Bill Text: CT SB00035 | 2012 | General Assembly | Introduced

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Bill Title: An Act Concerning The Office Of State Ethics And Revisions To The State Codes Of Ethics.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2012-02-10 - Public Hearing 02/17 [SB00035 Detail]

Download: Connecticut-2012-SB00035-Introduced.html

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General Assembly		Raised Bill No. 35
February Session, 2012		LCO No. 531
		*00531_______GAE*
Referred to Committee on Government Administration and Elections
Introduced by:
(GAE)

AN ACT CONCERNING THE OFFICE OF STATE ETHICS AND REVISIONS TO THE STATE CODES OF ETHICS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 1-79 of the 2012 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):

The following terms, when used in this part, [shall] have the following meanings unless the context otherwise requires:

[(a)] (1) "Blind trust" means a trust established by a public official or state employee or member of his immediate family for the purpose of divestiture of all control and knowledge of assets.

[(b)] (2) "Business with which he is associated" means any sole proprietorship, partnership, firm, corporation, trust or other entity through which business for profit or not for profit is conducted in which the public official or state employee or member of his immediate family is a director, officer, owner, limited or general partner, beneficiary of a trust or holder of stock constituting five per cent or more of the total outstanding stock of any class, provided, a public official or state employee, or member of his immediate family, shall not be deemed to be associated with a not for profit entity solely by virtue of the fact that the public official or state employee or member of his immediate family is an unpaid director or officer of the not for profit entity. "Officer" refers only to the president, executive or senior vice president or treasurer of such business.

[(c)] (3) "Candidate for public office" means any individual who has filed a declaration of candidacy or a petition to appear on the ballot for election as a public official, or who has raised or expended money in furtherance of such candidacy, or who has been nominated for appointment to serve as a public official, but [shall] does not include a candidate for the office of senator or representative in Congress.

[(d)] (4) "Board" means the Citizen's Ethics Advisory Board established in section 1-80, as amended by this act.

[(e)] (5) "Gift" means anything of value, which is directly and personally received, unless consideration of equal or greater value is given in return. "Gift" [shall] does not include:

[(1)] (A) A political contribution otherwise reported as required by law or a donation or payment as described in subdivision (9) or (10) of subsection (b) of section 9-601a;

[(2)] (B) Services provided by persons volunteering their time, if provided to aid or promote the success or defeat of any political party, any candidate or candidates for public office or the position of convention delegate or town committee member or any referendum question;

[(3)] (C) A commercially reasonable loan made on terms not more favorable than loans made in the ordinary course of business;

[(4)] (D) A gift received from [(A)] (i) an individual's spouse, fiance or fiancée, [(B)] (ii) the parent, brother or sister of such spouse or such individual, or [(C)] (iii) the child of such individual or the spouse of such child;

[(5)] (E) Goods or services [(A) which] (i) that are provided to a state agency or quasi-public agency [(i)] (I) for use on state or quasi-public agency property, or [(ii)] (II) that support an event, and [(B) which] (ii) that facilitate state or quasi-public agency action or functions. As used in this [subdivision] subparagraph, "state property" means [(i)] property owned by the state or a quasi-public agency, or [(ii)] property leased to a state agency or quasi-public agency;

[(6)] (F) A certificate, plaque or other ceremonial award costing less than one hundred dollars;

[(7)] (G) A rebate, discount or promotional item available to the general public;

[(8)] (H) Printed or recorded informational material germane to state action or functions;

[(9)] (I) Food or beverage or both, costing less than fifty dollars in the aggregate per recipient in a calendar year, and consumed on an occasion or occasions at which the person paying, directly or indirectly, for the food or beverage, or his representative, is in attendance;

[(10)] (J) Food or beverage or both, costing less than fifty dollars per person and consumed at a publicly noticed legislative reception to which all members of the General Assembly are invited and which is hosted not more than once in any calendar year by a lobbyist or business organization. For the purposes of such limit, [(A)] (i) a reception hosted by a lobbyist who is an individual shall be deemed to have also been hosted by the business organization which he owns or is employed by, and [(B)] (ii) a reception hosted by a business organization shall be deemed to have also been hosted by all owners and employees of the business organization who are lobbyists. In making the calculation for the purposes of such fifty-dollar limit, the donor shall divide the amount spent on food and beverage by the number of persons whom the donor reasonably expects to attend the reception;

[(11)] (K) Food or beverage or both, costing less than fifty dollars per person and consumed at a publicly noticed reception to which all members of the General Assembly from a region of the state are invited and which is hosted not more than once in any calendar year by a lobbyist or business organization. For the purposes of such limit, [(A)] (i) a reception hosted by a lobbyist who is an individual shall be deemed to have also been hosted by the business organization which he owns or is employed by, and [(B)] (ii) a reception hosted by a business organization shall be deemed to have also been hosted by all owners and employees of the business organization who are lobbyists. In making the calculation for the purposes of such fifty-dollar limit, the donor shall divide the amount spent on food and beverage by the number of persons whom the donor reasonably expects to attend the reception. As used in this subdivision, "region of the state" means the established geographic service area of the organization hosting the reception;

[(12)] (L) A gift, including, but not limited to, food or beverage or both, provided by an individual for the celebration of a major life event, provided any such gift provided by an individual who is not a member of the family of the recipient shall not exceed one thousand dollars in value;

[(13)] (M) Gifts costing less than one hundred dollars in the aggregate or food or beverage provided at a hospitality suite at a meeting or conference of an interstate legislative association, by a person who is not a registrant or is not doing business with the state of Connecticut;

[(14)] (N) Admission to a charitable or civic event, including food and beverage provided at such event, but excluding lodging or travel expenses, at which a public official or state employee participates in his or her official capacity, or at which a candidate for public office participates in his or her capacity as a candidate, provided such admission is provided by the primary sponsoring entity;

[(15)] (O) Anything of value provided by an employer of [(A)] (i) a public official, [(B)] (ii) a state employee, [or (C)] (iii) a candidate for public office, or (iv) a spouse of a public official or state employee, to such official, employee, candidate or spouse, provided such benefits are customarily and ordinarily provided to others in similar circumstances;

[(16)] (P) Anything having a value of not more than ten dollars, provided the aggregate value of all things provided by a donor to a recipient under this subdivision in any calendar year shall not exceed fifty dollars;

[(17)] (Q) Training that is provided by a vendor for a product purchased by a state or quasi-public agency which is offered to all customers of such vendor; or

[(18)] (R) Travel expenses, lodging, food, beverage and other benefits customarily provided by a prospective employer, when provided to a student at a public institution of higher education whose employment is derived from such student's status as a student at such institution, in connection with bona fide employment discussions.

