HB 7327 — AN ACT CONCERNING REVISIONS TO THE STATE CODES OF ETHICS.

73275403 14 of 28 Raised Bill No.7327 General Assembly, or accept any employment which includes an agreement or understanding to influence, or which is inconsistent with, the performance of his or her official duties.

(i) (1) No public official or state employee or member of the official or employee's immediate family or a business with which [he] the person is associated shall enter into any contract with the state or a quasi-public agency, valued at one hundred dollars or more, other than a contract (A) of employment as a state employee, (B) with the Technical Education and Career System for students enrolled in a school in the system to perform services in conjunction with vocational, technical, technological or postsecondary education and training any such student is receiving at a school in the system, subject to the review process under subdivision (2) of this subsection, (C) with LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07315 of 28 R01-HB.docx } Substitute Bill No.

73275403 15 of 28 Raised Bill No.7327 a public institution of higher education to support a collaboration with such institution to develop and commercialize any invention or discovery, or (D) pursuant to a court appointment, unless the contract has been awarded through an open and public process, including prior public offer and subsequent public disclosure of all proposals considered and the contract awarded.

(k) No public official, spouse of the Governor or state employee shall accept a fee or honorarium for an article, appearance or speech, or for participation at an event, in the public official's, spouse's or state LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07316 of 28 R01-HB.docx } Substitute Bill No.

73275403 16 of 28 Raised Bill No.7327 employee's official capacity, provided a public official, Governor's spouse or state employee may receive payment or reimbursement for necessary expenses for any such activity in his or her official capacity.

(m) No public official or state employee shall knowingly accept, directly or indirectly, any gift, as defined in subdivision (5) of section 1-79, as amended by this act, from any person the public official or LCOstate {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-073217employee ofknows 28or R01-HB.docxhas }reason Substituteto Billknow: No.

7327(1) stateIs employeedoing knowsbusiness orLCO hasNo. reason to know:

(1)5403 Is17 doingof business28 Raised Bill No.7327 with or seeking to do business with the department or agency in which the public official or state employee is employed;

Any person prohibited from making a gift under this subsection shall report to the Office of State Ethics any solicitation of a gift from such person by a [statestate employee or]or public officialofficial. or state employee.

(2) The State Treasurer shall not pay any compensation, expenses or fees or issue any contract to any firm which provides investment services when (A) a political committee, as defined in section 9-601, established by such firm, or (B) a principal of the investment services firm has made a contribution, as defined in section 9-601a, to, or LCOsolicited {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07318contributions ofon 28behalf R01-HB.docxof, }any Substituteexploratory Billcommittee or candidate committee, as defined in section 9-601, established by the State Treasurer as a candidate for nomination or election to the office LCO No.

73275403 solicited18 contributionsof on28 behalfRaised of,Bill anyNo.7327 exploratory committee or candidate committee, as defined in section 9-601, established by the State Treasurer as a candidate for nomination or election to the office of State Treasurer.

LCO(3) {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07319No public official or state employee shall knowingly give, directly or indirectly, any gift in violation of 28subdivision R01-HB.docx(1) }or Substitute(2) Billof No.this subsection.

7327LCO (3)No. No public official or state employee shall knowingly give, directly or indirectly, any gift in violation of subdivision (1) or (2) of this subsection.

5403 19 of 28 Raised Bill No.7327 (q) No public official or state employee shall intentionally counsel, authorize or otherwise sanction action that violates any provision of this part.

Annually, the internal audit office of each constituent unit shall audit the constituent unit's compliance with such policies and report its findings to the committee of the constituent unit established pursuant LCOto {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07320subdivision (3) of 28this R01-HB.docxsubsection. } Substitute Bill No.

7327For purposes of this subsection, "consulting" means the provision of services for compensation to subdivisiona (3)public or private entity by a member of thisthe subsection.faculty or member of a faculty bargaining unit of a constituent unit of the state system of LCO No.

For5403 purposes20 of this28 subsection,Raised "consulting"Bill meansNo.7327 the provision of services for compensation to a public or private entity by a member of the faculty or member of a faculty bargaining unit of a constituent unit of the state system of higher education:

Each committee shall (i) review the annual reports submitted by the internal audit office for the constituent unit, pursuant to subdivision (2) of this subsection, (ii) make recommendations, annually, to the board of LCOtrustees {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07321of the constituent unit concerning the policies and procedures of 28the R01-HB.docxconstituent }unit Substituteestablished Billpursuant to subdivision (2) of this subsection, including any changes to such policies and procedures, and (iii) send a copy of such recommendations, in accordance with LCO No.

73275403 trustees21 of the28 constituentRaised unitBill concerningNo.7327 the policies and procedures of the constituent unit established pursuant to subdivision (2) of this subsection, including any changes to such policies and procedures, and (iii) send a copy of such recommendations, in accordance with section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to higher education and government administration.

A public official, including an elected state official, or state employee has an interest which is in substantial conflict with the proper discharge of his or her duties or employment in the public interest and of his or her responsibilities as prescribed in the laws of this state, if [he] such public official or state employee has reason to believe or expect that [he,he his]or suchshe, officialhis or employee,her suchspouse, official'sa LCOdependent {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07322child, ofor 28a R01-HB.docxbusiness }with Substitutewhich Bill[he] No.the person is associated will derive a direct monetary gain or suffer a direct monetary loss, as the case may be, by reason of his or her official activity.

