Ethics 2/28/20061 The State Ethics Law and You Presented by:Deborah Danner, Senior Counsel March 2, 2006

Ethics 2/28/20062 Overview of the Course 4 Key Ethical Concepts 4 The State’s Ethics Law 4 Ethics Resources

Ethics 2/28/20063 Key Ethical Principles

Ethics 2/28/20064 “The reputation of a thousand years is determined by the conduct of one hour.” --Japanese Proverb

Ethics 2/28/20065 Why an Ethics Law? 4 An ethics law establishes minimum standards of conduct for performing public duties; 4 Supports public trust and confidence; 4 Eliminates impaired independent judgment; 4 Eliminates favoritism in performance of duties created by outside or personal interests.

Ethics 2/28/20066 Core Ethical Principle State employees hold a public trust that obligates them in a special way, to honesty and integrity in fulfilling responsibilities paramount in that trust is the principle that employees may not use position for personal gain or private advantage.

Ethics 2/28/20067 Components of Core Ethical Principles 4 Selflessness 4 Integrity 4 Objectivity 4 Accountability 4 Openness 4 Honesty

Ethics 2/28/20068 “The ultimate answer to ethical problems in government is honest people in a good ethical environment.” --John F. Kennedy

Ethics 2/28/20069 The State’s Ethics Law

Ethics 2/28/ Primary Topics for Discussion 4 Use of State Resources 4 Use of Resources for Political Purpose 4 Confidential Information 4 Gifts

Ethics 2/28/ Honoraria 4 Outside Employment 4 Conflicts of Interest 4 Post-employment Restrictions 4 Enforcement and Penalties

Ethics 2/28/ Use of State Resources Computer resources Office supplies Telephone

Ethics 2/28/ Use of State Resources 4 Employees may not use state resources for personal benefit or gain unless within express exception allowed by Ethics Law or WAC Resources include people, time, money and property. 4 An employee may use state resources to benefit others if part of that employee’s official duties.

Ethics 2/28/ Use of State Resources Narrowly Construed Occasional & limited use permitted if: 4 It does not result in any cost to the state; 4 It does not interfere with performance of official duties; 4 Brief and no disruption due to volume or frequency; 4 Does not compromise security or integrity of state information or software;

Ethics 2/28/ Examples of Acceptable Use: 4 Occasional local telephone call for medical and dental appointments, child or elder care arrangements, transportation coordination, etc. 4 Occasional and brief personal messages.

Ethics 2/28/ Examples of Improper Use: State resources cannot be used for: 4 Any purpose during breaks. 4 Any purpose after work hours. 4 Frequent and/or long personal telephone calls. 4 Lengthy and/or frequent personal messages.

Ethics 2/28/ Private use of resources prohibited even if no cost and occasional: 4 Any use for purpose of conducting an outside business, even if non- profit; 4 Supporting, promoting or soliciting for an outside organization or group UNLESS authorized by agency; 4 Any campaign or political use; 4 Commercial uses such as advertising or selling; 4 Illegal activity.

Ethics 2/28/ Additional Limits on Use of State Resources: 4 No private use of state property which has been removed from state facilities - even if no cost to state; 4 No private use of any state property which is consumable e.g. paper, pens, etc. 4 No private use of state computers or other equipment to access computer networks, data bases or bulletin boards for personal use unrelated to an official business purpose.

Ethics 2/28/ Reimbursement Generally Prohibited: Personal use of state resources may not be reimbursed so that there is no actual cost to the state. Allowing systematic reimbursement rationalizes personal use.

Ethics 2/28/ Use of State Resources for Political Campaigns Basic rule: A state officer/employee may not use state resources or facilities for political campaigns, or for promotion/ opposition to ballot proposition.

Ethics 2/28/ Definition of Agency Facilities Facilities of an agency are broadly construed to include, but are not limited to, stationery, postage, machines, equipment, use of state employees during working hours, vehicles, office space, publications of the agency, and clientele lists of persons served by the agency.

Ethics 2/28/ Knowing Acquiescence Prohibited An employee with authority to direct, control or influence the actions of another officer or employee may not knowingly acquiesce in the other employee’s use of state resources for a political campaign.