[(f)] (6) "Immediate family" means any spouse, children or dependent relatives who reside in the individual's household.

[(g)] (7) "Individual" means a natural person.

[(h)] (8) "Member of an advisory board" means any individual [(1)] (A) appointed by a public official as an advisor or consultant or member of a committee, commission or council established to advise, recommend or consult with a public official or branch of government or committee thereof, [(2)] (B) who receives no public funds other than per diem payments or reimbursement for his actual and necessary expenses incurred in the performance of his official duties, and [(3)] (C) who has no authority to expend any public funds or to exercise the power of the state.

[(i)] (9) "Person" means an individual, sole proprietorship, trust, corporation, limited liability company, union, association, firm, partnership, committee, club or other organization or group of persons.

[(j)] (10) "Political contribution" has the same meaning as in section 9-601a except that for purposes of this part, the provisions of subsection (b) of [that] said section shall not apply.

[(k)] (11) "Public official" means any state-wide elected officer, any member or member-elect of the General Assembly, any person appointed to any office of the legislative, judicial or executive branch of state government by the Governor or an appointee of the Governor, with or without the advice and consent of the General Assembly, any public member or representative of the teachers' unions or state employees' unions appointed to the Investment Advisory Council pursuant to subsection (a) of section 3-13b, any person appointed or elected by the General Assembly or by any member of either house thereof, any member or director of a quasi-public agency and the spouse of the Governor, but shall not include a member of an advisory board, a judge of any court either elected or appointed or a senator or representative in Congress.

[(l)] (12) "Quasi-public agency" means the Connecticut Development Authority, Connecticut Innovations, Incorporated, Connecticut Health and Education Facilities Authority, Connecticut Higher Education Supplemental Loan Authority, Connecticut Housing Finance Authority, Connecticut Housing Authority, Connecticut Resources Recovery Authority, Lower Fairfield County Convention Center Authority, Capital City Economic Development Authority, Connecticut Lottery Corporation, Connecticut Airport Authority, Health Information Technology Exchange of Connecticut and Connecticut Health Insurance Exchange.

[(m)] (13) "State employee" means any employee in the executive, legislative or judicial branch of state government, whether in the classified or unclassified service and whether full or part-time, and any employee of a quasi-public agency, but shall not include a judge of any court, either elected or appointed.

[(n)] (14) "Trust" means a trust in which any public official or state employee or member of his immediate family has a present or future interest which exceeds ten per cent of the value of the trust or exceeds fifty thousand dollars, whichever is less, but shall not include blind trusts.

[(o)] (15) "Business organization" means a sole proprietorship, corporation, limited liability company, association, firm or partnership, other than a client lobbyist, which is owned by, or employs, one or more individual lobbyists.

[(p)] (16) "Client lobbyist" means a person on behalf of whom lobbying takes place and who makes expenditures for lobbying and in furtherance of lobbying.

[(q)] (17) "Necessary expenses" means a public official's or state employee's expenses for an article, appearance or speech or for participation at an event, in his official capacity, which shall be limited to necessary travel expenses, lodging for the nights before, of and after the appearance, speech or event, meals and any related conference or seminar registration fees.

[(r)] (18) "Lobbyist" and "registrant" shall be construed as defined in section 1-91, as amended by this act.

[(s)] (19) "Legal defense fund" means a fund established for the payment of legal expenses of a public official or state employee incurred as a result of defending himself or herself in an administrative, civil, criminal or constitutional proceeding concerning matters related to the official's or employee's service or employment with the state or a quasi-public agency.

[(t)] (20) "State agency" means any office, department, board, council, commission, institution, constituent unit of the state system of higher education, vocational-technical school or other agency in the executive, legislative or judicial branch of state government.

Sec. 2. Section 1-84c of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):

Nothing in this chapter shall prohibit the donation of goods or services, as described in [subdivision (5) of subsection (e)] subparagraph (E) of subdivision (5) of section 1-79, as amended by this act, to a state agency or quasi-public agency, the donation of the use of facilities to facilitate state agency or quasi-public agency action or functions or the donation of real property to a state agency or quasi-public agency. As used in this section, "state agency" and "quasi-public agency" have the same meanings as provided in section 1-79, as amended by this act.

Sec. 3. Subsection (b) of section 1-80 of the 2012 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):

(b) All members shall be electors of the state. No member shall be a state employee. No member or employee of such board shall (1) hold or campaign for any public office; (2) have held public office or have been a candidate for public office for a three-year period prior to appointment; (3) hold office in any political party or political committee or be a member of any organization or association organized primarily for the purpose of influencing legislation or decisions of public agencies; or (4) be an individual who is a registrant as defined in [subsection (q)] subdivision (17) of section 1-91, as amended by this act.

Sec. 4. Subsection (k) of section 1-80 of the 2012 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):

(k) No former member of the board may represent any business or person, other than himself or herself, before the board for a period of one year following the end of such former member's service on the board. No business or person that appears before the board shall employ or otherwise engage the services of a former member of the board for a period of one year following the end of such former member's service on the board.

Sec. 5. Section 1-80 of the 2012 supplement to the general statutes is amended by adding subsection (n) as follows (Effective October 1, 2012):

(NEW) (n) Each person appointed to the board shall sign a certification indicating that such person is aware of the provisions contained in subsections (b) and (h) to (l), inclusive, of this section. Each such person shall file such certification with the Office of State Ethics prior to taking the oath of office as member of the board.

