A486

An Act concerning ethics in government and amending and supplementing 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 Legislature finds and declares that:

Individuals, businesses, associations, and other persons have a right to participate fully in the political process of this State, including making and soliciting contributions for candidates, political parties, legislative leadership committees, and political committees. However, the growing infusion of funds contributed by business entities into the political process at all levels of government has generated widespread cynicism among the public that special interest groups are "buying" favors from elected officeholders. When a person or business makes or solicits contributions to obtain a contract awarded by a government agency, the public's trust in government is violated. Public contracts should be awarded on the basis of merit and the members of the public should have assurance that this is the case.

For the purposes of protecting the integrity of government contractual decisions and of improving the public's confidence in government, the policy of this State should be to prohibit the awarding of government contracts to business entities that are also contributors, above certain limits, to candidates, political parties, legislative leadership committees, and political committees. This policy must apply to all levels of government.

In our representative form of government, it is essential that the conduct of legislators and public officials hold the respect and confidence of the people. Those in government hold positions of public trust that require adherence to the highest standards of honesty, integrity and impartiality. Public officials must avoid, therefore, conduct that is in violation of their public trust or which creates a justifiable impression among the public that such trust is being violated.

To ensure propriety and preserve public confidence in government, public officials in government should have the benefit of specific standards to guide their conduct and of a disciplinary mechanism to ensure uniform adherence to those standards. It is important to establish meaningful ethical restrictions while accommodating the ability of the general public to elect its legislative representatives and the ability of State government to attract experienced, qualified persons to serve the State’s citizens. The time has come also to ban the holding simultaneously of more than one elective or appointive office in this State.

Recent public events demonstrate the need to expand the kinds of lobbying activities that must be disclosed, to require more frequent reporting by lobbyists, and to require disclosure of lobbyists’ campaign contributions.

2. (New section) a. As used in sections 1 through 9 of P.L. , c. (C. ) (now pending before the Legislature as this bill):

"business entity" means an individual including the individual's spouse and any child living at home; person; firm; corporation; limited liability company; professional corporation; partnership; organization; or association. The term includes a person who owns two percent or more of the equity in the entity; the partners and officers employed by the entity; and any subsidiaries directly controlled by the business entity.

"contract" mean any contract for the purchase of goods, materials, supplies or equipment or of any land or building or the provision of personal services. The term shall include any agreement.

"government entity" means the Executive Branch, including the principal departments and independent authorities, and any boards, commissions, agencies, divisions, or other instrumentalities of the departments and authorities; the Legislative Branch, including any boards, commissions, agencies, divisions, or other instrumentalities of the Legislature; the Judicial Branch, including any boards, commissions, agencies, divisions, or other instrumentalities of the Judiciary; public institutions of higher education; interstate agencies of which this State is a party to the extent the agency may be governed by this act; counties and municipalities, and any authorities, boards, commissions, agencies, divisions, or other instrumentalities of counties and municipalities; and school districts and boards.

"holder of any public office having ultimate responsibility for the award of contracts" means:

members of the Legislature and the Governor, if the contract is paid for in whole or in part by State funds;

county executive or member of a county board of freeholders;

mayor or member of a municipal governing body; and

elected members of a school board.

"professional business entity" means a business entity that provides services by individuals who are required to be professionally licensed under the laws or regulations of this State.

“recipient committee” means a political party committee, legislative leadership committee, candidate committee, joint candidates committee, political committee, or continuing political committee.

b. For the purposes of sections 1 through 9 of this act, P.L. , c. (C. )(now pending before the Legislature as this bill), the terms "contribution," "in-kind contribution," "other thing of value," "candidate," "candidate committee," "joint candidates committee," "legislative leadership committee," "political party committee," "political committee" and "continuing political committee" shall have the meanings set forth in the "New Jersey Campaign Contributions and Expenditures Reporting Act," P.L.1973, c.83 (C.19:44A-1 et seq.).

3. (New section) a. Notwithstanding any other provision of law to the contrary,

(1) a government entity shall not enter into a contract with a business entity or professional business entity, when the value of the transaction exceeds $17,500, if that business entity or professional business entity has solicited or made a contribution of money or any other thing of value, including an in-kind contribution, or pledged to make a contribution of any kind, to a candidate for or holder of any public office having ultimate responsibility for the award of contracts, or to a recipient committee, that is in excess of the limits specified in subsections b. of this section within the twelve month period immediately preceding commencement of negotiations for the contract or the submittal of a bid, whichever occurs earlier.

(2) a business entity or professional business entity that enters into negotiations for, or executes, a contract with a government entity, when the value of the transaction exceeds $17,500, shall not solicit or make any contribution of money or any other thing of value, including an in-kind contribution, or pledge to make a contribution of any kind, knowingly to a candidate for or holder of any public office having ultimate responsibility for the award of contracts, or to any recipient committee, from the time of commencement of negotiations for to the later of the termination of negotiations for or the completion of the contract.

b. (1) A professional business entity may solicit or make annually a contribution of money or other thing of value, including an in-kind contribution, or pledge to make a contribution of any kind, in amounts not to exceed $400 each to any candidate for or holder of any public office having ultimate responsibility for the award of contracts or any recipient committee.

(2) A business entity, including the principals, partners, and officers of the entity in the aggregate, may solicit or make annually a contribution of money or other thing of value, including an in-kind contribution, or pledge to make a contribution of any kind, in amounts not to exceed $5,000, combined, to all candidates for or holders of any public office having ultimate responsibility for the award of contracts and all recipient committees.

c. A candidate for or holder of any public office having ultimate responsibility for the award of contracts shall not accept knowingly a contribution of money or other thing of value, including an in-kind contribution, or pledge to make a contribution of any kind, that exceeds the limits set forth in subsections a. and b. of this section.

d. The contribution limits in this section shall be adjusted by the Election Law Enforcement Commission in the same manner as adjustments are made pursuant to section 22 of P.L.1993, c.65 (C.19:44A-7.2).

4. (New section) A contribution of money or other thing of value, including in-kind contributions, made by a business entity, or pledge to make a contribution of any kind, to any candidate for or holder of any public office having ultimate responsibility for the award of contracts, or a recipient committee, shall not be a violation of sections 2 through 9 of P.L. , c. (C. )(now pending before the Legislature as this bill), nor shall the business entity be disqualified or a contract terminated, if that contribution or pledge was made by the business entity prior to the effective date of this act, P.L. , c. (C. )(now pending before the Legislature as this bill).

