S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7317
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 24, 2017
                                ___________
 
 Introduced  by  M.  of  A.  MAGNARELLI -- (at request of the State Comp-
   troller) -- read once and referred to the Committee on  Local  Govern-
   ments
 
 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; and to amend chapter 946 of the laws of 1964, amend-
   ing  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:
 
   Section  1. Subdivision 3 of section 800 of the general municipal law,
 as amended by chapter 1043 of the laws of 1965, is amended  to  read  as
 follows:
   3. "Interest" means a direct or indirect pecuniary or material benefit
 accruing  to  a  municipal officer or employee, OR HIS OR HER SPOUSE, as
 the result of a contract with the municipality  which  such  officer  or
 employee serves. For the purposes of this article a municipal officer or
 employee  shall be deemed to have an interest in the contract of (a) his
 OR HER spouse, minor children  and  dependents,  except  a  contract  of
 employment  with the municipality which such officer or employee serves,
 (b) a  firm,  partnership  or  association  of  which  such  officer  or
 employee,  OR  HIS  OR HER SPOUSE, is a member or employee, (c) a corpo-
 ration of which such officer or employee, OR HIS OR HER  SPOUSE,  is  an
 officer,  director  or employee and (d) a corporation any stock of which
 is owned or controlled directly or indirectly by such officer or employ-
 ee, OR HIS OR HER SPOUSE.
   § 2. Section 801 of the general municipal law, as amended  by  chapter
 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.
                                                            LBD10748-03-7
              

 A. 7317                             2
 
   § 801. Conflicts of interest prohibited. Except as provided in section
 eight hundred two of this [chapter] ARTICLE, (1) no municipal officer or
 employee shall have an interest in any contract with the municipality of
 which  he OR SHE is an officer or employee, when such officer or employ-
 ee, individually or as a member of a board, has the power or duty to (a)
 negotiate,  prepare,  authorize  or approve the contract or authorize or
 approve  payment  thereunder,  (b)  audit  bills  or  claims  under  the
 contract,  or  (c)  appoint  an  officer  or employee who has any of the
 powers or duties set forth above and (2) no chief fiscal officer, treas-
 urer, or his OR HER deputy or employee, shall have an interest in a bank
 or trust company designated as a depository, paying agent,  registration
 agent  or for investment of funds of the municipality of which he OR SHE
 is an officer or employee. The provisions of this section  shall  in  no
 event  be  construed  to preclude the payment of lawful compensation and
 necessary expenses of any municipal officer or employee in one  or  more
 positions  of  public employment, the holding of which is not prohibited
 by law.
   § 3. Paragraphs b and j of subdivision 1 of section 802 of the general
 municipal law, paragraph b as amended by chapter 1043  of  the  laws  of
 1965  and  paragraph  j as added by chapter 364 of the laws of 1996, are
 amended to read as follows:
   b. A contract with a person, firm, corporation or association in which
 a municipal officer or employee has  an  interest  which  is  prohibited
 solely  by  reason  of  HIS  OR  HER  employment, OR HIS OR HER SPOUSE'S
 EMPLOYMENT, as an officer or employee thereof, if  the  remuneration  of
 such  employment  will  not  be  directly  affected  as a result of such
 contract and the duties of such employment do not directly  involve  the
 procurement, preparation or performance of any part of such contract;
   j.  Purchases  or  public work by a municipality, other than a county,
 located wholly or partly within  a  county  with  a  population  of  two
 hundred thousand or less pursuant to a contract in which a member of the
 governing body or board has a prohibited interest, where:
   (1)  the member of the governing body or board is elected OR APPOINTED
 and serves WITH OR without salary OR OTHER COMPENSATION;
   (2) the purchases OR PUBLIC WORK, in  the  aggregate,  are  less  than
 [five] FIFTEEN thousand dollars in one fiscal year and:
   (I)  the governing body or board has followed its procurement policies
 and procedures adopted in accordance with the provisions of section  one
 hundred  four-b  of  this  chapter and the procurement process indicates
 that the contract is with the lowest dollar offer[;], OR
   (II) THE PURCHASES, IN THE AGGREGATE, ARE LESS THAN  FIFTEEN  THOUSAND
 DOLLARS  IN  ONE  FISCAL  YEAR, CANNOT BE PROCURED FROM ANOTHER SUPPLIER
 LOCATED WITHIN THE  MUNICIPALITY,  AND  THE  NEXT  CLOSEST  SUPPLIER  IS
 LOCATED  MORE THAN TWENTY-FIVE MILES DRIVING DISTANCE FROM THE BORDER OF
 THE MUNICIPALITY BY WAY OF THE MOST DIRECT ROUTE USING PUBLIC  HIGHWAYS,
 ROADS OR STREETS; AND
   (3)  the  contract  for  the  purchases  or public work is approved by
 resolution of the body or board by the affirmative vote of  each  member
 of the body or board except the interested member who shall abstain.
   § 4. Paragraph a of subdivision 2 of section 802 of the general munic-
 ipal  law, as amended by chapter 1019 of the laws of 1970, is amended to
 read as follows:
   a. A contract with a corporation  in  which  a  municipal  officer  or
 employee  has an interest by reason of stockholdings when less than five
 per centum of the outstanding stock  of  the  corporation  is  owned  or

