Pursuant to the provisions of Section 806 of the General Municipal Law, the Board of Trustees of the Agriculture and New York State Horse Breeding Development Fund (“the Fund”) promulgates these rules of ethical conduct for the officers and employees of the Fund. These rules shall be in addition to any prohibition of Article 18 of the General Municipal Law, Sections 73 and 74 of the Public Officers Law or any other general or special law relating to ethical conduct and interest in contracts of municipal officers and employees.

Definitions

1.         “Officer” or “employee” means an officer or employee of the Fund, whether paid or unpaid, including members of the Board of Trustees and their appointees.

2.         “Interest” means a pecuniary or material benefit accruing to a officer or employee of the Fund unless the context otherwise requires.

CODE OF ETHICS

OF THE

AGRICULTURE AND NEW YORK STATE

HORSE BREEDING DEVELOPMENT FUND

Standards of Conduct

            Every officer and employee of the Fund shall be subject to and abide by the following standards of conduct:

1.         Gifts

            a.         An officer or employee shall not directly or indirectly solicit any gift or accept or receive any gift having more than nominal value, whether in the form of money, service, loan, travel, entertainment, hospitality, thing or promise, or any other form, under circumstances in which it could reasonably be inferred that the gift was intended to influence him/her in the performance of his/her official duties or was intended as a reward for any official action on his/her part.

            b.         However, nothing herein should be construed as prohibiting the traditional exchange of holiday gifts provided discretion is used to ensure that gifts of value are not accepted by staff employees or officers. Gifts from children that are principally sentimental in nature and of insignificant financial value may be accepted in the spirit in which they are given.

2.         Confidential Information

            An officer or employee shall not disclose confidential information acquired by him/her in the course of his/her official duties or use such information to further his/her personal interest. Moreover, much of the material with which the Fund works is confidential in nature. Employees and Trustees are responsible for protecting the public trust of the Fund. Disclosure of confidential information or material through carelessness or deliberate action can result in disciplinary proceedings against an employee or Trustee.

3.         Representation before the Fund

            An officer or employee shall not receive or enter into any agreement, express or implied, for compensation for services to be rendered, or the buying and selling of products, in relation to any matter before the Fund, which creates a conflict of interest.

4.         Representation before the Fund for a Contingent Fee

            An officer or employee shall not receive or enter into any agreement, express or implied, for compensation for services to be rendered in relation to any matter before the Fund, whereby the compensation is to be dependent or contingent upon any action by the Fund with respect to such matter. 

5.         Disclosure of Interest in Matters before the Fund

            To the extent that he/she knows thereof, a member of the Board of Trustees and any officer or employee of the Fund whether paid or unpaid, who participates in a discussion or gives official opinion to the Fund on any matter before the Fund, shall publicly disclose the nature and extent of any direct or indirect financial or other private interest he/she has in such matters.

6.         Investments in Conflict with Official Duties

            An officer or employee shall not invest or hold any investment directly in any financial, business, commercial or other private transaction that creates a conflict with his/her official duties.

7.         Private Employment

            An officer or employee shall not engage in, solicit, negotiate for or promise to accept private interests when that employment or service creates a conflict with or impairs the proper discharge of his/her official duties.

8.         Future Employment

            An officer or employee shall not, after their termination of service or employment with the Fund, appear before the Fund or any panel or committee of the Fund, in relation to any case, proceeding, or application in which he/she personally participated during the period of his/her service or employment or that was under his/her active consideration. This shall not bar or prevent the timely filing by a present or former officer or employee of any claim, account, demand or suit against the Fund on his/her own behalf or on behalf of any member of his/her family arising out of any personal injury or property damage or for any lawful benefit authorized or permitted by law.

9.         Family Members As Employees

            A member of the Board of Trustees who is an immediate family relative to an employee of the Fund must abstain from sitting in on any action directly relating to said employee, such as contract negotiation, or any act specifically involving said employee.

10.        Nepotism

            Relatives of the Board of Trustees are prohibited from being employed by the Fund. 

            The Fund has determined that it will be in its best interest to:

a.                   Avoid conflicts of interest between work-related and family-related obligations;

b.                   Reduce favoritism or even the appearance of favoritism; and

c.                   Prevent family conflicts from affecting the workplace.

d.                   The Fund will accept employment applications from all interested candidates. However, relatives of a staff member may not be hired if any of the following job relationships would result:

i.                     A supervisor is related to a direct subordinate;

ii.                   The work of one relative is audited by another; and

iii.                  Conflicts of interest exist between either the related persons or the related persons and the Fund or any of its vendors.

e.         A relative is defined as a father, mother, brother, sister, son, daughter, grandfather, grandmother, grandchild, first cousin, nephew, niece, step or in-law equivalents, spouse or domestic partner.

11.        Public Officers Law §74

            Section 74 of the Public Officers Law, which is entitled “Code of Ethics”, establishes general standards of conduct for State officers and employees, which are designed to prevent a conflict between an employee’s personal interests and his or her ability to properly discharge his or her official duties. Any person who violates a provision of this law will be subject to disciplinary action as well as such other penalties as may be prescribed by law. 

