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A10512 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          10512
 
                   IN ASSEMBLY
 
                                      May 30, 2012
                                       ___________
 
        Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Magnarelli,
          Gantt, Bronson, Ramos, Latimer, Gabryszak, Jaffee,  Schimel,  Russell,
          Brindisi,  Skartados) -- (at request of the State Comptroller) -- read
          once and referred to the Committee on Local Governments
 
        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; and to  repeal  paragraphs
          (d)  and  (e)  of  subdivision 3 of section 806 and section 813 of the
          general municipal law, relating to the temporary state  commission  on
          local government ethics
 
          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.
    17    §  2.  Section 801 of the general municipal law, as amended by chapter
    18  1043 of the laws of 1965, is amended to read as follows:
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15272-03-2

        A. 10512                            2
 
     1    § 801. Conflicts of interest prohibited. Except as provided in section
     2  eight hundred two of this chapter, (1) no municipal officer or  employee
     3  shall have an interest in any contract with the municipality of which he
     4  or  she  is an officer or employee, when such officer or employee, indi-

     5  vidually or as a member of a board, has the power or duty to (a) negoti-
     6  ate,  prepare, authorize or approve the contract or authorize or approve
     7  payment thereunder, (b) audit bills or claims under the contract, or (c)
     8  appoint an officer or employee who has any of the powers or  duties  set
     9  forth above [and]; (2) no chief fiscal officer, treasurer, or his or her
    10  deputy  or  employee,  shall have an interest in a bank or trust company
    11  designated as a depository, paying  agent,  registration  agent  or  for
    12  investment of funds of the municipality of which he or she is an officer
    13  or employee; and (3) no municipal officer or employee whose service to a
    14  municipality  includes  rendition  of  professional  services  requiring

    15  admission to the practice of law shall  (a)  have  an  interest  in  any
    16  contract for rendition of legal services to the municipality, unless (i)
    17  the contract is awarded on the basis of a competitive process undertaken
    18  in  accordance  with  the municipality's procurement policies and proce-
    19  dures adopted pursuant to section one hundred four-b  of  this  chapter,
    20  and  (ii)  the  municipality  has the advice of independent counsel with
    21  respect to the advisability of the provisions of the  contract,  or  (b)
    22  compensate any person or organization from his or her personal resources
    23  to  render  legal  services  to the municipality. The provisions of this
    24  section shall in no event be construed to preclude the payment of lawful

    25  compensation and necessary expenses of any municipal officer or employee
    26  in one or more positions of public employment, the holding of  which  is
    27  not prohibited by law.
    28    § 3. Paragraphs b and j of subdivision 1 of section 802 of the general
    29  municipal  law,  paragraph  b  as amended by chapter 1043 of the laws of
    30  1965 and paragraph j as added by chapter 364 of the laws  of  1996,  are
    31  amended to read as follows:
    32    b. A contract with a person, firm, corporation or association in which
    33  a  municipal  officer  or  employee  has an interest which is prohibited
    34  solely by reason of his or  her  employment,  or  his  or  her  spouse's
    35  employment,  as  an  officer or employee thereof, if the remuneration of
    36  such employment will not be  directly  affected  as  a  result  of  such

    37  contract  and  the duties of such employment do not directly involve the
    38  procurement, preparation or performance of any part of such contract;
    39    j. Purchases or public work by a municipality, other  than  a  county,
    40  located  wholly  or  partly  within  a  county  with a population of two
    41  hundred thousand or less pursuant to a contract in which a member of the
    42  governing body or board has a prohibited interest, where:
    43    (1) the member of the governing body or board is elected or  appointed
    44  and serves with or without salary or other compensation;
    45    (2)  the  purchases  or  public  work, in the aggregate, are less than
    46  [five] ten thousand dollars in one fiscal year and:
    47    (i) the governing body or board has followed its procurement  policies

    48  and  procedures adopted in accordance with the provisions of section one
    49  hundred four-b of this chapter and  the  procurement  process  indicates
    50  that the contract is with the lowest dollar offer[;], or
    51    (ii)  the  purchases,  in  the  aggregate,  are less than ten thousand
    52  dollars in one fiscal year, cannot be  procured  from  another  supplier
    53  located  within  the  municipality,  and  the  next  closest supplier is
    54  located more than five miles driving distance from the  municipality  by
    55  way  of  the  most direct route using public highways, roads or streets;
    56  and

        A. 10512                            3
 
     1    (3) the contract for the purchases  or  public  work  is  approved  by

     2  resolution  of  the body or board by the affirmative vote of each member
     3  of the body or board except the interested member who shall abstain.
     4    § 4. Paragraph a of subdivision 2 of section 802 of the general munic-
     5  ipal  law, as amended by chapter 1019 of the laws of 1970, is amended to
     6  read as follows:
     7    a. A contract with a corporation  in  which  a  municipal  officer  or
     8  employee  has an interest by reason of stockholdings when less than five
     9  per centum of the outstanding stock  of  the  corporation  is  owned  or
    10  controlled directly or indirectly by such officer or employee and his or
    11  her spouse either jointly or severally;
    12    §  5.  Section 805-a of the general municipal law, as added by chapter
    13  1019 of the laws of 1970 and subdivision 1 as amended by chapter 813  of
    14  the laws of 1987, is amended to read as follows:

