1. What is the New Jersey Conflicts of Interest Law?
  2. To whom does the Conflicts Law apply?
  3. Does the Conflicts Law treat all officers and employees in State government alike?
  4. Does the Conflicts Law apply to independent contractors hired by the State?
  5. To what State agencies does the Conflicts Law apply?
  6. If I have information regarding what I suspect is a violation of the Conflicts Law, whom should I contact?
  7. Must I identify myself when I make an ethics allegation?
  8. Is there any limitation placed on the acceptance and solicitation of gifts, gratuities or other things of value by persons in State government?
  9. May a State officer or employee or a special State officer or employee accept campaign contributions if he is either an announced candidate for elected public office or acting as a campaign worker for such a candidate?
  10. May a State officer or employee or special State officer or employee contract with a State agency?
  11. Is the prohibition against contracting with any State agency absolute?
  12. Does the Conflicts Law impose any restrictions on State employees after they leave State service?
  13. How does the Commission determine whether an officer’s or employee’s involvement in a matter is substantial and direct?
  14. May the State Ethics Commission take action against a State officer or employee or special State officer or employee after he/she has left State service for violations that occurred during his/her State employment?
  15. Does the Conflicts Law contain a nepotism provision?
  16. How can I obtain a copy of my agency's Code of Ethics and the Plain Language Ethics Guide?
  17. May a State employee hold a professional license issued by the State?
  18. What penalties may be imposed on State officers and employees found guilty by the Commission of violations of the Conflicts Law or an agency Code of Ethics?
  19. May a State agency independently take disciplinary action against agency officers or employees for violations of the agency’s Code of Ethics?
  20. May State employees and/or members of their immediate families hold employment with the holder of or applicant for a casino license?
  21. May State employees accept complimentary services or discounts from a casino applicant or licensee?

  1. What is the New Jersey Conflicts of Interest Law?
    The New Jersey Conflicts of Interest Law was passed by the Legislature in 1971, effective January 11, 1972, to govern the conduct of officers and employees in State government. The law has been amended on numerous occasions since that time.
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  2. To whom does the Conflicts Law apply?
    The Conflicts Law applies to all officers and employees in the Executive and Legislative Branches of State government. This includes compensated and uncompensated, part-time and full-time, and classified and unclassified personnel. The Joint Legislative Committee on Ethical Standards administers and enforces the Conflicts Law with respect to the Legislative Branch.

    A January 2006 amendment to the Conflicts Law makes its provisions applicable to staff of a Governor-elect compensated with public funds and requires them to undergo ethics training and, if directed by the Governor-elect, to file financial disclosure statements and ethics compliance certifications.

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  3. Does the Conflicts Law treat all officers and employees in State government alike?
    Not entirely.  The law differentiates between State officers and employees and special State officers and employees in several areas, such as representing a party other than the State before a State agency or contracting with a State agency. 

    A State officer or employee is a person who holds office or employment in a State agency, excluding an interstate agency, other than a member of the Legislature, or is appointed as a New Jersey member to an interstate agency.

     A special State officer or employee is a person holding office or employment in a State Agency, excluding an interstate agency, for which office or employment no compensation is authorized or provided by law, or no compensation other than a sum in reimbursement of expenses is authorized or provided by law, any person holding part-time elective or appointed office or employment in a State agency, excluding an interstate agency, or any person appointed as a New Jersey member to an interstate agency, whose duties are not full-time.

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  4. Does the Conflicts Law apply to independent contractors hired by the State?
    No. The Conflicts Law does not directly govern the conduct of independent contractors hired by the State. Independent contractors, however, may be governed by Executive Order No. 189 (Kean, July 1988), which sets forth standards for persons providing goods and services to or performing contracts for the State. Some codes of ethics adopted by specific State agencies may contain provisions applicable to independent contractors hired by that agency. It should be noted that whether a person is an independent contractor depends upon the specific circumstances of each case.

