ASSEMBLY, No. 142
STATE OF NEW JERSEY
Introduced Pending Technical Review by Legislative Counsel
PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION
By Assemblyman JONES
An Act concerning the filing of financial disclosure statements and amending P.L.1991, c.29.
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;
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; or (5) who voluntarily serves on a continuing basis in the role of a confidential employee of, advisor to, or consultant for a local government officer and who provides direct advice to that local government officer of an economic nature, including any advice impacting decisions on the operations and finances of a local government agency;
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.1991, c.29, s.3)
2. Section 6 of P.L.1991, c.29 (C.40A:9-22.6) is amended to read as follows:
6. a. Local government officers 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; and
(6) The name and address of any person who voluntarily serves on a continuing basis in the role of a confidential employee of, advisor to, or consultant for the local government officer and who provides direct advice to the local government officer of an economic nature, including any area impacting decisions on the operations and finances of a local government agency.
b. The Local Finance Board shall prescribe a financial disclosure statement form for filing purposes. 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. 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 shall be filed on or before April 30th each year.
c. All financial disclosure statements filed shall be public records.
(cf: P.L.1991, c.29, s.6)
3. Section 7 of P.L.1991, c.29 (C.40A:9-22.7) is amended to read as follows:
7. With respect to its responsibilities for the implementation of the provisions of this act, 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 act;
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 county or municipal ethics board;
d. To forward to the county prosecutor or the Attorney General or other governmental body any information concerning violations of this act 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 act;
f. To enforce the provisions of this act and to impose penalties for the violation thereof as are authorized by this act; [and]
g. To 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 this act; and
h. To receive, hear and review requests for waivers of filing of a financial disclosure statement for local government officers serving under paragraph (5) of subsection g. of section 3 of P.L.1991, c.29 (C.40A:9-22.3) (now pending before the Legislature as this bill). Each request for a waiver shall be submitted annually and at least 60 days prior to the deadline for filing annual financial disclosure statements or within 60 days following a new appointment of a local government officer serving in the capacity as defined under paragraph (5) of subsection g. of section 3 of P.L.1991, c.29 (C.40A:9-22.3) (now pending before the Legislature as this bill). A waiver request under this subsection shall be submitted to the Local Finance Board for approval irrespective of the existence of a county or municipal ethics board.
(cf: P.L.1991, c.29, s.7)
4. Section 10 of P.L.1991, c.29 (C.40A:9-22.10) is amended to read as follows:
10. a. An appointed local government officer or employee found guilty by the Local Finance Board or a county or municipal ethics board of the violation of any provision of this act or of any code of ethics in effect pursuant to this act, shall be fined not less than $100.00 nor more than $500.00, which penalty may be collected in a summary proceeding pursuant to "the penalty enforcement law" (N.J.S.2A:58-1 et seq.). The board or a county or municipal ethics board 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 elected local government officer or employee, or a local government officer serving pursuant to paragraph (5) of subsection g. of section 3 of P.L.1991, c.29 (C.40A:9-22.3) (now pending before the Legislature as this bill) found guilty by the Local Finance Board or a county or municipal ethics board of the violation of any provision of this act or of any code of ethics in effect pursuant to this act, shall be fined not less than $100.00 nor more than $500.00, which penalty may be collected in a summary proceeding pursuant to "the penalty enforcement law" (N.J.S.2A:58-1 et seq.).
(cf: P.L.1991, c.29, s.10)
5. This act shall take effect immediately and shall be applicable to financial disclosure filings required on or after April 30 next following enactment.
STATEMENT
This bill amends the definition of "local government officer" under the "Local Government Ethics Law," P.L.1991, c.29 (C.40A:9-22.1 et seq.), to include a person who serves on a continuing basis in the role of a confidential employee of, advisor to, or consultant for the local government officer and who provides direct advice to the local government officer of an economic nature, including any area impacting decisions on the operations and finances of a local government agency. Often, local government officers rely on volunteer consultants who serve as advisors, who have a great deal of influence, and whose guidance has an impact on decisions affecting local government operations, finances and economics. Because of their influence, these individuals should be subject to the same scrutiny and financial disclosure requirements as those local government officials who are serving in an official elected or appointed capacity. The bill also requires an elected or appointed local government officer or employee to disclose the names and addresses of any volunteer consultants or advisors and provides for a penalty if such persons violate the ethics law.
Requires voluntary consultants to local government officers to file financial disclosure statements.