    15    § 805-a. [Certain action prohibited] Additional statewide standards of
    16  ethical conduct.  1. No municipal officer or employee shall: a. directly
    17  or  indirectly, solicit any gift, or accept or receive any gift having a
    18  value of seventy-five dollars or more, whether in  the  form  of  money,
    19  service,  loan, travel, entertainment, hospitality, thing or promise, or
    20  in any other form, under circumstances in which it could  reasonably  be
    21  inferred  that  the gift was intended to influence him, or could reason-
    22  ably be expected to influence him, in the performance  of  his  official
    23  duties or was intended as a reward for any official action on his part;
    24    b.  disclose confidential information acquired by him in the course of
    25  his official duties or use such  information  to  further  his  personal
    26  interests;

    27    c.  receive,  or  enter  into  any  agreement, express or implied, for
    28  compensation for services to be  rendered  in  relation  to  any  matter
    29  before any municipal agency of which he is an officer, member or employ-
    30  ee or of any municipal agency over which he has jurisdiction or to which
    31  he has the power to appoint any member, officer or employee; or
    32    d.  receive,  or  enter  into  any  agreement, express or implied, for
    33  compensation for services to be  rendered  in  relation  to  any  matter
    34  before any agency of his municipality, whereby his compensation is to be
    35  dependent  or  contingent upon any action by such agency with respect to
    36  such matter, provided that this paragraph shall not prohibit the  fixing
    37  at  any  time  of  fees  based upon the reasonable value of the services
    38  rendered.
    39    2. a. Except as provided in paragraph b of this subdivision, no munic-

    40  ipal officer or employee shall participate in any official  decision  or
    41  take  any official action with respect to any matter requiring the exer-
    42  cise of discretion, including participating in official discussions  and
    43  voting on the matter, when he or she knows or has reason to believe that
    44  action  or  inaction  on  the  matter  could confer a direct or indirect
    45  financial or material benefit on himself or herself, a relative, or  any
    46  private  organization  in  which  the  municipal  officer or employee is
    47  deemed to have an interest.
    48    b. This subdivision shall not be construed as prohibiting:
    49    i. performance of a ministerial act, which for the  purposes  of  this
    50  section  shall  mean  an  administrative act carried out in a prescribed

    51  manner not allowing for substantial personal discretion;
    52    ii. participation in any official decision or official action taken by
    53  a board or similar body when  paragraph  a  of  this  subdivision  would
    54  prohibit one or more members of the board or body from participating and
    55  the remaining members of the board or body are insufficient in number or

        A. 10512                            4
 
     1  lack  sufficient  voting  strength  to  make  such decision or take such
     2  action; or
     3    iii.  participation  in any official decision or official action taken
     4  by a municipal officer or employee, individually, when the matter cannot
     5  be lawfully delegated or assigned to another person.

     6    c. Whenever paragraph a of  this  subdivision  prohibits  a  municipal
     7  officer or employee from participating in an official decision or taking
     8  official  action,  such  municipal  officer  or  employee shall disclose
     9  publicly the facts and circumstances  requiring  recusal.  Whenever  the
    10  prohibition in paragraph a of this subdivision does not apply because of
    11  the  applicability of subparagraph ii or subparagraph iii of paragraph b
    12  of this subdivision, the municipal officer or  employee  shall  disclose
    13  publicly  the facts and circumstances that would otherwise require recu-
    14  sal under paragraph a of this subdivision.
    15    d. For purposes of this subdivision, the term "relative" shall mean  a

    16  spouse,  parent,  step-parent,  sibling, step-sibling, sibling's spouse,
    17  child, step-child, uncle, aunt, nephew, niece, first cousin,  or  house-
    18  hold  member  of a municipal officer or employee, and individuals having
    19  any of these relationships to the spouse of the officer or employee.
    20    e. Compliance with this subdivision shall not constitute an  exception
    21  to section eight hundred one of this article, nor be construed as curing
    22  a violation of that section.
    23    3. a. Except as provided in paragraph b of this subdivision, no munic-
    24  ipal  officer or employee shall use or permit the use of municipal prop-
    25  erty or resources for personal or private purposes.
    26    b. This subdivision shall not be construed as prohibiting:

    27    i. any use of municipal property or resources  authorized  by  law  or
    28  municipal policy consistent with law;
    29    ii. the use of municipal property or resources for personal or private
    30  purposes when provided to a municipal officer or employee as part of his
    31  or her compensation; or
    32    iii.  the  occasional,  minimal,  non-business and non-partisan use of
    33  municipal office equipment and supplies, such as telephones,  computers,
    34  copiers,  paper  and pens, for personal matters at no or nominal cost to
    35  the municipality.
    36    c. For purposes of this subdivision,  "property  or  resources"  shall
    37  include,  but not be limited to, money, facilities, furnishings, machin-
    38  ery, apparatus, equipment, supplies and letterhead.

    39    4. In addition to any penalty contained in any other provision of law,
    40  any person who shall knowingly and intentionally  violate  this  section
    41  may  be  fined,  suspended  or  removed from office or employment in the
    42  manner provided by law.
    43    § 6. The section heading of section 806 of the general municipal  law,
    44  as  amended  by  chapter 1019 of the laws of 1970, is amended to read as
    45  follows:
    46    § 806. [Code] Municipal codes of ethics.
    47    § 7. Paragraph (a) of subdivision 1 of  section  806  of  the  general
    48  municipal law, as amended by chapter 238 of the laws of 2006, is amended
    49  to read as follows:
    50    (a)  The  governing  body  of each county, city, town, village, school
    51  district [and], fire district and improvement district governed by arti-

    52  cle thirteen of the town law shall, and the governing body of any  other
    53  municipality may, by local law, ordinance or resolution, adopt a code of
    54  ethics  setting forth for the guidance of its officers and employees the
    55  standards of conduct reasonably expected of  them.  Notwithstanding  any
    56  other provision of this article to the contrary, a fire district code of

