Bill Text: NC H1055 | 2015-2016 | Regular Session | Amended
Bill Title: State Ethics Comm. Revisions
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2016-06-13 - Ref To Com On Rules and Operations of the Senate [H1055 Detail]
Download: North_Carolina-2015-H1055-Amended.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2015
H 3
HOUSE BILL 1055
Committee Substitute Favorable 6/7/16
Third Edition Engrossed 6/9/16
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Short Title: State Ethics Comm. Revisions. |
(Public) |
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Sponsors: |
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Referred to: |
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May 10, 2016
A BILL TO BE ENTITLED
AN ACT TO MAKE VARIOUS REVISIONS TO THE STATE GOVERNMENT ETHICS ACT AND THE LOBBYING LAWS.
The General Assembly of North Carolina enacts:
SECTION 1.(a) G.S. 138A‑3(15) reads as rewritten:
"(15) Gift. – Anything of monetary value given or received without valuable consideration by or from a lobbyist, lobbyist principal, liaison personnel, or a person described under G.S. 138A‑32(d)(1), (2), or (3). The following shall not be considered gifts under this subdivision:
…
g. Campaign contributions properly reported under federal law.
h. Anything of value given and received between extended family members."
SECTION 1.(b) G.S. 138A‑32(e)(7) reads as rewritten:
"(e) Subsections (c), (d), and (d1) of this section shall not apply to any of the following:
...
(7) Gifts from the covered
person's or legislative employee's extended family, or a member of the same
household of the covered person or legislative employee."
SECTION 1.(c) This section becomes effective December 1, 2016, and applies to offenses committed on or after that date.
SECTION 2. G.S. 138A‑10(a) reads as rewritten:
"§ 138A‑10. Powers and duties.
(a) In addition to other powers and duties specified in this Chapter, the Commission shall:
…
(5) Conduct inquiries of and investigations
on alleged violations against judicial officers, legislators, and
legislative employees in accordance with G.S. 138A‑12.
(6) Conduct inquiries intoinquiries,
investigations, and hearings on alleged violations against public servants
in accordance with G.S. 138A‑12.
.…"
SECTION 3. G.S. 138A‑14(i) reads as rewritten:
"(i) This section shall
not apply to judicial officers. officers, unless otherwise serving as
a public servant."
SECTION 4. G.S. 138A‑15(h) reads as rewritten:
"(h) As soon as
reasonably practicable after Prior to the designation, hiring, or
promotion of their chief deputies, assistants, or other public servants under
their supervision or control, or upon learning of the appointment or
election of other public servants to a board covered under this Chapter, all
agency heads and board chairs shall (i) notify the Commission in writing of
such designation, hiring, promotion, appointment, or election and (ii) provide
these public servants with copies of this Chapter and all applicable financial
disclosure forms, if these materials and forms have not been previously
provided to these public servants in connection with their designation, hiring,
promotion, appointment, or election. In order to avoid duplication of effort,
agency heads and board chairs shall coordinate this effort with the
Commission's staff."
SECTION 5. G.S. 138A‑22(c) reads as rewritten:
"(c) Notwithstanding
subsection (a) of this section, public servants, under G.S. 138A‑3(30)j.
and k., except those as defined in G.S. 138A‑3(30)a., who
have submitted a statement of economic interest under subsection (a) of this
section, may be hired, appointed, or elected provisionally prior to submission
by the Commission of the Commission's evaluation of the statement in accordance
with this Article, subject to dismissal or removal based on the Commission's
evaluation."
SECTION 6. G.S. 138A‑24(a) reads as rewritten:
"(a) Any statement of economic interest filed under this Article shall be on a form prescribed by the Commission. Answers must be provided to all questions. The form shall include the following information about the filing person and the filing person's immediate family:
(1) Except as otherwise provided in this subdivision, the name, current mailing address, occupation, employer, and business of the filing person. Any individual holding or seeking elected office for which residence is a qualification for office shall include a home address. A judicial officer may use a current mailing address instead of the home address on the form required in this subsection. The filing person may also use the initials instead of the name of any unemancipated child of the filing person who also resides in the household of the filing person. If the filing person provides the initials of an unemancipated child, the filing person shall concurrently provide the name of the unemancipated child to the Commission. The name of an unemancipated child provided by the filing person to the Commission shall not be a public record under Chapter 132 of the General Statutes and is privileged and confidential.
(2) A list of each asset and liability included in this subdivision of whatever nature (including legal, equitable, or beneficial interest) with a value of at least ten thousand dollars ($10,000) owned by the filing person and the filing person's immediate family, except assets or liabilities held in a blind trust. This list shall include the following:
a. All real estate located in the State owned wholly or in part by the filing person or the filing person's immediate family, including descriptions adequate to determine the location by city and county of each parcel.
b. Real estate that is currently leased or rented to or from the State.
c. Personal property sold to or bought from the State within the preceding two years.
d. Personal property currently leased or rented to or from the State.
e. The name of each publicly owned company. For purposes of this sub‑subdivision, the term "publicly owned company" shall not include a widely held investment fund, including a mutual fund, regulated investment company, or pension or deferred compensation plan, if all of the following apply:
1. The filing person or a member of the filing person's immediate family neither exercises nor has the ability to exercise control over the financial interests held by the fund.
