2005 North Carolina Code - General Statutes Article 14 - Legislative Ethics Act.

Article 14.

Legislative Ethics Act.

Part 1. Code of Legislative Ethics.

§ 120‑85.  Definitions.

As used in this Article:

(1)       "Business with which associated" means any enterprise, incorporated or otherwise, doing business in the State of which the person or any member of the person's immediate household is a director, officer, owner, partner, employee, or of which the person and the person's immediate household, either singularly or collectively, is a holder of securities worth five thousand dollars ($5,000) or more at fair market value as of December 31 of the preceding year, or constituting five percent (5%) or more of the outstanding stock of the enterprise.

(1a)     "Economic interest" includes matters involving a business with which the person is associated or a nonprofit corporation or organization with which the person is associated.

(2)       "Immediate household" means the person, the person's spouse, and all of the person's dependent children.

(2a)     "Nonprofit corporation or organization with which associated" means any public or private enterprise, incorporated or otherwise, that is organized or operating in the State primarily for religious, charitable, scientific, literary, public health and safety, or educational purposes and of which the person or any member of the person's immediate household is a director, officer, governing board member, employee or independent contractor as of December 31 of the preceding year.

(3)       "Vested trust" as set forth in G.S. 120‑96(4) means any trust, annuity or other funds held by a trustee or other third party for the benefit of the person or a member of the person's immediate household.(1975, c. 564, s. 1; 2004‑199, s. 31(a).)

 

§ 120‑86.  Bribery, etc.

(a)       No person shall offer or give to a legislator or a member of a legislator's immediate household, or to a business with which the legislator is associated, and no legislator shall solicit or receive, anything of monetary value, including a gift, favor or service or a promise of future employment, based on any understanding that the legislator's vote, official actions or judgment would be influenced thereby, or where it could reasonably be inferred that the thing of value would influence the legislator in the discharge of the legislator's duties.

(b)       It shall be unlawful for the partner, client, customer, or employer of a legislator or the agent of that partner, client, customer, or employer, directly or indirectly, to threaten economically that legislator with the intent to influence the legislator in the discharge of the legislator's duties.

(b1)     It shall be unlawful for any person, directly or indirectly, to threaten economically another person in order to compel the threatened person to attempt to influence a legislator in the discharge of the legislator's duties.

(c)       It shall be unethical for a legislator to contact the partner, client, customer, or employer of another legislator if the purpose of the contact is to cause the partner, client, customer, or employer, directly or indirectly, to threaten economically that legislator with the intent to influence that legislator in the discharge of the legislator's duties.

(d)       For the purposes of this section, the term "legislator" also includes any person who has been elected or appointed to the General Assembly but who has not yet taken the oath of office.

(e)       Violation of subsection (a), (b), or (b1) is a Class F felony. Violation of subsection (c) is not a crime but is punishable under G.S. 120‑103. (1975, c. 564, s. 1; 1983, c. 780, s. 2; 1993, c. 539, s. 1302; 1994, Ex. Sess., c. 24, s. 14(c); 1997‑443, s. 19.27(a).)

 

§ 120‑86.1.  Personnel‑related action unethical.

It shall be unethical for a legislator to take, promise, or threaten any legislative action, as defined in G.S. 120‑47.1(4), for the purpose of influencing or in retaliation for any action regarding State employee hirings, promotions, grievances, or disciplinary actions subject to Chapter 126 of the General Statutes. (1997‑520, s. 7.)

 

§ 120‑87.  Disclosure of confidential information.

(a)       No legislator shall use or disclose in any way confidential information gained in the course of the legislator's official activities or by reason of the legislator's official position that could result in financial gain for: (i) the legislator; (ii) a business with which the legislator is associated; (iii) a nonprofit corporation or organization with which the legislator is associated; (iv) a member of the legislator's immediate household; or (v) any other person.

(b)       As used in this section, "confidential information" means information defined as confidential by statute. (1975, c. 564, s. 1; 2004‑199, s. 31(b).)

 

§ 120‑88.  When legislator to disqualify himself or submit question to Legislative Ethics Committee.

