An Act restricting the receipt of certain things of value by members and employees of the Legislature and officers and employees of the Executive Branch, amending and supplementing P.L.1971, c.182 (C.52:13D-12 et seq.), and repealing sections 2 and 3 of P.L.2003, c.255 (C.52:13D-24.1 and C.52:13C-21b).

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

1. Section 13 of P.L.1971, c.182 (C.52:13D-24) is amended to read as follows:

13. a. No State officer or employee, special State officer or employee, or member of the Legislature shall solicit, receive or agree to receive, whether directly or indirectly, any compensation, reward, employment, gift, honorarium, out-of-State travel or subsistence expense or other thing of value from any source other than the State of New Jersey, for any service, advice, assistance, appearance, speech or other matter related to the officer, employee, or member's official duties, except as authorized in this section.

b. A State officer or employee, special State officer or employee, or member of the Legislature may, in connection with any service, advice, assistance, appearance, speech or other matter related to the officer, employee, or member's official duties, solicit, receive or agree to receive, whether directly or indirectly, from sources other than the State, the following:

(1) reasonable fees for published books on matters within the officer, employee, or member's official duties[;], except that a State officer or employee, special State officer or employee, or member of the Legislature shall not receive an advance payment on copyright royalties. This paragraph shall not prohibit a literary agent, researcher, or other individual, other than an individual employed by the State or the Legislature, a relative, as defined in paragraph 3 of subsection d. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) of an officer, employee, or member, working on behalf of an officer, employee, or member with respect to a publication from receiving an advance payment of a copyright royalty directly from a publisher and soley for the benefit of that literary agent, researcher, or other individual.

A State officer or employee, special State officer or employee, or member of the Legislature shall not receive copyright royalties under a contract entered into on or after January 1, 2005, unless that contract is first approved by the State Ethics Commission or the Joint Legislative Committee on Ethical Standards, as the case may be, that royalties are being received from an established publisher
under usual and customary contractual terms.

(2) [reimbursement or payment of actual and reasonable expenditures for travel or subsistence and allowable entertainment expenses associated with attending an event in New Jersey if expenditures for travel or subsistence and entertainment expenses are not paid for by the State of New Jersey;

(3) reimbursement or payment of actual and reasonable expenditures for travel or subsistence outside New Jersey, not to exceed $500.00 per trip, if expenditures for travel or subsistence and entertainment expenses are not paid for by the State of New Jersey. The $500 per trip limitation shall not apply if the reimbursement or payment is made by (a) a nonprofit organization of which the officer, employee, or member is, at the time of reimbursement or payment, an active member as a result of the payment of a fee or charge for membership to the organization by the State or the Legislature in the case of a member of the Legislature; (b) a nonprofit organization that does not contract with the State to provide goods, materials, equipment, or services; or (c) any agency of the federal government, any agency of another state or of two or more states, or any political subdivision of another state.

Members of the Legislature shall obtain the approval of the presiding officer of the member's House before accepting any reimbursement or payment of expenditures for travel or subsistence outside New Jersey.

As used in this subsection, "reasonable expenditures for travel or subsistence" means commercial travel rates directly to and from an event and food and lodging expenses which are moderate and neither elaborate nor excessive; and "allowable entertainment expenses" means the costs for a guest speaker, incidental music and other ancillary entertainment at any meal at an event, provided they are moderate and not elaborate or excessive, but does not include the costs of personal recreation, such as being a spectator at or engaging in a sporting or athletic activity which may occur as part of that event.] free attendance at a widely attended convention, conference, symposium, forum, panel discussion, dinner, viewing, reception, or similar event, provided by the sponsor of the event, if the officer, employee, or member participates in the event as a speaker or a panel participant, by presenting information related to State government or matters before State government, or by performing a ceremonial function appropriate to his or her official position, and attendance at the event is appropriate to the performance of the official duties or representative function of the officer, employee, or member.

An officer, employee, or member who attends an event described in this subsection may accept a sponsor's unsolicited offer of free attendance at the event for an accompanying individual.

Members of the Legislature shall obtain the approval of the presiding officer of the member's House before accepting free attendance for a widely attended convention, conference, symposium, forum, panel discussion, dinner, viewing, reception, or similar event outside New Jersey.