5. (New section) Prior to awarding a contract to a business entity, a government entity shall receive a sworn statement from the business entity, made under penalty of perjury, that theentity has not made a contribution in violation of section 3 of P.L. , c. (C. ) (now pending before the Legislature as this bill). The business entity shall have a continuing duty to report any violation of section 3 of P.L. , c. (C. )(now pending before the Legislature as this bill) that may occur during the negotiation for or duration of the contract.

6. (New section) a. Candidates for or the holder of any public office having ultimate responsibility for the award of contracts, and recipient committees, shall use reasonable efforts to notify contributors and potential contributors that contributions of money or any other thing of value, including in-kind contributions, or pledges to make a contribution of any kind, from a business entity, and certain individuals associated with the business entity, may affect the ability of that business entity to contract, or continue to contract, with a government entity. Such reasonable efforts shall include, but need not be limited to, notification in written fundraising solicitations or donor information request forms or other fundraising solicitation materials. The failure of a business entity to receive the notice prescribed in this section shall not be a defense to a violation of sections 2 through 9 of P.L. , c. (C. )(now pending before the Legislature as this bill). The Election Law Enforcement Commission shall adopt a standard form of notice to be used in accordance with this section.

b. As soon as practicable upon the enactment of this act, P.L. , c. (C. ) (now pending before the Legislature as this bill), the division, agency or authority designated by subsection b. of section 8 of this act to make determinations on compliance with the provisions of sections 2 through 8 of this act shall provide notice of those provisions to all government entities that would be affected thereby.

7. (New section) A business entity and candidate for or holder of any public office having ultimate responsibility for the award of contracts, and a recipient committee, may cure a violation of section 3 of P.L. , c. (C. ) (now pending before the Legislature as this bill), if, within 30 days after the contribution is received, the business entity seeks and receives reimbursement of a contribution from the candidate for or holder of the office or recipient committee.

8. (New section) a. It shall be a breach of the contract with a government entity for a business entity, or any other person acting on behalf of the business entity, to violate section 3 of P.L. , c. (C. )(now pending before the Legislature as this bill), or to conceal or misrepresent knowingly contributions made, or to make or solicit contributions through intermediaries for the purpose of concealing or misrepresenting the source of the contribution. The penalties prescribed in subsection b. of this section and any other penalties prescribed by law shall be imposed for a violation.

b. A business entity who is found to be in violation pursuant to subsection a. or c. of this section, or who fails knowingly to reveal a contribution of any kind, shall be disqualified from eligibility for future contracts with government entities for a period of forty-eight months from the date of the determination of violation by the:

(1) Director of the Division of Purchase and Property or the Director of the Division of Property Management and Construction in the Department of the Treasury when the contract involved is with the State; or

(2) designated agency or authority when the contract involved is with a public entity other than the State.

In addition, any contract the business entity has with the government entity then in effect shall be terminated immediately.

c. A person shall not make and a person, other than a candidate or an official representative of the candidate committee or joint candidates committee of the candidate, shall not accept any contribution on the condition or with the agreement that it will be contributed to any other particular candidate. The expenditure of funds received by a person shall be made at the sole discretion of the recipient person. The penalties prescribed in subsection b. of this section and any other penalties prescribed by law shall be imposed for a violation.

9. (New section) a. A business entity that makes a contribution of any kind to a candidate for or holder of any public office having ultimate responsibility for the award of contracts or recipient committee and received, in any twelve month period, $50,000 or more in contract value from one or more government entities shall file an annual disclosure statement with the Election Law Enforcement Commission setting forth all political contributions made by the business entity during the 12 months prior to the reporting deadline.

b. The commission shall prescribe forms and procedures for the reporting which shall require, but need not be limited to, the following information:

name and address of the person and entity making the contribution and the amount contributed;

name of the recipient committee receiving the contribution; and

value of the contract with the government entity, the date of the contract, and information identifying the contract and describing its purposes.

c. The commission shall maintain such reports both at the commission's office and through the commission's electronic disclosure web site, for public examination.

10. (New section) For purposes of sections 11 through 15 of P.L. , c. (C. )(now pending before the Legislature as this bill):

a. “filing employee” means:

(1) the Governor;

(2) members of the Legislature;

(3) the head of each principal department;

(4) the assistant or deputy heads of each principal department to include all assistant and deputy commissioners of such departments;

(5) the head and the assistant heads of a division of each principal department, or any person exercising substantially similar authority for any board or commission which is organized as in, but not of, a principal department or any independent authority;

(6) the executive or administrative head and assistant heads of any board or commission which is organized in, but not of, a principal department or any independent authority;

(7) the following members of the staff of the Office of the Governor:

Chief of Staff;

Chief of Management and Operations;

Counselor to the Governor;

Chief Counsel to the Governor;

Director of Communications;

Policy Counselor to the Governor;

any deputy or principal administrative assistant to any of the foregoing members of the staff of the Office of the Governor; and

any employee of the Governor’s Office whose salary is equal to or greater than the salary established for deputy commissioners of State departments.

(8) the Executive Directors of the partisan staffs of both houses of the Legislature;

(9) members of the State Board of Agriculture;

(10) members of the State Board of Education;

(11) members of the State Board of Public Utilities;

(12) members of the State Parole Board;

(13) presidents of the State colleges and universities;

(14) such other persons employed in the Executive Branch added by subsequent written determination of the Governor with notice to the persons affected; and

(15) such other persons employed in the Legislative Branch added by the Legislature by Concurrent Resolution with notice to the persons affected.

b. “filing officer” means:

(1) the members of the following boards, commissions, independent authorities and public corporations:

Agricultural Development Committee;

Atlantic City Convention Center Authority;

Capital City Redevelopment Corporation;

Casino Reinvestment Development Authority;

Council on Affordable Housing;

Education Facilities Authority;

Election Law Enforcement Commission;

Health Care Administration Board;

Health Care Facilities Financing Authority;

Merit System Board;

New Jersey Building Authority;

New Jersey Commission on Science and Technology;

New Jersey Economic Development Authority;

New Jersey Highway Authority;

New Jersey Housing and Mortgage Financing Agency;

New Jersey Meadowlands Commission;

New Jersey Public Broadcasting Authority;

New Jersey Racing Commission;

New Jersey Sports and Exposition Authority;

New Jersey State Council on the Arts;

New Jersey Transit Corporation;

New Jersey Transportation Trust Fund Authority;

New Jersey Turnpike Authority;

New Jersey Urban Enterprise Zone Authority;

North Jersey District Water Supply Commission;

Passaic Valley Sewerage Commission;

Passaic Valley Water Commission;

Pinelands Commission;

Public Employment Relations Commission;

South Jersey Port Corporation;

South Jersey Transportation Authority;

State Athletic Control Board;

State Lottery Commission;

State Planning Commission;

Tidelands Resource Council;

Urban Development Corporation;

Wastewater Treatment Trust;

Water Supply Authority; and

such other persons added by subsequent written determination of the Governor with notice to the persons affected.

