GOVERNOR CORZINE SIGNS FOUR ETHICS REFORM EXECUTIVE ORDERS

GOVERNOR CORZINE SIGNS FOUR ETHICS REFORM EXECUTIVE ORDERS 

TRENTON – Governor Jon S. Corzine signed the following Executive Orders designed to close loopholes in the pay-to-play ban, impose a new ban on pay-to-play for all state redevelopment contracts, creates a task force to recommend ways to strengthen local government ethics and improve enforcement, compliance and training, and updates disclosure requirements for the executive branch of state government.

 

The full text of Executive Order 117-120 are below.

 EXECUTIVE ORDER NO. 117 

WHEREAS, the residents of New Jersey are entitled to a government that is effective, efficient, and free from corruption, favoritism, and waste; and

 

WHEREAS, in pursuit of those goals, a series of actions have been taken in New Jersey since 2004 – through legislation, executive order, and regulation – to protect the integrity of government contractual decisions and increase the public’s confidence in government by prohibiting the awarding of government contracts to business entities that also are contributors to certain candidates and political parties; and

 

WHEREAS, among those actions were the issuance of Executive Order No. 134 (2004) and the codification of its provisions into statute in P.L.2005, c.51 (C.19:44A-20.13 et seq.) (“Chapter 51”); and

 

WHEREAS, since its adoption, Chapter 51 has significantly reduced the influence of contractor contributions in the process of awarding State government contracts and has proven to be an effective method of ensuring that merit and cost-effectiveness drive the government contracting process; and

 

WHEREAS, this administration is committed to ensuring the highest ethical standards in government contracting and rooting out corruption, favoritism, and waste; and

 

WHEREAS, experience has shown that additional measures are needed to ensure there is no dilution of the protections provided by Chapter 51 against the improper influence of political contributions on the process of awarding State government contracts and to ensure compliance with the provisions of Chapter 51; and

 

WHEREAS, many State government contractors, particularly those that provide professional services, are business entities whose form of business organization and ownership structure are such that the political contribution limits in Chapter 51 apply to few if any of the individuals who own or control the entity; and

 

WHEREAS, the strong public interest in limiting political contributions by businesses that contract with the State requires that the contribution limits in Chapter 51 be applied to such individuals and that those limits otherwise be applied in such a way that the purposes of Chapter 51 will be served regardless of the form of business organization of the State government contractor; and

 

WHEREAS, because New Jersey’s campaign finance laws permit large, and in some cases unlimited, political contributions to flow between and among various types of political committees and State officeholders, the effectiveness of the restrictions in Chapter 51 can be, and have been, undermined by the current ability of State government contractors to make large contributions to legislative leadership committees and municipal political party committees; and

 

WHEREAS, the Constitution of this State requires the Governor to manage the operations of State government effectively and fairly, uphold the law to ensure public order and prosperity, and confront and uproot malfeasance in whatever form it may take; and

 

WHEREAS, it is the Governor’s responsibility to safeguard the integrity of the State government procurement process by ensuring that there is no dilution of the protections provided by Chapter 51 against the improper influence of political contributions on the process of awarding and overseeing the performance of State government contracts and that there be full compliance with the provisions of Chapter 51;

 

NOW, THEREFORE, I, JON S. CORZINE, 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.         For the purposes of this Order:

                        a.         “Business entity” means:

                        (i)         a for-profit entity as follows:

(A) in the case of a corporation: the corporation, any officer of the corporation, and any person or business entity that owns or controls 10% or more of the stock of the corporation;

(B) in the case of a general partnership: the partnership and any partner;

(C) in the case of a limited partnership: the limited partnership and any partner;

(D) in the case of a professional corporation: the professional corporation and any shareholder or officer;

(E) in the case of a limited liability company: the limited liability company and any member;

(F) in the case of a limited liability partnership: the limited liability partnership and any partner;

(G) in the case of a sole proprietorship: the proprietor; and

(H) in the case of any other form of entity organized under the laws of this State or any other state or foreign jurisdiction:  the entity and any principal, officer, or partner thereof;

