OVERVIEW OF THE COURSE

Except for those completing partial terms, members serve a single five-year term during which time they may not hold partisan or full-time nonpartisan elective office, make campaign contributions, or lobby for any purpose, except that they may attend public hearings and testify on matters relating to the ethics law.

(RCW 42.52.350 and RCW 42.52.380)

As a rule, The Executive Ethics Board meets monthly, except for August and December, on the second Friday of the month. The meetings are open to the public, and meeting agendas are posted 5-7 days prior to board meetings on our web site at www.ethics.wa.gov.

Statutory Authority

The Board has broad authority for interpreting and enforcing the state’s ethics law and is mandated to:

· Develop educational materials;

· Conduct ethics training;

· Adopt rules and policies implementing provisions of RCW 42.52;

· Issue advisory opinions;

· Investigate complaints; and,

· Impose sanctions for violations of the ethics law.

The Board also has subpoena authority, and the authority to administer oaths and affirmations, examine witnesses, and receive evidence. (RCW 42.52.360)

THE STATE’S ETHICS LAW

“The Ultimate answer to ethical problems in government is honest people

in a good ethical environment.”

—John F. Kennedy

Why an Ethics Law?

An ethics law establishes minimum standards of conduct while performing public duties, and seeks to remove doubts concerning violations of public trust and confidence, the impairment of independent judgment, and favoritism in the performance of public duties that can be created by outside or personal interests.

When adopting the Ethics in Public Service Act, the Legislature declared that “the citizens of the state expect all state officials and employees to perform their public responsibilities in accordance with the highest ethical and moral standards and to conduct the business of the state only in a manner that advances the public’s interest.”

Who is subject to the Ethics Act?

All state officers and employees are subject to the law. The law defines state officer as: “every person holding a position of public trust in or under an executive, legislative, or judicial office of the state.” This includes judges of the superior court and court of appeals, justices of the supreme court, legislators (together with the secretary of the senate and the chief clerk of the house of representatives)[1], state elected officials, chief executive officers of state agencies, members of boards, commissions or committees who have authority over a state agency or institution, and employees who are engaged in supervisory, policy-making or policy-enforcing work. It also includes any person who exercises or undertakes to exercise the power or function of a state officer.

CORE ETHICAL PRINCIPLES

“State officials and employees of government hold a public trust that obligates them, in a special way, to honesty and integrity in fulfilling responsibilities to which they are elected and appointed. Paramount in that trust is the principle that public office, whether elected or appointed, may not be used for personal gain or private advantage.” (RCW 42.52.900)

· Objectivity - Public employees must place the public’s interest before any private interest or outside obligation – choices need to be made on the merits.

· Selflessness - Public employees should not make decisions in order to gain financial or other benefits for themselves, their family, or their friends.

· Stewardship - Public employees have a duty to conserve public resources and funds against misuse and abuse.

· Transparency - Public employees must practice open and accountable government. They should be as open as possible about their decisions and actions, while protecting truly confidential information.

· Integrity - Public employees should not place themselves under any financial or other obligation to outside individuals or organizations that might influence them in the performance of their official duties.

“The reputation of a thousand years is determined by the conduct of one hour.”

—Japanese Proverb

Objectivity

Public employees must place public interest before any private interest or outside obligation – choices must be made on the merits.

RCW 42.52.020, Activities incompatible with public duties
RCW 42.52.030, Financial interests in transactions
RCW 42.52.040, Assisting in transactions

Conflicts of Interest

Conflict of interest laws define the line between public duties and personal interests, including financial and non-financial interests and obligations.

Activities incompatible with public duties (RCW 42.52.020)

Intended as a general conflict of interest provision, RCW 42.52.020 provides that:

“No state officer or state employee may have an interest, financial or otherwise, direct or indirect, or engage in a business or transaction or professional activity, or incur an obligation of any nature that is in conflict with the proper discharge of the state officer’s or state employee’s official duties.”

Financial interests in transactions (RCW 42.52.030)

As a state officer or employee, you are prohibited from participating in certain transactions involving an entity in which you hold a beneficial or financial interest. RCW 42.52.030 prohibits:

· A state officer or employee from having a beneficial or financial interest in a contract, sale, lease, purchase or grant made by, through, or under the officer’s or employee’s supervision;

· A state officer or employee from accepting, directly or indirectly, any compensation, gift, or reward from any person beneficially interested in a contract, sale, lease, purchase or grant.

