This chapter may be cited as the "Town of Snow Hill Public Ethics
Ordinance."
The provisions of this chapter apply to all Town elected officials,
employees, and appointees to boards and commissions of the Town.
[Amended 3-13-2018 by Ord. No. 2018-01]
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. Except as permitted by Commission regulation
or opinion, an official or employee may not participate as follows:
(1) 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.
(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)
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;
(e)
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
(f)
A business entity that:
[1]
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
[2]
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.
(3) A person who is disqualified from participating under Subsection
C(1) or
(2) of this section shall disclose the nature and circumstances of the conflict and may participate or act if:
(a)
The disqualification leaves a body with less than a quorum capable
of acting;
(b)
The disqualified official or employee is required by law to
act; or
(c)
The disqualified official or employee is the only person authorized
to act.
(4) The prohibitions of Subsection
C(1) and
(2) of this section 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:
[1]
Subject to the authority of the official or employee or the
Town agency, board, commission with which the official or employee
is affiliated; or
[2]
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
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) A former elected official may not assist or represent another party
for compensation in a matter that is the subject of legislative action
for one calendar year after the elected official leaves office.
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) Prohibited acts.
(a)
An official or employee may not intentionally use the prestige
of office or public position:
[1]
For the private gain of that official or employee or the private
gain of another; or
[2]
To influence, except as part of the official duties of the official
or employee or as a usual and customary constituent service without
additional compensation, the award of a state or local contract to
a specific person.
(b)
An official may not directly or indirectly initiate a solicitation
for a person to retain the compensated services of a particular regulated
lobbyist or lobbying firm.
(2) This subsection does not prohibit the performance of usual and customary
constituent services by an elected local official without additional
compensation.
(3) Use of public resources or title.
(a)
An official, other than an elected official, or employee may
not use public resources or the title of the official or employee
to solicit a contribution as that term is defined in the Election
Law Article.
(b)
An elected official may not use public resources to solicit
a contribution as that term is defined in the Election Law Article.
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
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.
[Added 1-10-2023 by Ord. No. 2022-05]
(4) Subsection
H(5) 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.
(5) Notwithstanding Subsection
H(3) 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 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.
[Amended 1-10-2023 by Ord. No. 2022-05]
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.
K. An official or employee may not retaliate against an individual for
reporting or participating in an investigation of a potential violation
of the local ethics law or ordinance.
[Added 1-10-2023 by Ord. No. 2022-05]
[Amended 3-13-2018 by Ord. No. 2018-01]
A. In this
section, "quasi-governmental entity" means an entity that is created
by state statute that performs a public function and that is supported
in whole or in part by the state but is managed privately.
[Added 1-10-2023 by Ord. No. 2022-05]
B. This section applies to all local elected officials and candidates
to be local elected officials.
C. Except as provided in Subsection
E of this section, a local elected official, or a candidate to be a local elected official, shall file the financial disclosure statement required under this section:
[Amended 1-10-2023 by Ord. No. 2022-05]
(1) On a form provided by the Commission;
(2) Under oath or affirmation; and
D. Deadlines for filing statements.
(1) 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.
(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 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:
(a)
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
(b)
The portion of the current calendar year during which the individual
held the office.
E. 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) A candidate to be an elected official:
(a)
May file the statement required under § 16-5D(2)(a)
with the Town Manager or Board of Election Supervisors with the certificate
of candidacy or with the Commission prior to filing the certificate
of candidacy; and
(b)
Shall file the statements required under § 16-5D(2)(b)
and (c) with the Commission.
(4) If a candidate fails to file a statement required by this section
after written notice is provided by the Town Manager or Board of Election
Supervisors at least 20 days before the last day for the withdrawal
of candidacy, the candidate is deemed to have withdrawn the candidacy.
(5) The Town Manager or Board of Election Supervisors may not accept
any certificate of candidacy unless a statement has been filed in
proper form.
