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Policy Name:  Supplemental Code of Ethics
Policy ID Number:  01-05-003
Accountable Senior Administrator: University Counsel
Issued:  May 16, 2007
Last Updated:  April 21, 2022
 

Policy Statement

It is essential for the proper and efficient operation of New �鶹��ý City University (University), a public institution of higher education of the State of New �鶹��ý (State), that the conduct of its officers and employees hold the respect and confidence of the people. To achieve this goal, members of the campus community have an ethical responsibility to ensure that the execution of their public duties does not conflict with outside activity and employment, and that involvement in activities external to the University do not conflict with the University’s best interests in practice and/or appearance.  

Reason For Policy

The Supplemental Code of Ethics Policy (Code) sets forth the general and specific standards of conduct for avoidance of conflicts of interest in the discharge of public duties and responsibilities. The Supplemental Code of Ethics was established and adopted in accordance with the New �鶹��ý Conflicts of Interest Law (.) (Conflicts Law), specifically, . Pursuant to the Conflicts Law, the Uniform Ethics Code (Primary Code) promulgated by the State Ethics Commission (SEC) is the primary code applicable to all State officers and employees.  This includes full-time and part-time faculty, staff, administrators, and members of the Board of Trustees of New �鶹��ý City University (Board of Trustees).  .  The Code supplements the Primary Code and applies to all full-time and part-time faculty, staff, administrators, and members of the Board of Trustees (University officials and employees).  In any instance where a provision of the Code conflicts with the Primary Code, the Primary Code shall govern.ee.

Stakeholders Affected By Policy

• All University Employees
• Board of Trustees

Definition

Commercial Enterprise – Any activity, whether it is for-profit or nonprofit, formed for the ongoing conduct of lawful business including, but not limited to, a sole proprietorship, partnership (whether limited or general), holding company, joint venture, corporation, business trust, or other entity which may be publicly or privately owned.

Policy And Procedures

General Minimum Standards For Avoidance of Conflict of Interest Required Pursuant to N.J.S.A. 52:13D-23(e)

1. No University official or employee should have any interest, financial or otherwise, direct, or indirect, or engage in any business or transaction or professional activity, which is in substantial conflict with the proper discharge of his/her duties in the public interest.
2. No University official or employee should engage in any business, profession, trade, or occupation which is subject to licensing or regulation by a specific agency of State Government without promptly filing notice of such activity with the University Chief Ethics Officer.
3. No University official or employee should use or attempt to use his/her official position to secure unwarranted privileges or advantages for himself/herself or others.
4. No University official or employee should act in his/her official capacity in any matter wherein he/she has a direct or indirect personal financial interest that might reasonably be expected to impair his/her objectivity or independence of judgment.
5. No University official or employee should undertake any employment or service, whether compensated or not, which might reasonably be expected to impair his/her objectivity and independence of judgment in the exercise of his/her official duties.
6. No University official or employee should accept any gift, favor, service, or other thing of value under circumstances from which it might be reasonably inferred that such gift, service, or other thing of value was given or offered for the purpose of influencing him/her in the discharge of his/her official duties.
7. No University official or employee should knowingly act in any way that might reasonably be expected to create an impression or suspicion among the public having knowledge of his/her acts that he/she may be engaged in conduct violative of his/her trust as a University official or employee.