2. The fund is publicly traded, or the fund's assets are widely diversified.
f. The name of each nonpublicly owned company or business entity, including interests in sole proprietorships, partnerships, limited partnerships, joint ventures, limited liability companies, limited liability partnerships, and closely held corporations.
g. For each company or business entity listed under sub‑subdivision f. of this subdivision, if known, a list of any other companies or business entities in which the company or business entity owns securities or equity interests exceeding a value of ten thousand dollars ($10,000).
h. Repealed by Session Laws 2010‑169, s. 13(a), effective January 1, 2011, and applicable to statements of economic interest filed on or after that date.
i. Recodified as subdivision (a)(16) by Session Laws 2010‑169, s. 13(c), effective January 1, 2011, and applicable to statements of economic interest filed on or after that date.
j. For a vested trust created, established, or controlled by the filing person of which the filing person or the members of the filing person's immediate family are the beneficiaries, excluding a blind trust, the name and address of the trustee, a description of the trust, and the filing person's relationship to the trust.
k. A list of all liabilities, excluding indebtedness on the filing person's primary personal residence, by type of creditor and debtor.
l. Repealed by Session Laws 2007‑348, s. 34. See Editor's note for effective date.
m. A list of all stock options
options, stock grants, stock units, and restricted stocks, whether
vested or unvested, in a company or business not otherwise disclosed on
this statement.
(3) The name of each source (not specific amounts) of income of more than five thousand dollars ($5,000) received during the previous year by business or industry type, if that source is not listed under subdivision (2) of this subsection. Income shall include salary, wages, professional fees, honoraria, interest, dividends, rental income, and business income from any source other than capital gains, federal government retirement, military retirement, or social security income.
(4) If the filing person is a practicing attorney, an indication of whether the filing person, or the law firm with which the filing person is affiliated, earned legal fees during the past year in excess of ten thousand dollars ($10,000) from any of the following categories of legal representation:
a. Administrative law.
b. Admiralty law.
c. Corporate law.
d. Criminal law.
e. Decedents' estates law.
f. Environmental law.
g. Insurance law.
h. Labor law.
i. Local government law.
j. Negligence or other tort litigation law.
k. Real property law.
l. Securities law.
m. Taxation law.
n. Utilities regulation law.
(5) Except for a filing person in compliance under subdivision (4) of this subsection, if the filing person is a licensed professional or provides consulting services, either individually or as a member of a professional association, a list of categories of business and the nature of services rendered, for which payment for services were charged or paid during the past year in excess of ten thousand dollars ($10,000).
(6) An indication of whether the filing person, the filing person's employer, a member of the filing person's immediate family, or the immediate family member's employer is licensed or regulated by, or has a business relationship with, the board or employing entity with which the filing person is or will be associated. This subdivision does not apply to a legislator, a judicial officer, or that legislator's or judicial officer's immediate family.
(7) A list of societies, organizations, or advocacy groups, pertaining to subject matter areas over which the public servant's agency or board may have jurisdiction, in which the public servant or a member of the public servant's immediate family is a director, officer, or governing board member. This subdivision does not apply to a legislator, a judicial officer, or that legislator's or judicial officer's immediate family.
(8) A list of all things with a total value of over two hundred dollars ($200.00) per calendar quarter given and received without valuable consideration and under circumstances that a reasonable person would conclude that the thing was given for lobbying, if such things were given by a person not required to report under Chapter 120C of the General Statutes, excluding things given by a member of the filing person's extended family. The list shall include only those things received during the 12 months preceding the reporting period under subsection (d) of this section, and shall include the source of those things. The list required by this subdivision shall not apply to things of monetary value received by the filing person prior to the time the filing person filed or was nominated as a candidate for office, as described in G.S. 138A‑22, or was appointed or employed as a covered person.
(8a) A list of all scholarships related to the filing person's public service or position valued over two hundred dollars ($200.00) from a person, or group of persons, acting together, if such scholarship was given by a person or group of persons not required to report under Chapter 120C of the General Statutes.
(9) A list of any felony convictions of the filing person, excluding any felony convictions for which a pardon of innocence or order of expungement has been granted.
(10) Any other information that the filing person believes may assist the Commission in advising the filing person with regards to compliance with this Chapter.
(11) A list of any nonprofit corporation or organization with which associated during the preceding calendar year, including a list of which of those nonprofit corporations or organizations with which associated do business with the State or receive State funds and a brief description of the nature of the business, if known or with which due diligence could reasonably be known.
(12) A statement of whether the filing person or the filing person's immediate family is or has been a lobbyist or lobbyist principal registered under Chapter 120C of the General Statutes within the preceding 12 months.
(13) A list of all contributions as defined in G.S. 163‑278.6(6) with a cumulative total of more than one thousand dollars ($1,000) made by the filing person only, during the preceding calendar year, to the candidate or candidate campaign committee of the covered person as defined in G.S. 138A‑3(30)a. appointing the filing person to the covered board.
(14) A statement indicating "Yes" or "No" as to whether the filing person engaged in each of the following activities during the preceding calendar year, with respect to or on the behalf of the candidate or candidate campaign committee of the covered person as defined in G.S. 138A‑3(30)a. appointing the filing person: (i) collected contributions from multiple contributors, took possession of such multiple contributions, and transferred or delivered those collected multiple contributions, (ii) hosted a fund‑raiser in the filing person's residence or place of business, or (iii) volunteered for campaign‑related activity. This subdivision only applies to filing persons in the following categories:
a. A public servant, or a prospective appointee to, as defined in G.S. 138A‑3(30)c.
b. A judicial officer that serves on, or a prospective appointee to, the Supreme Court, the Court of Appeals, the superior court, or the district court.
c. A covered person serving on, or a prospective appointee to, one of the following panels or boards:
1. Alcoholic Beverage Control Commission.
2. Coastal Resources Commission.
3. State Board of Education.
4. State Board of Elections.
5. Division of Employment Security.
6. Environmental Management Commission.
7. Industrial Commission.
8. State Human Resources Commission.
9. Rules Review Commission.
10. Board of Transportation.
11. Board of Governors of the University of North Carolina.
12. Utilities Commission.
13. Wildlife Resources Commission.
(15) The name of each business with which associated that the filing person or a member of the filing person's immediate family is an employee, director, officer, partner, proprietor, or member or manager.
