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Ethics 101 Ethics 101 Part II for Lobbyists Part II for Lobbyists Connecticut Registered Lobbyists Connecticut Registered Lobbyists 2011 2011 www.ct.gov/ethics 860-263-2400 860-263-2400

Ethics 101 Part II for Lobbyists Connecticut Registered Lobbyists 2011 860-263-2400

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Ethics 101Ethics 101Part II for LobbyistsPart II for Lobbyists

Connecticut Registered LobbyistsConnecticut Registered Lobbyists20112011

www.ct.gov/ethics860-263-2400860-263-2400

Workshop ObjectivesWorkshop Objectives

• Overview of the Office of State EthicsOverview of the Office of State Ethics

• Address the main points of the Code of Address the main points of the Code of Ethics for LobbyistsEthics for Lobbyists

• Review resources available to help you Review resources available to help you comply with the Codecomply with the Code

The Big PictureThe Big Picture• Who is covered by the Codes of Ethics?Who is covered by the Codes of Ethics?

All state officials and employees (except judges)All state officials and employees (except judges) Certain provisions also apply to Certain provisions also apply to formerformer public public

officials and employeesofficials and employees LobbyistsLobbyists Certain provisions apply to contractors Certain provisions apply to contractors

• What’s the point?What’s the point? The law is intended to prevent individuals The law is intended to prevent individuals

from using public position or authority for from using public position or authority for personal financial benefit.personal financial benefit.

Office of State Ethics Office of State Ethics (OSE)(OSE)

• Public Act 05-183Public Act 05-183

Created OSECreated OSE

Effective July 1, 2005Effective July 1, 2005

• Citizen’s Ethics Advisory BoardCitizen’s Ethics Advisory Board

9 appointed members9 appointed members

Monthly open meetingsMonthly open meetings

• Connecticut General Statutes,Connecticut General Statutes,Chapter 10, Parts I and II, limited Part IVChapter 10, Parts I and II, limited Part IV

Office of State Ethics Office of State Ethics (OSE)(OSE)

• Educate Regulated CommunityEducate Regulated Community

• Provide Public InformationProvide Public Information

• Interpret and Apply the CodesInterpret and Apply the Codes

• Investigate Potential Violations, Investigate Potential Violations, Prosecute ViolationsProsecute Violations

Who’s Who - DefinitionsWho’s Who - Definitions

• Client Lobbyist – Client Lobbyist – expendsexpends or agrees to or agrees to expend $2,000 in a calendar yearexpend $2,000 in a calendar year

• Communicator Lobbyist – Communicator Lobbyist – receivesreceives or or agrees to receive $2,000 in a calendar yearagrees to receive $2,000 in a calendar year

IndividualIndividual

Member of a business organizationMember of a business organization

In-house (regular employee of client lobbyist)In-house (regular employee of client lobbyist)

Definitions ContinuedDefinitions Continued

$2,000 for What?$2,000 for What?

• Administrative Lobbying; and/orAdministrative Lobbying; and/or

• Legislative Lobbying; and/orLegislative Lobbying; and/or

• Activities in Furtherance of LobbyingActivities in Furtherance of Lobbying

Financial Reports - ClientFinancial Reports - Client

• When to File?When to File?

Quarterly – always requiredQuarterly – always required

Monthly – required when:Monthly – required when:Legislature is in regular session ANDLegislature is in regular session AND

Expend/agree to expend $100 or more (legislative Expend/agree to expend $100 or more (legislative lobbying)lobbying)

Never required for administrative lobbying Never required for administrative lobbying

Upcoming Dates: February 10 monthly reportUpcoming Dates: February 10 monthly report

Financial Reports - CommunicatorFinancial Reports - Communicator

• When to File?When to File?

January 10 of each yearJanuary 10 of each year

On Client’s ScheduleOn Client’s Schedule

Monthly or quarterlyMonthly or quarterly

If you make unreimbursed expenditures of $10 or If you make unreimbursed expenditures of $10 or more for the benefit of public official, etc.more for the benefit of public official, etc.

Itemization on ReportsItemization on Reports

• For each expenditure of $10 or more for benefit of For each expenditure of $10 or more for benefit of public official (except for legislative public official (except for legislative receptions/charitable/civic events), list:receptions/charitable/civic events), list: The benefit (e.g., meal)The benefit (e.g., meal)

Circumstances (attending lobbyists’ names)Circumstances (attending lobbyists’ names)

Exact $ amount and dateExact $ amount and date

Individual’s name, title, agencyIndividual’s name, title, agency

• Expenses under $10 are included in the aggregate Expenses under $10 are included in the aggregate amountamount

Itemization, ContinuedItemization, Continued

• Legislative Receptions and Charitable/Civic Legislative Receptions and Charitable/Civic Events; itemize at $30 or more per person if:Events; itemize at $30 or more per person if:

Legislative Reception for all GA members; orLegislative Reception for all GA members; or

Regional Reception for all members from that Regional Reception for all members from that region; orregion; or

Charitable or civic event at which state servant Charitable or civic event at which state servant participates in official capacityparticipates in official capacity

