2013 -- H 5673

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LC01699

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- CODE OF ETHICS

     Introduced By: Representatives Marcello, Hearn, Serpa, Fellela, and Costa

     Date Introduced: February 27, 2013

     Referred To: House Judiciary

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 36-14-9 and 36-14-17 of the General Laws in Chapter 36-14

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entitled "Code of Ethics" are hereby amended to read as follows:

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     36-14-9. Administrative powers of the commission. -- (a) The commission is hereby

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empowered to:

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      (1) Engage the services of an executive director and of other legal, secretarial, and

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investigative employees, who shall be bound by the prohibitions contained in section 36-14-8(f),

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and to make such other expenditures as are necessary for the effective performance of its

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functions;

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      (2) Separately retain the services of independent legal counsel who shall be bound by the

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prohibitions contained in section 36-14-8(f) and who shall remain independent of the executive

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director and other commission employees;

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      (3) Prescribe and publish, after notice and public hearings, rules and regulations to carry

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out the provisions of this chapter;

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      (4) Prescribe forms for statements and reports required to be filed by this chapter and

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furnish the forms to persons required to file statements and reports;

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      (5) Prepare and publish a manual setting forth recommended uniform methods of

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accounting and reporting for use by persons required to file statements and reports by this

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chapter;

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      (6) Accept and file any information voluntarily supplied that exceeds the requirements of

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this chapter;

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      (7) Compile and maintain an index of all reports and statements filed with the

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commission to facilitate public access to the reports and statements;

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      (8) Prepare and publish quarterly and annually summaries of statements and reports filed

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with the commission;

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      (9) Review all statements and reports filed with the commission in order to ascertain

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whether any person has failed to file a required statement or has filed a deficient statement;

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      (10) Preserve statements and reports filed with the commission for a period of five (5)

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years from date of receipt;

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      (11) Prepare and publish special reports and technical studies to further the purposes of

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this chapter;

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      (12) Prepare and publish, prior to April 1 of each year, an annual report summarizing the

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activities of the commission, including, but not limited to, the:

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      (i) Number of disclosure statements filed;

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      (ii) Subjects of advisory opinions requested and issued;

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      (iii) Number of complaints filed, investigated and/or adjudicated; and

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     (iv) Number of audits conducted of financial disclosure statements.

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      (13) Have a seal and the members, executive director, and assistant clerks thereof shall

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have authority and power to administer oaths and affirmations;

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      (14) Educate public officials, employees, and citizens on ethical standards as embodied

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in the code of ethics by holding regular workshops, seminars, and the like, focusing on the

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specifics of the code of ethics and compliance therewith;

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      (15) Create publications to explain the ethical conduct expected of officials and

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employees.

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     (16) Require an annual independent audit of no less than ten percent (10%) of all

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financial statements filed on an annual basis pursuant to section 36-14-16.

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      (b) The rulemaking power conferred by subsection (a)(3) of this section shall be subject

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to, and shall be exercised in conformity with, sections 42-35-2 -- 42-35-7.

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      (c) Unless specifically prohibited, the commission shall make statements and reports

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filed with the commission available for public inspection and copying during regular office hours

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and make copying facilities available at a charge not to exceed actual cost.

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     36-14-17. Content of financial statement. -- (a) The financial statement required herein

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shall be on a form prescribed by the commission and shall include the account of the financial

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activity of the person required to file the statement by this chapter, the financial activity of his or

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her spouse (if not estranged), and any dependent children for the preceding calendar year.

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      (b) The account of financial activity referred to in subsection (a) of this section shall

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consist of:

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      (1) If he or she or any person enumerated in subsection (a) of this section or a business

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entity in which he or she or any person enumerated as aforesaid held a ten percent (10%) or

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greater equity interest or five thousand dollars ($5,000) or greater cash value interest at any time

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during the calendar year for which the statement is required has done business with a state or

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municipal agency or a business which is subject to direct regulation greater than of a de minimus

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nature by a state or municipal agency, and if so, the date and nature of the business;

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      (2) A list of all sources of occupational income identified by employer or, if self

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employed, by the nature of occupation or profession, and if income was received from a state or

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municipal agency, the name and address of the agency and the nature of the services rendered and

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if the occupation or profession is licensed by the state; however, general officers, as defined in

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section 17-2-1, shall list all sources and amounts of income in excess of two hundred dollars

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($200) according to the following categories:

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      (i) not more than $1000

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      (ii) greater than $1000 but no more than $10,000

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      (iii) greater than $10,000 but no more than $25,000

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      (iv) greater than $25,000 but no more than $50,000

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      (v) greater than $50,000 but no more than $100,000

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      (vi) greater than $100,000 but no more than $200,000

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      (vii) greater than $200,000 but no more than $500,000

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      (viii) greater than $500,000 but no more than $1,000,000

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      (ix) greater than $1,000,000

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      (3) A listing of all real property in which a financial interest was held; however, this

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section shall not apply to real property used exclusively as his or her principal residence;

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      (4) Identification of any interested person from whom the person or his or her spouse (if

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not estranged) or any dependent child received a gift or contribution of money or property in

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excess of one hundred dollars ($100) in value or a series of gifts or contributions of money or

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property, the total of which exceeds one hundred dollars ($100) in value received from the same

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source, and a description of each gift or contributions, except those received from persons related

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to the person at any time within the third degree of consanguinity or affinity and campaign

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contributions which were reported as required by law, for purposes of this subsection, "interested

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person", means a person or a representative of a person or business that has a direct financial

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interest in a decision that the person subject to the Code of Ethics is authorized to make, or to

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participate in the making of, as part of his or her official duties;

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      (5) Identification of the source of all income received as beneficiary of a trust and

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identification of each asset, if known to the beneficiary, from which income was received by the

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beneficiary in excess of one thousand dollars ($1,000);

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      (6) A list of all boards of directors of which the person is a member and executive

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positions which he or she holds in any business entity, stating the name and address of each

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business entity;

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      (7) The name and address of any business entity in which he or she or any person

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enumerated in subsection (a) of this section held a ten percent (10%) or greater equity interest or

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five thousand dollars ($5,000) or greater cash value interest in at any time during the calendar

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year for which the statement is required; and

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      (8) (i) Identification of any person, business entity, financial institution or other

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organization to whom the person was indebted at any time during the calendar year for which the

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statement is required in an amount in excess of one thousand dollars ($1,000) other than:

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      (A) Any person related to the person at any time within the third degree of consanguinity

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or affinity; or

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      (B) Any transactions involving credit cards; or

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      (C) Any indebtedness to a financial institution, licensed and regulated by any state or by

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the United States, which is secured solely by a mortgage of record on real property used

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exclusively as the principal residence of the person required to file the statement.

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      (ii) This section does not require the reporting of the amount or amounts of the

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indebtedness or the payment record of the loans.

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     (9) Identification of any delinquent taxes owed to the state or child support payments that

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are in arrears; and

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     (10) Identification of leadership positions in any political action committee as defined by

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Rhode Island general law subdivision 17-25-3(10).

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      (c) The financial statement shall be sworn to under oath.

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     SECTION 2. This act shall take effect upon passage.

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LC01699

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- CODE OF ETHICS

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     This act would make changes to the code of ethics for public officers including, requiring

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audits of no less than ten percent (10%) of all financial statements filed and would require the

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identification of delinquent taxes, child support arrearages and PAC leadership affiliations on

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financial statements.

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     This act would take effect upon passage.

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LC01699

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