AN ACT IMPLEMENTING THE RECOMMENDATIONS OF THE OFFICE OF STATE ETHICS FOR REVISIONS TO THE STATE CODES OF ETHICS.

Senate
sSB323 / File No. 349 1

General Assembly File No. 349
February Session, 2026 Substitute Senate Bill No. 323

Senate, April 2, 2026

The Committee on Government Oversight reported through
SEN. GADKAR-WILCOX of the 22nd Dist., Chairperson of the
Committee on the part of the Senate, that the substitute bill
ought to pass.

AN ACT IMPLEMENTING THE RECOMMENDATIONS OF THE OFFICE
OF STATE ETHICS FOR REVISIONS TO THE STATE CODES OF
ETHICS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. Subsection (d) of section 1 -80 of the general statutes is 1
repealed and the following is substituted in lieu thereof ( Effective from 2
passage): 3
(d) The board shall elect a chairperson who shall, except as provided 4
in subsection (b) of section 1 -82 and subsection (b) of section 1 -93, 5
preside at meetings of the board and a vice-chairperson to preside in the 6
absence of the chairperson. [Six] Five members of the board shall 7
constitute a quorum. Except as provided in subdivision (3) of subsection 8
(a) of section 1-81, subsections (a) and (b) of section 1-82, subsection (b) 9
of section 1-88, subsection (e) of section 1-92, subsections (a) and (b) of 10
section 1 -93 and subsection (b) of section 1 -99, a majority vote of the 11
members shall be required for action of the board. The chairperson or 12
any three members may call a meeting. 13
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Sec. 2. Subsections (a) and (b) of section 1 -83 of the general statutes 14
are repealed and the following is substituted in lieu thereof ( Effective 15
October 1, 2026): 16
(a) (1) All state -wide elected officers, members of the General 17
Assembly, department heads and their deputies, members or directors 18
of each quasi -public agency, members of the Investment Advisory 19
Council and such other members of the Executive Department and such 20
employees of quasi-public agencies as the Governor shall require, shall 21
file electronically with the Office of State Ethics using the software 22
created by the office, under penalty of false statement, a statement of 23
financial interests for the preceding calendar year on or before the May 24
first next in any year in which they hold such an office or position. If, in 25
any year, May first falls on a weekend or legal holiday, such statement 26
shall be filed not later than the next business day. Any such individual 27
who leaves his or her office or position shall file electronically a 28
statement of financial interests covering that portion of the year during 29
which such individual held his or her office or position. The Office of 30
State Ethics shall notify such individuals of the requirements of this 31
subsection not later than sixty days after their departure from such 32
office or position. Such individuals shall file such statement 33
electronically not later than sixty days after receipt of the notification. 34
(2) Each state agency, department, board and commission shall 35
develop and implement, in cooperation with the Office of State Ethics, 36
an ethics statement as it relates to the mission of the agency, department, 37
board or commission. The executive head of each such agency, 38
department, board or commission shall be directly responsible for the 39
development and enforcement of such ethics statement and shall file a 40
copy of such ethics statement with the Office of State Ethics. 41
(b) (1) The statement of financial interests, except as provided in 42
subdivision (2) of this subsection, shall include the following 43
information for the preceding calendar year in regard to the individual 44
required to file the statement and the individual's spouse and 45
dependent children residing in the individual's household: (A) The 46
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names of all businesses with which associated; (B) all sources of income, 47
including the name of each employer, with a description of the type of 48
income received, in excess of one thousand dollars, without specifying 49
amounts of income; (C) the name of securities in excess of five thousand 50
dollars at fair market value owned by such individual, spouse or 51
dependent children or held in the name of a corporation, partnership or 52
trust for the benefit of such individual, spouse or dependent children; 53
(D) the existence of any known blind trust and the names of the trustees; 54
(E) all real property and its location, whether owned by such individual, 55
spouse or dependent children or held in the name of a corporation, 56
partnership or trust for the benefit of such individual, spouse or 57
dependent children; (F) the names and addresses of creditors to whom 58
the individual, the individual's spouse or dependent children, 59
individually, owed debts of more than ten thousand dollars; (G) any 60
leases or contracts with the state or a quasi -public agency held or 61
entered into by the individual or a business with which he or she was 62
associated; and (H) the name of any of the following that is a partner or 63
owner of, or has a similar business affiliation with, the business included 64
under subparagraph (A) of this subdivision: (i) Any lobbyist, (ii) any 65
person the individual filing the statement knows or has reason to know 66
is doing business with or seeking to do business with the state or is 67
engaged in activities that are directly regulated by the department or 68
agency in which the individual is employed, or (iii) any business with 69
which such lobbyist or person is associated. 70
(2) In the case of securities in excess of five thousand dollars at fair 71
market value held within (A) a retirement savings plan, as described in 72
Section 401 of the Internal Revenue Code of 1986, or any subsequent 73
corresponding internal revenue code of the United States, as amended 74
