SB0420

SENATE BILL 420

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

Eric G. Griego

AN ACT

RELATING TO ETHICS; ENACTING THE STATE ETHICS COMMISSION ACT; CREATING THE STATE ETHICS COMMISSION; PROVIDING FOR AN EXECUTIVE DIRECTOR; PROVIDING FOR ANNUAL ETHICS TRAINING AND THE PUBLICATION OF ETHICS GUIDES; REQUIRING THE DEVELOPMENT OF A PROPOSED ETHICS CODE; PROVIDING FOR THE ISSUANCE OF ADVISORY OPINIONS; PROVIDING FOR THE FILING OF COMPLAINTS AGAINST STATE OFFICIALS, CANDIDATES, GOVERNMENT CONTRACTORS AND LOBBYISTS FOR ETHICS VIOLATIONS; PROVIDING FOR INVESTIGATIONS AND HEARINGS; GRANTING SUBPOENA POWERS; REQUIRING CONFIDENTIALITY; PROHIBITING RETALIATION; PROVIDING PENALTIES; MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 through 15 of this act may be cited as the "State Ethics Commission Act".

SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the State Ethics Commission Act:

A. "adjunct agency" means a state agency that is not assigned to a particular constitutional officer, that is excluded from any direct or administrative attachment to a department and that retains policymaking and administrative autonomy separate from any other agency of state government;

B. "candidate" means a person who seeks election to an office of the executive or legislative branch of the state government and who either has filed a declaration of candidacy or nominating petition or:

(1) for a non-statewide office, has received contributions or made expenditures of one thousand dollars ($1,000) or more or authorized another person or campaign committee to receive contributions or make expenditures of one thousand dollars ($1,000) or more for the purpose of seeking election to the office; or

(2) for a statewide office, has received contributions or made expenditures of two thousand five hundred dollars ($2,500) or more or authorized another person or campaign committee to receive contributions or make expenditures of two thousand five hundred dollars ($2,500) or more for the purpose of seeking election to the office or for candidacy exploration purposes in the years prior to the year of the election;

C. "commission" means the state ethics commission;

D. "commissioner" means a member of the commission;

E. "complainant" means a person who files a complaint with the commission;

F. "director" means the executive director of the commission;

G. "ethics violation" means a violation of the Gift Act; the Governmental Conduct Act; the Procurement Code; the Lobbyist Regulation Act; the Financial Disclosure Act; the Voter Action Act; Chapter 1, Article 19 NMSA 1978, including the Campaign Reporting Act; or any code of ethics adopted pursuant to those laws or Paragraph (7) of Subsection A of Section 5 of the State Ethics Commission Act;

H. "government contractor" means a person who has a contract with a state agency or who has submitted a competitive sealed proposal or competitive sealed bid for a contract with a state agency;

I. "legislative body" means the house of representatives or the senate;

J. "lobbying" means attempting to influence:

(1) a decision related to any matter to be considered or being considered by the legislative branch of state government or any legislative committee or to any legislative matter requiring action by the governor or awaiting action by the governor; or

(2) an official action;

K. "lobbyist" means a person who is compensated for the specific purpose of lobbying, who is designated by an interest group or organization to represent it on a substantial or regular basis for the purpose of lobbying or who, in the course of the person's employment, is engaged in lobbying on a substantial or regular basis. "Lobbyist" does not include:

(1) a person who appears on the person's own behalf in connection with legislation or an official action;

(2) an elected or appointed officer of the state, a political subdivision of the state or an Indian nation, tribe or pueblo who is acting in the officer's official capacity;

(3) a state employee or an employee of a political subdivision of the state, specifically designated by an elected or appointed officer, who appears before a legislative committee or in a rulemaking proceeding only to explain the effect of legislation or a rule on that employee's agency or political subdivision; provided that the elected or appointed officer files the designation with the secretary of state and makes it available for public inspection;

(4) a designated member of the staff of an elected state official; provided that the elected state official files the designation with the secretary of state and makes it available for public inspection;

(5) a legislator or legislative staff member;

(6) a witness called by a legislative committee or administrative agency to appear before it in connection with legislation or an official action;

(7) a person who provides only oral or written public testimony in connection with a legislative committee or in a rulemaking proceeding and whose name and the interest on behalf of which the person testifies have been clearly and publicly identified; or

