Bill Text: NY S00413 | 2021-2022 | General Assembly | Introduced
Bill Title: Enacts the consulting act to regulate the activities of persons and organizations retained, employed or designated to influence the passage or defeat of state legislation, rules or regulations, or rate making proceedings or influence the passage or defeat of local laws, ordinances or regulations.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-01-05 - REFERRED TO ETHICS AND INTERNAL GOVERNANCE [S00413 Detail]
Download: New_York-2021-S00413-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 413 2021-2022 Regular Sessions IN SENATE (Prefiled) January 6, 2021 ___________ Introduced by Sen. BIAGGI -- read twice and ordered printed, and when printed to be committed to the Committee on Ethics and Internal Gover- nance AN ACT to amend the legislative law, in relation to creating the consulting act The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The legislative law is amended by adding a new article 1-B 2 to read as follows: 3 ARTICLE 1-B 4 CONSULTING ACT 5 Section 1-aa. Short title. 6 1-bb. Definitions. 7 1-cc. Powers of the commission. 8 1-dd. Statement of registration. 9 1-ee. Monthly registration docket. 10 1-ff. Termination of retainer, employment or designation. 11 1-gg. Bi-monthly reports. 12 1-hh. Contingent retainer. 13 1-ii. Reports involving disbursement of public monies. 14 1-jj. Prohibition of gifts. 15 1-kk. Penalties. 16 1-ll. Enforcement. 17 1-mm. Record of appearances. 18 1-nn. Publication of statement on consultant disclosure regu- 19 lations. 20 1-oo. Public access to records. 21 1-pp. Applicability of certain laws. 22 1-qq. Separability clause. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02948-01-1S. 413 2 1 § 1-aa. Short title. This article shall be known and may be cited as 2 the "consulting act". 3 § 1-bb. Definitions. As used in this article unless the context other- 4 wise requires: 5 (a) The term "client" shall mean every person or organization who 6 retains, employs or designates any person or organization to carry on 7 consulting activities on behalf of such client. 8 (b) The term "organization" shall mean any corporation, company, foun- 9 dation, association, college as defined by section two of the education 10 law, labor organization, firm, partnership, society, joint stock compa- 11 ny, state agency or public corporation. 12 (c) The term "state agency" shall mean any department, board, bureau, 13 commission, division, office, council, committee or officer of the 14 state, whether permanent or temporary, or a public benefit corporation 15 or public authority at least one of whose members is appointed by the 16 governor, authorized by law to make rules or to make final decisions in 17 adjudicatory proceedings but shall not include the judicial branch or 18 agencies created by interstate compact or international agreement. 19 (d) The term "commission" shall mean the joint commission on public 20 ethics created by section ninety-four of the executive law. 21 (e) The term "expense" or "expenses" shall mean any expenditures 22 incurred by or reimbursed to the consultant for consulting but shall not 23 include contributions reportable pursuant to article fourteen of the 24 election law. 25 (f) The term "compensation" shall mean any salary, fee, gift, payment, 26 benefit, loan, advance or any other thing of value paid, owed, given or 27 promised to the consultant by the client for consulting but shall not 28 include contributions reportable pursuant to article fourteen of the 29 election law. 30 (g) The term "public corporation" shall mean a municipal corporation, 31 a district corporation, or a public benefit corporation as defined in 32 section sixty-six of the general construction law. 33 (h) The term "gift" shall mean anything of more than nominal value 34 given to a public official in any form including, but not limited to 35 money, service, loan, travel, lodging, meals, refreshments, enter- 36 tainment, discount, forbearance, or promise, having a monetary value. 37 The following are excluded from the definition of a gift: 38 (i) complimentary attendance, including food and beverage, at bona 39 fide charitable or political events; 40 (ii) complimentary attendance, food and beverage offered by the spon- 41 sor of a widely attended event. The term "widely attended event" shall 42 mean an event: (A) which at least twenty-five individuals other than 43 members, officers, or employees from the governmental entity in which 44 the public official serves attend or were, in good faith, invited to 45 attend, and (B) which is related to the attendee's duties or responsi- 46 bilities or which allows the public official to perform a ceremonial 47 function appropriate to his or her position. For the purposes of this 48 exclusion, a public official's duties or responsibilities shall include 49 but not be limited to either (1) attending an event or a meeting at 50 which a speaker or attendee addresses an issue of public interest or 51 concern as a significant activity at such event or meeting; or (2) for 52 elected public officials, or their staff attending with or on behalf of 53 such elected officials, attending an event or a meeting at which more 54 than one-half of the attendees, or persons invited in good faith to 55 attend, are residents of the county, district or jurisdiction from which 56 the elected public official was elected;S. 413 3 1 (iii) awards, plaques, and other ceremonial items which are publicly 2 presented, or intended to be publicly presented, in recognition of 3 public service, provided that the item or items are of the type custom- 4 arily bestowed at such or similar ceremonies and are otherwise reason- 5 able under the circumstances, and further provided that the functionali- 6 ty of such items shall not determine whether such items are permitted 7 under this paragraph; 8 (iv) an honorary degree bestowed upon a public official by a public or 9 private college or university; 10 (v) promotional items having no substantial resale value such as pens, 11 mugs, calendars, hats, and t-shirts which bear an organization's name, 12 logo, or message in a manner which promotes the organization's cause; 13 (vi) goods and services, or discounts for goods and services, offered 14 to the general public or a segment of the general public defined on a 15 basis other than status as a public official and offered on the same 16 terms and conditions as the goods or services are offered to the general 17 public or segment thereof; 18 (vii) gifts from a family member, member of the same household, or 19 person with a personal relationship with the public official, including 20 invitations to attend personal or family social events, when the circum- 21 stances establish that it is the family, household, or personal 22 relationship that is the primary motivating factor; in determining moti- 23 vation, the following factors shall be among those considered: (A) the 24 history and nature of the relationship between the donor and the recipi- 25 ent, including whether or not items have previously been exchanged; (B) 26 whether the item was purchased by the donor; and (C) whether or not the 27 donor at the same time gave similar items to other public officials; the 28 transfer shall not be considered to be motivated by a family, household, 29 or personal relationship if the donor seeks to charge or deduct the 30 value of such item as a business expense or seeks reimbursement from a 31 client; 32 (viii) contributions reportable under article fourteen of the election 33 law, including contributions made in violation of that article of the 34 election law; 35 (ix) travel reimbursement or payment for transportation, meals