Senate Bill No. 466–Committee on Government Affairs

 

March 22, 2001

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Makes various changes regarding ethics in government. (BDR 23‑716)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: No.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to ethics in government; revising certain provisions regarding prohibited pecuniary interests and commitments of public officers and employees; revising provisions regarding the participation of members of a panel of the commission on ethics in certain matters; specifying a period for the retention of certain documents filed with the commission; providing a maximum civil penalty for failure to file financial disclosure statements in a timely manner; repealing the prospective expiration of the position of commission counsel; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1    Section 1. NRS 281.230 is hereby amended to read as follows:

1-2    281.230  1.  Except as otherwise provided in this section and NRS

1-3  218.605, the following persons shall not, in any manner, directly or

1-4  indirectly, receive any commission, personal profit or compensation of any

1-5  kind resulting from any contract or other significant transaction in which

1-6  the employing state, county, municipality, township, district or quasi-

1-7  municipal corporation is in any way directly interested or affected:

1-8    (a) State, county, municipal, district and township officers of the State

1-9  of Nevada;

1-10    (b) Deputies and employees of state, county, municipal, district and

1-11  township officers; and

1-12    (c) Officers and employees of quasi-municipal corporations.

1-13    2.  A member of any board, commission or similar body who is

1-14  engaged in the profession, occupation or business regulated by the board,

1-15  commission or body may, in the ordinary course of his business, bid on or

1-16  enter into a contract with any governmental agency, except the board or

1-17  commission of which he is a member, if he has not taken part in

1-18  developing the contract plans or specifications and he will not be

1-19  personally involved in opening, considering or accepting offers.

2-1    3.  A full- or part-time faculty member in the University and

2-2  Community College System of Nevada may bid on or enter into a contract

2-3  with a governmental agency if he has not taken part in developing the

2-4  contract plans or specifications and he will not be personally involved in

2-5  opening, considering or accepting offers.

2-6    4.  A public officer or employee, other than an officer or employee

2-7  described in subsection 2 or 3, may bid on or enter into a contract with a

2-8  governmental agency if the contracting process is controlled by rules of

2-9  open competitive bidding, the sources of supply are limited, he has not

2-10  taken part in developing the contract plans or specifications and he will not

2-11  be personally involved in opening, considering or accepting offers.

2-12    5.  A person who violates any of the provisions of this section shall be

2-13  punished as provided in NRS 197.230 and:

2-14    (a) Where the commission, personal profit or compensation is $250 or

2-15  more, for a category D felony as provided in NRS 193.130.

2-16    (b) Where the commission, personal profit or compensation is less than

2-17  $250, for a misdemeanor.

2-18    6.  A person who violates the provisions of this section shall pay any

2-19  commission, personal profit or compensation resulting from the contract or

2-20  transaction to the employing state, county, municipality, township, district

2-21  or quasi-municipal corporation as restitution.

2-22    Sec. 2.  NRS 281.236 is hereby amended to read as follows:

2-23    281.236  1.  A public utility or parent organization or subsidiary of a

2-24  public utility shall not employ a former member of the public utilities

2-25  commission of Nevada for 1 year after the termination of his service on the

2-26  commission.

2-27    2.  A person who holds a license issued pursuant to chapter 463 or 464

2-28  of NRS or who is required to register with the Nevada gaming commission

2-29  pursuant to chapter 463 of NRS shall not employ a former member of the

2-30  state gaming control board or the Nevada gaming commission for 1 year

2-31  after the termination of the member’s service on the board or commission.

2-32    3.  In addition to the prohibitions set forth in subsections 1 and 2, a

2-33  business or industry whose activities are governed by regulations adopted

2-34  by a department, division or other agency of the executive branch of

2-35  government shall not, except as otherwise provided in subsection 4,

2-36  employ a former public officer or employee of the agency, except a clerical

2-37  employee, for 1 year after the termination of his service or period of

2-38  employment if:

2-39    (a) His principal duties included the formulation of policy contained in

2-40  the regulations governing the business or industry;

2-41    (b) During the immediately preceding year he directly performed

2-42  activities, or controlled or influenced an audit, decision, investigation or

2-43  other action, which significantly affected the business or industry which

2-44  might, but for this section, employ him; or

2-45    (c) As a result of his governmental service or employment, he possesses

2-46  knowledge of the trade secrets of a direct business competitor.