(8) a publisher, owner or employee of the news media while gathering or disseminating news or editorial comment to the general public in the ordinary course of business;

L. "official action" means an official decision, recommendation, approval, disapproval, vote or other action by a state official that involves the use of discretionary authority;

M. "political party" means an entity that has complied with the provisions of Section 1-7-2 NMSA 1978;

N. "respondent" means a state official, candidate, government contractor or lobbyist who is the subject of a complaint filed with or by the commission;

O. "state agency" means any department, commission, council, board, committee, agency or instrumentality of the executive or legislative branch of the state or any adjunct agency of the state; and

P. "state official" means a person elected to an office of the executive or legislative branch of the state or a person holding one of the exempt positions in state government that are listed in Subsection A of Section 10-9-5 NMSA 1978.

SECTION 3. [NEW MATERIAL] STATE ETHICS COMMISSION

CREATED--MEMBERSHIP--TERMS--REMOVAL.--

A. The "state ethics commission" is created as an adjunct agency of the executive branch under the direction of five commissioners, who shall be appointed by the governor as follows:

(1) one commissioner to be appointed from a list of three nominees submitted by the speaker of the house of representatives;

(2) one commissioner to be appointed from a list of three nominees submitted by the minority floor leader of the house of representatives;

(3) one commissioner to be appointed from a list of three nominees submitted by the majority floor leader of the senate;

(4) one commissioner to be appointed from a list of three nominees submitted by the minority floor leader of the senate; and

(5) the chair of the commission to be appointed from a list of three retired judges submitted by the chief justice of the supreme court.

B. The nominating and appointing authorities shall give due regard to geographic representation and to the cultural diversity of the state.

C. The governor shall file letters of appointment with the secretary of state.

D. Commissioners shall be appointed for staggered terms of four years beginning July 1, 2011. The initial commissioners shall draw lots to determine which two commissioners serve an initial term of four years, which two commissioners serve an initial term of three years and which commissioner serves an initial term of one year; thereafter, all commissioners shall serve terms of four years. Members shall serve until their successors are appointed and qualified. A person shall not serve as a commissioner for more than two consecutive terms.

E. A vacancy on the commission shall be filled by appointment by the governor from a list of three nominees submitted from the nominating authority who originally nominated the commissioner who created the vacancy.

F. The commission shall meet as necessary to carry out its duties pursuant to the State Ethics Commission Act. Commissioners are entitled to receive per diem and mileage as provided in the Per Diem and Mileage Act and shall receive no other compensation, perquisite or allowance.

G. Three commissioners constitute a quorum for the transaction of business. No action shall be taken by the commission unless at least three members concur.

H. A commissioner may be removed only for incompetence, neglect of duty or malfeasance in office. A proceeding for the removal of a commissioner may be commenced by the commission or by the attorney general upon the request of the commission. The New Mexico supreme court has exclusive jurisdiction over proceedings to remove commissioners, and its decision shall be final. A commissioner shall be given notice of hearing and an opportunity to be heard before the commissioner is removed.

SECTION 4. [NEW MATERIAL] COMMISSIONERS--QUALIFICATIONS-- LIMITATIONS.--

A. To qualify for appointment to the commission, a person shall:

(1) be a resident of New Mexico; and

(2) have been a member of the same political party for at least three years prior to appointment or shall not have been a member of any political party for at least three years prior to appointment.

B. Before entering upon the duties of the office of commissioner, each commissioner shall review the State Ethics Commission Act and other laws and rules pertaining to the commission's responsibilities and to ethics and governmental conduct in New Mexico. Each commissioner shall take the oath of office as provided in Article 20, Section 1 of the constitution of New Mexico.

C. During a commissioner's tenure, a commissioner shall not:

(1) seek or hold an elective public office, an appointed public position or an office in a political party; or

(2) be a state employee, government contractor or lobbyist.

D. A commissioner who violates the provisions of Subsection C of this section is deemed to have resigned from the commission.

E. For a period of one calendar year following a commissioner's tenure or following the resignation or removal of a commissioner, the commissioner shall not:

(1) represent a respondent, unless appearing

on the commissioner's own behalf; or

(2) accept employment or otherwise provide services to a respondent unless the commissioner accepted employment or provided services prior to the filing of the complaint against the respondent.

