North Carolina § 138A-3 - Definitions.

§ 138A-3. Definitions.

The following definitions apply in this Chapter: Blind trust. - A trust established by or for the benefit of a covered person or a member of the covered person's immediate family for divestiture of all control and knowledge of assets. A trust qualifies as a blind trust under this subdivision if the covered person or a member of the covered person's immediate family has no knowledge of the holdings and sources of income of the trust, the trustee of the trust is independent of and not associated with or employed by the covered person or a member of the covered person's immediate family and is not a member of the covered person's extended family, and the trustee has sole discretion as to the management of the trust assets. Association. Business trust. Corporation. Enterprise. Joint venture. Organization. Partnership. Proprietorship. Vested trust. Every other business interest, including ownership or use of land for income. The covered person, filing person, or a member of the covered person's or filing person's immediate family neither exercises nor has the ability to exercise control over the financial interests held by the fund. The fund is publicly traded, or the fund's assets are widely diversified. Food or beverages for immediate consumption. Donations to a religious organization, charity, the State or a political subdivision of the State, not to exceed a total of two hundred dollars ($200.00) per death per donor. For the Community College System, the voting members of the State Board of Community Colleges, the President and the chief financial officer of the Community College System, the president, chief financial officer, and chief administrative officer of each community college, and voting members of the boards of trustees of each community college. Members of the State Board, the executive director, and the assistant executive director of the State Board. Individuals under contract with the State working in or against a position included under this subdivision. The director of the Office of State Human Resources. The State Controller. The State Chief Information Officer, deputy chief information officers, chief financial officers, and general counsel of the Department of Information Technology. The director of the State Museum of Art. Repealed by Session Laws 2021-90, s. 2(b), effective July 22, 2021. The Commissioner of Motor Vehicles. The Commissioner of Banks and the chief deputy commissioners of the Banking Commission. The executive director of the North Carolina Housing Finance Agency. The executive director, chief financial officer, and chief operating officer of the North Carolina Turnpike Authority. (3) Board. - Any State board, commission, council, committee, task force, authority, or similar public body, however denominated, created by statute or executive order, as determined and designated by the Commission, except for those public bodies that have only advisory authority. (5) Business. - Any of the following organized for profit: (7) Business with which associated. - A business in which the covered person or filing person or any member of that covered person's or filing person's immediate family does any of the following: a. Is an employee. b. Holds a position as a director, officer, partner, proprietor, or member or manager of a limited liability company, irrespective of the amount of compensation received or the amount of the interest owned. c. Owns a legal, equitable, or beneficial interest of ten thousand dollars ($10,000) or more in the business or five percent (5%) of the business, whichever is less, other than as a trustee on a deed of trust. d. Is a lobbyist registered under Chapter 120C of the General Statutes. For purposes of this subdivision, the term "business" shall not include a widely held investment fund, including a mutual fund, regulated investment company, or pension or deferred compensation plan, if all of the following apply: (9) Commission. - The State Ethics Commission. (11) Committee. - The Legislative Ethics Committee as created in Part 3 of Article 14 of Chapter 120 of the General Statutes. (13) Compensation. - Any money, thing of value, or economic benefit conferred on or received by any covered person or filing person in return for services rendered or to be rendered by that covered person or filing person or another. This term does not include campaign contributions properly received and, reported as required by Article 22A of Chapter 163 of the General Statutes. (15) Confidential information. - Information defined as confidential by the law. (17) Constitutional officers of the State. - Officers whose offices are established by Article III of the North Carolina Constitution. (19) Contract. - Any agreement, including sales and conveyances of real and personal property, and agreements for the performance of services. (21) Covered person. - A legislator, public servant, or judicial officer, as identified by the Commission under G.S. 138A-11. (23) Employing entity. - For public servants, any of the following bodies of State government of which the public servant is an employee or a member, or over which the public servant exercises supervision: agencies, authorities, boards, commissions, committees, councils, departments, offices, institutions and