S342

An Act concerning local government ethics, revising various parts of the statutory law, and supplementing, P.L.1991, c.29 (C.40A:9-22.1 et seq.), and P.L.1971, c.182 (C.52:13D-12 et seq.).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 3 of P.L.1991, c.29 (C.40A:9-22.3) is amended to read as follows:

3. As used in this act:

a. ["Board" means the Local Finance Board in the Division of Local Government Services in the Department of Community Affairs;] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)

b. "Business organization" means any corporation, partnership, firm, enterprise, franchise, association, trust, sole proprietorship, union or other legal entity;

c. "Governing body" means, in the case of a municipality, the commission, council, board or body, by whatever name it may be known, having charge of the finances of the municipality, and, in the case of a county, the board of chosen freeholders, or, in the case of a county having adopted the provisions of the "Optional County Charter Law," P.L.1972, c.154 (C.40:41A-1 et seq.), as defined in the form of government adopted by the county under that act;

d. "Interest" means the ownership or control of more than 10% of the profits, assets or stock of a business organization but shall not include the control of assets in a nonprofit entity or labor union;

e. "Local government agency" means any agency, board, governing body, including the chief executive officer, bureau, division, office, commission or other instrumentality within a county or municipality, and any independent local authority, including any entity created by more than one county or municipality, which performs functions other than of a purely advisory nature, but shall not include a school board;

f. "Local government employee" means any person, whether compensated or not, whether part-time or full-time, employed by or serving on a local government agency who is not a local government officer, but shall not mean any employee of a school district;

g. "Local government officer" means any person whether compensated or not, whether part-time or full-time: (1) elected to any office of a local government agency; (2) serving on a local government agency which has the authority to enact ordinances, approve development applications or grant zoning variances; (3)
who is a member of an independent municipal, county or regional authority; or (4) who is a managerial executive or confidential employee of a local government agency, as defined in section 3 of the "New Jersey Employer-Employee Relations Act," P.L.1941, c.100 (C.34:13A-3), but shall not mean any employee of a school district or member of a school board;

h. ["Local government officer or employee" means a local government officer or a local government employee;] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)

i. "Member of immediate family" means the spouse [or dependent child], civil union partner, domestic partner, child, parent, or sibling, whether by blood, marriage or adoption, of a local government officer or employee residing in the same household;

j. “Cohabitant” means any person who resides with the local government officer or employee;

k. “Commission” means the State Ethics Commission established in but not of the New Jersey Department of Law and Public Safety by the provisions of P.L.1971, c.182 (C.52:13D-12 et seq.);

l. “Financial Disclosure Statement” means a comprehensive statement of assets, liabilities, business interests and sources of income which persons occupying certain positions in government are required to file annually pursuant to statute, regulation, or Executive Order;

m. “Party” means any group, government entity, association, organization, firm, partnership, or corporation; and

n. “Relative” means an individual’s spouse, civil union partner, or domestic partner, or the individual’s, spouse’s, civil union partner’s, or domestic partner’s parent, child, brother, sister, aunt, uncle, niece, nephew, grandparent, grandchild, son-in-law, daughter-in-law, stepparent, stepchild, stepbrother, stepsister, half-brother, or half-sister, whether the relative is related by blood, marriage, or adoption.

(cf: P.L.1991, c.29, s.3)

2. Section 3 of P.L.1991. c.29 (C.40A:9-22.3) is amended to read as follows:

3. As used in this act:

a. "Board" means the Local Finance Board in the Division of Local Government Services in the Department of Community Affairs;

b. "Business organization" means any corporation, partnership, firm, enterprise, franchise, association, trust, sole proprietorship, union or other legal entity;

g. "Local government officer" means any person whether compensated or not, whether part-time or full-time: (1) elected to any office of a local government agency; (2) serving on a local government agency which has the authority to enact ordinances, approve development applications or grant zoning variances; (3) who is a member of an independent municipal, county or regional authority; or (4) who is a managerial executive employee of a local government agency, as defined in rules and regulations adopted by State Ethics Commission in consultation with the Director of the Division of Local Government Services in the Department of Community Affairs pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), but shall not mean any employee of a school district or member of a school board;

h. "Local government officer or employee" means a local government officer or a local government employee;

i. "Member of immediate family" means the spouse or dependent child of a local government officer or employee residing in the same household.

