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HomeMy WebLinkAbout7.1 2nd reading of AN ORDINANCE AMENDING CHAPTER 8, "VILLAGE GOVERNMENT MISCELLANEOUS PROVISIONS," SECTION 115, "CONFLICTS OF INTEREST," OF THE VILLAGE CODE OF MOUNT PROSPECT, ILLINOIS.M+awn �'xyt�lts�=e Item Cover Page Subject 2nd reading of AN ORDINANCE AMENDING CHAPTER 8, "VILLAGE GOVERNMENT MISCELLANEOUS PROVISIONS," SECTION 115, "CONFLICTS OF INTEREST," OF THE VILLAGE CODE OF MOUNT PROSPECT, ILLINOIS. Meeting September 3, 2024 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD Fiscal Impact (Y/N) Dollar Amount Budget Source Category OLD BUSINESS Type Action Item Information Elected Officials Ethics Ordinances: Committee of the Whole Presentation Review Current Practices and Direction is a top priority policy agenda action from the 2024-2025 Strategic Plan. Village Board members expressed interest in discussing concerns about conflict of interest and the need for a single elected official ethical regulation and guidance document. Staff and Village Attorneys completed a review of village ordinances, policies, state and federal legislation and found that most of the identified ethical issues are already addressed through multiple regulations; village code, state acts, internal policies, etc. Discussion The Village Attorney and staff provided the Village Board with a review of village ordinances, policies, state and federal legislation for discussion at the June 18, 2024, Committee of the Whole meeting. Staff found that most of the ethical issues village board members identified as concerns are already addressed through multiple regulations including the Village Code, state acts, internal policies, etc. The Village Board discussed the existing village code language and ethical policies and the result was for the Village Attorney and staff to draft amendments to the existing village language regarding: • Codfying the common law conflict of interest; • Anti -nepotism policy; • Express a fiduciary duty on the part of Village public officials to protect confidential information; • A procedure for disclosing and resolving conflicts of interest; • Reporting financial interest by Village public officials; and • Establish penalties for violations of 8.115 Conflicts of Interest. In addition, definitions in the 8.116 Rules and Definition were folded into 8.115 in the revision as well as revised accordingly for the proposed changes to the section. Two versions of the draft ordinance were presented for consideration at the August 20th Village Board Meeting. One version was drafted to include an anti -nepotism policy based on the June 18th Committee of the Whole discussion and another that would include any subsidiary public body of the village instead of limiting appointments to certain boards and commissions. The Village Board discussed the ordinances and the Village Attorney responded to questions. The preferred version included 'any subsidiary public body of the village' in the anti -nepotism policy. However, minor edits were suggested to the definition of immediate family to include domestic partner and cohabitant, and to the Disclosure Statements making it apply to the tax year and not a 12 months period. Alternatives 1. Approve the proposed ordinance amending Chapter 8, "Village Government Miscellaneous Provisions," Section 115, "Conflicts of Interest," of the Village Code. 3. Action at the discretion of the Village Board. Staff Recommendation Action at the discretion of the Village Board. The staff recommends implementing an annual ethics training to improve awareness of ethical obligations. Attachments 1. COW _Meeting_06.18.2024_Ethics_Agenda_ltem 2. Chapter 8.115 Redline 08.28.2024 V3.0 3. DRAFT Ethics Ordinance (Clean) on 87_2024(2017065.1)_08282024V3.0 Item Cover Page Subject, Ethical Standards Discussion Meeting June 18, 2024 - VILLAGE BOARD/COMMIITTEE OF THE WHOLE REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD Fiscal Impact (YIN) Category DISCUSSION ITEMS FOR COMMITTEE OF THE WHOLE Type Presentation Information Elected Officials Ethics Ordinances: Committee of the Whole Presentation Review Current Practices and Direction is a top priority policy ageinda action from the 2024-2025 Strategic Plan. This action was carried over from the 2023 — 2024 Strategic Plan and is the result of Village Board members expressing interest in discussing concerns about conflict of interest and a need for a single electeid officials ethical regulation and guidance document. Concerns include but are not limited to public office not being used for political or financial gain, confidentiality, represeintation, and endorsements. Staff and Village Attorneys completed a review of village ordinances, policies, state and federal 'egislation and found that most of the identified ethical issues are already addressed through multiple regulations; village code, state acts, internal policies, etc. Discussion An ethical code provides a framework to assist an organization's membeirs'decision-making by understanding the difference between right and wrong and establishing a commitment to uphold professional values, generating and sustaining trust, demonstrating respect and fairness. TheiTillagei adopted ordinance 2678 establishing the "Conflicts of Interest", Tillage Code Section 8.115, in 1976. It remained unchanged until 1997 when it was updated to reflect changes in the State Ethics Code. This included adding favors to the definition of Glifts, adding a Self -Dealing subsection and inserting a requirement to disclosing family member employment in businesses seieking zoning consideration. In 2003, the subsection "Disclosure Statements" had seveiral minor modifications which weire focused on wording the questions so as not to be intrusive while still assuring a Village official is neither doing business with the Village or receiving any benefit from the Village that is not available to any other resident on the same basis. The 2004 code changes to Section 8.115 were required to implement the provisions in the State Officials and Employees Ethics Act. In 2010, Ordinance 5815 then deletes the Disclosure Statement questions that were codified. This would have provided the flexibility to modify the questions without codifying each change. Ordinance 6215 approved 9- 15-2015 amends 8.115 "Conflicts of Interest" to clean up left over language regarding the Disclosure Statement questions that weire removed from the Village Code by Ordinance 5815 in 2010. The Villagei's Conflicts of Interest language has largely remained unchanged since it was adopted in 1976 other than adding subsection for the State Officials and Employees Ethics Act. Requested Review of Ethical Language Area of Review Existing Village Code or Policy, State or Federal Legislation Conflicts of Interest See 8.115.A. Declaration of Policy requires -Best interest of the Village and residents that all officials, elected, appointed and -Avoid creating the appearance of impropriety salaried employees be independent and before the public impartial, that public office not be used for -not use position for personal gain personal gain; and the public have confidence in the integrity of its government. They are bound to observe in their official acts the highest standards of morality and to discharge their duty faithfully of their off ice.... recognizing that the public interest must be their primary concern. (See the attached copy of Section 8.11 5 for the complete code language. Statement of Economic Interest Per Village Code 8.115. F. Disclosure Statement, all public officials shall file with the Village Clerk each year a disclosure statement. In addition, the County also requires a statement of economic interest to be filed per the Illinois Government Ethics Act (5 ILCS 420/) Gift Ban The Village Code 8.115 D. Gifts, Favors or Other Considerations states that no public official or his/her immediate family shall accept any gift (in excess of $50), favor or consideration that may tend to influence the official in the discharge of their duties. The State Officials and Ethics Act - Article 10 - Gift Ban Financial Conflicts The Village Code .115.E. Official Activity: This subsection addresses self-dealing. A public office shall not enter into any business arrangement with Village (other than the job to which the official was appointed or elected) whereby the person receives any kind of compensation or consideration. The Public Official Prohibited Activities Act prohibits a person holding any office, elected or appointed, from having financial interest in a contract they may be called to act or vote on. Illinois Municipal Code also includes an interest in contracts section, which restricts municipal officials from having financial interests in any contract. Fiduciary Duty Public officials must act in a manner according with their common law fiduciary -duty obligation. Official Misconduct The Illinois Criminal Code 720 ILLS 5133-3 defines Official Misconduct as if a public officer or employee commits any of the following acts: Intentionally or recklessly fails to perform any mandatory duty as required by law;or Knowingly performs an act which they know they are forbidden by law to perform;or