Enacts the Budget Reform Act of 2003 making various amendments to the budget process; enacts the Lobby Law Reform Act of 2003 amending the definition of lobbying in relation to various actions in the awarding and procurement of state contracts and makes changes to the NYS temporary state commission on lobbying; enacts the Ethics Law Reform Act of 2003 amending the current legislative ethics committee to be a commission and makes various changes thereto; enacts the Campaign Finance Improvement Act of 2003 relating to prohibiting political contributions by labor unions, receipts, contributions, or transfers and expenditures to and by political committees and, prohibits participation by legislative members in fundraising activities during the legislative session; creates the Temporary State Commission on Judicial Accountability and Reform relating to investigations of judicial misconduct.
STATE OF NEW YORK
________________________________________________________________________
5680
2003-2004 Regular Sessions
IN SENATE
June 19, 2003
___________
Introduced by Sens. FLANAGAN, PADAVAN, MENDEZ -- (at request of the
Governor) -- read twice and ordered printed, and when printed to be
committed to the Committee on Rules
AN ACT to amend the state finance law and the legislative law, in
relation to enacting the budget reform act of 2003 and making various
amendments to the budget process (Part A); to amend the legislative
law and chapter 2 of the laws of 1999, amending the legislative law
relating to enacting the lobbying act, in relation to enacting the
lobbying law reform act of 2003, amending the definition of lobbying
in relation to various actions in the awarding and procurement of
state contracts, making changes to the New York temporary state
commission on lobbying (Part B); to amend the legislative law, the
public officers law, and the executive law, in relation to enacting
the ethics law reform act of 2003, amending the current legislative
ethics committee to be a commission and making various changes there-
to, and imposing a civil penalty for violations of the code of ethics
for public officers (Part C); to amend the election law, in relation
to enacting the campaign finance improvement act of 2003, relating to
prohibiting political contributions by labor unions, receipts,
contributions, or transfers and expenditures to and by political
committees, prohibiting participation by legislative members in
fundraising activities during the legislative session (Part D); and
establishing the temporary state commission on judicial accountability
and reform, relating to investigations of judicial misconduct and
providing for a report and recommendations thereon to the governor and
legislature by February 1, 2004 (Part E)
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. This act enacts into law major components of law which are
2 necessary to provide much needed reform to the way that government is
3 conducted in New York state. This act as a whole may be known and cited
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD12091-02-3
S. 5680 2
1 as the Omnibus Reform Act of 2003. Each component is wholly contained
2 within a Part identified as Parts A though E. The effective date for
3 each provision contained within such Part is set forth in the last
4 section of such Part. Any provision in any section contained within a
5 Part, including the effective date of the Part, which makes reference to
6 a section "of this act", when used in connection with that particular
7 component, shall be deemed to mean and refer to the corresponding
8 section of the Part in which it is found. Section three of this act sets
9 forth the general effective date of this act.
10 PART A
11 Section 1. This act shall be known and may be cited as the "Budget
12 Reform Act of 2003".
13 § 2. Subdivisions 3 and 6 of section 23 of the state finance law,
14 subdivision 3 as amended by chapter 837 of the laws of 1983, and subdi-
15 vision 6 as added by chapter 309 of the laws of 1996, are amended to
16 read as follows:
17 3. Financial plans and capital improvement program; revisions. As
18 soon as practicable after the legislature has completed action on the
19 budget bills submitted by the governor [for state purposes, local
20 assistance, capital projects and debt service], or after a default budg-
21 et becomes a law, the governor shall cause to be submitted to the legis-
22 lature the revisions to the financial plans and the capital plan
23 required by subdivisions one, two, four and five of section twenty-two
24 of this [chapter] article as are necessary to account for all enactments
25 affecting the financial plans and the capital plan. Such revised plans
26 shall be submitted to the legislature in the same form as the plans
27 required by such subdivisions.
28 6. Consensus economic and revenue forecasting conference; report. (a)
29 In the month of [March] February in each year, prior to the report
30 required by paragraph (b) of this subdivision, the chairperson and rank-
31 ing minority member of the senate finance committee, the chairperson and
32 ranking minority member of the assembly ways and means committee and the
33 director of the budget shall jointly convene a consensus economic and
34 revenue forecasting conference in the form of a joint legislative-execu-
35 tive hearing, for the purpose of assisting the governor and the legisla-
36 ture in reaching the consensus revenue forecast required by paragraph
37 (b) of this subdivision. The conveners of the conference shall invite
38 the state comptroller and such other participants to the conference as
39 shall, in their judgment, provide guidance on the current conditions in,
40 and probable outlook for the performance of, the economy of the state,
41 as well as the effect of such conditions and such performance on state
42 receipts.
43 (b) On or before March [tenth] first in each year, the director of the
44 budget and the secretary of the senate finance committee and the secre-
45 tary of the assembly ways and means committee shall issue a joint report
46 containing a consensus forecast of the economy and of receipts for the
47 current and the ensuing state fiscal year. The report shall include, but
48 shall not be limited to, the following information, presented on the
49 cash basis of accounting: expected tax receipts on an all-funds basis,
50 projected lottery receipts, and anticipated miscellaneous receipts to be
51 received in the general fund.
52 (c) On a failure of the director of the budget, the secretary of the
53 senate finance committee and the secretary of the assembly ways and
54 means committee to issue a joint report containing a consensus forecast
S. 5680 3
1 as provided in paragraph (b) of this subdivision, the state comptroller
2 shall, on or before March fifth, provide estimates of receipts for the
3 current and the ensuing state fiscal year. Such estimates shall include,
4 but not be limited to, expected tax receipts on an all-funds basis,
5 projected lottery receipts, and miscellaneous receipts to be received in
6 the general fund. The estimate of receipts for the ensuing fiscal year
7 provided by the state comptroller, shall be all receipts from such
8 sources available to make disbursements authorized by the appropriation
9 bills submitted by the governor pursuant to section three of article
10 seven of the constitution for the ensuing fiscal year.
11 (d) In any fiscal year in which a default budget takes effect pursuant
12 to section four of article seven of the state constitution, the consen-
13 sus forecast derived pursuant to paragraph (b) of this subdivision or,
14 in the case such forecast is not issued, the estimate provided by the
15 state comptroller pursuant to paragraph (c) of this subdivision shall be
16 the estimate of such receipts which shall be all receipts from such
17 sources described in this subdivision available to make disbursements
18 authorized by the default budget for the fiscal year for which the
19 default budget is in effect.
20 § 3. The legislative law is amended by adding a new section 54-a to
21 read as follows:
22 § 54-a. Conference committees on the budget. On or before March first
23 in any year when the legislature shall have failed by such date to
24 finally act upon the appropriation bills submitted by the governor
25 pursuant to article seven of the constitution, the temporary president
26 of the senate and the speaker of the assembly shall jointly appoint and
27 charge one or more joint conference committees on the budget in accord-
28 ance with procedures set forth in permanent joint rules of the senate
29 and assembly.
30 In any year in which one or more such committees are appointed, each
31 committee shall issue its report on the budget no later than March
32 fifteenth. Each report shall include the estimated impact of any
33 proposed modifications or revisions to the executive budget or any law
34 that affect receipts or disbursements for the ensuing and next two
35 succeeding fiscal years.
36 § 4. The opening paragraph of section 54 of the legislative law is
37 designated subdivision 1 and three new subdivisions 2, 3 and 4 are added
38 to read as follows:
39 2. When both houses are in agreement and prepared to finally act on
40 the appropriation bills submitted by the governor in accordance with
41 article seven of the constitution, each house shall place on the desks
42 of its members appropriation bills and related legislation as amended, a
43 jointly prepared legislative summary report, and a summary report
44 prepared by the division of the budget preceding final action on such
45 bills.
46 3. The jointly prepared legislative summary report to be placed on the
47 desks of its members shall be furnished to the division of the budget no
48 later than March fifteenth and shall include for the general fund a
49 complete itemization of proposed legislative changes for the ensuing
50 fiscal year and the two subsequent fiscal years. Such report shall
51 clearly and separately identify and present all legislative additions,
52 reestimates and other revisions that increase or decrease disbursements,
53 and shall clearly and separately identify and present all legislative
54 additions, reestimates and other revisions that increase or decrease
55 resources. Such report shall further display and separately identify and
S. 5680 4
1 present all legislative additions, reestimates, and other revisions that
2 increase or decrease all funds spending.
3 4. The summary report prepared by the division of the budget shall be
4 submitted to each house not later than five days after receipt of the
5 jointly prepared legislative summary report as required by subdivision
6 three of this section. The summary report prepared by the division of
7 the budget shall be in such a form as to indicate that the budget as
8 amended provides that, for the general fund, the total of anticipated
9 disbursements, including transfers to other funds, is not greater than
10 the total of anticipated receipts, including transfers from other funds,
11 plus any balance available in such fund. The summary report shall
12 further describe the impact of proposed legislative amendments on the
13 receipt and disbursement estimates contained in the executive budget for
14 such fiscal year and for the succeeding two fiscal years. The summary
15 report shall include, at a level of detail sufficient to facilitate
16 comparison, a summary and explanation of the significant differences
17 with the projections contained in the legislative summary report.
18 The legislature shall enact a budget that is balanced in the general
19 fund.
20 Pursuant to section twenty-two of the state finance law, as amended,
21 the division of the budget shall prepare an enacted budget financial
22 plan on a cash basis of accounting. If the enacted budget financial plan
23 is not in balance on a cash basis of accounting in the general fund, the
24 division of the budget shall identify and describe the significant items
25 and actions that have caused the imbalance, and, not later than five
26 days after the issuance of the enacted budget financial plan, the comp-
27 troller shall review and evaluate those items and actions identified in
28 such plan as causing the budget to be out of balance in the general
29 fund, and shall issue an opinion thereon.
30 In rendering an opinion on the enacted budget financial plan, the
31 comptroller shall give due consideration to the inherent risks in finan-
32 cial plan projections and the compelling interest of the state to main-
33 tain budget balance throughout the fiscal year.
