Gifts and Entertainment Policy - New York

GIFTS AND ENTERTAINMENT POLICY -- NEW YORK

Company Name: [________________________________]
Policy Number: [____]-GEP-NY
Effective Date: [__/__/____]
Last Revised: [__/__/____]
Policy Owner: [________________________________] (Chief Compliance Officer)
Approved By: [________________________________] (General Counsel / Board of Directors)

TABLE OF CONTENTS

1. Purpose and Scope
2. Applicable Laws and Regulations
3. Definitions
4. General Policy Statement
5. Prohibited Gifts and Entertainment
6. Monetary Thresholds and Approval Requirements
7. New York State Gift Restrictions for Public Officials
8. New York City Conflicts of Interest Rules
9. Gifts Involving Federal and Foreign Government Officials
10. Commercial Business Gifts and Entertainment
11. Travel and Hospitality
12. Charitable and Political Contributions
13. Logging, Recordkeeping, and Reporting
14. Pre-Approval Process
15. Training Requirements
16. Enforcement and Disciplinary Action
17. Reporting Violations and Non-Retaliation
18. Policy Governance and Review
19. Acknowledgment
20. Annex A: Gift and Entertainment Approval Form
21. Annex B: Gift Log Template
22. Sources and References

1. PURPOSE AND SCOPE

This Gifts and Entertainment Policy ("Policy") establishes standards and procedures governing the giving, receiving, and reporting of gifts and entertainment by all personnel of [________________________________] ("Company") who operate in or have dealings connected to the State of New York or New York City. The Policy is designed to:

• Prevent actual or perceived conflicts of interest, bribery, or corruption
• Ensure compliance with the FCPA, New York State ethics laws, NYC Conflicts of Interest Law, and all applicable anti-corruption statutes
• Provide clear guidance on permissible and prohibited gifts and entertainment
• Protect the Company's reputation and maintain public trust

Applicability. This Policy applies to:

☐ All employees, officers, and directors of the Company
☐ Temporary workers, interns, and consultants acting on behalf of the Company
☐ Third-party agents, representatives, and intermediaries
☐ Joint venture partners where the Company exercises management control
☐ Any person authorized to act on behalf of the Company in New York

2. APPLICABLE LAWS AND REGULATIONS

2.1 Federal Law

• Foreign Corrupt Practices Act (15 U.S.C. 78dd-1 et seq.): Prohibits payments of anything of value to foreign government officials to obtain or retain business. Criminal penalties include fines up to $250,000 and imprisonment up to five years (individuals); fines up to $2,000,000 (entities) per violation.
• Anti-Kickback Statute (42 U.S.C. 1320a-7b): Prohibits offering, paying, soliciting, or receiving anything of value to induce referrals for services covered by federal healthcare programs.
• Federal Bribery Statute (18 U.S.C. 201): Prohibits bribing federal public officials.

2.2 New York State Law

• N.Y. Public Officers Law 73(5): State officers and employees shall not directly or indirectly solicit, accept, or receive any gift having more than a nominal value under circumstances in which it could reasonably be inferred the gift was intended to influence them or was a reward for official action. The Commission on Ethics and Lobbying in Government generally considers items with a fair market value of $15 or more to be a gift. Gifts valued at $75 or more trigger specific reporting obligations.
• N.Y. Public Officers Law 73-a: Requires state officers, legislators, certain policymakers, and candidates to file annual financial disclosure statements.
• N.Y. Public Officers Law 74: Code of Ethics for state officers and employees; prohibitions on conflicts of interest apply to gifts of any value where improper influence could be inferred.
• N.Y. Penal Law 200.00-200.56: Criminal bribery statutes. Bribery in the second degree (public servant) is a Class C felony; bribery in the first degree (a juror) is a Class B felony. Receiving a bribe (200.10-200.15) is similarly classified. Civil penalties up to $40,000 plus the value of any benefit received.

2.3 New York City Law

• NYC Admin. Code 12-110 / NYC Charter Chapter 68: The NYC Conflicts of Interest Law restricts gifts to City public servants. Public servants may not accept any gift valued at $50 or more from a person or firm that they know or should know does business with, or seeks to do business with, the City. The NYC Conflicts of Interest Board ("COIB") issues advisory opinions and enforcement actions.
• COIB Rules: City agencies may impose stricter gift limits; employees must verify agency-specific policies.

