LCO \\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07328-R01- HB.docx 1 of 16 General Assembly Substitute Bill No. 7328 January Session, 2019 AN ACT REVISING CERTAIN ETHICS CODE DEFINITIONS AND GIFT PROVISIONS. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Subdivision (2) of section 1-79 of the general statutes is 1 repealed and the following is substituted in lieu thereof (Effective 2 October 1, 2019): 3 (2) ["Business with which he is associated"] "Business with which 4 the person is associated" (A) means any sole proprietorship, 5 partnership, firm, corporation, trust or other entity through which 6 business for profit or not for profit is conducted in which the public 7 official or state employee or member of his or her immediate family is 8 a director, officer, owner, limited or general partner, beneficiary of a 9 trust or holder of stock constituting five per cent or more of the total 10 outstanding stock of any class, provided, a public official or state 11 employee, or member of his or her immediate family, shall not be 12 deemed to be associated with a not for profit entity solely by virtue of 13 the fact that the public official or state employee or member of his or 14 her immediate family is an unpaid director or officer of the not for 15 profit entity, [. "Officer" refers only to] and (B) includes a second 16 business held by the business with which the person is associated, if 17 the business with which the person is associated is a director, officer, 18 owner, limited or general partner, beneficiary of a trust or holder of 19 Substitute Bill No. 7328 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07328- R01-HB.docx } 2 of 16 stock constituting five per cent or more of the total outstanding stock 20 of any class of such second business. For the purposes of this 21 subdivision, "officer" means the president, executive or senior vice 22 president or treasurer of such business or any person who exercises 23 exclusive control over such business. 24 Sec. 2. Subdivision (11) of section 1-79 of the general statutes is 25 repealed and the following is substituted in lieu thereof (Effective 26 October 1, 2019): 27 (11) "Public official" means (A) any state-wide elected officer; [,] (B) 28 any member or member-elect of the General Assembly; [,] (C) any 29 person appointed to any office of the legislative, judicial or executive 30 branch of state government, with or without the advice and consent of 31 the General Assembly, by the Governor, [or] an appointee of the 32 Governor [, with or without the advice and consent of the General 33 Assembly,] or any other state-wide elected officer; (D) any public 34 member or representative of the teachers' unions or state employees' 35 unions appointed to the Investment Advisory Council pursuant to 36 subsection (a) of section 3-13b; [,] (E) any person appointed or elected 37 by the General Assembly or by any member of either house thereof; [,] 38 (F) any member or director of a quasi-public agency; and (G) the 39 spouse of the Governor. [, but] "Public official" does not include a 40 member of an advisory board, a judge of any court either elected or 41 appointed, any person appointed by a judge in the exercise of the 42 judge's authority in a judicial matter or a senator or representative in 43 Congress. 44 Sec. 3. Section 1-84 of the general statutes is repealed and the 45 following is substituted in lieu thereof (Effective October 1, 2019): 46 (a) No public official or state employee shall, while serving as such, 47 have any financial interest in, or engage in, any business, employment, 48 transaction or professional activity, which is in substantial conflict with 49 the proper discharge of his or her duties or employment in the public 50 interest and of his or her responsibilities as prescribed in the laws of 51 Substitute Bill No. 7328 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07328- R01-HB.docx } 3 of 16 this state, as defined in section 1-85, as amended by this act. 52 (b) No public official or state employee shall accept other 53 employment which will either impair his or her independence of 54 judgment as to his or her official duties or employment or require 55 [him] such official or employee, or induce [him] such official or 56 employee, to disclose confidential information acquired by him or her 57 in the course of and by reason of [his] such official's or state 58 employee's official duties. 59 (c) No public official or state employee shall wilfully and knowingly 60 disclose, for financial gain, to any other person, confidential 61 information acquired by him or her in the course of and by reason of 62 his or her official duties or employment and no public official or state 63 employee shall use his or her public office or position or any 64 confidential information received through his or her holding such 65 public office or position to obtain financial gain for [himself] such 66 official or employee, his or her spouse, child, child's spouse, parent, 67 brother or sister or a business with which [he] the person is associated. 