STATE OF NEW YORK ________________________________________________________________________ 3741--A 2025-2026 Regular Sessions IN SENATE January 29, 2025 ___________ Introduced by Sen. FERNANDEZ -- read twice and ordered printed, and when printed to be committed to the Committee on Ethics and Internal Gover- nance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the public officers law, in relation to required finan- cial disclosures for certain state and legislative officials, officers and employees The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph 8 of subdivision 3 of section 73-a of the public 2 officers law, as amended by section 18 of part QQ of chapter 56 of the 3 laws of 2022, subparagraphs (b), (b-2) and (c) as separately amended by 4 section 8 of part QQ of chapter 56 of the laws of 2022, is amended to 5 read as follows: 6 8. (a) If the reporting individual practices law, is licensed by the 7 department of state as a real estate broker or agent or practices a 8 profession licensed by the department of education, or works as a member 9 or employee of a firm required to register pursuant to section one-e of 10 the legislative law as a lobbyist, describe the services rendered for 11 which compensation was paid including a general description of the prin- 12 cipal subject areas of matters undertaken by such individual and princi- 13 pal duties performed. Specifically state whether the reporting individ- 14 ual provides services directly to clients. Additionally, if such an 15 individual practices with a firm or corporation and is a partner or 16 shareholder of the firm or corporation, give a general description of 17 principal subject areas of matters undertaken by such firm or corpo- 18 ration. 19 ____________________________________________________________________ 20 ____________________________________________________________________ 21 ____________________________________________________________________ EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08228-02-5
S. 3741--A 2 1 ____________________________________________________________________ 2 ____________________________________________________________________ 3 (b) [APPLICABLE ONLY TO NEW CLIENTS OR CUSTOMERS FOR WHOM SERVICES ARE 4 PROVIDED ON OR AFTER JULY FIRST, TWO THOUSAND TWELVE AND BEFORE DECEMBER 5 THIRTY-FIRST, TWO THOUSAND FIFTEEN, OR FOR NEW MATTERS FOR EXISTING 6 CLIENTS OR CUSTOMERS WITH RESPECT TO THOSE SERVICES THAT ARE PROVIDED ON 7 OR AFTER JULY FIRST, TWO THOUSAND TWELVE AND BEFORE DECEMBER 8 THIRTY-FIRST, TWO THOUSAND FIFTEEN: 9 If the reporting individual personally provides services to any person 10 or entity, or works as a member or employee of a partnership or corpo- 11 ration that provides such services (referred to hereinafter as a 12 "firm"), then identify each client or customer to whom the reporting 13 individual personally provided services, or who was referred to the firm 14 by the reporting individual, and from whom the reporting individual or 15 his or her firm earned fees in excess of $10,000 during the reporting 16 period for such services rendered in direct connection with: 17 (i) A contract in an amount totaling $50,000 or more from the state or 18 any state agency for services, materials, or property; 19 (ii) A grant of $25,000 or more from the state or any state agency 20 during the reporting period; 21 (iii) A grant obtained through a legislative initiative during the 22 reporting period; or 23 (iv) A case, proceeding, application or other matter that is not a 24 ministerial matter before a state agency during the reporting period. 25 For purposes of this question, "referred to the firm" shall mean: 26 having intentionally and knowingly taken a specific act or series of 27 acts to intentionally procure for the reporting individual's firm or 28 knowingly solicit or direct to the reporting individual's firm in whole 29 or substantial part, a person or entity that becomes a client of that 30 firm for the purposes of representation for a matter as defined in 31 subparagraphs (i) through (iv) of this paragraph, as the result of such 32 procurement, solicitation or direction of the reporting individual. A 33 reporting individual need not disclose activities performed while 34 lawfully acting pursuant to paragraphs (c), (d), (e) and (f) of subdivi- 35 sion seven of section seventy-three of this article. 36 The disclosure requirement in this question shall not require disclo- 37 sure of clients or customers receiving medical or dental services, 38 mental health services, residential real estate brokering services, or 39 insurance brokering services from the reporting individual or his or her 40 firm. The reporting individual need not identify any client to whom he 41 or she or his or her firm provided legal representation with respect to 42 investigation or prosecution by law enforcement authorities, bankruptcy, 43 or domestic relations matters. With respect to clients represented in 44 other matters, where disclosure of a client's identity is likely to 45 cause harm, the reporting individual shall request an exemption from the 46 commission on ethics and lobbying in government pursuant to section 47 ninety-four of the executive law, provided, however, that a reporting 48 individual who first enters public office after July first, two thousand 49 twelve, need not report clients or customers with respect to matters for 50 which the reporting individual or his or her firm was retained prior to 51 entering public office. 52 Client Nature of Services Provided 53 ________________________________________________________________________ 54 ________________________________________________________________________ 55 ________________________________________________________________________
