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New York · Through 2026-09-11

N.Y. General Municipal Law § 802: Exceptions

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Where this section sits in the code
  1. General Municipal Law
  2. Article 18. Conflicts of Interest of Municipal Officers and Employees

§ 802. Exceptions. The provisions of section eight hundred one of this

chapter shall not apply to:

1. a. The designation of a bank or trust company as a depository,

paying agent, registration agent or for investment of funds of a

municipality except when the chief fiscal officer, treasurer, or his

deputy or employee, has an interest in such bank or trust company;

provided, however, that where designation of a bank or trust company

outside the municipality would be required because of the foregoing

restriction, a bank or trust company within the municipality may

nevertheless be so designated;

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 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;

c. The designation of a newspaper, including but not limited to an

official newspaper, for the publication of any notice, resolution,

ordinance or other proceeding where such publication is required or

authorized by law;

d. The purchase by a municipality of real property or an interest

therein, provided the purchase and the consideration therefor is

approved by order of the supreme court upon petition of the governing

board;

e. The acquisition of real property or an interest therein, through

condemnation proceedings according to law;

f. A contract with a membership corporation or other voluntary

non-profit corporation or association including, but not limited to,

rural electric cooperatives. For purposes of this paragraph, the term

"rural electric cooperative" shall have the same meaning as the term

"cooperative" as defined in subdivision (a) of section two of the rural

electric cooperative law;

g. The sale of bonds and notes pursuant to section 60.10 of the local

finance law;

h. A contract in which a municipal officer or employee has an interest

if such contract was entered into prior to the time he was elected or

appointed as such officer or employee, but this paragraph shall in no

event authorize a renewal of any such contract;

i. Employment of a duly licensed physician as school physician for a

school district upon authorization by a two-thirds vote of the board of

education of such school district, notwithstanding the fact that such

physician shall have an interest, as defined in section eight hundred

one of this chapter, in such employment.

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 and serves

without salary;

(2) the purchases, in the aggregate, are less than five thousand

dollars in one fiscal year and 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;

(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.

2. 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

controlled directly or indirectly by such officer or employee;

b. A contract for the furnishing of public utility services when the

rates or charges therefor are fixed or regulated by the public service

commission;

c. A contract for the payment of a reasonable rental of a room or

rooms owned or leased by an officer or employee when the same are used

in the performance of his official duties and are so designated as an

office or chamber;

d. A contract for the payment of a portion of the compensation of a

private employee of an officer when such employee performs part time

service in the official duties of the office;

e. A contract in which a municipal officer or employee has an interest

if the total consideration payable thereunder, when added to the

aggregate amount of all consideration payable under contracts in which

such person had an interest during the fiscal year, does not exceed the

sum of seven hundred fifty dollars.

f. A contract with a member of a private industry council established

in accordance with the federal job training partnership act or any firm,

corporation or association in which such member holds an interest,

provided the member discloses such interest to the council and the

member does not vote on the contract.

Collected 2026-09-14T19:32:45Z. Source file · JSON

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