68 (d) No public official or state employee or employee of such public 69 official or state employee shall agree to accept, or be a member or 70 employee of a partnership, association, professional corporation or 71 sole proprietorship which partnership, association, professional 72 corporation or sole proprietorship agrees to accept any employment, 73 fee or other thing of value, or portion thereof, for appearing, agreeing 74 to appear, or taking any other action on behalf of another person 75 before the Department of Banking, the Office of the Claims 76 Commissioner, the Health Systems Planning Unit of the Office of 77 Health Strategy, the Insurance Department, the Department of 78 Consumer Protection, the Department of Motor Vehicles, the State 79 Insurance and Risk Management Board, the Department of Energy and 80 Environmental Protection, the Public Utilities Regulatory Authority, 81 the Connecticut Siting Council or the Connecticut Real Estate 82 Commission; provided this subsection shall not prohibit any such 83 person from [making inquiry] inquiring for information on behalf of 84 Substitute Bill No. 7328 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07328- R01-HB.docx } 4 of 16 another before any of said commissions or commissioners if no fee or 85 reward is given or promised in consequence thereof. For the purpose 86 of this subsection, partnerships, associations, professional corporations 87 or sole proprietorships refer only to such partnerships, associations, 88 professional corporations or sole proprietorships which have been 89 formed to carry on the business or profession directly relating to the 90 employment, appearing, agreeing to appear or taking of action 91 provided for in this subsection. Nothing in this subsection shall 92 prohibit any employment, appearing, agreeing to appear or taking 93 action before any municipal board, commission or council. Nothing in 94 this subsection shall be construed as applying (1) to the actions of any 95 teaching or research professional employee of a public institution of 96 higher education if such actions are not in violation of any other 97 provision of this chapter, (2) to the actions of any other professional 98 employee of a public institution of higher education if such actions are 99 not compensated and are not in violation of any other provision of this 100 chapter, (3) to any member of a board or commission who receives no 101 compensation other than per diem payments or reimbursement for 102 actual or necessary expenses, or both, incurred in the performance of 103 the member's duties, or (4) to any member or director of a quasi-public 104 agency. Notwithstanding the provisions of this subsection to the 105 contrary, a legislator, an officer of the General Assembly or part-time 106 legislative employee may be or become a member or employee of a 107 firm, partnership, association or professional corporation which 108 represents clients for compensation before agencies listed in this 109 subsection, provided the legislator, officer of the General Assembly or 110 part-time legislative employee shall take no part in any matter 111 involving the agency listed in this subsection and shall not receive 112 compensation from any such matter. Receipt of a previously 113 established salary, not based on the current or anticipated business of 114 the firm, partnership, association or professional corporation involving 115 the agencies listed in this subsection, shall be permitted. 116 (e) No legislative commissioner or his or her partners, employees or 117 associates shall represent any person subject to the provisions of part II 118 Substitute Bill No. 7328 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07328- R01-HB.docx } 5 of 16 concerning the promotion of or opposition to legislation before the 119 General Assembly, or accept any employment which includes an 120 agreement or understanding to influence, or which is inconsistent 121 with, the performance of his or her official duties. 122 (f) No person shall offer or give to a public official or state employee 123 or candidate for public office or [his] such official's, employee's or 124 candidate's spouse, his or her parent, brother, sister or child or spouse 125 of such child or a business with which [he] the person is associated, 126 anything of value, including, but not limited to, a gift, loan, political 127 contribution, reward or promise of future employment based on any 128 understanding that the vote, official action or judgment of the public 129 official, state employee or candidate for public office would be or had 130 been influenced thereby. 131 (g) No public official or state employee or candidate for public office 132 shall solicit or accept anything of value, including, but not limited to, a 133 gift, loan, political contribution, reward or promise of future 134 employment based on any understanding that the vote, official action 135 or judgment of the public official or state employee or candidate for 136 public office would be or had been influenced thereby. 