(ii)        any subsidiary directly or indirectly controlled by the business entity;

(iii)any political organization organized under section 527 of the Internal Revenue Code that is directly or indirectly controlled by the business entity, other than a candidate committee, election fund, or political party committee; and

(iv)       with respect to an individual who is included within the definition of business entity, that individual’s spouse or civil union partner, and any child residing with the individual, provided, however, that, this Order shall not apply to a contribution made by such spouse, civil union partner, or child to a candidate for whom the contributor is entitled to vote or to a political party committee within whose jurisdiction the contributor resides unless such contribution is in violation of section 9 of P.L.2005, c.51 (C.19:44A-20.13 et seq.) (“Chapter 51”).

b.         “Contribution” means a contribution reportable by the recipient under “The New Jersey Campaign Contributions and Expenditures Reporting Act,” P.L.1973, c.83 (C.19:44A-1 et seq.) made on or after the effective date of this Order.

 

2.         Any Executive Branch department, agency, authority, or independent State authority charged with implementing and enforcing Chapter 51 shall apply its provisions to a “business entity” as defined in Paragraph 1(a) of this Order in the same manner as those provisions apply to a “business entity” as defined in section 5 of Chapter 51.

 

3.         Any Executive Branch department, agency, authority, or independent State authority charged with implementing and enforcing Chapter 51 shall apply its provisions to a contribution made to a legislative leadership committee or a municipal political party committee in the same manner as those provisions apply to a contribution to any candidate committee, election fund, or political party committee identified in Chapter 51.

 

4.         Any Executive Branch department, agency, authority, or independent State authority charged with implementing and enforcing Chapter 51 shall apply its provisions to a contribution made to a candidate committee or election fund of any candidate for or holder of the office of Lieutenant Governor in the same manner as those provisions apply pursuant to Chapter 51 to a contribution to any candidate committee or election fund of any candidate for or holder of the office of Governor.

 

5.         This Order shall take effect on November 15, 2008, and is intended to have prospective effect only.  This Order shall not apply to any contribution made prior to November 15, 2008.

                                   

 EXECUTIVE ORDER NO. 118 

WHEREAS, the residents of New Jersey are entitled to a government that is effective, efficient, and free from corruption, favoritism, and waste; and

           

WHEREAS, in pursuit of those goals, a series of actions have been taken in New Jersey since 2004 – through legislation, executive order, and regulation – to protect the integrity of government contractual decisions and increase the public’s confidence in government by prohibiting the awarding of government contracts to business entities that also are contributors to certain candidates and political parties; and

           

WHEREAS, government decisions regarding redevelopment projects often involve substantial sums of money, and the procedures regarding such decisions can be less rigorous than those governing other types of procurement activities; and

           

WHEREAS, as demonstrated in the recent report of the Inspector General regarding the Encap redevelopment project, the integrity of government decisions regarding a redevelopment project can be called into question by virtue of the timing of political contributions and the nature of government actions benefiting or relating to a redevelopment project; and

           

WHEREAS, the Constitution of this State requires the Governor to manage the operations of State government effectively and fairly, uphold the law to ensure public order and prosperity, and confront and uproot malfeasance in whatever form it may take; and

           

WHEREAS, it is the Governor’s responsibility to safeguard the integrity of decision-making regarding State redevelopment projects by imposing restrictions on State agencies and independent authorities to insulate such decision-making from political contributions that pose the risk of improper influence, purchase of access, or the appearance thereof;

           

NOW, THEREFORE, I, JON S. CORZINE, 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.         For the purposes of this Order:

                        a.         “Business entity” means:

                        (i)         a for-profit entity as follows:

(A) in the case of a corporation: the corporation, any officer of the corporation, and any person or business entity that owns or controls 10% or more of the stock of the corporation;

(B) in the case of a general partnership: the partnership and any partner;

(C) in the case of a limited partnership: the limited partnership and any partner;

(D) in the case of a professional corporation: the professional corporation and any shareholder or officer;