3. DEFINITIONS

"Gift" means anything of value for which the recipient does not provide equal or greater consideration, including tangible items, gift cards, tickets, meals, discounts, loans at below-market rates, services, forgiveness of debt, and use of property.

"Entertainment" means meals, sporting events, cultural events, social gatherings, or other hospitality activities provided to or received from a third party in connection with business.

"State Officer or Employee" means any person holding a position in New York State government subject to Public Officers Law 73 and 74, including officers, employees, legislators, and certain appointees.

"City Public Servant" means any person holding a position with the City of New York or any city agency, as defined in NYC Charter Chapter 68, Section 2601.

"Nominal Value" means items with a fair market value of less than $15, per the NY Commission on Ethics and Lobbying in Government's interpretive guidance.

"Public Official" includes any person holding a government position at the federal, state, local, or foreign level, candidates for public office, political party officials, and employees of state-owned enterprises or international organizations.

4. GENERAL POLICY STATEMENT

The Company prohibits all personnel from directly or indirectly offering, giving, soliciting, or accepting any gift, entertainment, or other thing of value that:

• Is intended to, or could reasonably appear to, improperly influence a business decision
• Creates or appears to create a conflict of interest
• Violates any applicable law, regulation, or contractual obligation
• Is excessive, lavish, or disproportionate to the legitimate business purpose

All gifts and entertainment must be:

☐ Lawful under all applicable federal, state, and local laws
☐ Reasonable in value and appropriate to the business context
☐ Given or received openly and transparently
☐ Properly documented and reported in Company records
☐ Approved in advance where required by this Policy

5. PROHIBITED GIFTS AND ENTERTAINMENT

The following are strictly prohibited regardless of value:

☐ Cash or cash equivalents (gift cards exceeding $25, prepaid debit cards, money orders, cryptocurrency)
☐ Gifts or entertainment intended to influence a government decision, contract award, regulatory outcome, or business transaction
☐ Gifts exceeding $50 to NYC public servants from persons or firms doing business with the City (per NYC Charter Chapter 68)
☐ Gifts to NY State officers/employees under circumstances where influence could reasonably be inferred (per Public Officers Law 73(5))
☐ Gifts or entertainment during active procurement, bid evaluations, audits, or regulatory proceedings involving the donor/recipient
☐ Facilitation or "grease" payments unless legally required for personal safety with immediate General Counsel approval
☐ Adult entertainment, gambling activities, or events at venues that would bring disrepute to the Company
☐ Personal services, home improvements, or payments to family members of business contacts
☐ Per diem payments to third parties
☐ Travel expenses for family members without separate CCO approval
☐ Honoraria to state officers/employees where it could be inferred as a reward for official action

6. MONETARY THRESHOLDS AND APPROVAL REQUIREMENTS

All thresholds are in U.S. dollars. The Company applies the most restrictive applicable standard.

7. NEW YORK STATE GIFT RESTRICTIONS FOR PUBLIC OFFICIALS

7.1 Public Officers Law 73(5) -- Gift Restrictions

New York State officers and employees are prohibited from soliciting, accepting, or receiving any gift under circumstances where it could reasonably be inferred the gift was intended to influence official duties or reward official action. Key thresholds:

• $15 or more: Constitutes a "gift" per the Commission on Ethics and Lobbying in Government
• $75 or more: Triggers specific statutory obligations; gifts of $75 or more are presumptively reportable
• No dollar limit for the prohibition itself: Section 74 (Code of Ethics) applies to gifts of any value where improper influence is implicated

7.2 Company Policy (Stricter Standard)

☐ Pre-approval required from the CCO for any gift or entertainment to a NY State official
☐ Company limit: $50 per NY State official per calendar year, absent exceptional circumstances with General Counsel approval
☐ Gifts must never coincide with any pending decision, application, permit, or regulatory matter involving the Company
☐ All gifts to state officials must be documented in the Government Official Contact Log

7.3 Financial Disclosure (Public Officers Law 73-a)

State officers and certain employees must file annual financial disclosure statements. The Company shall coordinate with the Compliance Department to ensure that any gift provided does not create disclosure complications for the recipient or the Company.