Sec. 6. Subsection (j) of section 1-84 of the 2012 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):

(j) No public official, state employee or candidate for public office, or a member of any such person's staff or immediate family shall knowingly accept any gift, as defined in [subsection (e) of] subdivision (5) of section 1-79, as amended by this act, from a person known to be a registrant or anyone known to be acting on behalf of a registrant.

Sec. 7. Subsection (m) of section 1-84 of the 2012 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):

(m) No public official or state employee shall knowingly accept, directly or indirectly, any gift, as defined in [subsection (e) of] subdivision (5) of section 1-79, as amended by this act, from any person the public official or state employee knows or has reason to know: (1) Is doing business with or seeking to do business with the department or agency in which the public official or state employee is employed; (2) is engaged in activities which are directly regulated by such department or agency; or (3) is prequalified under section 4a-100. No person shall knowingly give, directly or indirectly, any gift or gifts in violation of this provision. For the purposes of this subsection, the exclusion to the term "gift" in [subdivision (12) of subsection (e)] subparagraph (L) of subdivision (5) of section 1-79, as amended by this act, for a gift for the celebration of a major life event shall not apply. Any person prohibited from making a gift under this subsection shall report to the Office of State Ethics any solicitation of a gift from such person by a state employee or public official.

Sec. 8. Section 1-85 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):

A public official, including an elected state official, or state employee has an interest which is in substantial conflict with the proper discharge of his duties or employment in the public interest and of his responsibilities as prescribed in the laws of this state, if he has reason to believe or expect that he, his spouse, a dependent child, his employer other than the state or a business with which he is associated will derive a direct monetary gain or suffer a direct monetary loss, as the case may be, by reason of his official activity. A public official, including an elected state official, or state employee does not have an interest which is in substantial conflict with the proper discharge of his duties in the public interest and of his responsibilities as prescribed by the laws of this state, if any benefit or detriment accrues to him, his spouse, a dependent child, his employer other than the state or a business with which he, his spouse or such dependent child is associated as a member of a profession, occupation or group to no greater extent than any other member of such profession, occupation or group. A public official, including an elected state official or state employee who has a substantial conflict may not take official action on the matter, except if the conflict concerns a direct monetary gain or direct monetary loss for the other employer of an elected state official, such official shall either excuse himself or prepare a written statement signed under penalty of false statement describing the matter requiring action and the nature of the potential conflict and explaining why, despite the potential conflict, such official is able to vote and otherwise participate fairly, objectively and in the public interest. Such official shall deliver a copy of such statement to the Office of State Ethics and enter a copy of the statement in the journal or minutes of the agency.

Sec. 9. Subsection (a) of section 1-86 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):

(a) Any public official or state employee, other than an elected state official, who, in the discharge of such official's or employee's official duties, would be required to take an action that would affect a financial interest of such official or employee, such official's or employee's spouse, parent, brother, sister, child or the spouse of a child, employer other than the state or a business with which such official or employee is associated, other than an interest of a de minimis nature, an interest that is not distinct from that of a substantial segment of the general public or an interest in substantial conflict with the performance of official duties as defined in section 1-85 has a potential conflict of interest. Under such circumstances, such official or employee shall, if such official or employee is a member of a state regulatory agency, either excuse himself or herself from the matter or prepare a written statement signed under penalty of false statement describing the matter requiring action and the nature of the potential conflict and explaining why despite the potential conflict, such official or employee is able to vote and otherwise participate fairly, objectively and in the public interest. Such public official or state employee shall deliver a copy of the statement to the Office of State Ethics and enter a copy of the statement in the journal or minutes of the agency. If such official or employee is not a member of a state regulatory agency, such official or employee shall, in the case of either a substantial or potential conflict, prepare a written statement signed under penalty of false statement describing the matter requiring action and the nature of the conflict and deliver a copy of the statement to such official's or employee's immediate superior, if any, who shall assign the matter to another employee, or if such official or employee has no immediate superior, such official or employee shall take such steps as the Office of State Ethics shall prescribe or advise.

Sec. 10. Section 1-91 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):

When used in this part, unless the context otherwise requires:

[(a)] (1) "Administrative action" means any action or nonaction of any executive agency of the state with respect to the proposal, drafting, development, consideration, amendment, adoption or repeal of any rule, regulation or utility rate, and any action or nonaction of any executive agency or quasi-public agency, as defined in section 1-79, as amended by this act, regarding a contract, grant, award, purchasing agreement, loan, bond, certificate, license, permit or any other matter which is within the official jurisdiction or cognizance of such an agency.

[(b)] (2) "Candidate for public office" means any person who has filed a declaration of candidacy or a petition to appear on the ballot for election as a public official, or who has raised or expended money in furtherance of such candidacy, or who has been nominated for appointment to serve as a public official; but [shall] does not include a candidate for the office of senator or representative in Congress.

[(c)] (3) "Board" means the Citizen's Ethics Advisory Board established under section 1-80, as amended by this act.

[(d)] (4) "Compensation" means any value received or to be received by a person acting as a lobbyist, whether in the form of a fee, salary or forbearance.

[(e)] (5) "Executive agency" means a commission, board, agency, or other body or official in the executive branch of the state government and any independent body of the state government that is not a part of the legislative or judicial branch.

[(f)] (6) "Expenditure" means any advance, conveyance, deposit, distribution, transfer of funds, loan, payment, unless expressly excluded; any payments for telephone, mailing, postage, printing and other clerical or office services and materials; any paid communications, costing fifty dollars or more in any calendar year, disseminated by means of any printing, broadcasting or other medium, provided such communications refer to pending administrative or legislative action; any contract, agreement, promise or other obligation; any solicitation or solicitations, costing fifty dollars or more in the aggregate for any calendar year, of other persons to communicate with a public official or state employee for the purpose of influencing any legislative or administrative act and any pledge, subscription of money or anything of value. "Expenditure" [shall] does not include the payment of a registrant's fee pursuant to section 1-95, any expenditure made by any club, committee, partnership, organization, business, union, association or corporation for the purpose of publishing a newsletter or other release to its members, shareholders or employees, or contributions, membership dues or other fees paid to associations, nonstock corporations or tax-exempt organizations under Section 501(c) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended.

