New Jersey-2014-SCR30-Introduced

A Concurrent Resolution amending the 2008-2009 Legislative Code of Ethics, adopted March 17, 2008, concerning financial disclosures by members of the Legislature.

Be It Resolved by the Senate of the State of New Jersey (the General Assembly concurring):

1. Section 2:14 of the 2008-2009 Legislative Code of Ethics is amended to read as follows:

2:14. a. No later than May 15 of each year, each member of the Senate and General Assembly shall file with the Joint Legislative Committee on Ethical Standards or any successor thereto a financial disclosure statement, on a form to be prescribed by the Joint Legislative Committee on Ethical Standards or its successor, with respect to the member's, the member's spouse's and minor and dependent children's sources of income, received from sources other than the State Legislature, and liabilities, amounts thereof, and interests, during the preceding calendar year. Each member of the Legislature shall have a continuing obligation to report any termination or assumption of public employment by the member or the member's spouse or minor or dependent children within 30 days, which report shall be an addendum to the disclosure statement.

The Joint Legislative Committee on Ethical Standards shall prescribe the information necessary to identification of sources. When an amount is required to be reported, it shall be sufficient to comply with the requirement to disclose whether the amount is less than $10,000, at least $10,000 but less than $25,000, at least $25,000 but less than $50,000, [or] at least $50,000 but less than $100,000, or $100,000 or more. The joint committee shall revise at least once every five years, but not more than every two years, these monetary reporting values for the purpose of recognizing economic changes as reflected by an inflationary index selected by the joint committee. The revisions shall be guided by the change in the index for the period commencing with the month of December preceding the last revision and concluding with the month of December preceding the month the revision is adopted.

The statement shall include an enumeration of:

(1) Each of the following categories of earned income: salaries, bonuses, royalties, fees, commissions and profit sharing paid to the member, the member's spouse or the member's minor or dependent child as an officer, employee, partner, director, trustee, fiduciary or consultant of a named corporation, professional association, partnership [or sole] , proprietorship, trust or estate, including as a shareholder of a professional service corporation;

(2) Each of the following categories of unearned income: rents, dividends, fees, distributions and other income received by the member, the member's spouse or minor or dependent child from named investments, trusts and estates;

(3) Fees and honorariums for personal appearances, speeches or writings received by the member or the member's spouse from named payers;

(4) Reimbursements or prepaid expenses for travel, subsistence or facilities provided in kind received by the member, the member's spouse or minor or dependent child from named payers or providers other than the State, indicating whether the payer or provider is a profit, nonprofit or governmental entity;

(5) Gifts from named donors connected to the legislative process received by the member, the member's spouse or minor or dependent child;

(6) The amounts of all personal liabilities of the member and the member's spouse, except liabilities which are (a) less than $15,000 and owed to a relative; (b) less than $3,000 and owed to any other person; (c) loans secured by a personal motor vehicle, or household furniture or appliances; and (d) revolving charge accounts. As used in this subsection, "relative" means a son, daughter, grandson, granddaughter, father, mother, grandfather, grandmother, great-grandfather, great-grandmother, brother, sister, nephew, niece, uncle or aunt. Relatives by adoption, half-blood, marriage or remarriage shall be treated as relatives of the whole kinship;

(7) The amounts of all personal liabilities otherwise subject to disclosure, pursuant to paragraph (6) of this section, of the member and the member's spouse, that have been forgiven by the creditor within 12 months prior to the statement date. For each forgiven liability, the name of the creditor to whom such a liability was owed shall be stated;

(8) The name and address of all business organizations in which the member or the member's spouse held an "interest" [as] defined [in section 2 of P.L.1971, c.182 (C.52:13D-13)] as

(a) the direct or indirect ownership of any interest in a professional service corporation organized under the "Professional Service Corporation Act," P.L.1969, c.232 (C.14A:17-1 et seq.),

(b) the direct or indirect ownership or control of more than 5% of the profits or assets of a firm, association or partnership, or more than 5% of the stock of a corporation, or

(9) Any offices, trusteeships, directorships, or positions of any nature, whether compensated or uncompensated, held by the member or the member's spouse, with any firm, corporation, association, partnership, trust or business; and