(2) individuals appointed as a New Jersey member to the following agencies:

Atlantic States Marine Fisheries Commission;

Delaware River and Bay Authority;

Delaware River Basin Commission;

Delaware River Joint Toll Bridge Commission;

Delaware River Port Authority;

Delaware Valley Regional Planning Commission;

Interstate Environmental Commission;

Atlantic Interstate Low-Level Radioactive Waste Management Compact;

Palisades Interstate Park Commission;

Port Authority of New York and New Jersey;

Waterfront and Airport Commission of New York and New Jersey; and

such other persons appointed as New Jersey members to bi-state or multi-state bodies added by subsequent written determination of the Governor with notice to the persons affected.

c. “government instrumentality” means the Legislative, Judicial, and Executive Branches of State government, including any office, department, division, bureau, board, commission, council, authority or agency therein, and any county, municipality, district, public authority, or public agency, or other political subdivision or public body in the State.

d. "State agency" means any of the principal departments in the Executive Branch of the State Government, and any division, board, bureau, office, commission or other instrumentality within or created by such department; the Legislature of the State and any office, board, bureau or commission within or created by the Legislative Branch for that Branch; any independent State authority, commission, instrumentality or agency; and to the extent consistent with law, any interstate agency to which New Jersey is a party. A county or municipality shall not be deemed an agency or instrumentality of the State.

e. "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.

11. (New section) A filing employee and filing officer shall file a sworn and duly notarized Financial Disclosure Statement, or file with such other authentication as the Executive Commission on Ethical Standards or the Joint Legislative Committee on Ethical Standards may require to facilitate electronic filing, that is current as of the fifth day prior to the date of filing.

A statement shall include the following information:

a. the name and position of the filing employee or filing officer.

b. any occupation, trade, business, profession or employment engaged in by the filing employee or filing officer, and the employee's or officer's spouse and dependent children, and any license held by the filing employee or filing officer issued by a State agency entitling the employee or officer to engage in a particular occupation, trade, business, profession, or employment.

c. all assets with a value of more than $1,000, both tangible and intangible, in which a direct or indirect interest is held by the filing employee or filing officer, and the employee's or officer's spouse and dependent children, valued as of the statement date, provided, however, that when the value cannot be determined as of that date, a separate valuation date shall be specified for the particular asset.

For stocks and bonds, there shall be included the name of the company, mutual fund, holding company or government agency issuing them. When such interest exists through ownership in a mutual fund or holding company, the individual stocks held by such mutual fund or holding company need not be listed. When such interest exists through a beneficial interest in a trust, the stocks and bonds held in such trust shall be listed only if the filing employee or filing officer has knowledge of the stocks and bonds that are held. When more than 10 percent of the stock of a corporation is held, the percentage of ownership shall be stated.

For assets in the form of notes receivable or accounts receivable, the nature of the note or account shall be stated.

The list shall include any direct or indirect interest, whether vested or contingent, in any contract made or executed by a government instrumentality.

For real estate interests, the location, size, general nature and acquisition date of any real property in this State in which any direct, indirect, vested or contingent interest is held, shall be stated, together with the (1) names of all individuals or entities who share a direct or indirect interest therein, whether such individuals or entities work for the same agency, and (2) if so, whether there is a subordinate-supervisor relationship, and (3) name of any government instrumentality that is a tenant of such property or that has before it an application, complaint or proceeding directly affecting such property.

The disclosure of assets shall also indicate whether the filing employee, or the employee's spouse or dependent children, are party to a blind trust agreement, and if so, the name and address of the trustee. The filing employee shall also disclose whether the employee or the employee's spouse or dependent children has an interest in a closely held corporation, partnership, sole proprietorship or similar business entity; and if so, the name, address, description of entity’s business activity and cash and non-cash holdings; and whether the entity does business with the United States, this State, a local governmental entity in this State, interstate entity, or an out-of-State state or local governmental entity; and if so, whether such business was subject to public notice and competitive bidding.

Assets of a filing employee and the employee's spouse shall be listed according to the following value categories:

greater than $1,000 but not more than $5,000;

greater than $5,000 but not more than $25,000;

greater than $25,000 but not more than $50,000;

greater than $50,000 but not more than $100,000;

greater than $100,000 but not more than $250,000;

greater than $250,000 but not more than $1,000,000;

greater than $1,000,000 but not more than $5,000,000; and

greater than $5,000,000.

The value of assets of (1) the dependent children of a filing employee, or (2) a filing officer, and the officer's spouse and dependent children, need not be disclosed unless specifically requested by the Governor, the Executive Commission, or the Joint Legislative Committee.

d. a list of all liabilities of the filing employee or filing officer, and the employee's or officer's spouse and dependent children, valued by category in the same manner as required by subsection c. of this section, except liabilities which are:

less than $10,000 and owed to a relative as defined in section 10 in P.L. , c. (C. )(now pending before the Legislature as this bill);

less than $1,000 and owed to any other person;

loans secured by a personal motor vehicle, or household furniture or appliances, when the loan did not exceed the purchase price of the item and the outstanding balance did not exceed $10,000 as of the close of the preceding calendar year; and

revolving charge accounts when the outstanding liability does not exceed $10,000 as of the close of the preceding calendar year.

The value of liabilities of the dependent children of a filing employee or filing officer need not be disclosed unless specifically requested by the Governor, the Executive Commission or the Joint Legislative Committee.

e. a list of all liabilities otherwise subject to disclosure pursuant to subsection d. of this section of the filing employee or filing officer, and the employee's or officer's spouse and dependent children, that have been forgiven or compromised by the creditor within 12 months prior to the statement date. For each forgiven or compromised liability, the name of the creditor to whom such a liability was owed shall be stated.

f. a list of all sources of income of the filing employee or filing officer, and the employee's or officer's spouse and dependent children, including all compensated employment of whatever nature. This shall include current State or other employment, identification of employer, commencement and, if applicable, termination dates; all directorships or other fiduciary positions for which compensation has or will be claimed; all capital gains including a description of the item sold, the dates of acquisition and sale, and the name of purchaser if known; all contractual arrangements producing or expected to produce income including, but not limited to, buyout agreements and severance payments; and all honoraria, lecture fees, gifts and other miscellaneous sources of income including, but not limited to, Social Security, pensions, interest, dividends, royalties, commissions, rents and accounts, and notes receivables.

