Bill Text: NJ S600 | 2010-2011 | Regular Session | Introduced
Bill Title: Directs ELEC to collect fees from certain firms that employ legislative agents; increases certain penalties imposed by ELEC and Executive Commission on Ethical Standards; dedicates funds to those commissions.
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Introduced - Dead) 2010-01-12 - Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee [S600 Detail]
Download: New_Jersey-2010-S600-Introduced.html
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Senator THOMAS GOODWIN
District 14 (Mercer and Middlesex)
Senator LORETTA WEINBERG
District 37 (Bergen)
Co-Sponsored by:
Senators Baroni and Bateman
SYNOPSIS
Directs ELEC to collect fees from certain firms that employ legislative agents; increases certain penalties imposed by ELEC and Executive Commission on Ethical Standards; dedicates funds to those commissions.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning fees and penalties imposed by the Election Law Enforcement Commission and the Executive Commission on Ethical Standards, supplementing P.L.1971, c.183 (C.52:13C-18 et seq.), and amending various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) The commission shall establish and collect a fee from each firm whose primary business purpose is to employ legislative agents for deposit into the "Campaign Finance and Ethics Law Enforcement Fund" established pursuant to section 2 of P.L. , c. (C. ) (now pending before the Legislature as this bill). The commission, in consultation with the Executive Commission on Ethical Standards, shall set the amount of such fee through the promulgation of regulations, and the amount of the fee shall be based on the number of lobbyists the firm represents, not including nonprofit organizations as described in section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. s.501(c)(3).
2. (New section) a. There is established in the General Fund a non-lapsing, dedicated account to be known as the "Campaign Finance and Ethics Law Enforcement Fund." All money collected as a result of the fee described in section 1 of P.L. , c. (C. ) (now pending before the Legislature as this bill) shall be forwarded by the Election Law Enforcement Commission to the State Treasurer, deposited into that account, and appropriated annually to the Election Law Enforcement Commission and the Executive Commission on Ethical Standards. Forty percent of the funds shall be appropriated for the use of the Election Law Enforcement Commission, and 60 percent of the funds shall be appropriated for the use of the Executive Commission on Ethical Standards. The Election Law Enforcement Commission shall use a portion of the money received to establish and maintain a searchable database of all contributions to candidates for municipal and county elective office, and to municipal and county political committees, that are reported to the commission. The Executive Commission on Ethical Standards shall use the money received to increase its investigatory and enforcement capabilities.
b. Upon notice by the Election Law Enforcement Commission or the Executive Commission on Ethical Standards, there shall be appropriated out of the General Fund such additional sums as may be required to carry out the purposes of each commission, if the sums generated by the fund are inadequate.
3. Section 22 of P.L.1973, c.83 (C.19:44A-22) is amended to read as follows:
22. a. (1) Except as provided in subsection e. or f., any person, including any candidate, treasurer, candidate committee or joint candidates committee, political committee, continuing political committee, political party committee or legislative leadership committee, charged with the responsibility under the terms of this act for the preparation, certification, filing or retention of any reports, records, notices or other documents, who fails, neglects or omits to prepare, certify, file or retain any such report, record, notice or document at the time or during the time period, as the case may be, and in the manner prescribed by law, or who omits or incorrectly states or certifies any of the information required by law to be included in such report, record, notice or document, any person who proposes to undertake or undertakes a public solicitation, testimonial affair or other activity relating to contributions or expenditures in any way regulated by the provisions of this act who fails to comply with those regulatory provisions, and any other person who in any way violates any of the provisions of this act shall, in addition to any other penalty provided by law, be liable to a penalty of not more than $3,000.00 for the first offense and not more than $6,000.00 for the second and each subsequent offense ; except that if a person willfully and knowingly commits a violation, the penalty shall be not more than three times those amounts .
