Bill Text: NJ S1605 | 2010-2011 | Regular Session | Introduced
Bill Title: Penalizes certain activities; prohibits holding more than one elective public office; addresses activities during and after elective public office; restricts campaign contribution use; restricts certain benefits; regulates gifts to public officials.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-03-04 - Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee [S1605 Detail]
Download: New_Jersey-2010-S1605-Introduced.html
Sponsored by:
Senator JEFF VAN DREW
District 1 (Cape May, Atlantic and Cumberland)
SYNOPSIS
Penalties certain activities; prohibits holding more than one elective public office; addresses activities during and after elective public office; restricts campaign contribution use; restricts certain benefits; regulates gifts to public officials.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the standards applicable to the conduct and benefits of elected and other public officials, amending and supplementing various parts of the statutory law and repealing sections 2 and 3 of P.L.2003, c.255.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. N.J.S.2C:51-2 is amended to read as follows:
2C:51-2. Forfeiture of Public Office, Position, or Employment.
a. A person holding any public office, position, or employment, elective or appointive, under the government of this State or any agency or political subdivision thereof, who is convicted of an offense shall forfeit such office, position or employment if:
(1) He is convicted under the laws of this State of an offense involving dishonesty or of a crime of the [third] fourth degree or above or under the laws of another state or of the United States of an offense or a crime which, if committed in this State, would be such an offense or crime;
(2) He is convicted of an offense involving or touching such office, position or employment; or
(3) The Constitution so provides.
As used in this subsection, "involving or touching such office, position or employment" means that the offense was related directly to the person's performance in, or circumstances flowing from, the specific public office, position or employment held by the person.
b. A court of this State shall enter an order of forfeiture pursuant to subsection a.:
(1) Immediately upon a finding of guilt by the trier of fact or a plea of guilty entered in any court of this State unless the court, for good cause shown, orders a stay of such forfeiture pending a hearing on the merits at the time of sentencing; or
(2) Upon application of the county prosecutor or the Attorney General, when the forfeiture is based upon a conviction of an offense under the laws of another state or of the United States. An order of forfeiture pursuant to this paragraph shall be deemed to have taken effect on the date the person was found guilty by the trier of fact or pled guilty to the offense.
c. No court shall grant a stay of an order of forfeiture pending appeal of a conviction or forfeiture order unless the court is clearly convinced that there is a substantial likelihood of success on the merits. If the conviction be reversed or the order of forfeiture be overturned, he shall be restored, if feasible, to his office, position or employment with all the rights, emoluments and salary thereof from the date of forfeiture.
Any official action taken by the convicted person on or after the date as of which a forfeiture of the person's office shall take effect shall, during a period of 60 days following the date on which an order of forfeiture shall have been issued hereunder, be voidable by the person's successor in office or, if the office of the person was that of member of the governing body of a county, municipality or independent authority, by that governing body.
d. In addition to the punishment prescribed for the offense, and the forfeiture set forth in subsection a. of N.J.S.2C:51-2, any person convicted of an offense involving or touching on his public office, position or employment or convicted under the laws of this State of an offense involving dishonesty or of a crime of the fourth degree or above or under the laws of another state or of the United States of an offense or crime which, if committed in this State, would be such an offense or crime shall be forever disqualified from holding any office or position of honor, trust or profit under this State or any of its administrative or political subdivisions. As used in this subsection, "involving or touching on his public office, position or employment" means that the offense was related directly to the person's performance in, or circumstances flowing from, the specific public office, position or employment held by the person.
e. Any forfeiture or disqualification under subsection a., b. or d. which is based upon a conviction of a disorderly persons or petty disorderly persons offense may be waived by the court upon application of the county prosecutor or the Attorney General and for good cause shown.
f. Except as may otherwise be ordered by the Attorney General as the public need may require, any person convicted of an offense under section 97 of P.L.1999, c.440 (C.2C:21-34), N.J.S.2C:27-2, N.J.S.2C:27-3, N.J.S.2C:27-5, section 100 of P.L.1999, c. 440 (C.2C:27-9), section 5 of P.L.2003, c.255 (C.2C:27-10), section 6 of P.L.2003, c.255 (C.2C:27-11), N.J.S.2C:29-4, N.J.S.2C:30-2, or N.J.S.2C:30-3 of this Title shall be ineligible, either directly or indirectly, to submit a bid, enter into any contract, or to conduct any business with any board, agency, authority, department, commission, public corporation, or other body of this State, of this or one or more other states, or of one or more political subdivisions of this State for a period of, but not more than, 10 years from the date of conviction for a crime of the second degree, or five years from the date of conviction for a crime of the third degree. It is the purpose of this subsection to bar any individual convicted of any of the above enumerated offenses and any business, including any corporation, partnership, association or proprietorship in which such individual is a principal, or with respect to which such individual owns, directly or indirectly, or controls 5% or more of the stock or other equity interest of such business, from conducting business with public entities.
The State Treasurer shall keep and maintain a list of all corporations barred from conducting such business pursuant to this section.
g. In any case in which the issue of forfeiture is not raised in a court of this State at the time of a finding of guilt, entry of guilty plea or sentencing, a forfeiture of public office, position or employment required by this section may be ordered by a court of this State upon application of the county prosecutor or the Attorney General or upon application of the public officer or public entity having authority to remove the person convicted from his public office, position or employment. The fact that a court has declined to order forfeiture shall not preclude the public officer or public entity having authority to remove the person convicted from seeking to remove or suspend the person from his office, position or employment on the ground that the conduct giving rise to the conviction demonstrates that the person is unfit to hold the office, position or employment.
(cf: P.L. 2007, c.49, s.5)
2. a. The provision of section 1 of P.L. , c. (pending before the Legislature as this bill) amending subsection a. of N.J.S.2C:51-2 with regard to the forfeiture of office for conviction of a crime of the fourth degree shall apply to a crime committed on or after the effective date of P.L. , c. (pending before the Legislature as this bill).
b. The provision of section 1 of P.L. , c. (pending before the Legislature as this bill) amending subsection d. of N.J.S.2C:51-2 with regard to the disqualification from holding an office or position of honor, trust or profit shall apply to offenses or crimes committed on or after the effective date of P.L. , c. (pending before the Legislature as this bill).