(E) in the case of a limited liability company: the limited liability company and any member;

(F) in the case of a limited liability partnership: the limited liability partnership and any partner;

(G) in the case of a sole proprietorship: the proprietor; and

(H) in the case of any other form of entity organized under the laws of this State or any other state or foreign jurisdiction:  the entity and any principal, officer, or partner thereof;

(ii)        any subsidiary directly or indirectly controlled by the business entity;

(iii)any political organization organized under section 527 of the Internal Revenue Code that is directly or indirectly controlled by the business entity, other than a candidate committee, election fund, or political party committee; and

(iv)       with respect to an individual who is included within the definition of business entity, that individual’s spouse or civil union partner, and any child residing with the individual, provided, however, that this Order shall not apply to a contribution made by such spouse, civil union partner, or child to a candidate for whom the contributor is entitled to vote or to a political party committee within whose jurisdiction the contributor resides unless such contribution is in violation of Paragraph 7 of this Order.

b.         “Contribution” means a contribution reportable by the recipient under “The New Jersey Campaign Contributions and Expenditures Reporting Act,” P.L.1973, c.83 (C.19:44A-1 et seq.) made on or after the effective date of this Order.

c.         “Redeveloper” means any business entity that enters into or proposes to enter into a redevelopment agreement, and includes (i) a subsidiary business entity directly or indirectly controlled by the redeveloper; and (ii) a business entity that contracts with the redeveloper to perform professional, consulting, or lobbying services in connection with the redevelopment project.

d.         “Redevelopment agreement” means an agreement or contract with a State redevelopment entity for the redevelopment or rehabilitation of an area in need of redevelopment, or an area in need of rehabilitation, or any part thereof, or other work forming a part of a redevelopment or rehabilitation project.

e.         “State redevelopment entity” means any State agency, including any principal department in the Executive Branch and any division, board, bureau, office, commission, or other instrumentality within or created by such department, and any independent State authority, board, commission, instrumentality, or agency that is authorized by law to implement a redevelopment project and carry out a redevelopment plan.  The State Treasurer shall prepare and publish a list of the State entities included under this definition.

 

2.         State redevelopment entities shall use a competitive process, to include public issuance of a request for proposal, a request for qualifications, or similar solicitation, for selecting a redeveloper.

 

3.         A State redevelopment entity shall not enter into or propose to enter into a redevelopment agreement with any redeveloper if, beginning after the public issuance of a request for proposal, a request for qualifications, or similar solicitation in accordance with Paragraph 2 of this Order, that redeveloper has made a contribution to (i) a candidate committee or election fund of any candidate for or holder of the public office of Governor or Lieutenant Governor, (ii) a State,  county, or municipal political party committee or a legislative leadership committee, or (iii) a candidate committee or election fund of any candidate for or holder of a State legislative, county, or municipal elective public office in a State legislative district, county, or municipality in which any property subject to the redevelopment agreement is situated.

           

4.         A redeveloper that enters into a redevelopment agreement with a State redevelopment entity shall not make a contribution during the term of the redevelopment agreement to any committee or election fund identified in Paragraph 3 of this Order.

 

5.         Prior to entering into a redevelopment agreement a State redevelopment entity shall require the redeveloper to report all contributions the redeveloper made during the preceding four years to any political organization organized under section 527 of the Internal Revenue Code that also meets the definition of a “continuing political committee” within the meaning of section 3 of P.L.1973, c.83 (C.19:44A-3), and, in the event the redeveloper enters into a contract with a business entity to perform professional, consulting, or lobbying services in connection with the redevelopment project after entering into the redevelopment agreement, the redeveloper shall supplement its report to include such contributions by that business entity.  Such reports shall be subject to review by the State Treasurer. If the State Treasurer determines that any such contribution or any other act by the redeveloper would constitute a violation of this Order, the State Treasurer shall disqualify the redeveloper from being awarded the redevelopment agreement.

