[HISTORY: Adopted by the Town Council of
the Town of Denton 2-6-2014 by Ord. No. 636[1]; amended in its entirety 1-5-2023 by Ord. No. 739. Subsequent
amendments noted where applicable.]
GENERAL REFERENCES
Unlawful activities by Town employees — See Charter, § C7-9.
[1]
Editor's Note: This ordinance also repealed former Ch. 14,
Ethics, adopted 5-7-1984 by Ord. No. 206, as amended.
The provisions of this chapter apply to Town elected officials,
regular Town employees, and members of Town boards and as indicated
herein, commissions having decision making authority (whether or not
compensated). Any further reference to Town officials and employees
in this chapter shall apply to the above-mentioned individuals.
There shall be a Town of Denton Ethics Commission, which shall
be composed of three members appointed by the Mayor. The Commission
shall be advised by the Town Attorney and shall have the following
responsibilities:
A.
Devise, receive and maintain all forms required by this chapter;
B.
Develop procedures and policies for advisory opinion requests and
provide published advisory opinions to persons subject to this chapter
regarding the applicability of the provisions of this chapter to them;
C.
Develop procedures and policies for the processing of complaints
to make appropriate determinations regarding complaints filed by any
person alleging violations of this chapter; and
D.
Conduct a public information program regarding the purposes and application
of this chapter.
E.
The Commission shall certify to the State Ethics Commission on or
before October 1 of each year that the Town is in compliance with
the requirements of State Government Article, Title 15, Subtitle 8,
Annotated Code of Maryland for elected local officials.
A.
In this section, "qualified relative" means a spouse, parent, child,
or sibling.
B.
All Town of Denton officials (both elected and non-elected) and employees
subject to this chapter are subject to this section.
C.
Participation prohibitions. Except as permitted by Commission regulation
or opinion, an official or employee may not participate in:
(1)
Any matter in which, to the knowledge of the official or employee,
the official or employee, or a qualified relative of the official
or employee has an interest, except in the exercise of an administrative
or ministerial duty that does not affect the disposition or decision
of the matter.
(2)
Except in the exercise of an administrative or ministerial duty that
does not affect the disposition or decision with respect to the matter,
any matter, in which any of the following is a party:
(a)
A business entity in which the official or employee has a direct
financial interest of which the official or employee may reasonably
be expected to know;
(b)
A business entity for which the official, employee, or a qualified
relative of the official or employee is an officer, director, trustee,
partner, or employee;
(c)
A business entity with which the official or employee or, to
the knowledge of the official or employee, a qualified relative is
negotiating employment or has any arrangement concerning prospective
employment;
(d)
A business entity that is a party to an existing contract with
the official or employee, or which, to the knowledge of the official
or employee, is a party to a contract with a qualified relative if
the contract reasonably could be expected to result in a conflict
between the private interests of the official or employee and the
official duties of the official or employee;
(e)
An entity, doing business with the Town of Denton, in which
a direct financial interest is owned by another entity in which the
official or employee has a direct financial interest, if the official
or employee may be reasonably expected to know of both direct financial
interests; or
(f)
A business entity that the official or employee knows is a creditor
or obligee of the official or employee or a qualified relative of
the official or employee with respect to a thing of economic value,
and as a creditor or obligee, is in a position to directly and substantially
affect the interest of the official or employee or a qualified relative
of the official or employee.
(g)
A quasi-government entity for which the official, employee,
or a qualified relative of the official or employee is an officer,
director, trustee, partner, or employee or with which the official
or employee or, to the knowledge of the official or employee, a qualified
relative is negotiating employment or has any arrangement concerning
prospective employment. A "quasi-government entity" shall mean an
entity that is created by State statute, that performs a public function,
and that is supported in whole or part by the State but is managed
privately.
(3)
A person who is disqualified from participating under paragraph (1)
or (2) of this subsection shall disclose the nature and circumstances
of the conflict and may participate or act if the disqualification
leaves a body with less than a quorum capable of acting, the disqualified
official or employee is required by law to act, or the disqualified
official or employee is the only person authorized to act.
(4)
The prohibitions of paragraphs (1) and (2) of this subsection do
not apply if participation is allowed by regulation or opinion of
the Commission.
D.
Employment and financial interest restrictions.
