Int 0569-1999

Be it enacted by the Council as follows: Section 1. Title 12 of the administrative code of the city of New York is amended by adding a new chapter 4, to read as follows: REPORTING BY PUBLIC EMPLOYEE LABOR ORGANIZATIONS AND OFFICERS AND EMPLOYEES OF LABOR ORGANIZATIONS � 12-401 Short title. This chapter may be cited as the "New York city public employee organization reporting law." � 12-402 Statement of policy. The council finds that the relations between the city and public employee organizations and the numerous employees they represent have a substantial impact on the economic health of the city, and that it is essential that such public employee organizations and their officials adhere to the highest standards of responsibility and ethical conduct in administering the affairs of their organizations. The council further finds, from recent investigations in the labor and management fields, that there have been a number of instances of breach of trust, corruption, disregard of the rights of individual employees, and other failures to observe high standards of responsibility and ethical conduct, which ethical conduct, which require further and supplementary legislation that will afford necessary protection of the rights and interests of public employees generally as they relate to the activities of public employee organizations, labor relations consultants, and their officers and representatives. Such legislation has established in federal law for forty years with respect to private sector and federal employee unions, and thus this local law would appropriately provide analogous protection with respect to our municipal unions. � 12-403. Definitions. a. The term "public employee organization" shall have the same meaning as that term is defined in subdivision j of section 12-303 of this title, and shall include any union, chapter, local, division, council, association, or committee affiliated with such organization. b. The term "employee" shall have the same meaning as the term "public employee" is defined in subdivision h of section 12-303 of this title. c. The term "public employer" shall have the same meaning as that term is defined in subdivision g of section 12-303 of this title. d. The term "labor relations consultant" shall mean any person who, for compensation, advises or represents a public employee organization, as that term is defined in subdivision j of section 12-303 of this title, concerning employee organizing, concerted activities, or collective bargaining activities. e. The term "officer" shall mean any constitutional officer, any person authorized to perform the functions of president, vice president, secretary, treasurer, or other executive functions of a public employee organization, and any member of its executive board or similar governing body. f. The term "member" or "member in good standing", when used in reference to a public employee organization, shall mean any person who has fulfilled the requirements for membership in such organization, and who has neither voluntarily withdrawn from membership nor has been expelled or suspended from membership after appropriate proceedings consistent with lawful provisions of the constitution and bylaws of such organization. g. The term "officer, agent, shop steward, delegate, alternate delegate or other representative," when used with respect to a public employee organization, shall include elected officials and key administrative personnel, whether elected or appointed, such as business agents, heads of departments or major units, and organizers who exercise substantial independent authority, but shall not include salaried nonsupervisory professional staff, stenographic, and service personnel. h. The term "fiscal year" shall mean the calendar year or other period of twelve consecutive calendar months, on the basis of which financial accounts of the public employee organization officer or employee are kept. Where a public employee organization officer or employee designates a new fiscal year period prior to, the expiration of a previously established fiscal year period, the resultant period of less than twelve consecutive calendar months, and thereafter the newly established fiscal year, shall in that order constitute the fiscal year for purposes of the reports required to be filed by this chapter. I. The term "board" shall mean the New York city conflicts of interest board. � 12-404 Fiduciary responsibility of officers of public employee organizations. a. Duties of officers; exculpatory provisions and resolutions void. The officers, agents, shop stewards, delegates, alternate delegates and other representatives of a public employee organization occupy positions of trust in relation to such organization and its members as a group. It is, therefore, the duty of each such person, taking into account the special problems and functions of a public employee organization, to hold its money and property solely for the benefit of the organization and its members and to manage, invest, and expend the same in accordance with its constitution and bylaws and any resolutions of the governing bodies adopted thereunder; to refrain from expending any moneys received by the organization by way of dues, assessment, or similar levy, as a contribution to promote the candidacy of any person in connection with his or her nomination, election or re-election to a position within the organization, except that such moneys may be utilized for notices, factual statements of issues not involving candidates, and other expenses necessary for the holding of an election; to refrain from dealing with such organization as an adverse party, or on behalf of an adverse party in any matter connected with his or her duties and from holding or acquiring any pecuniary or personal interest which conflicts with the interests of such organization; and to account to the organization for any profit received by him or her in whatever capacity in connection with transactions conducted by him or her, or under his or her direction, on behalf of the organization. A general exculpatory provision in the constitution and bylaws of such a public employee organization or a general exculpatory resolution of a governing body purporting to relieve any such person of liability for breach of the duties declared by this section shall be void as against public policy. b. Violation of duties; action by member after refusal or failure by