(cf: P.L.2015, c.95, s.21)

3. Section 4 of P.L.1991, c.29 (C.40A:9-22.4) is amended to read as follows:

4. The [Local Finance Board in the Division of Local Government Services in the Department of Community Affairs] State Ethics Commission shall have jurisdiction to govern and guide the conduct of local government officers or employees regarding violations of the provisions of this act, or the uniform local ethics code promulgated pursuant to section 11 of P.L. , c. (C. ) (pending before the Legislature as this bill) [who are not otherwise regulated by a county or municipal code of ethics promulgated by a county or municipal ethics board in accordance with the provisions of this act]. Local government officers or employees serving a local government agency created by more than one county or municipality and officers or employees of county colleges established pursuant to N.J.S.18A:64A-1 et seq. shall be under the jurisdiction of the [board] commission. The [board] commission in interpreting and applying the provisions of this act shall recognize that under the principles of democracy, public officers and employees cannot and should not be expected to be without any personal interest in the decisions and policies of government; that citizens who are government officers and employees have a right to private interests of a personal, financial and economic nature; and that standards of conduct shall distinguish between those conflicts of interest which are legitimate and unavoidable in a free society and those conflicts of interest which are prejudicial and material and are, therefore, corruptive of democracy and free society.

(cf: P.L.1995, c.21, s.1)

4. Section 6 of P.L.1991, c.29 (C.40A:9-22.6) is amended to read as follows:

6. a. Local government officers and certain local government employees as designated by regulation shall annually file a financial disclosure statement. [All financial disclosure statements filed pursuant to this act shall include the following information which shall specify, where applicable, the name and address of each source and the local government officer's job title:

(1) Each source of income, earned or unearned, exceeding $2,000 received by the local government officer or a member of his immediate family during the preceding calendar year. Individual client fees, customer receipts or commissions on transactions received through a business organization need not be separately reported as sources of income. If a publicly traded security is the source of income, the security need not be reported unless the local government officer or member of his immediate family has an interest in the business organization;

(2) Each source of fees and honorariums having an aggregate amount exceeding $250 from any single source for personal appearances, speeches or writings received by the local government officer or a member of his immediate family during the preceding calendar year;

(3) Each source of gifts, reimbursements or prepaid expenses having an aggregate value exceeding $400 from any single source, excluding relatives, received by the local government officer or a member of his immediate family during the preceding calendar year;

(4) The name and address of all business organizations in which the local government officer or a member of his immediate family had an interest during the preceding calendar year; and

(5) The address and brief description of all real property in the State in which the local government officer or a member of his immediate family held an interest during the preceding calendar year.]

b. The [Local Finance Board] State Ethics Commission shall prescribe a financial disclosure statement form for filing purposes which shall be available for download from the commission’s Internet website. [For counties and municipalities which have not established ethics boards, the board shall transmit sufficient copies of the forms to the municipal clerk in each municipality and the county clerk in each county for filing in accordance with this act. The municipal clerk shall make the forms available to the local government officers serving the municipality. The county clerk shall make the forms available to the local government officers serving the county.

For counties and municipalities which have established ethics boards, the Local Finance Board shall transmit sufficient copies of the forms to the ethics boards for filing in accordance with this act. The ethics boards shall make the forms available to the local government officers within their jurisdiction.

For local government officers serving the municipality, the original statement shall be filed with the municipal clerk in the municipality in which the local government officer serves. For local government officers serving the county, the original statement shall be filed with the county clerk in the county in which the local government officer serves.] A copy of the statement shall be filed with the [board] commission. [In counties or municipalities which have established ethics boards a copy of the statement shall also be filed with the ethics board having jurisdiction over the local government officer. Local government officers shall file the initial financial disclosure statement within 90 days following the effective date of this act. Thereafter, statements] A statement shall be filed on or before [April 30th] May 15th each year, except that each local government officer shall file a financial disclosure statement within [30] 120 days of taking office.

c. All financial disclosure statements filed shall be public records.

d. Failure to file the financial disclosure statement by the prescribed deadline shall result in a civil penalty of $50 per day that the statement is late, which may be collected in a summary proceeding pursuant to the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.).

