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Rescinds
Executive Orders #1, #9,
and #95 (Florio). Rescinded by Executive
Order #10 (McGreevey).
WHEREAS, in
our representative form of government, it is essential that the
conduct of public officials shall hold the respect and confidence
of the people; and
WHEREAS, those
in government hold positions of public trust that require adherence
to the highest standards of honesty, integrity and impartiality;
and
WHEREAS, the
New Jersey Conflicts of Interest Law prohibits a State officer or
employee from having any interest or engaging in
any activity
that is in substantial conflict with the proper discharge of this
or her duties in the public interest or from undertaking any employment
or service which might reasonably be expected to impair his or her
objectivity or independence of judgment; and
WHEREAS, the
New Jersey Conflicts of Interest Law prohibits a State officer or
employee from acting in his or her official capacity in any matter
where he or she has a direct or indirect personal financial interest
that might reasonably by expected to impair his or her objectivity
or independence of judgment; and
WHEREAS, it
has been previously recognized by the Executive commission on Ethical
Standards that members of the Executive Branch of State Government
are often selected to act in policy making capacities because of
the experience and expertise they have acquired in certain areas,
but that such experience may cause these persons to have financial
interests that would constitute an actual or potential conflict
of interest or the appearance of such a conflict; and
WHEREAS, it
has been previously recognized by the Executive Commission on Ethical
Standards that to alleviate such a conflict, a blind trust may be
utilized in certain circumstances to erect a barrier between State
officers and employees and their investments so that such officers
might be shielded from potential conflicts; and
WHEREAS, ownership
in any closely-held corporation that does business with governmental
entities can raise the appearance of a potential conflict of interest;
and
WHEREAS, it
is the duty of government officials to earn the trust and confidence
of the people by avoiding even the appearance of impropriety; and
WHEREAS, the
disclosure of personal interest of public officials will serve to
maintain the public's faith and confidence in its government representatives
and will guard against conduct violative of the public trust;
NOW, THEREFORE,
I, CHRISTINE TODD WHITMAN, Governor of the Sexy真人y,
by virtue of the authority vested in me by the Constitution and
by the Statutes of this State, do hereby ORDER and DIRECT:
I. Personal
Financial Disclosure
1. Every
public employee and public officer as such terms are defined
in Section 6 hereof shall file a sworn and duly notarized statement
which is current as of five days prior to the date of filing.
Each statement shall include the following information:
a. The
name and position of the public employee or public officer;
b. Any
occupation, trade, business or profession engaged in by the
public employee or public officer, his or her spouse, and
dependent children that is subject to licensing or regulation
by a State agency;
c. A
list of all assets having a value of more than $1,000, both
tangible and intangible, in which a direct or indirect interest
is held by the public employee or public officer, his or her
spouse, and dependent children, valued as of the statement
date; provided, however, that when the value cannot be determined
as of that date, a separate valuation date shall be specified
for the particular asset. Where stocks and bonds are involved,
there shall be included the name of the company, mutual fund,
holding company or government agency issuing them (whenever
such interest exists through ownership in a mutual fund or
holding company, the individual stocks held by such mutual
fund or holding company need not be listed; whenever such
interest exists through a beneficial interest in a trust,
the stocks and bonds held in such trust shall be listed only
if the public employee or public officer has knowledge of
what stocks and bonds are so held). Where more than 10 percent
of the stock of a corporation is held, the percentage of ownership
shall be stated. The list shall include any direct or indirect
interest, whether vested or contingent, in any contract made
or executed by a government instrumentality. In the case of
real estate interests, there shall be given the location,
size, general nature and acquisition date of any real property
in New Jersey in which any direct, indirect, vested or contingent
interest is held, together with the names of all individuals
or entities who share a direct or indirect interest therein
and the name of any government instrumentality that is a tenant
of such property or that has before it an application, complaint
or proceeding directly affecting such property. Assets of
a public employee and his or her spouse shall be listed according
to the following value categories:
(i)
greater than $1,000, but not more than $5,000; (ii) greater
than $5,000, but not more than $25,000; (iii) greater than
$25,000, but not more than $50,000; (iv) greater than $50,000,
but not more than $100,000; (v) greater than $100,000, but
not more than $250,000; (vi) greater than $250,000.
