Loading...
08-036 - O TOWN OF PROSPER, TEXAS ORDINANCE NO. 08- 036 AN ORDINANCE OF THE TOWN OF PROSPER, TEXAS, ESTABLISHING A CODE OF ETHICS; PROVIDING FOR A PENALTY FOR THE VIOLATION OF THIS ORDINANCE; PROVIDING FOR REPEALING, SAVINGS AND SEVERABILITY CLAUSES; PROVIDING FOR AN EFFECTIVE DATE OF THIS ORDINANCE; AND PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF. WHEREAS, the Town of Prosper desires for all of its citizens to have confidence in the integrity, independence, and impartiality of those who act on their behalf in government; and WHEREAS, this proposed Code of Ethics to define the bounds of reasonable ethical behavior by the Town Council and all appointed Town Officials. NOW, THEREFORE BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF PROSPER, TEXAS that this Ordinance be adopted in order to promote confidence in the government of the Town of Prosper, and thereby enhance the Town's ability to function effectively. PART A: DECLARATION OF POLICY SECTION 1:STATEMENT OF PURPOSE It is essential in a democratic system that the public have confidence in the integrity, independence, and impartiality of those who act on their behalf in government. Such confidence depends not only on the conduct of those who exercise Official power, but on the availability of aid or redress to all persons on equal terms and on the accessibility and dissemination of information relating to the conduct of public affairs. The Prosper Town Council adopts this Code of Ethics in order to promote confidence in the government of the Town of Prosper, and thereby enhance the Town's ability to function effectively. The Code of Ethics establishes standards of conduct, disclosure requirements, and enforcement mechanisms relating to Town Officials. The Code of Ethics also covers others whose actions inevitably affect public faith in Town government, such as former Town Officials, candidates for public office, and persons doing business with the Town. By prohibiting conduct incompatible with the Town's best interests and minimizing the risk of any appearance of impropriety, this Code of Ethics will further the legitimate interests of democracy. SECTION 2:DEFINITIONS As used in this Code of Ethics, the following words and phrases have the meaning ascribed to them in this Section, unless the context requires otherwise or more specific definitions set forth elsewhere in this code apply: Affiliated. Business entities are "Affiliated" if one is the parent or subsidiary of the other or if they are subsidiaries of the same parent Business Entity. Affinity. Relationship by "Affinity" is defined in Sections 573.024 and 573.025 of the Texas Government Code. (See Attachment "A') Code of Ethics Ordinance Page 1 of 17 Before the Town. Representation or appearance "Before the Town" means before the Town Council or a Board, commission, or other Town entity. Board. A Board, commission, or committee: (1) Which is established by Town Ordinance, Town Charter, inter-local contract between the Town and another Party, or state law; or (2) Any part of whose membership is appointed by the Town Council, but does not include a Board, commission, or committee that is the governing body of a separate political subdivision of the state. (3) The Prosper Economic Development Corporation is considered a Board for the purpose of this Code of Ethics. Business Entity. 'Business Entity" means a sole proprietorship, partnership, firm, corporation, limited liability company, holding company, joint-stock company, receivership, trust, unincorporated association, or any other business entity recognized by law. Code of Ethics. "Code of Ethics," 'Ethics Code," or "this Code" means Parts A through H of this Ordinance. Confidential Government Information. "Confidential Government Information" is all information held by the Town that is not available to the public under the Public Information Act, (Chapter 552, Local Government Code ("the Act")) and any information from a meeting closed to the public pursuant to the Texas Open Meetings Act, (Chapter 551, Local Government Code) regardless of whether disclosure violates the Act and/or the Texas Open Meetings Act. Town. "Town" means the Town of Prosper, Texas. Consanguinity. Relationship by "Consanguinity" is defined in Sections 573.022 and 573.023 of the Texas Government Code. (See Attachment "A') Discretionary Contract. "Discretionary Contract" means any contract other than those which by law must be awarded on a qualified bid basis. Economic Interest. "Economic Interest" is legal or equitable property interests in land, chattels, and intangibles, and contractual rights having a value of more than fifty thousand dollars ($50,000.00). Service by a Town Official as an Officer, director, advisor, or otherwise active participant in an educational, religious, charitable, fraternal, or civic organization does not create for that Town Official an Economic Interest in the property of the organization. "Economic Interest" does not include the contract and/or business relationship that the Town Manager, Town Secretary, and/or the Municipal Court Judges and Magistrates and/or their respective law firms have with the Town. Ownership of an interest in a mutual or common investment fund that holds securities or other assets is not an Economic Interest in such securities or other assets unless the person in question