HB 5407 — AN ACT DEFINING "DEPENDENT CHILD" FOR PURPOSES OF THE STATE CODE OF ETHICS FOR PUBLIC OFFICIALS AND CONCERNING THE EXERCISE OF JURISDICTION OVER NONRESIDENTS BY THE OFFICE OF STATE ETHICS.

Substitute House ofBill Representatives General Assembly File No.

2885407 FebruaryPublic Session,Act 2024 Substitute House Bill No.

540724-128 HouseAN ofACT Representatives,DEFINING April"DEPENDENT 4,CHILD" 2024FOR ThePURPOSES CommitteeOF onTHE GovernmentSTATE AdministrationCODE andOF ElectionsETHICS reportedFOR throughPUBLIC REP.OFFICIALS AND CONCERNING THE EXERCISE OF JURISDICTION OVER NONRESIDENTS BY THE OFFICE OF STATE ETHICS.

BLUMENTHAL of the 147th Dist., Chairperson of the Committee on the part of the House, that the substitute bill ought to pass.

AN ACT DEFINING "DEPENDENT CHILD" FOR PURPOSES OF THE STATE CODE OF ETHICS FOR PUBLIC OFFICIALS AND CONCERNING THE EXERCISE OF JURISDICTION OVER NONRESIDENTS BY THE OFFICE OF STATE ETHICS.

(a) [In addition to its jurisdiction over persons who are residents of sHB5407this /state, Filethe Office of State Ethics may] For the purposes of this part, the exercise ofpersonaljurisdiction by theOffice ofState Ethics over any nonresident person, or the agent of such nonresident person, is limited to any such person or agent who makes a payment of money or gives anything of value to a public official or state employee in violation of Substitute House Bill No.

2885407 1section1-101nn, sHB5407or Filewho No.is,or isseeking to be,prequalifiedunder section 4a-100.

288Approved thisJune state,5, the2024 OfficePublic ofAct StateNo. Ethics may] For the purposes of this part, the exercise ofpersonaljurisdiction by theOffice ofState Ethics over any nonresident person, or the agent of such nonresident person, is limited to any such person or agent who makes a payment of money or gives anything of value to a public official or state employee in violation of section1-101nn, or who is,or isseeking to be,prequalifiedunder section 4a-100.

This24-128 act2 shallof take2 effect as follows and shall amend the following sections:

Section 1 October 1, 2024 1-79(22) Sec.

2 from passage 1-101oo(a) Statement of Legislative Commissioners:

In the introductory language of Section 1, "of the 2024 supplement" was added for accuracy and Section 1 was redrafted for clarity.

GAE Joint Favorable Subst.

-LCO sHB5407 / File No.

288 2 sHB5407 File No.

288 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

None Municipal Impact:

None Explanation This bill defines and includes dependent children into the existing provisions in the state code of ethics resulting in no fiscal impact.

This can be completed within existing resources.

The Out Years State Impact:

None Municipal Impact:

None sHB5407 / File No.

288 3 sHB5407 File No.

288 OLR Bill Analysis HB 5407 AN ACT DEFINING "DEPENDENT CHILD" FOR PURPOSES OF THE STATE CODE OF ETHICS FOR PUBLIC OFFICIALS AND CONCERNING THE EXERCISE OF JURISDICTION OVER NONRESIDENTS BY THE OFFICE OF STATE ETHICS.

SUMMARY This bill defines a “dependent child” in the state’s Code of Ethics for Public Officials as a covered official’s son, daughter, or stepchild who qualifies as the official’s dependent child under federal tax law.

Generally, to qualify as a dependent child under federal tax law, a child must (1) share a principal residence with the official;

(2) be under age 19 or 24, if a student;

(3) have provided for less than half of their own support for the year;

and (4) not have filed a joint return with their spouse.

Although the Code of Ethics currently does not define a “dependent child,” under it public officials have a substantial conflict of interest if their dependent child will get a direct monetary gain or suffer a direct monetary loss because of their official activity (unless it accrues to the child as a member of a profession, occupation, or group to no greater extent than other members of that profession, occupation, or group) (CGS § 1-85).

Officials must also include certain information about their dependent children in the statements of financial interest they must file (CGS § 1-83).

The bill also specifies that the Office of State Ethics’ (OSE) long-arm jurisdiction over out-of-state residents or their agents is limited to those who (1) pay money or give anything of value to a public official or state employee to obtain a competitive advantage, solicit non-public information, or unduly influence the award of certain state contracts or sHB5407 / File No.

288 4 sHB5407 File No.

288 (2) are, or are seeking to become, prequalified state contractors or substantial subcontractors.

EFFECTIVE DATE:

October 1, 2024, except that the provision on OSE’s long-arm jurisdiction is effective upon passage.

COMMITTEE ACTION Government Administration and Elections Committee Joint Favorable Yea 19 Nay 0 (03/15/2024) sHB5407 / File No.