The
value of assets of (1) the dependent children of a public
employee or (2) a public officer, his or her spouse and
dependent children need not be disclosed unless specifically
requested by the Governor or the Executive Commission on
Ethical Standards.
d. A
list of all liabilities of the public employee or public officer,
his or her spouse, and dependent children, valued by category
in the same manner as required by paragraph c above, except
liabilities which are:
(i)
less than $10,000 and owed to a relative as defined in Section
6 hereof;
(ii)
less than $1,000 and owed to any other person;
(iii)
loans secured by a personal motor vehicle, household furniture
or appliances where the loan did not exceed the purchase
price of the item and the outstanding balance did not exceed
$10,000 as of the close of the preceding calendar year;
and
(iv)
revolving charge accounts where the outstanding liability
does not exceed $10,000 as of the close of the preceding
calendar year;
e. A
list of all liabilities otherwise subject to disclosure pursuant
to paragraph d above of the public employee or public officer,
his or her spouse, and dependent children which have been
forgiven by the creditor within 12 months of the statement
date. For each such forgiven liability so listed, the name
of the creditor to whom such liability was owed shall be stated;
f. a
list of all sources of income of the public employee or public
officer, his or her spouse, and dependent children including
all compensated employment of whatever nature, all directorships
or other fiduciary positions for which compensation has or
will be claimed, all capital gains including a description
of the individual sources of such gains, all contractual arrangements
producing or expected to produce income, and all honoraria,
lecture fees and other miscellaneous sources of income including,
but not limited to, interest, dividends, royalties and rents.
Statements filed before July 1 of any year shall disclose
sources of income for the preceding calendar year. Statements
filed after July 1 of any year shall provide this information
for the twelve-month period immediately preceding the filing
date. The amounts of such income received shall be listed
and valued by category in the same manner of assets as set
forth in paragraph c(i) through (vi) above. The amount of
income of (1) the dependent children of a public employee
or (2) a public officer, his or her spouse and dependent children
need not be disclosed unless specifically requested by the
Governor or the Executive Commission on Ethical Standards.
Sources of income that are not required to be reported are:
(i)
cash gifts in an aggregated amount of less than $100 received
during the preceding twelve months from a person;
(ii)
non-cash gifts with an aggregated fair market value of less
than $200 received during the preceding twelve months from
a person; and
(iii)
gifts from an aggregated cash or fair market value of less
than $3,000 received during the preceding twelve months
from a relative as defined in Section 6 hereof.
g. A
list of any offices, trusteeships, directorships or positions
of any nature, whether compensated or uncompensated, held
by the public employee or public officer, his or her spouse,
and dependent children with any firm, corporation, association,
partnership or business. If any firm, corporation, association,
partnership or business does business with or is licensed,
regulated or inspected by a State agency or does business
with a casino license holder or applicant, the State agency,
casino or applicant must be identified.
2. Each
statement shall contain a certification by the public employee
or public officer that he or she has read the statement, that
to the best of his or her knowledge and belief it is true, correct
and complete and that he or she has not transferred and will
not transfer any asset, interest or property for the purpose
of concealing it from disclosure while retaining an equitable
interest therein.
3. a.
Within 120 days from the effective date of this Order, each
public employee and public officer who has not already done
so shall file the signed and notarized statement required herein
with the Office of the Governor's Counsel and one copy bearing
an original signature and notarization with the Executive Commission
on Ethical Standards. In furtherance of its duties under the
Conflicts of Interest Law, N.J.S.A. 52:13D-12 et seq. and pursuant
to this Executive Order, the Executive Commission on Ethical
Standards shall review each statement to determine its conformity
with the provisions of this Order and other applicable provisions
of the law. Upon approving such statement for filing, the Commission
shall file and maintain a copy of it for public inspection and
copying in accordance with the procedures set forth in N.J.S.A.
47:1A-1 et seq.;
b. Each
prospective public employee and public officer shall, before
assuming the office to which he or she has been appointed,
satisfy the filing requirements of this Order, unless the
Attorney General grants to such public employee or public
officer an extension from the filing deadline. Such an extension
shall not be granted more than twice and shall not be for
more than 30 days each;
c. Updated
statements shall be filed on the May 15 next succeeding the
submission of the original statement and each May 15 thereafter
provided, however, that public employees and public officers
who file statements on or after January 18, 1994 but prior
to May 15, 1994 need not file an updated statement on May
15, 1994 so long as the person who submitted such statement
is a public employee or public officer of this State as defined
in Section 6 of this Order.