· A state officer or employee from participating in a transaction involving the state with a person of which the officer or employee is an officer, agent, employee or member, or in which the officer or member owns a beneficial interest.

However, if you are an officer or employee of an institution of higher education or the Spokane Intercollegiate Research and Technology Institute you may:

· Serve as an officer, agent, employee, or member, or on the board of directors, board of trustees, advisory board, or committee or review panel for any nonprofit institute, foundation, or fundraising entity;

· Serve as a member of an advisory board, committee, or review panel for a governmental or other nonprofit entity.

What does “Participate” and “Transaction” mean?

"Participation" must be both personal and substantial. However, the term is broadly defined and includes, but is not limited to approval, disapproval, decision, recommendation, the rendering of advice, or investigation.

“Transaction” is also broadly defined and includes a proceeding, application, submission, request for a ruling or other determination, contract, claim, case, or other similar matter that you believe, or have reason to believe:

(i) Is, or will be, the subject of state action; or

(ii) Is one to which the state is or will be a party; or

(iii) Is one in which the state has a direct and substantial proprietary interest.

Assisting in transactions (RCW 42.52.040)

You may also be prohibited from assisting others in transactions involving the state unless the assistance is part of your regular duties. RCW 42.52.040 prohibits:

· A state officer or employee from assisting another person, directly or indirectly, whether or not for compensation, in a transaction if:

Ø The employee has participated in the transaction at any time; or,

Ø The transaction has been under the official responsibility of the officer or employee within a period of two years preceding such assistance.

· In addition, a state officer or employee may not share in compensation received by someone else for providing assistance that the employee is prohibited from providing.

· Finally, if a state officer or state employee is a partner, managing officer, or employee of an entity, that entity may not assist another person in a transaction if the state officer or state employee is prohibited from assisting in the transaction.

Remedy

What do I do if I have a conflict of interest?

The Ethics in Public Service Act does not prohibit private interests or the state employment of your family members. In several Advisory Opinions, the Board has advised that state officers and employees may resolve conflicts of interest by disclosing any interest that may be in conflict with his or her official duties and abstaining from participation in any agency discussions or actions on any issue where the interest may be affected.

Remember - Participation is very broadly defined and includes making recommendations or giving advice to decision makers. In addition, abstaining must be complete. Conflicts are not resolved by assigning decisions, including later oversight and follow up actions, to employees under your supervision. As a general rule, you should disclose potential conflicts to your supervisor or managers and let them decide how to best resolve the conflict. While not required in the law, written procedures, e.g. screening memos, can resolve any appearance that you were improperly involved in a prohibited transaction. Screening memos should be distributed to all participants in the transactions.

Selflessness

Public employees should not make decisions in order to gain financial or other benefits for themselves, their family, or their friends.

· RCW 42.52.070, Special privileges

· RCW 42.52.140, Gifts

· RCW 42.52.150, Limitations on Gifts

· RCW 42.52.080, Employment after Public Service

Special Privileges (RCW 42.52.070)

As a state officer or employee, you cannot allow someone to do something that others are not allowed to do simply because of your position and authority. This provision states:

“Except as required to perform duties within the scope of employment, no state officer or state employee may use his or her position to secure special privileges or exemptions for himself or herself, or his or her spouse, child, parents, or other persons.”

Gifts (RCW 42.52.140)

The General Rule

Never accept a gift, gratuity, or anything of value if the gift, gratuity, or thing of value could be reasonably expected to influence your vote, judgment, or action.

The statute states:

“No state officer or state employee may receive, accept, take, seek, or solicit, directly or indirectly, any thing of economic value as a gift, gratuity, or favor from a person if it could be reasonable expected that the gift, gratuity, or favor would influence the vote, judgment or action of the officer or employee, or be considered as part of a reward for action or inaction. “

Limitations on gifts (RCW 42.52.150)

Even if there is no reasonable expectation that a gift would influence a decision, most state officers and employees may only accept certain gifts, and in most situations, a $50.00 gift limit applies. However, if you are in a position that: (1) negotiates or administers contracts; or (2) purchases goods or services, or (3) regulates, you are further limited in the gifts you may receive (see below for discussion on “Section 4” employees.)