3. R.S.19:3-5 is amended to read as follows:
19:3-5. No person shall hold at the same time more than one of the following offices: elector of President and Vice-President of the United States, member of the United States Senate, member of the House of Representatives of the United States, member of the Senate or of the General Assembly of this State, county clerk, register, surrogate or sheriff.
No person shall hold the office of member of the Senate or the General Assembly of this State and, at the same time, hold any other elective public office in this State[, except that any person who holds the office of member of the Senate or the General Assembly and, at the same time, holds any other elective public office on the effective date of P.L.2007, c.161 may continue to hold that office of member of the Senate or that office of member of the General Assembly, and may hold that other elective public office at the same time if service in the Senate or the General Assembly and the other elective office are continuous following the effective date of P.L.2007, c.161] .
No person shall be elected an elector of President and Vice-President of the United States unless he shall possess the qualifications of a legal voter of the State, shall be of the age of 25 years or upwards and shall have been a citizen of the United States seven years next preceding such election.
No person shall be elected a member of the House of Representatives, or an elector of President and Vice-President who shall hold any office of trust or profit under the United States.
(cf: P.L.2007, c.161, s.1)
4. Section 3 of P.L.2007, c.161 (C.19:3-5.2) is amended to read as follows:
3. [a.] For elective public office other than as provided in R.S.19:3-5 or N.J.S.40A:9-4, a person elected to public office in this State shall not hold simultaneously any other elective public office.
[b. Notwithstanding the provision of subsection a. of this section, a person who holds simultaneously more than one elective public office on the effective date of P.L.2007, c.161 may continue to hold the elective public offices simultaneously if service in those elective public offices is continuous following the effective date of P.L.2007, c.161.]
(cf: P.L.2007, c.161, s.3)
5. N.J.S.40A:9-4 is amended to read as follows:
40A:9-4. (1) It shall be unlawful for a person to hold simultaneously an elective county office and an elective municipal office.
(2) It shall be lawful for a member of the Legislature of the State to hold simultaneously any appointive office or position in county or municipal government.
(3) Nothing contained in this section shall be deemed to prevent the incumbent of any office from abstaining from voting in any matter in which the incumbent believes he or she has a conflict of duty or of interest, nor to prevent a challenge of a right to vote on that account under the principles of the common law or any statute.
(4) a. (Deleted by amendment, P.L.2007, c.161).
b. (Deleted by amendment, P.L.2007, c.161).
c. For the purposes of this section the term "elective office" shall mean an office to which an incumbent is elected by the vote of the general electorate.
(5) [Notwithstanding the provision of paragraph (1) of this section, a person who, on the effective date of P.L.2007, c.161, holds simultaneously an elective county office and an elective municipal office may continue to hold the elective offices simultaneously if service in those elective offices is continuous following the effective date of P.L.2007, c.161.
(6)] It shall be lawful for a member of a volunteer fire company, ambulance, first aid, hazardous materials, or rescue squad, including an officer of the company or squad, to serve as an elected official on the governing body of the municipal government wherein the emergency services are provided; however, the volunteer shall recuse himself from any vote concerning the emergency services provider of which he is a member.
(cf: P.L.2009, c.206, s.1)
6. Notwithstanding the provisions of R.S.19:3-5, section 3 of P.L.2007, c.161 (C.19:3-5.2), and N.J.S.40A:9-4 to the contrary, a person who, on the effective date of this act, P.L. , c. (pending before the Legislature as this bill), holds more than one elective public office may continue to simultaneously hold those offices until the expiration of the current term of each office.
7. Section 11 of P.L.1973, c.83 (C.19:44A-11) is amended to read as follows:
11. No contribution of money or other thing of value, nor obligation therefor, including but not limited to contributions, loans or obligations of a candidate himself or of his family, shall be made or received, and no expenditure of money or other thing of value, nor obligation therefor, including expenditures, loans or obligations of a candidate himself or of his family, shall be made or incurred, directly or indirectly, to support or defeat a candidate in any election, or to aid the passage or defeat of any public question, except through:
a. The duly appointed campaign treasurer or deputy campaign treasurers of the candidate committee or joint candidates committee;
b. The duly appointed organizational treasurer or deputy organizational treasurers of a political party committee or a continuing political committee;
c. The duly appointed campaign treasurer or deputy campaign treasurers of a political committee; or
d. The duly appointed organizational treasurer or deputy organizational treasurer of a legislative leadership committee.
It shall be lawful, however, for any person, not acting in concert with any other person or group, to expend personally from his own funds a sum which is not to be repaid to him for any purpose not prohibited by law, or to contribute his own personal services and personal traveling expenses, to support or defeat a candidate or to aid the passage or defeat of a public question; provided, however, that any person making such expenditure shall be required to report his or her name and mailing address and the amount of all such expenditures and expenses, except personal traveling expenses, if the total of the money so expended, exclusive of such traveling expenses, exceeds $500, and also, where the person is an individual, to report the individual's occupation and the name and mailing address of the individual's employer, to the Election Law Enforcement Commission at the same time and in the same manner as a political committee subject to the provisions of section 8 of this act. Such expenditure made during the period between the 13th day prior to the election and the date of the election shall be filed in writing or by telegram within 48 hours of the making, incurring or authorization of the expenditure and shall set forth the name and mailing address of the person, firm or organization to whom or which the expenditure was paid and the amount and purpose of the expenditure.