The statement shall also identify all major customers or major clients of the filing employee or filing officer, and of any other person who in the previous year provided compensation of more than $10,000 to the filing employee or filing officer. For the purposes of this subsection, “major client” or “major customer” means any client or customer responsible for greater than five percent of the profits, or 10 percent of the gross revenue, of the person providing goods or services to the client or customer.

Statements filed before July 1 of any year shall disclose sources of income for the preceding calendar year. Statements filed after July 1 of any year shall provide this information for the twelve-month period immediately preceding the filing date. The amounts of such income received shall be listed and valued by category in the same manner of assets as set forth in subsection c. of this section. The amount of income of (1) the dependent children of a filing employee, or (2) a filing officer, and the officer's spouse and dependent children, need not be disclosed unless specifically requested by the Governor, the Executive Commission or the Joint Legislative Committee.

Sources of income that shall not be required to be reported are:

cash gifts in an aggregated amount of less than $100 received during the preceding 12 months from any person;

non-cash gifts with an aggregated fair market value of less than $200 received during the preceding 12 months from any person; and

gifts with an aggregated cash or fair market value of less than $3,000 received during the preceding 12 months from a relative as defined in section 10 of P.L. , c . (C. )(now pending before the Legislature as this bill).

g. a list of any offices, trusteeships, directorships, or positions of any nature, whether compensated or uncompensated, held by the filing employee or filing officer, and the employee's or officer's spouse and dependent children, with any firm, corporation, association, partnership or business. If any firm, corporation, association, partnership or business does business with or is licensed, regulated or inspected by a State agency, or does business with a casino license holder or applicant, the State agency, casino or applicant shall be identified.

12. (New section) A member of the Legislature shall annually disclose on the member's Financial Disclosure Statement any contact made with the member for the purpose of influencing the member’s position on a matter pending before the Legislature if the contact was made by a major client or major customer of the member or of any other person who in the previous year provided compensation of more than $10,000 to the member. For the purposes of this section, “major client” or “major customer” means a client or customer responsible for greater than five percent of the profits, or greater than 10 percent of the gross revenues, of the person providing goods or services to the client or customer.

13. (New section) A Financial Disclosure Statement shall contain a certification by the filing employee or filing officer that: the employee or officer has read the statement; to the best of the employee's or officer's knowledge and belief it is true, correct, and complete; and the employee or officer has not transferred and will not transfer any asset, interest, or property for the purpose of concealing it from disclosure while retaining an equitable interest therein.

14. (New section) a. Within 60 days from the effective date of P.L. , c. (C. )(now pending before the Legislature as this bill), each filing employee and filing officer who has not already done so shall file the sworn and notarized statement required, or file the statement with such other authentication as the Executive Commission or Joint Legislative Committee may require to facilitate electronic filing.

The Executive Commission or the Joint Legislative Committee shall review each statement to determine its conformity with law and approve each statement that conforms. Upon approving such a statement for filing, the commission or the committee shall file and maintain a copy of it for public access in accordance with P.L.1963, c. 73 (C.47:1A-1 et seq.);

b. After the expiration of the initial 60-day period set forth in subsection a. of this section, each prospective filing employee and filing officer shall satisfy the filing requirements within 60 days of assuming office or commencing employment, unless the Executive Commission or Joint Legislative Committee grants to such employee or officer an extension of the filing deadline. No more than two consecutive extensions shall be granted and an extension shall be for not more than 30 days each.

c. A statement, revised as needed, shall be filed on each May 15 following the filing of an initial statement.

15. (New section) The Executive Commission or the Joint Legislative Committee shall keep the approved statements on file for as long as the person submitting such statements is a filing employee or filing officer of this State, and for five years thereafter.

16. (New section) The Executive Commission and the Joint Legislative Committee shall have the primary responsibility for assuring the proper administration and implementation of sections 10 through 15 of P.L. , c. (C. )(now pending before the Legislature as this bill). The commission and committee shall have the power to perform acts necessary and convenient for administration and implementation, including, but not limited to, preparing and distributing forms and instructions to be utilized by State employees and officers in complying with sections 10 through 15 P.L. , c. (C. )(now pending before the Legislature as this bill).

17. Section 5 of P.L.1971, c.182 (C.52:13D-16) is amended to read as follows:

5. a. No special State officer or employee, nor any partnership, firm or corporation in which he has an interest, nor any partner, officer or employee of any such partnership, firm or corporation, shall represent, appear for, or negotiate on behalf of, or agree to represent, appear for or negotiate on behalf of, any person or party other than the State in connection with any cause, proceeding, application or other matter pending before the particular office, bureau, board, council, commission, authority, agency, fund or system in which such special State officer or employee holds office or employment.

b. No State officer or employee or member of the Legislature, nor any partnership, firm or corporation in which he has an interest, nor any partner, officer or employee of any such partnership, firm or corporation, shall represent, appear for, or negotiate on behalf of, or agree to represent, appear for, or negotiate on behalf of, any person or party other than the State in connection with any cause, proceeding, application or other matter pending before any State agency. Nothing contained herein shall be deemed to prohibit any such partnership, firm or corporation from appearing on its own behalf. This subsection shall not be deemed to prohibit a member of the Legislature or an employee on the member's behalf from: (1) making an inquiry for information on behalf of a constituent, which may include ascertaining the status of a matter, identifying the statutes or regulations involved in a matter or inquiring how to expedite a matter; (2) assisting the constituent in bringing the merits of the constituent's position to the attention of a State agency; or (3) making a recommendation on a matter or indicating support for a constituent's position to a State agency if no fee, reward, employment, offer of employment, or other thing of value is promised to, given to or accepted by the member of the Legislature or an employee therefor, whether directly or indirectly, and the member or employee does not endeavor to use his official position to improperly influence any determination. As used in this subsection "constituent" shall mean any State resident or other person seeking legislative assistance , but shall not include any major client or major customer of the member of the Legislature, employee therefor, or any other person who in the previous year provided compensation of greater than $10,000 to the member or employee. As used herein, “major client” or “major customer” means any client or customer responsible for greater than five percent of the profits or 10 percent of the gross revenue of the person providing goods or services to the client or customer.