(cf: P.L.2008, c.72, s.1)

5. Section 8 of P.L.1991, c.29 (C.40A:9-22.8) is amended to read as follows:

8. A local government officer or employee [not regulated by a county or municipal code of ethics] may request and obtain from the [Local Finance Board] State Ethics Commission an advisory opinion as to whether any proposed activity or conduct would in its opinion constitute a violation of the provisions of this act or the uniform local ethics code promulgated pursuant to section 11 of P.L. , c. (C. ) (pending before the Legislature as this bill). Advisory opinions of the [board] commission shall not be made public, except when the [board] commission by the vote of two-thirds of all of its members directs that the opinion be made public. Public advisory opinions shall not disclose the name of the local government officer or employee unless the [board] commission in directing that the opinion be made public so determines.

(cf: P.L.1991, c.29, s.8)

6. Section 10 of P.L.1991, c.29 (C.40A:9-22.10) is amended to read as follows:

10. a. [An] Any current or former appointed local government officer or employee found guilty by the [Local Finance Board or a county or municipal ethics board] State Ethics Commission of the violation of any provision of [P.L.1991, c.29 (C.40A:9-22.1 et seq.)] P.L. , c. (C. ) (pending before the Legislature as this bill), or of any code of ethics in effect pursuant to [P.L.1991, c.29 (C.40A:9-22.1 et seq.)] P.L. , c. (C. ) (pending before the Legislature as this bill), 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] the “Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.); provided, however, the commission may impose lesser fines or reprimands when warranted by the nature of the violation. The [board or a county or municipal ethics board] commission shall report its findings to the office or agency having the power of removal or discipline of the appointed local government officer or employee and may recommend that further disciplinary action be taken.

b. [An] Any current or former elected local government officer or employee found guilty by the [Local Finance Board or a county or municipal ethics board] State Ethics Commission of the violation of any provision of [P.L.1991, c.29 (C.40A:9-22.1 et seq.)] P.L. , c. (C. ) (pending before the Legislature as this bill) or of any code of ethics in effect pursuant to [P.L.1991, c.29 (C.40A:9-22.1 et seq.)] P.L. , c. (C. ) (pending before the Legislature as this bill), 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] the “Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.); provided, however, the commission may impose lesser fines or reprimands when warranted by the nature of the violation.

c. The remedies provided herein are in addition to all other criminal and civil remedies provided under the law.

(cf: P.L.1999, c.440, s.101)

7. Section 11 of P.L.1991, c.29 (C.40A:9-22.11) is amended to read as follows:

11. The finding by the [Local Finance Board or a county or municipal ethics board] State Ethics Commission that an appointed local government officer or employee is guilty of the violation of the provisions of this act [, or of any code of ethics in effect pursuant to this act,] or the uniform local ethics code promulgated pursuant to section 11 of P.L. , c. (C. ) (pending before the Legislature as this bill), shall be sufficient cause for his removal, suspension, demotion or other disciplinary action by the officer or agency having the power of removal or discipline. When a person who is in the career service is charged with violating the provisions of this act or any code of ethics in effect pursuant to this act, the procedure leading to removal, suspension, demotion or other disciplinary action shall be governed by any applicable procedures of Title 11A of the New Jersey Statutes and the rules promulgated pursuant thereto.

(cf: P.L.1991, c.29, s.11)

8. Section 13 of P.L.1991, c.29 (C.40A:9-22.13) is amended to read as follows:

13. [a.] Each county of the State governed under the provisions of P.L.1972, c.154 (C.40:41A-1 et seq.) [may, by ordinance, and the remaining counties may] shall, by resolution [establish] appoint a county ethics [board consisting of six members who are residents of the county, at least two of whom shall be public members. The members of the ethics board shall be appointed by the governing body of the county and no more than one of whom shall be from the same municipality. The members shall be chosen by virtue of their known and consistent reputation for integrity and their knowledge of local government affairs. No more than three members of the ethics board shall be of the same political party.