S. 3741--A 3 1 ________________________________________________________________________ 2 ________________________________________________________________________ 3 (b-1) APPLICABLE ONLY TO NEW CLIENTS OR CUSTOMERS FOR WHOM SERVICES 4 ARE PROVIDED ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND FIFTEEN, OR 5 FOR NEW MATTERS FOR EXISTING CLIENTS OR CUSTOMERS WITH RESPECT TO THOSE 6 SERVICES THAT ARE PROVIDED ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOU- 7 SAND FIFTEEN (FOR PURPOSES OF THIS QUESTION, "SERVICES" SHALL MEAN 8 CONSULTATION, REPRESENTATION, ADVICE OR OTHER SERVICES):] 9 If the reporting individual receives income from employment reportable 10 in question 8(a) and personally provides services to any person or enti- 11 ty, or works as a member or employee of a partnership or corporation 12 that provides such services (referred to hereinafter as a "firm"), the 13 reporting individual shall identify each client or customer to whom the 14 reporting individual personally provided services, or who was referred 15 to the firm by the reporting individual, and from whom the reporting 16 individual or his or her firm earned fees in excess of $10,000 during 17 the reporting period in direct connection with: 18 (i) A contract in an amount totaling $10,000 or more from the state or 19 any state agency for services, materials, or property; 20 (ii) A grant of $10,000 or more from the state or any state agency 21 during the reporting period; 22 (iii) A grant obtained through a legislative initiative during the 23 reporting period; or 24 (iv) A case, proceeding, application or other matter that is not a 25 ministerial matter before a state agency during the reporting period. 26 For such services rendered by the reporting individual directly to 27 each such client, describe each matter that was the subject of such 28 representation, the services actually provided and the payment received. 29 For payments received from clients referred to the firm by the reporting 30 individual, if the reporting individual directly received a referral fee 31 or fees for such referral, identify the client and the payment so 32 received. For the purposes of this question, "services" shall mean 33 consultation, representation, advice or other services. 34 For purposes of this question, "referred to the firm" shall mean: 35 having intentionally and knowingly taken a specific act or series of 36 acts to intentionally procure for the reporting individual's firm or 37 having knowingly solicited or directed to the reporting individual's 38 firm in whole or substantial part, a person or entity that becomes a 39 client of that firm for the purposes of representation for a matter as 40 defined in clauses (i) through (iv) of this subparagraph, as the result 41 of such procurement, solicitation or direction of the reporting individ- 42 ual. A reporting individual need not disclose activities performed while 43 lawfully acting in his or her capacity as provided in paragraphs (c), 44 (d), (e) and (f) of subdivision seven of section seventy-three of this 45 article. 46 Client Matter Nature of Services Provided Category 47 of Amount 48 (in Table I) 49 ________________________________________________________________________ 50 ________________________________________________________________________ 51 ________________________________________________________________________ 52 ________________________________________________________________________ 53 ________________________________________________________________________
S. 3741--A 4 1 [(b-2) APPLICABLE ONLY TO NEW CLIENTS OR CUSTOMERS FOR WHOM SERVICES 2 ARE PROVIDED ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND FIFTEEN, OR 3 FOR NEW MATTERS FOR EXISTING CLIENTS OR CUSTOMERS WITH RESPECT TO THOSE 4 SERVICES THAT ARE PROVIDED ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOU- 5 SAND FIFTEEN (FOR PURPOSES OF THIS QUESTION, "SERVICES" SHALL MEAN 6 CONSULTATION, REPRESENTATION, ADVICE OR OTHER SERVICES):] 7 (b-1) For the purposes of this question, "services" shall mean 8 consultation, representation, advice or other services. 9 (i) With respect to reporting individuals who receive ten thousand 10 dollars or more from employment or activity reportable under question 11 8(a), for each client or customer NOT otherwise disclosed or exempted in 12 question 8 or 13, disclose the name of each client or customer known to 13 the reporting individual to whom the reporting individual provided 14 services: (A) who paid the reporting individual in excess of five thou- 15 sand dollars for such services; or (B) who had been billed with the 16 knowledge of the reporting individual in excess of five thousand dollars 17 by the firm or other entity named in question 8(a) for the reporting 18 individual's services. 