with intent to obtain a personal advantage for themselves or another, they perform an act in excess of their lawful authority; or Solicit or knowingly accepts for the performance of any act a fee or reward which they know is not authorized by law. There is also language in the 720 ILCS, 5 regarding bribes and solicitation misconduct. Lobbying Illinois Government Ethics Act prohibits elected officials from compensated lobbying. The Lobby Registration Act prohibits public officials from soliciting/communicating with an official for the ultimate purpose of influencing action NOT exclusively on behalf of that unit of local government. Bids and Awarding Public Contracts The Village is an Article 5 managerial form of government and the departments within the Village operate under the general supervision and control of the manager. In the Village Code, Chapter 4 Appointive Village Officers, Article 1 Village Manager - Section 4.103 - Powers and Duties of the Village Manage establishes the procurement authority including negotiating and awarding contracts and outline a process for reporting to the Village Board purchases related damages caused by accident or meeting the public emergency, The Village's Purchasing Policies and Procedures Manual establishes requirements for public bidding and purchasing processes. The Village also complies with state acts regarding competitive bidding and IL Prevailing Wage Act. Prohibiting sexual harassment and providing The Village's Anti -Discrimination and a mechanism for reporting, and independent Harassment Policy covers the Mayor and review of allegations made against an elected Board of Trustees and all employees. It official applies to conduct occurring within the workplace itself and other work-related settings such as Village business trips and/or Village business-related social events. The policy includes a complaint reporting and review process. The Village also has a Non -Discrimination and Equal Employment and Harassment Policy with the Employee Handbook. The Illinois Human Rights Act, State Officials and Employees Ethics Act, and the Civil Rights Act all apply. The Village conducts annual anti- discrimination and harassment training for all employees. Village Travel Policy The Employee Handbook includes a subsection outlining an approval process for Expenses for Professional Conferences pertaining to employees. Department Directors can approve the travel and training if the total cost is expected to be less than $,1,000. Advanced approval is required from both the Department Director and Village Manager (or Finance) in cases where training is more than $1,000. The'Tillage Attorney and staff will be present to facilitate discussion and address questions, from the Village Board. Alt,erna,tives 1., Discuss current code sections and Village policies pertaining to conflicts of interests and ethics. 2., Staff recommends implementing annual on-line ethics training. 3., Action at the discretion of the Village Board. Staff Recommendation Staff recommends implementing an annual ethics training to improve awareness of ethical obligations. Attachments 8.115: CONFLICTS OF INTEREST- A.RulesandlDefinitions. The lanjiu ted in accordance with the followinj, 1. The si a n d t h e qjqraLjft=smgqWr� 2- The word "shaLL" Is mandator ernirssive- 3. The masculine gender includes the feminine and neuter. —B—. -Whenever in this article the followi ng words and phrases have been usedtheyshall, for the put ` ibad to t he rnjR1his=sacYont_ex= when the context otherwise indicates: AIPIP011iN r1EID OFFICIAL-: Any appointive officer, as set forth in chapter 4 of this code. BUStNESS ENTITY: A rofit_boWding, a PLQPAffl:or�2, _PAMMMW corparal(MM association. ECONOMIC RIBLA1 K)INSIHIIIII: Any financial dealing, business, relationship or client representation. rhis shall includes anytransaction o: r dealing of any kind or nature with a person or business, seeking village approval, where the value of thegoocls, service or other benefit. exchanged exceeds, the amount. an individual is, allowed to accept from a prohibited source pursuant. to 5 1111 CS /30/10 15(12) of the State Officials and Employees Ethics Act.. However, in no event shall the term economic relationship be deemed to include_a transaction in which the public official or Employee is, the consurner of a good or service where the consumption of the good or service occurs in the Formatted: Line spacing: Double ... .. ..... . Formatted: Indent: First line: 0.5", Line spacing: Double ...... ........................................................................... ... ... ... ... .. . ... Formatted: Line spacing: cing: Do u bIe ........... . ..... ............... .............. ......... .. ..... ........................................ on.-Jinsary course of Ebusiness an ¢.-] the price of the goo ¢.-] or service is, ff'ixe,.-] rbytthe rmerehsant. or service provider is;_nu ¢lifffr_rentt from _tthsat. which is ufffr rr,¢1 to the general public. If;eunurmiar rr. lsattion hi shall also specifically include campaign contributions totaling, more than $150.00 (whether in cash or in kim-1) rbytthe person or ibussine } } seekingvillsage approval rnw.-Je to or for the benefit of the public official or the public official's campaign committee or_c arnp ai,gn fund in the p astt,_ttuur year time period. .__ FIIINAIN IIIAII iiiN rll- IFilf;_sr. Any_econurmiar interest or relationship, whether by ownership, trust, purchase, sale, lea=se, contract., option, investment, employment, gift,, fee or otherwise. rhis =shall. include any such interest whether present, prrarmise,alor reasonably expectterl, whether direct. or it ¢lirect.; whether or not. legally enforceable; whether in the person or in€a parent or sou bsk-flary corporation, or in another sukbsi¢1i;arvuff the sarne parent corporation. A financial _interest _h;all include, but is expressly not. limited to, any a,.conornic relationship, as s_rtt forth above, of the public official ur_IEmployee's irnrii eq .-Ji<atte family, as well as any econrrr_i interest hek.-I by an agent on behalf ' of 2a public official orEmployee or their immediate ff'2armily. Ila shall also include any econormic interest held by an agent urrbehalf of an official or ernf.Aeyee by a ousiness entity rm an<agr. ¢1 or conttroHed by or by ;a trust in which a puhlie official or Employee has <a substantial interest. A ou s inc s ss entity is controlled by ax public official or Employee when that. person or that. person's irmrmc.¢1i;atte family, singly or in the aggregate, possess, a majority ownership interest in the entity. An official or_employee has ,aSuis,t. anttial intterestt, in sa ttru;stt when that. person or that. person's immediate family, singly or in the aggregate has a present or future interest worth more than $1,000.00. "Financial intterr stt shall not. include ownership through purchase at. fair marker. value of less than _1 % of the sharesoff sa corporation whose shares are regi atterc,¢:1_;and ttrw.-J ,¢1 on sa_nationally recognize,.-] securities market. "Financial IInttere att shall also not. inelw.-Je authorized corn pen ssar.ion or salary paid to an public official or Employee for services rem -Jere¢.-] to the Village of Mount. Prospect., or any economic benefit. generally available to the resk-Jents of the villal2c. GIFT: Any -gratuity, ¢Jiscount., entertainment., hospit.ality, loan, forbearance, property, real or personal ta ngta1e=qLmMnMb to mount setfortlim appgrrdj&& division I of this cocleinclw.-Jing but not. limited to cash, fom.-] am -1 drink, am -1 honoraria for speaking eng,,agernent.s relate ] to or atAribut.able togovernment. employment or the official position of an employee, member, or officer pmparty"s full market value. Gifts from an individual's spouse, _c h i l d _pa rent, grandparent,,grandchild, brother, sister, parent- in-law, brother-in-law, sister-in-law_,qunt, uncle,or first cousin, o the spouse of any suchgersorf, orglfts to a _church,-rehg4us _as s-u-cliunder i_the proviisions of the internal revenue code shall not be this definition. Gifts of informational material such as books, laarnphle_tsreports, calendars or s of tfi[s�finruon. ........................................................................................................................................................................................................................................ . II'-1MEDIATE FAIN111-Y: An individual's spouse, oornestic partner, cohabitant, dependent children or Formatted: Highlight ......................................................................................................................................................................................................................................... others claimed b)tsucICindivic1uq1 as INTEREST INA -AL PROPS RTYLLLicLWdose- b-ut-is_ npLLWattgd=tgthe fol-lowin"gal, or equitabLe ftle;.4 beneficial i nteresLhAU trust (i m a beneficiary or any other party -of an interest; a power to direct conveyance; a riight to receive rents or qLQgegdsjUM=projjartyt_Tho_ M&1a a Lien-, at ;=aD=Qpt(QM or arry other financial interest, real or personal, direct or indirect, in such property including status as a nominee or