(16) For any company or business entity listed under subdivision (15) of this subsection and sub‑subdivisions f. and g. of subdivision (2) of this subsection, if known, a statement whether that company or business entity has any material business dealings or business contracts with the State, or is regulated by the State, including a brief description of the business activity."
SECTION 6.5. G.S. 138A‑24 is amended by adding a new subsection to read:
"(a1) A public servant who is seeking an elected office covered by this Article shall respond to all questions related to service as a public servant and all questions related to seeking the elected office."
SECTION 7. G.S. 138A‑25 reads as rewritten:
"§ 138A‑25. Failure to file.
(a) Within 30 days after the
date due under G.S. 138A‑22, the Commission shall notify filing
persons who have failed to file or filing persons whose statement has been
deemed incomplete. For a filing person currently serving as a covered person,
the Commission shall notify the filing person and the ethics liaison that if
the statement of economic interest is not filed or completed within 30 days of receipt
the date of the notice of failure to file or complete, the filing
person shall be subject to a fine as provided for in this section.
(b) Any filing person who
fails to file or complete a statement of economic interest within 30 days of
the receipt date of the notice, required under subsection (a) of
this section, shall be subject to a fine of two hundred fifty dollars
($250.00), to be imposed by the Commission.
(c) Failure by any filing
person to file or complete a statement of economic interest within 60 days of
the receipt date of the notice, required under subsection (a) of
this section, shall be deemed to be a violation of this Chapter and shall be
grounds for disciplinary action under G.S. 138A‑45.
(d) Within 30 days after the
date due under G.S. 138A‑22, the Commission shall notify persons who
are required to file a Statement of Economic Interest under G.S. 136‑200.2(g)(3)
or G.S. 136‑211(f)(3) of a failure to file the Statement of Economic
Interest or the filing of an incomplete Statement of Economic Interest. The
Commission shall notify the filing person that if the Statement of Economic
Interest is not filed or completed within 30 days of receiptthe date
of the notice of failure to file or complete, the filing person shall be fined
and referred for prosecution after an additional 30 days, as provided for in
this section:
(1) Any filing person who fails to file a Statement of
Economic Interest under G.S. 136‑200.2(g)(3) or G.S. 136‑211(f)(3)
within 30 days of the receiptdate of the notice required under
this section shall be fined two hundred fifty dollars ($250.00) by the
Commission for not filing or filing an incomplete Statement of Economic
Interest, except in extenuating circumstances as determined by the Commission.
(2) Failure by any filing person to file or complete
the Statement of Economic Interest within 60 days of the receipt date
of the notice required under this subsection shall be a Class 1
misdemeanor. The Commission shall report such failure to the Director of the
State Bureau of Investigation for investigation and referral to the District
Attorney for possible prosecution, unless the Commission determines extenuating
circumstances exist. Upon receipt of the report from the Commission, the
Director of the State Bureau of Investigation shall make appropriate
investigation into the matter and forward a copy of the investigation to the Wake
County District Attorney for possible prosecution.
(e) Within 30 days after the
date due under G.S. 138A‑22, the Commission shall notify persons who
are required to file an additional disclosure under G.S. 136‑200.2(g)(4)
or G.S. 136‑211(f)(4) of a failure to file the additional disclosure
or the filing of an incomplete additional disclosure. The Commission shall
notify the filing person that if the additional disclosure is not filed or
completed within 30 days of receipt the date of the notice of
failure to file or complete, the filing person shall be fined and referred for
prosecution after an additional 30 days, as provided for in this section:
(1) Any filing person who fails to file or who files an
incomplete additional disclosure within 30 days of the receipt date of
the notice required under this section shall be fined two hundred fifty dollars
($250.00) for not filing or filing an incomplete additional disclosure, except
in extenuating circumstances as determined by the Commission.
(2) Failure by any filing person to file or complete
the additional disclosure within 60 days of the receipt date of
the notice required under this subsection shall be a Class 1 misdemeanor. The
Commission shall report such failure to the Director of the State Bureau of
Investigation for investigation and referral to the District Attorney for
possible prosecution, unless the Commission determines extenuating circumstances
exist. Upon receipt of the report from the Commission, the Director of the
State Bureau of Investigation shall make appropriate investigation into the
matter and forward a copy of the investigation to the Wake County District
Attorney for possible prosecution.
(f) Computation of periods of time provided for in this section shall be calculated as set forth in G.S. 1A‑1, Rule 6(e)."
SECTION 8. G.S. 138A‑28 reads as rewritten:
"§ 138A‑28. Review and evaluation of statements of economic interest.
(a) The Commission shall
receive and review all statements of economic interest pursuant to
G.S. 138A‑10(a)(4) and shall evaluateevaluate, under
subsection (b) of this section, whether (i) the statements conform to the
law and the rules of the Commission, and (ii) the financial interests and other
information reported by prospective and actual covered persons and others
required to file reveal actual or potential conflicts of interest.
(b) Beginning July 1, 2013, the Commission shall establish a biennial cycle for evaluating subsequently filed statements of economic interest. The Commission shall evaluate each initial filing as provided in subsection (a) of this section.
(c) Notwithstanding subsection (b) of this section, statements filed by the following prospective and actual public servants shall be evaluated on an annual basis:
(1) The University of North Carolina Board of Governors, subject to G.S. 138A‑24(f).
(2) The State Board of Community Colleges, subject to G.S. 138A‑24(f).
(3) The North Carolina Utilities Commission.
(4) The North Carolina Industrial Commission.
(5) Supplemental statements filed pursuant Metropolitan
Planning Organizations and Rural Transportation Planning Organizations subject to
Chapter 136 of the General Statutes.Statutes.