4. The
Executive Commission on Ethical Standards shall keep the approved
statements on file for so long as the person submitting such
statements is a public employee or public officer of this State,
and for five years thereafter.
5. The
Executive Commission on Ethical Standards shall have the primary
responsibility for assuring the proper administration and implementation
of this Order and shall have the power to perform the acts necessary
and convenient to this end, including, but not limited to, preparing
and distributing forms and instructions to be utilized by public
employees and public officers in complying with this Order.
6. Except
as otherwise herein provided, for purposes of this Order:
a. "Public
employee" shall mean any person holding any of the following
offices in the Executive Branch of State government, together
with any offices added to such list by subsequent Executive
Order:
(1)
The Governor; (2) The head of each principal department;
(3) The assistant or deputy heads of each principal department
to include all assistant and deputy commissioners of such
departments; (4) The head and assistant heads of a division
of each principal department, or any person exercising substantially
similar authority for any board or commission which is organized
as in but not of a principal department or any independent
authority; (5) The executive or administrative head and
assistant heads of (i) any board or commission which is
organized as in but not of a principal department or (ii)
any independent authority; (6) The following members of
the staff of the Office of the Governor:
(i) Chief of Staff; (ii) Chief Counsel to the Governor;
(iii) Chief, Office of Policy and Planning; (iv) Director
of Communications; (v) Executive Assistant to the Governor
and any deputy or principal administrative assistant to
any of the foregoing members of the staff of the Office
of the Governor;
(7) Members
of the State Board of Agriculture; (8) Members of the State
Board of Education; (9) Members of the Board of Higher Education;
(10) Members of the State Parole Board; and (11) Presidents
of the State colleges and universities.
b. "Public
officer" shall mean:
(i)
the members of the following boards, commissions, independent
authorities and public corporations, together with any offices
or bodies added to such list by subsequent Executive Order:
(1) Agricultural Development Committee; (2) Atlantic City
Convention Center Authority; (3) Capital City Redevelopment
Corporation; (4) Casino Reinvestment Development Authority;
(5) Council on Affordable Housing; (6) Education Facilities
Authority; (7) Election Law Enforcement Commission; (8)
Hackensack Meadowlands Development Commission; (9) Hazardous
Waste Facilities Siting Commission; (10) Health Care Administration
Board; (11) Health Care Facilities Financing Authority;
(12) Hospital Rate Setting Commission; (13) Low-Level
Radioactive Waste Disposal Facility Siting Board; (14)
Merit System Board; (15) New Jersey Building Authority;
(16) New Jersey Commission on Science and Technology;
(17) New Jersey Economic Development Authority; (18) New
Jersey Expressway Authority; (19) New Jersey Highway Authority;
(20) New Jersey Housing and Mortgage Financing Agency;
(21) New Jersey Public Broadcasting Authority; (22) New
Jersey Racing Commission; (23) New Jersey Sports and Exposition
Authority; (24) New Jersey State Council on the Arts;
(25) New Jersey Transit Corporation; (26) New Jersey Transportation
Trust Fund Authority; (27) New Jersey Turnpike Authority;
(28) New Jersey Urban Enterprise Zone Authority; (29)
North Jersey District Water Supply Commission; (30) Passaic
Valley Sewerage Commission; (31) Passaic Valley Water
Commission; (32) Pinelands Commission; (33) Public Employment
Relations Commission; (34) South Jersey Food Distribution
Authority; (35) South Jersey Port Corporation; (36) South
Jersey Transportation Authority; (37) State Athletic Control
Board; (38) State Lottery Commission; (39) State Planning
Commission; (40) Tidelands Resource Council; (41) Urban
Development Corporation; (42) Wastewater Treatment Trust;
and (43) Water Supply Authority.