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 controlled  directly or indirectly by such officer or employee OR HIS OR
 HER SPOUSE EITHER JOINTLY OR SEVERALLY;
   §  5.  Section 805-a of the general municipal law, as added by chapter
 1019 of the laws of 1970 and subdivision 1 as amended by chapter 813  of
 the laws of 1987, is amended to read as follows:
   § 805-a. [Certain action prohibited] ADDITIONAL STATEWIDE STANDARDS OF
 ETHICAL  CONDUCT. 1. No municipal officer or employee shall: a. directly
 or indirectly, solicit any gift, or accept or receive any gift having  a
 value  of  seventy-five  dollars  or more, whether in the form of money,
 service, loan, travel, entertainment, hospitality, thing or promise,  or
 in  any  other form, under circumstances in which it could reasonably be
 inferred that the gift was intended to influence [him], or could reason-
 ably be expected to influence [him, in] the performance of  [his]  offi-
 cial  duties or was intended as a reward for any official action [on his
 part];
   b. disclose confidential information acquired by him  OR  HER  in  the
 course  of his OR HER official duties or use such information to further
 his OR HER personal interests;
   c. receive, or enter into  any  agreement,  express  or  implied,  for
 compensation  for  services  to  be  rendered  in relation to any matter
 before any municipal agency of which he OR SHE is an officer, member  or
 employee  or  of any municipal agency over which he OR SHE has jurisdic-
 tion or to which he OR SHE has the power to appoint any member,  officer
 or employee; or
   d.  receive,  or  enter  into  any  agreement, express or implied, for
 compensation for services to be  rendered  in  relation  to  any  matter
 before any agency of his OR HER municipality, whereby his OR HER compen-
 sation  is  to be dependent or contingent upon any action by such agency
 with respect to such matter, provided  that  this  paragraph  shall  not
 prohibit  the fixing at any time of fees based upon the reasonable value
 of the services rendered.
   2. A. EXCEPT AS PROVIDED IN PARAGRAPH B OF THIS SUBDIVISION, NO MUNIC-
 IPAL OFFICER OR EMPLOYEE SHALL PARTICIPATE IN ANY OFFICIAL  DECISION  OR
 TAKE  ANY OFFICIAL ACTION WITH RESPECT TO ANY MATTER REQUIRING THE EXER-
 CISE OF DISCRETION, INCLUDING PARTICIPATING IN OFFICIAL DISCUSSIONS  AND
 VOTING ON THE MATTER, WHEN HE OR SHE KNOWS OR HAS REASON TO BELIEVE THAT
 ACTION  OR  INACTION  ON  THE MATTER WILL CONFER A FINANCIAL OR MATERIAL
 BENEFIT ON HIMSELF OR HERSELF, A RELATIVE, OR ANY  PRIVATE  ORGANIZATION
 IN  WHICH  THE MUNICIPAL OFFICER OR EMPLOYEE IS DEEMED TO HAVE AN INTER-
 EST.
   B. THIS SUBDIVISION SHALL NOT BE CONSTRUED AS PROHIBITING:
   I. PERFORMANCE OF A MINISTERIAL ACT, WHICH FOR THE  PURPOSES  OF  THIS
 SECTION,  SHALL  MEAN  AN ADMINISTRATIVE ACT CARRIED OUT IN A PRESCRIBED
 MANNER NOT ALLOWING FOR SUBSTANTIAL PERSONAL DISCRETION;
   II. PARTICIPATION IN ANY OFFICIAL DECISION OR OFFICIAL ACTION TAKEN BY
 A BOARD OR SIMILAR BODY WHEN  PARAGRAPH  A  OF  THIS  SUBDIVISION  WOULD
 PROHIBIT ONE OR MORE MEMBERS OF THE BOARD OR BODY FROM PARTICIPATING AND
 THE REMAINING MEMBERS OF THE BOARD OR BODY ARE INSUFFICIENT IN NUMBER OR
 LACK  SUFFICIENT  VOTING  STRENGTH  TO  MAKE  SUCH DECISION OR TAKE SUCH
 ACTION; OR
   III. PARTICIPATION IN ANY OFFICIAL DECISION OR OFFICIAL  ACTION  TAKEN
 BY A MUNICIPAL OFFICER OR EMPLOYEE, INDIVIDUALLY, WHEN THE MATTER CANNOT
 BE LAWFULLY DELEGATED OR ASSIGNED TO ANOTHER PERSON.
   C.  WHENEVER  PARAGRAPH  A  OF  THIS SUBDIVISION PROHIBITS A MUNICIPAL
 OFFICER OR EMPLOYEE FROM PARTICIPATING IN AN OFFICIAL DECISION OR TAKING
 OFFICIAL ACTION, SUCH MUNICIPAL OFFICER OR EMPLOYEE  SHALL  DISCLOSE  IN