Nothing contained herein shall authorize contact with State agencies by members of the Legislature or their employees which is otherwise prohibited by the criminal law, this act or the Code of Ethics and nothing contained herein shall authorize contact with an administrative law judge or agency head during the hearing of a contested case.

c. Nothing contained in this section shall be deemed to prohibit any legislator, or any State officer or employee or special State officer or employee from representing, appearing for or negotiating on behalf of, or agreeing to represent, appear for, or negotiate on behalf of, any person or party other than the State in connection with any proceeding:

(1) Pending before any court of record of this State,

(2) In regard to a claim for compensation arising under chapter 15 of Title 34 of the Revised Statutes (Workers' Compensation),

(3) In connection with the determination or review of transfer inheritance or estate taxes,

(4) In connection with the filing of corporate or other documents in the office of the Secretary of State,

(5) Before the Division on Civil Rights or any successor thereof,

(6) Before the New Jersey State Board of Mediation or any successor thereof,

(7) Before the New Jersey Public Employment Relations Commission or any successor thereof,

(8) Before the Unsatisfied Claim and Judgment Fund Board or any successor thereof solely for the purpose of filing a notice of intention pursuant to P.L.1952, c.174, s.5 (C.39:6-65), or

(9) Before any State agency on behalf of a county, municipality or school district, or any authority, agency or commission of any thereof except where the State is an adverse party in the proceeding and provided he is not holding any office or employment in the State agency in which any such proceeding is pending.

(cf: P.L.1996, c.116, c.1)

18. 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 [until he files with the Clerk of the General Assembly or the Secretary of the Senate, as the case may be, a statement (which shall be entered verbatim on the journal of the General Assembly or the Senate) stating in substance that he has a personal interest in the legislation and that notwithstanding such interest, he is able to cast a fair and objective vote and otherwise participate in connection with such legislation].

(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 an entity by which he is employed or of which he is a member 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 an entity by which he is employed or of which he is a member, as a member of [a business, profession, occupation or group] the general public, to any greater extent than any such benefit or to any lesser extent than any such detriment could reasonably be expected to accrue [to any other member of such business, profession, occupation or group] to any other member of the general public.

(cf: P.L.1971, c.182, s.7)

19. 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 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)

20. 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.), 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.), 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)

21. Section 1 of P.L.1971, c.183 (C.52:13C-18) is amended to read as follows:

1. The Legislature affirms that the preservation of responsible government requires that the fullest opportunity be afforded to the people of the State to petition their government for the redress of grievances and to express freely to individual legislators, committees of the Legislature and the Governor their opinion on legislation and current issues, to Executive Branch officers and agencies their opinion on rules and regulations developed and promulgated by those officers and agencies in the exercise of powers delegated to them by law. The Legislature finds, however, that the preservation and maintenance of the integrity of the legislative process and other governmental processes, including the development and promulgation of rules and regulations, the promulgation of executive orders, the awarding of public contracts, the issuance of permits, the imposition of penalties, or the granting of any form of financial assistance, to effectuate the implementation of statutory law, requires the identification in certain instances of persons and groups who seek to influence the content, introduction, passage or defeat of legislation or the proposal, adoption, amendment, or repeal of rules and regulations or action in other governmental processes, and, where it is not otherwise apparent or readily ascertainable, the nature of the interest which those persons and groups seek to advance or protect through such activity. The close monitoring of the activities of legislative agents and lobbyists with respect to their involvement in legislative and other governmental processes to ensure the integrity of government is in the public interest.

It is the purpose of this act to require adequate disclosure in certain instances in order to make available to the Legislature and the public information relative to the activities of persons who seek to influence the content, introduction, passage or defeat of legislation or the proposal, adoption, amendment, or repeal of rules and regulations or action in other governmental processes by such means.

(cf: P.L.1991, c.243, s.2)

22. Section 3 of P.L.1971, c.183 (C.52:13C-20) is amended to read as follows:

3. For the purposes of this act, as amended and supplemented, unless the context clearly requires a different meaning:

a. The term "person" includes an individual, partnership, committee, association, corporation, and any other organization or group of persons.

b. The term "legislation" includes all bills, resolutions, amendments, nominations and appointments pending or proposed in either House of the Legislature, and all bills and resolutions which, having passed both Houses, are pending approval by the Governor.

c. The term "Legislature" includes the Senate and General Assembly of the State of New Jersey and all committees and commissions established by the Legislature or by either House thereof.

d. The term "lobbyist" means any person, partnership, committee, association, corporation, labor union or any other organization that employs, engages or otherwise uses the services of any legislative agent to influence legislation or regulation, or governmental processes.

e. The term "Governor" includes the Governor or the Acting Governor.

f. The term "communication with a member of the Legislature, "with legislative staff," "with the Governor," "with the Governor's staff," or "with an officer or staff member of the Executive Branch" means any communication, oral or in writing or any other medium, addressed, delivered, distributed or disseminated, respectively, to a member of the Legislature, to legislative staff, to the Governor, to the Governor's staff, or to an officer or staff member of the Executive Branch, as distinguished from communication to the general public including but not limited to a member of the Legislature, legislative staff, the Governor, the Governor's staff, or an officer or staff member of the Executive Branch. If any person shall obtain, reproduce or excerpt any communication or part thereof which in its original form was not a communication under this subsection and shall cause such excerpt or reproduction to be addressed, delivered, distributed or disseminated to a member of the Legislature, to legislative staff, to the Governor, to the Governor's staff, or to an officer or staff member of the Executive Branch, such communication, reproduction or excerpt shall be deemed a communication with the member of the Legislature, with legislative staff, with the Governor, with the Governor's staff, or with an officer or staff member of the Executive Branch by such person.