SECTION 5. [NEW MATERIAL] COMMISSION--DUTIES AND POWERS.--

A. The commission shall:

(1) employ an executive director, who shall be an attorney;

(2) receive and investigate complaints alleging ethics violations against state officials, candidates, government contractors and lobbyists;

(3) hold hearings in appropriate cases to determine whether there has been an ethics violation;

(4) develop, adopt and promulgate the rules necessary to implement and administer the provisions of the State Ethics Commission Act;

(5) compile, index, maintain and provide public access to all advisory opinions and reports made public pursuant to the State Ethics Commission Act;

(6) conduct a review of the laws listed in Subsection G of Section 2 of the State Ethics Commission Act and submit to the legislature and the governor, on or before July 1, 2013, any recommendations the commission may have for amendment or revision of those laws;

(7) draft a proposed code of ethics for state officials and state employees and submit the proposed code to each elected state official and state agency for adoption;

(8) submit to the legislature and the governor, in December of each year, an annual report of the commission's activities, including any recommendations it may have regarding the State Ethics Commission Act or any of the laws listed in Subsection G of Section 2 of that act;

(9) compile, adopt, publish and make available to all state officials, candidates, government contractors and lobbyists an ethics guide that clearly and plainly explains the requirements of the laws listed in Subsection G of Section 2 of the State Ethics Commission Act; and

(10) offer annual ethics training to state officials, candidates, government contractors, lobbyists and other interested persons.

B. The commission may issue:

(1) subpoenas requiring the attendance of witnesses and the production of books, records, documents or other evidence relevant or material to an investigation; and

(2) advisory opinions to state officials, candidates, government contractors and lobbyists in accordance with the provisions of the State Ethics Commission Act.

SECTION 6. [NEW MATERIAL] EXECUTIVE DIRECTOR--

APPOINTMENT--DUTIES AND POWERS.--

A. The commission shall appoint an executive director who shall be knowledgeable about state ethics laws and who shall be appointed without reference to party affiliation and solely on the grounds of fitness to perform the duties of the office. The director shall hold office from the date of appointment until such time as the director is removed by the commission.

B. The director shall:

(1) take the oath of office required by Article 20, Section 1 of the constitution of New Mexico;

(2) perform investigations on behalf of the commission;

(3) bring complaints and investigation results before the commission for consideration;

(4) prepare an annual budget for the commission and submit it to the commission for approval;

(5) make recommendations to the commission of proposed rules or legislative changes needed to provide better administration of the State Ethics Commission Act; and

(6) perform other tasks as are required by the State Ethics Commission Act or as directed by the commission.

C. The director may:

(1) hire a general counsel for the commission and additional personnel as may be necessary to carry out the duties of the commission;

(2) enter into contracts and agreements on behalf of the commission;

(3) administer oaths and take depositions subject to the Rules of Civil Procedure for the District Courts; and

(4) initiate complaints alleging ethics violations against state officials, candidates, government contractors and lobbyists.

D. For a period of one calendar year immediately following the director's employment with the commission, the director shall not:

(1) represent a respondent, unless appearing on the director's own behalf; or

(2) accept employment or otherwise provide services to a respondent.

SECTION 7. [NEW MATERIAL] RECUSAL--DISQUALIFICATION.--

A. A commissioner shall recuse from and not participate in a commission proceeding in which the commissioner has a conflict of interest. The commissioner may state the reason for the recusal.

B. If the propriety of a commissioner's participation in a particular matter is questioned on the grounds that the commissioner has a conflict of interest, the commission may disqualify that commissioner from participation in the matter.

C. A recused or disqualified commissioner shall not participate in any proceeding related to the matter from which the commissioner is recused or disqualified, and the commissioner shall be excused from that portion of a meeting at which the matter is discussed.

D. If two or more commissioners have recused themselves or are disqualified from participating in a proceeding so that there is no longer a quorum, the remaining commissioners shall appoint temporary commissioners to participate in that proceeding. Appointments of temporary commissioners shall be made by the remaining commissioners in accordance with the qualifications required pursuant to Section 4 of the State Ethics Commission Act.

E. The commission shall promulgate rules for the recusal and disqualification of members and for the appointment of temporary commissioners.