from time to time, (B) a tax -sheltered annuity retirement plan, as 75
described in Section 403 of said Internal Revenue Code, (C) a payroll 76
deduction individual retirement account plan, as described in Section 77
408 or 408A of said Internal Revenue Code, [(C)] (D) a governmental 78
deferred compensation plan, as described in Section 457 of said Internal 79
Revenue Code, or [(D)] (E) an education savings plan, as described in 80
Section 529 of said Internal Revenue Code, the names of such securities 81
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shall not be required to be disclosed in any statement of financial 82
interests and only the name of such retirement savings plan, tax-83
sheltered annuity retirement plan, individual retirement account plan, 84
deferred compensation plan or education savings plan holding such 85
securities shall be required. 86
Sec. 3. Subsections (a) to (c), inclusive, of section 1 -84 of the 2026 87
supplement to the general statutes are repealed and the following is 88
substituted in lieu thereof (Effective October 1, 2026): 89
(a) No public official or state employee shall, while serving as such, 90
have any financial interest in, or engage in, any business, employment, 91
transaction or professional activity, which is in substantial conflict with 92
the proper discharge of [his] such official's or employee's duties or 93
employment in the public interest and of [his] such official's or 94
employee's responsibilities as prescribed in the laws of this state, as 95
defined in section 1-85, as amended by this act. 96
(b) No public official or state employee shall accept other 97
employment which will either impair [his] such official's or employee's 98
independence of judgment as to [his] such official's or employee's 99
official duties or employment or require [him, or induce him] or induce 100
such official or employee, to disclose confidential information acquired 101
by [him] such official or employee in the course of and by reason of [his] 102
such official's or employee's official duties. 103
(c) No public official or state employee shall wilfully and knowingly 104
disclose, for financial gain, to any other person, confidential information 105
acquired by [him] such official or employee in the course of and by 106
reason of [his] such official's or employee's official duties or 107
employment and no public official or state employee shall use [his] such 108
official's or employee's public office or position or any confidential 109
information received through [his] such official's or employee's holding 110
such public office or position to obtain financial gain for [himself, his] 111
such official or employee , such official's or employee's spouse, child, 112
child's spouse, parent, brother or sister or a business with which he is 113
associated. 114
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Sec. 4. Section 1 -85 of the general statutes is repealed and the 115
following is substituted in lieu thereof (Effective October 1, 2026): 116
(a) (1) For purposes of this section, "business with which the public 117
official or state employee is associated" has the same meaning as 118
"business with which he is associated", as provided in section 1-79. 119
(2) A public official, including an elected state official, or state 120
employee has an interest which is in substantial conflict with the proper 121
discharge of [his] such official's or employee's duties or employment in 122
the public interest and of [his] such official's or employee's 123
responsibilities as prescribed in the laws of this state, if [he] such official 124
or employee has reason to believe or expect that [he, his ] any of the 125
following persons will derive a direct monetary gain or suffer a direct 126
monetary loss, as the case may be, by reason of such official's or 127
employee's official activity: The official or employee, or such official's or 128
employee's spouse, [a] dependent child, or [a business with which he is 129
associated will derive a direct monetary gain or suffer a direct monetary 130
loss, as the case may be, by reason of his official activity ] nonstate 131
employer or the nonstate employer of the official's or employee's 132
spouse, or a business with which the public official or state employee is 133
associated, except as provided in subdivision (3) of this subsection. 134
(3) In the case of an elected state official, such official only has a 135
substantial conflict regarding a matter concerning such elected official's 136
nonstate employer or the nonstate employer of such official's spouse or 137
a business with which the official is associated, if such official has actual 138
knowledge, rather than has reason to believe or expect, that such 139
nonstate employer or business will derive a direct monetary gain or 140
suffer a direct monetary loss, as the case may be, by reason of the official 141
activity of such official. 142
(4) A public official, including an elected state official, or state 143
employee does not have an interest which is in substantial conflict with 144
the proper discharge of [his] such official's or employee's duties in the 145
public interest and of [his] such official's or employee's responsibilities 146
as prescribed by the laws of this state, if any benefit or detriment accrues 147
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to [him, his ] such official or employee, such official's or employee's 148
spouse, [a] dependent child [,] or nonstate employer, the nonstate 149
employer of the official's or employee's spouse or a business with which 150
[he, his spouse or such dependent child ] the public official or state 151
employee is associated as a member of a profession, occupation or 152
group to no greater extent than any other member of such profession, 153
occupation or group. [A] Except as provided in subsection (b) of this 154