undisclosed principal. PERSON: An_i_ndiuidua I,_ prop netorshi_p,_ffirm, partnership, joint venture, _syndicate, _business _trust, company, corporation, a ssociati on, committee and any other organization or group_ofi_persons ecting_i_n_ concert, PUBLIC OEFIClALAny-_person_who_seelss_ o_Be_eLpcde _or_is_eLec ed_ o_anY_publc_ogfceindhe viRag, e_governrrrent,_or_i_s_sppointed _as mayor,astrustee =orgas, mrn_embe[,ofi_ carafaisssfan am subsicliary_public boely of the Village. VILLAGE:_The _village _of Fount_ Prospect_,_ Cook County l_llin©is._ VII II II AGIE AII'll'IFttlVAll : Any discretionary ¢le,ois_ion or act. that. may he, subject to official action by the corporsate, authorities. BA. Declaration Of Policy: The proper operation of government requires that all officials, [Formatted: Underline elected, sx ¢1Formatted: Indent: First line: 0.5", Line spacing:_ appointed <. nd a< l< rrezd r,rm pEaryaw. ,hereinafter referred to as village officials, be I Double independent and impartial and responsible ;ikble tto the peof,. le, ahaaryserve; that government decisions and policy be made and carried out in the proper channels of the government structure; that public office not be used for personal gain_ of to advanc.e tthe_interest. of family or re,lsattives; and that the public have confidence in the integrity of its government. The attainment of one or more of these ends is impaired whenever there exists, or appears to exist, an actual or potential conflict between the private interests of a public official ;anlfor appoint.ec] official oveern meentt official and his or her duties as an official. The public interest requires, therefore, that the law protect against such conflicts of interest and establishes appropriate ethical standards with respect to conduct in situations where actual or potential conflicts exist. i.-IPubli¢ officials are agentsofpublic purpose and hold office for the benefit. ofthe pukblic;� (ryFormatted: Line spacing: Double tthey are, bound ttouphol¢i tr ne, constitution of fhe @United Stat. e, a and 1. he const. itutrion of tete; st.,atte; of Hine sra :itrrrmrarry ufirmfbrarar< iytth,i<tma 4 Ofenatt rm, siaterardv f<age„ahe fos reetpetf for l€g v wr rr ezntr: f hey a-rez bodttdto 7 aezry ; m fhezir of€rr,i<. t at�a thte €itghe, as ata-rr fa -rd- off nt:rrci*t.y andtodischxr;e;fail. hfuIlythe dufrevsoffheir -off ice regard I esoff,e,isonaIcon:ider t. ions, re;oegrrir.iffg.a4r�.t...ttte' .;etht+e..rn.ttfez;;.t...mtr-a be I.htif...b.fi .ry...eoftoezr..n...::Yrhrezil treoftdtro..t...rn...btM.- ra:hte r off ici"It "Iftd l;rryat. ezafhir;K ;Kahot f be, a-bovewreprepat�. ..................................... :..........Affof€ic..i.al...t:4thre VflI<rgez..sha-ltnoaezxaezezdthen...a-uthro6l.y;...err...t*rez<te I.hrez..hA,-o....< k....ot-hen, QIP. Nonpartisan Organizatiom. Formatted: Underline 1. No public official, whether elected or appointed, shall promise an appointment to any salaried municipal position as a reward for any political activity. 2. No public official, whether elected or appointed, shall cause any other village employee to contribute to, or perform work for any political party as a condition of continued employment. 1G. Public Pronerty.c No public official shalt request or permit the use of village owned- (Formatted: Underline vehicles, equipment, materials or property for personal convenience or profit, except when such services are avaitable to the public generally, or are provided as municipal policy for use of such public official in the conduct of official business. EID. Gifts, Favors Or Other Considerations: No public official or his/her immediate family shall accept any gift, favor or consideration, from any person which the official knows is interested directly or indirectly in any manner whatsoever in business dealings with the village, nor shall such public official: 1. Accept any gift, favor or other consideration of value that may tend to influence the official in the discharge of his or her duties; or 2. Grant in the discharge of his or her duties any improper favor, service or thing of value. Official Activity 1. Self -Dealing: A public official shall not enter into any business arrangement with the village (other than the job to which the official was appointed or elected) whereby the person receives any kind of compensation or consideration. This shall apply whether the business arrangement is in the name of the public official or in the name of a business entity in or by which the public official has an ownership or equity interest or is employed in a managerial or supervisory capacity. The foregoing shall not apply in the following circumstances: a. The public official makes full public disclosure of the nature of the business relationship and refrains from acting or voting on the issue; and b. The equity interest is in a company whose securities are traded on a national exchange and is less than one percent (1 %) or the person will have no managerial or other authority with respect to the transaction. 2. Spouse Or Dependent Child As An Employee: If the spouse or a dependent child of a village employee is employed by a business entity applying for zoning, licensing or permit consideration from the village, the village employee shall make written disclosure to the mayor and board of trustees of the employment relationship of the spouse or dependent child prior to the village taking any action with respect to the application. 3. Agency Representation: No such public official may represent, either as agent or otherwise, any person, association, trust or corporation, with respect to any application or bid for any contract, work or other consideration from the village in regard to which such official may be called upon to actor vote. 6 4. Public Official's Own Home, Property Or Business: Nothing in this section shall prevent a public official from seeking, through the appropriate process, any otherwise lawful zoning, licensing or permitting consideration from the village for the official's own home, property or business. Any contract made or procured in violation of this subsection I[IE shall be void. GIF. Disclosure Statements: 1. All public officials shall file with the village clerk each year a disclosure statement. fhis disclosure staternent is, separate am-] in addition to the Sttatternent. of IIEconormio Interests rm xr dat.e¢:1 by the (Illinois Government Ethics Act. (h 1111 CS 4X14/-101 ). 2. The disclosure statement required above shall be completed on forms provided by the village clerk and shall be filed pursuant to the following schedule: a. Any person appointed as a public official shall file his or her disclosure statement prior to appointment, if required to do so by this article. Ifhe,Ji clo sure staternent. shall applytto tth& �tax ye_sr'12 mcntfts irmmediat.c ly_prr,e er .-Jing the taking of office. {Formatted: Highlight b. Any other public official, elected or appointed, shall file his or her disclosure statement annually on or before May 1. 3. The village clerk shall provide each person filing such disclosure statement with a written receipt, indicating the date on which such filing took place. 4. All disclosure statements so filed underthis section shall be available for examination and copying by the public during regular business hours. N a. Each person examining a disclosure statement shall fill out a form prepared by the village clerk, identifying the examiner by name, occupation, address and telephone number, listing the date of examination and reason for such examination. b. The village clerk shall promptly notify each person required to file a disclosure statement under this section of each instance of an examination of his disclosure statement by sending him a duplicate original of the identification form filled out by the person examining his disclosure statement. 5_._ rhe Disclosure flt€:ate rnent. shall report the following sa. Re,sal. IProperty: Any Interest in mal, property loo ate,dl inside c)r in an Formatted: Indent: Left: 0.06', First line: 1.06", Line spacing: Double . unincorporated area within one and o a,.-half_rmiles of the corporate lirmittss of the village. rhe st;aternent shall include the common ;.adldlir.,ss and perm anent index number ("IIIIIIN") of each parcel of real estate ownecl and shall indicaate, the nature, of the interest held in the real estate. rhe property in which the official _resides shall be 4,;xernpt. from the provisions of 1.1his, section. b. Gifts, II Trans arid fva'rrvic Fart. Fin gift ,cur services rendered, or series ofgifts or - �ryFormatted. Indent: First Iine: 1 , Line spacing: Double services rendered_t_h<at. have _a total or cumulative value matching the armouunt an indiviclual is, 2allowecl to accept. from a prof-iNtFedl source pursuant. to 5 IIII CS 430f'110 15(1 2) of the State: Officials and Employees II thicsAct._IIf the rrfficisal filing the staternent. war,, released from any inle bttecine ss or series of indebtedness tcrt"=cling more than $11_hC1.C1C1 by any person or business entity doing _business with the, village withouut either paying the, total fb<alsance, clue, or giving <acle qusate, ascan aidleration, sa stt<aternent. shall be included listing the nsarma,of the art. dlitour, the nature and sarnount of the indebtedness released and _<.a description scriptioun ouf the circurm at<ances_councerningthe release. rhe foregoing shall not. applyto counsurme,r dliricounts or pre,rmiurmss received) by an officinal, from sa business, where the sarne discounts or prermiurm , are _offered to all aounsaurner t.. Interest in IBussiness Entity IDoing IBusiness with the VIII age or Seeking ViI I age Act. ion. Any fin a nci a I or ownership interest. of 1% or more in any business with or seekingc on side rat. ion from thevi I I age during any calend a ryear. rhe i.