participates in the management of the fund. Code of Ethics Ordinance Page 2 of 17 Gift. A voluntary transfer of property (including the payment of money) or the conferral of a benefit having monetary value (such as the rendition of services or the forbearance of collection on a debt), unless consideration of equal or greater value is received by the donor as quid pro quo. Indirect Ownership. A person "indirectly owns" an equity interest in a Business Entity where the interest is held through a series of business entities, some of which own interests in others. Matter. Matter is defined as the events or circumstances of a particular situation. Official. The term "Official" or "Town Official" is defined as the following persons: (1) The Mayor (2) Members of the Town Council (3) Municipal Court Judges and Magistrates (4) The Town Manager (5) The Assistant Town Manager (6) The Town Secretary (7) Town Attorney (8) Members of the temporary or standing, current or future Boards, Commissions, Governing Bodies, and Boards of Directors when those Boards, Commissions, Governing Bodies, and Boards of Directors are appointed in their entirety or partially by the Town Council of the Town. For the purposes of this document, the effective date will be October 1, 2008 for these offices. Official Action. "Official Action" is defined as: (1) any affirmative act (including the making of a recommendation) within the scope of, or in violation of, a Town Official's duties, and (2) any failure to act, if the Town Official is under a duty to act and knows that inaction is likely to affect substantially an Economic Interest of the Town Official or any person related to the Town Official in the first degree by consanguinity or affinity (See Attachment "A"). Official Information. "Official Information" is information gathered pursuant to the power or authority of Town. Partner. "Partner" is defined as partners in general partnerships, limited partnerships, limited liability partnerships,joint ventures, and any other partnership allowed by law. Personally and Substantially Participated. The requirement of having "personally and substantially participated" in a Matter is met only if the individual in fact exercised discretion relating to the Matter. The fact that the person had responsibility for a Matter does not by itself establish that the person "personally and substantially participated" in the Matter. Code of Ethics Ordinance Page 3 of 17 Representation. "Representation" is defined as all forms of communication and personal appearances in which a person, not acting in performance of Official duties, formally or informally, serves as an advocate for private interests, regardless of whether the Representation is compensated. Lobbying, even on an informal basis, is a form of Representation. Representation does not include appearance as a fact witness in litigation or other Official proceedings. Solicitation. "Solicitation" of subsequent employment or business opportunities is defined as all forms of proposals and negotiations relating thereto. SECTION 3: WORDING INTERPRETATION The gender of the wording throughout this Ordinance shall always be interpreted to mean either sex. All singular words shall include the plural, and all plural words shall include the singular. All references to the laws of the State of Texas or the Home Rule Charter, Ordinances, or Resolutions of the Town of Prosper Texas shall mean "as presently enacted or hereafter amended". PART B: PRESENT TOWN OFFICIALS SECTION 1:IMPROPER ECONOMIC BENEFIT (a) General Rule. Town Officials shall comply with Chapter 171 of the Local Government Code regarding conflicts of interest. (b) Affidavit and Abstention from Voting Required. Town Officials shall comply with Chapter 171 of the Local Government Code regarding Affidavits and Abstention from Voting. SECTION 2: UNFAIR ADVANCEMENT OF PRIVATE INTERESTS (a) General Rule. A Town Official may not use his Official position to grant or secure, or attempt to grant or secure, for any person (including himself) any form of special consideration, treatment, exemption, or advantage beyond that which is lawfully available to other persons. This rule does not apply to actions taken by a Town Official in the legislative process. (b) Special Rules. The following special rules apply in addition to the general rule: (1) Reciprocal Favors. A Town Official may not enter into an agreement or understanding with any other person that Official Action by the Official will be rewarded or reciprocated by the other person, directly or indirectly. (2) Appointment of Relatives/Anti-Nepotism. A Town Official shall not nominate, appoint or vote to nominate or appoint any person to a paid position with the Town who is related to the Town Official within the third degree of Consanguinity or second degree by Affinity. (3) No Town Council member who is on the Board of a nonprofit organization may vote on any funding request by that nonprofit organization, unless the nonprofit Code of Ethics Ordinance Page 4 of 17 organization has a Board of directors or trustees appointed in whole or in part by the Town Council. (c) Recusal and Disclosure. A Town Official whose conduct would otherwise violate Part B, Section 2(b)(2) shall openly declare that he/she must be recused based upon the Anti- Nepotism provisions and such Town Official shall not be