Ethics and Conflicts of Interest For Public Officials

1. Ethics and Conflicts of InterestFor Public Officials

2. How to Not Embarrass Your County, Yourself, and Your Family AND Avoid Going to Jail IAC Newly Elected Officials Training November, 2012 Created by Bill Thompson, Latah County Prosecutor Bryan Taylor, Canyon County Prosecutor

3. A typical day in the life of a public official

4. Examples of Public Official Misconduct Cases In Idaho • Receipt of gifts/trips/perquisites. • Corrupt, Illegal or “Sub Rosa” practices by public officials. • Misuse of public monies/credit cards. • Abuse of authority. • Ex parte contacts.

5. Examples (cont.) • Nepotism/discrimination in hiring. • Self-Interest in contracts. • Failure to comply with open meetings act. • Unlawful employment practices or harassment. • Failure to comply with public records law.

6. Our Premise As a public official you have a personal, legal, and ethical duty to serve the public interest and act as the conscience of your agency.

7. Topics of Ethics Discussion • Ethics in Your Many Roles as a Public Official • Where Do Your Ethical Duties Come From? • Ethical and Legal Conflicts of Interest • Ethics of Government Transparency • Consequences of Ethical Violations

8. Topic 1:Ethics in Your Many Roles as a Public Official

9. The different hats of a public official Ethical standards require you to remember which hat you are wearing

10. The Multiple Roles of Public Officials • Policy makers, Legislators/Regulators • Executive/Enforcers • Quasi-Judicial Judges

11. Topic 2: Where do ethical duties come from?

12. Sources of ethics • Your own values/ethics • Every statutory obligation places upon the public servant a legal and an ethical obligation

13. Statutory Ethics Following the law is what people must do; there are penalties and other consequences associated with violating the law.

14. Statutes overlap in regulation. Analysis should go beyond the language of the statutes. Ethics start with the individual’s attitude. “Proper analysis of ethical statutes should not be for ‘loopholes’ or ‘technicalities’ by which one can take advantage of government, the public or other interested parties. If your analysis requires that you find a ‘loophole,’ . . . then your conduct is likely unethical.” Idaho Ethics in Government Manual, pg. 21 Analysis of ethics must includeall relevant statutes

15. Idaho Statutes (1) Ethics in Government Act I.C. §§ 59-701 through 59-705 (2) Bribery & Corrupt Influence Act I.C. §§ 18-1351 through 18-1362

16. Idaho Statutes (cont.) (3)Prohibition against contracts with officers I.C. §§ 59-201 through 59-210 (4) Misuse of Public Funds I.C. §§ 18-5701 through 18-5704

17. Idaho Statutes (cont.) (5)Local Planning Act Conflicts I.C. § 67-6506

18. (1) Ethics in Government ActI.C. § 59-701 et. seq. Purpose: • Protect integrity of government in Idaho. • Assure honesty of public officials. • Assure that policies and actions reflect the public interest.

19. Definitions: I.C. §59-703 (6) Government Entity: - counties, municipalities and all political subdivisions (10) Public Official: - any person holding public office (7) Members of a household: - spouse, children, or dependent of public official

20. Definitions, (cont.):~ I.C. §59-703 (5) Economic gain: - increase in pecuniary value from a source other than lawful compensation as a public official (3) Business with which a public official is associated: - any business which the public official or member of his household has a $5,000 or more interest in.

21. Definitions, (cont.)~ I.C. §59-703 (4) "Conflict of interest" means any official action or any decision or recommendation by a person acting in a capacity as a public official, the effect of which would be to the private pecuniary benefit of the person or a member of the person's household, or a business with which the person or a member of the person's household is associated. • Limited exceptions in situations of only general impact.

22. Required Action in ConflictsI.C. §59-704

23. Required Action in Conflicts, (cont.) Disclosure • Prior to taking any action • May be verbal, but must be on the record, except appointed/employed public officials are required to disclose in writing to their appointing authority

24. Required Action in Conflicts, (cont.) • “SAFE HAVEN” • Elected Officials may rely on legal advice from the public entity’s legal counsel, the Attorney General, or private counsel. Query: What if the legal advisors disagree?

25. Sanctions • $500 civil penalty

26. (2) Bribery & Corrupt Influence Act:I.C. § 18-1351 et. seq. Definitions Benefit: - gain or an advantage Economic Gain: - An increase in pecuniary value from sources other than lawful compensation as an official Pecuniary Benefit: - Any economic gain by a public official or their household

27. Definitions (cont.) Public Funds: - All moneys, bonds, and evidences of indebtedness received or held by state, county, or city officers in their official capacity. Public Monies: - All moneys belonging to or in the care of an entity or public officer and all credit cards and credit accounts issued to such an entity

28. Definitions (cont.) Conflict of interest: • Any official action, decision, or recommendation by a public official that would derive a pecuniary benefit for themselves, their family, or business Confidential Information: • Knowledge gained through a public office that you otherwise would not have access to and is not subject to disclosure