When a legislator must act on a legislative matter as to which he has an economic interest, personal, family, or client, he shall consider whether his judgment will be substantially influenced by the interest, and consider the need for his particular contribution, such as special knowledge of the subject matter, to the effective functioning of the legislature. If after considering these factors the legislator concludes that an actual economic interest does exist which would impair his independence of judgment, then he shall not take any action to further the economic interest, and shall ask that he be excused, if necessary, by the presiding officer in accordance with the rules of the respective body. If the legislator has a material doubt as to whether he should act, he may submit the question to the Legislative Ethics Committee for an advisory opinion in accordance with G.S. 120‑104. (1975, c. 564, s. 1.)

 

Part 2. Statement of Economic Interest.

§ 120‑89.  Statement of economic interest by legislative candidates; filing required.

(a)       Every person who files as a candidate for nomination or election to a seat in either house of the General Assembly shall file a statement of economic interest as specified in this Article within 10 days of the filing deadline for the office he seeks.

(b)       The statement of economic interest shall be filed at the same place, and in the same manner, as the notice of candidacy which a candidate seeking party nomination for the office of State Senator or member of the State House of Representatives is required to file under the provisions of G.S. 163‑106. (1975, c. 564, s. 1; 2001‑119, s. 1.)

 

§ 120‑90: Repealed by Session Laws 2001‑119, s. 2.

 

§ 120‑91:  Repealed by 1987 (Reg.  Sess., 1988), c. 1028, s. 3.

 

§ 120‑92.  Filing by candidates not nominated in primary elections.

A person who is nominated pursuant to the provisions of G.S. 163‑114 after the primary and before the general election, and a person who qualifies pursuant to the provisions of G.S. 163‑122 as an independent candidate in a general election shall file with the county board of elections of each county in the senatorial or representative district a statement of economic interest as specified in this Article. A person nominated pursuant to G.S. 163‑114 shall file the statement within three days following his nomination,or not later than the day preceding the general election, whichever occurs first. A person seeking to qualify as an independent candidate under G.S. 163‑122 shall file the statement of economic interest with the petition filed pursuant to that section. A person who is nominated by party convention of a new political party in accordance with G.S. 163‑98 shall file a statement of economic interest as specified in this Article with the county board of elections of each county in the senatorial or representative district within 10 days of the certification with the State Board of Elections of the new party's candidates required by G.S. 163‑98. (1975, c. 564, s. 1; 1987 (Reg. Sess., 1988), c. 1028, s. 3; 2001‑119, s. 3.)

 

§ 120‑92.1.  Statement of economic interest by persons appointed to legislative seats; filing required.

Every person appointed to fill a vacant seat in the General Assembly pursuant to G.S. 163‑11 shall file a statement of economic interest as specified in this Article with the Legislative Services Office and the county board of elections of each county in the senatorial or representative district no later than 10 days after taking the oath of office. (2001‑119, s. 4.)

 

§ 120‑93.  County boards of elections to notify candidates of economic‑interest‑statement requirements.

Each county board of elections shall provide for notification of the economic‑interest‑statement requirements of G.S. 120‑89, 120‑96, and 120‑98 to be given to any candidate filing for nomination or election to the General Assembly at the time of his or her filing in the particular county. Each county board of elections shall also provide notification of those requirements to each candidate nominated by a new party under G.S. 163‑98 for the General Assembly, if the candidate will be on the ballot in that county. The county board shall notify the new‑party candidate immediately upon that county board's being notified by the State Board of Elections that the party has certified that candidate's nomination. (1975, c. 564, s. 1; 1987 (Reg. Sess., 1988), c. 1081, s. 4; 2002‑159, s. 55(c).)

 

§ 120‑93.1.  Certification of statements of economic interest.

The chairman of the county board of elections with which a statement of economic interest is filed shall forward a certified copy of the statement to the Legislative Services Office once the candidate is certified as elected to the General Assembly.  The chairman shall also forward a certified copy of each candidate's statement of economic interest, within 10 days after its filing, to the board of elections in each other county in the district the candidate seeks to represent. (1989 (Reg. Sess., 1990), c. 890, s. 1.)

 

§ 120‑94.  Statements of economic interest are public records.

The statements of economic interest are public records and shall be made available for inspection and copying by any person during normal business hours at the office of the various county boards of election where the statements or copies thereof are filed and at the Legislative Library after certified copies are forwarded to the Legislative Services Office.  If a county board of elections of a county does not keep an office open during normal business hours each day, that board shall deliver a copy of all statements of economic interest filed with it to the clerk of superior court of the county, and the statements shall be available for inspection and copying by any person during normal business hours at that clerk's office. (1975, c. 564, s. 1; 1989 (Reg. Sess., 1990), c. 890, s. 1.)