“(1) No state officer or state employee may accept gifts, other than those specified in subsections (2) and (5) of this section, with an aggregate value in excess of fifty ($50) dollars from a single source in a calendar year. ... The value of gifts given to an officer’s or employee’s family member or guest shall be attributed to the officer or employee for the purpose of determining whether the limit has been exceeded, unless an independent business, family, or social relationship exists between the donor and the family member or guest.”

A. There are certain items that a state officer or employee may receive because they are deemed “exempt” from the definition of gift under RCW 42.52.010(10). State officers and employees who participate in contracting or regulation, however, may not accept those items marked with an asterisk (*):

· Items from family members or friends where it is clear beyond a reasonable doubt that the gift was not made as part of any design to gain or maintain influence in the agency of which the recipient is an officer or employee;

· Items related to the outside business of the recipient that are customary and not related to the recipient’s performance of official duties;

· Items exchanged among officials or employees or a social event hosted or sponsored by a state officer or state employee for co-workers;

· Payments by a governmental or non-governmental entity of reasonable expenses incurred in connection with a speech, presentation, appearance, or trade mission made in an official capacity.*

· Items a state officer or state employee is authorized by law to accept;

· Payment of enrollment and course fees and reasonable travel expenses attributable to attending seminars and educational programs sponsored by a bona fide nonprofit professional, educational, or trade association or charitable institution.*

· Items returned by the recipient to the donor within thirty days of receipt or donated to a charitable organization within thirty days of receipt;

· Campaign contributions reported under 42.17 RCW;

· Discounts available to an individual as a member of an employee group, occupation, or similar broad-based group; and

· Awards, prizes, scholarships, or other items provided in recognition, academic, or scientific achievement.

B. Then the statute allows a state officer and employee to receive gifts without regard to the $50.00 limit if the officer or employee does not regulate or contract for goods and services, and if circumstances do not create the appearance of influence are as follows: (RCW 42.52.150(2), (3), and (5))

· Unsolicited flowers, plants, and floral arrangements;

· Unsolicited advertising or promotional items of nominal value;

· Unsolicited tokens or awards of appreciation–plaques, trophies, desk items;

· Unsolicited items for the purpose of evaluation or review, if the officer or employee has no personal beneficial interest in the use or acquisition of the item by the agency;

· Informational material, publications, or subscriptions related to official duties;

· Food and beverages at hosted receptions where attendance is related to official duties;

· Gifts, grants, conveyances, bequests and devises of real or personal property for deposit into the legislative international trade account, for promoting the expansion of tourism, or for the purpose of hosting an official conference specified in RCW 42.52.820;

· 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;

· Unsolicited gifts from dignitaries in another state or a foreign country intended to be personal in nature; and

· Food and beverages on infrequent occasions in the ordinary course of state business.

When are you considered a “Section 4” employee?

You are a “Section 4” employee if you are:

a) employed by a regulatory agency or an agency that seeks to acquire goods and services;

b) your agency regulates or contracts with the person giving the gift; and

c) you participate in the regulatory or contractual matters with that person.

The Section 4 gift restrictions apply to gifts from any entity potentially subject to being regulated, not just those currently regulated. Likewise if your duties include decisions about contracting or purchasing, the Section 4 gift restrictions would apply to gifts from any potential future contractor or vendor.

C. If you are considered a “Section 4” employee, these are the only gifts you may accept (RCW 42.52.150(4)). The $50 limit does not apply to the following, but you may not accept any gift that is not included on this list.

· Items from family members where it is clear beyond a reasonable doubt that the gift was not made as part of any design to gain or maintain influence in the agency of which the recipient is an officer or employee;

· Items related to the outside business of the recipient that are customary and not related to the recipient’s performance of official duties;

· Items exchanged among officials or employees or a social event hosted or sponsored by a state officer or state employee for co-workers;

· Items a state officer or state employee is authorized by law to accept;

· Items returned by the recipient to the donor within thirty days of receipt or donated to a charitable organization within thirty days of receipt;

· Campaign contributions reported under 42.17 RCW;

· Discounts available to an individual as a member of an employee group, occupation, or similar broad-based group;

· Awards, prizes, scholarships, or other items provided in recognition or academic or scientific achievement;

· Unsolicited advertising or promotional items of nominal value;

· Unsolicited tokens or awards of appreciation in the form of a plaques, trophies, desk items;

· Unsolicited items for the purpose of evaluation or review, if you have no personal beneficial interest in the use or acquisition of the item by the agency;

· Informational material, publications, or subscriptions related to the performance of official duties;

· Food and beverages at hosted receptions where attendance is related to official duties; and

· 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.