    The Conflicts Law requires the State Treasurer to post on the internet a business ethics guide prepared in accordance with Executive Order No. 189 and requires those who seek to submit a bid, or negotiate for a State contract, to provide a certification that the bidder has read, understood and complied with the guide. The business ethics guide can be found at http://www.state.nj.us/treasury/purchase/ethics_guide.shtml.
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  5. To what State agencies does the Conflicts Law apply?
    State agencies are specifically defined in the Conflicts Law to include: (a) any of the principal departments in the Executive Branch of State Government including any division, board, bureau, office, commission or other instrumentality within or created by a department; (b) the Legislature of the State;  (c) any office, board, or commission within or created by the Legislative Branch of State government; and  (d) to the extent consistent with law, any interstate agency to which New Jersey is a party and any independent State authority, commission, instrumentality or agency.

    The definition of State agency specifically excludes a county or municipality.

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  6. If I have information regarding what I suspect is a violation of the Conflicts Law, whom should I contact?
    You may call the State Ethics Commission’s toll-free hotline, 1-888-223-1355 or send a letter to the Executive Director, State Ethics Commission, P.O. Box 082, Trenton, NJ 08625-0082.

    Allegations may also be filed with the State agency employing the State officer or employee in accordance with procedures established by the agency. Upon receipt of an allegation, the State agency is required to file a copy of same with the State Ethics Commission. It is within the discretion of the Commission to direct the State agency to transfer the allegation to it. (N.J.A.C. 19:61-3.4) Notice of all determinations made by State agencies in connection with hearings conducted pursuant to N.J.A.C. 19:61-3.1 must be filed with the Commission. All determinations with respect to the Conflicts of Interest Law which involve the removal of a State officer or employee or any other disciplinary actions are effective only when approved by the Commission.

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  7. Must I identify myself when I make an ethics allegation?
    No. The complainant may remain anonymous. If the complainant does identify him/herself, that information remains confidential.
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  8. Is there any limitation placed on the acceptance and solicitation of gifts, gratuities or other things of value by persons in State government?
    Yes. The State Ethics Commission has a zero tolerance policy for accepting gifts (Uniform Ethics Code, Section III). The Conflicts Law also contains several provisions dealing with this subject.

    Section 14 of the Conflicts Law prohibits a State officer or employee or special State officer or employee from directly or indirectly accepting anything of value, including any gift, favor, service, employment or offer of employment, which either he knows or has reason to believe is being offered for the purpose of influencing him in the performance of his official duties.

    Section 24 of the Conflicts Law specifically provides that a State officer or employee or special State officer or employee may not directly or indirectly solicit, receive, or agree to receive any compensation, reward, employment, gift, honorarium, out-of-State travel or subsistence expense or other thing of value for any service, advice, assistance, appearance, speech, or other matter related to his official duties. Section 24 also provides very limited exceptions to this restriction.

    N.J.A.C. 19:61-6.9 and 10, the Commission’s Gift Guidelines outline the steps that should be taken if a State officer or employee receives or is offered a gift. Unsolicited gifts or benefits of trivial or nominal value, such as complimentary articles offered to the public in general, and gifts received as a result of mass advertising mailings to the general business public may be retained by the recipient or the recipient’s department for general use if such use does not create an impression of a conflict of interest or a violation of the public trust. An impression of a conflict may be created, for example, if an employee of a regulatory agency uses a pocket calendar conspicuously marked with the name of a company that it regulates or if an office in a State agency displays a wall calendar from a vendor, creating an impression of an endorsement.
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  9. May a State officer or employee or a special State officer or employee accept campaign contributions if he is either an announced candidate for elected public office or acting as a campaign worker for such a candidate?
    Yes. The Conflicts Law specifically provides that the sections containing the acceptance of gifts shall not apply to contributions to the campaign of an announced candidate for elected public office. The individual, however, should be cautious of other specific provisions outside of the Conflicts Law dealing with political activity.
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  10. May a State officer or employee or special State officer or employee contract with a State agency?
    State Officers and Employees. The law prohibits State officers and employees from knowingly undertaking or executing in whole or in part any contract, agreement, sale or purchase of the value of $25 or more which is made, entered into, awarded or granted by any State agency. It is important to recognize that this prohibition is not limited to the State agency where the State officer or employee is employed. It extends to all State agencies. This prohibition also extends to any partners or business associates of the State officer or employee. Such persons are prohibited from executing an agreement or sale with a State agency through any corporation which he controls or in which he owns or controls more than 1% of the stock.

