AN ACT CONCERNING MUNICIPAL ETHICS.

This bill establishes a model code of municipal ethics. The model code contains provisions on conflicts of interest, gifts, use of municipal property and positions, and “revolving door. ”

The bill requires municipalities to adopt a code of ethics that contains specified minimum provisions and provides that any municipality that adopts a code with these provisions or the model code by October 1, 2010 satisfies the bill's requirement. The law, unchanged by the bill, allows municipalities to adopt an ethics code, without specifying its contents.

(It is unclear whether the requirement applies to town and cities only or whether it also includes boroughs, consolidated towns and cities, and special districts because “municipality” is undefined. However, the model code that the bill establishes and that “municipalities” may adopt defines “municipality” as town, cities, boroughs, consolidated towns and cities, and special districts. )

By January 15, 2011, the bill requires each municipality to notify the Office of State Ethics (OSE) of its compliance with the code requirement and to include a copy of its ethics code with the notice. By January 1, 2012, OSE must submit a compliance status report to the Government Administration and Elections Committee.

Municipalities satisfy the bill's code requirement if they adopt an ethics code by October 1, 2010 that, at a minimum, has provisions on:

1. conflicts of interest that prohibit municipal public officials and employees from participating in any matter in which they have a personal or financial interest;

2. disclosure and recusal that require municipal public officials and employees to (a) disclose, in writing, conflicts of interest and (b) recuse themselves from any decision-making regarding a matter that presents a conflict of interest;

3. gifts that prohibit municipal public officials and employees from soliciting or accepting anything of value that could reasonably be expected to influence their actions or judgment;

4. use of property that prohibit municipal public officials and employees from using municipal property in a way that benefits them more than a member of the general public when the property is made available to the general public;

5. representation of private interests that prohibit municipal public officials from representing a private interest before their board or commission for at least six months after they terminate their services on the board; and

6. use of position that prohibit municipal public officials and employees from using information acquired through their position to further their own personal or financial interests.

Municipalities that do not adopt a code with the above-stated minimum provisions by October 1, 2010 may alternatively adopt the following municipal model code. The model code reads as follows:

(1) “Business” means any entity through which business for profit or not-for-profit is conducted, including a corporation, partnership, proprietorship, firm, enterprise, franchise, association, organization or self-employed individual.

(2) “Business with which he is associated” means any sole proprietorship, partnership, firm, corporation, trust or other entity through which business for profit or not-for-profit is conducted of which the public employee or public official or member of his or her immediate family is a director, officer, owner, limited or general partner, beneficiary of a trust or holder of stock constituting five per cent or more of the total outstanding stock of any class, provided a public employee or public official or member of his or her immediate family shall not be deemed to be associated with a not-for-profit entity solely by virtue of the fact that the public employee or public official or member of his or her immediate family is an unpaid director or officer of the not-for-profit entity. As used in this subdivision, “officer” refers only to the president, executive or senior vice president or treasurer of such business.

(3) “Confidential information” means information, whether transmitted orally or in writing, that is obtained by reason of the public position or office held and is of such nature that it is not, at the time of transmission, a matter of public record or public knowledge.

(4)Financial interest” means any interest with a monetary value of one hundred dollars or more or that generates a financial gain or loss of one hundred dollars or more per person in a calendar year.

(5) “Gift” means anything of value, including entertainment, food, beverage, travel and lodging given or paid to a public official or public employee to the extent that consideration of equal or greater value is not received. A gift does not include:

(A) A political contribution otherwise reported as required by law or a donation or payment as described in subdivision (9) or (10) of subsection (b) of section 9-601a of the general statutes;

(B) Services provided by persons volunteering their time, if provided to aid or promote the success or defeat of any political party, any candidate or candidates for public office or the position of convention delegate or town committee member or any referendum question;

(D) A gift received from (i) an individual's spouse, fiancé or fiancée, (ii) the parent, brother or sister of such spouse or such individual, or (iii) the child of such individual or the spouse of such child;

(E) Goods or services that are provided to the municipality and facilitate governmental action or functions;

(F) A certificate, plaque or other ceremonial award costing less than one hundred dollars;