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 WRITING  TO  THE  GOVERNING  BOARD THE FACTS AND CIRCUMSTANCES REQUIRING
 RECUSAL AND SUCH DISCLOSURE SHALL BE MADE A PART OF AND SET FORTH IN THE
 OFFICIAL RECORD OF THE PROCEEDINGS OF SUCH BOARD.  WHENEVER THE PROHIBI-
 TION  IN  PARAGRAPH  A OF THIS SUBDIVISION DOES NOT APPLY BECAUSE OF THE
 APPLICABILITY OF SUBPARAGRAPH II OR SUBPARAGRAPH III OF PARAGRAPH  B  OF
 THIS  SUBDIVISION,  THE  MUNICIPAL OFFICER OR EMPLOYEE SHALL DISCLOSE IN
 WRITING TO THE GOVERNING BOARD THE FACTS AND  CIRCUMSTANCES  THAT  WOULD
 OTHERWISE REQUIRE RECUSAL UNDER PARAGRAPH A OF THIS SUBDIVISION AND SUCH
 DISCLOSURE  SHALL BE MADE A PART OF AND SET FORTH IN THE OFFICIAL RECORD
 OF THE PROCEEDINGS OF SUCH BOARD.
   D. FOR PURPOSES OF THIS SUBDIVISION, THE TERM  "RELATIVE"  SHALL  MEAN
 ANY  PERSON  LIVING  IN  THE  SAME HOUSEHOLD AS THE MUNICIPAL OFFICER OR
 EMPLOYEE AND ANY PERSON WHO IS A DIRECT DESCENDANT OF THAT  INDIVIDUAL'S
 GRANDPARENTS OR THE SPOUSE OF SUCH DESCENDANT.
   E.  COMPLIANCE WITH THIS SUBDIVISION SHALL NOT CONSTITUTE AN EXCEPTION
 TO SECTION EIGHT HUNDRED ONE OF THIS ARTICLE, NOR BE CONSTRUED AS CURING
 A VIOLATION OF THAT SECTION.
   3. A. EXCEPT AS PROVIDED IN PARAGRAPH B OF THIS SUBDIVISION, NO MUNIC-
 IPAL OFFICER OR EMPLOYEE SHALL USE OR PERMIT THE USE OF MUNICIPAL  PROP-
 ERTY OR RESOURCES FOR PERSONAL OR PRIVATE PURPOSES.
   B. THIS SUBDIVISION SHALL NOT BE CONSTRUED AS PROHIBITING:
   I.  ANY  USE  OF  MUNICIPAL PROPERTY OR RESOURCES AUTHORIZED BY LAW OR
 MUNICIPAL POLICY CONSISTENT WITH LAW;
   II. THE USE OF MUNICIPAL PROPERTY OR RESOURCES FOR PERSONAL OR PRIVATE
 PURPOSES WHEN PROVIDED TO A MUNICIPAL OFFICER OR EMPLOYEE AS PART OF HIS
 OR HER COMPENSATION; OR
   III. THE OCCASIONAL, MINIMAL, NON-BUSINESS  AND  NON-PARTISAN  USE  OF
 MUNICIPAL  OFFICE EQUIPMENT AND SUPPLIES, SUCH AS TELEPHONES, COMPUTERS,
 COPIERS, PAPER AND PENS, FOR PERSONAL MATTERS AT NO OR NOMINAL  COST  TO
 THE MUNICIPALITY.
   C.  FOR  PURPOSES  OF  THIS SUBDIVISION, "PROPERTY OR RESOURCES" SHALL
 INCLUDE, BUT NOT BE LIMITED TO, MONEY, FACILITIES, FURNISHINGS,  MACHIN-
 ERY, APPARATUS, EQUIPMENT, SUPPLIES AND LETTERHEAD.
   4. In addition to any penalty contained in any other provision of law,
 any  person  who  shall knowingly and intentionally violate this section
 may be fined, suspended or removed from  office  or  employment  in  the
 manner provided by law.
   §  6. The section heading of section 806 of the general municipal law,
 as amended by chapter 1019 of the laws of 1970, is amended  to  read  as
 follows:
   [Code] MUNICIPAL CODES of ethics.
   §  7.  Paragraph  (a)  of  subdivision 1 of section 806 of the general
 municipal law, as amended by chapter 238 of the laws of 2006, is amended
 to read as follows:
   (a) The governing body of each county,  city,  town,  village,  school
 district [and], fire district AND IMPROVEMENT DISTRICT GOVERNED BY ARTI-
 CLE  THIRTEEN OF THE TOWN LAW shall, and the governing body of any other
 municipality may, by local law, ordinance or resolution, adopt a code of
 ethics setting forth for the guidance of its officers and employees  the
 standards  of  conduct  reasonably expected of them. Notwithstanding any
 other provision of this article to the contrary, a fire district code of
 ethics shall also apply to the volunteer members of  the  fire  district
 fire  department.  Codes  of ethics shall provide standards for officers
 and employees with respect to  disclosure  of  interest  in  legislation
 before the local governing body, holding of investments in conflict with
 official  duties,  private  employment in conflict with official duties,

 A. 7317                             5
 
 future employment, NEPOTISM, and such other standards  relating  to  the