137 (h) Nothing in subsection (f) or (g) of this section shall be construed 138 (1) to apply to any promise made in violation of subdivision (6) of 139 section 9-622, or (2) to permit any activity otherwise prohibited in 140 section 53a-147 or 53a-148. 141 (i) (1) No public official or state employee or member of the official 142 or employee's immediate family or a business with which [he] the 143 person is associated shall enter into any contract with the state, valued 144 at one hundred dollars or more, other than a contract (A) of 145 employment as a state employee, (B) with the Technical Education and 146 Career System for students enrolled in a school in the system to 147 perform services in conjunction with vocational, technical, 148 technological or postsecondary education and training any such 149 student is receiving at a school in the system, subject to the review 150 Substitute Bill No. 7328 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07328- R01-HB.docx } 6 of 16 process under subdivision (2) of this subsection, (C) with a public 151 institution of higher education to support a collaboration with such 152 institution to develop and commercialize any invention or discovery, 153 or (D) pursuant to a court appointment, unless the contract has been 154 awarded through an open and public process, including prior public 155 offer and subsequent public disclosure of all proposals considered and 156 the contract awarded. In no event shall an executive head of an agency, 157 as defined in section 4-166, including a commissioner of a department, 158 or an executive head of a quasi-public agency, as defined in section 1-159 79, as amended by this act, or the executive head's immediate family or 160 a business with which [he] the person is associated enter into any 161 contract with [that] such agency or quasi-public agency. Nothing in 162 this subsection shall be construed as applying to any public official 163 who is appointed as a member of the executive branch or as a member 164 or director of a quasi-public agency and who receives no compensation 165 other than per diem payments or reimbursement for actual or 166 necessary expenses, or both, incurred in the performance of the public 167 official's duties unless such public official has authority or control over 168 the subject matter of the contract. Any contract made in violation of 169 this subsection shall be voidable by a court of competent jurisdiction if 170 the suit is commenced not later than one hundred eighty days after the 171 making of the contract. 172 (2) The superintendent of the Technical Education and Career 173 System shall establish an open and transparent process to review any 174 contract entered into under subparagraph (B) of subdivision (1) of this 175 subsection. 176 (j) No public official, state employee or candidate for public office, 177 or a member of any such person's staff or immediate family shall 178 knowingly solicit or accept, directly or indirectly, any gift, as defined 179 in subdivision (5) of section 1-79, from a person known to be a 180 registrant or anyone known to be acting on behalf of a registrant. 181 (k) No public official, spouse of the Governor or state employee 182 shall accept a fee or honorarium for an article, appearance or speech, or 183 Substitute Bill No. 7328 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07328- R01-HB.docx } 7 of 16 for participation at an event, in the public official's, spouse's or state 184 employee's official capacity, provided a public official, Governor's 185 spouse or state employee may receive payment or reimbursement for 186 necessary expenses for any such activity in his or her official capacity. 187 If a public official, Governor's spouse or state employee receives such a 188 payment or reimbursement for lodging or out-of-state travel, or both, 189 the public official, Governor's spouse or state employee shall, not later 190 than thirty days thereafter, file a report of the payment or 191 reimbursement with the Office of State Ethics, unless the payment or 192 reimbursement is provided by the federal government or another state 193 government. If a public official, Governor's spouse or state employee 194 does not file such report within such period, either intentionally or due 195 to gross negligence on the public official's, Governor's spouse's or state 196 employee's part, the public official, Governor's spouse or state 197 employee shall return the payment or reimbursement. If any failure to 198 file such report is not intentional or due to gross negligence on the part 199 of the public official, Governor's spouse or state employee, the public 200 official, Governor's spouse or state employee shall not be subject to any 201 penalty under this chapter. When a public official, Governor's spouse 202 or state employee attends an event in this state in the public official's, 203 Governor's spouse's or state employee's official capacity and as a 204 principal speaker at such event and receives admission to or food or 205 beverage at such event from the sponsor of the event, such admission 206 or food or beverage shall not be considered a gift and no report shall 207 be required from such public official, spouse or state employee or from 208 the sponsor of the event. 