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A07669 Summary:

BILL NOA07669A
 
SAME ASNo Same As
 
SPONSORMagnarelli
 
COSPNSRBuchwald
 
MLTSPNSR
 
Amd §§800, 801, 802, 805-a, 806, 808 & 810, Gen Muni L; amd §13, Chap 946 of 1964
 
Relates to conflicts of interest of municipal officers and employees, codes of ethics and boards of ethics.
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A07669 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7669--A
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                      May 21, 2015
                                       ___________
 
        Introduced  by  M.  of  A.  MAGNARELLI -- (at request of the State Comp-
          troller) -- read once and referred to the Committee on  Local  Govern-
          ments  -- recommitted to the Committee on Local Governments in accord-
          ance with Assembly Rule  3,  sec.  2  --  committee  discharged,  bill
          amended,  ordered reprinted as amended and recommitted to said commit-
          tee
 
        AN ACT to amend the general municipal law, in relation to  conflicts  of
          interest  of  municipal  officers  and  employees, codes of ethics and
          boards of ethics; to amend chapter 946 of the laws  of  1964  amending
          the  general  municipal  law  and  other laws relating to conflicts of
          interest of municipal officers and employees, in relation  to  permit-
          ting  local codes of ethics to prohibit activities expressly permitted
          by article 18 of the general municipal law
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1. Subdivision 3 of section 800 of the general municipal law,
     2  as amended by chapter 1043 of the laws of 1965, is amended  to  read  as
     3  follows:
     4    3. "Interest" means a direct or indirect pecuniary or material benefit
     5  accruing  to  a  municipal officer or employee, or his or her spouse, as
     6  the result of a contract with the municipality  which  such  officer  or
     7  employee serves. For the purposes of this article a municipal officer or
     8  employee  shall be deemed to have an interest in the contract of (a) his
     9  or her spouse, minor children  and  dependents,  except  a  contract  of
    10  employment  with the municipality which such officer or employee serves,
    11  (b) a  firm,  partnership  or  association  of  which  such  officer  or
    12  employee,  or  his  or her spouse, is a member or employee, (c) a corpo-
    13  ration of which such officer or employee, or his or her  spouse,  is  an
    14  officer,  director  or employee and (d) a corporation any stock of which
    15  is owned or controlled directly or indirectly by such officer or employ-
    16  ee, or his or her spouse.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03014-04-5

        A. 7669--A                          2
 
     1    § 2. Section 801 of the general municipal law, as amended  by  chapter
     2  1043 of the laws of 1965, is amended to read as follows:
     3    § 801. Conflicts of interest prohibited. Except as provided in section
     4  eight hundred two of this [chapter] article, (1) no municipal officer or
     5  employee shall have an interest in any contract with the municipality of
     6  which  he or she is an officer or employee, when such officer or employ-
     7  ee, individually or as a member of a board, has the power or duty to (a)
     8  negotiate, prepare, authorize or approve the contract  or  authorize  or
     9  approve  payment  thereunder,  (b)  audit  bills  or  claims  under  the
    10  contract, or (c) appoint an officer or  employee  who  has  any  of  the
    11  powers  or  duties  set  forth above [and]; (2) no chief fiscal officer,
    12  treasurer, or his or her deputy or employee, shall have an interest in a
    13  bank or trust company designated as a depository, paying  agent,  regis-
    14  tration agent or for investment of funds of the municipality of which he
    15  or  she  is  an  officer  or  employee;  and (3) no municipal officer or
    16  employee whose service to a municipality includes rendition  of  profes-
    17  sional  services  requiring  admission  to the practice of law shall (a)
    18  have an interest in any contract for rendition of legal services to  the
    19  municipality,  unless  (i)  the  contract  is  awarded on the basis of a
    20  competitive process undertaken in  accordance  with  the  municipality's
    21  procurement  policies  and  procedures  adopted  pursuant to section one
    22  hundred four-b of this chapter, and (ii) the municipality has the advice
    23  of  independent  counsel  with  respect  to  the  advisability  of   the
    24  provisions of the contract, or (b) compensate any person or organization
    25  from his or her personal resources to render legal services to the muni-
    26  cipality.  The provisions of this section shall in no event be construed
    27  to preclude the payment of lawful compensation and necessary expenses of
    28  any municipal officer or employee in one or  more  positions  of  public
    29  employment, the holding of which is not prohibited by law.
    30    § 3. Paragraphs b and j of subdivision 1 of section 802 of the general
    31  municipal  law,  paragraph  b  as amended by chapter 1043 of the laws of
    32  1965 and paragraph j as added by chapter 364 of the laws  of  1996,  are
    33  amended to read as follows:
    34    b. A contract with a person, firm, corporation or association in which
    35  a  municipal  officer  or  employee  has an interest which is prohibited
    36  solely by reason of his or  her  employment,  or  his  or  her  spouse's
    37  employment,  as  an  officer or employee thereof, if the remuneration of
    38  such employment will not be  directly  affected  as  a  result  of  such
    39  contract  and  the duties of such employment do not directly involve the
    40  procurement, preparation or performance of any part of such contract;
    41    j. Purchases or public work by a municipality, other  than  a  county,
    42  located  wholly  or  partly  within  a  county  with a population of two
    43  hundred thousand or less pursuant to a contract in which a member of the
    44  governing body or board has a prohibited interest, where:
    45    (1) the member of the governing body or board is elected or  appointed
    46  and serves with or without salary or other compensation;
    47    (2)  the  purchases  or  public  work, in the aggregate, are less than
    48  [five] ten thousand dollars in one fiscal year and:
    49    (i) the governing body or board has followed its procurement  policies
    50  and  procedures adopted in accordance with the provisions of section one
    51  hundred four-b of this chapter and  the  procurement  process  indicates
    52  that the contract is with the lowest dollar offer[;], or
    53    (ii)  the  purchases,  in  the  aggregate,  are less than ten thousand
    54  dollars in one fiscal year, cannot be  procured  from  another  supplier
    55  located  within  the  municipality,  and  the  next  closest supplier is
    56  located more than five miles driving distance from the  municipality  by