 conduct of officers and employees as may be deemed advisable. Such codes
 may: (I) regulate or prescribe conduct which is not expressly prohibited
 by  this  article  but may not authorize conduct otherwise prohibited [.
 Such codes may provide for the prohibition of]; (II) PROHIBIT  CONTRACTS
 OR  conduct [or] THAT IS EITHER EXPRESSLY OR BY IMPLICATION PERMITTED BY
 SECTION EIGHT HUNDRED TWO OR SECTION EIGHT HUNDRED FIVE-A OF THIS  ARTI-
 CLE; AND (III) PROVIDE FOR THE disclosure of information and the classi-
 fication  of employees or officers. EVERY FIVE YEARS, THE GOVERNING BODY
 OF EACH MUNICIPALITY THAT ADOPTS A CODE OF ETHICS SHALL REVIEW AND, WHEN
 DEEMED NECESSARY, UPDATE ITS CODE OF ETHICS.
   § 8. Subdivision 2 of section 806 of the  general  municipal  law,  as
 amended  by  chapter  238  of  the  laws  of 2006, is amended to read as
 follows:
   2. [The] UPON THE ADOPTION OR AMENDMENT OF A CODE OF ETHICS BY A MUNI-
 CIPALITY, THE chief executive officer of [a] THE municipality  [adopting
 a  code  of  ethics] shall cause a PAPER OR ELECTRONIC copy [thereof] OF
 SUCH CODE OR AMENDMENT to be distributed PROMPTLY to every  officer  and
 employee  of  his OR HER municipality AND TO THE BOARD OF ETHICS FOR THE
 MUNICIPALITY. IN ADDITION, SUCH CHIEF EXECUTIVE OFFICER  SHALL  CAUSE  A
 COMPLETE  AND  CURRENT  COPY  OF THE MUNICIPALITY'S CODE OF ETHICS TO BE
 POSTED ON THE MUNICIPALITY'S WEB SITE, IF THE MUNICIPALITY  MAINTAINS  A
 WEB  SITE,  AND  DISTRIBUTED  (A)  TO  EVERY  PERSON  WHO  IS ELECTED OR
 APPOINTED TO SERVE AS AN OFFICER OR EMPLOYEE OF THE MUNICIPALITY PROMPT-
 LY FOLLOWING SUCH PERSON'S ELECTION OR APPOINTMENT, AND (B) TO  ALL  THE
 OFFICERS  AND  EMPLOYEES  OF  THE  MUNICIPALITY AT LEAST ONCE EVERY FIVE
 YEARS. EVERY MUNICIPAL OFFICER AND EMPLOYEE RECEIVING A COPY OF  A  CODE
 OF  ETHICS  OR  AMENDMENT  THERETO SHALL ACKNOWLEDGE PROMPTLY IN WRITING
 THAT HE OR SHE HAS RECEIVED AND READ THE CODE OF ETHICS OR AMENDMENT AND
 SUCH ACKNOWLEDGEMENT SHALL BE FILED WITH THE CLERK OR SECRETARY  OF  THE
 MUNICIPALITY.  The  BOARD  OF  fire  [district]  commissioners OF A FIRE
 DISTRICT shall ALSO cause a copy of the fire district's code of  ethics,
 INCLUDING ANY AMENDMENTS THERETO, to be posted publicly and conspicuous-
 ly in each building under such district's control. Failure to distribute
 any such copy or failure of any officer or employee to receive such copy
 shall  have  no effect on the duty of compliance with such code, nor the
 enforcement of provisions thereof.
   § 9. Section 806 of the general municipal law is amended by  adding  a
 new subdivision 3 to read as follows:
   3.  THE  CLERK OF EACH MUNICIPALITY AND OF EACH POLITICAL SUBDIVISION,
 AS DEFINED IN SECTION EIGHT HUNDRED TEN OF THIS ARTICLE, SHALL  MAINTAIN
 AS A RECORD SUBJECT TO PUBLIC INSPECTION:
   (A)  A  COPY  OF THE MUNICIPALITY'S OR POLITICAL SUBDIVISION'S CODE OF
 ETHICS AND ANY AMENDMENTS TO ANY CODE OF ETHICS;
   (B) A STATEMENT THAT SUCH MUNICIPALITY OR  POLITICAL  SUBDIVISION  HAS
 ESTABLISHED  A BOARD OF ETHICS, IN ACCORDANCE WITH SECTION EIGHT HUNDRED
 EIGHT OF THIS ARTICLE AND/OR PURSUANT TO OTHER LAW, CHARTER, CODE, LOCAL
 LAW, ORDINANCE OR RESOLUTION, AND THE  NAMES  OF  THE  MEMBERS  OF  SUCH
 BOARD; AND
   (C)  A  COPY  OF  THE FORM OF ANNUAL STATEMENT OF FINANCIAL DISCLOSURE
 DESCRIBED IN SUBDIVISION ONE OF SECTION EIGHT  HUNDRED  ELEVEN  OF  THIS
 ARTICLE  AND  EITHER  A STATEMENT OF THE DATE SUCH ANNUAL STATEMENT FORM
 WAS PROMULGATED BY LOCAL LAW, ORDINANCE OR RESOLUTION OF  THE  GOVERNING
 BODY, IF ADOPTED PURSUANT TO SUBPARAGRAPH (I) OF PARAGRAPH (A) OF SUBDI-
 VISION  ONE OF SECTION EIGHT HUNDRED ELEVEN OF THIS ARTICLE, OR A STATE-
 MENT THAT THE GOVERNING BODY HAS, BY LOCAL LAW, ORDINANCE OR RESOLUTION,