34 In the event the comptroller finds that there are reasonable grounds
35 for concluding that the items and actions identified by the division of
36 the budget will contribute to an imbalance in the general fund during
37 the fiscal year, the governor shall be authorized to act to ensure that
38 anticipated aggregate general fund disbursements for the fiscal year
39 shall not exceed anticipated aggregate general fund receipts for the
40 fiscal year. To fulfill the requirements of this section, the governor,
41 in addition to all other powers conferred on him by the state constitu-
42 tion and state law, shall have the power to (a) transfer, in excess of
43 any limitation otherwise provided by law, any appropriation, or portion
44 thereof, for any object or purpose to another object or purpose to meet
45 contractual requirements for which appropriations contained in the budg-
46 et enacted the legislature are not sufficient to meet such requirements;
47 (b) reduce by a uniform percentage all appropriations from the general
48 fund, or portions thereof, not necessary to meet contractual require-
49 ments or other requirements established by state or federal law; (c)
50 modify the operation of any law governing the apportionment and the
51 allocation of appropriations, or part thereof, if the operation of such
52 law, or part thereof, requires disbursements for an object or purpose
53 during the fiscal year in excess of disbursements for such object or
54 purpose required by the operation of law for the immediately preceding
55 fiscal year.
S. 5680 5
1 § 5. The legislative law is amended by adding a new section 54-b to
2 read as follows:
3 § 54-b. Votes on revenue actions of fifty million dollars or more. 1.
4 For the purpose of ascertaining when a vote by the legislature is
5 subject to the provisions of section twenty of article three of the
6 constitution, and for the purposes of this section, the term "tax or
7 other revenue source" refers to any tax, assessment, charge, fee or
8 similar levy imposed by the state, provided, however, that to the extent
9 that the following shall apply to any tax, assessment, charge, fee or
10 similar levy imposed by the state, they shall not be included within the
11 meaning of such term for such purpose:
12 a. a change in the date or dates of payment or for the remittance of
13 collections thereof by any agency of the state;
14 b. a change in the rate or rates of interest for payments or liabil-
15 ities which may be due and owed but have not been paid;
16 c. any provision for penalties to be imposed against persons liable
17 for payment;
18 d. provisions affecting or amending the authorization for collection,
19 administration and enforcement or procedures pertaining thereto;
20 e. an authorization for one or more municipalities to locally impose,
21 administer, or enforce a tax, assessment, charge, fee or other similar
22 levy; and
23 f. an extension of an existing or expired provision.
24 2. Prior to the consideration of any bill that would increase any
25 individual tax or other revenue item, the legislature and the governor
26 shall agree on a revenue estimate associated with such proposed increase
27 on a cash basis of accounting, for all governmental funds, if applica-
28 ble. The revenue estimate for each such proposed increase shall be esti-
29 mated for the first full twelve month period such increase is to take
30 effect. In the case where such increase is proposed to remain in effect
31 for a period less than twelve months, the revenue estimate shall be
32 annualized. If the annual or annualized estimate of the increase so
33 agreed upon equals or exceeds fifty million dollars, such estimate shall
34 be conclusive with respect to the applicability of the requirements of
35 section twenty of article three of the constitution and shall not be
36 subject to judicial review. The legislature and the governor shall
37 jointly produce a report summarizing such estimates before the legisla-
38 ture shall act upon any bill containing any tax or other revenue item.
39 § 6. Subdivisions 2, 3 and 4 of section 92 of the state finance law,
40 as separately amended by chapters 405 and 957 of the laws of 1981, are
41 amended and two new subdivisions 6 and 7 are added to read as follows:
42 2. The aggregate amount disbursed from the general fund during the
43 fiscal year shall constitute the norm for such fiscal year of the amount
44 of revenues from such taxes, fees and other sources, and the term
45 "norm," as used in this section, shall mean such aggregate amount,
46 provided, however, that for the purposes of subdivision seven of this
47 section, the aggregate amount projected to be disbursed from the general
48 fund during the fiscal year immediately following the then-current
49 fiscal year shall constitute the norm for such fiscal year of the
50 projected amount of revenues from taxes, fees, and other sources
51 expected to be available during the fiscal year immediately following
52 the then-current fiscal year.
53 3. At the close of each fiscal year any cash surplus remaining in the
54 general fund over and above the norm for such fiscal year shall be
55 transferred from or retained in such fund as hereinafter in this subdi-
56 vision provided. There shall be transferred to the tax stabilization
S. 5680 6
1 reserve fund all of such surplus moneys, up to and including an amount
2 equivalent to [two-tenths] five-tenths of one per centum of such norm,
3 unless such transfer would increase such reserve fund to an amount in
4 excess of [two] five per centum of the amount of the norm for such
5 fiscal year, in which event such transfer shall be limited to such
6 amount as will increase such reserve fund to such [two] five per centum
7 limitation. Any balance of such surplus moneys, thereafter remaining in
8 the general fund, shall be retained in such fund and be available for
9 the reduction of state taxes.
10 4. In the event that at the close of any fiscal year the receipts
11 derived from the taxes, fees and other sources, required to be paid
12 during such fiscal year into the general fund of the state shall fall
13 below the norm for such fiscal year, there shall be transferred from the
14 tax stabilization reserve fund to the general fund to the extent that
15 there are sufficient moneys in the tax stabilization reserve fund, an
16 amount equal to the difference between the norm and the amount of such
17 receipts. If such transfer reduces the tax stabilization reserve fund to
18 an amount less than [two] five per centum of the norm for such fiscal
19 year, the amount so transferred shall be repaid in cash prior to the
20 computation and payment of any transfer to the fund pursuant to subdivi-
21 sion three of this section in not less than three equal annual install-
22 ments within the period of six years or less next succeeding the date of
23 such transfer; provided, however, that if any such annual installment
24 shall increase such reserve fund to an amount in excess of [two] five
25 per centum of the amount of the norm for the then current fiscal year,
26 such installment shall be limited to such amount as will increase such
27 reserve fund to such two per centum limitation and no further repayment
28 of the whole or any part of such transfer shall be required in any
29 subsequent fiscal year. Repayments to the tax stabilization reserve fund
30 shall be stipulated in annual budget bills.
31 6. The commissioner of labor shall calculate and publish, on or before
32 the fifteenth day of each month, a composite index of business cycle
33 indicators. Such index shall be calculated using monthly data on New
34 York state employment, total manufacturing hours worked, and unemploy-
35 ment prepared by the department of labor or its successor agency, and
36 total retail sales prepared by the department of taxation and finance or
37 its successor agency. Such index shall be constructed in accordance with
38 the procedures for calculating composite indexes issued by the confer-
39 ence board or its successor organization, and adjusted for seasonal
40 variations in accordance with the procedures issued by the census bureau
41 of the United States department of commerce or its successor agency.
42 7. If the composite index described in subdivision six of this section
43 declines for five consecutive months, the commissioner of labor shall
44 notify the governor, the speaker of the assembly, the temporary presi-
45 dent of the senate, and the minority leaders of both houses. Upon such
46 notification, the director of the budget may authorize and direct the
47 comptroller to transfer from the tax stabilization reserve fund to the
48 general fund such amounts as the director of the budget deems necessary
49 to meet the requirements of the state financial plan, provided, however,
50 that the amounts transferred pursuant to this subdivision shall not (a)
51 exceed the difference between the norm and the projected level of reven-
52 ues from taxes, fees, and other sources as defined for the purposes of
53 this subdivision and (b) reduce the balance in the tax stabilization
54 reserve fund to an amount less than two percent of the norm as defined
55 for the purposes of this subdivision.
S. 5680 7
1 Prior to authorizing any transfer from the tax stabilization reserve
2 fund pursuant to the provisions of this section, the director of the
3 budget shall notify the governor, the speaker of the assembly, the
4 temporary president of the senate, and the minority leaders of both
5 houses. Such letter shall specify the reasons for the transfer and the
6 amount thereof. Any amounts transferred from the tax stabilization
7 reserve fund to the general fund shall be subject to all the repayment
8 provisions of this section.
9 The authority to transfer funds under the provisions of this subdivi-
10 sion shall lapse when the composite index shall have increased for five
11 consecutive months or twelve months from the original notification of
12 the commissioner of labor, whichever occurs earlier.
13 § 7. This act shall take effect immediately, provided, however, that
14 sections two and three of this act shall take effect January 1, 2004;
15 section five of this act shall take effect on the same date as the
16 CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY proposing an amendment
17 to section 20 of article 3 of the constitution, in relation to requiring
18 two-thirds assent of each house of the legislature for the increase of
19 revenues; and section six of this act shall take effect three years
20 after it shall have become law.
