CHESTERTOWN PUBLIC ETHICS
LAW OUTLINE
By
Dr. Johnnie A. Jones III, Esq.
Ethics Commission Chairman
October, 2015
CHAPTER 12: PUBLIC ETHICS LAW
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I. Short Title
II. Statement of Purpose and Policy
III. Definitions
IV. Administration
V. Rules of Procedure-Commission Meetings
VI. Prohibited Conduct and Interests
VII. Financial Disclosure-Elected Officials and Candidates
VIII. Financial Disclosure-Employees and Appointed Officials
IX. Lobbying Disclosure
X. Enforcement
XI. Penalties Cumulative
XII. Liberal Construction of Ordinance
XIII. Severability
II. PURPOSE AND POLICY
• Maintenance of Impartiality and Independent
Judgment of Public Officials
• Financial Disclosure Required to Guard Against
Improper Influence or The Appearance of
Improper Influence
III. DEFINITIONS
• Terms, Phrases, Words and Their Derivatives
Shall Have the Meanings Given In This Section
• Words Not Defined Shall be Given Their
Common and Ordinary Meanings Unless
Context Suggest Otherwise
IV. ADMINISTRATION
• Town Ethics Commission Created
• Advisory Body Responsible for Interpreting and
Advising Persons Subject to the Public Ethics Law (The
Law)
• On Advice of Commission Attorney, Is Responsible for
Hearing and Deciding Violations of the Law
• Complaint and Hearing Procedure
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Initiated by written complaint
Investigation (Subpoenas/Subpoena duces tecum)
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Subpoenas (duces tecum)
Commission Attorney
Refer complaint for criminal investigation
IV. ADMINISTRATION (Cont.)
• Grounds for Dismissal
– Insufficient facts
– No jurisdiction
– No authority to reverse or modify prior action of Mayor,
Mayor and Council or Public Servant
– Complaint is defective
– Respondent cured each allegation 15 days after notice
– No violation occurred
• Grounds for Formal Hearing
– Standard of proof: Clear and Convincing Evidence
– Written findings of fact, conclusions of law and order
required
IV. ADMINISTRATION (Cont.)
• Town Clerk Designated Custodian of the
Records and Serve as Recording Secretary
• Commission Shall Conduct Public Information
and Education Program Annually
• Issue Advisory Opinions Upon Request of
Public Servant
• Certify Compliance Annually to State Ethics
Commission on or before October 1 of Each
Calendar Year
V. RULES OF PROCEDURE –
COMMISSION MEETINGS
• Adoption of Written Rules
– Commission shall adopt written rules governing
procedures for holding meetings and hearings
subject to approval by the Mayor and Council
VI. PROHIBITED CONDUCT AND
INTERESTS
• Non-Participation at Meeting on Any Matter that is a
Conflict of Interest or Have the Appearances of
Impropriety
– Exceptions after disclosure: Permission by Commission;
Exercise of administrative or ministerial duty;
Disqualification creates less than a quorum for action or
prevents only person required to act
• Areas that Pose Potential Conflict of Interest
– Business interest, employee interest, financial interest
(Debtor/Creditor), solicitation or receipt of gifts, disclosure
of confidential information, ex parte contact
• Duty to Leave Meeting or Not Participate in
Deliberations
VI. PROHIBITED CONDUCT AND
INTERESTS (Cont.)
• Exemptions and Waivers
– Commission recommendation to Mayor and
Council to grant exemptions and waivers or make
modifications whereas application of this section
would constitute an unreasonable invasion of
privacy and would significantly reduce the
availability of qualified persons for public service,
and the recommendation would not be contrary
to the purposes of the Public Ethics Law
VII. FINANCIAL DISCLOSURE: ELECTED
OFFICIALS AND CANDIDATES
• Financial Disclosure Statement Required
• Incumbent Required to File Annually by April 30
of Each Calendar Year
• Appointed Officials Must File for Preceding Year
Within 30 Days of Appointment
• Officials Leaving Office Must File Within 60 Days
After Leaving Office
• Withdrawal of Candidacy if Candidate Fails to File
Within 20 Days of Withdrawal of Candidacy
Deadline After Notice Given by Town Clerk or
Board of Election Supervisor
VII. FINANCIAL DISCLOSURE: ELECTED
OFFICIALS AND CANDIDATES (Cont.)
• Financial Disclosure Statement is Public Record
– Notice of name and address given to official whose Financial
Disclosure Statement is copied
• Retention Requirement: Four (4) Years From Date of Receipt
• Contents
– Interests in: real property, corporations, partnerships, business entities
doing business with Town, gifts that exceeds $20 or series of gifts
exceeding $100 from person doing business with Town, employment
or indebtedness with business entities doing business with Town,
immediate family members employed by Town, sources of earned
income, schedule of additional interests
• Financial Disclosure Statements Review by Commission Attorney for
Compliance
• Failure of Official to File Financial Disclosure Statement May be
Grounds for Removal from Office
VIII. FINANCIAL DISCLOSURE:
EMPLOYEES/APPOINTED OFFICIALS
• Application of Section VIII
– Town Manager, Housing Administrator, Utilities Manager,
Recreation Commission Chairman, Members of the
Planning Commission, Members of the Historic District
Commission, and Members of the Board of Appeals
• Financial Statement Filed Annually on or before April
30 of Each Calendar Year
• Contents:
– Gifts received by town contractors and anyone regulated
by Town
– Outside employment and interest that raise a conflict or
potential conflict of interest
VIII. FINANCIAL DISCLOSURE:
EMPLOYEES/APPOINTED OFFICIALS
(Cont.)
