Connecticut Office of State Ethics Public Officials and State Employees

Ethics in Government Today Ethics is knowing the difference between what you have a right to do and what is right to do. Potter Stewart

Our Mission The Connecticut Office of State Ethics practices and promotes the highest ethical standards and accountability in state government by providing education and legal advice, ensuring disclosure, and impartially enforcing the Codes of Ethics.

Objectives The Big Picture Four General Areas of Oversight HONESTY ◆ INTEGRITY ◆ ACCOUNTABILITY Four General Areas of Oversight GIFTS AND NECESSARY EXPENSES ETHICS AT WORK CONFLICTS AND CONTRACTING STATEMENTS OF FINANCIAL INTERESTS Review Resources Available for Compliance

Connecticut Office of State Ethics Who is covered by the Codes of Ethics? All State Officials and Employees (Except Judges) Lobbyists Contractors What’s the point? The law is intended to prevent individuals from using public position or authority for personal financial benefit.

Ethics Oversight: Gifts Three types of Donors Restricted Donors Registered lobbyists Regulated by, doing or seeking to do business with agency DAS “pre-qual” list Non-restricted, given by virtue of your position Non-restricted, giving not related to state service

Ethics Oversight: Gifts What is a gift? Anything of value Directly and personally received Unless consideration is given Gift Exceptions 19 Gift Exceptions First General Area of Oversight – Gifts A gift is defined as anything of value that is directly and personally received by a public official or state employee (not only the gift itself, but accepting the opportunity to make use of the gift as well) For example, if you receive the gift and you pass it on to a colleague, you have still received the gift….. unless consideration of equal or greater value is provided. In other words, you pay for it.   The law has 19 gift exceptions…. Some of the gifts you are able to receive are…..  

Ethics Oversight: Gifts Token Items Food and Beverage Major Life Events Gifts to the State Ceremonial Plaques Rebates or Discounts Gift Exceptions There are, however, certain exceptions to this definition of “gift.”   Token Items – Restricted donors such as client lobbyists may provide any item of value that is not more than $10 (such as a pen, mug, or inexpensive baseball cap) to a public official or state employee, provided that the annual aggregate of such items to a single beneficiary is $50 or less.  Food and Beverage – Restricted donors may also provide less than $50 worth of food and beverage in a calendar year to a public official or state employee, provided that the restricted donor or its representative is in attendance when the food and/or beverage is being consumed.   Major Life Events – Registered lobbyists are the only restricted donors who may make use of this exception. There is a $1,000 limit on a gift a registered lobbyist gives to a public official, state employee or a member of that official’s or employee’s family for the following major life events: wedding, funeral, birth or adoption of a child, ceremony commemorating induction into religious adulthood, or retirement from state service.   Gifts to the State – Public Act 13-244 expands the state codes of ethics' exemption for gifts to state or quasi-public agencies to include goods or services that support participation by a public official or state employee at an event so long as the event in question facilitates state or quasi-public agency's action or function. Existing law allows a state or quasi-public agency to accept goods or services (1) for use on agency property or that support an event and (2) that facilitate agency actions or functions. By law, lobbyists and people seeking to do or doing business with the state generally cannot give gifts to public officials and state employees. Other Exceptions – There are a total of 19 separate gift exceptions in the Code. Also exempt from the definition of gift are items such as informational materials germane to state action; ceremonial plaques or awards costing less than $100; or promotional items, rebates or discounts that are available to the general public.

Ethics Oversight: Gifts Gift giving to public officials or state employees must be reported within 10 days by providing the gift recipient and the head of that individual’s department or agency a written report stating: Name of the donor; Description of item(s) given; Value of such item(s); and Total cumulative value of all items to date to the recipient during the calendar year 1-84 (o)

Ethics Oversight: Gifts Subordinates and Supervisors $99.99 Limit Per Gift No Pooling Major Life Event – Limit $1,000 Birth or Adoption of a Child Wedding Funeral Induction into Religious Adulthood Retirement

Ethics Oversight: Necessary Expenses What are Necessary Expenses? Travel Lodging Meals Related conference expenses Official Capacity & Active Participation Necessary Expenses must be reported within 30 days