SECTION 8. [NEW MATERIAL] ADVISORY OPINIONS.--

A. The commission may issue advisory opinions on matters related to ethics. Advisory opinions shall:

(1) be requested in writing by a state official, candidate, government contractor or lobbyist;

(2) identify a specific set of circumstances involving an ethics issue;

(3) be issued within sixty days of receipt of the request unless the commission notifies the requester of a delay in issuance and continues to notify the requester every thirty days until the advisory opinion is issued; and

(4) be published after omitting the requester's name and identifying information.

B. A request for an advisory opinion shall be confidential and not subject to the provisions of the Inspection of Public Records Act.

C. Unless amended or revoked, an advisory opinion shall be binding on the commission in any subsequent commission proceedings concerning a person who acted in good faith and in reasonable reliance on the advisory opinion.

SECTION 9. [NEW MATERIAL] COMPLAINTS--INVESTIGATIONS-- SUBPOENAS.--

A. A complaint of an alleged ethics violation committed by a state official, candidate, government contractor or lobbyist may be:

(1) filed with the commission by a person who

has actual knowledge of the alleged ethics violation; or

(2) initiated by the director upon receipt of evidence establishing sufficient cause to warrant an investigation of whether the respondent's conduct constitutes an ethics violation.

B. The complaint shall be signed under penalty of false statement and shall set forth in detail the specific charges against the state official, candidate, government contractor or lobbyist and the factual allegations that support the charges. The complainant shall submit any evidence the complainant has that supports the complaint. Evidence may include documents, records and names of witnesses. The commission shall prescribe the forms on which complaints are to be filed.

C. The director shall promptly bring all complaints before the commission and make recommendations to the commission as to whether the conduct alleged in the complaint is within the jurisdiction of the commission and warrants investigation.

D. The commission shall promptly dismiss complaints that are frivolous or outside the jurisdiction of the commission. If the commission dismisses a complaint pursuant to this subsection, the director shall promptly notify the complainant and the respondent.

E. If the complaint is not dismissed pursuant to Subsection D of this section, the director shall proceed to investigate the complaint. The director shall promptly notify the respondent that a complaint has been filed and is being investigated and shall notify the respondent of the specific allegations in the complaint and the specific ethics violations implicated by the complaint.

F. As part of an investigation, the director may administer oaths, interview witnesses and examine books, records, documents and other evidence reasonably related to the complaint. If the director determines that a subpoena is necessary to obtain the testimony of any person or the production of books, records, documents or other evidence, the director shall ask the commission to issue a subpoena. The commission may issue a subpoena to compel the attendance of witnesses and to require the production of any books, records, documents or other evidence that it deems relevant or material to an investigation. Any challenge to a subpoena shall be heard and resolved by a district court. If a person refuses to comply with a subpoena, the commission may petition a district court to compel compliance.

SECTION 10. [NEW MATERIAL] STATUS OF INVESTIGATION--TIME LIMITATIONS.--

A. A complaint shall be investigated as promptly as practicable. If an investigation has not been concluded and a report issued within ninety days after the complaint is received or initiated, the director shall render a written report to the commission on the progress and status of the investigation. The commission may at that time dismiss the complaint or instruct the director to continue investigating the complaint. Unless the commission dismisses the complaint, the director shall report to the commission every ninety days thereafter on the progress and status of the investigation.

B. Upon dismissal or a decision to continue an

investigation of a complaint, the commission shall notify the complainant and respondent in writing of its action.

SECTION 11. [NEW MATERIAL] REPORT--HEARING--FINDINGS AND CONCLUSIONS--DISCLOSURE OF ETHICS VIOLATION.--

A. The director shall provide a written report of the investigation to the commission and to the complainant and respondent. As soon as practicable after receiving the report, the commission shall decide whether there is sufficient cause to proceed with a hearing on the complaint. If the commission does not find sufficient cause, it shall dismiss the complaint. If the commission finds sufficient cause, it shall schedule a public hearing on the complaint. The director shall notify the complainant and the respondent of the commission's decision and of the date, time and place of any hearing scheduled.

B. At the public hearing, the commission has the power to administer oaths. The complainant and the respondent have the right to be represented by counsel and to present evidence and examine and cross-examine witnesses. The respondent shall be afforded due process at the hearing.