-Jisc I osure sh a I I include the extent and nature of the ownership interest. and the type of business concluct.ei.-I with the village or the village action sought.. cl. Position of Influence in Business Entity Doing Business with the Village or SeekingVilla,ge Action. Any position off influence such as officer, director, partner, at.torneyfor, or consultant. for any business ent.ity doing business with or seeking village action. lfhei.-Jisclosure shall include the position and the type of business conducted with the village ort.he village action s o ugh t. . c. Employment. by Business Entity Doing BUSiness with the Village or Seeking Village Action. Any ernplc.uymerft by any ent.ity, doin� -, ss with the villageeking e or svillage g busine action. rhe statement shall include the narne of the employing en iffy and the type of business conducted with the village or the vltlage action sought. f. lPeisonal Business IDarre witth the Village or Village Action Sought.. Any buaures s,Mflc,h has been done with or anyc,,onsicleration which has been sought. from the village. rhis staternent. shall include the type of business with the village or the villa� ge action sought.. lq. 11 iquor induFtry Interests. Fury financial interest. in any ent.ity holi.-Iing as liquor license in the village. IH SII' olicy Illisclosure of Il: mi Relationship. . . .. .................................... ...... Formatted: Underline ..................................................................................................................................................................................................................................... .............. ...... . ................................................................................................ ('.Formatted: Line spacing: Double ........................................................................................................................................................................................................................................ 1 Policy Statement. One of t. he prirmary d uties of a public official is to exercise sound discretion where the person(s) ani.-1/or a business ent.ity seeks vi Hage act. ion. Il rorn ti me to time, a public officinal may be re,¢:luire,¢1 to wast in circumstances where, the, public official is involved in an e conearmic relationship with sa person(s) am-1/or business entity seeking village action. Ifhisr_section hall be eun strue,¢;1_fbr asa¢1ly_ft r the; purpose of'__;rsantingto village citizens full knowledge, of the dealings of public officials as thea<se, dealings may relate to villsage, business. 2 rransparency Statement IRe,¢1_ulre,¢1."When sa public official is called upon to consi¢lesr village action in the, course of his, or her official duties, the fbub ie, official shall publicly disclose any e conormic_relattionsahip the public official has with a person(s) and/or business entity prior to consk-Je:ring village taction,, where: either: ('1) the: ibuialic official has 2a current e;conormic relationship with <a fbr.rson(cr( san¢lfear business entity; or (2) the yrrafbl,ic official _has had a previous e conormia relationship with a person(s) san¢lfear business entity while the rUl)liC official knew that. the person(s) and/or business entity was seeking village action; or, (3) the, public official is, actively pursuing an opportunity to establish san_econormic relationship with the person(s) tanalfear business entity. If disclosurepursuant to this _policy woul¢1 violate sa confide.ntial_velations_hifb lbe,Me,_e,n the, public official and the, person(s) and/or business entity, (sur.;h as an 2atcearne:y/clie:nt privilege: or IFNlIFIAA), then the public official shall <aksstainfrorm lbaxrti ifbsatingin the: village action and when abstaining, need state_ only that. the, abstention is done, pursuant to this policy. In the case of disclosure of campaign conttr hutiona, the, actual amount of the, contributions shall be disclosed. ;f.rhe _ttran ,fbsxre,ncy ,ttatt,e,rme,nt shall be filed with the village clerk prior to the _time of cons k.-Je,ri_ng or takingany vill of a, action and as soon as reasonably practicable after the, conflict. is, reasonably sonsalbly known_tto the, public official. If the _transparency statement is, _from sa_public official, the transparency staternent. shall be read into the, record at. the, regular meeting of the village, lbo an. -I occurrirrgrmrme,¢1isatte,ly after the transparency ncy_ statement is filed. However, should the, matter require discussion _prior tosuch meeting, then the village clerk shall wive notice of the transparency M stat. ernent. to the vi ll age rn an ager, the viII age president., an J e aon member of the vi ll age board within twenty four (24) hours, of its, filing. Ncttrnritth:attarr¢lingtthe foregoing, in no event shall the public officinal be require,.-] or expected to ¢Ji close any rnat er of which the _public official ¢lon a not. have actual knowledge. 1G. Campaign Contributions:. Campaign contributions shall be reported by all ( Formatted: Underline candidates for elected village office in strict conformity with the provisions of the Illinois state statutes. H.V. State Officials And Employees Ethics Act:. {Formatted: Underline 1. The regulations of sections 5-15 11 and article 102 of the state officials and employees ethics act, 5 Illinois Compiled Statutes 430/1-1 et seq. (hereinafter referred to as the "act" in this subsection H), are hereby adopted by reference and made applicable to the officers and employees of the village to the extent required by 5 Illinois Compiled Statutes 430/70-5. 2. The solicitation or acceptance of gifts prohibited to be solicited or accepted under the act, by any officer or any employee of the village, is hereby prohibited. 3. The offering or making of gifts prohibited to be offered or made to an officer or employee of the village under the act, is hereby prohibited. 4. The participation in political activities prohibited underthe act, by any officer or employee of the village, is hereby prohibited. 5. For purposes of this subsection H, the terms "officer" and "employee" shall be defined as set forth in 5 Illinois Compiled Statutes 430/70-5(c). M 6. The penalties for violations oft his subsection H shalt be the same as those penalties set forth in 5 Illinois Compiled Statutes 430/50-5 for simi[arviolations of the act. 7. This subsection H does not repeal or otherwise amend or modify any existing ordinances or policies which regulate the conduct of village officers and employees. To the extent that any such existing ordinances or policies are less restrictive than this subsection H, however, the provisions of this subsection H shall prevail in accordancewith the provisions of 5 Illinois Compiled Statutes 430/70-5(a). 8. Any amendment to the act that becomes effective after the effective date of this subsection H shall be incorporated into this subsection H by reference and shall be applicable to the solicitation, acceptance, offering and making of gifts and to prohibited political activities. However, any amendment that makes its provisions optional for adoption by municipalities shall not be incorporated into this subsection H by reference without format action by the corporate authorities of the village. 9. If the Illinois supreme court declares the act unconstitutional in its entirety, then this subsection H shalt be repealed as of the date that the Illinois supreme court's decision becomes final and not subject to any further appeals or rehearings. This subsection H shall be deemed repealed without further action by the corporate authorities of the village if the act is found unconstitutional by the Illinois supreme court. 10. If the Illinois supreme court declares part of the act unconstitutional but upholds the constitutionality of the remainder of the act, or does not address the remainder of the act, then the remainder of the act as adopted by this subsection H shall remain in full force and effect; however, that part of this subsection H relating to the part of the act found unconstitutional shall be deemed repealed without further action by the corporate authorities of the village. 12 C Anti Nepotism Policy. Nepot.ism occurs, where favors, advantages, or positions are, grant.e¢.-] to relatives, friem-1s, or associates of an elected official or an indivik-jual appointed to complete the term of an elected official position am -1 causes public concern rc,,ar¢-.Iin�¢.jualifwcat.ion,, of appointees am -1 employees. 111. is, therefore the policy of the Village that.: 1 the rnrne¢.