section and subdivision (5) of subsection (a) of section 1-86, as amended 155
by this act, a public official, including an elected state official or state 156
employee who has a substantial conflict may not take official action on 157
the matter. 158
(b) If an elected state official has a substantial conflict regarding a 159
matter that concerns a direct monetary gain or direct monetary loss for 160
the nonstate employer of such official or the nonstate employer of such 161
official's spouse, such official shall either excuse himself or herself from 162
the matter or, prior to taking official action on the matter, prepare a 163
written statement, on a form prescribed by the Office of State Ethics and 164
signed under penalty of false statement, describing the matter requiring 165
action, the nature of the conflict and explaining why, despite the 166
conflict, such official is able to vote or otherwise participate fairly, 167
objectively and in the public interest in such matter. Such official shall 168
submit a copy of such statement to the Office of State Ethics and enter a 169
copy of the statement in the journal or minutes of the state agency to 170
which such official has been elected, or, if such agency does not have a 171
journal or minutes, submit the copy to such agency. 172
Sec. 5. Subsection (a) of section 1-86 of the general statutes is repealed 173
and the following is substituted in lieu thereof (Effective October 1, 2026): 174
(a) (1) For purposes of this section, "business with which such public 175
official or employee is associated" has the same meaning as "business 176
with which he is associated", as provided in section 1-79. 177
[(a)] (2) Any public official or state employee, other than an elected 178
state official, who, in the discharge of such official's or employee's 179
official duties, would be required to take an action that would affect a 180
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financial interest of such official or employee, such official's or 181
employee's spouse, parent, brother, sister, child , [or] the spouse of a 182
child, nonstate employer, nonstate employer of the official's or 183
employee's spouse or a business with which such official or employee is 184
associated, other than an interest of a de minimis nature, an interest that 185
is not distinct from that of a substantial segment of the general public or 186
an interest in substantial conflict with the performance of official duties, 187
as defined in section 1-85, as amended by this act, has a potential conflict 188
of interest. 189
[Under such circumstances, such official or employee shall, if ] (3) If 190
such official or employee is a member of a state regulatory agency, such 191
official or employee shall either excuse himself or herself from the 192
matter or, prior to taking official action on the matter, prepare a written 193
statement on a form prescribed by the Office of State Ethics and signed 194
under penalty of false statement, describing the matter requiring action 195
and the nature of the potential conflict and explaining why despite the 196
potential conflict, such official or employee is able to vote [and] or 197
otherwise participate fairly, objectively and in the public interest in such 198
matter. Such public official or state employee shall [deliver] submit a 199
copy of the statement to the Office of State Ethics and enter a copy of the 200
statement in the journal or minutes of the agency or, if such agency does 201
not have a journal or minutes, submit the copy to such agency. 202
(4) If such official or employee is not a member of a state regulatory 203
agency, [such official or employee shall, ] in the case of either a 204
substantial or potential conflict [,] that would affect a financial interest 205
of such official or employee, such official's or employee's spouse, parent, 206
brother, sister, child or the spouse of a child or a business with which 207
such official or employee is associated, such official or employee shall 208
prepare a written statement signed under penalty of false statement 209
describing the matter requiring action and the nature of the conflict and 210
[deliver] submit a copy of the statement to such official's or employee's 211
immediate [superior] supervisor, if any, who shall assign the matter to 212
another employee, or if such official or employee has no immediate 213
[superior] supervisor, such official or employee shall take such steps as 214
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the Office of State Ethics shall prescribe or advise. 215
(5) In the case of either a substantial or potential conflict that would 216
affect a financial interest of the official's or employee's nonstate 217
employer, or the nonstate employer of the official's or employee's 218
spouse, such official or employee shall either (A) excuse himself or 219
herself from the matter, or (B) prior to taking official action on the 220
matter, prepare a written statement on a form prescribed by the Office 221
of State Ethics and signed under penalty of false statement, describing 222
the matter requiring action and the nature of the conflict and either (i) 223
explaining why despite the conflict, such official or employee is able to 224
vote or otherwise participate fairly, objectively and in the public interest 225
in such matter, (ii) stating that the official or employee has been directed 226
to continue work on the matter by such official's or employee's 227
supervisor in the agency after disclosing the substantial or potential 228
conflict to such supervisor, or (iii) both. Such official or employee shall 229
submit a copy of the statement in the journal or minutes of the agency 230
or, if such agency does not have a journal or minutes, submit the copy 231
to such agency. 232
This act shall take effect as follows and shall amend the following
sections:

