SUMMARY OF METRO GOVERNMENT ETHICS CODE

1. SUMMARY OF METRO GOVERNMENT ETHICS CODE Metro Ethics Commission 2009 Training

2. Ms. Thelma Clemons Ms. Karyl Ferman Mr. Larry Grant Mr. Corey Koellner Ms. Kathryn A. Quesenberry, Chair Mr. Jonathan Ricketts Ms. Terri Todd Who is the Ethics Commission?

3. Who is the Ethics Commission? Staff Support: Metro Human Resources 517 Court Place, Suite 301 Louisville, KY 40202

4. Who is the Ethics Commission? Staff Support: • Janet Black • Phone: 574-6426 • Janet.Black@louisvilleky.gov • Lynne A. Fleming, Assistant Director • Phone: 574-3045 • Lynne.Fleming@louisvilleky.gov

5. Who is the Ethics Commission? • Commission consists of seven members • Appointed by Metro Mayor • Approved by Metro Council • Persons who are not Metro Officers or employees of Metro Government • Chosen by virtue of their known and consistent reputation for integrity and their knowledge of Louisville government affairs • No two Commission members reside in the same Metro Council District

6. Members serve for a term of three years; may be reappointed for one consecutive term only No more than three members of the same political party; at least one registered Independent May be removed for malfeasance or neglect of duty Who is the Ethics Commission?

7. Ethics Commission responsible for training. All Metro Officers shall attend one training session within 12 months of election/appointment. All Metro Officers shall attend one training session at least once every 24 months thereafter. Training Requirement

8. The Mayor Metro Council Member County Attorney Sheriff County Clerk Coroner Who is a “Metro Officer”?

9. Who is a “Metro Officer”? • Surveyor • Constable • Deputy Mayor • Cabinet Secretary • Chief Deputy • Chief Administrative Officer

10. Who is a “Metro Officer”? • Chief of Operations • Agency Director • Department Director/Managerial person designated as a Metro Officer by any of the foregoing • Person appointed by the Mayor to a Metro Agency which has regulatory authority or independent authority to expend public funds

11. Who is “Immediate Family”? • Parent • Sibling • Spouse • Child or other person living in the household • Person claimed by officer/spouse as a dependent

12. 21.02 Standards of Conduct

13. 21.02 Standards of Conduct • Having an interest or engaging in a business, transaction or professional activity which conflicts with duties in the public interest. • Using official position to secure unwarranted privileges or advantages for council member or others. Metro Officers and, as specified, members of their immediate family are prohibited from:

14. 21.02 Standards of Conduct • Official actions involving financial interest or personal involvement that might reasonably impair objectivity or judgment. • Undertaking any employment or service which might prejudice independent judgment. Metro Officers and, as specified, members of their immediate family are prohibited from:

15. 21.02 Standards of Conduct • Soliciting/accepting any gift, favor, loan, contribution, thing of value, etc. with understanding or reasonable inference that it was given/offered to: • Influence the discharge of official duties. • Gain access to the officer. [Note: See exceptions listed below.] Metro Officers and, as specified, members of their immediate family are prohibited from:

16. 21.02 Standards of Conduct • Using public office or non-public information for personal/family or business organization financial gain. • Representing any person regarding matters before a Metro Agency personally or through a business entity (in which the officer owns/controls more than five percent (5%) interest, or is a principal of any non-profit entity/labor organization). Metro Officers and, as specified, members of their immediate family are prohibited from:

17. 21.02 Standards of Conduct • Asking for or receiving any fee for seeking information or assistance for any citizen or constituent. Metro Officers and, as specified, members of their immediate family are prohibited from:

18. 21.02 Standards of Conduct • Soliciting or receiving campaign contributions (permitted by Kentucky statute) as an announced candidate for elective office. • Giving or receiving a public award for public service. • Giving or receiving a commercially reasonable loan in ordinary course of lender’s business. Exceptions: A Metro officer is not Prohibited from:

