[HISTORY: Adopted by the Mayor and Council of Federalsburg 11-7-2022 by Ord. No. 2022-08.[1] Amendments noted where applicable.]
[1]
Editor's Note: This ordinance also repealed former Ch. 65,
Ethics, adopted 11-5-2012 by Ord.
No. 2012-14.
The provisions of this chapter apply to all Town elected officials,
employees, and appointees to boards and commissions of the Town of
Federalsburg.
In this chapter, the following terms have the meanings indicated.
The Federalsburg Ethics Commission established under this
chapter.
Any money or thing of value, regardless of form, received or
to be received by any individual covered by this chapter from an employer
for service rendered.
For the purposes of § 65-8 of this chapter, if lobbying is only a portion of a person's employment, "compensation" means a prorated amount based on the time devoted to lobbying compared to the time devoted to other employment duties.
Having or negotiating a contract that involves the commitment,
either in a single transaction or a combination of transactions, of
$5,000 or more of Town of Federalsburg controlled funds;
Being regulated by or otherwise subject to the authority of
the Town of Federalsburg; or
Being registered as a lobbyist under this chapter.
Ownership of any interest as the result of which the owner has
received, within the past three years, or is presently receiving,
or in the future is entitled to receive, more than $1,000 per year;
or
Ownership, or the ownership of securities of any kind representing
or convertible into ownership, of more than 3% of a business entity
by a Town official or employee, or the spouse of an official or employee.
The address of an individual's:
A spouse and dependent children.
A legal or equitable economic interest, whether or not subject
to an encumbrance or a condition, that is owned or held, in whole
or in part, jointly or severally, directly or indirectly.
For purposes of this chapter, "interest" includes any interest
held at any time during the reporting period.
"Interest" does not include:
An interest held in the capacity of a personal agent, custodian,
fiduciary, personal representative, or trustee, unless the holder
has an equitable interest in the subject matter;
An interest in a time or demand deposit in a financial institution;
An interest in an insurance policy, endowment policy, or annuity
contract under which an insurer promises to pay a fixed amount of
money either in a lump sum or periodically for life or a specified
period;
A common trust fund or a trust which forms part of a pension
or profit sharing plan which has more than 25 participants and which
has been determined by the Internal Revenue Service to be a qualified
trust under the Internal Revenue Code;
A college savings plan under the Internal Revenue Code; or
A mutual fund or exchange-traded fund that is publicly traded
on a national scale unless the mutual fund or exchange-traded fund
is composed primarily of holdings of stocks and interests in a specific
sector or area that is regulated by the individual's governmental
unit.
Communicating in the presence of a Town official or employee
with the intent to influence any official action of that official
or employee; or
Engaging in activities with the express purpose of soliciting
others to communicate with a Town official or employee with the intent
to influence that official or employee.
A person required to register and report expenses related to lobbying under § 65-8 of this chapter.
An elected official, an employee of the Town, or a person
appointed to or employed by the Town or any Town agency, board, commission,
or similar entity:
Includes an individual or business entity.
The sole residential property that an individual occupies
as the individual's primary residence, whether owned or rented
by the individual.
A spouse, parent, child, brother, or sister.
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.
A residential property that:
A.
There is a Town Ethics Commission that consists of three members
appointed by the Mayor and Council.
B.
The Commission shall:
(1)
Devise, receive, and maintain all forms required by this chapter;
(2)
Develop procedures and policies for advisory opinion requests and
provide published advisory opinions to persons subject to this chapter
regarding the applicability of the provisions of this chapter to them;
(3)
Develop procedures and policies for the processing of complaints
to make appropriate determinations regarding complaints filed by any
person alleging violations of this chapter; and
(4)
Conduct a public information program regarding the purposes and application
of this chapter.
C.
The Town Attorney shall advise the Commission.
D.
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,[1] for elected local officials.
[1]
Editor's Note: See now Title 5, Subtitle 8, Part II,
of the Annotated Code of Maryland.
E.
The Commission shall determine if changes to this chapter are required
to be in compliance with the requirements of State Government Article,
Title 15, Subtitle 8, Annotated Code of Maryland,[2] and shall forward any recommended changes and amendments
to the Town Council for enactment.
[2]
Editor's Note: See now Title 5, Subtitle 8, Part II,
of the Annotated Code of Maryland.
F.
The Commission may adopt other policies and procedures to assist
in the implementation of the Commission's programs established
in this chapter.
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 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 member of the Town Council 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)
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)
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 an entity acting on behalf of an association,
that is engaged only in representing counties or municipal corporations.
(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.
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 many not retaliate against an individual
for reporting or participating in an investigation of a potential
violation of the local ethics law or ordinance.
A.
Applicability; filing deadlines.
(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)
A candidate to be an elected official:
(a)
May file the statement required under § 65-5B(2)(a) of this chapter with the Town Clerk 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 § 65-5B(2)(b) and (c) with the Commission.
(4)
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 County Clerk or Board of Elections Supervisor, the candidate
is deemed to have withdrawn the candidacy.
(5)
The Town Clerk 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 Clerk or Board of Election Supervisors 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:
(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)
The Commission or office designated by the Commission shall not provide
public access to information related to consideration received from:
(6)
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.
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.
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.
F.
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 company, 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 item Subsection F(2)(b)[2] of this section 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 F(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 or from an association, or any entity
acting on behalf of an association that is engaged only in representing
counties or municipal corporations.
(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)
Relationship with University of Maryland Medical System, state or
local government, or quasi-governmental entity.
(a)
An individual shall disclose the information specified in General
Provisions Article of the Annotated Code of Maryland, § 5-607(j)(1),
for any financial or contractual relationship with:
(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.
G.
For the purposes of § 65-5F(1), (2), and (3) of this chapter, 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, 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 G(2)(a) of this section in which the business entity held a 25% or greater interest;
(c)
A business entity described in Subsection G(2)(b) of this section 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.
H.
Compliance 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 all appointed Town officials and all
employees who have decisionmaking and/or policy responsibilities,
or are involved in the commitment of municipal public funds.
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.
The Commission may grant exemptions and modifications to the provisions of §§ 65-3 and 65-4 of this chapter to employees and to appointed members of the Town Board of 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.
Any person who personally appears before any Town official, board
or employee, with the intent to influence that person in performance
with his or her official duties, and in connection with such intent,
expends or reasonably expects to expend in a given calendar year in
excess of $250 on food, entertainment or other gifts for such officials,
shall file a registration statement with the Commission not later
than January 15 of the calendar year or within five days after making
these appearances.
B.
The registration statement shall include complete identification
of the registrant and of any other person on whose behalf the registrant
acts, and the subject matter on which the registrant proposes to make
these appearances.
C.
Registrants under this section shall file a report within 30 days
after the end of any calendar year during which they were registered,
disclosing the value, date and nature of any food, entertainment or
other gift provided to a Town official or Town employee. When a gift
or series of gifts to a single official or employee exceeds $50 in
value, the official or employee shall also be identified.
D.
The registrations and reports filed pursuant to this section shall
be maintained by the Commission for four years as public records available
for public inspection and copying.
B.
Upon a finding of a violation of any provision of this chapter, the
Commission may:
C.
Petition for relief.
(1)
Upon request by the Commission, the Town Attorney may file a petition
for injunctive or other relief in the Circuit Court of Caroline County,
or in any other court having proper venue for the purpose of requiring
compliance with the provisions of this chapter.
(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:
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.
