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NORTH CAROLINA STATUTES AND CODES

§ 136-14. Members not eligible for other employment with Department; no sales to Department by employees; members not to sell or trade property with Department; profiting from official position; misus

§136‑14.  Members not eligible for other employment with Department; nosales to Department by employees; members not to sell or trade property withDepartment; profiting from official position; misuse of confidentialinformation by Board members.

(a)        No Board membershall be eligible to any other employment in connection with the Department.

(b)        No Board member orany salaried employee of the Department shall furnish or sell any supplies ormaterials, directly or indirectly, to the Department.

(c)        No Board membershall, directly or indirectly, engage in any transaction involving the sale ofor trading of real or personal property with the Department.

(d)        No Board membershall profit in any manner by reason of the Board member's official action orofficial position, except to receive salary, fees and allowances as by lawprovided.

(e)        No Board membershall take any official action or use the Board member's official position toprofit in any manner the Board member's immediate family, a business with whichthe Board member or the Board member's immediate family has a businessassociation, or a client of the Board member or the Board member's immediatefamily with whom the Board member, or the Board member's immediate family, hasan existing business relationship for matters before the Board.

(f)         No Board membershall attempt to profit from a proposed project of the Department if the profitis greater than that which would be realized by other persons living in thearea where the project is located. If the profit under this subsection would begreater for the Board member than other persons living in the area where theproject is located not only shall the member abstain from voting on that issue,but once the conflict of interest is apparent, the member shall not discuss theproject with any other Board member or other officer or employee of theDepartment except to state that a conflict of interest exists. Under thissubsection a Board member is presumed to profit if the profit would be realizedby a Board member's immediate family, a business with which the Board member orthe Board member's immediate family has a business association, or a client ofthe Board member or the Board member's immediate family with whom the Boardmember, or the Board member's immediate family, has an existing businessrelationship for matters before the Board. Violation of this subsection shallbe a Class I felony.

(g)        No Board member, incontemplation of official action by the Board member, by the Board, or inreliance on information that was made known to the Board member in the Boardmember's official capacity and that has not been made public, shall commit anyof the following acts:

(1)        Acquire a pecuniaryinterest in any property, transaction, or enterprise or gain any pecuniary benefitthat may be affected by such information or official action; or

(2)        Intentionally aidanother to do any of the above acts.

(h)        As used in thissection, the following terms mean:

(1)        "Board". –The Board of Transportation.

(2)        "Boardmember". – A member of the Board of Transportation.

(3)        "Businessassociation". – A director, employee, officer, or partner of a businessentity, or owner of more than ten percent (10%) interest in any businessentity.

(4)        "Department".– The Department of Transportation.

(5)        "Immediatefamily". – Spouse, children, parents, brothers, and sisters.

(6)        "Officialaction". – Actions taken while a Board member related to or in connectionwith the person's duties as a Board member including, but not limited to,voting on matters before the Board, proposing or objecting to proposals fortransportation actions by the Department or the Board, discussingtransportation matters with other Board members or Department staff oremployees in an effort to further the matter after the conflict of interest hasbeen discovered, or taking actions in the course and scope of the position as aBoard member and actions leading to or resulting in profit.

(7)        "Profit".– Receive monetary or economic gain or benefit, including an increase in valuewhether or not recognized by sale or trade.

(i)         Except asotherwise provided in this section, a violation of this section shall be aClass H felony which may include a fine of not more than twenty thousanddollars ($20,000), or three times the value of the transaction, whicheveramount is greater. (1933, c. 172, s. 10; 1957, c. 65, s. 11; 1965, c. 55,s. 9; 1973, c. 507, s. 8; 1975, c. 716, s. 7; 1977, c. 464, ss. 7.1, 10.2;1979, ch. 298, s. 3; 1985, c. 689, s. 28; 1993, c. 539, s. 1309; 1994, Ex.Sess., c. 24, s. 14(c); 1998‑169, s. 4.)

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