<subtitle num="01" heading="Procedures"> <chapter num="01" heading="General Provisions"> <regulation prefix="Regulation" num=".01" heading="Purpose and Scope."> <paragraph num="A."> <text>The purpose of these regulations is to set forth the procedures under which the State Ethics Commission will implement the Maryland Public Ethics Law (General Provisions Article, Title 5, Annotated Code of Maryland) as to persons and entities within its jurisdiction pursuant to General Provisions Article, §5-104, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>The regulations apply to officials and employees of State government as set forth below:</text> <paragraph num="(1)"> <text>Officials and employees of the Executive Branch, including those employed with or appointed to local units of State agencies, or others specifically designated to be covered by the Public Ethics Law;</text> </paragraph> <paragraph num="(2)"> <text>Constitutional officers and officers-elect in the executive units;</text> </paragraph> <paragraph num="(3)"> <text>Persons holding office as State's Attorney, Clerk of the Circuit Court for each county, Register of Wills, and Sheriff;</text> </paragraph> <paragraph num="(4)"> <text>As to the General Assembly:</text> <paragraph num="(a)"> <text>Employees of the General Assembly; and</text> </paragraph> <paragraph num="(b)"> <text>Members and members-elect of the General Assembly, as to matters regarding financial disclosure required by General Provisions Article, Title 5, Subtitle 6, Annotated Code of Maryland;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>As to the Judiciary:</text> <paragraph num="(a)"> <text>Employees of the Judicial Branch; and</text> </paragraph> <paragraph num="(b)"> <text>Members of the Judiciary, but only to the extent that the Commission has responsibilities as custodian of financial disclosure statements submitted by members of the Judiciary pursuant to General Provisions Article, Title 5, Subtitle 6, Annotated Code of Maryland; and</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Any other officials or employees specifically identified by statute as being covered by the provisions of the Public Ethics Law.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The regulations apply to candidates for office as State officials.</text> </paragraph> <paragraph num="D."> <text>The regulations apply to persons subject to the lobbying disclosure provisions of General Provisions Article, Title 5, Subtitle 7, Annotated Code of Maryland.</text> </paragraph> <paragraph num="E."> <text>The regulations apply to county and municipal governments and to local school systems, to the extent that they deal with model provisions, review of local and school system laws and regulations, requests for exemption pursuant to General Provisions Article, §5-209, Annotated Code of Maryland, and General Provisions Article, Title 5, Subtitle 8, and provision of Commission advice regarding these matters. They do not directly affect officials and employees solely of local jurisdictions or school systems who are properly included within local and school systems ethics provisions.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <text>In this title, the following terms have the meanings indicated:</text> <paragraph num="A."> <text>“Board” or “commission” means a board, commission, council, or any other executive unit, however denominated, comprised of two or more appointed members, all of whom serve on the board or commission on a part-time basis.</text> </paragraph> <paragraph num="A-1."> <text>“Business” or “business entity” means any corporation, general or limited partnership, sole proprietorship (including a private consulting operation), joint venture, unincorporated association or firm, institution, trust, foundation or other organization, whether or not operated for profit.</text> </paragraph> <paragraph num="B."> <text>“Commission” means the State Ethics Commission.</text> </paragraph> <paragraph num="C."> <text>“Compensation” means any money or thing of value regardless of form received or to be received by any individual subject to this title from an employer for service rendered. For purposes of General Provisions Article, Title 5, Subtitle 7, Annotated Code of Maryland, if lobbying is only a portion of a person's employment, compensation means a prorated amount based on the time devoted to lobbying compared to the time devoted to other employment duties. For reporting purposes, a prorated amount shall be labeled as such.</text> </paragraph> <paragraph num="C-1."> <text>“Designated second home” means:</text> <paragraph num="(1)"> <text>If an individual owns one second home, the individual’s second home; or</text> </paragraph> <paragraph num="(2)"> <text>If an individual owns more than one second home, any one second home the individual identifies to the Commission as the individual’s designated second home.</text> </paragraph> </paragraph> <paragraph num="D."> <text>“Doing business with the State” means being:</text> <paragraph num="(1)"> <text>A party to any one or any combination of sales, purchases, leases, or contracts to, from, or with the State, or any agency of the State, involving consideration of $5,000 or more on a cumulative basis during the calendar year for which a required statement is to be filed (as of the awarding or execution of a contract or lease, the total then ascertainable consideration thereby committed to be paid, regardless of the period of time over which the payments are to be made, shall be included); or</text> </paragraph> <paragraph num="(2)"> <text>A registrant; or</text> </paragraph> <paragraph num="(3)"> <text>Regulated by the executive unit of the official or employee.</text> </paragraph> </paragraph> <paragraph num="E."> <text>“Employee” or “State employee” means any person, other than a State or public official, employed by an executive unit or the legislative branch or in the judicial branch of State government.</text> </paragraph> <paragraph num="F."> <text>“Employer” means any person paying or agreeing to pay compensation to another person for services rendered.</text> </paragraph> <paragraph num="G."> <text>“Executive action” means any act taken by a State or public official or employee of the executive branch, for which the executive branch is responsible.</text> </paragraph> <paragraph num="H."> <text>Executive Unit.</text> <paragraph num="(1)"> <text>“Executive unit” means a department, agency, commission, board, council, or other body in State government which is established by law but which is not a part of either the legislative branch or the judicial branch.</text> </paragraph> <paragraph num="(2)"> <text>“Executive unit” includes:</text> <paragraph num="(a)"> <text>Entities functioning within county jurisdiction, but found as a matter of law to be executive units in State government, including, but not limited to, county boards of elections and community colleges;</text> </paragraph> <paragraph num="(b)"> <text>Local units of State cabinet departments, such as local departments of social services and (except when specifically excluded by statute) local health departments; and</text> </paragraph> <paragraph num="(c)"> <text>Any other unit specifically designated by State law as being covered by the Public Ethics Law.</text> </paragraph> </paragraph> </paragraph> <paragraph num="I."> <text>“Financial interest” means:</text> <paragraph num="(1)"> <text>Ownership of any interest as the result of which the owner has received, within the past 3 years, or is presently receiving, or in the future is entitled to receive, more than $1,000 per year; or</text> </paragraph> <paragraph num="(2)"> <text>Ownership, or the ownership of securities of any kind representing or convertible into ownership, of more than 3 percent of a business entity.</text> </paragraph> </paragraph> <paragraph num="J."