Ethics Rules for Uncompensated Board and Commission Members

            The New Jersey Conflicts of Interest Law applies not only to full-time State employees but also to individuals who serve in a voluntary capacity on State boards and commissions.  The Law defines those who serve in such a capacity as “special State officers.”

            Provided below is a summary, based on materials prepared by the State Ethics Commission, of the provisions of the New Jersey Conflicts of Interest Law, N.J.S.A. 52:13D-12 et seq., that apply to special State officers.  (References to section numbers below are to the sections of the Conflicts of Interest Law.)  This summary reflects interpretations of the statutory provisions by the State Ethics Commission.

Representing Parties before Your Agency

            You are prohibited from representing any party other than the State in connection with any cause, proceeding, application, or other matter (such as a permit or grant application) pending before your agency (section 16).  This prohibition also extends to any partnership, firm, or corporation in which you have an “interest.”  The term “interest” is defined as: (1) more than 10% of the profits or assets of a firm or more than 10% of stock in a corporation other than a professional services corporation, (2) any interest in a professional services corporation, or (3) ownership or control of more than 1% of the profits of a firm, association, or partnership or more than 1% of the stock of any corporation that is the holder of or applicant for a casino license or in any holding or intermediary company with respect thereto.

Contracts with Your Agency

            If you have duties or responsibilities in connection with your agency’s contracting activities, you are prohibited from undertaking any contract, agreement, sale, or purchase of the value of $25 or more made by your agency unless the contract is made after public notice and competitive bidding and with the prior approval of the State Ethics Commission. This prohibition applies if the board on which you serve has the authority to review and approve contracts.  Also, this prohibition extends to any partnership in which you are a partner and to any corporation in which you own or control more than 1% of the stock (section 19).  Also, you are prohibited from acting as an officer or agent of your agency in the transaction of any business with yourself or with a corporation, company, association, or firm in which you have an interest, interest being defined with regard to this prohibition as greater than 10% ownership (section 20).

Restrictions Following State Service           

            With regard to activities following State service, you are prohibited from representing, appearing for, negotiating on behalf of, providing “insider” information or services to, or agreeing to perform any of those activities for any person or party other than the State in connection with any specific cause, proceeding, application, or other matter in which you have been “substantially and directly involved” during the course of your government service.  This prohibition also extends to any firm in which you have more than a 10% interest (section 17).

Casino-Related Restrictions

            With regard to casinos, you (along with any members of your immediate family) are prohibited from holding an interest in or representing, appearing for, or negotiating on behalf of a holder of or applicant for a casino license, or any holding or intermediary company with respect thereto, in connection with any matter.  However, you may hold employment with a casino license holder or applicant if the Commission grants a waiver and, if so employed, you may hold an interest in or represent, appear for, or negotiate on behalf of the casino employer.  Members of your immediate family can also secure a waiver (section 17.2).

Acceptance of Gifts

            You are prohibited from accepting from any person, directly or indirectly or through your spouse or member of your family or through any partner or associate, any gift, favor, service, employment, or offer of employment or any other thing of value which is offered with the intent to influence you in the performance of your duties or responsibilities (section 14).  Also, you are prohibited from accepting any gift, favor, service, or other thing of value under circumstances from which it might be reasonably inferred that the gift, service, or other thing of value was offered or given for the purpose of influencing you in the discharge of your official duties.  As a general rule, the Commission requires that gifts from entities with which your agency does State business must be reported and remitted immediately to the agency ethics liaison officer (section 23(e)(6)).  Rules regarding gifts can be found in the Commission’s regulations published in the New Jersey Administrative Code at N.J.A.C. 19:61-6.9 and 6.10 and available on the Commission’s website (http://nj.gov/ethics/).

            Also, you are prohibited from soliciting, receiving, or agreeing to receive from any source other than the State any compensation, reward, employment, gift, or other thing of value for any service, advice, assistance, or other matter related to your official duties.  There are very limited circumstances under which you may be permitted to accept direct or indirect benefits from an entity that is an interested party with respect to your agency (section 24).  The Commission has promulgated rules about attendance at events and acceptance of benefits, and these are codified in the New Jersey Administrative Code at N.J.A.C. 19:61-6.1 et seq. and also are available on the Commission’s website (http://nj.gov/ethics/).

Employment of Relatives

            Your agency is prohibited from hiring any of your relatives.  The term “relative” is defined very broadly.  If a relative is already employed by the agency at the time of your appointment, the relative can retain his/her position but you cannot supervise or exercise authority with regard to personnel actions regarding the relative.
General Conflict of Interest Prohibitions

• You are prohibited from having any interest, financial or otherwise, or engaging in any business or transaction or professional activity which is in substantial conflict with the proper discharge of your duties in the public interest (section 23(e)(1)).

• You must notify the Commission if you engage in any business, profession, trade, or occupation which is subject to licensing or regulation by an agency of State government (section 23(e)(2)).

• You are prohibited from using or attempting to use your official position to secure unwarranted privileges or advantages for you or others (section 23(e)(3)).

• You cannot act in an official capacity in any matter in which you have a direct or indirect personal financial interest that might reasonably be expected to impair your objectivity or independence of judgment (section 23(e)(4)).

• You are prohibited from undertaking any employment or service which might reasonably be expected to impair your objectivity and independence of judgment in the exercise of your official duties (section 23(e)(5)).

• You should not knowingly act in any way that might be reasonably be expected to create an impression or suspicion among the public having knowledge of your acts that you may be engaged in conduct violative of your trust as a special State officer (section 23(e)(7)).

• You are prohibited from willfully disclosing to any person any information not generally available to members of the public which you receive or acquire in the course of and by reason of your official duties (section 25).