and 36 accommodations for an attendee, panelist or speaker at an informational 37 event or informational meeting when such reimbursement or payment is 38 made by a governmental entity or by an in-state accredited public or 39 private institution of higher education that hosts the event on its 40 campus, provided, however, that the public official may only accept 41 lodging from an institution of higher education: (A) at a location on or 42 within close proximity to the host campus; and (B) for the night preced- 43 ing and the nights of the days on which the attendee, panelist or speak- 44 er actually attends the event or meeting; 45 (x) provision of local transportation to inspect or tour facilities, 46 operations or property located in New York state, provided, however, 47 that such inspection or tour is related to the individual's official 48 duties or responsibilities and that payment or reimbursement for 49 expenses for lodging or travel expenses to and from the locality where 50 such facilities, operations or property are located shall be considered 51 to be gifts unless otherwise permitted under this subdivision; 52 (xi) meals or refreshments when participating in a professional or 53 educational program and the meals or refreshments are provided to all 54 participants; and 55 (xii) food or beverage valued at fifteen dollars or less.S. 413 4 1 (i) The term "municipality" shall mean any jurisdictional subdivision 2 of the state, including but not limited to counties, cities, towns, 3 villages, improvement districts and special districts, with a population 4 of more than five thousand, and industrial development agencies in 5 jurisdictional subdivisions with a population of more than five thou- 6 sand; and public authorities, and public corporations. 7 (j) The term "public official" shall mean: 8 (i) the governor, lieutenant governor, comptroller or attorney gener- 9 al; 10 (ii) members of the state legislature; 11 (iii) state officers and employees including: 12 (A) heads of state departments and their deputies and assistants other 13 than members of the board of regents of the university of the state of 14 New York who receive no compensation or are compensated on a per diem 15 basis, 16 (B) officers and employees of statewide elected officials, 17 (C) officers and employees of state departments, boards, bureaus, 18 divisions, commissions, councils or other state agencies, 19 (D) members or directors of public authorities, other than multi-state 20 authorities, public benefit corporations and commissions at least one of 21 whose members is appointed by the governor, and employees of such 22 authorities, corporations and commissions; 23 (iv) officers and employees of the legislature; and 24 (v) municipal officers and employees including an officer or employee 25 of a municipality, whether paid or unpaid, including members of any 26 administrative board, commission or other agency thereof and in the case 27 of a county, shall be deemed to also include any officer or employee 28 paid from county funds. No person shall be deemed to be a municipal 29 officer or employee solely by reason of being a volunteer firefighter or 30 civil defense volunteer, except a fire chief or assistant fire chief. 31 (k) The term "restricted period" shall mean the period of time 32 commencing with the earliest written notice, advertisement or solicita- 33 tion of a request for proposal, invitation for bids, or solicitation of 34 proposals, or any other method for soliciting a response from offerers 35 intending to result in a procurement contract with a state agency, 36 either house of the state legislature, the unified court system, or a 37 municipal agency, as that term is defined by paragraph (ii) of subdivi- 38 sion (q) of this section, and ending with the final contract award and 39 approval by the state agency, either house of the state legislature, the 40 unified court system, or a municipal agency, as that term is defined by 41 paragraph (ii) of subdivision (q) of this section, and, where applica- 42 ble, the state comptroller. 43 (l) The term "revenue contract" shall mean any written agreement 44 between a state or municipal agency or a local legislative body and an 45 offerer whereby the state or municipal agency or local legislative body 46 gives or grants a concession or a franchise. 47 (m) The term "article of procurement" shall mean a commodity, service, 48 technology, public work, construction, revenue contract, the purchase, 49 sale or lease of real property or an acquisition or granting of other 50 interest in real property, that is the subject of a governmental 51 procurement. 52 (n) The term "governmental procurement" shall mean: (i) the public 53 announcement, public notice, or public communication to any potential 54 vendor of a determination of need for a procurement, which shall 55 include, but not be limited to, the public notification of the specifi- 56 cations, bid documents, request for proposals, or evaluation criteriaS. 413 5 1 for a procurement contract, (ii) solicitation for a procurement 2 contract, (iii) evaluation of a procurement contract, (iv) award, 3 approval, denial or disapproval of a procurement contract, or (v) 4 approval or denial of an assignment, amendment (other than amendments 5 that are authorized and payable under the terms of the procurement 6 contract as it was finally awarded or approved by the comptroller, as 7 applicable), renewal or extension of a procurement contract, or any 8 other material change in the procurement contract resulting in a finan- 9 cial benefit to the offerer. 10 (o) The term "offerer" shall mean the individual or entity, or any 11 employee, agent or consultant of such individual or entity, that 12 contacts a state agency, either house of the state legislature, the 13 unified court system, a municipal agency or local legislative body about 14 a governmental procurement provided, however, that a governmental agency 15 or its employees that communicate with the procuring agency regarding a 16 governmental procurement in the exercise of its oversight duties shall 17 not be considered an offerer. 18 (p) The term "procurement contract" shall mean any contract or other 19 agreement, including an amendment, extension, renewal, or change order 20 to an existing contract (other than amendments, extensions, renewals, or 21 change orders that are authorized and payable under the terms of the 22 contract as it was finally awarded or approved by the comptroller, as 23 applicable), for an article of procurement involving an estimated annu- 24 alized expenditure in excess of fifteen thousand dollars. Grants, arti- 25 cle XI-B state finance law contracts, program contracts between not-for- 26 profit organizations, as defined in article XI-B of the state finance 27 law, and the unified court system, intergovernmental agreements, rail- 28 road and utility force accounts, utility relocation project agreements 29 or orders, contracts governing organ transplants, contracts allowing for 30 state participation in trade shows, and eminent domain transactions 31 shall not be deemed procurement contracts. 32 (q) The term "municipal agency" shall mean: (i) any department, board, 33 bureau, commission, division, office, council, committee or officer of a 34 municipality, whether permanent or temporary; or (ii) an industrial 35 development agency, located in a jurisdictional subdivision of the state 36 with a population of more than fifty thousand, or local public benefit 37 corporation, as that term is defined in section sixty-six of the general 38 construction law. 39 (r) The term "local legislative body" shall mean the board of supervi- 40 sors, board of aldermen, common council, council, commission, town 41 board, board of trustees or other elective governing board or body of a 42 municipality now or hereafter vested by state statute, charter or other 43 law with jurisdiction to initiate and adopt local laws, ordinances and 44 budgets, whether or not such local laws, ordinances or budgets require 45 approval of the elective chief executive officer or other official or 46 body to become effective. 