Code of Ethics for Reporting Individuals and Procurement Employees

DEPARTMENT OF THE LOTTERY

RULE NO: RULE TITLE
53ER07-41: Code of Ethics for Reporting Individuals and Procurement Employees
SUMMARY: This emergency rule sets forth the ethics rules governing reporting individuals and procurement employees of the Florida Lottery.
THE PERSON TO BE CONTACTED REGARDING THE EMERGENCY RULE IS: Faith L. Schneider, Legal Analyst, Department of the Lottery, 250 Marriott Drive, Tallahassee, Florida 32399-4011

THE FULL TEXT OF THE EMERGENCY RULE IS:

53ER07-41 Code of Ethics for Reporting Individuals and Procurement Employees.

(1) All employees of the Florida Lottery are subject to the provisions of Chapter 112, Part III, Fla. Stat., Chapter 24, Fla. Stat., and rules promulgated thereunder. Where there are differences between this rule and the statute, the stricter provisions will apply.

(2) Definitions.

For purposes of this rule,

(a) “Employee” means any person employed by the Florida Lottery, including an OPS employee, who is a reporting individual or procurement employee, as those terms are defined below.

(b) “Gift” means anything accepted by a person or on that person’s behalf, whether directly or indirectly, for that person’s benefit and for which no payment is made, and can include: real property or the use thereof; tangible or intangible personal property or the use thereof; preferential rate or terms on a transaction not available to others similarly situated; forgiveness of a debt; transportation, lodging or parking; food or beverage; dues, fees and tickets; plants and flowers; personal services for which a fee is normally charged; or any other thing or service having an attributable value.

(c) “Gift” does not include:

1. Salary, benefits, services, fees, commissions, gifts or expenses associated primarily with the donee’s employment, business, or service as an officer or director of a corporation or organization; or

2. Contributions reported pursuant to Chapter 106, F.S., campaign-related personal services provided by individuals volunteering their time, or any other contribution or expenditure by a political party; or

3. An honorarium or expense related to an honorarium event paid to a person or the person’s spouse by someone other than a lobbyist or principal of a lobbyist; or

4. An award, plaque, certificate or similar personalized item given in recognition of the donee’s public, civic, charitable or professional service, provided that such item has no separate commercial value; or

5. Honorary membership in a service or fraternal organization presented as a courtesy by the organization; or

6. Use of a public facility for a public purpose made available by a governmental agency; or

7. Transportation provided by an agency in relation to officially approved governmental business; or

8. Anything of value provided directly or indirectly by a state, regional or national organization which promotes the exchange of ideas between, or the professional development of, governmental officials or employees, and whose membership is primarily composed of elected or appointed public officials or staff, to members of that organization, or staff of a governmental agency that is a member of the organization.

(d) “Lobby” means to seek, on behalf of another person, to influence an agency with respect to a decision of the agency in the area of policy or procurement or an attempt to obtain the goodwill of an agency official or employee.

(e) “Lobbyist” means a person who is employed and receives payment for the purpose of lobbying, or a person who is principally employed for governmental affairs by another person or governmental entity to lobby on behalf of that other person or governmental entity, excluding an employee of an agency or of a legislative or judicial branch entity acting in the normal course of his or her duties.

(f) “Principal” means the person, firm, corporation or other entity which has employed or retained a lobbyist.

(g) “Procurement employee” means any employee who participates through decision, approval, disapproval, recommendation, preparation of any part of a purchase request, influencing the content of any specification or procurement standard, rendering of advice, investigation, or auditing or in any other advisory capacity in the procurement of contractual services or commodities as defined in Section 287.012, Fla. Stat., if the cost of such services or commodities exceeds $1,000 in any year.

(h) “Relative” means a person who is related to an agency official or employee as father, mother, son, daughter, brother, sister, uncle, aunt, first cousin, nephew, niece, husband, wife, father-in-law, mother-in-law, stepfather, stepmother, stepson, stepdaughter, stepbrother, stepsister, half-brother, half-sister, grandparent, great grandparent, grandchild, great grandchild, step grandparent, step great grandparent, step great grandchild, engaged to be married to the agency official or employee, or who otherwise holds himself or herself out as or is generally known as the person whom the agency official or employee intends to marry or with whom the agency official or employee intends to form a household, or any other natural person having the same legal residence as the agency official or employee.

(i) “Reporting individual” means any employee who is required by Section 112.3145, Fla. Stat., to file a full or limited public disclosure of his or her financial interests; at the Florida Lottery, reporting individuals are executive and senior staff; all district managers; all managers one level below director; in financial management, managers two levels below director; attorneys and purchasing agents.

(3) Lobbyist Expenditures.

No employee shall knowingly accept anything of value from a lobbyist or the principal of a lobbyist, except that an expenditure for the personal benefit of an employee may be accepted from a lobbyist or principal who is a relative of the employee. However,

(a) An employee may attend an event or accept a thing of value that is otherwise prohibited if the employee pays or provides equivalent consideration contemporaneously with or preceding the receipt of the item or attendance at the event.

(b) An employee may attend a community event that is open to all persons.

(c) An employee may accept an item or benefit generally available for free or below the customary rate if the terms or rate is a government rate available to all other similarly-situated government employees or a rate that is available to similarly-situated members of the public by virtue of occupation, affiliation, age, religion, sex or national origin.

(d) A Lottery vendor who is also a principal may make expenditures for reasonable and necessary expenses of Lottery sales conferences and other marketing activities when such payments are made pursuant to a contractual obligation of the vendor to provide marketing support to the Lottery under a contract that was entered pursuant to a competitive procurement process. A Lottery employee’s participation in such a sales conference or other marketing activities shall not be considered to be a violation of this rule.

(4) Gifts and Gift Reporting.

