[HISTORY: Adopted by the Mayor and Town Council
of the Town of North Beach 1-1-2014 by Ord. No. 13-10. Amendments noted where applicable.]
This chapter may be cited as the "Town Public Ethics Ordinance."
[Amended 6-29-2021 by Ord. No. 21-01]
A. The provisions
of this chapter apply to all Town elected officials, employees, and
appointees to boards and commissions of the Town.
B. As used in
this chapter, the following terms shall have the meanings indicated:
DESIGNATED SECOND HOME
(1)
If an individual owns one second home, the individual's second
home; or
(2)
If an individual owns more than one second home, any one second
home the individual identifies to the Commission as the individual's
designated second home.
GIFT
The transfer of anything of economic value, regardless of
the form, without adequate and lawful consideration. "Gift" does not
include a political campaign contribution.
HOME ADDRESS
The address of an individual's:
(2)
Designated second home, if any.
PRINCIPAL HOME
The sole residential property that an individual occupies
as the individual's primary residence, whether owned or rented by
the individual.
SECOND HOME
A residential property that:
(1)
An individual occupies for some portion of the filing year;
and
(2)
Is not a rental property or a time share.
[Amended 6-29-2021 by Ord. No. 21-01]
A. There
is a North Beach Ethics Commission that consists of three members
appointed by the Mayor.
B. 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 General Provisions Article, Title 5, Subtitle 8, Annotated Code
of Maryland, for elected local officials.
C. The
Commission shall determine if changes to this chapter are required
to be in compliance with the requirements of General Provisions Article,
Title 5, Subtitle 8, Annotated Code of Maryland, and shall forward
any recommended changes and amendments to the Town Council for enactment.
D. The
Commission may adopt other policies and procedures to assist in the
implementation of the Commission's programs established in this chapter.
A. All Town elected officials, officials appointed to Town
boards and commissions subject to this chapter, and employees are
subject to this section.
B. 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.
(2) A person who is disqualified from participating under Subsection
B(1)(a) or
(b) 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.
(3) The prohibitions of Subsection
B(1)(a) and
(b) of this section do not apply if participation is allowed by regulation or opinion of the Commission.
C. 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, or 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.
D. 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.
E. 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.
F. Use
of prestige of office.
[Amended 6-29-2021 by Ord. No. 21-01]
(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, or 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.
(2) 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.
(3) 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 Annotated Code of Maryland.
(4) An elected official may not use public resources to solicit a contribution
as that term is defined in the Election Law Article of the Annotated
Code of Maryland.
(5) This subsection does not prohibit the performance of usual and customary
constituent services by an elected local official without additional
compensation.
G. 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.
[Added 6-29-2021 by Ord. No. 21-01]
(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;
[Amended 6-29-2021 by Ord. No. 21-01]
(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.
[Added 6-29-2021 by Ord. No. 21-01]
(4) Subsection
G(5) of this section does not apply to a gift:
[Amended 6-29-2021 by Ord. No. 21-01]
(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
G(4) of this section, an official or employee may accept the following:
[Amended 6-29-2021 by Ord. No. 21-01]
(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.
H. 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.
A. Applicability;
filing.
(1) This section applies to all local elected officials and candidates
to be local elected officials.
(2) Except as provided in Subsection
B 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:
(a) On a form provided by the Commission;
(b) Under oath or affirmation; and
(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) Individuals leaving office.
[1]
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.
[2]
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.
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) A candidate to be an elected official:
(a) May file the statement required under §
9-5B(2)(a) of this chapter with the Town Clerk or North Beach Board of Elections with the certificate of candidacy or with the Commission prior to filing the certificate of candidacy; and
(b) Shall file the statements required under §
9-5B(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 Clerk or North Beach
Board of Elections 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 Clerk or North Beach Board of Elections 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 Clerk or North Beach Board of Elections shall forward
the statement to the Commission or the office designated by the Commission.
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:
(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 address that the individual has designated as the individual's
home address.
[Added 6-29-2021 by Ord. No. 21-01]
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:
[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
E(2)(b)[2] 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
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:
[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 Town.
(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 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:
[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 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:
[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 Town does not regulate, exercise authority over, or contract
with the place of employment or business entity of the minor child.
[Amended 6-29-2021 by Ord. No. 21-01]
(c) For a statement filed on or after January 1, 2019, if the individual's
spouse is a lobbyist regulated by the Town, the individual shall disclose
the entity that has engaged the spouse for lobbying purposes.
[Added 6-29-2021 by Ord. No. 21-01]
(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 §
9-5G(1) and
(2) 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.
(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.
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:
the Town Clerk, the Town Treasurer and the Town Public Works Director.
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 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.
E. The Commission shall maintain all disclosure statements filed under this section as public records available for public inspection and copying as provided in §
9-5E and
F of this chapter.
The Commission may grant exemptions and modifications to the provisions of §§
9-4 and
9-6 of this chapter to employees and to appointed members of the Town of North Beach 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:
A. Constitute
an unreasonable invasion of privacy; and
B. Significantly
reduce the availability of qualified persons for public service.
A. The
Commission may:
(1) Assess a late fee of $2 per day, up to a maximum of $250, for failure to timely file a financial disclosure statement required under §
9-6 of this chapter;
(2) Issue a cease-and-desist order against any person found to be in
violation of this chapter.
B. Action
upon violation.
(1) Upon a finding of a violation of any provision of this chapter, the
Commission may:
(a) Issue an order of compliance directing the respondent to cease and
desist from the violation;
(c) Recommend to the appropriate authority other appropriate discipline
of the respondent, including censure or removal, if that discipline
is authorized by law.
C. Court
petition.
(1) Upon request by the Commission, the Town Attorney may file a petition
for injunctive or other relief in the Circuit Court for Calvert County,
or in any other court having proper venue, for the purpose of requiring
compliance with the provisions of this chapter.
[Amended 6-29-2021 by Ord. No. 21-01]
(2) The court may:
(a) Issue an order to cease and desist from the violation;
(b) Except as provided in Subsection
C(3) of this section, void an official action taken by an official or employee with a conflict of interest prohibited by this chapter 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
(c) Impose a fine of up to $5,000 for any violation of the provisions
of this chapter, with each day upon which the violation occurs constituting
a separate offense.
(3) 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.
D. In
addition to any other enforcement provisions in this chapter, a person
who the Commission or a court finds has violated this chapter:
(1) Is subject to termination or other disciplinary action; and
(2) 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.
E. A
Town official or employee found to have violated this chapter is subject
to disciplinary or other appropriate personnel action, including removal
from office, disciplinary action, suspension of salary, or other sanction.
F. A
finding of a violation of this chapter by the Commission is public
information.