47 (s) The term "commission salesperson" shall mean any person the prima- 48 ry purpose of whose employment is to cause or promote the sale of, or to 49 influence or induce another to make a purchase of an article of procure- 50 ment, whether such person is an employee (as that term is defined for 51 tax purposes) of or an independent contractor for a vendor, provided 52 that an independent contractor shall have a written contract for a term 53 of not less than six months or for an indefinite term, and which person 54 shall be compensated, in whole or in part, by the payment of a percent- 55 age amount of all or a substantial part of the sales which such person 56 has caused, promoted, influenced or induced, provided, however, that noS. 413 6 1 person shall be considered a commission salesperson with respect to any 2 sale to or purchase by a state agency, either house of the state legis- 3 lature, the unified court system, a municipal agency or local legisla- 4 tive body if the percentage amount of any commission payable with 5 respect to such sale or purchase is substantially in excess of any 6 commission payable with respect to any comparable sale to a purchaser 7 that is not a state agency, either house of the state legislature, the 8 unified court system, a municipal agency or local legislative body; 9 provided further, however, that any person that is required to file a 10 statement or report pursuant to this article by virtue of engaging in 11 consulting activities shall not be deemed to be a "commission salesper- 12 son" for purposes of this article. 13 (t) The term "unified court system" shall, for the purposes of this 14 article only, mean the unified court system of the state of New York, or 15 the office of court administration, where appropriate, other than town 16 and village justice courts in jurisdictions with a population under 17 fifty thousand, when it acts solely in an administrative capacity to 18 engage in governmental procurements and shall not include the unified 19 court system or any court of the state judiciary when it acts to hear 20 and decide cases of original or appellate jurisdiction or otherwise acts 21 in its judicial, as opposed to administrative, capacity. 22 (u) The term "reportable business relationship" shall mean a relation- 23 ship in which compensation is paid by a consultant or by a client of a 24 consultant, in exchange for any goods, services or anything of value, 25 the total value of which is in excess of one thousand dollars annually, 26 to be performed or provided by or intended to be performed or provided 27 by (i) any statewide elected official, state officer, state employee, 28 member of the legislature or legislative employee, or (ii) any entity in 29 which the consultant or the client of a consultant knows or has reason 30 to know the statewide elected official, state officer, state employee, 31 member of the legislature or legislative employee is a proprietor, part- 32 ner, director, officer or manager, or owns or controls ten percent or 33 more of the stock of such entity (or one percent in the case of a corpo- 34 ration whose stock is regularly traded on an established securities 35 exchange). 36 (v) The term "business dealings" shall mean (i) any contract, other 37 than an emergency contract or a contract procured through publicly-ad- 38 vertised competitive sealed bidding, which is for the procurement of 39 goods, services or construction that is entered into or in effect with 40 the public corporation at or above five hundred thousand dollars, or an 41 emergency contract, and shall include any contract for the underwriting 42 of the debt of the public corporation and the retention of any bond 43 counsel, disclosure counsel or underwriter's counsel in connection ther- 44 ewith; (ii) any acquisition or disposition of real property, other than 45 a public auction or competitive sealed bid transaction or the acquisi- 46 tion of property pursuant to the department of environmental protection 47 watershed land acquisition program, with the public corporation; (iii) 48 any concession, other than a concession awarded through publicly-adver- 49 tised competitive sealed bid, or any franchise from a public corporation 50 which has an estimated annual value at or above the dollar value defined 51 in paragraph (ii) of subdivision (w) of this section; or (iv) any 52 contract for the investment of pension funds, including investments in a 53 private equity firm and contracts with investment related consultants. 54 For purposes of this article, all contracts, concessions, franchises and 55 grants that are five thousand dollars or less in value shall be excludedS. 413 7 1 from any calculation as to whether a contract, concession, franchise or 2 grant is a business dealing with the public corporation. 3 (w) The term "contract" shall mean and include any agreement between a 4 public corporation or elected official and a contractor, or any agree- 5 ment between such a contractor and a subcontractor, which (i) is for the 6 provision of goods, services or construction and has a value that when 7 aggregated with the values of all other such agreements with the same 8 contractor or subcontractor and any franchises or concessions awarded to 9 such contractor or subcontractor during the immediately preceding 10 twelve-month period is valued at one hundred thousand dollars or more; 11 (ii) is for the provision of goods, services or construction, is awarded 12 to a sole source and is valued at ten thousand dollars or more; (iii) is 13 a concession and has a value that when aggregated with the value of all 14 other contracts held by the same concessionaire is valued at one hundred 15 thousand dollars or more; or (iv) is a franchise. 16 § 1-cc. Powers of the commission. In addition to any other powers and 17 duties provided by section ninety-four of the executive law, the commis- 18 sion shall, with respect to its consultant-related functions only, have 19 the power and duty to: 20 (a) administer and enforce all the provisions of this article; 21 (b) conduct a program of random audits subject to the terms and condi- 22 tions of this section. Any such program shall be carried out in the 23 following manner: 24 (i) The commission may randomly select reports or registration state- 25 ments required to be filed by consultants or clients pursuant to this 26 article for audit. Any such selection shall be done in a manner pursuant 27 to which the identity of any particular consultant or client whose 28 statement or report is selected for audit is unknown to the commission, 29 its staff or any of their agents prior to selection. 30 (ii) The commission shall develop protocols for the conduct of such 31 random audits. Such random audits may require the production of books, 32 papers, records or memoranda relevant and material to the preparation of 33 the selected statements or reports, for examination by the commission. 34 Any such protocols shall ensure that similarly situated statements or 35 reports are audited in a uniform manner. 36 (iii) The commission shall contract with an outside accounting entity, 37 which shall monitor the process pursuant to which the commission selects 38 statements or reports for audit and carries out the provisions of para- 39 graphs (i) and (ii) of this subdivision and certifies that such process 40 complies with the provisions of such paragraphs. 