ogs procurement services group 2009 state purchasing forum new york state ethics for public...
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2009 Purchasing Forum – Ethics for Public Procurement Changes to Public Officers Law Gifts Conflicts of Interest Agenda Outside Employment Financial Disclosure Post Employment Restrictions Procurement Lobbying QuestionsTRANSCRIPT
OGS Procurement Services Group 2009 State Purchasing Forum
New York State Ethics for Public Procurement
2009 Purchasing Forum – Ethics for Public Procurement
Presenter’s Contact Information
Howard L. Zwickel, Esq.Deputy Commissioner & Counsel
Office of General [email protected]
(518) 474-5988
Anne G. Phillips, Esq.Associate Counsel
Office of General [email protected]
(518) 474-5607
OGS Website:www.ogs.state.ny.us
Public Integrity Website:www.nyintegrity.org
2009 Purchasing Forum – Ethics for Public Procurement
• Changes to Public Officers Law
• Gifts
• Conflicts of Interest
Agenda
• Outside Employment
• Financial Disclosure
• Post Employment Restrictions
Procurement LobbyingQuestions
2009 Purchasing Forum – Ethics for Public Procurement
Public Officers Law
Public Officers Law §73(5) Framework for determining whether a gift to a State officer or employee is permissible
2009 Purchasing Forum – Ethics for Public Procurement
Legislative Law
Legislative Law §1-c(j) – What constitutes a gift? $75 rule is no longer in effect The new standard is nominal value-gift may be:
• Money• Service• Loan• Travel• Lodging
• Meals• Entertainment• Discount• Forbearance• Promise
2009 Purchasing Forum – Ethics for Public Procurement
Legislative Law
Legislative Law §1-m provides that lobbyist are prohibited from offering or giving a gift to any public official
2009 Purchasing Forum – Ethics for Public Procurement
Legislative Law
Legislative Law §1-c(l) defines who is a public official for purposes of the prohibition on gifts
2009 Purchasing Forum – Ethics for Public Procurement
Public Officers Law
Public Officers Law §74 sets forth a Code of Ethics for State officers and employees
2009 Purchasing Forum – Ethics for Public Procurement
Gifts
Commission on Public Integrity – Advisory Opinion 08-01 updates prior opinions relative to gifts
2009 Purchasing Forum – Ethics for Public Procurement
Gifts
• What is a gift?
• What is nominal value?
• The Aggregation Rule
• Disqualified Source
• Impermissible Gifts to Third Parties
2009 Purchasing Forum – Ethics for Public Procurement
Gifts
Exceptions:
• Complimentary attendance at Charitable or Political Events
• Complimentary Attendance at widely attended event
• Promotional items
2009 Purchasing Forum – Ethics for Public Procurement
Conflicts of Interest
Public Officers Law §74 establishes the State Code of Ethics which prohibits conflicts of interest
• Potential conflicts of interest can arise in a number of different situations
• You have responsibilities as a public sector employee that differ from those of private sector employees
2009 Purchasing Forum – Ethics for Public Procurement
General rule is that officers and employees of State government may not engage in activities that would create or appear to create a conflict with their public duties, nor raise suspicion among the public that they are likely to be engaged in acts that are in violation of their public trust
Conflicts of Interest
2009 Purchasing Forum – Ethics for Public Procurement
Public Officers Law §74 sets out a series of standards to determine if there is a conflict of interest, including the concept of “appearance of impropriety”.
Conflicts of Interest
2009 Purchasing Forum – Ethics for Public Procurement
Potential Areas for Conflict of Interest
• Personal outside employment or investments
• Employment of, contracts to, or benefits for family members
• Release of confidential information
• Gifts
2009 Purchasing Forum – Ethics for Public Procurement
• Prohibits accepting other employment that will impair independence of judgment or require disclosure of confidential information
• Prohibits engaging in transactions with any business entity where employee has financial interest that can conflict with duties
• Must abstain from investments that may be directly related to the employee’s decisions or which otherwise create a substantial conflict with duties
Outside Employment or Investments
Public Officers Law §§73 & 74
2009 Purchasing Forum – Ethics for Public Procurement
• Concept of “employment” is broadly defined
• There is no general prohibition against employees engaging in outside employment or compensated activity
• However, prior approval for such employment must be obtained from your state agency and in some instances from the State Ethics Commission
• Violation of the laws and policy, as well as of the following guidelines may be grounds for disciplinary action
Outside Employment or Investments
2009 Purchasing Forum – Ethics for Public Procurement
2009 Purchasing Forum – Ethics for Public Procurement
• POL standards prohibiting use of official position to secure unwarranted privileges for self or others
• Cannot give reasonable basis for appearance that employee is affected by kinship, rank, position or influence of any party or person
• Cannot raise suspicion among public that you are likely to be engaged in actions in violation of trust
• Cannot give reasonable basis for impression that any person can improperly influence you or unduly enjoy your favor in the performance of your official duties
Employment of, Contracts to, or Benefits For Family Members or Others
(Public Officers Law §74)
2009 Purchasing Forum – Ethics for Public Procurement
• Public Officers Law §73(4)(i) prohibits sales of goods or services greater than $25 to a State agency by a State employee or a firm where the employee has more than 10% stock unless there is a competitive bid.
• Important to make inquiry and document in the procurement record.