(2) No person shall willfully and [intentionally] knowingly agree with another person to make a contribution to a candidate, candidate committee, joint candidates committee, political committee, continuing political committee, political party committee, or legislative leadership committee with the intent, or upon the condition, understanding or belief, that the recipient candidate or committee shall make or have made a contribution to another such candidate or committee, but this paragraph shall not be construed to prohibit a county or municipal committee of a political party from making a contribution or contributions to any candidate, candidate committee, joint candidates committee, political committee, continuing political committee, political party committee, or legislative leadership committee. A finding of a violation of this paragraph shall be made only upon clear and convincing evidence. A person who violates the provisions of this paragraph shall be liable to a penalty equal to three times the amount of the contribution which that person agreed to make to the recipient candidate or committee.
b. Upon receiving evidence of any violation of this section, the Election Law Enforcement Commission shall have power to hold, or to cause to be held under the provisions of subsection d. of this section, hearings upon such violation and, upon finding any person to have committed such a violation, to assess such penalty, within the limits prescribed in subsection a. of this section, as it deems proper under the circumstances, which penalty shall be paid forthwith into the [State Treasury for the general purposes of the State] "Campaign Finance and Ethics Law Enforcement Fund," established pursuant to section 2 of P.L. , c. (C. ) (now pending before the Legislature as this bill).
c. In assessing any penalty under this section, the Election Law Enforcement Commission may provide for the remission of all or any part of such penalty conditioned upon the prompt correction of any failure, neglect, error or omission constituting the violation for which said penalty was assessed.
d. The commission may designate a hearing officer to hear complaints of violations of this act. Such hearing officer shall take testimony, compile a record and make factual findings, and shall submit the same to the commission, which shall have power to assess penalties within the limits and under the conditions prescribed in subsections b. and c. of this section. The commission shall review the record and findings of the hearing officer, but it may also seek such additional testimony as it deems necessary. The commission's determination shall be by majority vote of the entire authorized membership thereof.
e. Any person who willfully and [intentionally] knowingly makes or accepts any contribution in violation of section 4 of P.L.1974, c.26 (C.19:44A-29) or section 18, 19 or 20 of P.L.1993, c.65 (C.19:44A-11.3, C.19:44A-11.4 or C.19:44A-11.5), shall be liable to a penalty of:
(1) Not more than $5,000.00 or three times the cumulative total amount of those contributions, whichever is greater, if the cumulative total amount of those contributions is less than or equal to $5,000.00;
(2) Not more than $75,000.00 or three times the cumulative total amount of those contributions, whichever is greater, if the cumulative total amount of those contributions was more than $5,000.00 but less than $75,000; and
(3) Not more than $100,000.00 or three times the cumulative total amount of those contributions, whichever is greater, if the cumulative total amount of those contributions is equal to or more than $75,000.00.
f. In addition to any penalty imposed pursuant to subsection e. of this section, a person holding any elective public office shall forfeit that public office if the Election Law Enforcement Commission determines that the cumulative total amount of the illegal contributions was more than $50,000.00 and that the violation had a significant impact on the outcome of the election.
g. Any penalty prescribed in this section shall be enforced in a summary proceeding under ["the penalty enforcement law, "N.J.S.2A:58-1 et seq] "The Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.) .
(cf: P.L.1993, c.65, s.13)
4. Section 16 of P.L.1974, c.26 (C.19:44A-41) is amended to read as follows:
16. a. Any person who willfully and knowingly violates sections 4, 6, 9, 10 or 19 of this act shall in addition to any other penalty provided by law, be liable to a penalty of not more than [$1,000.00] $5,000 for the first offense and not more than [$2,000.00] $10,000 for the second and each subsequent offense.