 A. 7317                             6
 
 RESOLVED TO CONTINUE THE USE OF AN AUTHORIZED FORM OF  ANNUAL  STATEMENT
 OF  FINANCIAL DISCLOSURE IN USE ON THE DATE SUCH LOCAL LAW, ORDINANCE OR
 RESOLUTION IS ADOPTED, IF ADOPTED PURSUANT TO SUBPARAGRAPH (II) OF PARA-
 GRAPH  (A)  OF  SUBDIVISION  ONE OF SECTION EIGHT HUNDRED ELEVEN OF THIS
 ARTICLE, AND IF AS OF JANUARY FIRST,  NINETEEN  HUNDRED  NINETY-ONE,  NO
 SUCH FORM WAS PROMULGATED AND NO SUCH RESOLVE WAS MADE TO CONTINUE USING
 AN  EXISTING  ANNUAL  STATEMENT FORM, A STATEMENT THAT THE PROVISIONS OF
 SECTION EIGHT HUNDRED TWELVE OF THIS ARTICLE APPLY OR THAT IT IS A MUNI-
 CIPALITY WHICH IS NOT SUBJECT TO THE PROVISIONS OF SECTION EIGHT HUNDRED
 TWELVE OF THIS ARTICLE BECAUSE IT IS  NOT  A  POLITICAL  SUBDIVISION  AS
 DEFINED IN SECTION EIGHT HUNDRED TEN OF THIS ARTICLE.
   §  10. Section 808 of the general municipal law, as amended by chapter
 1019 of the laws of 1970 and subdivision 5 as amended by chapter 490  of
 the laws of 2014, is amended to read as follows:
   §  808.  Boards  of  ethics.  1. [The governing body of any county may
 establish a county board of ethics and appropriate  moneys  for  mainte-
 nance and personal services in connection therewith. The members of such
 board  of ethics shall be appointed by such governing body except in the
 case of a county operating under an  optional  or  alternative  form  of
 county  government or county charter, in which case the members shall be
 appointed by the county executive or county manager, as the case may be,
 subject to confirmation by such governing body.  Such  board  of  ethics
 shall consist of at least three members, a majority of whom shall not be
 officers  or  employees  of  such  county  or  municipalities  wholly or
 partially located in such county and at least one of whom  shall  be  an
 elected or appointed officer or employee of the county or a municipality
 located  within  such county. The members of such board shall receive no
 salary or compensation for their services as members of such  board  and
 shall serve at the pleasure of the appointing authority] (A) THE GOVERN-
 ING BODY OF (I) EVERY COUNTY, (II) EVERY CITY, TOWN AND VILLAGE HAVING A
 POPULATION  OF  TWENTY-FIVE  THOUSAND  OR MORE, AND (III) EVERY BOARD OF
 COOPERATIVE EDUCATIONAL SERVICES (BOCES)  SHALL  ESTABLISH  A  BOARD  OF
 ETHICS.  THEREAFTER,  THE GOVERNING BODY SHALL APPROPRIATE ANNUALLY SUCH
 MONEYS AS MAY BE NECESSARY FOR  THE  BOARD'S  CONTRACTUAL  AND  PERSONAL
 SERVICE  EXPENDITURES.    EXCEPT  AS  PROVIDED  IN PARAGRAPH (D) OF THIS
 SUBDIVISION, SUCH BOARD SHALL HAVE JURISDICTION TO ACT ONLY IN  RELATION
 TO  THE  OFFICERS  AND  EMPLOYEES  OF THE COUNTY, CITY, TOWN, VILLAGE OR
 BOCES THAT ESTABLISHED THE BOARD.
   (B) THE GOVERNING BODY OF EVERY MUNICIPALITY NOT  DESCRIBED  IN  PARA-
 GRAPH (A) OF THIS SUBDIVISION IS AUTHORIZED, BUT NOT REQUIRED, TO ESTAB-
 LISH  A  BOARD  OF ETHICS. IF SUCH GOVERNING BODY ESTABLISHES A BOARD OF
 ETHICS, THE GOVERNING BODY SHALL APPROPRIATE ANNUALLY SUCH MONEYS AS MAY
 BE NECESSARY FOR THE BOARD'S CONTRACTUAL AND PERSONAL  SERVICE  EXPENDI-
 TURES. SUCH BOARD SHALL HAVE JURISDICTION TO ACT ONLY IN RELATION TO THE
 OFFICERS AND EMPLOYEES OF THE MUNICIPALITY THAT ESTABLISHED THE BOARD.
   (C)  TWO OR MORE MUNICIPALITIES NOT DESCRIBED IN PARAGRAPH (A) OF THIS
 SUBDIVISION MAY ENTER INTO, AMEND, CANCEL, AND TERMINATE AGREEMENTS  FOR
 THE  ESTABLISHMENT  OF  A  COOPERATIVE  BOARD OF ETHICS. SUCH AGREEMENTS
 SHALL BE CONSISTENT WITH THE REQUIREMENTS  OF  ARTICLE  FIVE-G  OF  THIS
 CHAPTER,  EXCEPT  AS  OTHERWISE PROVIDED IN THIS SECTION, INCLUDING THAT
 (I) THE POWER TO ENTER INTO SUCH AGREEMENTS SHALL EXTEND TO ALL  MUNICI-
 PALITIES AS DEFINED IN THIS ARTICLE, AND SHALL NOT BE LIMITED TO MUNICI-
 PAL  CORPORATIONS  AND  DISTRICTS  AS  DEFINED IN ARTICLE FIVE-G OF THIS
 CHAPTER, AND (II) THE DURATION OF SUCH AGREEMENTS SHALL NOT  BE  LIMITED
 TO  A MAXIMUM TERM OF FIVE YEARS. FOLLOWING THE ESTABLISHMENT OF A COOP-
 ERATIVE BOARD OF ETHICS, THE GOVERNING BODIES OF THE MUNICIPALITIES THAT