2-47    4.  A public officer or employee may request the commission on ethics

2-48  to apply the relevant facts in his case to the provisions of subsection 3 and

2-49  determine whether relief from the strict application of the provisions is

3-1  proper. If the commission on ethics determines that relief from the strict

3-2  application of the provisions of subsection 3 is not contrary to:

3-3    (a) The best interests of the public;

3-4    (b) The continued integrity of state government; and

3-5    (c) The code of ethical standards prescribed in NRS 281.481,

3-6  it may issue an [order] opinion to that effect and grant such relief. The

3-7  [decision] opinion of the commission on ethics in such a case is subject to

3-8  judicial review.

3-9    5.  As used in this section, “regulation” has the meaning ascribed to it

3-10  in NRS 233B.038.

3-11    Sec. 3.  NRS 281.4365 is hereby amended to read as follows:

3-12    281.4365  1.  “Public officer” means a person elected or appointed to

3-13  a position which is established by the constitution of the State of Nevada, a

3-14  statute of this state or an ordinance of any of its counties or incorporated

3-15  cities and which involves the exercise of a public power, trust or duty. As

3-16  used in this section, “the exercise of a public power, trust or duty”

3-17  [includes:] means:

3-18    (a) Actions taken in an official capacity which involve a substantial and

3-19  material exercise of administrative discretion in the formulation of public

3-20  policy;

3-21    (b) The expenditure of public money; and

3-22    (c) The enforcement of laws and rules of the state, a county or a city.

3-23    2.  “Public officer” does not include:

3-24    (a) Any justice, judge or other officer of the court system;

3-25    (b) A commissioner of deeds;

3-26    (c) Any member of a board, commission or other body whose function

3-27  is advisory;

3-28    (d) Any member of a board of trustees for a general improvement

3-29  district or special district whose official duties do not include the

3-30  formulation of a budget for the district or the authorization of the

3-31  expenditure of the district’s money; or

3-32    (e) A county health officer appointed pursuant to NRS 439.290.

3-33    Sec. 4.  NRS 281.462 is hereby amended to read as follows:

3-34    281.462  1.  The chairman shall appoint one or more panels of two

3-35  members of the commission on a rotating basis to review the

3-36  determinations of just and sufficient cause made by the executive director

3-37  pursuant to NRS 281.511 and make a final determination regarding

3-38  whether just and sufficient cause exists for the commission to render an

3-39  opinion.

3-40    2.  The chairman and vice chairman of the commission may not serve

3-41  together on a panel.

3-42    3.  The members of a panel may not be members of the same political

3-43  party.

3-44    4.  If a panel finds just and sufficient cause for the commission to

3-45  render an opinion in a matter, the members of the panel shall not vote upon

3-46  but may otherwise participate in [any] further proceedings of the

3-47  commission relating to that matter.

 

 

4-1    Sec. 5.  NRS 281.481 is hereby amended to read as follows:

4-2    281.481  A code of ethical standards is hereby established to govern the

4-3  conduct of public officers and employees:

4-4    1.  A public officer or employee shall not seek or accept any gift,

4-5  service, favor, employment, engagement, emolument or economic

4-6  opportunity which would tend improperly to influence a reasonable person

4-7  in his position to depart from the faithful and impartial discharge of his

4-8  public duties.

4-9    2.  A public officer or employee shall not use his position in

4-10  government to secure or grant unwarranted privileges, preferences,

4-11  exemptions or advantages for himself[, any member of his household, any

4-12  business entity in which he has a significant pecuniary interest, or any

4-13  other person.] or any person or governmental entity. As used in this

4-14  subsection, “unwarranted” means without justification or adequate reason.