counted as present for the agenda item for purposes of the tally or determining the total votes required. SECTION 3: GIFTS (Note: Chapter 176 of Local Government Code requires disclosure form for $250 over 12 month Period) (a) General Rule. A Town Official shall not solicit, accept, or agree to accept any Gift or benefit having a total aggregate value more than $250 over a consecutive 6 month period from the same person or entity. (b) Special Applications. Subsection (a) does not include: (1) a Gift to a Town Official relating to a special occasion, such as a wedding; anniversary, graduation, birth, illness, death, or holiday, provided that the value of the Gift is fairly commensurate with the occasion and the relationship between the donor and recipient; (2) reimbursement of reasonable expenses for travel authorized in accordance with Town policies; (3) a public award or reward for meritorious service or professional achievement, provided that the award or reward is reasonable in light of the occasion; (4) a loan from a lending institution made in its regular course of business on the same terms generally available to the public; (5) a scholarship or fellowship awarded on the same terms and based on the same criteria that are applied to other applicants; or (6) admission to an event in which the Town Official is participating in connection with Official duties; (7) lawful campaign contributions; (8) attending social functions, ground breakings, or civic events pertinent to the public relations and operations of the Town; (9) exchanging Gifts with his family and relatives; (10) exchanging Gifts at church functions or Town parties or functions where only Town Officials and their employees are invited or attended; Code of Ethics Ordinance Page 5 of 17 (11) exchanging Gifts or receiving a bonus from their place of full-time employment; (12) meals for the Town Official, and the Town Official's spouse, paid for by another party; or (13) participation in charitable events where the ticket price, entry fee or the like is waived for the Town Official and/or the Town Official's spouse. (c) Gifts to Closely Related Persons. A Town Official shall take reasonable steps to persuade a parent, spouse, child, stepchild, or other relative within the second degree of Consanguinity or Affinity (see Attachment "A') not to solicit, accept, or agree to accept any Gift or benefit which would violate Section 3(a) if the Official solicited, accepted, or agreed to accept it. SECTION 4: CONFIDENTIAL INFORMATION (a) Improper Access. A Town Official shall not use his position to secure Official Information about any person or entity for any purpose other than the performance of Official responsibilities. (b) Improper Disclosure or Use. A Town Official shall not disclose Confidential Government Information or use such information to further or impede anyone's personal interests. This Section 4 does not prohibit: (1) any disclosure or use that is authorized or required by law; or (2) the confidential reporting of illegal or unethical conduct to authorities designated by law. SECTION S:REPRESENTATION OF PRIVATE INTERESTS (a) Representation before the Town Council, Town Board or other Town Commission. A Town Official shall not represent any person, group, or entity, other than himself, or his spouse or minor children, before the Town. (b) Representation in Litigation Adverse to the Town. (1) Salaried Officials. A salaried Town Official shall not represent any person, group, or entity, other than himself, or his spouse or minor children, in any litigation to which the Town is a party, if the interests of that person, group, or entity are adverse to the interests of the Town. (2) Non-Salaried Officials. A non-salaried Official shall not represent any person, group, or entity, other than himself, or his spouse or minor children, in any litigation to which the Town is a party, if the interests of that person, group, or entity are adverse to interests of the Town and the matter is substantially related to the non-salaried Official's duties to the Town. Code of Ethics Ordinance Page 6 of 17 SECTION 6: PUBLIC PROPERTYAND RESOURCES A Town Official shall not use, request, or permit the use of Town facilities, personnel, equipment, or supplies for private purposes, except: (a) pursuant to duly adopted Town policies; or (b) to the extent and according to the terms that those resources are lawfully available to the public. SECTION 7:POLITICAL ACTIVITY Limitations on the political activities of Town Officials are imposed by state law and the Town Charter. In addition, the following ethical restrictions apply: (a) Influencing Subordinates. A Town Official shall not, directly or indirectly, induce or attempt to induce any subordinate of the Official: (1) to participate in an election campaign, contribute to a candidate or political committee, or engage in any other political activity relating to a particular party, candidate, or issue, or (2) to refrain from engaging in any lawful political activity, except activities prohibited by the Town Charter. (b) Official Vehicles. A Town Official shall not display or fail to remove campaign materials on any Town vehicle under his control. Limitations on the use of public property and resources for political purposes are imposed by Part B, Section 6. A Town Official may not spend or authorize the