b. The members of the county ethics board shall annually elect a chairman from among the membership.

c. The members] ombudsman who shall serve without compensation for a term of five years[; except that of the members initially appointed, two of the public members shall be appointed to serve for a term of five years, one member shall be appointed to serve for a term of four years, and the remaining members shall be appointed to serve for a term of three years. Each member shall serve until his successor has been appointed and qualified. Any vacancy occurring in the membership of the ethics board shall be filled in the same manner as the original appointment for the unexpired term.

d. Members of the ethics board shall serve without compensation but shall be reimbursed by the county for necessary expenses incurred in the performance of their duties under this act]. The county ethics ombudsman shall function as a liaison between the county, including its authorities, and the State Ethics Commission's local government ethics adviser. The county ethics ombudsman shall assist county local government officers and employees concerning ethics matters, distribute to its officers and employees any ethics-related correspondence or instructions from the commission, and provide the commission with ethics-related documents and information requested pertaining to the county local government officers and employees.

(cf: P.L.1991, c.29, s.13)

9. Section 19 of P.L.1991, c.29 (C.40A:9-22.19) is amended to read as follows:

40A:9-22.19. a. Each municipality of the State [may] shall, by [ordinance, establish] resolution appoint a municipal ethics [board consisting of six members who are residents of the municipality, at least two of whom shall be public members. The members of the ethics board shall be appointed by the governing body of the municipality. The members shall be chosen by virtue of their known and consistent reputation for integrity and their knowledge of local government affairs. No more than three members of the ethics board shall be of the same political party.

b. The members of the municipal ethics board shall annually elect a chairman from among the membership.

c. The members] ombudsman who shall serve, without compensation, for a term of five years[; except that of the members initially appointed, two of the public members shall be appointed to serve for a term of five years, one member shall be appointed to serve for a term of four years, and the remaining members shall be appointed to serve for a term of three years. Each member shall serve until his successor has been appointed and qualified. Any vacancy occurring in the membership of the ethics board shall be filled in the same manner as the original appointment for the unexpired term.

d. Members of the ethics board shall serve without compensation but shall be reimbursed by the municipality for necessary expenses incurred in the performance of their duties under this act]. The municipal ethics ombudsman shall function as a liaison between the municipality, including its authorities, and the State Ethics Commission's local government ethics adviser. The municipal ethics ombudsman shall assist municipal local government officers and employees concerning ethics matters, distribute to its officers and employees any ethics-related correspondence or instructions from the commission, and provide the commission with ethics-related documents and information requested pertaining to the municipal local government officers and employees.

(cf: P.L.1991, c.29, s.19)

10. 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, c.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.).

Upon the effective date of P.L.2005, c.382, the Executive Commission on Ethical Standards shall be renamed, and thereafter referred to, as the State Ethics Commission. For the purposes of complying with the provisions of Article V, Section IV, paragraph 1 of the New Jersey Constitution, the State Ethics Commission is allocated in, but not of, the Department of Law and Public Safety, but notwithstanding that allocation, the commission shall be independent of any supervision and control by the department or by any board or officer thereof.

(b) The commission shall be composed of seven members as follows: three members appointed by the Governor from among State officers and employees serving in the Executive Branch; and four public members appointed by the Governor, not more than two 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 pursuant to P.L.2003, c.160, one shall serve for a term of two years and one shall serve for a term of four years, and of the two public members first appointed pursuant to P.L.2005, c.382, one shall serve for a term of one year and one shall serve for a term of three years. The Governor shall designate one public member to serve as chairman and one member to serve as vice-chairman of the commission.

The members of the State Ethics Commission who were appointed by the Governor from among the State officers and employees serving in the Executive Branch serving on January 17, 2006 are terminated as of that day. A member terminated pursuant to this paragraph shall be eligible for reappointment.

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 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) (1) The Attorney General shall act as legal adviser and counsel to the 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.

(2) The commission shall employ a local government ethics advisor to consult with and provide support to local ethics ombudsmen on local ethics issues.

(e) (1) The 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.