b. Upon receiving evidence of any violation of sections 4, 6, 9, 10 or 19 of this act, the Election Law Enforcement Commission shall have power to hold, or to cause to be held under the provisions of subsection d. of this section, hearings upon such violation and, upon finding any person to have committed such a violation, to assess such penalty, within the limits prescribed in subsection a. of this section, as it deems proper under the circumstances, which penalty shall be paid forthwith into the [State Treasury for the general purposes of the State] "Campaign Finance and Ethics Law Enforcement Fund," established pursuant to section 2 of P.L. , c. (C. ) (now pending before the Legislature as this bill). Such penalty shall be enforceable in a summary proceeding under the ["Penalty Enforcement Law" (N.J.S.2A:58-1 et seq.)] "The Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
c. In assessing any penalty under this section, the Election Law Enforcement Commission may provide for the remission of all or any part of such penalty conditioned upon the prompt correction of any failure, neglect, error or omission constituting the violation for which said penalty was assessed.
d. The commission may designate a hearing officer to hear complaints of violations of this act. Such hearing officer shall take testimony, compile a record and make factual findings, and shall submit the same to the commission, which shall have power to assess penalties within the limits and under the conditions prescribed in subsection b. of this section. The commission shall review the record and findings of the hearing officer, but it may also seek such additional testimony as it deems necessary. The commission's determination shall be by majority vote of the entire authorized membership thereof.
(cf: P.L.1974, c.26, s.16)
5. Section 8 of P.L.1981, c.129 (C.19:44B-8) is amended to read as follows:
8. a. Any candidate charged with the responsibility under the terms of this act for the filing of any reports or other documents required to be filed pursuant to this act who fails, neglects or omits to file any such report or document at the time and in the manner prescribed by law, or who omits or incorrectly states any of the information required by law to be included in such report or document, shall, in addition to any other penalty provided by law, be liable to a penalty of not more than [$1,000.00] $5,000 for the first offense and not more than [$2,000.00] $10,000 for the second and each subsequent offense.
b. Upon receiving evidence of any violation of this section, the Election Law Enforcement Commission shall have power to hold, or to cause to be held, hearings upon such violation and, upon finding any person to have committed such a violation, to assess such penalty, within the limits prescribed in subsection a. of this section, as it deems proper under the circumstance which penalty shall be paid forthwith into the [State Treasury for the general purposes of the State] "Campaign Finance and Ethics Law Enforcement Fund," established pursuant to section 2 of P.L. , c. (C. ) (now pending before the Legislature as this bill). Such penalty shall be enforceable in a summary proceeding under the ["Penalty Enforcement Law" (N.J.S. 2A:58-1 et seq.)] "The Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
c. In assessing any penalty under this section, the Election Law Enforcement Commission may provide for the remission of all or any part of the penalty conditioned upon the prompt correction of any failure, neglect, error or omission constituting the violation for which the penalty was assessed, provided the correction is made on a date prior to the election for which the candidate has filed a declaration of candidacy or petition to appear on the ballot.
(cf: P.L.1981, c.129, s.8)
6. Section 11 of P.L.1991, c.244 (C.52:13C-23.1) is amended to read as follows:
11. Upon receiving evidence
of any violation of P.L.1971, c.183 (C.52:13C-18 et seq.), as amended and
supplemented, the commission shall have power to bring complaint proceedings,
to issue subpoenas for the production of witnesses and documents, and to hold
or to cause to be held by the Office of Administrative Law, hearings upon such
complaint. In addition to any other penalty provided by law, any person who is
found to have committed such a violation shall be liable for civil penalty not
in excess of [$1,000]
$5,000, which penalty may be collected in a summary proceeding pursuant
to ["the penalty enforcement law"
(N.J.S.2A:58-1 et seq.)] "The Penalty
Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.), and shall
be paid into the "Campaign Finance and Ethics Law Enforcement Fund,"
established pursuant to section
2 of P.L. , c. (C. ) (now pending before the Legislature as
this bill).
(cf: P.L.1991, c.244, s.11)
7. Section 10 of P.L.1971, c.182 (C.52:13D-21) is amended to read as follows:
10. (a) The Executive Commission on Ethical Standards created pursuant to P.L.1967, chapter 229 is continued and established in the Department of Law and Public Safety and shall constitute the first commission under P.L.1971, c.182 (C.52:13D-12 et al.).