[(g)] (7) "Gift" means anything of value, which is directly and personally received, unless consideration of equal or greater value is given in return. "Gift" [shall] does not include:

[(1)] (A) A political contribution otherwise reported as required by law or a donation or payment described in subdivision (9) or (10) of subsection (b) of section 9-601a;

[(2)] (B) Services provided by persons volunteering their time, if provided to aid or promote the success or defeat of any political party, any candidate or candidates for public office or the position of convention delegate or town committee member or any referendum question;

[(3)] (C) A commercially reasonable loan made on terms not more favorable than loans made in the ordinary course of business;

[(4)] (D) A gift received from [(A)] (i) the individual's spouse, fiance or fiancée, [(B)] (ii) the parent, brother or sister of such spouse or such individual, or [(C)] (iii) the child of such individual or the spouse of such child;

[(5)] (E) Goods or services [(A) which] (i) that are provided to a state agency or quasi-public agency [(i)] (I) for use on state or quasi-public agency property, or [(ii)] (II) that support an event, and [(B) which] (ii) that facilitate state or quasi-public agency action or functions. As used in this [subdivision] subparagraph, "state property" means [(i)] property owned by the state or a quasi-public agency, or [(ii)] property leased to a state or quasi-public agency;

[(6)] (F) A certificate, plaque or other ceremonial award costing less than one hundred dollars;

[(7)] (G) A rebate, discount or promotional item available to the general public;

[(8)] (H) Printed or recorded informational material germane to state action or functions;

[(9)] (I) Food or beverage or both, costing less than fifty dollars in the aggregate per recipient in a calendar year, and consumed on an occasion or occasions at which the person paying, directly or indirectly, for the food or beverage, or his representative, is in attendance;

[(10)] (J) Food or beverage or both, costing less than fifty dollars per person and consumed at a publicly noticed legislative reception to which all members of the General Assembly are invited and which is hosted not more than once in any calendar year by a lobbyist or business organization. For the purposes of such limit, [(A)] (i) a reception hosted by a lobbyist who is an individual shall be deemed to have also been hosted by the business organization which he owns or is employed by, and [(B)] (ii) a reception hosted by a business organization shall be deemed to have also been hosted by all owners and employees of the business organization who are lobbyists. In making the calculation for the purposes of such fifty-dollar limit, the donor shall divide the amount spent on food and beverage by the number of persons whom the donor reasonably expects to attend the reception;

[(11)] (K) Food or beverage or both, costing less than fifty dollars per person and consumed at a publicly noticed reception to which all members of the General Assembly from a region of the state are invited and which is hosted not more than once in any calendar year by a lobbyist or business organization. For the purposes of such limit, [(A)] (i) a reception hosted by a lobbyist who is an individual shall be deemed to have also been hosted by the business organization which he owns or is employed by, and [(B)] (ii) a reception hosted by a business organization shall be deemed to have also been hosted by all owners and employees of the business organization who are lobbyists. In making the calculation for the purposes of such fifty-dollar limit, the donor shall divide the amount spent on food and beverage by the number of persons whom the donor reasonably expects to attend the reception. As used in this [subdivision] subparagraph, "region of the state" means the established geographic service area of the organization hosting the reception;

[(12)] (L) A gift, including, but not limited to, food or beverage or both, provided by an individual for the celebration of a major life event, provided any such gift provided by an individual who is not a member of the family of the recipient shall not exceed one thousand dollars in value;

[(13)] (M) Gifts costing less than one hundred dollars in the aggregate or food or beverage provided at a hospitality suite at a meeting or conference of an interstate legislative association, by a person who is not a registrant or is not doing business with the state of Connecticut;

[(14)] (N) Admission to a charitable or civic event, including food and beverage provided at such event, but excluding lodging or travel expenses, at which a public official or state employee participates in his or her official capacity, or at which a candidate for public office participates in his or her capacity as a candidate, provided such admission is provided by the primary sponsoring entity;

[(15)] (O) Anything of value provided by an employer of [(A)] (i) a public official, [(B)] (ii) a state employee, [or (C)] (iii) a candidate for public office, or (iv) a spouse of a public official or state employee, to such official, employee, candidate or spouse, provided such benefits are customarily and ordinarily provided to others in similar circumstances;

[(16)] (P) Anything having a value of not more than ten dollars, provided the aggregate value of all things provided by a donor to a recipient under this subdivision in any calendar year shall not exceed fifty dollars; or

[(17)] (Q) Training that is provided by a vendor for a product purchased by a state or quasi-public agency which is offered to all customers of such vendor.

[(h)] (8) "Immediate family" means any spouse, dependent children or dependent relatives who reside in the individual's household.

[(i)] (9) "Individual" means a natural person.

[(j)] (10) "Legislative action" means introduction, sponsorship, consideration, debate, amendment, passage, defeat, approval, veto, overriding of a veto or any other official action or nonaction with regard to any bill, resolution, amendment, nomination, appointment, report, or any other matter pending or proposed in a committee or in either house of the legislature, or any matter which is within the official jurisdiction or cognizance of the legislature.

[(k)] (11) "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 except that the term "lobbying" does not include [(1)] (A) communications by or on behalf of a party to, or an intervenor in, a contested case, as described in regulations adopted by the [commission] Office of State Ethics in accordance with the provisions of chapter 54, before an executive agency or a quasi-public agency, as defined in section 1-79, as amended by this act, [(2)] (B) communications by a representative of a vendor or by an employee of the registered client lobbyist which representative or employee acts as a salesperson and does not otherwise engage in lobbying regarding any administrative action, [(3)] (C) communications by an attorney made while engaging in the practice of law and regarding any matter other than legislative action as defined in [subsection (j)] subdivision (10) of this section or the proposal, drafting, development, consideration, amendment, adoption or repeal of any rule or regulation, or [(4)] (D) other communications exempted by regulations adopted by the [commission] Office of State Ethics in accordance with the provisions of chapter 54.