Ethics 2/28/ Political Activity Permitted if Normal & Regular Agency Conduct The prohibition against political campaigns and ballot opposition/support does not apply to activities that are part of the normal and regular conduct of the agency. (At EWU Legislative Affairs personnel).

Ethics 2/28/ Cautionary Tale Electronic mail, facsimile transmissions, and voic are technologies that may create an electronic record.... Such records may be subject to disclosure under the public disclosure law, or may be disclosed for audit or legitimate state operational or management purposes. WAC (7).

Ethics 2/28/ Confidential Information Top Secret Information

Ethics 2/28/ A State officer/employee may not either during or after employment: 1. Disclose confidential information to an unauthorized person or intentionally conceal a document subject to disclosure. 2. Disclose confidential information for personal benefit or to benefit another. 3. Accept employment or engage in business, if it might reasonably be expected to induce or require the disclosure of confidential information.

Ethics 2/28/ Concealment of Public Records Employees must disclose public records subject to the public disclosure act, RCW

Ethics 2/28/ Failure to Disclose Public Records 4 The employee who fails to release records must be able to demonstrate the decision to withhold the records was made in good faith. 4 Refer requests to University’s Public Records Officer.

Ethics 2/28/ Gift Analysis

Ethics 2/28/ Basic Rules for Gifts A state employee may not accept a gift... If it could reasonably be expected to influence the performance or nonperformance of the employee’s official duties. From any person with a value in excess of $50 per year. Note: includes gifts to family members.

Ethics 2/28/ Gift Analysis You May Not Accept an Item if... 4 The item has been offered to you with the intent of influencing you in the performance of your official duties. 4 A reasonable person could expect the item to influence you in the performance of your official duties.

Ethics 2/28/ Is the Item: From family or friends and clearly not intended to gain influence? Related to outside business? Exchanged among co-workers at social event?

Ethics 2/28/ Is the Item: Payment of fees and expenses for a course sponsored by a nonprofit entity? Given to charity within 30 days of receipt?

Ethics 2/28/ Is the Item: Reasonable expenses (travel, room and meals) for a speech or seminar? A discount available as a member of an employee group or similar broad- based group? If so, the items may not be a gift under this law. Read on to see if you can accept it.

Ethics 2/28/ Items you may accept (if unsolicited and not subject to Section 4): 4 Flowers or plants. 4 Advertising & promotional items. 4 Plaques & awards of appreciation. 4 Items received to evaluate as part of your job, if no beneficial interest in the eventual choice. 4 Publications related to official duties. 4 Food & beverages at hosted reception.

Ethics 2/28/ Additional items you may accept (if unsolicited and not Section 4): 4 Admission to, and food & beverages consumed at, a civic, governmental or charitable event. 4 Gift from dignitaries. 4 Food & beverages on infrequent occasions in the ordinary course of meals, when related to official duties.

Ethics 2/28/ Section 4 Employees: Subject to additional restrictions related to the receipt of gifts.

Ethics 2/28/ Stricter Rules Apply to State Employees Who Participate in Decisions about Goods and Services (Section 4 Employees): 4 If a state employee participates in decisions to acquire goods & services, there are stricter limits on what the employee may accept from those providing the goods or services. 4 “Participate” means to participate personally and substantially through approval, disapproval, decision, recommendation, the rendering of advice, investigation or otherwise.

Ethics 2/28/ Section 4 Employees Meet Three Criteria: 1. Work for a regulatory agency or agency that seeks to acquire goods or services. 2. The person giving the gift is regulated by the agency or seeks to provide goods or services to the agency. 3. The officer or employee participates in those regulatory or contractual matters with that person.

Ethics 2/28/ “Section 4 Employees” May Only Accept: Unsolicited advertising or promotional items of nominal value, such as pens or notepads.

Ethics 2/28/ “Section 4 Employees” May Only Accept: Unsolicited tokens or awards of appreciation in the form of a plaque, trophy, desk item, wall memento, or similar item.

