Bill Text: DE SB299 | 2023-2024 | 152nd General Assembly | Draft
Bill Title: An Act To Amend Title 29 Of The Delaware Code Relating To Public Officers And Employees.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2024-09-30 - Signed by Governor [SB299 Detail]
Download: Delaware-2023-SB299-Draft.html
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SPONSOR: |
Sen. Hoffner |
DELAWARE STATE SENATE
152nd GENERAL ASSEMBLY
SENATE BILL NO. 299
AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO PUBLIC OFFICERS AND EMPLOYEES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend § 5805, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 5805. Prohibitions relating to conflicts of interest.
(a) Restrictions on exercise of official authority . — (1) No state employee, state officer or honorary state official
may participate on behalf of the State in the review or disposition of any matter pending before the State in which the state employee, state officer or honorary state official has a personal or private interest, provided, that upon request from any person with official responsibility with respect to the matter, any such person who has such a personal or private interest may nevertheless respond to questions concerning any such matter. A personal or private interest in a matter is an interest which tends to impair a person’s independence of judgment in the performance of the person’s duties with respect to that matter.
(2) A person has an interest which tends to impair the person’s independence of judgment in the performance of the person’s duties with respect to any matter when:
a. Any action or inaction with respect to the matter would result in a financial benefit or detriment to accrue to the person or a close relative to a greater extent than such benefit or detriment would accrue to others who are members of the same class or group of persons; or
b. The person or a close relative has a financial interest in a private enterprise which enterprise or interest would be affected by any action or inaction on a matter to a lesser or greater extent than like enterprises or other interests in the same enterprise.
(3) In any case where a person has a statutory responsibility with respect to action or nonaction on any matter where the person has a personal or private interest and there is no provision for the delegation of such responsibility to another person, the person may exercise responsibility with respect to such matter, provided, that promptly after becoming aware of such conflict of interest, the person files a written statement with the Commission fully disclosing the personal or private interest and explaining why it is not possible to delegate responsibility for the matter to another person.
(b) Restrictions on representing another’s interest before the State. — (1) No state employee, state officer or
honorary state official may represent or otherwise assist any private enterprise with respect to any matter before the state agency with which the employee, officer or official is associated by employment or appointment.
(2) No state officer may represent or otherwise assist any private enterprise with respect to any matter before the State.
(3) This subsection shall not preclude any state employee, state officer or honorary state official from appearing before the State or otherwise assisting any private enterprise with respect to any matter in the exercise of such person’s official duties.
(c) Restrictions on contracting with the State. — No state employee, no state officer and no private enterprise in
which a state employee or state officer has a legal or equitable ownership of more than 10% (more than 1% in the case of a corporation whose stock is regularly traded on an established securities market) shall enter into any contract with the State (other than an employment contract) unless such contract was made or let after public notice and competitive bidding. Such notice and bidding requirements shall not apply to contracts not involving more than $2,000 $5,000 per year or less if the terms of such contract reflect arms’ length negotiations. For the period of July 1, 1990, through June 30, 1991, nothing in this subsection shall prohibit a state employee, a state officer, or a private enterprise in which a state employee or a state officer has a legal or equitable ownership of more than 10% (more than 1% in the case of a corporation whose stock is regularly traded on an established securities market) from contracting with a public school district and/or the State Board of Education for the transportation of school children without public notice and competitive bidding as is permitted under § 6904(c) of this title.
(d) Post-employment restrictions . — No person who has served as a state employee, state officer or honorary state
official shall represent or otherwise assist any private enterprise on any matter involving the State, for a period of 2 years after termination of employment or appointed status with the State, if the person gave an opinion, conducted an investigation or otherwise was directly and materially responsible for such matter in the course of official duties as a state employee, officer or official. Nor shall any former state employee, state officer or honorary state official disclose confidential information gained by reason of public position nor shall the person otherwise use such information for personal gain or benefit.
(e) Unauthorized disclosure of confidential information . — No person shall disclose any information required to be
maintained confidential by the Commission under § 5806(d), § 5807(b) or (d), or § 5810(h) of this title.
(f) Criminal sanctions. — (1) Any person who knowingly or wilfully violates any provision of this section shall be
guilty of a misdemeanor, punishable for each such violation by imprisonment of not more than 1 year and by a fine not to exceed $10,000.
(2) A prosecution for a violation of this section shall be subject to the time limitations of § 205 of Title 11.
(3) The Superior Court shall have exclusive jurisdiction over prosecution for all criminal violations of this section.
(g) Contracts voidable by court action. — In addition to any other penalty provided by law, any contract entered
into by any state agency in violation of this subchapter shall be voidable by the state agency; provided, that in determining whether any court action should be taken to void such a contract pursuant to this subsection, the state agency shall consider the interests of innocent 3rd parties who may be damaged thereby. Any court action to void any transaction must be initiated within 30 days after the state agency involved has, or should have, knowledge of such violation.
(h) Exceptions for transportation contracts with school districts . — Except for transportation supervisors for any
school district within this State, nothing in this section shall prohibit an employee or the employee’s spouse or children (natural or adopted) from contracting for the transportation of school children. Such transportation contracts may be entered into by an employee or the employee’s spouse or children without public notice and competitive bidding as is provided in § 6904(c) of this title.
SYNOPSIS
Under Title 29, Section 5805, no state employee, no state officer, and no private enterprise in which a state employee or state officer has a legal or equitable ownership of more than 10% (more than 1% in the case of a corporation whose stock is regularly traded on an established securities market) shall enter into any contract with the State (other than an employment contract) unless such contract was made or let after public notice and competitive bidding. However, the notice and bidding requirements do not apply to contracts involving $2,000 per year or less, provided that the terms of such contract reflect arms’ length negotiations. The exemption for contracts involving $2,000 per year or less went into effect in 1991 and has not been raised since. This act raises the exemption from $2,000 to $5,000 to take into account the effects of inflation. This act also deletes language in Section 5805(c) that is out-of-date.
Author: Senator Hoffner
