004 of 2007 - relating to Conflict of Interest 0 07-1
• 0 07-2
SALT LAKE CITY ORDINANCE
No. q of 2007
(Conflict of Interest Amendments)
AN ORDINANCE AMENDING CERTAIN SECTIONS OF CHAPTER 2.44 OF THE SALT
LAKE CITY CODE,RELATING TO CONFLICT OF INTEREST.
Be it ordained by the City Council of Salt Lake City, Utah:
SECTION 1. That Section 2.44.020, Salt Lake City Code,be, and the same 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:
A. "Assist" means 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.
B. "Blind trust" means 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 service servant-beneficiary is not given notice of
alterations in, or other dispositions of,the property subject to the trust.
C. "Business entity" means 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.
D. "City regulated business entity" means any business entity for which the City
issues a license pursuant to any City ordinance, or that the City regulates.
E. "Compensation" means anything of economic value,however designated, that 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, and includes any forbearance.
F. "Corruptly" means done with wrongful intent and for the purpose of obtaining or
receiving any personal, financial, or professional benefit 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.
G. "Economic benefit tantamount to a gift" includes: 1) a loan at an interest rate that
is substantially lower than the commercial rate then currently prevalent for similar loans, and 2)
compensation received for private services rendered at a rate substantially exceeding the fair
market value of the services.
H. "Elected officer" means any person holding the office of Mayor or City Council
member.
I. "Executive employee" means any person classified as an at-will executive
employee by the City.
J. "Financial interest" means: 1) a substantial interest, or 2)holding a position in a
business entity such as an officer, director, trustee, partner, employee, or the like, or holding any
position of management in a business entity.
K. "Gift" means any gratuity, favor, discount, entertainment,hospitality, loan,
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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: 1) for a parking lot if the parking lot is owned by the City; or 2) for a parking lot
that is not owned by the 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:
1. Gifts To Relatives Or Others, Attributable To Elected Officer Or Executive Employee:
A gift to a relative of an elected officer or executive employee, or a gift to any other individual
based on that individual's relationship with the elected officer or executive employee, shall be
considered a gift to the elected officer or executive employee, if: a) given with the knowledge
and acquiescence of the elected officer or executive employee, and b) the elected officer or
executive 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 executive employee.
2. 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 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.
L. "Governmental action" means any action on the part of the City, including,but not
limited to:
1. Any decision, determination, finding, ruling, or order;
2. Any grant,payment, award, license, contract, subcontract, transaction, decision,
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sanction, or approval, or the denial thereof, or the failure to act in respect thereto; and
3. Any legislative, administrative, or discretionary act of any public servant or volunteer
public servant.
M. "Grant of hospitality or gesture of friendship" includes granting of lodging, food,
or travel expenses, and the granting of gifts or remembrances such as birthday,holiday, or
anniversary presents, given on the basis of personal friendship.
N. "Legal defense fund" means any fund of money established to pay legal expenses
of an elected officer that arise in connection with: 1) the elected officer's candidacy for or
election to office in the City; 2)the elected officer's official duties or position in the City; 3) a
threatened or actual criminal prosecution of the elected officer; or 4) 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.
O. "Leadership expense fund"means any fund of money established to pay expenses
of an elected officer incurred or to be incurred in connection with the carrying on by the elected
officer of his or her official duties, including, without limitation, expenditures for: 1) the travel,
lodging, food, or entertainment of a spouse or other personal companion of the elected officer,
when accompanying the elected officer on travel involving official City business; 2) the giving of
flowers, holiday or greeting cards, or remembrances for funerals or similar events; or 3)
charitable or eleemosynary gifts or activities clearly identified by the elected officer.
P. "Outside employment" means any employment, activity, or enterprise for
compensation, including self-employment,performed by a public servant apart from his or her
official assigned duties and required duty times for the City.
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Q. "Public servant" means any elected officer, any executive 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.
R. "Regulated" means being subjected to the City's regulatory licensing, permitting,
or approval procedures.
S. "Relative" means father, mother, husband, wife, son, daughter, sister,brother,
mother-in-law, father-in-law,brother-in-law, sister-in-law, uncle, aunt, niece, nephew,
grandparent, grandchild, half-brother, half-sister, first cousin, son-in-law, daughter-in-law,
stepfather, stepmother, stepson, stepdaughter, stepbrother, or stepsister.
T. "Sell" means signing a bid,proposal, or contract; negotiating a contract;
contacting 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; settling disputes concerning performance of a contract; or any other liaison activity with
a view toward the ultimate consummation of a sale although the actual contract therefor is
subsequently negotiated by another person.
U. "Substantial interest" means the ownership, either legally or equitably,by a public
servant or volunteer public servant, or his or her spouse or minor children, of at least ten percent
(10%) of the outstanding shares of a corporation or a ten percent (10%) interest in any other
business entity.
V. "Transaction" means any deal, contract, agreement, arrangement, undertaking, or
other matter, including, without limitation, any permit approval, lease, franchise, sale, or
purchase.
