Center for the Study of Ethics in the Professions at IIT

THE COMMONWEALTH OF MASSACHUSETTS

PUBLICATION: 412180-10-350-11-80-CR

APPROVED byJohn Manton, Acting State Purchasing Agent

CODE OF CONDUCT FOR THE EMPLOYEES OF THE DIVISION OF REGISTRATION

1. PURPOSE AND SCOPE

All government employees must avoid real and apparent conflicts between their private interests and public duties so that public confidence in the integrity of government is maintained. This basic principle applies with special force and effect to employees of the Division of Registration within the Executive Office of Consumer Affairs (hereinafter "Division"), since the official actions of boards within the Division have a direct bearing on the livelihoods of significant segments of the public and since many members of the boards are drawn from the ranks of the very industries and professions which they regulate.

Section 23 of the state's conflict-of-interest law, General Laws Chapter 268A, (set out in full in Appendix A hereto) prescribes certain standards of conduct for all state employees, violations of which may be punished by appropriate administrative action. This Code, promulgated pursuant to that Section, is an attempt to explain in a clear and direct fashion the prohibitions of Section 23 as they apply to the activities of Division employees and to assure that the business of the various boards within the Division is conducted effectively, objectively, and without improper influence or the appearance thereof. The Code has been prepared with the advice and assistance of the State Ethics Commission, which is responsible for administering and enforcing by the imposition of civil sanctions all provisions of the conflict law, including Section 23.

This Code applies to all members of boards within the Division and all other Division employees, whether serving with or without compensation, on a full, regular, part-time, intermittent, or consultant basis. (Board members and other employees are referred to collectively herein as "Division employees" or "employees of the Division".) The Code does not attempt to reiterate the provisions of the conflict-of-interest law other than Section 23. Division employees should familiarize themselves with that and other state laws which regulate their activities. Questions regarding this Code may be directed to the Director of the Division of Registration or the General Counsel of the Executive Office of Consumer Affairs. Employees may also submit written requests for advisory opinions as to their obligations under the conflict law to the State Ethics Commission.
This Code does not constitute a comprehensive discussion of all circumstances presenting potential problems under Section 23 of Chapter 268A. The absence of a provision covering a specific offense does not mean that such offense is condoned or permissible or would not result in corrective or disciplinary action. Division employees shall avoid any action, whether or not specifically prohibited by this Code which might result in, or create the appearance of,

(1) using a public position for private gain;

(2) giving preferential treatment to any person or entity;

(3) losing complete independence or impartiality;

(4) making an official decision outside official channels; or

(5) affecting adversely the confidence of the public in the integrity of the Division or any board therein.

2. SOLICITATION AND RECEIPT OF GIFTS

a. No Division employee shall, except as provided in paragraph (c) of this section, directly or indirectly solicit or accept any gift from a person or entity which:

(1) has, or is seeking to obtain, contractual or other business or financial relations with the Division or with a board of which the employee is a member or for which the employee performs services;

(2) conducts operations or activities that are regulated by a board of which the employee is a member or for which the employee performs services;

(3) has interests that may be substantially affected by the performance or non-performance of the employee's official duties;

(4) is a registrant with respect to matters within the jurisdiction of a board-of which the employee is a member or for which the employee performs services; or

(5) is an association or-organization having as I its members persons or entities which fall within categories (2) or (4) above.

b. The term "gift" as used in this section means any payment, gratuity, favor, entertainment, subscription, advance, or anything else of value. It includes loans, the use of credit cards, travel and other reimbursements, tickets to any events, meals, holiday gifts, and goods and services supplied at less than fair market value (unless purchased in the ordinary course of business).

C. The prohibition in paragraph (a) of this section does not apply to any of the following:

(1) Acceptance of gifts from an entity of which the Division employee is a director, officer, trustee, partner, or employee or in which he or she has a financial interest.

(2) Acceptance of gifts that are explained by obvious family or personal relationships (such as those between the parents, children, or spouse of the employee and the employee) when the circumstances make it clear that it is those relationships, rather than the business of the persons concerned,, which are the motivating factors.

(3) Acceptance of food and refreshments of nominal value on infrequent occasions in the ordinary course of a luncheon or dinner meeting or other meeting or on an inspection tour where the employee is properly in attendance.

(4) Acceptance of unsolicited advertising or promotional material, such as pens, pencils, notepads, calendars, and other items of nominal intrinsic value .