(5a) The North Carolina Board of Transportation, subject to Article 8 of Chapter 143B of the General Statutes.
(6) Any other board or commission whose members are elected or confirmed by the General Assembly.
(d) Notwithstanding subsections (a) and (b) of this section, statements of economic interest filed by Constitutional officers of the State and individuals elected or appointed as Constitutional officers of the State prior to taking office shall be evaluated every four years upon election or appointment to office.
(e) A public servant who simultaneously serves on more
than one covered board may file one statement of economic interest and that
statement shall serve as disclosure for all the covered boards. If, during the biennial
cycle, year after the statement of economic interest has been filed, a
public servant leaves one covered board and begins service as a
public servant in another capacity,membership on another covered board,
the that public servant is not required to file another
statement of economic interest, and the Commission is not required to
evaluate the statement againinterest in light of the subsequent appointment.service
as a public servant. The public servant must make subsequent filings
pursuant to G.S. 138A-22(a) upon the expiration of the biennial cycle.
(f) Nothing in this section
shall be construed to impair the Commission's duties and authority under G.S. 138A‑25
and G.S. 138A‑26.G.S. 138A‑25."
SECTION 9. G.S. 138A‑38(a) reads as rewritten:
"(a) Notwithstanding G.S. 138A‑36G.S. 138A‑31(a),
G.S. 138A‑36, and G.S. 138A‑37, a covered person may
participate in an official action or legislative action under any of the
following circumstances except as specifically limited:
...
(6) When a public or legislative body records in its minutes that it cannot obtain a quorum in order to take the official or legislative action because the covered person is disqualified from acting under G.S. 138A‑31(a), G.S. 138A‑36, G.S. 138A‑37, or this section, the covered person may be counted for purposes of a quorum, but shall otherwise abstain from taking any further action.
.…"
SECTION 10. G.S. 138A‑45 reads as rewritten:
"§ 138A‑45. Violation consequences.
(a) Violation of this Chapter by any ethics liaison, covered person or legislative employee is grounds for disciplinary action. Except as specifically provided in this Chapter and for perjury under G.S. 138A‑12 and G.S. 138A‑24, no criminal penalty shall attach for any violation of this Chapter.
(b) The willful failure of
any public servant serving on a board to comply with this Chapter is
misfeasance, malfeasance, or nonfeasance. In the event of misfeasance,
malfeasance, or nonfeasance, the offending public servant serving on a board is
subject to removal from the board of which the public servant is a member. For
appointees of the Governor and members of the Council of State, the appointing
authority may remove the offending public servant. For appointees of the
Speaker of the House of Representatives, the Speaker of the House of
Representatives may remove the offending public servant. For appointees of the
General Assembly made upon the recommendation of the Speaker of the House of
Representatives, the Governor at the recommendation of the Speaker of the House
of Representatives may remove the offending public servant. For appointees of
the President Pro Tempore of the Senate, the President Pro Tempore of the
Senate may remove the offending public servant. For appointees of the General
Assembly made upon the recommendation of the President Pro Tempore of the
Senate, the Governor at the recommendation of the President Pro Tempore of the
Senate may remove the offending public servant. For public servants elected to
a board by either the Senate or House of Representatives, the electing house of
the General Assembly shall exercise the discretion of whether to remove the
offending public servant. For all other appointees,public servants,
the Commission shall exercise the discretion of whether to remove the offending
public servant.
.…"
SECTION 11. G.S. 120C‑100(a)(3) reads as rewritten:
"(3) Executive action. – The preparation, research, drafting, development, consideration, modification, amendment, adoption, approval, tabling, postponement, defeat, or rejection of a policy, guideline, request for proposal, procedure, regulation, or rule by a public servant purporting to act in an official capacity. This term does not include any of the following:
a. Present, prior, or possible proceedings of a contested case hearing under Chapter 150B of the General Statutes, of a judicial nature, or of a quasi‑judicial nature.
b. A public servant's communication with a person, or another person on that person's behalf, with respect to any of the following:
1. Applying for a permit, license, determination of eligibility, or certification.
2. Making an inquiry about or asserting a benefit, claim, right, obligation, duty, entitlement, payment, or penalty.
3. Making an inquiry about or responding to a request
for proposal made under Chapter 143 135, 143, or 147 of the
General Statutes.
4. Ratemaking.
.…"
SECTION 12. G.S. 120C‑200 reads as rewritten:
"§ 120C‑200. Lobbyist registration procedure.
(a) A lobbyist shall file
a separate registration statement for each principal the lobbyist represents
with the Secretary of State before engaging in any lobbying. It shall be
unlawful for an individual to lobby without registering filing a
registration statement within one business day of engaging in any lobbying
as defined in G.S. 120C‑100(9) unless exempted by this Chapter. A
lobbyist shall file a separate registration statement for each principal the
lobbyist represents with the Secretary of State.
(b) The form of the registration statement shall be prescribed by the Secretary of State, be filed electronically, and shall include the registrant's full name, firm, complete address, and telephone number; the registrant's place of business; the full name, complete address, and telephone number of each principal the lobbyist represents; and a general description of the matters on which the registrant expects to act as a lobbyist.
(c) Each lobbyist shall electronically file an amended registration statement form with the Secretary of State no later than 10 business days after any change in the information supplied in the lobbyist's last registration statement under subsection (b) of this section. Each supplementary registration statement shall include a complete statement of the information that has changed.
…
(f) In addition to the
information required for the registration statement under
subsection (b) of this section, former employees of a State agency who register
as a lobbyist within six months after voluntary separation or separation for
cause from employment with a State agency shall also indicate which State
agency with which State agency the former employee was
employed."