> <text>“General Assembly” includes any members, committee, or subcommittee of the General Assembly or of the Legislative Policy Committee.</text> </paragraph> <paragraph num="K."> <text>Gift.</text> <paragraph num="(1)"> <text>“Gift” means the transfer of anything of economic value regardless of the form without adequate and lawful consideration.</text> </paragraph> <paragraph num="(2)"> <text>“Gift” does not include the solicitation, acceptance, receipt, or regulation of contributions as defined in Election Law Article, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="K-1."> <text>“Home address” means the address of an individual’s:</text> <paragraph num="(1)"> <text>Principal home; and</text> </paragraph> <paragraph num="(2)"> <text>Designated second home, if any.</text> </paragraph> </paragraph> <paragraph num="L."> <text>“Immediate family” means spouse and dependent children.</text> </paragraph> <paragraph num="M."> <text>“Interest” means any legal or equitable economic interest, whether or not subject to an encumbrance or a condition, which was owned or held, in whole or in part, jointly or severally, directly or indirectly. For purposes of General Provision Article, Title 5, Subtitle 6, “interest” applies to interests held at any time during the calendar year for which a required statement is to be filed. “Interest” does not include:</text> <paragraph num="(1)"> <text>An interest held in the capacity of a personal representative, agent, custodian, fiduciary, or trustee, unless the holder has an equitable interest therein;</text> </paragraph> <paragraph num="(2)"> <text>An interest in a time or demand deposit in a financial institution;</text> </paragraph> <paragraph num="(3)"> <text>An interest in an insurance or endowment policy or annuity contract under which an insurance company promises to pay a fixed number of dollars either in a lump sum or periodically for life or some other specified period;</text> </paragraph> <paragraph num="(4)"> <text>A common trust fund or a trust which forms part of a pension or profit sharing plan which has more than 25 participants and which has been determined by the Internal Revenue Service to be a qualified trust under the Internal Revenue Code or a qualified tuition plan established pursuant to Section 529 of the Internal Revenue Code; or</text> </paragraph> <paragraph num="(5)"> <text>A mutual fund or exchange-traded fund that is publicly traded on a national scale unless the mutual fund or exchange-traded fund is composed primarily of holdings of stocks and interests in a specific sector or area that is regulated by the individual’s governmental unit.</text> </paragraph> </paragraph> <paragraph num="N."> <text>“Legislative action” means introduction, sponsorship, consideration, debate, amendment, passage, defeat, approval, veto, or any other official action or nonaction on any bill, resolution, amendment, nomination, appointment, report, or any other matter pending or proposed in a committee or subcommittee in either house of the General Assembly, any matter which is within the official jurisdiction of the General Assembly, the Legislative Policy Committee or any committee or subcommittee thereof, any legislative bill pending or presented to the Governor for signature or veto, or testimony or other advocacy in an official capacity as a member of the General Assembly before a unit of State or local government.</text> </paragraph> <paragraph num="O."> <text>“Lobbying” means the performing of any act requiring registration.</text> </paragraph> <paragraph num="P."> <text>“Lobbyist” means any person who, within a reporting period, in the presence of any official or employee in the legislative or executive branch has communicated with that official or employee for the purpose of influencing any legislative action, and who, for that purpose and exclusive of the personal travel or subsistence expenses of that person or representative of that person, either incurs expenses of $100 or more or receives $500 or more as compensation, or any person who expends a cumulative value of $100 or more during a reporting period on one or more officials or employees in the executive branch for meals, beverages, special events, or gifts in connection with or with the purpose of influencing executive action.</text> </paragraph> <paragraph num="Q."> <text>Local Official.</text> <paragraph num="(1)"> <text>“Local official” means any official, officer, or employee of a county, the City of Baltimore, or an incorporated municipality, determined by the governing body of that jurisdiction to be subject to the provisions of General Provisions Article, Title 5, Subtitle 8, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>“Local official” does not include an employee or official:</text> <paragraph num="(a)"> <text>Of the judicial branch; or</text> </paragraph> <paragraph num="(b)"> <text>In an executive unit as defined in §H of this regulation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="R."> <text>“Member of household” means a person's spouse, child, ward, financially dependent parent, or other relative who shares the person's legal residence, or a person's child, ward, parent, or other relative over whose financial affairs the person has legal or actual control.</text> </paragraph> <paragraph num="S."> <text>“Official” means either a State or a public official.</text> </paragraph> <paragraph num="T."> <text>“Person” includes an individual or business entity.</text> </paragraph> <paragraph num="U."> <text>“Political contribution” means contributions as that term is defined in Article 33, §1-1, Annotated Code of Maryland.</text> </paragraph> <paragraph num="U-1."> <text>“Principal home” means the sole residential property that an individual occupies as the individual’s primary residence, whether owned or rented by the individual.</text> </paragraph> <paragraph num="V."> <text>“Public Ethics Law” means the Maryland Public Ethics Law as set forth in General Provisions Article, Title 5, Annotated Code of Maryland.</text> </paragraph> <paragraph num="W."> <text>“Public official” has the meaning stated in General Provisions Article, §5-101(ff), Annotated Code of Maryland.</text> </paragraph> <paragraph num="X."> <text>“Quasi-governmental entity” means an entity that is created by state statute, that performs a public function, and that is supported in whole or in part by the state but is managed privately.</text> </paragraph> <paragraph num="Y."> <text>“Registrant” means any person required to register pursuant to General Provisions Article, §5-702(a), Annotated Code of Maryland.</text> </paragraph> <paragraph num="Z."> <text>“Respondent” means an official, a candidate for office, an employee, or a person subject to General Provisions Article, Title 5, Subtitle 7, Annotated Code of Maryland, who is the subject of a complaint before the Commission, pursuant to COMAR 19A.01.03.</text> </paragraph> <paragraph num="Z-1."> <text>“Second home” means a residential property that:</text> <paragraph num="(1)"> <text>An individual occupies for some portion of the filing year; and</text> </paragraph> <paragraph num="(2)"> <text>Is not a rental property or a time share.</text> </paragraph> </paragraph> <paragraph num="Z-2."> <text>“State official” means a member or member-elect of the General Assembly, a judge or judge-elect of a court created by Article IV, Section 1 of the Constitution and a person defined in Rule 11 of Maryland Rule No. 1232, or a constitutional officer or officer-elect in an executive unit of the State government. State official also means a person holding office as State's attorney, clerk of the circuit court for each county or of a court of the Supreme Bench of Baltimore City, register of wills, and sheriff.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Commission Meetings."> <paragraph num="A."