Current through Register Vol. 49, No. 9, September, 2024
1081.0.0 ETHICAL STANDARDS FOR DHHS EMPLOYEES
1081.1.0
Employee Conduct
Public employment is a public trust. DHHS employees must not
only avoid any potential conflict of interest, but also must avoid any
appearance of impropriety. DHHS employees must conduct themselves so as to
foster public confidence in the integrity of state government.
1081.2.0
Definitions
1081.2.1
Close
personal relationship - The relationship between spouses, between
any persons sharing a household, and any of the following relationships,
including step and inlaw relationships: child, parent, sibling, grandparent,
grandchild, half-sibling, cousin, niece and nephew.
1081.2.2
Confidential information
- Information exempt from disclosure under the Arkansas Freedom of
Information Act.
1081.2.3
Conflict of interest - All prohibited activities as
defined in Section 1081.3.0 except the prohibited activities defined in
1081.2.11-1081.2.13 of that section.
1081.2.4
DHHS
employee - Any full or part time regular, emergency, or extra help
salaried employee of DHHS, and any nonsalaried individual performing personal
services for DHHS.
1081.2.5
Earned income - Anything of value received in return
for services or labor.
1081.2.6
Financial disclosure statement - A statement required
by Title 21, Chapter 8, Subchapter 2, of the Arkansas Code.
1081.2.7
Financial
Interest:A. Notes, stock
certificates, bonds, contracts, or other evidence of, or actual ownership
interest in, any firm, corporation, or enterprise. The term does not mean
demand deposits, time deposits, or other types of deposits that do not vest an
ownership interest in any firm, corporation, or enterprise.
B. Ownership of any interest or involvement
in any relationship from which, or as a result of which, a person within the
past year has received, or is presently or in the future entitled to receive,
more than $1,000 per year, or its equivalent.
C. Ownership or interest in any
business.
D. Holding a position in
a business such as officer, director, trustee, partner, employee, or the like,
or holding any management position.
1081.2.8
Financial
relationship - A financial interest held by the employee or a
person with whom the employee has a close personal relationship.
1081.2.9
Gift- Any
payment, entertainment, advance, services, or anything valued at over $100.
1081.2.10
Household - A place of residence.
1081.2.11
Procurement - The buying, purchasing, renting, leasing
or otherwise obtaining of any commodities or services. It also includes all
functions that pertain to the obtaining of any public procurement, including
description of requirements, selection and solicitation of sources, preparation
and award of contract, and all phases of contract administration.
1081.2.12
Regulatory
agency - Any state board, commission, department or officer
authorized by law to make rules or to adjudicate contested cases except those
in the legislative or judicial branches.
1081.2.13
Supervision - The authority, whether or not exercised,
to do one or more of the following on a full time, part time, interim, or
acting basis:
(1) hire, terminate, or promote
the employee or the employee's rating supervisor,
(2) set compensation,
(3) evaluate performance,
(4) impose discipline,
(5) review disciplinary actions,
(6) approve leave requests, or
(7) approve travel reimbursement
requests.
1081.3.0
Prohibited Activities
No DHHS employee may:
A. Use his or her position to secure special
privilege or exemption, either for personal gain or for the benefit of any
person with whom the employee or a person in close personal relationship with
the employee has a financial relationship. This includes the approval of an
account which draws or authorizes the drawing of a warrant or order to
compensate any of the above.
B.
Accept employment or engage in any activity while serving as a DHHS employee
which might reasonably be expected to require or induce the employee to
disclose any confidential information.
C. Disclose confidential information or use
confidential information for the gain or benefit of the employee or a person in
close personal relationship to the employee.
D. Receive a grant from, or contract with,
DHHS without the express written approval of the DHHS Director or his/her
designee.
E. Receive a license
issued by DHHS other than a long term care facility administrator license or
other license similarly conditioned on objective testing and scoring.
F. Participate in any proceeding or
application, request for ruling or other determination; claim or controversy;
or other particular matter relating to any DHHS contract, subcontract,
solicitation or proposal in which, to the employee's knowledge, the employee or
a person in close personal relationship to the employee is making or has made
arrangements for prospective employment, is negotiating, or has a financial
interest, whether directly or through a business or close personal
relationship.