SECTION 13. G.S. 120C‑201(a) reads as rewritten:
"§ 120C‑201. Lobbyist's registration fee.
(a) A fee of two hundred
fifty dollars ($250.00) is due and payable to the Secretary of State at the
time of filing each lobbyist registration.registration
statement. Fees so collected shall be deposited in the General Fund of the
State. The fees required under this section shall be paid electronically."
SECTION 14. G.S. 120C‑206(a) reads as rewritten:
"§ 120C‑206. Lobbyist principal's authorization.
(a) A written authorization
signed by the lobbyist principal authorizing the lobbyist to represent the
principal shall be filed with the Secretary of State within 20 business days
after the lobbyist's registration.registration statement is filed.
If the written authorization is filed more than 20 business days after the
lobbyist's registration statement is filed and before January 1 of the
following year, the lobbyist registration is effective from the date of filing
of the lobbyist registration statement is filed and all reports due
under Article 4 of this Chapter shall be filed."
SECTION 15. G.S. 120C‑401 reads as rewritten:
"§ 120C‑401. Reporting generally.
…
(b1) For purposes of
subdivision (b)(5) of this section, when more than 15 designated individuals
benefit from or request a reportable expenditure, no names of individuals need
be reported provided that the report identifies the approximate number of
designated individuals benefiting or requesting and the basis for their
selection, including the name of the board, legislative body, committee,
caucus, or other group whose membership list is a matter of public
record in accordance with G.S. 132‑1G.S. 132‑1, a
description of the group that clearly distinguishes the designated individuals,
or including a description of the group that clearly distinguishes its purpose
or composition from the general membership of the General Assembly. The
approximate number of immediate family members of designated individuals who benefited
from the reportable expenditure shall be listed separately.
(b2) For purposes of subdivision (b)(5) of this section,
when the reportable expenditure is a gift given with the intent that a
designated individual be the an ultimate recipient and the
lobbyist or lobbyist principal does not know the name or names of the
designated individuals, the lobbyist or lobbyist principal shall report a
description of the designated individuals and those designated individuals'
immediate family members connected with the reportable expenditure that clearly
distinguishes its purpose or composition, and an approximate number, if known.
.…"
SECTION 16. G.S. 120C‑601(a) reads as rewritten:
"§ 120C‑601. Powers and duties of the Commission.
(a) The Commission may investigate complaints of violations of this Chapter and shall refer complaints related solely to Articles 2, 4, or 8 of this Chapter to the Secretary of State. The Commission or the Secretary of State may utilize the services of a hired investigator when conducting investigations."
SECTION 17. G.S. 120C‑700 reads as rewritten:
"§ 120C‑700. Persons exempted from this Chapter.
Except as otherwise provided in Article 8, the provisions of this Chapter shall not be construed to apply to any of the following:
…
(2) A personAn individual appearing
before a committee, commission, board, council, or other collective body whose
membership includes one or more designated individuals at the invitation or
request of the committee or a member thereof and who does not act in any
further activities as a lobbyist with respect to the legislative or executive
action for which that person appeared.
…
(7) A personAn
individual responding to inquiries from a designated individual and who
does not act in any further activities as a lobbyist in connection with that
inquiry.
...."
SECTION 18. G.S. 120C‑800 reads as rewritten:
"§ 120C‑800. Reportable expenditures made by persons exempted or not covered by this Chapter.
…
(d) If the person granting
the scholarship in subsection (c) of this section is outside North Carolina,
the designated individual accepting the scholarship shall be responsible for
filing the report or reporting the information in the designated individual's
statement of economic interest in accordance with G.S. 138A‑24(a)(2).G.S. 138A‑24(a)(8a).
…
(g) For purposes of this
section, the term "scholarship" shall mean a grant‑in‑aid
to attend a conference, meeting, or other similar event.event,
including all event‑related expenses, such as food, beverages,
registration, travel, and lodging. For purposes of this section only, the
term "person" shall include all persons as defined in G.S. 138A‑3(27)
and all governmental units as defined in G.S. 138A‑3(15d)."
SECTION 19.(a) G.S. 138A‑12 reads as rewritten:
"§ 138A‑12.
Inquiries Inquiries, investigations, and hearings by the
Commission.
…
(b) Institution of Proceedings. – On its own motion, in response to a timely, signed and sworn complaint of any individual against a covered person or legislative employee filed with the Commission, or upon the written request of any public servant or those responsible for the hiring, appointing, or supervising of a public servant, the Commission shall conduct an inquiry into any of the following:
(1) The application or alleged violation of this Chapter.
(2) For legislators, the application or alleged violations of Part 1 of Article 14 of Chapter 120 of the General Statutes.
(3) An alleged violation of the criminal law by a covered person in the performance of that individual's official duties.
(4) An alleged violation of G.S. 126‑14.
Upon receipt of a referral under G.S. 147‑64.6B or a report under G.S. 147‑64.6(c)(19), the Commission may conduct an inquiry under this section on its own motion. Allegations of violations of the Code of Judicial Conduct shall be referred to the Judicial Standards Commission without investigation.
(b1) Complaints on Its Own
Motion.Commission Initiated Inquiry. – An investigation inquiry
initiated by the Commission on its own motion oris not subject to
the requirements of subdivision (c)(1) of this section. An inquiry initiated
upon written request of any public servant or those responsible for the hiring,
appointing, or supervising of a public servant instituted under subsection (b)
of this section shall be treated as a complaint for purposes of this section
and need not be sworn or verified.