Employment of Current State Employees
2009 Purchasing Forum – Ethics for Public Procurement
• Code of Conduct has several prohibitions about release of confidential information
• Information confidential to the agency (information about the agency or decisions by the agency not otherwise known)
• Information confidential to the process
• Information obtained from a vendor either as part of the procurement process or as the result of the procurement
Release of Confidential Information (Public Officers Law §74)
2009 Purchasing Forum – Ethics for Public Procurement
(Public Officers Law §§73(5) and 74)
• While some would argue that public employees “can’t be bought for a lunch”, it is an issue of perception, the appearance of impropriety or fairness.
• Look at it from the perspective of the other vendors and the general public and the message that it sends other agency employees.
• There are circumstances under which a state employee can accept a gift.
Gifts
2009 Purchasing Forum – Ethics for Public Procurement
Public Officers Law §73-a
• Policy Makers or
• Salary Threshold: Over SG-24
• Subject to certain exemptions
• File Annually by May 15 or within 30 Days of Joining State Service
• Financial Disclosure Statements currently available on-line at:
http://www.nyintegrity.org/forms/ethics.html
Financial Disclosure
2009 Purchasing Forum – Ethics for Public Procurement
(Public Officers Law §73 (8))
• Two-Year Bar on activities before employee’s former agency.
• Lifetime Bar on transactions that the employee worked on while in state service-agency is irrelevant.
• Government-to-Government Exceptions
• Solicitations or discussions of employment opportunities with an individual or entity that has a pending matter before the state employee is prohibited.
Post Employment Restrictions
2009 Purchasing Forum – Ethics for Public Procurement
State Finance Law §§ 139-j and 139-k
Procurement Lobbying• State Finance Law restricts communications between
the business community (offerers and the government about procurement contracts
• It recognizes there are different kinds of communications
• Communications that are an “attempt to influence” have specific rules (referred to as Contacts)
• The Law requires each Governmental Entity to develop a policy on permissible Contacts and to inform Offerers.
2009 Purchasing Forum – Ethics for Public Procurement
State Finance Law §§ 139-j and 139-k
• The policy tells business community where to direct advocacy efforts
• If an Offerer does not so limit Contacts, the Contacts are “impermissible Contacts”
• Violation of such rules has severe consequences – including public notice of non-responsibility, non-award of contract and debarment
• State Finance Law requires each state agency to conduct a review and investigation about the impermissible Contacts
• OGS is responsible for maintaining on the internet lists of businesses that have violated requirements
2009 Purchasing Forum – Ethics for Public Procurement
State Finance Law §§ 139-j and 139-k
General Rule• Offer can always contact Designated Contact• Offerer cannot Contact other employees or
governmental entities unless falls within one of the permissible subject matter (SFL §139-j(4))
• For example, okay to file written protest or complaint with OSC, but not to otherwise Contact
2009 Purchasing Forum – Ethics for Public Procurement
State Finance Law §§ 139-j and 139-k
Do’sFind out what a vendor wants to discuss before agreeing to talk• Determine if there is a Restricted Period • If there is a Restricted Period, determine who is the
Designated Contact for that procurement and • Direct communications correctly (namely to the
Designated Contact)Follow the processes in the solicitation• Generally request all questions be submitted in writing
to the contracting officer listed in the solicitation
2009 Purchasing Forum – Ethics for Public Procurement
State Finance Law §§ 139-j and 139-kDo’s
• Develop agendas for any meetings that are conducted and stick with the agenda
• Create a record of Contact for every Contact – even if you are the Designated Contact or otherwise authorized under statute
• Send the record of Contact to the Designated Contact for inclusion in procurement record
• If not a Designated Contact, do refer for investigation all impermissible Contacts
• You don’t make decision: you are obligated to make a referral!• Do cooperate with your counsel or Ethics Officer in its
investigation
2009 Purchasing Forum – Ethics for Public Procurement
State Finance Law §§ 139-j and 139-kDon’ts
• Don’t discuss procurements in a Restricted Period – it lasts until OSC approves the contract!
• Don’t miss opportunities for process improvements • clearly identify when Restricted Period commences• formalize information exchanges with business• formalize procurement processes• Don’t hesitate to call or e-mail your Counsel or
Ethics Officer with any questions about the Law or if additional training is needed.
2009 Purchasing Forum – Ethics for Public Procurement
State Finance Law §§ 139-j and 139-k
Resources
Guidance developed by the Advisory Council on Procurement Lobbying, model forms and language and other materials, are present on the internet at
http://www.ogs.state.ny.us/aboutOgs/regulations/defaultAdvisoryCouncil.html
2009 Purchasing Forum – Ethics for Public Procurement
OGS Policy on Permissible Contacts
• Access through OGSNow “Procurement Lobbying” at http://ogsnow/ogspolicy/viewpolicy.asp?policyID=169
• Access through the public web site under “About OGS” at http://www.ogs.state.ny.us/aboutOgs/regulations/defaultSFL_139j-k.html
• Business Unit specific policies
2009 Purchasing Forum – Ethics for Public Procurement
Questions and Answers
?
2009 Purchasing Forum – Ethics for Public Procurement
Presenter’s Contact Information
Howard L. Zwickel, Esq.Deputy Commissioner & Counsel
Office of General [email protected]
(518) 474-5988
Anne G. Phillips, Esq.Associate Counsel
Office of General [email protected]
(518) 474-5607
OGS Website:www.ogs.state.ny.us
Public Integrity Website:www.nyintegrity.org