No contribution of money shall be made in currency, except contributions in response to a public solicitation, provided that cumulative currency contributions of up to $200 may be made to a candidate committee or joint candidates committee, a political committee, a continuing political committee, a legislative leadership committee or a political party committee if the contributor submits with the currency contribution a written statement of a form as prescribed by the commission, indicating the contributor's name, mailing address and occupation and the amount of the contribution, including the contributor's signature and the name and mailing address of the contributor's employer. Adjustments to the $200 limit established in this paragraph which have been made by the Election Law Enforcement Commission, pursuant to section 22 of P.L.1993, c.65 (C.19:44A-7.2), prior to the effective date of P.L.2004, c.28 are rescinded. The $200 limit established in this paragraph shall remain as stated in this paragraph without further adjustment by the commission in the manner prescribed by section 22 of P.L.1993, c.65 (C.19:44A-7.2).
Any anonymous contribution received by a campaign treasurer or deputy campaign treasurer shall not be used or expended, but shall be returned to the donor, if his identity is known, and if no donor is found, the contribution shall escheat to the State.
No person, partnership or association, either directly or through an agent, shall make any loan or advance, the proceeds of which that person, partnership or association knows or has reason to know or believe are intended to be used by the recipient thereof to make a contribution or expenditure, except by check or money order identifying the name, mailing address and occupation or business of the maker of the loan, and, if the maker is an individual, the name and mailing address of that individual's employer; provided, however, that such loans or advances to a single individual, up to a cumulative amount of $50 in any calendar year, may be made in currency.
Each contribution for which the name of the contributor is required to be reported pursuant to the provisions of P.L.1973, c.83 (C.19:44A-1 et seq.) shall be accompanied with a certification that the contributor has not been convicted of a crime under the laws of this State, or of an offense under the laws of another state or the United States that would be a crime in this State, in addition to any other information concerning the contributor otherwise required. If the certification is not completed, the contribution shall be returned to the contributor within five business days of receipt. If a contributor has been so convicted, the contribution shall be paid by the recipient into the special fund created in subsection d. of section 17 of P.L.1993, c.65 (C.19:44A-11.2) within five business days of receipt of the contribution or information concerning the conviction.
(cf: P.L.2004, c.33, s.2)
8. Section 17 of P.L.1993, c.65 (C.19:44A-11.2) is amended to read as follows:
17. a. All contributions received by a candidate, candidate committee, a joint candidates committee or a legislative leadership committee shall be used only for the following purposes:
(1) the payment of campaign expenses;
(2) contributions to any charitable organization described in section 170(c) of the Internal Revenue Code of 1954, as amended or modified, or nonprofit organization which is exempt from taxation under section 501(c) of the Internal Revenue Code of 1954, except any charitable organization of which the candidate or a member of the candidate's immediate family is a paid officer, director or employee or receives compensation for goods or services provided to the organization;
(3) transmittal to another candidate, candidate committee, or joint candidates committee, or to a political committee, continuing political committee, legislative leadership committee or political party committee, for the lawful use by such other candidate or committee;
(4) the payment of the overhead and administrative expenses related to the operation of the candidate committee or joint candidates committee of a candidate or a legislative leadership committee;
(5) the pro rata repayment of contributors; or
(6) the payment of ordinary and necessary expenses of holding public office.
As used in this subsection, "campaign expenses" means any expense incurred or expenditure made by a candidate, candidate committee, joint candidates committee or legislative leadership committee for the purpose of paying for or leasing items or services used in connection with an election campaign, other than those items or services which may reasonably be considered to be for the personal use of the candidate, any person associated with the candidate or any of the members of a legislative leadership committee; and "member of the candidate's immediate family" means the candidate's spouse, child, parent, or sibling, and the child, parent, or sibling of the candidate's spouse.
b. No contribution received by a candidate or by the candidate committee or joint candidates committee of a candidate may be used for:
(1) the payment of the expenses arising from the furnishing, staffing or operation of an office used in connection with that person's official duties as an elected public official; or
(2) the payment of any expense incurred by the candidate in connection with the candidate's defense of a pending indictment, charge, or complaint in a criminal proceeding for a crime under the laws of this State, or for an offense under the laws of another state or the United States that would be a crime in this State.
c. Any funds remaining in the campaign depository of a candidate's candidate committee or joint candidates committee upon the death of the candidate shall be used only for one or more of the purposes established in subsection a. of this section by the committee's organizational treasurer or deputy treasurer or whoever has control of the depository upon the death of the candidate.
d. (1) A contribution received by a candidate committee or joint candidates committee, or a legislative leadership committee, shall not be used for any purpose permitted under this section, except for the purposes specified in paragraphs (4) or (5) of subsection a. of this section or in paragraph (1) of subsection a. of this section for the payment of campaign expenses already incurred, from the date the candidate or legislative leader is convicted of a crime under the laws of this State, or of an offense under the laws of another state or the United States that would be a crime in this State. Remaining contributions shall be paid into the special fund established in paragraph (2) of this subsection.
(2) There is established within the Department of the Treasury a special fund to be known as the "Election Law Enforcement Commission Enhanced Enforcement Fund". Monies in the fund shall be appropriated exclusively to the Election Law Enforcement Commission for enhanced enforcement of the provisions of "The New Jersey Campaign Contributions and Expenditures Reporting Act," P.L.1973, c.83 (C.19:44A-1 et seq.) and for repayment to contributors who request of the commission a repayment of contributions made within such time frame as the commission shall determine.
(cf: P.L.2007, c.202, s.1)
9. Section 25 of P.L.1954, c.84 (C.43:15A-25) is amended to read as follows:
25. a. The annuity savings fund shall be the fund in which shall be credited accumulated deductions and contributions by members or on their behalf to provide for their allowances. A single account shall be established in this fund for each person who is or shall become a member and all contributions deducted from each such member's compensation shall be credited to [his] this single account [regardless of the number of positions a member might hold or the number of employers as he might have] in accordance with section 10 of P.L. , c. (C. )(pending before the Legislature as this bill).
b. (1) Members enrolled in the retirement system on or after July 1, 1994 shall contribute 5% of compensation to the system. Members enrolled in the system prior to July 1, 1994 shall contribute 5% of compensation to the system effective with the payroll period for which the beginning date is closest to July 1, 1995, provided, however, that any member enrolled before July 1, 1994, whose full contribution rate under the system prior to the revisions by this act was less than 6%, shall pay 4% of compensation to the system effective with the payroll period for which the beginning date is closest to July 1, 1995, and 5% of compensation to the system effective with the payroll period for which the beginning date is closest to July 1, 1996.