41 (iv) Upon completion of a random audit conducted in accordance with 42 the provisions of paragraphs (i), (ii) and (iii) of this subdivision, 43 the commission shall determine whether there is reasonable cause to 44 believe that any such statement or report is inaccurate or incomplete. 45 Upon a determination that such reasonable cause exists, the commission 46 may require the production of further books, records or memoranda, 47 subpoena witnesses, compel their attendance and testimony and administer 48 oaths or affirmations, to the extent the commission determines such 49 actions are necessary to obtain information relevant and material to 50 investigating such inaccuracies or omissions; 51 (c) conduct hearings pursuant to article seven of the public officers 52 law. Any hearing may be conducted as a video conference in accordance 53 with the provisions of subdivision four of section one hundred four of 54 the public officers law; 55 (d) prepare uniform forms for the statements and reports required by 56 this article;S. 413 8 1 (e) meet at least once during each bi-monthly reporting period of the 2 year as established by subdivision (a) of section one-gg of this article 3 and may meet at such other times as the commission, or the chair and 4 vice-chair jointly, shall determine; 5 (f) issue advisory opinions to those under its jurisdiction. Such 6 advisory opinions, which shall be published and made available to the 7 public, shall not be binding upon such commission except with respect to 8 the person to whom such opinion is rendered, provided, however, that a 9 subsequent modification by such commission of such an advisory opinion 10 shall operate prospectively only; and 11 (g) submit by the first day of March next following the year for which 12 such report is made to the governor and the members of the legislature 13 an annual report summarizing the commission's work, listing the consult- 14 ant's and clients required to register pursuant to this article and the 15 expenses and compensation reported pursuant to this article and making 16 recommendations with respect to this article. The commission shall make 17 this report available free of charge to the public. 18 (h) provide an online ethics training course for individuals regis- 19 tered as consultants pursuant to section one-dd of this article. The 20 curriculum for the course shall include, but not be limited to, explana- 21 tions and discussions of the statutes and regulations of New York 22 concerning ethics in the public officers law, the election law, the 23 legislative law, summaries of advisory opinions, underlying purposes and 24 principles of the relevant laws, and examples of practical application 25 of these laws and principles. The commission shall prepare those meth- 26 ods and materials necessary to implement the curriculum. Each individual 27 registered as a consultant pursuant to section one-dd of this article 28 shall complete such training course at least once in any three-year 29 period during which he or she is registered as a consultant. 30 § 1-dd. Statement of registration. (a) (i) Every consultant shall 31 annually file with the commission, on forms provided by the commission, 32 a statement of registration for each calendar year; provided, however, 33 that the filing of such statement of registration shall not be required 34 of any consultant who (A) in any year does not expend, incur or receive 35 an amount in excess of two thousand dollars for years prior to two thou- 36 sand six and in excess of five thousand dollars in the year two thousand 37 six and the years thereafter of reportable compensation and expenses, as 38 provided in paragraph (v) of subdivision (b) of section one-gg of this 39 article, for the purposes of consulting or (B) is an officer, director, 40 trustee or employee of any public corporation, when acting in such offi- 41 cial capacity; provided however, that nothing in this section shall be 42 construed to relieve any public corporation of the obligation to file 43 such statements and reports as required by this article. The amounts 44 expended, incurred, or received of reportable compensation and expenses 45 for consulting activities shall be computed cumulatively for all 46 consulting activities when determining whether the thresholds set forth 47 in this section have been met. 48 (ii) (A) Through calendar year two thousand twenty-six, such filing 49 shall be completed on or before January first by those persons who have 50 been retained, employed or designated as consultant on or before Decem- 51 ber fifteenth who reasonably anticipate that in the coming year they 52 will expend, incur or receive combined reportable compensation and 53 expenses in an amount in excess of two thousand dollars; for those 54 consultants retained, employed or designated after December fifteenth, 55 and for those consultants who subsequent to their retainer, employment 56 or designation reasonably anticipate combined reportable compensationS. 413 9 1 and expenses in excess of such amount, such filing must be completed 2 within fifteen days thereafter, but in no event later than ten days 3 after the actual incurring or receiving of such reportable compensation 4 and expenses. 5 (B) For calendar year two thousand twenty-seven, such filings shall be 6 completed on or before January first by those persons who have been 7 retained, employed or designated as consultant on or before December 8 fifteenth, two thousand twenty-six who reasonably anticipate that in the 9 coming year they will expend, incur or receive combined reportable 10 compensation and expenses in an amount in excess of two thousand 11 dollars; for those consultants retained, employed or designated after 12 December fifteenth, two thousand twenty-six, and for those consultants 13 who subsequent to their retainer, employment or designation reasonably 14 anticipate combined reportable compensation and expenses in excess of 15 such amount, such filing must be completed within fifteen days thereaft- 16 er, but in no event later than ten days after the actual incurring or 17 receiving of such reportable compensation and expenses. 18 (iii) Commencing calendar year two thousand twenty-eight and thereaft- 19 er every consultant shall biennially file with the commission, on forms 20 provided by the commission, a statement of registration for each bienni- 21 al period beginning with the first year of the biennial cycle commencing 22 calendar year two thousand twenty-eight and thereafter; provided, howev- 23 er, that the biennial filing of such statement of registration shall not 24 be required of any consultant who (A) in any year prior to calendar year 25 two thousand twenty-nine does not expend, incur or receive an amount in 26 excess of two thousand dollars of reportable compensation and expenses, 27 as provided in paragraph (v) of subdivision (b) of section one-gg of 28 this article, for the purposes of consulting and commencing with calen- 29 dar year two thousand twenty-two does not expend, incur or receive an 30 amount in excess of five thousand dollars of reportable compensation, as 31 provided in paragraph (v) of subdivision (b) of section one-gg of this 32 article for the purposes of consulting or (B) is an officer, director, 33 trustee or employee of any public corporation, when acting in such offi- 34 cial capacity; provided however, that nothing in this section shall be 35 construed to relieve any public corporation of the obligation to file 36 such statements and reports as required by this article. 