        A. 7669--A                          3
 
     1  way  of  the  most direct route using public highways, roads or streets;
     2  and
     3    (3)  the  contract  for  the  purchases  or public work is approved by
     4  resolution of the body or board by the affirmative vote of  each  member
     5  of the body or board except the interested member who shall abstain.
     6    § 4. Paragraph a of subdivision 2 of section 802 of the general munic-
     7  ipal  law, as amended by chapter 1019 of the laws of 1970, is amended to
     8  read as follows:
     9    a. A contract with a corporation  in  which  a  municipal  officer  or
    10  employee  has an interest by reason of stockholdings when less than five
    11  per centum of the outstanding stock  of  the  corporation  is  owned  or
    12  controlled directly or indirectly by such officer or employee and his or
    13  her spouse either jointly or severally;
    14    §  5.  Section 805-a of the general municipal law, as added by chapter
    15  1019 of the laws of 1970 and subdivision 1 as amended by chapter 813  of
    16  the laws of 1987, is amended to read as follows:
    17    § 805-a. [Certain action prohibited] Additional statewide standards of
    18  ethical conduct.  1. No municipal officer or employee shall: a. directly
    19  or  indirectly, solicit any gift, or accept or receive any gift having a
    20  value of seventy-five dollars or more, whether in  the  form  of  money,
    21  service,  loan, travel, entertainment, hospitality, thing or promise, or
    22  in any other form, under circumstances in which it could  reasonably  be
    23  inferred  that  the gift was intended to influence him, or could reason-
    24  ably be expected to influence him, in the performance  of  his  official
    25  duties or was intended as a reward for any official action on his part;
    26    b.  disclose confidential information acquired by him in the course of
    27  his official duties or use such  information  to  further  his  personal
    28  interests;
    29    c.  receive,  or  enter  into  any  agreement, express or implied, for
    30  compensation for services to be  rendered  in  relation  to  any  matter
    31  before any municipal agency of which he is an officer, member or employ-
    32  ee or of any municipal agency over which he has jurisdiction or to which
    33  he has the power to appoint any member, officer or employee; or
    34    d.  receive,  or  enter  into  any  agreement, express or implied, for
    35  compensation for services to be  rendered  in  relation  to  any  matter
    36  before any agency of his municipality, whereby his compensation is to be
    37  dependent  or  contingent upon any action by such agency with respect to
    38  such matter, provided that this paragraph shall not prohibit the  fixing
    39  at  any  time  of  fees  based upon the reasonable value of the services
    40  rendered.
    41    2. a. Except as provided in paragraph b of this subdivision, no munic-
    42  ipal officer or employee shall participate in any official  decision  or
    43  take  any official action with respect to any matter requiring the exer-
    44  cise of discretion, including participating in official discussions  and
    45  voting on the matter, when he or she knows or has reason to believe that
    46  action  or  inaction  on  the  matter  could confer a direct or indirect
    47  financial or material benefit on himself or herself, a relative, or  any
    48  private  organization  in  which  the  municipal  officer or employee is
    49  deemed to have an interest.
    50    b. This subdivision shall not be construed as prohibiting:
    51    i. performance of a ministerial act, which for the  purposes  of  this
    52  section  shall  mean  an  administrative act carried out in a prescribed
    53  manner not allowing for substantial personal discretion;
    54    ii. participation in any official decision or official action taken by
    55  a board or similar body when  paragraph  a  of  this  subdivision  would
    56  prohibit one or more members of the board or body from participating and

