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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