(10) The address and brief description of all real property in which the member, the member's spouse or a minor or dependent child held an interest as defined in section 2 of P.L.1971, c.182 (C.52:13D-13).

b. The failure of a member of the Legislature to file a statement as required by this section shall be reported to the President of the Senate or Speaker of the General Assembly.

c. The Joint Legislative Committee on Ethical Standards or its successor after review of statements filed pursuant to this section may by advisory opinion determine that in its opinion a particular category of income, reimbursements, gifts, real estate holdings or business interests gives rise to an appearance of conflict with the member's service as a member of the Legislature.

d. Advisory opinions issued pursuant to subsection c. shall be public records and shall remain on file for 10 years from the date of issuance.

e. For the purposes of this section, section 92 of P.L.2006, c.103 (C.37:1-33) shall apply.

f. For the purposes of this section, the term spouse shall also mean "domestic partner" as defined in section 3 of P.L.2003, c.246 (C.26:8A-3).

2. The 2008-2009 Legislative Code of Ethics is supplemented by the addition of the following section to be numbered as follows:

2:14.1. The financial disclosure statement required under section 2:14 of this code shall include the following information.

(1) Earned income paid to the member, the member's spouse, or the member's relative as a full or part-time officer or employee of a public entity in this State, including earned income paid to the member, the member's spouse, or the member's relative, directly or indirectly, as a third party agent for the purpose of servicing or procuring a public contract with a public entity in this State;

(2) Public contracts held by the member, member's spouse, or member's relative with any public entity in the State, the value of each contract, and what property, goods, services or other consideration was given or performed under the contract, except public contracts awarded by resolution after public advertising for bids and bidding therefor pursuant to section 4 of P.L.1971, c.198 (C.40A:11-4).

(3) Compensation paid by a public entity in the State to the employer of the member, member's spouse, or member's relative and what property, goods, services or other consideration was given or performed for the compensation, including compensation paid to such an employer, directly or indirectly, for serving as a third party agent for the purpose of servicing or procuring a public contract with a public entity in this State;

(4) Compensation paid by a public entity in the State to a business organization in which the member, the member's spouse, or member's relative held an "interest" defined as

(a) the direct or indirect ownership of any interest in a professional service corporation organized under the "Professional Service Corporation Act," P.L.1969, c.232 (C.14A:17-1 et seq.),

(b) the direct or indirect ownership or control of more than 5% of the profits or assets of a firm, association or partnership, or more than 5% of the stock of a corporation, or

(c) the direct or indirect ownership or control of more than 1% of the profits or assets of a firm, association or partnership, or more than 1% of the stock in any corporation, which is the holder of, or an applicant for, a casino license or any holding or intermediary company with respect thereto, as defined by the "Casino Control Act," P.L.1977, c.110 (C.5:12-1 et seq.), and what property, goods, services or other consideration was given or performed for the compensation, including compensation paid to such an organization, directly or indirectly, for serving as a third party agent for the purpose of servicing or procuring a public contract with a public entity in this State; and

(5) Compensation paid by a public entity in the State to any firm, corporation, association, partnership or business in which the member, member's spouse, or member's relative held an office, trusteeship, directorship, or other substantially similar position as a principal with decision making authority or responsibility, whether compensated or uncompensated, and what property, goods, services or other consideration was given or performed for the compensation, including compensation paid to such a firm, corporation, association, partnership or business, directly or indirectly, for serving as a third party agent for the purpose of servicing or procuring a public contract with a public entity in this State.

The joint committee shall require such information to be provided in each category of this section as may be required to identify each item with reasonable specificity.

Upon certification by a member of the Legislature that the member has no personal relationship with a member's relative, the reporting requirements with respect to that relative shall be waived.

As used in this section, "member's relative" means the member's child, stepchild, parent, father or mother-in-law, sibling, or brother or sister-in-law.

For the purposes of this section, section 92 of P.L.2006, c.103 (C.37:1-33) shall apply.

For the purposes of this section, the term "spouse" shall also mean "domestic partner" as defined in section 3 of P.L.2003, c.246 (C.26:8A-3).

3. This concurrent resolution shall take effect immediately and shall apply to financial disclosures required to be made by May 15, 2008 by the filing of an amendment to that financial disclosure form to provide the additional disclosure required by this concurrent resolution.

