Researcher: JP Page 1 4/14/21
OLR Bill Analysis
sHB 6574
AN ACT CONCERNING REVISIONS TO THE STATE CODES OF
ETHICS.
SUMMARY
This bill makes numerous changes to the state codes of ethics for
public officials and lobbyists by:
1. adding the Paid Family and Medical Leave Insurance Authority
to the list of quasi-public agencies subject to the ethics code for
public officials (§ 2);
2. defining confidential information for the law’s purposes as
similarly defined in regulations (§ 3);
3. authorizing the Office of State Ethics (OSE) ethics enforcement
officer (whom the bill specifies must belong to the Connecticut
bar) to represent the office in certain matters before the Superior
Court (§§ 4 & 5);
4. requiring public officials and state employees who must file
statements of financial interests with OSE to file them
electronically using software the office creates (§ 7, see
BACKGROUND);
5. exempting certain gifts from the codes' gift prohibition (§§ 1 &
12) and clarifying who must report certain expenditures to a
beneficiary public official or state employee (§ 8);
6. requiring certain state regulatory agencies, in consultation with
OSE, to annually submit a statement designating the agency
positions which are subject to the public officials code's
revolving door provisions (§ 9);
7. extending the prohibited activities that apply to state-hired 2021HB-06574-R000438-BA.DOCX
Researcher: JP Page 2 4/14/21
consultants and independent contractors to include persons they
employ (§ 10);
8. exempting students serving as public officials from certain code
provisions (§ 11);
9. extending the Citizen's Ethics Advisory Board's (CEAB) deadline
for final hearing decisions on violations (§§ 6 & 13); and
10. clarifying that both individuals employing lobbyists and those
employed as lobbyists are subject to the Code of Ethics for
Lobbyists' prohibition on contingency fee lobbying (§ 14).
The bill repeals several obsolete provisions related to the 2005
transfer of OSE from the State Ethics Commission and extending
deadlines for probable cause hearings in the same year. It also repeals
a requirement that OSE conduct annual conferences on ethical issues (§
15).
Finally, the bill makes numerous technical and conforming changes.
EFFECTIVE DATE: October 1, 2021, except the provision defining
the Paid Family and Medical Leave Insurance Authority as a quasi-
public agency is effective July 1, 2021.
§§ 1, 3, 8 & 11-12 — STATE ETHICS CODES
Gift Exemption (§§ 1 & 12)
The State Codes of Ethics generally prohibit public officials and
state employees from accepting gifts (generally anything of value
exceeding $10) from restricted donors (e.g., registered lobbyists and
prequalified state contractors). It similarly prohibits restricted donors
from making these gifts. However, existing law establishes several
exemptions from these prohibitions, including one for gifts received
from certain members of the individual's or his or her spouse's family.
The bill additionally exempts gifts received from the individual's or
spouse's grandparent.
Confidential Information (§ 3) 2021HB-06574-R000438-BA.DOCX
Researcher: JP Page 3 4/14/21
The Code of Ethics for Public Officials generally prohibits current
and former public officials and state employees, as well as state
consultants and independent contractors, from using, for financial
gain, confidential information they acquire in performing their duties.
“Confidential information” is currently defined in OSE's regulations
but not in state law (Conn. Agencies Reg. § 1-81-15).
The bill codifies the definition in state law with minor changes.
Under the bill, confidential information is any information possessed
by the state, a state employee, or a public official, whatever its form,
that is (1) prohibited from disclosure to the general public under any
state or federal law, or (2) permissibly nondisclosable under the
Freedom of Information Act, and the appropriate agency, state
employee, or public official has decided not to disclose it to the general
public.
Notice of Certain Donations (§ 8)
The bill clarifies that a person who gives anything valued at more
than $10 to a public official or state employee (either directly or
through a representative) must comply with certain reporting
requirements if the person is (1) doing business with, or seeking to do
business with, the official’s or employee’s employing department or
agency or (2) engaged in activities that the department or agency
directly regulates.
Under the reporting requirements, the donor must give the
recipient’s department or agency a written report within 10 days
stating (1) the donor’s name, (2) a description of the item or items
given and their value, and (3) the cumulative value of all items given
to the individual during the calendar year. The Code of Ethics for
Lobbyists contains an identical reporting requirement (CGS § 1-97(d)).
College Student Exemption (§ 11)
The bill extends, in part, the exemption from certain provisions of
the Code of Ethics for Public Officials that applies to student
employees of a state college or university to also apply to students
who serve as public officials by virtue of their student status at a state 2021HB-06574-R000438-BA.DOCX
Researcher: JP Page 4 4/14/21
college or university (e.g., a student member of the board of trustees).
This includes exemptions from the code’s provisions on prohibited
activities, disclosure or use of confidential information, and conflicts of
interest.
As under current law for student employees, the above exemptions
are valid only if the student's institution has (1) adopted related
written policies and procedures and (2) the policies and procedures
have been approved by CEAB. The law requires institutions to submit
(1) their policies and procedures to the board triennially and (2) any
significant revisions within 30 days of their adoption.
