Montclair State University

On-line Ethics Training: Outside Activities - Special State Officers and Employees

More information can be found in the relevant section of The Plain Language Ethics Guide.

Statutory Standards

The Commission has addressed outside activities under the application of standards embodied in the New Jersey Conflicts of Interest Law, N.J.S.A. 52:13D-12 et seq. The applicable statutory provisions are listed below.

Section 16(a) of the Conflicts Law prohibits a special State officer or employee — or any partnership, firm, or corporation in which he or she has an interest — from representing, appearing for, negotiating on behalf of, or agreeing to perform any of the aforementioned activities 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 agency in which he or she holds office.

(As defined in section 13(g) of the Conflicts Law, “interest” means:

1. the ownership or control of more than 10% of the profits or assets of a firm, association, or partnership, or more than 10% of the stock in a corporation for profit other than a professional service corporation organized under the “Professional Service Corporation Act,” P.L. 1969, c. 232 (C. 14A:17-1 et seq.); or

2. the ownership or control of more than 1% of the profits of a firm, association, or partnership, or more than 1% of the stock in any corporation, that is the holder of, or an applicant for, a casino license or in any holding or intermediary company with respect thereto, as defined by the “Casino Control Act,” P.L. 1977, c. 110 (C. 5:12-1 et seq.). The provisions of this act governing the conduct of individuals are applicable to shareholders, associates, or professional employees of a professional service corporation regardless of the extent or amount of their shareholder interest in such a corporation. Section 17.2 of the Conflicts Law prohibits certain casino-related activities. For example, a special State officer or employee is prohibited from holding an interest in or representing, appearing for, or negotiating on behalf of a holder of or applicant for a casino license, or any holding intermediary company with respect thereto, in connection with any matter. Nevertheless, he or she may hold employment with a casino license holder or applicant and, if so employed, may hold an interest in or represent, appear for, or negotiate on behalf of the casino employer.)

Under Section 19 of the Conflicts Law, if a special State officer or employee has duties or responsibilities in connection with the purchase or acquisition of property or services, he or she is prohibited from undertaking any contract, agreement, sale, or purchase of the value of $25 or more made by his or her agency unless the contract is made after public notice and competitive bidding and with the prior approval of the Commission. This prohibition extends to partners or any corporation in which the special State officer owns or controls more than 1% of the stock.

Section 23(e)(1) of the Conflicts Law prohibits a special State officer or employee from engaging in any business or transaction that is in substantial conflict with the proper discharge of his or her official duties.

Section 23(e)(5) of the Conflicts Law prohibits a special State officer or employee from undertaking employment or service reasonably expected to impair objectivity and independence of judgment.

Section 23(e)(7) of the Conflicts Law prohibits a special State officer or employee from knowingly engaging in conduct that creates an appearance of impropriety.

Section 24 of the Conflicts Law prohibits a special State officer or employee from receiving compensation from a source other than the State for a matter related to his or her official duties.

Section 25 of the Conflicts Law prohibits a special State officer or employee from disclosing information not generally available to the public that he or she acquires in the course of his or her official duties.

Representation Before a State Agency

Does representation involve only personal appearances before a special State officer or employee’s agency on behalf of a party other than the State? No. Under Commission precedent, the following also constitute representational activities:

• correspondence to the State agency on behalf of a third party

• telephone calls to the State agency on behalf of a third party

• a special State officer’s or employee’s signature on an application or other document submitted to his or her own State agency on behalf of a third party (e.g., engineering reports)

Outside Activity Licensed or Regulated by the State

Pursuant to section 23(e)(2) of the Conflicts Law, all activities requiring occupational, trade, business, or professional licenses issued by a State agency must be reported to the Commission. Such licenses include, but are not limited to, attorney, physician, nurse, pharmacist, engineer, real estate, insurance, private detective, and teacher. If the license is inactive, please so note.

Political Activity

Special State officers and employees may be involved in partisan political activities provided that there is no provision in the agency code of ethics prohibiting such activities. Special State officers and employees may not use State time or State resources in pursuit of such activities, however.