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011 of 2011 - Conflict of Interest (Ethics Ordinance) Chapter 2.44 Amendments 0 11-1 0 07-2 SALT LAKE CITY ORDINANCE No. I l of 2011 (Amending the Salt Lake City Code to reflect changes to the provisions governing Conflict of Interest, Chapter 2.44.010 et seq.) An ordinance amending the Salt Lake City Code,to reflect necessary changes to the Conflict of Interest Chapter. WHEREAS, the City Council has completed its review of the City's Conflict of Interest ordinance; and WHEREAS, the City Council finds that amendments provided herein are necessary and in the best interests of the city; NOW, THEREFORE,BE IT ORDAINED,by the City Council of Salt Lake City as follows: SECTION 1: Section 2.44.010 of the Salt Lake City Code shall be and hereby is amended to read as follows: 2.44.010 PURPOSE The purpose of this chapter is to prevent improper influence, avoid the appearance of impropriety, and prohibit public servants from receiving unjust financial gain from public service. It also seeks to increase public confidence by assuring that governmental actions are taken ethically and in compliance with all applicable procedures. It is the objective of this chapter to promote these goals by establishing ethical standards of conduct for all officers and employees of the city,including volunteers. SECTION 2: Section 2.44.020 of the Salt Lake City Code shall be and hereby is amended to read as follows: 2.44.020 DEFINITIONS For the purposes of this chapter, unless otherwise apparent from the context, certain words and phrases used in this chapter are defined as follows: ASSIST: To act, or offer or agree to act, in such a way as to help, represent, aid, advise, furnish information to, or otherwise provide assistance to a person or business entity, believing that such action is of help, aid, advice, or assistance to such person or business entity and done with the intent to so assist such person or business entity. BLIND TRUST: An independently managed trust in which the public servant-beneficiary or volunteer public servant-beneficiary has no management rights and in which the public servant- beneficiary or volunteer public servant-beneficiary is not given notice of alterations in, or other dispositions of, the property subject to the trust. BUSINESS ENTITY: A sole proprietorship,partnership, association,joint venture, corporation, limited liability company, firm, trust, foundation, or other organization or entity used in carrying on a business. CITY REGULATED BUSINESS ENTITY: Any business entity for which the city issues a license or regulates pursuant to any city ordinance or statute. COMPENSATION: Anything of economic value, however designated, which is paid, loaned, granted, given, donated, or transferred to any person or business entity by anyone other than the city for or in consideration of personal services, materials, property, or any other consideration whatsoever, including any forbearance. 2 COMPLAINT: Any complaint filed against any public servant or volunteer public servant which alleges that the public servant or volunteer public servant violated chapter 2.44. CORRUPTLY: Any act done with wrongful intent and for the purpose of obtaining or receiving any financial or professional benefit or detriment resulting from some act or omission of a public servant or volunteer public servant that is inconsistent with the proper performance of his or her public duties. ECONOMIC BENEFIT TANTAMOUNT TO A GIFT: Includes: A. any loan at an interest rate that is substantially lower than the commercial rate then currently prevalent for similar loans; or B. compensation received for private services rendered at a rate substantially exceeding the fair market value of the services. ELECTED OFFICER: Any person elected or appointed to hold the office of mayor or city council member. FINANCIAL INTEREST: A. To possess a substantial interest, or B. To hold a position in a business entity as an officer, director, trustee,partner, or employee or hold any position of management in a business entity. GIFT: Any gratuity, favor, discount, entertainment,hospitality, loan, forbearance, economic benefit tantamount to a gift, or other item having monetary value,unless consideration of equal or greater value is received. The term does not include a parking pass or free parking: a) for a parking lot if the parking lot is owned by the city; or b) for a parking lot that is not owned by the 3 city,when used for official city business. The term includes gifts of services, training, transportation, lodging, and meals,whether provided in-kind, by purchase of a ticket, payment in advance, or reimbursement after the expense has been incurred. The term "gift" is subject to the following: A. Gifts To Relatives Or Others, Attributable To Elected Officer Or Municipal Employee: A gift to a relative of an elected officer or municipal employee, or a gift to any other individual based on that individual's relationship with the elected officer or municipal employee, shall be considered a gift to the elected officer or municipal employee, if: 1) given with the knowledge and acquiescence of the elected officer or municipal employee, and 2)the elected officer or municipal employee knows, or with the exercise of reasonable care should know,that it was given because of the official position of the elected officer or municipal employee. • B. Food Or Refreshment Provided To Dependents: If food or refreshment is provided at the same time and place to both a public servant or volunteer public servant and the spouse, adult designee or dependent thereof, only the food or refreshment provided to the public servant or volunteer public servant shall be treated as a gift for purposes of this chapter. GOVERNMENTAL ACTION: Any official action on the part of the city, including, but not limited to: A. Any decision, determination, finding, ruling, or order; B. Any grant, payment, award, license, contract, subcontract, transaction, decision, sanction, or approval, or the denial thereof, or the failure to act in respect thereto; or 4 C. Any legislative, administrative, appointive or discretionary act of any public servant or volunteer public servant. GRANT OF HOSPITALITY OR GESTURE OF FRIENDSHIP: Any grant of lodging, food, or travel expenses, including the grant of gifts and remembrances such as birthday, holiday, or anniversary presents, given on the basis of personal friendship. LEADERSHIP EXPENSE FUND: Any fund of money established to pay expenses of an elected officer incurred or to be incurred in connection with the elected officer's official duties, including expenditures for: A. travel, lodging, food, or entertainment of a spouse, adult designee or other personal companion of the elected officer, if accompanying the elected officer on travel involving official city business; B. flowers, cards, or remembrances for funerals,holidays or similar events; or C. charitable or eleemosynary gifts or activities clearly disclosed by the elected officer. LEGAL DEFENSE FUND: Any fund of money established to pay legal expenses of an elected officer which arise in connection with: A. the elected officer's candidacy for or election to city office; B. the elected officer's official duties or position in the city; C. a threatened or actual criminal prosecution of the elected officer; or D. a civil action bearing on the elected officer's reputation or fitness for office. In no event shall monies in a legal defense fund be spent for a matter that is primarily personal in nature. 