19. 21.02 Standards of Conduct • Accepting a gratuity for performing marriage ceremony. • Participating in the enactment of an ordinance, resolution or other matter requiring a vote if, as a member of business/profession or group, the officer receives no greater benefit than other similarly situated members. Exceptions: A Metro officer is not Prohibited from:

20. 21.02 Standards of Conduct • Representing himself/herself in negotiations/proceedings concerning personal interests. • Giving or receiving reasonable hosting in connection with public events, appearances or ceremonies. Exceptions: A Metro officer is not Prohibited from:

21. Gift and “Reasonable Hosting” Exception FACTORS AFFECTING SECTION 21.02(E) Section 21.02(E) states in relevant part: No Metro Officer [family member, business organization, non-for-profit entity or labor organization in which the officer has an interest] shall solicit or accept any gift, … or thing of value based on an understanding, or under circumstances from which it could reasonably be inferred, that the gift, … or thing of value … was given or offered: for the purpose of influencing such officer in the discharge of official duties or for the purpose of gaining access to the officer.

22. Gift and “Reasonable Hosting” Exception Section 21.02(F) exempts from this prohibition: • An award publicly presented in recognition of public service, • Commercially reasonable loans, • Reasonable hosting, including entertainment, meals or refreshments furnished in connection with public events, appearances, or ceremonies.

23. Gift and “Reasonable Hosting” Exception SUGGESTED RELEVANT FACTORS • Did the Metro Officer solicit something? • Has the officer been offered a gift or something of value? • Is there any understanding between the officer and the giver that the gift is to influence, or to gain access to the officer?

24. Gift and “Reasonable Hosting” Exception • What “circumstances” reasonably raise an inference that the gift or thing of value was given to influence decision-making or to gain access to the Metro Officer? • Has the giver asked for anything in return? • Is the giver directly involved in any official business on which the Metro Officer is responsible for action? • Is the Officer aware of any matters coming before him/her or committee which involves the giver? • Is the same gift or thing of value being given to other similarly situated Metro Officers?

25. Gift and “Reasonable Hosting” Exception • Is the description of the gift or thing of value in writing and open to the public? • Is the type of access being sought different than the access other citizens reasonably may have? • Specific exemption if the gift or thing of value is an award publicly presented in recognition of public service.

26. Gift and “Reasonable Hosting” Exception • Specific exemption if the thing of value is a commercially reasonable loan made in the ordinary course of the lender’s business. • Specific exemption if the thing of value is “reasonable hosting,” including entertainment, meals or refreshments furnished in connection with public events, appearances or ceremonies:

27. Gift and “Reasonable Hosting” Exception • Is this a public event (at least “public” in the sense that others are invited to be present if not the general public)? • Is it a public appearance (where the Metro Officer is singled out as a result of his or her office, or, perhaps, introduced or present as a representative of the district)? • Is it a public ceremony? • Is the value of the entertainment, meals or refreshments “unreasonable” so as to infer that it is for purpose of influencing decision-making or gaining access?

28. 21.03 Financial Disclosure

29. 21.03 Financial Disclosure • Name • Business address/telephone • Title of public/elected office • Occupation of filer and spouse • which the officer owns/controls more than five percent (5%) interest, or is a principal of any non-profit entity/labor organization). Metro Officer must file financial disclosure by April 1 each year including:

30. 21.03 Financial Disclosure • Identity of each business (which does business with Metro Government/Agency/Officer) in which filer or member of immediate family has either $10,000 or five percent ownership interest; or received in excess of $5,000 compensation in previous year (except for publicly traded companies in which officer/family’s interest is less than five percent). Metro Officer must file financial disclosure by April 1 each year including:

31. 21.03 Financial Disclosure • Location and zoning of property in Jefferson County (except residence) in which filer or immediate family member has $10,000 or greater ownership interest which is the subject of any condemnation proceeding or other government action. Metro Officer must file financial disclosure by April 1 each year including:

32. 21.03 Financial Disclosure • Disclosure statement to be filed by April 1 every year. Any material changes which make statement no longer true must be filed within 10 days. A “material change” includes any gift, loan, gratuity, favor or economic opportunity of significant value with aggregate value of $25 or more which Metro Officer believes in good faith to be exempt from application of Section 21.02 (Standards of Conduct). [Note: The key point is how such gift, etc., affects totals required to be reported in the disclosure. This does not create a separate gift reporting requirement.] Metro Officer must file financial disclosure by April 1 each year including:

33. Metro Officer must disclose: • To relevant governing body, any private financial interest in any contract or matter coming before that body.

