Ethics Matters TRENDS IN THE ENFORCEMENT DIVISION

Ethics Day Trends in Three Areas: 1.) Trends in Enforcement Under the Public Officials Code 2.) Trends in Lobbying Enforcement 3.) Trends in Reporting

Ethics Day TRENDS IN ENFORCEMENT UNDER THE PUBLIC OFFICIALS CODE 1.) Increase in political complaints 2.) Increase in higher education complaints 3.) Increase in confidentiality related complaints

Ethics Day Election year = Increase in Politically Related Complaints 1.) OSE’s Limited Jurisdiction 2.) State Elections Enforcement Commission (“SEEC”) Jurisdiction 3.) Increase in Freedom of Information (“FOI”) requests

Ethics Day Increase in complaints at institutes of higher learning a.) Cases involving impairment of judgment – Gen. Stat. § 1-84(b) b.) Cases involving self-dealing – Gen. Stat. § 1-84(i) c.) Cases involving use of state resources – Gen. Stat. § 1-84(c) 1.) Increase in awareness of OSE’s jurisdiction 2.) General types of cases - interrelated

Ethics Day 2.) Ongoing cases are confidential, unless confidentiality is waived by the respondent 3.) Closed cases are confidential, unless… a.) Confidentiality is waived by respondent b.) Probable cause is found c.) Matter is settled Increase in cases under the confidentiality provisions - Gen. Stat. § 1-82a 1.) Increase often seems to be result of attempts to use OSE for political agenda

Ethics Day 4.) Respondent talking publicly = difficulty in enforcing confidentiality provisions 5.) Can the complainant speak publicly after a matter has been dismissed? a.) Gray area – Kamisinski v. Judicial Review Council, 44 F.3d 106 (2d Cir. 1994)

Ethics Day TRENDS IN LOBBYING 1.) Grass roots issues 2.) Issues in coalition reporting

Ethics Day 1.) Lobbying includes soliciting others to contact public officials. "Lobbying" means communicating directly or soliciting others to communicate with any official or his staff in the legislative or executive branch of government or in a quasi-public agency, for the purpose of influencing any legislative or administrative action… -Gen. Stat. § 1-79(k) …some exceptions that apply, i.e. communications by a representative of a vendor Grass Roots Issues

Ethics Day 2.) Easier to solicit without crossing $2000 threshold 3.) Confusion of reporting for pooling of resources

Ethics Day

Trend in Lobbyist Filings 1.) Uptick in compliance, with a few “frequent flyers” 2.) New online filing system 3.) Training available

Ethics Day Division has conducted four audits, and reports on these audits, over the past year and a half, including: 1.) Status of the Lobbyist Audit Program 2.) Statements of Financial Interests (“SFIs”) two years in a row 3.) State Marshal Annual Statements of Interests (“ASIs”) TRENDS IN REPORTING

Ethics Day The Lobbyist Audit Program This office randomly selects up to 40 client lobbyists, per statute, and audits their filings in order to see if they are complying with applicable statutes, namely, whether lobbyists are preserving “all accounts, bills, receipts and other documents” that are “necessary to substantiate” the information that is filed with their financial reports. –Gen. Stat. § 1-96a(a)

Ethics Day What did the audit tell us? 1.) Did not uncover any major violations by the audited lobbyists, i.e. contingency fee agreements or quid pro quos 2.) Communicator lobbyists have trended toward being more accurate on filings, with corrective action required decreasing 3.) Client lobbyists have trended toward being less accurate 4.) Feedback: Lobbyists indicate that they are learning a lot through the audit process

Ethics Day Statements of Financial Interests Audits 1.) Certain public officials and state employees must file annual SFIs with our office. - Gen. Stat. § 1-83a(1) 2.) OSE has nothing to do with who files SFIs – Statute and the Governor 3.) Audited last year’s and this year’s SFIs

Ethics Day What did the audit tell us? 1.) Majority of SFI filers were timely and accurate in their filings 2.) A significant portion failed to list a source of income, a source of spouse’s income, or financial securities holdings of $5,000 or more 3.) OSE made changes, e.g., increased education efforts and focused on building relationships with ethics liaisons from state agencies 4.) As a result, this year’s audit showed more timely and accurate compliance 5.) Continue to improve

Ethics Day Audit of Marshal Annual Statements of Income 1.) Marshals file ASIs with OSE annually 2.) This is OSE’s only area of jurisdiction over marshals 3.) First year the marshal ASIs have been audited

Ethics Day What did the audit tell us? 1.) Majority of state marshals filed their forms on time and accurately 2.) 8.5% failed to fully answer questions 3.) 22% miscalculated their income, based on the numbers provided

Ethics Day Office hopes to help marshals improve in complying with the requirements of the ASI Report should be released next week, please visit our website

Ethics Day Thank you.