        A. 7669--A                          4
 
     1  the remaining members of the board or body are insufficient in number or
     2  lack  sufficient  voting  strength  to  make  such decision or take such
     3  action; or
     4    iii.  participation  in any official decision or official action taken
     5  by a municipal officer or employee, individually, when the matter cannot
     6  be lawfully delegated or assigned to another person.
     7    c. Whenever paragraph a of  this  subdivision  prohibits  a  municipal
     8  officer or employee from participating in an official decision or taking
     9  official  action,  such  municipal  officer  or  employee shall disclose
    10  publicly the facts and circumstances  requiring  recusal.  Whenever  the
    11  prohibition in paragraph a of this subdivision does not apply because of
    12  the  applicability of subparagraph ii or subparagraph iii of paragraph b
    13  of this subdivision, the municipal officer or  employee  shall  disclose
    14  publicly  the facts and circumstances that would otherwise require recu-
    15  sal under paragraph a of this subdivision.
    16    d. For purposes of this subdivision, the term "relative" shall mean  a
    17  spouse,  parent,  step-parent,  sibling, step-sibling, sibling's spouse,
    18  child, step-child, uncle, aunt, nephew, niece, first cousin,  or  house-
    19  hold  member  of a municipal officer or employee, and individuals having
    20  any of these relationships to the spouse of the officer or employee.
    21    e. Compliance with this subdivision shall not constitute an  exception
    22  to section eight hundred one of this article, nor be construed as curing
    23  a violation of that section.
    24    3. a. Except as provided in paragraph b of this subdivision, no munic-
    25  ipal  officer or employee shall use or permit the use of municipal prop-
    26  erty or resources for personal or private purposes.
    27    b. This subdivision shall not be construed as prohibiting:
    28    i. any use of municipal property or resources  authorized  by  law  or
    29  municipal policy consistent with law;
    30    ii. the use of municipal property or resources for personal or private
    31  purposes when provided to a municipal officer or employee as part of his
    32  or her compensation; or
    33    iii.  the  occasional,  minimal,  non-business and non-partisan use of
    34  municipal office equipment and supplies, such as telephones,  computers,
    35  copiers,  paper  and pens, for personal matters at no or nominal cost to
    36  the municipality.
    37    c. For purposes of this subdivision,  "property  or  resources"  shall
    38  include,  but not be limited to, money, facilities, furnishings, machin-
    39  ery, apparatus, equipment, supplies and letterhead.
    40    4. In addition to any penalty contained in any other provision of law,
    41  any person who shall knowingly and intentionally  violate  this  section
    42  may  be  fined,  suspended  or  removed from office or employment in the
    43  manner provided by law.
    44    § 6. The section heading of section 806 of the general municipal  law,
    45  as  amended  by  chapter 1019 of the laws of 1970, is amended to read as
    46  follows:
    47    [Code] Municipal codes of ethics.
    48    § 7. Paragraph (a) of subdivision 1 of  section  806  of  the  general
    49  municipal law, as amended by chapter 238 of the laws of 2006, is amended
    50  to read as follows:
    51    (a)  The  governing  body  of each county, city, town, village, school
    52  district [and], fire district and improvement district governed by arti-
    53  cle thirteen of the town law shall, and the governing body of any  other
    54  municipality may, by local law, ordinance or resolution, adopt a code of
    55  ethics  setting forth for the guidance of its officers and employees the
    56  standards of conduct reasonably expected of  them.  Notwithstanding  any