(ii)
individuals appointed as a New Jersey member to the following
interstate agencies:
(1) Atlantic States Marine Fisheries Commission; (2) The
Delaware River and Bay Authority; (3) Delaware River Basin
Commission; (4) Delaware River Joint Toll Bridge Commission;
(5) Delaware River Port Authority; (6) Delaware Valley
Regional Planning Commission; (7) Interstate Sanitation
Commission; (8) Northeast Interstate Low-Level Radioactive
Waste Commission; (9) Palisades Interstate Park Commission;
(10) Port Authority of New York and New Jersey; (11) The
Port Authority Trans Hudson Corporation; (12) South Jersey
Port Corporation; and (13) Waterfront Commission of New
York Harbor.
c. "Government
instrumentality" shall mean the Legislative, Judicial and
Executive Branches of State government, including any office,
department, division, bureau, board, commission, council,
authority or agency therein and any county, municipality,
district, public authority, public agency or other political
subdivision or public body in the State;
d. "State
agency" shall mean any of the principal departments in the
Executive Branch of State government, and any division, board,
bureau, office, commission or other instrumentality within
or created by such department, and any independent State authority,
commission, instrumentality or agency;
e. "Relative"
shall mean a son, daughter, grandson, granddaughter, father,
mother, grandfather, grandmother, great-grandfather, great-grandmother,
brother, sister, nephew, niece, uncle or aunt. Relatives by
adoption, half-blood, marriage or remarriage shall be treated
as relatives of the whole kinship.
7. Executive
Order Nos. 1 and 9 of Governor James J. Florio and any subsequent
Executive Orders issued in conjunction therewith are hereby
rescinded, and any regulations adopted and promulgated thereunder
are hereby null and void.
II. Blind
Trusts
1. For
those situations where a blind trust may be utilized by a regular
State employee or his or her spouse or dependent children and
approved by the Executive Commission on Ethical Standards such
trust shall contain the following characteristics:
a. The
trust shall not contain investments or assets in which the
holder's ownership right or interest is required to the recorded
in a public office or those assets whose permanency makes
transfer by the trustee improbable or impractical; these investments
or assets would include, but not be limited to, businesses,
real estate, security interests in personal property and mortgages;
b. The
trust shall contain a clear statement of its purpose, namely,
to remove from the grantor control and knowledge of investment
of trust assets so that conflicts between grantor's responsibilities
and duties as a regular State employee of the State of New
Jersey and his or her private business or financial interests
will be eliminated;
c. The
trust shall be irrevocable, and shall be terminated only upon
the death of the regular State employee or upon termination
of his or her status as a regular State employee, whichever
shall first occur;
d. The
trustee shall be directed not to disclose to the grantor any
information about any of the assets in the trust;
e. The
trustee shall be required either to:
(i)
prepare and file grantor's personal income tax returns,
withholding from distribution of the trust's net income
amounts sufficient to pay the grantor's tax; and further
to participate in the audit of the grantor's returns during
the period of the trust with authority to compromise the
grantor's tax liability; or
(ii)
submit to the grantor, for income tax purposes, a certification
of income paid without identifying the assets producing
such income;
f. Among
its other powers, the trustee shall have authority to determine
whether any of the assets originally transferred to the trustee
are to be sold and, if so, when;
g. a
provision shall be included in the trust agreement prohibiting
the trustee from investing the trust property in corporations
or businesses which it knows to a significant amount of business
with the Sexy真人y or from knowingly making any
investment in a corporation, business or venture over which
the grantor has regulatory or supervisory authority by virtue
of his or her official position;
h. The
grantor shall retain no control over the trustee nor shall
he or she be permitted to make any recommendations or suggestions
as to the trust property;
i. The
trustee shall be a commercial trustee and not a natural person;
j. The
principal benefit to be retained by the grantor shall be the
right to receive income from the assets transferred to the
trust;
k. The
trust shall not become effective until submitted and approved
by the Executive Commission on Ethical Standards; and
l. The
trust agreement shall provide that the trustee will give the
Executive Commission on Ethical Standards access to any records
or information related to the trust which is necessary for
the performance of the Commission's duties.
2. A copy
of the executed blind trust agreement shall be filed with the
Executive Commission on Ethical Standards and with the head
of the department in which the regular State employee holds
his or her position. Attached to such copy shall be a brief
statement outlining the business or financial interests from
which the regular State employee seeks to remove himself or
herself and the actual or potential conflicts of interest, or
appearance of such conflicts, which he or she seeks to avoid
by use of the trust agreement.