(2) The commission shall employ a training officer who shall be in the unclassified service of the civil service of this State. The training officer shall devote full-time to the creation, maintenance and coordination of a training program on ethical standards. The program shall be established for the purpose specified in section 2 of P.L.2005, c.382 (C.52:13D-21.1). The program shall be provided by the training officer or assistants or deputies of such officer, or by such other persons as may be designated by the commission. The commission shall approve the form and content of the training program created by the training officer and shall determine when and at what intervals State officers and employees and special State officers and employees in a State agency in the Executive Branch shall be required to complete such a program. The training program may include content which in particular addresses the situations of certain identified groups of officers or employees such as those who are involved in contracting processes.

(3) The commission shall employ a compliance officer who shall be in the unclassified service of the civil service of this State. The compliance officer shall devote full-time to the creation, maintenance, monitoring and coordination of procedures to ensure that all State officers and employees and special State officers and employees in State agencies in the Executive Branch comply fully with all reporting and training requirements and that all materials, forms, codes, orders and notices are distributed to and acknowledged by appropriate individuals, as may be required. In addition, the compliance officer shall conduct, on such regular basis as determined by the commission, systematic audits of State agencies in the Executive Branch for compliance with the laws, regulations, codes, orders, procedures, advisory opinions and rulings concerning the ethical standards for State employees and officers and special State officers and employees.

(f) The 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 commission and the persons appointed by the commission for that purpose are hereby empowered to administer oaths and examine witnesses under oath.

(g) The 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 commission shall have jurisdiction to initiate, receive, hear and review complaints regarding violations, by any current or former State officer or employee or current or former 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 a 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).

An investigation regarding a violation committed during service by a former State officer or employee or special State officer or employee shall be initiated by the commission not later than two years following the termination of service.

The commission shall have the authority to dismiss a complaint that it determines to be frivolous.

(i) Any current or former State officer or employee or current or former 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 $500 nor more than $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 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 the 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 that person removed from office or employment and may further bar the 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.

In addition, for violations occurring after the effective date of P.L.2005, c.382, the commission may order restitution, demotion, censure or reprimand, or for a failure to file an appropriate financial disclosure statement or form, shall impose a civil penalty of $50 for each day of the violation, 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.).

(j) The remedies provided herein are in addition to all other criminal and civil remedies provided under the law.

(k) The commission shall promulgate, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), such rules and regulations as may be necessary to effectuate the purposes of P.L.1971, c.182 (C.52:13D-12 et al.).

(l) (1) The commission shall communicate periodically with the State Auditor, the State Inspector General, the State Commission of Investigation and the Office of Government Integrity, or its successor, in the Department of Law and Public Safety.

(2) The Executive Director of the commission shall meet with the head of each principal department of the Executive Branch of State Government, each board member if a board is considered the head of a principal department, and the Secretary of Agriculture, the Commissioner of Education, and the Secretary and Chief Executive Officer of the New Jersey Commerce and Economic Growth Commission, within 30 days after the head, member, secretary or commissioner takes office, and shall meet annually with these individuals as a group, to inform them of the laws, regulations, codes, orders, procedures, advisory opinions and rulings concerning applicable ethical standards.

(m) The commission shall create and maintain a toll-free telephone number to receive comments, complaints and questions concerning matters under the jurisdiction of the commission. Information or questions received by the commission by this means shall be confidential and not accessible to the public pursuant to P.L.1963, c.73 (C.47:1A-1 et seq.).

(n) Financial disclosure statements required to be submitted to the commission by law, regulation or executive order shall be made available to the public, promptly after receipt, on the Internet site of the commission, commencing with submissions for 2005.

(o) The commission shall prepare and ensure the distribution to each State officer and employee and special State officer and employee in a State agency in the Executive Branch of a plain language ethics guide which provides a clear and concise summary of the laws, regulations, codes, orders, procedures, advisory opinions and rulings concerning ethical standards applicable to such officers and employees. The guide shall be prepared to promote ethical day-to-day decision making, to give general advice regarding conduct and situations, to provide easy reference to sources, and to explain the role, activities and jurisdiction of the State Ethics Commission. Each State officer and employee and special State officer and employee shall certify that he or she has received the guide, reviewed it and understands its provisions.

