Agenda Item 4B
July 29,2014
Introduction
Corrected copy
MEMORANDUM
TO:
FROM:
SUBJECT:
County Council
~iChael
Faden, Senior Legislative Attorney
Introduction:
Bill 39-14, Ethics - Amendments
Bill 39-14, Ethics - Amendments, sponsored by the Council President at the request of
the Ethics Commission, is scheduled to be introduced on July 29, 2014. A public hearing is
tentati vely scheduled for September 16 at 1:30 p.m.
Bill 39-14 would revise certain provisions of the County ethics law governing financial
disclosure and solicitation and acceptance of gifts to meet certain requirements of state law. See
the transmittal letter from the Ethics Commission for details (©37).
This packet contains:
Bill 39-14
Legislative Request Report
Transmittal memo from Ethics Commission
F:\LA W\BILLS\l439 Ethics Law Update\lntro Memo.Doc
Circle #
1
36
37
 PDF to HTML - Convert PDF files to HTML files
CORRECTED COPY
Bill No.
39-14
Concerning: Ethics - Amendments
Revised: 7-28-14
Draft No. 2a
Introduced:
July 29, 2014
Expires:
January 29, 2016
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ __
Sunset Date: _ _ _ _ _ _ __
ChI _ _,
Laws
of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President at the request ofthe Ethics Commission
AN
ACT
to:
(1)
(2)
revise certain provisions of the County ethics law governing financial disclosure and
solicitation and acceptance of gifts to meet certain requirements of state law; and
generally update and amend the County ethics law.
By amending
Montgomery County Code
Chapter 19A, Ethics
Sections 19A-4, 19A-16, 19A-17, 19A-18, 19A-19, and 19A-20
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface bracketsD
* * *
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment,
Existing law unqffected by bill.
The County Council for Montgomery County, Maryland approves the following Act,·
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
39-14 (CORRECTED COpy)
1
Sec.
1.
Sections 19A-4, 19A-16, 19A-17, 19A-18, 19A-19, and 19A-20 are
amended as follows:
19A-4.
Definitions.
2
3
4
Unless the context clearly indicates otherwise, the following words have the
following meanings:
5
6
7
* *
Cj)
*
Interest
or
economic interest
means any source of income or any other
8
9
10
11
12
legal or equitable economic interest, whether or not the interest is
subject to an encumbrance or a condition, which is owned or held in
whole or in part, jointly or severally, and directly or indirectly. Interest
does not include:
(1)
an interest in a time deposit or demand deposit in a fmancial
institution or in a money market fund with assets of at least
$10,000,000;
13
14
15
16
(2) an interest in an insurance policy, endowment policy, or annuity
contract under which an insurance company promises to pay a
ftxed number of dollars either in a lump sum or periodically for
life or some other specified period; [or]
(3) an interest in a deferred compensation plan that:
(A) has more than 25 participants; and
(B) the Internal Revenue Service has determined qualiftes
under section 457 ofthe Internal Revenue Code; [or]
(4) an interest in a common trust fund or a trust that forms part of a
pension plan or proftt-sharing plan that:
(A) has more than 25 participants; and
(B) the Internal Revenue Service has determined to be a
qualifted trust or college savings plan under the Internal
-2-
f:\law\bills\1439 ethics law update\bill2a comn corrected.doc
17
18
19
20
21
22
23
24
25
26
27
 PDF to HTML - Convert PDF files to HTML files
BILL No.
39-14
(CORRECTED COpy)
28
29
30
31
32
. 33
34
35
36
37
19A-16.
38
39
40
41
42
43
44
Revenue Code;
[and]
or
(5) an interest in a mutual fund [(including a closed-end fund and a
unit investment trust) regulated by the Securities and Exchange
Commission, in which the investor does not control the purchase
or sale of the individual securities the fund holds] that is publicly
traded on
~
national scale unless the mutual fund is composed
primarily of holdings of stocks and interests in
~
specific sector or
area that is regulated
Qy
the individual's governmental unit.
*
*
Soliciting or accepting gifts.
*
(a)
A public employee must not solicit
[a]
any gift [to the employee or
another person or organization:
(1)
from any business or person who:
(A) is registered or must register as a lobbyist;
(B) does business with the County agency with which the public
employee is affiliated; or
(C) is, or owns or operates a business that is, regulated by the
County agency with which the public employee is
affiliated;
(2) during official work hours, or at a County agency, or from any other
public employee who is supervised directly or indirectly by the
public employee;
(3) while wearing all or part of an official uniform of a County agency,
or while otherwise identifiable as a public employee;
(4) for the employee's own benefit, unless the Ethics Commission
approves the solicitation; or
45
46
47
48
49
50
51
52
53
-3-
f:\Jawlbills\1439 ethics law update\bill2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
39-14 (CORRECTED COpy)
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
[(b)
(5) with the intent of affecting or offering to affect any action by a
County agency].
However, a public employee may solicit a gift:
(1)
from public employees during official work hours, or at a County
agency, for a charitable drive that is approved by the County
Executive or (for public employees of the legislative branch) the
President of the Council, when the solicitation is part of the
public employee's official duties;
(2)
from any person to a charitable organization, as defined in the
state law regulating public charities, or a municipality, if the
public employee does not solicit gifts primarily from those
persons who do business with or are regulated by the county
agency with which the public employee is affiliated, or from
other employees who are supervised directly or indirectly by the
public employee;
(3)
from any person, during official work hours, while identifiable as
a public employee, or at a County agency, for the benefit of a
County agency or a nonprofit organization formally cooperating
on a program with a County agency if the solicitation is
authorized by the CountY Executive or (for public employees of
the legislative branch) the President of the Council in an order
printed in the County Register that designates:
(A)
the public employee authorized to solicit the gift;
the purpose for which the gift is sought;
the manner in which the gift may be solicited;
the persons or class of persons from whom gifts may be
solicited; and
-4-
f:\law\bills\1439 ethics
law
update\bill2a comn corrected.doc
(B)
(C)
(D)
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
39-14
(CORRECTED COpy)
81
(E)
(4)
the type ofgifts that may be solicited;
82
83
while wearing all or part of a unifonn of the corporation, to a
nonprofit fire or rescue corporation of which the public employee
is a member; or
84
85
86
(5)
from any person to a charitable organization, as defined in the
state law regulating public charities, while identifiable as an
elected official, if the employee lists in a supplement to each
annual financial disclosure statement each organization to which
the employee solicited a contribution during that year.]
87
88
89
90
91
92
{hl
A public employee must not directly solicit or facilitate the solicitation
of
~
gift,.
on behalf of another person, from an individual regulated
lobbyist.
(c)
A public employee must not knowingly accept a direct or indirect gift
from any individual or organization that the public employee knows or
reasonably should know:
(1)
is registered, or must register, as a lobbyist on a matter that is or
could be considered by the County agency with which the public
employee is affiliated;
(2)
does or seeks to do business.1t regardless of amount, with the
County agency with which the public employee is affiliated;
(3)
owns or operates a business that is regulated by the County
agency with which the public employee is affiliated; or
(4)
has an identifiable economic interest that is different from that of
the general public, which the public employee may substantially
affect in performing the public employee's official duties.