spending of public funds or use or authorize the use of public property for "political advertising", as that term is defined in the Texas Election Code, as it exists or may be amended. A general statement merely encouraging another person to vote does not violate this rule. SECTION 8:ACTIONS OF OTHERS (a) Violations by Other Town Officials. A Town Official shall not knowingly assist or induce, or attempt to assist or induce, another Town Official to violate any provision in this Code of Ethics. (b) Using Others to Engage in Forbidden Conduct. A Town Official shall not violate the provisions of this Code of Ethics through the acts of another. SECTION 9:INTERACTION WITH TOWN STAFF (a) Town Council members' and Board Members' interaction with the Town Manager or staff must recognize the lack of authority in any individual Town Council member, Board Code of Ethics Ordinance Page 7 of 17 Member or group of Town Council members or Board Members, except when explicitly authorized by the Town Council or Board. (b) Town Council members and Board Members will not make public individual judgments of the performance of the Town Manager, his staff, the Town Secretary, or the Municipal Judge except as authorized by ordinance or the Town Charter. (c) Town Council members and Board Members may not attempt to coerce or intimidate Town Employees, interfere with Town Employees' duties, or otherwise circumvent the authority of the Town Manager. Communications that are not in violation of this Section are permitted. SECTION 10: TOWN COUNCIL INTERACTION WITH GENERAL PUBLIC Town Council members' and Board Members' interaction with public, press or other entities must recognize the same limitation as expressed in Part B, Section 9 and the inability of any Town Council member or Board Member or group of Town Council members or Board Members to speak for the Town Council or Board except when explicitly authorized by the Town Council, that Board, or the Town Charter. SECTION 11:AFFIDAVIT AND ABSTENTION FROM VOTING REOUIRED (a) If a local public official has a substantial interest in a business entity or in real property, the official shall file, before a vote or decision on any a matter involving the business entity or the real property, an affidavit stating the nature and extent of the interest and shall abstain from further participation in the matter if: (1) Ownership of 10 percent or more of the voting stock or shares of the business entity; or (2) Ownership of either 10 percent or more, or $15,000 or more of the fair market value of the business entity; or (3) Funds received by the affiant from the business entity exceed 10 percent of the affiant's gross income for the previous year; or (4) Ownership of a legal or equitable interest in subject real estate with (said interest) having a fair market value of$2,500 or more; or (5) Is related to a person (in the first degree, by consanguinity or affinity, as determined under Chapter 573, Government Code), who has a substantial interest as such term is defined in Subsection 171.002 of the Local Government Code. (b) The affidavit must be filed with the official record keeper of the governmental entity. (c) If a local public official is required to file and does file an affidavit under Subsection (a), the official is not required to abstain from further participation in the matter requiring the affidavit if a majority of the member of the governmental entity of which the official is a member is composed of persons who are likewise required to file and who do files affidavits of similar interest on the same official action. Code of Ethics Ordinance Page 8 of 17 PART C: FORMER TOWN OFFICIALS SECTION]: CONTINUING CONFIDENTIALITY A former Town Official shall not use or disclose Confidential Government Information acquired during service as a Town Official. This rule does not prohibit: ( ) any a disclosure or use that is authorized or required by law; or (b) the confidential reporting of illegal or unethical conduct to authorities designated by law. SECTION 2:SUBSEOUENT REPRESENTATION (a) Representation by a Former Board Member. A person who was a member of a Board shall not represent before that Board any person, group, or entity other than himself, or his spouse or minor children, for a period of six (6) months after the termination of his Official duties. (b) Representation before the Town. A former Town Official shall not represent any person, group, or entity, other than himself, or his spouse or minor children, before the Town for a period of six (6) months after termination of his Official duties, unless hired by the Town under the authority granted within the Town Charter. (c) Representation in Litigation Adverse to the Town. A former Town Official shall not, absent consent from the Town, represent any person, group, or entity, other than himself, or his spouse or minor children, in any litigation to which the Town is a party, if the interests of that person, group, or entity are adverse to the interests of the Town and the Matter is one in which the former Town Official Personally and Substantially Participated prior to termination of his Official duties. SECTION 3:DISCRETIONARY CONTRACTS (a) Impermissible Interest in Discretionary Contract or Sale. This Subsection applies only to contracts or sales made on a discretionary basis, and not to contracts or sales made