LEGISLATIVE HISTORY OF LAW REQUIRING STATEMENTS OF FINANCIAL INTERESTS

You asked for the legislative history of CGS § 1-83, which requires public officials to file annual statements of financial interests with the State Ethics Commission. You are specifically interested in why public officials were first required to file the statement.

Since 1971 (PA 71-822), the law has required certain public officials to file statements of financial interests. Initially they filed the statement with the Joint Legislative Ethics Committee. Six years later in a major revision of the state’s ethics laws the General Assembly abolished the legislative committee and established a State Ethics Commission, which performed the same functions as the committee, including acting as a repository for statements of financial interests.

The 1971 requirement was a part of a comprehensive Code of Ethics covering members and employees of the General Assembly and executive department and employees of the Judicial Department. Under the law, all state officials and employees, except judges and Executive Branch employees subject to the State Personnel Act, had to file a statement of financial interests with the Legislative Ethics Committee. In the 1977 revision (PA 77-600), the General Assembly reduced the class of state officials required to file the statements and made minor changes to the

information they were required to file. Under the new law, statewide elected officials, members of the General Assembly, commissioners, deputy commissioners, and such members of the executive branch as the governor required had to file the statement.

The legislative history of PA 71-822 shows that a bipartisan subcommittee of the Judiciary Committee was formed to draft a state ethics code, in part, to “upgrade the public image of the legislature. ” (The law was enacted shortly after the Office of Legislative Management was created to upgrade the technical operation of legislative business. ) The subcommittee began its work by reviewing the codes of ethics in the 26 states that had adopted such legislation. It appears that the subcommittee used the “best” parts of these codes as the model for our state code.

The Judiciary Committee favorably reported the bill (SB 548) that became PA 71-822. There is no transcript of any public hearing testimony. The bill passed the House and Senate on a voice vote.

The law on financial statements has been amended numerous times since 1977, with changes to both the public officials required to file them and the information required to be filed.

The act required all state officials and employees, except judges and executive branch employees subject to the State Personnel Act, to file with the Legislative Ethics Committee a statement of economic interest likely to create conflicts of interest. These officials and employees had to include in the statement a list of the economic interests of their spouse and minor children. The types of information to be filed included:

1. stocks, bonds, realty, and equity or creditor interest in proprietorships, partnerships, or other business entities, but not interest on (a) checking or savings accounts, or (b) securities equal to less than $ 5,000 or representing less than 5% of equity;

2. a list of employers or directorships or offices held; and

3. the names of people who provided income of more than $ 5,000.

The committee prescribed the frequency with which the statements had to be filed, except officials and employees had to file statements within 30 days after acquiring any listed economic interest.

The statement was treated confidentially and held for up to two years after the filer left office or state employment. The Ethics Committee could, however, inspect the statement after determining that a verified complaint against the filer alleged facts sufficient to constitute an ethics violation.

The act reduced the class of officials required to file the statements. It required statewide elected officials, members of the General Assembly, commissioners, deputy commissioners, and such members of the executive branch as the governor required to file the statements. The statements had to be filed annually, rather than at such times as the committee prescribed, and they were public documents, except that the names of clients or customers providing more than $ 5,000 in income were confidential.

1. reduced, from $ 5,000 to $ 1,000, the threshold for reporting income;

2. required the addresses as well as the names of people providing the income;

3. required a list of all security interests, including real property owned or held in trust for the official or his family, rather than just interests valued at more than $ 5,000 and representing more than 5% of the total equity interest; and

4. required the disclosure of the existence and names of trustees of property held in a blind trust.

There have been numerous changes to the law on financial statements since 1977. The major changes, by category, are as follows:

1. Gaming Policy Board members and the executive director of the Division of Special Revenue (PA 79-549);

3. Sheriffs and deputy sheriffs (later changed to marshals) file limited statements (PA 84-335);

4. Members or directors of all quasi-public agencies, instead of just the Connecticut Resource Recovery Authority’s board of directors, and such quasi-public agency employees as the governor requires (PA 88-225); and

5. Investment Advisory Council members (PA 00-43).

1. Increased the threshold for reporting the names and addresses of income sources from $ 5,000 to $ 10,000 (PA 89-145), and

2. Removed the income source reporting requirement (PA 97-6).

PA 88-139 changed the annual deadline for filing statements of financial interests from April 15 to May 1.

PA 83-586 requires filers who leave their office or position during their term to file a statement after their departure.


February 24, 2004		2004-R-0209
LEGISLATIVE HISTORY OF LAW REQUIRING STATEMENTS OF FINANCIAL INTERESTS

By: Sandra Norman-Eady, Chief Attorney