(d)
Subsection (c) does not apply to:
93
94
95
96
97
98
99
100
101
102
103
104
105
106
-5-
f;\law\bilis\1439 ethics law updatelbill2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 39-14
(CORRECTED
COpy)
107
108
109
(1)
meals and beverages consumed in the presence of the donor or
sponsoring entity at
f!
function attended
Qy
at least 20 persons
QI.t
if fewer than 20 persons attend, meals and beverages consumed
in the presence of the donor or sponsoring entity which do not
exceed $50 in value from the same source in any calendar year;
110
111
112
113
114
115
116
117
118
119
(2)
ceremonial gifts or awards [with a resale] that have insignificant
monetary value [of $100 or less, if the gift or award
commemorates an event or achievement associated with the
public employee];
(3)
[items of personal property, other than cash, worth less than $10;]
unsolicited gifts of nominal value that do not exceed $20 in cost,
or trivial items of informational value;
(4)
reasonable expenses for food, travel, lodging, and scheduled
entertainment of the public employee, given in return for the
public employee's participation in a panel or speaking at a
meeting;
120
121
122
123
124
125
126
127
128
129
130
(5)
gifts to an elected official, [or that official's designee who is
assigned to represent the official at an event included in this
paragraph,] if the gift:
(A)
is a courtesy extended to the office; and
consists of tickets or free admission for the [employee and
one guest] elected official to attend a charitable, cultural,
[civic, labor, trade, sports,] or political event, including
meals and beverages served at the event;
(B)
131
132
133
(6)
any item that is solely informational or of an advertising nature,
including a book, report, periodical, or pamphlet, if the resale
value ofthe item is [$25] $20 or less;
-6-
f:\Iaw\bills\1439
ethics
law update\bill2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 39-14
(CORRECTED COpy)
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
15.0
151
152
153
154
155
156
157
158
159
160
(7)
(8)
gifts from a relative;
honoraria [or awards for achievement] for speaking to or
participating in
~
meeting if the offering of the honorarium is not
related to the employee's official position; or
(9)
a specific gift or class of gifts which the Commission exempts
from this Section after finding in writing that accepting the gift or
class of gifts is not detrimental to the impartial conduct of the
business of a County agency.
(e)
Subsection (c) does not apply to unsolicited gifts to a County agency.
A public employee who receives a gift that the public employee must
not accept under this Section must report the gift to the Commission, if
otherwise required to report it, and return the gift to the donor or transfer
the gift to the County. [lfthe unacceptable gift is a perishable item, the
employee, instead of transferring the gift to the County, may transfer it
to a charitable or educational organization that can make timely and
effective use of the gift, so long as the employee is not an officer,
director, trustee, partner, or employee ofthe receiving organization.]
(f)
19A-17.
Who must file a financial disclosure statement.
under oath:
[(1)] weach incumbent and candidate for:
[(A)]
ill
County Executive; and
[(B)]
ill
County Council;
[(2)]
(Q)
the following public employees:
[(A)]
[(a)] The following persons must file a public financial disclosure statement
ill
Chief Administrative Officer and any Deputy or
Assistant ChiefAdministrative Officer;
[(B)]
ill
special assistants to the County Executive;
- 7-
f:1Jaw\bills\1439 ethics law update\bill2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 39-14
(CORRECTED COpy)
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
[(C)]
ill
director and deputy director of each department,
principal office, and office in the County government;
[(D) any officer holding a position designated by law as a non­
merit position;]
ffi
each Hearing Examiner
in
the Office of Zoning and
Administrative Hearings;
[(E)]
ill
members ofthe County Board of Appeals;
[(F)
(Q)
members ofthe Commission; and]
each member of the Fire and Emergency Services
Commission, Board of License Commissioners, Revenue
Authority, and Housing Opportunities Commission;
[(G)]
ill
members ofthe Merit System Protection Board;
ill
(2)
the Council Administrator and the Deputy Council
Administrator, if any;
each Senior Legislative Analyst, Legislative Analyst,
Senior Legislative Attorney, and Legislative Attorney for
the County Council;
Qill
the Legislative Information Officer for the County
Council;
aD
@
each Senior Legislative Analyst and Legislative Analyst in
the Office of Legislative Oversight;
each Legislative Senior Aide III for the County Council;
.Ql)
the Inspector General;
[(3)]
(1±}
any person who is appointed to serve
in
an acting
capacity in any position listed in the preceding paragraphs
while the position is vacant; and
-8-
f:1Jaw\bUIs\1439 ethics law update\bUl2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
Bill
No. 39-14
(CORRECTED
COpy)
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
ill
the following public employees, if not already required to file under this
Section:
ill
ill
any employee in the Management Leadership Service;
any paid member of any board, commission, or committee of
County government, and any other member of
~
board,
commission, or committee of County government who the Chief
Administrative Officer designates; and
ill
any other public employee in the Executive branch of County
government designated
Qy
the Chief Administrative Officer, and
any public employee in the legislative branch of County
government designated
Qy
the Council Administrator.
[(4)
any other public employee in the Executive branch, or in the
Revenue Authority, Board of License Commissioners, or
Housing Opportunities Commission, including any person listed
in subsection (b), who the County Executive designates by
regulation issued under method (2) after fmding that filing a
public financial disclosure statement will promote trust and
confidence in County government;]
[(5)
any other public employee in the legislative branch including the
County Board of Appeals, and in the Merit System Protection
Board, including any person listed in subsection (b), who the
Council designates by resolution after fmding that filing a public
financial disclosure statement will promote trust and confidence
in County government; and]
[(6)
the members ofa board, commission, committee, or similar body
in the Executive branch, or of the Revenue Authority, Board of
License Commissioners, or Housing Opportunities Commission,
-9-
t\lawlbills\1439 ethics law update\bill2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
BILL No.
39-14
(CORRECTED COpy)
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
which the County Executive designates by regulation issued
under Method (2) or any public employee in the legislative
branch, including the County Board of Appeals, and in the Merit
System Protection Board, who the Council designates by
resolution, after finding that filing a limited public financial
disclosure statement will promote trust and confidence in County
government.
The fmancial disclosure required under this
paragraph must be limited to information concerning any
economic interest or gift that may create a conflict between the
employee or member's personal interests and official duties. The
Commission must adopt a regulation specifying the information
that must be disclosed. A public employee who files a limited
public financial disclosure statement under this paragraph must
also file a confidential financial disclosure statement if required
to do so under subsection (b). A public employee need not file a
limited public fmancial disclosure statement under this paragraph
if the employee already is required to file a public financial
disclosure statement.]
[(b)
The following persons must file a confidential financial disclosure
statement under oath:
(1)
(2)
(3)
(4)
(5)
Assistant Chief Administrative Officers;
attorneys in the Office ofthe County Attorney;
Hearing Examiners;
Members ofthe Fire and Emergency Services Commission;
paid members of any board, commission, committee, or authority
of County government, including members of the Board of
- 10 -
t~aw\bi!I$\1439
ethics
law
update\bi!l2a comn
correded.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
39-14 (CORRECTED COpy)
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
License Commissioners, the Revenue Authority, and the Housing
Opportunities Commission;
(6)
any public employee in the Executive branch, or in the Revenue
Authority, Board of License Commissioners, or Housing
Opportunities Commission, who the County Executive designates
by regulation issued under method (2) after finding that filing a
confidential financial disclosure statement will promote trust and
confidence in County government; and
(7)
any public employee in the legislative branch including the
County Board of Appeals, and in the Merit System Protection
Board, who the Council designates by resolution after finding
that filing a confidential fmancial disclosure statement will
promote trust and confidence in County government.]
