FINAL BILL REPORT

SB 5201

                                  C 426 L 87

BYSenator Halsan;by request of Attorney General

Revising conflict of interest laws for state employees and officials.

Senate Committee on Governmental Operations

House Committe on Constitution, Elections & Ethics

SYNOPSIS AS ENACTED

BACKGROUND:

The state Executive Conflict of Interest Act applies to employees within the executive branch of state government, including members of commissions, boards or any other multi-member governing body of an agency.  It prohibits certain conduct on the part of current and former state employees.

One statute within the Act prohibits a state employee from participating in transactions involving the state in which the employee may have an economic interest.  Another statute prohibits a former state employee from assisting another person in any transaction involving the state in which the former employee participated during his state employment.  Former state employees may not "appear" before the agency for which they worked within two years after leaving state employment.

The state Attorney General suggests that these provisions are ambiguous and difficult to enforce.

SUMMARY:

New language is added to the state Executive Conflict of Interest Act to clarify ethical restrictions concerning executive branch employees.  Two statutes are repealed.

Compensation other than that prescribed by law may not be accepted by an executive branch employee.  They may not be beneficially interested in any contract, sale, lease or purchase made by, through or under them, or for the benefit of their office.  State employees, money or property may not be used for private benefit or gain.

Within one year after leaving state employment, a former executive branch employee may not accept employment with or receive compensation from a private business under certain circumstances.  This restriction applies if, during the two years preceding termination of state employment, (1) the former state employee made discretionary decisions about the negotiation or administration of state contracts with the private business, if the contracts have a total combined value of at least $10,000, and (2) the former employee's duties within the business would include the fulfillment or implementation of the contracts.  This restriction is not to be construed to prevent a state employee from accepting employment with a state employee organization.

A former executive branch employee may not accept an offer of employment or compensation from a private business if the former employee knows or has reason to believe that the offer was intended to be compensation for performance or nonperformance of a duty during the course of state employment.

The provision in current law prohibiting a former state employee from assisting another person in any transaction involving the state in which the former state employee participated during state employment is modified.  The provision is not to be construed to prohibit employees or officers of state employee organizations from rendering assistance to state employees in the course of employee organization business.  Former state employees may render free assistance to others on government-related matters if the assistance is limited to providing telephone numbers, providing transportation, obtaining and completing government forms, or providing assistance to the poor and infirm.  In addition, former employees may assist, in transactions involving the state, close relatives, persons whom they are serving as legal representative, or current employees involved in disciplinary proceedings.

An existing exemption from prohibitions regarding former state employees is retained.  It concerns employees who were required during state service to have been active members of the State Bar Association.  The exemption enables these former employees to share in compensation received by another person (a partner in a law firm, for example) for assisting a third person in any transaction involving the state in which the former employee participated during state employment.

VOTES ON FINAL PASSAGE:

      Senate    46     0

      House 97   0 (House amended)

      Senate    47     0 (Senate concurred)

EFFECTIVE:July 26, 1987