g. The term "legislative agent" means any person who receives or agrees to receive, directly or indirectly, compensation, in money or anything of value including reimbursement of his expenses where such reimbursement exceeds $100.00 in any three-month period, to influence legislation or to influence regulation or to influence governmental processes, or [both] any of the above, by direct or indirect communication with, or by making or authorizing, or causing to be made or authorized, any expenditures providing a benefit to, a member of the Legislature, legislative staff, the Governor, the Governor's staff, or any officer or staff member of the Executive Branch, or who holds himself out as engaging in the business of influencing legislation or regulation, or governmental processes, by such means, or who incident to his regular employment engages in influencing legislation or regulation or governmental processes, by such means; provided, however, that a person shall not be deemed a legislative agent who, in relation to the duties or interests of his employment or at the request or suggestion of his employer, communicates with a member of the Legislature, with legislative staff, with the Governor, with the Governor's staff, or with an officer or staff member of the Executive Branch concerning any legislation or regulation, or governmental process, if such communication is an isolated, exceptional or infrequent activity in relation to the usual duties of his employment.

h. The term "influence legislation" means to make any attempt, whether successful or not, to secure or prevent the initiation of any legislation, or to secure or prevent the passage, defeat, amendment or modification thereof by the Legislature, or the approval, amendment or disapproval thereof by the Governor in accordance with his constitutional authority.

i. The term "statement" includes a notice of representation or a report required by this act, as amended and supplemented.

j. (Deleted by amendment, P.L.1991, c.243).

k. The term "member of the Legislature" includes any member or member-elect of, or any person who shall have been selected to fill a vacancy in, the Senate or General Assembly, and any other person who is a member or member-designate of any committee or commission established by the Legislature or by either House thereof.

l. The term "legislative staff" includes all staff, assistants and employees of the Legislature or any of its members in the member's official capacity, whether or not they receive compensation from the State of New Jersey.

m. The term "Governor's staff" includes the members of the Governor's Cabinet, the Secretary to the Governor, the Counsel to the Governor and all professional employees in the office of the Counsel to the Governor, and all other employees of the Office of the Governor.

n. The term "officer or staff member of the Executive Branch" means any assistant or deputy head of a principal department in the Executive Branch of State Government, including all assistant and deputy commissioners; the members and chief executive officer of any authority, board, commission or other agency or instrumentality in or of such a principal department; and any officer of the Executive Branch of State Government other than the Governor who is not included among the foregoing or among the Governor's staff, but who is empowered by law to issue, promulgate or adopt administrative rules and regulations; make administrative determinations; develop, negotiate and award public contracts; issue, deny or modify permits; impose or modify penalties; or award any form of financial assistance, and any person employed in the office of such an officer who is involved with the development, issuance, promulgation or adoption of such rules and regulations in the regular course of employment or is involved in the development, negotiation or award of public contracts, the issuance, denial or modification of permits, imposition or modification of penalties, or the award of any form of financial assistance.

o. The term "regulation" includes any administrative rule or regulation affecting the rights, privileges, benefits, duties, obligations, or liabilities of any one or more persons subject by law to regulation as a class, but does not include an administrative action (1) to issue, renew or deny, or, in an adjudicative action, to suspend or revoke, a license, order, permit or waiver under any law or administrative rule or regulation, (2) to impose a penalty, or (3) to effectuate an administrative reorganization within a single principal department of the Executive Branch of State Government.

p. The term "influence regulation" means to make any attempt, whether successful or not, to secure or prevent the proposal of any regulation or to secure or prevent the consideration, amendment, issuance, promulgation, adoption or rejection thereof by an officer or any authority, board, commission or other agency or instrumentality in or of a principal department of the Executive Branch of State Government empowered by law to issue, promulgate or adopt administrative rules and regulations.

q. The term "expenditures providing a benefit" or "expenditures providing benefits" means any expenditures for entertainment, food and beverage, travel and lodging, honoraria, loans, gifts or any other thing of value, except for (1) any money or thing of value paid for past, present, or future services in regular employment, whether in the form of a fee, expense, allowance, forbearance, forgiveness, interest, dividend, royalty, rent, capital gain, or any other form of recompense, or any combination thereof, or (2) any dividends or other income paid on investments, trusts, and estates.

r. The term "commission" means the Election Law Enforcement Commission established pursuant to section 5 of P.L.1973, c.83 (C.19:44A-5).

s. The term “influence the promulgation of an executive order” means to make any attempt, whether successful or not, to secure or prevent action on any Executive Order issued by the Governor.

t. The term “influence the issuance, denial or modification of a permit” means to make any attempt, whether successful or not, to secure or prevent action on any permit issued by an officer or staff member or any authorizing board, commission or other agency or instrumentality in or of a principal department of the Executive Branch of State government empowered by law to issue, deny or modify any permit.

u. The term “influence the imposition or modification of a penalty” means to make any attempt, whether successful or not, to secure or prevent action on any penalty imposed by an officer or staff member or any authorizing board, commission or other agency or instrumentality in or of a principal department of the Executive Branch of State government empowered by law to impose or modify any penalty.

v. The term "public contract" means a contract the cost or price of which is to be paid with or out of State funds or the funds of an independent authority created by the State or by the Legislature.

w. The term "influence the development, negotiation or award of a public contract" means to make any attempt, whether successful or not, to secure or prevent action on a public contract by an officer or staff member of the Executive Branch, but does not include those activities necessary to the preparation or submission of a bid or proposal pursuant to applicable law or with respect to a protest or a challenge before an agency or court to the award of a public contract.

x. The term “influence the award of any form of financial assistance, including but not limited to grants or loans” means to make any attempt, whether successful or not, to secure or otherwise affect action on any form of financial assistance, including but not limited to grants or loans, awarded by an officer or staff member or any authorizing board, commission or other agency or instrumentality in or of a principal department of the Executive Branch of State government empowered by law to award any financial assistance.

y. The term “influence the rendering of administrative determinations" means to make any attempt, whether successful or not, to secure or prevent action on any administrative determination rendered by an officer or staff member or any authorizing board, commission or other agency or instrumentality in or of a principal department of the Executive Branch of State government empowered by law to render any administrative determination.

z. The term "governmental processes" means promulgation of an executive order; the rendering of an administrative determination; the development, negotiation or award of a public contract; the issuance, denial or modification of a permit; the imposition or modification of a penalty; or the award of any form of financial assistance, including but not limited to grants or loans.