 A. 7317                             7
 
 ARE PARTIES TO THE AGREEMENT ESTABLISHING THE  BOARD  SHALL  APPROPRIATE
 ANNUALLY SUCH MONEYS AS MAY BE NECESSARY FOR THE BOARD'S CONTRACTUAL AND
 PERSONAL  SERVICE  EXPENDITURES, IN SUCH AMOUNTS OR PROPORTION AS MAY BE
 PROVIDED  IN  THE  AGREEMENT. A COOPERATIVE BOARD OF ETHICS SHALL BE THE
 BOARD OF ETHICS OF EACH MUNICIPALITY THAT IS A PARTY  TO  THE  AGREEMENT
 ESTABLISHING  THE  BOARD,  AND  SHALL  HAVE  JURISDICTION TO ACT ONLY IN
 RELATION TO THE OFFICERS OR EMPLOYEES OF SUCH MUNICIPALITIES.
   (D) IN THE EVENT THAT A MUNICIPALITY DESCRIBED  IN  PARAGRAPH  (B)  OF
 THIS SUBDIVISION DOES NOT ESTABLISH A BOARD OF ETHICS AND IS NOT A PARTY
 TO AN AGREEMENT ESTABLISHING A COOPERATIVE BOARD OF ETHICS:
   (I)  IN  THE  CASE OF A MUNICIPALITY OTHER THAN A SCHOOL DISTRICT, THE
 BOARD OF ETHICS OF THE COUNTY IN WHICH THE MUNICIPALITY IS LOCATED SHALL
 SERVE AS THE BOARD OF ETHICS OF SUCH MUNICIPALITY AND HAVE  JURISDICTION
 TO  ACT  IN RELATION TO THE OFFICERS AND EMPLOYEES OF THAT MUNICIPALITY,
 PROVIDED THAT IF SUCH A MUNICIPALITY IS LOCATED IN MORE THAN ONE COUNTY,
 THE GOVERNING BOARD OF THE MUNICIPALITY BY  RESOLUTION  SHALL  DESIGNATE
 THE  BOARD  OF  ETHICS  OF  ONE OF THE COUNTIES TO SERVE AS THE BOARD OF
 ETHICS OF THE MUNICIPALITY;
   (II) IN THE CASE OF A SCHOOL DISTRICT,  OTHER  THAN  THE  CITY  SCHOOL
 DISTRICT  OF A CITY HAVING A POPULATION OF ONE HUNDRED TWENTY-FIVE THOU-
 SAND OR MORE, THE BOARD OF ETHICS ESTABLISHED BY THE BOCES OF THE SUPER-
 VISORY DISTRICT IN WHICH THE SCHOOL DISTRICT IS LOCATED SHALL  SERVE  AS
 THE BOARD OF ETHICS OF SUCH SCHOOL DISTRICT AND HAVE JURISDICTION TO ACT
 IN RELATION TO THE OFFICERS AND EMPLOYEES OF SUCH SCHOOL DISTRICT; AND
   (III)  IN  THE CASE OF A CITY SCHOOL DISTRICT OF A CITY HAVING A POPU-
 LATION OF ONE HUNDRED TWENTY-FIVE THOUSAND OR MORE, THE BOARD OF  ETHICS
 ESTABLISHED  BY  THE  CITY IN WHICH THE SCHOOL DISTRICT IS LOCATED SHALL
 SERVE AS THE BOARD OF ETHICS OF SUCH SCHOOL DISTRICT AND HAVE  JURISDIC-
 TION  TO  ACT  IN  RELATION TO THE OFFICERS AND EMPLOYEES OF SUCH SCHOOL
 DISTRICT.
   (E) IN THE CASE OF A MUNICIPALITY THAT HAS NOT ESTABLISHED A BOARD  OF
 ETHICS  AND  IS  NOT  A PARTY TO AN AGREEMENT ESTABLISHING A COOPERATIVE
 BOARD OF ETHICS:
   (I) THE CHIEF EXECUTIVE OFFICER OF THE MUNICIPALITY, ANNUALLY,  WITHIN
 THIRTY DAYS FOLLOWING THE START OF THE MUNICIPALITY'S FISCAL YEAR, SHALL
 NOTIFY  THE  APPROPRIATE COUNTY, BOCES OR CITY BOARD OF ETHICS THAT SUCH
 BOARD SHALL SERVE AS THE BOARD OF  ETHICS  FOR  THE  MUNICIPALITY.  SUCH
 NOTICE  SHALL  BE  ACCOMPANIED  BY  A  COMPLETE  AND CURRENT COPY OF THE
 MUNICIPALITY'S CODE OF ETHICS. AT THE TIME SUCH  NOTICE  IS  GIVEN,  THE
 CHIEF  EXECUTIVE  OFFICER  SHALL  ALSO  CAUSE A COPY OF THE NOTICE TO BE
 POSTED ON THE MUNICIPALITY'S WEB SITE, IF THE MUNICIPALITY  MAINTAINS  A
 WEB  SITE,  AND  IN  EACH  PUBLIC BUILDING UNDER THE JURISDICTION OF THE
 MUNICIPALITY IN A PLACE CONSPICUOUS TO ITS OFFICERS AND EMPLOYEES.
   (II) IF OFFICERS AND EMPLOYEES OF  THE  MUNICIPALITY  ARE  SUBJECT  TO
 ANNUAL FINANCIAL DISCLOSURE REQUIREMENTS IMPOSED IN ACCORDANCE WITH THIS
 ARTICLE, SUCH NOTICE SHALL ALSO BE ACCOMPANIED BY A COMPLETE AND CURRENT
 COPY  OF ALL LOCAL LAWS, ORDINANCES, RESOLUTIONS AND REGULATIONS ADOPTED
 BY THE MUNICIPALITY  RELATING  TO  THE  IMPOSITION,  ADMINISTRATION  AND
 ENFORCEMENT OF THE FILING REQUIREMENT.
   (III)  THE GOVERNING BODY OF THE MUNICIPALITY, ANNUALLY, WITHIN THIRTY
 DAYS FOLLOWING THE  START  OF  THE  MUNICIPALITY'S  FISCAL  YEAR,  SHALL
 APPOINT  A  MUNICIPAL REPRESENTATIVE TO THE APPROPRIATE COUNTY, BOCES OR
 CITY BOARD OF ETHICS. THE PERSON APPOINTED AS  MUNICIPAL  REPRESENTATIVE
 SHALL BE A RESIDENT OF THE MUNICIPALITY, AND SHALL BE KNOWLEDGEABLE WITH
 RESPECT  TO  THE  MUNICIPALITY'S  CODE  OF ETHICS AND THE MUNICIPALITY'S
 ANNUAL FINANCIAL DISCLOSURE REQUIREMENTS, IF ANY. THE  MUNICIPAL  REPRE-

