Ethics Tutorial

Welcome to the online legislative ethics tutorial. This interactive tutorial is designed to acquaint legislators and legislative staff with some of the major provisions governing their ethical behavior. Pursuant to N.J.S.A. 52:13D-28, all legislators and employees are required to take this tutorial no later than April 1 of every even-numbered year. Before beginning the tutorial, it is helpful to review the background of ethics regulation in the State of New Jersey.

Background

Standards of conduct for legislators and all State officers and employees in the executive and legislative branches are delineated in the "New Jersey Conflicts of Interest Law" (N.J.S.A.52:13D-12 et seq.). In addition, legislators and legislative officers and employees are subject to the provisions and procedural requirements of the Legislative Code of Ethics, which is adopted anew by the Legislature for each two-year session. Additionally Joint Rule 19 of the Houses allows inquiry into any conduct of a legislator or legislative employee which reflects upon the good name, integrity, and reputation of the Legislature or any member thereof. The New Jersey Conflicts of Interest Law and the Legislative Code of Ethics regulate three classifications of persons in the Legislative branch of State government: legislators; "State officers or employees" defined as full-time employees; and "special State officers or employees" defined as unpaid or part-time officers or employees. In some situations, there are different levels of restrictions on each classification. When reviewing provisions of the Conflicts of Interest Law and the Code of Ethics be sure to note whether the restrictions pertain to your classification. While this tutorial is intended to acquaint legislators and legislative staff with ethical restrictions, it is not intended to be all inclusive or to address the nuances that exist in the full text of the Conflicts of Interest Law and the Code of Ethics. Legislators and legislative employees are strongly advised to familiarize themselves with the complete provisions of the Conflicts of Interest Law, the Code of Ethics and Joint Rule 19 which are hyperlinked to this tutorial.

The Conflicts of Interest Law and/or the Legislative Code of Ethics have specific application to the following general areas of conduct by legislators and/or legislative employees:

Lawyer-legislators and lawyer-legislative employees should also familiarize themselves with In the Matter of Advisory Committee on Professional Ethics Opinion 621, 128 N.J. 577 (1992), with regard to their ethical standards as lawyers and public officials.

The Legislative Code of Ethics implements the standards of the Conflicts of Interest Law; imposes additional standards of behavior with respect to involvement in casino activity by legislators, their firms or immediate families; restricts legislators in the use of their official titles; and also requires legislators to file an annual disclosure statement with respect to sources of family income and other information. Legislators must file financial disclosure statements covering the previous calendar year with the Joint Legislative Committee on Ethical Standards by May 15. Legislators have a continuing obligation to report any termination or assumption of public employment by themselves or their spouses within 30 days. It should be noted that the Code of Ethics is divided into four chapters: Chapter 1 is the definition section; Chapter 2 regulates legislators; Chapter 3 regulates legislative staff; and Chapter 4 covers administration and enforcement.

The Joint Legislative Committee on Ethical Standards is currently a bipartisan committee composed of eight public members. The Joint Committee is responsible for administering the Conflicts of Interest Law and the Code of Ethics for members of the Legislature and officers and employees in the legislative branch of government. The Joint Committee investigates, either on its own initiative or in response to a complaint, possible violations of the Law, Code, or Joint Rule 19. The Joint Committee is empowered to impose a fine up to $10,000 or suspend from office an officer or employee of the Legislature for violating the Law or Code, and it may fine a legislator up to $10,000 and recommend disciplinary action to the legislator's House.

The Joint Committee may also render formal advisory opinions to legislators and legislative officers and employees as to whether certain proposed actions would violate the Conflicts of Interest Law, Code of Ethics or Joint Rule 19. The Legislative Counsel is counsel to the Joint Committee. Effective January 8, 2008, the position of Ethics Counsel was established. The Ethics Counsel provides confidential informal ethics advice to legislators and employees upon request, when the request is one fully answered by the New Jersey Conflicts of Interest Law or the Legislative Code of Ethics or is on a subject previously determined by the Joint Committee. The Ethics Counsel may also assist members and employees in requesting formal advisory opinions from the Joint Committee on novel subject matters. Legislators are required to consult annually with the Ethics Counsel regarding the requirements of the Conflicts Law, Code of Ethics and other ethics provisions. Legislators and staff should direct inquiries regarding the Law and the Code to the Ethics Counsel in the Office of Legislative Services (609-847-3901).