C. After hearing and consideration of all the evidence, if the commission finds by a preponderance of the evidence for a civil violation or beyond a reasonable doubt for a criminal violation that the respondent's conduct constituted an ethics violation, the commission shall issue a written report that shall include findings of fact and conclusions of law. The report may include a public reprimand or censure or recommendations for disciplinary action against the respondent. The commission shall publish the report and provide it, along with all evidence collected during its investigation, to the complainant, the respondent, the attorney general and the:

(1) appropriate legislative body if the respondent is a member of the legislature;

(2) house of representatives if the respondent is a state official elected to an office of the executive branch;

(3) respondent's appointing authority if the respondent is a person holding one of the exempt positions in state government that are listed in Subsection A of Section 10-9-5 NMSA 1978;

(4) secretary of state if the respondent is a candidate;

(5) state agency with which the respondent has a government contract if the respondent is a government contractor; or

(6) respondent's employer and clients and the secretary of state if the respondent is a lobbyist.

D. If, after consideration of all the evidence, the commission does not find by a preponderance of the evidence that the respondent's conduct constituted an ethics violation, the commission shall dismiss the complaint and provide notice of the dismissal to the respondent and complainant. A notice issued pursuant to this subsection shall be made public.

E. The commission shall promulgate rules establishing procedures for hearings.

SECTION 12. [NEW MATERIAL] CONFIDENTIALITY OF RECORDS.--

A. Complaints, reports, files, records and communications collected or generated by the commission or its director that pertain to alleged ethics violations shall not be disclosed by the commission and are not subject to the Inspection of Public Records Act until:

(1) the respondent files with the commission a written waiver of confidentiality;

(2) the commission decides that there is sufficient cause to proceed with a hearing on the complaint pursuant to Section 11 of the State Ethics Commission Act;

(3) the date that a matter is referred to the attorney general pursuant to Section 13 of the State Ethics Commission Act; or

(4) sixty days after the commission dismisses a complaint pursuant to Section 9, 10 or 11 of the State Ethics Commission Act.

B. No personal or professional financial records of the respondent shall be disclosed when a complaint has been dismissed.

C. A member of the commission, the director or a commission employee or agent may disclose information to the extent necessary to pursue an investigation.

SECTION 13. [NEW MATERIAL] CRIMINAL VIOLATIONS-- REFERRAL.--If the commission finds at any time that the respondent's conduct amounts to a criminal violation, the commission may refer the matter to the attorney general or an appropriate district attorney. The commission shall provide the attorney general or district attorney with all evidence collected during its investigation that may be used in a criminal proceeding. Nothing in this section prevents the commission from taking any action otherwise authorized by the State Ethics Commission Act or deciding to hold a matter in abeyance pending resolution of any criminal charges.

SECTION 14. [NEW MATERIAL] LIMITATIONS ON JURISDICTION.--

A. The commission shall not accept or consider a complaint unless it is filed or initiated within three years from the date on which the complainant discovered or reasonably should have discovered the facts constituting the alleged ethics violation.

B. The commission shall not investigate allegations of misconduct based on the content of campaign advertisements.

SECTION 15. [NEW MATERIAL] PROHIBITED ACTIONS.--

A. A person shall not take or threaten to take any retaliatory, disciplinary or other adverse action against another person who in good faith:

(1) files a complaint with the commission alleging an ethics violation against a state official, candidate, government contractor or lobbyist; or

(2) provides testimony, records, documents or other information to the commission during an investigation or at a hearing conducted pursuant to the State Ethics Commission Act.

B. Nothing in the State Ethics Commission Act precludes civil actions or criminal sanctions for libel or slander or other civil or criminal actions against a person who files a false claim under that act.

SECTION 16. Section 10-15-1 NMSA 1978 (being Laws 1974, Chapter 91, Section 1, as amended) is amended to read:

"10-15-1. FORMATION OF PUBLIC POLICY--PROCEDURES FOR OPEN MEETINGS--EXCEPTIONS AND PROCEDURES FOR CLOSED MEETINGS.--

A. In recognition of the fact that a representative government is dependent upon an informed electorate, it is declared to be public policy of this state that all persons are entitled to the greatest possible information regarding the affairs of government and the official acts of those officers and employees who represent them. The formation of public policy or the conduct of business by vote shall not be conducted in closed meeting. All meetings of any public body except the legislature and the courts shall be public meetings, and all persons so desiring shall be permitted to attend and listen to the deliberations and proceedings. Reasonable efforts shall be made to accommodate the use of audio and video recording devices.

