Requires members of entities providing advice or recommendations to state officers or state agencies to file financial disclosure statements; repealer

Summary of provisions

Section 1 amends the definition of "state officer or employee" in Public Officers Law § 73-a to include any member of an entity created or in existence at any time during the reporting period to advise or make recommendations to a state officer, agency, authority or public benefit corporation on the allocation or disbursement of state or federal moneys, not already required by law to file such disclosure.

Sections 2 and 3 amend Public Officers Law § 73-a to expand the class of individuals that must be included on the Annual Statement of Financial Disclosure to include any person residing in the primary residence of the reporting individual.

Section 4 amends Public Officers Law § 74 to expand the definition of "state agency" to include any entity created or in existence to advise or make recommendations to a state officer, agency, authority or public benefit corporation on the allocation or disbursement of state or federal moneys. These entities will now be covered by the State Code of Ethics.

Section 5 provides that no member in such an entity will be able to take any action related to such entity until he or she has filed the appropriate financial disclosure form with the Joint Commission on Public Ethics. It also provides that no state officer, agency, authority or public benefit corporation may execute any contract or grant, upon the advice or recommendation of any entity until all members, the members' spouses, the natural or adopted descendants of the members or of the members' spouses, any person sharing the home of any of the foregoing, or any staff member, employee or agent of the members have (1) no direct or indirect financial interest in the requested contract or grant (2) not received and will not receive any direct or indirect financial benefit from the contractor or grantee and (3) no known conflicts of interest as set forth in Public Officers Law § 74.

Existing law

Public Officers Law §§ 73-a and 74 govern financial disclosure and conflict of interest rules for various state officers and employees.

Justification

There is a need to increase transparency throughout State and local government. Currently, many individuals who have significant input into the distribution of billions of state funds are not covered by existing financial disclosure and conflict of interest rules. As just one example, over the past four years, the Regional Economic Development Councils (REDC) have provided advice and recommendations on projects that have applied for and been awarded billions of dollars in state funding. On December 11, 2014, it was announced that $709.2 million dollars had been awarded through Round IV of the REDC initiative. The 2015-16 Executive Budget includes recommendations that the REDCs have input into billions of dollars in additional spending. Despite having influence over billions of dollars of state moneys, members of the REDCs do not file any financial disclosure statements nor are they governed by the conflict of interest provisions in the Public Officers Law.

Legislative history

New bill

Fiscal implications

None

Local fiscal implications

None

Effective date

Effective immediately, provided that sections one, two, three and four of this act shall apply to annual statements of financial disclosure filed for calendar years commencing on or after January 1, 2015.