(H) Printed or recorded informational material germane to governmental actions or functions;

(I) An honorary degree bestowed upon a public official or public employee by a public or private university or college;

(J) A meal provided at an event or the registration or entrance fee to attend such an event, in which the public employee or public official participates in his or her official capacity;

(K) A meal provided in the home by an individual who resides in the municipality;

(L) A gift, including, but not limited to, food or beverage, or both, provided by an individual for the celebration of a major life event such as the birth or adoption of a child, a wedding, a confirmation or a bar or bat mitzvah and a funeral, provided any such gift provided by an individual who is not a member of the family of the recipient shall not exceed two hundred fifty dollars. As used in this subparagraph, “major life event” shall not include any event that occurs on an annual basis such as an anniversary except personal gifts of up to twenty-five dollars per occasion, aggregating no more than fifty dollars per recipient in a calendar year, shall be permitted to a minor incident to a birthday or other traditional gift-giving occasion such as Christmas or Chanukah;

(M) Anything of value provided by an employer of (i) a public official, (ii) a public employee, or (iii) a spouse of a public official or public employee, to such official, employee or spouse, provided such benefits are customarily and ordinarily provided to others in similar circumstances;

(N) Anything having a value of not more than ten dollars, provided the aggregate value of all things provided by a donor to a recipient under this subparagraph in any calendar year shall not exceed fifty dollars; or

(O) Training that is provided by a vendor for a product purchased by a municipality that is offered to all customers of such vendor.

(6) “Immediate family” means any spouse, child or dependent relative who resides in the individual's household.

(8) “Individual with whom one is associated” means an individual with whom the person or a member of his or her immediate family mutually has an interest in any business.

(9) “Official responsibility” means the direct administrative or operating authority, whether intermediate or final and whether exercisable personally or through subordinates, to approve, disapprove or otherwise direct government action.

(10) “Municipality” means any town, city, borough, consolidated town and city, consolidated town and borough and includes any special district contained therein.

(11) “Person” means an individual, sole proprietorship, trust, corporation, limited liability company, union, association, firm, partnership, committee, club or other organization or group of persons.

(12) “Personal interest” means an interest in any action taken by the municipality in which an individual will derive a nonfinancial benefit or detriment but which will result in the expenditure of municipal funds.

(13) “Public employee” means a person employed, whether part time or full time, by the municipality or a political subdivision thereof.

(14) “Public official” means an elected or appointed official, whether paid or unpaid or part time or full time, of a municipality or political subdivision thereof, including candidates for the office and includes a district officer elected pursuant to section 7-327 of the general statutes.

(15) “Special district” means a district established pursuant to section 7-324 of the general statutes.

(16) “Trust” means a trust in which any public official or public employee or member of his or her immediate family has a present or future interest that exceeds ten per cent of the value of the trust or that exceeds fifty thousand dollars, whichever is less, but shall not include blind trusts.

(1) No public employee or public official shall engage in or participate in any business or transaction, including outside employment with a private business, or have an interest, direct or indirect, that is incompatible with the proper discharge of his or her official responsibilities in the public interest or that would tend to impair his or her independent judgment or action in the performance of his or her official responsibilities.

(2) (A) No public employee or public official shall solicit or accept any gift from any person who, to his or her knowledge, is interested in any pending matter within such individual's official responsibility.

(B) If a prohibited gift is offered, he or she must refuse it, return it, pay the donor the market value of the gift or donate it to a nonprofit organization provided he or she does not take the corresponding tax write-off. Alternatively, such prohibited gift may be considered a gift to the municipality provided it remains in the municipality's possession permanently.

(3) (A) A public employee or public official shall refrain from voting upon or otherwise participating in any matter on behalf of the municipality if he or she, a business with which he or she is associated, an individual with which he or she is associated or a member of his or her immediate family has a financial or personal interest in the transaction or contract, including, but not limited to, the sale of real estate, material, supplies or services to the municipality.

(B) If such participation is within the scope of the public employee's or public official's official responsibility, he or she shall be required to provide written disclosure, that sets forth in detail the nature and extent of such interest, to the town clerk.

