S 4039: Prohibits certain persons from receiving compensation for legal fees, consulting, or other work performed for an industrial development agency, an economic assistance corporation or state or local authority; relates to consultant disclosure requirements.

  
  STATE OF NEW YORK ________________________________________________________________________ 4039 2025-2026 Regular Sessions  IN SENATE January 31, 2025 ___________ Introduced by Sen. SKOUFIS -- 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 public officers law, the public authorities law and the general municipal law, in relation to prohibiting certain persons from receiving compensation for legal fees, consulting, or other work performed for an industrial development agency, an economic assistance corporation, or from a state or local authority The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraphs (a) and (b) of subdivision 7 of section 73 of 2 the public officers law, as amended by section 3 of part K of chapter 3 286 of the laws of 2016, are amended to read as follows: 4 (a) No statewide elected official, or state officer or employee, other 5 than in the proper discharge of official state or local governmental 6 duties, or member of the legislature or legislative employee, or poli- 7 tical party [chairman] chair shall receive, directly or indirectly, or 8 enter into any agreement express or implied for, any compensation, in 9 whatever form, for the appearance or rendition of services by [himself, 10 herself] themself or another in relation to any case, proceeding, appli- 11 cation or other matter before a state agency where such appearance or 12 rendition of services is in connection with: 13 (i) the purchase, sale, rental or lease of real property, goods or 14 services, or a contract therefor, from, to or with any such agency; 15 (ii) any proceeding relating to rate making; 16 (iii) the adoption or repeal of any rule or regulation having the 17 force and effect of law; 18 (iv) the obtaining of grants of money or loans; 19 (v) licensing; [or] 20 (vi) any proceeding relating to a franchise provided for in the public 21 service law[.]; or EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07904-01-5 
 S. 4039 2 1 (vii) legal services, consulting, or any other contractual expenditure 2 for services, whether actually performed or not from a state or local 3 authority if such statewide elected official, state officer or employ- 4 ee, member of the legislature, legislative employee or political 5 party chair: (A) is directly contracted by a state or local authority 6 for the related services; (B) owns or controls directly or indirectly 7 ten per centum or more of stock in a corporation that is contracted 8 by a state or local authority for the related services; or (C) owns 9 or controls ten per centum or more of the capital, profits, or bene- 10 ficial interest in a firm or association that is contracted by a state 11 or local authority for the related services. 12 (b) No political party [chairman] chair in a county wholly included in 13 a city having a population of one million or more shall receive, direct- 14 ly or indirectly, or enter into any agreement express or implied for, 15 any compensation, in whatever form, for the appearance or rendition of 16 services by [himself, herself] themself or another in relation to any 17 case, proceeding, application or other matter before any city agency 18 where such appearance or rendition of services is in connection with: 19 (i) the purchase, sale, rental or lease of real property, goods or 20 services, or a contract therefor, from, to or with any such agency; 21 (ii) any proceeding relating to ratemaking; 22 (iii) the adoption or repeal of any rule or regulation having the 23 force and effect of law; 24 (iv) the obtaining of grants of money or loans; 25 (v) licensing. For purposes of this paragraph, the term "licensing" 26 shall mean any city agency activity respecting the grant, denial, 27 renewal, revocation, enforcement, suspension, annulment, withdrawal, 28 recall, cancellation or amendment of a license, permit or other form of 29 permission conferring the right or privilege to engage in (i) a profes- 30 sion, trade, or occupation or (ii) any business or activity regulated by 31 a regulatory agency of a city agency which in the absence of such 32 license, permit or other form of permission would be prohibited; [and] 33 (vi) any proceeding relating to a franchise[.]; and 34 (vii) legal services, consulting, or any other contractual expenditure 35 for services, whether actually performed or not from a state or local 36 authority if such political party chair: (A) is directly contracted by 37 a state or local authority for the related services; (B) owns or 38 controls directly or indirectly ten per centum or more of stock in a 39 corporation that is contracted by a state or local authority for the 40 related services; or (C) owns or controls ten per centum or more of the 41 capital, profits, or beneficial interest in a firm or association that 42 is contracted by a state or local authority for the related services. 43 § 2. Subdivision 1 of section 2825 of the public authorities law, as 44 amended by chapter 766 of the laws of 2005, is amended to read as 45 follows: 46 1. No public officer or employee shall be ineligible for appointment 47 as a trustee or member of the governing body of a state or local author- 48 ity, as defined in section two of this chapter, and any public officer 49 or employee may accept such appointment and serve as such trustee or 50 member without forfeiture of any other public office or position of 51 public employment by reason thereof. Provided, no statewide elected 52 official, state officer or employee, member of the legislature, legisla- 53 tive employee or political party chair as defined in sections seventy- 54 three and seventy-three-a of the public officers law shall receive 55 compensation for legal fees, consulting, or any other contractual 56 expenditure for services, whether actually performed or not, from a 
 S. 4039 3 1 state or local authority if such statewide elected official, state 2 officer or employee, member of the legislature, legislative employee or 3 political party chair: (i) is directly contracted by a state or local 4 authority for the related services; (ii) owns or controls directly or 5 indirectly ten per centum or more of stock in a corporation or that is 6 contracted by a state or local authority for the related services; or 7 (iii) owns or controls ten per centum or more of the capital, profits, 8 or beneficial interest in a firm or association that is contracted by a 9 state or local authority for the related services. 10 § 3. Section 801 of the general municipal law, as amended by chapter 11 1043 of the laws of 1965, is amended to read as follows: 12 § 801. Conflicts of interest prohibited. Except as provided in section 13 eight hundred two of this chapter, (1) no municipal officer or employee 14 shall have an interest in any contract with the municipality of which 15 [he is] they are an officer or employee, when such officer or employee, 16 individually or as a member of a board, has the power or duty to (a) 17 negotiate, prepare, authorize or approve the contract or authorize or 18 approve payment thereunder (b) audit bills or claims under the contract, 19 or (c) appoint an officer or employee who has any of the powers or 20 duties set forth above [and], (2) no chief fiscal officer, treasurer, or 21 [his] their deputy or employee, shall have an interest in a bank or 22 trust company designated as a depository, paying agent, registration 23 agent or for investment of funds of the municipality of which [he is] 24 they are an officer or employee, and (3) no municipal officer shall 25 receive compensation for legal fees, consulting, or any other contractu- 26 al expenditure for services, whether actually performed or not, from a 27 state or local authority if such municipal officer: (a) is directly 28 contracted by a state or local authority for the related services, (b) 29 owns or controls directly or indirectly ten percent or more of stock in 30 a corporation that is contracted by a state or local authority for the 31 related services, or (c) owns or controls ten percent or more of the 32 capital, profits, or beneficial interest in a firm or association that 33 is contracted by a state or local authority for the related services. 34 The provisions of this section shall in no event be construed to 35 preclude the payment of lawful compensation and necessary expenses of 36 any municipal officer or employee in one or more positions of public 37 employment, the holding of which is not prohibited by law. 38 § 4. This act shall take effect immediately, and apply to contracts 39 entered into on or after such effective date.