Remedy

What if I receive a gift that is prohibited?

Not accepting any gift is one sure way to know you are in compliance with the gift law. In the alternative, prohibited gifts may be returned to the sender or donated to charity within 30 days of receipt. If donated to charity, you may want to consider sending a letter to the giver indicating your actions. If ever in doubt, contact your ethics advisor or Executive Ethics Board staff for clarification. (See RCW 42.52.010(10)(g).

Post-State Employment (RCW 42.52.080)

Post-State employment restrictions are designed to ensure that a former state officer or state employee does not obtain an advantage as a result of decisions or actions made while in public service.

Post-state employment restrictions fall into one of three categories: a contract restriction, a beneficial interest restriction, and continuing restrictions. (RCW 42.52.080)

The Contract Restriction

The contract restriction applies only to those state officers and state employees who are involved in the negotiation or administration of agency contracts. The restriction under RCW 42.52.080(1) prohibits a former state officer or state employee from accepting employment or receiving compensation from an employer if:

· The officer or employee, during the two years immediately preceding termination of state employment, was engaged in the negotiation or administration on behalf of the state or agency of one or more contracts with that [the post-state] employer and was in a position to make discretionary decisions affecting the outcome of such negotiation or the nature of such administration; and,

· The contract or contracts have a total value of more than ten thousand dollars; and,

· The duties of the post-state employment include fulfilling or implementing, in whole or in part, the provisions of the contract or contracts or include the supervision or control of actions taken to fulfill or implement, in whole or in part, the provisions of the contract or contracts.

The Beneficial Interest Restriction

The two-year beneficial interest restriction does not prohibit a former state officer or state employee from doing business with his or her former state agency for a period of two years. The restriction applies only to the acquisition of a beneficial interest in a contract or grant in which the employee participated. Under this provision, a former state officer or state employee may not:

· Within a period of two years following the termination of state employment, have a direct or indirect beneficial interest in a contract or grant that was expressly authorized or funded by specific legislative or executive action in which the former state officer or state employee participated.

The 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. There are continuing restrictions on the following activities by former state officers and state employees:

· Accepting an offer of [post-state] employment or receiving compensation from a [post-state] employer if the officer or employee knows or has reason to believe that the offer or employment or compensation was intended to influence the officer or employee or as compensation or reward for the performance or nonperformance of a duty by the officer or employee during state employment.

· 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 officer or employee during state employment.

· Participating, at any time subsequent to state employment, whether or not for compensation, in any transaction involving the state in which the former state officer or state employee at any time participated during state employment.

Stewardship

Public employees have a duty to conserve public resources and funds against misuse and abuse.

· RCW 42.52.070, Special privileges (See Page 11)

· RCW 42.52.160, Use of persons, money, or property for private gain

· RCW 42.52.180, Use of public resources for political campaigns

· WAC 292-110-010, “De minimis” use of public resources

Use of Resources

use of state resources for private benefit or gain is prohibited unless an allowable exception within the ethics law or under wac 292-110-010. Agencies may not adopt less restrictive standards.

Use of persons, money, or property for private gain (RCW 42.52.160)

State officers and employees have access to many resources. You are expected to conserve public resources by using them only for your official job or to the benefit of the state.

“(1) No state officer or state employee may employ or use any person, money, or property under the officer’s or employee’s official control or direction, or in his or her official custody, for the private benefit or gain of the officer, employee, or another.

(2) This section does not prohibit the use of public resources to benefit others as part of a state officer's or state employee's official duties.

(3) The appropriate ethics boards may adopt rules providing exceptions to this section for occasional use by the state officer or state employee, or de minimis cost and value, if the activity does not result in interference with the proper performance of official duties.”

The Use of Resources Rule (WAC 292-110-010)

A use of state resources that is reasonably related to the conduct of official state business does not violate RCW 42.52.160. In addition, an agency head or designee may authorize a use of state resources that is related to an official state purpose but not directly related to an employee’s official duty, for example, conducting an agency’s Combined Fund Campaign. Such uses shall be specifically authorized in writing and any use shall strictly conform to specific agency guidance.

The Executive Ethics Board has adopted guidelines for exceptions to the no personal use standard under RCW 42.52.160(1). These exceptions are narrowly construed and do not apply to all uses of state resources. The Board allows limited unofficial use if:

· There is little or no cost to the state;