(REPRINTED WITH ADOPTED AMENDMENTS)

                                                                                    FIRST REPRINTS.B. 466

 

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.

 

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

Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to ethics in government; revising certain provisions regarding prohibited pecuniary interests and commitments of public officers and employees; 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; 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.

1-20    3.  A full- or part-time faculty member in the University and

1-21  Community College System of Nevada may bid on or enter into a contract


2-1  with a governmental agency if he has not taken part in developing the

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

2-3  opening, considering or accepting offers.

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

2-5  described in subsection 2 or 3, may bid on or enter into a contract with a

2-6  governmental agency if the contracting process is controlled by rules of

2-7  open competitive bidding, the sources of supply are limited, he has not

2-8  taken part in developing the contract plans or specifications and he will not

2-9  be personally involved in opening, considering or accepting offers.

2-10    5.  A person who violates any of the provisions of this section shall be

2-11  punished as provided in NRS 197.230 and:

2-12    (a) Where the commission, personal profit or compensation is $250 or

2-13  more, for a category D felony as provided in NRS 193.130.

2-14    (b) Where the commission, personal profit or compensation is less than

2-15  $250, for a misdemeanor.

2-16    6.  A person who violates the provisions of this section shall pay any

2-17  commission, personal profit or compensation resulting from the contract or

2-18  transaction to the employing state, county, municipality, township, district

2-19  or quasi-municipal corporation as restitution.

2-20    Sec. 2.  NRS 281.236 is hereby amended to read as follows:

2-21    281.236  1.  A public utility or parent organization or subsidiary of a

2-22  public utility shall not employ a former member of the public utilities

2-23  commission of Nevada for 1 year after the termination of his service on the

2-24  commission.

2-25    2.  A person who holds a license issued pursuant to chapter 463 or 464

2-26  of NRS or who is required to register with the Nevada gaming commission

2-27  pursuant to chapter 463 of NRS shall not employ a former member of the

2-28  state gaming control board or the Nevada gaming commission for 1 year

2-29  after the termination of the member’s service on the board or commission.

2-30    3.  In addition to the prohibitions set forth in subsections 1 and 2, a

2-31  business or industry whose activities are governed by regulations adopted

2-32  by a department, division or other agency of the executive branch of

2-33  government shall not, except as otherwise provided in subsection 4,

2-34  employ a former public officer or employee of the agency, except a clerical

2-35  employee, for 1 year after the termination of his service or period of

2-36  employment if:

2-37    (a) His principal duties included the formulation of policy contained in

2-38  the regulations governing the business or industry;

2-39    (b) During the immediately preceding year he directly performed

2-40  activities, or controlled or influenced an audit, decision, investigation or

2-41  other action, which significantly affected the business or industry which

2-42  might, but for this section, employ him; or

2-43    (c) As a result of his governmental service or employment, he possesses

2-44  knowledge of the trade secrets of a direct business competitor.

2-45    4.  A public officer or employee may request the commission on ethics

2-46  to apply the relevant facts in his case to the provisions of subsection 3 and

2-47  determine whether relief from the strict application of the provisions is

2-48  proper. If the commission on ethics determines that relief from the strict

2-49  application of the provisions of subsection 3 is not contrary to:


3-1    (a) The best interests of the public;

3-2    (b) The continued integrity of state government; and

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

3-4  it may issue an [order] opinion to that effect and grant such relief. The

3-5  [decision] opinion of the commission on ethics in such a case is subject to

3-6  judicial review.

3-7    5.  As used in this section, “regulation” has the meaning ascribed to it

3-8  in NRS 233B.038.

3-9    Sec. 3.  NRS 281.4365 is hereby amended to read as follows:

3-10    281.4365  1.  “Public officer” means a person elected or appointed to

3-11  a position which is established by the constitution of the State of Nevada, a

3-12  statute of this state or an ordinance of any of its counties or incorporated

3-13  cities and which involves the exercise of a public power, trust or duty. As

3-14  used in this section, “the exercise of a public power, trust or duty”

3-15  [includes:] means:

3-16    (a) Actions taken in an official capacity which involve a substantial and

3-17  material exercise of administrative discretion in the formulation of public

3-18  policy;

3-19    (b) The expenditure of public money; and

3-20    (c) The enforcement of laws and rules of the state, a county or a city.