(b) The commission shall be composed of nine members as follows: seven members appointed by the Governor from among State officers and employees serving in the Executive Branch; and two public members appointed by the Governor, not more than one of whom shall be of the same political party.
Each member appointed from the Executive Branch shall serve at the pleasure of the Governor during the term of office of the Governor appointing the member and until the member's successor is appointed and qualified. The public members shall serve for terms of four years and until the appointment and qualification of their successors, but of the public members first appointed, one shall serve for a term of two years and one shall serve for a term of four years. The Governor shall designate one member to serve as chairman and one member to serve as vice-chairman of the commission.
Vacancies in the membership of the commission shall be filled in the same manner as the original appointments but, in the case of public members, for the unexpired term only. None of the public members shall be State officers or employees or special State officers or employees, except by reason of their service on the commission. A public member may be reappointed for subsequent terms on the commission.
(c) Each member of the said commission shall serve without compensation but shall be entitled to be reimbursed for all actual and necessary expenses incurred in the performance of the member's duties.
(d) The Attorney General shall act as legal adviser and counsel to the said commission. The Attorney General shall upon request advise the commission in the rendering of advisory opinions by the commission, in the approval and review of codes of ethics adopted by State agencies in the Executive Branch and in the recommendation of revisions in codes of ethics or legislation relating to the conduct of State officers and employees in the Executive Branch.
(e) The said commission may, within the limits of funds appropriated or otherwise made available to it for the purpose, employ such other professional, technical, clerical or other assistants, excepting legal counsel, and incur such expenses as may be necessary for the performance of its duties.
(f) The said commission, in order to perform its duties pursuant to the provisions of P.L.1971, c.182 (C.52:13D-12 et al.), shall have the power to conduct investigations, hold hearings, compel the attendance of witnesses and the production before it of such books and papers as it may deem necessary, proper and relevant to the matter under investigation. The members of the said commission and the persons appointed by the commission for such purpose are hereby empowered to administer oaths and examine witnesses under oath.
(g) The said commission is authorized to render advisory opinions as to whether a given set of facts and circumstances would, in its opinion, constitute a violation of the provisions of P.L.1971, c.182 (C.52:13D-12 et al.) or of a code of ethics promulgated pursuant to the provisions of P.L.1971, c.182 (C.52:13D-12 et al.).
(h) The said commission shall have jurisdiction to initiate, receive, hear and review complaints regarding violations, by any State officer or employee or special State officer or employee in the Executive Branch, of the provisions of P.L.1971, c.182 (C.52:13D-12 et al.) or of any code of ethics promulgated pursuant to the provisions of P.L.1971, c.182 (C.52:13D-12 et al.). Any complaint regarding a violation of a code of ethics may be referred by the commission for disposition in accordance with subsection (d) of section 12 of P.L.1971, c.182 (C.52:13D-23).
(i) Any State officer or employee or special State officer or employee found guilty by the commission of violating any provision of P.L.1971, c.182 (C.52:13D-12 et al.) or of a code of ethics promulgated pursuant to the provisions of P.L.1971, c.182 (C.52:13D-12 et al.) shall be fined not less than [$100.00] $500 nor more than [$500.00] $10,000, 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.), and shall be paid into the "Campaign Finance and Ethics Law Enforcement Fund," established pursuant to section 2 of P.L. , c. (C. ) (now pending before the Legislature as this bill), and may be suspended from his office or employment by order of the commission for a period of not in excess of one year. If the commission finds that the conduct of such officer or employee constitutes a willful and continuous disregard of the provisions of P.L.1971, c.182 (C.52:13D-12 et al.) or of a code of ethics promulgated pursuant to the provisions of P.L.1971, c.182 (C.52:13D-12 et al.), it may order such person removed from his office or employment and may further bar such person from holding any public office or employment in this State in any capacity whatsoever for a period of not exceeding five years from the date on which the person was found guilty by the commission.