 A. 7317                             8
 
 SENTATIVE  SHALL RECEIVE NOTICE OF, AND BE ENTITLED TO PARTICIPATE, AS A
 NON-VOTING MEMBER, IN ALL MEETINGS, PROCEEDINGS, DELIBERATIONS AND OTHER
 ACTIVITIES OF THE BOARD THAT PERTAIN TO AN OFFICER OR  EMPLOYEE  OF  THE
 MUNICIPALITY.  A  MUNICIPAL  REPRESENTATIVE  SHALL  RECEIVE NO SALARY OR
 COMPENSATION FOR HIS OR HER SERVICES, BUT  WITHIN  AMOUNTS  APPROPRIATED
 SHALL  BE  REIMBURSED  FOR ACTUAL AND NECESSARY EXPENSES INCURRED IN THE
 PERFORMANCE OF HIS OR HER OFFICIAL DUTIES.
   (F) IN THE EVENT THAT A BOARD OF ETHICS ESTABLISHED BY A COUNTY, BOCES
 OR CITY SERVES AS THE BOARD OF ETHICS FOR ANOTHER MUNICIPALITY, AND SUCH
 MUNICIPALITY SHALL EITHER ESTABLISH A BOARD OF ETHICS OR BECOME A  PARTY
 TO  AN  AGREEMENT  ESTABLISHING A COOPERATIVE BOARD OF ETHICS, THE CHIEF
 EXECUTIVE OFFICER OF THE MUNICIPALITY SHALL NOTIFY THE COUNTY, BOCES  OR
 CITY  BOARD OF ETHICS OF THE DATE AS OF WHICH SUCH BOARD SHALL NO LONGER
 SERVE AS THE BOARD OF ETHICS OF THE MUNICIPALITY.    SUCH  NOTICE  SHALL
 EITHER  STATE  THAT  THE  MUNICIPALITY  HAS ESTABLISHED ITS OWN BOARD OF
 ETHICS OR IDENTIFY SUCH COOPERATIVE BOARD OF ETHICS. AT  THE  TIME  SUCH
 NOTICE  IS GIVEN, THE CHIEF EXECUTIVE OFFICER SHALL ALSO CAUSE A COPY OF
 THE NOTICE TO BE POSTED ON THE MUNICIPALITY'S WEB SITE, IF  THE  MUNICI-
 PALITY  MAINTAINS  A  WEB  SITE,  AND  IN EACH PUBLIC BUILDING UNDER THE
 JURISDICTION OF THE MUNICIPALITY IN A PLACE CONSPICUOUS TO ITS  OFFICERS
 AND  EMPLOYEES.    PROMPTLY AFTER THE DATE SPECIFIED IN SUCH NOTICE, THE
 COUNTY, BOCES OR CITY BOARD OF ETHICS SHALL TRANSFER TO THE MUNICIPAL OR
 COOPERATIVE BOARD OF ETHICS ALL PENDING MATTERS AND RECORDS RELATING  TO
 THE  OFFICERS AND EMPLOYEES OF THE MUNICIPALITY; PROVIDED, HOWEVER, THAT
 SUCH COUNTY, BOCES, OR CITY BOARD OF ETHICS SHALL HAVE THE DISCRETION TO
 RETAIN ANY PENDING MATTER AND RECORDS RELATING THERETO UNTIL  SUCH  TIME
 AS THE MATTER IS RESOLVED.
   (G)  EVERY  BOARD OF ETHICS SHALL CONSIST OF AT LEAST THREE MEMBERS, A
 MAJORITY OF WHOM SHALL NOT  BE  MUNICIPAL  OFFICERS  OR  EMPLOYEES.  THE
 MEMBERS OF EVERY BOARD OF ETHICS SHALL SERVE FOR A FIXED TERM OF OFFICE,
 NOT  TO  EXCEED  FIVE  YEARS. THE LENGTH OF SUCH TERM OF OFFICE SHALL BE
 DETERMINED BY THE MUNICIPAL GOVERNING BODY THAT ESTABLISHES THE BOARD OF
 ETHICS OR SPECIFIED IN THE AGREEMENT ESTABLISHING A COOPERATIVE BOARD OF
 ETHICS, PROVIDED THAT SUCH GOVERNING BODY OR AGREEMENT MAY  PROVIDE  FOR
 THE  INITIAL  APPOINTMENTS  TO THE BOARD TO BE MADE FOR STAGGERED TERMS.
 APPOINTMENTS TO THE BOARD SHALL BE MADE AS FOLLOWS:
   (I) THE MEMBERS OF A COUNTY BOARD OF ETHICS SHALL BE APPOINTED BY  THE
 GOVERNING  BODY  OF  THE COUNTY EXCEPT IN THE CASE OF A COUNTY OPERATING
 UNDER AN OPTIONAL OR ALTERNATIVE FORM OF  COUNTY  GOVERNMENT  OR  COUNTY
 CHARTER,  IN  WHICH  CASE  THE  MEMBERS SHALL BE APPOINTED BY THE COUNTY
 EXECUTIVE, COUNTY MANAGER OR COUNTY ADMINISTRATOR, AS THE CASE  MAY  BE,
 SUBJECT TO CONFIRMATION BY SUCH GOVERNING BODY.
   (II)  THE  MEMBERS  OF A BOARD OF ETHICS ESTABLISHED BY A MUNICIPALITY
 OTHER THAN A COUNTY SHALL BE APPOINTED BY  THE  GOVERNING  BODY  OF  THE
 MUNICIPALITY  OR  BY  SUCH  PERSON  OR  BODY AS MAY BE DESIGNATED BY THE
 GOVERNING BODY OF THE MUNICIPALITY.
   (III) THE MEMBERS OF A COOPERATIVE BOARD OF ETHICS SHALL BE  APPOINTED
 IN THE MANNER PROVIDED IN THE AGREEMENT ESTABLISHING THE BOARD.
   2.  [The]  EVERY board OF ETHICS shall render advisory opinions to THE
 officers and employees [of municipalities wholly or  partly  within  the
 county]  UNDER THE BOARD'S JURISDICTION with respect to this article and
 any code of ethics adopted pursuant hereto. Such advisory opinions shall
 be rendered pursuant to the written  request  of  any  such  officer  or
 employee  under  such  rules  and regulations as the board may prescribe
 [and shall have the advice of counsel employed by the board, or if none,
 the county attorney]. In addition, [it] THE BOARD may  make  recommenda-