Outside Activity or Employment

1. University officials and employees
   • Exemptions from disclosure of certain outside activities and employment.
     • Notwithstanding the general disclosure requirements contained in the Primary Code (Section VI), the Primary Code authorizes the University to exempt disclosure of specific kinds of outside employment or activities if the University is satisfied that such activity or employment does not present a conflict of interest. Pursuant to this authorization disclosure to and prior approval of the University Chief Ethics Officer is not required for volunteer activities on behalf of non-profit charitable, religious, sports, professional, community and other non-profit organizations not reasonably expected to cast material doubt on the objectivity and independence of judgment of the University official or employee in the exercise of their official discretion. Examples (for illustrative purposes only): Professional staff in the Division of Administration and Finance serving in a private capacity as a little league coach, a member of a school parent teacher association or a member of a professional association generally need not disclose and seek approval of the University Chief Ethics Officer. A tennis coach in the Division of Student Support Services should disclose and seek prior approval for a volunteer activity involving the recruitment of student/athletes on behalf of a tennis program other than New �鶹��ý City University. Where there is reasonable doubt whether disclosure and prior approval is required for a proposed volunteer activity, the covered University official or employee shall either make the disclosure as provided by the Primary Code or seek the advice of the University Chief Ethics Officer or the SEC regarding the need to disclose prior to engaging in the outside activity.
     • The University Chief Ethics Officer may exempt from further annual disclosure compensated or uncompensated outside activity or outside employment after an initial disclosure or request for advice under such conditions, if any, as the University Chief Ethics Officer may deem appropriate and consistent with the Primary Code and this Code.
2. Special Provisions
   • No member of the University Board of Trustees (“board member”) or board member’s spouse, domestic partner, child, parent, or sibling residing in the same household shall do business with the institution that the board member governs.  For the purposes of this section, the term “do business with” shall mean providing or receiving any goods or services or otherwise engaging in a transaction involving the exchange of anything of value.  No board member or board member’s spouse, domestic partner, child, parent, or sibling residing in the same household shall be employed by or receive compensation from any firm, association, or partnership that does business with the University.  No board member shall own or control more than one percent of the profits or assets of a firm, association, or partnership that does business with the institution that the board member governs. 
     • The SEC is authorized to grant an exception from the prohibition relating to a board member’s family members if, in the judgment of the SEC executive director, the entity that is doing business with the University is doing so pursuant to a contract awarded in accordance with the competitive bidding laws applicable to that institution or the public interest requires that an exception be made. 
     • Every board member shall file, on an annual basis, the conflicts of interest form promulgated by the SEC.  The board member shall file the form on or before May 15.  Board members who are newly named to a board shall file a conflicts of interest form no later than 120 days from their assumption of office.  Each conflict of interest form shall contain a sworn certification, under penalty of perjury, by the board member that he or she has read the statement, that to the best of his or her knowledge and belief it is true, correct, and complete, and that he or she has not transferred and will not transfer any asset, interest, or property for the purpose of concealing it from disclosure while retaining an equitable interest therein.  The University shall complete a list of all vendors and companies that it does business with or that it receives services from (“vendor lists”).  The University shall submit vendor lists to the SEC and to all individual board members no later than February 15 of each calendar year.  The SEC shall use vendor lists to evaluate conflicts of interest on an ongoing basis.  In addition, individual board members shall use the vendor lists to identify and avoid conflicts and to prepare their conflicts of interest form. 
     • The University will update its vendor list on a quarterly basis (namely, May 15, August 15, and November 15) and provide updated copies to the SEC and individual board members.  The University shall also provide newly appointed board members with vendor lists when they join the governing board.  Within 30 days of the receipt of a quarterly update, board members shall report any potential new conflicts to the SEC. 
     • In addition to all other civil and criminal penalties provided by law, a board member found by the SEC to have violated the requirements relating to conflicts of interest shall be fined no less than $500 nor more than $10,000 and may be suspended from office by order of the SEC for a period of no more than one year. 
     • Failure by any board member to comply with these provisions shall constitute good cause for the appointing authority to remove the board member from office.  If the SEC finds that the conduct of the board member constitutes a continuous and willful disregard of the conflicts of interest provisions, the SEC may order the board member removed from office and may further bar the board member from holding any public office or employment in the State for a period not exceeding five years from the date on which the SEC made its finding.
     • For failure to file a conflicts of interest form, the SEC shall impose a civil penalty of $50 for each day of the violation, which penalty may be collected in a summary proceeding pursuant to the “Penalty Enforcement Law of 1999,” . 
   •  University Chief Ethics Officer. The President or the university official or employee designated by the President shall serve as the University Chief Ethics Officer. The University Chief Ethics Officer shall report to the President and shall have authority as necessary to carry out the responsibilities assigned pursuant to the Conflicts Law, Executive Order, the Primary Code, and this Code.
   •  Attorneys:
     • Attorneys employed by the University to provide legal services and representation on its behalf shall not represent any party other than the University or engage in the private practice of law in any other way, whether or not the attorneys receive compensation, except that the attorneys may without compensation represent themselves or their spouses, children, or parents subject to the provisions of this Code and the Primary Code with the approval of the President or designee. Representation of the designated family members shall also be limited to matters which are not of an adversarial nature.
     •  Attorneys employed by the University to provide legal services and representation on its behalf shall not act as attorney or counsel in any controversy in which the University or the State has an interest, except in his/her official capacity.
3. Contracts.
   • Contracts between Certain University officials and employees are prohibited as follows. University officials or employees serving as members of the board of trustees, president, provost, or vice president are prohibited from engaging in any private business transactions with any University official or employee.