(1)
Except as permitted by regulation of the Commission when the interest
is disclosed or when the employment does not create a conflict of
interest or appearance of conflict, an official or employee may not:
(a)
Be employed by or have a financial interest in any entity subject
to the authority of the official or employee or a Town of Denton agency,
board, or commission with which the official or employee is affiliated
or an entity that is negotiating or has entered a contract with the
agency, board, or commission with which the official or employee is
affiliated; or
(b)
Hold any other employment relationship that would impair the
impartiality or independence of judgment of the official or employee.
(2)
This prohibition does not apply to:
(a)
An official or employee who is appointed to a regulatory or
licensing authority pursuant to a statutory requirement that persons
subject to the jurisdiction of the authority be represented in appointments
to the authority;
(b)
Subject to other provisions of law, a member of a board or commission
in regard to a financial interest or employment held at the time of
appointment, provided the financial interest or employment is publicly
disclosed to the appointing authority and the Commission;
(c)
An official or employee whose duties are ministerial, if the
private employment or financial interest does not create a conflict
of interest or the appearance of a conflict of interest, as permitted
and in accordance with regulations adopted by the Commission; or
(d)
Employment or financial interests allowed by regulation of the
Commission if the employment does not create a conflict of interest
or the appearance of a conflict of interest or the financial interest
is disclosed.
E.
Post-employment limitations and restrictions.
(1)
A former official or employee may not assist or represent any party
other than the Town of Denton for compensation in a case, contract,
or other specific matter involving the Town of Denton if that matter
is one in which the former official or employee significantly participated
as an official or employee.
(2)
Until the conclusion of the next calendar year that begins after
the elected official leaves office, a former member of the Town Council
may not assist or represent another party for compensation in a matter
that is the subject of legislative action.
F.
Contingent compensation. Except in a judicial or quasi-judicial proceeding,
an official or employee may not assist or represent a party for contingent
compensation in any matter before or involving the Town of Denton.
G.
Use of prestige of office. An official or employee may not intentionally
use the prestige of office or public position for the private gain
of that official or employee or the private gain of another. This
subsection does not prohibit the performance of usual and customary
constituent services by an elected local official without additional
compensation.
H.
Solicitation and acceptance of gifts.
(1)
An official or employee may not solicit any gift.
(2)
An official or employee may not directly solicit or facilitate the
solicitation of a gift, on behalf of another person, from an individual
regulated lobbyist.
(3)
An official or employee may not knowingly accept a gift, directly
or indirectly, from a person that the official or employee knows or
has the reason to know:
(a)
Is doing business with or seeking to do business with the Town
of Denton office, agency, board or commission with which the official
or employee is affiliated;
(b)
Has financial interests that may be substantially and materially
affected, in a manner distinguishable from the public generally, by
the performance or nonperformance of the official duties of the official
or employee;
(c)
Is engaged in an activity regulated or controlled by the official's
or employee's governmental unit;
(d)
Is a lobbyist with respect to matters within the jurisdiction
of the official or employee; or
(e)
Is an association, or any entity acting on behalf of an association
that is engaged only in representing counties or municipal corporations.
(4)
Notwithstanding paragraph (3) of this subsection, an official or
employee may accept the following:
(a)
Meals and beverages consumed in the presence of the donor or
sponsoring entity;
(b)
Ceremonial gifts or awards that have insignificant monetary
value;
(c)
Unsolicited gifts of nominal value that do not exceed $20 in
cost or trivial items of informational value;
(d)
Reasonable expenses for food, travel, lodging, and scheduled
entertainment of the official or the employee at a meeting which is
given in return for the participation of the official or employee
in a panel or speaking engagement at the meeting;
(e)
Gifts of tickets or free admission extended to an elected local
official to attend a charitable, cultural, or political events, if
the purpose of this gift or admission is a courtesy or ceremony extended
to the elected official's office;
(f)
A specific gift or class of gifts that the Commission exempts
from the operation of this subsection upon a finding, in writing,
that acceptance of the gift or class of gifts would not be detrimental
to the impartial conduct of the business of the Town and that the
gift is purely personal and private in nature;
(g)
Gifts from a person related to the official or employee by blood
or marriage, or any other individual who is a member of the household
of the official or employee; or
(h)
Honoraria for speaking to or participating in a meeting, provided
that the offering of the honorarium is in not related in any way to
the official's or employee's official position.