Ethics 2/28/ “Section 4 Employees” May Only Accept: 4 Unsolicited items received for evaluation or review, if no personal beneficial interest in agency use or acquisition. 4 Food and beverages consumed at hosted receptions where attendance is related to the employee’s official duties.

Ethics 2/28/ “Section 4 Employees” May Only Accept: 4 Admission to, and the cost of food and beverages consumed at, events sponsored by or in conjunction with a civic, charitable, governmental, or community organization. 4 Items from family member or friends where clear purpose was not to influence.

Ethics 2/28/ “Section 4 Employees” May Only Accept: 4 Customary items related to outside business. 4 Items exchanged at social events by coworkers. 4 Properly reported campaign contributions. 4 Publications related to official duties. 4 Discounts available to individual as member of a broad-based group.

Ethics 2/28/ “Section 4 Employees” May Not Accept: 4 Flowers 4 Gifts from dignitaries 4 Food & beverages on infrequent occasions in the ordinary course of meals, when related to official duties 4 Reasonable expenses (travel, room & meals) for speech or seminar 4 Gifts valued at less than $50

Ethics 2/28/ Honoraria

Ethics 2/28/ Honoraria Definition: An honoraria is money or anything of economic value offered for a speech, appearance or article in connection with official duties.

Ethics 2/28/ Basic Rule: A state officer/employee may not receive an honoraria unless it is specifically authorized by his or her agency.

Ethics 2/28/ An Agency May Not Permit Acceptance of an Honoraria Under the Following Circumstances: 1. The person offering the honoraria is seeking or is reasonably expected to seek a contract with the agency and the officer or employee is in a position to participate in the terms of the contract or grant.

Ethics 2/28/ An Agency May Not Permit Acceptance of an Honoraria Under the Following Circumstances: 2. The person offering the honoraria is regulated by the agency and the employee is in a position to participate in the regulation. 3. The person offering the honoraria may seek or oppose enactment of legislation, adoption of rules or changes in policy by the agency and the employee is in a position to participate in the enactment or adoption.

Ethics 2/28/ More about Honoraria 4 You may use state time and resources to prepare materials for a speech/presentation for which an honorarium will be paid because the activity is related to your official role in state government. 4 If your agency does not allow use of state time/resources, any payment you receive constitutes outside compensation. (RCW ) 4 An honorarium does not include payment for travel, lodging, or subsistence expenses which are gifts subject to RCW

Ethics 2/28/ Outside Compensation Basic rule: A state officer/employee may not receive anything of economic value under any contract or grant outside his or her official duties.

Ethics 2/28/ Outside Compensation 4 You may only receive compensation from the State of Washington for the performance of your official duties. 4 You may not use state resources except for the performance of your official duties.

Ethics 2/28/ When Can You Accept Outside Compensation Under a Grant or Contract? 4 The contract is real, and you actually perform services; 4 The services are not part of your official duties or within your official supervision; 4 The work does not include assisting someone in a transaction in which you participate as part of your official duties;

Ethics 2/28/ When Can You Accept Outside Compensation Under a Grant or Contract? 4 The contract is not with someone who could not give you a gift; 4 The contract is not one you created or authorized as part of your official duties; and 4 The contract does not require unauthorized disclosure of confidential information.

Ethics 2/28/ Outside Work For Another State Agency—Approval Required Must have prior approval of Executive Ethics Board before entering into a contract/grant. RCW (2)(b) and (c)

Ethics 2/28/ Outside Work for Another State Agency—Approval Required 4 Must provide the following to obtain approval: –Description of current state duties. –Statement of work to be performed under the contract/grant. –Copy of the proposed contract/grant. –Statement that no state resources will be used. –If significant time commitment must provide explanation of how work will be performed without the use of state time resources. 4 Approval may be granted by Executive Secretary or Executive Ethics Board. If approved must file contract in Ethics Office within 30 days of execution.

Ethics 2/28/ Employees are Prohibited from Participating in Their Official Capacity in Transactions Involving the State if: 4 They have a beneficial interest in the contract. 4 They have an ownership interest in the transacting business. 4 They are an officer, employee or member of the transacting business.