(a) No employee shall knowingly accept any gift, gratuity, favor, entertainment, lodging, transportation, loan or any other thing of monetary value that the employee knows or reasonably should know is valued at over $25.00. There are four limited exceptions:

1. Gifts from relatives, regardless of value.

2. Gifts (including but not limited to birthday and/or anniversary gifts and gifts of hospitality) received from personal friends in the ordinary course of friendship, regardless of value, provided that any such personal friend is not:

a. A lobbyist; or

b. The principal of a lobbyist; or

c. A person having a special pecuniary interest (either individually or through a corporation or organization) in a matter pending before the Lottery; or

d. A person who (either individually or through a corporation or organization) provides goods or services to the Lottery under contract or agreement; or

e. A person who (either individually or through a corporation or organization) is seeking such business with the Lottery.

3. On-site consumption of food and refreshment at receptions and/or other events, provided the employee’s attendance at such event is an appropriate exercise of the employee’s official duties and the food and refreshments at such event are not paid for by a lobbyist or the principal of a lobbyist.

4. Gifts (regardless of value) accepted on behalf of a governmental entity or charitable organization, or for which a public purpose can be shown, provided the Lottery ethics officer has approved such acceptance and the gift is not being made by a lobbyist or the principal of a lobbyist.

The above four limited exceptions do not authorize the acceptance of any gift that is otherwise prohibited by Chapter 112, Fla. Stat.

(b) Employees shall file with the Commission on Ethics on the last day of each calendar quarter, for the previous calendar quarter, a list of permissible gifts valued at more than $25 that were accepted by the employee, unless the gift is from a relative or:

1. Is given by a personal friend for a special occasion (e.g., holidays, birthdays, weddings, showers, anniversaries, graduation, Valentine’s Day, etc.); or

2. Is a meal (whether at a restaurant or at a home) with a friend or lodging at a friend’s home.

(c) Gifts identified in subparagraphs (4)(b)1. and 2. above must be reported if they exceed $100 in value.

(d) Employees shall file with the Commission on Ethics by July 1 of each year an Annual Disclosure of Gifts from Governmental Entities and Direct Support Organizations and Honorarium Event Related Expenses on forms prescribed by the Commission on Ethics.

(5) General Provisions.

(a) Employees shall not solicit or accept anything of value to the employee, including gifts, loans, rewards, promises of future employment, favors, or services based upon any understanding that the official action or judgment of the employee would be influenced thereby.

(b) Employees shall not solicit any gift, regardless of value, if the gift is for the personal benefit of the employee, the employee’s family, or another employee.

(c) Employees shall not use or attempt to use their positions to gain special privileges, benefits or exemptions for themselves or others.

(d) Employees, their spouses and minor children shall not accept any compensation, payment or thing of value when they know or should know that it was given to influence the official action of the employee.

(e) Employees shall not disclose or use information not available to the public and obtained by reason of their public positions for the personal benefit of themselves or others.

(f) Employees shall not solicit or accept an honorarium that is related to their public office or duties. Employees may accept payment of expenses related to an honorarium event unless the payment is from a lobbyist or principal.

(g) Employees acting as purchasing agents shall not directly or indirectly purchase, rent, or lease any realty, goods or services for the Lottery from a business in which the employee or the employee’s spouse or child owns more than a 5% interest.

(h) Employees acting in a private capacity shall not rent, sell or lease realty, goods or services to the Lottery.

(i) Employees shall not accept employment that would create a conflict of interest between their private interests and the performance of their public duties, or accept other employment with any business entity subject to regulation by, or doing business with, the Lottery.

(j) Employees having decisionmaking authority shall not participate in any decision involving a vendor or retailer with whom they have a financial interest.

(k) Employees having decisionmaking authority shall not participate in any decision involving a vendor or retailer with whom they have discussed employment opportunities, without the prior approval of the Secretary.

(l) Purchase of lottery tickets by employees or any relatives residing in their household is strictly prohibited.

(6) Post-Employment Restrictions.

(a) Employees who became employed by the Lottery after July 1, 1989, who have authority over policy or procurement, shall not, for a period of two (2) years after retirement or termination, personally represent another person or entity for compensation before the Department, unless employed by another agency of state government.

(b) Employees shall not, for a period of two (2) years after retirement or termination, hold any employment or contractual relationship with a business entity other than a state agency in connection with any contract for contractual services that was within the employee’s responsibility while employed by the Lottery.

(c) Employees are prohibited, after retirement or termination, from holding any employment or contractual relationship with a business entity other than a state agency in connection with any contract in which the employee participated personally and substantially through decision, approval, disapproval, recommendation, rendering of advice, or investigation while an employee of the Lottery.

(d) Employees shall not, for a period of one (1) year following cessation of employment with the Lottery, represent any vendor or retailer before the Lottery regarding any specific matter in which the employee was involved while employed by the Lottery.

(7) Statement of Financial Interests.

A statement of financial interests shall be submitted on forms prescribed by the Commission on Ethics within thirty (30) days after employment, and by July 1 of each year thereafter, by all employees.

(8) All employees shall receive Code of Ethics training upon appointment and thereafter on an annual basis.

(9) This emergency rule shall replace Emergency Rule 53ER07-9, F.A.C.

Specific Authority 24.105(20), 24.109(1) FS. Law Implemented 24.105(20), 24.105(19)(b), (c), 24.116(2), Chapter 112, Part III, FS. History–New 6-13-07, Replaces 53ER07-9, F.A.C.

THIS RULE TAKES EFFECT UPON BEING FILED WITH THE DEPARTMENT OF STATE UNLESS A LATER TIME AND DATE IS SPECIFIED IN THE RULE.
EFFECTIVE DATE: June 13, 2007