        A. 7669--A                          5
 
     1  other provision of this article to the contrary, a fire district code of
     2  ethics  shall  also  apply to the volunteer members of the fire district
     3  fire department. Codes of ethics shall provide  standards  for  officers
     4  and  employees  with  respect  to  disclosure of interest in legislation
     5  before the local governing body, holding of investments in conflict with
     6  official duties, private employment in conflict  with  official  duties,
     7  future  employment,  nepotism,  and such other standards relating to the
     8  conduct of officers and employees as may be deemed advisable. Such codes
     9  may: (i) regulate or prescribe conduct which is not expressly prohibited
    10  by this article but may not  authorize  conduct  otherwise  prohibited[.
    11  Such  codes may provide for the prohibition of]; (ii) prohibit contracts
    12  or conduct [or] that is either expressly or by implication permitted  by
    13  section  eight hundred two or section eight hundred five-a of this arti-
    14  cle; and (iii) provide for the disclosure of information and the classi-
    15  fication of employees or officers. The governing body  of  each  munici-
    16  pality  that  adopts  a code of ethics shall biennially review and, when
    17  deemed necessary, update its code of ethics.
    18    § 8. Subdivision 2 of section 806 of the  general  municipal  law,  as
    19  amended  by  chapter  238  of  the  laws  of 2006, is amended to read as
    20  follows:
    21    2. [The] Upon the adoption or amendment of a code of ethics by a muni-
    22  cipality, the chief executive officer of [a] the municipality  [adopting
    23  a code of ethics] shall cause a copy [thereof] of such code or amendment
    24  to  be  distributed promptly to every officer and employee of his or her
    25  municipality and to the board of ethics for the municipality.  In  addi-
    26  tion,  such  chief  executive officer shall cause a complete and current
    27  copy of the municipality's code of ethics to be posted  on  the  munici-
    28  pality's  web  site,  if  the  municipality  maintains  a  web site, and
    29  distributed (a) to every person who is elected or appointed to serve  as
    30  an  officer  or  employee  of  the  municipality promptly following such
    31  person's election or appointment,  and  (b)  to  all  the  officers  and
    32  employees  of  the  municipality  at  least once every five years. Every
    33  municipal officer and employee receiving a copy of a code of  ethics  or
    34  amendment  thereto  shall acknowledge promptly in writing that he or she
    35  has received and read the code of ethics or amendment and such  acknowl-
    36  edgement shall be filed with the clerk or secretary of the municipality.
    37  The board of fire [district] commissioners of a fire district shall also
    38  cause a copy of the fire district's code of ethics, including any amend-
    39  ments  thereto, to be posted publicly and conspicuously in each building
    40  under such district's control.  Failure to distribute any such  copy  or
    41  failure  of  any  officer or employee to receive such copy shall have no
    42  effect on the duty of compliance with such code, nor the enforcement  of
    43  provisions thereof.
    44    §  9.  Section 806 of the general municipal law is amended by adding a
    45  new subdivision 3 to read as follows:
    46    3. The clerk of each municipality and of each  political  subdivision,
    47  as  defined in section eight hundred ten of this article, shall maintain
    48  as a record subject to public inspection:
    49    (a) a copy of the municipality's or political  subdivision's  code  of
    50  ethics or any amendments to any code of ethics;
    51    (b)  a  statement  that such municipality or political subdivision has
    52  established a board of ethics, in accordance with section eight  hundred
    53  eight of this article and/or pursuant to other law, charter, code, local
    54  law, ordinance or resolution, and the composition of such board; and
    55    (c)  a  copy  of  the form of annual statement of financial disclosure
    56  described in subdivision one of section eight  hundred  eleven  of  this

        A. 7669--A                          6
 
     1  article  and  either  a statement of the date such annual statement form
     2  was promulgated by local law, ordinance or resolution of  the  governing
     3  body, if adopted pursuant to subparagraph (i) of paragraph (a) of subdi-
     4  vision  one of section eight hundred eleven of this article, or a state-
     5  ment that the governing body has, by local law, ordinance or resolution,
     6  resolved to continue the use of an authorized form of  annual  statement
     7  of  financial disclosure in use on the date such local law, ordinance or
     8  resolution is adopted, if adopted pursuant to subparagraph (ii) of para-
     9  graph (a) of subdivision one of section eight  hundred  eleven  of  this
    10  article,  and  if  as  of January first, nineteen hundred ninety-one, no
    11  such form was promulgated and no such resolve was made to continue using
    12  an existing annual statement form, a statement that  the  provisions  of
    13  section eight hundred twelve of this article apply or that it is a muni-
    14  cipality which is not subject to the provisions of section eight hundred
    15  twelve  of  this  article  because  it is not a political subdivision as
    16  defined in section eight hundred ten of this article.
    17    § 10. Intentionally omitted.
    18    § 11. Section 808 of the general municipal law, as amended by  chapter
    19  1019  of the laws of 1970 and subdivision 5 as amended by chapter 490 of
    20  the laws of 2014, is amended to read as follows:
    21    § 808. Boards of ethics. 1. [The governing  body  of  any  county  may
    22  establish  a  county  board of ethics and appropriate moneys for mainte-
    23  nance and personal services in connection therewith. The members of such
    24  board of ethics shall be appointed by such governing body except in  the
    25  case  of  a  county  operating  under an optional or alternative form of
    26  county government or county charter, in which case the members shall  be
    27  appointed by the county executive or county manager, as the case may be,
    28  subject  to  confirmation  by  such governing body. Such board of ethics
    29  shall consist of at least three members, a majority of whom shall not be
    30  officers or  employees  of  such  county  or  municipalities  wholly  or
    31  partially  located  in  such county and at least one of whom shall be an
    32  elected or appointed officer or employee of the county or a municipality
    33  located within such county. The members of such board shall  receive  no
    34  salary  or  compensation for their services as members of such board and
    35  shall serve at the pleasure of the appointing authority] (a) The govern-
    36  ing body of (i) every county, (ii) every city, town and village having a
    37  population of fifty thousand or more, and (iii) every board  of  cooper-
    38  ative  educational  services  (BOCES) shall establish a board of ethics.
    39  Thereafter, the governing body shall appropriate annually such moneys as
    40  may be necessary  for  the  board's  contractual  and  personal  service
    41  expenditures.  Except  as provided in paragraph (d) of this subdivision,
    42  such board shall have jurisdiction to act only in relation to the  offi-
    43  cers  and  employees  of  the  county, city, town, village or BOCES that
    44  established the board.
    45    (b) The governing body of every municipality not  described  in  para-
    46  graph (a) of this subdivision is authorized, but not required, to estab-
    47  lish  a  board  of ethics. If such governing body establishes a board of
    48  ethics, the governing body shall appropriate annually such moneys as may
    49  be necessary for the board's contractual and personal  service  expendi-
    50  tures.    Such  board shall have jurisdiction to act only in relation to
    51  the officers and employees of  the  municipality  that  established  the
    52  board.
    53    (c)  Two or more municipalities not described in paragraph (a) of this
    54  subdivision may enter into, amend, cancel, and terminate agreements  for
    55  the  establishment  of  a  cooperative  board of ethics. Such agreements
    56  shall be consistent with the requirements  of  article  five-G  of  this

