“As a municipal officer or employee, your job by its very nature places you in a position of public trust. You are responsible for ensuring that public resources are used in the best interests of the public. You also have a duty to use the limited public resources available to you as effectively and efficiently as possible. When serving in your public capacity, the interests of your municipality must come before your own. In fact and appearance, your actions and interests must be above reproach. This brochure is intended to help you better understand New York State law as it pertains to conflicts of interest, and your responsibilities when your public and private interests conflict.
What is a conflict of interest?
You may have heard of the phrase “conflict of interest.” The phrase can apply in a variety of situations which all have one thing in common: an individual with divided loyalties, such as when a person has to act on behalf of the public in connection with a matter that affects his or her personal interests. Not all conflicts of interest, however, are prohibited by law
What State laws govern conflicts of interest on the part of municipal officers and employees?
In general, conflicts of interest on the part of municipal officers and employees are governed by Article 18 of the General Municipal Law. Among other things, Article 18 regulates your business dealings with your municipality. However, not all of your contracts or relationships with your municipality are prohibited.
Who does the law apply to?
If you are an officer or employee of a municipality, the law applies to you, whether you are paid or unpaid, or a member of a municipal board, commission or agency. The term municipality encompasses almost every type of local government entity, including counties, cities (other than New York City), towns, villages, school districts, BOCES, fire districts, public libraries, town and county improvement districts, urban renewal agencies and industrial development agencies.
What makes a conflict of interest under Article 18?
Article 18 prohibits municipal officers and employees from having interests in contracts with the municipality for which they serve, but only under certain circumstances. In order for a municipal officer or employee to have a prohibited interest in a contract (one that violates the law), four conditions must be met: (1) there must be a contract; (2) the individual must have an interest in the contract; (3) the individual, in his or her public capacity, must have certain powers or duties with respect to the contract; and (4) the situation must not fit within any of the exceptions listed in law. “
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Office of the New York State Comptroller
Division of Local Government and School Accountability, April 2010.