37 (iv) Such biennial filings shall be completed on or before January 38 first of the first year of a biennial cycle commencing in calendar year 39 two thousand twenty-eight and thereafter, by those persons who have been 40 retained, employed or designated as consultant on or before December 41 fifteenth of the previous calendar year and who reasonably anticipate 42 that in the coming year they will expend, incur or receive combined 43 reportable compensation and expenses in an amount in excess of two thou- 44 sand dollars in years prior to calendar year two thousand twenty-nine 45 and five thousand dollars commencing in two thousand twenty-nine; for 46 those consultants retained, employed or designated after the previous 47 December fifteenth, and for those consultants who subsequent to their 48 retainer, employment or designation reasonably anticipate combined 49 reportable compensation and expenses in excess of such amount, such 50 filing must be completed within fifteen days thereafter, but in no event 51 later than ten days after the actual incurring or receiving of such 52 reportable compensation and expenses. 53 (b) (i) Such statements of registration shall be kept on file for a 54 period of three years for those filing periods where annual statements 55 are required, and shall be open to public inspection during such period;S. 413 10 1 (ii) Biennial statements of registration shall be kept on file for a 2 period of three biennial filing periods where biennial statements are 3 required, and shall be open to public inspection during such period. 4 (c) Such statement of registration shall contain: 5 (i) the name, address and telephone number of the consultant, and if 6 the consultant is an organization the names, addresses and telephone 7 numbers of any officer or employee of such consultant who engages in any 8 consulting activities or who is employed in an organization's division 9 that engages in consulting activities of the organization; 10 (ii) the name, address and telephone number of the client by whom or 11 on whose behalf the consultant is retained, employed or designated; 12 (iii) if such consultant is retained or employed pursuant to a written 13 agreement of retainer or employment, a copy of such shall also be 14 attached and if such retainer or employment is oral, a statement of the 15 substance thereof; such written retainer, or if it is oral, a statement 16 of the substance thereof, and any amendment thereto, shall be retained 17 for a period of three years; 18 (iv) a written authorization from the client by whom the consultant is 19 authorized to consult, unless such consultant has filed a written agree- 20 ment of retainer or employment pursuant to paragraph three of this 21 subdivision; 22 (v) the following information on which the consultant expects to 23 consult: (A) a description of the general subject or subjects, (B) the 24 legislative bill numbers of any bills, (C) the numbers or subject matter 25 (if there are no numbers) of gubernatorial executive orders or executive 26 orders issued by the chief executive officer of a municipality, (D) the 27 subject matter of and tribes involved in tribal-state compacts, memoran- 28 da of understanding, or any other state-tribal agreements and any state 29 actions related to class III gaming as provided in 25 U.S.C. § 2701, (E) 30 the rule, regulation, and ratemaking numbers of any rules, regulations, 31 rates, or municipal ordinances and resolutions, or proposed rules, regu- 32 lations, or rates, or municipal ordinances and resolutions, and (F) the 33 titles and any identifying numbers of any procurement contracts and 34 other documents disseminated by a state agency, either house of the 35 state legislature, the unified court system, municipal agency or local 36 legislative body in connection with a governmental procurement; 37 (vi) the name of the person, organization, or legislative body before 38 which the consultant is consulting or expects to consult; 39 (vii) if the consultant is retained, employed or designated by more 40 than one client, a separate statement of registration shall be required 41 for each such client; 42 (viii) (A) the name and public office address of any statewide elected 43 official, state officer or employee, member of the legislature or legis- 44 lative employee and entity with whom the consultant has a reportable 45 business relationship; 46 (B) a description of the general subject or subjects of the trans- 47 actions between the consultant or consultants and the statewide elected 48 official, state officer or employee, member of the legislature or legis- 49 lative employee and entity; and 50 (C) the compensation, including expenses, to be paid and paid by 51 virtue of the business relationship. 52 (d) Any amendment to the information filed by the consultant in the 53 original statement of registration shall be submitted to the commission 54 on forms supplied by the commission within ten days after such amend- 55 ment, however, this shall not require the consultant to amend the entire 56 registration form.S. 413 11 1 (e) (i) The first statement of registration filed annually by each 2 consultant for calendar years through two thousand twenty-six shall be 3 accompanied by a registration fee of fifty dollars except that no regis- 4 tration fee shall be required of a public corporation. A fee of fifty 5 dollars shall be required for any subsequent statement of registration 6 filed by a consultant during the same calendar year; (ii) The first 7 statement of registration filed annually by each consultant for calendar 8 year two thousand twenty-five shall be accompanied by a registration fee 9 of one hundred dollars except that no registration fee shall be required 10 from any consultant who in any year does not expend, incur or receive an 11 amount in excess of five thousand dollars of reportable compensation and 12 expenses, as provided in paragraph (v) of subdivision (b) of section 13 one-gg of this article, for the purposes of consulting or of a public 14 corporation. A fee of one hundred dollars shall be required for any 15 subsequent statement of registration filed by a consultant during the 16 same calendar year; (iii) The first statement of registration filed 17 biennially by each consultant for the first biennial registration 18 requirements for calendar years two thousand twenty-eight and two thou- 19 sand twenty-nine and thereafter, shall be accompanied by a registration 20 fee of two hundred dollars except that no registration fee shall be 21 required from any consultant who in any year does not expend, incur or 22 receive an amount in excess of five thousand dollars of reportable 23 compensation and expenses, as provided in paragraph (v) of subdivision 24 (b) of section one-gg of this article, for the purposes of consulting or 25 of a public corporation. A fee of two hundred dollars shall be required 26 for any subsequent statement of registration filed by a consultant 27 during the same biennial period; (iv) The statement of registration 28 filed after the due date of a biennial registration shall be accompanied 29 by a registration fee that is prorated to one hundred dollars for any 30 registration filed after January first of the second calendar year 31 covered by the biennial reporting requirement. In addition to the fees 32 authorized by this section, the commission may impose a fee for late 33 filing of a registration statement required by this section not to 34 exceed twenty-five dollars for each day that the statement required to 35 be filed is late, except that if the consultant making a late filing has 36 not previously been required by statute to file such a statement, the 37 fee for late filing shall not exceed ten dollars for each day that the 38 statement required to be filed is late. 39 § 1-ee. Monthly registration docket. It shall be the duty of the 40 commission to compile a monthly docket of statements of registration 41 containing all information required by section one-dd of this article. 