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Proposed Rules: Open to Comments

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Agency:
Comment By: 
Monday, December 18, 2017
Proposed Rules Content: 

Statement of Basis and Purpose of Proposed Rule

Subject to certain exceptions, the conflicts of interest provisions of Chapter 68 of the New York City Charter prohibit New York City public servants from having “interests” in firms engaged in business dealings with the City or from taking actions as a public servant particularly affecting the public servant’s interest in a firm. See Charter Sections 2604(a) and 2604(b)(1). Interest is defined in Charter Section 2601(12) as either an ownership interest in a firm or a position with a firm. “Ownership interest” is, in turn, defined in Charter Section 2601(16) as

an interest in a firm held by a public servant, or the public servant’s spouse, domestic partner, or unemancipated child, which exceeds five percent of the firm or an investment of twenty-five thousand dollars in cash or other form of commitment, whichever is less, or five percent or twenty-five thousand dollars of the firm’s indebtedness, whichever is less, and any lesser interest in a firm when the public servant, or the public servant’s spouse, domestic partner, or unemancipated child exercises managerial control or responsibility regarding any such firm, but shall not include interests held in any pension plan, deferred compensation plan or mutual fund, the investments of which are not controlled by the public servant, the public servant’s spouse, domestic partner, or unemancipated child, or in any blind trust which holds or acquires an ownership interest. The amount of twenty-five thousand dollars specified herein shall be modified by the board pursuant to subdivision a of section twenty-six hundred three. (Emphasis added.)

Charter Section 2603(a) requires the Conflicts of Interest Board, by rule amendment, once every four years to adjust the $25,000 amount established in Section 2601(16) to reflect changes in the Consumer Price Index (CPI) for the metropolitan New York-New Jersey region as published by the United States Department of Labor, Bureau of Labor, Bureau of Labor Statistics (BLS). The foregoing provision became effective on January 1, 1990.

Effective Year

Consumer Price Index (CPI)

Ownership Interest Amount (rounded to the nearest $1,000)

Percent change from 1990 CPI

 
 

1990

135.1

$25,000

-

 

1994

156

$29,000

15.50%

 

1998

172.1

$32,000

27.40%

 

2002

188.5

$35,000

39.50%

 

2006

216.6

$40,000

60.30%

 

2010

238.8

$44,000

76.80%

 

2014

258.5

$48,000

91.30%

 

2018

270.1

$50,000

99.90%

 

 

According to the BLS, for the period from January 1990, to September 2017, the CPI for the metropolitan area increased from 135.1 to 270.1, reflecting a total increase of 99.9%. Thus, the $25,000 Charter amount should be adjusted to $50,000, rounded to the nearest $1,000.

Subject: 

.

Location: 
Spector Hall
22 Reade Street,
New York, NY 10007
Contact: 

Julia Lee
New York City Conflicts of Interest Board
2 Lafayette Street, Suite 1010
New York, New York 10007
lee@coib.nyc.gov
(212) 437-0730
(212) 437-0705 (fax)

Proposed Rules: Open to Comments

Log in or register to post comments
Agency:
Comment By: 
Monday, December 18, 2017
Proposed Rules Content: 

Statement of Basis and Purpose of Proposed Rule

Local Law No. 181 of 2016 amended the New York City Administrative Code to regulate donations to not-for-profit organizations affiliated with City elected officials. This law, codified in Administrative Code §§ 3-901 to 3-907, requires reporting and public disclosure of donations to not-for-profit organizations controlled by City elected officials or their agents; limits permissible donations to some of these entities; and provides that violations of its provisions may result in civil fines up to $30,000 and may constitute a class A misdemeanor. The Conflicts of Interest Board (the “Board”) is charged with administering, enforcing, and promulgating “such rules as are necessary” to implement Local Law 181. See Administrative Code § 3-907.

The proposed rules, to be codified in a new Chapter 3 of Title 53 of the Rules of the City of New York (the “Board Rules”), will implement Local Law 181. Specifically, the proposed rules would: (1) establish procedures for obtaining a determination from the Board that an elected official or an agent of an elected official does not exercise control over an entity; (2) delineate factors by which the Board will determine whether an entity is affiliated with an elected official; (3) implement the reporting requirements of Administrative Code § 3-902, which take effect on January 1, 2019 for organizations affiliated with an elected official; and (4) establish record retention procedures by which the Board can ensure compliance with the requirements of Local Law 181.

The New York City Conflicts of Interest Board’s authority for these rules is found in section 1043 of the New York City Charter and Section 3-907 of the New York City Administrative Code.

Subject: 

.

Location: 
Spector Hall
22 Reade Street,
New York, NY 10007
Contact: 

Julia Lee
New York City Conflicts of Interest Board
2 Lafayette Street, Suite 1010
New York, New York 10007
lee@coib.nyc.gov
(212) 437-0730
(212) 437-0705 (fax)

Download Copy of Proposed Rule (.pdf):