29. Bribery & Corrupt Influence Act I.C. §18-1352 – Can’t take bribes while holding a public position ~ (Felony) a. Any decision, recommendation, vote, or other action made by a public official for the purpose of a pecuniary benefit

30. Bribery & Corrupt Influence Act (cont.) I.C. §18-1353 – Protects public servants from threats and improper influences I.C. §18-1353A – Protects public officials from threats and improper influences I.C. §18-1354 – Can’t take bribes for past official behavior I.C. §18-1355 – Protects public officials from retaliation for past official actions I.C. §18-1356 – Can’t take or receive gifts I.C. §18-1357 – Can’t be compensated for assisting private interests I.C. §18-1358 – Prohibits the selling of political endorsements I.C. §18-1359 – Prohibits using public position for personal gain - ($50.00)

31. Consanguinity Chart

32. Using Public Position for Personal Gain - Small Town Exception - I.C. §18-1361 • The prohibitions on “self-interested contracts” do not apply where there are less than three suppliers of the good/service within a 15 mile radius and the contract is reasonably necessary to respond to a disaster OR • The contract is competitively bid and neither the public servant nor his relatives take part in the preparation of the contract or bid, or in the voting /approval of the contract or bid, and the public servant makes full disclosure in writing to the governing board. 

33. (3) Prohibition Against Contracts with OfficersI.C. § 59-201 et. seq. Public official must not have an interest in any contract made by them in their official capacity

34. Interest in Contracts ProhibitedI.C. §59-201A (1) The prohibition does not apply if there is only a “remote interest” in the contract and such interest is disclosed to the government body and noted in the official minutes/ records.

35. Contractual conflicts of interest Law is designed to make sure a public official’s sole motivation when entering into contracts is the public’s benefit - not personal financial interests. The goal is to prevent public officials from exploiting their positions for private benefit.

36. (4) Misuse of public moneysI.C. § 18-5701 et. seq. • Can’t appropriate public moneys for your own use • Can’t loan public moneys unless authorized by law • Fail to keep public moneys in your possession • Deposit public moneys not authorized by law • Change or covert public moneys not authorized

37. Misuse of public funds (cont.) (6) Knowingly keep any false account (7) Willfully refuse or omit to pay upon request (8) Willfully omit to transfer moneys when required by law (9) Willfully omit or refuse to pay a public servant (10) Knowingly use any public moneys or credit cards for personal use.

38. Punishment for Misuse of Public Funds Ranges from Misdemeanor to Felony

39. (5) Local Planning Act ConflictsI.C. §67-6506 • A member or employee of a governing board, commission, shall not participate in any proceeding or action when the member or employee or his employer, business partner, business associate, or any person related to him by affinity or consanguinity within the second degree has an economic interest in the procedure or action. • Any actual or potential interest in any proceeding shall be disclosed at or before any meeting at which the action is being heard or considered. (Cont.)

40. Local Planning Act Conflicts, (cont.) • "participation" means engaging in activities which constitute deliberations pursuant to the open meeting act. No member of a governing board or a planning and zoning commission with a conflict of interest shall participate in any aspect of the decision-making process concerning a matter involving the conflict of interest. • A knowing violation of this section shall be a misdemeanor.

41. Topic 3: Ethical and Legal Conflicts of Interest

42. Different kinds of conflicts of interest. Placing a relative in a public position that is compensated with public funds (IC § 18-1359(1)(e)) Contracts between a government body in which one relation serves and a business in which another relation has an interest (I.C. § 18-1359) Contracts between a government body in which an individual is a public servant and a business in which that same individual has an interest (I.C. § 18-1359(1)(d)) Conflicts of Interests

43. Conflicts of Interest (cont.) In our political culture, we are sensitive to the mere possibility that decision-makers might put their financial interests ahead of those of the public. Some laws are designed to avoid even the perception that personal financial gain motivated a decision.

44. Topic 4: The Ethics of Government Transparency

45. The ethics of transparency laws • The principle underlying the governmental transparency laws is that the public trusts what it can observe. • Furthermore, the prospect that actions will be publicly known can be a deterrent against actions that might undermine public trust.

46. Elements of Transparency #1: Business in the open #2: Public’s right to participate #3: Access to meeting records #4: Access to public records

47. Element #1:Conducting the Public’s Business in the Open • Idaho’s Open Meeting Laws provide legal minimums for local governmental transparency in decision-making. • Decision-making bodies must conduct their business in an open and public meeting to ensure that the public is fully informed about local decisions.

48. Element #2: The public’s right to participate in meetings • Posting and following agenda • The public’s right to be heard • Reasonable time limits may be imposed

49. Element #3:Public’s right to access meeting records • Copies of the agenda materials and other documents distributed to the governing body must also be available to the public. • The public has the right to see any materials that are created as part of conducting the people’s business.

50. Element #4:Public Records Although there are exceptions to a public agency’s duty to disclose records, the safe assumption is that virtually all materials involved in one’s service on a public governing body - including e-mails - are public records subject to disclosure.