34. Metro Officer must disclose: • County Attorney, Metro Council Members, and those who derive authority from them, must disclose any private interest and abstain from debate, vote or other proceedings related thereto. [Note: This does not include officer’s public office budget or salary].

35. 21.04 Nepotism

36. 21.04 Nepotism • Prohibits family member from getting preference for employment/appointment by/to any Metro Agency if a more qualified person has made application for the same position. • Prohibits hiring or causing to be hired any family member at greater pay/benefits than other similarly situated employees. • Prohibits management or supervision of family members.

37. 21.04 Nepotism • Prohibits Mayor, Council Member, County Attorney, Sheriff, County Clerk, Coroner, Surveyor or Constable from employing any family member in that person’s office.

38. Advisory Opinions • Commission shall issue advisory opinions concerning acts or activities covered by the Ordinance • Must be requested by a Metro Officer • Opinions shall be public • Commission regulations outline procedures for Advisory Opinions

39. Advisory Opinions Regulations • Any Metro Officer may request Advisory Opinion • Request for Advisory Opinions by individuals other than Metro Officers will not be accepted or considered • Request must be in writing on Exhibit A

40. Advisory Opinions Regulations • Commission shall not entertain request for Advisory Opinions from a person about the conduct of another person, except that Metro Officers may request an Advisory Opinion regarding an act or activity of a person over whom the Metro Officer exercises supervisory authority

41. Advisory Opinions • Request must be made at least three weeks in advance of the act or activity to allow Commission as a whole to consider • Must have good cause to accept a request within three weeks of the act that is subject of the request • If accepted within three weeks of the contemplated act or activity, the Chair, Vice-Chair, and a third member shall render an Advisory Opinion • This Advisory Opinion is not precedent unless and until ratified by the full Commission

42. 21.06 Complaint

43. 21.06 Complaint • Any person may file Complaint against Metro Officer with Commission. • Complaint shall be filed in writing using Exhibit B Complaint Form. • Complaint must be signed, notarized, and made under oath as true and correct. • Commission shall dismiss without hearing complaints frivolous on the face or filed for the purpose of harassment.

44. 21.06 Complaint • Within 10 days of receipt, the Commission shall forward a copy of the Complaint to the person alleged to have violated the Ordinance. • The subject of the Complaint has 20 days in which to file a written response, made under oath. • Commission may conduct independent investigation and hold an evidentiary hearing.

45. 21.06 Complaint • Ethics Commission has authority to determine whether a violation has been committed by a Metro Officer. • Commission may impose penalties: • Letter of technical violation • Letter of reprimand • Letter of public reprimand • Letter of formal censure • Fines between $25 and $500

46. Penalties for violation • Violator may be subject to: • For non-elected Metro Officer, sanction or disciplined by appointing authority • For elected Metro Officer, removal under KRS 67C.143 • For Metro Council Member, sanctions or action by Metro Council under its rules • Commission findings may be appealed to Jefferson District Court

47. 21.07 Protection Against Reprisal

48. 21.07 Protection Against Reprisal • Prohibits reprisal against any officer or employee who makes a good faith disclosure to Ethics Commission or other entity regarding actual or suspected violation of the ethics code, laws or regulations. • Prohibits reprisal or discrimination against any person who supports, aids, or substantiates disclosure of any reprisal prohibited under this section.

49. 21.30 Public Housing Authorities

50. 21.30 Public Housing Authorities • [Note: Section 21.31 contains Standards of Conduct for Housing Authority Officers and Employees very similar to those applicable to Metro Officers. Sections 21.32 (Financial Disclosure) and 21.33 (Complaint) are essentially the same as for Metro Officers.]