> <text>General.</text> <paragraph num="(1)"> <text>The Commission shall meet at the call of the Chairman or a majority of its members.</text> </paragraph> <paragraph num="(2)"> <text>A quorum consists of three or more members.</text> </paragraph> <paragraph num="(3)"> <text>An affirmative vote of at least three members shall be necessary for any action of the Commission.</text> </paragraph> <paragraph num="(4)"> <text>The Commission shall establish its meeting agenda, and times of special orders for appearances shall be taken promptly as scheduled unless otherwise agreed upon by a majority of the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Except as set forth in §§C and D of this regulation, the Commission shall meet in open session in accordance with the provisions of the Open Meetings Law, General Provisions Article, Title 3, Annotated Code of Maryland. The Commission shall provide notice of its meetings and take and maintain minutes of its meetings in accordance with General Provisions Article, §§3-302 and 3-306, Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>In addition to the exemptions to the open meetings requirement set forth in General Provisions Article, §3-305, Annotated Code of Maryland, the Commission may meet in closed session to consider an advisory opinion request under COMAR 19A.01.02 to the extent that consideration of the request would necessarily lead to identification of the subject of the request, and where the subject has not waived the right to protection of his identity afforded by General Provisions Article, §5-303, Annotated Code of Maryland.</text> </paragraph> <paragraph num="D."> <text>In addition to the provision of §C of this regulation, the Commission shall meet in closed session whenever it is considering a complaint being processed in accordance with COMAR 19A.01.03, until a final Commission determination is made regarding disposition of the complaint.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Information Provisions."> <paragraph num="A."> <text>Except as set forth in §§C—E, of this regulation, records of the Commission shall be maintained and made available for public inspection and copying in accordance with the provisions of the Maryland Public Information Law, General Provisions Article, §§4-101—4-601, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>The records of the Commission shall be maintained at the Commission’s offices. The Commission’s normal business hours are Monday through Friday (except State holidays), 8:00 a.m. to 4:30 p.m., and hours for public inspection and copying of records are 9:00 a.m. to 3:00 p.m. on normal business days.</text> </paragraph> <paragraph num="C."> <text>Commission records pertaining to advisory opinion requests and informal advice considered in accordance with COMAR 19A.01.02 may not be disclosed, to the extent that they include facts, discussion, or other material that would reveal the identity of the person who is the subject of the opinion, and the subject of the opinion has not waived the right to protection of the subject’s identity. Advisory opinion request and informal advice records shall be treated as set forth in General Provisions Article, Subtitle 3, Annotated Code of Maryland.</text> </paragraph> <paragraph num="D."> <text>All Commission records pertaining to a complaint considered in accordance with COMAR 19A.01.03 shall be treated confidentially and not disclosed to any person except as set forth in General Provisions Article, §5-407, Annotated Code of Maryland, and COMAR 19A.01.03.02B. Investigatory records pertaining to preliminary inquiries initiated by the Commission pursuant to COMAR 19A.01.03.03 are privileged and shall also be treated confidentially.</text> </paragraph> <paragraph num="E."> <text>Except as set forth in §§F and G of this regulation, financial disclosure statements filed by officials and candidates for office as State officials pursuant to General Provisions Article, Title 5, Subtitle 6, Annotated Code of Maryland, may be examined by the public only in person at the Commission’s offices as set forth in §B of this regulation. Any person examining these statements shall record his name, home address, and the name of the person whose disclosure is examined or copied. This record of examination shall be forwarded upon request to the person whose disclosure statement was so examined and copied.</text> </paragraph> <paragraph num="F."> <text>The Commission will not provide public access to a portion of a statement that is filed after January 1, 2019 that includes an individual’s principal home address, designated second home address, or both, that is identified by the individual as the individual’s home address.</text> </paragraph> <paragraph num="G."> <text>The Commission will not provide public access to information related to consideration received that is reported under General Provisions Article, §5-607(j), Annotated Code of Maryland.</text> </paragraph> <paragraph num="H."> <text>Subject to §F of this regulation, for statements filed on or after January 1, 2019, the Commission will make freely available to the public on the Internet, through an online registration program, a financial disclosure statement filed pursuant to General Provisions Article §5-601(a) and a preliminary disclosure that is filed pursuant to General Provisions Article §5-602(c) that is filed by a State official, a candidate for office as a State official, or a Secretary of a principal department of the Executive Branch.</text> </paragraph> <paragraph num="I."> <text>Except to confirm or deny the existence of a document or to disclose the name and limited identifying information, Commission staff will not disclose over the telephone any information contained in financial disclosure statements filed pursuant to General Provisions Article, Title 5, Subtitle 6, Annotated Code of Maryland.</text> </paragraph> <paragraph num="J."> <text>Copying Fees.</text> <paragraph num="(1)"> <text>Photocopies of nonpublished Commission records made available in accordance with this regulation shall be provided by Commission staff for a copying fee of 20 cents per page for the first 200 pages, and 20 cents per page and $3.50 per hour for any pages over 200.</text> </paragraph> <paragraph num="(2)"> <text>For records other than photocopies, such as magnetic tapes and disks, the charge for supplying the record will be determined on a case-by-case basis at actual cost.</text> </paragraph> <paragraph num="(3)"> <text>Before copying a record, the custodian shall estimate the cost of reproduction and either obtain the agreement of the applicant to pay the cost or demand prepayment of any estimated fee before reproducing the record.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§5-206 and 5-606, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 20, 1981 (8:6 Md. R. 562)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective January 20, 1992 (19:1 Md. R. 34)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective March 29, 1982 (9:6 Md. R. 615); January 20, 1992 (19:1 Md. R. 34); December 7, 2017 (44:24 Md R. 1151); February 7, 2022 (49:3 Md. R. 138)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02K amended effective January 16, 2017 (44:1 Md. R. 12); July 17, 2017 (44:14 Md. R. 656)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02M amended effective January 16, 2017 (44:1 Md. R. 12)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02M, N amended effective November 23, 2017 (44:23 Md. R. 1079)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02W amended effective August 8, 2011 (38:16 Md. R. 946)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective January 20, 1992 (19:1 Md. R. 34)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective January 16, 2017 (44:1 Md. R. 12); November 19, 2018 (45:23 Md. R. 1071); February 7, 2022 (49:3 Md. R. 138)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04A, B, and G amended effective January 20, 1992 (19:1 Md. R. 34)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04B amended effective August 8, 2011 (38:16 Md. R. 946)</annotation> </annotations> </chapter> <chapter num="02" heading="Advisory Opinions"> <regulation prefix="Regulation" num=".01" heading="Application."