        A. 10512                            5
 
     1  ethics  shall  also  apply to the volunteer members of the fire district
     2  fire department. Codes of ethics shall provide  standards  for  officers
     3  and  employees  with  respect  to  disclosure of interest in legislation
     4  before the local governing body, holding of investments in conflict with
     5  official  duties,  private  employment in conflict with official duties,

     6  future employment, nepotism, and such other standards  relating  to  the
     7  conduct of officers and employees as may be deemed advisable. Such codes
     8  may: (i) regulate or prescribe conduct which is not expressly prohibited
     9  by  this  article  but  may not authorize conduct otherwise prohibited[.
    10  Such codes may provide for the prohibition of]; (ii) prohibit  contracts
    11  or  conduct [or] that is either expressly or by implication permitted by
    12  section eight hundred two or section eight hundred five-a of this  arti-
    13  cle; and (iii) provide for the disclosure of information and the classi-
    14  fication  of  employees  or officers. The governing body of each munici-
    15  pality that adopts a code of ethics shall biennially  review  and,  when

    16  deemed necessary, update its code of ethics.
    17    §  8.  Subdivision  2  of section 806 of the general municipal law, as
    18  amended by chapter 238 of the laws  of  2006,  is  amended  to  read  as
    19  follows:
    20    2. [The] Upon the adoption or amendment of a code of ethics by a muni-
    21  cipality,  the chief executive officer of [a] the municipality [adopting
    22  a code of ethics] shall cause a copy [thereof] of such code or amendment
    23  to be distributed promptly to every officer and employee of his  or  her
    24  municipality  and to the board of ethics for the municipality.  In addi-
    25  tion, such chief executive officer shall cause a  complete  and  current

    26  copy  of  the  municipality's code of ethics to be posted on the munici-
    27  pality's web site,  if  the  municipality  maintains  a  web  site,  and
    28  distributed  (a) to every person who is elected or appointed to serve as
    29  an officer or employee  of  the  municipality  promptly  following  such
    30  person's  election  or  appointment,  and  (b)  to  all the officers and
    31  employees of the municipality at least  once  every  five  years.  Every
    32  municipal  officer  and employee receiving a copy of a code of ethics or
    33  amendment thereto shall acknowledge promptly in writing that he  or  she
    34  has  received and read the code of ethics or amendment and such acknowl-
    35  edgement shall be filed with the clerk or secretary of the municipality.

    36  The board of fire [district] commissioners of a fire district shall also
    37  cause a copy of the fire district's code of ethics, including any amend-
    38  ments thereto, to be posted publicly and conspicuously in each  building
    39  under  such  district's control.  Failure to distribute any such copy or
    40  failure of any officer or employee to receive such copy  shall  have  no
    41  effect  on the duty of compliance with such code, nor the enforcement of
    42  provisions thereof.
    43    § 9. The opening paragraph and paragraphs (a) and (b) of subdivision 3
    44  of section 806 of the general municipal law, as amended by  chapter  813
    45  of the laws of 1987, are amended to read as follows:
    46    [Until  January  first, nineteen hundred ninety-one, the] The clerk of

    47  each municipality [shall file in the office of the state comptroller and
    48  on or after January first, nineteen hundred  ninety-one,  the  clerk  of
    49  each  municipality  and  of  each  political  subdivision, as defined in
    50  section eight hundred ten of this article, shall file with the temporary
    51  state commission on local government ethics established by section eight
    52  hundred thirteen of this article, if such temporary state commission  be
    53  in  existence,  and in all events] and of each political subdivision, as
    54  defined in section eight hundred ten of this article, shall maintain  as
    55  a record subject to public inspection:

        A. 10512                            6
 

     1    (a) a copy of [any] the municipality's or political subdivision's code
     2  of ethics or any amendments to any code of ethics [adopted within thirty
     3  days after the adoption of such code or such amendment],
     4    (b)  a  statement  that such municipality or political subdivision has
     5  established a board of ethics, in accordance with section eight  hundred
     6  eight of this article and/or pursuant to other law, charter, code, local
     7  law, ordinance or resolution, and the composition of such board, [within
     8  thirty days after the establishment of such board.], and
     9    §  10.  Paragraphs  (d) and (e) of subdivision 3 of section 806 of the
    10  general municipal law are REPEALED.
    11    § 11. Section 808 of the general municipal law, as amended by  chapter

    12  1019  of  the  laws of 1970 and subdivision 5 as added by chapter 813 of
    13  the laws of 1987, is amended to read as follows:
    14    § 808. Boards of ethics. 1. [The governing  body  of  any  county  may
    15  establish  a  county  board of ethics and appropriate moneys for mainte-
    16  nance and personal services in connection therewith. The members of such
    17  board of ethics shall be appointed by such governing body except in  the
    18  case  of  a  county  operating  under an optional or alternative form of
    19  county government or county charter, in which case the members shall  be
    20  appointed by the county executive or county manager, as the case may be,
    21  subject  to  confirmation  by  such governing body. Such board of ethics
    22  shall consist of at least three members, a majority of whom shall not be

    23  officers or  employees  of  such  county  or  municipalities  wholly  or
    24  partially  located  in  such county and at least one of whom shall be an
    25  elected or appointed officer or employee of the county or a municipality
    26  located within such county. The members of such board shall  receive  no
    27  salary  or  compensation for their services as members of such board and
    28  shall serve at the pleasure of the appointing authority] (a) The govern-
    29  ing body of (i) every county, (ii) every city, town and village having a
    30  population of fifty thousand or more, and (iii) every board  of  cooper-
    31  ative  educational  services  (BOCES) shall establish a board of ethics.
    32  Thereafter, the governing body shall appropriate annually such moneys as

