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ETHICAL STANDARDS
The following questions and answers are provided in an
effort to acquaint employees' with some of the major provisions of the
Conflicts of Interest Law and Code of Ethics adopted pursuant to that
law. This is not designed to cover all the provisions of that law or all
the conflict of interest problems which employees might confront.
Rather, it is only intended to highlight some major provisions in the
law. For specific prohibitions and limitations, each employee may
consult the New Jersey Conflicts of Interest Law itself, which is found
in N.J.S.A. 52:13D-12, et seq. and the code of ethics of his/her own
agency.
If specific questions arise concerning the law or employees are
confronted with a conflict of interest situation, the Executive
Commission on Ethical Standards, located at 28 West State Street,
Trenton, New Jersey, is available for consultation.
To whom does the Conflicts Law apply?
The Conflicts Law applies to all officers and employees in the Executive
and Legislative branches of state government. This includes compensated
and uncompensated, part-time and full-time, and classified and
unclassified Department of Personnel personnel.
What prohibitions are contained in the Conflicts Law?
For the specific prohibitions contained in the law, it is necessary to
read and become familiar with the law itself. Some of the general
prohibitions, however, are contained in the answers to the following
questions.
Is there any limitation placed on the acceptance of gifts, gratuities
or other things of value by persons in state government?
A state employee may not directly solicit, receive, or agree to receive
anything of value for any service, advice, assistance, or other matters
related to his/her official duties.
However, individuals may receive reasonable fees for speeches of
published works and reimbursement for actual expenses connected with
them. These payments are only permissible where (a) no payment for these
is made by the State of New Jersey, and (b) where the payment is not
being made by a person or business which is regulated, inspected,
supervised, or otherwise dealt with by the agency in which the
government official is employed.
In addition, another section of the Conflicts Law prohibits a state
employee from directly or indirectly accepting anything of value,
including any gift, favor, service, employment, or offer of employment,
which he/she either knows or has reason to believe is being offered for
the purpose of influencing him/her in the performance of his/her duties.
This limitation both prohibits the individual from directly accepting
the item and also prohibits him/her from accepting it through another
person such as his/her spouse, any member of his/her family, or through
any of his/her partners of associates.
Whenever a person's official duties and responsibilities relate to a
person or organization, he/she should be extremely cautious about
accepting any gift, favor, or thing of value from such a person or
entity.
May a state officer or employee or a "special" state officer or
employee or legislator accept campaign contributions if he/she is either
an announced candidate for elected office or acting as a campaign worker
for such a candidate?
Yes. The Conflicts Law specifically states that the sections covering
the acceptance of gifts or emoluments shall not apply to the acceptance
of contributions to the campaign of an announced candidate for elected
office. The individual, however, should be cautious of other specific
provisions outside of the Conflicts Law dealing with this activity. An
example of another law on this subject is the Federal Hatch Act.
What should an individual do if offered a gratuity or gift in
connection with state duties.
As a general rule, when an individual believes that he/she is being
offered a gratuity or gift in connection with official duties, he/she
should immediately: (a) terminate the discussion with the person making
the offer; (b) reduce to writing the event that transpired including the
words used by the person in making the offer; (c) notify the department
head, the New Jersey Division of Criminal Justice, the Executive
Commission on Ethical Standards, other Joint Legislative Committee on
Ethical Standards; and (d) thereafter, await further instructions.
What are the consequences of directly or indirectly soliciting a
gratuity or bribe?
A person who directly or indirectly solicits a gratuity or bribe will be
immediately suspended and, upon a factual determination that the
gratuity or bribe was solicited or accepted, will be fired, and possibly
prosecuted. In addition, criminal prosecution will be initiated for
extortion, misconduct in office and/or conspiracy.
Failure to promptly notify your department head that a gratuity or bribe
has been solicited could constitute the grounds for suspension or
dismissal and could result in criminal prosecution for misconduct in
office or concealment of a crime or both.
May a state employee contract with a state agency where the contract
does not relate to his/her official duties and responsibilities?
The law prohibits knowingly undertaking or executing (in whole or in
part) any contract, agreement, sale, or purchase of the value of $25 or
more which is made, entered into, awarded, or granted by any state
agency.
The above prohibition also extends to partners and business associates.
Employees are prohibited from executing an agreement or sale with a
state agency through any corporation which they control, own or control
more than ten percent of the stock. Similarly, you are prohibited from
using any other person to execute an agreement or sale with a state
agency for their own use or benefit.
May a state officer or employee, or "special" state officer or
employee represent a person or business before a state agency on a
matter unrelated to his/her official duties and responsibilities?
They are specifically prohibited from either agreeing to, or in fact
representing, appearing for, or negotiating 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, other than
those listed below. Like the provision governing "special" state
officers or employees, this prohibition extends to any partnership,
firm, or corporation in which the state officer or employee has an
interest or to any partnership, firm, or corporation.