their subdivisions, and constitutional offices of the State. For legislators, it is the house of which the legislator is a member. For legislative employees, it is the authority that hired the individual. For judicial employees, it is the Chief Justice. (25) Extended family. - Spouse, lineal descendant, lineal ascendant, sibling, spouse's lineal descendant, spouse's lineal ascendant, spouse's sibling, and the spouse of any of these individuals. (27) Filing person. - An individual required to file a statement of economic interest under G.S. 138A-22. (28), (29) Reserved for future codification purposes. (30) Financial benefit. - A direct pecuniary gain or loss to the legislator, the public servant, or a person with which the legislator or public servant is associated, or a direct pecuniary loss to a business competitor of the legislator, the public servant, or a person with which the legislator or public servant is associated. (32) Gift. - Anything of monetary value given or received without valuable consideration by or from a lobbyist, lobbyist principal, liaison personnel, or a person described under G.S. 138A-32(d)(1), (2), or (3). The following shall not be considered gifts under this subdivision: a. Anything for which fair market value, or face value if shown, is paid by the covered person or legislative employee. b. Commercially available loans made on terms not more favorable than generally available to the general public in the normal course of business if not made for lobbying. c. Contractual arrangements or commercial relationships or arrangements made in the normal course of business if not made for lobbying. d. Academic or athletic scholarships based on the same criteria as applied to the public. e. Anything of value properly reported as required under Article 22A of Chapter 163 of the General Statutes. f. Expressions of condolence related to a death of an individual, sent within a reasonable time of the death, if the expression is one of the following: 1. A sympathy card, letter, or note. 2. Flowers. (33) through (35) Reserved for future codification purposes. (36) Governmental unit. - A political subdivision of the State, and any other entity or organization created by a political subdivision of the State. (38) Honorarium. - Payment for services for which fees are not legally or traditionally required. (40) Immediate family. - An unemancipated child of the covered person residing in the household and the covered person's spouse, if not legally separated. A member of a covered person's extended family shall also be considered a member of the immediate family if actually residing in the covered person's household. (42) Judicial employee. - The director and assistant director of the Administrative Office of the Courts and any other individual, designated by the Chief Justice, employed in the Judicial Department whose annual compensation from the State is sixty thousand dollars ($60,000) or more. (44) Judicial officer. - Justice or judge of the General Court of Justice, district attorney, clerk of court, or any individual elected or appointed to any of these positions prior to taking office. (46) Legislative action. - As the term is defined in G.S. 120C-100 . (48) Legislative employee. - As the term is defined in G.S. 120C-100 . (50) Legislator. - A member or presiding officer of the General Assembly, or an individual elected or appointed a member or presiding officer of the General Assembly before taking office. (52) Lobbying. - As the term is defined in G.S. 120C-100 . (54) Nonprofit corporation or organization with which associated. - Any not for profit corporation, organization, or association, incorporated or otherwise, that is organized or operating in the State primarily for religious, charitable, scientific, literary, public health and safety, or educational purposes and of which the covered person, filing person, or any member of the covered person's or filing person's immediate family is a director, officer, governing board member, employee, lobbyist registered under Chapter 120C of the General Statutes, or independent contractor. "Nonprofit corporation or organization with which associated" shall not include any board, entity, or other organization created by this State or by any political subdivision of this State. (56) Official action. - Any decision, including administration, approval, disapproval, preparation, recommendation, the rendering of advice, and investigation, made or contemplated in any proceeding, application, submission, request for a ruling or other determination, contract, claim, controversy, investigation, charge, or rule making. (58) Participate. - To take part in, influence, or attempt to influence, including acting through an agent or proxy. (60) Permanent designee. - An individual designated by a public servant to serve and vote in the absence of the public servant on a regular basis on a board on which the public servant serves. (62) Person. - Any individual, firm, partnership, committee, association, corporation, business, or any other organization or group of persons acting together. The term "person" does not include the State, a political subdivision of the State, a board, or any other entity or organization created by the State or a political subdivision of the State. (63), (64) Reserved for future codification