(p) The commission shall have jurisdiction to enforce the provisions of an Executive Order that specifically provides for enforcement by the commission.

(cf: P.L.2005, c.382, s.1)

11. (New section) Local government officers or employees under the jurisdiction of the State Ethics Commission shall comply with the uniform local ethics code promulgated by the State Ethics Commission, which shall include the following provisions:

a. No local government officer or employee, member of his immediate family, relative, or cohabitant shall have an interest in a business organization or engage in any business, transaction, or professional activity, which is in substantial conflict with the proper discharge of his duties in the public interest;

b. No independent local authority shall, for a period of one year next subsequent to the termination of office of a member of that authority:

(1) award any contract which is not publicly bid to a former member of that authority;

(2) allow a former member of that authority to represent, appear for or negotiate on behalf of any other party before that authority; or

(3) employ for compensation, except pursuant to open competitive examination in accordance with Title 11A of the New Jersey Statutes and the rules and regulations promulgated pursuant thereto, any former member of that authority.

The restrictions contained in this subsection shall also apply to any business organization in which the former authority member holds an interest.

c. No local government officer or employee shall use or attempt to use his official position to secure unwarranted privileges or advantages for himself or others;

d. No local government officer or employee shall act in his official capacity in any matter where he, a relative or cohabitant, or a business organization in which he has an interest, has a direct or indirect financial or personal involvement that might reasonably be expected to impair his objectivity or independence of judgment;

e. No local government officer or employee shall undertake any employment or service, whether compensated or not, which might reasonably be expected to impair his objectivity or independence of judgment in the exercise of his official duties;

f. No local government officer or employee, member of his immediate family, cohabitant, partner, associate, or business organization in which he has an interest, shall directly or indirectly solicit or accept any gift, favor, loan, political contribution, service, employment, promise of future employment, or other thing of value related in any way to the local government officer’s or employee’s public duties. This provision shall not apply to the solicitation or acceptance of contributions to the campaign of an announced candidate for elective public office, if the local government officer has no knowledge or reason to believe that the campaign contribution, if accepted, was given with the intent to influence the local government officer in the discharge of his official duties;

g. No local government officer or employee shall knowingly act in any way that might reasonably be expected to create an impression or suspicion among the public having knowledge of his acts that he may be engaged in conduct violative of his trust as a local government officer or employee;

h. No local government officer or employee shall use, or willfully disclose to any person, any information, not generally available to the members of the public, which he receives or acquires in the course of and by reason of his office or employment;

i. No local government officer or employee or business organization in which he has an interest 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 local government in connection with any cause, proceeding, application or other matter pending before any agency in the local government in which he serves. This provision shall not be deemed to prohibit one local government employee from representing another local government employee where the local government agency is the employer and the representation is within the context of official labor union or similar representational responsibilities;

j. No local government officer or employee or business organization in which he has an interest shall knowingly undertake or execute, in whole or in part, any contract, agreement, sale or purchase of the value of $25 or more, made, entered into, awarded or granted by any agency in the local government in which he serves. The provisions of this subsection shall not apply to contracts, agreements, sales or purchases which are made or let after public notice and competitive bidding.

k. No local government officer or employee shall supervise, or exercise authority with regard to personnel actions over, a relative or cohabitant of the local government officer or employee;

l. No local government officer shall be deemed in conflict with these provisions if, by reason of his participation in the enactment of any ordinance, resolution or other matter required to be voted upon or which is subject to executive approval or veto, no material or monetary gain accrues to him as a member of any business, profession, occupation or group, to any greater extent than any gain could reasonably be expected to accrue to any other member of such business, profession, occupation or group;

m. No elected local government officer shall be prohibited from making an inquiry for information on behalf of a constituent, if no fee, reward or other thing of value is promised to, given to or accepted by the officer or a member of his immediate family, whether directly or indirectly, in return therefor; and

n. Nothing shall prohibit any local government officer or employee, or members of his immediate family, from representing himself, or themselves, in negotiations or proceedings concerning his, or their, own interests.