[(
c)]
@
In
designating other public employees to file [public or confidential]
fmancial disclosure statements [under subsection (a)(4) or (bX6)], the
[Executive should]
Chief Administrative Officer and Council
Administrator respectively must include those employees [who have
substantial responsibility for one or more of the following functions]
whose duties and responsibilities are likely to substantially affect private
interests and require significant participation through decision or the
exercise of significant judgment, and without substantial supervision
and review, in taking
~
government action regarding:
(1)
(2)
(3)
(4)
(5)
contracting or procurement;
administering grants or subsidies;
land use, planning and zoning;
regulating, licensin& or inspecting any business;
other decisions with significant economic impact; and
- 11 -
f:\law\bills\1439 ethics law update\bill 2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
39-14 (CORRECTED COpy)
267
268
269
270
271
272
273
274
275
276
277
278
279
280
281
282
283
284
285
286
287
288
289
290
291
292
293
[(c)
[(b)
19A-18.
(6)
(7)
[(d)
law enforcement[; and
controlling access to confidential information].
The Executive and Council, respectively, must annually review the list
of employees designated under subsections (a)(4), (a)(5), (a)(6), (b)(7),
and (b)(8) for compliance with the purposes ofthis Article.]
Financial disclosure statement; procedures.
[(a)
(l)
Each public employee required to file a public fmancial
disclosure statement under subsection 19A-17(a) must file the
statement under oath by April 15 of each year for the previous
year.
(2)
Any person nominated by the County Executive to hold any
office listed in paragraph 19A-17(a)(2) must file the statement
before the Council confirms the appointment.
(3)
If the Council makes an appointment to any office listed in
paragraph 19A-17(a)(2), the applicant must file the statement as
part ofthe application for the position.]
Unless a statement has been filed under subsection (a), each candidate
for an office listed in paragraph 19A-17(a)(l) must file with the Board
of Supervisors of Elections a financial disclosure statement under oath
for the year before the year in which the certificate of candidacy is filed.
The statement must be filed with the certificate of candidacy.]
If a certificate of candidacy is filed before January 1 of the year in
which the election is held, the candidate must file a supplemental
fmancial disclosure statement under oath for the year before the year in
which the election is held. The supplemental statement must be filed
with the Board of Supervisors of Elections on or before the last day to
withdraw a candidacy. The Board of Supervisors of Elections must
- 12 -
f:\law\bills\1439 ethics law update\bill2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
39-14 (CORRECTED COPY)
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308
309
310
311
notify each candidate of this obligation to file a supplemental fmancial
disclosure statement at least 20 days before the last day to withdraw a
candidacy. If the candidate fails to file a timely supplemental statement,
the candidacy is withdrawn.]
[(d)
The Board of Supervisors of Elections must not accept a certificate of
candidacy or certificate of nomination unless a financial disclosure
statement in proper form has been filed. Within 30 days after receiving
a statement, the Board must forward the statement to the Commission to
be retained under this Chapter.]
[(e)
(1)
(A)
Any person required to file under subsection 19A-17(b)
must file a fmancial disclosure statement under oath with
each director of a County agency with which the person
was affiliated during the reporting period. Any person
required to file under subsection 19A-17(b) who is not
supervised by a director must file a financial disclosure
statement under oath with the Chief Administrative
Officer.
(B)
The statement must be filed by April 15 for the previous
year.
(C)
The director or the Chief Administrative Officer must
review the statement to see if:
(i)
(ii)
the answers are complete;
there is any conflict of interest with the person's
official duties; and
(iii)
(D)
there is any potential conflict of interest.
312
313
314
315
316
317
318
319
320
The Chief Administrative Officer may designate the head
of a County agency to review a statement. A director of a
- 13 -
f:\law\bills\1439 ethics law update\bill 2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
39-14
(CORRECTED COpy)
321
322
323
324
325
326
327
328
329
330
331
332
333
334
335
336
337
338
339
340
341
342
343
344
345
346
347
County agency or the Chief Administrative Officer may
designate the deputy director ofthe agency or the chief of a
division of the agency to review a statement. The
designator must inform the Commission of the delegation.
The designee is subject to the same rules of confidentiality
as the designator.
(2)
After certifying that each part of the statement has been
completed and that, on the basis of the information reported,
there is no conflict of interest or potential conflict of interest with
the filer's official duties, the agency director or Chief
Administrative Officer must forward the statement to the
Commission within 30 days after receiving it. The agency
director or the Chief Administrative Officer may retain a copy of
the statement for one year after forwarding it to the Commission.
If asked by an agency director, the Chief Administrative Officer,
the County Executive, a Council member, or the filer of the
statement, the Commission must review any statement within 120
days after receiving it.
(3)
The Commission, the Chief Administrative Officer, the County
Executive, a member of the County Council, the County
Attorney, the Director of the Office of Legislative Oversight, the
filer of the statement, or their designees, may review a statement
at any time. A designee must be appointed in writing and is
subject to the same rules of confidentiality as the designating
party.
(4)
Any confidential fmandal disclosure statement filed under this
Chapter must not be made available to the public for
- 14 ­
t\law\bills\1439
ethics
law
update\bi1l2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 39-14
(CORRECTED COpy)
348
349
350
351
352
353
354
355
356
357
358
359
360
361
362
363
364
365
366
367
368
369
370
371
372
373
374
examination. The Commission must retain each statement for 6
years. After the 6-year period expires, the Commission must
destroy each statement unless the Commission determines that
the statement is needed to resolve an investigation or complaint.]
[(f)
Each public employee required to file an annual financial disclosure
statement under Section 19A-17 must also file a fmancial disclosure
statement:
(1 )
within 15 days after the employee begins employment in a
position covered by Section 19A-17, covering the current
calendar year up to the date of filing and, unless the employee has
already filed a statement for the previous year, the previous
calendar year; and
(2)
before the employee leaves a position covered by Section 19A­
17, unless the employee has taken another position covered by
Section 19A-17. The Director of Finance must not issue an
employee's fmal paycheck until the employee has filed a
statement required by this paragraph. Any statement filed under
this paragraph must be treated and reviewed as if it were an
annual statement, except that it need only report on the period
after the employee's last previous annual statement, if any.]
[(g)
The Commission must make available each statement filed under
subsection 19A-17(a) for examination and copying during normal office
hours. The Commission may charge reasonable fees and adopt
procedures for examining and copying statements.]
[(h)
The Commission must provide forms for filing fmancial disclosure
statements. Forms should be made available no later than January 1
each year.]
- 15 -
f:\law\bills\1439 ethics law update\bill2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 39-14
(CORRECTED COpy)
375
376
377
378
379
380
381
382
383
384
385
386
387
388
389
390
391
392
393
394
395
396
397
398
399
400
[(i)
A person must not use any financial disclosure statement required under
this Chapter for commercial purposes.]