• Exemptions or Modifications
– Available for Boards and Commissions for an
unreasonable invasion of privacy and would
significantly reduce the availability of qualified
persons for public service and does not violate
purpose of this section
IX. LOBBYING DISCLOSURE
• Lobbying Registration Statement Requirement
– Personal appearances before a Town Official or employee
with intent to influence performance of official duties
– Gift or gifts to Town Official or employee in a calendar year
that exceeds $250 on food, entertainment or other gifts
– Registration statement required on or before the later of
January 15 of the calendar year or within 5 days after first
performing the act requiring registration
– Contents require identity and identity of any agency
relationship and disclosure of identity of official or
employee receiving a gift or series of gifts that exceed
$250
IX. LOBBYING DISCLOSURE (Cont.)
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Exempt Acts
– Professional services consultation and drafting opinions on proposed or pending Town Council
action
– Appearances at request by Mayor and Council
– Actions trustee, administrator or faculty member of non-profit independent college or
university in State not primarily attempting to influence legislative or executive action
– Appearances as official duty of elected or appointed official on behalf of political subdivision,
State or United States
– Actions of publisher or working member of Media in ordinary course of business of
disseminating news or making editorial comment to general public and not engaged in further
or other lobbying for self-interest or employer interest
– Appearances by individuals invited by lobbyist to appear before Mayor and Council
– Religious organizations
– County and municipal lobbyist
– Principal not required to file if s/he reasonably believes agent has or will file
X. ENFORCEMENT
• Commission May Enforce Late Fees for
Financial Disclosure Statements and Lobby
Registration Statement or Lobbyist Report
– Late fee of $2 per day up to $250 for failing to
timely file financial disclosure statement
– Late fee of $10 per day up to $250 for failure to
timely file registration statement or lobbyist
report
• Issue Cease and Desist Order for Violations
X. ENFORCEMENT (Cont.)
• Remedies for Violations of Public Ethics Law:
Commission Action
– Issue order to cease and desist from violation
– Issue reprimand
– Recommend to appropriate authority or discipline via
censure or removal
– Violation of Section 9 (IX)
• Require Lobbyist to file additional reports or information
• Impose fine not exceeding $5,000 for each violation
• Suspend registered Lobbyist for willful violation or if s/he has been
convicted of criminal offense arising from lobbying activities
– Recommend removal or suspension from office to Mayor
and Council
X. ENFORCEMENT (Cont.)
• Remedies for Violations of Public Ethics Law:
Mayor and Council Action
– Reprimand
– Conduct hearing
– Remove public official from office for failure to
timely file financial disclosure statement
X. ENFORCEMENT (Cont.)
• Formal Hearings: Procedure by Mayor and
Council
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Due Process: Twenty day notice of hearing
Rules of Evidence applies
Right to fair hearing and cross examination
Right to counsel and discovery (exculpatory evidence)
Subpoena power (duces tecum)
Request Maryland Comptroller permission to examine
income tax returns of Respondent
X. ENFORCEMENT (Cont.)
• Formal Hearing: Mayor and Council (Cont.)
– Majority vote required for action
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Public admonition
Public reprimand
Suspension
Demotion
Forfeiture
Removal from office
Termination of employment
Issue cease and desist order
– Direct Commission Attorney to file petition for injunctive
order of relief in Circuit Court for Kent County requiring
compliance with Public Ethics Law
X. ENFORCEMENT (Cont.)
• Circuit Court Action
– Issue order to cease and desist
– Void an official action by public servant with conflict
of interest
• Exceptions
– Appropriation of Public funds
– Levying taxes
– Providing issuance of bonds, notes or other public activity
– Impose a fine up to $5,000 each day for violation
– Additional sanctions
• Enforce employment termination or other disciplinary action
X. ENFORCEMENT (Cont.)
• Three (3) Year Personal Record Retention
Requirement From Date of Filing
• Duties of All Public Servants
– Cooperate and respond to any inquiries by Town
Attorney, the Commission or the Commission
Attorney in Connection With An Ethics Violation
Investigation
– Duty to report any ethical violation
– Duty to comply with other laws
X. ENFORCEMENT (Cont.)
• Violations of Public Ethics Law
– Criminal convictions or violation of policies regulating political activity
– Conviction of any felony and misdemeanors involving moral turpitude
– Finding of guilt of violating Federal, State or Town law prohibiting
discrimination against a protected class
– Finding of guilt for sexual harassment in Federal, State or Town law
– Found guilty of retaliation
– Found guilty of violating any state law governing lobbying activities
– Found guilty of violating any Federal, State or Town laws or policies
regulating political activity
– Criminal Misdemeanor Offense for any person who knowingly and
wilfully violate Section 9 (IX. Lobbying Disclosure) of Public Ethics Law
X. ENFORCEMENT (Cont.)
• Conviction and Sentence
– $5,000 fine, and/or;
– 1 year jail
• Statute of Limitations
– 1 year after complaint filed
– 6 months (180 days) to file complaint for violation
XI. PENALTIES CUMULATIVE
• Penalties Shall Be Cumulative and not
Exclusive of Each Other or of Any Other
Penalties Which May be Imposed to Any Other
Laws or Policies
XII. LIBERAL CONSTRUCTION OF
ORDINANCE
• Provisions of This Ordinance Are to be
Construed Liberally to Protect the Public
Interests and Consistent to All Applicable
Federal and State Laws and Applicable
Provisions of the Town Charter
XIII. SEVERABILITY CLAUSE
• Conflicting Provision of this Chapter Shall be
Considered a Separate, Distinct and
Independent Part of this Chapter and Shall
Not Affect the Validity and Enforceability of
this Chapter as a Whole, or Any Part Other
Than the Part Declared to be Invalid