4-15    3.  A public officer or employee shall not participate as an agent of

4-16  government in the negotiation or execution of a contract between the

4-17  government and any private business in which he has a significant

4-18  pecuniary interest.

4-19    4.  A public officer or employee shall not accept any salary, retainer,

4-20  augmentation, expense allowance or other compensation from any private

4-21  source for the performance of his duties as a public officer or employee.

4-22    5.  If a public officer or employee acquires, through his public duties or

4-23  relationships, any information which by law or practice is not at the time

4-24  available to people generally, he shall not use the information to further the

4-25  pecuniary interests of himself or any other person or business entity.

4-26    6.  A public officer or employee shall not suppress any governmental

4-27  report or other document because it might tend to affect unfavorably his

4-28  pecuniary interests.

4-29    7.  A public officer or employee, other than a member of the

4-30  legislature, shall not use governmental time, property, equipment or other

4-31  facility to benefit his personal or financial interest. This subsection does

4-32  not prohibit:

4-33    (a) A limited use of governmental property, equipment or other facility

4-34  for personal purposes if:

4-35      (1) The public officer who is responsible for and has authority to

4-36  authorize the use of such property, equipment or other facility has

4-37  established a policy allowing the use or the use is necessary as a result of

4-38  emergency circumstances;

4-39      (2) The use does not interfere with the performance of his public

4-40  duties;

4-41      (3) The cost or value related to the use is nominal; and

4-42      (4) The use does not create the appearance of impropriety;

4-43    (b) The use of mailing lists, computer data or other information lawfully

4-44  obtained from a governmental agency which is available to members of the

4-45  general public for nongovernmental purposes; or

4-46    (c) The use of telephones or other means of communication if there is

4-47  not a special charge for that use.

4-48  If a governmental agency incurs a cost as a result of a use that is authorized

4-49  pursuant to this subsection or would ordinarily charge a member of the

5-1  general public for the use, the public officer or employee shall promptly

5-2  reimburse the cost or pay the charge to the governmental agency.

5-3    8.  A member of the legislature shall not:

5-4    (a) Use governmental time, property, equipment or other facility for a

5-5  nongovernmental purpose or for the private benefit of himself or any other

5-6  person. This paragraph does not prohibit:

5-7       (1) A limited use of state property and resources for personal

5-8  purposes if:

5-9         (I) The use does not interfere with the performance of his public

5-10  duties;

5-11        (II) The cost or value related to the use is nominal; and

5-12        (III) The use does not create the appearance of impropriety;

5-13      (2) The use of mailing lists, computer data or other information

5-14  lawfully obtained from a governmental agency which is available to

5-15  members of the general public for nongovernmental purposes; or

5-16      (3) The use of telephones or other means of communication if there is

5-17  not a special charge for that use.

5-18    (b) Require or authorize a legislative employee, while on duty, to

5-19  perform personal services or assist in a private activity, except:

5-20      (1) In unusual and infrequent situations where the employee’s service

5-21  is reasonably necessary to permit the legislator or legislative employee to

5-22  perform his official duties; or

5-23      (2) Where such service has otherwise been established as legislative

5-24  policy.

5-25    9.  A public officer or employee shall not attempt to benefit his

5-26  personal or financial interest through the influence of a subordinate.

5-27    10.  A public officer or employee shall not seek other employment or

5-28  contracts through the use of his official position.

5-29    Sec. 6.  NRS 281.491 is hereby amended to read as follows:

5-30    281.491  In addition to the requirements of the code of ethical

5-31  standards:

5-32    1.  A member of the executive branch or public employee of the

5-33  executive branch shall not accept compensation from any private person to

5-34  represent or counsel him on any issue pending before the agency in which

5-35  that officer or employee serves, if the agency makes decisions. Any such

5-36  officer or employee who leaves the service of the agency shall not, for 1

5-37  year after leaving the service of the agency, represent or counsel for

5-38  compensation a private person upon any issue which was under

5-39  consideration by the agency during his service. As used in this subsection,

5-40  “issue” includes a case, proceeding, application, contract or determination,

5-41  but does not include the proposal or consideration of legislative measures

5-42  or administrative regulations.