(0)
A fmancial disclosure statement is filed under oath if the person signs a
declaration that the financial disclosure statement is made under the
penalties ofperjury.]
ill
Each public employee required to file
~
public financial disclosure
~
statement under Section 19A-17 must file
fmancial disclosure
statement in the system established .Qy the Chief Administrative Officer
under subsection (h):
ill
ill
.Qy Aprilli of each year ifthat person was
~
filer at the end of the
previous calendar year, covering the year just ended;
within li days after
~
public employee begins employment in
~
position covered .Qy Section 19A-17, covering the prior year and
the current year
!!l2
to the date of filing;
ill
before an employee leaves
~
position covered.Qy Section 19A -17,
unless the employee has taken another position covered .Qy
Section 19A-17. The Director of Finance must not issue an
employee's final paycheck until the employee has filed
~
statement required .Qy this paragraph. Any statement filed under
this paragraph must cover the period since the employee's last
filed statement;
ill
before the Council confrrms the appointment of any person
nominated .Qy the County Executive
to
hold any office listed in
subsection 19A-17
(b),
covering the prior year and the current
year
!!l2
to the date of filing. Any person required to file
~
report
under this paragraph need not file
~
report under paragraph
ill
- 16 -
f:\law\bills\1439 ethics law update\bill2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 39-14
(CORRECTED COpy)
401
402
403
404
405
406
407
408
409
410
411
unless 90 days has passed since the filing of the report under this
paragraph; and
ill
as part of the application for .§. Council-appointed office listed in
subsection 19A-17(b), covering the prior year and the current
year
yp
to the date of filing. Any person required to file .§. report
under this paragraph need not file .§. report under paragmph
ill
unless 90 days has passed since the filing of the report under this
paragraph.
(Q)
Each candidate for an office listed in subsection 19A-17(a) must file
with the County Board of Elections .§. financial disclosure statement
covering the prior year and the current year
yp
to the date of filing the
candidate's certificate of candidacy. The statement must be filed with
the certificate of candidacy or certificate of nomination. The County
Board of Elections must not accept .§. certificate of candidacy or
certificate of nomination unless .§. fmancial disclosure statement in
proper form has been filed.
If.§. statement has been filed under
subsection
hl
then the statement required
J2y
this subsection need only
cover the current year
YJ2
to the date of filing the certificate of candidacy
or nomination.
412
413
414
415
416
417
418
419
420
421
422
423
424
425
426
(£)
If at the end of .§. calendar year in which .§. candidacy is pending and no
election has occurred, the candidate must file .§. financial disclosure
statement with the County Board of Elections covering the year just
ended.
The statement must be filed on or before the last day to
withdraw.§. candidacy. The County Board ofElections must notify each
candidate of this obligation to file the financial disclosure statement at
least 20 days before the last day to withdraw .§. candidacy.
If the
- 17 -
f:\law\bills\1439 ethics law upclate\bill2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 39-14
(CORRECTED COpy)
427
428
429
430
431
432
433
434
435
436
437
438
439
440
441
442
443
444
445
446
447
448
449
450
451
452
453
candidate does not file
£!
timely statement under this subparagraph, the
candidacy is withdrawn
Qy
operation oflaw.
@
The County Board of Elections must not accept
£!
certificate of
candidacy or certificate of nomination unless the candidate has filed
£!
fmancial disclosure statement in proper form.
W
ill
CA)
Any person, other than
£!
candidate for elective office, who
is required to file under Section 19A-17, must file
£!
fmancial disclosure statement in an electronic system set
yp to receive and administer financial disclosure reports.
The filer must certify that each statement was made to the
best of the filer's knowledge and belief.
ill)
The Chief Administrative Officer must review each
statement for filers in the Executive Branch, and the
Council Administrator must review each statement for
each filer in the Legislative Branch, to see if:
ill
(ii)
the answers are complete; and
there are conflicts or potential conflict of interests
with the filer's official duties.
tid
For each filer who is an incumbent under Section 19A­
17(a}, the Chief Administrative Officer must review each
statement for the position of County Executive and the
Council Administrator must review each statement for
each member of the County Council.
ill)
For departments and offices in the Executive Branch, the
Chief Administrative Officer may designate the head of
g.
department or office to review
g.
statement. For offices of
the Legislative Branch, the Council Administrator may
- 18 -
f:\law\bills\1439 ethics law update\bill 2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
BILL No. 39-14 (CORRECTED COpy)
454
455
456
457
458
459
460
461
462
463
464
465
466
467
468
469
470
471
472
473
474
475
476
477
478
designate the head of an office to review
director of
~
~
statement. A
County department or office or the Chief
Administrative Officer or the Council Administrator, as
appropriate, may designate the deputy director of the
department or the chief of
~
division to review
~
statement.
Each designation must
be
reported to the Chief
Administrative Officer or the Council Administrator, as
appropriate, and to the Commission. The reviewer may
seek the advice of public employees familiar with the
filer's official responsibilities, including the filer's
supervisor, in evaluating the report under subparagraph
ill1
ill
Each reviewer must certify within 30 days that the statement has
been completed and, on the basis of the infonnation reported,
there is no conflict of interest or potential conflict of interest with
the filer's official duties. If
~
reviewer cannot so certify or has
identified
~
conflict of interest or potential conflict of interest, the
reviewer must immediately notify the Commission and the Chief
Administrative Officer for an employee of the Executive Branch
and the Council Administrator for an employee of the legislative
branch that the reviewer is unable to certify the statement.
ill
The Commission must make available each statement filed under this
Article for examination and copying during normal office hours. The
Commission may charge reasonable fees and adopt procedures to
examine and
£QPY
statements.
- 19 -
f:\Jawlbills\1439 ethics law updatelbill2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
39-14
(CORRECTED COPY)
479
480
481
482
483
484
485
486
487
488
489
490
491
492
493
494
495
496
497
498
499
500
501
(g)
The Commission must make available the electronic form for filing
annual financial disclosure statements
12y
the first business day of each
calendar year.
.Qi}
The Chief Administrative Officer must establish and maintain an
electronic system to facilitate filing of and public access to financial
disclosure statements required under this Article. Any electronic system
must report, current to
within
one business day, an accurate list of each
public employee required to file
£!
statement under Section 19A-17,
whether the employee is required to file under subsections 19A-17Ca),
!J21
or
i£1
and include the employee's position, necessary contact
information, the reviewer, and whether the report is an initial, annual, or
final report. This list must be current and correspond to personnel
records and records of memberships in boards, committees and
commissions. Any electronic system must be able to generate reports
upon request of the Chief Administrative Officer, the Council
Administrator, or the Commission detailing who is required to file and
the current state of compliance
12y
public employees with financial
disclosure filing and review requirements under this Article.
The
County Executive must annually, or more frequently as requested,
provide the
list
of employees designated to file financial disclosure
reports to the Council.
The Commission must make all necessary
accommodations for any person who does not have access to the
electronic system.
502
503
ill
ill
A person must not use any financial disclosure statement required under
this Chapter for commercial purposes.
The Commission must retain each [mancial disclosure statement filed
under this Article for
504
505
.1
years. For each filer filing under subsection
- 20 -
f:\law\bills\1439 ethics law update\bi1l2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
BILL No. 39-14 (CORREClED Copy)
506
507
508
509
19A-17(a). the retention period must be at least .Q years, after which
each record must be archived.
19A-19.
Content
of financial
disclosure statement.