on a competitive bid basis. Within six (6) months of the termination of Official duties, a former Town Council member shall not have a financial interest, direct or indirect, in any contract with the Town, and shall not be financially interested, directly or indirectly, in the sale to the Town of any land, materials, supplies, or service. Any violation of this Section, with the knowledge, expressed or implied, of the individual or Business Entity contracting with the Town Council shall render the contract involved voidable by the Town Manager or the Town Council. A former Town Council member has a prohibited "financial interest" in a contract with the Town, or in the sale to the Town of land, materials, supplies, or service, if any of the following individuals or entities is a party to the contract or sale: (1) the former Town Council member; (2) his/her parent, child, stepchild, or spouse; Code of Ethics Ordinance Page 9 of 17 (3) a Business Entity in which the former Town Council member directly or indirectly owns: (A)ten (10) percent or more of the voting stock or shares of the Business Entity, or (B)ten (10) percent or more of the fair market value of the Business Entity; or (4) a Business Entity of which any individual or entity listed in Part C, Section 3(a)(1) or 3(a)(3) is: (A)a subcontractor on a Town contract; or (B)an Affiliated business or Partner. (b) Prior Participation in Negotiation or Awarding. A former Town Council member may not, within one (1) year of the termination of Official duties, perform work on a compensated basis relating to a Discretionary Contract, if he Personally and Substantially Participated in the negotiation or awarding of the contract. (c) Definitions. For purposes of Part C, Section 3(a) of this rule: (1) A "former Town Council member" is any person who, immediately prior to termination of Official duties, was the Mayor or a member of the Town Council. (2) The term "contract" means any contract other than a contract for the personal services of the former Town Council member. (3) The term "service" means any services other than the personal services of the former Town Council member. PART D: PERSONS DOING BUSINESS WITH THE TOWN SECTION 1:PERSONS SEEKING CONTRACTS (a) Disclosure of Parties, Owners, and Closely Related Persons. An individual or Business Entity seeking a contract from the Town is required to complete the Conflict of Interest Questionnaire required by Chapter 176 of the Local Government Code. (b) Political Contributions. Any individual or Business Entity seeking a Discretionary Contract from the Town must disclose, on a form provided by the Town, all political contributions totaling two hundred fifty dollars ($250) or more within the past twenty-four (24) months made directly or indirectly to any member of Town Council, or to any political action committee that contributes to Town Council elections, by any individual or Business Entity whose identity must be disclosed under Part D, Section 1 (a). Indirect contributions by an entity include, but are not limited to, contributions made through the officers or owners of the Business Entity. (c) Briefing Papers and Open Records. Briefing papers prepared for the Town concerning any proposed Discretionary Contract shall reveal the information disclosed in compliance with Code of Ethics Ordinance Page 10 of 17 Part D, Sections 1(a) and 1(b), and that information shall constitute an open record available to the public. PART E: MEMBERS OF THE PUBLIC AND OTHERS Part E applies to current and former Town Officials, persons doing business with the Town, and lobbyists, as well as to members of the public and any other person (including Business Entities and nonprofit entities). SECTION l: FORMS OF RESPONSIBILITY No person shall induce, attempt to induce, conspire with, aid or assist, or attempt to aid or assist another person to engage in conduct violative of the obligations imposed by this Code of Ethics. SECTION 2:STANDARDS OF CONDUCT (a) No Town officer, employee, or advisory board member or their spouses shall knowingly: (1) Accept or solicit any gift, favor, service, or thing of value from any person group or business entity that might reasonably tend to influence him in the discharge of his official duties. This prohibition shall not apply to: (a) An occasional non pecuniary gift, insignificant in value or; (b) An award publicly presented in recognition of public service or; (c) Any gift which would have been offered or given to him if he were not a Town officer, employee, or advisory board member, or their spouses. (2) Grant in the discharge of his or her official duties any improper favor, service or thing of value to any person group or business entity; (3) Accept or solicit any gift, favor, service or thing of value, including a promise of future employment, of sufficient economic value that it might reasonably tend to influence him, in the discharge of his official duties, from any person, group or business entity: (a) Who is licensed or has a substantial interest in any business entity that is licensed by any Town department, agency, commission, or board on which the Town officer, employee, or advisory board member serves; or (b) Who has a financial interest in any proposed ordinance or decision upon which the Town officer, employee, or advisory board member may or must act or make a