3-21    2.  “Public officer” does not include:

3-22    (a) Any justice, judge or other officer of the court system;

3-23    (b) A commissioner of deeds;

3-24    (c) Any member of a board, commission or other body whose function

3-25  is advisory;

3-26    (d) Any member of a board of trustees for a general improvement

3-27  district or special district whose official duties do not include the

3-28  formulation of a budget for the district or the authorization of the

3-29  expenditure of the district’s money; or

3-30    (e) A county health officer appointed pursuant to NRS 439.290.

3-31    Sec. 4.  NRS 281.491 is hereby amended to read as follows:

3-32    281.491  In addition to the requirements of the code of ethical

3-33  standards:

3-34    1.  A member of the executive branch or public employee of the

3-35  executive branch shall not accept compensation from any private person to

3-36  represent or counsel him on any issue pending before the agency in which

3-37  that officer or employee serves, if the agency makes decisions. Any such

3-38  officer or employee who leaves the service of the agency shall not, for 1

3-39  year after leaving the service of the agency, represent or counsel for

3-40  compensation a private person upon any issue which was under

3-41  consideration by the agency during his service. As used in this subsection,

3-42  “issue” includes a case, proceeding, application, contract or determination,

3-43  but does not include the proposal or consideration of legislative measures

3-44  or administrative regulations.

3-45    2.  A member of the legislative branch, or a member of the executive

3-46  branch or public employee whose public service requires less than half of

3-47  his time, may represent or counsel a private person before an agency in

3-48  which he does not serve. Any other member of the executive branch or


4-1  public employee shall not represent a client for compensation before any

4-2  state agency of the executive or legislative branch of government.

4-3    3.  Not later than January 10 of each year, any legislator or other public

4-4  officer who has, within the preceding year, represented or counseled a

4-5  private person for compensation before a state agency of the executive

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

4-7  previous calendar year:

4-8    (a) The name of the client;

4-9    (b) The nature of the representation; and

4-10    (c) The name of the state agency.

4-11  The disclosure must be made in writing and filed with the commission[.] ,

4-12  on a form prescribed by the commission. The commission shall retain a

4-13  disclosure filed pursuant to this subsection for 6 years after the date on

4-14  which the disclosure was filed.

4-15    Sec. 5.  NRS 281.552 is hereby amended to read as follows:

4-16    281.552  1.  Every public officer shall acknowledge that he has

4-17  received, read and understands the statutory ethical standards. The

4-18  acknowledgment must be on a form prescribed by the commission and

4-19  must accompany the first statement of financial disclosure that the public

4-20  officer is required to file with the commission pursuant to NRS 281.561.

4-21    2.  The commission shall retain an acknowledgment filed pursuant to

4-22  this section for 6 years after the date on which the acknowledgment was

4-23  filed.

4-24    3.  Willful refusal to execute and file the acknowledgment required by

4-25  this section constitutes nonfeasance in office and is a ground for removal

4-26  pursuant to NRS 283.440.

4-27    Sec. 6.  NRS 281.581 is hereby amended to read as follows:

4-28    281.581  1.  A candidate or public or judicial officer who fails to file

4-29  his statement of financial disclosure in a timely manner pursuant to NRS

4-30  281.561 is subject to a civil penalty and payment of court costs and

4-31  attorney’s fees. [The] Except as otherwise provided in subsection 3, the

4-32  amount of the civil penalty is:

4-33    (a) If the statement is filed not more than 7 days late, $25 for each day

4-34  the statement is late.

4-35    (b) If the statement is filed more than 7 days late but not more than 15

4-36  days late, $175 for the first 7 days, plus $50 for each additional day the

4-37  statement is late.

4-38    (c) If the statement is filed more than 15 days late, $575 for the first 15

4-39  days, plus $100 for each additional day the statement is late.

4-40    2.  The commission may, for good cause shown, waive or reduce the

4-41  civil penalty.

4-42    3.  The civil penalty imposed for a violation of this section must not

4-43  exceed the annual compensation for the office for which the statement

4-44  was filed.

4-45    4.  The civil penalty must be recovered in a civil action brought in the

4-46  name of the State of Nevada by the commission in a court of competent

4-47  jurisdiction and deposited with the state treasurer for credit to the state

4-48  general fund.


5-1    [4.] 5.  If the commission waives a civil penalty pursuant to subsection

5-2  2, the commission shall:

5-3    (a) Create a record which sets forth that the civil penalty has been

5-4  waived and describes the circumstances that constitute the good cause

5-5  shown; and

5-6    (b) Ensure that the record created pursuant to paragraph (a) is available

5-7  for review by the general public.

 

5-8  H