Ethics Oversight: Gifts GIFTS TO THE STATE Goods and services provided to a state agency or quasi-public agency for use on state or quasi-public agency’s property or that support an event, and which facilitate state action or functions

Ethics Oversight: Gifts GIFTS TO THE STATE 2013 Legislative Change (Eff. October 1, 2013) Restricted donors may provide goods and services that support participation of officials and employees at an event (e.g., conference, site tour, training), provided the event facilitates state action or functions Gifts to the State – Public Act 13-244 expands the state codes of ethics' exemption for gifts to state or quasi-public agencies to include goods or services that support participation by a public official or state employee at an event and facilitate a state or quasi-public agency's action or function. Existing law allows a state or quasi-public agency to accept goods or services (1) for use on agency property or that support an event and (2) that facilitate agency actions or functions. By law, lobbyists and people seeking to do or doing business with the state generally cannot give gifts to public officials and state employees.

Ethics Oversight: At Work On The Job: You may not use your state position for: Your own financial gain The gain of your family (spouse, child, child’s spouse, parent, brother or sister) The gain of an associated business After Hours: Outside Employment Cannot impair your independence of judgment No disclosure of confidential information No use of state time, materials or personnel 1-84d Limited Provision – Representing others before 11 listed agencies

Ethics Oversight: At Work Leaving State Service - Revolving Door Lifetime Ban Disclosure of confidential information Ban on representation concerning matters in which public official or state employee participated _______ One Year Ban Representing others before former agency Contracts over $50,000 (1 yr.) These provisions limit the activities of former state employees and public officials – 2 lifetime bans & 2 one year bans 1-84a – may not use or disclose confidential information gained in state service for financial gain for anyone Lifetime ban Confidential information – any information that is not available to the general public And it can be in any form: Written Recorded Computerized Verbally transmitted: conversations or negotiations 1-84b (a) – under this provision you may never represent anyone (other than the state) concerning any particular matter 1. in which you participated personally and substantially and 2. in which the state has a substantial interest Also a lifetime ban Side switching provision – its purpose is to prevent side-switching in the midst of on-going state proceedings Example: as an OSE employee I negotiate and award Vendor Y a contract – later on, OSE and Vendor Y dispute as to a maintenance provision in the contract– I cannot represent Vendor Y in the contract dispute 1-84b (b) Under this provision – you may not – for one year after leaving state service represent ANYONE, other than the state, for compensation before your former agency concerning a matter in which the state has a substantial interest – ONE YEAR BAN Purpose of § 1-84b (b) – establish a cooling-off period “Represent” has been defined very broadly – to include any activity that reveals the identity of the former employee Appearance Signing a document Making a phone call Permissible to use your expertise back at the office Also permissible, of course, to meet former co-workers at a social event as long as you don’t discuss any matters between your client and your former agency 1-84b (f) – a former state employee who participated personally and substantially in the negotiation or award of a state contract valued at $50,000 or more may not accept employment with a party to that contract for one year after resignation from state service Example: On April 1, 2012, I participated substantially in the negotiation and award of a state contract valued at $50,000 with Vendor Y On May 1, 2012, I left state service – because the contract was signed within a year from the date I left state service, I could not accept a job with Vendor Y until May 1, 2013– 1 year after my resignation from state service.

Ethics Oversight: Conflicts A public official or employee has reason to believe or expect that he, his spouse, a dependent child, or a business with which he is associated will derive a direct monetary gain or suffer a direct monetary loss by reason of his official activity Abstention or recusal – mandatory Under § 1-85, a public official or employee has a substantial conflict of interests and may not take official action if he has reason to believe or expect that he, his spouse, a dependent child, or a business with which he is associated will derive a direct monetary gain or suffer a direct monetary loss by reason of his official activity Conflict is direct – if immediate or without intervening conditions Award contract to spouse example

Ethics Oversight: Contracting No contracts valued at > $100 Unless awarded through open, public process Prohibition for agency heads