[The financial disclosure statement required under Section 19A-17 must
disclose the following information about the filer for the previous year:]
[(a)
all economic interests in any real property, including leasehold interests
and interests in oil, gas, or mineral royalties or leases, if the property is
located in Montgomery County, Prince George's County, Howard
County, or Frederick County, Maryland; the District of Columbia; or
Fairfax County or Loudoun County, Virginia. The filer must specify:
510
511
512
513
514
515
516
(1 )
the nature of each property, and its location by street address,
mailing address, or legal description;
517
518
(2)
the nature and extent of the interest held, and any applicable
conditions and encumbrances;
519
520
521
522
523
524
525
526
(3)
(4)
how, when, and from whom the interest was acquired;
the nature and amount of the consideration given in exchange for
the interest. If the interest was not acquired by purchase, the filer
must provide the fair market value of the interest when it was
acquired;
(5)
if an interest was transferred during the previous year:
(A)
(B)
(C)
the interest transferred;
the nature and amount ofthe consideration received; and
to whom the interest was transferred; and
527
528
529
530
531
532
(6)
[(b)
the name of any other person with an interest in the property;]
all economic interests in any business.
In
this subsection, business does
not include an agency or instrumentality of federal, state, County, or
local government. The filer must specify:
- 21 -
t\law\bills\1439 ethics law update\bill2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
BILL No. 39-14 (CORRECTED COpy)
533
534
535
536
537
538
539
540
541
542
543
544
545
546
547
548
549
550
551
552
553
554
555
556
557
(1)
the name of the business. If the business is a corporation, the filer
must list the stock exchange (if any) on which the corporation's
securities are traded and the corporation's trading symbol. If
securities of the business are not publicly traded, the filer must
list the address of the business' principal office;
(2)
the nature and value of the interest held, and any applicable
conditions and encumbrances. The filer must specify what
percentage of the business the filer owns, if the filer knows the
percentage; and
(3)
if an interest was acquired or transferred during the previous year,
the filer must describe the interest acquired or transferred, the
nature and amount of the consideration and, if known, the name
of the other person or business in the transaction;]
[(c)
each source of income from an economic interest that is not disclosed
elsewhere, from which the filer received or was entitled to receive $500
or more during the previous year. The filer must specify:
(1 )
the name, and the address of the principal office or residence, of
the source;
(2)
(3)
the type of income; and
the amount of income by category:
(A)
$500 to $5,000; or
over $5,000.
(B)
(4) (A) If the source and the filer have a confidential relationship,
the filer need not report the infonnation required under
paragraph (1) unless the source:
- 22 -
f:\law\bills\1439 ethics law updatelbill2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
39-14 (CORRECTED
COpy)
558
559
560
561
562
563
564
565
566
567
568
569
570
571
572
573
574
575
576
577
578
579
580
581
582
583
(B)
[(d)
(1)
(i)
is registered or must register as a lobbyist on a
matter that is or could be considered by the County
agency with which the filer is affiliated;
(ii)
does business with the County agency with which
the filer is affiliated;
(iii)
owns or operates a business that is regulated by the
County agency with which the filer is affiliated; or
(iv)
has an economic interest that is different from the
public interest, which the filer may substantially
affect in performing the filer's official duties.
(B)
The Commission must designate only one person to review
this information. If the reviewer fmds a reasonable basis to
believe that a violation of this Chapter, or Sections 2-109,
lIB-51 or lIB-52(a),
has
occurred, the entire Commission
may review the information.
(C)
Confidential relationship means a relationship between
two persons that creates a privilege against testifying under
state law;]
each gift given to the filer, to a member of the filer's immediate
family, or to any other person at the filer's direction, during the
previous year ifthe donor of the gift:
(A)
is registered, or must register, as a lobbyist on a matter that
is or could be considered by the County agency with which
the filer is affiliated;
does business with the County agency with which the filer
is affiliated; or
- 23 -
f:\Iaw\bills\1439 ethics law update\bill2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 39-14
(CORRECTED COpy)
584
585
586
587
588
589
590
591
592
593
594
595
596
597
598
599
600
601
602
603
604
605
606
607
608
609
(C)
owns or operates a business that is regulated by the County
agency with which the filer is affiliated.
(2)
The filer must specify:
(A)
(B)
the nature of each gift;
the value of each gift by category:
(i)
(ii)
(iii)
$50 or under;
$51 to $100;
$101 to $500; or
over $500; and
(iv)
(C)
the person who gave the gift or directed, either directly or
indirectly, that the gift be given.
(3)
The filer need not report the following
gifts
on any part of the
[mancial disclosure statement:
(A)
a gift to the filer with a value of less than $50, unless the
same person gave the filer, members of the filer's
immediate family, another person at the filer's direction, or
any combination of them,
gifts
totaling more
than
$100
during the previous year;
(B)
a gift to a member of the filer's immediate family with a
value of less than $100, unless the same person gave the
filer, members of the filer's immediate family, another
person at the filer's direction, or any combination of them,
gifts
totaling more than $100 during the previous year;
(C)
a gift received under Section 19A-16(d)(5), unless the gift
is admission to a cultural or sports event valued at $50 or
more;
- 24 -
f:\law\bills\1439 ethics law update\bill2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 39-14
(CORRECTED COpy)
610
611
612
613
(D)
a gift from a relative of the filer, or a gift to a relative by
the filer, unless:
(i)
the value of all gifts from the same relative exceeds
$100, and
(ii)
the relative:
(a)
is registered, or must register, as a lobbyist on
a matter that is or could be considered by the
County agency with which the filer is
affiliated;
(b)
does business with the County agency with
which the filer is affiliated; or
(c)
owns or operates a business that is regulated
by the County agency with which the filer is
affiliated; or
614
615
616
617
618
619
620
621
622
623
624
625
626
627
628
629
630
631
632
633
634
635
636
[(f)
(B)
(2)
[(e)
(1)
(E)
a political contribution governed by state law;]
all offices, including any directorship, trusteeship, or partnership,
held at any time during the previous year in any business that:
(A)
(B)
(C)
is doing business with or is regulated by a County agency;
has an office in the County; or
to the filer's knowledge, has an interest in real property
located in the County.
The filer must specify:
(A)
the name, and the address of the principal office, of each
business; and
the title and nature of each office;]
all liabilities over $500 owed at any time during the previous year by the
filer, except a debt owed to a relative. The filer need not report any debt
- 25 -
f:\Jaw\bills\1439 ethics
law
update\bi1l2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
39-14 (CORRECTED
COpy)
637
638
639
640
641
642
643
644
645
646
647
648
649
650
651
652
653
654
655
656
less than $5000 owed on a consumer credit card account. The filer need
not report a debt over $5000 owed on a consumer credit card account
unless the debt is owed for more than 90 days. A consumer credit card
account is an open-ended credit card account used to obtain money,
property, or services for personal, family, or household purposes. The
filer must specify:
(1 )
(2)
(3)
(4)
to whom the liability is owed;
the amount owed at the end ofthe year;
the terms ofpayment of the liability;
how much the principal amount of the liability increased or
decreased during the year; and
(5)
[(g)
any security given for the liability;]
all debts over $500 owed to the filer at any time during the previous
year, except a debt owed by a relative. The filer must specify:
(1)
(2)
(3)
(4)
the debtor;
the amount ofthe debt at the end ofthe year;
the terms ofpayment of the debt;
how much the principal amount of the debt increased or
decreased during the year; and
(5)
any security given for the debt;]
657
658
659
[(h)
a list of all members of the filer's immediate family who are employed
in any capacity by a County agency; and]
[(i)
any other interest or information that the filer wants to disclose to carry
out the purposes ofthis Chapter.]
