
Subject
title
Discussion, Instructions and possible introduction and possible adoption of an Ordinance to amend Chapter 16 of the Rockville City Code entitled Public Ethics, in conformance with State law, by adding a definition of “quasi-governmental entity” and “name of a business or legal entity;” by prohibiting a former City official or employee from disclosing confidential information; by prohibiting City officials and employees from accepting gifts from entities that represent the interests of counties and municipalities; by modifying the financial disclosure requirements; and by including an anti-retaliation provision for individuals who report or participate in the investigation of a potential violation of local ethics laws.
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Department
City Attorney's Office

Recommendation
The City Attorney’s Office recommends the Mayor and Council introduce this ordinance that amends Chapter 16 of the Rockville City Code in conformance with requirements of Maryland Ethics law.
If the Mayor and Council wish to introduce the ordinance and proceed to adoption at the same meeting, the ordinance should first be introduced, then a motion should be made to waive the layover period. If the motion to waive the layover period is approved by an affirmative vote of six or more members of the Mayor and Council, a motion to adopt the ordinance can then proceed.

Change in Law or Policy
This Code amendment is required by State law. It has been reviewed by the State Ethics Commission staff attorney and is in the form acceptable to that Commission.

Discussion
The Maryland Public Ethics statute was amended in 2021. The main edits include:
1. Expanding the current prohibition on officials and employees from disclosing information not available to the public for economic benefit or other private interests to include former officials or employees;
2. Including receipt of benefits from an association engaged in representing counties or municipalities in the definition of gifts or favors that need to be reported;
3. Expanding the information included in the Financial Disclosure form that cannot be disclosed to the public to include consideration received from the University of Maryland Medical System, a governmental entity of the State or local government in the State, or a quasi-governmental entity of the State or local government of the State;
4. Changing the interests in business entities that must be disclosed to include an interest held by the person filing the financial disclosure in a business entity in which the individual held a 10% or greater interest, a business entity in which that business entity held a 25% or greater interest, a business entity in which that business entity held a 50% or greater interest, and a business entity in which the individual directly or indirectly through an interest in one or more combination of other business entities holds a 10% or greater interest; and
5. Providing that an official or employee may not retaliate against an individual for reporting or participating in an investigation of a potential violation of the local ethics law or ordinance.

Mayor and Council History
This is the first time this Code amendment has been brought before the Mayor and Council.

Public Notification and Engagement
These revisions are required by State law. There has not been a public notification and engagement process.

Boards and Commissions Review
This Code amendment has been reviewed by the Rockville Ethics Commission.

Next Steps
After adoption, the City Code will be amended and, to the extent necessary, the Financial Disclosure Forms and instructions relating to those forms will be updated. The State Ethics Commission will also be notified that the City has updated the City Code in conformance with State law.