public employee organization to commence proceedings; jurisdiction. When any officer, agent, shop steward, delegate, alternate delegate, or representative of any public employee organization is alleged to have violated a duty or duties set forth in subdivision a of this section and the public employee organization or its governing board or officers refuse or fail to sue or recover damages or secure an accounting or other appropriate relief in consequence thereof within a reasonable time after being requested to do so by any member of the public employee organization, such member may sue such officer, agent, shop, steward, delegate, alternate delegate or representative in any state court of competent jurisdiction to recover damages or secure an accounting or other appropriate relief for the benefit of the public employee organization. � 12-405 Reports of public employee organizations. a. Contents of report. Every public employee organization shall file with the board, no later than sixty days after the end of the preceding fiscal year, a report signed by its president and secretary or corresponding principal officers, containing the following information: (1) General information. (a) the name of the public employee organization, its mailing address, and any other address at which it maintains its principal office or at which it keeps the records referred to in this chapter; (b) the name and title of each of its officers; (c) the initiation fee or fees required from a new or transferred member and fees for work permits required by the reporting public employee organization; (d) the regular dues or fees or other periodic payments required to remain a member of the reporting public employee organization; (e) the constitution and bylaws of the public employee organization and detailed statements, or references to specific provisions of documents filed under this section which contain such statements, showing the provision made and procedures followed with respect to each of the following: (i) qualifications for or restrictions on membership, (ii) levying of assessments, (iii) participation in insurance or other benefit plans, (iv) authorization for disbursement of funds of the public employee organization, (v) the auditing of financial transactions of the public employee organization, (vi) the calling of regular and special meetings, (vii) the selection of officers and stewards and of any representatives to other bodies composed of public employee organizations' representatives, with a specific statement of the manner in which each officer was elected, appointed, or otherwise selected, (viii) discipline or removal of officers or agents for breaches of trust, (ix) imposition of fines, suspensions, and expulsions of members, including the grounds for such action and any provision made for notice, hearing, judgment on the evidence, and appeal procedures, (x) authorization for bargaining demands, (xi) ratification of contract terms, and (xii) issuance of work permits. Any change in the information required by this section shall be reported to the conflicts of interest board at the time the reporting public employee organization files with the board the report required by this section. (2) Financial information. The financial report required by this section shall contain the following information in such detail as may necessary accurately to disclose its financial condition and operations for its preceding fiscal year, which portion of the report shall be signed by its president and treasurer or corresponding principal officer: (a) assets and liabilities at the beginning and end of the fiscal year; (b) receipts of any kind and the sources thereof; (c) salary, allowances, and other direct or indirect disbursements, including reimbursement of expenses, to each officer and to each employee who, during such fiscal year, received more than ten thousand dollars in the aggregate from such public employee organization and any other public employee organization affiliated with it or with which it is affiliated, or which is affiliated with the same state or national labor organization; (d) direct and indirect loans made to any officer, employee, or member, which aggregated more than two hundred fifty dollars during the fiscal year, together with a statement of purpose, security, if any, and arrangements for repayment; (e) direct and indirect loans made to any business enterprise, together with a statement of purpose, security, if any, and arrangements for repayment; (f) compensation paid, directly or indirectly, or disbursements made to any labor relations consultant during the fiscal year; and (g) other disbursements made by it including the purpose thereof; all in such categories prescribed by and in such form as shall be promulgated by the board in consultation with the commissioner of investigation and the corporation counsel. b. Availability of information to members; examination of books, records and accounts. Every public employee organization required to submit a report under this chapter shall make available the information required to be contained in such report to all of its members, and every such public employee organization and its officers shall be under a duty enforceable in any state court of competent jurisdiction in which such public employee organization maintains its principal office, to permit any such member for just cause to examine any books, records, and accounts necessary to verify such report. The board, in consultation with the commissioner of investigation and the corporation counsel, shall promulgate such rules as are necessary to implement and interpret the provisions of this subdivision. � 12-406 Report of officers and employees of public employee organizations. a. Filing; contents of report. Every officer of a public employee organization and every employee of such organization (other than an employee performing exclusively clerical or custodial services), including any officer or employee paid by the city who spends any portion of his or her city compensated time devoted to duties of such public employee organization, or any officer or employee performing functions of the public employee organization who are members of the New York city employees' retirement system, the teachers' retirement system, the board of education retirement system, the police pension fund or the fire department pension fund, shall file with the board, no later