5 MUNICIPAL EMPLOYEE: Any person who is not an elected or appointed officer who is employed by the city as an employee on a full or part-time, at-will or merit basis. OUTSIDE EMPLOYMENT: Any employment, activity, or enterprise for compensation, including self-employment, performed by a public servant apart from his or her official assigned duties for the city. PROFESSIONAL INTEREST: Any interest which: A. results in a direct or immediate professional benefit or detriment to a public servant; or B. creates a fiduciary duty with respect to a professional interest and is distinguishable from the professional benefit or detriment to the public generally or the public servant's profession, occupation, or association generally. Professional interest provisions do not apply to a public servant's relative. PUBLIC BODY: Any branch, system, department, division, institution, agency, commission, board, bureau, tribunal, entity, or other unit of government or any quasi-governmental unit of the city. PUBLIC SERVANT: Any elected officer, any municipal employee, or any other person in a position of employment with the city, whether or not such person is compensated for his or her services,but does not include any volunteer public servant. REGULATED: Subject to the city's regulatory licensing, permitting, or approval procedures. RELATIVE: Any spouse, child,parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin of a public servant or of 6 the spouse of a public servant or volunteer public servant, including any step-relationship. Any adult designee is considered to be a relative for purposes of this chapter, including the extended familial relationships provided herein. SELL: The act to sign a bid, proposal, or contract; negotiate a contract; contact any public servant or volunteer public servant for the purpose of obtaining, negotiating, or discussing changes in specifications,price, cost allowances, or other terms of a contract; settle disputes concerning performance of a contract; or engage in any other lawful liaison with a view toward the ultimate consummation of a sale even if the actual contract therefore is subsequently negotiated by another person. SUBSTANTIAL INTEREST: The ownership, either legally or equitably,by a public servant or volunteer public servant, or his or her spouse or minor child, of at least ten percent (10%) of the outstanding shares of a corporation or a ten percent (10%) interest in any other business entity. TRANSACTION: Any deal, contract, agreement, arrangement,undertaking, or other matter, including any permit approval, lease, franchise, sale, or purchase. VOLUNTEER PUBLIC SERVANT: Any appointed person, other than an elected officer, serving on a special,regular, or full time committee, commission, authority, agency, or board of the city,who is not paid a salary or an hourly wage by the city for his or her services thereon. WAIVER: Any act to grant a waiver of any provision of this chapter which exempts any public servant, including any elected officer, municipal employee, city attorney or volunteer public servant pursuant to Section 2.44.180. 7 SECTION 3: Section 2.44.030 of the Salt Lake City Code shall be and hereby is amended to read as follows: 2.44.030 DISCLOSURE AND DISQUALIFICATION A. If the performance of a public servant or volunteer public servant constitutes any governmental action on any matter involving the public servant's or volunteer public servant's financial or professional interest and it is reasonably foreseeable that the decision will have an individualized material effect on such interest, distinguishable from its effect on the public generally,the public servant or volunteer public servant shall publicly disclose such matter: 1. to the city council, in the case of the mayor's disclosure; 2. to the mayor and the city council, in the case of the city council member's disclosure; or 3. in all other cases, to the mayor and to the members of the public body, if any, of which the public servant or volunteer public servant is a member. B. The disclosure shall be made in the manner prescribed in section 2.44.050 of this chapter and shall identify the nature and extent of such interests. C. The public servant or volunteer public servant who has a financial interest shall disqualify himself or herself from participating in any deliberation as well as from voting on such matter. The public servant or volunteer public servant who has only a professional interest need not disqualify himself or herself. D. The disclosure statement shall be entered in the minutes of the meeting of the public body. 8 SECTION 4: Section 2.44.040 of the Salt Lake City Code shall be and hereby is amended to read as follows: 2.44.040 PROHIBITED ACTS DESIGNATED A. A public servant or volunteer public servant may not: 1. Unless otherwise allowed by law, disclose confidential information acquired by reason of the public servant's or volunteer public servant's official position or in the course of official duties or use such information in order to: a) substantially further the public servant's or volunteer public servant's financial or professional interest or the financial or professional interest of others; or b) secure special privileges or exemptions for the public servant or volunteer public servant or others. 2. Corruptly use or attempt to use the public servant's or volunteer public servant's official position to: a) further substantially the public servant's or volunteer public servant's financial or professional interest or the financial or professional interest of others; or b) secure special privileges for the public servant or volunteer public servant or others. B. A public servant may not have a financial or professional interest in an entity that is doing business with the city department in which the public servant is employed. A volunteer public servant may not have a financial or professional interest in an entity that is doing business with the city department or division to whom the city committee, commission, authority, agency, or board of which the volunteer public servant is a member primarily provides direct assistance or direction. For purposes of this subsection, 9 the city department of a member of the city council shall be deemed to be the city council office,and the city department of the mayor shall be deemed to be all city departments. C. The following may not apply for or receive a loan or grant of money from the city:any elected officer,any relative of any elected officer,or any business entity in which any elected officer has a substantial interest. SECTION 5: Section 2.44.050 of the Salt Lake City Code shall be and