ValuationValuation

• In general, value of expenditure = its cost to youIn general, value of expenditure = its cost to you

• When artificially low cost, value = fair market When artificially low cost, value = fair market valuevalue

• Value of food and beverage = total expenditure Value of food and beverage = total expenditure ÷÷ # of attendees, except:# of attendees, except:

Amount expended based on anticipated Amount expended based on anticipated attendanceattendance

Actual per-person cost based on menu pricesActual per-person cost based on menu prices

ReimbursementReimbursement

• Within 30 days or prior to the filing of the Within 30 days or prior to the filing of the lobbyist’s next report, whichever is earlierlobbyist’s next report, whichever is earlier

• Made by checkMade by check

Notification RequirementsNotification Requirements

• If you give a reportable person anything of value If you give a reportable person anything of value subject to itemization (i.e., over $10), provide, subject to itemization (i.e., over $10), provide, within 10 days, written report to recipient:within 10 days, written report to recipient:

Name of donor, description of item, value of Name of donor, description of item, value of item, cumulative value of all items in yearitem, cumulative value of all items in year

• Legislative Reception: must include on invitation Legislative Reception: must include on invitation or published notice whether it is expected that or published notice whether it is expected that event will be reportable ($30 per person)event will be reportable ($30 per person)

Document PreservationDocument Preservation

• 3 years from date of filing3 years from date of filing

• Keep accounts, bills, receipts and other Keep accounts, bills, receipts and other documents necessary to substantiate documents necessary to substantiate financial reportsfinancial reports

• Also keep copies of filed reports!Also keep copies of filed reports!

AuditsAudits

• At any time, and on a random basis, the At any time, and on a random basis, the OSE may audit reportsOSE may audit reports

• 40 client registrants selected each calendar 40 client registrants selected each calendar year in public ceremonyyear in public ceremony

GiftsGifts

• Registered lobbyists are restricted donorsRegistered lobbyists are restricted donors

• Public officials and state employees (incl. Public officials and state employees (incl. candidates for office and their paid staff) may candidates for office and their paid staff) may not accept gifts from restricted donorsnot accept gifts from restricted donors

• A gift is:A gift is:

Anything of valueAnything of value

Directly and personally receivedDirectly and personally received

Unless consideration givenUnless consideration given

Gift ExceptionsGift Exceptions

• Any item of value <$10, with annual Any item of value <$10, with annual aggregate <$50aggregate <$50

• Food and beverage; <$50 and person Food and beverage; <$50 and person paying is in attendancepaying is in attendance

• $1,000 for “major life event” $1,000 for “major life event”

• No limit if gift from family memberNo limit if gift from family member

• Gifts to the State are permissibleGifts to the State are permissible

Gift ExceptionsGift Exceptions

• Legislative ReceptionsLegislative Receptions

Publicly-noticed to which all GA members are Publicly-noticed to which all GA members are invitedinvited

o Once per calendar year and Once per calendar year and <<$50 per person in food and beverage$50 per person in food and beverage

Regional to which all GA members from state Regional to which all GA members from state region are invitedregion are invited

o Once per calendar year and Once per calendar year and <<$50 per person food and beverage$50 per person food and beverage

o Note: regional group hosting regional reception; not in place to Note: regional group hosting regional reception; not in place to permit state-wide org. to host 2 receptions per yearpermit state-wide org. to host 2 receptions per year

• Other Exceptions (C.G.S. Other Exceptions (C.G.S. §§1-79 (e) 1-17)1-79 (e) 1-17)

Splitting CostsSplitting Costs

• Lobbyists may split the cost of a meal worth Lobbyists may split the cost of a meal worth up to $49.99 only, and the cost of a gift worth up to $49.99 only, and the cost of a gift worth up to $10 onlyup to $10 only

• Not permissible to circumvent these limits by Not permissible to circumvent these limits by splitting the cost of a more expensive meal or splitting the cost of a more expensive meal or itemitem

Other ConsiderationsOther Considerations

• Contingency FeesContingency Fees

• Placing public officials under personal Placing public officials under personal obligationobligation

• Employment with General Assembly Employment with General Assembly prohibitedprohibited

• Communications to public officialsCommunications to public officials

• Disclosure of information to OSEDisclosure of information to OSE

PenaltiesPenalties

• Subject to $10,000 for each violationSubject to $10,000 for each violation

• Failure to file required reports = rate of $10/per day Failure to file required reports = rate of $10/per day for each reportfor each report

• Intentional violation can result in prohibition of Intentional violation can result in prohibition of engaging in profession of lobbying for up to 2 yearsengaging in profession of lobbying for up to 2 years

• Contingency fee agreements subject to civil penaltiesContingency fee agreements subject to civil penalties

• Revocation or suspension of communicator lobbyist Revocation or suspension of communicator lobbyist registration under registration under §1-100b§1-100b

Contact OSEContact OSE

• Web Site: Web Site: www.ct.gov/ethics

• Phone: 860-263-2400Phone: 860-263-2400

• Questions or advice regarding the Questions or advice regarding the Codes: Codes: [email protected]

• Lobbyist filing/reporting Lobbyist filing/reporting questions: questions: [email protected]