7.4 Penalties

Knowing and intentional violations of Public Officers Law 73 may result in civil penalties of up to $40,000 plus the value of any gift, compensation, or benefit received. Criminal bribery under Penal Law 200.00-200.56 may result in imprisonment up to 15 years (Class B felony for bribery in the first degree).

8. NEW YORK CITY CONFLICTS OF INTEREST RULES

8.1 NYC Gift Restrictions (NYC Charter Chapter 68)

Under the NYC Conflicts of Interest Law:

• NYC public servants may not accept any gift valued at $50 or more from a person or firm that they know or should know does business with, or seeks to do business with, the City of New York
• This applies to all gifts from the Company if the Company does business with or seeks to do business with any NYC agency
• The NYC Conflicts of Interest Board ("COIB") interprets these rules broadly

8.2 Company Policy for NYC Interactions

☐ If the Company does business with or seeks to do business with NYC, no gifts of any value may be provided to NYC public servants without CCO pre-approval
☐ The CCO will verify the COIB rules and any agency-specific restrictions before approving any gift
☐ Even nominal gifts (branded items, coffee) should be evaluated where the Company has active NYC contracts or applications
☐ Company personnel must confirm whether a counterpart is a NYC public servant before providing any gift or entertainment

8.3 COIB Enforcement

The COIB may impose fines up to $25,000 per violation against the public servant and may refer matters to the Department of Investigation or the relevant district attorney for criminal prosecution.

9. GIFTS INVOLVING FEDERAL AND FOREIGN GOVERNMENT OFFICIALS

9.1 Federal Officials

☐ Comply with 5 C.F.R. Part 2635 (Standards of Ethical Conduct for Executive Branch Employees), which limits gifts from prohibited sources to $20 per occasion / $50 annually
☐ Pre-approval from CCO required

9.2 Foreign Officials (FCPA)

☐ Strict pre-approval from General Counsel required for any gift of any value
☐ The gift must be lawful under the official's home country laws
☐ The Company must directly pay vendors; no cash reimbursements
☐ All expenditures must be accurately recorded in books and records

10. COMMERCIAL BUSINESS GIFTS AND ENTERTAINMENT

Gifts and entertainment involving non-government commercial parties are permissible provided they:

☐ Are modest, infrequent, and proportionate to the business relationship
☐ Have a legitimate business purpose
☐ Do not coincide with active contract negotiations, renewals, or competitive bidding without CCO pre-approval
☐ Comply with the recipient's employer policies
☐ Fall within the monetary thresholds in Section 6
☐ Are accurately recorded in expense reports and gift logs

11. TRAVEL AND HOSPITALITY

When the Company pays for third-party travel or hospitality:

☐ Written pre-approval from the CCO and General Counsel is required
☐ Economy-class air travel only unless business justification is approved
☐ Lodging at standard business-class hotels; no luxury accommodations without CCO approval
☐ Written agenda with legitimate business activities required
☐ No side trips, personal excursions, or spousal/guest travel at Company expense
☐ Company must pay vendors directly; no cash reimbursements
☐ All travel documented with itineraries, receipts, and attendee lists

12. CHARITABLE AND POLITICAL CONTRIBUTIONS

12.1 Charitable Contributions

Charitable contributions connected to a business counterparty or government official require CCO and General Counsel pre-approval, due diligence on the charity, and documentation of the business purpose.

12.2 Political Contributions

• Must comply with NY Election Law Article 14 (contribution limits) and, if applicable, NYC Campaign Finance Board rules
• No Company funds for political contributions without Board approval
• Employees' personal contributions must not be made at the Company's direction

13. LOGGING, RECORDKEEPING, AND REPORTING

13.1 Gift Log

All gifts and entertainment given or received with a value exceeding $15 must be recorded in the centralized Gift and Entertainment Log. Each entry must include:

☐ Date of gift/entertainment
☐ Name and title of recipient/donor
☐ Organization/entity affiliation
☐ Government official status (NY State, NYC, federal, other)
☐ Description and fair market value (USD)
☐ Legitimate business purpose
☐ Approving manager/officer
☐ Receipt or documentation attached

13.2 Retention

All records must be retained for a minimum of seven (7) years.

