What's happening
This bill prohibits public officials and party committee officers from receiving compensation for services performed for state or local authorities.
Why it matters
Targets Conflicts of Interest. By banning public officials and party committee officers from receiving payments—directly or indirectly—for legal, consulting, or other services from state or local authorities, the bill aims to prevent financial conflicts of interest that could undermine public trust or influence decision-making.
Closes Loopholes and Broadens Scope. The restriction extends beyond individuals to include firms, associations, or corporations where the official or officer has significant (10%+) ownership or control, making it harder to circumvent via business entities.
Strengthens Enforcement and Penalties. The bill amends the penalty structure, making violations subject to civil penalties up to $40,000 plus the value of any improper compensation, and in some cases, criminal prosecution, signaling serious consequences for unethical behavior.
Clarifies Definitions and Coverage. By explicitly referencing the definition of "party committee" from election law and specifying that the rule applies to compensation whether or not services are actually performed, the bill reduces ambiguity and strengthens enforceability.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Ban Officials’ Agency Payments
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
History
- Notice of committee consideration - withdrawn
- Notice of committee consideration - requested
- Referred to finance
- Referred to finance
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' Consulting Pay
In Assembly Committee · Governmental Operations · Sponsor Michaelle C. Solages
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5695
2017-2018 Regular Sessions
IN SENATE
April 26, 2017
Introduced by Sen. KAMINSKY -- read twice and ordered printed, and when printed to be committed to the Committee on Finance
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
S. 5695 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.
Sponsor's memo
Title of bill
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
SUMMARY OF PROVISIONS
Section 1 of the bill amends the Public Officers Law to prohibit persons holding public office and political party officers from receiving compensation for consulting or legal services from any state or local authority. Such a violation is punishable by forfeiture of any gains related to the prohibited action, as well as a civil penalty of up to $40,000.
Section 2 of the bill makes a conforming amendment to the Public Authorities Law reflecting the same prohibitions.
Section 3 of the bill is the effective date, which is immediate upon enactment.
Justification
This legislation arises in response to an instance wherein a local elected official collected hundreds of thousands of dollars in consulting fees from local industrial development agencies (IDAs) and local economic assistance corporations (LDCs) via outside employers and consulting companies, which resulted in a Justice Department indictment on eight criminal counts.
Even the State's auditor, the Comptroller, has encountered difficulty - and even litigation - in auditing IDAs' and LDCs' finances. These obstacles to basic transparency demonstrate these entities' power and the potential for misconduct with respect to expenditure of public dollars.
The current system seems to allow for a preference in appointments of those consultants or attorneys who are politically connected, as opposed to suitably qualified to advise the IDAs on issues that impact taxpayers in the jurisdiction. The members of the IDA are authorized to hire consultants to advise them in their decision-making capacity. When those consultants or attorneys have conflicts of interest and/or are not the best qualified candidate for the job, an injustice occurs that must be rectified.
To address this issue, this legislation prohibits public officeholders and party committee leaders from collecting consulting fees from state and local authorities either directly or through companies in which they have at least 10% ownership.
Elected officials can have significant influence over state and local revenues and spending plans, and can have access to agencies that private companies may not. It is time for them to choose whether they want to serve the public or private clients.
Legislative history
New bill.
Fiscal implications
No negative impact anticipated. To the extent that public actions are less affected by officials' private interests, it may reduce state and local expenditures. 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.