Ethics Reform White Paper

Background
Public officials in North Dakota have a duty to run their campaigns and perform their jobs with the highest ethical standards. North Dakotans deserve to be able to trust their appointed and elected government officials to have their constituents best interests in mind. Further, there is an expectation that public officials will conduct the work on behalf of North Dakota with fairness and transparency. Currently, North Dakota is falling far short of the rest of the nation with regard to ethical safeguards against abuses of power. In a recent investigation by the Center for Public Integrity, North Dakota received an F on its Corruption Risk Report Card.1 The study assessed transparency, accountability, and anti-corruption mechanisms in all 50 states. North Dakotas dismal ranking landed it 43 out of 50. While North Dakota has long relied on an everybody knows everybody honor system, the changing times leave open the possibility of exploitation. Many states New Jersey, Illinois and Louisiana for example wait for large-scale scandals to erupt before taking reform measures. North Dakota has the opportunity to lead by example by proactively enacting measures that prevent bad actors from taking advantage of the system. As a few recent events have shown, North Dakota is not immune to the perils of ethical misdeeds: In February, 2011 the Fargo Forum reported that officials at North Dakota Workforce Safety and Insurance had been accused of deleting workers records in order to avoid litigation by injured workers.2 While the alleged conduct of these workers may not have been illegal it was certainly unethical and contrary to the spirit and goals of WSI. To date, the Governor has still taken no action against the officials in question. Another example comes as a result of the booming oil industry. North Dakotas Governor serves as the chair of the Industrial Commission and the commissions Oil and Gas Division is the regulating body in charge of issuing drilling permits to oil companies. These permits can be worth millions. Many companies have attempted to better their odds by making large campaign contributions to influential officials. In some cases the contributions are up to ten times the maximum allowable in federal elections. This environment creates a conflict of interest, where elected officials are beholden to the incoming oil companies, not North Dakotans. State Integrity Investigation; North Dakota Corruption Risk Report Card http://www.stateintegrity.org/north_dakota 2 WSI worker claims deletions broke law. Fargo Forum [Fargo, ND] Feb. 26, 2012
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North Dakota has no limits on the amount an individual can contribute, which allows those seeking to influence public policy to donate enormous sums of money to ensure their friends are elected. This phenomenon is documented in a study conducted by the Fargo Forum.3 The Forum found that the states Republicans benefit more from oil and gas contributions than Democrats. It specifically highlighted Kevin Cramer, Jack Dalrymple and Rick Berg as being the states largest recipients of oil and gas contributions. Overall, pursuing effective and fair ethics reforms will only become more necessary in North Dakota. People need to be able to trust in those they elect to represent them and those seeking office should have the tools to ensure fair play all around.

The Taylor/Chaffee Plan

Ethics reforms need to address accountability and transparency on two fronts: (1) provide meaningful restrictions against undue influence, bribery, and corruption by governing bodies and officials and (2) develop enforceable guidelines on campaign finance activity. With those objectives in mind, we are pursuing a plan that will protect North Dakotans from ethical wrongdoing by:

Forming an Independent Ethics Commission

As Governor, I would call for the formation of an independent ethics commission. This commission would be responsible for monitoring the activities of state government officials and agencies and investigating complaints of anyone found engaging in unethical behavior. Forty other states have mandated this level of transparency and its time North Dakota stepped up to the plate.

Commitment to Prosecuting Bad Actors

Unlike Jack Dalrymple, I will not let cries of injustice go unanswered. Under my leadership, all complaints of impropriety will be investigated. North Dakotans will know that with Ryan Taylor as governor that any breach of the public trust will be acted on swiftly.

Reasonable Abstention from Campaign Contributions

As Governor, I will not accept any campaign contributions from officers of companies who have matters of huge financial consequence before the Industrial Commission. This is to ensure that I, and my administration, remain impartial when making the decisions that affect North Dakotans.

Increase Campaign Finance Transparency

Currently, North Dakotas campaign finance regulations are far below the federal standard and require almost no financial reporting. To limit undue influence from any one special interest, as Governor I will support legislation to set a limit on Daum, Kristen. Review shows states Republicans benefiting more from oil and gas contributions than Democrats. Fargo Forum [Fargo, ND] July 15, 2012
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individual and political action committee (PAC) campaign contributions to $1000 and require that campaign contribution and expenditure disclosures be filed quarterly. I believe that those seeking public office should be held accountable for the donations they accept and should not be beholden to wealthy special interests.

Establish an Independent Campaign Audit Committee

I believe that better transparency measures will set the stage for a more open and fair campaign environment in North Dakota but when problems arise there should be an independent committee in place to investigate discrepancies. This committee would be divorced from the Secretary of States office with the sole responsibility of investigating campaign contributions and candidate financial disclosures.

More Disclosure, More Independent Verification

I believe that better transparency measures will set the stage for a more open and fair campaign environment in North Dakota and when problems arise there should be an independent audit mechanism in place to investigate discrepancies. North Dakota should require more detailed disclosures of financial interests and investments of elected office holders, and political candidate campaigns should report their expenditures to complete the money trail. When questions arise, audits should be done free of political influence and partisan favoritism.

Pursue Legal Restrictions on the Use of Campaign Contributions for Personal Gain
Right now, North Dakota has no legal restriction on the use of campaign contributions for personal use. I believe those engaging in the democratic process by giving to those running for office should have the guarantee that their hard earned dollars are being used for the campaign only. The state of North Dakota must earn the trust of the people. These proposed reforms will allow people to rest assured that public officials have their interests at heart and that when wrongdoing occurs it is dealt with swiftly and effectively.

Daum, Kristen. Review shows states Republicans benefiting more from oil and gas contributions than Democrats. Fargo Forum [Fargo, ND] July 15, 2012
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