A612

ASSEMBLY, No. 612

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblymen LUSTBADER and BAGGER

An Act concerning the employment of certain persons in certain public offices and positions and the exercise by certain public officers and employees of management authority or influence in connection with public contracts, and supplementing P.L.1971, c.182 (C.52:13D-12 et seq.), P.L.1991, c.29 (C.40A:9-22.1 et seq.) and P.L.1991, c.393 (C.18A:12-21 et seq.).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. For the purposes of this section:

"Contract management authority" means personal involvement in or direct supervisory responsibility for the formulation or execution of a contract with a State agency, including without limitation the preparation of specifications, evaluation of bids or proposals, negotiation of contract terms, or supervision of performance.

"Local government agency" and "local government officer or employee" have the meanings prescribed, respectively, by subsections e. and h. of section 3 of P.L.1991, c.29 (C.40A:9-22.3).

"Local school district" and "school official" have the meanings prescribed by section 3 of P.L.1991, c.393 (C.18A:12-23).

"Relative" of an individual means the spouse of that individual or a person related to the individual or to the individual's spouse by blood or adoption as a parent, child, brother, sister, aunt, uncle, niece, nephew, grandparent, grandchild, father-in-law, mother-in-law, son-in-law, daughter-in-law, stepparent, stepchild, stepbrother, stepsister, half brother or half sister.

b. Notwithstanding the provisions of any other law to the contrary, no member of the Legislature, no State officer or employee, and no special State officer or employee shall employ, or nominate, propose or recommend for employment, in any State agency in which that member, officer or employee serves or over which the member, officer or employee exercises authority, supervision, or control:

(1) any relative of the member, officer or employee; or

(2) any person other than a relative of the member, officer or employee if the employment, or the nomination, proposal or recommendation for employment, of that person is in exchange for or in consideration of:

(a) the employment, or the nomination, proposal or recommendation for employment, in the same or another State agency, in any local government agency, or in any local school district, of any relative of the member, officer or employee by any other such member, officer or employee, by a local government officer or employee, or by a school official; or

(b) the provision of assistance to a relative of the member, officer or employee in securing employment or contracts with a person engaged in the performance of a contract for the provision of goods or services to the same or another State agency, to a local government agency, or to a local school district.

c. Notwithstanding the provisions of any other law to the contrary:

(1) If a person engaged in the performance of a public contract for the provision of goods or services to a State agency is, or employs or has a contract with, a relative of a member of the Legislature, State officer or employee, or special State officer or employee, the member, officer or employee shall not exercise contract management authority over that public contract.

(2) If a member of the Legislature, State officer or employee, or special State officer or employee exercises contract management authority over a public contract for the provision of goods or services to a State agency, the member, officer or employee shall not use or permit the use of that authority to:

(a) assist a relative of the member, officer or employee in securing employment or contracts with a person engaged in the performance of that contract; or

(b) assist any person other than a relative of the member, officer or employee in securing employment or contracts with the person so engaged in such contractual performance in exchange for or in consideration of:

(i) the employment, or the nomination, proposal or recommendation for employment, by any other such member, officer or employee, by a local government officer or employee, or by a school official in any State agency, local government agency, or local school district of a relative of the member of the Legislature, State officer or employee, or special State officer or employee; or

(ii) the provision by another such member, officer or employee, by a local government officer or employee, or by a school official of assistance to a relative of the member of the Legislature, State officer or employee, or special State officer or employee in securing employment or contracts with a person engaged in the performance of a public contract for the provision of goods or services to a State agency, a local government agency or a local school district.

(3) The employment of or contracting with a relative of a member of the Legislature, State officer or employee, or special State officer or employee by such a person within six months prior to the commencement of, during the term of, or within six months after the completion or termination of, a public contract that the person is to perform, is performing, or shall have performed shall be evidence that any contract management authority exercised by the member, officer, or employee was exercised in violation of paragraph (1) of this subsection or that the relative's employment or contract with the person was obtained in violation of paragraph (2) of this subsection, as appropriate.

d. A person who violates any provision of this section shall be subject to a fine not to exceed $2,500 for each offense.

