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NYS Comptroller

THOMAS P. DiNAPOLI

The Academy for New York State's Local Officials

Protecting the Public’s Interest: A Tutorial on Local Government Ethics and Transparency in New York State

Module 1 - Conflict of Interest of Municipal Officers and Employees

Text for Video - Violations of Article 18

I often get the question as people are listening to my presentation, "what happens if I do have a prohibited interest in the contract? Are there any consequences as a result of having this situation?" There are actually specific sections in the General Municipal Law that discusses such a situation. This first one is actually in Section 804 of the General Municipal Law which provides that a contract willfully entered into in which there is a prohibited interest is null, void, and wholly unenforceable. Section 805 goes even further by saying that it provides as a misdemeanor sanction for anyone any municipal officer or employee who willfully and knowingly violates the provisions of Article 18 including the prohibition on interest in contract provisions. Finally, a conviction under of Section 805 can also serve as a basis for removal from public office under the Public Officer's Law, Section 36.

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