(c) Complaint. –
(1) A sworn complaint filed under this Chapter shall state the name, address, and telephone number of the individual filing the complaint, the name and job title or appointive position of the covered person or legislative employee against whom the complaint is filed, and a concise statement of the nature of the complaint and specific facts indicating that a violation of this Chapter or Chapter 120 of the General Statutes or G.S. 126‑14 or the criminal law in the performance of that individual's official duties has occurred, the date the alleged violation occurred, and either (i) that the contents of the complaint are within the knowledge of the individual verifying the complaint, or (ii) the basis upon which the individual verifying the complaint believes the allegations to be true.
(2) Except as provided in subsection (d) of this section, a complaint filed under this Chapter must be filed within two years of the date the complainant knew or should have known of the conduct upon which the complaint is based.
(3) The Commission may decline to accept, refer,refer
or conduct an inquiry into any complaint that does not meet all of the
requirements set forth in subdivision (1) of this subsection, or the Commission
may, in its sole discretion, request additional information to be provided by
the complainant within a specified period of time of no less than five business
days.
(4) In addition to subdivision (3) of this subsection,
the Commission may decline to accept, refer,refer or conduct an
inquiry into a complaint if it determines that any of the following apply:
a. The complaint is frivolous or brought in bad faith.
b. The covered person or legislative employee and conduct complained of have already been the subject of a prior complaint.
c. The conduct complained of is primarily a matter more appropriately and adequately addressed and handled by other federal, State, or local agencies or authorities, including law enforcement authorities. If other agencies or authorities are conducting an investigation of the same actions or conduct involved in a complaint filed under this section, the Commission may stay its complaint inquiry pending final resolution of the other investigation.
(5) The Commission shall send a copy of the complaint
to the covered person or legislative employee who is the subject of the
complaint and the employing entity, within 10 business days of the
filing.accepting the complaint. For purposes of this section, a
complaint is deemed accepted if it is timely, signed, sworn if required, and
against a covered person.
(d) Conduct of Inquiry of
ComplaintsInquiries by the Commission. – The Commission shall
conduct an inquiry into all complaints properly before the Commission in a
timely manner. The Commission shall initiate an inquiry into a complaint within
10 business days of the filingacceptance of the complaint. The
Commission is authorized to initiate inquiries upon request of any member of
the Commission if there is reason to believe that a covered person or
legislative employee has or may have violated this Chapter. Commission‑initiated
complaint inquiries under this section shall be initiated within two
years of the date the Commission knew of the conduct upon which the complaint
inquiry is based, except when the conduct is material to the
continuing conduct of the duties in office. In determining whether there is
reason to believe that a violation has or may have occurred, a member of the
Commission may take general notice of available information even if not
formally provided to the Commission in the form of a complaint. The Commission
may utilize the services of a hired investigator when conducting inquiries.
(e) Covered Person and Legislative Employees Cooperation With Inquiry. – Covered persons and legislative employees shall promptly and fully cooperate with the Commission in any Commission‑related inquiry. Failure to cooperate fully with the Commission in any inquiry shall be grounds for sanctions as set forth in G.S. 138A‑45.
(f) Dismissal of Complaint
After Preliminary Inquiry. – The Commission shall conclude the preliminary
inquiry within 20 30 business days.days of
acceptance of the complaint. The Commission shall dismiss the complaint, if
at the end of its preliminary inquiry the Commission determines that any
of the following apply:
(1) The individual who is the subject of the complaint is not a covered person or legislative employee subject to the Commission's jurisdiction and authority under this Chapter.
(2) The complaint does not allege facts sufficient to constitute a violation within the jurisdiction of the Commission under subsection (b) of this section.
(3) The complaint is determined to be frivolous or brought in bad faith.
(g) Commission Inquiries.Initiation
of Probable Cause Investigations. – If at the end of its preliminary inquiry,
the Commission determines to proceed with further inquiryan
investigation into the conduct of a covered person or legislative employee,
the Commission shall provide written notice to the individual who filed the
complaint and the covered person or legislative employee as toemployee,
the employing entity, and appointing authority of the fact of the inquiryinvestigation
and the charges allegations against the covered person or
legislative employee. The covered person or legislative employee shall be given
an opportunity to file a written response with the Commission.
(h) Action on Inquiries.Probable
Cause Investigations. – The Commission shall conduct inquiries investigations
into complaintsa complaint to the extent necessary to either
dismiss the complaint for lack of probable cause of a violation under this
section, or:or upon a finding of probable cause:
(1) For public servants, decide to proceed with
a hearing under subsection (i) of this section.
(2) For legislators, except the Lieutenant Governor,
refer the complaint matter to the Committee.
(3) For judicial officers, refer the complaint matter
to the Judicial Standards Commission for complaints against justices and
judges, or to the senior resident superior court judge of the district
or county for complaints against district attorneys, or to the chief
district court judge for the district or county for complaints againstattorneys
or clerks of court.
(4) For legislative employees, refer the complaint matter
to the employing entity.
(h1) Settlement of Inquiries Against Public Servants. – The public servant who is the subject of the inquiry and the staff of the Commission may meet by mutual consent at any time before the hearing to discuss the possibility of settlement or the stipulation of facts, issues of law, or other pertinent matters. Any proposed settlement is subject to the approval of the Commission. Upon the Commission's approval of a settlement, the matter shall be closed, subject to reopening by the Commission upon any breach of the settlement agreement. The Commission shall provide written notice of the fact of the settlement to the individual who filed the complaint, the public servant who was the subject of the inquiry, and the public servant's employing entity and appointing authority.
(i) Hearing. –
(1) The Commission shall give full and fair consideration to all accepted complaints received against a public servant. If the Commission determines that the complaint cannot be resolved without a hearing, or if the public servant requests a hearing, a hearing shall be held.
(2) The Commission shall send a notice of the hearing to the complainant, and the public servant. The notice shall contain the date, time and place for a hearing on the matter, which shall begin no less than 30 days and no more than 90 days after the date of the notice.