    33  may be necessary  for  the  board's  contractual  and  personal  service
    34  expenditures.  Except  as provided in paragraph (d) of this subdivision,
    35  such board shall have jurisdiction to act only in relation to the  offi-
    36  cers  and  employees  of  the  county, city, town, village or BOCES that
    37  established the board.
    38    (b) The governing body of every municipality not  described  in  para-
    39  graph (a) of this subdivision is authorized, but not required, to estab-
    40  lish  a  board  of ethics. If such governing body establishes a board of
    41  ethics, the governing body shall appropriate annually such moneys as may
    42  be necessary for the board's contractual and personal  service  expendi-
    43  tures.    Such  board shall have jurisdiction to act only in relation to

    44  the officers and employees of  the  municipality  that  established  the
    45  board.
    46    (c)  Two or more municipalities not described in paragraph (a) of this
    47  subdivision may enter into, amend, cancel, and terminate agreements  for
    48  the  establishment  of  a  cooperative  board of ethics. Such agreements
    49  shall be consistent with the requirements  of  article  five-G  of  this
    50  chapter,  except  as  otherwise provided in this section, including that
    51  (i) the power to enter into such agreements shall extend to all  munici-
    52  palities as defined in this article, and shall not be limited to munici-
    53  pal  corporations  and  districts  as  defined in article five-G of this
    54  chapter, and (ii) the duration of such agreements shall not  be  limited

    55  to  a maximum term of five years. Following the establishment of a coop-
    56  erative board of ethics, the governing bodies of the municipalities that

        A. 10512                            7
 
     1  are parties to the agreement establishing the  board  shall  appropriate
     2  annually such moneys as may be necessary for the board's contractual and
     3  personal  service  expenditures, in such amounts or proportion as may be
     4  provided  in  the  agreement. A cooperative board of ethics shall be the
     5  board of ethics of each municipality that is a party  to  the  agreement
     6  establishing  the  board,  and  shall  have  jurisdiction to act only in
     7  relation to the officers or employees of such municipalities.

     8    (d) In the event that a municipality described  in  paragraph  (b)  of
     9  this subdivision does not establish a board of ethics and is not a party
    10  to an agreement establishing a cooperative board of ethics:
    11    (i)  in  the  case of a municipality other than a school district, the
    12  board of ethics of the county in which the municipality is located shall
    13  serve as the board of ethics of such municipality and have  jurisdiction
    14  to  act  in relation to the officers and employees of that municipality,
    15  provided that if such a municipality is located in more than one county,
    16  the governing board of the municipality by  resolution  shall  designate
    17  the  board  of  ethics  of  one of the counties to serve as the board of
    18  ethics of the municipality;

    19    (ii) in the case of a school district,  other  than  the  city  school
    20  district  of a city having a population of one hundred twenty-five thou-
    21  sand or more, the board of ethics established by the BOCES of the super-
    22  visory district in which the school district is located shall  serve  as
    23  the board of ethics of such school district and have jurisdiction to act
    24  in relation to the officers and employees of such school district; and
    25    (iii)  in  the case of a city school district of a city having a popu-
    26  lation of one hundred twenty-five thousand or more, the board of  ethics
    27  established  by  the  city in which the school district is located shall
    28  serve as the board of ethics of such school district and have  jurisdic-

    29  tion  to  act  in  relation to the officers and employees of such school
    30  district.
    31    (e) In the case of a municipality that has not established a board  of
    32  ethics  and  is  not  a party to an agreement establishing a cooperative
    33  board of ethics:
    34    (i) The chief executive officer of the municipality, annually,  within
    35  thirty days following the start of the municipality's fiscal year, shall
    36  notify  the  appropriate county, BOCES or city board of ethics that such
    37  board shall serve as the board of  ethics  for  the  municipality.  Such
    38  notice  shall  be  accompanied  by  a  complete  and current copy of the
    39  municipality's code of ethics. If officers and employees of the  munici-

    40  pality  are  subject to annual financial disclosure requirements imposed
    41  in accordance with this article, such notice shall also  be  accompanied
    42  by  a  complete  and  current copy of all local laws, ordinances, resol-
    43  utions and regulations adopted by the municipality relating to the impo-
    44  sition, administration and enforcement of the filing requirement. At the
    45  time such notice is given, the chief executive officer shall also  cause
    46  a copy of the notice to be posted on the municipality's web site, if the
    47  municipality maintains a web site, and in each public building under the
    48  jurisdiction  of the municipality in a place conspicuous to its officers
    49  and employees.
    50    (ii) The governing body of the municipality, annually,  within  thirty

    51  days  following  the  start  of  the  municipality's  fiscal year, shall
    52  appoint a municipal representative to the appropriate county,  BOCES  or
    53  city  board  of ethics. The person appointed as municipal representative
    54  shall be a resident of the municipality, and shall be knowledgeable with
    55  respect to the municipality's code  of  ethics  and  the  municipality's
    56  annual  financial  disclosure requirements, if any. The municipal repre-

        A. 10512                            8
 
     1  sentative shall receive notice of, and be entitled to participate, as  a
     2  non-voting member, in all meetings, proceedings, deliberations and other
     3  activities  of  the  board that pertain to an officer or employee of the