209 (l) No public official or state employee, or any person acting on 210 behalf of a public official or state employee, shall wilfully and 211 knowingly interfere with, influence, direct or solicit existing or new 212 lobbying contracts, agreements or business relationships for or on 213 behalf of any person. 214 (m) No public official or state employee shall knowingly solicit or 215 accept, directly or indirectly, any gift, as defined in subdivision (5) of 216 Substitute Bill No. 7328 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07328- R01-HB.docx } 8 of 16 section 1-79, from any person the public official or state employee 217 knows or has reason to know: (1) Is doing business with or seeking to 218 do business with the department or agency in which the public official 219 or state employee is employed; (2) is engaged in activities which are 220 directly regulated by such department or agency; or (3) is prequalified 221 under section 4a-100. No person shall knowingly give, directly or 222 indirectly, any gift or gifts in violation of this provision. For the 223 purposes of this subsection, the exclusion to the term "gift" in 224 subparagraph (L) of subdivision (5) of section 1-79 for a gift for the 225 celebration of a major life event shall not apply. Any person prohibited 226 from making a gift under this subsection shall report to the Office of 227 State Ethics any solicitation of a gift from such person by a [state 228 employee or] public official or state employee. 229 (n) (1) As used in this subsection, (A) "investment services" means 230 investment legal services, investment banking services, investment 231 advisory services, underwriting services, financial advisory services or 232 brokerage firm services, and (B) "principal of an investment services 233 firm" means (i) an individual who is a director of or has an ownership 234 interest in an investment services firm, except for an individual who 235 owns less than five per cent of the shares of an investment services 236 firm which is a publicly traded corporation, (ii) an individual who is 237 employed by an investment services firm as president, treasurer, or 238 executive or senior vice president, (iii) an employee of such an 239 investment services firm who has managerial or discretionary 240 responsibilities with respect to any investment services, (iv) the spouse 241 or dependent child of an individual described in this subparagraph, or 242 (v) a political committee established by or on behalf of an individual 243 described in this subparagraph. 244 (2) The State Treasurer shall not pay any compensation, expenses or 245 fees or issue any contract to any firm which provides investment 246 services when (A) a political committee, as defined in section 9-601, 247 established by such firm, or (B) a principal of the investment services 248 firm has made a contribution, as defined in section 9-601a, to, or 249 Substitute Bill No. 7328 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07328- R01-HB.docx } 9 of 16 solicited contributions on behalf of, any exploratory committee or 250 candidate committee, as defined in section 9-601, established by the 251 State Treasurer as a candidate for nomination or election to the office 252 of State Treasurer. The State Treasurer shall not pay any compensation, 253 expenses or fees or issue any contract to such firms or principals 254 during the term of office as State Treasurer, including, for an 255 incumbent State Treasurer seeking reelection, any remainder of the 256 current term of office. 257 (o) If (1) any person (A) is doing business with or seeking to do 258 business with the department or agency in which a public official or 259 state employee is employed, or (B) is engaged in activities which are 260 directly regulated by such department or agency, and (2) such person 261 or a representative of such person gives to such public official or state 262 employee anything of value which is subject to the reporting 263 requirements pursuant to subsection (e) of section 1-96, such person or 264 representative shall, not later than ten days thereafter, give such 265 recipient and the executive head of the recipient's department or 266 agency a written report stating the name of the donor, a description of 267 the item or items given, the value of such items and the cumulative 268 value of all items given to such recipient during that calendar year. 269 The provisions of this subsection shall not apply to a political 270 contribution otherwise reported as required by law. 271 (p) (1) No public official or state employee or member of the 272 immediate family of a public official or state employee shall knowingly 273 accept, directly or indirectly, any gift costing [one] five hundred 274 dollars or more in the aggregate during a calendar year from a public 275 official or state employee who is under the supervision of such public 276 official or state employee. 