(3) TheAt least 30 days prior to the date of
the hearing, the Commission shall make available to the public servant or
that public servant's private legal counsel all documents or other evidence
which are intended to be presented at the hearing to the Commission or which a
reasonable person would believe might exculpate the accused public servant
at least 30 days prior to the date of the hearing held in connection with the
investigation of a complaint. servant. Any documents or other
evidence discovered within less than 30 days of the hearing shall be furnished
as soon as possible after discovery but prior to the hearing.
(4) At any hearing held by the Commission:
a. Oral evidence shall be taken only on oath or affirmation.
b. The hearing shall be open to the public, except for matters involving minors, personnel records, or matters that could otherwise be considered in closed session under G.S. 143‑318.11. In any event, the deliberations by the Commission on a complaint may be held in closed session.
c. The public servant being investigated shall have the right to present evidence, call and examine witnesses, cross‑examine witnesses, introduce exhibits, and be represented by counsel.
(j) Settlement of Inquiries. – The public servant
who is the subject of the complaint and the staff of the Commission may meet by
mutual consent before the hearing to discuss the possibility of settlement of
the inquiry or the stipulation of any issues, facts, or matters of law. Any
proposed settlement of the inquiry is subject to the approval of the
Commission.
(k) Disposition of
Inquiries.Post‑Hearing Dispositions. – After the hearing,
the Commission shall dispose of the matter in one or more of the following
ways:
(1) If the Commission finds substantial evidence of an
alleged violation of a criminal statute, the Commission shall refer the matter
to the Attorney GeneralDirector of the State Bureau of Investigation
for investigation and referral to the district attorney for possible
prosecution. The Director of the State Bureau of Investigation shall make
appropriate investigation into the matter and forward a copy of the
investigation to the District Attorney for possible prosecution.
(2) If the Commission finds that the alleged violation is not established by clear and convincing evidence, the Commission shall dismiss the complaint.
(3) If the Commission finds that the alleged violation of this Chapter is established by clear and convincing evidence, the Commission shall do one or more of the following:
a. Issue a private admonishment to the public servant and notify the employing entity, if applicable. Such notification shall be treated as part of the personnel record of the public servant.
b. Refer the matter for appropriate action to the Governor and the employing entity that appointed or employed the public servant or of which the public servant is a member.
c. Refer the matter for appropriate action to the Chief Justice for judicial employees.
d. Refer the matter to the Principal Clerks of the House of Representatives and Senate of the General Assembly for constitutional officers of the State.
e. Refer the matter for appropriate action to the principal clerk of the house of the General Assembly that elected the public servant for members of the Board of Governors and the State Board of Community Colleges.
(l) Notice of Dismissal. –
Upon the dismissal of a complaint under this section, the Commission shall
provide written notice of the dismissal to the individual who filed the
complaint and the covered person or legislative employee against whom the
complaint was filed. The For dismissals under subsection (h) or subdivision
(k)(2) of this section, the Commission shall forward copies of complaints
and notices of dismissal of complaints against public servants to the
employing entity and appointing authority, against legislators to the
Committee, against legislative employees to the employing entity for
legislative employees, and against judicial officers to the Judicial Standards
Commission for complaints against justices and judges, and the senior resident
superior court judge of the district or county for complaints against district attorneys,
or the chief district court judge of the district or county for complaints
againstattorneys or clerks of court. The Commission shall also
forward a copy of the notice of dismissal to the employing entity of the
covered person against whom a complaint was filed if the employing entity
received a copy of the complaint under subdivision (5) of subsection (c) of
this section. Except as provided in subsection (n) of this section, the
complaint and notice of dismissal are confidential and not public records.
(m) Reports and Records. –
The Commission shall render the results of its inquiry investigation in
writing. When a matter is referred under subdivision (h)(2) and (3), or subsection
(k)(h) or subdivision (k)(2) of this section, the Commission's
report shall consist of the complaint, response, and detailed results of its inquiryinvestigation
in support of the Commission's finding of a violation under this Chapter.
(n) Confidentiality. – Complaints
and responses filed with the Commission and reportsCommission,
settlement agreements, referrals, recommendations, reports, and other
investigative documents and records of the Commission connected to an inquiry
or investigation under this section, including information provided
pursuant to G.S. 147‑64.6B or G.S. 147‑64.6(c)(19), shall
be confidential and not matters of public record, except as otherwise provided
in this section or when the covered person or legislative employee under
inquiry requests in writing that the complaint, response, and findings be made
public. Once a hearing under this section commences, the complaint, response,
and all other documents offered at the hearing in conjunction with the
complaint, not otherwise privileged or confidential under law, shall be public
records. If no hearing is held at such time as the Commission reports to the
employing entity a recommendation of sanctions, the complaint and response
shall be made public.
(n1) Staff to the Commission may share with staff to the Committee information connected to an inquiry into the conduct of a legislator under this section. The Commission shall provide to the Committee copies of all reports, investigative documents, information, and other documents used by the Commission when it refers a complaint to the Committee under subdivision (2) of subsection (h) of this section. Upon written request by staff to the Committee, the Commission shall provide copies of all reports, investigative documents, information, and other documents used by the Commission when it dismisses a complaint against a legislator under subsection (l) of this section. The information and documents provided to the Committee and staff to the Committee and the written request provided to the Commission are confidential and are not public records as defined in G.S. 132‑1.
(n2) When referring a matter to another State or local agency or authority, staff to the Commission may share related information and documents with the agency or authority receiving the referral. The information and documents provided shall remain confidential, are not public records, and may only be released according to the terms of this Chapter.
