STATE OF NEW YORK
________________________________________________________________________
25
2017-2018 Regular Sessions
IN SENATE(Prefiled)
January 4, 2017
___________
Introduced by Sens. HOYLMAN, GIANARIS, KENNEDY, KRUEGER, PERKINS,
RIVERA, SERRANO, STAVISKY -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations
AN ACT to amend the legislative law, in relation to prohibiting members
of the legislature from receiving certain income and establishing the
commission on legislative compensation
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 two new sections
2 5-b and 5-c to read as follows:
3 § 5-b. Prohibition on outside earned income for members. 1. Starting
4 in calendar year two thousand eighteen, a member of the legislature may
5 not have outside earned income attributable to such year which exceeds
6 fifteen percent of the gross annual salary of members of the legisla-
7 ture, pursuant to section five of this article.
8 2. a. For the purposes of this section, the term "outside earned
9 income" includes, but is not limited to, wages, salaries, fees, and
10 other forms of compensation for services actually rendered.
11 b. For the purposes of this section, the term "outside earned income"
12 does not include:
13 (1) salary, benefits, and allowances paid by New York state;
14 (2) income attributable to service with the military reserves or
15 national guard;
16 (3) income from pensions and other continuing benefits attributable to
17 previous employment or services;
18 (4) income from investment activities, where the member's services are
19 not a material factor in the production of income;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05112-01-7
S. 25 2
1 (5) income from a trade or business in which the member or their fami-
2 ly holds a controlling interest, where the member's services are not a
3 material factor in the production of income;
4 (6) copyright royalties, fees, and their functional equivalent, from
5 the use or sale of copyright, patent and similar forms of intellectual
6 property rights, when received from established users or purchasers of
7 those rights; and
8 (7) compensation for services actually rendered prior to January
9 first, two thousand eighteen, or prior to being sworn in as a member of
10 the legislature.
11 3. Notwithstanding any other provisions of law to the contrary,
12 members of the legislature are prohibited from:
13 a. receiving compensation for affiliating with or being employed by a
14 firm, partnership, association, corporation, or other entity that
15 provides professional services involving a fiduciary relationship,
16 except for the practice of medicine;
17 b. permitting their name to be used by such a firm, partnership, asso-
18 ciation, corporation, or other entity;
19 c. receiving compensation for practicing a profession that involves a
20 fiduciary relationship except for the practice of medicine;
21 d. receiving compensation as an officer or member of the board of an
22 association, corporation, or other entity;
23 e. receiving compensation for teaching, without prior notification to
24 and approval from the legislative ethics commission;
25 f. receiving advance payments on copyright royalties, fees, and their
26 functional equivalents.
27 4. A member of the legislature who knowingly and willfully violates
28 the provisions of this section shall be subject to a civil penalty in an
29 amount not to exceed forty thousand dollars. Assessment of a civil
30 penalty shall be made by the legislative ethics commission. The legisla-
31 tive ethics commission, acting pursuant to subdivision eleven of section
32 eighty of the legislative law, may, in lieu of or in addition to a civil
33 penalty, refer a violation to the appropriate prosecutor and upon such
34 conviction, but only after such referral, such violation shall be
35 punishable as a class A misdemeanor.
36 § 5-c. Commission on legislative compensation. 1. On the first of
37 April of every fourth year, commencing April first, two thousand eigh-
38 teen, there shall be established for such year a commission on legisla-
39 tive compensation to examine, evaluate and make recommendations with
40 respect to adequate levels of compensation and non-salary benefits for
41 members of the state legislature. In accordance with the provisions of
42 this section, the commission shall:
43 a. examine the prevailing adequacy of pay levels and non-salary bene-
44 fits received by members of the state legislature and determine whether
45 any of such pay levels warrant adjustment; and
46 b. determine whether, for any of the four years commencing on the
47 first of April of such years, following the year in which the commission
48 is established, the annual salaries for the members of the state legis-
49 lature warrant adjustment.
50 In discharging its responsibilities under paragraphs a and b of this
51 subdivision, the commission shall take into account all appropriate
52 factors including, but not limited to: the overall economic climate;
53 rates of inflation; changes in public-sector spending; the levels of
54 compensation and non-salary benefits received by judges, executive
55 branch officials and legislators of other states and of the federal
56 government; the levels of compensation and non-salary benefits received
S. 25 3
1 by professionals in government, academia and private and nonprofit
2 enterprise; and the state's ability to fund increases in compensation
3 and non-salary benefits.
4 2. The commission shall consist of nine members to be appointed as
5 follows: three shall be appointed by the governor; one shall be
6 appointed by the temporary president of the senate; one shall be
7 appointed by the speaker of the assembly; one shall be appointed by the
8 senate minority leader; one shall be appointed by the assembly minority
9 leader; and two shall be appointed by the state comptroller. The members
10 appointed shall not be employees of the state or any political subdivi-
11 sion thereof. The governor shall designate the chair of the commission
12 from among the members so appointed. Vacancies in the commission shall
13 be filled in the same manner as original appointments. To the extent
14 practicable, members of the commission shall have experience in one or
15 more of the following: determination of executive compensation, human
16 resource administration and financial management.
17 3. The commission may meet within and without the state, may hold
18 public hearings and shall have all the powers of a legislative committee
19 pursuant to this chapter.
20 4. The members of the commission shall receive no compensation for
21 their services but shall be allowed their actual and necessary expenses
22 incurred in the performance of their duties hereunder.
23 5. To the maximum extent feasible, the commission shall be entitled to
24 request and receive and shall utilize and be provided with such facili-
25 ties, resources and data of any court, department, division, board,
26 bureau, commission, agency or public authority of the state or any poli-
27 tical subdivision thereof as it may reasonably request to properly carry
28 out its powers and duties pursuant to this section.