5-43    2.  A member of the legislative branch, or a member of the executive

5-44  branch or public employee whose public service requires less than half of

5-45  his time, may represent or counsel a private person before an agency in

5-46  which he does not serve. Any other member of the executive branch or

5-47  public employee shall not represent a client for compensation before any

5-48  state agency of the executive or legislative branch of government.

6-1    3.  Not later than January 10 of each year, any legislator or other public

6-2  officer who has, within the preceding year, represented or counseled a

6-3  private person for compensation before a state agency of the executive

6-4  branch shall disclose for each such representation or counseling during the

6-5  previous calendar year:

6-6    (a) The name of the client;

6-7    (b) The nature of the representation; and

6-8    (c) The name of the state agency.

6-9  The disclosure must be made in writing and filed with the commission[.] ,

6-10  on a form prescribed by the commission. The commission shall retain a

6-11  disclosure filed pursuant to this subsection for 6 years after the date on

6-12  which the disclosure was filed.

6-13    Sec. 7.  NRS 281.501 is hereby amended to read as follows:

6-14    281.501  1.  Except as otherwise provided in subsection 2 or 3, a

6-15  public officer may vote upon a matter if the benefit or detriment accruing

6-16  to him as a result of the decision either individually or in a representative

6-17  capacity as a member of a general business, profession, occupation or

6-18  group is not greater than that accruing to any other member of the general

6-19  business, profession, occupation or group.

6-20    2.  In addition to the requirements of the code of ethical standards, a

6-21  public officer shall not vote upon or advocate the passage or failure of, but

6-22  may otherwise participate in the consideration of a matter with respect to

6-23  which the independence of judgment of a reasonable person in his situation

6-24  would be materially affected by:

6-25    (a) His acceptance of a gift or loan;

6-26    (b) His pecuniary interest; or

6-27    (c) His commitment in a private capacity to the interests of others.

6-28  It must be presumed that the independence of judgment of a reasonable

6-29  person would not be materially affected by his pecuniary interest or his

6-30  commitment in a private capacity to the interests of others where the

6-31  resulting benefit or detriment accruing to him or to the other persons whose

6-32  interests to which the member is committed in a private capacity is not

6-33  greater than that accruing to any other member of the general business,

6-34  profession, occupation or group. The presumption set forth in this

6-35  subsection does not affect the applicability of the requirements set forth in

6-36  subsection 3 relating to the disclosure of the pecuniary interest or

6-37  commitment in a private capacity to the interests of others.

6-38    3.  A public officer or employee shall not approve, disapprove, vote,

6-39  abstain from voting or otherwise act upon any matter:

6-40    (a) Regarding which he has accepted a gift or loan;

6-41    (b) Which would reasonably be affected by his commitment in a private

6-42  capacity to the interest of others; or

6-43    (c) In which he has a pecuniary interest,

6-44  without disclosing sufficient information concerning the gift, loan,

6-45  commitment or interest to inform the public of the potential effect of the

6-46  action or abstention upon the person who provided the gift or loan, upon

6-47  the person to whom he has a commitment, or upon his interest. Except as

6-48  otherwise provided in subsection 6, such a disclosure must be made at the

6-49  time the matter is considered. If the officer or employee is a member of a

7-1  body which makes decisions, he shall make the disclosure in public to the

7-2  chairman and other members of the body. If the officer or employee is not

7-3  a member of such a body and holds an appointive office, he shall make the

7-4  disclosure to the supervisory head of his organization or, if he holds an

7-5  elective office, to the general public in the area from which he is elected.

7-6  This subsection does not require a public officer to disclose any campaign

7-7  contributions that the public officer reported pursuant to NRS 294A.120 or

7-8  294A.125 in a timely manner.

