Enacts the consulting act

Summary of provisions

Section 1 of the bill amends the legislative law by adding a new article 1-B, which would enact the Consulting Act

Section 1-aa provides the short title.

Section 1-bb defines the terms client, organization, state agency, commission, expense or expenses, compensation, public corporation, gift, municipality, public official, restricted period, revenue contract, governmental procurement, offerer, procurement contract, municipal agen- cy, local legislative body, commission salesperson, unified court system, reportable business relationship, business dealings, and contract

Section 1-cc establishes the powers of the commission, which provides that in addition to any other powers and duties provided by section 94 of the executive law, the commission shall have the power and duty to (a) administer and enforce all the provisions of this article, (b) conduct a program of random audits subject to the terms and conditions of this section, (c) conduct hearings pursuant to article seven of the public officers law, (d) prepare uniform forms for the statements and reports required by this article, (e) meet at least once during each bi-monthly reporting period of the year, (f) issue advisory opinions to those under its jurisdiction, (g) submit an annual report to the gover- nor and members of the legislature summarizing the commission's work, and (h) provide an online ethics training course to individuals required to register as consultants.

Section 1-dd establishes the statement of registration requirements, and provides (a) that consultants shall annually file a statement of regis- tration, any exceptions to such registration, and the conditions under which consultants must register to the commission, as well as (b) that such reports shall be subject to review by the commission and the period of time that such reports shall be kept on file, (c) the terms such reports shall contain, (d) that any amendment shall be submitted to the commission, and (e) the fee schedule for the statements of registration.

Section 1-ee establishes the monthly registration docket, and provides that it shall be the duty of the commission to compile a month docket of

statements of registration containing all information required by section one-dd.

Section 1-ff establishes the termination of retainer, employment or designation. It provides that upon termination of a consultant's retain- er, employment or designation, such consultant and the client on whose behalf such service has been rendered, shall give written notice.

Section 1-gg establishes the bi-monthly reporting requirements, and provides (a) the conditions under which consultants must submit bi-monthly reports to the commission, as well as (b) the terms such reports shall contain, (c) that such reports shall be subject to review by the commission and the period of time that such reports shall be kept on file, as well as any exceptions to the bi-monthly reporting require- ments.

Section 1-hh prohibits contingent retainers, and provides that no client shall retain or employ any consultant for compensation, the rate or amount of which compensation in whole or part is dependent upon (i) the passage or defeat of any legislative bill or approval or veto of any legislation by the governor, (ii) the passage or defeat of any local law, ordinance, regulation or resolution by any municipality or subdivi- sion thereof, (iii) any determination by a state agency, either house of the state or legislature, the unified court system, municipal agency or local legislative body with respect to a governmental procurement or grant, loan or agreement involving the disbursement of public monies.

Section 1-ii establishes (a) the requirements for submitting reports involving the disbursement of public monies, (b) the terms such reports shall contain, (c) the schedule under which such reports must be filed, (d) any fees which may be imposed for late filing of a report, and (e) that all reports shall be subject to review by the commission.

Section 1-jj establishes a prohibition of gifts, and provides that no individual or entity required to be listed on a statement of registra- tion pursuant to this article, or their spouse or unemancipated child, shall offer or give a gift to any public official as defined within this article, or any public official's spouse or unemancipated child. It further provides any exceptions to this prohibition.

Section 1-kk establishes the penalties, including criminal charges and the imposition of monetary fines, of the knowing and willful failure to file a timely report or statement, or of the knowing and willful filing of false information, as well as the knowing and willful violation of section 1-jj of this article.

Section 1-ll establishes the enforcement of this article, which provides that (a) all statements and reports shall be subject to a declaration by the person making and filing such statement and report, that the infor- mation is true, correct and complete, (b) the commission shall be charged with the duty of reviewing all statements and reports, and (c) upon receipt of notice of failure from the commission, the attorney

general or other appropriate authority shall take such action as he deems appropriate to secure compliance.

Section 1-mm provides that the commission shall promulgate all rules or regulations and any procedures, forms, or instructions necessary to implement the provisions of section one hundred sixty-six of the execu- tive law relating to the quarterly filing of the record of appearances before regulatory agencies.

Section 1-nn provides that the commission shall publish a statement on consulting regulations setting forth the requirements of this article in a clear and brief manner, and provides the terms to be included in such statement

Section 1-oo provides that the commission shall make information furnished by consultants and clients available to the public, and provides the terms under which such public access shall be made.

Section 1-pp provides that the provisions of this article shall be subject to the applicable provisions of the state administrative proce- dure act and section seventy-three of the civil rights law.

Section 1-qq establishes the separability clause, which provides that if any part or provision of this article, or application thereof, is adjudged by a court to be unconstitutional, such judgment shall not affect or impair any other part of provision or the application thereof to any other person or organization, but shall be confined in its opera- tion.

Section 2 of the bill provides that this act shall take effect imme- diately.

Justification

After recent reports outlining the potential of a conflict-of-interest to occur between public relations and strategic communications firms, their clients, and the public officials whom they work with, it has become vital that consultants are subject to the registration and reporting requirements to which lobbyists are already subject. The these firms meet with government officials, while advocating for their outside clients' interests, and currently are not under any requirement to disclosure their activities. Whether these firms are directly making requests of elected officials or not, they are in a position to broker agreements, expedite client meetings, and influence decision-makers. In this time of declining public trust in elected officials, we must not ignore the concerns raised by consultants' activities.

This legislation aims to increase the transparency of relationships between elected officials, government agencies, consulting firms, and the clients that they represent. It would require registration and disclosure for all firms that have substantial contact with both elected

officials and outside clients, as modeled after the Lobbying Act, as well as set out any penalties and enforcement thereof.

Prior legislative history

None.

Fiscal implications for state and local governments

To be determined.

Effective date

This act shall take effect immediately.