STATEMENT

This concurrent resolution revises the financial disclosure requirements for members of the Legislature and their spouses and minor children. In instances when disclosure concerning a minor child is required, this resolution adds a requirement for disclosure with regard to a dependent child also.

The resolution revises the category of earned income to be reported to include income paid to the member, the member's spouse or the member's minor or dependent child as a director, trustee, or fiduciary of a named corporation, professional association, partnership, or proprietorship, and including a trust or estate and as a shareholder of a professional service corporation;

The resolution revises category of unearned income to be reported to include fees and distributions from named investments, trusts and estates.

The resolution revises the definition of "interest" for the category that requires the name and address of all business organizations in which the member or the member's spouse held an "interest" to mean

the direct or indirect ownership of any interest in a professional service corporation organized under the Professional Service Corporation Act,

the direct or indirect ownership or control of more than 5% of the profits or assets of a firm, association or partnership, or more than 5% of the stock of a corporation, or

the direct or indirect ownership or control of more than 1% of the profits or assets of a firm, association or partnership, or more than 1% of the stock in any corporation, which is the holder of, or an applicant for, a casino license or any holding or intermediary company with respect thereto, as defined by the Casino Control Act.

The resolution requires the annual disclosure of additional information by each member of the Legislature to include:

� earned income paid to the member, the member's spouse, or the member's relative as a full or part-time officer or employee of a public entity in this State, including earned income paid to the member, the member's spouse, or the member's relative, directly or indirectly, as a third party agent for the purpose of servicing or procuring a public contract with a public entity in this State.

� public contracts held by the member, member's spouse, or member's relative with any public entity in the State, the value of each contract, and what property, goods, services or other consideration was given or performed under the contract, except public contracts awarded by resolution after public advertising for bids and bidding therefore pursuant to N.J.S.A.40A:11-4.

� compensation paid by a public entity in the State to the employer of the member, member's spouse, or member's relative and what property, goods, services or other consideration was given or performed for the compensation, including compensation paid to such an employer, directly or indirectly, for serving as a third party agent for the purpose of servicing or procuring a public contract with a public entity in this State.

� compensation paid by a public entity in the State to a business organization in which the member, the member's spouse, or member's relative held an "interest" defined as

the direct or indirect ownership of any interest in a professional service corporation organized under the Professional Service Corporation Act,

the direct or indirect ownership or control of more than 5% of the profits or assets of a firm, association or partnership, or more than 5% of the stock of a corporation, or

and what property, goods, services or other consideration was given or performed for the compensation, including compensation paid to such an organization, directly or indirectly, for serving as a third party agent for the purpose of servicing or procuring a public contract with a public entity in this State.

� compensation paid by a public entity in the State to any firm, corporation, association, partnership or business in which the member, member's spouse, or member's relative held an office, trusteeship, directorship, or other substantially similar position as a principal with decision making authority or responsibility, whether compensated or uncompensated, and what property, goods, services or other consideration was given or performed for the compensation, including compensation paid to such a firm, corporation, association, partnership or business, directly or indirectly, for serving as a third party agent for the purpose of servicing or procuring a public contract with a public entity in this State.

The "member's relative" is defined, for the purpose of this additional information, as the member's child, stepchild, parent, father or mother-in-law, sibling, or brother or sister-in-law. If a member of the Legislature certifies that the member has no personal relationship with a relative, the reporting requirements with respect to that relative are waived.

In addition, this resolution clarifies that, for the purposes of financial disclosure, reference to a member's spouse will include a member's partner in a civil union or domestic partner.

Finally, the resolution revises the value ranges for the financial disclosure. When an amount is required to be reported on the financial disclosure statement by a member of the Legislature, the Legislative Code of Ethics requires disclosure within certain value ranges: less than $10,000, at least $10,000 but less than $25,000, at least $25,000 but less than $50,000, or $50,000 or more. This concurrent resolution adds at least $50,000 but less than $100,000 and $100,000 or more. The joint committee is authorized by this concurrent resolution to increase these values at least once every five years, but not more than every two years, to reflect inflation.

Under this concurrent resolution, financial disclosures filed as of May 15, 2008 would have to be amended to provide the additional disclosure required by this concurrent resolution for activities in calendar year 2007, in order to permit the joint committee to have access to more complete information on current members of the Legislature.