660
661
[0)
If the filer is required to file under paragraph 19A-17(a)(1), the filer
must list the amount and issuer of each bond or other security owned
during the previous year that was issued by the County, any bi-county
- 26 -
f:\Iaw\bills\1439 ethics
law
update\bill2a comn corrected.doc
662
663
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 39-14
(CORRECTED COpy)
664
665
666
667
668
669
670
671
672
673
674
675
676
677
678
679
680
681
682
683
684
685
686
687
688
689
agency with jurisdiction in the County, and any city or town in the
County.]
[(k)
If the filer is required to identify any person or business, the filer must
designate, if known, whether that person or business has done business
or expects to do business with, or is regulated by, a County agency.]
[(1)
In this Section and Section 19A-20, interest means any interest held at
any time during the previous year.]
[em) If a filer is required to report any amount or value, including the value
of any property, under this Section, except subsections (c) and (d), the
filer may specify the amount or value by category:
(1)
(2)
$1000 or less;
over $1000.]
W
Each financial disclosure statement filed under Section 19A-17(a) must
disclose the following:
ill
Interests in real property.
®
The statement must identify each interest in real property,
regardless ofthe property's location.
an
For each interest in real property, the statement must
include:
ill
the nature of the property, and the location
Qy
street
address, mailing address, or legal description of the
property;
(ii)
the nature and extent of the interest held, including
any condition or encumbrance on the interest;
(iii)
the date when, the manner in which, and the identity
ofthe person from whom the interest was acquired;
- 27 -
f:\Iaw\bills\1439 ethics law update\bill2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
Bill No. 39-14 (CORRECTED COpy)
690
691
692
693
694
695
696
697
698
699
700
701
702
703
704
705
706
707
708
709
710
711
712
713
714
715
716
(iv) the nature and amount of the consideration given in
exchange for the interest
~
if the interest was
acquired other than
by
purchase, the fair market
value ofthe interest when
II
was acquired;
(y)
if any interest was transferred, in whole or in part, at
any time during the reporting period,
£!
description
of the interest transferred, the nature and amount of
the consideration received for the interest, and the
identity of each person to whom the interest was
transferred; and
(vi) the identity of any other person with an interest in
the property.
ill
Interests in corporations, partnerships or other businesses.
(A)
The statement must list each interest in any corporation,
partnership, limited liability partnership, limited liability
corporation, sole proprietorship, or other business.
ill)
F or each interest reported, the statement must specify:
ill
the name and, unless the interest is traded publicly
on
g
national exchange, the address of the principal
office of the corporation, partnership. limited
liability partnership, limited liability corporation,
sole proprietorship, or other business;
(ii)
the nature and amount of the interest held, including
any condition or encumbrance on the interest;
(iii)
for any interest transferred, in whole or in part, at
any time during the reporting pyriod,
£!
description
of the interest transferred, the nature and amount of
- 28 -
f:\lawlbills\1439
ethics
law update\bill2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 39-14
(CORRECTEOCOPV)
717
718
719
720
721
722
723
724
725
726
727
728
729
730
731
732
733
734
735
736
737
738
739
740
741
742
743
the consideration received for the interest and, if
known, the identity of the person to whom the
interest was transferred; and
(iv)
for any interest acquired during the reporting period:
ill
the date when, the manner in which, and the
identity of the person from whom the interest
was acquired; and
ill
the nature and amount of the consideration
given in exchange for the interest
~
if the
interest was acquired other than
Qy
purchase,
the fair market value of the interest when it
was acquired.
(Q)
A filer may satisfy the requirement to report the amount of
the interest held under subparagraph (B)(ii)
Qy
reporting,
instead of
§:
dollar amount:
ill
for an equity interest in
§:
corporation, the number of
shares held and, unless the corporation's stock is
publicly traded, the percentage of equity interest
held; or
(ii)
for an equity interest in
~
partnership, the percentage
of equity interest held.
@
For purposes of subparagraph (B)O), the filer need not
report the address of any publicly held company.
ill
Gifts.
(A)
The statement must list each gift valued at more than $20
or any series of gifts totaling $100 or more received during
the reporting period from or on behalf Q1 directly or
- 29 -
f:lJawlbills\1439 ethics law update\bill2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
BILL No. 39·14 (CORRECTED COPY)
744
745
746
747
748
749
750
751
752
753
754
755
756
757
758
759
760
761
762
763
764
765
766
767
768
indirectly, anyone person who does business with the
County.
!ill
F or each gift listed, the statement must specify:
ill
(ii)
the nature and value ofthe gift; and
the identity of the person from whom, or on behalf
of whom, directly or indirectly, the gift was
received.
ill
Employment with. or interests
ilL.
entities doing business with the
County.
®
The statement must identify each office, directorship, and
salaried employment
12v
the
filer or member of the filer's
immediate family held at any time during the reporting
period with any entity doing business with the County.
!ill
For each position listed under this Section, the statement
must include:
ill
(ii)
the name and address of the principal office of the
business entity;
the title and nature of the office, directorship, or
salaried employment held, and the date
and
i!
started;
(iii)
the name of each County agency with which the
entity is involved, indicated
12v
identifying one or
more of the three categories of "doing business", as
defined in Section 19A-4(e).
ill
Indebtedness to entities doing business with the County.
- 30 .
f:\law\bills\1439 ethics law update\bill2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 39-14
(CORRECTED COpy)
769
770
771
772
773
774
775
776
777
778
779
780
781
782
783
784
785
786
787
788
789
790
791
792
793
794
795
(A) The statement must identify each liability, other than g
retail credit account, to any person doing business with the
County owed at any time during the reporting period by:
ill
the filer; or
(ii) g member of the filer's immediate family if the filer
was involved in the transaction giving rise to the
liability.
lID
For each liability reported under this paragraph, the
statement must specify:
ill
the identity of the person to whom the liability was
owed, and the date the liability was incurred;
(ii) the amount of the liability owed at the end of the
reporting period;
(iii) the teTInS of payment of the liability, and the extent
to which the principal amount of the liability was
increased or reduced during the year; and
(iv) the security, ifany, given for the liability.
(§)
Employment with the County.
The statement must identify each
immediate family member ofthe filer employed
by
the County in
any capacity at any time during the reporting period.
ill
Sources
Q[
earned income.
(A) The statement must list the name and address of each
employer of the filer, other than the County Government,
and each business entity of which the filer or g member of
the filer's immediate family was g sole or partial owner
and from which the filer or member of the filer's
immediate family received earned income at any time
- 31 -
f:\law\bills\1439
ethics
law update\bill2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 39-14
(CoRRECTED
COpy)
796
797
798
799
800
801
802
803
804
805
806
807
808
809
810
811
during the reporting period. The statement must include
the source of each fee for services provided
Qy
the filer
during the reporting period.
However,
~
filer need not
include any information with respect to any person for
whom services were provided
Qy
any firm or association of
which the filer was
~
member, partner, or employee unless
the filer was directly involved in providing those services.
all
The filer need not disclose
~
minor child's employment or
business ownership if the agency that employs the filer
does not regulate, exercise authority over, or contract with
the place of employment or business entity of the minor
child.