Section 1 from passage 1-80(d)
Sec. 2 October 1, 2026 1-83(a) and (b)
Sec. 3 October 1, 2026 1-84(a) to (c)
Sec. 4 October 1, 2026 1-85
Sec. 5 October 1, 2026 1-86(a)

Statement of Legislative Commissioners:
In Section 3(b), "his" was changed to " such official's or employee's " for
consistency.

GOS Joint Favorable Subst.

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The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of
the General Assembly, solely for purposes of information, summarization and explanation and do not
represent the intent of the General Assembly or either chamber thereof for any purpose. In general,
fiscal impacts are based upon a variety of informational sources, including the analyst’s professional
knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final
products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note

State Impact:
Agency Affected Fund-Effect FY 27 $ FY 28 $
State Ethics, Off. GF - Potential
Revenue Gain
Minimal Minimal
Note: GF=General Fund

Municipal Impact: None
Explanation
The bill expands existing conflict of interest provisions under the
State Code of Ethics and the types of financial holdings that must be
disclosed by public officials , resulting in a potential minimal revenue
gain to the General Fund from fines associated with these expansions
beginning in FY 27 . It is anticipated that few, if any, additional
individuals will be charged under this bill1.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to the amount of any fines associated
with the bill.

1 Between FY 22 and FY 25, $5,950 was collected in fines for false statements under
CGS Sec. 53a-157b.
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OLR Bill Analysis
sSB 323

AN ACT IMPLEMENTING THE RECOMMENDATIONS OF THE
OFFICE OF STATE ETHICS FOR REVISIONS TO THE STATE
CODES OF ETHICS.