    Special State Officers and Employees. The Conflicts Law prohibits a special State officer or employee from knowingly undertaking or executing any contract, agreement, sale or purchase of the value of $25 or more with the State agency where he serves as an officer. This prohibition also includes such activity by the special State officer’s or employee’s partners or any corporation which he controls or in which he owns or controls more than 1% of the stock.
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  11. Is the prohibition against contracting with any State agency absolute?
    Section 19 of the Conflicts Law excepts three categories of contracts from the general prohibition. However, before entering into a contract falling within any of these categories, approval must first be obtained from the State Ethics Commission. The three categories of contracts are:

    First, those purchases, contracts, agreements or sales that are made after public notice and competitive bidding. The Commission staff typically approves such contracts unless the contract in question is with the State employee’s own agency. The Commission has typically determined that such contracts raise the issue of an appearance of impropriety under section 23(e)(7) of the Conflicts Law.

    Second, those contracts that may be awarded without public advertising and competitive bidding pursuant to section 5 of chapter 48 of the laws of 1944, N.J.S.A. 52:34-10.

    Third, any contract of insurance entered into by the Director of the Division of Purchase and Property, Department of Treasury, pursuant to section 10 of article 6, chapter 112 of the laws of 1944, N.J.S.A. 52:27B-62.

    Section 19.1 of the Conflicts Law excepts contracts for the development of scientific or technological discoveries or innovations in which the State agency has a property right, if the State agency has a procedure in its code of ethics authorizing these contracts, which minimizes actual conflicts of interest. Such contracts must comply with the procedure outlined in the agency’s code of ethics.

    Section 19.2 of the Conflicts Law excepts certain rental agreements with a State agency involving rental space and services assisting small businesses.

    May a State officer or employee or special State officer or employee represent a person or business before a State agency on a matter unrelated to his official duties and responsibilities?

    Special State Officers and Employees. A special State officer or employee is specifically prohibited from either agreeing to or in fact representing, appearing for, or negotiating on behalf of any person or party other than the State in connection with any cause, proceeding, application or other matter pending before the particular office, bureau, board, council, commission, authority or agency in which he holds office or employment. This prohibition also extends to any partnership, firm or corporation in which the special State officer or employee has an interest and to any partner, officer or employee of that partnership, firm or corporation.

    “Interest” is defined in section 13(g) of the Conflicts Law as ownership or control of more than 10% of the profits or assets of a firm, association or partnership, or 10% of the stock in a corporation for profit, other than a professional corporation, or ownership or control of more than 1% of the profits of a firm, association or partnership or 1% of the stock of a corporation which is the holder of or applicant for a casino license or any holding or intermediary company with respect thereto. Shareholders, associates or professional employees of a professional service corporation are deemed to have an interest in the professional service corporation regardless of the extent or amount of shareholder interest.

    State Officers and Employees. As to State officers and employees, the restriction is even broader. They are specifically prohibited from either agreeing to or in fact representing, appearing for, or negotiating on behalf of any person or party, other than the State in connection with any cause, proceeding, application or other matter pending before any State agency. This prohibition extends to any partnership, firm or corporation in which the State officer or employee has an interest and to any partner, officer or employee of that partnership, firm or corporation.

    Are there any exceptions to the prohibition against representing a person before a State agency?