recommendation; provided, however, that any Town officer, employee, or advisory board member and their spouses, may accept travel and related expenses to attend ceremonial functions,provided that such acceptance and attendance have been approved by the Town council prior to the occurrence of the ceremonial function. Code of Ethics Ordinance Page 11 of 17 (4) Knowingly discloses any confidential information gained by reason of the position of the officer, employee or advisory board member concerning the property, operations, policies, or affairs of the Town, or use such confidential information to advance any personal interest, financial or otherwise, of such officer, employee, or advisory board member, or others. Section (a)(4) of this section shall not preclude disclosure of such confidential information in connection with any investigation or proceeding regarding whether there has been a violation of the standards of conduct set forth by this article. (5) Use one's position or office of employment or Town facilities, personnel, equipment, or supplies to secure special privileges or exemptions for himself or others or for the private gain of the Town officer, employee, advisory board member or his spouse. (6) Engage in any exchange, purchase or sale of property, goods or services with the Town, except: (a) Rendering services to the Town as an officer employee or advisory board member; (b) Paying taxes, fines, utility service, or filing fees; (c) Executing and performing any developer's agreement or plat in compliance with laws and regulations applicable to any person provided however that if any Town ordinance rule or regulation allows any discretion by the appropriate officers or employees of the Town in the interpretation or enforcement of such ordinance rule or regulation any such discretion shall be exercised in favor of the Town in connection with any such developer's agreement or plat; (d) Advisory board members who are not otherwise officers or employees of the own may engage in any exchange purchase or sale of property goods or services with the Town or enter into a contract with the Town provided that the board on which they are a member has no advisory function or cognizance direct or indirect present or prospective with respect to the transaction in which such advisory board member engages or proposes to engage. (7) Hold himself/ herself out as representing the Town in any capacity other than that for which he was appointed, elected, or hired. (8) Engage in or accept private employment or render a service when such employment or service is incompatible with the proper discharge of his or her official duties or would tend to impair his or her independent judgment in the performance of his or her official duties. (9) Make or permit the unauthorized use of Town owned vehicles equipment materials or property. Code of Ethics Ordinance Page 12 of 17 (10) Grant any special consideration treatment or advantage to any citizen beyond that which is available to every other citizen. (11) After termination of service or employment with the Town, appear before any board or commission of the Town in relation to any case proceeding or application in which he or she personally participated or which was under his or her active consideration during the period of his or her service or employment. (12) Transact any business in his or her official capacity with the Town with a business entity in which he she has a substantial interest. (13) Engage in any dishonest or criminal act or any other conduct prejudicial to the government of the Town or that reflects discredit upon the government of the Town. (14) Knowingly perform or refuse to perform any act in order to deliberately thwart the execution of Town ordinances, rules, or regulations or the achievement of official Town programs. (b) The restrictions in this section do not prohibit the following: (1) A Town employee or member of a Town board, other than Town Council, or his or her spouse appearing before the Town Council or a Town department, agency, board, or commission to represent himself or herself in a matter affecting his or her property; or (2) A Town employee or officer of an employee organization appearing before the Town Council or a Town department, agency, board, or commission to address employment matters. (c) The restrictions in this section do not apply to business associates of officers, employees, or advisory board members, but only personally to the officers, employees, and advisory board members themselves. PART F: ETHICS REVIEW PROCESS SECTION 1:DEFINITIONS As used in Part F, the term "ethics laws" is defined as this Code of Ethics, Article XIV of the Town Charter, and Chapters 171 and 176 of the Texas Local Government Code. The term "ethical violation" is defined as violations of any of these enactments. SECTION 2: COMPLAINTS (a) Filing. Any person who believes that there has been a violation of the ethics laws may file a notarized affidavit with the Town Secretary. The "Affidavit" shall: (1) identify the person or persons who allegedly committed the violation; (2) provide a statement of the facts on which the complaint is based; (3) to the extent possible, identify the rule or rules allegedly violated; and Code of Ethics Ordinance Page 13 of 17 (4) be sworn to in the form of an affidavit and be based on personal knowledge of the