19 Client Services Category of Amount 20 Actually Provided (in Table I) ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 21 FOLLOWING IS AN ILLUSTRATIVE, NON-EXCLUSIVE LIST OF EXAMPLES OF 22 DESCRIPTIONS OF "SERVICES ACTUALLY PROVIDED": 23 * REVIEWED DOCUMENTS AND CORRESPONDENCE; 24 * REPRESENTED CLIENT (IDENTIFY CLIENT BY NAME) IN LEGAL PROCEEDING; 25 * PROVIDED LEGAL ADVICE ON CLIENT MATTER (IDENTIFY CLIENT BY NAME); 26 * CONSULTED WITH CLIENT OR CONSULTED WITH LAW PARTNERS/ASSOCIATES/MEMBERS 27 OF FIRM ON CLIENT MATTER (IDENTIFY CLIENT BY NAME); 28 * PREPARED CERTIFIED FINANCIAL STATEMENT FOR CLIENT (IDENTIFY CLIENT BY 29 NAME); 30 * REFERRED INDIVIDUAL OR ENTITY (IDENTIFY CLIENT BY NAME) FOR 31 REPRESENTATION OR CONSULTATION; 32 * COMMERCIAL BROKERING SERVICES (IDENTIFY CUSTOMER BY NAME); 33 * PREPARED CERTIFIED ARCHITECTURAL OR ENGINEERING 34 RENDERINGS FOR CLIENT (IDENTIFY CUSTOMER BY NAME); 35 * COURT APPOINTED GUARDIAN OR EVALUATOR (IDENTIFY COURT NOT CLIENT). 36 (ii) With respect to reporting individuals who disclosed in question 37 8(a) that the reporting individual did not provide services to a client 38 but provided services to a firm or business, identify the category of 39 amount received for providing such services and describe the services 40 rendered. 41 Services Actually Provided Category of Amount (Table I) ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 42 A reporting individual need not disclose activities performed while 43 lawfully acting in his or her capacity as provided in paragraphs (c), 44 (d), (e) and (f) of subdivision seven of section seventy-three of this 45 article. 46 The disclosure requirement in questions (b) and (b-1) [and (b-2)] shall 47 not require disclosing clients or customers receiving medical, pharma-
S. 3741--A 5 1 ceutical or dental services, mental health services, or residential real 2 estate brokering services from the reporting individual or his or her 3 firm or if federal law prohibits or limits disclosure. The reporting 4 individual need not identify any client to whom he or she or his or her 5 firm provided legal representation with respect to investigation or 6 prosecution by law enforcement authorities, bankruptcy, family court, 7 estate planning, or domestic relations matters, nor shall the reporting 8 individual identify individuals represented pursuant to an insurance 9 policy but the reporting individual shall in such circumstances only 10 report the entity that provides compensation to the reporting individ- 11 ual; with respect to matters in which the client's name is required by 12 law to be kept confidential (such as matters governed by the family 13 court act) or in matters in which the reporting individual represents or 14 provides services to minors, the client's name may be replaced with 15 initials. To the extent that the reporting individual, or his or her 16 firm, provided legal representation with respect to an initial public 17 offering, and professional disciplinary rules, federal law or regu- 18 lations restrict the disclosure of information relating to such work, 19 the reporting individual shall (i) disclose the identity of the client 20 and the services provided relating to the initial public offering to the 21 office of court administration, who will maintain such information 22 confidentially in a locked box; and (ii) include in his or her response 23 to questions (b) and (b-1) [and (b-2)] that pursuant to this paragraph, 24 a disclosure to the office of court administration has been made. Upon 25 such time that the disclosure of information maintained in the locked 26 box is no longer restricted by professional disciplinary rules, federal 27 law or regulation, the reporting individual shall disclose such informa- 28 tion in an amended disclosure statement in response to the disclosure 29 requirements in questions (b) and (b-1) [and (b-2)]. The office of court 30 administration shall develop and maintain a secure portal through which 31 information submitted to it pursuant to this paragraph can be safely and 32 confidentially stored. With respect to clients represented in other 33 matters not otherwise exempt, the reporting individual may request an 34 exemption to publicly disclosing the name of that client from the 35 commission on ethics and [lobbyiing] lobbying in government pursuant to 36 section ninety-four of the executive law, or from the office of court 37 administration. In such application, the reporting individual shall 38 state the following: "My client is not currently receiving my services 39 or seeking my services in connection with: 40 (i) A proposed bill or resolution in the senate or assembly during the 41 reporting period; 42 (ii) A contract in an amount totaling $10,000 or more from the state 43 or any state agency for services, materials, or property; 44 (iii) A grant of $10,000 or more from the state or any state agency 45 during the reporting period; 46 (iv) A grant obtained through a legislative initiative during the 47 reporting period; or 48 (v) A case, proceeding, application or other matter that is not a 49 ministerial matter before a state agency during the reporting period." 50 In reviewing the request for an exemption, the commission on ethics 51 and lobbying in government or the office of court administration may 52 consult with bar or other professional associations and the legislative 53 ethics commission for individuals subject to its jurisdiction and may 54 consider the rules of professional conduct. In making its determination, 55 the commission on ethics and lobbying in government or the office of 56 court administration shall conduct its own inquiry and shall consider