(2) Members enrolled in the retirement system on or after July 1, 2007 who are:
employees of the State, other than employees of the Judicial Branch;
employees of an independent State authority, board, commission, corporation, agency or organization;
employees of a local school district, regional school district, county vocational school district, county special services school district, jointure commission, educational services commission, State-operated school district, charter school, county college, any officer, board, or commission under the authority of the Commissioner of Education or of the State Board of Education, and any other public entity which is established pursuant to authority provided by Title 18A of the New Jersey Statutes; or
employees of a State public institution of higher education, other than employees of the University of Medicine and Dentistry of New Jersey shall contribute 5.5% of compensation to the system, and all such members described above enrolled in the system prior to July 1, 2007 shall contribute 5.5% of compensation to the system effective with the payroll period for which the beginning date is closest to July 1, 2007.
Members enrolled in the retirement system on or after July 1, 2008, other than those described in the paragraph above, shall contribute 5.5% of compensation to the system. Members enrolled in the system prior to July 1, 2008, other than those described in the paragraph above, shall contribute 5.5% of compensation to the system effective with the payroll period that begins immediately after July 1, 2008.
c. The retirement system shall certify to each State department or subdivision thereof, and to each branch of the State service not included in a State department, and to every other employer, the proportion of each member's compensation to be deducted and to facilitate the making of deductions the retirement system may modify the deduction required by a member by such an amount as shall not exceed 1/10 of 1% of the compensation upon the basis of which the deduction is to be made.
If payment in full, representing the monthly or biweekly transmittal and report of salary deductions, is not made within 15 days of the due date established by the retirement system, interest at the rate of 6% per annum shall commence to run against the total transmittal of salary deductions for the period on the first day after such fifteenth day.
d. Every employee to whom this act applies shall be deemed to consent and agree to any deduction from his compensation required by this act and to all other provisions of this act. Notwithstanding any other law, rule or regulation affecting the salary, pay, compensation, other perquisites, or tenure of a person to whom this act applies, or shall apply, and notwithstanding that the minimum salary, pay, or compensation or other perquisites provided by law for him shall be reduced thereby, payment, less such deductions, shall be a full and complete discharge and acquittance of all claims and demands for service rendered by him during the period covered by such payment.
(cf: P.L.2007, c.103, s.2)
10. (New section supplementing P.L.1954, c.84; C.43:15A-1 et seq.) a. A member of the Public Employees' Retirement System who is employed concurrently in more than one position covered by the retirement system shall be eligible for membership in the retirement system based upon only one position, and that one position shall be designated by the retirement system. The retirement system shall designate the position providing the higher or highest compensation for the person with such concurrent positions as the basis for eligibility for membership and for the compensation base for contributions and calculations. Contributions shall be deducted only from the compensation for the position so designated and shall be credited to the member's single account established pursuant to section 25 of P.L.1954, c.84 (C.43:15A-25). The designation of one position by the retirement system shall be irrevocable as between or among the positions held at the time the designation is made. A member who, after the designation is made, leaves that position or acquires another position shall receive a new designation from among the positions then held of another position than the designated one provides a higher or the highest compensation. Service in a position other than the designated position shall not be deemed creditable service for the purposes of the retirement system. The designation of one position for membership shall apply to any member of the retirement system who, on the effective date of P.L. , c. (pending before the Legislature as this bill), holds more than one position covered by the retirement system with one or more employers, and shall be made within 90 days after the effective date.
b. The requirement of subsection a. of this section for designation of one position as the basis of membership in the retirement system shall apply in substantially the same manner to a member of the Legislature covered by section 2 of P.L.1972, c.167 (C.43:15A-136). Any benefit to which a member of the Legislature may be entitled based upon contributions to the account specified in section 2 of P.L.1972, c.167 (C.43:15A-136) or in section 25 of P.L.1954, c.84 (C.43:15A-25) shall be determined separately. A member of the Legislature for whom the legislative service is designated as the basis of membership in the retirement system shall not be required to withdraw the member's contributions in the account established pursuant to section 25 of P.L.1954, c.84 (C.43:15A-25) until two years from the date the member discontinues service in the Legislature.
11. Section 1 of P.L.2004, c.34 (C.52:13C-21.4) is amended to read as follows:
1. a. As used in this section, "person" means any member of the Legislature, the Governor, the Lieutenant Governor or the head of a principal department of the Executive Branch.
b. No [person] Governor or head of a principal department of the Executive Branch, within one year next subsequent to the termination of [the] office or employment [of such person], and no member of the Legislature within five years next subsequent to the termination of office, shall register as a "governmental affairs agent" as defined in section 3 of P.L.1971, c.183 (C.52:13C-20).
c. Any person who knowingly and willfully violates the provisions of subsection b. of this section shall be subject to a penalty of not more than $10,000 and shall be barred from activities prohibited under subsection b. for up to an additional five years.
d. Upon receiving evidence of any violation of this section, the Election Law Enforcement Commission shall have the power to hold, or to cause to be held, hearings about the violation and, upon finding any person to have committed a violation, to assess such penalty, within the limits prescribed herein, as it deems proper under the circumstances, which penalty may be collected in a summary proceeding pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
(cf: P.L.2009, c.66, s.39)
12. Section 7 of P.L.1971, c.182 (C.52:13D-18) is amended to read as follows:
7. a. No member of the Legislature shall participate by voting or any other action, on the floor of the General Assembly or the Senate, or in committee or elsewhere, in the enactment or defeat of legislation in which he has a personal interest.