(5)
Paragraph (4) does not apply to a gift:
(a)
That would tend to impair the impartiality and the independence
of judgment of the official or employee receiving the gift;
(b)
Of significant value that would give the appearance of impairing
the impartiality and independence of judgment of the official or employee;
or
(c)
Of significant value that the recipient official or employee
believes or has reason to believe is designed to impair the impartiality
and independence of judgment of the official or employee.
I.
Disclosure of confidential information. Other than in the discharge
of official duties, an official or employee or former official or
employee may not disclose or use confidential information, that the
official or employee acquired by reason of the official's or employee's
public position or former public position and that is not available
to the public, for the economic benefit of the official or employee
or that of another person.
J.
Participation in procurement.
(1)
An individual or a person that employs an individual who assists
a Town of Denton agency in the drafting of specifications, an invitation
for bids, or a request for proposals for a procurement, may not submit
a bid or proposal for that procurement, or assist or represent another
person, directly or indirectly, who is submitting a bid or proposal
for the procurement.
(2)
The Commission may establish exemptions from the requirements of
this section for providing descriptive literature, sole source procurements,
and written comments solicited by the procuring agency.
A.
This Section shall apply to all local elected officials and candidates
to be local elected officials, the Town Administrator, and the Town
Attorney.
B.
Except as provided in subsection D. of this section, the financial disclosure statement required under this section on a form provided by the Commission, under oath or affirmation, and with the Commission.
C.
Deadlines for filing statements.
(1)
An incumbent local elected official, the Town Administrator, and
Town Attorney shall file a financial disclosure statement annually
no later than April 30th of each year for the preceding calendar year.
(2)
An individual who is appointed to fill a vacancy in an office for
which a financial disclosure statement is required and who has not
already filed a financial disclosure statement, shall file a statement
for the preceding calendar year within 30 days after appointment.
(3)
An individual who, other than by reasons of death, leaves an office
for which a statement is required shall file a statement within 60
days after leaving the office. The statement shall cover the calendar
year immediately preceding the year in which the individual left office,
unless a statement covering that year has already been filed by the
individual, and the portion of the current calendar year during which
the individual held the office.
D.
Candidates to be local elected officials.
(1)
Except an official who has filed a financial disclosure statement
under another provision of this section for the reporting period,
a candidate to be an elected local official shall file a financial
disclosure statement each year beginning with the year in which the
certificate of candidacy is filed through the year of the election.
(2)
A candidate to be an elected local official shall file a statement
required under this section at the time said candidate files his or
her certificate of candidacy.
(3)
If a candidate fails to file a statement required by this section
and it is overdue and not filed within eight (8) days after written
notice is provided by the Town Of Denton Clerk or Board of Election
Supervisors, the candidate is deemed to have withdrawn the candidacy.
[Amended 8-3-2023 by Ord. No. 747]
(4)
The Town of Denton Clerk or Board of Election Supervisors may not
accept any certificate of candidacy unless a statement has been filed
in proper form.
(5)
Within 30 days of the receipt of a statement required under this
section, the Town of Denton Clerk or Board of Election Supervisors
shall forward the statement to the Commission or the office designated
by the Commission.
E.
Public record.
(1)
The Commission or office designated by the Commission shall maintain
all financial disclosure statements filed under this section.
(2)
Financial disclosure statements shall be made available during normal
office hours for examination and copying by the public subject to
reasonable fees and administrative procedures established by the Commission.
Notwithstanding the foregoing, the Commission shall not provide public
access to information related to consideration received from: (a)
The University of Maryland Medical System, (b) a governmental entity
of the State or a local government in the State, or (c) a quasi-governmental
entity of the State or local government of the State.
(3)
If an individual examines or copies a financial disclosure statement,
the Commission or the office designated by the Commission shall record
the name and home address of the individual reviewing or copying the
statement, and the name of the person whose financial disclosure statement
was examined or copied.
(4)
Upon request by the official or employee whose financial disclosure
statement was examined or copied, the Commission or the office designated
by the Commission shall provide the official with a copy of the name
and home address of the person who reviewed the official's financial
disclosure statement.
(5)
For
statements filed after January 1, 2019, the Commission or the office
designated by the Commission may not provide public access to an individual's
home address that the individual has designated as the individual's
home address.
[Added 8-3-2023 by Ord. No. 747]
F.