        A. 7669--A                          7
 
     1  chapter,  except  as  otherwise provided in this section, including that
     2  (i) the power to enter into such agreements shall extend to all  munici-
     3  palities as defined in this article, and shall not be limited to munici-
     4  pal  corporations  and  districts  as  defined in article five-G of this
     5  chapter, and (ii) the duration of such agreements shall not  be  limited
     6  to  a maximum term of five years. Following the establishment of a coop-
     7  erative board of ethics, the governing bodies of the municipalities that
     8  are parties to the agreement establishing the  board  shall  appropriate
     9  annually such moneys as may be necessary for the board's contractual and
    10  personal  service  expenditures, in such amounts or proportion as may be
    11  provided in the agreement. A cooperative board of ethics  shall  be  the
    12  board  of  ethics  of each municipality that is a party to the agreement
    13  establishing the board, and shall  have  jurisdiction  to  act  only  in
    14  relation to the officers or employees of such municipalities.
    15    (d)  In  the  event  that a municipality described in paragraph (b) of
    16  this subdivision does not establish a board of ethics and is not a party
    17  to an agreement establishing a cooperative board of ethics:
    18    (i) in the case of a municipality other than a  school  district,  the
    19  board of ethics of the county in which the municipality is located shall
    20  serve  as the board of ethics of such municipality and have jurisdiction
    21  to act in relation to the officers and employees of  that  municipality,
    22  provided that if such a municipality is located in more than one county,
    23  the  governing  board  of the municipality by resolution shall designate
    24  the board of ethics of one of the counties to  serve  as  the  board  of
    25  ethics of the municipality;
    26    (ii)  in  the  case  of  a school district, other than the city school
    27  district of a city having a population of one hundred twenty-five  thou-
    28  sand or more, the board of ethics established by the BOCES of the super-
    29  visory  district  in which the school district is located shall serve as
    30  the board of ethics of such school district and have jurisdiction to act
    31  in relation to the officers and employees of such school district; and
    32    (iii) in the case of a city school district of a city having  a  popu-
    33  lation  of one hundred twenty-five thousand or more, the board of ethics
    34  established by the city in which the school district  is  located  shall
    35  serve  as the board of ethics of such school district and have jurisdic-
    36  tion to act in relation to the officers and  employees  of  such  school
    37  district.
    38    (e)  In the case of a municipality that has not established a board of
    39  ethics and is not a party to an  agreement  establishing  a  cooperative
    40  board of ethics:
    41    (i)  The chief executive officer of the municipality, annually, within
    42  thirty days following the start of the municipality's fiscal year, shall
    43  notify the appropriate county, BOCES or city board of ethics  that  such
    44  board  shall  serve  as  the  board of ethics for the municipality. Such
    45  notice shall be accompanied by  a  complete  and  current  copy  of  the
    46  municipality's  code of ethics. If officers and employees of the munici-
    47  pality are subject to annual financial disclosure  requirements  imposed
    48  in  accordance  with this article, such notice shall also be accompanied
    49  by a complete and current copy of all  local  laws,  ordinances,  resol-
    50  utions and regulations adopted by the municipality relating to the impo-
    51  sition, administration and enforcement of the filing requirement. At the
    52  time  such notice is given, the chief executive officer shall also cause
    53  a copy of the notice to be posted on the municipality's web site, if the
    54  municipality maintains a web site, and in each public building under the
    55  jurisdiction of the municipality in a place conspicuous to its  officers
    56  and employees.