IMPORTANT NOTE: The hypothetical questions in the tutorial are designed to illustrate how some of the provisions of the Law and Code are applied to specific factual situations. Even minor factual changes could result in different responses. Legislators and legislative staff should not use this tutorial as a substitute for actual advice from the Ethics Counsel and the Joint Legislative Committee on Ethical Standards.

In each area covered by the tutorial, the relevant Law and Code provisions are cited and hyperlinked to the full text which should be reviewed prior to responding to the questions. The cited provisions are summarized, but the summaries do not cover all the fine points of the Law and Code and should not be used as a substitute for reading the entire text. There are 25 questions. Questions are presented in each of the seven areas followed by YES/NO. Answer each question by pointing your cursor to your selected response and clicking once. You will be advised whether your answer is correct or incorrect and provided with an explanation.

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I. Acceptance of Gifts, Favors, Services, Employment or Other Things of Value

Relevant provisions of the Conflicts Law and the Code of Ethics: N.J.S.A.52:13D-14; N.J.S.A.52:13D-24; N.J.S.A.52:13D-24.1; sections 2:1, 2:10, 3:1, and 3:11 of the Code.

Summary: Generally these provisions restrict legislators and legislative employees from accepting compensation, rewards, employment, gifts, honoraria, or other things of value from outside sources to influence their official duties or for matters related to their official duties. Legislators and legislative employees are prohibited from accepting anything to influence them in the performance of their official duties. With regard to accepting gifts and other things of value for matters relating to official duties, the law was amended on January 14, 2004 and the ethics changes took effect on April 13, 2004. The amendments to N.J.S.A. 52:13D-24 prohibit legislators and officers and employees in the legislative branch of State government from soliciting, receiving, or agreeing to solicit or receive, directly or indirectly, any compensation, reward, employment, gift, honorarium, out-of-State travel or subsistence expense or anything of value from any source other than the State for any service, advice, assistance, appearance, speech or other matter related to their official duties, except as expressly authorized in this law. The only authorized exceptions for legislators and employees to receive things in connection with their official duties from outside sources are:

1. Reasonable fees for published books on matters within one's official duties;

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 the costs are not paid by the State;

3. Reimbursement or payment of actual and reasonable expenditures for travel or subsistence outside New Jersey, not to exceed $500.00 per trip, if the costs are not paid by the State. The $500.00 limitation does not apply if payment is made by: (a) a nonprofit organization of which the legislator or employee is an active member as a result of membership dues paid by the State; (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 or one or more states or any political subdivision of another state. Members of the Legislature are now required to obtain the approval of the presiding officer of the member's House before accepting reimbursement or payment of expenditures for travel or subsistence outside New Jersey.

"Reasonable expenditures for travel or subsistence" is defined in the law to mean commercial travel rates directly to and from an event and food and lodging expenses which are moderate and neither elaborate nor excessive. " Allowable entertainment expenses" is defined in the law to mean the costs for a guest speaker, incidental music and other ancillary entertainment at any meal at an event, if they are not elaborate or excessive, but does not include the cost 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.

N.J.S.A. 52:13D-24.1 is a supplement to the Conflicts of Interest Law which took effect April 13, 2004. This section restricts the receipt of things of value from lobbyists or governmental affairs agents as those terms are defined in N.J.S.A. 52:13C-20. A lobbyist is any person, business entity or other organization which uses a governmental affairs agent to influence legislation, regulation or governmental process. A governmental affairs agent is any person receiving something of value to influence legislation, regulation or governmental process by communicating with or providing benefits to, directly or indirectly, public officials, including legislators and legislative staff. Except as expressly authorized in N.J.S.A. 52:13D-24 or when the lobbyist or governmental affairs agent is a member of the immediate family of the legislator or employee, no legislator or employee may accept, directly or indirectly, any compensation, reward, employment, gift, honorarium or other thing of value from a lobbyist or governmental affairs agent totaling more than $250.00 in a calendar year. It is important to note that this restriction applies even though the "thing of value" received from a lobbyist or governmental affairs agent is unrelated to one's public service. The $250.00 limit also applies to each member of the immediate family of a legislator which is defined to be a spouse, child, parent, or sibling residing in the same household.