b. A member of the Legislature shall be deemed to have a personal interest in any legislation within the meaning of this section if, by reason of his participation in the enactment or defeat of any legislation, he has reason to believe that he, or a member of his immediate family, will derive a direct monetary gain or suffer a direct monetary loss. No member of the Legislature shall be deemed to have a personal interest in any legislation within the meaning of this section if, by reason of his participation in the enactment or defeat of any legislation, no benefit or detriment could reasonably be expected to accrue to him, or a member of his immediate family, as a member of a business, profession, occupation or group, to any greater extent than any such benefit or detriment could reasonably be expected to accrue to any other member of such business, profession, occupation or group.
c. No member of the Legislature shall knowingly and willfully use that office to obtain or attempt to obtain a specific grant or loan for an employer, or for an employer of a member of the immediate family of the member, or for a client or customer of any partnership, firm, company, association, or corporation the member of the Legislature is associated with, has an ownership interest in, or receives a payment or commission from, if that grant or loan is directly awarded by the Legislature through the annual appropriations act or if the grant or loan is awarded through a program over which the Legislature or its members have substantial authority or control. A member of the Legislature found in violation of this provision shall be guilty of a crime of the third degree, in addition to other penalties that may be imposed pursuant to the "New Jersey Conflicts of Interest Law," P.L.1971, c.182 (C.52:13D-12 et seq.).
(cf: P.L.2004, c.23, s.1)
13. Section 13 of P.L.1971, c.182 (C.52:13D-24) is amended to read as follows:
13. a. No State officer or employee, special State officer or employee, or member of the Legislature shall solicit, receive or agree to receive, whether directly or indirectly, any compensation, reward, employment, gift, honorarium, out-of-State travel or subsistence expense or other thing of value from any source other than the State of New Jersey, for any service, advice, assistance, appearance, speech or other matter related to the officer, employee, or member's official duties, except as authorized in this section.
b. A State officer or employee, special State officer or employee, or member of the Legislature may, in connection with any service, advice, assistance, appearance, speech or other matter related to the officer, employee, or member's official duties, solicit, receive or agree to receive, whether directly or indirectly, from sources other than the State, the following:
(1) reasonable fees for published books on matters within the officer, employee, or member's official duties [;].
(2) [reimbursement or payment of actual and reasonable expenditures for travel or subsistence and allowable entertainment expenses associated with attending an event in New Jersey if expenditures for travel or subsistence and entertainment expenses are not paid for by the State of New Jersey;
(3) reimbursement or payment of actual and reasonable expenditures for travel or subsistence outside New Jersey, not to exceed $500.00 per trip, if expenditures for travel or subsistence and entertainment expenses are not paid for by the State of New Jersey. The $500 per trip limitation shall not apply if the reimbursement or payment is made by (a) a nonprofit organization of which the officer, employee, or member is, at the time of reimbursement or payment, an active member as a result of the payment of a fee or charge for membership to the organization by the State or the Legislature in the case of a member of the Legislature; (b) a nonprofit organization that does not contract with the State to provide goods, materials, equipment, or services; or (c) any agency of the federal government, any agency of another state or of two or more states, or any political subdivision of another state.
Members of the Legislature shall obtain the approval of the presiding officer of the member's House before accepting any reimbursement or payment of expenditures for travel or subsistence outside New Jersey.
As used in this subsection, "reasonable expenditures for travel or subsistence" means commercial travel rates directly to and from an event and food and lodging expenses which are moderate and neither elaborate nor excessive; and "allowable entertainment expenses" means the costs for a guest speaker, incidental music and other ancillary entertainment at any meal at an event, provided they are moderate and not elaborate or excessive, but does not include the costs of personal recreation, such as being a spectator at or engaging in a sporting or athletic activity which may occur as part of that event.] free attendance at a widely attended convention, conference, symposium, forum, panel discussion, dinner, viewing, reception, or similar event, provided by the sponsor of the event, if the officer, employee, or member participates in the event as a speaker or a panel participant, by presenting information related to State government or matters before State government, or by performing a ceremonial function appropriate to his or her official position, and attendance at the event is appropriate to the performance of the official duties or representative function of the officer, employee, or member.
An officer, employee, or member who attends an event described in this subsection may accept a sponsor's unsolicited offer of free attendance at the event for an accompanying individual.
Members of the Legislature shall obtain the approval of the presiding officer of the member's House before accepting free attendance for a widely attended convention, conference, symposium, forum, panel discussion, dinner, viewing, reception, or similar event outside New Jersey.
As used in the subsection, the term "free attendance" shall include, but not be limited to, a waiver of all or part of a conference or other fee, or the provision of food, beverages, entertainment, and instructional materials furnished to all attendees as an integral part of the event. The term shall not include the provision of transportation or entertainment collateral to the event, nor shall it include food or beverages taken other than in a group setting with all or substantially all other attendees.
c. This section shall not apply to the solicitation or acceptance of contributions to the campaign of an announced candidate for elective public office, except that campaign contributions may not be accepted if they are known to be given in lieu of a payment prohibited pursuant to this section.
d. (1) Notwithstanding any other provision of law, a designated State officer as defined in paragraph (2) of this subsection shall not solicit, receive or agree to receive, whether directly or indirectly, any compensation, salary, honorarium, fee, or other form of income from any source, other than the compensation paid or reimbursed to him or her by the State for the performance of official duties, for any service, advice, assistance, appearance, speech or other matter, except for investment income from stocks, mutual funds, bonds, bank accounts, notes, a beneficial interest in a trust, financial compensation received as a result of prior employment or contractual relationships, and income from the disposition or rental of real property, or any other similar financial instrument and except for [reimbursement for travel] an offer of free attendance as authorized in [subsections] subsection (2) [and (3)] of paragraph b. of this section. To receive such income, a designated State officer shall first seek review and approval by the State Ethics Commission to ensure that the receipt of such income does not violate the "New Jersey Conflicts of Interest Law," P.L.1971, c.182 (C.52:13D-12 et seq.) or any applicable code of ethics, and does not undermine the full and diligent performance of the designated State officer's duties.
