HOUSE BILL REPORT
ESB 5201
As Amended by the House
BYSenator Halsan
Revising conflict of interest laws for state employees and officials.
House Committe on Constitution, Elections & Ethics
Majority Report: Do pass with amendment. (6)
Signed by Representatives Fisher, Chair; Pruitt, Vice Chair; Amondson, Barnes, Fisch and Leonard.
House Staff:Kenneth Hirst (786-7105)
AS PASSED HOUSE APRIL 8, 1987
BACKGROUND:
In general, the Executive Conflict of Interest Act: prohibits state employees from participating or assisting in certain transactions involving the state; prohibits them from seeking or receiving gifts or other things of economic value given because of their positions; restricts the compensation or consideration that certain employees may receive for their personal services; and limits certain actions of former employees of the state. The act identifies certain exceptions to its prohibitions and authorizes other exceptions.
The governor is responsible for establishing standards under the act and for establishing procedures to be used by a state employee in disqualifying himself or herself from participating in a transaction.
SUMMARY:
The Executive Conflict of Interest Act is amended. No state employee may: (1) ask or receive any compensation, gratuity, or reward (other than that provided by law) for performing an official duty or ask or receive it for omitting or deferring the performance of such a duty; (2) be beneficially interested in any contract, sale, lease, or purchase that may be made by, through, or under the supervision of the employee or accept any compensation, gratuity, or reward from any other person beneficially interested; or (3) employ or use any person, money, or property under the employee's official control or direction or custody for the private benefit or gain of the employee or another.
No former state employee may: (1) at any time subsequent to his or her state employment, assist another person in any transaction involving the state in which the former employee at any time participated during state employment, or share in the compensation received by another for such assistance (these provisions prohibiting the sharing of compensation do not apply to former state employees who were required by statute to have been active members of the state bar association and subject to the code of professional responsibility); or (2) accept an offer of employment or receive compensation from any private business if the state employee knows or has reason to believe that the offer of employment or compensation was intended as compensation or reward for the performance or nonperformance of a duty by the state employee during the course of state employment.
No former state employee may, within a period of one year from the date of the termination of state employment accept employment, or receive compensation from any private business if he or she, during the two years immediately preceding state termination, was engaged in the negotiation or administration on behalf of the state or agency of one or more contracts with a total value of more than $10,000 with that business and the former state employee was in a position to make discretionary decisions concerning that negotiation or administration. This restriction applies if the duties of the employment by the private business or the activities for which compensation would be received include fulfilling or implementing the provisions of such a contract or contracts.
Exemptions from these limitations on the actions of former state employees are listed. Former state employees also qualify for exemptions from these limitations that are provided for state employees.
Provisions of the Executive Conflict of Interest Act are repealed which govern the participation of a state employee in transactions involving the state in which the employee has a substantial economic interest and require the governor to establish procedures to be used by a state employee in disqualifying himself or herself from participation in a transaction. Provisions of the Act are also repealed which govern the participation of a former state employee in transactions involving the state.
Fiscal Note: Not Requested.
House Committee ‑ Testified For: Chuck Sauvage, Common Cause; Jim Pharris, Office of the Attorney General.
House Committee - Testified Against: None Presented.
House Committee - Testimony For: (1) The current law is not very effective; it requires actions by the governor that have not been taken over a period of time encompassing several administrations. The provisions of this bill do not require those actions for the limitations to be effective. (2) Just what is meant by several provisions of the law being repealed is unclear. This bill provides better guidelines. (3) The provisions regarding former state employees apply to those who could exercise administrative discretion, not to those who performed ministerial tasks.
House Committee - Testimony Against: The term "state officer" used in the bill is a carry-over from drafts of previous years which had wider goals; the term should be stricken from this bill.