(cf: P.L.1991, c.244, s.1)

23. Section 4 of P.L.1971, c.183 (C.52:13C-21) is amended to read as follows:

4. a. Any person who, on or after the effective date of P.L.1991, c.243, is employed, retained or engages himself as a legislative agent shall, prior to any communication with, or the making of any expenditures providing a benefit to, a member of the Legislature, legislative staff, the Governor, the Governor's staff, or an officer or staff member of the Executive Branch, and in any event within 30 days of that effective date or of such employment, retainer or engagement, whichever occurs later, file a signed notice of representation with the Election Law Enforcement Commission in such detail as the commission may prescribe, identifying himself and persons by whom he is employed or retained, and the persons in whose interests he is working, and the general nature of his proposed services as a legislative agent for such persons, which notice shall contain the following information:

(1) his name, business address and regular occupation;

(2) the name, business address and occupation or principal business of the person from whom he receives compensation for acting as a legislative agent;

(3) (a) the name, business address and occupation or principal business of any person in whose interest he acts as a legislative agent in consideration of the aforesaid compensation, if such person is other than the person from whom said compensation is received; and

(b) if a person, identified under paragraph (2) of this subsection as one from whom the legislative agent receives compensation, is a membership organization or corporation whose name or occupation so identified does not, either explicitly or by virtue of the nature of the principal business in which the organization or its members, or the corporation or its shareholders, is commonly known to be engaged, clearly reveal the primary specific economic, social, political, or other interest which the organization or corporation may reasonably be understood to seek to advance or protect through its employment, retainer, or engagement of the legislative agent, a description of that primary economic, social, political, or other interest and a list of the persons having organizational or financial control of the organization or corporation, including the names, mailing addresses and occupations, respectively, of those persons. The commission shall promulgate rules and regulations to govern the content of any information required to be disclosed under this subparagraph and shall take such steps as are reasonably necessary to ensure that all such information is, in accordance with those rules and regulations, both accurate and complete.

Any list of legislative agents and their principals required to be published quarterly under subsection h. of section 6 of P.L.1971, c.183 (C.52:13C-23) shall include, for each such principal for whom it is not otherwise apparent, the primary specific interest which the principal may reasonably be understood to seek to advance or protect through its engagement of the legislative agent and the category of persons required to file additional information, as that interest and such category shall have been determined under subparagraph (b) of this paragraph;

(4) whether the person from whom he receives said compensation employs him solely as a legislative agent, or whether he is a regular employee performing services for his employer which include but are not limited to the influencing of legislation or regulation or governmental processes;

(5) the length of time for which he will be receiving compensation from the person aforesaid for acting as a legislative agent, if said length of time can be ascertained at the time of filing;

(6) the type of legislation or regulation or governmental process or the particular legislation or regulation or governmental process in relation to which he is to act as legislative agent in consideration of the aforesaid compensation, and any particular legislation or regulation or governmental process, or type of legislation or regulation or governmental process which he is to promote or oppose;

(7) a full and particular description of any agreement, arrangement or understanding according to which his compensation, or any portion thereof, is or will be contingent upon the success of any attempt to influence legislation or regulation or governmental process.

b. Any legislative agent who receives compensation from more than one person for his services as a legislative agent shall file a separate notice of representation with respect to each such person; except that a legislative agent whose fee for acting as such in respect to the same legislation or regulation or governmental process or type of legislation or regulation or governmental process is paid or contributed to by more than one person may file a single statement, in which he shall detail the name, business address and occupation or principal business of each person so paying or contributing.

(cf: P.L.1991, c.244, s.2)

24. Section 4 of P.L.1981, c.150 (C.52:13C-21a) is amended to read as follows:

4. Any legislative agent or lobbyist not a resident of this State, or not a corporation of this State or authorized to do business in this State, shall file with the Election Law Enforcement Commission, before attempting to influence legislation, regulation or governmental processes its consent to service of process at an address within this State, or by regular mail at an address outside this State.

(cf: P.L.1981, c.150. s.4)

25. Section 5 of P.L.1971, c.183 (C.52:13C-22) is amended to read as follows:

5. a. Every legislative agent shall file with the commission a signed quarterly report of his activity in attempting to influence legislation, regulation or governmental processes during each such quarter.

b. The quarterly reports required under this section shall be made in the form and manner prescribed by the commission and shall be filed between the first and tenth days of each calendar quarter for such activity during the preceding calendar quarter. The commission may, in its discretion, permit joint reports by persons subject to this act.

c. Each such quarterly report shall

(1) describe the particular items of legislation, regulation, or governmental processes and any general category or type of legislation, regulation or governmental process regarding which the legislative agent acted as a legislative agent during the quarter, and any particular items or general types of legislation, regulation, or governmental processes which he actively promoted or opposed during the quarter; [and]

(2) supply any information necessary to make the notice of representation filed by the legislative agent pursuant to section 4 of P.L.1971, c.183 (C.52:13C-21), current and accurate as of the final day of the calendar quarter covered by the report[. ];

(3) list those moneys, loans, paid personal services or other things of value contributed to it and those expenditures made, incurred, or authorized by it for the purpose of communication with or providing benefits to any member of the Legislature, legislative staff, the Governor, the Governor's staff, or an officer or staff member of the Executive Branch during the previous year, including expenditures for media and advertising; entertainment; food and beverages; travel and lodging; honoraria; loans; gifts; and salary, fees, allowances or other compensation paid to a legislative agent. The expenditures shall be reported whether made to the intended recipient of the communication or benefit or to a legislative agent or a lobbyist. The expenditures shall be reported in the aggregate by category, except that if the aggregate expenditures on behalf of a member of the Legislature, legislative staff, the Governor, the Governor's staff, or an officer or staff member of the Executive Branch exceed $25 per day, they shall be detailed separately as to the name of the member of the Legislature, member of legislative staff, the Governor, member of the Governor's staff, or officer or staff member of the Executive Branch, date and type of expenditure, amount of expenditure and to whom paid. If the aggregate expenditures for the purpose of communication with or providing benefits to any one member of the Legislature, member of legislative staff, the Governor, the Governor's staff, or officer or staff member of the Executive Branch exceed $50 per quarter, the expenditures, together with the name of the intended recipient of the communication or benefits, shall be stated in detail including the type of each expenditure, amount of expenditure and to whom paid. If the expenditures in the aggregate with respect to any specific occasion are in excess of $25, the report shall include the date and type of expenditure, amount of expenditure and to whom paid; and

(4) list the contributions made to or on behalf of a candidate for public office or a recipient committee as defined in section 2 of P.L., c. (C. )(now pending before the Legislature as this bill).

d. A legislative agent shall not be required to file a report quarterly unless the value of such moneys, loans, paid personal services, things of value, expenditures, or contributions made to or on behalf of a candidate for public office or any recipient committee as defined in section 2 of P.L. , c. (C. )(now pending before the Legislature as this bill), as described in subsection c. above exceeds $2,500 in the aggregate in the foregoing quarter.

e. The commission may permit , in its discretion, joint reports by legislative agents. Any lobbyist required to file a quarterly report pursuant to this section may designate a legislative agent in its employ or otherwise engaged or used by it to file a quarterly report on its behalf. The designation shall be made in writing by the lobbyist, acknowledged in writing by the designated legislative agent, and filed with the commission on or before the date on which the quarterly report of the lobbyist is due to be filed. A violation shall subject both the lobbyist and the designated legislative agent to the penalties provided pursuant to P.L.1971, c.182 (C.52:13D-12).