hereby is amended to read as follows: 2.44.050 DISCLOSURE OF SUBSTANTIAL INTEREST A. Disclosure To City:Any public servant or volunteer public servant who is also an officer, director,agent,employer,or employee of any business entity,or the owner of a substantial interest in any business entity,including any business entity subject to city regulation,shall disclose any such position or employment and the nature and value of such position or employment as provided herein. B. Time Of Disclosure:Any public servant or volunteer public servant shall make the disclosure within thirty(30)days: I. after being appointed or elected or otherwise commencing employment or public service;and 2. during January of each year if such public servant's or volunteer public servant's position in the business entity has changed or if the value of such public servant's or volunteer public servant's interest in the entity has materially increased since the last disclosure.The disclosure shall be made in a sworn written statement in a form prescribed by the city and shall be filed with the mayor,or,in the case of disclosure 10 by the mayor or by the city council staff, with the city council. Unless otherwise provided by the law, the statements are public records and shall be made available for inspection by members of the city council and the public upon request. C. Value Of Interest: Unless otherwise required by law, where the value of an interest is required to be disclosed pursuant to this section, it shall be sufficient to report whether the value is less than fifteen thousand dollars ($15,000.00) or is fifteen thousand dollars ($15,000.00) or more. This section does not apply to instances where the value of the interest does not exceed two thousand dollars ($2,000.00). Life insurance policies and annuities are not included in this disclosure requirement and shall not be considered in determining the value of any such interest. SECTION 6: Section 2.44.060 of the Salt Lake City Code shall be and hereby is amended to read as follows: 2.44.060 OUTSIDE EMPLOYMENT A. Incompatible Employment: No public servant or volunteer public servant shall engage in any outside employment that is inconsistent, incompatible, or in conflict with his or her duties as a public servant or volunteer public servant, or with the duties, functions, or responsibilities of the city. Such prohibited outside employment includes, but is not limited to, employment: 1. Involving the use for private gain or advantage of his or her city working time or city facilities, equipment, or supplies, except as permitted under section 2.44.180 of this chapter; 11 2. Involving the receipt or acceptance by the public servant or volunteer public servant of any compensation from anyone, other than the city, for the performance of an act that the public servant or volunteer public servant would be required or expected to perform in the regular course of his or her city employment or as part of his or her duties as a public servant or volunteer public servant; 3. Involving the performance of an act that may later be subject, directly or indirectly, to the control, inspection,review, audit, or enforcement of the public servant or any other servant of the city. Such outside employment may only be engaged in after procedures have been adopted by the public servant's assigned department to ensure that all work done by the public servant is subject to direct review by the public servant's immediate supervisor; or 4. Involving such time demands as would render such public servant's performance of public duties demonstrably less efficient. 5. Subsections A3 and A4 of this section shall not apply to volunteer public servants. B. Applicability: This section shall not apply to part time employees and seasonal employees of the city. Members of the city council are not part time employees for purposes of this section. C. Disclosure: Before engaging in any outside employment that is permissible under this chapter: 1. Any elected officer shall disclose such outside employment as provided in section 2.44.050 of this chapter; 12 2. Any staff of the city council shall disclose such outside employment to the chair of the city council; 3. Any department head of the city shall disclose such outside employment to the mayor; and 4. Any other public servant shall disclose such outside employment to his or her department head. D. Outside employment shall not be denied unless it is in violation of the provisions of subsection(A) of this section. No public servant shall have the power to deny an elected officer his or her right to outside employment which is not prohibited under subsection (A) of this section. E. Department Rules And Regulations: Any department head shall adopt rules and regulations for his or her department regarding outside employment, including the denial thereof, to clarify the application of this chapter to the unique operations of that department, if such rules or regulations are consistent with the intent of this chapter and no less stringent. F. Advisory Opinion: If a public servant's outside employment is denied under subsection E of this section,the public servant may seek an advisory opinion from the city attorney regarding the matter. The city attorney shall issue such an opinion, but the city attorney shall not have the power to overrule the discretionary decision of the person who denied the consent. G. Certain Travel, Lodging, And Food Expenses And Cash Honoraria Are To Be Considered Outside Employment And Not Gifts: Any payment for travel, food, lodging, or entertainment expenses, or reimbursement therefor, or any other compensation or cash 13 honorarium, made to a public servant in connection with a public event, appearance, or ceremony unrelated to official city business or not furnished by the sponsor of such public event, appearance, or ceremony, shall be considered outside employment under this section, and not a gift under section 2.44.080 of this chapter. This subsection shall apply to any volunteer public servant,but only to the extent of requiring disclosure of such outside employment to his or her department head. H. Reports To Mayor: Within fifteen(15)working days following each February 1,May 1, August 1 and November 1, each department that has issued a denial of outside employment to a public servant shall file with the mayor copies of all such denials given during the previous yearly quarter. SECTION 7: Section 2.44.070 of the Salt Lake City Code shall be and hereby is amended to read as follows: 2.44.070 TRANSACTIONS INVOLVING THE CITY A. Disclosure Required: No public servant or volunteer public servant shall receive or agree to receive compensation from anyone other than the city for assisting any person or business entity in any transaction involving the city,unless he or she shall file a sworn written statement giving the information required by this section and disclose that information in an open meeting to the members of the affected body, if any, of which he or she is a member. Said disclosure shall be made in writing prior to the discussion