21 PART B
22 Section 1. This act shall be known and may be cited as the "Lobbying
23 Law Reform Act of 2003".
24 § 2. Subdivision (c) of section 1-c of the legislative law, as added
25 by chapter 2 of the laws of 1999, is amended to read as follows:
26 (c) The term "lobbying" or "lobbying activities" shall mean (i) any
27 attempt to influence the passage or defeat of any legislation by either
28 house of the state legislature or the approval or disapproval of any
29 legislation by the governor, or the adoption or rejection of any rule or
30 regulation having the force and effect of law or the outcome of any rate
31 making proceeding by a state agency, or (ii) any attempt to influence
32 the passage or defeat of any local law, ordinance or regulation by any
33 municipality or subdivision thereof or the adoption or rejection of any
34 rule or regulation having the force and effect of a local law, ordinance
35 or regulation or any rate making proceeding by any municipality or
36 subdivision thereof, or (iii) the awarding, denial, approval or disap-
37 proval of any contract or other agreement for the purchase of goods or
38 services by a state agency, municipal agency, local legislative body,
39 the state legislature or the unified court system or contract or other
40 agreement for the purchase, sale or lease of real property or the acqui-
41 sition or granting of other property interest in real property by a
42 state agency, municipal agency, local legislative body, the state legis-
43 lature or the unified court system. The term "lobbying" shall not
44 include:
45 (1) Persons engaged in: (a) drafting legislation, rules, regulations
46 [or], rates, contracts or other agreements, or written materials relat-
47 ing thereto, for the purchase of goods or services by a state agency,
48 municipal agency, local legislative body, the state legislature or the
49 unified court system, or contracts or other agreements, or written mate-
50 rials relating thereto, for the purchase, sale or lease of real property
51 or the acquisition or granting of other property interest in real prop-
52 erty by a state agency, municipal agency, local legislative body, the
53 state legislature or the unified court system, (b) advising clients and
54 rendering opinions on proposed legislation, rules, regulations [or],
S. 5680 8
1 rates, contracts or other agreements, or written materials relating
2 thereto, for the purchase of goods or services by a state agency, munic-
3 ipal agency, local legislative body, the state legislature or the
4 unified court system, or contracts or other agreements, or written mate-
5 rials relating thereto, for the purchase, sale or lease of real property
6 or the acquisition or granting of other property interest in real prop-
7 erty by a state agency, municipal agency, local legislative body, the
8 state legislature or the unified court system, where such professional
9 services are not otherwise connected with legislative or executive
10 action on such legislation, or administrative action on such rules,
11 regulations or rates, or influencing the awarding, denial, approval or
12 disapproval of contracts or other agreements, or materials relating
13 thereto, for the purchase of goods or services by a state agency, munic-
14 ipal agency, local legislative body, the state legislature or the
15 unified court system, or contracts or other agreements, or written mate-
16 rials relating thereto, for the purchase, sale or lease of real property
17 or the acquisition or granting of other property interest in real prop-
18 erty by a state agency, municipal agency, local legislative body, the
19 state legislature or the unified court system;
20 (2) Newspapers and other periodicals and radio and television
21 stations, and owners and employees thereof, provided that their activ-
22 ities in connection with proposed legislation, rules, regulations [or],
23 rates or contracts or other agreements for the purchase of goods or
24 services by a state agency, municipal agency, local legislative body,
25 the state legislature or the unified court system or contracts or other
26 agreements for the purchase, sale or lease of real property or the
27 acquisition or granting of other property interest in real property by a
28 state agency, municipal agency, local legislative body, the state legis-
29 lature or the unified court system, are limited to the publication or
30 broadcast of news items, editorials or other comment, or paid advertise-
31 ments;
32 (3) Persons who participate as witnesses, attorneys or other represen-
33 tatives in public rule making or rate making proceedings of a state or
34 municipal agency, with respect to all participation by such persons
35 which is part of the public record thereof and all preparation by such
36 persons for such participation;
37 (4) Persons who attempt to influence a state or municipal agency in an
38 adjudicatory proceeding, as adjudicatory proceeding is defined by
39 section one hundred two of the state administrative procedure act;
40 (5) Persons who prepare or submit a response to a request for informa-
41 tion or comments by the state legislature, the governor, or a state
42 agency or a committee or officer of the legislature or a state agency or
43 by a legislative or executive body or officer of a municipality or a
44 commission, committee or officer of a municipal legislative or executive
45 body; [and]
46 (6) Any attempt by a church, its integrated auxiliary, or a convention
47 or association of churches that is exempt from filing a Federal income
48 tax return under paragraph 2(A)(i) of section 6033(a) of Title 26 of the
49 United States Code or a religious order that is exempt from filing a
50 Federal income tax return under paragraph (2)(A)(iii) of such section
51 6033(a) to influence passage or defeat of a local law, ordinance or
52 regulation or any rule or regulation having the force and effect of a
53 local law, ordinance or regulation[.];
54 (7) (a) Contractors or prospective contractors who communicate with or
55 appear before state or local contracting officers or employees in the
56 regular course of procurement planning, contract development, the
S. 5680 9
1 contractor selection process, the administration of a contract, or the
2 audit of a contract, when such communications or appearances are made by
3 such contractors or prospective contractors personally, or through:
4 (i) such officers and employees of the contractor or prospective
5 contractor who are charged with the performance of functions relating to
6 contracts;
7 (ii) subcontractors or prospective subcontractors who are or will be
8 engaged in the delivery of goods, services or construction pursuant to
9 the contract of such officers and employees of the subcontractor or
10 prospective subcontractor who are charged with the performance of func-
11 tions relating to contracts; or
12 (iii) persons who provide technical or professional services, as
13 defined in subparagraph (b) of this paragraph on behalf of such contrac-
14 tor, prospective contractor, subcontractor or prospective subcontractor.
15 (b) For the purposes of subparagraph (a) of this paragraph:
16 (i) "technical services" shall be limited to advice and analysis
17 directly applying any engineering, scientific, or other similar techni-
18 cal discipline;
19 (ii) "professional services" shall be limited to advice and analysis
20 directly applying any legal, accounting or other similar professional
21 discipline in connection with the following elements of the procurement
22 process only: dispute resolution, vendor protests, responsiveness and
23 responsibility determinations, determinations of prequalification,
24 suspensions, debarments, contract interpretation, negotiation of
25 contract terms after the award of a contract, defaults, the termination
26 of contracts and audit of contracts. Any person who provides profes-
27 sional services pursuant to this clause in connection with elements of
28 the procurement process not specified above in this item, whether prior
29 to, in connection with or after the award of a contract, shall be deemed
30 to be engaged in lobbying activities, unless such person is deemed not
31 to be engaged in lobbying activities under another provision of this
32 paragraph; and
33 (8) Communicating with public officials on contracts or other agree-
34 ments for the purchase of materials or services by any state or local
35 agency, or contracts or other agreements for the purchase, lease or
36 other property interest in real property by any state or local agency
37 where those public officials:
38 (a) do not have the power to make a determination regarding the award-
39 ing of a contract or other agreement for the purchase of materials or
40 services by any state or local agency or a contract or other agreement
41 for the purchase, lease or other property interest in real property by
42 any state or local agency,
43 (b) are not in a position within the agency to influence the outcome
44 of the awarding of a contract or other agreement for the purchase of
45 materials or services by any state or local agency or a contract or
46 other agreement for the purchase, lease or other property interest in
47 real property by any state or local agency, or
48 (c) are not duly authorized to enter into and administer a contract or
49 other agreement for the purchase of materials or services by any state
50 or local agency or a contract or other agreement for the purchase, lease
51 or other property interest in real property by any state or local agen-
52 cy.
53 § 3. Section 1-c of the legislative law, as added by chapter 2 of the
54 laws of 1999, is amended by adding two new subdivisions (m) and (n) to
55 read as follows:
S. 5680 10
1 (m) The term "municipal agency" shall mean any department, board,
2 bureau, commission, division, office, council, committee or officer of a
3 municipality, whether permanent or temporary, or a public benefit corpo-
4 ration or public authority of a municipality, authorized by law to make
5 rules or to make final decisions in adjudicatory proceedings, but shall
6 not include the judicial branch.
7 (n) The term "local legislative body" shall mean the board of supervi-
8 sors, board of aldermen, common council, council, commission, town
9 board, board of trustees or other elective governing board or body of a
10 municipality now or hereafter vested by state statute, charter or other
11 law with jurisdiction to initiate and adopt local laws and ordinances,
12 whether or not such local laws or ordinances require approval of the
13 elective chief executive officer or other official or body to become
14 effective.
15 4. Subdivision (a) of section 1-d of the legislative law, as added by
16 chapter 2 of the laws of 1999, is amended to read as follows:
17 (a) There shall be established a commission to be known as the New
18 York [temporary] state commission on lobbying which shall consist of
19 [six] eight members. The members of the commission shall be appointed
20 [by the governor, provided, however, that] as follows: four members
21 appointed by the governor, one member shall be appointed [on nomination
22 of] by the temporary president of the senate, one member shall be
23 appointed [on nomination of] by the speaker of the assembly, one member
24 shall be appointed [on nomination of] by the minority leader of the
25 senate, and one member shall be appointed [on nomination of] by the
26 minority leader of the assembly. Of the [two] four members appointed by
27 the governor [without prior nomination by a legislative leader,] one
28 shall be a member of the same political party as the temporary president
29 of the senate and one shall be a member of the same political party as
30 the minority leader of the senate, provided that no more than two of the
31 members appointed by the governor shall be of the same political party.
32 The term of office of the members shall be for two years commencing with
33 the first day of January, two thousand, provided that term of office of
34 the members added to the commission by a chapter of the laws of two
35 thousand three shall also be for two years commencing on the first day
36 of January, two thousand four. No member of the commission shall hold
37 any other state or local public office for which he receives compen-
38 sation; nor shall any member be employed by the state or any local poli-
39 tical subdivision. No person subject to the jurisdiction of the commis-
40 sion and the provisions of this article may serve on the commission. The
41 chairman and the vice-chairman of the commission shall be elected by a
42 majority of the members of the commission to serve a one year term. The
43 chairman shall be a member of a different political party than the
44 chairman of the commission during the preceding term. The chairman and
45 vice-chairman shall each be a member of a different major political
46 party as such term is defined in the election law. Vacancies in the
47 membership of the commission occurring for any cause shall be filled for
48 the balance of the unexpired term in the same manner as the original
49 appointment of the member whose office becomes vacant. Any matter upon
50 which the commission must act by a vote of the membership must be by an
51 affirmative vote of a majority of the members of the commission. No such
52 vote may be taken until all members of the original commission are
53 appointed; thereafter, each member shall continue to serve until a
54 successor is appointed in the manner provided in this section. Each of
55 the members of the commission shall receive, as compensation for his
56 services hereunder, a per diem allowance in the sum of one hundred
S. 5680 11
1 dollars for each day actually spent in the performance of his duties
2 hereunder, not exceeding, however, the sum of five thousand dollars in
3 any calendar year, and, in addition thereto, shall be reimbursed for all
4 expenses actually and necessarily incurred by him in the performance of
5 his duties under this article.
6 § 5. Section 1-k of the legislative law, as added by chapter 2 of the
7 laws of 1999, is amended to read as follows:
8 1-k. Contingent retainer. No client shall retain or employ any lobby-
9 ist for compensation, the rate or amount of which compensation in whole
10 or part is contingent or dependent upon the passage or defeat of any
11 legislative bill or the approval or veto of any legislation by the
12 governor, or the adoption or rejection of any code, rule or regulation
13 having the force and effect of law or the outcome of any rate making
14 proceeding by a state agency, the awarding, denial, approval or disap-
15 proval of any contract or other agreement for the purchase of goods or
16 services by a state agency, municipal agency, local legislative body,
17 the state legislature or the unified court system or the awarding,
18 denial, approval or disapproval of any contract or other agreement for
19 the purchase, sale or lease or the acquisition or granting of other
20 property interest in real property by a state agency, municipal agency,
21 local legislative body, the state legislature or the unified court
22 system and no person shall accept such a retainer or employment. A
23 violation of this section shall be a class A misdemeanor.