 

§ 120‑95:  Repealed by 1987 (Reg.  Sess., 1988), c. 1028, s. 3.

 

§ 120‑96.  Contents of statement.

(a)       Any statement of economic interest filed under this Article shall be on a form prescribed by the Committee, and the person filing the statement shall supply all of the following information:

(1)       The identity, by name, of all businesses, nonprofit corporations or organizations with which the person is associated.

(2)       The character and location of all real estate of a fair market value of more than five thousand dollars ($5,000), other than the person's personal residence (curtilage), in the State in which the person, or a member of the person's immediate household, has any beneficial interest, including an option to buy and a lease for 10 years or more.

(3)       The type of each creditor to whom the person, or a member of the person's immediate household, owes more than five thousand dollars ($5,000), except indebtedness secured by lien upon the person's personal residence only.

(4)       The name of each "vested trust" in which the person or a member of the person's immediate household has a financial interest of more than five thousand dollars ($5,000) and the nature of the interest.

(5)       The name and nature of the person and the person's immediate household member's respective business or profession or employer and the types of customers and types of clientele served.

(6)       A list of businesses with which the person is associated that do business with the State, and a brief description of the nature of the business.

(6a)     A list of nonprofit corporations or organizations with which the person is associated and which receive State funds, and a brief description of the nature of the programs receiving funds.

(7)       In the case of a person who practices a profession, whether individually or as a member of a professional association, a list of clients, by the type of business, whom the person or the person's firm or partnership has charged or who have paid to the person or the person's firm or partnership two thousand five hundred dollars ($2,500) or more for professional services rendered during the previous calendar year. This list need not include the name of the client but shall list the type of the business of each such client or class of client, and brief description of the nature of the services rendered.

(b)       All information provided in the statement of economic interest shall be current as of the last day of December of the year preceding the signature date. (1975, c. 564, s. 1; 1989 (Reg. Sess., 1990), c. 890, s. 1; 2001‑119, s. 5; 2004‑199, s. 31(c).)

 

§ 120‑97:  Repealed by 1987 (Reg.  Sess., 1988), c. 1028, s. 3.

 

§ 120‑98.  Penalty for failure to file.

(a)       If a candidate does not file the statement of economic interest within the time required by this Article, the county board of elections shall immediately notify the candidate by registered mail, restricted delivery to addressee only, that, if the statement is not received within 15 days, the candidate shall not be certified as the party nominee, or in the case of a candidate nominated by a new party under G.S. 163‑98 that the candidate shall be decertified by the State Board of Elections. If the statement is not received within 15 days of notification, the board of elections authorized to certify a candidate as nominee to the office shall not certify the candidate as nominee under any circumstances, regardless of the number of candidates for the nomination and regardless of the number of votes the candidate receives in the primary. If the delinquent candidate was nominated by a new party under G.S. 163‑98, the State Board of Elections shall decertify the candidate, and no county board of elections shall place the candidate's name on the general election ballot as nominee of the party. A vacancy thus created on a party's ticket shall be considered a vacancy for the purposes of G.S. 163‑114, and shall be filled according to the procedures set out in G.S. 163‑114.

(b)       Repealed by Session Laws 1987 (Reg. Sess., 1988), c. 1028, s. 5.

(c)       If a person appointed to fill a vacant seat in the General Assembly pursuant to G.S. 163‑11 does not file the statement of economic interest within the time required by this Article, the Legislative Services Officer shall notify the person that the statement must be received within 15 days of notification. If the statement is not received within the time allowed in this subsection, then the Legislative Services Officer shall notify the Legislative Ethics Committee of the failure to file the statement. (1975, c. 564, s. 1; 1987 (Reg. Sess., 1988), c. 1028, ss. 4, 5; 2001‑119, s. 6; 2002‑159, s. 55(d).)

 

Part 3. Legislative Ethics Committee.

§ 120‑99.  Creation; composition.

