Town of Forest Heights, MD Town Public Ethics Ordinance

The Mayor and Council recognize that our system of representative government heavily relies upon the continued maintenance of personal and professional integrity by each of its officers and employees and the right of the people of this municipality to be assured that the impartiality and independent judgment of its public officials and employees will be secured.

For the purpose of guarding against improper influence, the Mayor and Council enacts this Article to require Town officials and employees to disclose their financial affairs and to set minimum standards for their conduct of Town business.

It is the intention of the Council that this Article, except its provisions for criminal sanctions, be liberally construed to accomplish this purpose.

[Added 5-5-2014 by Ord. No. 01-14, effective 6-4-2014]

Section 14.3 Ethics Commission.

[Amended 5-5-2014 by Ord. No. 01-14, effective 6-4-2014]

There is a Town of Forest Heights Ethics Commission that consists of three members appointed by the Mayor with the approval of the Council. Notwithstanding anything in Article 21 of the Town Code to the contrary, the Ethics Commissioners shall serve at the pleasure of the Mayor and Council and shall otherwise be further governed by this Article and Article 21 of the Town Code.

The Commission shall:

Devise, receive, and maintain all forms required by this Article;

Develop procedures and policies for advisory opinion requests and provide published advisory opinions to persons subject to this Article regarding the applicability of the provisions of this Article to them;

Develop procedures and policies for the processing of complaints to make appropriate determinations regarding complaints filed by any person alleging violations of this Article, provided that all complaints shall be in writing and given under oath;

Consistent with Section 21.2C(5)(II) of the Town Code, ensure that any investigation shall be conducted by the Town Attorney, special counsel, or other person temporarily retained by the Commission to conduct the investigation. The individual Commissioners shall not engage in ex parte meetings or directly conduct investigative activities unless specifically approved by the Commission; and

(5)

Conduct a public information program regarding the purposes and application of this Article.

The Town Attorney shall advise the Commission.

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 town officials.

The Commission shall determine if changes to this Article are required to be in compliance with the requirements of State Government Article, Title 15, Subtitle 8, Annotated Code of Maryland, and shall forward any recommended changes and amendments to the Town Council for enactment.

The Commission may adopt other policies and procedures to assist in the implementation of the Commission's programs established in this Article.

(g)

Any official or employee subject to the provisions of this Article may request from the Commission an advisory opinion concerning the application of this Article. The Commission shall respond promptly to these requests, providing interpretations of this Article based on the facts provided or reasonably available to the Commission and reviewed or prepared by legal counsel. Copies of advisory opinions, with the identity deleted, shall be made available to the public in accordance with the Maryland Public Information Act.[1]

[1]

Editor's Note: See State Government Article of the Annotated Code of Maryland, § 10-611 et seq.

Section 14.4 Conflicts of interest.

[Amended 5-5-2014 by Ord. No. 01-14, effective 6-4-2014]

In this section, "qualified relative" means a spouse, parent, child, or sibling.

All Town elected officials, officials appointed to Town boards and commissions subject to this Article, and employees are subject to this section.

Participation prohibitions. Except as permitted by Commission regulation or opinion, an official or employee may not participate in:

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.

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 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;

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;

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;

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;

(V)

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

(VI)

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.

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:

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.

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.

Employment and financial interest restrictions.

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:

Be employed by or have a financial interest in any entity:

Subject to the authority of the official or employee or the Town agency, board, or commission with which the official or employee is affiliated; or

That is negotiating or has entered a contract with the agency, board, or commission with which the official or employee is affiliated; or

Hold any other employment relationship that would impair the impartiality or independence of judgment of the official or employee.

This prohibition does not apply to:

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;

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;

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

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.

Post-employment limitations and restrictions.

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.

Until the conclusion of one calendar year after the elected official leaves office, a former elected official may not assist or represent another party for compensation in a matter that is the subject of legislative action of the Council.

[Amended 11-18-2020 by Ord. No. 04-20]

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.

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 Town official without additional compensation.

Contributions.

[Added 11-18-2020 by Ord. No. 04-20]

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 of the Maryland Annotated Code.

An elected official may not use public resources to solicit a contribution as that term is defined in the Election Law Article of the Maryland Annotated Code.

(h)

Solicitation and acceptance of gifts.

An official or employee may not solicit any gift.

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.

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:

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;

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;

Is engaged in an activity regulated or controlled by the official's or employee's governmental unit; or

Is a lobbyist with respect to matters within the jurisdiction of the official or employee.

Subsection (h)(5) of this section does not apply to a gift:

That would tend to impair the impartiality and the independence of judgment of the official or employee receiving the gift;

Of significant value that would give the appearance of impairing the impartiality and independence of judgment of the official or employee; or

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:

Meals and beverages consumed in the presence of the donor or sponsoring entity;

Ceremonial gifts or awards that have insignificant monetary value;

Unsolicited gifts of nominal value that do not exceed $20 in cost or trivial items of informational value;

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;

(V)

Gifts of tickets or free admission extended to an elected Town 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;

(VI)

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;

(VII)

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

(VIII)

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.

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.

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.

Section 14.5 Financial disclosure by elected officials and candidates.