     4  municipality.    A  municipal  representative shall receive no salary or
     5  compensation for his or her services, but  within  amounts  appropriated
     6  shall  be  reimbursed  for actual and necessary expenses incurred in the
     7  performance of his or her official duties.
     8    (f) In the event that a board of ethics established by a county, BOCES
     9  or city serves as the board of ethics for another municipality, and such
    10  municipality shall either establish a board of ethics or become a  party
    11  to  an  agreement  establishing a cooperative board of ethics, the chief
    12  executive officer of the municipality shall notify the county, BOCES  or
    13  city  board of ethics of the date as of which such board shall no longer

    14  serve as the board of ethics of  the  municipality.  Such  notice  shall
    15  either  state  that  the  municipality  has established its own board of
    16  ethics or identify such cooperative board of ethics. At  the  time  such
    17  notice  is given, the chief executive officer shall also cause a copy of
    18  the notice to be posted on the municipality's web site, if  the  munici-
    19  pality  maintains  a  web  site,  and  in each public building under the
    20  jurisdiction of the municipality in a place conspicuous to its  officers
    21  and  employees.  Promptly  after  the date specified in such notice, the
    22  county, BOCES or city board of ethics shall transfer to the municipal or
    23  cooperative board of ethics all pending matters and records relating  to

    24  the  officers and employees of the municipality; provided, however, that
    25  such county, BOCES, or city board of ethics shall have the discretion to
    26  retain any pending matter and records relating thereto until  such  time
    27  as the matter is resolved.
    28    (g)  Every  board of ethics shall consist of at least three members, a
    29  majority of whom shall not  be  municipal  officers  or  employees.  The
    30  members of every board of ethics shall serve for a fixed term of office,
    31  not  to  exceed  five  years. The length of such term of office shall be
    32  determined by the municipal governing body that establishes the board of
    33  ethics or specified in the agreement establishing a cooperative board of
    34  ethics, provided that such governing body or agreement may  provide  for

    35  the  initial  appointments  to the board to be made for staggered terms.
    36  Appointments to the board shall be made as follows:
    37    (i) The members of a county board of ethics shall be appointed by  the
    38  governing  body  of  the county except in the case of a county operating
    39  under an optional or alternative form of  county  government  or  county
    40  charter,  in  which  case  the  members shall be appointed by the county
    41  executive, county manager or county administrator, as the case  may  be,
    42  subject to confirmation by such governing body.
    43    (ii)  The  members  of a board of ethics established by a municipality
    44  other than a county shall be appointed by  the  governing  body  of  the
    45  municipality  or  by  such  person  or  body as may be designated by the

    46  governing body of the municipality.
    47    (iii) The members of a cooperative board of ethics shall be  appointed
    48  in the manner provided in the agreement establishing the board.
    49    (h)  The  members  of every board of ethics shall receive no salary or
    50  compensation for their services as members of  such  board,  but  within
    51  amounts  appropriated  shall  be  reimbursed  for  actual  and necessary
    52  expenses incurred in the performance of their official duties, provided,
    53  that the provisions of section seventy-seven-b  of  this  chapter  shall
    54  apply to the members of a board of ethics.
    55    2.  [The]  Every board of ethics shall render advisory opinions to the

    56  officers and employees [of municipalities wholly or  partly  within  the

        A. 10512                            9

     1  county]  under the board's jurisdiction with respect to this article and
     2  any code of ethics adopted pursuant hereto. Such advisory opinions shall
     3  be rendered pursuant to the written  request  of  any  such  officer  or
     4  employee  under  such  rules  and regulations as the board may prescribe
     5  [and shall have the advice of counsel employed by the board, or if none,
     6  the county attorney]. In addition, [it] the board may  make  recommenda-
     7  tions  with  respect to the drafting and adoption of a code of ethics or
     8  amendments thereto upon the request of the governing body of any munici-

     9  pality [in the county] for which the board serves as the  municipality's
    10  board of ethics, and perform such other functions relating to the admin-
    11  istration  of this article as may be authorized by the governing body or
    12  agreement establishing the board including, but not limited to,  provid-
    13  ing  ethics  training  to  the  officers and employees under the board's
    14  jurisdiction.
    15    2-a. (a) Notwithstanding any general, special or local law,  ordinance
    16  or  resolution  to  the  contrary,  every board of ethics shall have the
    17  power to investigate potential violations of this article and a code  of
    18  ethics adopted pursuant to this article involving the municipal officers
    19  and  employees  under  the board's jurisdiction; provided, however, that

    20  this subdivision shall not apply to a judge or justice  of  the  unified
    21  court  system.  The board may initiate such an investigation either upon
    22  its own motion or upon receipt of a  sworn  complaint  alleging  such  a
    23  violation.
    24    (b)  At  any  time  after receiving a sworn complaint or initiating an
    25  investigation, the board may make a final determination that  there  has
    26  been no violation of this article or a code of ethics. In such case, the
    27  board  shall  provide  written notification of such determination to the
    28  municipal officer or employee who was the subject of  the  investigation
    29  and the complainant, if any.
    30    (c) After initiating an investigation, but before making a preliminary

    31  determination  that there has been a violation of this article or a code
    32  of ethics, the board shall provide to the municipal officer or  employee
    33  who  is  the  subject of the investigation written notice describing the
    34  potential violation, and provide the person with at least a fifteen  day
    35  period  to  submit a written response setting forth information relating
    36  to the activities cited as the potential violation.
    37    (d) After the expiration of the period of time  for  submission  of  a
    38  written  response  pursuant  to  paragraph  (c) of this subdivision, the
    39  board may make  a  preliminary  determination  that  there  has  been  a
    40  violation    of this article or a violation of a code of ethics. In such

