Prohibits members of the legislature from receiving certain income and establishes the commission on legislative compensation

The restrictions on outside earned income and prohibited activities are based on the respective restrictions and prohibitions that apply to members of the United States Congress.

Summary of specific provisions

Section 1 of the bill amends the legislative law by adding two new sections, 5-b and 5-c.

§ 5-b restricts members of the legislature from receiving outside earned income in excess of 15% of their base legislative salary in any given calendar year for the duration of their terms in office. "Outside earned income" does not include salary, benefits, or allowances made by New York State, income from military or National Guard service, income from pensions or other continuing benefits from previous employment, income from certain investment activities, income from family-owned businesses where the member's services are not a material factor in the production of income, copyright royalties, or compensation for services rendered prior to becoming a member of the legislature.

Additionally, members of the legislature would be prohibited from receiving compensation for practicing a profession that involves a fiduciary duty, being employed by a firm that provides professional services involving a fiduciary relationship, allowing their name to be used by a firm that provides professional services involving a fiduciary relationship, receiving compensation as an officer or member of a board of directors, receiving compensation for teaching without prior notification to and approval from the Legislative Ethics Commission, or receiving advance payments on copyright royalties.

§ 5-c establishes the Commission on Legislative Compensation ("the Commission"). The Commission will convene every four years starting April 1, 2015, and is charged with examining, evaluating, and making recommendations with respect to adequate levels of compensation and non-salary benefits for state legislators, taking into account a number of economic and budgetary factors.

The Commission will consist of nine members: three appointed by the Governor, one each appointed by the majority and minority leaders of the Senate and Assembly, and two appointed by the Comptroller.

The Commission shall make its final determination within 150 days after its establishment, and its recommendations are binding unless modified or abrogated by statute before taking effect.

Section 2 of the bill amends the legislative law by adding a new subparagraph f-1 to paragraph 7 of Section 80, requiring the Legislative Ethics Commission to promulgate guidelines for members of the legislature to notify the Commission of their intention to accept a compensated teaching position, and for the Commission to evaluate and issue a determination on such requests.

Section 3 of the bill amends subparagraph 9(a) of Section 80 of the legislative law to give the Legislative Ethics Commission the authority to impose penalties on members who knowingly and intentionally violate the restrictions and prohibitions contained in the new section 5-b of the legislative law, or make false statements about such restrictions and prohibitions on their annual finance disclosure forms. The Commission can levy a civil penalty of up to $40,000 and the value of the compensation received as a result of such violation. In lieu or in addition to a civil penalty, the Commission may refer violations to the appropriate prosecutor.

Section 4 of the bill provides that the act shall take effect January 1, 2015.

Justification

Over the past several decades, the public's trust in their state legislators has steadily eroded as scandal after scandal has rocked Albany. In July 2013, Governor Cuomo convened the Moreland Commission to Investigate Public Corruption to "probe systemic public corruption and the appearance of public corruption" in state government.

In the Commission's December 2013 report, they note that the New York State Legislature is "part-time," and a majority of legislators supplement their $79,500 base salary with other jobs - many as attorneys employed by firms representing clients who have business before the state. The Commission acknowledges that legislators holding outside employment inherently creates the appearance - at the very least - of competing interests between responsibilities as a lawmaker and their outside job. The Commission has issued subpoenas to certain lawmakers, seeking details on income derived from sources outside of their legislative work, and for legislators who are practicing attorneys, a list of their clients.

This legislation would establish the legislature as "full-time" by adopting the restrictions the apply to members of the United States Congress, restricting legislators from earning more than 15% of their base salary in outside income, and banning certain forms of outside income that most often give the appearance of impropriety. Doing so will help to refocus legislators' priority to representing their constituents.

A quadrennial commission, similar to the model recently established for state judges, would be created to periodically examine and adjust legislative pay to help ensure that members of the legislature are compensated at levels commensurate with the full-time work they are expected to perform.

Prior legislative history

New Bill.

Fiscal implications

To be determined.

Effective date

This act shall take effect January 1, 2015.