Ethics Oversight: SFI Statements of Financial Interests Policy Statements of Financial Interests (“SFIs”) serve as a tool to maximize public confidence in governmental decision making. The policy underlying this requirement has been in effect since the enactment of the Ethics Codes in 1977. An SFI provides a checklist or reminder to the official/employee to be mindful of potential conflicts of interest, and it provides a baseline of information which can be compared to subsequent years for the purpose of determining potential misuse of office for financial gain. Governor Malloy’s Standard   Governor Malloy has established a standard which requires “filing of Annual Statements of Financial Interests by all persons in the Executive Branch and Quasi-Public Agencies who exercise (i) significant policy-making, regulatory or contractual authority; (ii) significant decision-making and/or supervisory responsibility for the review and/or award of State contracts; or (iii) significant decision-making and/or supervisory responsibility over staff that monitor State contracts.”

Ethics Oversight: SFI Required filers are either enumerated by statute (e.g., state wide elected officers, members of the General Assembly, agency heads and their deputies) or are designated by the Governor Must file SFIs by May 1 of each year Governor Malloy’s Standard   Governor Malloy has established a standard which requires “filing of Annual Statements of Financial Interests by all persons in the Executive Branch and Quasi-Public Agencies who exercise (i) significant policy-making, regulatory or contractual authority; (ii) significant decision-making and/or supervisory responsibility for the review and/or award of State contracts; or (iii) significant decision-making and/or supervisory responsibility over staff that monitor State contracts.”

Ethics Oversight: SFI SFI Disclosures: Associated businesses Sources of income over $1,000 Securities in excess of $5,000 Real estate holdings Leases or contracts with the state Debts over $10,000 Associated Businesses include: sole proprietorships, partnerships, corporations or other business for profit; non-profit organizations (if unpaid board member, no disclosure necessary); and trusts. DISCLOSURE OF BUSINESS AFFILIATIONS: Any associated businesses disclosed on the SFI that are in a partnership, joint ownership or similar business affiliation with: a lobbyist a person doing or seeking to do business with the state a person engaged in activity regulated by filer agency a business in which (1), (2) or (3) above is a director, president, treasurer, owner, partner, beneficiary of a trust or holder of more than 5% of the stock of the company DISCLOSURE OF INCOME: List the name of employer(s) or other sources of income in excess of $1000. For sources of income listed as gifts, the identity and occupation of the donor must be disclosed. If a gift has more than one donor, the filer shall provide the necessary information for each donor; and a brief description of the gift. Political campaign contributions do not have to be listed DISCLOSURE OF SECURITIES: stocks, bonds, investment partnerships or trusts (including Real Estate Investment Trusts and stock trusts), hedge funds, investment “pools” or funds (including venture capital funds), and mutual funds.  Also included in the definition of securities is the right to purchase or own any of the aforementioned securities (i.e., an “option” or “derivative”). NOTE: Individual stock holdings within investment funds must be disclosed if you have the discretion to invest or divest such holdings

Ethics Compliance Important Points: Each state agency has an ethics liaison and/or a compliance officer. Each state agency has its own ethics policy, which can be more restrictive than the Code of Ethics. Mandatory Reporters for violations of the Code of Ethics for Public Officials Commissioner Deputy Commissioner State / Quasi Public Agency Head and Deputy Head Individuals in charge of state agency procurement and contracting

Ethics Enforcement Important Points: Enforcement of the ethics codes is initiated by a complaint, filed by any member of the public or by an Ethics Enforcement Officer. Any complaint and while an investigation is ongoing remains confidential. No one may disclose that a complaint has been filed or any information related to the complaint. Upon a finding that there has been a violation the respondent may be ordered to: Comply with the Code in the future; File any required report or statement; and/or Pay a civil penalty of no more than $10,000 per violation.

Contact Us Agency Address: Connecticut Office of State Ethics   Agency Address: Connecticut Office of State Ethics 18-20 Trinity Street Suite 205 Hartford, CT 06106   Telephone: 860-263-2400 Facsimile: 860-263-2402 Website: www.ct.gov/ethics E-Mail: OSE@ct.gov