25.0458.03000
Sixty-ninth
Legislative Assembly
of North Dakota
Introduced by
Representative Lefor
Senator Hogue
A BILL for an Act to create and enact a new section to chapter 54-03 and two new sections to
chapter 54-66 of the North Dakota Century Code, relating to immunity from criminal prosecution
and an affirmative defense for individuals voting on legislation, closure of a matter and issuance
of guidance by the ethics commission, and the discretionary referral of an investigation to an
outside attorney or investigator by the ethics commission's executive director; to amend and
reenact sections 12.1-13-02 and 54-66-01, subsection 2 of section 54-66-04, and sections
54-66-12 and 54-66-18 of the North Dakota Century Code, relating to immunity from criminal
prosecution when adhering to legislative rules, definitions related to state government ethics,
confidential records related to an alleged violation of an ethics law or rule, and conflicts of
interest in the legislative assembly; to repeal sections 54-66-05, 54-66-06, 54-66-07, 54-66-08,
54-66-09, and 54-66-10 of the North Dakota Century Code, relating to the complaint process of
the ethics commission; and to declare an emergency.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. AMENDMENT. Section 12.1-13-02 of the North Dakota Century Code is
amended and reenacted as follows:
12.1-13-02. Speculating or wagering on official action or information.
1.A personAn individual is guilty of a class A misdemeanor if during employment as a
public servant, or within one year thereafter, in contemplation of official action by
himselfthe individual as a public servant or by a government agency with which hethe
individual is or has been associated as a public servant, or in reliance on information
to which hethe individual has or had access only in histhe individual's capacity as a
public servant, hethe individual:
a.Acquires a pecuniary interest in any property, transaction, or enterprise which
may be affected by suchthe information or official action;
Page No. 1 25.0458.03000
HOUSE BILL NO. 1277
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24 Sixty-ninth
Legislative Assembly
b.Speculates or wagers on the basis of suchthe information or official action; or
c.Aids another individual to do any of the foregoing.
2.A personAn individual is guilty of a class A misdemeanor if as a public servant hethe
individual takes official action which is likely to benefit himthe individual as a result of
an acquisition of a pecuniary interest in any property, transaction, or enterprise, or of a
speculation or wager, which hethe individual made, or caused or aided another to
make, in contemplation of suchthe official action.
3.An individual is immune from prosecution under this section if:
a.The individual was a member of the legislative assembly at the time the official
action was taken;
b.The official action was a vote on a measure in the senate or house of
representatives; and
c.The individual adhered to legislative rules requiring an individual to disclose a
personal or private interest to the member's respective chamber of the legislative
assembly, the president of the senate, or the speaker of the house.
SECTION 2. A new section to chapter 54-03 of the North Dakota Century Code is created
and enacted as follows:
Voting on legislation - Immunity - Affirmative defense.
If an individual who is a member of the legislative assembly adheres to:
1.Legislative rules requiring an individual to disclose a personal or private interest to the
member's respective chamber of the legislative assembly, the president of the senate,
or the speaker of the house, the individual is immune from criminal prosecution under
the laws of this state for an offense arising from the individual voting on a measure in
the senate or house of representatives.
2.Informal advice from a staff member of the ethics commission , reliance on the advice
is an affirmative defense in a prosecution for an offense arising from the individual
voting on a measure in the senate or house of representatives.
SECTION 3. AMENDMENT. Section 54-66-01 of the North Dakota Century Code is
amended and reenacted as follows:
54-66-01. Definitions.
As used in this chapter, unless the context otherwise requires:
Page No. 2 25.0458.03000
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31 Sixty-ninth
Legislative Assembly
1."Accused individual" means a lobbyist, public official, candidate for public office,
political committee, or contributor who is alleged to have violated article XIV of the
Constitution of North Dakota, this chapter, or another law or rule regarding
transparency, corruption, elections, or lobbying.
2."Complainant" means an individual who, in writing or verbally, submits a complaint to
the commission and is:
a.A North Dakota resident;
b.Subject to licensing by a state agency or other public official subject to the
jurisdiction of the ethics commission; or
c.A party to a quasi-judicial proceeding before a state agency or other public official
subject to the jurisdiction of the ethics commission.
3."Complaint" means a verbal or written allegation to the commission that a lobbyist,
public official, candidate for public office, political committee, or contributor has
violated article XIV of the Constitution of North Dakota, this chapter, or another law or
rule regarding transparency, corruption, elections, or lobbying."Alleged violation"
means a formal written allegation issued by a majority vote of the commission alleging
a regulated individual engaged in an ethical violation.
2."Enforcement action" means an investigation and proceeding before the commission
pursuant to section 3 of article XIV of the Constitution of North Dakota regarding an
alleged violation by a regulated individual.
3."Ethical violation" means a violation of article XIV of the Constitution of North Dakota,
chapter 54 - 66, or another law or rule regarding transparency, corruption, elections, or
lobbying by a regulated individual.
4."Ethics commission" or "commission" means the North Dakota ethics commission
established by article XIV of the Constitution of North Dakota.
5."Final commission order" means a written order issued by a majority vote of the
commission finding an ethical violation after:
a.The time to file a petition for rehearing before the commission has expired;
b.The commission has denied a petition for rehearing; or
c.The commission has affirmed the finding of an ethical violation after rehearing.
Page No. 3 25.0458.03000
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30 Sixty-ninth
Legislative Assembly
6."Gift" means any item, service, or thing of value not given in exchange for fair market
consideration including travel and recreation, except:
a.Purely informational material;
b.A campaign contribution; and
c.An item, service, or thing of value given under conditions that do not raise ethical
concerns, as set forth in rules adopted by the ethics commission, to advance
opportunities for state residents to meet with public officials in educational and
social settings in the state.
