Prohibits members of the legislature from receiving earned income from sources outside of the legislature; provides for the establishment of blind trusts by legislators; regulates the payment of per diem

Summary of provisions

Part A prohibits state legislators from performing any activity for compensation that results in outside earned income unless expressly permitted by the legislation. This section would exclude from the definition of "outside earned income" the following: salary, benefits and allowances paid by the State of New York to the legislator, income from military service, royalties from book sales or other intellectual property rights (advance fees prohibited), or pensions, investments, capital gains or other earnings accrued from prior employment or actual services rendered prior to the legislator taking public office.

Part B allows state legislators to transfer their assets into a qualified blind trust to avoid conflicts of interest from any financial interest in a partnership, LLP, LLC, company, corporation or other business entity. This Part would require that in order to establish a qualified blind trust, the legislator must file the following documents with JCOPE: a blind trust agreement, trustee acknowledgement, trustee certification of the trustee's independence, a complete list of assets placed in the trust, and an annual sworn statement from the trustee that no prohibited information has been disclosed to the legislator, as provided for in the legislation. JCOPE must post these documents on its website for the public.

Part C would close a loophole relating to the annual financial disclosure statement. This Part would require legislators to file an annual statement of financial disclosure for any calendar year in which the legislator served a full or partial calendar year in office. This would allow the public to receive financial disclosure information about a legislator's last year in office if the legislator was not re-elected or if the legislator resigned prior to the filing deadline.

Part D would require legislators to prove that they attended an event of official legislative business prior to receipt of full or partial per diem allowances. Legislators could prove their attendance by either signing-in at the journal clerk's office or being marked as present by the journal clerk of the legislator's respective legislative house. Alternatively, legislators could submit a record of their attendance at the meeting, event or hearing of official legislative business.

Legislators would only be allowed to receive per diems for the following days in which legislative business occurs: legislative sessions; hearings or public forums of the Senate or Assembly or joint hearings of both houses; a meeting, task force or commission of the Senate or Assembly; a travel day before or after a day of legislative business; and up to 14 additional days in which legislative business is conducted.

Finally, legislators would only be able to receive a per diem allowance or partial per diem allowance for meals or lodging for official legislative business conducted more than 50 miles from the State Capitol if the legislator submits actual and itemized receipts with the voucher for all expenses incurred, in addition to providing a record of attendance from the meeting, event or hearing. Reimbursements from overnight stays must include a detailed lodging bill with the legislator's name, dates of stay, and expenses incurred.

Justification

Public officials, advocacy groups and the public all agree that legislators must be held to the highest standards of good government while serving their constituents. Although the state's constitutional framers envisioned a citizen legislature, outside employment must be banned to prevent real or perceived conflicts of interest from occurring. State legislators should have a simple choice: serve the public full-time or collect a full-time salary out of office.

The additional measures of establishing a blind trust and closing the financial disclosure loophole for outgoing legislators are further steps that can be taken to increase transparency, disclosure and prevent real or perceived conflicts of interest. Further, actual and itemized receipts, as well as attendance records will provide much needed clarity to the per diem system.

Legislative history

New bill

Fiscal implications

None

Effective date

Part A prohibiting outside income would take effect on January 1, 2017.

Part B relating to qualified blind trusts would take effect on January 1, 2016.

Part C relating to financial disclosure obligations would take effect on January 1, 2016.

Part D relating to per diem reform would take effect April 1, 2015.