3. Executive
Order No. 95 of Governor James J. Florio and any subsequent
Executive Orders issued in conjunction therewith are hereby
rescinded, and any regulations adopted and promulgated thereunder
are hereby null and void.
III. Interests
in Closely Held Corporations or Similar Entities
A. No
regular State employee who is required by law or Executive Order
to submit financial disclosure statements to the Executive Commission
on Ethical Standards shall be permitted to retain any interest
in any closely-held corporation, partnership, sole proprietorship,
or similar business entity doing business with any federal,
State, interstate or local government entity, except as provided
in subsection 3 below.
1. Any
such regular State employee who is employed as of the date
of this Executive Order, and who retains any interest in any
closely-held corporation, partnership, sole proprietorship,
or similar business entity doing business with any federal,
State, interstate or local government entity, shall notify
the Executive Commission on Ethical Standards as to his or
her interest, and his or her spouse's interest, in such a
business entity with 120 days of the effective date of this
Order. The Executive Commission on Ethical Standards shall
review this disclosure statement to determine whether the
business entities in which the employee has an interest are
engaged in government-related business within the meaning
of this Executive Order, and whether the holdings are in compliance
with the Conflicts of Interest Law, N.J.S.A. 52:13D-1 et.
seq. and this Executive Order. No later than September 15,
1994, the Executive Commission on Ethical Standards shall
notify the employee of its findings. The employee shall be
afforded 120 days after the date of notification to effectuate
the orderly disposition of any asset, or to demonstrate to
the Executive Commission on Ethical Standards that the business
entity has ceased to do business with a government entity
in a manner prohibited by this Executive Order.
2. After
the issuance of this Executive Order, no State agency shall
employ any person in a covered position who at the time of
employment holds any interest in any closely held corporation,
partnership, sole proprietorship or similar business entity
doing business with any federal, State, interstate, or local
government entity, except as provided in subsection 3 below.
No individual seeking employment in such a position shall
divest a covered asset in a manner otherwise prohibited by
this Executive Order for the purpose of satisfying the provisions
of this Executive Order. Furthermore, no employee shall obtain
any prohibited interest in a business entity during the employee's
tenure.
3. The
provisions of subsections III A1 and III A2 shall not apply
to any purchase, sale, contract, or agreement with any government
entity other than a State agency, which is made or awarded
after public notice and competitive bidding as provided by
the Local Government Contracts Law, N.J.S.A. 40A:11-1 et seq.,
or such similar provisions contained in the public bidding
laws or regulations applicable to any government entity in
this State or any other jurisdiction, provided that any such
purchase, sale, contract or agreement, including a change
in orders and amendments thereto, shall receive the prior
approval of the Executive Commission on Ethical Standards.
The provisions of subsections III A1 and III A2 do apply where
the purchase, sale, contract or agreement is authorized by
any of the exceptions (e.g., professional or technical services,
emergent matters, and unique compatibility) provided by the
Local Government Contracts Law, N.J.S.A. 40A:11-1 et seq.,
or such similar provisions contained in the public bidding
laws or regulations of any other jurisdiction.
B. No
regular State employee or special State officer who is required
by law or Executive Order to submit a financial disclosure statement
to the Executive Commission on Ethical Standards shall retain
any interest in any closely-held corporation, partnership, sole
proprietorship or similar business entity unless the Executive
Commission on Ethical Standards shall have first determined
that the employee or officer may retain such an interest in
such business entity.
1. Each
regular State employee or special State officer who is employed
or appointed as of the date of this Executive Order shall
notify the Executive Commission on Ethical Standards as to
his or her interest, and his or her spouse's interest, in
any such business entity within 120 days of the effective
date of this Order. The Executive Commission on Ethical Standards
shall review the disclosure statement and shall determine
whether the employee or officer may retain such interest in
the business entity consistent with the standards set forth
in the Conflicts of Interest Law, N.J.S.A. 52:13D-1, et seq.
and this Executive Order. The Executive Commission on Ethical
Standards shall notify the State employee or officer of its
findings no later than September 15, 1994. The employee or
officer shall be afforded 120 days after the date of notification
to effectuate the orderly disposition of any asset or to demonstrate
that the business entity has ceased the business activity
in question.
