State
of New Jersey
Executive
Order #189
WHEREAS, it is essential that all persons supplying goods or services
to the State of New Jersey, or performing contracts or otherwise
executing public works with the assistance of and subject to the
approval of the State, must meet a standard of responsibility which
assures the State and its citizens that such persons will both compete
and perform honestly in their dealings with the State and avoid
conflicts of interest; and
WHEREAS, the New Jersey Conflicts of Interest Law prohibits State
officers or employees and special State officers or employees from
having any interest or engaging in any activity that is in substantial
conflict with the proper discharge of their duties in the public
interest or from undertaking any employment or service which might
reasonably be expected to impair their objectivity or independence
of judgment; and
WHEREAS, the New Jersey Conflicts of Interest Law prohibits State
officers or employees and special State officers or employees from
acting in their official capacity in any matter wherein they have
a direct or indirect personal financial interest which might reasonably
be expected to impair their objectivity or independence of judgment;
and
WHEREAS, N.J.S.A. 52:34-19 provides that it shall be a misdemeanor
to pay any fee, commission, compensation, gift or gratuity of any
kind, directly or indirectly, to any person employed by the Department
of the Treasury or to any other person in the employ of the State
having any duties or responsibilities in connection with the purchase
or acquisition of any property or services by the State or any agency
or instrumentality thereof by or on behalf of any seller or supplier
of such goods or services or other party to a contract with the
State; and
WHEREAS, it is essential that persons providing goods or services
to, or performing contracts for, the State be fully informed of
the policies of the State concerning their relationships with State
officers or employees and special State officers or employees and
that these policies be uniformly applied by the various agencies
of the Executive Branch; and
WHEREAS, it is therefore necessary to supplement Executive Order
No. 34 (1976), which provides the grounds and procedures applicable
to the debarment, suspension and disqualification of State vendors,
to encompass appropriate standards prohibiting conflicts of interest
on the part of present and prospective State vendors;
NOW, THEREFORE, I, THOMAS H. KEAN, Governor of the State of New
Jersey, by virtue of the authority vested in me by the Constitution
and by the Statutes of this State, do hereby ORDER and DIRECT:
1. As used in this Order, "vendor" means any person, firm, corporation,
or other entity which provides or offers or proposes to provide
goods or services to or perform any contract for any State agency.
2. The executive head of each department or agency in the Executive
Branch with the lawful authority to engage in State contracting
shall, in accordance with the provisions of the Administrative
Procedures Act, N.J.S.A. 52:14B-1 et seq., promulgate regulations
supplementing those heretofore established pursuant to Executive
Order No. 34 (1976) governing the causes, conditions and procedures
applicable to determinations of debarment, suspension and disqualification
by the department or agency to include the minimum standards hereinafter
set forth. In addition to any other filing required by law to
be made, each executive head shall file with the Attorney General
and Treasurer a copy of such rules and regulations as may be promulgated.
3. The rules and regulations referred to in Paragraph 2 shall
include the following prohibitions on vendor activities, the violation
of which shall render said vendor liable to debarment in the public
interest, pursuant to the procedures established by Executive
Order No. 34 (1976), by any Executive department or agency:
a. No vendor shall pay, offer to pay, or agree to pay, either
directly or indirectly, any fee, commission, compensation, gift,
gratuity, or other thing of value of any kind to any State officer
or employee or special State officer or employee, as defined
by N.J.S.A. 52:13D-13b. and e., in the Department of the Treasury
or any other agency with which such vendor transacts or offers
or proposes to transact business, or to any member of the immediate
family, as defined by N.J.S.A. 52:13D-13i., of any such officer
or employee, or any partnership, firm, or corporation with which
they are employed or associated, or in which such officer or
employee has an interest within the meaning of N.J.S.A. 52:13D-13g.
b. The solicitation of any fee, commission, compensation,
gift, gratuity or other thing of value by any State officer
or employee or special State officer or employee from any State
vendor shall be reported in writing forthwith by the vendor
to the Attorney General and the Executive Commission on Ethical
Standards.
c. No vendor may, directly or indirectly, undertake any private
business, commercial or entrepreneurial relationship with, whether
or not pursuant to employment, contract or other agreement,
express or implied, or sell any interest in such vendor to,
any State officer or employee or special State officer or employee
having any duties or responsibilities in connection with the
purchase, acquisition or sale of any property or services by
or to any State agency or any instrumentality thereof, or with
any person, firm or entity with which he is employed or associated
or in which he has an interest within the meaning of N.J.S.A.
52:13D-13g. Any relationships subject to this provision shall
be reported in writing forthwith to the Executive Commission
on Ethical Standards, which may grant a waiver of this restriction
upon application of the State officer or employee or special
State officer or employee upon a finding that the present or
proposed relationship does not present the potential, actuality
or appearance of a conflict of interest.
d. No vendor shall influence, or attempt to influence or cause
to be influenced, any State officer or employee or special State
officer or employee in his official capacity in any manner which
might tend to impair the objectivity or independence of judgment
of said officer or employee.
e. No vendor shall cause or influence, or attempt to cause
or influence, any State officer or employee or special State
officer or employee to use, or attempt to use, his official
position to secure unwarranted privileges or advantages for
the vendor or any other person.
f. The provisions cited above in paragraph 3a. through 3e.
shall not be construed to prohibit a State officer or employee
or special State officer or employee from receiving gifts from
or contracting with vendors under the same terms and conditions
as are offered or made available to members of the general public
subject to any guidelines the Executive Commission on Ethical
Standards may promulgate under paragraph 3c.
4. The rules and regulations referred to in Paragraph 2, supra,
shall require that the prohibitions set forth Paragraph 3, supra,
shall be included in all requests for proposals issued by any
State department or agency and in all contracts executed on behalf
of a State department or agency, other than those of an interstate
agency to which New Jersey is a party and contracts entered into
on behalf of the interstate agency.
5. Nothing required by this Order shall be construed to limit
the authority of any State department or agency to refrain from
contracting within the discretion allowed by law, or to limit
N.J.S.A. 52:34-19 or any other applicable statute or regulation.
6. This Order shall take effect on the ninetieth day following
its execution.
GIVEN, under my hand and seal,
this 20th day of July in the Year
of Our Lord, one thousand nine
hundred and eighty-eight, and of the
Independence of the United States,
the two hundred and thirteenth.
/s/Thomas H. Kean
GOVERNOR
(seal)
Attest:
/s/ Michael R. Cole
Chief Counsel
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