[(l)] (12) "Lobbyist" means a person who in lobbying and in furtherance of lobbying makes or agrees to make expenditures, or receives or agrees to receive compensation, reimbursement, or both, and such compensation, reimbursement or expenditures are two thousand dollars or more in any calendar year or the combined amount thereof is two thousand dollars or more in any such calendar year. Lobbyist shall not include:

[(1)] (A) A public official, employee of a branch of state government or a subdivision thereof, or elected or appointed official of a municipality or his designee other than an independent contractor, who is acting within the scope of his or her authority or employment;

[(2)] (B) A publisher, owner or an employee of the press, radio or television while disseminating news or editorial comment to the general public in the ordinary course of business;

[(3)] (C) An individual representing himself or another person before the legislature or a state agency other than for the purpose of influencing legislative or administrative action;

[(4)] (D) Any individual or employee who receives no compensation or reimbursement specifically for lobbying and who limits his or her activities solely to formal appearances to give testimony before public sessions of committees of the General Assembly or public hearings of state agencies and who, if he or she testifies, registers his or her appearance in the records of such committees or agencies;

[(5)] (E) A member of an advisory board acting within the scope of his or her appointment;

[(6)] (F) A senator or representative in Congress acting within the scope of his or her office;

[(7)] (G) Any person who receives no compensation or reimbursement specifically for lobbying and who spends no more than five hours in furtherance of lobbying unless such person [(A)] (i) exclusive of salary, receives compensation or makes expenditures, or both, of two thousand dollars or more in any calendar year for lobbying or the combined amount thereof is two thousand dollars or more in any such calendar year, or [(B)] (ii) expends fifty dollars or more for the benefit of a public official in the legislative or executive branch, a member of his staff or immediate family;

[(8)] (H) A communicator lobbyist who receives or agrees to receive compensation, reimbursement, or both, the aggregate amount of which is less than two thousand dollars from each client in any calendar year.

[(m)] (13) "Member of an advisory board" means any person appointed by a public official as an advisor or consultant or member of a committee, commission or council established to advise, recommend or consult with a public official or branch of government or committee thereof and who receives no public funds other than per diem payments or reimbursement for his or her actual and necessary expenses incurred in the performance of his or her official duties and who has no authority to expend any public funds or to exercise the power of the state.

[(n)] (14) "Person" means an individual, a business, corporation, limited liability company, union, association, firm, partnership, committee, club or other organization or group of persons.

[(o)] (15) "Political contribution" has the same meaning as in section 9-601a except that for purposes of this part, the provisions of subsection (b) of [that] said section shall not apply.

[(p)] (16) "Public official" means any state-wide elected state officer, any member or member-elect of the General Assembly, any person appointed to any office of the legislative, judicial or executive branch of state government by the Governor, with or without the advice and consent of the General Assembly, the spouse of the Governor and any person appointed or elected by the General Assembly or any member of either house thereof; but shall not include a member of an advisory board or a senator or representative in Congress.

[(q)] (17) "Registrant" means a person who is required to register pursuant to section 1-94, as amended by this act.

[(r)] (18) "Reimbursement" means any money or thing of value received or to be received in the form of payment for expenses as a lobbyist, not including compensation.

[(s)] (19) "State employee" means any employee in the executive, judicial or legislative branch of state government, whether in the classified or unclassified service and whether full or part-time.

[(t)] (20) "Business organization" means a sole proprietorship, corporation, limited liability company, association, firm or partnership, other than a client lobbyist, which is owned by, or employs one or more individual lobbyists.

[(u)] (21) "Client lobbyist" means a lobbyist on behalf of whom lobbying takes place and who makes expenditures for lobbying and in furtherance of lobbying.

[(v)] (22) "Communicator lobbyist" means a lobbyist who communicates directly or solicits others to communicate with an official or his staff in the legislative or executive branch of government or in a quasi-public agency for the purpose of influencing legislative or administrative action.

[(w)] (23) "State agency" means any office, department, board, council, commission, institution, constituent unit of the state system of higher education, vocational-technical school or other agency in the executive, legislative or judicial branch of state government.

[(x)] (24) "Quasi-public agency" means quasi-public agency, as defined in section 1-79, as amended by this act.

Sec. 11. Subsection (a) of section 1-92 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):

(a) The Citizen's Ethics Advisory Board shall adopt regulations, in accordance with chapter 54, to carry out the purposes of this part. Such regulations shall not be deemed to govern the conduct of any judge trial referee in the performance of such judge trial referee's duties pursuant to this chapter. Not later than January 1, 1992, the board shall adopt regulations which further clarify the meaning of the terms "directly and personally received" and "major life event", as used in [subsection (e)] subdivision (5) of section 1-79, as amended by this act, and [subsection (g)] subdivision (7) of section 1-91, as amended by this act.

Sec. 12. Section 1-94 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):

(a) A lobbyist shall register with the Office of State Ethics pursuant to this part if it or he:

(1) Receives or agrees to receive compensation or reimbursement for actual expenses, or both, in a combined amount of two thousand dollars or more in a calendar year for lobbying, whether that receipt of compensation or reimbursement or agreement to receive such compensation or reimbursement is solely for lobbying or the lobbying is [incidental to that] within the scope of such person's [regular] employment; or

(2) Makes or incurs an obligation to make expenditures of two thousand dollars or more in a calendar year for lobbying.

(b) Any person who lobbies within the scope of such person's employment shall maintain a record of his or her time and expenditures in furtherance of lobbying for the purpose of reporting and potential registration with the Office of State Ethics.

(c) The Office of State Ethics may adopt regulations, in accordance with the provisions of chapter 54, to establish guidelines for the determination of when lobbying is within the scope of a person's employment, as described in this section and section 1-96, as amended by this act. Such regulations shall, at a minimum, address the distinction between a person who is specifically directed by such person's employer to lobby and a person who is not specifically directed by such person's employer to lobby.