7327A orpublic employee'sofficial, spouse,including aan dependentelected child,state orofficial, a business with which [he] the person is associated will derive a direct monetary gain or sufferstate aemployee directdoes monetarynot loss,have asan theinterest caseLCO mayNo. be, by reason of his or her official activity.

A5403 public22 official,of including28 anRaised electedBill stateNo.7327 official, or state employee does not have an interest which is in substantial conflict with the proper discharge of his or her duties in the public interest and of his or her responsibilities as prescribed by the laws of this state, if any benefit or detriment accrues to [him,[him] his] such public official or state employeeemployee, orhis such official's or employee'sher spouse, a dependent child, or a business with which [he] the person, [his] such official's or employee's spouse or [such] dependent child is associated as a member of a profession, occupation or group to no greater extent than any other member of such profession, occupation or group.

Subsection (b) of section 7-148h of the general statutes is repealed and the following is substituted in lieu thereof (Effective LCOOctober {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0732231, of2019): 28 R01-HB.docx } Substitute Bill No.

7327(b) OctoberNotwithstanding 1,the 2019):provisions of any special act, municipal charter or ordinance to the contrary, an elected official of any town, LCO No.

(b)5403 Notwithstanding23 the provisions of any28 specialRaised act,Bill municipalNo.7327 charter or ordinance, [to the contrary,] an elected official of any town, city, district or borough that has established a board, commission, council, committee or other agency under subsection (a) of this section, has an interest that is in substantial conflict with the proper discharge of the official's duties or employment in the public interest and of the official's responsibilities as prescribed by the laws of this state, if the official has reason to believe or expect that the official, the official's spouse or dependent child, or a business with which [he] the person is associated, as defined in section 1-79, as amended by this act, will derive a direct monetary gain or suffer a direct monetary loss, as the case may be, by reason of the official's official activity.

Any such elected official does not have an interest that is in substantial conflict with the proper discharge of the official's duties in the public interest and of the official's responsibilities as prescribed by the laws of this state, if any benefit or detriment accrues to the official, the official's spouse or dependent child, or a business with which [he,he his]or suchshe, officialhis or suchher official's spouse or such dependent child is associated as a member of a profession, occupation or group to no greater extent than to any other member of such profession, occupation or group.

(1) Use the authority provided [to the person] under the contract, or any confidential information acquired in the performance of the contract, to obtain financial gain for the [person] consultant or independent contractor, an employee of the [person] consultant or LCOindependent {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0732724contractor or a member of 28the R01-HB.docximmediate }family Substituteof Billany No.such [person] consultant, independent contractor or employee;

7327(2) independentAccept contractoranother state or aquasi-public memberagency ofcontract thewhich immediateLCO familyNo. of any such [person] consultant, independent contractor or employee;

(2)5403 Accept24 anotherof state28 orRaised quasi-publicBill agencyNo.7327 contract which would impair the independent judgment of the person in the performance of the existing contract;

LCO(b) {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07325If a judge trial referee indicates that probable cause exists for the violation of 28a R01-HB.docxprovision }of Substitutethis Billpart or section 1-101bb, the board shall initiate hearings to determine whether there has been a violation of LCO No.

73275403 (b)25 If a judge trial referee indicates that probable cause exists for the violation of a28 provisionRaised ofBill thisNo.7327 part or section 1-101bb, the board shall initiate hearings to determine whether there has been a violation of this part or section 1-101bb.

(1) The judge trial referee, or (2) any staff member of the Enforcement Division of the LCOOffice {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07326 of 28State R01-HB.docxEthics, }concerning Substitutethe Billcomplaint No.or the respondent.

7327The Officeboard shall find no person in violation of Stateany Ethics,provision concerningof thethis complaintpart or section 1-101bb except upon the respondent.concurring vote of two-thirds of its LCO No.

The5403 board26 shall find no person in violation of any28 provisionRaised ofBill thisNo.7327 part or section 1-101bb except upon the concurring vote of two-thirds of its members present and voting.

(Effective October 1, 2019) LCOThis {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07327act ofshall 28take R01-HB.docxeffect }as Substitutefollows Billand No.shall amend the following sections:

7327Section This1 actOctober shall1, take2019 effect1-79(5) asLCO followsNo. and shall amend the following sections:

Section5403 127 Octoberof 1,28 2019Raised 1-79(5)Bill Sec.No.

7327 Sec.

4 October 1, 2019 1-81(c) October 1, 2019 Sec.

5 October 1, 2019 1-81(g) Sec.

11 October 1, 2019 4e-2(j) October 1, 2019 Sec.

12 October 1, 2019 7-148h(b) Sec.

17 October 1, 2019 Repealer section Statement of LegislativePurpose: Commissioners:

InTo Sectionsmake 10revisions andto 12,the referencesState toCodes "heof orEthics she"concerning werethe changedscope toof "[he]gift suchprohibitions, officialreporting orof employee"gifts, forauthority clarityof the ethics enforcement officer, contracting with quasi-public agencies, activities involving consultants and inindependent Sectioncontractors, 9(d)findings "provision"of wasethics changedviolations, appropriating funds to "subsection"reimburse forcredit clarity.card processing fees and the repeal of certain provisions.

GAE[Proposed Jointdeletions Favorableare Subst.enclosed in brackets.

LCOProposed {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07327-additions 28are indicated by underline, except that when the entire text of 28a R01-HB.docxbill }or resolution or a section of a bill or resolution is new, it is not underlined.] LCO No.

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