2. Maryland’s Public Ethics Law Bowie State University March 3, 2016

3. Agenda I. Background, Purpose, and Scope II. Conflicts of Interest III. Financial Disclosure IV. Available Resources

4. 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

5. Purposes 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

6. The State Ethics Commission Five Commissioners, appointed to 5-year terms Charged with administering the Public Ethics Law Provides advice, issues formal opinions, regulates lobbyists, undertakes enforcement action Supported by a 12-member staff

7. Public Ethics Law Conflicts of Interest

8. What if… … you are called upon to participate in hiring for a vacant admissions assistant position. Among the applicants are your sister-in law, your daughter, and your best friend. Can you participate?

9. Prohibits participation in: matters where the employee or official or certain relatives (spouse, parent, child, brother, sister) have a specific interest matters in which business entities are parties, if the employee or official or certain relatives have employment, contractual, creditor, or potential employment relationships with those business entities Participation

10. What if… … you review and approve payments for invoices submitted by contractors, including invoices from a contractor doing work for the Office of Facilities Management. Your sister is employed by the contractor. Can you participate?

11. What if… … in the previous scenario the work was performed by the Maryland office of your sister’s company, but your sister works in the company’s Atlanta office. Now can you participate?

12. Exceptions allowed if: conflict disclosed and (1) disqualification would leave body with less than quorum (applies generally to boards/commissions); (2) disqualified official/employee required to act by law; (3) disqualified official/employee only one authorized to act permitted by State Ethics Commission regulation Participation

13. What if… … you work in the Provost’s Office and would like to serve as a paid proctor for ETS testing to be administered at the University. Can you work in this capacity?

14. Outside Employment Prohibits employment with entities subject to the authority of or contracting with your agency Prohibits employment that would impair impartiality and independent judgment Exceptions possible if no impact on duties

15. What if… … with regard to the previous scenario, you have a role in the contract between ETS and the University? Does this impact your ability to accept the position?

16. What if… … you own stock in Staples. Staples has just become the exclusive provider of office supplies for the University. Can you retain your Staples stock?

17. Financial Interests Prohibits financial interests in entities subject to the authority of or contracting with your agency Exceptions possible if no impact on duties

18. What if… … your spouse is a part owner of ABC Construction, a company that was just awarded a subcontract to work on the Center for Natural Sciences, Mathematics and Nursing. Is there a problem here?

19. Financial Interests The Law defines financial interest as: Ownership of more than 3% of a business entity by employee or spouse; Ownership of securities that represent more than 3% of a business entity by employee or spouse; Ownership of an interest where owner has received in past 3 years, is currently receiving or will receive more than $1,000 per year.

20. What if… … you participated in the preparation of specifications for a procurement to award a food service contract. You then decide to leave your position with the University and start your own catering business. Can you bid on this contract?

21. Post-Employment Restrictions Former official/employee may not assist or represent outside entities or persons for compensation In a case, contract or specific matter If the former official/employee significantly participated in the matter in his/her State position

22. What if… … you assist the University in developing specifications to build the Center for Natural Sciences, Mathematics and Nursing. You then leave the University to work for a contractor that plans to bid on the project. Can the contractor bid?

23. Procurement This was PREVIOUSLY addressed in §5-508 of the Ethics Law Now found in §13-212.1 of the State Finance and Procurement (“SF&P”) Article Under jurisdiction of MSBCA (see SF&P §15- 211)

24. Procurement Language remains intact An individual, or person who employs an individual, who assists an agency in drafting specifications, an invitation for bids, or a request for proposals may not submit a bid for that procurement or assist or represent someone submitting a bid

25. What if… … you are invited to lunch by a contractor that has submitted a bid on a University contract to “train trainers” in Crisis Prevention and Management. Can you accept and allow the contractor to pay? Can you accept the company logo jacket the contractor offers you?

26. Gifts Prohibitions Generally No solicitation No unsolicited gifts from 1) vendors 2) regulatees 3) lobbyists or 4) someone with a financial interest that may be affected by the performance/nonperformance of duties Key Exceptions Nominal = $20 or less Meals/beverages in the presence of the donor Reasonable food, lodging, and travel for participation at a speaking engagement

27. What if… … your best friend’s son has applied for a position with another department at the University with which you interact regularly. Your friend knows your relationship with that department and asks you to put in a good word for his son with the supervisor who is doing the hiring. Can you do so?

28. Prestige of Office Prohibitions Generally No use of office for official’s private gain No use of office for private gain of another Covers both using the influence of one’s office and using State resources

29. What if… … you learn the University is seeking permission to acquire nearby land for a capital project to construct new academic buildings. You go out and purchase the land where the facility will be built so you can sell it to the State at a profit. Can you do so?

30. Confidential Information Cannot disclose or use confidential information acquired by reason of one’s position and not available to the public: For personal economic benefit, or For the economic benefit of another

31. Public Ethics Law Financial Disclosure

32. 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

33. When Filed? Within 30 days of taking a position for which filing is required Annually by April 30 th Within 60 days of terminating service, covering preceding year and current year up to date service concluded

34. What must be disclosed? Interests in real property, wherever located Interests in corporations, partnerships (e.g. stocks) whether or not they do business with the State Interests in non-corporate businesses that do business with the State Gifts (exceeding $20 or series of gifts totaling $100 or more) from lobbyists or entities doing business with or regulated by the State Offices, directorships, salaried employment or similar interest (of the individual or member of immediate family) in businesses that do business with the State Debts owed to entities doing business with the State Immediate family members employed by the State Sources of earned income, to include salaried employment and business interests of individual and members of the immediate family

35. Can the Public Access Financial Disclosure Statements? YES! Statements must be available for public inspection and copying

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

37. Public Ethics Law

39. Where do I go for Advice? State Ethics Commission 45 Calvert Street, 3rd Floor Annapolis, MD 21401 (410) 260-7770 (410) 260-7746 (Fax) http://ethics.gov.state.md.us