B. All meetings of a quorum of members of any board, commission, administrative adjudicatory body or other policymaking body of any state agency or any agency or authority of any county, municipality, district or [any] political subdivision, held for the purpose of formulating public policy, including the development of personnel policy, rules, regulations or ordinances, discussing public business or [for the purpose of] taking any action within the authority of or the delegated authority of any board, commission or other policymaking body, are declared to be public meetings open to the public at all times, except as otherwise provided in the constitution of New Mexico or the Open Meetings Act. No public meeting once convened that is otherwise required to be open pursuant to the Open Meetings Act shall be closed or dissolved into small groups or committees for the purpose of permitting the closing of the meeting.

C. If otherwise allowed by law or rule of the public body, a member of a public body may participate in a meeting of the public body by means of a conference telephone or other similar communications equipment when it is otherwise difficult or impossible for the member to attend the meeting in person, provided that each member participating by conference telephone can be identified when speaking, all participants are able to hear each other at the same time and members of the public attending the meeting are able to hear any member of the public body who speaks during the meeting.

D. Any meetings at which the discussion or adoption of any proposed resolution, rule, regulation or formal action occurs and at which a majority or quorum of the body is in attendance, and any closed meetings, shall be held only after reasonable notice to the public. The affected body shall determine at least annually in a public meeting what notice for a public meeting is reasonable when applied to that body. That notice shall include broadcast stations licensed by the federal communications commission and newspapers of general circulation that have provided a written request for such notice.

E. A public body may recess and reconvene a meeting to a day subsequent to that stated in the meeting notice if, prior to recessing, the public body specifies the date, time and place for continuation of the meeting and, immediately following the recessed meeting, posts notice of the date, time and place for the reconvened meeting on or near the door of the place where the original meeting was held and in at least one other location appropriate to provide public notice of the continuation of the meeting. Only matters appearing on the agenda of the original meeting may be discussed at the reconvened meeting.

F. Meeting notices shall include an agenda containing a list of specific items of business to be discussed or transacted at the meeting or information on how the public may obtain a copy of such an agenda. Except in the case of an emergency, the agenda shall be available to the public at least twenty-four hours prior to the meeting. Except for emergency matters, a public body shall take action only on items appearing on the agenda. For purposes of this subsection, [an] "emergency" refers to unforeseen circumstances that, if not addressed immediately by the public body, will likely result in injury or damage to persons or property or substantial financial loss to the public body.

G. The board, commission or other policymaking body shall keep written minutes of all its meetings. The minutes shall include at a minimum the date, time and place of the meeting, the names of members in attendance and those absent, the substance of the proposals considered and a record of any decisions and votes taken that show how each member voted. All minutes are open to public inspection. Draft minutes shall be prepared within ten working days after the meeting and shall be approved, amended or disapproved at the next meeting where a quorum is present. Minutes shall not become official until approved by the policymaking body.

H. The provisions of Subsections A, B and G of this section do not apply to:

(1) meetings pertaining to issuance, suspension, renewal or revocation of a license, except that a hearing at which evidence is offered or rebutted shall be open. All final actions on the issuance, suspension, renewal or revocation of a license shall be taken at an open meeting;

(2) limited personnel matters; provided that for purposes of the Open Meetings Act, "limited personnel matters" means the discussion of hiring, promotion, demotion, dismissal, assignment or resignation of or the investigation or consideration of complaints or charges against any individual public employee; provided further that this [subsection] paragraph is not to be construed as to exempt final actions on personnel from being taken at open public meetings, nor does it preclude an aggrieved public employee from demanding a public hearing. Judicial candidates interviewed by any commission shall have the right to demand an open interview;

(3) deliberations by a public body in connection with an administrative adjudicatory proceeding. For purposes of this paragraph, [an] "administrative adjudicatory proceeding" means a proceeding brought by or against a person before a public body in which individual legal rights, duties or privileges are required by law to be determined by the public body after an opportunity for a trial-type hearing. Except as otherwise provided in this section, the actual administrative adjudicatory proceeding at which evidence is offered or rebutted and any final action taken as a result of the proceeding shall occur in an open meeting;