> <paragraph num="A."> <text>The advisory opinion provisions of this chapter apply to officials and employees of State government, including:</text> <paragraph num="(1)"> <text>Officials and employees in the Executive Branch and all employees of the Legislative and Judicial Branches;</text> </paragraph> <paragraph num="(2)"> <text>Members of the General Assembly as to matters concerning the application to them of the financial disclosure provisions of General Provisions Article, Title 5, Subtitle 6, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(3)"> <text>Local personnel in State offices covered by the Public Ethics Law.</text> </paragraph> </paragraph> <paragraph num="B."> <text>These procedures also apply to:</text> <paragraph num="(1)"> <text>Candidates for office as elected State officials; and</text> </paragraph> <paragraph num="(2)"> <text>Persons subject to the lobbying disclosure provisions of General Provisions Article, Title 5, Subtitle 7, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Advisory opinion procedures may also be applied, when appropriate at the Commission's discretion, to provide advice or interpretation regarding exemption requests or other aspects of the local government provisions of General Provisions Article, Title 5, Subtitle 8, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Who May Request."> <paragraph num="A."> <text>Any official or employee or other person identified in Regulation .01 may request an advisory opinion concerning application to the requester of the provisions of the Public Ethics Law, or, as to members of the General Assembly, General Provisions Article, Title 5, Subtitle 6, Annotated Code of Maryland. The Commission shall accept and process these advisory opinion requests in accordance with the procedures set forth in this chapter.</text> </paragraph> <paragraph num="B."> <text>Advisory opinions may be requested by an official or employee of the State as to matters covered by the Public Ethics Law concerning another official or employee under the requester’s supervision. These requests shall be accepted and processed by the Commission in accordance with this chapter.</text> </paragraph> <paragraph num="C."> <text>Any other person may request an advisory opinion as to subject matters or individuals subject to the Public Ethics Law and the Commission's jurisdiction as set forth in Regulation .01 of this chapter. These requests may be considered by the Commission in its discretion as deemed appropriate.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Relationship to Investigatory Process."> <text>It shall be the general practice of the Commission to consider advisory opinion requests dealing with nonspeculative fact situations and to render opinions having prospective application. If an opinion request requires consideration of past behavior or events, the Commission may consider the request in the context of a preliminary inquiry pursuant to COMAR 19A.01.03.03.</text> </regulation> <regulation prefix="Regulation" num=".04" heading="Form."> <text>All requests for advisory opinions shall be in writing addressed to the State Ethics Commission at the Commission’s offices. The request shall include the signature, address, and telephone number of the requestor and shall set forth the facts and circumstances giving rise to the request.</text> </regulation> <regulation prefix="Regulation" num=".05" heading="Review Procedures."> <paragraph num="A."> <text>Each advisory opinion request accepted for processing pursuant to Regulation .02 of this chapter shall be acknowledged by the Commission staff. The acknowledgement shall set forth the right of the subject to protection of his identity pursuant to General Provisions Article, §5-303, Annotated Code of Maryland, and also the right of any person to be represented by counsel in connection with any aspect of the advisory opinion review process. When the request is from a person other than the official or employee whose conduct is the subject of the request, the person who is the subject of the request shall, if his identity is ascertainable, be provided with a copy of the request and the acknowledgement letter.</text> </paragraph> <paragraph num="B."> <text>Informal Advice.</text> <paragraph num="(1)"> <text>When an advisory opinion request presents facts and raises issues that have been addressed in a previously issued opinion of the Commission, the Commission staff may transmit the prior opinion as an expedited informal response to the opinion request.</text> </paragraph> <paragraph num="(2)"> <text>If the person who receives an informal response pursuant to §B(1) of this regulation believes that facts or law peculiar to the request are contrary to the existing opinion, then further formal or informal review by the Commission may be requested.</text> </paragraph> <paragraph num="(3)"> <text>When formal review is requested pursuant to §B(2) of this regulation, the Commission may, based on the available information:</text> <paragraph num="(a)"> <text>Schedule the request for review as set forth in §§C—E of this regulation, and Regulation .06; or</text> </paragraph> <paragraph num="(b)"> <text>Concur in the staff advice.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>If the staff advice provided pursuant to §B(1) of this regulation is affirmed, then it, with the prior opinion, shall be the final opinion of the Commission.</text> </paragraph> <paragraph num="(5)"> <text>The Commission may also provide informal advice when there is no prior staff advice or, when, based on the facts of the particular situation, formal advice is not required.</text> </paragraph> <paragraph num="(6)"> <text>When an informal determination is made, the procedures set forth in §§C—E of this regulation and Regulation .06 do not apply.</text> </paragraph> <paragraph num="(7)"> <text>Materials and documents relating to informal advice shall be treated as advisory opinion materials for purposes of the information provisions set forth in COMAR 19A.01.01.04.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Commission staff shall review the information set forth in the request and obtain other reasonably obtainable facts which allow the Commission to evaluate the conduct or activity in relation to the substantive provisions of the Public Ethics Law.</text> </paragraph> <paragraph num="D."> <text>Advisory opinion requests shall be considered by the Commission at a meeting conducted in accordance with COMAR 19A.01.01.03. The person whose conduct is the subject of the request shall appear at the Commission meeting considering the request unless their attendance is determined not to be necessary to resolution of the issue, and may be represented by legal counsel in connection with the appearance. The Commission may also request the attendance of the requestor or of any other person who can provide information relevant to its determination.</text> </paragraph> <paragraph num="E."> <text>Any person directly involved in the advisory opinion request may be represented by counsel at any and all stages of the proceeding.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Issuance of Opinion."> <paragraph num="A."