-Jiat.e family of an elect. ;¢l official or an im-lividual appoint.e¢.-] to complete the term of an electee] official position shall not. be appointeeJ, hired, or ernployee] to the village in any position. 2, (this, policy shall not. affect officials elect.e¢.-] or appoint.e�.-] prior to the effective ¢Jat.e of this, ordinance, unless and until the expiration, terminatio n, e. -)i completion of their role or term in office. 3. this, policy shalt not. affect an appointive officer appointe¢.-] prior to an elected official's obtainment of r.:Jfice within the village. 4this, policy shall not affect an appointive officer appoint.ex ] prior to becorning the immediate farnily of an elected official of the village. 5. Where the ininmediate fainily of an elect.ee] official or an im-livik-Jual appointed to complete the term of an elected official position is exempt. base¢.-] on subsectio(2 4), that. official may not. appoint., hire, promote, advance, or w.-Ivocate for the appointment, w.-Ivancernent., promotion, or hiring of their irnrne¢.-Jiat.e family. 6 . INo elected official or an individual appoint.e¢.-] to complete the term of an elected official position may evaluate the job performance of, recommend an increase in Glary/carnitine sat.ion for, or participate in the discipline of their irnmediate family, inclu¢1ing put not. limited to investigat.ing allege.-] misconduct. 11 Standard for Det.ennining Conflict. of Interest. 13 A conflict. of interest is, create�.-] when anon Village interest. couk.-I impair the public official's abilityto exercise indepem.-Jent. ju¢.-Jgrnenr. on behalf of the village. the standard for ¢.-Jeterrnining it ¢-lepem.-Jent. jw.-Igme nt. is, objective am. -I shall be base¢.-] on whether a person of ordinary and reasonable jw.-Igme nt. wouk.-] be affecte d. lfhe, public official shall consk.-Jer the followingactors when determining if a conflict. exists: 1 , Whether a substantial threat. to his or her independence of ju¢.-Jgrnenr. is create¢.-] by the conflict. situation; village; 2, the effect. of his or her participation on public confk.-Ience in the integrity of the 3. Whether his or her participation is likely to have a significant. effect on the ¢.-Jisposition of the matter; 4the need for his, or her particular contribution, such as special knowle¢.-Jge of the subject. rn at. ter, to the effective fun ctio ning of the village. Notwithstandingthe factors outtlinc¢ above,, a person shall be ¢.-Jeerne¢.-] to have a conflict. of interest. in the following circurnstancm 1 The person is seekingto acquire a 1 % or more ownership interest. in or is aboua to become an officer, direcIor, rnanag,�.'�.rnenr. official, employee, attorney or other professional consultant. in any entity seeking ,village action or attemptingto establish a business relationship with the village. 2, the person is representinganother person or entity as an w.-Nocate or consultant. in a matter not concerningthe village in which the other entity or person being represented has 14 an other intere=st which is, ad verse to the interests of the vi I I age, or when that other entity or person is, actively_; eei ing othervi I I age act. ion. IM . Resolving Conflicts of Interest. 1 If a public official of the village clevelops a conflict. of interest. that. is, prohibited by statute, that. person will abicle bythe statute in question. 2. If a public official of the village clevelops a or.:m-flkA of interest. that is, prohibited by this, code, that. person shall abstain frorn ;anti staternent or vote on the matter. 3. If a public official of the village develops a conflict. of interest that. is not. prohibited by statute or is, not., clefinecl by this, code, that member shall be pevrnit.ted to issuewrit.ten statements with respect to or part. ici pate in public rne;tin g discussions of the issue involvecl in the conflict.. 4Any public official who develops a conflict. of interest. clescribecl in (1 ) (3), above, shall abide by the following: a. Make a full written d SClOSUre tot. he vi I lage clerk or rn ake public d isclos, u re - � Formatted: Indent: Left: 0.5 ,Line spacing: Double of the conflict at an open rneefing. b.____ IR ef ra i n f ro i v, i vot. i ng, o n t. h e i s s u e i nvo I vecl i n t. h e c o n f I i ct. . c Refrain Itorn private cliscussions with other members of the corporate authorities, village staff members or village consultants with respect to the issue involvecl in the conflict.. IN, INon Illisclosure of Conficlential Information. (I Formatted: Line spacing: Double I ................................................................................................................................................................................. M Public officials, in the course of their duties, obtain confidential information concerning matIers of vital interest to the Village. Public officials shall not. publicly i.-Jisclose such conficlential information if cloing so violates their ficluciary cluty to prornote and support. the best. interests of the Village ani. -I its citizens. Notes 11 1. 5 1 LCS 430/5-15. 2 2. 5 ILCS 430/10-10 - 10-40. &14(k FUR E ANE)DE'FINFIFI-0-NS� fallowfngrules 'af 4=�f#te s+n=gt&&r==rrumber r-rumber,=,and tfte plural #Te sirTgular. 2T==The=word "shaft"""fr- r missive. eT- a Pfopfk-tofahip, partnership, 16 ........................................................................................................................................................................................................................................ Formatted: Line spacing: Double .......................................................................................................................................................................................................................................... Formatted: Line spacing: Double .......................................................................................................................................................................................................................................... .............. . : ...... . ................................................................................................ [Formatted: Line spacing: Double I FT: Any _property, rea# or personal, tangtb e or +rpt-angible, of a== ar ket valve to excess of OTT paymerfit at=tkre property"s=full r arheetvalye.=G-i#t fi°roar arfi irfi ki +e#val"s sprrvae, child,=•par-ent, rarfic+parerfit, rarfi kebllc , brotkrer, aister parerfit-+rfi-lavr brotkrer- rfi-lave sister=irfi-laver, aurfit urTcl"r considered giftaforthepurpv5esef this deft mater alsueh as=books, definition. �G individual as deperfiderfits for federal irfioome tax purpe es. VNTE fES�FW REA PR&FI=E-RTIHrficludes, but Fs not or eq uitabletid a beneficial interesttimarty=trust drroluding -a lan€ktrustp any from a proceeds from property tkre obligation to pay-re+tt; -a Herr =a tax aale certificate, ar option; er-any other finarfelral irrterest7 real er=persona+;=direot or indirect, in such property including status =as=a PERS,DN�- individvat=,=proprietorskroj=f n, partnership, toint verfiture, s}rndreate,=bueines a trust; acting inn concert. viltage-govemment= or° is=appointed as=r-rayer, aa -trustee or°-as=a member of the pl=anning and zoning IiN ILLAGE�ittage-of Maur -ft Prospect Cock eounty, Ptt+fivi�. (farcl. x€18, 12=1 i91€ a��# f3rc1. 8.1167: PENALTY: Any person, firm or corporation found guilty of violating the provisions of any section of this b - Formatted: Indent: First Iine: 0.5, Line spacing: Double article, or part thereof, shall be guilty of a misdemeanor and shall be fined in an amount not to exceed that which is set forth in appendix A, division III of this code, and/or removal from office. Each day that a violation is permitted to exist shall constitute a separate offense. Violations of this section shall be determined by an w. -I minist.rative law Ir,a¢;1gr , pursuant to ( Formatted: Line spacing: Double Article X1111 of this code. Prior to seeking circuit. court. w.-Ijudicaf on of violations of any section of this article, a preliminary review bytthc village's s:. -I ministtrattive law ju¢1ge, pursuant. to Article XXII of this Chapter 8, shall be conducted. rhe administrative law judge shall make a determination as to whether there is probable cause to issue a complaint to the circuit. court of cook county for a violation of this, aecttion am-] then shall cause such complaint to be issued. 18 DRAFT DRAFT DRAFT ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 8, "VILLAGE GOVERNMENT MISCELLANEOUS PROVISIONS," SECTION 115, "CONFLICTS OF INTEREST," OF THE VILLAGE CODE OF MOUNT PROSPECT, ILLINOIS BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, ILLINOIS: Section 1: Section 8.115, "Conflicts of Interest" of Article I, "Officers; Employees," of Chapter 8, "Village Government Miscellaneous Provisions," of the Mount Prospect Village Code shall be amended as follows: "8.115: CONFLICTS OF INTEREST: apply: For the purpose of this section 8.115, the following rules and definitions shall A. Rules and Definitions. The language set forth in the text of this article shall be interpreted in accordance with the following rules of construction: 1. The singular number includes the plural number, and the plural the singular. 