(5) Acceptance of awards of nominal value for meritorious public contributions or achievements given by a charitable, religious, professional, industrial, social, fraternal, nonprofit, educational, recreational, public service, or civic organization.

d. Whenever a member of a Division employee's family solicits or accepts a gift which the employee is prohibited from soliciting or accepting under paragraph (a) of this section, the employee shall, within 7 days of learning of such a transaction, inform the Director of the Division that the transaction has occurred. Such disclosure shall be in writing and shall identify the source of the gift or the individual solicited. if it appears to the Director that the employee's family member developed a relationship with the source independent of the employee's relationship with the Division or any board therein, then solicitation or acceptance of the gift by the family member does not violate this section. If, however, that does not appear to be the case, or if the employee makes no disclosure to the Director, solicitation or acceptance of the gift by the family member violates this section. The employee must make every reasonable effort to see that any gift received by a family member in violation of this section is returned in accordance with paragraph (e) below and must certify to the Director that he or she has made such efforts.

e. Any gift received in violation of paragraph (a) or (d) of this section shall be returned to the donor. If return is not possible, the item(s) shall be donated to a public or charitable institution. A report of such action, explaining why return was impossible, shall be made to the Director of the Division. When possible, the donor shall also be informed of this action.

3. COERCION

Division employees shall not use their positions with the Division or any boards therein in any way to coerce, or give the appearance of coercing, any person to provide financial benefit to themselves or others.

4. MISUSE OF AUTHORITY

Division employees shall not use, or give the appearance of using, their official positions to enhance their own private financial interests or those of persons with whom they have family, personal, business, or financial ties. Nor shall Division employees use, or give the appearance of using, their official positions to harm persons or entities with whom they, or persons with whom they have family, personal, business, or financial ties, are in competition in private business or professional activities. For example, it is a violation of this section for a board member to withhold approval of a product or to initiate or authorize disciplinary action for the purpose of harming a person or entity which is in competition with that member's private business.
5. APPEARANCES OF IMPROPRIETY

Division employees shall exercise care in their private and personal financial activities to avoid any appearance:

(a) that their personal actions, recommendations, opinions, or remarks are official points of view or that activities or products are officially endorsed or approved if they in fact are not;

(b) that they or other Division employees will give preferential treatment to any individual or entity or that Division employees have not exercised complete independence and impartiality in carrying out their official responsibilities; or

(c) that they are acting on the basis of information obtained in the course of performing their official duties.

6. CONFIDENTIAL INFORMATION

Division employees shall maintain the confidentiality of information obtained by them in the course of thei.r employment. They shall not disclose information not made available to the general public or use any such information to obtain, directly or indirectly, financial or other benefits for themselves, members of their families, their business associates or friends. An indirect financial benefit, within the meaning of this provision, includes a benefit to a business or other entity of which the Division employee is an officer, director, trustee, partner or employee or in which he or she has a financial interest. In instances where members of the public have a legal right to receive confidential information, Division employees must adhere to the mechanisms by which such information is nornally, legally disseminated.

7. PROFESSIONAL AND INDUSTRIAL ASSOCIATIONS

a. No Division employee shall serve as an officer, whether on a compensated or uncompensated basis, of a professional or industrial association whose members are regulated and/or licensed by a board of which the employee is a me mber or for which the employee performs services.
Nor shall any Division employee serve, on a compensated or uncompensated basis, as a representative of any such professional or industrial association in its dealings with the Division, any board within the Division, or any other state agency.

b. Any Division employee who is, as of the effective date of this Code, an officer of a professional or industrial association whose members are regulated and/or licensed by a board of which the employee is a member or for which the employee performs services shall have a period of 60 days from that effective date to resign from the office.

c. Nothing contained in this section shall prevent a Division employee from serving as a member of a professional or industrial association, even if the members thereof are regulated and/or licensed by a board of which the employee is a member or for which the employee performs services. A Division employee's official title or connection with the Division or any board therein shall not appear, however, in any written material of the association or be presented during the course of any association activity in such a manner as to imply that the employee is acting in his/her official capacity.

8. STATE CALLING CARDS AND STATIONERY

Division employees shall not use state business cards or stationery which contain their private business or home addresses or telephone numbers.

9. STATE FACILITIES

Division employees shall not directly or indirectly use or allow the use of state property of any kind for other than officially approved activities.

10. MEETING LOCATIONS

Board members within the Division having the authority to hold meetings in such places as they may determine shall make such determinations on the basis of considerations reasonably related to the work of the boards and to the needs of those segments of the public which they regulate and/or license. It is a misuse of board members' official positions to make such determinations as to meeting locations on any other basis.