> <text>Advice in response to an opinion request shall be provided within 60 days of receipt of the request (or more promptly if circumstances require it). Each opinion shall be committed to writing and be dated, and shall contain the names of all members of the Commission present at the meeting at which the opinion request was decided and who subscribed to the opinion. The name of any dissenter to an opinion shall be separately noted. Each advisory opinion shall be written, to the extent possible, so as to prevent disclosure of the identity of the subject of the opinion.</text> </paragraph> <paragraph num="B."> <text>Advisory opinions shall be filed with the Division of State Documents for publication in the Maryland Register, and mailed to the requestor, the subject, and to other interested persons, as determined in the discretion of the Commission or the Executive Director of the Commission.</text> </paragraph> <paragraph num="C."> <text>The opinion rendered is binding on the Commission in any subsequent investigation or complaint proceeding concerning the officer or employee or other person who sought the opinion or who was the subject of the opinion and who acted in reliance on it in good faith, unless material facts were omitted or mis-stated by the person in the request for an advisory opinion or in statements made to the Commission concerning the situation under advisement.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, Title 5, Subtitle 3, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 20, 1981 (8:6 Md. R. 562)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective January 20, 1992 (19:1 Md. R. 34)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02A, B amended effective January 16, 2017 (44:1 Md. R. 12)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective January 20, 1992 (19:1 Md. R. 34); August 8, 2011 (38:16 Md. R. 946)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05B amended effective January 16, 2017 (44:1 Md. R. 12)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05B and D amended effective January 20, 1992 (19:1 Md. R. 34)</annotation> </annotations> </chapter> <chapter num="03" heading="Enforcement Procedures"> <regulation prefix="Regulation" num=".01" heading="Application."> <text>The enforcement provisions of this chapter apply to alleged violations of the Public Ethics Law by any:</text> <paragraph num="A."> <text>Official or employee of the Executive Branch;</text> </paragraph> <paragraph num="B."> <text>Public official or employee of the Legislative or Judicial Branch;</text> </paragraph> <paragraph num="C."> <text>Member of the General Assembly as to matters concerning the financial disclosure requirements of General Provisions Article, Title 5, Subtitle 6, Annotated Code of Maryland;</text> </paragraph> <paragraph num="D."> <text>Person or entity subject to the lobbying provisions of General Provisions Article, Title 5, Subtitle 7, Annotated Code of Maryland;</text> </paragraph> <paragraph num="E."> <text>Candidate for office as a State official, who is required to file financial disclosure pursuant to General Provisions Article, Title 5, Subtitle 6, Annotated Code of Maryland;</text> </paragraph> <paragraph num="F."> <text>Constitutional officer-elect in an executive agency;</text> </paragraph> <paragraph num="G."> <text>Former employee subject to General Provisions Article, §5-504, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="H."> <text>Other person or entity identified by State law.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="General Provisions."> <paragraph num="A."> <text>Definitions.</text> <paragraph num="(1)"> <text>“Hearing” means a hearing conducted by the Commission pursuant to General Provisions Article, §5-404, and the Administrative Procedure Act, State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>“Party” includes only the respondent and the staff counsel or other counsel designated by the Commission.</text> </paragraph> <paragraph num="(3)"> <text>Preliminary Inquiry.</text> <paragraph num="(a)"> <text>“Preliminary inquiry” means the process by which a matter may be presented to the Commission for preliminary review to determine whether the matter should be processed as a complaint in accordance with General Provisions Article, §5-401, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(b)"> <text>“Preliminary inquiry” includes:</text> <paragraph num="(i)"> <text>Investigation and review of the matter by Commission staff or other individual designated by the Commission; and</text> </paragraph> <paragraph num="(ii)"> <text>Consideration of the matter by the Commission.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>“Preliminary investigation” means the investigation conducted by the staff counsel or other investigator identified by the Commission, after a complaint has been accepted or issued and been referred by the Commission pursuant to General Provisions Article, §5-403, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(5)"> <text>“Respondent” includes, when appropriate to the context of this chapter, counsel speaking or acting on the respondent's behalf in connection with an enforcement matter subject to this chapter.</text> </paragraph> <paragraph num="(6)"> <text>“Staff counsel” includes, when appropriate to the context of this chapter, any other person designated by the Commission to perform the functions of the staff counsel in accordance with this chapter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Confidentiality.</text> <paragraph num="(1)"> <text>General Rules.</text> <paragraph num="(a)"> <text>Except as set forth in §B(2)—(4) of this regulation, during the pendency of any preliminary inquiry by Commission staff pursuant to Regulation .03 of this chapter or following the filing of a complaint, the proceedings, meetings, and activities of the Commission and its employees in connection with the complaint shall be conducted in a confidential manner.</text> </paragraph> <paragraph num="(b)"> <text>Except as set forth in §B(2)—(4) of this regulation, the Commission, its staff, the complainant, and the respondent may not disclose any information relating to the complaint, including the identity of the complainant and the respondent.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Exceptions.</text> <paragraph num="(a)"> <text>The Commission may release information at any time if the respondent has agreed in writing to the release.</text> </paragraph> <paragraph num="(b)"> <text>The identity of the complainant shall be disclosed to the respondent at any time in response to a written request from the respondent.</text> </paragraph> <paragraph num="(c)"> <text>Information may be disclosed by the Commission or the Commission's staff as necessary to conduct a preliminary inquiry, investigation, or hearing, or to issue subpoenas at the request of the respondent pursuant to General Provisions Article, §5-404, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(d)"> <text>Confidentiality does not apply to referral or release of information to a prosecuting authority pursuant to General Provisions Article, §5-408, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(e)"> <text>Confidentiality may be waived by the respondent, and information disclosed accordingly as part of a cure, settlement, or other prehearing resolution of an enforcement proceeding pursuant to Regulation .08 of this chapter.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Information Provided to a Complainant.</text> <paragraph num="(a)"> <text>A complainant shall be provided information regarding the status of an enforcement matter as set forth in §B(3)(b) and (c) of this regulation.</text> </paragraph> <paragraph num="(b)"> <text>The staff counsel shall notify the complainant that evidence is being referred to the Commission for preliminary disposition, at least 15 days before referring the evidence to the Commission.