Sec. 13. Section 1-96 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):

(a) Each client lobbyist registrant shall file with the Office of State Ethics between the first and tenth day of April, July and January a financial report, signed under penalty of false statement. The April and July reports shall cover its lobbying activities during the previous calendar quarter and the January report shall cover its lobbying activities during the previous two calendar quarters. In addition to such reports, each client lobbyist registrant which attempts to influence legislative action shall file, under penalty of false statement, interim monthly reports of its lobbying activities for each month the General Assembly is in regular session, except that no monthly report shall be required for any month in which it neither expends nor agrees to expend one hundred dollars or more in furtherance of lobbying. Such interim monthly reports shall be filed with the Office of State Ethics no later than the tenth day of the month following the last day of the month reported. If the client lobbyist registrant is not an individual, an authorized officer or agent of the client lobbyist registrant shall sign the form. A communicator lobbyist for a municipality or any subdivision of a municipality, a branch of state government or any subdivision of state government or a quasi-public agency shall file the reports described in this subsection utilizing the client lobbyist reporting schedule.

(b) Each individual communicator lobbyist registrant and each business organization communicator lobbyist registrant shall file annually with the Office of State Ethics between the first and tenth day of January a report or reports, signed under penalty of false statement, reporting the amounts of compensation and reimbursement received from each of his clients during the previous year. In addition, each individual communicator lobbyist registrant and each business organization communicator lobbyist registrant shall: (1) Report the fundamental terms of contracts, agreements or promises to pay or receive compensation or reimbursement or to make expenditures in furtherance of lobbying, including the categories of work to be performed and the dollar value or compensation rate of the contract, at the time of registration; (2) report, in accordance with the schedule set forth in subsection (a) of this section, any amendments to these fundamental terms, including any agreements to subcontract lobbying work; and (3) report, in accordance with the provisions of subsection (a) of this section, any expenditures for the benefit of a candidate for public office, a public official in the legislative or executive branch or a member of the staff or immediate family of such candidate or official which are unreimbursed and required to be itemized. Such report shall not include any expenditures for the benefit of a candidate for public office or a public official in the legislative or executive branch who is (A) the spouse, fiancée or fiancé of the individual communicator lobbyist making the expenditure, (B) the parent, brother or sister of such spouse or such individual communicator lobbyist, or (C) the child of such individual communicator lobbyist or the spouse of such child. Such report shall not include the disclosure of food and beverage provided by a communicator lobbyist registrant to a candidate for public office or public official in the legislative or executive branch or a member of [his] the staff or immediate family of such candidate or official at a major life event, as defined by the Citizen's Ethics Advisory Board, of the registrant. All such information shall be reported under penalty of false statement.

(c) An individual communicator lobbyist registrant shall file a separate report for each person from whom he received compensation or reimbursement. Notwithstanding any provision of this subsection to the contrary, a business organization to which one or more individual communicator lobbyist registrants belong may file a single report for each client lobbyist in lieu of any separate reports that individual registrants are required to file pursuant to this subsection.

(d) Each registrant who files a notice of termination under subsection (c) of section 1-95 shall file with the Office of State Ethics a financial report, under penalty of false statement, between the first and tenth day of January of the year following termination.

(e) Each client lobbyist registrant financial report shall be on a form prescribed by the board and shall state expenditures made and the fundamental terms of contracts, agreements or promises to pay compensation or reimbursement or to make expenditures in furtherance of lobbying. Any such fundamental terms shall be reported once in the monthly, quarterly or post-termination report next following the entering into of such contract. Such financial report shall include an itemized statement of each expenditure of ten dollars or more per person for each occasion made by the reporting registrant or a group of registrants which includes the reporting registrant for the benefit of a candidate for public office or a public official in the legislative or executive branch, a member of [his] the staff or immediate family of such candidate or official, itemized by date, beneficiary, amount and circumstances of the transaction. The requirement of an itemized statement shall not apply to an expenditure made by a reporting registrant or a group of registrants which includes the reporting registrant for (1) the benefit of the members of the General Assembly at an event that is a reception to which all such members are invited or all members of a region of the state, as such term is used in [subdivision (11) of subsection (g)] subdivision (7) of section 1-91, as amended by this act, are invited, unless the expenditure is thirty dollars or more per person, or (2) benefits personally and directly received by a candidate for public office, public official or state employee at a charitable or civic event at which the public official or state employee participates in his or her official capacity, or at which the candidate for public office participates in his or her capacity as a candidate, unless the expenditure is thirty dollars or more per person, per event. If the compensation is required to be reported for an individual whose lobbying is [incidental to his regular] within the scope of such person's employment, it shall be sufficient to report a prorated amount based on the value of the time devoted to lobbying. On the first financial report following registration each client lobbyist registrant shall include any expenditures incident to lobbying activities which were received or expended prior to registration and not previously reported to the Office of State Ethics.

(f) The Citizen's Ethics Advisory Board shall, by regulations adopted in accordance with chapter 54, establish minimum amounts for each item required to be reported, below which reporting may be made in the aggregate. The provisions of this subsection shall not apply to expenditures made for the benefit of a public official or a member of such person's staff or immediate family.

(g) Each former registrant shall (1) report receipts or expenditures incident to lobbying activities during his period of registration which are received or expended following termination of registration, and (2) report each expenditure of ten dollars or more per person for each occasion made by him for the benefit of a candidate for public office or a public official or a member of such official's or candidate's immediate family or staff which occurs within six months after termination of registration.

(h) The Office of State Ethics shall, [within] not later than thirty days after receipt of a financial report which contains the name of a candidate for public office or a public official in the legislative or executive branch or a member of such candidate's or official's staff or immediate family, send a written notice to such candidate or public official, of the filing of the report and the name of the person who filed it.

Sec. 14. Subsection (a) of section 1-97 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):

(a) No registrant or anyone acting on behalf of a registrant shall knowingly give a gift, as defined in [subsection (g)] subdivision (7) of section 1-91, as amended by this act, to any state employee, public official, candidate for public office or a member of any such person's staff or immediate family. Nothing in this section shall be construed to permit any activity prohibited under section 53a-147 or 53a-148.