24 § 6. Subdivisions (a), (b) and (c) of section 1-n of the legislative
25 law, as added by chapter 2 of the laws of 1999, are amended to read as
26 follows:
27 (a) (i) Any lobbyist, public corporation, or client who knowingly and
28 [wilfully] intentionally fails to file timely a report or statement
29 required by this article or knowingly and [wilfully] intentionally files
30 false information or knowingly and [wilfully] intentionally violates
31 section one-m of this article shall be guilty of a class A misdemeanor;
32 and (ii) any lobbyist, public corporation, or client who knowingly and
33 [wilfully] intentionally fails to file timely a report or statement
34 required by this article or knowingly and [wilfully] intentionally files
35 false information or knowingly and [wilfully] intentionally violates
36 section one-m of this article, after having previously been convicted in
37 the preceding five years of the crime described in paragraph (i) of this
38 subdivision, shall be guilty of a class E felony. For the purposes of
39 this subdivision, the chief administrative officer of any organization
40 required to file a statement or report shall be the person responsible
41 for making and filing such statement or report unless some other person
42 prior to the due date thereof has been duly designated to make and file
43 such statement or report.
44 (b) A lobbyist, public corporation, or client who knowingly and
45 [wilfully] intentionally fails to file a statement or report within the
46 time required for the filing of such report or knowingly and [wilfully]
47 intentionally violates section one-m of this article shall be subject to
48 a civil penalty, in an amount not to exceed twenty-five thousand
49 dollars, to be assessed by the commission. Such assessment may only be
50 imposed after the commission sends by certified and first-class mail
51 written notice of the intent to assess a penalty and the basis for the
52 penalty. The amount of such assessment shall be determined only after a
53 hearing at which the party shall be entitled to appear, present evidence
54 and be heard. Such assessment may be recovered in an action brought by
55 the attorney general.
S. 5680 12
1 (c) A lobbyist, public corporation, or client who knowingly and
2 [wilfully] intentionally files a false statement or report shall be
3 subject to a civil penalty, in an amount not to exceed fifty thousand
4 dollars, to be assessed by the commission. Such assessment may only be
5 imposed after the commission sends by certified and first-class mail
6 written notice of the intent to assess a penalty and the basis for the
7 penalty. The amount of such assessment shall be determined only after a
8 hearing at which the party shall be entitled to appear, present
9 evidence, and be heard. Such assessment may be recovered in an action
10 brought by the attorney general.
11 § 7. Section 1-o of the legislative law, is amended by adding a new
12 subdivision (d) to read as follows:
13 (d) The commission shall, upon a finding that a person or organization
14 required to file a statement or report pursuant to this article, has
15 knowingly and intentionally failed to file timely a report or statement
16 required by this article or knowingly and intentionally filed false
17 information or knowingly and intentionally violated section one-m of
18 this article, refer such matter to the district attorney in the county
19 in which the violation occurred. Further, the commission shall, upon a
20 finding that a person or organization required to file a statement or
21 report pursuant to this article has knowingly and intentionally violated
22 section one-m of this article, refer such matter to the ethics body
23 having jurisdiction over the public official to whom the illegal gift
24 was made.
25 § 8. Those persons who on December 31, 2003 were members of the New
26 York state commission on lobbying, created by chapter 2 of the laws of
27 1999, shall be deemed to have vacated their positions for the purpose of
28 appointing successors to those positions; provided, however, that those
29 persons who on December 31, 2003 were members of the New York state
30 temporary commission on lobbying, created by chapter 2 of the laws of
31 1999, shall hold over and continue as such until new members are quali-
32 fied and appointed pursuant to the amendments made to section 1-d of the
33 legislative law by section four of this act.
34 § 9. Section 8 of chapter 2 of the laws of 1999, amending the legisla-
35 tive law relating to enacting the lobbying act, as amended by chapter 19
36 of the laws of 2002, is amended to read as follows:
37 § 8. This act shall take effect January 1, 2000, provided that para-
38 graph (ii) of subdivision (c) of section 1-c of the legislative law, as
39 added by section two of this act shall take effect April 1, 2002 except
40 that prior to January 1, 2000 the New York temporary state commission on
41 lobbying, created pursuant to section 1 of chapter 1040 of the laws of
42 1981, shall prepare for the orderly transition of duties between it and
43 the New York temporary state commission on lobbying created pursuant to
44 section 1-d of the legislative law, as added by section two of this act,
45 and the implementation of the provisions of chapter 1040 of the laws of
46 1981 and of this act; and provided further that the authority of the New
47 York temporary state commission on lobbying pursuant to paragraph 2-a of
48 subdivision (c) of section 1-d of the legislative law, as added by
49 section two of this act, shall apply to reports or registration state-
50 ments filed or required to be filed after January 1, 2000; and [provided
51 further that this act shall remain in effect until December 31, 2007 at
52 which time the provisions of this act shall be repealed; however, the
53 existence of the New York temporary state commission on lobbying shall
54 continue until March 31, 2008 for the purpose of receiving and process-
55 ing registrations and reports required to be filed pursuant to sections
56 1-e, 1-h, 1-i and 1-j of the legislative law as added by section two of
S. 5680 13
1 this act;] provided, further, that the provisions of sections three and
2 four of this act shall be repealed January 1, 2003.
3 § 10. This act shall take effect January 1, 2004.
4 PART C
5 Section 1. This act shall be known and may be cited as the "Ethics Law
6 Reform Act of 2003".
7 § 2. Section 80 of the legislative law, as added by chapter 813 of the
8 laws of 1987, subdivision 12 as amended by chapter 242 of the laws of
9 1989, is amended to read as follows:
10 § 80. Legislative ethics [committee] commission; functions, powers and
11 duties; review of financial disclosure statements; advisory opinions;
12 investigation and enforcement. 1. There is established a legislative
13 ethics [committee] commission which shall consist of [eight] five
14 members [of the legislature] and shall have and exercise the powers and
15 duties set forth in this section only with respect to members of the
16 legislature, legislative employees as defined in section seventy-three
17 of the public officers law and candidates for member of the legislature.
18 2. [Two members] One member of the [committee] commission shall be
19 appointed by the temporary president of the senate, [two] one by the
20 speaker of the assembly, [two] one by the minority leader of the senate,
21 [and two] one by the minority leader of the assembly and one appointed
22 jointly by the temporary president of the senate, the speaker of the
23 assembly, the minority leader of the senate and the minority leader of
24 the assembly. No member of the commission shall be a member of the
25 legislature, legislative employee or a person employed as lobbyist or
26 officer in any political party, or shall have been a member of the
27 legislature, legislative employee or a person employed as lobbyist or
28 officer in any political party for a period of five years preceding his
29 or her appointment to the legislative ethics commission.
30 3. Members of the [committee] commission shall serve for terms of two
31 years [concurrent with their legislative terms of office]. The initial
32 term of office of such members shall commence on January first, two
33 thousand four.
34 4. The temporary president of the senate and the speaker of the assem-
35 bly shall each designate one member of the [committee from his respec-
36 tive house] commission as a co-chairperson thereof. The co-chairpersons
37 jointly or any [five] three members of the [committee] commission may
38 call a meeting.
39 5. Any vacancy occurring on the [committee] commission shall be filled
40 within sixty days by the appointing authority.
41 6. [Five] Three members of the [committee] commission shall constitute
42 a quorum, provided that the member appointed jointly by the temporary
43 president of the senate, the speaker of the assembly, the minority lead-
44 er of the senate and the minority leader of the assembly must be present
45 for a quorum to exist, and the [committee] commission shall have power
46 to act by majority vote of the total number of members of the [commit-
47 tee] commission without vacancy.
48 7. The members of the [committee] commission shall be reimbursed for
49 reasonable expenses incurred in the performance of their official
50 duties.
51 8. The [committee] commission shall:
52 a. Appoint an executive director who shall act in accordance with the
53 policies of the [committee] commission;
S. 5680 14
1 b. Appoint such other staff as are necessary to carry out its duties
2 under this section;
3 c. Adopt, amend, and rescind rules and regulations to govern proce-
4 dures of the [committee] commission which shall not be subject to the
5 promulgation and hearing requirements of the state administrative proce-
6 dure act, which shall include, but not be limited to, the procedure
7 whereby a person who is required to file an annual financial disclosure
8 statement with the [committee] commission may request an additional
9 period of time within which to file such statement, due to justifiable
10 cause or undue hardship; such rules or regulations shall provide for a
11 date beyond which in all cases of justifiable cause or undue hardship no
12 further extension of time will be granted;
13 d. Promulgate guidelines to assist appointing authorities in determin-
14 ing which persons hold policy-making positions for purposes of section
15 seventy-three-a of the public officers law and may promulgate guidelines
16 to assist firms, associations and corporations in separating affected
17 persons from net revenues for purposes of subdivision ten of section
18 seventy-three of the public officers law, and promulgate guidelines to
19 assist any firm, association or corporation in which any present or
20 former statewide elected official, state officer or employee, member of
21 the legislature or legislative employee, or political party chairman is
22 a member, associate, retired member, of counsel or shareholder, in
23 complying with the provisions of subdivision ten of section seventy-
24 three of the public officers law with respect to the separation of such
25 present or former statewide elected official, state officer or employee,
26 member of the legislature or legislative employee, or political party
27 chairman from the net revenues of the firm, association or corporation.