2. The word "shall" is mandatory; the word "may" is permissive. 3. The masculine gender includes the feminine and neuter. Whenever in this article the following words and phrases have been used, they shall, for the purposes of said article, have the meanings respectively ascribed to them in this section, except when the context otherwise indicates: APPOINTED OFFICIAL: Any appointive officer, as set forth in chapter 4 of this code. BUSINESS ENTITY: Any organization or enterprise operated for profit, including, but not limited to, a proprietorship, partnership, firm, business trust, joint venture, syndicate, corporation or association. 1 ECONOMIC RELATIONSHIP: Any financial dealing, business relationship or client representation. This shall include any transaction or dealing of any kind or nature with a person or business seeking village approval, where the value of the goods, service or other benefit exchanged exceeds the amount an individual is allowed to accept from a prohibited source pursuant to 5 ILCS 430/10-15(12) of the State Officials and Employees Ethics Act. However, in no event shall the term economic relationship be deemed to include a transaction in which the public official or Employee is the consumer of a good or service where the consumption of the good or service occurs in the ordinary course of business and the price of the good or service is fixed by the merchant or service provider is no different from that which is offered to the general public. Economic relationship shall also specifically include campaign contributions totaling more than $150.00 (whether in cash or in kind) by the person or business seeking village approval made to or for the benefit of the public official or the public official's campaign committee or campaign fund in the past four-year time period. FINANCIAL INTEREST. Any economic interest or relationship, whether by ownership, trust, purchase, sale, lease, contract, option, investment, employment, gift, fee or otherwise. This shall include any such interest whether present, promised or reasonably expected; whether direct or indirect; whether or not legally enforceable; whether in the person or in a parent or subsidiary corporation, or in another subsidiary of the same parent corporation. A financial interest shall include, but is expressly not limited to, any economic relationship, as set forth above, of the public official or Employee's immediate family, as well as any economic interest held by an agent on behalf of a public official or Employee or their immediate family. It shall also include any economic interest held by an agent on behalf of an official or employee by a business entity managed or controlled by or by a trust in which a public official or Employee has a substantial interest. A business entity is controlled by a public official or Employee when that person or that person's immediate family, singly or in the aggregate, possess a majority ownership interest in the entity. An official or employee has a substantial interest in a trust when that person or that person's immediate family, singly or in the aggregate has a present or future interest worth more than $1,000.00. "Financial interest" shall not include ownership through purchase at fair market value of less than 1 % of the shares of a corporation whose shares are registered and traded on a nationally recognized securities market. "Financial Interest" shall also not include authorized compensation or salary paid to an public official or Employee for services rendered to the Village of Mount Prospect, or any economic benefit generally available to the residents of the village. GIFT. Any gratuity, discount, entertainment, hospitality, loan, forbearance, property, real or personal, tangible or intangible, of a market value in excess of the amount set forth in appendix A, division I of this code, including but not limited to cash, food and drink, and honoraria for speaking engagements related to or attributable to government employment or the official position of an employee, member, or officer obtained by an individual without the payment of the property's full market value obtained without the payment of the property's full market value . Gifts from an individual's immediate family spouse, child, parent, grandparent, grandchild, brother, sister, parent- in-law, brother -in - 2 law, sister-in-law, aunt, uncle, or first cousin, or the spouse of any such person, or gifts to a church, religious, or charitable organization qualified as such under the provisions of the internal revenue code shall not be considered gifts for the purposes of this definition. Gifts of informational material such as books, pamphlets, reports, calendars or periodicals shall not be considered gifts for the purposes of this definition. IMMEDIATE FAMILY: An individual's spouse, domestic partner, cohabitant, dependent children or others claimed by such individual as dependents for federal income tax purposes. INTEREST IN REAL PROPERTY: Includes, but is not limited to, the following: legal or equitable title; a beneficial interest in any trust (including a land trust); any assignment of any interest from a beneficiary or any other party of an interest; a power to direct conveyance; a right to receive rents or proceeds from property; the obligation to pay rent; a lien; a tax sale certificate; an option; or any other financial interest, real or personal, direct or indirect, in such property including status as a nominee or undisclosed principal. PERSON: An individual, proprietorship, firm, partnership, joint venture, syndicate, business trust, company, corporation, association, committee and any other organization or group of persons acting in concert. PUBLIC OFFICIAL: Any person who seeks to be elected or is elected to any public office in the village government, or is appointed as mayor, as trustee or as a member of any subsidiary public body of the Village. VILLAGE: The village of Mount Prospect, Cook County, Illinois. VILLAGE APPROVAL: Any discretionary decision or act that may be subject to official action by the corporate authorities. B. Declaration Of Policy. The proper operation of government requires that all officials, elected and appointed, hereinafter referred to as public officials, be independent, and impartial and responsible to the people they serve; that government decisions and policy be made and carried out in the proper channels of the government structure; that public office not be used for personal gain or to advance the interest of family or relatives; and that the public have confidence in the integrity of its government. The attainment of one or more of these ends is impaired whenever there exists, or appears to exist, an actual or potential conflict between the private interests of a public 3 official and/or an appointed official and his or her duties as an official. The public interest requires, therefore, that the law protects against such conflicts of interest and establishes appropriate ethical standards with respect to conduct in situations where actual or potential conflicts exist. C. Nonpartisan Organization. 1. No public official, whether elected or appointed, shall promise an appointment to any salaried municipal position as a reward for any political activity. 2. No public official, whether elected or appointed, shall cause any other village employee to contribute to, or perform work for any political party as a condition of continued employment. D. Public Property. No public official shall request or permit the use of village owned vehicles, equipment, materials or property for personal convenience or profit, except when such services are available to the public generally or are provided as municipal policy for use of such public official in the conduct of official business. E. Gifts, Favors Or Other Considerations. No public official or his/her immediate family shall accept any gift, favor or consideration, from any person who the official knows is interested directly or indirectly in any manner whatsoever in business dealings with the village or is seeking village approval, nor shall such public official: 1. Accept any gift, favor or other consideration of value that may tend to influence the official in the discharge of his or her duties; or 2. Grant in the discharge of his or her duties any improper favor, service or thing of value. E F. Official Activity. 1. Self -Dealing: A public official shall not enter into any business arrangement with the village (other than the job to which the official was appointed or elected) whereby the person receives any kind of compensation or consideration. This shall apply whether the business arrangement is in the name of the public official or in the name of a business entity in or by which the public official has an ownership or equity interest or is employed in a managerial or supervisory capacity. The foregoing shall not apply in the following circumstances: a. The public official makes full public disclosure of the nature of the business relationship and refrains from acting or voting on the issue; and b. The equity interest is in a company whose securities are traded on a national exchange and is less than one percent (1 %) or the person will have no managerial or other authority with respect to the transaction. 