G. Be in the
employment of any party contracting with DHHS, while involved in
procurement.
H. Participate on any
public or private board, commission, advisory committee or governing body which
has applied for or is receiving any financial or administrative assistance from
DHHS, exclusive of reimbursable expenses for meals, lodging and travel/mileage
commensurate with attendance requirements, or is subject to DHHS regulation,
certification or licensure. No DHHS employee may participate in any discussion
or proceedings of any public or private board, commission, advisory committee
or governing body relative to any future application to receive any financial
or administrative assistance, certification, or licensure from DHHS. Attendance
and participation at meetings solely in the course and scope of DHHS employment
for the purpose of providing information is not prohibited.
The DHHS Director or his/her designee may make an exception
when the employee's participation does not present a conflict of interest. All
employees must report, in writing, to their division director or the division
director's designee any involvement on any board, commission, advisory
committee or governing body that receives, or is eligible to receive, financial
assistance or administrative assistance from DHHS. If there is a conflict, or
the appearance of a conflict, the employee must disclose to the board the
information which may be a conflict or create the appearance of a conflict and
must not participate in the matter until full disclosure has been made.
(Consistent with Ark. Code Ann. §
19-11-715, however, the statute is
not presently applicable to professional and consultant services
contracts.)
I. Fail to
disclose to the DHHS Director or his/her designee and the Department of Finance
and Administration (DFA) Director any benefits received from any state contract
with a business or organization in which the employee or a person in close
personal relationship to the employee has a financial interest.
J. Fail to disclose the existence of a blind
trust as required in 1081.5.0.
K.
Be employed in a supervisory relationship to or subject to the same supervisor
as any person with whom the employee has a financial or close personal
relationship.
L. Supervise or be
supervised by any person with whom the employee has a close personal
relationship.
M. Fail to notify the
employee's division director or the division director's designee if the
employee becomes the supervisor of, or subject to the supervision of, a person
with whom the employee has a close personal relationship or is employed in a
supervisory relationship to or subject to the same supervisor as any person
with whom the employee has a financial or close personal
relationship.
N. Receive a gift for
the performance of the duties and responsibilities of their office or position.
(An employee is not prohibited from receiving an item conferred to show
appreciation for the employee's job performance so long as the value of the
item does not exceed $100.)
1081.4.0
Financial Disclosure
Statements
1081.4.1 Persons required to
file:
A. DHHS employees who are employed on a
regular salary basis shall be required to disclose each source of income in
excess of $500 earned during any calendar year from governmental sources other
than the employee's regular salary from employment, and any income exceeding
$1,500 earned during any calendar year from employment or from professional or
consultant services rendered for any public agency.
B. DHHS employees serving by appointment on
any state, county or local board, agency, commission, or department or similar
entity who are authorized or charged by law with the exercise of regulatory
authority through rule-making or adjudication or are authorized to receive or
disperse state or federal funds shall file.
1081.4.2 Time and manner of filing:
A. Statements must be filed with the
Secretary of State before January 31 of each year.
B. The statements shall be filed on forms
provided by the Secretary of State.
C. On or before the last day of December of
each year, division directors or their designees will notify all employees and
members of boards or commissions attached to their divisions/offices of the
fact that all Financial Disclosure
Statements must be filed with the Secretary of State on or
before the last day of January of each year.
1081.5.0
Blind
Trusts
An employee shall not be deemed to have a conflict of interest
regarding matters pertaining to financial interests when the employee or any
person with whom the employee has a close personal relationship holds that
financial interest in a blind trust. The existence of any such blind trust must
be disclosed to the DFA Director.
1081.6.0
Disqualification Statements
and Waivers
Upon discovery of a possible conflict of interest, an employee
shall promptly file a written statement of disqualification with the DHHS
Director or his/her designee and the DFA Director, and shall withdraw from
further participation in the transaction or proceeding involved. In reference
to conflict of interests governed by Ark. Code Ann. §19-11 -70 et
seq., upon written request by an employee, the DFA Director may grant
an employee a written waiver from this provision and may grant permission to
proceed with the transaction or proceeding to the extent and upon such
conditions as may be specified. Such waiver may be granted when the interest of
the state so requires or when the ethical conflict is insubstantial or remote.