11. PER DIEM COMPENSATION

Division employees who are compensated on a per them basis for any official work performed shall take care to consolidate their hours of work to the greatest extent possible so as not to take improper advantage of their right to receive compensation for each day or part thereof on which they perform services. In other words, if an employee entitled to per diem compensation can reasonably complete in one day several items of official work, he or she should do so rather than spread that work out over more days. In particular, members of boards within the Division who are entitled to per diem compensation for work in addition to attendance at board meetings should, as much as is reasonably possible, perform other board work on the days of board meetings. In no event shall Division employees request per diem compensation for days on which they perform no services for the Division or a board therein.

12. TRAVEL AND MEALS

a. No Division employee shall travel out of state at public expense except in accordance with rules and regulations promulgated by the Cor,=issioner of Administration for the expenditure of funds for out-of-state travel, and except with the prior written approval of his or her appointing authority and the Secretary of the Executive office of Consumer Affairs.

b. All Division employees, including members of boards within the Division, shall be subject to any and all rules and regulations of the Division of Personnel governing travel by state employees (currently Parts I through V of the Travel Rules and Regulations contained in the "Rules and Regulations Governing Vacation Leave, Sick Leave, Travel, Overtime, Military Leave, Court Leave, Other Leave, Charges to State Personnel, Accident Prevention," ["Red Book"] promulgated by the Director of Personnel pursuant to Mass. G.L. c. 7, 5 28), notwithstanding the exemption in the "Red Book" for board members; p3!ovided, however, that the following limits shall apply to reimbursement for meal expenses, including tips, incurred by board members while engaged in travel, whether inside or outside the Commonwealth:

Breakfast .......................$2.00
Lunch (midday meal)..............$3.00
Supper (evening meal) ...........$6.00

c. members of boards within the Division who have the authority, singly or with others, to permit intra-state travel by themselves and/or other board members or Division employees shall exercise that authority such that no more than the minimum number of persons necessary to achieve the intended objective(s) of the travel receive such permission.

d. In no event shall Division employees request reimbursements for expenses not actually incurred or in an amount greater than that actually expended.

13. ADMINISTRATION OF THE CODE

a. Reporting Violations

A Division employee who has knowledge of any violation of this Code should report such violation to the Director of the Division. If it is inappropriate to report such violation to the Director, it should be reported to the Secretary of the Executive Office of Consumer Affairs and/or to the State Ethics Commission.

b. Sanctions

In addition to the sanctions which the State Ethics Commission may impose pursuant to Mass. G.L. c. 268B and to the authority of the Governor to remove board members for cause, any violation of sections 1 through 12 of this Code may subject a Division employee to appropriate disciplinary action by the Director of the Division of Registration and/or the Secretary of the Executive Office of Consumer Affairs. Such disciplinary action shall be taken in accordance with all applicable laws and regulations.

c. Notification to Employees

A copy of this Code and a copy of any revisions thereto shall be provided by the Director of the Division to:

(1) each Division employee, at the time of issuance;

(2) each new Division employee upon commencement of employment;

(3) industrial and professional associations whose members are regulated and/or licensed by any board within the Division.

Each Division employee shall, after receiving a copy of this Code, certify to the Director of the Division on a form provided by the Director that he or she has read the Code.

Appendix A

Section 23 Standards

Mass G.L. c. 268A, 5 23 reads as follows:

S 23 - Supplemental provisions; standards of conduct

In addition to the other provisions of this chapter, and in supplement thereto, the following are established as standards of conduct for all state, county and municipal employees for the violation of which appropriate administrative action as is warranted may be taken by the appropriate constitutional officer or by the head of a state, county or municipal agency. No officer or employee of a state, county or municipal agency shall:

(a) accept other employment which will impair his independence of judgment in the exercise of his official duties.

(b) accept employment or engage in any business or professional activity which will require him to disclose confidential information which he has gained by reason of his official position or
authority.

(c) improperly disclose confidential information acquired by him in the course of his official duties nor use such information to further his personal interests.

(d) use or attempt to use his official position to secure unwarranted privileges or exemptions fo himself or others.

(e) by his conduct give reasonable basis for the impression that any person can improperly influence him or unduly enjoy his favor in the per-forniance of his official duties, or that he is unduly affected by the kinship, rank, position or influence of any party or person.

(f) pursue a course of conduct which will raise suspicion among the public that he is likely to be engaged in acts that are in violation of his trust.