           

6.         Prior to entering into a redevelopment agreement a State redevelopment entity shall require the redeveloper to provide a written certification that it has not made a contribution that would bar the award of the redevelopment agreement pursuant to this Order. The redeveloper shall have a continuing duty to report any contribution it makes during the term of the redevelopment agreement. Such reports shall be subject to review by the State Treasurer

           

7.         A redeveloper shall not: (i) make a contribution in violation of this Order, unless such violation is remedied in accordance with Paragraph 8 of this Order; (ii) conceal or misrepresent a contribution given or received; (iii) make a contribution through an intermediary for the purpose of concealing or misrepresenting the source of the contribution; (iv) make a contribution on the condition or with the agreement that the recipient will in turn make a contribution that if made by the redeveloper itself would subject the redeveloper to the restrictions of this Order; (v) engage or employ a lobbyist, governmental affairs agent, or consultant with the intent or understanding that the lobbyist, governmental affairs agent, or consultant would make a contribution that if made by the redeveloper itself would subject the redeveloper to the restrictions of this Order; (vi) fund or direct contributions made by third parties, including consultants, attorneys, family members, and employees; (vii) engage in any exchange or contributions to circumvent the intent of this Order; or (viii) directly or indirectly, through or by any other person or means, do any act which would subject the redeveloper to the restrictions of this Order.  A violation of the provisions of this Order shall be considered a material breach of the redevelopment agreement unless remedied in accordance with Paragraph 8 of this Order.

           

8.         Except for contributions made within 60 days of a June primary election or a general election, if a redeveloper makes a contribution that would otherwise bar it from entering into a redevelopment agreement with a State redevelopment entity or makes a contribution during the term of a redevelopment agreement in violation of this Order, the redeveloper may request a full reimbursement from the recipient and, if such reimbursement is received within 30 days after the date on which the contribution was made, the redeveloper would again be eligible to enter into the redevelopment agreement or would no longer be in violation, as appropriate.

           

9.         Every request for qualifications, request for proposals, or any similar solicitation issued by a State redevelopment entity in connection with a redevelopment project shall contain a provision describing the requirements of this Order and a statement that compliance with this Order shall be a material term and condition of any redevelopment agreement with the State redevelopment entity and binding upon the parties thereto upon the execution of the redevelopment agreement.

           

10.       To the extent that a term that is used in this Order requires interpretation or definition, resort shall be made to the relevant definition of the term in the “New Jersey Campaign Contributions and Expenditures Reporting Act,” P.L.1973, c.83 (C.19:44A-1, et seq.) or to section 3 of P.L.1992, c.79 (C.40A:12A-3), as may be appropriate.

 

11.       This Order shall take effect on November 15, 2008, and is intended to have prospective effect only.  This Order shall apply to all redevelopment agreements entered into after November 15, 2008, but shall not affect any contribution made prior to November 15, 2008.

    EXECUTIVE ORDER NO. 119 

WHEREAS, it is a priority of this administration to restore public trust and confidence in government; and

 

WHEREAS, it is imperative that public officials at all levels of government earn and maintain the confidence of the people they represent; and

 

WHEREAS, those serving in State, county, municipal, and other local government units hold positions of public trust that require adherence to the highest ethical standards of honesty and integrity; and

 

WHEREAS, public officials should not engage in any conduct that violates the public trust or creates an appearance of impropriety; and

 

WHEREAS, the current local government ethics laws were first adopted in 1991, and since that time there has not been a thorough review of the efficacy of those laws, nor any comprehensive study of the need for amendments thereto; and

 

WHEREAS, to the extent appropriate, ethical standards should be applied consistently to similarly situated officials in order to promote respect for those standards and provide for their enforcement; and

 

WHEREAS, persons serving in government should have the benefit of clear and consistent standards, ample training opportunities, and an effective compliance program to assist in guiding their conduct; and

 

WHEREAS, it is appropriate to create a body with experience and expertise in local governance, local government ethics, and the procurement of goods and services by local units to study the experience of local units under the local government ethics laws and make recommendations regarding amendments to those laws, including whether enforcement responsibility should be shifted from the Local Finance Board to a different body solely focused on government ethics;

 

NOW, THEREFORE, I, JON S. CORZINE, 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.         There is hereby established the Governor’s Local Government Ethics Task Force (“Task Force”).

