What's happening
This bill prohibits public officials and party committee officers from receiving compensation for legal, consulting, or contractual services from state or local authorities.
Why it matters
Closes loopholes for self-dealing. By barring public officials and party committee officers (and their associated firms or companies) from getting paid for legal, consulting, or other contractual services from state or local authorities, the bill directly targets a common avenue for conflicts of interest and potential corruption.
Broadens accountability. The restriction applies not just to individuals, but also to any firm, association, or corporation where the official has a significant (10% or more) ownership stake, meaning officials can't simply route contracts through businesses they control.
Strengthens penalties and oversight. Violations can result in substantial civil fines (up to $40,000 plus the value received), and the law clarifies that these cases can be referred for criminal prosecution, increasing the risks for unethical behavior and giving oversight bodies more enforcement power.
Targets influence in economic development. Since industrial development agencies and economic assistance corporations often control large sums of public money, this bill aims to prevent insiders from profiting off projects meant for public benefit, thus promoting greater integrity in economic development decisions.
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Who cares
Public officeholders and party committee officers
The bill would bar them from receiving compensation from state or local authorities for legal, consulting or other contracted services, whether performed or not.
Law firms, consulting firms and other affiliated businesses
The ban would also cover firms or associations in which those officials are members and corporations in which they directly or indirectly own or control at least 10 percent of the stock.
State and local authorities
These authorities would face restrictions on paying covered officials and their affiliated businesses for contracted services.
State oversight bodies
The bill would authorize the body with jurisdiction to impose civil penalties for knowing and intentional violations of up to $40,000 plus the value of any related gift, compensation or benefit received.
Headline styles
Ban Officials' Consulting Pay
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to governmental operations
- Referred to governmental operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Ban Officials’ Agency Payments
In Senate Committee · Finance · Sponsor Todd Kaminsky
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7645
2017-2018 Regular Sessions
IN ASSEMBLY
May 5, 2017
Introduced by M. of A. SOLAGES -- read once and referred to the Committee on Governmental Operations
AN ACT to amend the public officers law and the public authorities law, in relation to prohibiting certain persons from receiving compensation for legal fees, consulting, or other work performed for an industrial development agency or an economic assistance corporation
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 18 of section 73 of the public officers law, as amended by section 5 of part CC of chapter 56 of the laws of 2015, is amended to read as follows:
18. (a) No person who holds any public office or is an officer in a party committee or firm or association of which such person is a member, or corporation, ten per centum or more of the stock of which is owned or controlled directly or indirectly by such person, shall receive compensation for legal fees, consulting, or any other contractual expenditure for services, whether actually performed or not, from a state or local authority as defined in section two of the public authorities law.
(b) For the purposes of this subdivision, the term "party committee" shall have the same meaning as in section 2-100 of the election law.
19. In addition to any penalty contained in any other provision of law, any person who knowingly and intentionally violates the provisions of subdivisions two through five, seven, seven-a, eight, twelve or fourteen through [seventeen] eighteen of this section shall be subject to a civil penalty in an amount not to exceed forty thousand dollars and the value of any gift, compensation or benefit received in connection with such violation. Assessment of a civil penalty hereunder shall be made by the state oversight body with jurisdiction over such person. A state oversight body acting pursuant to its jurisdiction, may, in lieu of a civil penalty, with respect to a violation of subdivisions two through five, seven or eight of this section, refer a violation of any such
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10931-03-7
A. 7645 2
subdivision to the appropriate prosecutor and upon such conviction such violation shall be punishable as a class A misdemeanor.
§ 2. Subdivision 1 of section 2825 of the public authorities law, as amended by chapter 766 of the laws of 2005, is amended to read as follows:
1. No public officer or employee shall be ineligible for appointment as a trustee or member of the governing body of a state or local authority, as defined in section two of this chapter, and any public officer or employee may accept such appointment and serve as such trustee or member without forfeiture of any other public office or position of public employment by reason thereof. Provided, additionally, no person who holds any public office or is an officer in a party committee, or firm or association of which such person is a member, or corporation, ten per centum or more of the stock which is owned or controlled directly or indirectly by such person, shall receive compensation for legal fees, consulting, or any other contractual expenditure for services, whether actually performed or not, from a state or local authority. For the purposes of this subdivision, the term "party committee" shall have the same meaning as in section 2-100 of the election law.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.