2. a. For the purposes of this section:

"Contract management authority" means personal involvement in or direct supervisory responsibility for the formulation or execution of a contract with a local government agency, including without limitation the preparation of specifications, evaluation of bids or proposals, negotiation of contract terms, or supervision of performance.

"Local school district" and "school official" have the meanings prescribed by section 3 of P.L.1991, c.393 (C.18A:12-23).

"State agency", "State officer or employee", "member of the Legislature", and "special State officer or employee" have the meanings prescribed, respectively, by subsections a., b., c., and e. of section 2 of P.L.1971, c.182 (C.52:13D-13).

b. Notwithstanding the provisions of any other law to the contrary, no local government officer or employee shall employ, or nominate, propose or recommend for employment, in any local government agency in which that officer or employee serves or over which the officer or employee exercises authority, supervision, or control:

(1) any relative of the local government officer or employee; or

(2) any person other than a relative of the local government officer or employee if the employment, or the nomination, proposal or recommendation for employment, of that person is in exchange for or in consideration of:

(a) the employment, or the nomination, proposal or recommendation for employment, in the same or another local government agency, in any State agency, or in any local school district, of any relative of the local government officer or employee by any other local government officer or employee, by a member of the Legislature, State officer or employee or special State officer or employee, or by a school official; or

(b) the provision of assistance to a relative of the local government officer or employee in securing employment or contracts with a person engaged in the performance of a contract for the provision of goods or services to the same or another local government agency, to a State agency, or to a local school district.

c. Notwithstanding the provisions of any other law to the contrary:

(1) If a person engaged in the performance of a public contract for the provision of goods or services to a local government agency is, or employs or has a contract with, a relative of a local government officer or employee, the officer or employee shall not exercise contract management authority over that contract.

(2) If a local government officer or employee exercises contract management authority over a public contract for the provision of goods or services to a local government agency, the officer or employee shall not use or permit the use of that authority to:

(a) assist a relative of the officer or employee in securing employment or contracts with a person engaged in the performance of that contract; or

(b) assist any person other than a relative of the local government officer or employee in securing employment or contracts with the person so engaged in such contractual performance in exchange for or in consideration of:

(i) the employment, or the nomination, proposal or recommendation for employment, by any other local government officer or employee, by a member of the Legislature, State officer or employee, or special State officer or employee, or by a school official in any local government agency, State agency, or local school district of a relative of the local government officer or employee, or

(ii) the provision by another local government officer or employee, by a member of the Legislature, State officer or employee, or special State officer or employee, or by a school official of assistance to a relative of the local government officer or employee in securing employment or contracts with a person engaged in the performance of a public contract for the provision of goods or services to a local government agency, a State agency or a local school district.

(3) The employment of or contracting with a relative of a local government officer or employee by such a person within six months prior to the commencement of, during the term of, or within six months after the completion or termination of, a public contract that the person is to perform, is performing, or shall have performed shall be evidence that any contract management authority exercised by the local government officer or employee was exercised in violation of paragraph (1) of this subsection or that the relative's employment or contract with the person was obtained in violation of paragraph (2) of this subsection, as appropriate.

d. A person who violates any provision of this section shall be subject to a fine not to exceed $2,500 for each offense.

3. a. For the purposes of this section:

"Contract management authority" means personal involvement in or direct supervisory responsibility for the formulation or execution of a contract with a local school district, including without limitation the preparation of specifications, evaluation of bids or proposals, negotiation of contract terms, or supervision of performance.

