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![handle is hein.nyscompop/nyscomo2008 and id is 1 raw text is: Opinion 2008- 1
Opinion 2008 - 1
This opinion represents the views of the Office of the State Comptroller at the
time it was rendered. The opinion may no longer represent those views if, among
other things, there have been subsequent court cases or statutory amendments
that bear on the issues discussed in the opinion.
CONFLICTS OF INTEREST-- Contracts (gifts to school district) -- Exceptions
(contracts with not-for-profit-corporations)
GENERAL MUNICIPAL LAW §§ 800(2), 802(1)(f), 803: A school board
member would not have a prohibited conflict of interest under article 18 of the
General Municipal Law if he or she also served as a trustee on the board of
trustees of a not-for-profit foundation that raises money and makes gifts to the
school district. The school board member, however, should not participate in
school board discussions or decisions relating to gifts from, or other matters
involving, the not-for-profit foundation for which the board member serves as a
trustee and, assuming disclosure is not otherwise required by General Municipal
Law § 803, should disclose his or her relationship with the not-for-profit entity.
You ask whether there would be a conflict of interest under article 18 of the
General Municipal Law if a member of the board of education of a union free
school district also served as a member of the board of trustees of a
not-for-profit foundation that raises money and makes gifts to the school
district. The gifts made by the foundation would be formally accepted on behalf
of the school district by resolution of the board of education (see Education
Law § 1709 [12]).
Article 18 of the General Municipal Law (§§ 800 et seU.) contains provisions of
law that relate to conflicts of interest of municipal officers and employees,
including school district officers and employees (General Municipal Law § 800
[4], [5]). Pursuant to General Municipal Law § 800 (3), a municipal officer or
employee has an interest in any contract with his or her municipality if the
officer or employee receives a direct or indirect pecuniary or material benefit as
a result of that contract. In addition, irrespective of whether an officer or
employee receives a direct or indirect pecuniary benefit from a contract, an
officer or employee is deemed to have an interest in any contract of a firm,
partnership or association of which the municipal officer or employee is an
employee or member, and any contract of a corporation of which the municipal
officer or employee is an officer, director, employee or stockholder (General
Municipal Law § 800 [3] [b], [c], [d]). A contract for this purpose means any
claim, account or demand against or agreement with the municipality, whether
express or implied (General Municipal Law § 800 [2]).
Pursuant to General Municipal Law §801(1), unless an exception set forth in
General Municipal Law § 802 applies, an interest in a contract is prohibited if
the officer or employee, individually, or as a member of a board, has any of the
following powers or duties listed in General Municipal Law §801: (a) negotiate,
prepare, authorize or approve the contract or approve payments thereunder; (b)
audit bills or claims under the contract; or (c) appoint an officer or employee
who has any such powers or duties. Any contract willfully entered into in which
there is a prohibited interest is null, void and wholly unenforceable (General
Opinion 2008 - 1](ViewImageLocal?handle=hein.nyscompop/nyscomo2008&div=1&collection=&method=preview&ext=.png&size=3)