    41  case, the board shall provide written notification  of  the  preliminary
    42  determination to the municipal officer or employee who is the subject of
    43  the investigation and provide that person with an additional opportunity
    44  to  be  heard. Thereafter, if the board makes a final determination that
    45  there has been a violation, the board shall provide written notification
    46  of such final determination to the municipal officer or employee who was
    47  the subject of the investigation,  the  complainant,  if  any,  and  the
    48  appointing  authority  for  such  person  or, if the person serves in an
    49  elective office, the governing body of the municipality for  which  such
    50  person serves.
    51    (e) In cases where the board finds that a municipal officer or employ-

    52  ee  has  willfully  and  knowingly  violated  this  article or a code of
    53  ethics, the board may: (i) issue a reprimand; (ii) assess a civil penal-
    54  ty on behalf of the municipality in an amount not to exceed one thousand
    55  dollars for  each  such  specific  violation;  (iii)  recommend  to  the
    56  appointing authority for such person, if any, suspension with or without

        A. 10512                           10
 
     1  pay,  demotion,  termination  or  such  other disciplinary action as the
     2  board deems appropriate; and (iv) in the case of a violation potentially
     3  encompassed within section eight hundred five of this article, refer the
     4  matter  to the appropriate law enforcement agency. Assessment of a civil

     5  penalty shall be final unless  modified,  suspended  or  vacated  within
     6  thirty  days  of imposition, and upon becoming final shall be subject to
     7  review at the instance of such person in a proceeding against the  board
     8  brought  pursuant to article seventy-eight of the civil practice law and
     9  rules.
    10    (f) Every board of ethics shall adopt rules to ensure  procedural  due
    11  process in the conduct of adjudicatory proceedings held pursuant to this
    12  subdivision.  The  board shall cause a copy of such rules to be provided
    13  to any person who is the subject of an adjudicatory proceeding, and such
    14  rules shall be available to the public for inspection and copying.
    15    2-b. Notwithstanding any provision in article  six  or  seven  of  the

    16  public officers law to the contrary:
    17    (a)  all  documents  and  records  of a board of ethics relating to an
    18  investigation or an adjudicatory proceeding conducted pursuant to subdi-
    19  vision two-a of this section shall be  confidential  and  shall  not  be
    20  available  to  the public, except that final determinations of the board
    21  with respect to whether there has been a violation of this article or  a
    22  code of ethics shall be available for public inspection and copying;
    23    (b) advisory opinions rendered by a board of ethics shall be available
    24  for public inspection and copying, provided that information identifying
    25  the  municipal  officer  or  employee  requesting  the  opinion shall be
    26  redacted from the copy made available to the public; and

    27    (c) no meeting of a board of ethics or portion thereof relating to the
    28  conduct of an individual municipal officer or employee and no  adjudica-
    29  tory  proceeding conducted pursuant to subdivision two-a of this section
    30  shall be open to the public, unless the affected  municipal  officer  or
    31  employee  requests  and  the board agrees to permit public attendance at
    32  the meeting or proceeding.
    33    3. [The governing body of any municipality other  than  a  county  may
    34  establish  a  local board of ethics and, where such governing body is so
    35  authorized, appropriate moneys for maintenance and personal services  in
    36  connection therewith. A local board shall have all the powers and duties
    37  of  and  shall  be  governed by the same conditions as a county board of

    38  ethics, except that it shall act  only  with  respect  to  officers  and
    39  employees  of the municipality that has established such board or of its
    40  agencies. The members of a local board shall be appointed by such person
    41  or body as may be designated by the governing body of  the  municipality
    42  to  serve  at  the  pleasure  of the appointing authority and such board
    43  shall consist of at least three members, a  majority  of  whom  are  not
    44  otherwise  officers  or employees of such municipality. Such board shall
    45  include at least one member who is an  elected  or  appointed  municipal
    46  officer or employee.
    47    4.  The county board of ethics shall not act with respect to the offi-
    48  cers and employees of any municipality located  within  such  county  or

    49  agency thereof, where such municipality has established its own board of
    50  ethics,  except  that the local board may at its option refer matters to
    51  the county board.
    52    5.] A board of ethics shall have the advice of counsel employed by the
    53  board or, if none, the attorney for the  municipality  that  established
    54  the board or, in the case of a cooperative board of ethics, such munici-
    55  pal  attorney  as  may  be  designated in the agreement establishing the
    56  cooperative board of ethics.

        A. 10512                           11
 
     1    4. The board of ethics of  a  political  subdivision  (as  defined  in
     2  section  eight  hundred  ten of this article) and the board of ethics of

     3  any other municipality[,] which [is required by local law, ordinance  or
     4  resolution  to be, or which pursuant to legal authority, in practice is,
     5  the  repository  for completed annual statements of financial disclosure
     6  shall notify the temporary state commission on local  government  ethics
     7  if  such  commission  be in existence and if not, shall file a statement
     8  with the clerk of its municipality, that it is the authorized repository
     9  for completed annual statements of  financial  disclosure  and  that  on
    10  account thereof, such completed statements will be filed with it and not
    11  with  the  commission.  Should any local law, ordinance or resolution be
    12  adopted which provides for the filing of such  completed  annual  state-