    Yes. State officers and employees and special State officers and employees are permitted to represent a party other than the State in connection with any proceeding:

    1. pending before a court of record;
    2. In regard to a claim for Workers’ Compensation;
    3. in a proceeding related to the determination or review of transfer, inheritance or estate taxes;
    4. in connection with the filing of corporate or other documents in the office of the Secretary of State;
    5. before the Division on Civil Rights;
    6. before the New Jersey State Board of Mediation;
    7. before the New Jersey Public Employment Relations Commission;
    8. before the Unsatisfied Claim and Judgment Fund Board solely for the purpose of filing a notice of intention; and
    9. before any State agency on behalf of a county, municipality, school district or any authority, agency or commission except where the State is an adverse party and provided the State officer or employee or special State officer or employee is not holding office or employment in the State agency in which any such proceeding is pending.

    Does representation only involve personally appearing before a State agency on behalf of an individual or entity?

    No. Representational activities also include:
    1. correspondence to a State agency on behalf of a third party;
    2. telephone calls to a State agency on behalf of a third party; and
    3. a State employee’s signature on an application or other document submitted to a State agency on behalf of a third party (e.g., engineering reports).

    May a State employee prepare New Jersey State tax returns?

    State employees, other than employees of the Division of Taxation, are permitted to prepare State tax returns. However, in the event that a question arises regarding a tax return prepared by a State employee, the State employee is prohibited from appearing before the Division of Taxation on behalf of a third party.

    May a State employee act in his official capacity in a matter affecting himself?

    Section 23(e)(4) of the Conflicts Law provides that a State officer or employee shall not act in his official capacity in any matter wherein he has a direct or indirect personal, financial interest that might be expected to impair his objectivity or independence of judgment.

    Section 15 of the Conflicts Law permits a State officer or employee to represent himself in negotiations or proceedings concerning his own interest in real property.
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  12. Does the Conflicts Law impose any restrictions on State employees after they leave State service?
    Yes. The Conflicts Law imposes certain restrictions on State employees and special State officers after they leave State service.

    Lifetime Ban
    There is a lifetime post-employment ban on all State employees and special State officer that prohibits them from working on specific matters with which they had substantial and direct involvement while working for the State. This restriction also extends to certain partnerships, firms and corporations with which the former State employee or officer is affiliated. Former State officers and employees are also prohibited from disclosing any confidential information obtained during State service.

    One-year Ban for Certain Employees
    For certain high level State officials, there is a one-year post-employment ban on representing any person or party before any officer or employee of the State agency in which she/he served. This one-year ban applies only to the heads, deputy heads or assistant heads of principal departments, boards, commissions or authorities, the Superintendent of State Police, and certain employees of the Governor’s Office. Each Department head and the Governor are also prohibited from registering as a governmental affairs agent for one year after termination of State office or employment.

    Two-year Casino Restrictions
    State employees and officers who file Financial Disclosure Statements, and those State officials with responsibility for matters affecting casino activities, are subject to a two-year post-employment restriction on holding an interest in, or employment with, a casino licensee or applicant. They are also prohibited from representing, appearing for, or negotiating on behalf of a casino during this two-year period. This restriction also extends to business entities in which a former State employee or officer holds an interest or is otherwise associated, including the officers or employees of such business entities.

    For more detailed information about the post-employment restrictions, please refer to the Conflicts Law at N.J.S.A. 52:13D-17, section VIII of the Uniform Ethics Code, or contact your Ethics Liaison Officer.
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  13. How does the Commission determine whether an officer’s or employee’s involvement in a matter is substantial and direct?
    The Commission reviews each situation on a case-by-case basis and considers such factors as whether the former State officer or employee had oversight responsibility, attended meetings, drafted or signed documents, made decisions or granted approval in connection with the matter in question.
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  14. May the State Ethics Commission take action against a State officer or employee or special State officer or employee after he/she has left State service for violations that occurred during his/her State employment?
    Yes. However, the investigation must commence within two years of the termination of State service.
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  15. Does the Conflicts Law contain a nepotism provision?
    Yes. Under the nepotism provision:

    • Employment of a relative of the Governor in an unclassified State position is prohibited.
    • Employment of a relative of a commissioner or department head in an unclassified State position is prohibited.
    • Employment of a relative of an assistant or deputy commissioner in an unclassified State position in the department over which that individual exercises authority, supervision or control is prohibited.
    • A relative of a division head or assistant division head may be employed in the principal department in which the division head or assistant head serves, but the division head or assistant head may not exercise any authority, supervision or control over the relative.
    • A relative of an appointed member of a governing or advisory body of an independent authority, board, commission, agency or instrumentality of the State may not be employed in an office or position in that entity.
    • A relative of an appointed New Jersey member of a governing body of a bi-state or multi-state agency may not be employed in an office or position in that agency, to the extent permitted by law.
    • A State officer or employee or a special State officer or employee may not supervise or exercise authority with regard to personnel actions over a relative.
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  16. How can I obtain a copy of my agency's Code of Ethics and the Plain Language Ethics Guide?
    Pursuant to N.J.A.C. 19:61-2.2(c), each agency is required to have a distribution procedure in place to ensure that each current and new officer or employee receives a copy of the agency code of ethics. Each officer or employee must sign a receipt indicating the date on which the code was received and an acknowledgement that the officer or employee is responsible for reading the code and is bound by it. Any officer or employee who has not received and signed for a copy of the agency code of ethics and the plain language ethics guide should contact the agency Ethics Liaison Officer or Human Resources Department. Codes of ethics and the plain language ethics guide are also available on our website, along with a list of agency Ethics Liaison Officers and their contact information.
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  17. May a State employee hold a professional license issued by the State?
    State employees are permitted to hold such licenses but must file notice of same with the agency Ethics Liaison Officer. Agency secondary employment approval is required for the use of such licenses. The Conflicts Law requires that the Commission be notified of any activity in connection with a business, profession, trade or occupation subject to State licensing or regulation.
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  18. What penalties may be imposed on State officers and employees found guilty by the Commission of violations of the Conflicts Law or an agency Code of Ethics?
    Pursuant to section 21(i) of the Conflicts Law, any State officer or employee found guilty of violating the Conflicts Law or an agency Code of Ethics can be fined between $500 and $10,000 and/or suspended from office or employment for a period of one year for each violation. The State Ethics Commission can also order restitution, demotion, censure or reprimand for an ethics violation.

    If the Commission determines that the conduct in question constitutes “willful and continuous” disregard of the Conflicts Law or an agency Code of Ethics, the State officer or employee may be removed from office or employment and may be barred from holding any public office or employment in the State for a period of up to five years.

    The State Ethics Commission can also impose a civil penalty of between $500 and $10,000 for violations of post-employment restrictions by former State officers and employees and special State officers and employees. The fine for a violation of the ethics laws that is punishable as a disorderly persons offense is from $500 to $1,000.
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  19. May a State agency independently take disciplinary action against agency officers or employees for violations of the agency’s Code of Ethics?
    Pursuant to section 23(d) of the Conflicts Law, a State agency may take disciplinary action against agency officers or employees for violations of the Uniform Ethics Code or the agency’s Code of Ethics; however, the agency must first obtain the approval of the Commission. Discipline may include removal, suspension, demotion or other disciplinary action.
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  20. May State employees and/or members of their immediate families hold employment with the holder of or applicant for a casino license?
    A State officer or employee, other than a State officer or employee included in the section 17.2(a) definition of “person,” may hold employment with the holder of or applicant for a casino license if in the judgment of the State Ethics Commission, such employment will not interfere with the responsibilities of the State officer or employee and will not create a conflict of interest or reasonable risk of the public perception of a conflict of interest. Waivers may be obtained by contacting the Commission.

    Members of the immediate family of a State officer or employee, or of a person, may also hold employment with the holder of or applicant for a casino license by obtaining a waiver from the Commission. Immediate family member is defined as a spouse, child, parent or sibling residing in the same household.

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  21. May State employees accept complimentary services or discounts from a casino applicant or licensee?
    State employees may accept a service or discount that is offered to members of the general public in like circumstances.

     

     

     

     

    Last updated :  January 18th, 2017

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