ETHICAL CONSIDERATIONS September 18, 2015

Ethics in State Government Ethics CodeInspector General Establish Code of Ethics Educate & Advise Investigate State Ethics Commission Interpret Code of Ethics Adjudicate Complaints

Risks Assessment Gifts & Donor Restrictions Conflict of Interests Post-Employment

42 IAC & 42 IAC Gifts & Donor Restrictions

“Business Relationship” IC (a)(5)  Dealings of a person with an agency seeking, obtaining, establishing, maintaining, or implementing: (i) a pecuniary interest in a contract or purchase with the agency; or (ii) a license or permit requiring the exercise of judgment or discretion by the agency.  The relationship a lobbyist has with an agency.  The relationship an unregistered lobbyist has with an agency.

Donor Restrictions  Gifts  Favors  Services  Entertainment  Food  Drink  Travel Expenses  Registration Fees

Exceptions to Donor Restrictions Rule  Food or drink consumed at a public meeting to which at least twenty-five (25) individuals are invited  Mementos or souvenirs of nominal value  Gifts, favors, services, entertainment, food, or drinks from relatives, or a person with whom the employee or special state appointee has an ongoing social relationship, under certain circumstances  Nominal refreshments offered to a state employee or a special state appointee conducting official state business

What happens if IDOI receives an impermissible gift?

Decisions and Votes IC Conflicts of Interest

Changes Effective July 1, 2015  In addition to participating in decisions or votes themselves, officers, employees, and special state appointees are now also prohibited from participating in any matter related to that decision or vote.  A state officer, employee, or special state appointee has a financial interest in a business organization in which he or she serves as a member.

 Written Disclosure Conflicts of Interest  Formal Advisory Opinion

Disclosure Requirements (IC (b)(2))  Provide details of the conflict of interest  Describe and affirm implementation of a screen established by the ethics officer  Be signed by both employee/special state appointee/state officer AND ethics officer  Include a copy of the disclosure provided to the appointing authority  Be filed no later than seven (7) days after the conduct that gives rise to the conflict The disclosure will be posted on the OIG’s website

Employment Negotiations  Negotiations commence as soon as parties begin discussing potential employment, regardless of who initiates contact  Merely submitting a resume does not amount to negotiating, but a formal submission is not a required element  One telephone call or response could be enough to trigger application

IDOI Ethical Screens  Identify areas where contact outside of employment negotiations could occur  Notify IDOI Chiefs and employee’s supervisor and co-workers of the parameters of the screen  Identify a contact person so that notification can be sent to the prospective employer  Ask for acknowledgement of the terms of the ethical screen.  Seek guidance from the OIG and SEC

IC Post Employment

Changes Effective July 1, Two-year exception to the contracting provision of the cooling off period 2. Application of cooling off period to ALJs 3. Sole Proprietorship / Professional Practice Disclosure Requirement 4. Waiver Requirements

Waivers of Post-Employment Restrictions 1. Signatures 2. Supporting information 3. File with Commission for review and approval 4. Timing

Questions? Office of the Inspector General Department of Insurance Cynthia CarrascoMeggan Brumbaugh