Gov. Easley Signs Bills Expanding Ethics Rules for Public Officials

New Laws Open Ethics Commission Hearings and Regulate Political Legal Defense Funds

Raleigh– Gov. Mike Easley today signed legislation to open state Ethics Commission hearings and regulate funds set up to raise legal defense money for public officials.  The bills are:

House Bill 1111: “An act to make clarifying changes to the State Government Ethics Act, the Legislative Ethics Act and the lobbying laws.”

House Bill 1737: “An act to regulate legal expense funds for elected officers, to provide for the disclosure of contributions and expenditures and to limit certain contributions.”

House Bill 1110: “An act to make technical changes to the State Government Ethics Act, the Legislative Ethics Act and the lobbying law.”

“North Carolinians have the right to expect their public officials adhere to the higest ethical standards when they act of the public’s behalf,” said Easley.  “These new laws provide more access and important openness to the ethics laws passed last year so citizens can see for themselves how the standards are being enforced.”

The new ethics law opens nearly all hearings of the State Ethics Commission to the public, following initial complaint inquiries and fact-finding.  It also opens up most records gathered as part of the inquiries, including the complaint, response and other documents that are part of the evidence for the hearing.

The new law on public officials’ legal defense funds requires appropriate accounting and reporting of contributions and expenditures under the supervision of the State Board of Elections.  It limits contributions from corporations, labor unions, insurance companies, professional associations or businesses to $4,000 a year.  It also limits use of money donated to the fund to legal expenses.  Any money left when the legal expense fund is closed must be either given to the state Indigent Persons’ Attorney Fee Fund, the N.C. State Bar to provide for indigent legal services or returned to the contributors.

Portions of H 1110 are effective immediately while others become effective on Oct. 1, 2007 and Jan. 1, 2008.  The bill passed the House of Representatives 111-1 and the Senate 46-0.  Portions of H 1111 became effective immediately while others become effective Jan. 1, 2008.  It passed the House 108-5 while the Senate aproved it 47-0.  H 1737 becomes effective Jan 1, 2008 and was approved by the House 112-0 while the Senate approved it 47-0.