As used in the subsection, the term "free attendance" shall include, but not be limited to, a waiver of all or part of a conference or other fee, or the provision of food, beverages, entertainment, and instructional materials furnished to all attendees as a integral part of the event. The term shall not include the provision of transportation or entertainment collateral to the event, not shall it include food or beverages taken other than in a group setting with all or substantially all other attendees.

c. This section shall not apply to the solicitation or acceptance of contributions to the campaign of an announced candidate for elective public office, except that campaign contributions may not be accepted if they are known to be given in lieu of a payment prohibited pursuant to this section.

d. (1) Notwithstanding any other provision of law, a designated State officer as defined in paragraph (2) of this subsection shall not solicit, receive or agree to receive, whether directly or indirectly, any compensation, salary, honorarium, fee, or other form of income from any source, other than the compensation paid or reimbursed to him or her by the State for the performance of official duties, for any service, advice, assistance, appearance, speech or other matter, except for investment income from stocks, mutual funds, bonds, bank accounts, notes, a beneficial interest in a trust, financial compensation received as a result of prior employment or contractual relationships, and income from the disposition or rental of real property, or any other similar financial instrument and except for [reimbursement for travel] an offer of free attendance as authorized in [paragraphs] paragraph (2) [and (3)] of subsection b. of this section. To receive such income, a designated State officer shall first seek review and approval by the State Ethics Commission to ensure that the receipt of such income does not violate the "New Jersey Conflicts of Interest Law," P.L.1971, c.182 (C.52:13D-12 et seq.) or any applicable code of ethics, and does not undermine the full and diligent performance of the designated State officer's duties.

(2) For the purposes of this subsection, "designated State officer" shall include: the Governor, the Adjutant General, the Secretary of Agriculture, the Attorney General, the Commissioner of Banking and Insurance, the director of the Division of Business Assistance, Marketing, and International Trade, the Commissioner of Community Affairs, the Commissioner of Corrections, the Commissioner of Education, the Commissioner of Environmental Protection, the Commissioner of Health and Senior Services, the Commissioner of Human Services, the Commissioner of Children and Families, the Commissioner of Labor and Workforce Development, the President of the State Board of Public Utilities, the Secretary of State, the Superintendent of State Police, the Commissioner of Transportation, the State Treasurer, the head of any other department in the Executive Branch, and the following members of the staff of the Office of the Governor: Chief of Staff, Chief of Management and Operations, Chief of Policy and Communications, Chief Counsel to the Governor, Director of Communications, Policy Counselor to the Governor, and any deputy or principal administrative assistant to any of the aforementioned members of the staff of the Office of the Governor listed in this subsection.

e. A violation of this section shall not constitute a crime or offense under the laws of this State.

(cf: P.L.2008, c.29, s.105)

2. (New section) a. Unless otherwise specifically prohibited or restricted pursuant to section 13 of P.L.1971, c.182 (C.52:13D-24) or any other law, a State officer or employee, special State officer or employee, or member of the Legislature shall not accept a gift that the officer, employee, or member reasonably and in good faith believes to have a value of $50 or more, and the cumulative value of gifts accepted from one source in each calendar year shall not exceed $100. A gift having a value of $10 or less shall not be counted toward the $100 limit. Formal recordkeeping of all gifts received is not required of each officer, employee, or member by this section, but each officer, employee, or member shall make a good faith effort to comply with this section.

For the purposes of this section, "gift" shall include a gratuity, favor, discount, entertainment, hospitality, loan, forbearance, service, training, transportation, lodging or meals, whether provided in kind, by purchase in advance, or reimbursement, and any other thing of value.

b. A gift to a member of the immediate family of a State officer or employee, special State officer or employee, or member of the Legislature, or any other individual based on the individual's relationship with the officer, employee, or member, shall be treated as a gift to the officer, employee, or member for the purposes of this section if it is given with the knowledge and acquiescence of the officer, employee, or member and the officer, employee, or member has reason to believe that the gift was given as a result of his or her official position.

c. The value of perishable food sent to an office shall be allocated among all recipients. If food or beverages are provided at the same time to an officer, employee, or member and a member of the immediate family, only the food or beverages provided to the officer, employee, or member shall be treated as a gift for the purposes of this section.

d. This section shall not apply to:

(1) Anything for which the State officer or employee, special State officer or employee, or member of the Legislature pays the fair market value, or does not use and promptly returns to the donor.

(2) The solicitation or acceptance of contributions to the campaign of an announced candidate for elective public office, except that campaign contributions may not be accepted if they are known to be given in lieu of a payment prohibited pursuant to this section.

(3) A gift from a relative. As used in this section, "relative" means: father, mother, son, daughter, brother, sister, uncle, aunt, great aunt, great uncle, first cousin, nephew, niece, husband, wife, grandfather, grandmother, grandson, granddaughter, father-in-law, mother-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, stepfather, stepmother, stepson, stepdaughter, stepbrother, stepsister, half brother, half sister, spouse's grandfather or grandmother, fiance or fiancee.

