[HISTORY: Adopted by the Mayor and Council of the Town of
Smithsburg 2-7-2012 (Ch. 2, Title 6, of the 2004 Code). Amendments noted where applicable.]
As permitted by the State Government Article, Title 15, of the
Annotated Code of Maryland, the Smithsburg Ethics Ordinance is as
follows.
The provisions of this chapter, unless otherwise herein provided,
shall apply to all Smithsburg officials, employees, and members of
boards and commissions, including but not limited to:
A.
The Town Ethics Commission shall be the Washington County Ethics
Commission which is composed of five members appointed by the Board
of County Commissioners of Washington County, Maryland. The Commission
shall be advised by the County Attorney and shall have the following
responsibilities:
(1)
To provide published advisory opinions to persons subject to this
chapter as to the applicability of the provisions of this chapter
to them.
(2)
To process and make determinations as to complaints filed by any
person alleging violations of this chapter.
(3)
To conduct a public information program regarding the purposes and
applications of this chapter.
B.
In fulfilling its responsibilities as set forth above while acting
as the Town Ethics Commission, the Washington County Ethics Commission
shall utilize the processes and procedures it follows in carrying
out its responsibilities under the Washington County Ethics Ordinance,
except that it shall apply the substantive terms of this chapter (not
the Washington County Ethics Ordinance) in providing advisory opinions
and in processing and making determinations in instances of filed
complaints.
A.
In this section, "qualified relative" means a spouse, parent, child,
or sibling.
B.
All Town elected officials, officials appointed to Town boards and
commissions subject to this chapter, and employees are subject to
this section.
C.
Participation prohibitions.
(1)
Except as permitted by Commission regulation or opinion, an official
or employee may not participate in:
(a)
Except
in the exercise of an administrative or ministerial duty that does
not affect the disposition or decision of the matter, 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.
(b)
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:
[1]
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;
[2]
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;
[3]
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;
[4]
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, 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;
[5]
An entity, doing business with the Town, 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
[6]
A business entity that:
[a]
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
[b]
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.
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:
(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 that 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
by 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 for compensation in a case, contract, or other
specific matter involving the Town 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 regular session 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.
G.
Use of prestige of office.
(1)
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.
(2)
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)
"Gift" means the transfer of anything of economic value, regardless
of the form, without adequate and lawful consideration. "Gift" does
not include a political campaign contribution regulated under the
Election Law Article, Annotated Code of Maryland, or any other provision
of state or local law regulating the conduct of elections or the receipt
of political campaign contributions.
(2)
An official or employee may not solicit any gift.
(3)
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.
(4)
An official or employee may not knowingly accept a gift, directly
or indirectly, from a person that the official or employee knows or
has reason to know:
(a)
Is doing business with or seeking to do business with the Town
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; or
(d)
Is a lobbyist with respect to matters within the jurisdiction
of the official or employee.
(5)
Subsection H(6) of this section 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.
(6)
Notwithstanding Subsection H(4) of this section, 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 event, 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 not related in any way to the
official's or employee's official position.
I.
Disclosure of confidential information. Other than in the discharge
of official duties, an 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,
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 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.
Applicability.
(1)
This section applies to all local elected officials and candidates
to be local elected officials.
(3)
Deadlines for filing statements.
(a)
An incumbent local elected official shall file a financial disclosure
statement annually no later than April 30 of each year for the preceding
calendar year.
(b)
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.
(c)
An individual who, other than by reason 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:
B.
Candidates to be local elected officials.
(1)
Except for 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:
(a)
In the year the certificate of candidacy is filed, no later
than the filing of the certificate of candidacy;
(b)
In the year of the election, on or before the earlier of April
30 or the last day for the withdrawal of candidacy; and
(c)
In all other years for which a statement is required, on or
before April 30.
(3)
(4)
If a candidate fails to file a statement required by this section
after written notice is provided by the Town Clerk-Treasurer or Board
of Supervisors of Elections at least 20 days before the last day for
the withdrawal of candidacy, the candidate is deemed to have withdrawn
the candidacy.[2]
C.
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.
(3)
If an individual examines or copies a financial disclosure statement,
the Commission or the office designated by the Commission shall record:
(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.
D.
Retention requirements. The Commission or the office designated by
the Commission shall retain financial disclosure statements for four
years from the date of receipt.
E.
Contents of statement.
(1)
Interests in real property.
(a)
A statement filed under this section shall include a schedule
of all interests in real property, wherever located.
(b)
For each interest in real property, the schedule shall include:
[1]
The nature of the property and the location by street address,
mailing address, or legal description of the property;
[2]
The nature and extent of the interest held, including any conditions
and encumbrances on the interest;
[3]
The date when, the manner in which, and the identity of the
person from whom the interest was acquired;
[4]
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;
[5]
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
[6]
The identity of any other person with an interest in the property.
(2)
Interests in corporations and partnerships.
(a)
A statement filed under this section shall include a schedule
of all interests in any corporation, partnership, limited-liability
partnership, or limited-liability corporation, regardless of whether
the corporation or partnership does business with the Town.
(b)
For each interest reported under this subsection, the schedule
shall include:
[1]
The name and address of the principal office of the corporation,
partnership, limited-liability partnership, or limited-liability corporation;
[2]
The nature and amount of the interest held, including any conditions
and encumbrances on the interest;
[3]
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
[4]
With respect to any interest acquired during the reporting period:
(c)
An individual may satisfy the requirement to report the amount of the interest held under Subsection E(2)(b)[2] by reporting, instead of a dollar amount:
(3)
Interests in business entities doing business with the Town.
(a)
A statement filed under this section shall include a schedule of all interests in any business entity that does business with the Town, other than interests reported under Subsection E(2) of this section.
(b)
For each interest reported under this subsection, the schedule
shall include:
[1]
The name and address of the principal office of the business
entity;
[2]
The nature and amount of the interest held, including any conditions
to and encumbrances in the interest;
[3]
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
[4]
With respect to any interest acquired during the reporting period:
(4)
Gifts.
(a)
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.
(5)
Employment with or interests in entities doing business with the
Town.
(a)
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.
(b)
For each position reported under this subsection, the schedule
shall include:
(6)
Indebtedness to entities doing business with the Town.
(a)
A statement filed under this section shall include a schedule
of all liabilities, excluding retail credit accounts, to persons doing
business with the Town owed at any time during the reporting period:
(b)
For each liability reported under this subsection, the schedule
shall include:
[1]
The identity of the person to whom the liability was owed and
the date the liability was incurred;
[2]
The amount of the liability owed as of the end of the reporting
period;
[3]
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
[4]
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
in any capacity at any time during the reporting period.
(8)
Sources of earned income.
(a)
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.
(b)
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.
(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.
F.
For the purposes of Subsection E(1), (2), and (3) of this section, the following interests are considered to be the interests of the individual making the statement:
(1)
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.
(2)
An interest held by a business entity in which the individual held
a 30% or greater interest at any time during the reporting period.
G.
Review and enforcement.
(1)
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.
(2)
The Town Ethics Commission may take appropriate enforcement action
to ensure compliance with this section.
A.
This section only applies to the following appointed officials and
employees:
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, including the name
of the donor of the gift and the approximate retail value at the time
of receipt.
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.
A.
The Commission may issue a cease and desist order against any person
found to be in violation of this chapter and may seek enforcement
of that order in the Circuit Court for Washington County, Maryland.
The Court may issue a cease and desist order and may also impose a
fine of up to $1,000 for any violation of the provisions of this chapter.
B.
A Town official or employee found to have violated this chapter may
be subject to disciplinary or other appropriate personnel action,
including suspension of Town salary or other compensation.
