Maryland Municipal League Fall Conference Marylands Revised Ethics

Maryland Municipal League Fall Conference Maryland’s Revised Ethics Law October 18, 2013

Legislative Origins • 1978 - Federal Ethics in Government Act enacted following the Nixon Watergate scandal • States also enacted laws applying to state and local officials • 1979 - Maryland Public Ethics Law enacted

What is the Purpose of the Law? • Helps officials/employees avoid improper influence and appearance of improper influence • Assures citizens of the impartiality and independent judgment of officials and employees • Requires officials/employees to disclose financial affairs and to meet minimum standards of ethical conduct

The 2010 Amendments • Modification to the requirements of the Public Ethics Law for local ethics laws adopted by counties, municipalities, and boards of education • Conflict of interest and financial disclosure laws applicable to elected local officials (candidates – financial disclosure only) and school board members must be equivalent to or exceed State requirements • County and municipal governments must certify compliance by October 1 each year

Public Ethics Law Financial Disclosure

Why Financial Disclosure? • • Annual opportunity to review employment and financial interests Public disclosure of possible conflicts of interest Demonstrate to public that interests are not hidden Allow voters to evaluate the suitability of candidates for office

When Filed? • Elected local officials: ü annually by April 30 th ü if appointed to fill a vacancy, within 30 days of appointment ü within 60 days of terminating service, covering preceding year and current year up to date service concluded • Candidates file at time of filing for office and by April 30 th each year thereafter until the election

What must Elected Local Officials disclose? • Interests in real property, wherever located • Interests in corporations, partnerships (e. g. stocks) whether or not they do business with the local gov’t • Interests in non-corporate businesses that do business with the local gov’t • Gifts (exceeding $20 or series of gifts totaling $100 or more) from persons doing business with local gov’t • Offices, directorships, salaried employment or similar interest (of the official or member of immediate family) in businesses that do business with the local gov’t • Debts owed to entities doing business with the local gov’t • Immediate family members employed by the local gov’t • Sources of earned income, to include salaried employment and business interests of employee and members of the immediate family

What must Local (non-elected) Officials and Employees disclose? Local (non-elected) officials and employees include decision makers and principal advisors (as identified by the local government) • Disclosure “may” be identical to that for elected local officials • As a minimum must report: ü Gifts received during previous calendar year from any person who contracts with or is regulated by the local gov’t (by date established in local law) ü Any employment or other interests that raise conflicts of interest or potential conflicts of interest in connection with a specific proposed action by the official or employee (sufficiently in advance to provide adequate disclosure to the public)

Can the Public access Financial Disclosure Statements? • YES! • Statements must be available for public inspection and copying

Precautions You Can Take Regarding Your Financial Disclosure Statement • If your jurisdiction provides, request to be notified if someone reviews your file • If you attach documents to your disclosure statement, black out personal information on end-of-year statements (soc. sec. #, account #, etc. )

AVAILABLE RESOURCES

What’s Next?

Annual Certification • Certify compliance with requirements for local elected officials annually by October 1 �Provide copy of local law if amended since previous approval by State Ethics Commission

Where do I go for Advice? • Contact your local ethics office • State Ethics Commission website http: //ethics. gov. state. md. us *** Remember: Local jurisdictions interpret their laws – not bound by State Ethics Commission interpretation of State Law