1. CHESTERTOWN PUBLIC ETHICS LAW OUTLINE
By Dr. Johnnie A. Jones III, Esq. Ethics Commission Chairman October, 2015

2. CHAPTER 12: PUBLIC ETHICS LAW
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

3. 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

4. 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

5. 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
Initiated by written complaint
Investigation (Subpoenas/Subpoena duces tecum)
Subpoenas (duces tecum)
Commission Attorney
Refer complaint for criminal investigation

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. IX. LOBBYING DISCLOSURE (Cont.)
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

17. 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

18. 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

19. 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

20. X. ENFORCEMENT (Cont.) Formal Hearings: Procedure by Mayor and Council
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

21. X. ENFORCEMENT (Cont.) Formal Hearing: Mayor and Council (Cont.)
Majority vote required for action
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

22. 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

23. 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

24. 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

25. X. ENFORCEMENT (Cont.) Conviction and Sentence Statute of Limitations
$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

26. 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

27. 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

28. 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