7-9    4.  If a public officer declares to the body or committee in which the

7-10  vote is to be taken that he will abstain from voting because of the

7-11  requirements of this section, the necessary quorum to act upon and the

7-12  number of votes necessary to act upon the matter, as fixed by any statute,

7-13  ordinance or rule, is reduced as though the member abstaining were not a

7-14  member of the body or committee.

7-15    5.  [If] Except as otherwise provided in subsection 6, if a public officer

7-16  is voting on a matter which affects public employees, he shall make a full

7-17  public disclosure of any personal pecuniary interest which he may have in

7-18  the matter.

7-19    6.  After a member of the legislature makes a disclosure pursuant to

7-20  subsection 3, he may file with the director of the legislative counsel bureau

7-21  a written statement of his disclosure. The written statement must designate

7-22  the matter to which the disclosure applies. After a legislator files a written

7-23  statement pursuant to this subsection, he is not required to disclose orally

7-24  his interest when the matter is further considered by the legislature or any

7-25  committee thereof. A written statement of disclosure is a public record and

7-26  must be made available for inspection by the public during the regular

7-27  office hours of the legislative counsel bureau.

7-28    7.  The provisions of this section do not, under any circumstances:

7-29    (a) Prohibit a member of the legislative branch from requesting or

7-30  introducing a legislative measure; or

7-31    (b) Require a member of the legislative branch to take any particular

7-32  action before or while requesting or introducing a legislative measure.

7-33    8.  As used in this section, “commitment in a private capacity to the

7-34  interests of others” means a commitment to a person:

7-35    (a) Who is a member of his household;

7-36    (b) Who is related to him by blood, adoption or marriage within the

7-37  third degree of consanguinity or affinity;

7-38    (c) Who employs him or a member of his household;

7-39    (d) With whom he has a substantial and continuing business or personal

7-40  relationship; or

7-41    (e) Any other commitment or relationship that is substantially similar to

7-42  a commitment or relationship described in this subsection.

7-43    Sec. 8.  NRS 281.525 is hereby amended to read as follows:

7-44    281.525  1.  It is unlawful for any person to make, use, publish or

7-45  disseminate any statement which is known or through the exercise of

7-46  reasonable care should be known to be false, deceptive or misleading in

7-47  order to induce the commission to render an opinion pursuant to

7-48  subsection 1 of NRS 281.511 or to take any action related to the rendering

7-49  of an opinion[.] pursuant to subsection 1 of NRS 281.511.

8-1    2.  Any person who knowingly violates the provisions of subsection 1

8-2  is guilty of a misdemeanor.

8-3    3.  The commission shall inform the attorney general or the district

8-4  attorney of any case involving a violation of subsection 1.

8-5    Sec. 9.  NRS 281.552 is hereby amended to read as follows:

8-6    281.552  1.  Every public officer shall acknowledge that he has

8-7  received, read and understands the statutory ethical standards. The

8-8  acknowledgment must be on a form prescribed by the commission and

8-9  must accompany the first statement of financial disclosure that the public

8-10  officer is required to file with the commission pursuant to NRS 281.561.

8-11    2.  The commission shall retain an acknowledgment filed pursuant to

8-12  this section for 6 years after the date on which the acknowledgment was

8-13  filed.

8-14    3.  Willful refusal to execute and file the acknowledgment required by

8-15  this section constitutes nonfeasance in office and is a ground for removal

8-16  pursuant to NRS 283.440.

8-17    Sec. 10.  NRS 281.561 is hereby amended to read as follows:

8-18    281.561  1.  Except as otherwise provided in subsection 2 or 3, if a

8-19  candidate for public or judicial office or a public or judicial officer is

8-20  entitled to receive compensation for serving in the office in question, he

8-21  shall file with the commission, and with the officer with whom declarations

8-22  of candidacy for the office in question are filed, a statement of financial

8-23  disclosure, as follows:

8-24    (a) A candidate for nomination, election or reelection shall file a

8-25  statement of financial disclosure no later than the 10th day after the last

8-26  day to qualify as a candidate for the office.

