S01543 Summary:

BILL NOS01543
 
SAME ASSAME AS A03738
 
SPONSORKAMINSKY
 
COSPNSR
 
MLTSPNSR
 
Amd 73, Pub Off L; amd 2825, Pub Auth L; amd 800 & 801, Gen Muni L
 
Prohibits certain persons from receiving compensation for legal fees, consulting, or other work performed for an industrial development agency, an economic assistance corporation or state or local authority.
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S01543 Actions:

BILL NOS01543
 
01/13/2021REFERRED TO ETHICS AND INTERNAL GOVERNANCE
01/25/20211ST REPORT CAL.184
01/26/20212ND REPORT CAL.
02/01/2021ADVANCED TO THIRD READING
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S01543 Committee Votes:

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S01543 Floor Votes:

There are no votes for this bill in this legislative session.
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S01543 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          1543
 
                               2021-2022 Regular Sessions
 
                    IN SENATE
 
                                    January 13, 2021
                                       ___________
 
        Introduced  by Sen. KAMINSKY -- read twice and ordered printed, and when
          printed to be committed to the Committee on Ethics and Internal Gover-
          nance
 
        AN ACT to amend the public officers law, the public authorities law  and
          the  general municipal law, in relation to prohibiting certain persons
          from receiving compensation for legal fees, consulting, or other  work
          performed for an industrial development agency, an economic assistance
          corporation, or from a state or local authority
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1.  Subdivision 1 of section 73 of the public officers law  is
     2  amended by adding two new paragraphs (n) and (o) to read as follows:
     3    (n) the term "corporation" shall have the same meaning as such term is
     4  defined in section one hundred two of the business corporation law.
     5    (o)  the  term "limited liability company" shall have the same meaning
     6  as such term is defined in  section  one  hundred  two  of  the  limited
     7  liability company law.
     8    §  2.  Subdivision  18  of  section  73 of the public officers law, as
     9  amended by section 5 of part CC of chapter 56 of the laws  of  2015,  is
    10  amended to read as follows:
    11    18.   No statewide elected official, state officer or employee, member
    12  of the legislature, legislative employee or political party chairman  as
    13  defined in this section and section seventy-three-a of this article who:
    14  (i)  owns  or  controls directly or indirectly ten per centum or more of
    15  stock in a corporation or limited liability company;  or  (ii)  owns  or
    16  controls  ten  per centum or more of the capital, profits, or beneficial
    17  interest in a partnership or firm, shall receive compensation for  legal
    18  fees,  consulting,  or  any  other contractual expenditure for services,
    19  whether actually performed or not, from a state or  local  authority  as
    20  defined in section two of the public authorities law.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01248-02-1

        S. 1543                             2
 
     1    19.  In  addition  to  any penalty contained in any other provision of
     2  law, any person who knowingly and intentionally violates the  provisions
     3  of subdivisions two through five, seven, seven-a, eight, twelve or four-
     4  teen  through [seventeen] eighteen of this section shall be subject to a
     5  civil  penalty in an amount not to exceed forty thousand dollars and the
     6  value of any gift, compensation or benefit received in  connection  with
     7  such violation. Assessment of a civil penalty hereunder shall be made by
     8  the  state  oversight  body  with jurisdiction over such person. A state
     9  oversight body acting pursuant to its jurisdiction, may, in  lieu  of  a
    10  civil  penalty,  with respect to a violation of subdivisions two through
    11  five, seven or eight of this section, refer  a  violation  of  any  such
    12  subdivision  to the appropriate prosecutor and upon such conviction such
    13  violation shall be punishable as a class A misdemeanor.
    14    § 3. Subdivision 1 of section 2825 of the public authorities  law,  as
    15  amended  by  chapter  766  of  the  laws  of 2005, is amended to read as
    16  follows:
    17    1. No public officer or employee shall be ineligible  for  appointment
    18  as a trustee or member of the governing body of a state or local author-
    19  ity,  as  defined in section two of this chapter, and any public officer
    20  or employee may accept such appointment and serve  as  such  trustee  or
    21  member  without  forfeiture  of  any  other public office or position of
    22  public employment by reason thereof.  Provided, additionally  no  state-
    23  wide elected official, state officer or employee, member of the legisla-
    24  ture,  legislative  employee  or  political party chairman as defined in
    25  sections seventy-three and seventy-three-a of the  public  officers  law
    26  who:  (i) owns or controls directly or indirectly ten per centum or more
    27  of stock in a corporation or limited liability company; or (ii) owns  or
    28  controls  ten  per centum or more of the capital, profits, or beneficial
    29  interest in a partnership or firm, shall receive compensation for  legal
    30  fees,  consulting,  or  any  other contractual expenditure for services,
    31  whether actually performed or not, from a state or local authority.  For
    32  the  purpose  of this subdivision, the term "corporation" shall have the
    33  same meaning as such term is defined in section one hundred two  of  the
    34  business  corporation law and the term "limited liability company" shall
    35  have the same meaning as such term is defined in section one hundred two
    36  of the limited liability company law.
    37    § 4. Section 800 of the general municipal law is amended by adding two
    38  new subdivisions 7 and 8 to read as follows:
    39    7. "Corporation" has the same meaning  as  such  term  is  defined  in
    40  section one hundred two of the business corporation law.
    41    8.  "Limited  liability  company" has the same meaning as such term is
    42  defined in section one hundred two of the limited liability company law.
    43    § 5. Section 801 of the general municipal law, as amended  by  chapter
    44  1043 of the laws of 1965, is amended to read as follows:
    45    § 801. Conflicts of interest prohibited. Except as provided in section
    46  eight  hundred two of this chapter, (1) no municipal officer or employee
    47  shall have an interest in any contract with the municipality of which he
    48  is an officer or employee, when such officer or  employee,  individually
    49  or  as  a  member  of  a  board, has the power or duty to (a) negotiate,
    50  prepare, authorize or approve  the  contract  or  authorize  or  approve
    51  payment  thereunder (b) audit bills or claims under the contract, or (c)
    52  appoint an officer or employee who has any of the powers or  duties  set
    53  forth above [and], (2) no chief fiscal officer, treasurer, or his deputy
    54  or  employee,  shall  have an interest in a bank or trust company desig-
    55  nated as a depository, paying agent, registration agent or  for  invest-
    56  ment of funds of the municipality of which he is an officer or employee,

        S. 1543                             3
 
     1  and  (3) no municipal officer who (a) owns or controls directly or indi-
     2  rectly ten percent or more of stock in a corporation or limited  liabil-
     3  ity company, or (b) owns or controls ten percent or more of the capital,
     4  profits,  or beneficial interest in a partnership or firm, shall receive
     5  compensation for  legal  fees,  consulting,  or  any  other  contractual
     6  expenditure  for  services,  whether  actually  performed or not, from a
     7  state or local authority as defined in section two of the public author-
     8  ities law.   The provisions  of  this  section  shall  in  no  event  be
     9  construed  to  preclude the payment of lawful compensation and necessary
    10  expenses of any municipal officer or employee in one or  more  positions
    11  of public employment, the holding of which is not prohibited by law.
    12    § 6. This act shall take effect immediately.
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