</text> </paragraph> <paragraph num="(c)"> <text>The complainant shall be provided with a copy of a signed order of the Commission dismissing a complaint if after:</text> <paragraph num="(i)"> <text>Preliminary consideration of the evidence, it is determined that the evidence does not merit further proceedings and that dismissal is not contrary to the purposes of General Provisions Article, Title 5, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(ii)"> <text>Consideration of the evidence at a hearing, it is determined that the respondent has not violated any of the provisions of General Provisions Article, Title 5, Annotated Code of Maryland.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>Confidentiality after Hearing.</text> <paragraph num="(a)"> <text>The confidentiality requirements apply, as set forth in §B(4)(b)—(c) of this regulation, to written reports setting forth findings of fact and conclusions of law required after a hearing by General Provisions Article, §5-405, Annotated Code of Maryland, and Regulation .11 of this chapter.</text> </paragraph> <paragraph num="(b)"> <text>When there is a finding that there was no violation of General Provisions Article, Title 5, Annotated Code of Maryland, the requirements of §B(1) of this regulation apply, and there may not be disclosure of information.</text> </paragraph> <paragraph num="(c)"> <text>When there is a finding of violation as to any allegation of the complaint, the written report of the Commission shall be a public record.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Subpoena Powers and Oaths.</text> <paragraph num="(1)"> <text>The staff counsel of the Commission may:</text> <paragraph num="(a)"> <text>Administer oaths and affirmations; and</text> </paragraph> <paragraph num="(b)"> <text>Subject to the supervision of the Executive Director, issue subpoenas to compel the attendance and testimony of witnesses or for the production of books, papers, records, documents, or other tangible objects.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Commission may:</text> <paragraph num="(a)"> <text>On its own or through its designee, administer oaths and affirmations; and</text> </paragraph> <paragraph num="(b)"> <text>On its own motion, issue subpoenas to compel the attendance and testimony of witnesses or for the production of books, papers, records, documents, or other tangible objects.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The respondent may, as set forth in §C(4)—(6) of this regulation, use the subpoena power of the Commission in preparation for any hearing to be held in accordance with this chapter.</text> </paragraph> <paragraph num="(4)"> <text>Respondent subpoenas pursuant to §C(3) of this regulation shall be issued only in response to a written request by or on behalf of the respondent received by the Commission not later than 10 working days before the date set for the hearing.</text> </paragraph> <paragraph num="(5)"> <text>Respondent subpoenas pursuant to §C(3) of this regulation may be issued by the Commission or by the Commission Chairman acting on behalf of the Commission.</text> </paragraph> <paragraph num="(6)"> <text>Service and enforcement of any respondent subpoena issued pursuant to §C(3) of this regulation is the responsibility of the respondent or other person acting on respondent's behalf, not of the Commission or its staff.</text> </paragraph> <paragraph num="(7)"> <text>Subpoenas issued pursuant to this section and General Provisions Article, §§5-207 and 5-404, Annotated Code of Maryland, are judicially enforceable.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Referral.</text> <paragraph num="(1)"> <text>If, while an enforcement matter is being considered, it is determined that there are reasonable grounds to believe that the respondent may have committed a criminal offense, the Commission or the Commission's staff, upon direction from the Commission or the Chairman, shall refer the matter:</text> <paragraph num="(a)"> <text>Promptly to an appropriate prosecuting authority for an evaluation of whether criminal prosecution is appropriate; or</text> </paragraph> <paragraph num="(b)"> <text>Directly to the appropriate prosecuting authority for prosecution.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>When an enforcement matter is referred to a prosecuting authority for evaluation or prosecution, the Commission may suspend action by the Commission or the Commission's staff on the matter pending completion of action by the prosecuting authority.</text> </paragraph> <paragraph num="(3)"> <text>When an enforcement matter is referred to a prosecuting authority for evaluation or prosecution, the Commission shall make available to the prosecuting authority all pertinent evidence under the Commission's control.</text> </paragraph> <paragraph num="(4)"> <text>Commission staff may consult with a prosecuting authority in connection with the possible referral of a matter.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Counsel. The respondent in an enforcement matter conducted pursuant to this chapter is entitled to be represented by counsel for any purpose, including:</text> <paragraph num="(1)"> <text>Representation in connection with interviews of the respondent by the staff counsel;</text> </paragraph> <paragraph num="(2)"> <text>Submission of any written or other materials on respondent's behalf in connection with the investigation; and</text> </paragraph> <paragraph num="(3)"> <text>Personal appearance on respondent's behalf at any stage of the matter where respondent's appearance before the Commission is permitted or required.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Service.</text> <paragraph num="(1)"> <text>Except as set forth in §F(2) of this regulation, service of any document required to be served by this chapter shall be by regular mail, postage prepaid, to the respondent or other addressee at their last known address.</text> </paragraph> <paragraph num="(2)"> <text>Instead of service by mail, the hearing notice may be served by:</text> <paragraph num="(a)"> <text>Personal service by an individual over 18 years old, as evidenced by an affidavit of personal service;</text> </paragraph> <paragraph num="(b)"> <text>Service by the Sheriff of the county of the addressee; or</text> </paragraph> <paragraph num="(c)"> <text>Registered or certified mail, restricted delivery, return receipt requested.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If required service is to a person represented by an attorney, mail or delivery to the attorney's last known business address is considered satisfactory service.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Appointment of Interpreter. If a party or witness cannot readily hear, speak, understand, or communicate the spoken English language, the Commission may, of its own volition, or shall, upon written application of the party or witness, appoint a qualified interpreter to provide assistance during the hearing.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Preliminary Inquiry."> <paragraph num="A."> <text>The Commission may consider as a preliminary inquiry any matter that:</text> <paragraph num="(1)"> <text>Arises from any source, including the consideration of an advisory opinion;</text> </paragraph> <paragraph num="(2)"> <text>Involves past or ongoing conduct; and</text> </paragraph> <paragraph num="(3)"> <text>Presents a possible violation of General Provisions Article, Title 5, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The staff counsel shall, upon the direction of the Commission:</text> <paragraph num="(1)"> <text>Collect and review information pertaining to a preliminary inquiry; and</text> </paragraph> <paragraph num="(2)"> <text>Present this information to the Commission for its consideration.