2. After
the issuance of this Executive Order, no State agency shall
employ or appoint any regular State employee or special State
officer to a covered position if such person holds any interest
in any closely-held corporation, partnership, sole proprietorship
or similar business entity, unless the Executive Commission
on Ethical Standards has reviewed such interest and determined
that the employee or officer may retain such an interest.
a person seeking such employment or appointment shall disclose
to the Executive Commission on Ethical Standards his or her
interest, and his or her spouse's interest, in any such business
entity as soon as practicable, and the Executive Commission
on Ethical Standards shall render a determination no later
than 30 days after receiving such disclosure, or at its next
regularly scheduled meeting. No individual seeking employment
or appointment to such a position shall divest a covered asset
in a manner otherwise prohibited by this Executive Order for
the purpose of satisfying the provisions of this Executive
Order.
C. The
Executive Commission on Ethical Standards shall review all financial
disclosure statements as they may from time to time be submitted
by regular State employees and special State officers to determine
whether the covered persons have obtained ownership or interest
in any assets that give rise to a present or potential conflict
of interest, or a present or potential appearance of a conflict
of interest, within the meaning of this Executive Order.
D. Each
regular State employee or special State officer shall amend
his or her financial disclosure statement within 30 days of
gaining knowledge of (a) his or her, or his or her spouse's
acquisition of any interest in any closely-held corporation,
partnership, sole proprietorship or similar business entity;
or (b) the commencement of any business activity covered by
the provisions of this Executive Order and as determined by
the Executive Commission on Ethical Standards, including, for
example, a change in business plan authorizing business activity
with a federal, State, interstate or local government entity,
by a business in which the officer or employee or the employee's
or officer's spouse has an interest covered by this Executive
Order.
E. Any
regular State employee or special State officer subject to this
Executive Order who acquires an interest prohibited under this
Executive Order by way of inheritance, bequest or similar circumstances
beyond his or her control shall follow the procedures for disclosure
and disposition set forth in Section III A and Section III B
of this Executive Order.
F. all
required divestitures shall be subject to the following conditions:
1. Divestiture
must occur within the time periods prescribed above.
2. Ownership
or control of the asset may not be transferred to a member
of the regular State employee's or special State officer's
immediate family.
3. The
terms and conditions of any conveyance of ownership and control
of the asset shall not contain any provisions regarding the
return of the asset to the regular State employee or special
State officer subsequent to his or her State service.
G. For
the purpose of Section II and Section III of this Order:
1. "Member
of the immediate family" shall mean a spouse, child, parent
or sibling residing in the same household.
2. "Asset"
shall mean property of any kind, real and personal, tangible
and intangible, having a value greater than $1,000.
3. "Interest"
in a closely held corporation, partnership, sole proprietorship
or similar business entity shall mean any ownership or control
of any profits or assets of such business entity.
4. "Doing
business" with any federal, State or local government entity
shall mean business or commercial transactions involving the
sale, conveyance or rental of any goods or services, and shall
not include such activities as compliance with regulatory
procedures.
5. "Regular
State employee" shall have the same meaning as "State officer
or employee" as set forth at N.J.S.A. 52:13D-13b, and "special
State officer" shall have the same meaning as "Special State
officer or employee" as set forth at N.J.S.A. 52:13D-13e.
6. "State
agency" shall mean any of the principal departments of State
government and any entity allocated therein in conformance
with N.J. Const. (1947), Art. V, Sec. IV, para. 1.
IV. Sanctions
and Effective Date
A. The
failure of any employee or officer covered by Sections I, II
and III of this Executive Order to comply with the provisions
of this Executive Order shall constitute good cause for his
or her removal from employment or office.
B. This
Executive Order shall take effect immediately.
GIVEN,
under my hand and seal,
this 18th day of January in the year
of Our Lord, One Thousand Nine
Hundred and Ninety Four, and of
the Independence of the
United States, the two hundred and eighteenth.
/s/
Christine Todd Whitman
GOVERNOR
Attest:
/s/ Peter Verniero
Chief Counsel to the Governor
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