        A. 7669--A                          8
 
     1    (ii)  The  governing body of the municipality, annually, within thirty
     2  days following the  start  of  the  municipality's  fiscal  year,  shall
     3  appoint  a  municipal representative to the appropriate county, BOCES or
     4  city board of ethics. The person appointed as  municipal  representative
     5  shall be a resident of the municipality, and shall be knowledgeable with
     6  respect  to  the  municipality's  code  of ethics and the municipality's
     7  annual financial disclosure requirements, if any. The  municipal  repre-
     8  sentative  shall receive notice of, and be entitled to participate, as a
     9  non-voting member, in all meetings, proceedings, deliberations and other
    10  activities of the board that pertain to an officer or  employee  of  the
    11  municipality.    A  municipal  representative shall receive no salary or
    12  compensation for his or her services, but  within  amounts  appropriated
    13  shall  be  reimbursed  for actual and necessary expenses incurred in the
    14  performance of his or her official duties.
    15    (f) In the event that a board of ethics established by a county, BOCES
    16  or city serves as the board of ethics for another municipality, and such
    17  municipality shall either establish a board of ethics or become a  party
    18  to  an  agreement  establishing a cooperative board of ethics, the chief
    19  executive officer of the municipality shall notify the county, BOCES  or
    20  city  board of ethics of the date as of which such board shall no longer
    21  serve as the board of ethics of  the  municipality.  Such  notice  shall
    22  either  state  that  the  municipality  has established its own board of
    23  ethics or identify such cooperative board of ethics. At  the  time  such
    24  notice  is given, the chief executive officer shall also cause a copy of
    25  the notice to be posted on the municipality's web site, if  the  munici-
    26  pality  maintains  a  web  site,  and  in each public building under the
    27  jurisdiction of the municipality in a place conspicuous to its  officers
    28  and  employees.  Promptly  after  the date specified in such notice, the
    29  county, BOCES or city board of ethics shall transfer to the municipal or
    30  cooperative board of ethics all pending matters and records relating  to
    31  the  officers and employees of the municipality; provided, however, that
    32  such county, BOCES, or city board of ethics shall have the discretion to
    33  retain any pending matter and records relating thereto until  such  time
    34  as the matter is resolved.
    35    (g)  Every  board of ethics shall consist of at least three members, a
    36  majority of whom shall not  be  municipal  officers  or  employees.  The
    37  members of every board of ethics shall serve for a fixed term of office,
    38  not  to  exceed  five  years. The length of such term of office shall be
    39  determined by the municipal governing body that establishes the board of
    40  ethics or specified in the agreement establishing a cooperative board of
    41  ethics, provided that such governing body or agreement may  provide  for
    42  the  initial  appointments  to the board to be made for staggered terms.
    43  Appointments to the board shall be made as follows:
    44    (i) The members of a county board of ethics shall be appointed by  the
    45  governing  body  of  the county except in the case of a county operating
    46  under an optional or alternative form of  county  government  or  county
    47  charter,  in  which  case  the  members shall be appointed by the county
    48  executive, county manager or county administrator, as the case  may  be,
    49  subject to confirmation by such governing body.
    50    (ii)  The  members  of a board of ethics established by a municipality
    51  other than a county shall be appointed by  the  governing  body  of  the
    52  municipality  or  by  such  person  or  body as may be designated by the
    53  governing body of the municipality.
    54    (iii) The members of a cooperative board of ethics shall be  appointed
    55  in the manner provided in the agreement establishing the board.

        A. 7669--A                          9
 
     1    (h)  The  members  of every board of ethics shall receive no salary or
     2  compensation for their services as members of  such  board,  but  within
     3  amounts  appropriated  shall  be  reimbursed  for  actual  and necessary
     4  expenses incurred in the performance of their official duties, provided,
     5  that  the  provisions  of  section seventy-seven-b of this chapter shall
     6  apply to the members of a board of ethics.
     7    2. [The] Every board of ethics shall render advisory opinions  to  the
     8  officers  and  employees  [of municipalities wholly or partly within the
     9  county] under the board's jurisdiction with respect to this article  and
    10  any code of ethics adopted pursuant hereto. Such advisory opinions shall
    11  be  rendered  pursuant  to  the  written  request of any such officer or
    12  employee under such rules and regulations as  the  board  may  prescribe
    13  [and shall have the advice of counsel employed by the board, or if none,
    14  the  county  attorney]. In addition, [it] the board may make recommenda-
    15  tions with respect to the drafting and adoption of a code of  ethics  or
    16  amendments thereto upon the request of the governing body of any munici-
    17  pality  [in the county] for which the board serves as the municipality's
    18  board of ethics, and perform such other functions relating to the admin-
    19  istration of this article as may be authorized by the governing body  or
    20  agreement  establishing the board including, but not limited to, provid-
    21  ing ethics training to the officers  and  employees  under  the  board's
    22  jurisdiction.
    23    2-a.  (a) Notwithstanding any general, special or local law, ordinance
    24  or resolution to the contrary, every board  of  ethics  shall  have  the
    25  power  to investigate potential violations of this article and a code of
    26  ethics adopted pursuant to this article involving the municipal officers
    27  and employees under the board's jurisdiction;  provided,  however,  that
    28  this  subdivision  shall  not apply to a judge or justice of the unified
    29  court system. The board may initiate such an investigation  either  upon
    30  its  own  motion  or  upon  receipt of a sworn complaint alleging such a
    31  violation.
    32    (b) At any time after receiving a sworn  complaint  or  initiating  an
    33  investigation,  the  board may make a final determination that there has
    34  been no violation of this article or a code of ethics. In such case, the
    35  board shall provide written notification of such  determination  to  the
    36  municipal  officer  or employee who was the subject of the investigation
    37  and the complainant, if any.
    38    (c) After initiating an investigation, but before making a preliminary
    39  determination that there has been a violation of this article or a  code
    40  of  ethics, the board shall provide to the municipal officer or employee
    41  who is the subject of the investigation written  notice  describing  the
    42  potential  violation, and provide the person with at least a fifteen day
    43  period to submit a written response setting forth  information  relating
    44  to the activities cited as the potential violation.
    45    (d)  After  the  expiration  of the period of time for submission of a
    46  written response pursuant to paragraph  (c)  of  this  subdivision,  the
    47  board  may  make  a  preliminary  determination  that  there  has been a
    48  violation  of this article or a violation of a code of ethics.  In  such
    49  case,  the  board  shall provide written notification of the preliminary
    50  determination to the municipal officer or employee who is the subject of
    51  the investigation and provide that person with an additional opportunity
    52  to be heard. Thereafter, if the board makes a final  determination  that
    53  there has been a violation, the board shall provide written notification
    54  of such final determination to the municipal officer or employee who was
    55  the  subject  of  the  investigation,  the  complainant, if any, and the
    56  appointing authority for such person or, if  the  person  serves  in  an