6.7."Influence state government action" means promoting or opposing the adoption of a
rule by an administrative agency or the commission under chapter 28-32.
7.8."Lobby" means an activity listed in subsection 1 of section 54-05.1-02.
8.9."Lobbyist" means an individual required to register under section 54-05.1-03.
9.10."Public official" means an elected or appointed official of the state's executive or
legislative branch, members of the commission, members of the governor's cabinet,
and employees of the legislative branch.
10."Receives the complaint" means one or more members of the commission learn of the
complaint.
11."Regulated individual" means a lobbyist, public official, candidate for public office,
political committee, or contributor.
12."Relevant information" means facts provided to the commission asserting a regulated
individual engaged in an ethical violation.
13."Respondent" means a regulated individual who is the subject of an alleged violation.
14."Ultimate and true source" means the person that knowingly contributed over two
hundred dollars solely to lobby or influence state government action.
SECTION 4. AMENDMENT. Subsection 2 of section 54-66-04 of the North Dakota Century
Code is amended and reenacted as follows:
2.Unless the complaint at issue has resulted in the imposition of a penalty or referral for
enforcement under section 54-66-09, any portion of a meeting during which
commission members discuss complaints, informal resolutions, attempts to informally
resolve complaints, investigations, or referrals under this chapter, the identity of an
Page No. 4 25.0458.03000
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30 Sixty-ninth
Legislative Assembly
accused individual or complainant, or any other matter arising from a complaint are
closed meetings.
SECTION 5. A new section to chapter 54-66 of the North Dakota Century Code is created
and enacted as follows:
Issuance of alleged violation - Closure of the matter - Guidance.
Upon completion of an informal investigation, the executive director shall close the matter or
prepare a request to the commission to issue an alleged violation. Upon closure of the matter,
the executive director may issue a guidance letter. The executive director may close the matter
at any time during the enforcement action.
SECTION 6. A new section to chapter 54-66 of the North Dakota Century Code is created
and enacted as follows:
Investigation - Referral.
With the permission of the commission, the executive director may refer a formal
investigation to an outside attorney or investigator in lieu of the executive director completing
the investigation.
SECTION 7. AMENDMENT. Section 54-66-12 of the North Dakota Century Code is
amended and reenacted as follows:
54-66-12. Confidential information.
1.The following information is a confidential record as defined in section 44-04-17.1,
unless the commission has determined the accused individual violated article XIV of
the Constitution of North Dakota, this chapter, or another law or rule regarding
transparency, corruption, elections, or lobbying,issued a final commission order and a
court affirmed the determinationfinal commission order, if appealed, except the
information may be disclosed as required by law or as necessary to conduct an
investigation arising from a complaintduring an enforcement action:
a.Relevant information submitted to the commission by an individual;
b.Information prepared for the commission to determine whether to issue an
alleged violation;
c.Information revealing the contents of a complaintan alleged violation;
b.d.Information that reasonably may be used to identify an accused individuala
respondent; and
Page No. 5 25.0458.03000
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31 Sixty-ninth
Legislative Assembly
c.e.Information relating to or created as part of an investigation of a complaintan
alleged violation.
2.If a complaint is informally resolved under section 54-66-07, the following information
is a confidential record as defined in section 44-04-17.1:
a.Information revealing the contents of the complaint;
b.Information that reasonably may be used to identify the accused individual;
c.Information relating to or created as part of the process leading to the informal
resolution; and
d.Information revealing the informal resolution.
3.Information that reasonably may be used to identify the complainantan individual who
provides relevant information to the commission is confidential unless the
complainantindividual waives confidentiality, authorizes its disclosure, or divulges
information that reasonably would identify the complainantindividual. Information,
including evidence under consideration by the investigator or commission, deemed
confidential under this subsection may be disclosed as required by law or as
necessary to conduct an investigation arising from a complaint to include disclosure of
evidence being considered to an accused individuala respondent.
4.3.The information deemed confidential in subsections 1 and 2subsection 1 may be
disclosed by the individual who provides relevant information to the commission, the
respondent, and the ethics commission if the accused individualrespondent agrees to
the disclosure.
4.The commission may disclose the information deemed confidential in subsection 1 to
an entity with appropriate enforcement authority.
SECTION 8. AMENDMENT. Section 54-66-18 of the North Dakota Century Code is
amended and reenacted as follows:
54-66-18. Conflicts of interest - Legislative assembly.
1.Each legislative assembly shall adopt conflict of interest rules. The rules must:
a.Require the disclosure by a member of a potential conflict of interest relating to
any bill in which the member may have a direct, unique, substantial, orand
individual interest.
Page No. 6 25.0458.03000
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30 Sixty-ninth
Legislative Assembly
b.Ensure a mechanism is in place to record each disclosure and make it readily
available to the public.
2.If the legislative assembly adopts rules under subsection 1 which are at least as
restrictive as the conflict of interest rules adopted by the ethics commission, the
disclosure process portion of the conflict of interest rules adopted by the ethics
commission may not apply to members of the legislative assembly.
SECTION 9. REPEAL. Sections 54-66-05, 54-66-06, 54-66-07, 54-66-08, 54-66-09, and
54-66-10 of the North Dakota Century Code are repealed.
SECTION 10. EMERGENCY. This Act is declared to be an emergency measure.
Page No. 7 25.0458.03000
1
2
3
4
5
6
7
8
9