on the matter and include the following information: 1. The name and address of the public servant or volunteer public servant involved; 2. The name and address of the person or business entity being or to be so assisted; and 14 3. A brief description of the transaction as to which service is rendered or is to be rendered and of the nature of the service performed or to be performed. This section shall not be construed to allow actions which are otherwise prohibited by city ordinances or state law B. Time And Location Of Disclosure Filing: The statement required to be filed by this section shall be filed within ten (10) days before the date of any agreement between the public servant or volunteer public servant and the person or business entity to be assisted or the public servant's or volunteer public servant's receipt of compensation, whichever time is earlier: 1)with the city recorder; 2)with the affected public body of which the public servant or volunteer public servant is a member; 3) in the case of disclosure by the mayor, with the chair of the city council; and 4)in the case of disclosure by a city council member, with the mayor. C. Disclosure Is Public Record: The statement shall be deemed public information and shall be available for examination by the public SECTION 8: Section 2.44.080 of the Salt Lake City Code shall be and hereby is amended to read as follows: 2.44.080 ACCEPTING OR MAKING GIFTS PROHIBITED A. In General: No public servant or volunteer public servant shall knowingly receive, accept, take, seek, or solicit, directly or indirectly, for himself or herself or another, a gift that the public servant or volunteer public servant knows, or with the exercise of reasonable care should know: 1) would influence the recipient to depart from the faithful and impartial 15 discharge of his or her public duties; or 2) is primarily for the purpose of rewarding the public servant or volunteer public servant for governmental action taken or not taken. B. No Solicitation of Gifts for Personal Matters: Except for gifts described as exceptions in Section 2.44.090 of this chapter, no public servant shall seek or solicit, or receive directly or indirectly, any gift for the purpose of addressing or dealing with personal matters or other matters not involving official city business. SECTION 9: Section 2.44.090 of the Salt Lake City Code shall be and hereby is amended to read as follows: 2.44.090 GIFT PROHIBITION EXCEPTIONS Except as otherwise provided in this section, section 2.44.080 of this chapter does not prohibit accepting: A. Campaign Contributions: A political campaign contribution covered or regulated by chapter 2.46 of this title. B. Gifts From Relatives: A bona fide gift from a relative,not given in violation of section 2.44.080 of this chapter,provided it is not given in exchange for, as consideration for, or as a reward for the recipient taking or refraining from taking any official city action, past, present, or future. C. Grants Of Hospitality; Gestures Of Friendship: An occasional grant of hospitality or gesture of friendship, not given in violation of section 2.44.080 of this chapter, if provided to an individual on the basis of personal friendship, and if it is from a friend who has not, does not and has no immediate plans to do business with the city or be 16 regulated by it, either individually or through a business entity in which the giver or a relative of the giver has more than a ten percent(10%) interest. D. De Minimis Nonpecuniary Gifts: An occasional nonpecuniary gift having a value of less than fifty dollars ($50.00), or any other amount provided the Municipal Officers' and Employees'Ethics Act, title 10, chapter 3, part 13, of the Utah code, or any successor section. E. De Minimis Remembrances; Items Of Nominal Value: Any occasional noncash remembrance,not given in violation of section 2.44.080 of this chapter, with a value less than one hundred dollars ($100.00), given for use by, or shared by the recipient of the gift with, the entire office or working group of which the recipient is a member; a plaque, trophy, or other item that is substantially commemorative in nature; or an item of nominal value, such as a greeting card,baseball cap, or T-shirt. F. Travel, Lodging,And Food Expenses Incurred In Connection With Official City Business: Reasonable expenses for food, travel, lodging, or scheduled entertainment of a public servant or volunteer public servant incurred in connection with public events, appearances, ceremonies, or other activities related to official city business,not given in violation of section 2.44.080 of this chapter, if furnished by the sponsor of such public event, appearance, ceremony, or other activity. G. Death Transfers: Subject to section 2.44.100 of this chapter, bequests, inheritances, and other transfers at death. H. Legal Defense Fund Contributions: Any contribution may be made to a legal defense fund which is not violative of section 2.44.080 of this chapter. 17 1. Any elected officer may establish a legal defense fund. Any such legal defense fund shall be a trust, administered and accounted for by an independent trustee of the elected officer's choosing. The elected officer may not solicit or receive contributions for legal defense fund purposes until such a trust has been created. The elected officer shall be solely responsible for raising funds for and directing the trustee to make expenditures from such fund, consistent with the provisions of this chapter. 2. In no event shall any elected officer simultaneously maintain more than one legal defense fund. Annually, the elected officer shall file a disclosure with the city recorder which provides an accounting and identities of contributors consistent with the title 52, chapter 5, part 2 of the Utah Code. 3. The trustee shall not accept more than$7,500.00 (seven thousand five hundred) dollars for the mayor or $1,500.00 (one thousand five hundred) dollars for any city council member in contributions to a legal defense fund from any one individual or organization. No person shall make a contribution to a legal defense fund in the name of another person or make a contribution with another person's funds in his or her own name, and no elected officer shall knowingly accept any such contribution. 4. During such time as any monies remain in a legal defense fund, the beneficiary of such fund shall comply with the reporting requirements of title 52, chapter 5 of the Utah code, or any successor sections. 5. Within ninety(90) days after determining that there are no related legal proceedings threatened or pending against him or her for which such funds would be eligible for use,the beneficiary thereof shall notify the trustee, in writing, of such determination. Such determination and notification may occur before or after the beneficiary leaves 18 elective office with the city. Within ninety (90) days after receipt of such notification, the trustee shall, as directed by the beneficiary in such notification, or,if the beneficiary does not so direct, in the trustee's sole discretion, either: a.)return such monies to the donors thereof on a pro rata basis;b.)transfer such monies to the general fund of the city; or c.) donate such monies to a tax exempt charity. 