(j) The remedies provided herein are in addition to all other criminal and civil remedies provided under the law.
(cf: P.L.2003, c.160, s.1)
8. Section 11 of P.L.1971, c.182 (C.52:13D-22) is amended to read as follows:
11. (a) The Joint Legislative Committee on Ethical Standards created pursuant to the provisions of P.L.1967, chapter 229, as continued and established pursuant to P.L.1971, c.182, is continued and established in the Legislative Branch of State Government with the addition of the public members as set forth in this section.
(b) The joint committee shall be composed of 12 members as follows: four members of the Senate appointed by the President thereof, no more than two of whom shall be of the same political party; four members of the General Assembly, appointed by the Speaker thereof, no more than two of whom shall be of the same political party; and four public members, one appointed by the President of the Senate, one appointed by the Speaker of the General Assembly, one appointed by the Minority Leader of the Senate and one appointed by the Minority Leader of the General Assembly. No public member shall be a lobbyist or legislative agent as defined by the "Legislative Activities Disclosure Act of 1971," P.L.1971, c.183 (C.52:13C-18 et seq.), a full-time State employee or an officer or director of any entity which is required to file a statement with the Election Law Enforcement Commission, and no former lobbyist or legislative agent shall be eligible to serve as a public member for one year following the cessation of all activity by that person as a legislative agent or lobbyist. The legislative members shall serve until the end of the two-year legislative term during which the members are appointed. The public members shall serve for terms of two years and until the appointment and qualification of their successors. The terms of the public members shall run from the second Tuesday in January of an even-numbered year to the second Tuesday in January of the next even-numbered year, regardless of the original date of appointment. Notwithstanding the terms of the public members as established in this section, the public members first appointed shall serve from their initial appointments, all of which shall be made not later than the 60th day following the effective date of this act, until the second Tuesday in January of the next even-numbered year. Vacancies in the membership of the joint committee shall be filled in the same manner as the original appointments, but for the unexpired term only. Public members of the joint committee shall serve without compensation, but shall be entitled to be reimbursed for all actual and necessary expenses incurred in the performance of their duties.
(c) The joint committee shall organize as soon as may be practicable after the appointment of its members, by the selection of a chairman and vice chairman from among its membership and the appointment of a secretary, who need not be a member of the joint committee.
(d) The Legislative Counsel in the Office of Legislative Services shall act as legal adviser to the joint committee. He shall, upon request, assist and advise the joint committee in the rendering of advisory opinions by the joint committee, in the approval and review of codes of ethics adopted by State agencies in the Legislative Branch, and in the recommendation of revisions in codes of ethics or legislation relating to the conduct of members of the Legislature or State officers and employees in the Legislative Branch.
(e) The joint committee may, within the limits of funds appropriated or otherwise available to it for the purpose, employ other professional, technical, clerical or other assistants, excepting legal counsel, and incur expenses as may be necessary to the performance of its duties.
(f) The joint committee shall have all the powers granted pursuant to chapter 13 of Title 52 of the Revised Statutes.
(g) The joint committee is authorized to render advisory opinions as to whether a given set of facts and circumstances would, in its opinion, constitute a violation of the provisions of this act, of a code of ethics promulgated pursuant to the provisions of this act or of any rule of either or both Houses which gives the joint committee jurisdiction and the authority to investigate a matter.
(h) The joint committee shall have jurisdiction to initiate, receive, hear and review complaints regarding violations of the provisions of this act or of a code of ethics promulgated pursuant to the provisions of this act. It shall further have such jurisdiction as to enforcement of the rules of either or both Houses of the Legislature governing the conduct of the members or employees thereof as those rules may confer upon the joint committee. A complaint regarding a violation of a code of ethics promulgated pursuant to the provisions of this act may be referred by the joint committee for disposition in accordance with subsection 12(d) of this act.