(4) Anything provided by an individual on the basis of a personal friendship unless the officer, employee, or member has reason to believe that, under the circumstances, the gift was provided because of his or her official position and not because of the personal friendship. In determining whether a gift is provided on the basis of personal friendship, the officer, employee, or member shall consider the circumstances under which the gift was offered, such as the history of his or her relationship with the individual giving the gift, including any previous exchange of gifts between them, whether to his or her actual knowledge the individual who gave the gift personally paid for the gift or sought a tax deduction or business reimbursement for the gift, and whether to his or her actual knowledge the individual who gave the gift also gave the same or similar gifts to other officers, employees, or members.

An officer, employee, or member shall not accept a gift on the basis of personal friendship if the value of the gift exceeds $250, unless the State Ethics Commission or the Joint Legislative Committee on Ethical Standards, as the case may be, issues a written determination authorizing the acceptance of that gift. A determination under this paragraph is not required for gifts given on the basis of the familial relationship exception in paragraph (3) of this subsection.

(5) Food, beverages, lodging, transportation, and other benefits (a) resulting from the outside business or employment activities of the officer, employee, or member or other outside activities that are not connected to his or her official duties as an officer, employee, or member, or of his or her spouse, if such benefits have not been offered or enhanced because of his or her official position and are customarily provided to others in similar circumstances, (b) customarily provided by a prospective employer in connection with bona fide employment discussions, or (c) provided by a political organization described in section 527(e) of the Internal Revenue Code of 1986, 26U.S.C. s.527(e) in connection with a fundraising or campaign event sponsored by such organization.

(6) Pension and other benefits resulting from continued participation in an employee welfare and benefits plan maintained by a former employer.

(7) Informational materials that are sent to the office of the officer, employee, or member in the form of books, articles, periodicals, other written materials, audiotapes, videotapes, or other forms of communication.

(8) Awards or prizes that are given to competitors in contests or events open to the public, including random drawings.

(9) Honorary degrees from accredited institutions of learning and other bona fide, nonmonetary awards presented in recognition of public service.

(10) Training, including food and beverages furnished to all attendees as an integral part of the training.

(11) Bequests, inheritances, and other transfers at death.

(12) Anything that is paid for by the federal government, or by a State or local government, or secured by the government under a government contract.

(13) Opportunities and benefits that are: (a) available to the public or to a class consisting of all State employees, whether or not restricted on the basis of geographic consideration; (b) offered to members of a group or class in which membership is unrelated to State employment service; (c) offered to members of an organization, such as an employees' association or State credit union, in which membership is related to State employment and similar opportunities are available to large segments of the public through organizations of similar size; (d) offered to a group or class that is not defined in a manner that specifically discriminates among State employees on the basis of branch of government or type of responsibility, or on a basis that favors those of higher rank or rate of pay; (e) in the form of loans from banks and other financial institutions on terms generally available to the public, or (f) in the form of reduced membership or other fees for participation in organization activities offered to all State employees by professional organizations if the only restrictions on membership relate to professional qualifications.

(14) A plaque, trophy, or other item that is substantially commemorative in nature and that is intended for presentation.

(15) Food or beverages of a nominal value offered other than as a part of a meal.

(16) Anything for which, in an unusual case, a waiver is granted by the State Ethics Commission or the Joint Legislative Committee on Ethical Standards, as the case may be.

e. An officer, employee, or member, or a member of the immediate family thereof, may accept a sponsor's unsolicited offer of free attendance at a charity event, except that reimbursement for transportation and lodging may not be accepted in connection with the event unless:

(1) all of the net proceeds of the event are for the benefit of an organization described in section 501(c)(3) of the Internal Revenue Code of 1986, 26U.S.C. s.501(c)(3), and exempt from taxation under section 501(a) of such Code, 26U.S.C. s. 501(a); and

(2) the offer of free attendance at the event is made by such organization.

As used in this subsection, the term "free attendance'' shall include, but not be limited to, a waiver of all or part of a conference or other fee, or the provision of food, beverages, entertainment, and instructional materials furnished to all attendees as an integral part of the event. The term shall not include entertainment collateral to the event, nor shall it include food or beverages taken other than in a group setting with all or substantially all other attendees.

f. When it is not practicable to return a tangible item because it is perishable, the item may, at the discretion of the recipient, be given to an appropriate charity or destroyed.