28 Such firm, association or corporation shall not be required to adopt the
29 procedures contained in the guidelines to establish compliance with
30 subdivision ten of section seventy-three of the public officers law, but
31 if such firm, association or corporation does adopt such procedures, it
32 shall be deemed to be in compliance with such subdivision ten;
33 e. Make available forms for financial disclosure statements required
34 to be filed pursuant to subdivision six of section seventy-three and
35 section seventy-three-a of the public officers law;
36 f. Review financial disclosure statements in accordance with the
37 provisions of this section, provided however, that the [committee]
38 commission may delegate all or part of the review function relating to
39 financial disclosure statements filed by legislative employees pursuant
40 to sections seventy-three and seventy-three-a of the public officers law
41 to the executive director who shall be responsible for completing staff
42 review of such statements in a manner consistent with the terms of the
43 [committee's] commission's delegation;
44 g. Receive complaints alleging a violation of section seventy-three,
45 seventy-three-a or seventy-four of the public officers law;
46 h. Permit any person required to file a financial disclosure statement
47 to request the [committee] commission to delete from the copy thereof
48 made available for public inspection one or more items of information,
49 which may be deleted by the [committee] commission, after denial of a
50 request for deletion made to the legislative advisory council as
51 provided in subdivision seventeen of this section, upon a finding by a
52 majority of the total number of members of the [committee] commission
53 without vacancy that the information which would otherwise be required
54 to be disclosed will have no material bearing on the discharge of the
55 reporting person's official duties. [In the event that four members of
56 the committee find in favor of the request and four members find against
S. 5680 15
1 the request, a deciding vote shall be cast by an advisory member to the
2 committee who shall be a person, other than a member of the legislature,
3 legislative employee, person employed as a lobbyist, officer in a poli-
4 tical party or member of the legislative advisory council, designated by
5 joint nomination of the temporary president of the senate and the speak-
6 er of the assembly.] If such request for deletion is denied, the
7 [committee] commission, in its notification of denial, shall inform the
8 person of his or her right to appeal the [committee's] commission's
9 determination pursuant to its rules governing adjudicatory proceedings
10 and appeals adopted pursuant to subdivision twelve of this section. The
11 [committee] commission shall promulgate rules and regulations governing
12 the issuance of written decisions in connection with appeals from the
13 advisory council;
14 i. Permit any person required to file a financial disclosure statement
15 to request an exemption from any requirement to report one or more items
16 of information which pertain to such person's spouse or unemancipated
17 children which item or items may be exempted by the [committee] commis-
18 sion, after denial of a request for exemption made to the legislative
19 advisory council as provided in subdivision seventeen of this section,
20 upon a finding by a majority of the total number of members of the
21 [committee] commission without vacancy that the reporting individual's
22 spouse, on his or her own behalf or on behalf of an unemancipated child,
23 objects to providing the information necessary to make such disclosure
24 and that the information which would otherwise be required to be
25 reported will have no material bearing on the discharge of the reporting
26 person's official duties. In the event that [four members of the commit-
27 tee find in favor of] there is a tie vote with regard to the request
28 [and four members find against the request], a deciding vote shall be
29 cast by an advisory member to the [committee] commission who shall be a
30 person, other than a member of the legislature, legislative employee,
31 person employed as a lobbyist, officer in a political party or member of
32 the legislative advisory council, designated by joint nomination of the
33 temporary president of the senate and the speaker of the assembly. If
34 such request for exemption is denied, the [committee] commission, in its
35 notification of denial, shall inform the person of his or her right to
36 appeal the [committee's] commission's determination pursuant to its
37 rules governing adjudicatory proceedings and appeals adopted pursuant to
38 subdivision twelve of this section. The [committee] commission shall
39 promulgate rules and regulations governing the issuance of written deci-
40 sions in connection with appeals from the advisory council;
41 j. Advise and assist the legislature in establishing rules and regu-
42 lations relating to possible conflicts between private interests and
43 official duties of present members of the legislature and legislative
44 employees;
45 k. Prepare an annual public report to the legislature summarizing the
46 activities of the [committee] commission and recommending changes in the
47 laws governing the conduct of members of the legislature and legislative
48 employees.
49 l. Upon certification of a question by the public advisory council to
50 the [committee] commission, as provided in paragraph h of subdivision
51 [eighteen] seventeen of this section, the [committee] commission may
52 determine a question common to a class or defined category of persons or
53 items of information required to be disclosed, where determination of
54 the question will prevent undue repetition of requests for exemption or
55 deletion or prevent undue complication in complying with the require-
56 ments of such section.
S. 5680 16
1 9. The [committee] commission, or the executive director and staff of
2 the [committee] commission if responsibility regarding such financial
3 disclosure statements filed by legislative employees has been delegated,
4 shall inspect all financial disclosure statements filed with the
5 [committee] commission to ascertain whether any person subject to the
6 reporting requirements of subdivision six of section seventy-three or
7 section seventy-three-a of the public officers law has failed to file
8 such a statement, has filed a deficient statement or has filed a state-
9 ment which reveals a possible violation of section seventy-three, seven-
10 ty-three-a or seventy-four of the public officers law.
11 10. If a person required to file a financial disclosure statement with
12 the [committee] commission has failed to file a financial disclosure
13 statement or has filed a deficient statement, the [committee] commission
14 shall notify the reporting person in writing, state the failure to file
15 or detail the deficiency, provide the person with a fifteen day period
16 to cure the deficiency, and advise the person of the penalties for fail-
17 ure to comply with the reporting requirements. Such notice shall be
18 confidential. If the person fails to make such filing or fails to cure
19 the deficiency within the specified time period, the [committee] commis-
20 sion shall send a notice of delinquency: (a) to the reporting person;
21 (b) in the case of a senator, to the temporary president of the senate,
22 and if a member of assembly, to the speaker of the assembly; and (c) in
23 the case of a legislative employee, to the appointing authority for such
24 person and to the temporary president of the senate and/or the speaker
25 of the assembly, as the case may be, who has jurisdiction over such
26 appointing authority.
27 11. a. If a reporting person has filed a statement which reveals a
28 possible violation of section seventy-three, seventy-three-a or seven-
29 ty-four of the public officers law, or the [committee] commission
30 receives a sworn complaint alleging such a violation by a reporting
31 person or a legislative employee subject to the provisions of section
32 seventy-three of the public officers law, or if the [committee] commis-
33 sion determines on its own initiative to investigate a possible
34 violation by a reporting person or a legislative employee subject to the
35 provisions of section seventy-three of the public officers law, the
36 [committee] commission shall notify the reporting person in writing,
37 describe the possible or alleged violation of such section seventy-
38 three, seventy-three-a or seventy-four and provide the person with a
39 fifteen day period in which to submit a written response setting forth
40 information relating to the activities cited as a possible or alleged
41 violation of law. If the [committee] commission thereafter makes a
42 determination that further inquiry is justified, it shall give the
43 reporting person an opportunity to be heard. The [committee] commission
44 shall also inform the reporting individual of its rules regarding the
45 conduct of adjudicatory proceedings and appeals and the due process
46 procedural mechanisms available to such individual. If the [committee]
47 commission determines at any stage of the proceeding, that there is no
48 violation or that any potential conflict of interest violation has been
49 rectified, it shall so advise the reporting person and the complainant,
50 if any. All of the foregoing proceedings shall be confidential.
51 b. If the [committee] commission determines that there is reasonable
52 cause to believe that a violation has occurred, it shall send a notice
53 of reasonable cause: (i) to the reporting person; (ii) to the complain-
54 ant if any; (iii) in the case of a senator, to the temporary president
55 of the senate, and if a member of the assembly, to the speaker of the
56 assembly; and (iv) in the case of a legislative employee, to the
S. 5680 17
1 appointing authority for such person and to the temporary president of
2 the senate and/or the speaker of the assembly, as the case may be, who
3 has jurisdiction over such appointing authority.
4 12. An individual who knowingly and intentionally violates the
5 provisions of subdivisions two through five or subdivision seven, eight
6 or twelve of section seventy-three of the public officers law or a
7 reporting individual who knowingly and [wilfully] intentionally fails to
8 file an annual statement of financial disclosure or who knowingly and
9 [wilfully] intentionally with intent to deceive makes a false statement
10 or gives information which such individual knows to be false on such
11 statement of financial disclosure filed pursuant to section seventy-
12 three-a of the public officers law shall be subject to a civil penalty
13 in an amount not to exceed ten thousand dollars. An individual who
14 knowingly and intentionally violates the provisions of section seventy-
15 four of the public officers law may be subject to a civil penalty
16 assessed by the legislative ethics commission not to exceed five thou-
17 sand dollars. Assessment of a civil penalty hereunder shall be made by
18 the [committee] commission with respect to persons subject to its juris-
19 diction. For a violation of this section, other than for conduct which
20 constitutes a violation of subdivision twelve of section seventy-three
21 of the public officers law, the legislative ethics [committee] commis-
22 sion may, in lieu of a civil penalty, refer a violation to the appropri-
23 ate prosecutor and upon such conviction, but only after such referral,
24 such violation shall be punishable as a class A misdemeanor. A civil
25 penalty for false filing may not be imposed hereunder in the event a
26 category of "value" or "amount" reported hereunder is incorrect unless
27 such reported information is falsely understated. Notwithstanding any
28 other provision of law to the contrary, no other penalty, civil or crim-
29 inal may be imposed for a failure to file, or for a false filing, of
30 such statement, or a violation of section seventy-three of the public
31 officers law, except that the appointing authority may impose discipli-
32 nary action as otherwise provided by law. The legislative ethics
33 commission may refer violations of section seventy-four of the public
34 officers law to the appointing authority for disciplinary action as
35 otherwise provided by law. The legislative ethics [committee] commission
36 shall be deemed to be an agency within the meaning of article three of
37 the state administrative procedure act and shall adopt rules governing
38 the conduct of adjudicatory proceedings and appeals taken pursuant to a
39 proceeding commenced under article seventy-eight of the civil practice
40 law and rules relating to the assessment of the civil penalties herein
41 authorized and [committee] commission denials of requests for certain
42 deletions or exemptions to be made from a financial disclosure statement
43 as authorized in paragraph h or paragraph i of subdivision eight of this
44 section. Such rules, which shall not be subject to the promulgation and
45 hearing requirements of the state administrative procedure act, shall
46 provide for due process procedural mechanisms substantially similar to
47 those set forth in such article three but such mechanisms need not be
48 identical in terms or scope. Assessment of a civil penalty or [commit-
49 tee] commission denial of such a request shall be final unless modified,
50 suspended or vacated within thirty days of imposition, with respect to
51 the assessment of such penalty, or unless such denial of request is
52 reversed within such time period, and upon becoming final shall be
53 subject to review at the instance of the affected reporting individuals
54 in a proceeding commenced against the legislative ethics [committee]
55 commission, pursuant to article seventy-eight of the civil practice law
56 and rules.
S. 5680 18
1 13. A copy of any notice of delinquency or notice of reasonable cause
2 sent pursuant to subdivisions ten and eleven of this section shall be
3 included in the reporting person's file and be available for public
4 inspection.
5 14. Upon written request from any person who is subject to the
6 requirements of sections seventy-three, seventy-three-a and seventy-four
7 of the public officers law, the [committee] commission shall render
8 advisory opinions on the requirements of said provisions. An opinion
9 rendered by the [committee] commission, until and unless amended or
10 revoked, shall be binding on the [committee] commission in any subse-
11 quent proceeding concerning the person who requested the opinion and who
12 acted in good faith, unless material facts were omitted or misstated by
13 the person in the request for an opinion. Such opinion may also be
14 relied upon by such person, and may be introduced and shall be a defense
15 in any criminal or civil action. Such requests shall be confidential,
16 but the [committee] commission may publish such opinions provided that
17 the name of the requesting person and other identifying details shall
18 not be included in the publication.