2. Spouse Or Dependent Child As An Employee: If the spouse or a dependent child of a village employee is employed by a business entity applying for zoning, licensing or permit consideration from the village, the village employee shall make written disclosure to the mayor and board of trustees of the employment relationship of the spouse or dependent child prior to the village taking any action with respect to the application. 3. Agency Representation: No such public official may represent, either as agent or otherwise, any person, association, trust or corporation, with respect to any application or bid for any contract, work or other consideration from the village in regard to which such official may be called upon to act or vote. 5 4. Public Official's Own Home, Property Or Business: Nothing in this section shall prevent a public official from seeking, through the appropriate process, any otherwise lawful zoning, licensing or permitting consideration from the village for the official's own home, property or business. Any contract made or procured in violation of this subsection F shall be void. G. Disclosure Statements. 1. All public officials shall file with the village clerk each year a disclosure statement. This disclosure statement is separate and in addition to the Statement of Economic Interests mandated by the Illinois Governmental Ethics Act (5 ILCS 420/4A- 101). 2. The disclosure statement required above shall be completed on forms provided by the village clerk and shall be filed pursuant to the following schedule: a. Any person appointed as a public official shall file his or her disclosure statement prior to appointment, if required to do so by this article. The disclosure statement shall apply to the tax year immediately preceding the taking of office. b. Any other public official, elected or appointed, shall file his or her disclosure statement annually on or before May 1. 3. The village clerk shall provide each person filing such disclosure statement with a written receipt, indicating the date on which such filing took place. 4. All disclosure statements so filed under this section shall be available for examination and copying by the public during regular business hours. 9 a. Each person examining a disclosure statement shall fill out a form prepared by the village clerk, identifying the examiner by name, occupation, address and telephone number, listing the date of examination and reason for such examination. b. The village clerk shall promptly notify each person required to file a disclosure statement under this section of each instance of an examination of his disclosure statement by sending him a duplicate original of the identification form filled out by the person examining his disclosure statement. 5. The Disclosure Statement shall report the following: a. Real Property: Any Interest in real property located inside or in an unincorporated area within one and one-half miles of the corporate limits of the village. The statement shall include the common address and permanent index number ("PIN") of each parcel of real estate owned and shall indicate the nature of the interest held in the real estate. The property in which the official resides shall be exempt from the provisions of this section. b. Gifts, Loans and Services. Any gifts or services rendered, or series of gifts or services rendered that have a total or cumulative value matching the amount an individual is allowed to accept from a prohibited source pursuant to 5 ILCS 430/10- 15(12) of the State Officials and Employees Ethics Act. If the official filing the statement was released from any indebtedness or series of indebtedness totaling more than $150.00 by any person or business entity doing business with the village without either paying the total balance due or giving adequate consideration, a statement shall be included listing the name of the creditor, the nature and amount of the indebtedness released and a description of the circumstances concerning the release. The foregoing shall not apply to consumer discounts or premiums received by an official, from a business, where the same discounts or premiums are offered to all consumers. C. Interest in Business Entity Doing Business with the Village or Seeking Village Action. Any financial or ownership interest of 1 % or more in any business entity doing business with or seeking consideration from the village during any calendar year. The disclosure shall include the extent and nature of the ownership interest and the type of business conducted with the village or the village action sought. d. Position of Influence in Business Entity Doing Business with the Village or Seeking Village Action. Any position of influence such as officer, director, partner, attorney for, or consultant for any business entity doing business with or seeking village action. The disclosure shall include the position and the type of business conducted with the village or the village action sought. e. Employment by Business Entity Doing Business with the Village or Seeking Village Action. Any employment by any entity doing business with the village or seeking village action. The statement shall include the name of the employing entity and the type of business conducted with the village or the village action sought. f. Personal Business Done with the Village or Village Action Sought. Any business which has been done with or any consideration which has been sought from the village. This statement shall include the type of business with the village or the village action sought. g. Liquor Industry Interests. Any financial interest in any entity holding a liquor license in the village. 9 H. Policy Disclosure of Economic Relationship. Policy Statement. One of the primary duties of a public official is to exercise sound discretion where the person(s) and/or a business entity seeks village action. From time to time, a public official may be required to act in circumstances where the public official is involved in an economic relationship with a person(s) and/or business entity seeking village action. This section shall be construed broadly for the purpose of granting to village citizens full knowledge of the dealings of public officials as those dealings may relate to village business. 2. Transparency Statement Required. When a public official is called upon to consider village action in the course of his or her official duties, the public official shall publicly disclose any economic relationship the public official has with a person(s) and/or business entity prior to considering village action, where either: (1) the public official has a current economic relationship with a person(s) and/or business entity; or (2) the public official has had a previous economic relationship with a person(s) and/or business entity while the public official knew that the person(s) and/or business entity was seeking village action; or, (3) the public official is actively pursuing an opportunity to establish an economic relationship with the person(s) and/or business entity. If disclosure pursuant to this policy would violate a confidential relationship between the public official and the person(s) and/or business entity, (such as an attorney/client privilege or HIPAA), then the public official shall abstain from participating in the village action and when abstaining, need state only that the abstention is done pursuant to this policy. In the case of disclosure of campaign contributions, the actual amount of the contributions shall be disclosed. 9 3. The transparency statement shall be filed with the village clerk prior to the time of considering or taking any village action and as soon as reasonably practicable after the conflict is known to the public official. If the transparency statement is from a public official, the transparency statement shall be read into the record at the regular meeting of the village board occurring immediately after the transparency statement is filed. However, should the matter require discussion prior to such meeting, then the village clerk shall give notice of the transparency statement to the village manager, the village president, and each member of the village board within twenty-four (24) hours of its filing. Notwithstanding the foregoing, in no event shall the public official be required or expected to disclose any matter of which the public official does not have actual knowledge. I. Campaign Contributions. Campaign contributions shall be reported by all candidates for elected village office in strict conformity with the provisions of the Illinois state statutes. J. State Officials and Employees Ethics Act. 1. The regulations of sections 5-15 and article 10 of the State Officials and Employees Ethics Act, 5 Illinois Compiled Statutes 430/1-1 et seq. (hereinafter referred to as the "Act" in this subsection J), are hereby adopted by reference and made applicable to the officers and employees of the village to the extent required by 5 Illinois Compiled Statutes 430/70-5. 