(a)       The Legislative Ethics Committee is created to consist of ten members, five Senators appointed by the President Pro Tempore of the Senate, among them – two from a list of four submitted by the Majority Leader and two from a list of four submitted by the Minority Leader, and five members of the House of Representatives appointed by the Speaker of the House, among them – two from a list of four submitted by the Majority Leader and two from a list of four submitted by the Minority Leader.

(b)       The President Pro Tempore of the Senate and the Speaker of the House as the appointing officers shall each designate a cochair of the Legislative Ethics Committee from the respective officer's appointees. The cochair appointed by the President Pro Tempore of the Senate shall preside over the Legislative Ethics Committee during the odd‑numbered year, and the cochair appointed by the Speaker of the House shall preside in the even‑numbered year. However, a cochair may preside at anytime during the absence of the presiding cochair or upon the presiding cochair's designation. In the event a cochair is unable to act as cochair on a specific matter before the Legislative Ethics Committee, and so indicates in writing to the appointing officer and the Legislative Ethics Committee, the respective officer shall designate from that officer's appointees a member to serve as cochair for that specific matter.

(c)       The provisions of G.S. 120‑19.1 through G.S. 120‑19.8 shall apply to the proceedings of the Legislative Ethics Committee as if it were a joint committee of the General Assembly, except that both cochairs shall sign all subpoenas on behalf of the Committee. (1975, c. 564, s. 1; 1985, c. 790, s. 6; 1991, c. 739, s. 15; 1995, c. 180, s. 1; 2004‑199, s. 31(d).)

 

§ 120‑100.  Term of office; vacancies.

(a)       Appointments to the Legislative Ethics Committee shall be made immediately after the convening of the regular session of the General Assembly in odd‑numbered years, and appointees shall serve until the expiration of their then‑current terms as members of the General Assembly.

(b)       A vacancy occurring for any reason during a term shall be filled for the unexpired term by the authority making the appointment which caused the vacancy, and the person appointed to fill the vacancy shall, if possible, be a member of the same political party as the member who caused the vacancy.

(c)       In the event a member of the Legislative Ethics Committee is unable to act on a specific matter before the Legislative Ethics Committee, and so indicates in writing to the appointing officer and the Legislative Ethics Committee, the appointing officer may appoint another member of the respective chamber from a list submitted by the majority leader or minority leader who nominated the member who is unable to act on the matter to serve as a member of the Legislative Ethics Committee for the specific matter only. If on any specific matter, the number of members of the Legislative Ethics Committee who are unable to act on a specific matter exceeds four members, the appropriate appointing officer shall appoint other members of the General Assembly to serve as members of the Legislative Ethics Committee for that specific matter only. (1975, c. 564, s. 1; 1995, c. 180, s. 2; 2004‑199, s. 31(e).)

 

§ 120‑101.  Quorum; expenses of members.

Six members constitute a quorum of the Committee. A vacancy on the Committee does not impair the right of the remaining members to exercise all the powers of the Committee.

The members of the Committee, while serving on the business of the Committee, are performing legislative duties and are entitled to the subsistence and travel allowances to which members of the General Assembly are entitled when performing legislative duties. (1975, c. 564, s. 1; 1995, c. 180, s. 3.)

 

§ 120‑102.  Powers and duties of Committee.

In addition to the other powers and duties specified in this Article, the Committee has the following powers and duties:

(1)       To prescribe forms for the statements of economic interest and other reports required by this Article, and to furnish these forms to persons who are required to file statements or reports.

(2)       To receive and file any information voluntarily supplied that exceeds the requirements of this Article.

(3)       To organize in a reasonable manner statements and reports filed with it and to make these statements and reports available for public inspection and copying during regular office hours.  Copying facilities shall be made available at a charge not to exceed actual cost.

(4)       To preserve statements and reports filed with the Committee for a period of 10 years from the date of receipt.  At the end of the 10‑year period, these documents shall be destroyed.

(5)       To prepare a list of ethical principles and guidelines to be used by each legislator in determining his role in supporting or opposing specific types of legislation, and to advise each General Assembly committee of specific danger areas where conflict of interest may exist and to suggest rules of conduct that should be adhered to by committee members in order to avoid conflict.

(6)       To advise General Assembly members or render written opinions if so requested by the member about questions of ethics or possible points of conflict and suggested standards of conduct of members upon ethical points raised.

(7)       To propose rules of legislative ethics and conduct.  The rules, when adopted by the House of Representatives and the Senate, shall be the standards adopted for that term.