12. (New section) In addition to the powers and duties set forth in section 10 of P.L.1971, c.182 (C.52:13D-21), the State Ethics Commission may:

a. Initiate, receive, hear and review complaints and hold hearings with regarding to possible violations of P.L. , c. (C. ) (pending before the Legislature as this bill) or any code of ethics promulgated pursuant to this act by any current or former school officials, local government employee or local government officer. An investigation regarding a violation committed during service by a former local government employee or local government officer shall be initiated by the commission not later than two years following the termination of service;

b. Conduct investigations, hold hearings, and issue subpoenas to 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 commission and the persons appointed by the commission for that purpose are hereby empowered to administer oaths and examine witnesses under oath;

c. Forward to the county prosecutor or the Attorney General or other governmental body any information concerning violations of P.L. , c. (C. ) (pending before the Legislature as this bill) which may become the subject of criminal prosecution or which may warrant the institution of other legal proceedings by the Attorney General;

d. Render advisory opinions as to whether a given set of facts and circumstances would constitute a violation of this act or of a code of ethics promulgated pursuant to the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill);

e. Enforce the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) and impose penalties for the violation thereof;

f. Create a uniform local ethics code that establishes ethical standards applicable to all local government employees and local government officers;

g. Establish procedures ensuring that each local government employee or local government officer receives a copy of the uniform local ethics code. Each local government employee or local government officer shall certify that he or she has received the uniform local ethics code, reviewed it, and understands its provisions;

h. Establish an ethics training program for local government officers and employees that must be completed by local government officers and employees at such times and in such intervals as the commission shall require;

i. Conduct audits of the ethics policies, procedures and practices of local government agencies to determine their compliance with the reporting, documentation, training and other ethics requirements contained in P.L. , c. (C. ) (pending before the Legislature as this bill), a code of ethics, and any regulation adopted pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), and to require local government agencies to correct any deficiencies identified by an audit; and

j. Adopt rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) and to do other things as are necessary to implement the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill), including phasing-in the commission's local ethics responsibilities, including the financial disclosure requirements of P.L. , c. (C. ) (pending before the Legislature as this bill) in order to allow the commission time to create financial disclosure statements that comply with P.L. , c. (C. ) (pending before the Legislature as this bill) and time to implement a computerized reporting system to accommodate all persons required to file.

13. The following sections are repealed:

Sections 5, 7 and 9 of P.L.1991, c.29 (C.40A:9-22.5, C.40A:9-22.7, and C.40A:9-22.9);

Section 15 of P.L.1991, c.29 (C.40A:9-22.15);

Section 16 of P.L.1991, c.29 (C.40A:9-22.16);

Section 17 of P.L.1991, c.29 (C.40A:9-22.17);

Section 18 of P.L.1991, c.29 (C.40A:9-22.18);

Section 19 of P.L.1991, c.29 (C.40A:9-22.19);

Section 20 of P.L.1991, c.29 (C.40A:9-22.20);

Section 21 of P.L.1991, c.29 (C.40A:9-22.21);

Section 22 of P.L.1991, c.29 (C.40A:9-22.22);

Section 23 of P.L.1991, c.29 (C.40A:9-22.23); and

Section 24 of P.L.1991, c.29 (C.40A:9-22.24).

14 his act shall take effect immediately.

STATEMENT

Under this bill, the State Ethics Commission will assume responsibility for promulgating new uniform ethics codes for local officials. The State Ethics Commission, in consultation with the Director of the Division of Local Government Services in the Department of Community Affairs, would adopt new rules and regulations governing local government officers. The bill eliminates local ethics codes and boards but allows the State Ethics Commission to phase-in its local ethics responsibilities. The bill requires the commission to hear and adjudicate complaints of ethics violations against local officials and expedites the hearing procedure.

Penalties for ethical violations by local, officials are strengthened under the bill to make the penalties similar to those contained in the “New Jersey Conflicts of Interest Law” which governs State officers and employees, and special State officers and employees. The commission may impose reprimands and modest monetary penalties for minor ethics violations.

The bill also requires the State Ethics Commission to promulgate a financial disclosure form for the use of local officials and to put it on their Internet website for convenient downloading.