(C) Notwithstanding the prohibition in subparagraph (A) of this subdivision, a public employee or public official may vote or otherwise participate in a matter that involves a determination of general policy if the employee's or official's interest in the matter is shared with a substantial segment of the population of the municipality.

(4) (A) Except for a public official who receives no compensation for his or her service to the municipality, other than per diem payments and reimbursement of expenses, no public employee or public official shall appear on behalf of private interests before any board agency or committee of the municipality.

(B) Except for a public official who receives no compensation for his or her service to the municipality, other than per diem payments and reimbursement of expenses, no public employee or public official shall represent private interests against the interest of the municipality in any litigation to which the municipality is a party.

(5) Nothing contained in this code shall prohibit or restrict a public employee or public official from appearing before any board or commission of the municipality on his or her own behalf, or from being a party in any action, proceeding or litigation brought by or against such public employee or public official to which the municipality is a party.

(6) No public employee or public official shall disclose confidential information concerning municipal affairs, nor shall such public employee or public official use such information for the financial interests of himself or herself or others.

(7) No public employee or public official shall request or permit the use of municipally-owned vehicles, equipment, facilities, materials or property for personal convenience or profit, except when such are available to the public generally or are provided as municipal policy for the use of such public employee or public official in the conduct of official business.

(8) No public employee or public official, or a business with which he or she is associated or member of his or her immediate family shall enter into a contract with the municipality unless it is awarded through a process of public notice and competitive bidding.

(9) No public employee or public official shall use his or her position or office for the financial benefit of himself or herself, a business with which he is associated, an individual with which he or she is associated or a member of his or her immediate family.

(10) No public employee or public official shall accept a fee or honorarium for an article, appearance or speech or for participation at an event in his or her official capacity.

(11) No public employee or public official or member of such individual's immediate family or business with which he is associated shall solicit or accept anything of value, including, but not limited to, a gift, loan, political contribution, reward or promise of future employment based on any understanding that the vote, official action or judgment of the public employee or public official would be or had been influenced thereby.

(12) No person shall offer or give to a public employee or public official or member of such individual's immediate family or business with which he is associated, anything of value, including, but not limited to, a gift, loan, political contribution, reward or promise of future employment based on any understanding that the vote, official action or judgment of the public employee or public official would be or had been influenced thereby.

(13) (A) No public employee or public official or member of the immediate family of a public employee or public official shall knowingly accept, directly or indirectly, any gift costing one hundred dollars or more in any calendar year from a public employee or public official who is under the supervision of such public employee or public official.

(B) No public employee or public official or member of the immediate family of a public employee or public official shall knowingly accept, directly or indirectly, any gift costing one hundred dollars or more in any calendar year from a public employee or public official who is a supervisor of such public employee or public official.

(C) No public employee or public official shall knowingly give, directly or indirectly, any gift in violation of subparagraph (A) or (B) of this subdivision.

(14) No public employee or public official shall knowingly counsel, authorize or otherwise sanction action that violates any provision of this code.

(15) No former public employee or public official shall appear for compensation before any municipal board or agency in which he or she was formerly employed at any time within a period of one year after termination of his or her service with the municipality.

(16) No former public employee or public official shall represent anyone other than the municipality concerning any particular matter in which he or she participated personally and substantially while in municipal service.

(17) No former public employee or public official shall disclose or use confidential information acquired in the course of and by reason of his or her official duties, for financial gain for himself or herself or others.

(18) No former public employee or public official who participated substantially in the negotiation or award of a municipal contract obliging the municipality to pay an amount of twenty-five thousand dollars or more, or who supervised the negotiation or award of such contract shall accept employment with a party to the contract other than the municipality for a period of one year after such contract is signed. "

The House referred the bill (File 675) to the Appropriations Committee, which delays, from March 1, 2011 until January 1, 2012, the date by which OSE must submit the municipal ethics compliance status report to the Government Administration and Elections Committee.

sHB 6690 (File 674), also favorably reported by the Government Administration and Elections Committee, requires municipal lobbyists to register with the Office of State Ethics.