What's happening
This bill prohibits corporations receiving public financing in New York from giving gifts to public officials, enforcing strict penalties for violations.
Why it matters
Closes loopholes by expanding the definition of "gift". to encompass not just traditional presents or payments, but also special privileges, benefits, or rights provided to public officials but not to the general public—making it harder for corporations to curry favor through indirect means.
Targets all corporations benefiting from public financing. , including those receiving grants, subsidies, tax breaks, or public debt, ensuring that any company aided by taxpayer resources is held to high ethical standards.
Imposes strict, revenue-based penalties. , with fines that escalate sharply for larger corporations and criminal liability for corporate officers or directors who knowingly break the law, creating strong deterrents for both organizations and individuals.
Empowers the New York State Attorney General with enforcement authority. , centralizing oversight and strengthening accountability by giving a single office clear power to investigate and penalize violations.
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Who cares
Headline styles
Ban Corporate Gifts to Officials
Plain English, a few words. Used as the page title.
Sponsors
Assembly Member · Assembly District 44
No co-sponsors yet.
History
- Referred to governmental operations
- Referred to governmental operations
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3563
2019-2020 Regular Sessions
IN ASSEMBLY
January 29, 2019
Introduced by M. of A. CARROLL -- read once and referred to the Committee on Governmental Operations
AN ACT to amend the business corporation law, in relation to prohibiting gifts to public officials
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The business corporation law is amended by adding a new section 204 to read as follows: § 204. Prohibition of gifts to public officials.
(a) For the purposes of this section:
(1) the terms "gift" and "public official" shall have the same meaning as those terms are defined in the legislative law, except that the term "gift", in addition to the definition set forth in the legislative law, shall include any privileges, benefits or rights that are offered, provided or made available to a public official but not to the general public.
(2) the term "public financing" shall include, but not be limited to, state or local grants, subsidies, tax exemptions or credits, tax abatements, payments in lieu of taxes, and any debt issued by a state or local agency, a public authority or a public benefit corporation.
(b)(1) Notwithstanding any provision of law to the contrary, no domestic corporation, foreign corporation, or any subsidiary of such corporation which (i) is authorized to do or does business in this state and (ii) receives directly or indirectly any form or type of public financing shall offer, give or provide a gift to any public official.
(2) Nothing in this section shall be construed to prohibit or prevent a corporation from offering, giving or providing goods or services to a public official on the same terms and conditions as goods or services are offered or provided to the general public.
(c)(1) Any corporation that violates any provisions of this section and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
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A. 3563 2
(i) generates annual gross revenues of less than one million dollars shall be subject to a fine of up to five thousand dollars;
(ii) generates annual gross revenues of between one and five million dollars shall be subject to a fine of up to ten thousand dollars but not less than five thousand dollars;
(iii) generates annual gross revenues of more than five million dollars but less than ten million dollars shall be subject to a fine of up to fifty thousand dollars but not less than ten thousand dollars; and
(iv) generates annual gross revenues of more than ten million dollars shall be subject to a fine of up to two hundred and fifty thousand dollars but not less than fifty thousand dollars;
(2) Any director or officer who knowingly violates the provisions of this section shall be guilty of a class A misdemeanor, and shall be subject to a monetary fine of up to six times the value of the gift.
(d) The New York state attorney general shall be empowered and authorized to enforce compliance with this section, including imposing the appropriate penalties on those parties who are found to have violated the provisions of this section.
§ 2. 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.