 A. 7317                             9
 
 tions  with  respect to the drafting and adoption of a code of ethics or
 amendments thereto upon the request of the governing body of any munici-
 pality [in the county] FOR WHICH THE BOARD SERVES AS THE  MUNICIPALITY'S
 BOARD OF ETHICS, AND PERFORM SUCH OTHER FUNCTIONS RELATING TO THE ADMIN-
 ISTRATION  OF THIS ARTICLE AS MAY BE AUTHORIZED BY THE GOVERNING BODY OR
 AGREEMENT ESTABLISHING THE BOARD INCLUDING, BUT NOT LIMITED TO,  PROVID-
 ING  ETHICS  TRAINING  TO  THE  OFFICERS AND EMPLOYEES UNDER THE BOARD'S
 JURISDICTION.
   3. [The governing body of any municipality other  than  a  county  may
 establish  a  local board of ethics and, where such governing body is so
 authorized, appropriate moneys for maintenance and personal services  in
 connection therewith. A local board shall have all the powers and duties
 of  and  shall  be  governed by the same conditions as a county board of
 ethics, except that it shall act  only  with  respect  to  officers  and
 employees  of the municipality that has established such board or of its
 agencies. The members of a local board shall be appointed by such person
 or body as may be designated by the governing body of  the  municipality
 to  serve  at  the  pleasure  of the appointing authority and such board
 shall consist of at least three members, a  majority  of  whom  are  not
 otherwise  officers  or employees of such municipality. Such board shall
 include at least one member who is an  elected  or  appointed  municipal
 officer or employee.
   4.  The county board of ethics shall not act with respect to the offi-
 cers and employees of any municipality located  within  such  county  or
 agency thereof, where such municipality has established its own board of
 ethics,  except  that the local board may at its option refer matters to
 the county board.
   5.] A BOARD OF ETHICS SHALL HAVE THE ADVICE OF COUNSEL EMPLOYED BY THE
 BOARD OR, IF NONE, THE ATTORNEY FOR THE  MUNICIPALITY  THAT  ESTABLISHED
 THE BOARD OR, IN THE CASE OF A COOPERATIVE BOARD OF ETHICS, SUCH MUNICI-
 PAL  ATTORNEY  AS  MAY  BE  DESIGNATED IN THE AGREEMENT ESTABLISHING THE
 COOPERATIVE BOARD OF ETHICS.
   4. THE board of ethics of  a  political  subdivision  (as  defined  in
 section  eight  hundred  ten of this article) and THE BOARD OF ETHICS of
 any other municipality[,] which [is required by local law, ordinance  or
 resolution  to be, or which pursuant to legal authority, in practice is,
 the repository for completed annual statements of  financial  disclosure
 shall  file  a  statement with the clerk of its municipality, that it is
 the authorized repository for completed annual statements  of  financial
 disclosure] REQUIRES FILING OF ANNUAL STATEMENTS OF FINANCIAL DISCLOSURE
 PURSUANT  TO  THIS  ARTICLE, SHALL RECEIVE, REVIEW FOR COMPLETENESS, AND
 SERVE AS REPOSITORY FOR SUCH ANNUAL STATEMENTS AND ENFORCE  SUCH  FILING
 REQUIREMENT.
   5.  EACH MEMBER OF EVERY BOARD OF ETHICS SHALL ATTEND AND SUCCESSFULLY
 COMPLETE A TRAINING COURSE THE CONTENTS OF WHICH SHALL  BE  APPROVED  BY
 THE  STATE  COMPTROLLER  WITHIN  TWO  HUNDRED SEVENTY DAYS OF HIS OR HER
 APPOINTMENT OR REAPPOINTMENT TO THE BOARD; PROVIDED, HOWEVER, THAT NOTH-
 ING IN THIS SUBDIVISION SHALL BE DEEMED TO REQUIRE A MEMBER OF  A  BOARD
 OF  ETHICS TO SUCCESSFULLY COMPLETE SUCH TRAINING COURSE MORE THAN ONCE.
 THE COURSE SHALL CONTAIN TRAINING RELATED  TO  THE  PROVISIONS  OF  THIS
 ARTICLE, CODES OF ETHICS, ANNUAL FINANCIAL DISCLOSURE AND DECISIONAL LAW
 RELATING  TO  CONFLICTS  OF INTEREST AND ETHICS AND SUCH OTHER TOPICS AS
 THE COMPTROLLER DEEMS ADVISABLE. WHEN APPROVED IN ADVANCE OF  ATTENDANCE
 BY  THE  GOVERNING BODY OF THE MUNICIPALITY ESTABLISHING THE BOARD OR IN
 THE MANNER PROVIDED IN AN AGREEMENT ESTABLISHING A COOPERATIVE BOARD  OF
 ETHICS,  THE ACTUAL AND NECESSARY EXPENSES INCURRED BY A BOARD MEMBER IN

 A. 7317                            10
 
 SUCCESSFULLY COMPLETING THE TRAINING REQUIRED BY THIS SECTION SHALL BE A
 CHARGE AGAINST THE MUNICIPALITY OR THE MUNICIPALITIES  PARTICIPATING  IN
 THE COOPERATIVE BOARD OF ETHICS AS PROVIDED IN SUCH AGREEMENT.
   6.  THE  PROVISIONS OF THIS SECTION SHALL NOT APPLY TO A CITY HAVING A
 POPULATION OF ONE MILLION OR MORE OR TO A COUNTY,  SCHOOL  DISTRICT,  OR
 OTHER PUBLIC AGENCY OR FACILITY THEREIN.
   §  11.  Subdivision  9 of section 810 of the general municipal law, as
 amended by chapter 490 of the laws  of  2014,  is  amended  to  read  as
 follows:
   9.  The term "appropriate body" or "appropriate bodies" shall mean the
 board of ethics [for the] OF ANY political subdivision OR MUNICIPALITY.
   § 12. Section 13 of 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, is amended to read as follows:
   § 13. Laws superseded. The provisions of article [eighteen] 18 of  the
 general  municipal  law, as added by this act, shall supersede any local
 law, charter, ordinance, resolution, rule or regulation of  any  munici-
 pality  to  the  extent  that such local law, charter, ordinance, resol-
 ution, rule or regulation is inconsistent with the  provisions  thereof.
 No  local law, ordinance, resolution, rule or regulation shall modify or
 dispense with any provision of article  [eighteen]  18  of  the  general
 municipal  law,  as  added  by this act; provided, however, that nothing
 [herein] contained IN THIS SECTION  shall  prohibit  a  code  of  ethics
 adopted  pursuant  thereto from supplementing the provisions of this act
 OR FROM BEING MORE STRINGENT THAN ARTICLE 18 OF  THE  GENERAL  MUNICIPAL
 LAW.
   § 13. Notwithstanding any general, special or local law to the contra-
 ry, the governing body of any municipality which has prior to the effec-
 tive  date  of this act:   (a) established a board of ethics pursuant to
 section 808 of the general municipal law; and (b) not established a term
 of office for the members of  such  board;  such  governing  body  shall
 establish  terms  of  office  for  the members of such board pursuant to
 paragraph (g) of subdivision 1 of section 808 of the  general  municipal
 law as added by section ten of this act to begin on a date no later than
 the  first  day of the municipality's fiscal year commencing in 2018 and
 on such date the positions on such  board  of  ethics  shall  be  deemed
 vacant,  provided  that  nothing  in  this section shall be construed to
 prohibit the reappointment of an incumbent board member for such term of
 office.
   § 14. Notwithstanding any general, special or local law to the contra-
 ry, any person serving as a member of  a  board  of  ethics  established
 pursuant  to  section  808 of the general municipal law on the effective
 date of  this  act  shall  successfully  complete  the  training  course
 required by subdivision 5 of section 808 of such law as added by section
 ten of this act within one year of the effective date of this act.
   § 15. This act shall take effect on the first of January next succeed-
 ing  the  date  on  which it shall have become a law; provided, however,
 that paragraph (d) of subdivision 1 of section 808 of the general munic-
 ipal law, as added by section ten of this act, shall take effect January
 1, 2019.