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W. "Volunteer public servant" means any person 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.
SECTION 2. That Section 2.44.030, Salt Lake City Code,be, and the same hereby is,
amended to read as follows:
2.44.030 Disclosure And Disqualification:
Whenever the performance of a public servant's or volunteer public servant's official duty
shall require any governmental action on any matter involving the public servant's or volunteer
public servant's financial,professional, or personal interests 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 disclose such
matter to the city council, in the case of the mayor, and in all other cases to the mayor and to the
members of the body, if any, of which the public servant or volunteer public servant is a member.
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. The public servant or volunteer public
servant shall disqualify himself or herself from participating in any deliberation as well as from
voting on such matter.
SECTION 3. That Section 2.44.040, Salt Lake City Code, be, and the same 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
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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: 1) substantially further the public servant's or
volunteer public servant's personal, financial, or professional interest or the personal, financial, or
professional interest of others; or 2) 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: 1) further the public servant's or volunteer public servant's personal,
financial, or professional interest or the personal, financial, or professional interest of others; or
2) secure special privileges, treatment, or exemptions for the public servant or volunteer public
servant or others.
B. A public servant may not have a financial 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 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(B), 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. No elected officer, spouse or child of an elected officer, or business entity in
which an elected officer has a substantial interest, may apply for or receive a loan or grant of
money from the City.
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SECTION 4. That Section 2.44.050, Salt Lake City Code, be, and the same hereby is,
amended to read as follows:
2.44.050 Disclosure Of Substantial Interest:
A. Disclosure To City: Every 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, without limitation, any business entity
subject to City regulation, shall disclose, as hereafter provided, any such position or employment
and the nature and value of such position or employment.
B. Time Of Disclosure: Public servants and volunteer public servants shall make
such disclosures within thirty(30) days after being appointed or elected or otherwise
commencing their employment or public service, and again 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. Such 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 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 greater than fifteen thousand
dollars ($15,000.00). Notwithstanding the above, this section does not apply to instances where
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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 5. That Section 2.44.060, Salt Lake City Code,be, and the same 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, or
inimical to,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.
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. If the performance of
the act may later be subject, directly or indirectly, to the control, inspection, review, audit, or
enforcement of another public servant of the City, such outside employment may only be
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engaged in after procedures have been adopted by the department to which the public servant is
assigned 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.
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. Elected officers shall disclose such outside employment as provided in section
2.44.050 of this Chapter;
2. Staff of the City Council shall disclose such outside employment to the Chairperson of
the City Council;
3. Heads of departments of the City shall disclose such outside employment to the Mayor;
and
4. All other public servants shall disclose such outside employment to their department
head.
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 that is not prohibited under subsection A of this Section.
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D. Department Rules And Regulations: Department heads shall adopt rules and
regulations for their department regarding outside employment, including the denial thereof, that
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.
E. Advisory Opinion: If a public servant's outside employment is denied under
subsection D 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 regarding a request,
but the City Attorney shall not have the power to overrule the discretionary decision of the
person who denied the consent.
F. 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
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 volunteer public
servants,but only to the extent of requiring them to disclose such outside employment to their
department head.
G. 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 a copy of all such denials given during
the previous yearly quarter.
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SECTION 6. That Section 2.44.070, Salt Lake City Code, be, and the same 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
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 that 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 body of which the public servant or volunteer
public servant is a member; 3) in the case of disclosure by the Mayor, with the Chairperson of the
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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 7. That Section 2.44.080, Salt Lake City Code, be, and the same 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 discharge of his
or her public duties; or 2) is primarily for the purpose of rewarding the public servant or
volunteer public servant for official 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 8. That Section 2.44.090, Salt Lake City Code, be, and the same 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
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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 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 in the corresponding provision
of 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 under 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
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Duties: Reasonable expenses for food, travel, lodging, and scheduled entertainment of a public
servant or volunteer public servant incurred in connection with public events, appearances, or
ceremonies 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, or ceremony.
G. Death Transfers: Subject to Section 2.44.100 of this Chapter,bequests,
inheritances, and other transfers at death.
H. Legal Defense Funds: If not given in violation of Section 2.44.080 of this Chapter,
any contribution to a legal defense fund, as provided below.
1. An 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. An 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 an elected officer simultaneously maintain more than one legal
defense fund.
3. The trustee shall not accept more than two thousand five hundred dollars ($2,500.00)
in contributions to a legal defense fund from any one individual or organization. The trustee shall
not accept, in the aggregate, more than fifty thousand dollars ($50,000.00) in contributions to a
legal defense fund. 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.
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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 63, chapter 96 of the Utah Code, or any
successor sections.
5. Within ninety(90)days after determining that there are no legal proceedings threatened
or pending against him or her the expenses of which are eligible for payment from such legal
defense fund, the beneficiary thereof shall notify the trustee, in writing, of such determination.
