(REPRINTED WITH ADOPTED AMENDMENTS)
SECOND REPRINT S.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.
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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).
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
2-1 developing the contract plans or specifications and he will not be
2-2 personally involved in opening, considering or accepting offers.
2-3 3. A full- or part-time faculty member in the University and
2-4 Community College System of Nevada may bid on or enter into a contract
2-5 with a governmental agency if he has not taken part in developing the
2-6 contract plans or specifications and he will not be personally involved in
2-7 opening, considering or accepting offers.
2-8 4. A public officer or employee, other than an officer or employee
2-9 described in subsection 2 or 3, may bid on or enter into a contract with a
2-10 governmental agency if the contracting process is controlled by rules of
2-11 open competitive bidding, the sources of supply are limited, he has not
2-12 taken part in developing the contract plans or specifications and he will not
2-13 be personally involved in opening, considering or accepting offers.
2-14 5. A person who violates any of the provisions of this section shall be
2-15 punished as provided in NRS 197.230 and:
2-16 (a) Where the commission, personal profit or compensation is $250 or
2-17 more, for a category D felony as provided in NRS 193.130.
2-18 (b) Where the commission, personal profit or compensation is less than
2-19 $250, for a misdemeanor.
2-20 6. A person who violates the provisions of this section shall pay any
2-21 commission, personal profit or compensation resulting from the contract or
2-22 transaction to the employing state, county, municipality, township, district
2-23 or quasi-municipal corporation as restitution.
2-24 Sec. 2. NRS 281.236 is hereby amended to read as follows:
2-25 281.236 1. A public utility or parent organization or subsidiary of a
2-26 public utility shall not employ a former member of the public utilities
2-27 commission of Nevada for 1 year after the termination of his service on the
2-28 commission.
2-29 2. A person who holds a license issued pursuant to chapter 463 or 464
2-30 of NRS or who is required to register with the Nevada gaming commission
2-31 pursuant to chapter 463 of NRS shall not employ a former member of the
2-32 state gaming control board or the Nevada gaming commission for 1 year
2-33 after the termination of the member’s service on the board or commission.
2-34 3. In addition to the prohibitions set forth in subsections 1 and 2, a
2-35 business or industry whose activities are governed by regulations adopted
2-36 by a department, division or other agency of the executive branch of
2-37 government shall not, except as otherwise provided in subsection 4,
2-38 employ a former public officer or employee of the agency, except a clerical
2-39 employee, for 1 year after the termination of his service or period of
2-40 employment if:
2-41 (a) His principal duties included the formulation of policy contained in
2-42 the regulations governing the business or industry;
2-43 (b) During the immediately preceding year he directly performed
2-44 activities, or controlled or influenced an audit, decision, investigation or
2-45 other action, which significantly affected the business or industry which
2-46 might, but for this section, employ him; or
2-47 (c) As a result of his governmental service or employment, he possesses
2-48 knowledge of the trade secrets of a direct business competitor.
3-1 4. A public officer or employee may request the commission on ethics
3-2 to apply the relevant facts in his case to the provisions of subsection 3 and
3-3 determine whether relief from the strict application of the provisions is
3-4 proper. If the commission on ethics determines that relief from the strict
3-5 application of the provisions of subsection 3 is not contrary to:
3-6 (a) The best interests of the public;
3-7 (b) The continued integrity of state government; and
3-8 (c) The code of ethical standards prescribed in NRS 281.481,
3-9 it may issue an [order] opinion to that effect and grant such relief. The
3-10 [decision] opinion of the commission on ethics in such a case is subject to
3-11 judicial review.
3-12 5. As used in this section, “regulation” has the meaning ascribed to it
3-13 in NRS 233B.038.
3-14 Sec. 3. NRS 281.4365 is hereby amended to read as follows:
3-15 281.4365 1. “Public officer” means a person elected or appointed to
3-16 a position which is established by the constitution of the State of Nevada, a
3-17 statute of this state or an ordinance of any of its counties or incorporated
3-18 cities and which involves the exercise of a public power, trust or duty. As
3-19 used in this section, “the exercise of a public power, trust or duty”
3-20 [includes:] means:
3-21 (a) Actions taken in an official capacity which involve a substantial and
3-22 material exercise of administrative discretion in the formulation of public
3-23 policy;
3-24 (b) The expenditure of public money; and
3-25 (c) The enforcement of laws and rules of the state, a county or a city.
3-26 2. “Public officer” does not include:
3-27 (a) Any justice, judge or other officer of the court system;
3-28 (b) Any member of a board, commission or other body whose function
3-29 is advisory;
3-30 (c) Any member of a board of trustees for a general improvement
3-31 district or special district whose official duties do not include the
3-32 formulation of a budget for the district or the authorization of the
3-33 expenditure of the district’s money; or
3-34 (d) A county health officer appointed pursuant to NRS 439.290.
3-35 Sec. 4. NRS 281.491 is hereby amended to read as follows:
3-36 281.491 In addition to the requirements of the code of ethical
3-37 standards:
3-38 1. A member of the executive branch or public employee of the
3-39 executive branch shall not accept compensation from any private person to
3-40 represent or counsel him on any issue pending before the agency in which
3-41 that officer or employee serves, if the agency makes decisions. Any such
3-42 officer or employee who leaves the service of the agency shall not, for 1
3-43 year after leaving the service of the agency, represent or counsel for
3-44 compensation a private person upon any issue which was under
3-45 consideration by the agency during his service. As used in this subsection,
3-46 “issue” includes a case, proceeding, application, contract or determination,
3-47 but does not include the proposal or consideration of legislative measures
3-48 or administrative regulations.