10 2. The solicitation or acceptance of gifts prohibited to be solicited or accepted under the Act, by any officer or any employee of the village, is hereby prohibited. 3. The offering or making of gifts prohibited to be offered or made to an officer or employee of the village under the Act, is hereby prohibited. 4. The participation in political activities prohibited under the Act, by any officer or employee of the village, is hereby prohibited. 5. For purposes of this subsection J, the terms "officer" and "employee" shall be defined as set forth in 5 Illinois Compiled Statutes 430/70-5(c). 6. The penalties for violations of this subsection J shall be the same as those penalties set forth in 5 Illinois Compiled Statutes 430/50-5 for similar violations of the Act. 7. This subsection J does not repeal or otherwise amend or modify any existing ordinances or policies which regulate the conduct of village officers and employees. To the extent that any such existing ordinances or policies are less restrictive than this subsection J, however, the provisions of this subsection J shall prevail in accordance with the provisions of 5 Illinois Compiled Statutes 430/70-5(a). 8. Any amendment to the Act that becomes effective after the effective date of this subsection J shall be incorporated into this subsection J by reference and shall be applicable to the solicitation, acceptance, offering and making of gifts and to prohibited political activities. However, any amendment that makes its provisions optional for adoption by municipalities shall not be incorporated into this subsection J by reference without formal action by the corporate authorities of the village. 11 9. If the Illinois supreme court declares the Act unconstitutional in its entirety, then this subsection J shall be repealed as of the date that the Illinois supreme court's decision becomes final and not subject to any further appeals or rehearings. This subsection J shall be deemed repealed without further action by the corporate authorities of the village if the Act is found unconstitutional by the Illinois supreme court. 10. If the Illinois supreme court declares part of the Act unconstitutional but upholds the constitutionality of the remainder of the Act, or does not address the remainder of the Act, then the remainder of the Act as adopted by this subsection J shall remain in full force and effect; however, that part of this subsection J relating to the part of the Act found unconstitutional shall be deemed repealed without further action by the corporate authorities of the village. K. Anti -Nepotism Policy. Nepotism occurs where favors, advantages, or positions are granted to relatives, friends, or associates of an elected official or an individual appointed to complete the term of an elected official position and causes public concern regarding qualifications of appointees and employees. It is therefore the policy of the Village that: 1. The immediate family of an elected official or an individual appointed to complete the term of an elected official position shall not be appointed, hired, or employed to the village in any position. 2. This policy shall not affect officials elected or appointed prior to the effective date of this ordinance, unless and until the expiration, termination, or completion of their role or term in office. 12 I This policy shall not affect an appointive officer appointed prior to an elected official's obtainment of office within the village. 4. This policy shall not affect an appointive officer appointed prior to becoming the immediate family of an elected official of the village. 5. Where the immediate family of an elected official or an individual appointed to complete the term of an elected official position is exempt based on subsection (2-4), that official may not appoint, hire, promote, advance, or advocate for the appointment, advancement, promotion, or hiring of their immediate family. 6. No elected official or an individual appointed to complete the term of an elected official position may evaluate the job performance of, recommend an increase in salary/compensation for, or participate in the discipline of their immediate family, including but not limited to investigating alleged misconduct. L. Standard for Determining Conflict of Interest. A conflict of interest is created when a non -Village interest could impair the public official's ability to exercise independent judgment on behalf of the village. The standard for determining independent judgment is objective and shall be based on whether a person of ordinary and reasonable judgment would be affected. The public official shall consider the following factors when determining if a conflict exists: 1. Whether a substantial threat to his or her independence of judgment is created by the conflict situation; 2. The effect of his or her participation on public confidence in the integrity of the village; 13 3. Whether his or her participation is likely to have a significant effect on the disposition of the matter; 4. The need for his or her particular contribution, such as special knowledge of the subject matter, to the effective functioning of the village. Notwithstanding the factors outlined above, a person shall be deemed to have a conflict of interest in the following circumstances: 1. The person is seeking to acquire a 1 % or more ownership interest in or is about to become an officer, director, management official, employee, attorney or other professional consultant in any entity seeking village action or attempting to establish a business relationship with the village. 2. The person is representing another person or entity as an advocate or consultant in a matter not concerning the village in which the other entity or person being represented has another interest which is adverse to the interests of the village, or when that other entity or person is actively seeking other village action. M. Resolvina Conflicts of Interest. 1. If a public official of the village develops a conflict of interest that is prohibited by statute, that person will abide by the statute in question. 2. If a public official of the village develops a conflict of interest that is prohibited by this code, that person shall abstain from any discussion, statement or vote on the matter. 3. If a public official of the village develops a conflict of interest that is not prohibited by statute or is not defined by this code, that member shall be permitted to 14 issue written statements with respect to or participate in public meeting discussions of the issue involved in the conflict. 4. Any public official who develops a conflict of interest described in (1)-(3), above, shall abide by the following: a. Make a full written disclosure to the village clerk or make public disclosure of the conflict at an open meeting. b. Refrain from voting on the issue involved in the conflict. C. Refrain from private discussions with other members of the corporate authorities, village staff members or village consultants with respect to the issue involved in the conflict. N. Non -Disclosure of Confidential Information. Public officials, in the course of their duties, obtain confidential information concerning matters of vital interest to the Village. Public officials shall not publicly disclose such confidential information if doing so violates their fiduciary duty to promote and support the best interests of the Village and its citizens. Section 2: Section 8.116, "Rules and Definitions," of Article I, "Officers; Employees," of Chapter 8, "Village Government Miscellaneous Provisions," of the Mount Prospect Village Code shall be deleted and moved to Section 8.115, "Conflicts of Interest," of Article I, "Officers; Employees," of Chapter 8, "Village Government Miscellaneous Provisions," of the Mount Prospect Village Code. Section 3: Section 8.117, `Penalty," of Article I, "Officers; Employees," of Chapter 8, "Village Government Miscellaneous Provisions," of the Mount Prospect Village Code shall be renumbered as section 8.116 and amended as follows: 15 8.116: PENALTY: Any person, firm or corporation found guilty of violating the provisions of any section of this article, or part thereof, shall be guilty of a misdemeanor and shall be fined in an amount not to exceed that which is set forth in appendix A, division III of this code, and/or removal from office. Each day that a violation is permitted to exist shall constitute a separate offense. Violations of this section shall be determined by an administrative law judge, pursuant to Article XII of this code. Prior to seeking circuit court adjudication of violations of any section of this article, a preliminary review by the village's administrative law judge, pursuant to Article XXI of this Chapter 8, shall be conducted. The administrative law judge shall make a determination as to whether there is probable cause to issue a complaint to the circuit court of cook county for a violation of this section and then shall cause such complaint to be issued. ADOPTED this day of as follows: AYES: NAYS: 2024, pursuant to a roll call vote ABSENT: APPROVED by me this day of , 2024, and attested to by the Village Clerk this same day. ATTEST: 16 Mayor Paul Wm. Hoefert Karen Agoranos, Village Clerk 17