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2006 Ethics and Lobbying Act
Effective January 1, 2007Presentation to University
CouncilOctober 24, 2006
Ethics Act - Purpose and Framework To assist individuals in identifying
and avoiding conflicts of interest Disclosure of Economic Interests by
Covered Persons (and immediate family)
Establishes Standards of Conduct Creates Ethics Commission with
defined responsibilities for compliance
“Covered Persons” Covered Person for UNC (public servant)
Voting Members of the Board of Governors and Board of Trustees
President and Vice Presidents Chancellor and Vice Chancellors
Others? Boards (other than advisory) created
by statute or executive order as determined and designated by the Commission
State Ethics Commission Creates State Ethics Commission
Receive and review all SEI’s Receive and investigate
complaints Render advisory opinions Implement mandatory ethics
education
Mandatory Education Education must be by or approved by,
the Ethics Commission For those in office on 1/1/07, before
1/1/08 Within 6 months after appointment or
reappointment & every 2 years thereafter
In addition to covered persons, all staff who report directly to a covered person
Ethical Standards Use of Public Position for Private Gain
Can’t knowingly use public position to result in financial benefit to self, extended family or associated business
Can’t mention public position in non-govt. advertising that advances private interest
Can’t use state funds for ads/public service announcements that contain person’s name, picture, voice
Ethical Standards Additional Compensation
Can’t accept outside compensation for carrying out official responsibilities
Strict rules on acceptance of honoraria
Ethical Standards Use of Information for Private Gain
Can’t use or disclose non-public information for private financial benefit (includes financial benefit to members of extended family or businesses with which person is associated)
May not improperly use or disclose any confidential information
Ethical Standards Participation in Official Actions
With limited exceptions, a covered person may not participate in any discretionary official action in which person has an economic interest if it could be reasonably inferred that the interest would impair the person’s independence of judgment.
Employment and supervision of members of covered person’s family May not cause employment or appointment of
member of extended family to position which person supervises or supervise, manage or participate in employment decision a family member without authorization of NCSU.
Ethical Standards - Gifts
Anything of monetary value given or received without valuable consideration by or from a lobbyist lobbyist principal a person doing or seeking to do
business with NCSU or A person who is regulated or
controlled by NCSU
Gifts Not a gift if
FMV or face value is paid for it It is a commercially available loan made on
terms not more favorable than generally available and not for purpose of lobbying
It is a contract or business agreement made in the normal course of business and not for purpose of lobbying
It is an academic or athletic scholarship It is a campaign contribution properly
reported
Gifts – 5 basic rules Don’t ask for or accept anything of
value in return for being influenced Don’t solicit charitable contributions
from subordinate employees (except generic written solicitations to a class of employees)
Don’t accept a gift directly or indirectly from a lobbyist or a lobbyist’s principal
Gifts – 5 basic rules (cont’d) Don’t accept a gift from an entity you
know or should know is doing business with, seeking to do business with or regulated or controlled by NCSU
Don’t accept gift from persons having a financial interest that may be substantially affected by public servant’s official action.
10 Gift Exceptions Food/beverages for immediate consumption
at public events Informational material relevant to the
persons duties Travel and registration expenses in
connection with attendance at educational meeting or participation as speaker or panel member (if meets detailed requirements)
Plaque or similar memento recognizing service
Gift Exceptions (cont.’d) Gifts accepted on behalf of/for benefit of the
State Gifts distributed to the general public or all
state employees Gifts from extended family or member of
same household Travel expenses associated with public
business of industry recruitment, promotion of international trade or promotion of travel and tourism for employee with these official responsibilities
Gift Exceptions (cont.’d) Gifts worth less than $100 as part of an
overseas trade mission if it is customary protocol
Gifts given or received as part of a relationship that is business, civic, religious, fraternal,
personal or commercial The relationship is not related to the
person’s public service or position A reasonable person would conclude that
gift was not given for purposes of lobbying
What to do with a prohibited gift Decline it Return it Pay FMV for it Immediately donate it to charity or
to the State
Civil Sanctions for Violations Willful failure to comply with the Act subjects
public servants who are employees to disciplinary action by their employer
Willful failure to comply with the Act subjects public servants who are board members to removal from office
Fines may be levied for late filing of SEI Non filing of SEI may result in being fired or
not being able to take the position Knowingly concealing or failure to disclose
material information is misdemeanor Providing false information is a felony
Lobbying Law Covers “Designated Individuals”
Legislators, Leg.employees and Public Servants NCSU appoints legislative “liaison personnel”
who must register and file reports of lobbying expenditures in the same manner as lobbyists [$10 per DI per day [120C-400]
No state funds may be used to contract with non-state employees to lobby legislature
Bans prohibited gifts from lobbyists, lobbyist principals
What is lobbying? Attempting to influence legislative or
executive action through direct communication or activities
Developing goodwill through communication or relationship building with the intent of influencing legislative or executive action
But not communication or activities that are part of a business, civic or personal relationship not connected to legislative or executive action
Reportable expenditures DI may not accept prohibited gift from
lobbyist or lobbyist principal (gift is okay if within gift exceptions of State Ethics Act)
If lobbyists have reportable expenditures on behalf of DI, DI’s will be the subject of the lobbyist’s report (gifts)
DI must report accepted gift over $200 made for purposes of lobbying from individual outside NC (includes grants in aid to attend conferences/similar events)
Reportable Expenditures
Persons exempted or not covered by the Lobbying Act must report reportable expenditures [120C-800(a)] NCSU and officials invited to appear before
committees or who appear before governmental agencies as part of their official duties are exempt
If NCSU official gives a gift to a designated individual for the purpose of lobbying (which includes attempting to build goodwill) which when aggregated are valued over $200 per calendar quarter per designated individual, then NCSU must report it.
NCSU Athletic Tickets Neither UNC nor any constituent
institution may give athletic tickets to any DI for the purpose of lobbying unless the DI is a Board member, a designated senior officer, or a student of a constituent institution Parking tickets Pre-game food
Personally owned tickets?
Sanctions Criminal Sanctions for willful
violation of reporting requirements Fines may also be levied
Contact NCSU Ethics Liaison:Mary Elizabeth Kurz, Vice Chancellor & General
Counsel(919) 515-3071
Questions?