SUMMARY
This bill makes several changes to the state Code of Ethics for Public
Officials (see BACKGROUND). Primarily, it expands what constitutes a
conflict of interest under the code to include actions that a public official
or state employee has reason to believe or expect will result in a direct
monetary gain or loss to his or her non-state employer or spouse’s non-
state employer (§§ 4 & 5). It also reduces (1) the quorum requirement
from six to five for the nine -member Citizen’s Ethics Advisory Board
(the Office of State Ethics’ (OSE) governing body) (§ 1) and (2) amends
filing requirements for certain tax-sheltered annuity retirement plans (§
2).
The code generally places certain limits on how public officials
(including elected state officials) may take official action on a matter for
which they have a conflict of interest (depending on whether it is a
substantial or potential conflict). Under existing law, unchanged by the
bill, a substantial conflict of interest exists if the official or employee has
reason to believe or expect that their actions will result in a direct
monetary gain or loss to themselves or a business with which they ar e
associated.
For elected state officials, the bill also limits the circumstances when
a substantial conflict of interest could arise. It does so by specifying that
in matters concerning a business the official , or their or their spouse’s
non-state employer, is associated with, the official must have actual
knowledge (rather than just reason to believe or expect) that the
business or non -state employer will get a direct monetary gain or loss
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due to their actions.
As under existing law, a substantial conflict does not exist if the
monetary gain or loss to the non -state employer is no greater than the
gain or loss realized by any other member of the same profession,
occupation, or group.
The bill also makes technical and conforming changes.
EFFECTIVE DATE: October 1, 2026 , except that the change to the
board’s quorum requirement is effective upon passage.
§ 2 — STATEMENTS OF FINANCIAL INTERESTS
State law requires all state -wide elected officers, General Assembly
members, department heads and deputies, quasi -public agency
members or directors, Investment Advisory Council members, and
other governor -designated officials to submit statements of financial
interest with OSE.
By law, these statements must include, among other things, the name
of securities with a fair market value over $5,000 owned by the official
or his or her spouse or dependent children, or held in the name of a
corporation, partnership, or trust for their benefit. Under the bill, if these
securities are a tax-sheltered annuity retirement plan under federal tax
law (known as a “403(b) plan”), then only the name of the retirement
savings plan must be disclosed and not the name of the securities.
Current law makes a similar allowance for other savings plans allowed
under federal tax law (for example, 401(k) retirement savings plans and
529 education savings plans).
§§ 4 & 5 — CONFLICTS OF INTEREST
Substantial Conflicts of Interest (§ 4)
Current law prohibits public officials and state employees from
taking official action on a matter for which they have a substantial or
potential conflict of interest. By deeming actions a public official
(including an elected state official) or state employee has reason to
believe will, or expects to, result in a direct monetary gain or loss to their
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or their spouse’s non-state employer as a substantial conflict of interest,
the bill generally prohibits officials and employees from taking these
actions.
For elected state officials under the bill, however, a substantial
conflict of interest only exists if the official has actual knowledge that
either a business the official is associated with, or their or their spouse’s
non-state employer, will get a direct monetary gain or loss due to their
actions. Under the bill, a business the official is associated with generally
includes any business entity in which the official or a member of his or
her immediate family is a director, officer, owner, limited or gener al
partner, beneficiary of a trust, or holder of stock constituting at least 5%
of the total outstanding stock (excluding nonprofit entities for which
they are unpaid directors or officers).
If elected state official s have a substantial conflict of interest due to
their or their spouse’s non-state employer, the bill requires them to
either (1) excuse themselves from the matter or (2) prepare a written
statement on an OSE -provided form under penalty of false statement
before acting on it. The statement must describe the matter requiring
action, the potential conflict, and why, despite the conflict, the official is
able to vote or otherwise participate fairly, objectively, and in the public
interest. The official must submit the statement to OSE and enter a copy
of it into his or her agency’s journal or minutes (or submit it to the
agency if it does not have a journal or minutes). By law, a false statement
is a class A misdemeanor, punishable by up to 364 days in prison, a fine
of up to $2,000, or both (CGS § 53a-157b).
The bill also establishes procedures for these substantial conflicts
involving all other public officials and state employees (see below).
Potential Conflicts of Interest (§ 5)
Under current law, a public official or state employee has a potential
conflict of interest if their official duties require them to take action that
would affect their own financial interest or that of their spouse, parent,
sibling, child, or child’s spou se (other than one of a minimal nature or
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that is not distinct from that of a substantial segment of the general
public). The bill expands a potential conflict of interest to include those
actions involving their or their spouse’s non-state employer.
As under the existing law for addressing potential conflicts of interest
regarding family members, if the official or employee is a member of a
state regulatory agency, he or she must either (1) recuse himself or
herself from the matter or (2) prepare a written statement signed under
penalty of false statement . The bill further requires that this statement
be (1) prepared before taking official action , (2) on an OSE -prepared
form, and (3) submitted to the agency if it does not have a journal or
minutes.
By law, officials and employees who are not members of a regulatory
agency and have potential conflicts regarding family member must
prepare a written statement under penalty of false statement that
describes the matter requiring action and the potential conflict. They
must deliver a copy to (1) their immediate supervisor, who must
reassign the matter, or (2) OSE , if they do not have an immediate
supervisor, to take steps that the office prescribes or advises.
For substantial or potential conflicts involving a covered non-state
employer, all officials and employees other than state elected officials
must generally comply with the procedures established for state
regulatory agency officials and employees described above (regarding
either excusing themselves or preparing a written statement before
taking action) . However, the official ’s or employee’s statement may
additionally indicate that the official’s or employee’s supervisor
directed them to continue working o n the matter after the conflict was
disclosed.
BACKGROUND
“Public Officials” Under the Code of Ethics
Under the state Code of Ethics for Public Officials, a “public official”
is any:
1. state-wide elected officer or officer-elect;
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2. member or member-elect of the General Assembly;
3. person appointed to an office of the state government’s
legislative, judicial, or executive branch by the governor or his
appointee, with or without the legislature’s advice and consent;
4. public member or representative of the teachers ’ unions or state
employees’ unions appointed to the Investment Advisory
Council;
5. person appointed or elected by the General Assembly or by any
member of either legislative chamber;
6. member or director of a quasi-public agency; or
7. spouse of the governor.
Public officials under the code do not include advisory board
members, judges of any court either elected or appointed, or senators or
representatives in Congress (CGS § 1-79(11)).
COMMITTEE ACTION
Government Oversight Committee
Joint Favorable Substitute
Yea 12 Nay 0 (03/17/2026)