[Amended 5-5-2014 by Ord. No. 01-14, effective 6-4-2014]

Applicability; manner of filing; deadlines for elected officials.

This section applies to all Town elected officials and candidates to be Town elected officials.

Except as provided in Subsection (b) of this section, a Town elected official or a candidate to be a Town elected official shall file the financial disclosure statement required under this section:

On a form provided by the Commission;

Under oath or affirmation; and

With the Town Clerk acting for the Commission.

Deadlines for filing statements.

Except as otherwise stated in this subsection, an incumbent Town elected official shall file a financial disclosure statement annually on or before the first Wednesday in February preceding the Town election of each year for the preceding calendar year. Subject to Subsection (b)(3) below, regarding an eight-day grace period for filing a disclosure statement, a seated Councilman serving a term of office that expires nonconcurrently with the Mayor and who wishes to file a certificate of nomination for Mayor pursuant to Section 33-3 of the Town Charter shall file his or her financial disclosure statement at the time of the filing of the certificate of nomination prescribed by Section 33-31 of the Town Charter.

[Amended 11-18-2020 by Ord. No. 04-20]

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 immediately preceding calendar year within 30 days after appointment.

Individuals leaving office.

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:

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.

Candidates to be Town elected officials.

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 Town official shall file a financial disclosure statement required under this section in the year the certificate of nomination is filed, at the time of the filing of the certificate of nomination as prescribed by Section 33-31 of the Town Charter;

[Amended 11-18-2020 by Ord. No. 04-20]

A candidate to be an elected Town official shall file the financial disclosure statement required under this section with the Town Clerk along with the certificate of nomination.

If a statement required by a candidate is overdue and not filed within eight days after written notice of the failure to file is provided by the Town Clerk, the candidate is deemed to have withdrawn the candidacy.

[Amended 11-18-2020 by Ord. No. 04-20]

Within three days of the receipt of a financial disclosure statement required under this section, the Town Clerk or Town Board of Elections shall forward the financial disclosure statement to the Town Ethics Commission or the office designated by the Commission.

[Amended 11-18-2020 by Ord. No. 04-20]

Public record.

Unless otherwise designated by the Commission or an approved records retention and disposition schedule, the Town Clerk shall maintain all financial disclosure statements filed under this section. 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.

[Amended 11-18-2020 by Ord. No. 04-20]

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 or by resolution of Council.

If an individual examines or copies a financial disclosure statement, the Town Clerk acting for the Commission or the office designated by the Commission shall record:

The name of the individual reviewing or copying the statement; and

[Amended 11-18-2020 by Ord. No. 04-20]

The name of the person whose financial disclosure statement was examined or copied.

Upon request by the official or employee whose financial disclosure statement was examined or copied, the Town Clerk acting for the Commission or the office designated by the Commission shall provide the official with a copy of the name of the person who reviewed the official's financial disclosure statement.

[Amended 11-18-2020 by Ord. No. 04-20]

Retention requirements. The Town Clerk acting for the Commission or the office designated by the Commission shall retain financial disclosure statements for four years from the date of receipt or as otherwise prescribed by an approved records retention and disposition schedule obtained pursuant to Article 17 of the Town Code.

Contents of financial disclosure statement.

Interests in real property.

A statement filed under this section shall include a schedule of all interests in real property wherever located.

For each interest in real property, the schedule shall include:

The nature of the property and the location by street address, mailing address, or legal description of the property;

The nature and extent of the interest held, including any conditions and encumbrances on the interest;

The date when, the manner in which, and the identity of the person from whom the interest was acquired;

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.

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, limited liability corporation, or other business entity, regardless of whether the corporation or partnership does business with the Town.

For each interest reported under this subsection, the schedule shall include:

The name and address of the principal office of the corporation, partnership, limited liability partnership, limited liability corporation, or other business entity;

The nature and amount of the interest held, including any conditions and encumbrances on the interest;

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

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.

(E)

An individual may satisfy the requirement to report the amount of the interest held under Subsection (e)(2)(II)(B) of this section 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.

Interests in business entities doing business with the Town.

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.

For each interest reported under this subsection, the schedule shall include:

The name and address of the principal office of the business entity;

The nature and amount of the interest held, including any conditions to and encumbrances in the interest;

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

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.

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.

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.

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.

For each position reported under this subsection, the schedule shall include:

The name and address of the principal office of the business entity;

The title and nature of the office, directorship, or salaried employment held and the date it commenced; and

The name of each Town agency with which the entity is involved.

(6)

Indebtedness to entities doing business with the Town.

A statement filed under this section shall include a schedule of all liabilities, excluding retail credit accounts or customer accounts of Town franchisees, to persons or entities doing business with or regulated by the individual's Town unit or department, owed at any time during the reporting period:

[Amended 11-18-2020 by Ord. No. 04-20]

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.

For each liability reported under this subsection, the schedule shall include:

The identity of the person to whom the liability was owed and the date the liability was incurred;

The amount of the liability owed as of the end of the reporting period;

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

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 holding office or employed by the Town 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.

(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.