19 15. In addition to any other powers and duties specified by law, the
20 [committee] commission shall have the power and duty to:
21 a. Administer and enforce all the provisions of this section;
22 b. Conduct any investigation necessary to carry out the provisions of
23 this section. Pursuant to this power and duty, the [committee] commis-
24 sion may administer oaths or affirmations, subpoena witnesses, compel
25 their attendance and require the production of any books or records
26 which it may deem relevant or material.
27 15-a. When the New York state commission on lobbying refers a matter
28 to the legislative ethics commission pursuant to subdivision (d) of
29 section one-o of this chapter, the legislative ethics commission shall
30 be required to conduct an investigation into the circumstances involving
31 the gift made to the public official under its jurisdiction and to make
32 a timely public report on the results of its investigation.
33 16. a. Notwithstanding the provisions of article six of the public
34 officers law, the only records of the [committee] commission which shall
35 be available for public inspection are:
36 (1) the information set forth in an annual statement of financial
37 disclosure filed pursuant to section seventy-three-a of the public offi-
38 cers law except the categories of value or amount which shall be confi-
39 dential, and any other item of information deleted pursuant to paragraph
40 h of subdivision eight of this section;
41 (2) financial disclosure statements filed pursuant to subdivision six
42 of section seventy-three of the public officers law;
43 (3) notices of delinquency sent under subdivision ten of this section;
44 (4) notices of reasonable cause sent under paragraph b of subdivision
45 eleven of this section; and
46 (5) notices of civil assessment imposed under this section.
47 b. Notwithstanding the provisions of article seven of the public offi-
48 cers law, no meeting or proceeding of the [committee] commission shall
49 be open to the public, except if expressly provided otherwise by the
50 [committee] commission.
51 c. Pending any application for deletion or exemption either to the
52 legislative advisory council or to the [committee] commission upon
53 appeal of an adverse determination by the legislative advisory council,
54 all information which is the subject or a part of the application shall
55 remain confidential. Upon an adverse determination by the [committee]
56 commission, the reporting individual may request, and upon such request
S. 5680 19
1 the [committee] commission shall provide, that any information which is
2 the subject or part of the application remain confidential for a period
3 of thirty days following notice of such determination. In the event that
4 the reporting individual resigns his office and holds no other office
5 subject to the jurisdiction of the [committee] commission, the informa-
6 tion shall not be made public and shall be expunged in its entirety.
7 17. a. There is established within the legislative ethics [committee]
8 commission a legislative advisory council which shall consist of [five]
9 three members and shall have and exercise the powers and duties set
10 forth in this subdivision.
11 b. Three members of the legislative advisory council shall be persons,
12 other than members of the legislature or legislative employees or
13 persons employed as lobbyists or officers in any political party, no
14 more than two of whom shall belong to the same political party, who
15 shall be appointed upon the joint nomination of the temporary president
16 of the senate and the speaker of the assembly. [The chairman of the
17 senate judiciary committee and the chairman of the assembly judiciary
18 committee shall also serve as members of the legislative advisory coun-
19 cil.]
20 c. Members of the legislative advisory council shall serve for terms
21 of two years [or, in the case of members of the legislature, during
22 their term in office as chairmen of their respective judiciary commit-
23 tees].
24 d. One member of the legislative advisory council[, other than a
25 member who is also a member of the legislature] shall be designated
26 chairman of the legislative advisory council. The chairman or any
27 [three] two members of the [committee] council may call a meeting.
28 e. Any vacancy occurring on the legislative advisory council shall be
29 filled within sixty days of its occurrence in the same manner as the
30 member whose vacancy is being filled was appointed. A person appointed
31 to fill a vacancy occurring other than by expiration of a term of office
32 shall be appointed for the unexpired term of the member he succeeds.
33 f. [Three] Two members of the legislative advisory council shall
34 constitute a quorum, and the legislative advisory council shall have
35 power to act by majority vote of the total number of members of the
36 legislative advisory council without vacancy.
37 g. The legislative advisory council shall:
38 (1) Permit any person required to file a financial disclosure state-
39 ment to request the legislative advisory council to delete from the copy
40 thereof made available for public inspection one or more items of infor-
41 mation which may be deleted by such council upon a finding by a majority
42 of the total number of members of such council without vacancy that the
43 information which would otherwise be available for public inspection
44 will have no material bearing on the discharge of the reporting person's
45 official duties. If such request for deletion is denied, such council,
46 in its notification of denial, shall inform the person of his or her
47 right to appeal the council's determination to the [committee] commis-
48 sion pursuant to the [committee's] commission's rules governing adjudi-
49 catory proceedings and appeals adopted pursuant to subdivision twelve of
50 this section; and
51 (2) Permit any person required to file a financial disclosure state-
52 ment to request an exemption from any requirement to report one or more
53 items of information which pertain to such person's spouse or unemanci-
54 pated children which item or items may be exempted upon a finding by a
55 majority of the total number of members of the legislative advisory
56 council without vacancy that the reporting individual's spouse, on his
S. 5680 20
1 or her own behalf or on behalf of an unemancipated child, objects to
2 providing the information necessary to make such disclosure and that the
3 information which would otherwise be required to be reported will have
4 no material bearing on the discharge of the reporting person's official
5 duties. If such request for exemption is denied, the council in its
6 notification of denial, shall inform the person of his or her right to
7 appeal the council's determination to the [committee] commission pursu-
8 ant to the [committee's] commission's rules governing adjudicatory
9 proceedings and appeals adopted pursuant to subdivision twelve of this
10 section.
11 h. Where the council is of the opinion that a determination of a ques-
12 tion common to a class or defined category of persons or items of infor-
13 mation with respect to requests for deletion or exemption will prevent
14 undue repetition of such requests or undue complication, the council may
15 certify the question to the [committee] commission for resolution and
16 disposition in accordance with paragraph l of subdivision eight of this
17 section.
18 § 3. Paragraph (a) of subdivision 1, paragraph (a) of subdivision 6
19 and subdivision 10 of section 73 of the public officers law, as amended
20 by chapter 813 of the laws of 1987, are amended to read as follows:
21 (a) The term "compensation" shall mean any money, thing of value or
22 financial benefit conferred in return for services rendered or to be
23 rendered. With regard to matters undertaken by a firm, corporation or
24 association, compensation shall mean net revenues, as defined in accord-
25 ance with generally accepted accounting principles as defined by the
26 state ethics commission or legislative ethics [committee] commission in
27 relation to persons subject to their respective jurisdictions.
28 (a) Every legislative employee not subject to the provisions of
29 section seventy-three-a of this chapter shall, on and after December
30 fifteenth and before the following January fifteenth, in each year, file
31 with the legislative ethics [committee] commission established by
32 section eighty of the legislative law a financial disclosure statement
33 of
34 10. Nothing contained in this section, the judiciary law, the educa-
35 tion law or any other law or disciplinary rule shall be construed or
36 applied to prohibit any firm, association or corporation, in which any
37 present or former statewide elected official, state officer or employee,
38 or political party chairman, member of the legislature or legislative
39 employee is a member, associate, retired member, of counsel or share-
40 holder, from appearing, practicing, communicating or otherwise rendering
41 services in relation to any matter before, or transacting business with
42 a state agency, or a city agency with respect to a political party
43 chairman in a county wholly included in a city with a population of more
44 than one million, otherwise proscribed by this section, the judiciary
45 law, the education law or any other law or disciplinary rule with
46 respect to such official, member of the legislature or officer or
47 employee, or political party chairman, where such statewide elected
48 official, state officer or employee, member of the legislature or legis-
49 lative employee, or political party chairman does not share in the net
50 revenues, as defined in accordance with generally accepted accounting
51 principles by the state ethics commission or by the legislative ethics
52 [committee] commission in relation to persons subject to their respec-
53 tive jurisdictions, resulting therefrom, or, acting in good faith,
54 reasonably believed that he or she would not share in the net revenues
55 as so defined; nor shall anything contained in this section, the judici-
56 ary law, the education law or any other law or disciplinary rule be
S. 5680 21
1 construed to prohibit any firm, association or corporation in which any
2 present or former statewide elected official, member of the legislature,
3 legislative employee, full-time salaried state officer or employee or
4 state officer or employee who is subject to the provisions of section
5 seventy-three-a of this chapter is a member, associate, retired member,
6 of counsel or shareholder, from appearing, practicing, communicating or
7 otherwise rendering services in relation to any matter before, or trans-
8 acting business with, the court of claims, where such statewide elected
9 official, member of the legislature, legislative employee, full-time
10 salaried state officer or employee or state officer or employee who is
11 subject to the provisions of section seventy-three-a of this chapter
12 does not share in the net revenues, as defined in accordance with gener-
13 ally accepted accounting principles by the state ethics commission or by
14 the legislative ethics [committee] commission in relation to persons
15 subject to their respective jurisdictions, resulting therefrom, or,
16 acting in good faith, reasonably believed that he or she would not share
17 in the net revenues as so defined.
18 § 4. Subparagraph (ii) of paragraph (a), paragraphs (c), (d), (f) and
19 (g) of subdivision 2 and subdivision 4 of section 73-a of the public
20 officers law, as added by chapter 813 of the laws of 1987, paragraph (g)
21 of subdivision 2 and subdivision 4 as amended by chapter 242 of the laws
22 of 1989, are amended to read as follows:
23 (ii) a person who is required to file an annual financial disclosure
24 statement with the state ethics commission or with the legislative
25 ethics [committee] commission, and who is granted an additional period
26 of time within which to file such statement due to justifiable cause or
27 undue hardship, in accordance with required rules and regulations on the
28 subject adopted pursuant to paragraph c of subdivision nine of section
29 ninety-four of the executive law or pursuant to paragraph c of subdivi-
30 sion eight of section eighty of the legislative law, shall file such
31 statement within the additional period of time granted;
32 (c) If the reporting individual is a senator or member of assembly,
33 candidate for the senate or member of assembly or a legislative employ-
34 ee, such statement shall be filed with the legislative ethics [commit-
35 tee] commission established by a chapter of the laws of two thousand
36 three that amended section eighty of the legislative law. If the report-
37 ing individual is a statewide elected official, candidate for statewide
38 elected office, a state officer or employee or a political party chair-
39 man, such statement shall be filed with the state ethics commission
40 established by section ninety-four of the executive law.