13.3 Quarterly Review

The Compliance Department shall conduct quarterly reviews to identify patterns, threshold issues, and documentation gaps.

14. PRE-APPROVAL PROCESS

☐ Complete the Gift and Entertainment Approval Form (Annex A) at least five (5) business days before the planned gift or event
☐ For exigent circumstances, notify the CCO within 24 hours and complete the form within 48 hours
☐ Obtain retroactive approval within five (5) business days

15. TRAINING REQUIREMENTS

☐ All employees: initial training within 30 days of hire; annual refresher
☐ Enhanced training for sales, procurement, government relations, and business development
☐ Training must cover FCPA, NY Public Officers Law 73/74, NYC Chapter 68, and this Policy
☐ Training records maintained for at least five (5) years

16. ENFORCEMENT AND DISCIPLINARY ACTION

Violations may result in:

☐ Verbal or written warning
☐ Mandatory supplemental training
☐ Suspension of gift/entertainment privileges
☐ Forfeiture of bonus or incentive compensation
☐ Demotion, reassignment, or termination
☐ Referral to law enforcement

Potential legal exposure includes:

• FCPA criminal and civil penalties
• NY Penal Law bribery charges (Class C or B felony)
• Civil penalties up to $40,000 per violation under Public Officers Law 73
• COIB enforcement fines up to $25,000 per violation (NYC)

17. REPORTING VIOLATIONS AND NON-RETALIATION

17.1 Reporting Channels

☐ Direct supervisor or manager
☐ Chief Compliance Officer: [________________________________]
☐ General Counsel: [________________________________]
☐ Anonymous Ethics Hotline: [________________________________]
☐ Email: [________________________________]

17.2 Non-Retaliation

The Company prohibits retaliation against any individual who reports a suspected violation in good faith. New York Labor Law Section 740 provides whistleblower protections for employees who report suspected legal violations to a supervisor, public body, or legal authority.

18. POLICY GOVERNANCE AND REVIEW

• Policy Owner: Chief Compliance Officer
• Review Frequency: Annually, or upon material changes in applicable law
• Approval Authority: General Counsel and Board of Directors
• Next Scheduled Review: [__/__/____]

19. ACKNOWLEDGMENT

I, the undersigned, acknowledge that I have received, read, and understand this Gifts and Entertainment Policy. I agree to comply with its terms.

Employee Name: [________________________________]
Employee Signature: [________________________________]
Title/Department: [________________________________]
Date: [__/__/____]

ANNEX A: GIFT AND ENTERTAINMENT APPROVAL FORM

ANNEX B: GIFT LOG TEMPLATE

SOURCES AND REFERENCES

• Foreign Corrupt Practices Act, 15 U.S.C. 78dd-1 et seq. -- https://www.law.cornell.edu/uscode/text/15/78dd-1
• N.Y. Public Officers Law 73 -- https://www.nysenate.gov/legislation/laws/PBO/73
• N.Y. Public Officers Law 73-a (Financial Disclosure)
• N.Y. Public Officers Law 74 (Code of Ethics)
• N.Y. Penal Law 200.00-200.56 (Bribery)
• NY Commission on Ethics and Lobbying in Government -- https://ethics.ny.gov/gifts
• NYC Conflicts of Interest Law (NYC Charter Chapter 68) -- https://a860-gpp.nyc.gov/
• NYC Conflicts of Interest Board -- https://www.nyc.gov/site/coib/
• NY Labor Law 740 (Whistleblower Protections)
• Anti-Kickback Statute, 42 U.S.C. 1320a-7b
• Federal Bribery Statute, 18 U.S.C. 201
• 5 C.F.R. Part 2635 (Federal Ethics Standards)

This document is a template provided for informational purposes only and does not constitute legal advice. It must be reviewed and customized by a qualified attorney licensed in New York before implementation.