(2) For the purposes of this subsection, "designated State officer" shall include: the Governor, the Adjutant General, the Secretary of Agriculture, the Attorney General, the Commissioner of Banking and Insurance, the director of the Division of Business Assistance, Marketing, and International Trade, the Commissioner of Community Affairs, the Commissioner of Corrections, the Commissioner of Education, the Commissioner of Environmental Protection, the Commissioner of Health and Senior Services, the Commissioner of Human Services, the Commissioner of Children and Families, the Commissioner of Labor and Workforce Development, the President of the State Board of Public Utilities, the Secretary of State, the Superintendent of State Police, the Commissioner of Transportation, the State Treasurer, the head of any other department in the Executive Branch, and the following members of the staff of the Office of the Governor: Chief of Staff, Chief of Management and Operations, Chief of Policy and Communications, Chief Counsel to the Governor, Director of Communications, Policy Counselor to the Governor, and any deputy or principal administrative assistant to any of the aforementioned members of the staff of the Office of the Governor listed in this subsection.
e. A violation of this section shall not constitute a crime or offense under the laws of this State.
(cf: P.L.2008, c.29, s.105)
14. (New section supplementing P.L.1971, c. 182; C.52:13D-12 et seq.) a. Unless otherwise specifically prohibited or restricted pursuant to section 13 of P.L.1971, c.182 (C.52:13D-24) or any other law, a State officer or employee, special State officer or employee, or member of the Legislature shall not accept a gift that the officer, employee, or member reasonably and in good faith believes to have a value of $50 or more, and the cumulative value of gifts accepted from one source in each calendar year shall not exceed $100. A gift having a value of $10 or less shall not be counted toward the $100 limit. Formal recordkeeping of all gifts received shall not required of each officer, employee, or member by this section, but each officer, employee, or member shall make a good faith effort to comply with this section.
For the purposes of this section, "gift" shall include a gratuity, favor, discount, entertainment, hospitality, loan, forbearance, service, training, transportation, lodging or meals, whether provided in kind, by purchase in advance, or reimbursement, and any other thing of value.
b. A gift to a member of the immediate family of a State officer or employee, special State officer or employee, or member of the Legislature, or any other individual based on the individual's relationship with the officer, employee, or member, shall be treated as a gift to the officer, employee, or member for the purposes of this section if it is given with the knowledge and acquiescence of the officer, employee, or member and the officer, employee, or member has reason to believe that the gift was given as a result of his official position.
c. The value of perishable food sent to an office shall be allocated among all recipients. If food or beverages are provided at the same time to an officer, employee, or member and a member of the immediate family, only the food or beverages provided to the officer, employee, or member shall be treated as a gift for the purposes of this section.
d. This section shall not apply to:
(1) Anything for which the State officer or employee, special State officer or employee, or member of the Legislature pays the fair market value, or does not use and promptly returns to the donor.
(2) The solicitation or acceptance of contributions to the campaign of an announced candidate for elective public office, except that campaign contributions may not be accepted if they are known to be given in lieu of a payment prohibited pursuant to this section.
(3) A gift from a relative. As used in this section, "relative" means: parent, spouse, child, sibling, uncle, aunt, great aunt or uncle, first cousin, nephew, niece, grandparent, grandchild, father- or mother-in-law, son- or daughter-in-law, brother- or sister-in-law, stepparent, stepchild, stepbrother or sister, half brother or sister, spouse's grandparent, fiance or fiancee.
(4) Anything provided by an individual on the basis of a personal friendship unless the officer, employee, or member has reason to believe that, under the circumstances, the gift was provided because of his official position and not because of the personal friendship. In determining whether a gift is provided on the basis of personal friendship, the officer, employee, or member shall consider the circumstances under which the gift was offered, such as the history of the relationship with the individual giving the gift, including any previous exchange of gifts between them, actual knowledge that the individual who gave the gift personally paid for the gift or sought a tax deduction or business reimbursement for the gift, and actual knowledge that the individual who gave the gift also gave the same or similar gifts to other officers, employees, or members.
An officer, employee, or member shall not accept a gift on the basis of personal friendship if the value of the gift exceeds $250, unless the State Ethics Commission or the Joint Legislative Committee on Ethical Standards, as appropriate, issues a written determination authorizing the acceptance of that gift. A determination under this paragraph is not required for gifts given on the basis of the familial relationship exception in paragraph (3) of this subsection.
(5) Food, beverages, lodging, transportation, and other benefits (a) resulting from the outside business or employment activities of the officer, employee, or member or other outside activities that are not connected to his official duties as an officer, employee, or member, or of his spouse, if such benefits have not been offered or enhanced because of his official position and are customarily provided to others in similar circumstances, (b) customarily provided by a prospective employer in connection with bona fide employment discussions, or (c) provided by a political organization described in section 527(e) of the Internal Revenue Code of 1986, 26 U.S.C. s.527(e) in connection with a fundraising or campaign event sponsored by such organization.
(6) Pension and other benefits resulting from continued participation in an employee welfare and benefits plan maintained by a former employer.
(7) Informational materials that are sent to the office of the officer, employee, or member in the form of books, articles, periodicals, other written materials, audiotapes, videotapes, or other forms of communication.
(8) Awards or prizes that are given to competitors in contests or events open to the public, including random drawings.
(9) Honorary degrees from accredited institutions of learning and other bona fide, nonmonetary awards presented in recognition of public service.
(10) Training, including food and beverages furnished to all attendees as an integral part of the training.
(11) Bequests, inheritances, and other transfers at death.
(12) Anything that is paid for by the federal government, or by a State or local government, or secured by the government under a government contract.
(13) Opportunities and benefits that are: (a) available to the public or to a class consisting of all State employees, whether or not restricted on the basis of geographic consideration; (b) offered to members of a group or class in which membership is unrelated to State employment service; (c) offered to members of an organization, such as an employees' association or State credit union, in which membership is related to State employment and similar opportunities are available to large segments of the public through organizations of similar size; (d) offered to a group or class that is not defined in a manner that specifically discriminates among State employees on the basis of branch of government or type of responsibility, or on a basis that favors those of higher rank or rate of pay; (e) in the form of loans from banks and other financial institutions on terms generally available to the public, or (f) in the form of reduced membership or other fees for participation in organization activities offered to all State employees by professional organizations if the only restrictions on membership relate to professional qualifications.