277 (2) No public official or state employee or member of the immediate 278 family of a public official or state employee shall knowingly accept, 279 directly or indirectly, any gift costing [one] five hundred dollars or 280 more in the aggregate during a calendar year from a public official or 281 state employee who is a supervisor of such public official or state 282 Substitute Bill No. 7328 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07328- R01-HB.docx } 10 of 16 employee. 283 (3) No public official or state employee shall knowingly give, 284 directly or indirectly, any gift in violation of subdivision (1) or (2) of 285 this subsection. 286 (q) No public official or state employee shall intentionally counsel, 287 authorize or otherwise sanction action that violates any provision of 288 this part. 289 (r) (1) Notwithstanding the provisions of subsections (b) and (c) of 290 this section, a member of the faculty or a member of a faculty 291 bargaining unit of a constituent unit of the state system of higher 292 education may enter into a consulting agreement or engage in a 293 research project with a public or private entity, provided such 294 agreement or project does not conflict with the member's employment 295 with the constituent unit, as determined by policies established by the 296 board of trustees for such constituent unit. 297 (2) The board of trustees for each constituent unit of the state system 298 of higher education shall establish policies to ensure that any such 299 member who enters such a consulting agreement or engages in such a 300 research project (A) is not inappropriately using university proprietary 301 information in connection with such agreement or project, (B) does not 302 have an interest in such agreement or project that interferes with the 303 proper discharge of his or her employment with the constituent unit, 304 and (C) is not inappropriately using such member's association with 305 the constituent unit in connection with such agreement or project. Such 306 policies shall (i) establish procedures for the disclosure, review and 307 management of conflicts of interest relating to any such agreement or 308 project, (ii) require the approval by the chief academic officer of the 309 constituent unit, or his or her designee, prior to any such member 310 entering into any such agreement or engaging in any such project, and 311 (iii) include procedures that impose sanctions and penalties on any 312 member for failing to comply with the provisions of the policies. 313 Annually, the internal audit office of each constituent unit shall audit 314 Substitute Bill No. 7328 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07328- R01-HB.docx } 11 of 16 the constituent unit's compliance with such policies and report its 315 findings to the committee of the constituent unit established pursuant 316 to subdivision (3) of this subsection. For purposes of this subsection, 317 "consulting" means the provision of services for compensation to a 318 public or private entity by a member of the faculty or member of a 319 faculty bargaining unit of a constituent unit of the state system of 320 higher education: (I) When the request to provide such services is 321 based on such member's expertise in a field or prominence in such 322 field, and (II) while such member is not acting in the capacity of a state 323 employee, and "research" means a systematic investigation, including, 324 but not limited to, research development, testing and evaluation, 325 designed to develop or contribute to general knowledge in the 326 applicable field of study. 327 (3) There is established a committee for each constituent unit of the 328 state system of higher education to monitor the constituent unit's 329 compliance with the policies and procedures described in subdivision 330 (2) of this subsection governing consulting agreements and research 331 projects with public or private entities by a member of the faculty or a 332 member of a faculty bargaining unit of such constituent unit. Each 333 committee shall consist of nine members as follows: (A) Three 334 members, appointed jointly by the Governor, the speaker of the House 335 of Representatives, the president pro tempore of the Senate, the 336 majority leader of the House of Representatives, the majority leader of 337 the Senate, the minority leader of the House of Representatives and the 338 minority leader of the Senate, who shall serve as members for each 339 such committee; (B) one member appointed by the chairperson of the 340 constituent unit's board of trustees from the membership of such 341 board; (C) the chief academic officer of the constituent unit, or his or 342 her designee; (D) three members appointed by the chief executive 343 officer of the constituent unit; and (E) one member appointed by the 344 chairperson of the Citizen's Ethics Advisory Board from the 345 membership of such board. Members shall serve for a term of two 346 years. Any vacancies