(i) Any State officer or employee or special State officer or employee in the Legislative Branch found guilty by the joint committee of violating any provisions of this act, of a code of ethics promulgated pursuant to the provisions of this act or of any rule of either or both Houses which gives the joint committee jurisdiction and the authority to investigate a matter shall be fined not less than $500.00 nor more than [$1,500.00] $10,000, which penalty may be collected in a summary proceeding pursuant to ["the penalty enforcement law" (N.J.S.2A:58-1 et seq.),] "The Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.), and shall be paid into the "Campaign Finance and Ethics Law Enforcement Fund," established pursuant to section 2 of P.L. , c. (C. ) (now pending before the Legislature as this bill) and may be reprimanded and ordered to pay restitution where appropriate and may be suspended from his office or employment by order of the joint committee for a period not in excess of 1 year. If the joint committee finds that the conduct of such officer or employee constitutes a willful and continuous disregard of the provisions of this act, of a code of ethics promulgated pursuant to the provisions of this act or of any rule of either or both Houses which gives the joint committee jurisdiction and the authority to investigate a matter, it may order such person removed from his office or employment and may further bar such person from holding any public office or employment in this State in any capacity whatsoever for a period of not exceeding 5 years from the date on which he was found guilty by the joint committee.
(j) A member of the Legislature who shall be found guilty by the joint committee of violating the provisions of this act, of a code of ethics promulgated pursuant to the provisions of this act or of any rule of either or both Houses which gives the joint committee jurisdiction and the authority to investigate a matter shall be fined not less than $500.00 nor more than [$1,500.00] $10,000, which penalty may be collected in a summary proceeding pursuant to ["the penalty enforcement law" (N.J.S.2A:58-1 et seq.),] "The Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.), and shall be paid into the "Campaign Finance and Ethics Law Enforcement Fund," established pursuant to section 2 of P.L. , c. (C. ) (now pending before the Legislature as this bill) and shall be subject to such further action as may be determined by the House of which he is a member. In such cases the joint committee shall report its findings to the appropriate House and shall recommend to the House such further action as the joint committee deems appropriate, but it shall be the sole responsibility of the House to determine what further action, if any, shall be taken against such member.
(cf: P.L.1991, c.505, s.1)
9. This act shall take effect on January 1 next following enactment.
STATEMENT
This bill would direct the Election Law Enforcement Commission to collect a fee from firms that employ legislative agents. The amount of the fee would be set by regulations promulgated by the commission, in consultation with the Executive Commission on Ethical Standards, and would be based on the number of clients, referred to in the statutes as lobbyists, the firm represents, excluding nonprofit organizations. The fee would be deposited into a non-lapsing, dedicated account to be known as the "Campaign Finance and Ethics Law Enforcement Fund," and appropriated annually to the Election Law Enforcement Commission and the Executive Commission on Ethical Standards. Forty percent of the funds in the account would be appropriated for the use of the Election Law Enforcement Commission, and 60 percent of the funds would be appropriated for the use of the Executive Commission on Ethical Standards. The Election Law Enforcement Commission would be required to use a portion of the money received to establish and maintain a searchable database of all contributions to candidates for municipal and county elective office, and to municipal and county political committees, that are reported to it. The Executive Commission on Ethical Standards would be required to use the money received to increase its investigatory and enforcement capabilities. The sponsor's intent is that the money in the fund is to supplement, not replace, the current funding for each commission.
Upon notice by the Election Law Enforcement Commission or the Executive Commission on Ethical Standards, appropriation out of the General Fund would be required for any additional funds needed by the Election Law Enforcement Commission or the Executive Commission on Ethical Standards for their purposes, if the sums generated by the fund were inadequate.
Additionally, the bill increases the maximum amounts of several penalties that may be imposed by the Election Law Enforcement Commission or the Executive Commission on Ethical Standards, and directs those penalties to be paid into the "Campaign Finance and Ethics Law Enforcement Fund."
The bill also changes the phrase "willfully and intentionally" in N.J.S.A.19:44A-22 to "willfully and knowingly," in order to make the language consistent with other references in the statutes.