Retention requirements. The Commission or the office designated by
the Commission shall retain financial disclosure statements for four
years from the date of receipt.
G.
Contents of statement - All disclosures required in this subsection
shall include any interests held by the filer in any corporation,
partnership, limited liability partnership or company, including the
disclosure of any other names that the business is trading as or doing
business as.
[Amended 8-3-2023 by Ord. No. 747]
(1)
Interests in real property. A statement filed under this section
shall include a schedule of all interests in real property wherever
located, and for each interest in real property, the schedule shall
include:
(a)
The nature of the property and the location by street address,
mailing address, or legal description of the property;
(b)
The nature and extent of the interest held, including any conditions
and encumbrances on the interest;
(c)
The date when, the manner in which, and the identity of the
person from whom the interest was acquired;
(d)
The nature and amount of the consideration given in exchange
for the interest or, if acquired other than by purchase, the fair
market value of the interest at the time acquired;
(e)
If any interest was transferred, in whole or in part, at any
time during the reporting period, a description of the interest transferred,
the nature and amount of the consideration received for the interest,
and the identity of the person to whom the interest was transferred;
and
(f)
The identity of any other person with an interest in the property.
(2)
Interests in corporations and partnerships. A statement filed under
this section shall include a schedule of all interests in any corporation,
partnership, limited liability partnership, or limited liability corporation,
including the disclosure of any other names that the business is trading
as or doing business as, regardless of whether the corporation or
partnership does business with the Town of Denton and for each interest
reported under this paragraph, the schedule shall include:
(a)
The name and address of the principal office of the corporation,
partnership, limited liability partnership, or limited liability corporation;
(b)
The nature and amount of the interest held, including any conditions
and encumbrances on the interest. An individual may satisfy the requirement
to report the amount of the interest held by reporting, instead of
a dollar amount: for an equity interest in a corporation, the number
of shares held and, unless the corporation's stock is publicly traded,
the percentage of equity interest held; or for an equity interest
in a partnership, the percentage of equity interest held.
(c)
With respect to any interest transferred, in whole or in part,
at any time during the reporting period, a description of the interest
transferred, the nature and amount of the consideration received for
the interest and, if known, the identity of the person to whom the
interest was transferred; and
(d)
With respect to any interest acquired during the reporting period,
the date when, the manner in which, and the identity of the person
from whom the interest was acquired, and the nature and the amount
of the consideration given in exchange for the interest or, if acquired
other than by purchase, the fair market value of the interest at the
time acquired.
(3)
Interests in business entities doing business with the Town of Denton.
A statement filed under this section shall include a schedule of all
interests in any business entity that does business with the Town
of Denton, other than interests reported under paragraph (2) of this
subsection, and for each interest reported under this paragraph, the
schedule shall include:
(a)
The name and address of the principal office of the business
entity;
(b)
The nature and amount of the interest held, including any conditions
to and encumbrances in the interest;
(c)
With respect to any interest transferred, in whole or in part,
at any time during the reporting period, a description of the interest
transferred, the nature and amount of the consideration received in
exchange for the interest and, if known, the identity of the person
to whom the interest was transferred; and
(d)
With respect to any interest acquired during the reporting period,
the date when, the manner in which, and the identity of the person
from whom the interest was acquired, and the nature and the amount
of the consideration given in exchange for the interest or, if acquired
other than by purchase, the fair market value of the interest at the
time acquired.
(4)
Gifts. A statement filed under this section shall include a schedule
of each gift in excess of $20 in value or a series of gifts totaling
$100 or more received during the reporting period from or on behalf
of, directly or indirectly, any one person who does business with
or is regulated by the Town of Denton, or from an association, or
any entity acting on behalf of an association, that is engaged only
in representing counties or municipal corporations, and for each gift
reported, the schedule shall include a description of the nature and
value of the gift, and the identity of the person from whom, or on
behalf of whom, directly or indirectly, the gift was received.
(5)
Employment with or interests in entities doing business with the
Town of Denton. A statement filed under this section shall include
a schedule of all offices, directorships, and salaried employment
by the individual or member of the immediate family of the individual
held at any time during the reporting period with entities doing business
with the Town of Denton, and for each position reported under this
paragraph, the schedule shall include:
(6)
Indebtedness to entities doing business with the Town of Denton.