(6) Within 30 days of the receipt of a statement required under this
section, the Town Manager or Board of Election Supervisors shall forward
the statement to the Commission or the office designated by the Commission.
F. 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:
(a)
The name and home address of the individual reviewing or copying
the statement; and
(b)
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.
(6) The Commission or office designated by the Commission shall not provide
public access to information related to consideration received from:
[Added 1-10-2023 by Ord. No. 2022-05]
(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 in the
state.
G. Retention requirements. The Commission or the office designated by
the Commission shall retain financial disclosure statements for four
years from the date of receipt.
H. An individual
who is required to disclose the name of a business under this section
shall disclose any other names that the business is trading as or
doing business as.
[Added 1-10-2023 by Ord. No. 2022-05]
I. 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:
[a]
The date when, the manner in which, and the identity of the
person from whom the interest was acquired; and
[b]
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.
(c)
An individual may satisfy the requirement to report the amount of the interest held under Subsection
I(2)(b) of this section by reporting, instead of a dollar amount:
[1]
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
[2]
For an equity interest in a partnership, the percentage of equity
interest held.
(3) Interests in business entities doing business with 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
I(2) of this subsection.
(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:
[a]
The date when, the manner in which, and the identity of the
person from whom the interest was acquired; and
[b]
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)
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 or from an association or any entity acting
on behalf of an association that is engaged only in representing counties
or municipal corporations.
[Amended 1-10-2023 by Ord. No. 2022-05]
(b)
For each gift reported, the schedule shall include:
[1]
A description of the nature and value of the gift; and
[2]
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 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:
[1]
The name and address of the principal office of the business
entity;
[2]
The title and nature of the office, directorship or salaried
employment held and the date it commenced; and
[3]
The name of each Town agency with which the entity is involved.
(6) Indebtedness to entities doing business with or regulated by the
individual's Town unit or department.
(a)
A statement filed under this section shall include a schedule
of all liabilities, excluding retail credit accounts, to persons doing
business with or regulated by the individual's Town unit or department
owed at any time during the reporting period:
[2]
By a member of the immediate family of the individual if the
individual was involved in the transaction giving rise to the liability.
(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) Relationship
with University of Maryland Medical System, state or local government,
or quasi-governmental entity.
[Added 1-10-2023 by Ord. No. 2022-05]
(a) An
individual shall disclose the information specified in the General
Provisions Article of the Annotated Code of Maryland, § 5-607(i)(1),
for any financial or contractual relationship with:
[1] The University of Maryland Medical System;
[2] A governmental entity of the state or a local government in the state;
or
[3] A quasi-governmental entity of the state or local government in the
state.
(b) For
each financial or contractual relationship reported, the schedule
shall include:
[1] A description of the relationship;
[2] The subject matter of the relationship; and
(10) 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.
J. For the purposes of §
16-5I(1),
(2) and
(3) of this chapter, the following interests are considered to be the interests of the individual making the statement:
[Amended 1-10-2023 by Ord. No. 2022-05]
(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 at any time during the applicable period by:
(a) A
business entity in which the individual held a 10% or greater interest;
(b) A business entity described in Subsection
J(2)(a) of this subsection in which the business entity held a 25% or greater interest;
(c) A business entity described in Subsection
J(2)(b) of this subsection in which the business entity held a 50% or greater interest; and
(d) A
business entity in which the individual directly or indirectly, through
an interest in one or a combination of other business entities, holds
a 10% or greater interest.
(3) An interest held by a trust or an estate in which, at any time during
the reporting period:
(a)
The individual held a reversionary interest or was a beneficiary;
or
(b)
If a revocable trust, the individual was a settlor.
K. Review; notice; 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.
The Commission may grant exemptions and modifications to the provisions of §§
16-4 and
16-6 of this chapter to employees and to appointed members of the Town Board 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:
A. Constitute an unreasonable invasion of privacy; and
B. Significantly reduce the availability of qualified persons for public
service.