shall be filled by the appointing authority. Each 347 committee shall (i) review the annual reports submitted by the internal 348 Substitute Bill No. 7328 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07328- R01-HB.docx } 12 of 16 audit office for the constituent unit, pursuant to subdivision (2) of this 349 subsection, (ii) make recommendations, annually, to the board of 350 trustees of the constituent unit concerning the policies and procedures 351 of the constituent unit established pursuant to subdivision (2) of this 352 subsection, including any changes to such policies and procedures, 353 and (iii) send a copy of such recommendations, in accordance with 354 section 11-4a, to the joint standing committees of the General 355 Assembly having cognizance of matters relating to higher education 356 and government administration. 357 (4) The provisions of subsections (b) and (c) of this section shall 358 apply to any member of the faculty or member of a faculty bargaining 359 unit of a constituent unit of the state system of higher education who 360 enters such a consulting agreement or engages in such a research 361 project without prior approval, as described in subdivision (2) of this 362 subsection. 363 (s) Notwithstanding the provisions of this section or any other 364 provision of this part, a state employee who is employed at a 365 constituent unit of the state system of higher education and a member 366 of the immediate family of such state employee may be employed in 367 the same department or division of such constituent unit, provided the 368 constituent unit has determined that procedures have been 369 implemented to ensure that any final decisions impacting the financial 370 interests of either such state employee, including decisions to hire, 371 promote, increase the compensation of or renew the employment of 372 such state employee, are made by another state employee who is not a 373 member of the immediate family of such state employee. 374 Sec. 4. Subdivision (16) of section 1-91 of the general statutes is 375 repealed and the following is substituted in lieu thereof (Effective 376 October 1, 2019): 377 (16) "Public official" means (A) any state-wide elected state officer, 378 (B) any member or member-elect of the General Assembly, (C) any 379 person appointed to any office of the legislative, judicial or executive 380 Substitute Bill No. 7328 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07328- R01-HB.docx } 13 of 16 branch of state government, with or without the advice and consent of 381 the General Assembly, by the Governor or any other state-wide elected 382 officer, [with or without the advice and consent of the General 383 Assembly,] (D) the spouse of the Governor, and (E) any person 384 appointed or elected by the General Assembly or any member of either 385 house thereof. [; but] "Public official" does not include a member of an 386 advisory board or a senator or representative in Congress. 387 Sec. 5. Subdivision (1) of section 1-101mm of the general statutes is 388 repealed and the following is substituted in lieu thereof (Effective 389 October 1, 2019): 390 (1) "Business with which the person is associated" means any sole 391 proprietorship, partnership, firm, corporation, trust or other entity 392 through which business for-profit or not-for-profit is conducted in 393 which the person or member of the immediate family of any person 394 who is an individual is a director, officer, owner, limited or general 395 partner, beneficiary of a trust or holder of stock constituting five per 396 cent or more of the total outstanding stock of any class, provided, a 397 person who is an individual or a member of the immediate family of 398 such individual shall not be deemed to be associated with a not-for-399 profit entity solely by virtue of the fact that such individual or 400 immediate family member is an unpaid director or officer of the not-401 for-profit entity. ["Officer" refers only to] "Business with which the 402 person is associated" also includes a second business held by the 403 business with which the person is associated, if the business with 404 which the person is associated is a director, officer, owner, limited or 405 general partner, beneficiary of a trust or holder of stock constituting 406 five per cent or more of the total outstanding stock of any class of such 407 second business. For the purposes of this subdivision, "officer" means 408 the president, executive or senior vice president or treasurer of such 409 business or any person who exercises exclusive control over such 410 business. 