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public office in WHEREAS North Carolina Rust always be regarded as a public trust; and WHEREAS, people of the North Carolina have a fundamental right to the assurance that officers of their government will not use their for personal public position gain; and WHEREAS this Adminis brat ion is committed to and restore maintain the North Carolina confidence of citizens in their government; and WHEREAS, there is a need in North Carolina for the creation institutionalized of an procedure designed to prevent the occurrence of conflicts of interest in government and to deal with them when they do 1

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occur; and WHEREAS,

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Administration realizes that the majority vast of state government employees arc honest and hard working in their public and private lives; NOW, THEREFORE, IT IS HEREBY ORDERED: Section 1. Executive Order Number 1, January 10, 1977. Executive Order Number 1, dated January 1977, 10, is hereby rescinded. All records, including but not limited to Statements of Economic Interest, of the North Carolina Board of Ethics created pursuant to said exexutive order, are transferred to the North Carolina Board of Ethics herein. Section 2. North Carolina Board of Ethics. There is hereby established the North Carolina Board of Ethics consisting of five persons to be appointed by the Governor to serve at his pleasure. The Governor shall, from time to time, designate one of the members as Chairman. The members shall receive no compensation, but shall receive reimbursement for any necessary expenses incurred in connection with the performance of their duties pursuant to General Statute 133-15. The Board of Ethics shall not be considered a public office for the purpose of dual office holding. Section 3. Persons subject to Order. The following persons

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are subject to this order and to the jurisdiction of the Board of Ethics (a) All employees in the Office of the Governor. lb) The of all heads principal departments of state government who are appointed by tiie Governor. The chief deputy or (c) chief administra t ive assistant to each of the aforesaid heads of principal state departments. "confidential" (d) All assistants or secretaries to the aforesaid department heads (or to the aforesaid chief deputies and assistants of dcpartmeiit heads) as defined in G.S. 126-5(b)(2) (e) All employees in positions pol icy-making as designated by the Governor pursuant to the State Personnel Act as defined G.S. in and all 126-5(b)(3), "confidential" secretaries to these individuals as defined in G.S. 126-5 (b)(4). Any other employees in the principal departments of state government, except in those principal departments headed by elected heads other than the Governor, as may be designated by rule of the Board subject to the approval of the Governor, to extent such the designation does not conflict with the State Personnel Act. The members of (g) all commissions, boards and councils appointed by the Governor, with exception of members the of those commissions, boards and councils the Board of Ethics determines perform solely advisory functions. The elected heads of (h) other principal state departments. and certain employees of those departments as designated by the head, in the event of an election by such department head to participate in the system created by this Order as provided for in Section 8 of this Order Members (i) of North Carolina Board of Ethics. Section 4 Exemption From Order. Notwithstanding Section 3, herein, a commission, board or council to which the Governor members, •points may upon written application request the Board of Ethics to exempt its members from this Order. The Board of Ethics shall make a determination upon such requests, which shall be final, after a specific finding by the Board that such exemption does not violate the intent of this .

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NORTH CAROLINA REGISTER

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