lead  to  harm,  threats,  harassment,  or
    15  reprisals  to  a  source of funding or to individuals or property affil-
    16  iated with such source, including but not limited to the area  of  civil
    17  rights  and  civil liberties and any other area of public concern deter-
    18  mined pursuant to regulations promulgated by the commission  to  form  a
    19  proper  basis  for exemption on this basis from this disclosure require-
    20  ment; or
    21    (iii) any governmental entity.
    22    The joint commission on public ethics shall promulgate regulations  to
    23  implement these requirements.
    24    §  8.  Subdivision 3 of section 14-124 of the election law, as amended
    25  by chapter 71 of the laws of 1988, is amended to read as follows:
    26    3. The contribution and receipt limits of this article shall not apply
    27  to monies received and expenditures made by a party committee or consti-
    28  tuted committee to maintain a permanent headquarters and staff and carry
    29  on ordinary activities which are not for the express purpose of  promot-
    30  ing  or  opposing  the  candidacy of specific candidates.  Provided that
    31  such monies described in this subdivision shall be kept in a  segregated
    32  account and shall not be contributed, unless such contribution is to the
    33  segregated  account  of another party committee or constituted committee
    34  to be used only for non-candidate expenditures. Provided, further,  that
    35  such  monies may not be used to pay for any political communication that
    36  includes or references the name, likeness or voice of any clearly  iden-
    37  tified candidate or elected official.
    38    §  9.  This  act shall take effect immediately; provided that sections
    39  one and two of this act shall take effect January 1,  2017;    provided,
    40  further,  that  any  income  or  other  compensation earned prior to the
    41  effective date of sections one and two of this act shall not be  subject
    42  to  the  provisions  of  sections one and two of this act, and provided,
    43  further, any services actually rendered prior to the effective  date  of
    44  sections  one  and  two  of this act for which payment is made after the
    45  effective date of sections one and two of this act shall not be  subject
    46  to the provisions of sections one and two of this act.