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Commission may close a preliminary inquiry without issuing a complaint if the Commission determines that:</text> <paragraph num="(1)"> <text>The matter is not within the jurisdiction of the Commission;</text> </paragraph> <paragraph num="(2)"> <text>The information presented does not support the filing of a complaint; or</text> </paragraph> <paragraph num="(3)"> <text>Based on all the circumstances presented, further enforcement proceedings would not serve the purposes of General Provisions Article, Title 5, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A preliminary inquiry may also be closed by:</text> <paragraph num="(1)"> <text>Docketing the matter for consideration as an advisory opinion pursuant to COMAR 19A.01.02;</text> </paragraph> <paragraph num="(2)"> <text>Letter or other informal advice; or</text> </paragraph> <paragraph num="(3)"> <text>Other resolution agreed to by the subject.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Complaints."> <paragraph num="A."> <text>Complaints from a Person.</text> <paragraph num="(1)"> <text>A person may file a complaint with the Commission.</text> </paragraph> <paragraph num="(2)"> <text>A complaint filed by a person pursuant to this section shall:</text> <paragraph num="(a)"> <text>Be written, signed, and under oath;</text> </paragraph> <paragraph num="(b)"> <text>Allege a violation of General Provisions Article, Title 5, Annotated Code of Maryland, by an official, employee, or any other person subject to the jurisdiction of the Commission as set forth in Regulation .01 of this chapter; and</text> </paragraph> <paragraph num="(c)"> <text>Contain sufficient facts to permit a preliminary investigation to be undertaken.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Commission shall accept for further proceedings any complaint filed by a person pursuant to this section unless the complaint:</text> <paragraph num="(a)"> <text>Is plainly frivolous; or</text> </paragraph> <paragraph num="(b)"> <text>Does not comply with the requirements of this section.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Complaints by the Commission.</text> <paragraph num="(1)"> <text>The Commission may issue a complaint on its own motion.</text> </paragraph> <paragraph num="(2)"> <text>The Commission may issue a complaint pursuant to this section when:</text> <paragraph num="(a)"> <text>A preliminary inquiry pursuant to Regulation .03 of this chapter results in sufficient evidence to believe a violation of General Provisions Article, Title 5, Annotated Code of Maryland, may have occurred; or</text> </paragraph> <paragraph num="(b)"> <text>Informal review in connection with an advisory opinion request under COMAR 19A.01.02 discloses information suggesting that past or continuing conduct of an official, employee, or other person subject to General Provisions Article, Title 5, may constitute a violation of General Provisions Article, Title 5.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A Commission complaint shall be:</text> <paragraph num="(a)"> <text>Signed on the Commission's behalf by the Chairman or another member as authorized by the Commission;</text> </paragraph> <paragraph num="(b)"> <text>Otherwise in the same format as a complaint from any other person as set forth in §A(2) of this regulation; and</text> </paragraph> <paragraph num="(c)"> <text>Issued pursuant to action by the Commission taken consistent with the procedures set forth in COMAR 19A.01.01.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Amended Complaints.</text> <paragraph num="(1)"> <text>Consistent with the requirements of §B of this regulation, the Commission may on its own motion issue an amended complaint in any complaint either accepted or issued pursuant to §A or B of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>An amended complaint may be issued based on additional information submitted by a complainant or on information available to the Commission as a result of a preliminary investigation and review as set forth in Regulations .05 and .06 of this chapter, and may either:</text> <paragraph num="(a)"> <text>Add or delete allegations as justified by the information; or</text> </paragraph> <paragraph num="(b)"> <text>Clarify the allegations of the original complaint.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>An amended complaint is subject to the same investigatory, review, and notice procedures as the original complaint.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A copy of any complaint or amended complaint accepted or issued by the Commission pursuant to §§A—C of this regulation shall be served on the respondent as set forth in Regulation .02F of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Preliminary Staff Investigation and Review."> <paragraph num="A."> <text>Complaints issued by the Commission or filed and accepted by the Commission pursuant to Regulation .04 of this chapter shall be referred to the staff counsel.</text> </paragraph> <paragraph num="B."> <text>Collection of Evidence.</text> <paragraph num="(1)"> <text>The staff counsel shall collect evidence relating to the allegations of the complaint.</text> </paragraph> <paragraph num="(2)"> <text>Evidence may be collected by personal interview, interrogatory, deposition, review of documents, or any other usual investigatory method.</text> </paragraph> <paragraph num="(3)"> <text>In the collection of evidence pursuant to this section, the subpoena power of Regulation .01C(1) of this chapter may be relied upon to compel the attendance and testimony of witnesses and the production of books, papers, records, documents, or other tangible objects.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Notification and Respondent Action.</text> <paragraph num="(1)"> <text>The staff counsel shall notify the complainant and the respondent of the anticipated presentation of the evidence to the Commission at least 15 days before presenting the evidence to the Commission.</text> </paragraph> <paragraph num="(2)"> <text>The respondent may take action to cure all alleged violations within 15 days of receipt of the notification provided in accordance with §C(1) of this regulation, and advise the staff counsel of this action.</text> </paragraph> <paragraph num="(3)"> <text>In response to the notification of §C(1) of this regulation, the respondent may also submit materials or other proposed resolution for consideration by or negotiation with the staff counsel.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Staff Counsel Preliminary Report.</text> <paragraph num="(1)"> <text>The staff counsel shall provide the Commission with a preliminary report including all evidence collected relating to the allegations of the complaint.</text> </paragraph> <paragraph num="(2)"> <text>The preliminary report to the Commission shall include any evidence of cure action taken by the respondent, any resolution of the complaint proposed by the respondent, and any other agreement or proposed resolution of the complaint agreed to by respondent and staff counsel.</text> </paragraph> <paragraph num="(3)"> <text>The preliminary report may include a recommended disposition.</text> </paragraph> <paragraph num="(4)"> <text>A proposed disposition or proposed resolution agreed to by staff counsel and the respondent is a recommendation only, and may not be binding on the Commission.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Commission Preliminary Consideration."> <paragraph num="A."> <text>The Commission shall consider the preliminary report submitted by the staff counsel pursuant to Regulation .05 of this chapter.</text> </paragraph> <paragraph num="B."> <text>The Commission shall dismiss the complaint if it determines that:</text> <paragraph num="(1)"> <text>The report contains evidence of a cure of all violations, and dismissal would not be contrary to the purposes of General Provisions Article, Title 5, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(2)"> <text>The evidence does not raise sufficient likelihood of a violation of General Provisions Article, Title 5, Annotated Code of Maryland, to merit further proceedings; or</text> </paragraph> <paragraph num="(3)"> <text>A proposed resolution agreed to by the staff counsel and the respondent is accepted and supports a conclusion that the matter does not merit further proceedings.