Sec. 15. Section 2-16a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):

No state representative or state senator who is elected at the 1994 state election or any election thereafter shall engage in the profession of lobbyist, as that term is defined in [subsection (l)] subdivision (12) of section 1-91, as amended by this act, until one year after the expiration of the term for which such state representative or state senator was elected.

Sec. 16. Subsection (b) of section 3-13l of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):

(b) For purposes of this section:

(1) "Finder's fee" means compensation in the form of cash, cash equivalents or other things of value paid to or received by a third party in connection with an investment transaction to which the state, any political subdivision of the state or any quasi-public agency, as defined in section 1-120, is a party for any services, and includes, but is not limited to, any fee paid for lobbying, as defined in [subsection (k)] subdivision (11) of section 1-91, as amended by this act, and as defined by the Citizen's Ethics Advisory Board, in consultation with the Treasurer, in the regulations adopted under subparagraph (C)(ii) of subdivision (3) of this subsection or as prescribed by the Treasurer until such regulations are adopted.

(2) "Finder's fee" does not mean (A)(i) compensation earned for the rendering of investment services, as defined in subsection (f) of section 9-612, or for acting as a licensed real estate broker or real estate sales person under the provisions of section 20-312, or under a comparable statute of the jurisdiction in which the subject property is located, or (ii) marketing fees or due diligence fees earned by the payee in connection with the offer, sale or purchase of any security or investment interest, in accordance with criteria prescribed under subparagraph (C)(ii) of subdivision (3) of this subsection, (B) compensation paid to (i) persons who are investment professionals engaged in the ongoing business of representing investment services providers, or (ii) third parties for services connected to the issuance of debt by the state, any political subdivision of the state or any quasi-public agency, as defined in section 1-120, and (C) any compensation which is so defined by the regulations adopted under subparagraph (C)(ii) of subdivision (3) of this subsection, or any compensation which meets criteria prescribed by the Treasurer until such regulations are adopted. As used in this section, "offer" and "sale" have the meaning provided in section 36b-3.

(3) "Investment professional" means an individual or firm whose primary business is bringing together institutional funds and investment opportunities and who (A) is a broker-dealer or investment adviser agent licensed or registered (i) under the Connecticut Uniform Securities Act; (ii) in the case of an investment adviser agent, with the Securities and Exchange Commission, in accordance with the Investment Advisors' Act of 1940; or (iii) in the case of a broker-dealer, with the National Association of Securities Dealers in accordance with the Securities Exchange Act of 1934, or (B) is licensed under section 20-312, or under a comparable statute of the jurisdiction in which the subject property is located, or (C) (i) furnishes an investment manager with marketing services including, but not limited to, developing an overall marketing strategy focusing on more than one institutional fund, designing or publishing marketing brochures or other presentation material such as logos and brands for investment products, responding to requests for proposals, completing due diligence questionnaires, identifying a range of potential investors, or such other services as may be identified in regulations adopted under clause (ii) of this subparagraph; and (ii) meets criteria prescribed (I) by the Treasurer until regulations are adopted under this subparagraph, or (II) by the Citizen's Ethics Advisory Board, in consultation with the Treasurer, in regulations adopted in accordance with the provisions of chapter 54. Prior to adopting such regulations, the Citizen's Ethics Advisory Board shall transmit the proposed regulations to the Treasurer not later than one hundred twenty days before any period for public comment on such regulations commences and shall consider any comments or recommendations the Treasurer may have regarding such regulations. In developing such regulations, the Citizen's Ethics Advisory Board shall ensure that the state will not be competitively disadvantaged by such regulations relative to any legitimate financial market.

Sec. 17. Section 4-250 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 2, 2012):

As used in sections 4-250 to 4-252:

(1) "Gift" has the same meaning as provided in section 1-79, as amended by this act, except [that] the exclusion in [subdivision (12) of subsection (e)] subparagraph (L) of subdivision (5) of [said] section 1-79, as amended by this act, for a gift for the celebration of a major life event shall not apply;

(2) "Quasi-public agency", "public official" and "state employee" have the same meanings as provided in section 1-79, as amended by this act;

(3) "State agency" means any office, department, board, council, commission, institution or other agency in the executive, legislative or judicial branch of state government;

(4) "Large state contract" means an agreement or a combination or series of agreements between a state agency or a quasi-public agency and a person, firm or corporation, having a total value of more than five hundred thousand dollars in a calendar or fiscal year, for (A) a project for the construction, alteration or repair of any public building or public work, (B) services, including, but not limited to, consulting and professional services, (C) the procurement of supplies, materials or equipment, (D) a lease, or (E) a licensing arrangement. The term "large state contract" shall not include a contract between a state agency or a quasi-public agency and a political subdivision of the state;

(5) "Principals and key personnel" means officers, directors, shareholders, members, partners and managerial employees; and

(6) "Participated substantially" means participation that is direct, extensive and substantive, and not peripheral, clerical or ministerial.

Sec. 18. Subsection (d) of section 15-120bb of the 2012 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):

(d) The board of directors of the authority shall appoint an executive director who shall not be a member of the board and who shall serve at the pleasure of the board and receive such compensation as shall be fixed by the board. The executive director shall be the chief administrative officer of the authority and shall direct and supervise administrative affairs and technical activities in accordance with the directives of the board. The executive director shall approve all accounts for salaries, allowable expenses of the authority or of any employee or consultant thereof, and expenses incidental to the operation of the authority. The executive director shall perform such other duties as may be directed by the board in carrying out the purposes of [subsection (l)] subdivision (12) of section 1-79, as amended by this act, sections 1-120, 1-124 and 1-125, subsection (f) of section 4b-3, sections 13b-4 and 13b-42, subsection (a) of section 13b-44 and sections 15-101aa and 15-120aa to 15-120oo, inclusive. The executive director shall be exempt from the classified service. The executive director shall attend all meetings of the board, keep a record of the proceedings of the authority and shall maintain and be custodian of all books, documents and papers filed with the authority and of the minute book or journal of the authority and of its official seal. The executive director may cause copies to be made of all minutes and other records and documents of the authority and may give certificates under the official seal of the authority to the effect that such copies are true copies, and all persons dealing with the authority may rely upon such certificates.