6. In no event shall monies in a legal defense fund be transferred to a campaign finance fund of any person. 7. On or before the next January 5 after the distribution of monies described in subsection H5 of this section, the elected officer shall file the report required by section 52-5-201 of the Utah code, or any successor section, and shall file a copy of such report with the city recorder. • I. Leadership Expense Fund Contributions: Any contribution may be made to a leadership expense fund which is not violative of section 2.44.080 of this chapter. 1. Any elected officer may establish a leadership expense fund. Any such leadership expense fund shall be a trust, administered and accounted for by an independent trustee of the elected officer's choosing. The elected officer may not solicit or receive contributions for leadership expense fund purposes until such a trust has been created. The elected officer shall be solely responsible for raising funds for and directing the trustee to make expenditures from such fund, consistent with the provisions of this chapter. 2. In no event shall any elected officer simultaneously maintain more than one leadership expense fund. If any monies are in a leadership expense fund, the 19 beneficiary of such fund shall comply with the reporting requirements of title 52, chapter 5 of the Utah code, or any successor sections. Annually,the elected officer shall file a disclosure with the city recorder which provides an accounting and identities of contributors consistent with title 52, chapter 5, part 2 of Utah Code. 3. The trustee shall not accept more than $7,500.00 (seven thousand five hundred) dollars for the mayor or $1,500.00 (one thousand five hundred) dollars for any city council member in contributions to a legal defense fund from any one individual or organization. No person shall make a contribution to a legal defense fund in the name of another person or make a contribution with another person's funds in his or her own name, and no elected officer shall knowingly accept any such contribution. 4. During such time as any monies remain in a legal defense fund, the beneficiary of such fund shall comply with the reporting requirements or title 52, chapter 5 of the Utah code, or any successor sections. 5. Within ninety(90) days after the beneficiary of a leadership expense fund leaves elective office with the city,the trustee shall distribute any monies remaining in such fund by either: a) returning such monies to the donors thereof on a pro rata basis;b) transferring such monies to the general fund of the city; or c) donating such monies to a tax exempt charity. The beneficiary of such a fund may,by providing written notice to the trustee within ninety(90) days after leaving elective office with the city, direct the trustee as to which of such distribution methods to use. In the event that the beneficiary does not so direct the trustee, the trustee shall, in its sole discretion, select the method of and make such distribution. 20 6. In no event shall monies in a leadership expense fund be transferred to a campaign finance fund of any person. 7. On or before the next January 5 after the distribution of monies described in subsection 3 of this section, the elected officer shall file the report required by section 52-5-201 of the Utah code, or any successor section, and shall file a copy of such report with the city recorder. J. Determinations Of Nonapplicability: Any gift is subject to determination of nonapplicability which is made pursuant to subsection 2.44.180B of this chapter. SECTION 10: Section 2.44.095 of the Salt Lake City Code shall be and hereby is enacted to read as follows: 2.44.095: GROUNDS FOR GIFT ACCEPTANCE OR REJECTION: A. A gift may be accepted pursuant to Section 2.44.090 A, B, C, E, G, H and I and: 1. in the case of a De Minimus Nonpecuniary Gift pursuant to Section 2.44.090 D, if valued at less than fifty dollars ($50); or 2. in the case of a sponsor gift pursuant to Section 2.44.090 F, if received in connection with official city business in the form of travel, lodging, food or scheduled entertainment. B. Notwithstanding subsection (A), a gift shall not be accepted if: 1. in violation of Section 2.44.080; or 21 2. pursuant to Section 2.44.090 D, if valued at fifty dollars ($50) or more, unless the public servant pays from personal funds to the donor the amount in excess so the gift is reduced in value to be less than fifty dollars ($50). SECTION 11: Section 2.44.100 of the Salt Lake City Code shall be and hereby is amended to read as follows: 2.44.100 GIFTS IN ANOTHER'S NAME PROHIBITED No person shall make, for the direct benefit of an elected officer or municipal employee, a gift in the name of another person or a gift with another person's funds in his or her own name, or a gift made on behalf of another person. No elected officer or municipal employee shall knowingly receive, accept, take, seek, or solicit, directly or indirectly, for his or her direct benefit, any such gift. SECTION 12: Section 2.44.110 of the Salt Lake City Code shall be and hereby is amended to read as follows: 2.44.110 RESERVED SECTION 13: Section 2.44.120 of the Salt Lake City Code shall be and here by is to read as follows: 2.44.120 REJECTION AND RETURN OF GIFTS; RECORDS A. A. Perishable Gifts: With respect to gifts not receivable under subsection 2.44.090E of this chapter, when it is not practicable to return a tangible item because it is perishable or cannot practicably be returned, the item may, at the discretion of the recipient, be given to an appropriate charity or destroyed. 22 A. B. Records Of Rejected, Destroyed Or Donated Gifts: No reporting is required for rejected or returned gifts or for gifts donated to charity. However, written documentation of such acts shall be maintained by the recipient of the gift for five (5) years and shall be made available for inspection as a public document upon written request. SECTION 14: Section 2.44.130 of the Salt Lake City Code shall be and here by is amended to read as follows: 2.44.130 PUBLIC CONTRACTS; PROCUREMENT B. Conflict Of Interest: 1. Conflict Of Interest Generally: No public servant or volunteer public servant shall participate directly or indirectly in making,recommending,preparing, or performing a discretionary function with respect to any contract with the city, including, without limitation, a procurement contract, when the public servant or volunteer public servant has actual knowledge that: a) The public servant or volunteer public servant or a relative of the public servant or volunteer public servant has a financial interest pertaining to such contract; b) The public servant or volunteer public servant or a relative of the public servant or volunteer public servant has a financial interest in a business entity that has a financial interest pertaining to such contract; or c) Any other person or business entity with whom the public servant or volunteer public servant or any relative of the public servant or volunteer public servant is 23 negotiating or has an arrangement concerning prospective employment is involved in such contract. 