than sixty days from the end of the preceding fiscal year, a signed report listing and describing for the preceding fiscal year the information set forth in paragraphs one through five below. Each officer and employee described in this paragraph shall, following separation from service, file such report for the portion of the last fiscal year in which he or she served in his or her position within sixty days of his or her separation from service, or on the May first next succeeding, whichever is earlier. Each such officer and employee who leaves service prior to May first shall also file a report for the previous fiscal year if such person met the criteria of this paragraph on his or her last day of service. The report shall contain information concerning the following: (1) any stock, bond, security, or other interest, legal or equitable, which he or she or his or her spouse, domestic partner or minor child directly or indirectly held in, and any income or any other benefit with monetary value, including reimbursed expenses, which he or she or his or her spouse, domestic partner or minor child derived directly or indirectly from, a public employer whose employees such public employee organization represents or is actively seeking to represent, except payments and other benefits received as a bona fide employee of such employer, or a business any part of which consists of buying from, or selling or leasing directly or indirectly to, or otherwise dealing with such public employee organization; (2) any transaction in which he or she or his or her spouse, domestic partner or minor child engaged, directly or indirectly, involving any stock, bond, security, or loan to or from, or other legal or equitable interest in the business of an employer whose employees such public employee organization represents or is actively seeking to represent, or a business any part of which consists of buying from, or selling or leasing directly or indirectly to, or otherwise dealing with such public employee organization; (3) any stock, bond, security, or other interest, legal or equitable, which he or she or his or her spouse, domestic partner or minor child directly or indirectly held in, and any income or other benefit with monetary value, including reimbursed expenses, which he or she or his or her spouse, domestic partner or minor child directly or indirectly derived from, any business a substantial part of which consists of buying from, selling or leasing to, or otherwise dealing with, the business of an employer whose employees such public employee organization represents or is actively seeking to represent, or a business any part of which consists of buying from, or selling or leasing directly or indirectly to, or otherwise dealing with such public employee organization; (4) any direct or indirect business transaction or arrangement between him or her or his or her spouse, domestic partner or minor child and any public employer whose employees his or her organization represents or is actively seeking to represent, except work performed and payments and benefits received as a bona fide employee of such employer and except purchases and sales of goods or services in the regular course of business at prices generally available to any employee of such employer, or a business any part of which consists of buying from, or selling or leasing directly or indirectly to, or otherwise dealing with such public employee organization; and (5) any payment of money or other thing of value, including reimbursed expenses, which he or she or his or her spouse, domestic partner or minor child received directly or indirectly from any public employer or any person who acts as a labor relations consultant to a public employee organization, or a business any part of which consists of buying from, or selling or leasing directly or indirectly to, or otherwise dealing with such public employee organization. b. Report of certain bona fide investments. The provisions of paragraphs one through five of subdivision a of this section shall not be construed to require any officer or employee to report his or her bona fide investments in securities traded on a securities exchange registered as a national securities exchange under the security exchange act of nineteen hundred thirty-four (15 U.S.C.A. � 78a et seq.), or shares in an investment company registered under the investment company act of nineteen hundred forty (15 U.S.C.A. 80a-1 et seq.), or in securities of a public utility holding company registered under the public utility holding company act of nineteen hundred thirty-five (15 U.S.C.A. 79 et seq.), or to report any income derived therefrom. c. Exemption from filing requirement. Nothing contained in this section shall be construed to require any officer or employee of a public employee organization to file a report under subdivision a of this section unless he or she or his or her spouse, domestic partner or minor child holds or has held an interest, has received income or any other benefit with monetary value or loan, or has engaged in a transaction described therein. � 12-407 Availability to the public of reports, documents and hearings. a. Publication; statistical and research purposes. The contents of the reports and documents filed with the board pursuant to this chapter, including any pleadings or memoranda of law served by or upon the board in any proceeding held pursuant to this chapter, shall be public information, and the board may publish any information and data which it obtains pursuant to the provisions of this chapter. The board may use the information and data for statistical and research purposes, and compile and publish such studies, analyses, reports, and surveys based thereon as it may deem appropriate. b. Inspection and examination of information and data. The board, in consultation with the commissioner of investigation and the corporation counsel, shall promulgate rules providing for the inspection and examination of the information and data contained in any report or other document filed with it pursuant to any of the provisions of this chapter. c. Hearings of the board. Any hearings held by the board on the record to determine whether a violation of this chapter has occurred shall be open to the public. � 12-408 Retention of records. Every person required to file any report under this chapter shall maintain records on the matters required to be reported which shall