(14) A plaque, trophy, or other item that is substantially commemorative in nature and that is intended for presentation.
(15) Food or beverages of a nominal value offered other than as a part of a meal.
(16) Anything for which, in an unusual case, a waiver is granted by the State Ethics Commission or the Joint Legislative Committee on Ethical Standards, as appropriate.
e. An officer, employee, or member, or a member of the immediate family thereof, may accept a sponsor's unsolicited offer of free attendance at a charity event, except that reimbursement for transportation and lodging may not be accepted in connection with the event unless:
(1) all of the net proceeds of the event are for the benefit of an organization described in section 501(c)(3) of the Internal Revenue Code of 1986, 26 U.S.C. s. 501(c)(3), and exempt from taxation under section 501(a) of such Code, 26 U.S.C. s. 501(a); and
(2) the offer of free attendance at the event is made by such organization.
As used in this subsection, the term "free attendance'' shall include, but not be limited to, a waiver of all or part of a conference or other fee, or the provision of food, beverages, entertainment, and instructional materials furnished to all attendees as an integral part of the event. The term shall not include entertainment collateral to the event, nor shall it include food or beverages taken other than in a group setting with all or substantially all other attendees.
f. When it is not practicable to return a tangible item because it is perishable, the item may, at the discretion of the recipient, be given to an appropriate charity or destroyed.
15. (New section supplementing P.L.1971, c.182; C.52:13D-24.1) a. A State officer or employee, special State officer or employee, or member of the Legislature shall not receive an advance payment on copyright royalties. A literary agent, researcher, or other individual, other than an individual employed by the State or the Legislature, or a relative as defined in paragraph (3) of subsection d. of section 14 of P.L. , c. (C. ) (now pending before the Legislature as this bill) of an officer, employee, or member, working on behalf of an officer, employee, or member with respect to a publication may receive an advance payment of a copyright royalty directly from a publisher and solely for the benefit of that literary agent, researcher, or other individual.
b. A State officer or employee, special State officer or employee, or member of the Legislature shall not receive copyright royalties under a contract entered into on or after January 1, 2010, unless that contract is first approved by the State Ethics Commission or the Joint Legislative Committee on Ethical Standards, as appropriate, to ensure that royalties are being received from an established publisher under usual and customary contractual terms.
16. (New section supplementing P.L.1979, c.391; C.18A:16-12 et seq.) Notwithstanding any other provision of law to the contrary, a person holding elective public office who, because of service in that office and service in another public office or employment, would be eligible for health care coverage under more than one plan or program shall select coverage under only one such plan or program.
17. (New section supplementing Title 40A of the New Jersey Statutes) Notwithstanding any other provision of law to the contrary, a person holding elective public office who, because of service in that office and service in another public office or employment, would be eligible for health care coverage under more than one plan or program shall select coverage under only one such plan or program.
18. (New section supplementing P.L.1961, c.49; C.52:14-17.25 et seq.) Notwithstanding any other provision of law to the contrary, a person holding elective public office who, because of service in that office and service in another public office or employment, would be eligible for health care coverage under more than one plan or program shall select coverage under only one such plan or program.
19. Sections 2 and 3 of P.L.2003, c.255 (C.52:13D-24.1 and C.52:13C-21b) are repealed.
20. This act shall take effect on the 30th day following enactment, and sections 16, 17, and 18 shall be applicable to elected public officials enrolled in a health care plan or program sponsored by a government entity on the effective date of this act and thereafter.
STATEMENT
This bill, which may be known and referred to as the "Ethical Standards of Conduct Reform Act," addresses the standards applicable to the conduct and benefits of elected and other public officials to ensure that public officials serve the public and fulfill their responsibilities with integrity.
Sections 1 and 2 - N.J.S.2C:51-2 currently provides that a person holding any public office, position, or employment must forfeit the office, position, or employment if he is (1) convicted of an offense involving dishonesty, (2) convicted of a crime of the third degree or above, or (3) convicted of an offense involving or touching the office, position or employment, or (4) if the State Constitution so provides.
In addition to the forfeiture provision in N.J.S.2C:51-2, the statute also provides that a person is permanently disqualified from holding any office, position, or employment of honor, trust or profit under this State or any of its administrative or political subdivisions if that person has been convicted of an offense involving or touching on the public office, position or employment.
These provisions of the bill would provide that a person must also forfeit the public office, position, or employment if he is convicted of a crime of the fourth degree or above, and that a person would be permanently disqualified from holding any office, position, or employment in the future if he has been convicted of an offense involving dishonesty or of a crime of the fourth degree or above. These provisions would apply to a crime committed on or after the effective date of the bill.
Sections 3 through 6 - These provisions of the bill would prohibit the continued simultaneous holding of more than one elective public office in this State by an official who held more than one such office on February 1, 2008. Current law permits such elected officials to continue to hold these offices simultaneously as long as the service is continuous. An elected official who simultaneously holds more than one elective public office on the bill's effective date would be able to continue to serve in those offices only until the end of the term of each such office held.
Section 7 - This provision of the bill would require each campaign contribution for which the name of the contributor is required to be reported to the Election Law Enforcement Commission to be accompanied with a certification stating that the contributor has not been convicted of a crime in this State or another jurisdiction. If the certification is not completed, the contribution is to be returned to the contributor. If the contributor has been so convicted, the contribution is to be paid by the recipient into a special fund called the "Election Law Enforcement Commission Enhanced Enforcement Fund" in the Department of the Treasury and appropriated exclusively for the use of the commission and for the repayment of contributors under certain circumstances.