affiant and be subject to the laws of perjury. The complainant may also recommend other sources of evidence that the Investigator (as defined below) should consider and may request a hearing. (b) Confidentiality. No Town Official shall reveal information relating to the filing or processing of a Complaint except as required for the performance of Official duties. All papers relating to a pending Complaint are confidential. (c) Notification. A copy of a Complaint meeting Part F, Section 2(a) shall be promptly forwarded by the Town Secretary to the Town Attorney and to the person charged in the Complaint. The person charged in the Complaint shall also be provided with a copy of the ethics rules and shall be informed: (1) that, within fourteen (14) days of receipt of the Complaint, he may file a sworn response with the Town Secretary; (2) that failure to file a response does not preclude the Town Attorney from selecting an Investigator to process the Complaint; (3) that a copy of any response filed by the person charged in the Complaint will be provided by the Town Secretary to the complainant, who may within seven (7) days respond by sworn writing filed with the Town Secretary, a copy of which shall be provided by the Town Secretary to the person charged in the Complaint; (4) that the person charged in the Complaint may request a hearing; and (5) that Town Officials have a duty to cooperate with the Town Attorney, pursuant to Part F, Section 3 of this Code of Ethics. (d) Assistance. The Town Secretary shall provide information to persons who inquire about the process for filing a Complaint. SECTION 3:PROCEDURE FOR COMPLAINTS AGAINST TOWN OFFICIALS Within three (3) business days after receipt, it shall be the duty of the Town Attorney to select a third party attorney who does not perform legal work for the Town to conduct the investigation (the "Investigator") on behalf of the Town and notify the Town Council, Town Manager and the person charged in the Complaint of the Investigator selected. The Town Council shall approve or reject an Investigator selected by the Town Attorney at its next meeting for which there is time to post the item on the agenda as required by law. If the Town Council rejects an Investigator, the Town Attorney shall select another one in accordance with this Section. Within seven (7) business days after being approved as the Investigator by the Town Council, the Investigator shall make the initial determination/evaluation of the Complaint as to whether or not the facts alleged, if true, would at face value constitute a violation of this Code of Ethics. If it is determined by the Investigator that the facts as alleged would not constitute a violation, then at a meeting posted in accordance with the notice requirements of the Texas Open Meetings Act, the Investigator shall present a written report describing in detail the nature of the Complaint and the findings of the Investigator to the Town Council at its next regularly scheduled meeting. A majority of those Town Council members not implicated by the allegation(s) may either invoke Code of Ethics Ordinance Page 14 of 17 the investigatory procedure contained herein or reject the Complaint. Any vote regarding the Complaint shall be in a public hearing called for that purpose. If it is determined by the Investigator that the facts as alleged could constitute a violation of this Code of Ethics, then the Investigator shall, within seven (7) business days after receipt of the Complaint, notify the Mayor and Town Council of the existence and nature of the Complaint. The Mayor or any three (3) members of the Town Council may cause a meeting of the Town Council to convene, whether regular or special, within seven (7) business days after being so notified by the Investigator to further consider said Complaint in Executive Session and/or an Open Meeting, as permitted by the Texas Open Meetings Act. At said meeting, the Investigator shall present an initial written report ("Initial Report") to the Town Council describing in detail the nature of the Complaint and his findings and conclusions as to a possible violation of this Code of Ethics. The Investigator shall have all of the powers of investigation as is given to the Town Council by reason of Article III, Section 3.16 of the Town Charter. The Investigator shall report back to the Town Council in writing as soon as possible but in no event more than fifteen (15) business days from the day of the Initial Report or twenty-one (2 1) days from the day the appointment of the Investigator was approved by the Town Council, whichever is later. Said report shall be comprehensive in support of the Investigator's opinion as to whether or not a violation of this Code of Ethics occurred. The Town Council shall consider the findings of said report at the meeting at which it is presented at which time the person(s) accused shall have the right to a full and complete hearing with the opportunity to call witnesses and present evidence on his behalf. No final action, decision, or vote with regard to any matter shall be made except in a meeting which is open to the public. Any Town Council Member under investigation pursuant to this Section shall not be permitted to participate in any vote regarding violations of ethics laws. PART G: ENFORCEMENT MECHANISMS In addition to other remedies provided by