EXECUTIVE ORDER EO 80-16
CONFLICTS OF INTEREST
WHEREAS, Chapter 42.18 RCW cited as
the "Executive Conflict of Interest Act" has as its purpose the
objective of preserving the integrity of state government within the executive
branch; and
WHEREAS, RCW 42.18.240 provides for
appropriate standards to be promulgated by the Governor to protect against
actual or potential conflicts of interest on the part of state employees, in
their employment; and
WHEREAS, it does not appear ear that
such standards have heretofore been proposed although most all of the state
agencies have adopted inhouse regulations pursuant to RCW 42.18.250; and
WHEREAS, it would be to the best
interests of the state of Washington and its employees that the provisions of
Chapter 48.18 RCW be implemented by the adoption of executive standards of
conduct.
NOW,
THEREFORE,
I, Dixy Lee Ray, Governor of the state of Washington, by virtue of the power
vested in me direct that the following standards be followed as a base of
conduct for all state agencies and their employees.
I
AUTHORITY.
These regulations are promulgated pursuant to the authority granted to the
Governor of the state of Washington by Chapter 42.18 RCW the "Executive
Conflict of Interest Act."
II
STATEMENT
OF POLICY.
1. The proper operation of state
government requires that state employees be independent and impartial; that
government decisions be made in the proper channels of the governmental
structure; that public office or employment not be used for personal gain; and
that the public have confidence in the integrity of its government. The
attainment of one or more of these ends is impaired whenever there exists an
actual or potential conflict between the private interests and public duties of
a state employee. The public interest therefore requires that appropriate
ethical standards be established with respect to employee conduct in situations
where actual or potential conflict exists.
2. It is also fundamental that, to the
maximum extent possible, the most qualified individuals in the society serve
its government. Accordingly, the standards of conduct prescribed in these
regulations are to be construed so as to not unnecessarily or unreasonably
impede the recruitment and retention by the state of those men and women who
are most qualified to serve it. An essential principle underlying the staffing
of state agencies is that its employees should not be denied the opportunity,
available to all other citizens to acquire and to retain private economic and
other interests, except where actual or potential conflicts with the
responsibility of such employees to the public cannot be avoided.
III
DEFINITIONS.
All terms used herein which are defined in RCW 42.18.030 through RCW 42.18.150
shall have the same meaning here as there.
IV
"SUBSTANTIAL
ECONOMIC INTEREST." The term "substantial economic interest" as
used in Chapter 42.18 RCW and in these regulations shall mean:
1. A direct and significant economic
interest and shall not include remote or theoretical interests shared with the
public generally, or a specific segment of the public; or
2. Economic holdings or business
transactions with profit-making entities including any kind of contract,
whether it be of debt, employment, loan, lease, option, purchase, sale,
mortgage, insurance or other contracts that can squarely raise the conflict of
interest issue; or
3. Economic interests in the form of
stock, land, partnership interest, or inheritance which should require a state
employee to be disqualified in transactions involving the state.
The
most important principle to be applied in interpreting "substantial
economic interest" is that a state employee's judgment in official matters
may be affected by circumstances of personal interest.
In
a particular situation, identification of the disqualifying interest shall
hinge on all the facts, including the agency, the position, the government
action, the impact of that action, the kind and amount of the employee's
personal interest, its relation to the employee's job and in some instances the
kind and amount of the employee's other interests.
V
OUTSIDE
EMPLOYMENT. Outside employment may be appropriate when it will not (1)
adversely affect performance of a state employee's official duties, (2)
discredit the state or the employing agency, and (3) result in a conflict of
interest. Such work may include civic, charitable, religious and community
undertakings. It may include paid outside work, provided that any compensation
paid shall bear a reasonable relationship to the services performed. Agency
heads should develop and publish criteria on outside employment pertinent to
each individual agency.
VI
EXCEPTIONS
TO RCW 42.18.190. Exceptions to RCW
42.18.190 are as follows:
1. Anything of economic value received by
a regular state employee prior to or subsequent to employment by the state
shall be presumed, in the absence of a showing to the contrary by a clear
preponderance of evidence, not to be for or in consideration of, personal
services rendered or to be rendered to or for the state.
2. A regular state employee's continuation
in a bona fide pension, retirement, group life, health or accident insurance,
or other employee welfare or benefit plan maintained by a former employer but
to which such former employer makes no contributions on behalf of such employee
in respect of the period of his state employment.
3. A regular state employee's continuation
in a bona fide plan maintained by a former employer and to which the former
employer makes contribution on behalf of such employee in cases of:
a. A
pension or retirement plan qualified under provision of the Internal Revenue
Code, or
b. a
group life, health, or accident insurance plan: PROVIDED, that the
contributions by such employer are not made for a period longer than five
consecutive years of state employment (or an aggregate of five years out of the
preceding ten).
4. A regular state employee's rights
acquired under a bona fide profit-sharing or stock bonus plan maintained
by a former employer and qualified under the provisions of the Internal Revenue
Code: PROVIDED, that no contributions are made by such former employer on
behalf of the employee based on profits attributable to any portions of the
period of state employment.
VII
EXCEPTIONS
TO RCW 42.18.200. Exceptions to the provisions of RCW 42.18.200 are as follows:
1. Where obvious family or personal
relationships (such as those between the parents, children or spouse of the
employee) and circumstances make it clear that it is those relationships rather
than the business of the persons concerned which are the motivating factors.
2. Acceptance of food and refreshment in
the ordinary course of a luncheon or dinner meeting or other meeting where an
employee may properly be in attendance.
3. Negotiation and acceptance of loans
from banks or other financial institutions on customary terms to finance proper
and usual activities of employees, such as home mortgage loans.
4. Acceptance of unsolicited advertising
or promotional material such as pens, pencils, note pads, calendars, and other
items of nominal value.
5. Acceptance of bona fide reimbursement
for expenses of travel and such other necessary subsistence as is compatible
with this part for which no state payment or reimbursement is made. However,
this paragraph does not allow an employee to be reimbursed or payment to be
made on his or her behalf, for excessive personal living expenses, gifts,
entertainment or other personal benefits.
VIII
REGULATIONS
ISSUED BY AGENCY.
1. Each agency head may issue regulations
implementing the provisions of Chapter 42.18 RCW and these regulations may
provide for such further exceptions or restrictions therein as may be necessary
and appropriate in view of the nature of the agency's work and the duties and
responsibilities of its employees. Such regulations may also provide for a
procedure for waiver or exemption with respect to conflict of interest
situations Involving employees of the agency where such waiver or exemption is
deemed to be appropriate. Copies of all such regulations and amendments thereto
shall be filed with the Office of the Governor.
2. Each agency head shall be responsible
for the administration and enforcement within the agency of the Executive
Conflict of Interest Act, the regulations herein and any regulations adopted by
the agency head.
IN WITNESS
WHEREOF, I
have hereunto
set my hand and caused the seal of the State
of Washington to be affixed at Olympia
this 8th day of October A.D., Nineteen hundred and
eighty.
DIXY LEE RAY
Governor of Washington
BY THE
GOVERNOR:
_________________________________
Secretary of State
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