42 Each such monthly docket shall contain all statements of registration 43 filed during such month and all amendments to previously filed state- 44 ments of registration. Copies shall be made available for public 45 inspection. 46 § 1-ff. Termination of retainer, employment or designation. Upon the 47 termination of a consultant's retainer, employment or designation, such 48 consultant and the client on whose behalf such service has been rendered 49 shall both give written notice to the commission within thirty days 50 after the consultant ceases the activity that required such consultant 51 to file a statement of registration; however, such consultant shall 52 nevertheless comply with the bi-monthly reporting requirements up to the 53 date such activity has ceased as required by this article. The commis- 54 sion shall enter notice of such termination in the appropriate monthly 55 registration docket required by section one-ee of this article.S. 413 12 1 § 1-gg. Bi-monthly reports. (a) Any consultant required to file a 2 statement of registration pursuant to section one-dd of this article who 3 in any consultant year reasonably anticipates that during the year such 4 consultant will expend, incur or receive combined reportable compen- 5 sation and expenses in an amount in excess of five thousand dollars, as 6 provided in paragraph (v) of subdivision (b) of this section, for the 7 purpose of consulting, shall file with the commission a bi-monthly writ- 8 ten report, on forms supplied by the commission, by the fifteenth day 9 next succeeding the end of the reporting period in which the consultant 10 was first required to file a statement of registration. Such reporting 11 periods shall be the period of January first to the last day of Febru- 12 ary, March first to April thirtieth, May first to June thirtieth, July 13 first to August thirty-first, September first to October thirty-first 14 and November first to December thirty-first. 15 (b) Such bi-monthly report shall contain: 16 (i) the name, address and telephone number of the consultant; 17 (ii) the name, address and telephone number of the client by whom or 18 on whose behalf the consultant is retained, employed or designated; 19 (iii) the following information on which the consultant has consulted: 20 (A) a description of the general subject or subjects, (B) the legisla- 21 tive bill numbers of any bills, (C) the numbers or subject matter (if 22 there are no numbers) of gubernatorial executive orders or executive 23 orders issued by the chief executive officer of a municipality, (D) the 24 subject matter of and tribes involved in tribal-state compacts, memoran- 25 da of understanding, or any other state-tribal agreements and any state 26 actions related to class III gaming as provided in 25 U.S.C. § 2701, (E) 27 the rule, regulation, and ratemaking or municipal ordinance or resol- 28 ution numbers of any rules, regulations, or rates or ordinance or 29 proposed rules, regulations, or rates or municipal ordinances or resol- 30 utions, and (F) the titles and any identifying numbers of any procure- 31 ment contracts and other documents disseminated by a state agency, 32 either house of the state legislature, the unified court system, munici- 33 pal agency or local legislative body in connection with a governmental 34 procurement; 35 (iv) the name of the person, organization, or legislative body before 36 which the consultant has consulted; 37 (v) (A) the compensation paid or owed to the consultant, and any 38 expenses expended, received or incurred by the consultant for the 39 purpose of consulting. 40 (B) expenses required to be reported pursuant to subparagraph (A) of 41 this paragraph shall be listed in the aggregate if seventy-five dollars 42 or less and if more than seventy-five dollars such expenses shall be 43 detailed as to amount, to whom paid, and for what purpose; and where 44 such expense is more than seventy-five dollars on behalf of any one 45 person, the name of such person shall be listed. 46 (C) for the purposes of this paragraph, expenses shall not include: 47 (1) personal sustenance, lodging and travel disbursements of such 48 consultant; 49 (2) expenses, not in excess of five hundred dollars in any one calen- 50 dar year, directly incurred for the printing or other means of reprod- 51 uction or mailing of letters, memoranda or other written communications. 52 (D) expenses paid or incurred for salaries other than that of the 53 consultant shall be listed in the aggregate. 54 (E) expenses of more than fifty dollars shall be paid by check or 55 substantiated by receipts and such checks and receipts shall be kept on 56 file by the consultant for a period of three years.S. 413 13 1 (c) (i) All such bi-monthly reports shall be subject to review by the 2 commission. 3 (ii) Such bi-monthly reports shall be kept on file for three years and 4 shall be open to public inspection during such time. 5 (iii) In addition to the filing fees authorized by this article, the 6 commission may impose a fee for late filing of a bi-monthly report 7 required by this section not to exceed twenty-five dollars for each day 8 that the report required to be filed is late, except that if the 9 consultant making a late filing has not previously been required by 10 statute to file such a report, the fee for late filing shall not exceed 11 ten dollars for each day that the report required to be filed is late. 12 (iv) Any consultant registered pursuant to section one-dd of this 13 article whose consulting activity is performed on its own behalf and not 14 pursuant to retention by a client: 15 (A) that has spent over fifty thousand dollars for reportable compen- 16 sation and expenses for consulting either during the calendar year, or 17 during the twelve-month period, prior to the date of this bi-monthly 18 report, and 19 (B) at least three percent of whose total expenditures during the same 20 period were devoted to consulting in New York shall report to the 21 commission the names of each source of funding over five thousand 22 dollars from a single source that were used to fund the consulting 23 activities reported and the amounts received from each identified source 24 of funding. 25 This disclosure shall not require disclosure of the sources of funding 26 whose disclosure, in the determination of the commission based upon a 27 review of the relevant facts presented by the reporting consultant, may 28 cause harm, threats, harassment, or reprisals to the source or to indi- 29 viduals or property affiliated with the source. The reporting consultant 30 may appeal the commission's determination and such appeal shall be heard 31 by a judicial hearing officer who is independent and not affiliated with 32 or employed by the commission, pursuant to regulations promulgated by 33 the commission. The reporting consultant shall not be required to 34 disclose the sources of funding that are the subject of such appeal 35 pending final judgment on appeal. 