For the purposes of Section 14.5(e)(1), (2), and (3) of this Article, the following interests are considered to be the interests of the individual making the statement:

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.

An interest held by a business entity in which the individual held a thirty-percent or greater interest at any time during the reporting period.

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.

(g)

Compliance.

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.

The Town Ethics Commission may take appropriate enforcement action to ensure compliance with this section.

Section 14.6 Financial disclosure by employees and appointed officials.

[Added 5-5-2014 by Ord. No. 01-14,[1] effective 6-4-2014]

This section applies only to the following appointed officials and employees: Town Administrator, Town Clerk, Treasurer, Chief of Police, Public Works Supervisor, Chairman of the Town Board of Elections, and Chairman of the Town Ethics Commission.

A statement filed under this section shall be filed with the Commission under oath or affirmation.

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 Town, including the name of the donor of the gift and the approximate retail value at the time or receipt.

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 shall maintain all disclosure statements filed under this section as public records available for public inspection and copying as provided in Section 14.5(c) and (d) of this Article.

[1]

Editor's Note: This ordinance also repealed former Section 14.6, Lobbying disclosure.

Section 14.7 Discrimination against complainant and false statements.

The Town of Forest Heights, acting through its authorized personnel, shall not discharge or discriminate against or threaten to discharge or discriminate against any Town official or employee regarding compensation, terms, conditions, location or the privilege of employment with the Town because:

[Amended 5-5-2014 by Ord. No. 01-14, effective 6-4-2014]

The Town official or employee, whether acting as a complainant or on behalf of a complainant, reports or is about to report orally or in writing any alleged violation of this Article.

The Town official or employee, whether acting as a complainant or on behalf of a complainant, participates in an investigation, or inquiry held by the Commission in conjunction with a complaint filed under this Article, or any related court action.

This section shall not apply to a Town official or employee who knowingly files a false complaint or makes a false statement to the Commission with respect to an alleged violation of this Article.

[Amended 5-5-2014 by Ord. No. 01-14, effective 6-4-2014]

The Town of Forest Heights shall not discriminate or retaliate against any person filing a complaint with respect to Town services, regulatory matters, or other benefits generally provided to Town residents and property owners.

Section 14.8 Exemptions and modifications.

[Amended 5-5-2014 by Ord. No. 01-14, effective 6-4-2014]

The Commission may grant exemptions and modifications to the provisions of Sections 14.4 (Conflicts of interest) and 14.6 (Financial disclosure by employees and appointed officials) of this Article to employees and to appointed members of the Town boards and commissions, when the Commission finds that an exemption or modification would not be contrary to the purposes of this Article, and the application of this Article would:

Constitute an unreasonable invasion of privacy; and

Significantly reduce the availability of qualified persons for public service.

Section 14.9 Enforcement.

[Amended 5-5-2014 by Ord. No. 01-14, effective 6-4-2014]

The Commission may:

Assess a late fee of $2 per day up to a maximum of $250 for a failure to timely file a financial disclosure statement required under Section 14.5 or 14.6 of this Article; and

Issue a cease and desist order against any person found to be in violation of this Article.

Upon a finding of a violation of any provision of this Article, the Commission may:

Issue an order of compliance directing the respondent to cease and desist from the violation;

Issue a reprimand; or

Recommend to the appropriate authority other appropriate discipline of the respondent, including censure or removal if that discipline is authorized by law.

Filing with court.

Upon request of the Commission, the Town Attorney may file a petition for injunctive or other relief in the Circuit Court of Prince George's County, or in any other court having proper venue for the purpose of requiring compliance with the provisions of this Article.

Action by court.

The court may:

Issue an order to cease and desist from the violation;

Except as provided in Subsection (c)(2)(II) of this section, void an official action taken by an official or employee with a conflict of interest prohibited by this Article when the action arises from or concerns the subject matter of the conflict and if the legal action is brought within 90 days of the occurrence of the official action, if the court deems voiding the action to be in the best interest of the public; or

Impose a fine of up to $1,000 for any violation of the provisions of this Article, with each day upon which the violation occurs constituting a separate offense.

A court may not void any official action appropriating public funds, levying taxes, or providing for the issuance of bonds, notes, or other evidences of public obligations.

In addition to any other enforcement provisions in this Article, a person who the Commission or a court finds has violated this Article:

Is subject to termination or other disciplinary action; and

May be suspended from receiving payment of salary or other compensation pending full compliance with the terms of an order of the Commission or a court.

A Town official or employee found to have violated this Article is subject to disciplinary or other appropriate personnel action, including removal from office, disciplinary action, suspension of salary, or other sanctions consistent with Section 33-93 of the Town Charter and Section 2.4 of the Town Code, as applicable.

A finding of a violation of this Article by the Commission is public information.

Section 14.10 Summoning witnesses; requiring production of papers; refusal to obey summons.

[Added 5-5-2014 by Ord. No. 01-14, effective 6-4-2014]

The Commission through its Chairman or a majority of the Commission may summon and require the testimony of any witness and require the production from any witness summoned of any paper or other thing which may be of value or interest in any hearing which is ordered by the Commission.

The Commission may seek from a court of competent jurisdiction an order compelling compliance with this section.