Relates to undisclosed self-dealing

BILL NUMBER:S7531

Title of bill

An act to amend the penal law, in relation to undisclosed self-dealing

Purpose or general idea of bill

This bill would establish the crime of undisclosed self-dealing in the first and second degrees, respectively a class C and a class D felony. This would serve to provide a criminal penalty for public servants who knowingly steer public contracts or grants to certain institutions or organizations in order to benefit themselves or their families.

Summary of specific provisions

Section 1 of the bill adds a new section 195.30 to the penal law establishing the crime of undisclosed self-dealing in the second degree, establishes the definition of the crime, and provides that it shall be a class D felony.

Section 1 of the bill also adds a new section 195.35 establishing the crime of undisclosed self-dealing in the first degree, establishes the definition of the crime, and provides that it shall be a class C felony.

Section 2 provides that the act shall take effect immediately upon its signing into law.

Justification

As events over the past few years have shown, New York State has a problem with public servants knowingly steering public grants and/or contracts to certain institutions or organizations for their own benefit or the benefit of their families. This is a clear breach of public trust which corrupts the democratic process and wastes taxpayer dollars.

This legislation would establish the crime of undisclosed self-dealing, which would prohibit this practice in the state of New York by establishing significant penalties for public servants who put their pecuniary interests ahead of the welfare of the people of the state of New York.

Prior legislative history

New Legislation

Fiscal implications

None to the state.

Effective date

This act shall take effect immediately.