What's happening
This bill creates new criminal offenses for public servants who secretly benefit themselves or associates through undisclosed self-dealing in public contracts.
Why it matters
Expands criminal liability for self-dealing. The bill creates two new felony offenses targeting public servants who exploit their positions for personal gain or to benefit close associates, even if the advantage is conferred indirectly or through attempts (not just successful transactions).
Covers a broad network of relationships. The law applies not only to benefits for the public servant themselves, but also for their immediate family members, domestic partners, business associates, and entities in which they have a current or potential interest—addressing situations where officials might try to hide conflicts through proxies.
Establishes clear thresholds and disclosure requirements. The severity of the offense depends on the value of the benefit (over $3,000 for second degree, over $10,000 for first degree), and the law provides an explicit mechanism for avoiding liability: disclosure to an ethics commission or a non-involved appointing official.
Aims to close existing gaps in anti-corruption laws. By criminalizing undisclosed self-dealing regardless of whether the benefit is direct or indirect, and by specifying what counts as disclosure, the legislation seeks to create stronger deterrents and clearer standards for ethical conduct in public service.
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Who cares
Headline styles
Ban Secret Self-Dealing
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Referred to codes
- Referred to codes
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.
Crack Down on Corrupt Officials
In Assembly Committee · Codes · Sponsor Charles Lavine
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
124
2017-2018 Regular Sessions
IN SENATE (Prefiled)
January 4, 2017
Introduced by Sens. HOYLMAN, KENNEDY -- read twice and ordered printed, and when printed to be committed to the Committee on Codes
AN ACT to amend the penal law, in relation to undisclosed self-dealing
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The penal law is amended by adding two new sections 195.30 and 195.35 to read as follows: § 195.30 Undisclosed self-dealing in the second degree.
A person is guilty of undisclosed self-dealing in the second degree when, being a public servant, he or she intentionally engages in conduct or a course of conduct in his or her official capacity in connection with the award of a public contract or public grant or other effort to obtain or retain public business or public funds that is intended to confer an undisclosed benefit on himself, herself, a spouse, domestic partner, child, parent, or sibling of the public servant, a person with whom a public servant has a business or other financial relationship, or a firm in which the public servant has a present or potential interest and thereby obtains or attempts to obtain a benefit for himself, herself, a spouse, domestic partner, child, parent, or sibling of the public servant, a person with whom a public servant has a business or other financial relationship, or a firm in which the public servant has a present or potential interest with a value in excess of three thousand dollars. A benefit is disclosed if its existence is made known prior to the alleged wrongful conduct to either (i) the relevant state or local ethics commission or (ii) the official responsible for the public servant's appointment to his or her position, provided that person is not a participant in the alleged wrongful conduct.
Undisclosed self-dealing in the second degree is a class D felony. § 195.35 Undisclosed self-dealing in the first degree.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05319-01-7
S. 124 2
A person is guilty of undisclosed self-dealing in the first degree when, being a public servant, he or she intentionally engages in conduct or a course of conduct in his or her official capacity in connection with the award of a public contract or public grant or other effort to obtain or retain public business or public funds that is intended to confer an undisclosed benefit on himself, herself, a spouse, domestic partner, child, parent, or sibling of the public servant, a person with whom a public servant has a business or other financial relationship, or a firm in which the public servant has a present or potential interest and thereby obtains or attempts to obtain a benefit for himself, herself, a spouse, domestic partner, child, parent, or sibling of the public servant, a person with whom a public servant has a business or other financial relationship, or a firm in which the public servant has a present or potential interest with a value in excess of ten thousand dollars. A benefit is disclosed if its existence is made known prior to the alleged wrongful conduct to either (i) the relevant state or local ethics commission or (ii) the official responsible for the public servant's appointment to his or her position, provided that person is not a participant in the alleged wrongful conduct.
Undisclosed self-dealing in the first degree is a class C felony.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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, their families, or their businesses or employers.
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, the benefit of their families, or for the benefit of their businesses or employers. 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
S.500-A of 2015-2016 (Hoylman): Died in Codes A.5160 of 2015-2016 (Lavine): Died in Codes S.7531 of 2014 (Hoylman): Died in Codes
Fiscal implications
None to the state.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.