(8)       Upon receipt of information that a legislator owes money to the State and is delinquent in making repayment of such obligation, to investigate and dispose of the matter according to the terms of this Article. (1975, c. 564, s. 1; 1979, c. 864, s. 3; 1991, c. 700, s. 1.)

 

§ 120‑103.  Possible violations; procedures; disposition.

(a)       Institution of Proceedings. – On its own motion, or in response to signed and sworn complaint of any individual filed with the Committee, the Committee shall inquire into any alleged violation:

(1)       Of any provision of this Article, or of the rules adopted in accordance with G.S. 120‑102(7); or

(2)       Of the criminal law by a legislator while acting in his official capacity as a participant in the lawmaking process.

     (a1) Complaint. –

(1)       A complaint filed under this Article shall state the nature of the violation, 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)       Any individual who verifies a complaint knowing the allegations in the complaint to be untrue may be prosecuted for perjury under G.S. 14‑209.

(b)       Notice and Hearing. – If, after such preliminary investigation as it may make, the Committee determines to proceed with an inquiry into the conduct of any individual, the Committee shall notify the individual as to the fact of the inquiry and the charges against him and shall schedule one or more hearings on the matter. The individual shall have the right to present evidence, cross‑examine witnesses, and be represented by counsel at any hearings. The Committee may, in its discretion, hold hearings in closed session; however, the individual whose conduct is under inquiry may, by written demand filed with the Committee, require that all hearings before the Committee concerning him be public or in closed session.

(c)       Subpoenas. – The Committee may issue subpoenas to compel the attendance of witnesses or the production of documents, books or other records. The Committee may apply to the superior court to compel obedience to the subpoenas of the Committee. Notwithstanding any other provision of law, every State agency, local governmental agency, and units and subdivisions thereof shall make available to the Committee any documents, records, data, statements or other information, except tax returns or information relating thereto, which the Committee designates as being necessary for the exercise of its powers and duties.

(d)       Repealed by Session Laws 1991, c. 700, s. 2.

(d1)     Disposition of Cases. –

(1)       After the Committee has concluded its inquiries into the alleged violations, the Committee shall:

a.         Dismiss the complaint.

b.         Issue a public or private admonishment to the legislator, or

c.         Refer the matter:

1.         To the Attorney General for possible prosecution through appropriate channels or the appropriate house for appropriate action, or both, if the Committee finds substantial evidence of a violation of a criminal statute; or

2.         To the appropriate house for appropriate action, which shall include censure and expulsion, if the Committee finds substantial evidence of unethical activities.

(2)       If the Committee issues an admonishment as provided in subdivision (1)b. above, the legislator so affected may upon written request to the Committee have the matter referred as provided under subdivision (1)c.2. above.

(3)       In the case of a dismissal or private admonishment, the Committee shall retain its records or findings in confidence, unless the individual under inquiry requests in writing that the records and findings be made public.  If the Committee later finds that a legislator's subsequent unethical activities were similar to and the subject of an earlier private admonishment then the Committee may make public the earlier admonishment and the records and findings related to it.

(4)       Any action by the Committee under this Article does not limit the right of each house of the General Assembly to discipline or to expel its members. (1975, c. 564, s. 1; 1987, c. 439; 1991, c. 700, s. 2.)

 

§ 120‑104.  Advisory opinions.

At the request of any member of the General Assembly, the Committee shall render advisory opinions on specific questions involving legislative ethics. These advisory opinions, edited as necessary to protect the identity of the legislator requesting the opinion, shall be published periodically by the Committee. (1975, c. 564, s. 1.)

 

§ 120‑105.  Continuing study of ethical questions.

The Committee shall conduct continuing studies of questions of legislative ethics including revisions and improvements of this Article as well as sections to cover the administrative branch of government and shall report to the General Assembly from time to time recommendations for amendments to the statutes and legislative rules which the Committee deems desirable in promoting, maintaining and effectuating high standards of ethics in the legislative branch of State government. (1975, c. 564, s. 1.)

 

§ 120‑106.  Article applicable to presiding officers.

The provisions of this Article shall apply to the presiding officers of the General Assembly. (1975, c. 564, s. 2.)

 

§§ 120‑107 through 120‑111.  Reserved for future codification purposes.