36 The disclosure shall not apply to: 37 (i) any corporation registered pursuant to article seven-A of the 38 executive law that is qualified as an exempt organization by the United 39 States Department of the Treasury under I.R.C. § 501(c)(3); 40 (ii) any corporation registered pursuant to article seven-A of the 41 executive law that is qualified as an exempt organization by the United 42 States Department of the Treasury under I.R.C. § 501(c)(4) and whose 43 primary activities concern any area of public concern determined by the 44 commission to create a substantial likelihood that application of this 45 disclosure requirement would lead to harm, threats, harassment, or 46 reprisals to a source of funding or to individuals or property affil- 47 iated with such source, including but not limited to the area of civil 48 rights and civil liberties and any other area of public concern deter- 49 mined pursuant to regulations promulgated by the commission to form a 50 proper basis for exemption on this basis from this disclosure require- 51 ment; or 52 (iii) any governmental entity. 53 The joint commission on public ethics shall promulgate regulations to 54 implement these requirements.S. 413 14 1 § 1-hh. Contingent retainer. (a) No client shall retain or employ any 2 consultant for compensation, the rate or amount of which compensation in 3 whole or part is contingent or dependent upon: 4 (i) (A) the passage or defeat of any legislative bill or the approval 5 or veto of any legislation by the governor, (B) the terms, issuance, 6 modification or rescission of a gubernatorial executive order, (C) the 7 terms, approval or disapproval, or the implementation and administration 8 of tribal-state compacts, memoranda of understanding, or any other 9 tribal-state agreements and any state actions related to class III 10 gaming as provided in 25 U.S.C. § 2701, or (D) the adoption or rejection 11 of any code, rule or regulation having the force and effect of law or 12 the outcome of any rate making proceeding by a state agency; 13 (ii)(A) the passage or defeat of any local law, ordinance, regulation 14 or resolution by any municipality or subdivision thereof, (B) the terms, 15 issuance, modification or rescission of an executive order issued by the 16 chief executive officer of a municipality, or (C) the adoption, 17 rejection or implementation of any rule, resolution or regulation having 18 the force and effect of a local law, ordinance or regulation or any rate 19 making proceeding by any municipality or subdivision thereof; 20 (iii) any determination by a state agency, either house of the state 21 legislature, the unified court system, municipal agency or local legis- 22 lative body with respect to a governmental procurement or a grant, loan 23 or agreement involving the disbursement of public monies. 24 (b) No person shall accept such a retainer or employment. A violation 25 of this section shall be a class A misdemeanor. 26 § 1-ii. Reports involving disbursement of public monies. (a) Any 27 consultant required to file a statement of registration pursuant to 28 section one-dd of this article who in any consulting year reasonably 29 anticipates that during the year they will expend, incur or receive 30 combined reportable compensation and expenses in an amount in excess of 31 five thousand dollars shall file with the commission, on forms supplied 32 by the commission, a report of any attempts to influence a determination 33 by a public official, or by a person or entity working in cooperation 34 with a public official, with respect to the solicitation, award or 35 administration of a grant, loan, or agreement involving the disbursement 36 of public monies in excess of fifteen thousand dollars other than a 37 governmental procurement as defined in section one-bb of this article. 38 (b) Such public monies consulting reports shall contain: 39 (i) the name, address and telephone number of the consultant and the 40 individuals employed by the consultant engaged in such public monies 41 consulting activities; 42 (ii) the name, address and telephone number of the client by whom or 43 on whose behalf the consultant is retained, employed or designated on 44 whose behalf the consultant has engaged in consulting reportable under 45 this paragraph; 46 (iii) a description of the grant, loan, or agreement involving the 47 disbursement of public monies on which the consultant has consulted; 48 (iv) the name of the person, organization, or legislative body before 49 which the consultant has engaged in consulting reportable under this 50 paragraph; and 51 (v) the compensation paid or owed to the consultant, and any expenses 52 expended, received or incurred by the consultant for the purpose of 53 consulting reportable under this paragraph. 54 (c) Public monies consulting reports required pursuant to this section 55 shall be filed in accordance with the schedule applicable to the filing 56 of bi-monthly reports pursuant to section one-gg of this article andS. 413 15 1 shall be filed not later than the fifteenth day next succeeding the end 2 of such reporting period. 3 (d) In addition to any other fees authorized by this section, the 4 commission may impose a fee for late filing of a report required by this 5 subdivision not to exceed twenty-five dollars for each day that the 6 report required to be filed is late, except that if the consultant 7 making a late filing has not previously been required by statute to file 8 such a report, the fee for late filing shall not exceed ten dollars for 9 each day that the report required to be filed is late. 10 (e) All reports filed pursuant to this subdivision shall be subject to 11 review by the commission. Such reports shall be kept in electronic form 12 by the commission and shall be available for public inspection. 13 § 1-jj. Prohibition of gifts. No individual or entity required to be 14 listed on a statement of registration pursuant to this article shall 15 offer or give a gift to any public official as defined within this arti- 16 cle, unless under the circumstances it is not reasonable to infer that 17 the gift was intended to influence such public official. No individual 18 or entity required to be listed on a statement of registration pursuant 19 to this article shall offer or give a gift to the spouse or unemancipat- 20 ed child of any public official as defined within this article under 21 circumstances where it is reasonable to infer that the gift was intended 22 to influence such public official. No spouse or unemancipated child of 23 an individual required to be listed on a statement of registration 24 pursuant to this article shall offer or give a gift to a public official 25 under circumstances where it is reasonable to infer that the gift was 26 intended to influence such public official. This section shall not apply 27 to gifts to officers, members or directors of boards, commissions, coun- 28 cils, public authorities or public benefit corporations who receive no 29 compensation or are compensated on a per diem basis, unless the person 30 listed on the statement of registration appears or has matters pending 31 before the board, commission or council on which the recipient sits. 32 § 1-kk. Penalties. (a) (i) Any consultant, public corporation, or 33 client who knowingly and wilfully fails to file timely a report or 34 statement required by this section or knowingly and wilfully files false 35 information or knowingly and wilfully violates section one-jj of this 36 article shall be guilty of a class A misdemeanor; and 37 (ii) any consultant, public corporation, or client who knowingly and 38 wilfully fails to file timely a report or statement required by this 39 section or knowingly and wilfully files false information or knowingly 40 and wilfully violates section one-jj of this article, after having 41 previously been convicted in the preceding five years of the crime 42 described in paragraph (i) of this subdivision, shall be guilty of a 43 class E felony. Any consultant convicted of or pleading guilty to a 44 felony under the provisions of this section may be barred from acting as 45 a consultant for a period of one year from the date of the conviction. 