8-27    (b) A public or judicial officer appointed to fill the unexpired term of

8-28  [an elected] a public or judicial officer shall file a statement of financial

8-29  disclosure within 30 days after his appointment.

8-30    (c) Every public or judicial officer, whether appointed or elected, shall

8-31  file a statement of financial disclosure on or before March 31 of each year

8-32  of the term, including the year in which the term expires.

8-33    (d) A public or judicial officer who leaves office on a date other than

8-34  the expiration of his term or anniversary of his appointment or election,

8-35  shall file a statement of financial disclosure within 60 days after leaving

8-36  office.

8-37    2.  A statement filed pursuant to one of the paragraphs of subsection 1

8-38  may be used to satisfy the requirements of another paragraph of subsection

8-39  1 if the initial statement was filed not more than 3 months before the other

8-40  statement is required to be filed. The public or judicial officer shall notify

8-41  the commission in writing of his intention to use the previously filed

8-42  statement to fulfill the present requirement.

8-43    3.  If a person is serving in a public or judicial office for which he is

8-44  required to file a statement pursuant to subsection 1, he may use the

8-45  statement he files for that initial office to satisfy the requirements of

8-46  subsection 1 for every other public or judicial office in which he is also

8-47  serving. The person shall notify the commission in writing of his intention

8-48  to use the statement for the initial office to fulfill the requirements of

8-49  subsection 1 for every other office.

9-1    4.  A person may satisfy the requirements of subsection 1 by filing with

9-2  the commission a copy of a statement of financial disclosure that was filed

9-3  pursuant to the requirements of a specialized or local ethics committee if

9-4  the form of the statement has been approved by the commission.

9-5    Sec. 11.  NRS 281.581 is hereby amended to read as follows:

9-6    281.581  1.  A candidate or public or judicial officer who fails to file

9-7  his statement of financial disclosure in a timely manner pursuant to NRS

9-8  281.561 is subject to a civil penalty and payment of court costs and

9-9  attorney’s fees. [The] Except as otherwise provided in subsection 3, the

9-10  amount of the civil penalty is:

9-11    (a) If the statement is filed not more than 7 days late, $25 for each day

9-12  the statement is late.

9-13    (b) If the statement is filed more than 7 days late but not more than 15

9-14  days late, $175 for the first 7 days, plus $50 for each additional day the

9-15  statement is late.

9-16    (c) If the statement is filed more than 15 days late, $575 for the first 15

9-17  days, plus $100 for each additional day the statement is late.

9-18    2.  The commission may, for good cause shown, waive or reduce the

9-19  civil penalty.

9-20    3.  The civil penalty imposed for a violation of this section must not

9-21  exceed the annual compensation for the office for which the statement

9-22  was filed.

9-23    4.  The civil penalty must be recovered in a civil action brought in the

9-24  name of the State of Nevada by the commission in a court of competent

9-25  jurisdiction and deposited with the state treasurer for credit to the state

9-26  general fund.

9-27    [4.] 5.  If the commission waives a civil penalty pursuant to subsection

9-28  2, the commission shall:

9-29    (a) Create a record which sets forth that the civil penalty has been

9-30  waived and describes the circumstances that constitute the good cause

9-31  shown; and

9-32    (b) Ensure that the record created pursuant to paragraph (a) is available

9-33  for review by the general public.

9-34    Sec. 12.  Section 26 of chapter 535, Statutes of Nevada 1999, at page

9-35  2750, is hereby amended to read as follows:

9-36    Sec. 26. [1.] Section 19.5 of this act becomes effective at 12:01

9-37  a.m. on October 1, 1999.

9-38    [2.  Section 5.5 of this act expires by limitation on June 30, 2001.]

9-39    Sec. 13.  1.  This section and section 12 of this act become effective

9-40  upon passage and approval.

9-41    2. Sections 1 to 11, inclusive, of this act become effective on
October 1, 2001.

 

9-42  H