        A. 7669--A                         10
 
     1  elective  office,  the governing body of the municipality for which such
     2  person serves.
     3    (e) In cases where the board finds that a municipal officer or employ-
     4  ee  has  willfully  and  knowingly  violated  this  article or a code of
     5  ethics, the board may: (i) issue a reprimand; (ii) assess a civil penal-
     6  ty on behalf of the municipality in an amount not to exceed one thousand
     7  dollars for  each  such  specific  violation;  (iii)  recommend  to  the
     8  appointing authority for such person, if any, suspension with or without
     9  pay,  demotion,  termination  or  such  other disciplinary action as the
    10  board deems appropriate; and (iv) in the case of a violation potentially
    11  encompassed within section eight hundred five of this article, refer the
    12  matter to the appropriate law enforcement agency. Assessment of a  civil
    13  penalty  shall  be  final  unless  modified, suspended or vacated within
    14  thirty days of imposition, and upon becoming final shall be  subject  to
    15  review  at the instance of such person in a proceeding against the board
    16  brought pursuant to article seventy-eight of the civil practice law  and
    17  rules.
    18    (f)  Every  board of ethics shall adopt rules to ensure procedural due
    19  process in the conduct of adjudicatory proceedings held pursuant to this
    20  subdivision. The board shall cause a copy of such rules to  be  provided
    21  to any person who is the subject of an adjudicatory proceeding, and such
    22  rules shall be available to the public for inspection and copying.
    23    2-b.  Notwithstanding  any  provision  in  article six or seven of the
    24  public officers law to the contrary:
    25    (a) all documents and records of a board  of  ethics  relating  to  an
    26  investigation or an adjudicatory proceeding conducted pursuant to subdi-
    27  vision  two-a  of  this  section  shall be confidential and shall not be
    28  available to the public, except that final determinations of  the  board
    29  with  respect to whether there has been a violation of this article or a
    30  code of ethics shall be available for public inspection and copying;
    31    (b) advisory opinions rendered by a board of ethics shall be available
    32  for public inspection and copying, provided that information identifying
    33  the municipal officer  or  employee  requesting  the  opinion  shall  be
    34  redacted from the copy made available to the public; and
    35    (c) no meeting of a board of ethics or portion thereof relating to the
    36  conduct  of an individual municipal officer or employee and no adjudica-
    37  tory proceeding conducted pursuant to subdivision two-a of this  section
    38  shall  be  open  to the public, unless the affected municipal officer or
    39  employee requests and the board agrees to permit  public  attendance  at
    40  the meeting or proceeding.
    41    3.  [The  governing  body  of any municipality other than a county may
    42  establish a local board of ethics and, where such governing body  is  so
    43  authorized,  appropriate moneys for maintenance and personal services in
    44  connection therewith. A local board shall have all the powers and duties
    45  of and shall be governed by the same conditions as  a  county  board  of
    46  ethics,  except  that  it  shall  act  only with respect to officers and
    47  employees of the municipality that has established such board or of  its
    48  agencies. The members of a local board shall be appointed by such person
    49  or  body  as may be designated by the governing body of the municipality
    50  to serve at the pleasure of the  appointing  authority  and  such  board
    51  shall  consist  of  at  least  three members, a majority of whom are not
    52  otherwise officers or employees of such municipality. Such  board  shall
    53  include  at  least  one  member who is an elected or appointed municipal
    54  officer or employee.
    55    4. The county board of ethics shall not act with respect to the  offi-
    56  cers  and  employees  of  any municipality located within such county or