 

2.         The Task Force shall be composed of 11 individuals with expertise in local governance, local government ethics, and the procurement of goods and services by local units.   Members will be appointed by and serve at the pleasure of the Governor.  The Task Force membership shall include one individual who shall be appointed by the Governor upon the recommendation of the President of the Senate, one individual who shall be appointed by the Governor upon the recommendation of the Senate Minority Leader, one individual who shall be appointed by the Governor upon the recommendation of the Speaker of the Assembly, and one individual who shall be appointed by the Governor upon the recommendation of the Assembly Minority Leader.  The Governor shall select from among all of the members the chairperson of the Task Force.  The members shall serve without compensation.

 

3.         The Task Force shall organize as soon as practicable after the appointment of a majority of its members.

  

4.         The Task Force is charged with studying and making recommendations regarding the need for amendments to the local government ethics laws and whether enforcement responsibility should be shifted from the Local Finance Board to a different body that is solely focused on government ethics.  The Task Force also shall consider and make recommendations concerning how to implement a training and compliance program for local government ethics.

 

5.         The Task Force shall be authorized to call upon any department, office, division, or agency of this State to supply it with any information or other assistance available as the Task Force deems necessary to discharge its duties under this Order.  Each department, office, division, or agency of this State is hereby required, to the extent not inconsistent with law, to cooperate fully with the Task Force within the limits of its statutory authority and to furnish the Task Force with such assistance on as timely a basis as is necessary to accomplish the purposes of this Order.  The Task Force may consult with experts or other knowledgeable individuals in the public or private sector on any aspect of its mission.    

 

6.         The Task Force may report to the Governor from time to time and shall issue a final report to the Governor no later than 10 months from the date of the first organizational meeting. The final report shall include the Task Force’s recommendations. The Task Force shall expire upon the issuance of its final report.

 

7.         Any reports of the Task Force shall be provided to the Legislature and shall be made available to the public.

 

8.         This Order shall take effect immediately.

    EXECUTIVE ORDER NO. 120 

WHEREAS, I am committed to maintaining an administration that adheres to the highest ethical standards and enhances public trust in government, and

 

WHEREAS, public officials should not engage in conduct that violates the public trust or creates an appearance of impropriety; and

 

WHEREAS, persons serving in government should have the benefit of specific standards to guide their conduct; and

 

WHEREAS, ethical standards should be applied consistently to similarly situated officials in order to promote respect for those standards and provide for their enforcement; and

 

WHEREAS, public disclosure of the personal financial interests of public officials serves to maintain the public's faith and confidence in its governmental representatives and guards against conduct violative of the public trust; and

 

WHEREAS, my first Executive Order strengthened and expanded previously established financial disclosure processes to ensure that financial disclosure requirements are applied to government officials and to members of all State government boards, commissions, and other bodies that perform important governmental functions in areas such as regulation, policy-making, and the expenditure of public funds; and

 

WHEREAS, Executive Order No. 1 (2006) included expansive definitions of the terms “public employee" and “public officer” that specifically provided for periodic future updates to include newly created offices, as determined by the Governor; and

 

WHEREAS, since the issuance of Executive Order No. 1 in January 2006, new State government positions and entities that perform important governmental functions in areas such as regulation, policy-making, and the expenditure of public funds have been established; and

 

NOW, THEREFORE, I, JON S. CORZINE, 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.         Paragraph 6 of Executive Order No. 1 (2006) is hereby amended to include the State Comptroller, established pursuant to P.L.2007, c.52, within the definition of “public employee,” and to include within the definition of “public officer” the members of the New Jersey Marine Sciences Consortium, established pursuant to P.L.2007, c.206, and the New Jersey Technology Governing Board, established pursuant to Executive Order No. 42 (2006).

 

2.         Except as herein modified, all of the provisions of Executive Order No. 1 (2006) shall remain in full force and effect.

  

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