The above prohibition does not apply if the compensation, reward, gift, honorarium or other thing of value is received in the course of employment with a lobbyist or governmental affairs agent unrelated to one's official duties. The prohibition also does not apply if the legislator or employee makes full reimbursement to the lobbyist or governmental affairs agent of the fair market value of the compensation, reward, gift, honorarium or other thing of value within 90 days of acceptance. Fair market value is defined as the actual cost of the compensation, reward, gift, honorarium or other thing of value.

II. Prohibited Representations

Relevant provisions of the Conflicts Law and the Code of Ethics: N.J.S.A. 52:13D-15; N.J.S.A.52:13D-16, 2:2, 2:3, 2:4, 3:2, 3:3, 3:4, 3:5, of the Code.

Summary: Legislators, full-time legislative employees and their firms are generally prohibited from representing, appearing for or negotiating on behalf of parties other than the State in connection with: the acquisition or sale by a State agency of any interest in property; the acquisition by a State agency of any interest in real property by condemnation proceedings; or any specific matter pending before a State agency, except as expressly authorized by the Law and the Code. Express authorization is given to legislators for the representation of local governmental entities before State agencies as long as the agency is not in the legislative branch of State government and the State is not an adverse party in the proceeding. A specific exception is made for legislators and legislative staff to intercede on behalf of constituents in State agency matters as long as nothing of value is received for the service. Contact with an administrative law judge or agency head during the hearing of a contested case is not authorized. Part-time legislative employees and their firms are prohibited from representing, appearing for or negotiating on behalf of parties only in agencies in the legislative branch of government. Legislators and legislative employees are allowed to represent their own personal interests before State agencies.

III. Casino / Internet Gaming / Cannabis Related Restrictions

Relevant provisions of the Conflicts Law and Code of Ethics: N.J.S.A. 52:13D-17.2; sections 2:8 and 3:10 of the Code.

Summary: Casino Related Restrictions - Generally legislators, certain legislative employees, their firms and members of their immediate families are prohibited from holding an interest in, holding employment with or representing, appearing for or negotiating on behalf of any casino licensee or applicant or any holding or intermediary company with respect thereto. In some situations the Law allows for the Joint Committee to approve casino employment for certain employees and family members. Even part-time legislative employees have casino related restrictions. Legislators, legislative employees included within the definition of "person" in N.J.S.A. 52:13D-17.2a., their firms and members of their immediate families also have casino related restrictions for two years after State service has ended. These are referred to as post-employment restrictions. Casino related restrictions, especially those imposed on legislators pursuant to 2:8 of the Code, are extensive and highly fact sensitive. Legislators and legislative employees having any business relationship with a casino or a casino applicant, other than as a general patron, are strongly encouraged to contact Ethics Counsel with the details of the involvement and obtain specific advice. Similar restrictions are also imposed in connection with Internet gaming and specific advice should be obtained.

Cannabis Related Restrictions - Section 14 of P.L. 2021, c.16 amended N.J.S.A. 52:13D-17.2 to impose certain restrictions on the President of the Senate, the Speaker of the General Assembly, legislative employees, and their firms and members of their immediate families in connection with the cannabis industry. They are generally prohibited from holding an interest in, holding employment with, or representing, appearing for or negotiating on behalf of any holder of or applicant for cannabis industry related permits or any holding or intermediary company with respect thereto. In some situations, the Law allows for the Joint Committee to approve employment for certain employees and family members. Even part-time legislative employees have cannabis related restrictions. The President of the Senate, the Speaker of the General Assembly and legislative employees with responsibility for matters affecting cannabis activity, their firms and members of their immediate families also have cannabis related restrictions for two years after State service has ended. These are referred to as post-employment restrictions. Anyone contemplating involvement with the cannabis industry is encouraged to contact Ethics Counsel with the details of the involvement and obtain specific advice.