Sec. 19. Subsection (f) of section 15-120ll of the 2012 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):

(f) The Comptroller may establish such funds and accounts for the authority as may be requested by the authority or as may be necessary or appropriate to effect the terms of any memorandum of understanding or as may be convenient to effect the purposes of [subsection (l)] subdivision (12) of section 1-79, as amended by this act, sections 1-120, 1-124 and 1-125, subsection (f) of section 4b-3, sections 13b-4 and 13b-42, subsection (a) of section 13b-44 and sections 15-101aa and 15-120aa to 15-120oo, inclusive, including, without limitation, a fund to support the general aviation airports and a fund for the authority's general operations. All revenue from the licensing of state airports and use of services of the authority shall be paid into the fund established for the authority's general operations, to be used by the authority according to the authority's budget for its authorized purposes.

Sec. 20. Subsection (c) of section 38a-1081 of the 2012 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):

(c) (1) All initial appointments shall be made not later than July 1, 2011. Following the expiration of such initial terms, subsequent board members terms shall be for four years. Any vacancy shall be filled by the appointing authority for the balance of the unexpired term. If an appointing authority fails to make an initial appointment, or an appointment to fill a vacancy within ninety days of the date of such vacancy, the appointed board members may make such appointment by a majority vote. Any board member previously appointed to the board or appointed to fill a vacancy may be reappointed in accordance with this section. Any board member may be removed for misfeasance, malfeasance or wilful neglect of duty at the sole direction of the appointing authority.

(2) As a condition of qualifying as a member of the board of directors, each appointee shall, before entering upon such member's duties, take and subscribe the oath or affirmation required under section 1 of article eleventh of the Constitution of the state. A record of each such oath shall be filed in the office of the Secretary of the State.

(3) Appointed board members may not designate a representative to perform in their absence their respective duties under sections 38a-1080 to 38a-1090, inclusive. The Governor shall select a chairperson from among the board members and the board members shall annually elect a vice-chairperson. The chairperson shall schedule the first meeting of the board, which shall be held not later than August 1, 2011. Meetings of the board of directors shall be held at such times as shall be specified in the bylaws adopted by the board and at such other time or times as the chairperson deems necessary. Any board member who fails to attend more than fifty per cent of all meetings held during any calendar year shall be deemed to have resigned from the board.

(4) Six board members shall constitute a quorum for the transaction of any business or the exercise of any power of the exchange. For the transaction of any business or the exercise of any power of the exchange, the exchange may act by a majority of the board members present at any meeting at which a quorum is in attendance. No vacancy in the membership of the board of directors shall impair the right of such board members to exercise all the rights and perform all the duties of the board. Any action taken by the board under the provisions of sections 38a-1080 to 38a-1090, inclusive, may be authorized by resolution approved by a majority of the board members present at any regular or special meeting, which resolution shall take effect immediately unless otherwise provided in the resolution.

(5) Board members shall receive no compensation for their services but shall receive actual and necessary expenses incurred in the performance of their official duties.

(6) Subject to the provisions of subdivision (2) of subsection (b) of this section, board members may engage in private employment or in a profession or business, subject to any applicable laws, rules and regulations of the state or federal government regarding official ethics or conflicts of interest.

(7) [Notwithstanding any provision of the general statutes,] Board members shall be subject to part I of chapter 10, except it shall not constitute a conflict of interest for a trustee, director, partner or officer of any person, firm or corporation, or any individual having a financial interest in a person, firm or corporation, to serve as a board member of the exchange, provided such trustee, director, partner, officer or individual shall abstain from deliberation, action or vote by the exchange in specific request to such person, firm or corporation.

(8) Each board member shall execute a surety bond in the penal sum of fifty thousand dollars, or, in lieu thereof, the chairperson of the board shall execute a blanket position bond covering each board member, the chief executive officer and the employees of the exchange, each surety bond to be conditioned upon the faithful performance of the duties of the office or offices covered, to be executed by a surety company authorized to transact business in this state as surety and to be approved by the Attorney General and filed in the office of the Secretary of the State. The cost of each such bond shall be paid by the exchange.

(9) No board member of the exchange shall, for one year after the end of such member's service on the board, accept employment with any health carrier that offers a qualified health benefit plan through the exchange.

This act shall take effect as follows and shall amend the following sections:
Section 1	October 1, 2012	1-79
Sec. 2	October 1, 2012	1-84c
Sec. 3	October 1, 2012	1-80(b)
Sec. 4	October 1, 2012	1-80(k)
Sec. 5	October 1, 2012	1-80
Sec. 6	October 1, 2012	1-84(j)
Sec. 7	October 1, 2012	1-84(m)
Sec. 8	October 1, 2012	1-85
Sec. 9	October 1, 2012	1-86(a)
Sec. 10	October 1, 2012	1-91
Sec. 11	October 1, 2012	1-92(a)
Sec. 12	October 1, 2012	1-94
Sec. 13	October 1, 2012	1-96
Sec. 14	October 1, 2012	1-97(a)
Sec. 15	October 1, 2012	2-16a
Sec. 16	October 1, 2012	3-13l(b)
Sec. 17	October 2, 2012	4-250
Sec. 18	October 1, 2012	15-120bb(d)
Sec. 19	October 1, 2012	15-120ll(f)
Sec. 20	October 1, 2012	38a-1081(c)

Statement of Purpose:

To redefine lobbyist registration and reporting requirements by those who lobby within the scope of employment, to require prospective members of the Citizen's Ethics Advisory Board to certify that they are aware of the special restrictions of the code of ethics that would apply to them, to prohibit public officials from taking certain actions that would benefit their outside employers, to subject board members of the State Health Insurance Exchange to the Code of Ethics, to redefine "gift" for purposes of the codes of ethics and to make other revisions to the codes of ethics.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]