(4) the discussion of personally identifiable information about any individual student, unless the student [his] or the student's parent or guardian requests otherwise;

(5) meetings for the discussion of bargaining strategy preliminary to collective bargaining negotiations between the policymaking body and a bargaining unit representing the employees of that policymaking body and collective bargaining sessions at which the policymaking body and the representatives of the collective bargaining unit are present;

(6) that portion of meetings at which a decision is made concerning purchases in an amount exceeding two thousand five hundred dollars ($2,500) that can be made only from one source and that portion of meetings at which the contents of competitive sealed proposals solicited pursuant to the Procurement Code are discussed during the contract negotiation process. The actual approval of purchase of the item or final action regarding the selection of a contractor shall be made in an open meeting;

(7) meetings subject to the attorney-client privilege pertaining to threatened or pending litigation in which the public body is or may become a participant;

(8) meetings for the discussion of the purchase, acquisition or disposal of real property or water rights by the public body;

(9) those portions of meetings of committees or boards of public hospitals where strategic and long-range business plans or trade secrets are discussed; [and]

(10) that portion of a meeting of the gaming control board dealing with information made confidential pursuant to the provisions of the Gaming Control Act; and

(11) meetings of the state ethics commission relating to complaints or investigations of alleged ethics violations, except that hearings held pursuant to Section 11 of the State Ethics Commission Act are public and are subject to the provisions of Subsections A, B and G of this section.

I. If any meeting is closed pursuant to the exclusions contained in Subsection H of this section [the closure]:

(1) the closure, if made in an open meeting, shall be approved by a majority vote of a quorum of the policymaking body; the authority for the closure and the subject to be discussed shall be stated with reasonable specificity in the motion calling for the vote on a closed meeting; the vote shall be taken in an open meeting; and the vote of each individual member shall be recorded in the minutes. Only those subjects announced or voted upon prior to closure by the policymaking body may be discussed in a closed meeting; [and] or

(2) if a closure is called for when the policymaking body is not in an open meeting, the closed meeting shall not be held until public notice, appropriate under the circumstances, stating the specific provision of the law authorizing the closed meeting and stating with reasonable specificity the subject to be discussed is given to the members and to the general public.

J. Following completion of any closed meeting, the minutes of the open meeting that was closed or the minutes of the next open meeting if the closed meeting was separately scheduled shall state that the matters discussed in the closed meeting were limited only to those specified in the motion for closure or in the notice of the separate closed meeting. This statement shall be approved by the public body under Subsection G of this section as part of the minutes."

SECTION 17. TEMPORARY PROVISION--REPORT ON EXTENSION OF STATE ETHICS COMMISSION JURISDICTION TO LOCAL GOVERNMENTS.--By January 1, 2013, the state ethics commission shall submit a report to the legislature and the governor regarding the extension of commission jurisdiction to elected and appointed officials and employees of political subdivisions of the state. The report shall include and make recommendations on:

A. a detailed plan formulated by the commission for implementation of an extension of its jurisdiction, including a proposed time line;

B. the estimated number of additional employees and the amount and type of resources needed by the commission to carry out its powers and duties if its jurisdiction were extended;

C. estimated budget increases and the estimated annual budget for the commission if its jurisdiction were extended; and

D. any changes needed to existing law.

SECTION 18. APPROPRIATION.--Three hundred fifty thousand dollars ($350,000) is appropriated from the general fund to the state ethics commission for expenditure in fiscal year 2012 to carry out the provisions of the State Ethics Commission Act. Any unexpended or unencumbered balance remaining at the end of fiscal year 2012 shall revert to the general fund.

SECTION 19. SEVERABILITY.--If any part or application of this act is held invalid, the remainder or its application to other situations or persons shall not be affected.

SECTION 20. APPLICABILITY.--The provisions of the State Ethics Commission Act apply to conduct that occurs on or after July 1, 2011.

SECTION 21. EFFECTIVE DATE.--

A. The effective date of the provisions of Sections 1 through 7 and 12 through 20 of this act is July 1, 2011.

B. The effective date of the provisions of Sections 8 through 11 of this act is January 1, 2012.

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