(cf: P.L.1991, c.244, s.3)

26. Section 2 of P.L.1981, c.150 (C.52:13C-22.1) is amended to read as follows:

2. Each legislative agent or lobbyist shall make and certify the correctness of a full annual report to the Election Law Enforcement Commission, of those moneys, loans, paid personal services or other things of value contributed to it and those expenditures made, incurred or authorized by it for the purpose of communication with or providing benefits to any member of the Legislature, legislative staff, the Governor, the Governor's staff, or an officer or staff member of the Executive Branch during the previous year. The report shall include, but not be limited to, the following expenditures which relate to communication with, or providing benefits to, any member of the Legislature, legislative staff, the Governor, the Governor's staff, or an officer or staff member of the Executive Branch: media, including advertising; entertainment; food and beverage; travel and lodging; honoraria; loans; gifts; and salary, fees, allowances or other compensation paid to a legislative agent. The expenditures shall be reported whether made to the intended recipient of the communication or benefit or to a legislative agent or a lobbyist. The expenditures shall be reported in the aggregate by category, except that if the aggregate expenditures on behalf of a member of the Legislature, legislative staff, the Governor, the Governor's staff, or an officer or staff member of the Executive Branch exceed $25.00 per day, they shall be detailed separately as to the name of the member of the Legislature, member of legislative staff, the Governor, member of the Governor's staff, or officer or staff member of the Executive Branch, date and type of expenditure, amount of expenditure and to whom paid. Where the aggregate expenditures for the purpose of communication with or providing benefits to any one member of the Legislature, member of legislative staff, the Governor, the Governor's staff, or officer or staff member of the Executive Branch exceed $200.00 per year, the expenditures, together with the name of the intended recipient of the communication or benefits, shall be stated in detail including the type of each expenditure, amount of expenditure and to whom paid. Where the expenditures in the aggregate with respect to any specific occasion are in excess of $100.00, the report shall include the date and type of expenditure, amount of expenditure and to whom paid. The Election Law Enforcement Commission may, in its discretion, permit joint reports by legislative agents. No legislative agent shall be required to file a report unless all moneys, loans, paid personal services or other things of value contributed to it for the purpose of communication with or making expenditures providing a benefit to a member of the Legislature, legislative staff, the Governor, the Governor's staff, or officer or staff member of the Executive Branch exceed $2,500.00 in any year or unless all expenditures made, incurred or authorized by it for the purpose of communication with or providing benefits to a member of the Legislature, legislative staff, the Governor, the Governor's staff, or officer or staff member of the Executive Branch exceed $2,500.00 in any year.

Any lobbyist who receives contributions or makes expenditures to influence legislation or regulation or governmental processes, or who makes a contribution to or on behalf of a candidate for public office or a recipient committee as defined in section 2 of P.L. , c. (C. )(now pending before the Legislature as this bill), shall be required to file and certify the correctness of an annual report of such contributions or expenditures if the contributions or expenditures made, incurred or authorized by it for the purpose of communication with or providing benefits to a member of the Legislature, legislative staff, the Governor, the Governor's staff, or an officer or staff member of the Executive Branch or contribution to or on behalf of a candidate for public office or recipient committee as defined in section 2 of P.L. , c. (C. )(now pending before the Legislature as this bill) exceed, in the aggregate, $2,500.00 in any year. Any lobbyist required to file a report pursuant to this section may designate a legislative agent in its employ or otherwise engaged or used by it to file a report on its behalf; provided such designation is made in writing by the lobbyist, is acknowledged in writing by the designated legislative agent and is filed with the Election Law Enforcement Commission on or before the date on which the report of the lobbyist is due for filing, and further provided that any violation of this act shall subject both the lobbyist and the designated legislative agent to the penalties provided in this act.

This section shall not be construed to authorize any person to make or authorize, or to cause to be made or authorized, any expenditure providing a benefit, or to provide a benefit, the provision or receipt of which is prohibited under the "New Jersey Conflicts of Interest Law," P.L.1971, c.182 (C.52:13D-12 et seq.) or any code of ethics promulgated thereunder, or under any other law or any executive order, rule or regulation.

(cf: P.L.1991, c.243, s.5)

27. 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 member of the Legislature shall hold at the same time another elective office in this State.

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 [7] 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.1971, c.2, s.9)

28. N.J.S.40A:9-4 is amended to read as follows:

40A:9-4. (1) It shall be [lawful] unlawful for a person to hold simultaneously more than one of the following: an elective county office [and], an elective municipal office, or any appointive position on a county or municipal entity.

(2) It shall be [lawful] unlawful for a member of the Legislature of the State to hold [simultaneously] any elective [or appointive] office [or position] in county or municipal government or any appointive position on a county or municipal entity.

[(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 he believes he 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. Nothing herein contained shall be deemed to repeal or supersede any statute prohibiting the dual holding of offices or positions.

b. This section shall apply to persons now holding elective offices or positions with the counties and municipalities or now serving as members of the Legislature of the State.

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.

(cf: P.L.1971, c.200, s.1)

29. This act shall take effect immediately, except that sections 28 and 29 shall remain inoperative until January 1 of the fourth year following enactment.

STATEMENT

This bill:

1) limits political campaign contributions by certain government contractors (sections 2 through 9);

2) requires financial disclosure statements for certain Executive Branch and Legislative Branch members, officers and employees, and provides and changes certain ethics provisions for members of the Legislature (sections 10 through 20);

3) expands disclosure by legislative agents and lobbyists for activities that influence the promulgation of executive orders, the rendering of administrative determinations, the development, negotiation or award of State contracts, the issuance, denial or modification of permits, the imposition or modification of penalties, and the award of financial assistance (sections 21 through 26); and

4) prohibits members of the Legislature and elected county and municipal officials from simultaneously holding another elective or appointive county or municipal office (sections 27 and 28).