29 6. The commission may request, and shall receive, reasonable assist-
30 ance from state agency personnel as necessary for the performance of its
31 functions.
32 7. The commission shall make a report to the governor, the state comp-
33 troller and the legislature of its findings, conclusions, determinations
34 and recommendations, if any, not later than one hundred fifty days after
35 its establishment. Each recommendation made to implement a determination
36 pursuant to paragraph b of subdivision one of this section shall have
37 the force of law, and shall supersede inconsistent provisions of section
38 five of this article, unless modified or abrogated by statute prior to
39 April first of the year as to which such determination applies.
40 8. Upon the making of its report as provided in subdivision seven of
41 this section, each commission established pursuant to this section shall
42 be deemed dissolved.
43 9. Notwithstanding the provisions of this section or of any other law,
44 each increase in salary or compensation of any member of the legislature
45 provided by this section shall be added to the salary or compensation of
46 such member at the beginning of that payroll period the first day of
47 which is nearest to the effective date of such increase as provided in
48 this section, or at the beginning of the earlier of two payroll periods
49 the first days of which are nearest but equally near to the effective
50 date of such increase as provided in this section; provided, however,
51 the payment of such salary increase pursuant to this section on a date
52 prior thereto instead of on such effective date, shall not operate to
53 confer any additional salary rights or benefits on such member.
54 10. The annual salaries as prescribed pursuant to this section for the
55 members of the state legislature whenever adjusted pursuant to the
S. 25 4
1 provisions of this section, shall be rounded up to the nearest multiple
2 of one hundred dollars.
3 § 2. Subdivision 7 of section 80 of the legislative law is amended by
4 adding a new paragraph f-1 to read as follows:
5 f-1. Promulgate guidelines for members of the legislature to request
6 permission from the commission to accept compensation for teaching, and
7 promulgate guidelines for the commission to evaluate and issue a deter-
8 mination for such requests.
9 § 3. Paragraph (a) of subdivision 9 of section 80 of the legislative
10 law, as amended by section 9 of part A of chapter 399 of the laws of
11 2011, is amended to read as follows:
12 (a) An individual subject to the jurisdiction of the commission with
13 respect to the imposition of penalties who knowingly and intentionally
14 violates the provisions of subdivisions two through five-a, seven,
15 eight, twelve, fourteen or fifteen of section seventy-three of the
16 public officers law or section five-b of the legislative law or a
17 reporting individual who knowingly and wilfully fails to file an annual
18 statement of financial disclosure or who knowingly and wilfully with
19 intent to deceive makes a false statement or gives information which
20 such individual knows to be false on such statement of financial disclo-
21 sure filed pursuant to section seventy-three-a of the public officers
22 law shall be subject to a civil penalty in an amount not to exceed forty
23 thousand dollars and the value of any gift, compensation or benefit
24 received as a result of such violation. Any such individual who knowing-
25 ly and intentionally violates the provisions of paragraph a, b, c, d, e,
26 g, or i of subdivision three of section seventy-four of the public offi-
27 cers law shall be subject to a civil penalty in an amount not to exceed
28 ten thousand dollars and the value of any gift, compensation or benefit
29 received as a result of such violation. Assessment of a civil penalty
30 hereunder shall be made by the commission with respect to persons
31 subject to its jurisdiction. In assessing the amount of the civil penal-
32 ties to be imposed, the commission shall consider the seriousness of the
33 violation, the amount of gain to the individual and whether the individ-
34 ual previously had any civil or criminal penalties imposed pursuant to
35 this section, and any other factors the commission deems appropriate.
36 For a violation of this section, other than for conduct which consti-
37 tutes a violation of subdivision twelve, fourteen or fifteen of section
38 seventy-three or section seventy-four of the public officers law, the
39 legislative ethics commission may, in lieu of or in addition to a civil
40 penalty, refer a violation to the appropriate prosecutor and upon such
41 conviction, but only after such referral, such violation shall be
42 punishable as a class A misdemeanor. Where the commission finds suffi-
43 cient cause, it shall refer such matter to the appropriate prosecutor. A
44 civil penalty for false filing may not be imposed hereunder in the event
45 a category of "value" or "amount" reported hereunder is incorrect unless
46 such reported information is falsely understated. Notwithstanding any
47 other provision of law to the contrary, no other penalty, civil or crim-
48 inal may be imposed for a failure to file, or for a false filing, of
49 such statement, or a violation of subdivision six of section seventy-
50 three of the public officers law, except that the appointing authority
51 may impose disciplinary action as otherwise provided by law. The legis-
52 lative ethics commission shall be deemed to be an agency within the
53 meaning of article three of the state administrative procedure act and
54 shall adopt rules governing the conduct of adjudicatory proceedings and
55 appeals taken pursuant to a proceeding commenced under article seventy-
56 eight of the civil practice law and rules relating to the assessment of
S. 25 5
1 the civil penalties herein authorized. Such rules, which shall not be
2 subject to the promulgation and hearing requirements of the state admin-
3 istrative procedure act, shall provide for due process procedural mech-
4 anisms substantially similar to those set forth in such article three
5 but such mechanisms need not be identical in terms or scope. Assessment
6 of a civil penalty shall be final unless modified, suspended or vacated
7 within thirty days of imposition, with respect to the assessment of such
8 penalty, or unless such denial of request is reversed within such time
9 period, and upon becoming final shall be subject to review at the
10 instance of the affected reporting individuals in a proceeding commenced
11 against the legislative ethics commission, pursuant to article seventy-
12 eight of the civil practice law and rules.
13 § 4. This act shall take effect January 1, 2018.