For an employee to proceed on all other conflict of interests, a written waiver
must be obtained from the DFJJiS Director or his/her designee. Such waiver may
be granted when the interest of the state so requires or when the ethical
conflict is insubstantial or remote.
1081.7.0
Restrictions on Former
Employees in Matters Connected with their Former Duties
1081.7.1 Wiithin the limitations specified in
Ark Code Ann. §
19-11-709, where the state is a
party, a former employee shall be disqualified from acting as a principal or
agent for anyone other than the state in connection with any judicial or other
proceeding, application, request for ruling, contract, claim, charge or
controversy in which the employee participated personally, or in matters which
were within the employee's official responsibility.
1081.7.2 A former employee shall not sell or
attempt to sell commodities or services to the state for one year following the
date employment closed, unless the former employee's last annual salary did not
exceed $10,500.
1081.7.3
Disqualification of Partners:
A.
When partner is a state employee: Where the state is a
party, a partner of an employee shall not knowingly act as an agent or
principal for anyone other than the state in connection with any judicial or
other proceeding, application, request for a ruling, or other determination,
contract, claim, change, or controversy in which the employee either
participates personally or which is the subject of the employee's official
responsibility.
B.
When
partner is a former state employee: Where the state is a party, a
partner of a former employee shall not knowingly act as an agent or principal
for anyone other than the state where such former employee is barred under this
section.
NOTE: Nothing in this section is intended to
preclude a former employee from accepting employment with private industry
solely because the former employee's employer is a contractor with the state,
or to preclude an employee, a former employee, or a partner of an employee or
former employee from filing an action as a taxpayer for alleged violation of
Ark Code Ann. §
19-11-702
et
seq.
1081.8.0
Civil and Administrative
Remedies Against Employees and Non-Employees
Who Breach Ethical Standards
Employees violating ethical standards may be subject to one or
more of the following:
A. Criminal
penalties
B. DHHS discipline up to
and including termination
C. One or
more of the following imposed by the DFA Director:
1. Oral or written warnings and
reprimands
2. Forfeiture of pay
without suspension
3. Suspension
with or without pay for specified periods of time
4. Termination of transactions
5. Suspension or debarment from being a
contractor or subcontractor under any state contract
6. Termination of employment
1081.9.0
Recovery
of Values Transferred or Received in Breach of Ethical Standards by Employees
and Non-Employees
The value of anything received by an employee or non-employee
in breach of the ethical standards shall be recoverable by the
state.
1081.10.0
Prohibited Personal Relationships
1081.10.1 All j ob applicants will be asked
whether they have a close personal relationship with any person presently
employed who would be in a supervisory relationship to, or subject to the same
supervisor as the applicant should the applicant be selected. Those answering
"yes" will not be hired for that position. Any employee discovered to have
falsified his/her application will be terminated in accordance with DHHS Policy
1085, Minimum Conduct Standards for DHHS Employees, 1085.1.1.6.
1081.10.2 Upon notification that employees
with a close personal relationship are supervisor and subordinate, the division
director or the division director's designee will not fill any positions which
are in (1) an affected employees' classification(s) or (2) an affected
employees' work unit(s) until the conflict of interest is resolved according to
the procedure set out in 1081.10.3 below.
1081.10.3 Affected employees may elect to
choose between themselves who will be transferred. This request must be in
writing and approved by both employees and the division director or the
division director's designee. This transfer will be accomplished by offering
the employee to be transferred any existing or the first available vacancy
occurring within 90 working days in the same classification and grade. If the
employees fail to submit a j oint written request for transfer within ten
working days of notification of a conflict of interest, the employee with the
least tenure (total years in a job classification) will be designated for
transfer by the division director or the division director's designee. If the
employee refuses an offer of transfer to a position in the same grade and
classification during the time frame provided, the employee will be terminated
without prejudice. If a vacancy in the same classification and grade does not
become available during the 90 working days from the employee's notification,
the employee will be terminated without prejudice.
1081.11.0
Initiating
Section/Department Contact
Office of Finance and Administration Human Resources/Support
Services Section Policy and Administrative Program Management P.O. Box 1437
-Slot W403 Little Rock, AR 72203-1437 Phone: 501/682-6760
Replacement Notation: This rule replaces DHS
Policy 1081 dated April 15, 1999.