2. Financial Interest In A Blind Trust: A public servant or volunteer public servant or any relative of the public servant or volunteer public servant who holds a financial interest in a blind trust and its corpus shall not be deemed to have a conflict of interest with regard to matters pertaining to that financial interest as defined herein,provided that disclosure of the existence of the blind trust has been made affirmatively in writing to the: a) city council, in the case of the mayor; b)mayor, in the case of city council members and department heads; or c) applicable department head, in the case of any other public servant or volunteer public servant. 3. Bidding And Procurement: a) Any elected officer, and any business entity in which such elected officer has a financial interest, may not submit a bid or proposal regarding, or renew the term of, a contract within the official responsibility of that elected officer. A member of a city board, commission, committee, authority, or agency, and any business entity in which such member has a financial interest,may not submit a bid or proposal regarding, or renew the tern of, a contract within the official responsibility of that board, commission, committee, authority, or agency. b) Any public servant or volunteer public servant who serves on a city procurement committee must cease to serve on such committee if he or she has, or within the past year had, a financial interest in an entity that submits a bid or proposal that will be evaluated by that committee. 24 c) No public servant or volunteer public servant who serves on a city procurement committee may,during the two(2)years immediately following the date the related contract is awarded by the city,seek or accept employment or remuneration of any kind from a person or entity that submitted a bid or proposal that was evaluated by that committee. 4. Discovery Of Actual Or Potential Conflict Of Interest;Disqualification And Waiver: Upon discovery of an actual or potential conflict of interest,any public servant or volunteer public servant shall promptly file a written statement of disqualification and shall withdraw from further participation in the transaction or matter involved.The public servant or volunteer public servant may,at the same time,apply to the city attorney for an advisory opinion as to what further participation,if any,the public servant or volunteer public servant may have in the transaction or matter. C. Public Servant Or Volunteer Public Servant Disclosure Requirements: 1. Disclosure Of Benefit Received From Contract:Any public servant or volunteer public servant who has or obtains any benefit from any city contract with a business entity in which the public servant or volunteer public servant has a financial interest, shall report such benefit to the:a)city council,in the case of the mayor;b)mayor,in the case of city council members and department heads;or c)applicable department head,in the case of any other public servant or volunteer public servant,within thirty (30)days after the public servant or volunteer public servant has actual or constructive knowledge of a benefit received or to be received.However,this subsection shall not apply to a contract with a business entity in which the public 25 servant's or volunteer public servant's interest in the business entity has been placed in a disclosed blind trust. Disclosure pursuant to this subsection shall not exonerate any public servant or volunteer public servant from any violation of this chapter. 2. Failure To Disclose Benefit Received: Any public servant or volunteer public servant who knows or should have known of such benefit, and fails to report such benefit as • provided in subsection B1 of this section, is in breach of the ethical standards of this chapter. D. Gifts And Payoffs Related-To Procurement: 1. Gifts: It shall be illegal for any person to offer, give,or agree to give to any public servant or volunteer public servant or former public servant or former volunteer public servant, or for any public servant or volunteer public servant or former public servant or former volunteer public servant to solicit, demand, accept, or agree to accept from another person, a gift or an offer of employment in connection with any decision, approval, disapproval, recommendation, preparation of any part of a procurement requirement or a purchase request, action to influence the content of any specification or procurement standard, rendering of advice, investigation, auditing, request for ruling, determination, claim or controversy, or other particular matter, pertaining to any procurement requirement or a contract or subcontract, or to any solicitation or proposal therefor. 2. Payoffs: It shall be illegal for any payment, gift, or offer of employment to be made by or on behalf of a subcontractor under a contract to the prime contractor or a higher tier subcontractor or any person associated therewith, as an inducement for the award 26 of a subcontract or order. This prohibition applies whether a payment, gift, or offer is made before or after the award of a city contract or order. E. Prohibition Against Contingent Fees: It shall be illegal for a person to be retained, or to retain a person, to solicit or secure a city contract upon an agreement or understanding for a commission,percentage, or brokerage or contingent fee, except for retention of bona fide employees or bona fide established conunercial selling agencies for the purpose of securing business. SECTION 15: Section 2.44.140 of the Salt Lake City Code shall be and here by is to read as follows: 2.44.140 EMPLOYMENT OF CURRENT AND FORMER PUBLIC SERVANTS A. Contemporaneous Employment Prohibited: Except as provided in section 2.44.180 of this chapter,no public servant or volunteer public servant shall participate directly or indirectly on behalf of the city in the procurement or contracting process with respect to a city contract while such public servant or volunteer public servant is the agent or employee of any other party to such contract or any other person who has a financial interest in such contract. - B. Restriction On Former Public Servants Regarding Their Former Duties: 1. Permanent Disqualification Of Former Public Servant Personally Involved In A Particular Matter: No former public servant shall knowingly act as a principal or as an agent for anyone other than the city in connection with any of the following matters in which the city is a party or has a direct interest: a) a judicial or other proceeding, 27 application,request for a ruling, or other determination;b) a contract;c) a claim; or d) a charge or controversy; in which the public servant participated personally and substantially through decision, approval, disapproval,recommendation,rendering of advice, investigation, or otherwise while a public servant. 