411 Sec. 6. Section 1-85 of the general statutes is repealed and the 412 following is substituted in lieu thereof (Effective October 1, 2019): 413 Substitute Bill No. 7328 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07328- R01-HB.docx } 14 of 16 A public official, including an elected state official, or state 414 employee has an interest which is in substantial conflict with the 415 proper discharge of his or her duties or employment in the public 416 interest and of his or her responsibilities as prescribed in the laws of 417 this state, if [he] such official or employee has reason to believe or 418 expect that [he, his] such official or employee, such official's or 419 employee's spouse, [a] dependent child, or a business with which [he] 420 the person is associated will derive a direct monetary gain or suffer a 421 direct monetary loss, as the case may be, by reason of his or her official 422 activity. A public official, including an elected state official, or state 423 employee does not have an interest which is in substantial conflict 424 with the proper discharge of his or her duties in the public interest and 425 of his or her responsibilities as prescribed by the laws of this state, if 426 any benefit or detriment accrues to [him, his] such official or employee, 427 such official's or employee's spouse, [a] dependent child, or a business 428 with which [he, his] such official or employee, such official's or 429 employee's spouse or such dependent child is associated as a member 430 of a profession, occupation or group to no greater extent than any 431 other member of such profession, occupation or group. A public 432 official, including an elected state official or state employee who has a 433 substantial conflict may not take official action on the matter. 434 Sec. 7. Subsection (j) of section 4e-2 of the general statutes is 435 repealed and the following is substituted in lieu thereof (Effective 436 October 1, 2019): 437 (j) No employee of the State Contracting Standards Board shall hold 438 another state or municipal position. No nonclerical employee of the 439 board or any spouse, child, stepchild, parent or sibling of such 440 employee, shall be associated with an enterprise that does business 441 with the state. For purposes of this subsection, "associated with" means 442 ["business with which he is associated"] "business with which the 443 person is associated", as defined in section 1-79, as amended by this 444 act. Each member and employee of the State Contracting Standards 445 Board shall file, with the board and with the Office of State Ethics, a 446 Substitute Bill No. 7328 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07328- R01-HB.docx } 15 of 16 statement of financial interests, as described in section 1-83. Such 447 statement shall be a public record. Such statements for the preceding 448 calendar year shall be filed with the Office of State Ethics, as required 449 by law, if such employee or member held such a position during the 450 preceding calendar year. 451 Sec. 8. Subsection (b) of section 7-148h of the general statutes is 452 repealed and the following is substituted in lieu thereof (Effective 453 October 1, 2019): 454 (b) Notwithstanding the provisions of any special act, municipal 455 charter or ordinance, [to the contrary,] an elected official of any town, 456 city, district or borough that has established a board, commission, 457 council, committee or other agency under subsection (a) of this section, 458 has an interest that is in substantial conflict with the proper discharge 459 of the official's duties or employment in the public interest and of the 460 official's responsibilities as prescribed by the laws of this state, if the 461 official has reason to believe or expect that the official, the official's 462 spouse or dependent child, or a business with which [he] the person is 463 associated, as defined in section 1-79, as amended by this act, will 464 derive a direct monetary gain or suffer a direct monetary loss, as the 465 case may be, by reason of the official's official activity. Any such 466 elected official does not have an interest that is in substantial conflict 467 with the proper discharge of the official's duties in the public interest 468 and of the official's responsibilities as prescribed by the laws of this 469 state, if any benefit or detriment accrues to the official, the official's 470 spouse or dependent child, or a business with which [he, his] such 471 official or such official's spouse or such dependent child is associated 472 as a member of a profession, occupation or group to no greater extent 473 than to any other member of such profession, occupation or group. 474 Any such elected official who has a substantial conflict may not take 475 official action on the matter. 476 This act shall take effect as follows and shall amend the following sections: Substitute Bill No. 7328 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07328- R01-HB.docx } 16 of 16 Section 1 October 1, 2019 1-79(2) Sec. 2 October 1, 2019 1-79(11) Sec. 3 October 1, 2019 1-84 Sec. 4 October 1, 2019 1-91(16) Sec. 5 October 1, 2019 1-101mm(1) Sec. 6 October 1, 2019 1-85 Sec. 7 October 1, 2019 4e-2(j) Sec. 8 October 1, 2019 7-148h(b) Statement of Legislative Commissioners: In Section 3(b), "his or her" was changed to "[his] such official's or state employee's" and in section 3(f), "his or her" was changed to "[his] such official's, employee's or candidate's" for consistency. GAE Joint Favorable Subst. -LCO