        A. 7669--A                         11

     1  agency thereof, where such municipality has established its own board of
     2  ethics, except that the local board may at its option refer  matters  to
     3  the county board.
     4    5.] A board of ethics shall have the advice of counsel employed by the
     5  board  or,  if  none, the attorney for the municipality that established
     6  the board or, in the case of a cooperative board of ethics, such munici-
     7  pal attorney as may be designated  in  the  agreement  establishing  the
     8  cooperative board of ethics.
     9    4.  The  board  of  ethics  of  a political subdivision (as defined in
    10  section eight hundred ten of this article) and the board  of  ethics  of
    11  any  other municipality[,] which [is required by local law, ordinance or
    12  resolution to be, or which pursuant to legal authority, in practice  is,
    13  the  repository  for completed annual statements of financial disclosure
    14  shall file a statement with the clerk of its municipality,  that  it  is
    15  the  authorized  repository for completed annual statements of financial
    16  disclosure] requires filing of annual statements of financial disclosure
    17  pursuant to this article, shall receive, review  for  completeness,  and
    18  serve  as  repository for such annual statements and enforce such filing
    19  requirement.
    20    5. Each member of every board of ethics shall attend and  successfully
    21  complete  a training course approved by the state comptroller within two
    22  hundred seventy days of his or her appointment or reappointment  to  the
    23  board;  provided,  however,  that  nothing  in this subdivision shall be
    24  deemed to require a member of a board of ethics to successfully complete
    25  such training course more than once. The course shall  contain  training
    26  related  to  the  provisions  of  this  article, codes of ethics, annual
    27  financial disclosure and decisional law relating to conflicts of  inter-
    28  est and ethics and such other topics as the comptroller deems advisable.
    29  When  approved  in  advance  of  attendance by the governing body of the
    30  municipality establishing the board or in  the  manner  provided  in  an
    31  agreement  establishing  a  cooperative  board of ethics, the actual and
    32  necessary expenses incurred by a board member in successfully completing
    33  the training required by this section shall  be  a  charge  against  the
    34  municipality  or  the  municipalities  participating  in the cooperative
    35  board of ethics as provided in such agreement.
    36    6. The provisions of this section shall not apply to a city  having  a
    37  population  of  one  million or more or to a county, school district, or
    38  other public agency or facility therein.
    39    § 12. Subdivision 9 of section 810 of the general  municipal  law,  as
    40  amended  by  chapter  490  of  the  laws  of 2014, is amended to read as
    41  follows:
    42    9. The term "appropriate body" or "appropriate bodies" shall mean  the
    43  board of ethics [for the] of any political subdivision or municipality.
    44    §  13.  Section  13  of  chapter  946 of the laws of 1964 amending the
    45  general municipal law and other laws relating to conflicts  of  interest
    46  of municipal officers and employees, is amended to read as follows:
    47    §  13. Laws superseded. The provisions of article [eighteen] 18 of the
    48  general municipal law, as added by this act, shall supersede  any  local
    49  law,  charter,  ordinance, resolution, rule or regulation of any munici-
    50  pality to the extent that such local  law,  charter,  ordinance,  resol-
    51  ution,  rule  or regulation is inconsistent with the provisions thereof.
    52  No local law, ordinance, resolution, rule or regulation shall modify  or
    53  dispense  with  any  provision  of  article [eighteen] 18 of the general
    54  municipal law, as added by this act;  provided,  however,  that  nothing
    55  [herein]  contained  in  this  section  shall  prohibit a code of ethics
    56  adopted pursuant thereto from supplementing the provisions of  this  act

        A. 7669--A                         12
 
     1  or  from  being  more stringent than article 18 of the general municipal
     2  law.
     3    § 14. Notwithstanding any general, special or local law to the contra-
     4  ry, the governing body of any municipality which has prior to the effec-
     5  tive  date  of  this  act: (a) established a board of ethics pursuant to
     6  section 808 of the general municipal law; and (b) not established a term
     7  of office for the members of  such  board,  such  governing  body  shall
     8  establish  terms  of  office  for  the members of such board pursuant to
     9  paragraph (g) of subdivision 1 of section 808 of the  general  municipal
    10  law  as  added by section eleven of this act to begin on a date no later
    11  than the first day of the municipality's fiscal year commencing in  2017
    12  and  on  such date the positions on such board of ethics shall be deemed
    13  vacant, provided that nothing in this  section  shall  be  construed  to
    14  prohibit the reappointment of an incumbent board member for such term of
    15  office.
    16    § 15. Notwithstanding any general, special or local law to the contra-
    17  ry,  any  person  serving  as  a member of a board of ethics established
    18  pursuant to section 808 of the general municipal law  on  the  effective
    19  date  of  this  act  shall  successfully  complete  the  training course
    20  required by subdivision 5 of section 808 of such law as added by section
    21  eleven of this act within one year of the effective date of this act.
    22    § 16. This act shall take effect on the first of January next succeed-
    23  ing the date on which it shall have become  a  law;  provided,  however,
    24  that paragraph (d) of subdivision 1 of section 808 of the general munic-
    25  ipal  law,  as  added  by  section eleven of this act, shall take effect
    26  January 1, 2018.
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