2. One Year Restriction Regarding Matters In Which A Former Public Servant Was Officially Responsible: With respect to matters that were within a former public servant's official responsibility while he or she was a public servant,but in which such public servant did not participate personally or substantially,the restrictions set forth in subsection A of this section shall apply,but only for a period of one year after cessation of the former public servant's official responsibility. C. Disqualification Of Business Entity In Which A Public Servant Or Volunteer Public Servant Has A Financial Interest:No business entity in which a public servant or volunteer public servant has a financial interest shall knowingly act as a principal or as an agent for anyone other than the city in connection with any of the following matters in which the city is a party or has a direct interest: 1) a judicial or other proceeding, application,request for a ruling, or other determination; 2)a contract; 3) a claim; or 4)a charge or controversy; in which the public servant or volunteer public servant participates personally and substantially through decision, approval,disapproval,recommendation, the rendering of advice, investigation, or otherwise. D. Selling To The City After Termination Of Employment Is Prohibited: No former public servant,unless the former public servant's last annual salary did not exceed thirty thousand dollars ($30,000.00), shall engage in selling or attempting to sell supplies, services, or construction to the city for one year following the date his or her employment 28 by the city ceased. The foregoing sentence shall not apply to sales or attempted sales pursuant to a contract awarded through an open and public bidding process. This subsection is not intended to preclude a former public servant from accepting employment with private industry solely because the former public servant's employer is a contractor with the city, nor shall a former public servant be precluded from serving as a consultant to the city. SECTION 16: Section 2.44.150 of the Salt Lake City Code shall be and here by is amended to read as follows: 2.44.150 NEGOTIATING EMPLOYMENT Any public servant or volunteer public servant shall not perform his or her official duties with respect to governmental action that involves a person or business entity which has a financial interest in such governmental action while the public servant or volunteer public servant is negotiating prospective employment with such person or business entity. SECTION 17: Section 2.44.160 of the Salt Lake City Code shall be and hereby is to read as follows: 2.44.160 COERCION OF BUSINESS OR CONTRIBUTIONS No public servant shall in any manner intimidate or coerce a public servant or volunteer public servant subordinate to him or her to do business with him or her or to make any financial contribution. SECTION 18: Section 2.44.170 of the Salt Lake City Code shall be and hereby is amended to read as follows: 2.44.170 ACQUIRING INTEREST IN A BUSINESS ENTITY 29 No public servant or volunteer public servant shall acquire any interest in a business entity at a time when such public servant or volunteer public servant believes or has reason to believe, based on information not available to the general public, that such business entity will be substantially and directly affected by any contract,transaction, zoning decision, or other governmental action of the city SECTION 19: Section 2.44.180 of the Salt Lake City Code shall be and hereby is amended to read as follows: 2.44.180 WAIVERS; DETERMINATIONS OF NONAPPLICABILITY A. Except with respect to the restrictions on gifts in section 2.44.080 of this chapter, the city council, in the case of the mayor; the mayor, in the case of city council members; the mayor and the chairperson of the city council,jointly,in the case of the city attorney; and the city attorney, in the case of any other public servants or volunteer public servants, may grant a waiver from the provisions of this chapter upon making a written determination that: 1. The public servant or volunteer public servant will be able to perform his or her official functions without actual bias or favoritism; and 2. The granting of the waiver will not be detrimental to the interests of the city. B. A determination of nonapplicability of the restrictions on gifts in section 2.44.080 of this chapter may be given by the mayor, in the case of the city council;by the city council, in the case of the mayor;by the mayor and the chairperson of the city council,jointly, in the case of the city attorney; or by the city attorney, in the case of any other public servant or 30 volunteer public servant. A determination of nonapplicability shall be in writing and shall be given only upon a determination that: 1. The gift was not given with the intent to influence governmental action; 2. There exists no substantial likelihood that the gift will influence governmental action; and 3. The giving of the determination of nonapplicability will not be detrimental to the interests of the city. C. Any determination of nonapplicability under this section shall include a description of the gift, its estimated value, and the reasons justifying its receipt which shall be filed as a public document with the city recorder. SECTION 20: Section 2.44.190 of the Salt Lake City Code shall be and hereby is amended to read as follows: 2.44.190: CLAUSE IN CONTRACTS: A. In every contract,bid,proposal, or other offer involving the city made by a nongovernmental entity, such nongovernmental entity shall make the following representation: REPRESENTATION REGARDING ETHICAL STANDARDS FOR CITY OFFICERS AND EMPLOYEES AND FORMER CITY OFFICERS AND EMPLOYEES The bidder,offeror, or contractor represents that it has not: (1)provided an illegal gift or payoff to a city officer or employee or former city officer or employee, or his or her relative or business entity; (2)retained any person to solicit or secure this contract upon 31 an agreement or understanding for a commission,percentage,or brokerage or contingent fee,other than bona fide employees or bona fide commercial selling agencies for the purpose of securing business;(3)knowingly breached any of the ethical standards set forth in the city's conflict of interest ordinance,Chapter 2.44,Salt Lake City Code;or(4) knowingly influenced,and hereby promises that it will not knowingly influence,a city officer or employee or former city officer or employee to breach any of the ethical standards set forth in the city's conflict of interest ordinance,Chapter 2.44. B. The city attorney may waive the representation requirement as provided in this section for certain state master contracts,bids proposals or other offers upon a written determination that it is in the best interest of the city to waive the representation requirement. SECTION 21:Section 2.44.200 of the Salt Lake City Code shall be and hereby is to read as follows: 2.44.200 INDUCEMENT TO VIOLATE PROHIB1'1'ED No person shall induce or seek to induce any public servant or volunteer public servant to violate any of the provisions of this chapter. SECTION 22:Section 