law, any one or more of the following remedies may be imposed upon a Town Official with respect to violations of this Code of Ethics. If it has been determined that a Town Council member has violated a provision of this Code of Ethics, the Town Council member who is in violation shall not participate in decisions regarding any penalty(ies) to be imposed under this Part G and said Council Member shall not be counted as present for the agenda item for purposes of the tally or determining the total votes required. SECTION]:DISCIPLINAR YA CTION Town Officials (excluding current Town Council members) who engage in conduct that violates this Code of Ethics may be notified, warned, reprimanded, suspended, or removed from office or employment by the Town Council. SECTION 2: CIVIL FINE Any person, whether or not a Town Official, who violates any provision of this Code of Ethics is subject to a fine not exceeding five hundred dollars ($500.00), such amount to be determined by the Town Council. Code of Ethics Ordinance Page 15 of 17 SECTION 3:PROSECUTION FOR PERJURY Any person who files a false sworn Complaint under Part F, Section 2(a) of this Code of Ethics is subject to criminal prosecution for perjury under the laws of the State of Texas. SECTION 4: VOIDING OR RATIFICATION OF CONTRACT If an ethics review finds that there has been a violation of any provision of this Code of Ethics that is related to the awarding of a contract, the Town Council must vote on whether to ratify or void the contract. Such action shall not affect the imposition of any penalty or remedy contained in this Code of Ethics or any other law. SECTION S:DISOUALIFICATION FROM CONTRACTING (a) Any person (including business entities and non-profit entities) who intentionally or knowingly violates any provision of Part D (Persons Doing Business with the Town) may be prohibited by the Town Council from entering into any contract with the Town for a period not to exceed three (3) years. (b) It is a violation of this Code of Ethics: (1) for a person prohibited from entering into a contract with the Town to enter, or attempt to enter, into a contract with the Town during the period of disqualification from contracting; or (2) for a Town Official to knowingly assist a violation of Part G, Section 5. (c) Nothing in this Section shall be construed to prohibit any person from receiving a service or benefit, or from using a facility, which is generally available to the public, according to the same terms. (d) A Business Entity or nonprofit entity may be disqualified from contracting based on the conduct of an employee or agent, if the conduct occurred within the scope of the employment or agency. PART H: ADMINISTRATIVE PROVISIONS SECTION 1: OTHER OBLIGATIONS This Code of Ethics is cumulative of and supplemental to applicable state and federal laws and regulations. Compliance with the provisions of this Code of Ethics shall not excuse or relieve any person from any obligation imposed by state or federal law regarding ethics, financial reporting, lobbying activities, or any other issue addressed herein. Even if a Town Official is not prohibited from taking official action by this Code of Ethics, action may be prohibited by duly promulgated personnel rules, which may be more stringent. SECTION 2: EFFECTIVE DATE This Code of Ethics shall take effect on March 25, 2008, following its adoption and publication as required by law. Individuals seated as Town Officials on the effective date of this Ordinance Code of Ethics Ordinance Page 16 of 17 shall be bound by it and shall sign a written acknowledgement of receipt and understanding of this Code of Ethics within 30 days of the effective date. All Town Officials elected, appointed or retained following the effective date of this Code of Ethics shall sign a written acknowledgement of receipt and understanding of this Code of Ethics before performing any of the duties or functions of the Town Official's position. SECTION 3:DISTRIBUTIONAND TRAINING (a) At the time of application for a position of Town Official, every applicant shall be furnished with a copy of this Code of Ethics. No application shall be considered complete without a signed acknowledgement of receipt and understanding of this Code of Ethics by the applicant. (b) The Town Attorney or Town Manager as designated by the Town Council shall develop educational materials and conduct educational programs for the Town Officials on the provisions of this Code of Ethics, Article XIV of the Town Charter, and Chapters 171 and 176 of the Texas Local Government Code. Such materials and programs shall be designed to maximize understanding of the obligations imposed by these ethics laws. SECTION 4:SEVERABILITY If any provision of this Code of Ethics is found by a court of competent jurisdiction to be invalid or unconstitutional, or if the application of this Code of Ethics to any person or circumstances is found to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the other provisions or applications of this Code of Ethics which can be given effect without the invalid or unconstitutional provision or application. READ, CONSIDERED, PASSED AND APPROVED by the Town of Prosper, Texas, on this the 25th day of March, 2008. Warles Niswanger, Mayes ATTEST: >>0�1 PR11j�,' BY ar '/Matthew Denton, TRMC w Town Secretary . Code of Ethics Ordinance Page 17 of 17