4-1 2. A member of the legislative branch, or a member of the executive
4-2 branch or public employee whose public service requires less than half of
4-3 his time, may represent or counsel a private person before an agency in
4-4 which he does not serve. Any other member of the executive branch or
4-5 public employee shall not represent a client for compensation before any
4-6 state agency of the executive or legislative branch of government.
4-7 3. Not later than January 10 of each year, any legislator or other public
4-8 officer who has, within the preceding year, represented or counseled a
4-9 private person for compensation before a state agency of the executive
4-10 branch shall disclose for each such representation or counseling during the
4-11 previous calendar year:
4-12 (a) The name of the client;
4-13 (b) The nature of the representation; and
4-14 (c) The name of the state agency.
4-15 The disclosure must be made in writing and filed with the commission[.] ,
4-16 on a form prescribed by the commission. The commission shall retain a
4-17 disclosure filed pursuant to this subsection for 6 years after the date on
4-18 which the disclosure was filed.
4-19 Sec. 5. NRS 281.552 is hereby amended to read as follows:
4-20 281.552 1. Every public officer shall acknowledge that he has
4-21 received, read and understands the statutory ethical standards. The
4-22 acknowledgment must be on a form prescribed by the commission and
4-23 must accompany the first statement of financial disclosure that the public
4-24 officer is required to file with the commission pursuant to NRS 281.561.
4-25 2. The commission shall retain an acknowledgment filed pursuant to
4-26 this section for 6 years after the date on which the acknowledgment was
4-27 filed.
4-28 3. Willful refusal to execute and file the acknowledgment required by
4-29 this section constitutes nonfeasance in office and is a ground for removal
4-30 pursuant to NRS 283.440.
4-31 Sec. 6. NRS 281.561 is hereby amended to read as follows:
4-32 281.561 1. Except as otherwise provided in subsection 2 or 3, if a
4-33 candidate for public or judicial office or a public or judicial officer is
4-34 entitled to receive compensation for serving in the office in question, he
4-35 shall file with the commission, and with the officer with whom declarations
4-36 of candidacy for the office in question are filed, a statement of financial
4-37 disclosure, as follows:
4-38 (a) A candidate for nomination, election or reelection shall file a
4-39 statement of financial disclosure no later than the 10th day after the last
4-40 day to qualify as a candidate for the office.
4-41 (b) A public or judicial officer appointed to fill the unexpired term of an
4-42 elected public or judicial officer shall file a statement of financial
4-43 disclosure within 30 days after his appointment.
4-44 (c) Every public or judicial officer, whether appointed or elected, shall
4-45 file a statement of financial disclosure on or before March 31 of each year
4-46 of the term, including the year the term expires.
4-47 (d) A public or judicial officer who leaves office on a date other than
4-48 the expiration of his term or anniversary of his appointment or election,
5-1 shall file a statement of financial disclosure within 60 days after leaving
5-2 office.
5-3 2. A statement filed pursuant to one of the paragraphs of subsection 1
5-4 may be used to satisfy the requirements of another paragraph of subsection
5-5 1 if the initial statement was filed not more than 3 months before the other
5-6 statement is required to be filed. [The public or judicial officer shall notify
5-7 the commission in writing of his intention to use the previously filed
5-8 statement to fulfill the present requirement.]
5-9 3. If a person is serving in a public or judicial office for which he is
5-10 required to file a statement pursuant to subsection 1, he may use the
5-11 statement he files for that initial office to satisfy the requirements of
5-12 subsection 1 for every other public or judicial office in which he is also
5-13 serving. [The person shall notify the commission in writing of his intention
5-14 to use the statement for the initial office to fulfill the requirements of
5-15 subsection 1 for every other office.]
5-16 4. A person may satisfy the requirements of subsection 1 by filing with
5-17 the commission a copy of a statement of financial disclosure that was filed
5-18 pursuant to the requirements of a specialized or local ethics committee if
5-19 the form of the statement has been approved by the commission.
5-20 Sec. 7. NRS 281.581 is hereby amended to read as follows:
5-21 281.581 1. A candidate or public or judicial officer who fails to file
5-22 his statement of financial disclosure in a timely manner pursuant to NRS
5-23 281.561 is subject to a civil penalty and payment of court costs and
5-24 attorney’s fees. [The] Except as otherwise provided in subsection 3, the
5-25 amount of the civil penalty is:
5-26 (a) If the statement is filed not more than 7 days late, $25 for each day
5-27 the statement is late.
5-28 (b) If the statement is filed more than 7 days late but not more than 15
5-29 days late, $175 for the first 7 days, plus $50 for each additional day the
5-30 statement is late.
5-31 (c) If the statement is filed more than 15 days late, $575 for the first 15
5-32 days, plus $100 for each additional day the statement is late.
5-33 2. The commission may, for good cause shown, waive or reduce the
5-34 civil penalty.
5-35 3. The civil penalty imposed for a violation of this section must not
5-36 exceed the annual compensation for the office for which the statement
5-37 was filed.
5-38 4. The civil penalty must be recovered in a civil action brought in the
5-39 name of the State of Nevada by the commission in a court of competent
5-40 jurisdiction and deposited with the state treasurer for credit to the state
5-41 general fund.
5-42 [4.] 5. If the commission waives a civil penalty pursuant to subsection
5-43 2, the commission shall:
5-44 (a) Create a record which sets forth that the civil penalty has been
5-45 waived and describes the circumstances that constitute the good cause
5-46 shown; and
5-47 (b) Ensure that the record created pursuant to paragraph (a) is available
5-48 for review by the general public.
6-1 Sec. 8. 1. This section and sections 1, 2 and 4 to 7, inclusive, of this
6-2 act become effective on October 1, 2001.
6-3 2. Section 3 of this act becomes effective at 12:01 a.m. on October 1,
6-4 2001.
6-5 H