46 For the purposes of this subdivision, the chief administrative officer 47 of any organization required to file a statement or report shall be the 48 person responsible for making and filing such statement or report unless 49 some other person prior to the due date thereof has been duly designated 50 to make and file such statement or report. 51 (b)(i) A consultant, public corporation, or client who knowingly and 52 wilfully fails to file a statement or report within the time required 53 for the filing of such report or knowingly and wilfully violates section 54 one-jj of this article shall be subject to a civil penalty for each such 55 failure or violation, in an amount not to exceed the greater of twenty- 56 five thousand dollars or three times the amount the person failed toS. 413 16 1 report properly or unlawfully contributed, expended, gave or received, 2 to be assessed by the commission. 3 (ii) A consultant, public corporation, or client who knowingly and 4 wilfully files a false statement or report shall be subject to a civil 5 penalty, in an amount not to exceed the greater of fifty thousand 6 dollars or five times the amount the person failed to report properly, 7 to be assessed by the commission. 8 (iii) Any consultant or client that knowingly and wilfully fails to 9 file a statement or report within the time required for the filing of 10 such report, knowingly and wilfully files a false statement or report, 11 or knowingly and wilfully violates section one-jj of this article, after 12 having been found by the commission to have knowing and wilfully commit- 13 ted such conduct or violation in the preceding five years, may be 14 subject to a determination that the consultant or client is prohibited 15 from engaging in consulting activities, for a period of one year. 16 (iv) Any consultant or client that knowingly and wilfully engages in 17 consulting activities, during the period in which they are prohibited 18 from engaging in consulting activities, may be subject to a determi- 19 nation that the consultant or client is prohibited from engaging in 20 consulting activities, for a period of up to four years, and shall be 21 subject to a civil penalty not to exceed fifty thousand dollars, plus a 22 civil penalty in an amount equal to five times the value of any gift, 23 compensation or benefit received as a result of the violation. 24 (v) A consultant, public corporation, or client who knowingly and 25 wilfully fails to retain their records pursuant to paragraph (iii) of 26 subdivision (c) of section one-dd of this article or subparagraph (E) of 27 paragraph (v) of subdivision (b) of section one-gg of this article, 28 shall be subject to a civil penalty in an amount of two thousand dollars 29 per violation to be assessed by the commission. 30 (c)(i) Any assessment or order to debar shall be determined only after 31 a hearing at which the party shall be entitled to appear, present 32 evidence and be heard. Any assessment or order to debar pursuant to this 33 section may only be imposed after the commission sends by certified and 34 first-class mail written notice of intent to assess a penalty or order 35 to debar and the basis for the penalty or order to debar. Any assessment 36 may be recovered in an action brought by the attorney general. 37 (ii) In assessing any fine or penalty pursuant to this section, the 38 commission shall consider: (A) as a mitigating factor that the consult- 39 ant, public corporation or client has not previously been required to 40 register, and (B) as an aggravating factor that the consultant, public 41 corporation or client has had fines or penalties assessed against it in 42 the past. The amount of compensation expended, incurred or received 43 shall be a factor to consider in determining a proportionate penalty. 44 (iii) Any consultant, public corporation or client who receives a 45 notice of intent to assess a penalty for knowingly and wilfully failing 46 to file a report or statement pursuant to subdivision (b) of this 47 section and who has never previously received a notice of intent to 48 assess a penalty for failing to file a report or statement required 49 under this section shall be granted fifteen days within which to file 50 the statement of registration or report without being subject to the 51 fine or penalty set forth in subdivision (b) of this section. Upon the 52 failure of such consultant, public corporation or client to file within 53 such fifteen day period, such consultant, public corporation or client 54 shall be subject to a fine or penalty pursuant to subdivision (b) of 55 this section.S. 413 17 1 (d) All moneys recovered by the attorney general or received by the 2 commission from the assessment of civil penalties authorized by this 3 section shall be deposited to the general fund. 4 § 1-ll. Enforcement. (a) All statements and reports required under 5 this article shall be subject to a declaration by the person making and 6 filing such statement and report that the information is true, correct 7 and complete to the best knowledge and belief of the signer under the 8 penalties of perjury. 9 (b) The commission shall be charged with the duty of reviewing all 10 statements and reports required under this article for violations, and 11 it shall be their duty, if they deem such to be wilful, to report such 12 determination to the attorney general or other appropriate authority. 13 (c) Upon receipt of notice of such failure from the commission, the 14 attorney general or other appropriate authority shall take such action 15 as he deems appropriate to secure compliance with the provisions of this 16 article. 17 § 1-mm. Record of appearances. The commission shall promulgate all 18 rules or regulations and any procedures, forms, or instructions neces- 19 sary to implement the provisions of section one hundred sixty-six of the 20 executive law relating to the quarterly filing of the record of appear- 21 ances before regulatory agencies. 22 § 1-nn. Publication of statement on consultant disclosure regulations. 23 The commission shall publish a statement on consulting regulations 24 setting forth the requirements of this article in a clear and brief 25 manner. Such statement shall contain an explanation of the registration 26 and filing requirements and the penalties for violation thereof, togeth- 27 er with such other information as the commission shall determine, and 28 copies thereof shall be made available to the public at convenient 29 locations throughout the state. 30 § 1-oo. Public access to records. The commission shall make informa- 31 tion furnished by consultants and clients available to the public for 32 inspection and copying in electronic and paper formats. Access to such 33 information shall also be made available for remote computer users 34 through the internet network. 35 § 1-pp. Applicability of certain laws. The provisions of this article 36 including, but not limited to, any proceeding or hearing conducted 37 pursuant hereto, shall be subject to the applicable provisions of the 38 state administrative procedure act and section seventy-three of the 39 civil rights law. 40 § 1-qq. Separability clause. If any part or provision of this article 41 or the application thereof to any person or organization is adjudged by 42 a court of competent jurisdiction to be unconstitutional, such judgment 43 shall not affect or impair any other part or provision or the applica- 44 tion thereof to any other person or organization, but shall be confined 45 in its operation to the part, provision, person or organization directly 46 involved in the controversy in which such judgment shall have been 47 rendered. 48 § 2. This act shall take effect immediately.