provide in sufficient detail the necessary basic information and data from which the documents filed with the board may be verified, explained, or clarified, and checked for accuracy and completeness, including vouchers, worksheets, receipts, and applicable resolutions, and shall keep records available for examination for a period of not less than five years after the filing of the documents based on the information which they contain. � 12-409 Complaints. a. The board shall receive complaints alleging violations of this chapter. b. Whenever a written complaint is received by the board, it shall: (1) dismiss the complaint if it determines that no further action is required by the board; (2) refer the complaint to the commissioner of investigation if further investigation is required for the board to determine what action is appropriate; or (3) make an initial determination that there is no probable cause to believe that a person or public employee organization has violated a provision of this chapter; or (4) refer an alleged violation of this chapter to the head of the agency served by the person, if the board deems the violation to be minor or if related disciplinary charges are pending against the person. (5) For purposes of this section, a person shall include a former officer, employee, agent, shop steward, delegate, alternate delegate and other representative of a public employee organization. � 12-410 Investigations. a. The board shall be authorized to request the department of investigation to conduct an investigation of any matter related to the board's responsibilities under this chapter. The commissioner of investigation shall, within a reasonable time, investigate any such matter and submit a confidential written report of factual findings to the board. b. The commissioner of investigation shall make a confidential report to the board concerning the results of all investigations which involve or may involve violations of the disclosure provisions of this chapter, whether or not such investigations were made at the request of the board. � 12-411 Referral of matters within the board's jurisdiction. Whenever an agency receives a complaint alleging a violation of the disclosure provisions this chapter or determines that a violation of this chapter may have occurred, it shall refer the matter to the board. Such referral shall be reviewed and acted upon by the board in the same manner as a complaint received by the board pursuant to section 12-409 of this chapter. � 12-412 Hearings. The board shall promulgate rules governing the procedures for conducting hearings to determine whether a person or public employee organization has violated any of the disclosure provisions of this chapter. � 12-413 Violations and penalties. a. Intentional violations of provisions of this chapter. Any public employee organization which, or person who, intentionally violates the duties or responsibilities of this chapter shall be guilty of a misdemeanor punishable by a fine not to exceed one thousand dollars, or imprisonment for a term of not more than one year, or both, and such violation shall constitute grounds for imposition of disciplinary penalties, including removal from office in the manner provided by law. In addition, any intentional violation of the disclosure provisions of this chapter may subject the organization or person reporting, or required to report, to assessment by the conflicts of interest board of a civil penalty in an amount not to exceed ten thousand dollars. b. False statements or representations of fact with knowledge of falsehood. Any public employee organization which, or person who, makes a false statement or representation of a material fact, knowing it to be false, or who knowingly fails to disclose a material fact, in any document, report, or other information required under the provisions of this chapter, shall be guilty of a misdemeanor punishable by a fine not to exceed one thousand dollars, or imprisonment for not more than one year, or both, and such conduct shall constitute grounds for imposition of disciplinary penalties, including removal from office in the manner provided by law. In addition, any intentional violation of the disclosure provisions of this chapter may subject the organization or person reporting to assessment by the conflicts of interest board of a civil penalty in an amount not to exceed ten thousand dollars. c. False entry in or willful concealment of books and records. Any public employee organization which, or person who, willfully makes a false entry in or willfully conceals, withholds, or destroys any book, record, report, or statement required to be kept by any provision of this chapter shall be guilty of a misdemeanor punishable by a fine not to exceed one thousand dollars, or imprisonment for not more than one year, or both, and such conduct shall constitute grounds for imposition of disciplinary penalties, including removal from office in the manner provided by law. In addition, any intentional violation of the disclosure provisions of this chapter may subject the culpable organization or person reporting, or required to report, to assessment by the conflicts of interest board of a civil penalty in an amount not to exceed ten thousand dollars. d. Personal responsibility of individuals required to sign reports. Each individual required to sign reports under this chapter shall be personally responsible for the filing of such reports and for any statement contained therein which he or she knows to be false. e. Any public employee organization which, or person who, is required to file a report pursuant to this chapter and has not so filed at the end of one week after the date required for filing shall be subject to a fine of one hundred dollars. In addition, two weeks after the date required for filing, the conflicts of interest board shall inform the appropriate public employee organization or public employer, and the commissioner of investigation, of the continuing failure to file of any such organization or person. � 2. This local law shall take effect one hundred eighty days after its enactment. Actions necessary to prepare for the implementation of this local law, including but not limited to rulemaking and the promulgation of forms required to be completed pursuant to such law, shall be taken prior to its effective date. _______ Note: Matter in italics is new; matter in brackets [ ] to be omitted.