(£)
If
~
source of earned income and the filer have
~
~
confidential relationship which creates
privilege against
testifying under state law, the filer need not report the
identity ofthe source unless the source:
(i)
is registered or must register as
~
812
813
lobbyist on
~
matter that is or could be considered
Qy
the County
agency with which the filer is affiliated;
(ii) does business with the County agency with which
the filer is affiliated;
814
815
816
817
818
(iii)
owns or operates
~
business that is regulated
Qy
the
County agency with which the filer is affiliated; or
(iv)
- -
economic interest
- - -
different
- - - -
has an
that is
from the
public interest, which the filer may substantially
affect in performing the filer's official duties, in
which case the identity of the source must be
- 32 -
f:\IaWlbills\1439 ethics law update\bill2a comn corrected.doc
819
820
821
822
 PDF to HTML - Convert PDF files to HTML files
BILL No. 39-14 (CORRECTED COpy)
823
824
825
826
827
828
829
830
831
832
833
834
835
836
837
838
839
840
841
842
843
844
845
846
847
848
849
disclosed confidentially to the Commission
manner prescribed
Qy
the Commission.
ill
~
®
®
The statement may also include any additional interest or
information that the filer wishes to disclose.
For the purposes of subsections (a)(1) and (a)(2), the following interests
must be treated as the interests ofthe filer ofthe statement:
ill
an interest held
Qy
~
member of the filer's immediate family if
the filer, at any time during the reporting period, directly or
indirectly controlled the interest;
ill
ill
an interest held
Qy
~
business entity in which the filer held
~
30%
or greater interest at any time during the reporting period; or
an interest held
Qy
~
trust or estate in which, at any time during
the reporting period:
(A)
the filer held
or
~
reversionary interest or was
~
beneficiary;
an
W
if
~
revocable trust, the filer was
~
settlor.
Each statement filed under Section 19A-17(b) must disclose all
information required to be disclosed under subsection
~
However, the
filer need not specify the nature or amount of consideration given in
exchange for an interest or the fair market value of an interest. For
~
debt, the filer need only disclose the information required under
subsection (a)(5)(A).
@
Each statement filed under Section 19A-17(c) must disclose the
information required in subsection
fu)Q.)
with respect to gifts and must
disclose the information otherwise required in subsection
W
only with
respect to any interest, compensated position, or liability that may create
~
conflict under Section 19A-ll or is prohibited under Section 19A-12.
- 33 -
f:\law\bills\1439
ethics
law update\bill2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 39-14
(CORRECTED COpy)
850
851
852
853
854
855
856
857
858
859
860
861
862
863
864
865
866
867
868
869
870
871
[19A-20.
Interests attributable to filers.]
[Under section 19A-19, the following must be reported as an economic interest
ofthe filer:
(a)
(b)
any economic interest held by a member ofthe filer's immediate family;
any economic interest held by a relative ofthe filer, if:
(1)
the interest was controlled by the filer, directly or indirectly, at
any time during the previous year; and
(2)
the interest could be affected by an action or a failure to act by
the filer in the performance of official duties;
(c)
any economic interest in real property held by a business in which the
filer owns an interest, if the property is located in Montgomery County,
Prince George's County, Howard County, or Frederick County,
Maryland; the District of Columbia; or Fairfax County or Loudoun
County, Virginia; and if the filer's prorated interest in the real property
has a market value of more than $1,000. If the securities of the business
are publicly traded, the filer need not report the interest in the real
property; and
(d)
any economic interest held by a trust, except a common trust
fund,
ifthe
filer:
(1)
(2)
(3)
19A-20.
fu}
holds an income interest of more than $1,000;
holds a reversionary interest of more than $1,000; or
is a trustor or beneficiary of a revocable trust.]
872
873
874
875
876
Certifications regarding conflicts of interest.
In addition to any other requirement of this Article, each person who
files
~
financial disclosure statement under Section 19A-17 must certify
that, to the best of the filer's knowledge, neither the filer nor the filer's
immediate family or relatives have any interest, including any liability,
- 34 -
f:\law\bills\1439 ethics law update\bill2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 39-14
(CORRECTED COpy)
877
878
879
880
881
882
883
884
885
886
887
888
889
890
that may create
~
conflict of interest under Section 19A-ll or 19A-12.
If
~
filer is unable to so certify, the filer must separately identify, in the
manner required
Qy
the Commission, any interest that may create
conflict of interest under Section 19A-ll or 19A-12.
~
ill
(£}
The annual certification filed under subsection.cru must be filed
Qy
April
.li
of each year with the filer's financial disclosure statement.
If the economic interests of
~
filer, including those of an immediate
family member or relative, have changed since the filer's last filed
certification such that
~
conflict of interest may be created under Section
19A-ll or 19A-12, or if the filer or an immediate family member
received
~
reportable gift from any person doing business with the
filer's County agency or department, the filer must, within
~
days after
the event, amend the certification filed under subsection .cru and identify
each possible conflict or gift.
Approved:
891
892
Craig
L.
Rice, President, County Council
Date
893
Approved:
894
Isiah Leggett, County Executive
Date
895
This is a correct copy o/Council action.
896
Linda M. Lauer, Clerk of the Council
Date
- 35 -
f:\law\bills\1439 ethics law update\bill2a comn corrected.doc
 PDF to HTML - Convert PDF files to HTML files
LEGISLATIVE REQUEST REPORT
Bill 39-14
Ethics
-
Amendments
DESCRIPTION:
Bill 39-14 would revise certain provisions of the COWlty ethics law
governing financial disclosure and solicitation and acceptance of gifts
to meet certain requirements of state law.
COWlty law should be updated to conform to state law.
To conform COWlty law to State law.
Ethics Commission
To be requested.
To be requested.
To be requested.
To be researched.
Mike Faden, Senior Legislative Attorney, 240-777-7905
To be researched.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
A violation of Chapter 19A is a Class A violation.
f:\law\bills\1439 ethics law update\legislative request report.doc
@
 PDF to HTML - Convert PDF files to HTML files
MONTGOMERY COUNTY ETHICS COMMISSION
Kenita V. Barrow
Chair
Mark L. Greenblatt
Vice Chair
Aprilll,2014
Craig Rice
Council President
Montgomery County Council
100 Maryland Avenue
Rockville, MD 20850
Isiah Leggett
County Executive
Montgomery County
Executive Office Building
101 Monroe Street, 2
nd
Floor
Rockville, MD 20850
RE: Ethics Commission Legislative Proposal
Dear Mr. Council President and
Mr.
County Executive:
The Montgomery County Ethics Commission (MCEC) proposes changes to the
Montgomery County Public Ethics Law to align the County's law with Maryland State
law requirements on gifts and financial disclosure. The proposal also includes provisions
that the MCEC believes appropriate for providing assurance that County employees do
not have conflicts of interest in the performance of their duties. The proposals are
attached.
The State's Public Ethics Law requires local governments
to
enact laws similar to the
State's for their respective jurisdictions. Prior
to
20] 0, Montgomery County's Ethics
Law had been considered to be compliant with the State requirement of similarity. In
2010, the State Ethics Law was amended
to
further mandate that as to elected local
officials, local governments' laws must be equivalent to or exceed the requirements of
State law with respect to conflict of interest and financial disc]osure provisions.
Moreover, the 2010 amendments required each local ethics commission to annually
Montgomery County Ethics Commission
:.t
0
i;3
-0
~
x
~~fTI
',)
(")
t..:""fTI
. ::::rI_
C;:u
..ca
"="'"
,")-«
c
i-=
(")fTI
00
-4
""0
::;::
::z
.
-
.