2.44.210 of the Salt Lake City Code shall be and hereby is to read as follows: 2.44.210 ADVISORY POWERS OF THE CITY ATTORNEY A. Request For Advisory Opinion By Public Servants Or Volunteer Public Servants:Any public servant or volunteer public servant may request of the city attorney an advisory opinion concerning the application to him or her of the provisions of this chapter.The 32 city attorney shall accept and process these advisory opinion requests in accordance with the procedures set forth in this section. B. Advisory Opinion Upon City Attorney's Own Initiative: The city attorney on his or her own authority may render advisory opinions whenever he or she deems it in the public interest. C. Time For Decision; Public Review: As soon as practicable,but not later than thirty(30) days after he or she receives a request for an advisory opinion,the city attorney shall render a written opinion to the person who requested the opinion, and shall provide a copy of the opinion to the mayor and the city council. All advisory opinions shall be available for public review,but may be in such form and with such deletions as may be necessary to prevent the disclosure of the identity of the persons involved or to protect personal privacy interests. SECTION 23: Section 2.44.220 of the Salt Lake City Code shall be and hereby is to read as follows: 2.44.220 JUSTIFIABLE RELIANCE Any advisory opinion rendered by the city attorney,until amended or revoked by the city attorney, shall be a defense in any action brought under this chapter and shall be binding on the city in any subsequent proceedings concerning the person who requested the opinion and who acted in good faith reliance upon it,unless material facts were omitted or misstated by the person requesting the opinion. SECTION 24: Section 2.44.230 of the Salt Lake City Code shall be and hereby is amended to read as follows: 33 2.44.230 TRAVEL, LODGING, OR ENTERTAINMENT EXPENSES; REPORTING If someone other than the city pays for travel,lodging, or entertainment expenses of an elected official incurred in connection with official city business, such elected official shall,within thirty (30)business days after such expenses are incurred, file with the city recorder a public report detailing the amount and nature of such expenses and the name of the person or entity that paid for such expenses. Notwithstanding the foregoing, an elected official shall not be required to file a public report pursuant to this section detailing the cost of food or meals provided to the elected official. SECTION 25: Section 2.44.240 of the Salt Lake City Code shall be and hereby is amended to read as follows: 2.44.240 SANCTIONS A. Persons Who Are Not Public Servants Or Volunteer Public Servants: The city may impose any one or more of the following sanctions on a person who is not a public servant or a volunteer public servant for violations of the ethical standards in this chapter: 1. Written warnings or reprimands; 2. Termination of contracts; or 3. Debarment or suspension from contracting with the city. B. Right Of The City To Debar Or Suspend: Debarment or suspension may be imposed by the city for violations of the ethical standards of this chapter,provided that such action may not be taken without the concurrence of the city attorney. C. Due Process: All procedures under this section shall be in accordance with due process requirements, including,but not limited to, a right to notice and an opportunity for a 34 hearing prior to imposition of any termination,debarment,or suspension from being a contractor or subcontractor under a city contract. D. Recovery Of Value Transferred Or Received In Breach Of Ethical Standards: 1. General Provisions:The value of anything transferred or received in violation of the ethical standards of this chapter by a public servant,volunteer public servant,or other person may be recovered from both the public servant or volunteer public servant and the other person through judicial action. 2. Recovery Of Payoffs By The City:Upon a showing that a subcontractor made a payoff to a prime contractor or a higher tier subcontractor in connection with the award of subcontract or order thereunder,the amount of the payoff will be recoverable by the city hereunder from the recipient.In addition,that amount may also be recovered from the subcontractor making such payoff Recovery from one offending party shall not preclude recovery from any other offending party. SECTION 26:Section 2.44.250 of the Salt Lake City Code shall be and hereby is to read as follows: 2.44.250 APPEALS Notwithstanding any other provision of this chapter,a public servant under the career or civil service system who is found to have violated any of the provisions of this chapter and has had discipline imposed,may have such discipline reviewed in accordance with and as provided by law regarding such systems. SECTION 27:Section 2.44.260 of the Salt Lake City Code shall be and hereby is to read as follows: 35 2.44.260 VOIDABLE TRANSACTION Any contract or transaction that was the subject of governmental action by the city and that involved the violation of a provision of this chapter is voidable at the option of the city. SECTION 28:Section 2.44.270 of the Salt Lake City Code shall be and hereby is amended to read as follows: 2.44.270 VIOLATION;PENALTY In addition to any penalty provided herein,any person who knowingly and intentionally violates any provision of this chapter is guilty of a misdemeanor and may be dismissed from employment or removed from office as provided by law. SECTION 29:Section 2.44.280 of the Salt Lake City Code shall be and hereby is to read as follows: 2.44.280 MISDEMEANOR TO KNOWINGLY FILE FALSE COMPLAINT Any person who files a complaint against a public servant or volunteer public servant pursuant to this chapter,knowing that such complaint is frivolous,malicious,false,or otherwise without merit,shall be guilty of a misdemeanor. SECTION 30:Section 2.44.290 of the Salt Lake City Code shall be and hereby is enacted to read as follows: 2.44.290 PROCEDURE FOR COMPLAINT INVESTIGATION Any complaint alleging a violation of Chapter 2.44 which is filed against a public servant or volunteer public servant shall be filed with the mayor. The mayor shall investigate the complaint and refer the matter to the city attorney who may prosecute the violations consistent with section 10-3-928 of Utah code. If the city attorney in his or her professional judgment has a conflict of 36 interest,he or she shall refer the matter to the county attorney,district attorney or Office of the Attorney General who may investigate or prosecute the alleged violation. SECTION 31:EFFECTIVE DATE: This ordinance shall become effective on the date of its first publication. DATED this 22 day of March ,2011. CHAIlk.SON ATTEST: TY RECORD R Transmitted to Mayor on March 29, 2011 Mayor's Action: 1t Approved. Vetoed. MA R CO R R APPROVED AS TO FORM pat ram; Salt Lake City Attorneys Office Date ty, GC (SEAL) y A- t T''t By �z c t [ki Bill No. 11 of 2011. 49 Published: 4-11-11 HB ATIY-#16996-v2-Conflict of Loterest 2 44.D0C 37