3. (New section) a. A State officer or employee, special State officer or employee, or member of the Legislature shall not receive an advance payment on copyright royalties. This subsection does not prohibit a literary agent, researcher, or other individual, other than an individual employed by the State or the Legislature, or a relative as defined in paragraph 3 of subsection d. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) of an officer, employee, or member, working on behalf of an officer, employee, or member with respect to a publication from receiving an advance payment of a copyright royalty directly from a publisher and solely for the benefit of that literary agent, researcher, or other individual.

b. A State officer or employee, special State officer or employee, or member of the Legislature shall not receive copyright royalties under a contract entered into on or after January 1, 2005, unless that contract is first approved by the State Ethics Commission or the Joint Legislative Committee on Ethical Standards, as the case may be, that royalties are being received from an established publisher under usual and customary contractual terms.

4. Sections 2 and 3 of P.L.2003, c.255 (C.52:13D-24.1 and C.52:13C-21b) are repealed.

5. This act shall take effect on the 90th day following enactment.

STATEMENT

This bill would substantially revise restrictions on the acceptance of things of value by members and employees of the Legislature and officers and employees of the Executive Branch. Under the bill, a State officer or employee, special State officer or employee, or member of the Legislature could accept a gift that the officer, employee, or member reasonably and in good faith believes to have a value of less than $50, but the cumulative value of gifts from one source could not exceed $100 in each calendar year. A gift having a value of less than $10 would not be counted toward the $100 limit.

These new restrictions would apply in cases except for any service, advice, assistance, appearance, speech or other matter related to the officer, employee, or member's official duties, which are already regulated strictly by current law.

The bill lists several exceptions to this rule, including:

(1) anything for which the officer, employee, or member pays the fair market value, or does not use and promptly returns to the donor;

(2) the acceptance of certain campaign contributions;

(3) gifts from relatives;

(4) gifts from personal friends, up to a $250 limit. Any gift the value of which exceeds $250 would have to be approved by the State Ethics Commission or the Joint Legislative Committee on Ethical Standards, as the case may be;

(5) food, beverages, transportation, lodging, and other benefits received from outside employment or other activities, or provided by a prospective employer in connection with bona fide employment discussions, or provided by a political organization described in section 527(e) of the Internal Revenue code in connection with a fundraising or campaign event sponsored by that organization;

(6) pension and other benefits resulting from an employee benefits plan from a previous employer;

(7) informational materials sent to the office of the officer, employee, or member;

(8) awards or prizes given to competitors in contests or events open to the public;

(9) honorary degrees from accredited institutions of learning and other bona fide, nonmonetary awards presented in recognition of public service;

(10) training;

(11) bequests, inheritance, and other transfers at death;

(12) anything paid for by the federal, State, or local government, or secured by the government under a government contract;

(13) opportunities and benefits generally available to the public or all State employees;

(14) commemorative plaques and trophies;

(15) food or beverages of nominal value;

(16) anything for which a waiver is granted by the State Ethics Commission or the Joint Legislative Committee on Ethical Standards, as the case may be; and

(17) free attendance at certain charitable events.

The bill also prohibits a State officer or employee, special State officer or employee, or member of the Legislature from receiving an advance payment on copyright royalties, and requires the approval of a publishing contract entered into on or after January 1, 2005 by the State Ethics Commission or the Joint Legislative Committee on Ethical Standards.

Additionally, the bill would change current restrictions on reimbursement for travel and subsistence connected with a State officer or employee, special State officer or employee, or member of the Legislature's official duties. Currently, Legislators, State officers or employees and special State officers or employees are allowed to receive reimbursement or payment of reasonable expenditures for travel or subsistence in New Jersey from sources other than the State for official appearances. Reimbursement or payment of expenditures for travel or subsistence outside New Jersey from sources other than the State for official appearances are limited to $500.00 per trip. Legislators must receive joint approval from the presiding officer and minority leader of their House before accepting reimbursement or payment of expenditures for travel or subsistence outside New Jersey. This bill would change these restrictions, so that Legislators, State officers or employees and special State officers or employees could accept free attendance only at a widely attended convention, conference, symposium, forum, panel discussion, dinner, viewing, reception, or similar event, provided by the sponsor of the event, if the officer, employee, or member participates in the event as a speaker or a panel participant, by presenting information related to State government or matters before State government, or by performing a ceremonial function appropriate to his or her official position, and attendance at the event is appropriate to the performance of the official duties or representative function of the officer, employee, or member. Free attendance would include a waiver of all or part of a conference or other fee, and food, beverages, entertainment, and instructional materials furnished to all attendees as an integral part of the event. It would not include the provision of transportation or entertainment collateral to the event, or food or beverages taken other than in a group setting with all or substantially all other attendees. Legislators would be required to receive joint approval from the presiding officer and minority leader of their House before accepting free attendance for events outside New Jersey.

The prohibitions in this bill are based on the rules of the U.S. House of Representatives for the 106th Congress.