Faculty or Staff Involvement with Commercial Enterprise Contracts with the University

Pursuant to , no University employee shall knowingly, on their own initiative or by his or her partners, or through any corporation which he or she controls or in which he or she owns or controls more than 1% of the stock, or by any other person for his or her use or benefit or on his or her account, undertake or execute, in whole or in part, any contract, agreement, sale, or purchase of the value of $25.00 or more, made, entered into, awarded, or granted by any State agency. 

However, an employee may enter into a contract or agreement with the University where the contract or agreement is for the development of scientific or technological discoveries or innovations in which the University has a property right.  The University recognizes that the potential to develop commercial enterprises to market university research-based technology has increased and further recognizes that such involvement can be of significant benefit to the University, the faculty or staff member, the commercial entity, the public, and the economy of the State of New �鶹��ý.  This section of the Supplemental Ethics Code prescribes a disclosure and approval process for University employees’ involvement with commercial enterprises for the purpose of commercializing intellectual property developed by the faculty member and owned by the University.  Employees who enter into contracts or agreements pursuant to the approval procedure described below will not be considered in violation of the Primary Code or the Supplemental Ethics Code, nor will the contract or agreement be considered a conflict with their professional responsibilities. 

Approval Procedure

1. To allow for the University to have an opportunity to carefully evaluate the benefits and burdens of a faculty or staff member’s equity interest in a commercial enterprise which seeks to enter into an agreement with the University, all faculty members must request prior approval in writing from their Department Chair when such an agreement is contemplated.  Staff members must request prior approval in writing from their unit head.  Contracts or agreements for which approval must be sought include:
   • a. Ownership of substantial equity (greater than 1%) in a commercial enterprise that carries on business activities with the University; and
   • b. Ownership of substantial equity (greater than 1%) in a commercial enterprise by a member of a faculty or staff member’s immediate family, that wishes to carry on business activities with the University. 
2. Disclosure and Information Requirement.  Faculty or staff requests for approval of such contracts or agreements shall disclose fully to the Department Chair (or unit head) the following aspects of the affiliation:
   • a. Nature of the relationship;
   • b. Short and long-term commitment of time and effort;
   • c. Financial aspects, including the extent of compensation, equity, and indirect and/or potential economic value;
   • d. Expected benefit to the commercial enterprise;
   • e. Expected benefits to the faculty or staff member, the University, the public and the State of New �鶹��ý; 
   • f. The names of all other individuals who have an interest in the commercial enterprise. 
3. Consideration shall be given to the following issues when evaluating requests from faculty or staff members:
   • a. There should be prospective benefits to the faculty or staff member and the University. 
   • b. The relationship should not interfere with the faculty or staff member’s primary obligation to his or her University appointment, nor should it undermine the academic integrity of the University.
   • c. There must be no foreseeable inappropriate reorientation of an academic or research program or student direction.  Special attention must be given to protecting the intellectual property of students and in protecting students from performing work under any such contract or agreement which is out of proportion to the benefits received by the student for their performance of the work. 
   • d. There should be free access to the results of all research conducted at the University, subject only to reasonable restrictions related to protection of intellectual property. 
   • e. Except under extraordinary circumstances, holding of a line management position or participation in day-to-day operations within a commercial enterprise with which the University does or will do business should not be approved.
   • f. Alternative arrangements, in which a conflict of interest does not exist, should be explored
   • g. Such contracts or agreements shall not be negotiated by the subject faculty member on behalf of the commercial enterprise.   
4. Approval Procedure. 
   • a. Faculty should submit a request for approval, accompanied by the required disclosures and information (“submission materials”) as set forth above, to their Department Chair (or unit head).  If the Chair finds the submission inadequate to evaluate the request, the Chair shall request further information from the faculty member.  The submission materials and a written recommendation of the Chair on the faculty member’s request shall be submitted to the Dean (or unit head’s supervisor) within thirty calendar days of receipt of the request for approval unless the Chair determines that expedited review is necessary.  If the faculty member seeks an expedited review, they must put this request in writing to the Chair as part of their submission materials.  Expedited review is granted only in exceptional circumstances and is subject to the discretion of the Chair.  If the Chair determines that expedited review is necessary, the Chair shall transmit the submission materials, a written recommendation, and a notification that the matter was expedited to the Dean within 7 business days of receipt of the submission materials.  In considering submission materials, the Chair may consult with representative faculty within the department to ensure that the request is consistent with departmental goals. 
   • b. Upon receipt of the submission materials and the Chair’s recommendations, the Dean (or unit head’s supervisor) shall review same and forward his or her written recommendation, along with the submission materials, to the University Research Committee (“URC”) for final decision.  In considering submission materials, the Dean may consult with representative faculty as needed to ensure that the request is consistent with departmental goals.  The Dean shall submit a recommendation to the URC within thirty calendar days of receipt of the request unless the Dean determines that expedited review is necessary. If the Dean has received a notification that the Chair determined that expedited review was necessary, the Dean may make an independent determination as to whether expedited review is necessary. Expedited review by the Dean is granted only in exceptional circumstances and is subject to the Dean's discretion. If the Dean determines that expedited review is necessary, the Dean shall transmit the submission materials, a written recommendation, and a notification that the matter was expedited to the URC within 7 business days of receipt of the submission materials.
   • c. The URC shall consist of the Executive Director for Grants, Research and Sponsored Programs, ex officio, a representative from University Counsel’s Office, and three faculty members.  The three faculty members will be appointed on an annual basis by the Division of Academic Affairs, and each faculty member will be appointed to a one-year term on the URC.  Each appointed faculty member must have demonstrated expertise in academic research, particularly while being affiliated with the University.  Each appointed faculty member must have been employed at the University for at least 5 years.   When a faculty member’s request has been received by the URC, the URC members will discuss the request and vote on whether to approve the request. Any URC member who has personal involvement or knowledge relating to the request shall recuse themselves from the vote.  If the URC votes on a request and cannot reach a majority due to the recusal of a committee member, the Division of Academic Affairs will appoint a faculty member with demonstrated expertise in academic research to participate in a second vote on the request.  The URC shall issue a written decision within sixty calendar days of receipt of the request unless the URC determines that expedited review is necessary.  If the URC has received a notification that the Dean determined that expedited review was necessary, the URC may make an independent determination as to whether expedited review is necessary.  Expedited review by the URC is granted only in exceptional circumstances and is subject to the URC’s discretion.    If the URC determines that expedited review is necessary, the URC shall issue a decision within fourteen business days of receipt of the submission materials.  The decision of the URC shall be final and binding. 
   • d. In the event a proposed contract or agreement is disapproved, an appeal may be made to the Provost and Senior Vice President.  Any appeal must be submitted to the Provost within fourteen calendar days of the URC’s decision.  Appeals must include all submission materials and all decisions made by the Chair, Dean, and URC.  The Provost shall issue a written decision on same within thirty calendar days of receipt of the appeal, unless the Provost has determined that expedited review is necessary. Expedited review by the Provost is granted only in exceptional circumstances and is subject to the Dean’s discretion.  If the Provost determines that expedited review is necessary, the Provost shall issue a decision within 7 business days of receipt of the appeal. 

