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<chapter num="08" heading="Conflicts of Interest Policy for Employees Who Own or Operate a Farm" title_num="15" subtitle_num="01">
  <regulation prefix="Regulation" num=".01" heading="Scope.">
    <text>The Maryland Department of Agriculture's State agriculture programs benefit from the specialized knowledge of employees who own or operate a farm. This chapter explains the Department's policy governing conflicts of interest relating to financial interest and secondary employment for employees who work for the Department and at the same time own or operate a farm that is subject to the Department's regulatory authority.</text>
  </regulation>
  <regulation prefix="Regulation" num=".02" heading="Required Employee Disclosure.">
    <text>An individual who applies for employment, or who is employed by the Department, shall disclose whether that individual or employee owns, has an ownership interest in, or operates a farm.</text>
  </regulation>
  <regulation prefix="Regulation" num=".03" heading="Employment Participation Restrictions.">
    <text>A Department employee may not participate, as a part of that employee's duties, in any of the following matters if that participation in any way affects the employee's farm, or a farm that directly competes for business with the employee's farm operation:</text>
    <paragraph num="A.">
      <text>Any contract with the Department;</text>
    </paragraph>
    <paragraph num="B.">
      <text>Any regulatory or enforcement action;</text>
    </paragraph>
    <paragraph num="C.">
      <text>Any Department program that controls, or in any way regulates the employee's farm operation; or</text>
    </paragraph>
    <paragraph num="D.">
      <text>Any matter that will have a direct and predictable effect on the employee's financial interest in the employee's farm operation, including such a matter involving:</text>
      <paragraph num="(1)">
        <text>The employees' spouse, or immediate family;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>An outside employer or prospective employer of the employee;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>An organization in which the employee serves as an officer, director, or general partner; or</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Any person with whom the employee has or seeks a business, contractual, or other financial relationship.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".04" heading="Ethics Law Restrictions.">
    <paragraph num="A.">
      <text>Any Department employee who owns or operates a farm is subject to all applicable provisions of the Ethics Law.</text>
    </paragraph>
    <paragraph num="B.">
      <text>For example, the Ethics Law, in part, prohibits employees from participating in matters in which the employee or a relative has a financial or other interest under State Government Article, §15-501, Annotated Code of Maryland.</text>
    </paragraph>
    <paragraph num="C.">
      <text>The Ethics Law contains restrictions on:</text>
      <paragraph num="(1)">
        <text>Post-employment, under State Government Article, §15-504, Annotated Code of Maryland;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Gifts, under State Government Article, §15-505, Annotated Code of Maryland; and</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Procurement, under State Government Article, §15-508, Annotated Code of Maryland.</text>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>The Ethics Law precludes employees from intentionally using the prestige of their position to benefit themselves or others, under State Government Article, §15-606, Annotated Code of Maryland, and State Government Article, §2-307, Annotated Code of Maryland.</text>
    </paragraph>
    <paragraph num="E.">
      <text>The Ethics Law precludes disclosure or use of confidential information acquired by reason of the employee's public position and not yet available to the public:</text>
      <paragraph num="(1)">
        <text>For personal economic benefit; or</text>
      </paragraph>
      <paragraph num="(2)">
        <text>For the economic benefit of another, unless the confidential information is released in the discharge of an official duty, under State Government Article, §15-507, Annotated Code of Maryland.</text>
      </paragraph>
    </paragraph>
    <paragraph num="F.">
      <text>In accordance with State Government Article, §15-601, Annotated Code of Maryland, employees may be subject to financial disclosure provisions and may be required to file annual statements if identified as being required to file under that section.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".05" heading="Department Responsibilities.">
    <text>The Department is responsible for:</text>
    <paragraph num="A.">
      <text>Making each employee aware of the requirements of this chapter;</text>
    </paragraph>
    <paragraph num="B.">
      <text>Ensuring that each employee who has an outside farm business acknowledges that the employee has read and agrees to be bound by the requirements of this chapter;</text>
    </paragraph>
    <paragraph num="C.">
      <text>Ensuring that each employee subject to this chapter has executed a nonparticipation agreement with the Department that requires the employee to designate a representative to interact with the Department on matters involving the employee's farming business, and directs the employee to acknowledge that the employee may not participate in any way in any decision regarding any complaint or question regarding their farming business;</text>
    </paragraph>
    <paragraph num="D.">
      <text>Keeping records for each employee who is subject to the requirements of this chapter; and</text>
    </paragraph>
    <paragraph num="E.">
      <text>Monitoring and enforcing employee compliance with the requirements of this chapter.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".06" heading="Noncompliance.">
    <text>An employee who violates this chapter is subject to disciplinary action, including termination from State service.</text>
  </regulation>
  <regulation prefix="Regulation" num=".07" heading="Reports to the Ethics Commission.">
    <text>The Department shall provide copies of applicable nonparticipating agreements, and provide annual reports to the State Ethics Commission on the number of employees hired by the Department during any year who own or operate a farm that is subject to the Department's regulatory authority.</text>
  </regulation>
  <regulation prefix="Regulation" num=".08" heading="Report to the General Assembly.">
    <text>On or before December 31, 2010, the Maryland Department of Agriculture and the State Ethics Commission shall jointly prepare and submit a report to the General Assembly, in accordance with State Government Article, §2-1246, Annotated Code of Maryland that includes:</text>
    <paragraph num="A.">
      <text>The number of employees hired by the Department, on or after October 1, 2007, who own or operate a farm;</text>
    </paragraph>
    <paragraph num="B.">
      <text>The positions for which the employees identified in this regulation were hired; and</text>
    </paragraph>
    <paragraph num="C.">
      <text>Information on how the Department addressed any conflict of interest or potential conflict of interest in hiring the employees identified in this regulation.</text>
    </paragraph>
  </regulation>
  <annotations>
    <annotation type="Authority">Agriculture Article §2-102(e), Annotated Code of Maryland</annotation>
    <annotation type="History" subtype="Administrative History">Effective date: March 8, 2010 (37:5 Md. R. 428)</annotation>
  </annotations>
</chapter>