S. 3741--A 6 1 factors including, but not limited to: (i) the nature and the size of 2 the client; (ii) whether the client has any business before the state; 3 and if so, how significant the business is; and whether the client has 4 any particularized interest in pending legislation and if so how signif- 5 icant the interest is; (iii) whether disclosure may reveal trade 6 secrets; (iv) whether disclosure could reasonably result in retaliation 7 against the client; (v) whether disclosure may cause undue harm to the 8 client; (vi) whether disclosure may result in undue harm to the attor- 9 ney-client relationship; and (vii) whether disclosure may result in an 10 unnecessary invasion of privacy to the client. 11 The commission on ethics and lobbying in government or, as the case 12 may be, the office of court administration shall promptly make a final 13 determination in response to such request, which shall include an expla- 14 nation for its determination. The office of court administration shall 15 issue its final determination within three days of receiving the 16 request. Notwithstanding any other provision of law or any professional 17 disciplinary rule to the contrary, the disclosure of the identity of any 18 client or customer in response to this question shall not constitute 19 professional misconduct or a ground for disciplinary action of any kind, 20 or form the basis for any civil or criminal cause of action or proceed- 21 ing. A reporting individual who first enters public office after January 22 first, two thousand sixteen, need not report clients or customers with 23 respect to matters for which the reporting individual or his or her firm 24 was retained prior to entering public office. 25 (c) [APPLICABLE ONLY TO NEW CLIENTS OR CUSTOMERS FOR WHOM SERVICES ARE 26 PROVIDED ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND FIFTEEN, OR FOR 27 NEW MATTERS FOR EXISTING CLIENTS OR CUSTOMERS WITH RESPECT TO THOSE 28 SERVICES THAT ARE PROVIDED ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOU- 29 SAND FIFTEEN:] 30 If the reporting individual receives income of ten thousand dollars or 31 greater from any employment or activity reportable under question 8(a), 32 identify each registered lobbyist who has directly referred to such 33 individual a client who was successfully referred to the reporting indi- 34 vidual's business and from whom the reporting individual or firm 35 received a fee for services in excess of five thousand dollars. Report 36 only those referrals that were made to a reporting individual by direct 37 communication from a person known to such reporting individual to be a 38 registered lobbyist at the time the referral is made. With respect to 39 each such referral, the reporting individual shall identify the client, 40 the registered lobbyist who has made the referral, the category of value 41 of the compensation received and a general description of the type of 42 matter so referred. A reporting individual need not disclose activities 43 performed while lawfully acting pursuant to paragraphs (c), (d), (e) and 44 (f) of subdivision seven of section seventy-three of this article. The 45 disclosure requirements in this question shall not require disclosing 46 clients or customers receiving medical, pharmaceutical or dental 47 services, mental health services, or residential real estate brokering 48 services from the reporting individual or his or her firm or if federal 49 law prohibits or limits disclosure. The reporting individual need not 50 identify any client to whom he or she or his or her firm provided legal 51 representation with respect to investigation or prosecution by law 52 enforcement authorities, bankruptcy, family court, estate planning, or 53 domestic relations matters, nor shall the reporting individual identify 54 individuals represented pursuant to an insurance policy but the report- 55 ing individual shall in such circumstances only report the entity that 56 provides compensation to the reporting individual; with respect to