Such determination and notification may occur before or after the beneficiary leaves 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 63-96-103 of the
Utah Code, or any successor section, and shall file a copy of such report with the City Recorder.
I. Leadership Expense Funds: If not given in violation of Section 2.44.080 of this
Chapter, any contribution to a leadership expense fund, as provided below.
1. An 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. An elected officer may not solicit or receive contributions for
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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. While any monies are in a leadership expense fund, the beneficiary of such fund shall
comply with the reporting requirements of title 63, chapter 96 of the Utah Code, or any successor
sections.
3. Within one hundred eighty(180) 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.
4. In no event shall monies in a leadership expense fund be transferred to a campaign
finance fund of any person.
5. On or before the next January 5 after the distribution of monies described in subsection
I3 of this Section, the elected officer shall file the report required by section 63-96-103 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 for which a determination of
nonapplicability is made pursuant to subsection 2.44.180B of this Chapter.
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SECTION 9. That Section 2.44.100, Salt Lake City Code, be, and the same 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 executive 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 executive employee shall
knowingly receive, accept, take, seek, or solicit, directly or indirectly, for his or her direct benefit,
any such gift.
SECTION 10. That Section 2.44.130, Salt Lake City Code,be, and the same hereby is,
amended to read as follows:
2.44.130 Public Contracts; Procurement:
A. 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
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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 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 shall not be deemed to have a conflict of interest with regard to matters pertaining to that
financial interest,provided that disclosure of the existence of the blind trust has been made 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. An 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 term 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.
c. No public servant or volunteer public servant who serves on a City procurement
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committee may, during the two 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, a 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.
B. Public Servant And 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 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.
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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.
C. 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 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.
D. 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
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employees or bona fide established commercial selling agencies for the purpose of securing
business.
SECTION 11. That Section 2.44.140, Salt Lake City Code,be, and the same hereby is,
amended 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, 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
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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 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 12. That Section 2.44.150, Salt Lake City Code, be, and the same hereby is,
amended to read as follows:
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2.44.150 Negotiating Employment:
A public servant or volunteer public servant shall not perform his or her official duties
with respect to City action that involves a person or business entity that has a financial interest in
such City action while the public servant or volunteer public servant is negotiating prospective
employment with such person or business entity.
SECTION 13. That Section 2.44.170, Salt Lake City Code, be, and the same hereby is,
amended to read as follows:
2.44.170 Acquiring Interest In A Business Entity:
No public servant or volunteer public servant shall acquire an 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 official
action of the City.
SECTION 14. That Section 2.44.180, Salt Lake City Code,be, and the same 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
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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
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 official action;
2. There exists no substantial likelihood that the gift will influence official action; and
3. The giving of the determination of nonapplicability will not be detrimental to the
interests of the City.
Any such determination of nonapplicability shall include a description of the gift, its estimated
value, the reasons justifying its being received, and shall be filed as a public document with the
City Recorder.
SECTION 15. That Section 2.44.190, Salt Lake City Code, be, and the same hereby is,
amended to read as follows:
2.44.190 Clause In Contracts:
In every contract,bid, proposal, or other offer involving the City made by a non-
governmental entity, such non-governmental entity shall make the following representation:
REPRESENTATION REGARDING ETHICAL STANDARDS FOR CITY OFFICERS AND
EMPLOYEES AND FORMER CITY OFFICERS AND EMPLOYEES
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•
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 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, Salt Lake City Code.
SECTION 16. That Section 2.44.230, Salt Lake City Code, be, and the same hereby is,
amended to read as follows:
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 ten (10)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 17. That Section 2.44.230, Salt Lake City Code,be, and the same hereby is, re-
numbered and amended to read as follows:
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•
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
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
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• •
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 other offending
parties.
SECTION 17. That Section 2.44.240, Salt Lake City Code,be, and the same hereby is,re-
numbered and amended 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 18. That Section 2.44.250, Salt Lake City Code,be, and the same hereby is,re-
numbered and amended to read as follows:
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 19. That Section 2.44.260, Salt Lake City Code, be, and the same hereby is,re-
numbered and 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.
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SECTION 20. EFFECTIVE DATE. That this Ordinance shall take effect on the date of
its first publication.
Passed by the City Council of Salt Lake City,Utah,this 22nd day of
� A
February , 2007.
CHAIRPERSON
ATTEST:
CHIEF DEPUTY C TY CORDER
Transmitted to the Mayor on — Q7
Mayor's Action: X Approved. Vetoed.
AYOR
ATTEST:
CH F DEPUTY Y RE ORDER
APPROVED AS TO FORM
Salt Lake City Attomeys Office
(SEAL) "' YG{''+, Date 2- Z 3—n^7
�t , By —17J
Bill No. 4 of 2007 '\ wv`i y
Published: Mare 15, 2007 %.,1•ORA
I:\Ordinance 07\Amendment to Chap 2.44 conflict of interest 2-23-07 clean.doc
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