-<
..c
\J1
100 Maryland Avenue, Room 204, Rockville, MD 20850
OFFICE 240-777-6670, FAX 240· 777-6672
 PDF to HTML - Convert PDF files to HTML files
Ethics Commission Legislative Proposal
April 11,2014
Page 2
certify that their respective local laws are in compliance with the State's requirements
with regard to elected officials. The State Ethics Commission
staff
has communicated
that in light ofthe 2010 law and other factors, including a Court case finding a local
jurisdiction's laws not sufficiently similar to the State's law, the State Ethics
Commission's view on what constitutes "similar" has narrowed since the time the State
Commission viewed Montgomery County's law as meeting the similarity requirement.
The State law requirements for local ethics laws include:
15-804. Conflict of interest laws.
(a)
In general.
- Except as provided in subsection
(b)
of this section, the
conflict of interest provisions enacted by a county or municipal corporation
under
§
15-803 of this subtitle shall be similar to the provisions of Subtitle 5
of this title, but may be modified to the extent necessary to make the
provisions relevant to the prevention of conflicts of interest in that
jurisdiction.
(b)
For elected local officials.
- The conflict of interest provisions for
elected local officials enacted by a county or municipal corporation under
§
15-803 of this subtitle shall be equivalent to or exceed the requirements of
Subtitle 5 ofthis title, but may be modified to the extent necessary to make the
provisions relevant to
the
prevention of conflicts of interest in that
jurisdiction.
15-805. Financial disclosure laws.
(b)
Similarity to Ethics
Law.
(1)
Except as provided in paragraph (2) of
this subsection and subsection (c) ofthis section, the financial disclosure
provisions enacted by a county or municipal corporation under
§
15-803 of
this subtitle shall be similar to the provisions of Subtitle 6 of this title, but
shall be modified to the extent necessary to make the provisions relevant to
the prevention of conflicts of interest in that jurisdiction. (2) The financial
disclosure provisions for elected local officials enacted by a county or
municipal corporation under
§
15-803 of this subtitle shall be equivalent to
Of
exceed the requirements of Subtitle 6 of this title, but shall be modified to the
extent necessary to make the provisions relevant to the prevention of conflicts
of interest
in
that jurisdiction.
Representatives of the State Ethics Commission have stated that the State Ethics
Commission interprets the clauses at the end of these provisions pennitting and
mandating modifications as meaning that additional requirements can be imposed that
exceed the State requirements, but that local requirements under these paragraphs cannot
Montgomery County Ethics Commission
M",r..,ls..ul
Avenue, Room 204, Rockvi1le, MD 20850
240-777-6670, FAX 240-777-6672
 PDF to HTML - Convert PDF files to HTML files
Ethics Commission Legislative Proposal
April 11, 2014
Page 3
be different from the State requirements in such a way as to lessen that which is required
by State law.
l
In the fall of2011, MCEC staffbegan an examination of the differences between the
State ethics laws and the County's ethics laws. In April 2012, the MCEC submitted for
State Ethics Commission staff review a draft of proposed amendments to the
Montgomery County Public Ethics Law. These proposed changes suggested alternatives
to the County's current ethics law as it applies to County elected officials. On April 12,
2013, another proposal was forwarded to State Ethics Commission staff.
In
the fall of
2013, correspondence between the State Ethics Commission staff and MCEC staff
resulted in refinement of the MCEC proposal. This proposal
has
been further refined as a
result of further input by the State Ethics Commission and from the Montgomery County
Attorney and from the County's Senior Legislative Counsel. A meeting was held on
February 24, 2014,
in
which MCEC staff, State Ethics Commission staff, the County
Attorney and Senior Legislative Counsel discussed the then current draft.
At this meeting, State Ethics Commission staff provided general guidance as
to
what
language would be acceptable to the State Ethics Commission.
In
several instances, the
Montgomery County proposal was more specific than State law as to what conduct would
be prohibited. The direction from the State Ethics Commission staff was for
Montgomery County to follow the State's lead by imposing broad restrictions that could
be modified or narrowed in application through interpretation (rather
than
through
exceptions in the law). For example, State law prohibits the solicitation ofany
gift
by an
employee. The State recommendation is for Montgomery County to include this broad
prohibition in the law, without any exceptions, and through MCEC interpretation of the
prohibition, create what caveats make practical sense. County participants in the meeting
were concerned that generic provisions would not provide suitable notice of what conduct
is being prohibited. Notice of what constitutes a violation is particularly important where
violations are sanctioned by civil and criminal penalties.
Given the State Ethics Commission's insistence on provisions being submitted that meet
its requirements, the
MCEC
has
decided to accede to the bulk of the State
Ethics
Commission staff recommendations on what should be contained in the MCEC's
proposal for the County's
gift
and fmancial disclosure laws. The MCEC fully recognizes
that the County's policy makers, in particular, the County Council, may have views that
deviate from those of the State Ethics Commission about what is required by State Ethics
Law. The MCEC forwards this proposal with a genuine and vested interest in how the
County's law is ultimately enacted. But the MCEC, meeting once monthly, cannot be an
efficient or appropriate arbiter between the State Ethics Commission and the County
The State Ethics Commission has prepared model local laws, available on
its
website, which it
recommends for counties and municipalities subject to the equivalency and simi1arity
requirements.
J
Montgomery County Ethics Commission
- - _
...
_ - _
..
_ ­
100 Maryland
Avenue,
Room 204,
Rockville,
MD 20850
OFFICE 240-777-{)670, FAX 240-777-{)672
 PDF to HTML - Convert PDF files to HTML files
Ethics Commission Legislative Proposal
April 11,2014
Page 4
Councilor County Executive on what should or must be contained in the County's Ethics
Law.
Particular Features ofProIX>sed Law Going Beyond State Requirements
The
MCEC proIX>ses several significant changes from the current Public Ethics Law and
adds provisions that exceed State requirements. The new features mandated by State law
include that all financial disclosures be made publicly available and that there be
increased disclosure for elected officials, particularly as regards valuation of assets.
• The proposal recommends three levels of disclosure, with elected officials
providing, consistent with State law requirements, greater disclosure than non­
elected senior County officials who are designated by law as fiJers. The current
designation process for identifying fiJers is eliminated in favor of a static statutory
list of filers being identified. A third tier offiJers would be designated as filers
without the fonnal method 2 regulatory process existing under current law who
would only identify conflicting holdings and reportable gifts.
• The proposal explicitly imposes on the Chief Administrative Officer a
requirement to establish an electronic system for submission and management of
financial disclosure reports.
• The proposal includes a requirement to disclose sources of fees for services
provided by the filer.
• The proposal requires public employees to certify that to the best of their
knowledge, there are no conflicts of interests, or
altematively~
to identify the
interests that may create a conflict of interest.
• The proposal requires public employees to report to the MCEC within 5 days
any
new interests that may create a conflict of interest and any reportable gifts.
The MCEC contemplates making future legislative recommendations on other portions of
the County's Public Ethics Law and is available for further comment on this proposaL
Sincerely,
~~
Robert W. Cobb
Staff Director/Chief Counsel
Montgomery County Ethics Commission
Attachments
cc: Michael Lord, Executive Director, State Ethics Commission
Montgomery County Ethics Commission
100 Maryland Avenue,
Room
204,
Rockville,
MD 20850
OFFICE 240-777-6670, FAX 240-777-6672