S. 3741--A 7 1 matters in which the client's name is required by law to be kept confi- 2 dential (such as matters governed by the family court act) or in matters 3 in which the reporting individual represents or provides services to 4 minors, the client's name may be replaced with initials. To the extent 5 that the reporting individual, or his or her firm, provided legal repre- 6 sentation with respect to an initial public offering, and federal law or 7 regulations restricts the disclosure of information relating to such 8 work, the reporting individual shall (i) disclose the identity of the 9 client and the services provided relating to the initial public offering 10 to the office of court administration, who will maintain such informa- 11 tion confidentially in a locked box; and (ii) include in his or her 12 response a statement that pursuant to this paragraph, a disclosure to 13 the office of court administration has been made. Upon such time that 14 the disclosure of information maintained in the locked box is no longer 15 restricted by federal law or regulation, the reporting individual shall 16 disclose such information in an amended disclosure statement in response 17 to the disclosure requirements of this paragraph. The office of court 18 administration shall develop and maintain a secure portal through which 19 information submitted to it pursuant to this paragraph can be safely and 20 confidentially stored. With respect to clients represented in other 21 matters not otherwise exempt, the reporting individual may request an 22 exemption to publicly disclosing the name of that client from the 23 commission on ethics and lobbying in government pursuant to section 24 ninety-four of the executive law, or from the office of court adminis- 25 tration. In such application, the reporting individual shall state the 26 following: "My client is not currently receiving my services or seeking 27 my services in connection with: 28 (i) A proposed bill or resolution in the senate or assembly during the 29 reporting period; 30 (ii) A contract in an amount totaling $10,000 or more from the state 31 or any state agency for services, materials, or property; 32 (iii) A grant of $10,000 or more from the state or any state agency 33 during the reporting period; 34 (iv) A grant obtained through a legislative initiative during the 35 reporting period; or 36 (v) A case, proceeding, application or other matter that is not a 37 ministerial matter before a state agency during the reporting period." 38 In reviewing the request for an exemption, the commission on ethics 39 and lobbying in government or the office of court administration may 40 consult with bar or other professional associations and the legislative 41 ethics commission for individuals subject to its jurisdiction and may 42 consider the rules of professional conduct. In making its determination, 43 the commission on ethics and lobbying in government or the office of 44 court administration shall conduct its own inquiry and shall consider 45 factors including, but not limited to: (i) the nature and the size of 46 the client; (ii) whether the client has any business before the state; 47 and if so, how significant the business is; and whether the client has 48 any particularized interest in pending legislation and if so how signif- 49 icant the interest is; (iii) whether disclosure may reveal trade 50 secrets; (iv) whether disclosure could reasonably result in retaliation 51 against the client; (v) whether disclosure may cause undue harm to the 52 client; (vi) whether disclosure may result in undue harm to the attor- 53 ney-client relationship; and (vii) whether disclosure may result in an 54 unnecessary invasion of privacy to the client. 55 The commission on ethics and lobbying in government or, as the case 56 may be, the office of court administration shall promptly make a final
S. 3741--A 8 1 determination in response to such request, which shall include an expla- 2 nation for its determination. The office of court administration shall 3 issue its final determination within three days of receiving the 4 request. Notwithstanding any other provision of law or any professional 5 disciplinary rule to the contrary, the disclosure of the identity of any 6 client or customer in response to this question shall not constitute 7 professional misconduct or a ground for disciplinary action of any kind, 8 or form the basis for any civil or criminal cause of action or proceed- 9 ing. A reporting individual who first enters public office after Decem- 10 ber thirty-first, two thousand fifteen, need not report clients or 11 customers with respect to matters for which the reporting individual or 12 his or her firm was retained prior to entering public office. 13 Client Name of Lobbyist Description Category of Amount 14 of Matter (in Table [1] I) 15 ________________________________________________________________________ 16 ________________________________________________________________________ 17 ________________________________________________________________________ 18 ________________________________________________________________________ 19 ________________________________________________________________________ 20 (d) List the name, principal address and general description or the 21 nature of the business activity of any entity in which the reporting 22 individual or such individual's spouse or domestic partner had an 23 investment in excess of $1,000 excluding investments in securities and 24 interests in real property. 25 § 2. This act shall take effect on the first of January next succeed- 26 ing the date on which it shall have become a law.