Under existing law, student employees are additionally exempt
from (1) restrictions on certain expense-paid travel provided by
prospective employers and (2) a requirement to wait one year before
accepting certain post-employment opportunities (CGS §§ 1-79(5)(R)
and 1-84b(h)).
§§ 9 & 10 — PROHIBITED ACTIVITIES UNDER THE ETHICS CODE
Positions Subject to Revolving Door Provisions (§ 9)
The Code of Ethics for Public Officials generally prohibits public
officials and state employees in certain regulatory agencies who hold
positions with significant decision-making or supervisory
responsibilities from accepting employment for one year after leaving
state service with a business subject to regulation by their former
agency. (The prohibition is two years for certain employment in the
gaming industry.) Under current law, covered positions are designated
by OSE, in consultation with the applicable agency, and adopted as
regulations by CEAB.
By November 1, 2021, and at least annually from then on, the bill
instead requires the heads of certain executive branch regulatory
agencies or their designees to electronically submit to OSE
designations of all existing positions that are subject to these
restrictions. They must do so in a manner CEAB prescribes. As under
current law, they must make these designations in consultation with
OSE. 2021HB-06574-R000438-BA.DOCX
Researcher: JP Page 5 4/14/21
Under the bill, the agency head or designee must submit any newly
created positions that are subject to these provisions, but not included
in the annual submission to OSE, within 30 days after the position’s
creation. OSE must prepare a list of all designated positions and post it
on its website.
As under current law, the designation requirement applies to the
Office of Health Strategy's Health Systems Planning Unit; Connecticut
Siting Council; Department of Banking; Insurance Department;
Department of Emergency Services and Public Protection; the Public
Utilities Regulatory Authority, including the Office of Consumer
Counsel; and the Department of Consumer Protection.
Consultants and Independent Contractors (§ 10)
The Code of Ethics for Public Officials prohibits state agency
consultants and independent contractors from engaging in certain
unethical bidding or contracting practices. The bill extends these
prohibitions to cover individuals employed by these consultants and
independent contractors. In doing so, it prohibits these individuals
from the following:
1. using their contractual authority, or any confidential
information acquired in performing the contract, to obtain
financial gain for themselves, immediate family members, or
their employees and immediate family members;
2. accepting another state contract that impairs their judgment on
the existing contract; or
3. accepting anything of value based on an understanding that it
would influence their action on behalf of the state.
Current law similarly prohibits a person from giving anything of
value to a consultant or independent contractor hired by the state
based on an understanding that it would influence the consultant's or
independent contractor's actions. The bill extends this prohibition to
giving anything of value to a consultant's or independent contractor's
employee under these circumstances. 2021HB-06574-R000438-BA.DOCX
Researcher: JP Page 6 4/14/21
The bill subjects violators of the above prohibitions to existing law's
penalties for violating the Code of Ethics for Public Officials. By law,
OSE may impose a civil penalty of up to $10,000 per violation.
Additionally, a person who intentionally violates the code is guilty of a
class A misdemeanor, punishable by up to one year in prison, a fine of
up to $2,000, or both, for a first violation (or a class D felony if the
violator derived a financial benefit of at least $1,000 from the violation)
and a class D felony for subsequent violations. A class D felony is
punishable by up to five years in prison, a fine of up to $5,000, or both.
The bill also makes violators liable to the state for damages equal to
the amount of the financial advantage. CEAB must immediately
inform the attorney general of the violation (CGS §§ 1-88 and -89).
§§ 4-6 & 13 — OFFICE OF STATE ETHICS & CITIZEN'S ETHICS
ADVISORY BOARD
Ethics Enforcement Officer (§§ 4 & 5)
The bill authorizes OSE’s ethics enforcement officer (whom the bill
specifies must be a member of the Connecticut bar) to represent the
office before the Superior Court in an appeal of any ruling or finding
arising under the ethics codes for public officials, lobbyists, and state
contractors as long as CEAB is not a party in the appeal (e.g., enforcing
a subpoena). Under existing law, OSE's legal division (which is
separate from the enforcement division) represents CEAB in all
matters in which the board is a party (e.g., appeals of final decisions)
unless the board requests the attorney general's assistance (CGS § 1-
81(f)).
Complaint Procedures and Time Limits (§§ 6 & 13)
The bill extends the deadline, from 15 to 45 days after a public
hearing on a State Codes of Ethics violation, by which CEAB must
publish its finding and a memorandum explaining the reasons for the
finding (i.e., its final decision).
BACKGROUND
Statements of Financial Interest (SFI)
By law, a person must file an SFI if he or she is, among other things, 2021HB-06574-R000438-BA.DOCX
Researcher: JP Page 7 4/14/21
a (1) statewide elected officer, legislator, department head or deputy
department head, member or director of a quasi-public agency, or
member of the Investment Advisory Council; (2) member of the
Executive Department designated by the governor; or (3) quasi-public
agency employee designated by the governor. The SFIs must be filed
annually by May 1. Additionally, filers who leave their position or
office must file a final SFI that covers their activities from the most
recent filing through their departure. They must do so within 60 days
after being notified by OSE.
COMMITTEE ACTION
Government Administration and Elections Committee
Joint Favorable Substitute
Yea 18 Nay 0 (03/29/2021)