S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7663
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                May 8, 2017
                                ___________
 
 Introduced  by  M.  of  A.  FITZPATRICK -- read once and referred to the
   Committee on Education
 
 AN ACT to amend the education law, in relation to mandating the trustees
   of common school districts and the board of education of  every  union
   free  school  district  to establish a code of ethics to be applied to
   the prohibition of the use of school resources for personal gain
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  1604 of the education law is amended by adding a
 new subdivision 43 to read as follows:
   43. ON OR BEFORE JULY THIRTY-FIRST, TWO THOUSAND EIGHTEEN, AND ANNUAL-
 LY THEREAFTER, THE GOVERNING BODY OF EACH SCHOOL DISTRICT AND EACH BOARD
 OF COOPERATIVE EDUCATIONAL SERVICES SHALL REVIEW AND APPROVE A  CODE  OF
 ETHICS THAT SHALL INCLUDE STANDARDS FOR OFFICERS AND EMPLOYEES PROHIBIT-
 ING  THE  USE  OF  PROPERTY  OR  RESOURCES  OF THE DISTRICT OR BOARD FOR
 PERSONAL GAIN.  A COPY OF SUCH CODE SHALL BE FILED WITH  THE  OFFICE  OF
 THE STATE COMPTROLLER AND THE DEPARTMENT WITHIN THIRTY DAYS OF ITS ANNU-
 AL  APPROVAL PURSUANT TO THIS SUBDIVISION, AND ANY SUBSEQUENT AMENDMENTS
 TO SUCH CODE SHALL BE SO FILED WITHIN THIRTY DAYS OF  ADOPTION  OF  SUCH
 AMENDMENT.
   §  2.  Section  1709  of  the education law is amended by adding a new
 subdivision 36 to read as follows:
   36. ON OR BEFORE JULY THIRTY-FIRST, TWO THOUSAND EIGHTEEN, AND ANNUAL-
 LY THEREAFTER, THE GOVERNING BODY OF EACH SCHOOL DISTRICT AND EACH BOARD
 OF COOPERATIVE EDUCATIONAL SERVICES SHALL REVIEW AND APPROVE A  CODE  OF
 ETHICS THAT SHALL INCLUDE STANDARDS FOR OFFICERS AND EMPLOYEES PROHIBIT-
 ING  THE  USE  OF  PROPERTY  OR  RESOURCES  OF THE DISTRICT OR BOARD FOR
 PERSONAL GAIN.  A COPY OF SUCH CODE SHALL BE FILED WITH  THE  OFFICE  OF
 THE STATE COMPTROLLER AND THE DEPARTMENT WITHIN THIRTY DAYS OF ITS ANNU-
 AL  APPROVAL PURSUANT TO THIS SUBDIVISION, AND ANY SUBSEQUENT AMENDMENTS
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11140-01-7
              

 A. 7663                             2
 
 TO SUCH CODE SHALL BE SO FILED WITHIN THIRTY DAYS OF  ADOPTION  OF  SUCH
 AMENDMENT.
   §  3.  Paragraph a of subdivision 1 of section 2102-a of the education
 law, as amended by chapter 388 of the laws of 2010, is amended  to  read
 as follows:
   a.  Every trustee or voting member of a board of education of a school
 district or a board of  cooperative  educational  services,  elected  or
 appointed  for  a  term  beginning  on or after July first, two thousand
 five, shall, within the first year of his or her term, complete a  mini-
 mum  of six hours of training on the financial oversight, accountability
 and fiduciary responsibilities of a school board member.  SUCH  TRAINING
 SHALL  ALSO  INCLUDE EXAMINATION OF THE SCHOOL DISTRICT'S CODE OF ETHICS
 AS ESTABLISHED IN SUBDIVISION FORTY-THREE  OF  SECTION  SIXTEEN  HUNDRED
 FOUR OF THIS TITLE.
   § 4. Paragraph (a) of subdivision 3 of section 2116-a of the education
 law,  as  amended  by section 4 of part A-1 of chapter 58 of the laws of
 2006, is amended to read as follows:
   (a) The school authorities  of  each  school  district,  except  those
 employing  fewer  than  eight  teachers,  but  including the city school
 districts of the cities of Buffalo and Rochester, shall obtain an annual
 audit of its records by an independent certified public accountant or an
 independent public accountant. The report of such annual audit shall  be
 presented  to the trustees or board of education by such accountant. The
 board of education of the city school district of the city of New  York,
 districts  of  such city shall obtain an annual audit by the comptroller
 of the city of New York, or by an independent certified public  account-
 ant or an independent public accountant. Such city school district audit
 shall  include,  but  not  be  limited to, transactions processed at the
 level of the central administrative office, the district, and the  indi-
 vidual  school.  SUCH AUDIT SHALL ALSO INCLUDE EXAMINATION OF ALL TRANS-
 ACTIONS TO ENSURE COMPLIANCE WITH THE SCHOOL DISTRICT'S CODE  OF  ETHICS
 AS  ESTABLISHED  IN  SUBDIVISION  FORTY-THREE OF SECTION SIXTEEN HUNDRED
 FOUR OF THIS TITLE. The community districts of such city school district
 shall obtain an annual audit by the bureau of  audit  of  the  board  of
 education  of  the city school district of the city of New York or by an
 independent  certified  public  accountant  or  an  independent   public
 accountant. A copy of the audit report in form prescribed by the commis-
 sioner  and certified by the accountant, or, in the city school district
 of the city of New York or  the  community  districts  therein,  by  the
 accountant,  or  the comptroller or bureau of audit, as the case may be,
 shall be furnished to the commissioner on or  before  October  fifteenth
 following  the  end  of the fiscal year audited, except that such report
 shall be furnished to  the  commissioner  on  or  before  January  first
 following  the  end  of  the  fiscal  year  audited  for the city school
 districts of the cities of Buffalo, Rochester,  Syracuse,  Yonkers,  and
 New York and for the community school districts of the city of New York.
   §  5.  This act shall take effect on the first of July next succeeding
 the date on which it shall have become a law  and  shall  apply  to  the
 following  school  year.  Effective immediately, the addition, amendment
 and/or repeal of any rule or regulation necessary for the implementation
 of this act on its effective date are authorized and directed to be made
 and completed on or before such effective date.