41 (d) The legislative ethics [committee] commission and the state ethics
42 commission shall obtain from the state board of elections a list of all
43 candidates for statewide office and for member of the legislature, and
44 from such list, shall determine and publish a list of those candidates
45 who have not, within ten days after the required date for filing such
46 statement, filed the statement required by this subdivision.
47 (f) A person who may otherwise be required to file more than one annu-
48 al financial disclosure statement with both the state ethics commission
49 and the legislative ethics [committee] commission in any one calendar
50 year may satisfy such requirement by filing one such statement with
51 either body and by notifying the other body of such compliance.
52 (g) A person who is employed in more than one employment capacity for
53 one or more employers certain of whose officers and employees are
54 subject to filing a financial disclosure statement with the same state
55 ethics commission or legislative ethics [committee] commission, as the
56 case may be, and who receives distinctly separate payments of compen-
S. 5680 22
1 sation for such employment shall be subject to the filing requirements
2 of this section if the aggregate annual compensation for all such
3 employment capacities is in excess of the filing rate notwithstanding
4 that such person would not otherwise be required to file with respect to
5 any one particular employment capacity. A person not otherwise required
6 to file a financial disclosure statement hereunder who is employed by an
7 employer certain of whose officers or employees are subject to filing a
8 financial disclosure statement with the state ethics commission and who
9 is also employed by an employer certain of whose officers or employees
10 are subject to filing a financial disclosure statement with the legisla-
11 tive ethics [committee] commission shall not be subject to filing such
12 statement with either such state ethics commission or such [committee]
13 legislative ethics commission on the basis that his aggregate annual
14 compensation from all such employers is in excess of the filing rate.
15 4. A reporting individual who knowingly and [wilfully] intentionally
16 fails to file an annual statement of financial disclosure or who know-
17 ingly and [wilfully] intentionally with intent to deceive makes a false
18 statement or gives information which such individual knows to be false
19 on such statement of financial disclosure filed pursuant to this section
20 shall be subject to a civil penalty in an amount not to exceed ten thou-
21 sand dollars. Assessment of a civil penalty hereunder shall be made by
22 the state ethics commission or by the legislative ethics [committee]
23 commission, as the case may be, with respect to persons subject to their
24 respective jurisdictions. The state ethics commission acting pursuant to
25 subdivision thirteen of section ninety-four of the executive law or the
26 legislative ethics [committee] commission acting pursuant to subdivision
27 twelve of section eighty of the legislative law, as the case may be,
28 may, in lieu of a civil penalty, refer a violation to the appropriate
29 prosecutor and upon such conviction, but only after such referral, such
30 violation shall be punishable as a class A misdemeanor. A civil penalty
31 for false filing may not be imposed hereunder in the event a category of
32 "value" or "amount" reported hereunder is incorrect unless such reported
33 information is falsely understated. Notwithstanding any other provision
34 of law to the contrary, no other penalty, civil or criminal may be
35 imposed for a failure to file, or for a false filing, of such statement,
36 except that the appointing authority may impose disciplinary action as
37 otherwise provided by law. The state ethics commission and the legisla-
38 tive ethics [committee] commission shall each be deemed to be an agency
39 within the meaning of article three of the state administrative proce-
40 dure act and shall adopt rules governing the conduct of adjudicatory
41 proceedings and appeals relating to the assessment of the civil penal-
42 ties herein authorized. Such rules, which shall not be subject to the
43 approval requirements of the state administrative procedure act, shall
44 provide for due process procedural mechanisms substantially similar to
45 those set forth in such article three but such mechanisms need not be
46 identical in terms or scope. Assessment of a civil penalty shall be
47 final unless modified, suspended or vacated within thirty days of impo-
48 sition and upon becoming final shall be subject to review at the
49 instance of the affected reporting individual in a proceeding commenced
50 against the state ethics commission or legislative ethics [committee]
51 commission, pursuant to article seventy-eight of the civil practice law
52 and rules.
53 § 5. All of the functions and powers of the legislative ethics commit-
54 tee created by chapter 813 of the laws of 1987 are transferred and
55 assigned to, assumed by and devolved upon the legislative ethics commis-
56 sion as reconstituted by section two of this part.
S. 5680 23
1 § 6. Transfer of funds. All of the moneys credited to the legislative
2 ethics committee are hereby transferred and credited to the legislative
3 ethics commission as reconstituted by section two of this part.
4 § 7. Subdivision 13 of section 94 of the executive law, as amended by
5 chapter 242 of the laws of 1989, is amended to read as follows:
6 13. An individual who knowingly and intentionally violates the
7 provisions of subdivisions two through five or subdivision seven, eight
8 or twelve of section seventy-three of the public officers law or a
9 reporting individual who knowingly and [wilfully] intentionally fails to
10 file an annual statement of financial disclosure or who knowingly and
11 [wilfully] intentionally with intent to deceive makes a false statement
12 or omission or gives information which such individual knows to be false
13 on such statement of financial disclosure filed pursuant to section
14 seventy-three-a of the public officers law shall be subject to a civil
15 penalty in an amount not to exceed ten thousand dollars. An individual
16 who knowingly and intentionally violates the provisions of section
17 seventy-four of the public officers law may be subject to a civil penal-
18 ty in an amount not to exceed five thousand dollars. Assessment of a
19 civil penalty hereunder shall be made by the commission with respect to
20 persons subject to its jurisdiction. For a violation of this subdivi-
21 sion, other than for conduct which constitutes a violation of subdivi-
22 sion twelve of section seventy-three of the public officers law, the
23 commission may, in lieu of a civil penalty, refer a violation to the
24 appropriate prosecutor and upon such conviction, [but only after such
25 referral,] such violation shall be punishable as a class A misdemeanor.
26 A civil penalty for false filing may not be imposed hereunder in the
27 event a category of "value" or "amount" reported hereunder is incorrect
28 unless such reported information is falsely understated. Notwithstanding
29 any other provision of law to the contrary, no other penalty, civil or
30 criminal may be imposed for a failure to file, or for a false filing, of
31 such statement, or a violation of section seventy-three of the public
32 officers law, except that the appointing authority may impose discipli-
33 nary action as otherwise provided by law. The state ethics commission
34 may refer violations of section seventy-four of the public officers law
35 to the appointing authority for disciplinary action as otherwise
36 provided by law. The state ethics commission shall be deemed to be an
37 agency within the meaning of article three of the state administrative
38 procedure act and shall adopt rules governing the conduct of adjudicato-
39 ry proceedings and appeals taken pursuant to a proceeding commenced
40 under article seventy-eight of the civil practice law and rules relating
41 to the assessment of the civil penalties herein authorized and commis-
42 sion denials of requests for certain deletions or exemptions to be made
43 from a financial disclosure statement as authorized in paragraph (h) or
44 paragraph (i) of subdivision nine of this section. Such rules, which
45 shall not be subject to the approval requirements of the state adminis-
46 trative procedure act, shall provide for due process procedural mech-
47 anisms substantially similar to those set forth in such article three
48 but such mechanisms need not be identical in terms or scope. Assessment
49 of a civil penalty or commission denial of such a request shall be final
50 unless modified, suspended or vacated within thirty days of imposition,
51 with respect to the assessment of such penalty, or unless such denial of
52 request is reversed within such time period, and upon becoming final
53 shall be subject to review at the instance of the affected reporting
54 individuals in a proceeding commenced against the state ethics commis-
55 sion, pursuant to article seventy-eight of the civil practice law and
56 rules.
S. 5680 24
1 § 8. Section 94 of the executive law is amended by adding a new subdi-
2 vision 16-a to read as follows:
3 16-a. When the New York state commission on lobbying refers a matter
4 to the state ethics commission pursuant to subdivision (d) of section
5 one-o of the legislative law, the state ethics commission shall be
6 required to conduct an investigation into the circumstances involving
7 the gift made to the public official under its jurisdiction and to make
8 a timely public report on the results of its investigation.
9 § 9. Subparagraphs (i) and (iii) of paragraph (a) of subdivision 8 of
10 section 73 of the public officers law, as amended by chapter 299 of the
11 laws of 1995, are amended to read as follows:
12 (i) No person who has served as a state officer or employee shall
13 within a period of two years after the termination of such service or
14 employment appear or practice before such state agency or receive
15 compensation for any services rendered by such former officer or employ-
16 ee on behalf of any person, firm, corporation or association in relation
17 to any case, proceeding or application or other matter before such agen-
18 cy. The term "two years" as used in this subparagraph shall mean two
19 calendar years from the date of separation from state service.
20 (iii) No person who has served as a member of the legislature shall
21 within a period of two years after the termination of such service
22 receive compensation for any services on behalf of any person, firm,
23 corporation or association to promote or oppose, directly or indirectly,
24 the passage of bills or resolutions by either house of the legislature.
25 No legislative employee who is required to file an annual statement of
26 financial disclosure pursuant to the provisions of section seventy-
27 three-a of this chapter shall during the term of office of the legisla-
28 ture in which he or she was so employed, receive compensation at any
29 time during the remainder of such term after leaving the employ of the
30 legislature for any services on behalf of any person, firm, corporation
31 or association to promote or oppose, directly or indirectly, the passage
32 of bills or resolutions by either house of the legislature in relation
33 to any matter with respect to which such person was directly concerned
34 and in which he personally participated during the period of his service
35 or employment. A legislative employee who acted primarily in a supervi-
36 sory capacity in such matter and who was not personally involved in the
37 development, negotiation or implementation of the matter to an important
38 and material degree, may, with the approval of the legislative ethics
39 [committee] commission, receive such compensation and perform such
40 services. The term "two years" as used in this subparagraph shall mean
41 two calendar years from the date of separation from state service.
42 § 10. Subdivision 4 of section 74 of the public officers law, as added
43 by chapter 1012 of the laws of 1965, is amended to read as follows:
44 4. Violations. In addition to any penalty contained in any other
45 provision of law any such officer, member or employee who shall knowing-
46 ly and intentionally violate any of the provisions of this section may
47 be subject to a civil penalty assessed by the appropriate ethics body
48 fined, suspended or removed from office or employment in the manner
49 provided by law.
