HOUSE BILL REPORT

                 ESHB 2128

                    As Passed Legislature

Title:  An act relating to ethics in public service.

Brief Description:  Stating how a state officer or employee may receive a contract or grant in compliance with the ethics code.

Sponsors:  By House Committee on Government Administration (originally sponsored by  Representatives Sheahan, Appelwick, Cooke, Radcliff, Dyer, Cooper, Schoesler, Costa, D. Schmidt and Anderson).

Brief History:

Committee Activity:

Government Administration:  3/4/97, 3/5/97 [DPS].

Floor Activity:

Passed House:  3/14/97, 94‑0.

Senate Amended.

House Concurred.

Passed Legislature.

HOUSE COMMITTEE ON GOVERNMENT ADMINISTRATION

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 13 members:  Representatives D. Schmidt, Chairman; D. Sommers, Vice Chairman; Scott, Ranking Minority Member; Gardner, Assistant Ranking Minority Member; Doumit; Dunn; Dunshee; Murray; Reams; Smith; L. Thomas; Wensman and Wolfe.

Staff:  Bill Lynch (786-7092).

Background:  In 1994 the Legislature enacted the State Ethics Act.  This act prescribes ethical standards for state officers and employees.

State officers and employees are prohibited from receiving anything of economic value under any contract outside of his or her official duties unless certain conditions have been met.  These conditions are (1) the contract must be bona fide and actually performed; (2) the performance or administration of the contract or grant is not within the course of the officer=s or employee=s official duties, or is not under the officer=s or employee=s official supervision; (3) the performance of the contract or grant is not prohibited by laws or rules governing outside employment; (4) the contract or grant is neither performed nor compensated by a person who is prohibited by law from furnishing a gift to the officer or employee; (5) the contract or grant would not result in the disclosure of confidential information; and (6) the contract or grant is not expressly created or authorized by the officer or employee in his or her official capacity or by his or her agency.

In addition to satisfying all the requirements for outside employment, a state officer or employee may have a beneficial interest in a contract or grant only if it was awarded through an open competitive bidding process, or it was not awarded through an open competitive bidding process, but the officer or employee was advised by the appropriate ethics board that the contract or grant would not create a conflict of interest.

Circumstances arise when a state officer or employee wishes to perform a contract or grant that is not created or authorized under the official capacity of the officer or employee, but the officer or employee is prohibited from performing the contract or grant because the officer=s or employee=s agency authorized it.

Summary of Bill:  The limitation on outside employment by state officers and employees is modified so that a contract or grant may be performed by an officer or employee of the agency authorizing the contract or grant, but the contract or grant cannot be expressly created or authorized by the officer or employee acting in his or her official capacity.

In addition to satisfying the requirements for outside employment, a state officer or employee may have an interest in a series of substantially identical contracts or grants if it is either awarded through an open competitive bidding process or the appropriate ethics board advises that the contracts or grants do not create a conflict of interest.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  The bill removes punitive restrictions where there are no conflicts occurring.  Part-time employees often are adversely affected.  This is not violating the spirit of the law.

Testimony Against:  None.

Testified:  Evonne Hedgepeth, Ph.D, citizen; and Greg Devereaux, Washington Federation of State Employees.