What's happening
This bill prohibits statewide elected officials or legislators from directing state funds to entities where they or certain relatives hold positions.
Why it matters
Closes a key conflict-of-interest loophole. By barring officials from directing state funds to entities where they or close relatives have official or even volunteer roles, the bill aims to prevent self-dealing and favoritism that can compromise public trust.
Casts a wide net on relationships. The prohibition covers not just the officials themselves, but also their domestic partners, blood relatives, relatives by marriage or adoption, and even people they employ, making it harder for officials to indirectly benefit their networks.
Enhances enforcement and penalties. Violators face significant civil penalties—up to $40,000 plus any benefit received—and possible criminal charges, signaling a tougher stance on ethics violations.
Targets both business and non-profit sectors. The bill applies to all types of entities, including not-for-profits, acknowledging that conflicts of interest and potential for abuse can exist outside of traditional business relationships.
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Who cares
Headline styles
Ban Self-Dealing for Lawmakers
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- 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 Lawmaker Self-Dealing Funds
In Assembly Committee · Governmental Operations · Sponsor Sandy Galef
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6306
2017-2018 Regular Sessions
IN SENATE
May 11, 2017
Introduced by Sen. AVELLA -- read twice and ordered printed, and when printed to be committed to the Committee on Finance
AN ACT to amend the public officers law, in relation to prohibiting members of the legislature from obtaining funding and providing such funds to any business entity or not-for-profit entities in which such officials, members, domestic partners or certain relatives hold official or legal positions
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 and renumbered subdivision 19 and a new subdivision 18 is added to read as follows:
18. No statewide elected official or member of the legislature shall obtain any funding through state grants or member items, and subsequently provide such funds to any corporation, partnership, limited liability corporation, other business entity or not-for-profit entity in which such official, member or any relative by blood, marriage or adoption of such official or member, domestic partner or a person working in the employ of such member holds an official or legal position, including but not limited to working on an unpaid, volunteer basis.
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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10588-01-7
S. 6306 2
five, seven or eight of this section, refer a violation of any such subdivision to the appropriate prosecutor and upon such conviction such violation shall be punishable as a class A misdemeanor.
§ 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 public officers law, in relation to prohibiting members of the legislature from obtaining funding and providing such funds to any business entity or not-for-profit entities in which such officials, members, domestic partners or certain relatives hold official or legal positions
Purpose or general idea of bill
The general purpose of this legislation is to prohibit members of the legislature from obtaining funding and providing such funds to any business entity or not-for-profit entities in which such officials, their family members or staff hold official or legal positions.
Summary of provisions
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 and renumbered subdivision 19 and a new subdivision 18 is added to read as follows: 18. No statewide elected official or member of the legislature shall obtain any funding through state grants or member items, and subsequently provide such funds to any corporation, partnership, limited liability corporation, other business entity or not-for-profit entity in which such official, member or any relative by blood, marriage or adoption of such official or member, domestic partner or a person working in the employ of such member holds an official or legal position, including but not limited to working on an unpaid, volunteer basis.
Section 2. Establishes the effective date.
Justification
Members of the New York State Legislature are public servants elected by voters to serve with integrity. Many execute their functions honorably, yet others have broken the law by using the power of their elected position to further their financial interests. Those who put personal gain above the public good corrode the public's trust in their elected officials, and the political process. The mounting public mistrust and cynicism damage the reputation and work of all elected officials, which is particularly unfair to those who have been upright and honest.
New York statute only loosely provides ethical considerations related to conflicts-of-interest with family members through the Public Officers Law, Article 4 § 74, whereas a member of the legislature "should not by his conduct give reasonable basis for the impression that any person can improperly influence him or unduly enjoy his favor or in the performance of his official duties or that he is affected by the kinship, rank, position or influence of any party or person."
While a public official's conscience cannot be legislated, the opportunity for illegal activity can be removed. This legislation codifies a conflict-of-interest standard; namely in the distribution of state and public funds to organizations that have ties to a state legislator through people within their inner circle. Even if the connection between the lawmaker and the organization is benign, the potential for negative optics and dubious associated suspicions abound. This legislation removes an available avenue where personal interest can be placed above public interest.
Prior legislative history
2017: A.6808 (Galef)-Referred to Governmental Operations 2016: A.5006-C (Galef)-Amend and recommit to Governmental Operations 2015: A.5006 (Galef)-Referred to Governmental Operations 2013-14: A. 5718 (Galef)-- Referred to Governmental Operations 2012: A. 9864(Galef)/S. 3332 (Bonacic)-Referred to Governmental Operations (Assembly)/Referred to Finance (Senate) 2011: A. 5228 Galef--(enacting clause was stricken)
Fiscal implications for state and local governments
There are no fiscal implications associated with this legislation.
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.