50 § 11. This act shall take effect January 1, 2004.
51 PART D
52 Section 1. This act shall be known and may be cited as the "Campaign
53 Finance Improvement Act of 2003".
S. 5680 25
1 § 2. Section 14-116 of the election law, subdivision 1 as redesignated
2 by chapter 9 of the laws of 1978 and subdivision 2 as amended by chapter
3 260 of the laws of 1981, is amended to read as follows:
4 § 14-116. Political contributions by certain organizations. 1. No
5 corporation [or], joint-stock association, or labor union doing business
6 in this state, except a corporation or association organized or main-
7 tained for political purposes only, shall directly or indirectly pay or
8 use or offer, consent or agree to pay or use any money or property for
9 or in aid of any political party, committee or organization, or for, or
10 in aid of, any corporation, joint-stock, labor union or other associ-
11 ation organized or maintained for political purposes, or for, or in aid
12 of, any candidate for political office or for nomination for such
13 office, or for any political purpose whatever, or for the reimbursement
14 or indemnification of any person for moneys or property so used. Any
15 officer, director, stock-holder, attorney or agent of any corporation
16 [or], joint-stock association, or labor union which violates any of the
17 provisions of this section, who participates in, aids, abets or advises
18 or consents to any such violations, and any person who solicits or know-
19 ingly receives any money or property in violation of this section, shall
20 be guilty of a misdemeanor. For the purposes of this subdivision, all
21 the component groups of a controlled group of corporations within the
22 meaning of section one thousand five hundred sixty-three of the internal
23 revenue code shall be deemed to be one corporation.
24 2. Notwithstanding the provisions of subdivision one of this section,
25 any corporation, labor union, or an organization financially supported
26 in whole or in part, by such corporation may make expenditures, includ-
27 ing contributions, not otherwise prohibited by law, for political
28 purposes, in an amount not to exceed five thousand dollars in the aggre-
29 gate in any calendar year; provided that no public utility shall use
30 revenues received from the rendition of public service within the state
31 for contributions for political purposes unless such cost is charged to
32 the shareholders of such a public service corporation.
33 § 3. Subdivision 3 of section 14-102 of the election law, as amended
34 by chapter 8 of the laws of 1978 and as renumbered by chapter 70 of the
35 laws of 1983, is amended to read as follows:
36 3. The state board of elections shall promulgate regulations with
37 respect to the accounting methods to be applied in preparing the state-
38 ments required by the provisions of this article and shall provide forms
39 suitable for such statements. In relation to receipts, contributions,
40 or transfers which are other than money, the state board of elections
41 shall prepare forms which shall minimally provide the following informa-
42 tion regarding campaign phone bank operations, campaign literature
43 production and distribution, and for other campaign-related operations:
44 a. the name and address of the transferor or contributor;
45 b. the fair market value of the non-money receipt, contribution or
46 transfer;
47 c. the dates that such campaign phone bank operation, campaign litera-
48 ture production and distribution activity, or other campaign-related
49 operation occurred;
50 d. the name and address of the location where such campaign phone bank
51 operation, campaign literature production activity, or campaign-related
52 operation occurred; and
53 e. the names of paid personnel that were used in phone bank oper-
54 ations, campaign literature production and distribution, and other camp-
55 aign-related operations.
S. 5680 26
1 § 4. Section 14-100 of the election law is amended by adding a new
2 subdivision 12 to read as follows:
3 12. "intermediary" means an individual, corporation, partnership,
4 political committee, employee organization, or other entity which, other
5 than in the regular course of business as a postal, delivery, or messen-
6 ger service, delivers any contribution from another person or entity to
7 a candidate or an authorized committee. "Intermediary" shall not include
8 spouses, parents, children, or siblings of the person making such
9 contribution.
10 § 5. Subdivision 1 of section 14-102 of the election law, as amended
11 by chapter 8 of the laws of 1978 and as redesignated by chapter 9 of the
12 laws of 1978, is amended to read as follows:
13 1. The treasurer of every political committee which, or any officer,
14 member or agent of any such committee who, in connection with any
15 election, receives or expends any money or other valuable thing or
16 incurs any liability to pay money or its equivalent shall file state-
17 ments sworn, or subscribed and bearing a form notice that false state-
18 ments made therein are punishable as a class A misdemeanor pursuant to
19 section 210.45 of the penal law, at the times prescribed by this article
20 setting forth all the receipts, contributions to and the expenditures by
21 and liabilities of the committee, and of its officers, members and
22 agents in its behalf. Such statements shall include the dollar amount of
23 any receipt, contribution or transfer, or the fair market value of any
24 receipt, contribution or transfer, which is other than of money, the
25 name [and], address, occupation, employer, and business address of the
26 transferor, contributor, intermediary, or person from whom received, and
27 if the transferor, contributor or person is a political committee; the
28 name of and the political unit represented by the committee, the date of
29 its receipt, the dollar amount of every expenditure, the name and
30 address of the person to whom it was made or the name of and the poli-
31 tical unit represented by the committee to which it was made and the
32 date thereof, and shall state clearly the purpose of such expenditure.
33 Any statement reporting a loan shall have attached to it a copy of the
34 evidence of indebtedness. Expenditures in sums under fifty dollars need
35 not be specifically accounted for by separate items in said statements,
36 and receipts and contributions aggregating not more than ninety-nine
37 dollars, from any one contributor need not be specifically accounted for
38 by separate items in said statements, provided however, that such
39 expenditures, receipts and contributions shall be subject to the other
40 provisions of section 14-118 of this article.
41 § 6. The election law is amended by adding a new section 14-132 to
42 read as follows:
43 § 14-132. Fundraising during legislative session. 1. As used in this
44 article, "legislative session" shall mean the period beginning on the
45 Wednesday succeeding the first Monday of January and ending on the later
46 of:
47 a. the thirtieth day of June, or
48 b. the day on which the legislature has taken final action on all of
49 the appropriation bills submitted by the governor pursuant to article
50 seven of the state constitution, thereby enacting a state budget that
51 provides sufficient appropriation authority for the ongoing operation
52 and support of state government and local assistance for the ensuing
53 fiscal year.
54 2. Except as otherwise provided in this section, a statewide elected
55 official, member of the state senate, member of the state assembly, or a
56 candidate therefor shall not hold, participate in, or attend a function
S. 5680 27
1 designed to solicit funds that are subject to the reporting requirements
2 of this article in or within twenty-five miles of the New York state
3 capitol during the legislative session.
4 3. This section shall not apply to members of the legislature, or
5 candidates therefor, whose districts are located, in whole or in part,
6 within twenty-five miles of the New York state capitol; provided, howev-
7 er, that any such fundraising function shall take place within the
8 district of the legislator or candidate therefor and shall be solely for
9 the benefit of the legislator or candidate or the authorized political
10 committee of such legislator or candidate and no other elected official,
11 political committee, or candidate for elected office.
12 § 7. This act shall take effect January 1, 2004, except that the
13 amendments to section 14-116 of the election law made by section two of
14 this act shall apply to contributions made on or after the effective
15 date of this act, and any contributions that were made prior to the
16 effective date of this act shall be deemed lawful, provided that such
17 contributions were within applicable contribution limits at the time the
18 contributions were made.
19 PART E
20 Section 1. 1. There is hereby established a temporary state commission
21 on judicial accountability and reform. The commission shall consist of
22 seven members appointed by the governor, one on the recommendation of
23 the temporary president of the senate, one on the recommendation of the
24 speaker of the assembly and one on the recommendation of the attorney
25 general. The governor shall designate one of the members as chair. The
26 commission shall be authorized to appoint and employ and at pleasure
27 remove, counsel and such other staff as it may deem necessary; and to
28 determine their duties and fix their salaries or compensation within the
29 amount appropriated therefor.
30 2. The commission shall have the following functions, powers and
31 duties:
32 (a) investigate allegations of judicial corruption, favoritism, undue
33 influence, conflicts of interest, abuse of official position or conduct
34 that otherwise impairs public confidence in the integrity of the judici-
35 ary;
36 (b) investigate weaknesses in existing laws, regulations, procedures,
37 policies and practices intended to prevent judicial corruption, favori-
38 tism, undue influence, conflicts of interest, abuse of official position
39 or conduct that otherwise impairs public confidence in the integrity of
40 the judiciary;
41 (c) investigate the laws, regulations, procedures, policies and prac-
42 tices regarding the selection of judges, and determine whether such
43 weaknesses create an undue potential for corruption, favoritism, undue
44 influence or abuse of official position or otherwise impair public
45 confidence in the integrity of government;
46 (d) report its findings and reform recommendations to the governor,
47 the temporary president of the senate and the speaker of the assembly no
48 later than February 1, 2004; provided, however, that this period may be
49 extended pursuant to a memorandum of understanding ended into by the
50 governor, the temporary president of the senate and the speaker of the
51 assembly.
52 3. With respect to the performance of its functions, duties and
53 powers, the commission shall be authorized as follows:
S. 5680 28
1 (a) to conduct any investigation authorized by this act at any place
2 within the state; and to maintain offices, hold meetings and function at
3 any place within the state as it may deem necessary;
4 (b) to conduct private and public hearings and to designate one or
5 more members of the commission or of its staff to preside over any such
6 hearings;
7 (c) to administer oaths or affirmations, subpoena witnesses, compel
8 their attendance, examine them under oath or affirmation and require the
9 production of any books, records, documents or other evidence it may
10 deem relevant or material to an investigation; and the commission may
11 designate any of its members or any member of its staff to exercise any
12 such powers; and
13 (d) the commission may request and shall receive from every branch,
14 department, division, board, bureau, commission or other agency of the
15 state, or of any political subdivision thereof, cooperation and assist-
16 ance in the performance of its duties.
17 § 2. This act shall take effect immediately.
18 § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
19 sion, section or part of this act shall be adjudged by any court of
20 competent jurisdiction to be invalid, such judgment shall not affect,
21 impair or invalidate the remainder thereof, but shall be confined in its
22 operation to the clause, sentence, paragraph, subdivision, section or
23 part thereof directly involved in the controversy in which such judgment
24 shall have been rendered. It is hereby declared to be the intent of the
25 legislature that this act would have been enacted even if such invalid
26 provisions had not been included herein.
27 § 3. This act shall take effect immediately, provided, however, that
28 the applicable effective date of Parts A through E of this act shall be
29 specifically set forth in the last section of such Parts.