(o) Recommendations of Sanctions.Sanctions
After Hearing. – After referring a matter under subsection (k) of this
section, if requested by the entity to which the matter was referred,
the Commission may recommend sanctions or issue rulings as it deems necessary
or appropriate to protect the public interest and ensure compliance with this
Chapter. In recommending appropriate sanctions, the Commission may consider the
following factors:
(1) The public servant's prior experience in an agency or on a board and prior opportunities to learn the ethical standards for a public servant as set forth in Article 4 of this Chapter, including those dealing with conflicts of interest.
(2) The number of ethics violations.
(3) The severity of the ethics violations.
(4) Whether the ethics violations involve the public servant's financial interest.
(5) Whether the ethics violations were inadvertent or intentional.
(6) Whether the public servant knew or should have known that the improper conduct was a violation of this Chapter.
(7) Whether the public servant has previously been advised or warned by the Commission.
(8) Whether the conduct or situation giving rise to the ethics violation was pointed out to the public servant in the Commission's Statement of Economic Interest evaluation letter issued under G.S. 138A‑24(e).
(9) The public servant's motivation or reason for the improper conduct or action, including whether the action was for personal financial gain versus protection of the public interest.
In making recommendations under this subsection, if the
Commission determines, after proper review and investigation, determines
that sanctions are appropriate, the Commission may recommend any action it
deems necessary to properly address and rectify any violation of this Chapter
by a public servant, including removal of the public servant from the public
servant's State position. Nothing in this subsection is intended, and shall not
be construed, to give the Commission any independent civil, criminal, or
administrative investigative or enforcement authority over covered persons, or
other State employees or appointees.
(p) Authority of Employing Entity. – Any action or failure to act by the Commission under this Chapter, except G.S. 138A‑13, shall not limit any authority of any of the applicable employing entities to discipline the covered person or legislative employee.
(q) Continuing Jurisdiction.
– The For a period of one year following the date an individual who
was formerly a public servant or legislative employee ceases to be a public
servant or legislative employee, the Commission shall have continuing
jurisdiction to investigate possible refer evidence of alleged criminal
violations of this Chapter for a period of one year following the date an
individual, who was formerly a public servant or legislative employee, ceases
to be a public servant or legislative employee to the Director of the
State Bureau of Investigation for any investigation that commenced prior to
the date the public servant or legislative employee ceases ceased to
be a public servant or legislative employee. The Director of the State
Bureau of Investigation shall make appropriate investigation into the matter
and forward a copy of the investigation to the Wake County District Attorney
for possible prosecution.
…."
SECTION 19.(b) G.S. 120‑103.1 reads as rewritten:
"§ 120‑103.1. Investigations by the Committee.
(a) Institution of
Proceedings. – On its own motion, upon receipt by the Committee of a signed and
sworn allegation of a legislator's unethical conduct by a legislator,conduct,
or upon receipt of a referral of a complaint from the State Ethics Commission
under Chapter 138A of the General Statutes, the Committee shall conduct an
investigation into any of the following:
(1) The application or alleged violation of Chapter 138A of the General Statutes and of this Article.
(2) Repealed by Session Laws 2007‑348, s. 2, effective August 9, 2007.
(3) The alleged violation of the criminal law by a legislator while acting in the legislator's official capacity as a participant in the lawmaking process.
…
(h3) Settlement of Inquiries. – The legislator who is the subject of the investigation and members of the Committee may meet by mutual consent at any time before the hearing to discuss the possibility of settlement or the stipulation of facts, issues of law, or other pertinent matters. Any proposed settlement is subject to the approval of the Committee. Upon the Committee's approval of a settlement, the matter shall be closed, subject to reopening by the Committee upon any breach of the settlement agreement. The Committee shall provide written notice of the fact of the settlement to the individual who filed the complaint and the legislator who was the subject of the investigation.
…
(j) Disposition of Investigations After Hearing. – Except as permitted under subsections (b) and (g) of this section, after the hearing, the Committee shall dispose of the matter before the Committee under this section, in any of the following ways:
(1) If the Committee finds that the alleged violation is not established by clear and convincing evidence, the Committee shall dismiss the complaint.
(2) If the Committee finds that the alleged violation is established by clear and convincing evidence, the Committee shall do one or more of the following:
a. Issue a public or private admonishment to the legislator.
b. Refer the matter to the Attorney
General Director of the State Bureau of Investigation for
investigation and referral to the district attorney for possible prosecution or
the appropriate house for appropriate action, or both, if the Committee finds
substantial evidence of a violation of a criminal statute. Upon referral to
the Director of the State Bureau of Investigation, the Director shall make
appropriate investigation into the matter and forward a copy of the
investigation to the District Attorney for possible prosecution.
c. Refer the matter to the appropriate house for appropriate action, which may include censure and expulsion.
(3) If the Committee issues an admonishment as provided in subdivision (2)a. of this subsection, the legislator affected may, upon written request to the Committee, have the matter referred as provided under subdivision (2)c. of this subsection.
…
(l) Confidentiality. – The complaint, response, records, settlement agreements, and findings of the Committee connected to an inquiry under this section shall be confidential and not matters of public record, except as otherwise provided in this section or when the legislator under inquiry requests in writing that the complaint, response, and findings be made public. Once a hearing under subsection (i) of this section commences the complaint, response, Committee's report to the house, and all other documents offered at the hearing in conjunction with the complaint, that are not otherwise privileged or confidential under law, shall be public records. If no hearing is held, at such time as the Committee recommends sanctions to the house of which the legislator is a member, the complaint, response, and Committee's report to the house shall be made public.
(l1) Sharing of Information for Law Enforcement Purposes. – When referring a matter to another State or local agency or authority, the Committee may share related information and documents with the agency or authority receiving the referral. The information and documents provided shall remain confidential, are not public records, and may only be released according to the terms of this Chapter.
…."
SECTION 20. Except as otherwise provided, this act becomes effective October 1, 2016.