State officers are not prohibited from representing a person or part in
any of the following instances:
- before a court of record;
- in regard to a claim for workman's compensation;
- in a proceeding related to the determination or review of transfer,
inheritance or estate taxes;
- before the Division of Tax Appeals;
- in connection with the filing of corporate or other documents in the
office of the Secretary of State;
- before the Division of Civil Rights;
- before the New Jersey State Board of Mediation;
- before the New Jersey Public Employment Relations Commission;
- before the Unsatisfied Claim and Judgment Fund Board solely for the
purpose of filing a notice of intention; or
- in any proceeding on behalf of a county, municipality, school
district, or any authority, agency, or commission of anythereof, except
where the state is an adversary party and provided that the employee is
not holding office or employment in the state agency in which any such
proceeding is pending.
Is the prohibition against contracting within any state agency
absolute or are there exceptions?
The law excepts only three categories of contracts from the general
prohibition. Before entering into a contract falling within any of these
categories, approval must be obtained from either the Joint Legislative
Committee on Ethical Standards or the Executive Commission on Ethical
Standards, depending upon which branch of government the employee is in.
The three categories of contracts are:
- those purchases, contacts, agreements, or sales that are made after
public notice and competitive bidding;
- those that may
be awarded without public advertising and competitive bidding pursuant
to Sec. 5 of Chapter 48 of the Laws of 1944 (N.J.S.A. 52:34-10); and
- any contract of insurance entered into by the Director
of the Division of Purchase and Property, Department of the Treasury
pursuant to Sec. 10 of Art. 6 of Chapter 112 of the laws of 1944 (N.J.S.A.
52:27B-62).
May a state employee act in his/her official capacity in a matter of
affecting him/herself?
The law states that no legislator, state officer or employee, or
"special" state officer or employee shall act as an officer or agent of
a state agency for the transaction of any business with him/herself of
with a corporation, company, association, or firm in the pecuniary
profits of which he/she has an interest. The codes of ethics of all
state agencies also contain a provision to the effect that a state
officer or employee shall not act in his/her official capacity in any
matter wherein he/she has a direct or indirect personal financial
interest that might be expected to impair his/her objectivity or
independence of judgment. There is also a rule of common law that no
government official or employee may act in any matter in which he/she
has a direct or indirect interest.
Does the Conflicts Law impose any restrictions upon a state employee
after he/she leaves state service?
Yes. The law provides that after the termination of his/her employment,
no state officer or employee or "special" officer or employee shall
either agree to, or in fact 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 in which he/she made any
investigation, rendered any ruling, gave any opinion, or had been
otherwise substantially and directly involved during the course of
his/her state service. The former state officer or employee is
prohibited from acting him/herself and also from acting through any
partnership, firm, or corporation in which he/she has an interest or
through any partner, officer, or employee of that partnership, firm, or
corporation.
In addition to the Conflicts Law, are there other ethical standards
applicable to state personnel?
Yes. Each state agency must promulgate a code of ethics to guide and
govern the conduct of state officers and employees in the particular
agency in which the code is applicable.
Are there other regulations or prohibitions I need to consider?
Yes. There are certain constraints on the political activity of state
employees covered by the Hatch Act. Under the Hatch Act, executive
branch employees in any state agency or local government whose principal
employment is in connection with an activity financed in whole or in
part by federal loans or grants may not use their authority or influence
for the purpose of interfering with or affecting the result of an
election or nomination for office. They may not directly or indirectly
coerce, attempt to coerce, command, or advise a state or local officer
or employee to pay, lend, or contribute anything of value to a political
party, committee, organization, agency or person, for a political
purpose. Under a recent amendment, they may take an active part in
political management or in political campaigns, but they may not be a
candidate for partisan elective office.
In addition, New Jersey law states that:
"No holder of public office or position shall demand payment or
contribution from another holder of a public office or position for the
campaign purposes of any candidate or for the use of any political
party."
In addition, there are certain restrictions regarding state worker
activity in the casino industry, both during and, for some state
officers and employees, after termination of state service.
Specifically, the Casino Ethics Amendment to the Conflicts Law provides
that no state officer or employee, nor any partnership, firm or
corporation with which any such state officer or employee is associated
or in which he/she has an interest, nor any partner, officer, director
or employee while he/she is associated with such partnership, firm, or
corporation, shall hold, directly or indirectly, an interest in, or hold
employment with, or represent, appear for, or negotiate on behalf of any
holder, or, applicant for, a casino license, or any holding or
intermediary company with respect thereto, in connection with any cause,
application, or matter. No special state officer or employee without
responsibility for matters affecting casino activity excluding those
serving in the Departments of Education, Health, Higher Education and
Human Services, shall hold, directly or indirectly, an interest in, or
hold employment with, or represent, appear for, or negotiate on behalf
of, any holder of, or applicant for a casino license, or any holding or
intermediary company with respect thereto, in connection with any cause,
application, or matter.
Ethical limitations unique to an employees job shall further be
discussed with his/her supervisor.
PERSONNEL - 43-03-001
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