    13  ments  with  the  temporary  state commission on local government ethics
    14  instead of with such board of ethics, such board of ethics shall  notify
    15  the  temporary state commission on local government ethics of that fact]
    16  requires filing of annual statements of financial disclosure pursuant to
    17  this article, shall receive,  review  for  completeness,  and  serve  as
    18  repository  for  such annual statements and enforce such filing require-
    19  ment.
    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  added by chapter 813 of the laws of 1987, is amended to read as follows:
    41    9. The term "appropriate body" or "appropriate bodies" shall mean[:
    42    (a)  in  the  case  of  any political subdivision which has created or
    43  hereafter creates a board of ethics which is in existence at the time an
    44  annual statement of financial disclosure is  due,  and  which  has  been

    45  designated  by  local  law, ordinance or resolution to be the repository
    46  for such completed statements, such board of ethics;
    47    (b) in the case of any political  subdivision  which  has  created  or
    48  hereafter creates a board of ethics which is in existence at the time an
    49  annual  statement of financial disclosure is due, and which has not been
    50  designated by local law, ordinance or resolution to  be  the  repository
    51  for  such  completed statements, the temporary state commission on local
    52  government ethics;
    53    (c) in the case of any political subdivision for  which  no  board  of
    54  ethics  is  in  existence  at  the time an annual statement of financial
    55  disclosure is due, the temporary state commission  on  local  government

        A. 10512                           12

     1  ethics]   the   board   of   ethics  of  any  political  subdivision  or
     2  municipality.
     3    §  13.  Paragraphs  (c) and (d) of subdivision 1 of section 811 of the
     4  general municipal law, as added by chapter 813 of the laws of 1987,  are
     5  amended to read as follows:
     6    (c) The governing body of a political subdivision or any other county,
     7  city,  town  or village which requires any local or municipal officer or
     8  employee or any local elected official  or  any  local  political  party
     9  official to complete and file either of such annual statements of finan-
    10  cial  disclosure shall have, possess, exercise and enjoy all the rights,
    11  powers and privileges attendant thereto which are necessary  and  proper

    12  to  the  enforcement  of such requirement, including but not limited to,
    13  the promulgation of rules and regulations pursuant to local  law,  ordi-
    14  nance  or  resolution,  which  rules  or regulations may provide for the
    15  public availability of items of information to be contained on such form
    16  of statement of financial disclosure, the determination of penalties for
    17  violation of such rules or regulations, and such other powers  as  [are]
    18  were  conferred  upon the temporary state commission on local government
    19  ethics pursuant to the former section eight  hundred  thirteen  of  this
    20  article, as added by chapter eight hundred thirteen of the laws of nine-
    21  teen  hundred  eighty-seven, as such local governing body determines are
    22  warranted under the circumstances existing in its county, city, town  or
    23  village.

    24    (d) The local law, ordinance or resolution, if and when adopted, shall
    25  provide  for the annual filing of completed statements with [either] the
    26  [temporary state commission on local government ethics or with the board
    27  of ethics of the political subdivision or other municipality]  appropri-
    28  ate body, and shall contain the procedure for filing such statements and
    29  the date by which such filing shall be required. [If the board of ethics
    30  is  designated as the appropriate body, then such] Such local law, ordi-
    31  nance or resolution shall  confer  upon  the  [board]  appropriate  body
    32  authority to enforce such filing requirement, including the authority to
    33  promulgate  rules  and regulations of the same import as those which the

    34  former temporary state commission on  local  government  ethics  [enjoys
    35  under section eight hundred thirteen of this article] could have adopted
    36  under former section eight hundred thirteen of this article, as added by
    37  chapter  eight  hundred thirteen of the laws of nineteen hundred eighty-
    38  seven.   Any such local law, ordinance  or  resolution  shall  authorize
    39  exceptions  with respect to complying with timely filing of such disclo-
    40  sure statements due to justifiable cause or undue hardship.  The  appro-
    41  priate  body  shall  prescribe  rules  and  regulations  related to such
    42  exceptions with respect to extensions and  additional  periods  of  time
    43  within  which  to file such statement including the imposition of a time
    44  limitation upon such extensions.

    45    § 14. Paragraph (a) of subdivision 1 of section  812  of  the  general
    46  municipal law, as added by chapter 813 of the laws of 1987 and the open-
    47  ing  paragraph  as amended by chapter 85 of the laws of 2004, is amended
    48  to read as follows:
    49    (a) Any political subdivision or other county, city, town  or  village
    50  to  which  all  of  the  provisions of this section are made applicable,
    51  whether as the result of the provisions contained in subdivision two  of
    52  section  eight  hundred  eleven  of  this  article  or as a result of an
    53  election to be subject to the provisions of this section as permitted by
    54  subdivision two of this section, shall require (i)  each  of  its  local
    55  elected  officials  and  local  officers  and employees, (ii) each local
    56  political party official and (iii)  each  candidate  for  local  elected


        A. 10512                           13
 
     1  official  with  respect to such political subdivision, to file an annual
     2  statement of financial disclosure containing the information and in  the
     3  form  set  forth in subdivision five of this section except that disclo-
     4  sure  requirements  for  assessors  who  are not covered by this article
     5  shall be governed by the requirements of section three  hundred  thirty-
     6  six  of  the  real property tax law. Such statement shall be filed on or
     7  before the fifteenth day of May with respect to the  preceding  calendar
     8  year, except that:
     9    (i)  a  person  who  is  subject to the reporting requirements of this
    10  subdivision and who timely filed with the internal  revenue  service  an
    11  application  for automatic extension of time in which to file his or her
    12  individual income tax return for the immediately preceding  calendar  or