12.        Public Officers Law §73

            Section 73 of the Public Officers Law specifically limits State officers and employees in the conduct of business and professional activities with or before State agencies during and after termination of State service. The activities prohibited by law include:

a.                   The appearance or rendition of services in relation to any matter before a State agency, whereby the compensation therefore shall be contingent or dependent upon any action by the agency;

b.                   The appearance or rendition of services, for compensation in any form, against the interests of the State, in any matter before the Court of Claims;

c.                   The sale of goods or services having a value of more than $25 to the State, except pursuant to an award based upon competitive bidding;

d.                   The acceptance of a gift in any form having a value of more than $75, under circumstances in which it could be reasonably inferred that such gift was intended or could tend to influence an employee in the performance of his official duties. (See Section 1(a), above);

e.                   The receipt of compensation in any form for an appearance or rendition of services in relation to any matter before a State agency where such appearance or rendition of services is in connection with the following:

i.                   The purchase, sale, rental, lease of real property, goods or services from, to, or with any State agency;

b.                   Any proceeding relating to rate-making,

c.                   The adoption or repeal of any rule or regulation having the effect of law,

d.                   The obtaining of grants of money or loans,

e.                   Licensing, or

f.                     Any proceeding relating to a franchise provided for in Public Service Law.

13.        Subsequent Employment

            An individual who has left State service is prohibited from carrying on any business with or appearing before the agency by which he or she was employed for two years after resignation or termination. The individual is permanently prohibited from carrying on any business with or appearing before any State agency in regard to matters with which he or she was involved while in State service. (See Section 8, above).

14.        Penalties

            Penalties for violating the law are severe. A person found to be in violation may be subject to a civil penalty of up to $10,000 or be found guilty of a class A misdemeanor.

            In addition to the statutory provisions referred to herein, rules and regulations may be adopted from time to time by the State Ethics Commission which will affect one’s right to engage in outside employment. Should a fund officer or employee wish to engage in any form of outside employment, business or professional activity, it is essential that the matter be discussed with the entire Board of Trustees in order to ascertain whether or not the activity in which one wishes to participate is in violation of any law, rule or policy established by this Fund. In any event, any outside employment or activity cannot be conducted during one’s work hours nor can it be performed, at any time, on State property.

15.        Hatch Act

            Those State employees whose principal employment is in connection with an activity which is financed in whole or part by loans or grants made by the United States or a federal agency are also bound by the provisions of 5 USCA Sections 1501-1508, also known as the “Hatch Act.” This act prohibits such employees from serving as a candidate or campaigning in partisan elections.

16.        Distribution of Code of Ethics

            The executive Director shall cause a copy of the Funds Code of Ethics to be distributed to every officer and employee of the Fund. Each officer and employee elected or appointed thereafter shall be furnished a copy before entering upon the duties of his/her office or employment. In addition, the Executive Director shall ensure that a copy of Article 18 of the General Municipal Law shall be kept posted in any public building under the Fund’s jurisdiction in a place conspicuous to the Fund’s officers and employees.

17.        Penalties

            In addition to any penalty contained in any other provision of law, any person who shall knowingly and intentionally violate any of the provisions of the Board’s Code of Ethics may be fined, suspended or removed from office of employment, as the cause may be, in the manner provided by law.

WHISTLE BLOWER POLICY

The Agriculture and NYS Horse Breeding Development Fund (Fund) requires its board members, officers, employees and representatives to observe high standards of business and personal ethics in the conduct of their duties and responsibilities. 

As part of their ethical responsibilities, Fund board members, officers, employees and representatives are encouraged to report suspected acts of fraudulent or dishonest conduct by Fund board members, officers, employees and representatives to the Executive Director or the Chairman of the Fund. 

Fraudulent or dishonest conduct is any act of wrongdoing, misconduct or malfeasance or other inappropriate behavior by board members, officers, employees and representatives.

Examples of fraudulent or dishonest conduct include but are not limited to:

• Forgery or alteration of official documents
• Fraudulent financial or other types of reporting or representations
• Pursuit of a benefit or advantage in violation of the Fund ethics policy or applicable laws
• Misappropriation or misuse of Fund resources, including but not limited to its funds or other assets
• Authorizing or receiving compensation for goods or services not performed or for hours not worked   

A Whistleblower is a board member, officer, employee or representative who informs the Fund Executive Director or Fund Chairman about any activities that he or she reasonably believes would constitute fraudulent or dishonest conduct as outlined above. The Fund shall use its best efforts to ensure that Whistleblowers are not fired, discharged, demoted, suspended, threatened, harassed, or discriminated against for their good faith whistleblower actions. However, individuals acting as whistleblowers who do not report their allegations of fraudulent or dishonest conduct to the Executive Director or the Fund Chairman shall not be protected by the provisions of this policy.

In the event that suspected dishonest or fraudulent conduct is brought to the attention of a Fund Member officer, that board member or officer is required to report the matter to the Executive Director.

The Executive Director is required to report allegations of fraudulent or dishonest conduct to the Fund Chairman. Any findings or actions taken as a result of a report by a Whistleblower will be communicated back to the Chairman and to the entire governing board of Agriculture & NYS Horse Breeding Development Fund members.

Reasonable care and discretion shall be taken by the Whistleblowers, board members, officers, employees and representatives, to avoid baseless allegations or violations of a person’s rights under the law.

Individuals making allegations with reckless disregard for their truth or falsity are not covered by this policy and not subject to its protections.

Whistleblowers who believe they have been retaliated against for their good faith whistleblower actions may file a written complaint with the Executive Director or the Fund Chairman. The entire Board and the Executive Director shall immediately be made aware of the complaint. Such complaints shall be promptly investigated and appropriate action taken if the allegations in the complaint are substantiated.

This policy shall not diminish any rights or responsibilities afforded individuals under law.

Approved by the Board of Trustees on July 15, 2010