"Local government agency" and "local government officer or employee" have the meanings prescribed, respectively, by subsections e. and h. of section 3 of P.L.1991, c.29 (C.40A:9-22.3).

b. Notwithstanding the provisions of any other law to the contrary, no school official shall employ, or nominate, propose or recommend for employment, in any local school district in which that official serves or over which the official exercises authority, supervision, or control:

(1) any relative of the school official; or

(2) any person other than a relative of the school official if the employment, or the nomination, proposal or recommendation for employment, of that person is in exchange for or in consideration of:

(a) the employment, or the nomination, proposal or recommendation for employment, in the same or another local school district, in any State agency, or in any local government agency, of any relative of the school official by any other school official, by a member of the Legislature, State officer or employee or special State officer or employee, or by a local government officer or employee; or

(b) the provision of assistance to a relative of the school official in securing employment or contracts with a person engaged in the performance of a contract for the provision of goods or services to the same or another local school district, to a State agency, or to a local government agency.

c. Notwithstanding the provisions of any other law to the contrary:

(1) If a person engaged in the performance of a public contract for the provision of goods or services to a local school district is, or employs or has a contract with, a relative of a school official, the school official shall not exercise contract management authority over that public contract.

(2) If a school official exercises contract management authority over a public contract for the provision of goods or services to a local school district, the official shall not use or permit the use of that authority to:

(a) assist a relative of the school official in securing employment or contracts with a person engaged in the performance of that contract; or

(b) assist any person other than a relative of the school official in securing employment or contracts with the person engaged in such contractual performance in exchange for or in consideration of:

(i) the employment, or the nomination proposal or recommendation for employment, by another school official, by a member of the Legislature, State officer or employee, or special State officer or employee, or by a local government officer or employee in any local school district, State agency, or local government agency of a relative of the school official; or

(ii) the provision by any other school official, by a member of the Legislature, State officer or employee or special State officer or employee, or by a local government officer or employee of assistance to a relative of the school official in securing employment or contracts with a person engaged in the performance of a public contract for the provision of goods or services to a local school district, State agency, or local government agency.

(3) The employment of or contracting with a relative of such a school official by such a person within six months prior to, during the term of, or within six months after the completion or termination of a public contract with a school district that the person is to perform, is performing, or shall have performed shall be evidence that such contract management authority was exercised in violation of paragraph (1) of this subsection or that the relative's employment or contract with the person was obtained in violation of paragraph (2) of this subsection, as appropriate.

d. A person who violates any provision of this section shall be subject to a fine not to exceed $2,500 for each offense.

4. This act shall take effect on the 60th day following enactment and shall be applicable to any contract entered into or employment commencing on or after that effective date.

STATEMENT

This bill prohibits a public officer or employee subject to the "New Jersey Conflicts of Interest Law" (P.L.1971, c.182), the "Local Government Ethics Law" (P.L.1991, c.29), or the "School Ethics Act" (P.L.1991, c.393) from:

(1) employing or sponsoring the employment of a relative in the governmental agency in which the officer or employee serves;

(2) employing or sponsoring the employment of anyone other than a relative in exchange for (a) the employment or sponsorship for employment in a public position of a relative by another public officer or employee, or (b) the provision of assistance to a relative in obtaining employment or contracts with a person performing a public contract;

(3) exercising contract management authority over any public contract with a person who is, or employs or has a contract with, a relative of the officer or employee; or

(4) using or permitting the use of the officer or employee's exercise of contract management authority over a public contract, when not barred outright under (3), to (a) assist a relative in obtaining employment or contracts with a person performing that public contract, or (b) assist anyone other than a relative in obtaining employment or contracts with a person performing the public contract in exchange for (i) the employment or sponsorship for employment of a relative by another such public officer or employee, or (ii) the provision of assistance by another such public officer or employee in obtaining employment or contracts with any public contractor.

"Contract management authority" under the bill refers to personal involvement in or direct supervisory responsibility for the formulation or execution of a public contract.

Prohibits public officer or employee from using official position to obtain or sponsor employment of, or obtain certain other economic advantages for, a relative.