purposes. (65) Person with which the legislator is associated. - Any of the following: a. A member of the legislator's extended family. b. A client of the legislator. c. A business with which the legislator or a member of the legislator's immediate family is associated. d. A nonprofit corporation or association with which the legislator or a member of the legislator's immediate family is associated. e. The State, a political subdivision of the State, a board, or any other entity or organization created by the State or a political subdivision of the State that employs the legislator or a member of the legislator's immediate family. (67) Person with which the public servant is associated. - Any of the following: a. A member of the public servant's extended family. b. A client of the public servant. c. A business with which the public servant or a member of the public servant's immediate family is associated. d. A nonprofit corporation or association with which the public servant or a member of the public servant's immediate family is associated. e. The State, a political subdivision of the State, a board, or any other entity or organization created by the State or a political subdivision of the State that employs the public servant or a member of the public servant's immediate family. (69) Political party. - Either of the two largest political parties in the State based on statewide voter registration at the applicable time. (70) Public servants. - All of the following: a. Constitutional officers of the State and individuals elected or appointed as constitutional officers of the State prior to taking office. b. Employees of the Office of the Governor. c. Heads of all principal State departments, as set forth in G.S. 143B-6 , who are appointed by the Governor. d. The chief deputy and chief administrative assistant of each individual designated under sub-subdivision a. or c. of this subdivision. e. Confidential assistants and secretaries as defined in G.S. 126-5(c)(2) , to individuals designated under sub-subdivision a., c., or d. of this subdivision. f. Employees in exempt positions designated in accordance with G.S. 126-5(d)(1) , (2), or (2a) and confidential secretaries to these individuals. g. Any other employees or appointees in the principal State departments as may be designated by the Governor to the extent that the designation does not conflict with the State Personnel Act. h. Judicial employees. i. All voting members of boards, including ex officio members, permanent designees of any voting member, and members serving by executive, legislative, or judicial branch appointment. j. For The University of North Carolina, the voting members of the Board of Governors of The University of North Carolina, the president, the vice-presidents, and the chancellors, the vice-chancellors, and voting members of the boards of trustees of the constituent institutions. (71) through (80) Reserved for future codification purposes. (81) State agency. - An agency in the executive branch of the government of this State, including the Governor's Office, a board, a department, a division, and any other unit of government in the executive branch. (83) Vested trust. - A trust, annuity, or other funds held by a trustee or other third party for the benefit of the covered person or a member of the covered person's immediate family, except a blind trust. A vested trust shall not include a widely held investment fund, including a mutual fund, regulated investment company, or pension or deferred compensation plan, if: a. The covered person or a member of the covered person's immediate family neither exercises nor has the ability to exercise control over the financial interests held by the fund; and b. The fund is publicly traded, or the fund's assets are widely diversified. History (2006-201, s. 1; 2007-347, ss. 7, 8; 2007-348, ss. 19-26; 2008-187, s. 44; 2008-213, ss. 40-54, 84(c); 2010-169, ss. 10, 17(n), (o); 2010-170, s. 14; 2013-382, s. 9.1(c); 2015-241, s. 7A.4(n); 2017-6, s. 3; 2018-146, s. 3.1(a), (b); 2021-90, s. 2(b).) Preclearance Under § 5 of the Voting Rights Act. - Session Laws 2010-170, s. 17, provides, in part: "Sections 1 through 15 of this act become effective upon preclearance by the United States Department of Justice." Preclearance was received by letter dated September 23, 2010. Editor's Note. - This section was recodified as now former G.S. 163A-152 by Session Laws 2017-6, s. 3. Former G.S. 163A-152 was then re-recodified as this section by Session Laws 2018-146, s. 3.1(a), effective January 31, 2019. The historical citation from the former section has been added to this section as re-recodified. Session Laws 2010-170, s. 16, is a severability clause. Session Laws 2013-382, s. 9.1(b), provides: "The following entities and positions created by Chapter 126 of the General Statutes are hereby renamed by this act: "(1) The State Personnel Commission is renamed the 'North Carolina Human Resources Commission.' "(2) The Office of State Personnel is renamed the 'North Carolina Office of State Human Resources.' "(3) The State Personnel Director is renamed the 'Director of the North Carolina Office of State Human Resources.'" Session Laws 2013-382, s. 9.1(c), provides: "Modification of References. - The Revisor of Statutes shall delete any references in the General Statutes