A statement filed under this section shall include a schedule of all
liabilities, excluding retail credit accounts, to persons doing business
with the Town of Denton owed at any time during the reporting period
by the individual or by a member of the immediate family of the individual
if the individual was involved in the transaction giving rise to the
liability, and for each liability reported under this paragraph, the
schedule shall include:
(a)
The identity of the person to whom the liability was owed and
the date the liability was incurred;
(b)
The amount of the liability owed as of the end of the reporting
period;
(c)
The terms of payment of the liability and the extent to which
the principal amount of the liability was increased or reduced during
the year; and
(d)
The security given, if any, for the liability.
(7)
A statement filed under this section shall include a schedule of
the immediate family members of the individual employed by the Town
of Denton in any capacity at any time during the reporting period.
(8)
Sources of earned income. A statement filed under this section shall
include a schedule of the name and address of each place of employment
and of each business entity of which the individual or a member of
the individual's immediate family was a sole or partial owner and
from which the individual or member of the individual's immediate
family received earned income, at any time during the reporting period.
A minor child's employment or business ownership need not be disclosed
if the agency that employs the individual does not regulate, exercise
authority over, or contract with the place of employment or business
entity of the minor child. In the event the official or employee has
a financial or contractual relationship with the University of Maryland
Medical System, the State or a local government, or a quasi-governmental
entity, the official or employee shall disclose the information specified
in Section 5-607(j)(1), General Provisions Article, Annotated Code
of Maryland. The schedule shall include (a) a description of the relationship,
(b) the subject matter of the relationship, and (c) the consideration.
(9)
A statement filed under this section may also include a schedule
of additional interests or information that the individual making
the statement wishes to disclose.
(10)
For the purposes of Paragraphs (1), (2) and (3) of this subsection,
the following interests are considered to be the interests of the
individual making the statement:
(a)
An interest held by a member of the individual's immediate family,
if the interest was, at any time during the reporting period, directly
or indirectly controlled by the individual.
(b)
An interest held by a business entity in which the individual
held a 10% or greater interest at any time during the reporting period.
(c)
An interest held by a business entity described in subsection (b) in which the business entity held a 25% or greater interest.
(d)
An interest held by a business entity described in subsection (c) in which the business entity held a 50% or greater interest.
(e)
An interest in a business entity held by the official or employee,
directly or indirectly, through one or a combination of other business
entities, is 10% or greater.
(f)
An interest held by a trust or an estate in which, at any time
during the reporting period the individual held a reversionary interest
or was a beneficiary, or if a revocable trust, the individual was
a settlor.
H.
The Commission shall review the financial disclosure statements submitted
under this section for compliance with the provisions of this section
and shall notify an individual submitting the statement of any omissions
or deficiencies. In addition, the Commission may take appropriate
enforcement action to ensure compliance with this section.
A.
This section only applies to regular Town employees and members of
Town boards and commissions.
B.
A statement filed under this section shall be filed with the Commission
under oath or affirmation.
C.
On or before April 30 of each year during which an official or employee
holds office, an official or employee shall file a statement disclosing
gifts received during the preceding calendar year from any person
that contracts with or is regulated by the Town of Denton including
the name of the donor of the gift and the approximate retail value
at the time of receipt. The statement must be filed only in those
years following the receipt of a gift that must be disclosed under
this section.
D.
An official or employee shall disclose employment and interests that
raise conflicts of interest or potential conflicts of interest in
connection with a specific proposed action by the employee or official
sufficiently in advance of the action to provide adequate disclosure
to the public.
The Commission may grant exemptions and modifications to the provisions of §§ 14-3 and 14-5 of this chapter as they relate to regular Town employees and members of Town boards and commissions, when the Commission finds that an exemption or modification would not be contrary to the purposes of this chapter, and the application of this chapter would constitute an unreasonable invasion of privacy and significantly reduce the availability of qualified persons for public service.
A.
The Commission may issue a cease-and-desist order against any person
found to be in violation of this chapter, impose a fine of up to $500
for any violation of the provisions of this chapter, each day upon
which the violation occurs constituting a separate offense, and may
seek enforcement of this order in the Circuit Court of Caroline County.
B.
A Town official or employee found to have violated this chapter may
be subject to disciplinary or other appropriate personnel action.
C.
Violation of any section of this chapter shall be a misdemeanor subject
to a fine of up to $500 or imprisonment of up to 90 days, or both.