Violations

To seek advice regarding application of the Code or to report a potential ethics violation, please contact:

Alice Blount-Fenney
University Chief Ethics Officer
New �鶹��ý City University
Hepburn 306
2039 Kennedy Boulevard
�鶹��ý City, NJ 07305-1597
(201) 200-2039
E-mail: CETraining@njcu.edu

University officials and employees may also directly request an advisory opinion from the SEC. The SEC also has jurisdiction to accept reports of potential violations of this Code, the Primary Code or the Conflicts Law. The SEC may be contacted at the address below.

State of New �鶹��ý
State Ethics Commission
28 West State Street, P.O. Box 082
Trenton, New �鶹��ý 08625-0082
(609) 292-1892
Website:
E-mail: ethics@ethics.state.nj.us

Violation of any of the terms of this policy may result in disciplinary action, up to and including termination of employment.  Additionally, violations of any of the terms of this policy may result in a referral to the SEC, who may impose any discipline, including but not limited to imposition of a fine or a prohibition on future public employment. 

Related Policies And Documents

• �鶹��ý Information for Visiting Scholars
• Procurement Services Policies and Procedures
• Procurement Services Policies and Reconfiguration

Responsibility

• Board of Trustees – The Board of Trustees authorizes the University to revise this policy as needed to comply with changes in statute, regulation, or executive order. Such changes, which are not a matter of University discretion, will not be required to be brought before the Board of Trustees for approval.
• Human Resources - All University officials and employees are responsible for complying with this policy.
• University Counsel’s Office will revise this policy as needed. 

Contact For Questions

University Chief Ethics Officer
(201) 200-2039