Attorney General's Office Declares Discounts To Be Gifts

As first reported at Seyfarth Shaw’s Ethics Breakfast Briefing held on July 8, 2004, the Office of the Attorney General ("AG") has issued an informal advisory opinion regarding whether government employee discounts are gifts covered by the new Ethics Act. In that opinion, No. I-04-009, dated June 17, 2004, the AG found that a "discount" provided on goods and services which is offered to all state employees does constitute a "gift" under the State Officials and Employees Ethics Act. Thus, for example, a discount on a computer purchase for government employees would constitute a "gift" under the Act if the computer vendor offering the discount is a prohibited source (does business or seeks to do business with the governmental entity).