Announcement: New York Activists Soliciting Comments on Proposed Constitutional Amendment to Create a Public Integrity Commission

While most of the posts on this blog focus on national-level corruption, we’ve also had quite a few posts on corruption in certain subnational jurisdictions—and for one reason or another, we’ve had a particularly large number on corruption in New York State (see, for example, here, here, here, here, and here). While New York is by most accounts not among the most corrupt states in the U.S. (see here and here), corruption there has attracted a great deal of attention given New York’s social, political, and economic importance—and the egregiousness of some of the state-level corruption that has been discovered or alleged in New York state politics.

Is institutional reform the answer? Last year, GAB contributor Kaitlin Beach argued that U.S. states should follow Australia’s example by establishing anticorruption agencies (ACAs) at the state level, and it seems some New York activists have been thinking along similar lines (though perhaps without the explicit foreign inspiration). A coalition of nongovernmental organizations—including Columbia Law School’s Center for the Advancement of Public Integrity, the New York City Bar Association’s Committee on Government Ethics, and the New York chapters of the League of Women Voters, Common Cause, and the Public Interest Research Group—has, under the auspices of the “Committee to Reform the State Constitution,” been developing a proposed amendment to the New York State Constitution that would create a new “Commission on State Government Integrity,” that would assume the responsibilities (now dispersed among various other state organs) for investigating and penalizing ethics violations (as well as other forms of workplace misconduct) for both the legislative and executive branches, and for administering and enforcing campaign finance laws.

The full text of the draft of the proposed amendment is available here. I have not yet had an opportunity to read it carefully and form my own opinion. But I wanted to post an announcement about this proposal expeditiously, because the Committee to Reform the State Constitution is actively soliciting comments on its draft, and has requested that such comments be submitted by March 9th (a week from this Friday). Many of this blog’s readers may have relevant expertise—and perhaps also a useful comparative perspective—that may be helpful to these New York activists as they develop and refine their proposal. I encourage any of you out there with an interest in the institutional design of anticorruption agencies to take a look at the current draft proposal and to submit comments, if you have something potentially useful to contribute. Comments should be emailed to comments@detercorruption.info.

How Much Should FCPA Hawks Worry About Trump’s Pick for SEC Chair?

Every time I write about the impact that the Trump Administration will have on FCPA enforcement, I’m reminded of the old joke about the actor hired to play the gravedigger in a production of Hamlet: When his wife asks what the play is about, he replies, “Well, it’s about this gravedigger, who meets a prince….” Even if we limit our focus to corruption-related issues, FCPA enforcement might not crack the top-5 in terms of high-priority concerns in the Trump Administration. Nonetheless, since the FCPA is one of the things I follow, and one of the things that a big chunk of the US anticorruption community spends a lot of time thinking about, I suppose it’s worth continuing to comment on this issue from time to time.

As regular GAB readers likely know, I’m both something of an “FCPA Hawk” (see here and here), and something of a pessimist when it comes to the likely consequences of a Trump presidency for FCPA enforcement (see here and here). Now that we know President-Elect Trump’s picks to head the two agencies responsible for FCPA enforcement—the Department of Justice and the Securities & Exchange Commission—how much should FCPA Hawks like me worry that these appointees will significantly scale back and/or politicize FCPA enforcement efforts?

The confirmation hearings for Jeff Sessions, Trump’s nominee for Attorney General, are going on today, and for now I don’t have much to say about how his appointment might impact FCPA enforcement. (With respect to the DOJ, I’m actually much more interested in, and concerned about, who’s appointed to head the DOJ’s Criminal Division and the Fraud Section.) Let me instead say a few words about Trump’s pick for SEC Chair, Jay Clayton, currently a partner at Sullivan & Cromwell, a prestigious US law firm.

There’s already been quite a bit of commentary about the Clayton pick, both generally and with respect to the FCPA specifically. I’ll confess right up front that I know very little about Mr. Clayton; I’d never heard of him before Trump picked him for SEC Chair, and I haven’t yet had time to do any detailed research. Based solely on preliminary media reports and some of the discussion that’s already happened, I’d say there’s (1) at least one good reason that FCPA Hawks should be concerned about the choice; (2) at least one not-good reason that some FCPA Hawks (and others) are concerned about the choice; and (3) at least one reason to be maybe cautiously optimistic, or at least relieved. Let me touch on each in turn: Continue reading