    13  fiscal  year  shall be required to file such financial disclosure state-
    14  ment on or before May fifteenth but may, without being subjected to  any
    15  civil penalty on account of a deficient statement, indicate with respect
    16  to  any  item  of the disclosure statement that information with respect
    17  thereto is lacking but will be supplied in a supplementary statement  of
    18  financial  disclosure, which shall be filed on or before the seventh day
    19  after the expiration of the period of such automatic extension  of  time
    20  within  which  to  file such individual income tax return, provided that
    21  failure to file or to timely file such supplementary statement of finan-
    22  cial disclosure or the filing of an incomplete or deficient supplementa-
    23  ry statement of financial disclosure shall be subject to the notice  and
    24  penalty  provisions  of  this  section  respecting  annual statements of

    25  financial disclosure as if such supplementary statement were  an  annual
    26  statement;
    27    (ii)  [a person who is required to file an annual financial disclosure
    28  statement with  the  temporary  state  commission  on  local  government
    29  ethics,  and who is granted an additional period of time within which to
    30  file such statement due to  justifiable  cause  or  undue  hardship,  in
    31  accordance  with  required  rules and regulations on the subject adopted
    32  pursuant to paragraph c of subdivision nine  of  section  eight  hundred
    33  thirteen  of  this  article,  shall file such statement within the addi-
    34  tional period of time granted;
    35    (iii)] candidates for local  elected  official  who  file  designating
    36  petitions for nomination at a primary election shall file such statement

    37  within  seven  days  after the last day allowed by law for the filing of
    38  designating petitions naming them as candidates for the next  succeeding
    39  primary election;
    40    [(iv)]  (iii)  candidates for independent nomination for local elected
    41  official who have not been designated by a party to receive a nomination
    42  shall file such statement within seven days after the last  day  allowed
    43  by law for the filing of independent nominating petitions naming them as
    44  candidates  for local elected official in the next succeeding general or
    45  special or village election; and
    46    [(v)] (iv) candidates for local elected official who receive the nomi-
    47  nation of a party for a special election or who receive  the  nomination
    48  of  a  party  other  than  at  a primary election (whether or not for an

    49  uncontested office) shall file such statement within  seven  days  after
    50  the  date  of the meeting of the party committee at which they are nomi-
    51  nated.
    52    § 15. Paragraph (a) of subdivision 3 of section  812  of  the  general
    53  municipal  law,  as added by chapter 813 of the laws of 1987, is amended
    54  to read as follows:
    55    (a) Such local law, ordinance  or  resolution  must  provide  for  the
    56  promulgation  of  a  form of an annual statement of financial disclosure

        A. 10512                           14
 
     1  described in subdivision one of section eight  hundred  eleven  of  this
     2  article  for use with respect to information the governing body requires
     3  to be reported for the calendar year next succeeding the year  in  which
     4  such  local  law,  ordinance  or  resolution is adopted and for use with

     5  respect to information required to be reported for  subsequent  calendar
     6  years;  and  shall  provide  for the filing of completed statements with
     7  [either] the [temporary state commission on local government  ethics  or
     8  with  the  board of ethics of the political subdivision or other munici-
     9  pality, as specified in subdivision one of section eight hundred  eleven
    10  of this article] appropriate body.
    11    § 16. Section 813 of the general municipal law is REPEALED.
    12    §  17.  Section  13  of  chapter  946 of the laws of 1964 amending the
    13  general municipal law and other laws relating to conflicts  of  interest
    14  of municipal officers and employees, is amended to read as follows:
    15    §  13. Laws superseded. The provisions of article [eighteen] 18 of the

    16  general municipal law, as added by this act, shall supersede  any  local
    17  law,  charter,  ordinance, resolution, rule or regulation of any munici-
    18  pality to the extent that such local  law,  charter,  ordinance,  resol-
    19  ution,  rule  or regulation is inconsistent with the provisions thereof.
    20  No local law, ordinance, resolution, rule or regulation shall modify  or
    21  dispense  with  any  provision  of  article [eighteen] 18 of the general
    22  municipal law, as added by this act;  provided,  however,  that  nothing
    23  [herein]  contained  in  this  section  shall  prohibit a code of ethics
    24  adopted pursuant thereto from supplementing the provisions of  this  act
    25  or  from  being  more stringent than article 18 of the general municipal
    26  law.
    27    § 18. Notwithstanding any general, special or local law to the contra-

    28  ry, the governing body of any municipality which has prior to the effec-
    29  tive date of this act: (a) established a board  of  ethics  pursuant  to
    30  section 808 of the general municipal law; and (b) not established a term
    31  of  office  for  the  members  of  such board, such governing body shall
    32  establish terms of office for the members  of  such  board  pursuant  to
    33  paragraph g of subdivision 1 of section 808 of the general municipal law
    34  as  added  by this act to begin on a date no later than the first day of
    35  the municipality's fiscal year commencing in 2013 and on such  date  the
    36  positions  on such board of ethics shall be deemed vacant, provided that
    37  nothing in this section shall be construed to prohibit the reappointment
    38  of an incumbent board member for such term of office.
    39    § 19. Notwithstanding any general, special or local law to the contra-

    40  ry, any person serving as a member of  a  board  of  ethics  established
    41  pursuant  to  section  808 of the general municipal law on the effective
    42  date of  this  act  shall  successfully  complete  the  training  course
    43  required  by  subdivision  5 of section 808 of such law as added by this
    44  act within one year of the effective date of this act.
    45    § 20. This act shall take effect on the first of January next succeed-
    46  ing the date on which it shall have become  a  law;  provided,  however,
    47  that  the amendments to paragraph (d) of subdivision 1 of section 808 of
    48  the general municipal law made by section eleven of this act shall  take
    49  effect January 1, 2014.
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