As used in this chapter, the following terms shall have the
meanings indicated:
BOARD
The Local Finance Board in the Division of Local Government
Services in the Department of Community Affairs.
BUSINESS ORGANIZATION
Any corporation, partnership, firm, enterprise, franchise,
association, trust, sole proprietorship, union or other legal entity.
GOVERNING BODY
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. (N.J.S.A. 40:41A-1
et seq.), as defined in the form of government adopted by the county
under the act.
INTEREST
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.
LOCAL GOVERNMENT AGENCY
Any agency, board, governing body, including the chief executive
office, bureau, division, office, commission, or other instrumentality
within a municipality, and any independent local authority, including
an entity created by more than one municipality, which performs functions
other than of a purely advisory nature, but shall not include a school
board.
LOCAL GOVERNMENT EMPLOYEE
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.
LOCAL GOVERNMENT OFFICER
Any person, whether compensated or not, whether part-time
or full-time, elected to any office of a local government agency,
serving on a local government agency which has the authority to enact
ordinances, approve development applications or grant zoning variances,
who is a member of an independent municipal, county or regional authority,
or 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 (N.J.S.A. 34:13A-3) but shall not
mean any employee of a school district or member of a school board.
The Local Finance Board in the Division of Local Government
Services in the Department of Community Affairs shall have jurisdiction
to govern and guide the conduct of local government officers or employees
regarding violations of the provisions of this chapter in accordance
with the provisions of this chapter. The Board, in interpreting and
applying the provisions of this chapter, 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.
Local government officers or employees under the jurisdiction
of the Local Finance Board shall comply with the following provisions:
A. No local government officer or employee or member of his immediate
family 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. Former authority members.
(1) No independent local authority shall, for a period of one year next
subsequent to the termination of office of a member of that authority:
(a)
Award any contract which is not publicly bid to a former member
of that authority;
(b)
Allow a former member of that authority to represent, appear
for or negotiate on behalf of any other party before that authority;
or
(c)
Employ for compensation, except pursuant to open competitive
examination in accordance with Title 11A, if applicable, of the New
Jersey Statutes and the rules and regulations promulgated pursuant
thereto, any former member of that authority.
(2) The restrictions contained in this subsection shall also apply to
any business organization in which the former authority member of
that authority.
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 member of his immediate family,
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 prejudice his independence of judgment in the exercise
of his official duties.
F. No local government officer or employee, member of his immediate
family, or business organization in which he has an interest, shall
solicit or accept any gift, favor, loan, political contribution, service,
promise of future employment, or other thing of value based upon an
understanding that the gift, favor, loan, contribution, service, promise,
or other thing of value was given or offered for the purpose of influencing
him, directly or indirectly, in the discharge of his official duties.
This provision shall not apply to the solicitation or acceptance of
contributions to the campaign of an announced candidate for elective
public officer, 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 use, or allow to be
used, his public office or employment, or 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, for the
purpose of securing financial gain for himself, any member of his
immediate family, or any business organization with which he is associated.
H. No local government officer or employee or business organization
in which he has an interest shall represent 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.
I. 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.
J. 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.
K. 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.
With respect to its responsibilities for the implementation
of the provisions of this chapter, the Local Finance Board shall have
the following powers:
A. To initiate, receive, hear and review complaints and hold hearings
with regard to possible violations of this chapter;
B. To issue subpoenas for the production of documents and the attendance
of witnesses with respect to its investigation of any complaint or
to the holding of a hearing;
C. To hear and determine any appeal of a decision made by a municipal
ethics board;
D. To forward to the County Prosecutor or the Attorney General or other
governmental body any information concerning violations of this chapter
which may become the subject of criminal prosecution or which may
warrant the institution of other legal proceedings by the Attorney
General;
E. To render advisory opinions as to whether a given set of facts and
circumstances would constitute a violation of this chapter;
F. To enforce the provisions of this chapter and to impose penalties
for the violation thereof as are authorized by this chapter; and
G. To adopt rules and regulations pursuant to the Administrative Procedure
Act, P.L. 1968, c. 410 (N.J.S.A. 52:14B-1 et seq.) and to do other
things as are necessary to implement the purposes of this chapter.
A local government officer or employee may request and obtain
from the Local Finance Board an advisory opinion as to whether any
proposed activity or conduct would in its opinion constitute a violation
of the provisions of this chapter. Advisory opinions of the Board
shall not be made public, except when the Board by the vote of 2/3
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 in directing that the opinion
be made public so determines.
The Local Finance Board, upon receipt of a signed written complaint
by an person alleging that the conduct of any local government officer
or employee is in conflict with the provisions of this chapter, shall
acknowledge receipt of the complaint within 30 days of receipt and
initiate an investigation concerning the facts and circumstances set
forth in the complaint. The board shall make a determination as to
whether the complaint is within its jurisdiction or frivolous or without
any reasonable factual basis. If the Board shall conclude that the
complaint outside its jurisdiction, frivolous or without factual basis,
it shall reduce that conclusion to writing and shall transmit a copy
thereof to the complainant and to the local government officer or
employee against whom the complaint was filed of the nature of the
complaint and the facts and circumstances set forth therein. The officer
or employee shall have the opportunity to present the Board with any
statement or information concerning the complaint which he wishes.
Thereafter, if the Board determines that a reasonable doubt exists
as to whether the local government officer or employee is in conflict
with the provisions of this chapter, the Board shall conduct a hearing
in the manner prescribed by § 26-12 of this chapter, concerning
the possible violation and any other facts and circumstances which
may have come to the attention of the Board with respect to the conduct
of the local government officer or employee. The Board shall render
a decision as to whether the conduct of the officer or employee is
in conflict with the provisions of this chapter. This decision shall
be made by no less than 2/3 of all members of the Board. If the Board
determines that the officer or employee is in conflict with the provisions
of this chapter, it may impose any penalties which it believes appropriate
within the limitations of this chapter. A final decision of the Board
may be appealed in the same manner as any other final state agency
decision.
The finding by the Local Finance Board that an appointed local
government officer or employee is guilty of the violation of the provisions
of this chapter, or of any code of ethics in effect pursuant to this
chapter, 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 code of ethics in effect pursuant
to this chapter, 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.