Section 8 - This provision of the bill would provide that no contribution received by a candidate for elective public office can be used for the payment of expenses arising from a legal defense in a criminal proceeding. This provision would also prohibit the use of campaign contributions by a candidate committee or legislative leadership committee for any permitted purpose other than for the payment of overhead and administrative expenses of the committee, the repayment of contributions and the payment of campaign expenses already incurred, from the date the candidate or legislative leader is convicted of a crime in this State or another jurisdiction. Remaining contributions would be paid into the "Election Law Enforcement Commission Enhanced Enforcement Fund" in the Department of the Treasury and appropriated exclusively for the use of the commission and for the repayment of contributors under certain circumstances.
Sections 9 and 10 - These provisions of the bill would provide that a person will be eligible for membership in the Public Employees' Retirement System (PERS) based upon only one position at any time. In the case of a person, including a member of the Legislature, who holds more than one position at a time, the retirement system is to designate the position providing the higher or highest compensation as the basis for membership and as the compensation base for contributions and calculations. This provision would apply to a person holding more than one position on the bill's effective date.
Section 11 - This provision of the bill would prohibit members of the Legislature from working as a governmental affairs agent for five years after service in office is completed. Current law imposes a one-year prohibition.
Section 12 - This provision of the bill would prohibit a member of the Legislature from using that office to seek a specific grant or loan for an employer, or for an employer of a member of the immediate family, or for a client or customer of a partnership, firm, company, association, or corporation the member of the Legislature is associated with, has an ownership interest in, or receives a payment or commission from, if that grant or loan is directly awarded by the Legislature through the annual appropriations act or if the grant or loan is awarded through a program over which the Legislature or its members have substantial authority or control. A member of the Legislature found to be in violation of this provision would be guilty of a crime of the third degree, in addition to any other penalties that may be imposed pursuant to the "New Jersey Conflicts of Interest Law."
Sections 13 through 15 - These provisions of the bill would revise restrictions on the acceptance of things of value by members and employees of the Legislature and officers and employees of the Executive Branch. Under the bill, a State officer or employee, special State officer or employee, or member of the Legislature could accept a gift that the officer, employee, or member reasonably and in good faith believes to have a value of less than $50, but the cumulative value of gifts from one source could not exceed $100 in each calendar year. A gift having a value of less than $10 would not be counted toward the $100 limit. These new restrictions would apply in all cases except those concerning service, advice, assistance, appearance, speech or other matter related to official duties.
The bill lists several exceptions to this rule, including:
(1) anything for which the officer, employee, or member pays the fair market value, or does not use and promptly returns to the donor.
(2) the acceptance of certain campaign contributions.
(3) gifts from relatives, as this term is defined in the bill.
(4) gifts from personal friends, up to a $250 limit. Any gift the value of which exceeds $250 would have to be approved by the Executive Commission on Ethical Standards or the Joint Legislative Committee on Ethical Standards, as the case may be.
(5) food, beverages, transportation, lodging, and other benefits received from outside employment or other activities, or provided by a prospective employer in connection with bona fide employment discussions, or provided by a political organization described in section 527(e) of the federal Internal Revenue code in connection with a fundraising or campaign event sponsored by that organization.
(6) pension and other benefits resulting from an employee benefits plan from a previous employer.
(7) informational materials sent to the office of the officer, employee, or member.
(8) awards or prizes given to competitors in contests or events open to the public.
(9) honorary degrees from accredited institutions of learning and other bona fide, nonmonetary awards presented in recognition of public service.
(10) training.
(11) bequests, inheritance, and other transfers at death.
(12) anything paid for by the federal, State, or local government, or secured by the government under a government contract.
(13) opportunities and benefits generally available to the public or all State employees.
(14) commemorative plaques and trophies.
(15) food or beverages of nominal value.
(16) anything for which a waiver is granted by the Executive Commission on Ethical Standards or the Joint Legislative Committee on Ethical Standards, as the case may be.
(17) free attendance at certain charitable events.
The bill would also prohibit a State officer or employee, special State officer or employee, or member of the Legislature from receiving an advance payment on copyright royalties, and would require the approval of a publishing contract entered into on or after January 1, 2010 by the State Ethics Commission or the Joint Legislative Committee on Ethical Standards.
In addition, the bill would change current restrictions on reimbursement for travel and subsistence connected with the official duties of a State officer or employee, special State officer or employee, or member of the Legislature. Currently, Legislators, State officers or employees and special State officers or employees are allowed to receive reimbursement or payment of reasonable expenditures for travel or subsistence in New Jersey from sources other than the State for official appearances. Reimbursement or payment of expenditures for travel or subsistence outside New Jersey from sources other than the State for official appearances are limited to $500 per trip. Legislators must receive joint approval from the presiding officer and minority leader of their House before accepting reimbursement or payment of expenditures for travel or subsistence outside New Jersey. This bill would change these restrictions, so that Legislators, State officers or employees and special State officers or employees could accept free attendance only at a widely attended convention, conference, symposium, forum, panel discussion, dinner, viewing, reception, or similar event, provided by the sponsor of the event, if the officer, employee, or member participates in the event as a speaker or a panel participant, by presenting information related to State government or matters before State government, or by performing a ceremonial function appropriate to his or her official position, and attendance at the event is appropriate to the performance of the official duties or representative function of the officer, employee, or member. Free attendance would include a waiver of all or part of a conference or other fee, and food, beverages, entertainment, and instructional materials furnished to all attendees as an integral part of the event. It would not include the provision of transportation or entertainment collateral to the event, or food or beverages taken other than in a group setting with all or substantially all other attendees. Legislators would be required to receive joint approval from the presiding officer and minority leader of their House before accepting free attendance for events outside New Jersey.
The bill repeals sections 2 and 3 of P.L.2003, c.255 (C.52:13D-24.1 and C.52:13C-21b) that currently restricts gifts from lobbyists and governmental affairs agents to State officers and employees of the Executive Branch and to members of the Legislature and legislative staff. The provisions of the bill supersede these repealed provisions.
Sections 16 through 18 - These provisions of the bill would require a person holding elective public office who, because of service in that office and service in another public office or employment, is eligible for health care coverage under more than one plan or program to select coverage under only one such plan or program.