Ethics 2/28/ Financial Interests 1. A state officer/employee may not have a beneficial interest in a contract that is made by, through, or is under his or her supervision. 2. A state officer/employee may not accept any compensation from any other person beneficially interested in a contract that is made by, through, or is under his or her supervision.

Ethics 2/28/ Potential Problems 4 Spouse or relative participates in the contract. 4 Stock ownership. 4 Assisting another in a state contract.

Ethics 2/28/ Assisting Persons in Transactions Involving the State A state officer/employee is not prohibited from assisting a person in a transaction involving the state if it falls within his or her official duties.

Ethics 2/28/ Employees May Not Assist in Transactions if: 4 Employee participated in the transaction; or 4 It was under employee’s official responsibility within two years prior to providing the assistance.

Ethics 2/28/ Special Privileges Except as required to perform duties within the scope of employment, no state employee may secure special privileges/exemptions for themselves, spouses, children, parents or other persons.

Ethics 2/28/ Compensation for Official Duties or Nonperformance No employee may ask for or give or receive or agree to receive compensation, gift, reward, or gratuity from a source for performing/omitting or deferring the performance of any official duty, unless otherwise authorized by law except:

Ethics 2/28/ Higher Ed Exception 4 If you work for an institution of higher education or the Spokane Intercollegiate Research and Technology Institute, you may also accept compensation for official duties from: –A governmental entity. –An agency or instrumentality of a governmental entity. –A nonprofit corporation organized for the benefit and support of state employees’ agency or other state agencies pursuant to an agreement with the state employee’s agency.

Ethics 2/28/ Post State Employment

Ethics 2/28/ The Contract Restriction A former state employee may not accept employment or compensation from an employer within one year of leaving state employment if all three of the following conditions are present:

Ethics 2/28/ The Contract Restriction 1. The officer or employee, during the two years immediately preceding termination of state employment, negotiated or administered a contract with the new employer; and

Ethics 2/28/ The Contract Restriction 2. The contract(s) had a total value in excess of $10,000; and 3. The former officer’s or employee’s duties with the new employer would include fulfilling or implementing that contract.

Ethics 2/28/ The Beneficial Interest Restriction A former state employee may not, within two years following the termination of state employment, have a beneficial interest in a contract or grant which was expressly authorized or funded by executive action in which the employee participated.

Ethics 2/28/ Continuing Restrictions Several of the post-state employment restrictions are continuing. That is, there is no statutorily defined time limit that determines when these restrictions end.

Ethics 2/28/ The Continuing Restrictions: 1. Accepting an offer of [post-state] employment or receiving compensation from a [post-state] employer if the employee knows or has reason to believe that the offer or employment or compensation was intended, in whole or in part, directly or indirectly, to influence the employee or as compensation or reward for the performance or nonperformance of a duty by the employee during state employment.

Ethics 2/28/ The Continuing Restrictions: 2. Accepting an offer of [post-state] employment or receiving compensation from a [post-state] employer if circumstances would lead a reasonable person to believe the offer has been made, or compensation given, for the purpose of influencing the performance or nonperformance of a duty by the employee during state employment.

Ethics 2/28/ The Continuing Restrictions: 3. Participating, at any time subsequent to state employment, whether or not for compensation, in any transaction involving the state in which the former state employee at any time participated during state employment.

Ethics 2/28/ Remember to... Disclose Discuss Decide

Ethics 2/28/ Enforcement & Penalties

Ethics 2/28/ Enforcement 4 Executive Ethics Board 4 State Auditor 4 Office of the Attorney General 4 Whistleblowers

Ethics 2/28/ Penalties 4 Fines: The greater of $5,000 or three times the benefit. 4 Damages sustained by the state plus costs. 4 Disciplinary action up to termination. 4 Negative publicity and perceptions of the violator, their agency and the state.

Ethics 2/28/ Ethics Resources

Ethics 2/28/ Where to Get More Information 4 Executive Ethics Board 4 Your agency – Supervisor 4 Website

Ethics 2/28/ The End