to the State Personnel Act, State Personnel Commission, the State Personnel Director, and the Office of State Personnel (or any derivatives thereof) and substitute references to the North Carolina Human Resources Act, the State Human Resources Commission, the Director of the Office of State Human Resources, and the Office of Human Resources (or the appropriate derivative thereof) to effectuate the renaming set forth in this section wherever conforming changes are necessary." Session Laws 2013-382, s. 9.2, provides: "No action or proceeding pending on the effective date of this section, [August 21, 2013], brought by or against the State Personnel Commission, the Director of the Office of State Personnel, or the Office of State Personnel, shall be affected by any provision of this section, but the same may be prosecuted or defended in the new name of the Commission, Director, and Office. In these actions and proceedings, the renamed Commission, Director, or Office shall be substituted as a party upon proper application to the courts or other public bodies." Session Laws 2013-382, s. 9.3, provides: "Any business or other matter undertaken or commanded by the former State Personnel Commission, State Personnel Director, or Office of State Personnel regarding any State program, office, or contract or pertaining to or connected with their respective functions, powers, obligations, and duties that are pending on the date this act becomes effective [August 21, 2013] may be conducted and completed by the Commission, Director, or Office in the same manner and under the same terms and conditions and with the same effect as if conducted and completed by the formerly named commission, director, or office." Session Laws 2015-241, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2015.'" Session Laws 2015-241, s. 33.6, is a severability clause. Session Laws 2018-146, s. 3.1(b), effective January 31, 2019, repealed Session Laws 2017-6, s. 3, which had recodified this section. Effect of Amendments. - Session Laws 2007-347, ss. 7 and 8, effective August 9, 2007, in subdivision (13), substituted "spouse's lineal descendant, spouse's lineal ascendant" for "spouse's lineal ascendant, spouse's lineal descendant"; and in subdivision (24), in the first sentence, substituted "not for profit corporation, organization, or association" for "public or private enterprise" near the beginning, inserted "lobbyist registered as under Chapter 120C of the General Statutes" near the middle, deleted "as of December 31 of the preceding year" following "contractor" at the end, added the second sentence, and made minor punctuation changes. Session Laws 2007-348, ss. 19-26, added present subdivision (1), and redesignated former subdivision (1) as subdivision (1c); added subdivision (3)d; in subdivision (15), inserted "liaison personnel" in the introductory language and added subdivision (15)f; added subdivision (26c); added the second sentence in subdivision (27); rewrote subdivision (29); in subdivision (30)i, inserted "permanent designees of any voting member" and made a minor punctuation change; and in subdivision (31), added "except a blind trust" at the end of the first sentence. For effective dates, see Editor's note. Session Laws 2008-187, s. 44, effective August 7, 2008, substituted "lobbyist registered under" for "lobbyist registered as under" in the first sentence of subdivision (24). Session Laws 2008-213, ss. 40 through 54 and 84(c), effective August 15, 2008, substituted "covered person or filing person" for "person," or a variation, in subdivisions (3), (6), and (24); substituted "individual" for "person," or a variation, in subdivisions (13), (14), (18), (19), (22), and (30); redesignated former subdivisions (3)d.a. and (3)d.b. as subdivisions (3)d.1. and (3)d.2., respectively; in subdivision (3), inserted "covered person or filing" in the introductory language; deleted subsection (11), which defined "Economic interest"; added subdivisions (14c), (15d), (27c), (27d) and (30k); and repealed subdivision (29), which defined "Public event." Session Laws 2010-169, s. 10, effective August 2, 2010, in subdivision (30) l ., inserted "the executive director, and the assistant executive director or the Commission"; and added subdivisions (30)n. through (30)v. Session Laws 2010-169, s. 17(n) and (o), effective January 1, 2011, and applicable to offenses committed on or after that date and reports filed on or after that date, deleted "the purpose of" preceding "divestiture" in subdivision (1) and preceding "lobbying" in subdivisions (15)b and (15)c. Session Laws 2010-170, s. 14, effective September 23, 2010, substituted "Anything of value properly reported" for "Campaign contributions properly received and reported" in subdivision (15)e. Session Laws 2013-382, s. 9.1(c), effective August 21, 2013, substituted "Office of State Human Resources" for "Office of State Personnel" in subdivision (30)n. Session Laws 2015-241, s. 7A.4(n), effective July 1, 2015, in subdivision (30)p, substituted "State Chief Information Officer" for "chief information officer" at the beginning and substituted "Department of" for "Office of" near the end. Session Laws 2021-90, s. 2(b), effective July 22, 2021, repealed sub-subdivision (70)r., which read: "The executive director of the Agency for Public Telecommunications.”