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Dismissal of a complaint pursuant to §B of this regulation shall be:</text> <paragraph num="(1)"> <text>By written order signed by the Chairman or other designated member on behalf of the Commission; and</text> </paragraph> <paragraph num="(2)"> <text>Served on the respondent as set forth in Regulation .02F of this chapter.</text> </paragraph> </paragraph> <paragraph num="D."> <text>If a complaint filed by a person other than the Commission is dismissed pursuant to §B of this regulation, the complainant shall be advised of the fact of the dismissal.</text> </paragraph> <paragraph num="E."> <text>If, after preliminary consideration by the Commission, a complaint is not dismissed pursuant to §B of this regulation, the Commission shall issue a hearing notice as set forth in Regulation .07 of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Hearing Notice."> <paragraph num="A."> <text>When a complaint is not dismissed by preliminary Commission determination, a hearing shall be scheduled and a hearing notice shall be issued by the Chairman or other designated member acting on the Commission's behalf.</text> </paragraph> <paragraph num="B."> <text>A hearing notice shall include a:</text> <paragraph num="(1)"> <text>Statement of the time, place, and nature of the hearing;</text> </paragraph> <paragraph num="(2)"> <text>Statement of the legal authority and jurisdiction under which the hearing is to be held;</text> </paragraph> <paragraph num="(3)"> <text>Reference to the relevant sections of the statutes, regulations, and rules of procedure involved;</text> </paragraph> <paragraph num="(4)"> <text>Short and simple statement of the matters asserted;</text> </paragraph> <paragraph num="(5)"> <text>Statement that failure to appear for the scheduled hearing may result in adverse action against the respondent;</text> </paragraph> <paragraph num="(6)"> <text>Statement that the respondent may agree to the evidence and waive the right to appear at the hearing; and</text> </paragraph> <paragraph num="(7)"> <text>Statement of the respondent's right to:</text> <paragraph num="(a)"> <text>Call witnesses and submit documents or other evidence as provided in Regulation .10 of this chapter,</text> </paragraph> <paragraph num="(b)"> <text>Use the subpoena power of the Commission as set forth in Regulation .02C of this chapter,</text> </paragraph> <paragraph num="(c)"> <text>Receive a copy of the Commission's enforcement procedures found in this chapter if not otherwise provided, and</text> </paragraph> <paragraph num="(d)"> <text>Be represented by counsel in the hearing.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>If, in a hearing notice issued pursuant to §B of this regulation, the Commission is unable to state the matters in detail at the time the hearing notice is served, the initial notice may be limited to a statement of issues involved. Thereafter, upon application, a more definite and detailed statement shall be furnished.</text> </paragraph> <paragraph num="D."> <text>A hearing notice issued pursuant to §A of this regulation shall be served on the respondent as set forth in Regulation .02F of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Settlements."> <paragraph num="A."> <text>At any time after a matter is initiated and before a final determination by the Commission, the staff counsel and respondent may develop a proposed settlement of the matter.</text> </paragraph> <paragraph num="B."> <text>A proposed settlement may:</text> <paragraph num="(1)"> <text>Be based on admissions or stipulations of fact or law;</text> </paragraph> <paragraph num="(2)"> <text>Recite actions taken or agreed to be taken by the parties;</text> </paragraph> <paragraph num="(3)"> <text>Include any sanction, penalty, or action agreed to be imposed or taken as a result of Commission acceptance of the proposed settlement; and</text> </paragraph> <paragraph num="(4)"> <text>Include any other provisions allowable by law that would define the framework for resolution of the matter.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A proposed settlement shall be in writing, agreed to by the staff counsel and the respondent, and may be by:</text> <paragraph num="(1)"> <text>Stipulation;</text> </paragraph> <paragraph num="(2)"> <text>Consent order;</text> </paragraph> <paragraph num="(3)"> <text>Waiver of hearing;</text> </paragraph> <paragraph num="(4)"> <text>Settlement agreement; or</text> </paragraph> <paragraph num="(5)"> <text>Other appropriate format.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A proposed settlement agreed to by the staff counsel and the respondent shall be presented to the Commission for consideration by joint motion of the parties and may be the basis for a joint request for postponement of a scheduled hearing on the complaint.</text> </paragraph> <paragraph num="E."> <text>Commission Action.</text> <paragraph num="(1)"> <text>The Commission may not be bound by a proposed settlement or other resolution reached by the staff counsel and the respondent, and may accept or reject the proposed resolution as the purposes of the Ethics Law may require.</text> </paragraph> <paragraph num="(2)"> <text>A settlement accepted by the Commission may form the basis for final action by the Commission to be reflected in a final order issued pursuant to Regulation .11 of this chapter.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Offers of settlement or compromise which are not accepted by the Commission may not be made a part of the case record or otherwise admitted into evidence in the hearing.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Prehearing Process."> <paragraph num="A."> <text>Discovery and Disclosure.</text> <paragraph num="(1)"> <text>The respondent has the right to inspect and to copy any document that is accessible under the Maryland Public Information Act, General Provisions Article, §§4-101—4-601, Annotated Code of Maryland, as set forth in COMAR 19A.01.01.04.</text> </paragraph> <paragraph num="(2)"> <text>If a prehearing conference is not held, the respondent and the staff counsel shall submit to the general counsel, at least 10 working days before the scheduled date of the hearing:</text> <paragraph num="(a)"> <text>A proposed list of their witnesses and possible documentary evidence to be introduced at the hearing; and</text> </paragraph> <paragraph num="(b)"> <text>An estimate of the anticipated length of the presentation of their case.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Chairman may prohibit the introduction of documentary or testimonial evidence not disclosed before the hearing as provided in §A(2) of this regulation.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Prehearing Conferences.</text> <paragraph num="(1)"> <text>In its discretion, the Commission may direct the Chairman or another designated member to conduct a prehearing conference in any matter scheduled for a hearing pursuant to Regulation .07 of this chapter, either on the initiative of the Commission or at the request of the staff counsel or the respondent.</text> </paragraph> <paragraph num="(2)"> <text>Notice shall be provided to the staff counsel and respondent of the date, time, and place of a prehearing conference called pursuant to §B(1) of this regulation, as set forth in Regulation .02F of this chapter.</text> </paragraph> <paragraph num="(3)"> <text>A prehearing conference shall be designed to simplify the hearing by resolving preliminary matters, and may address the following:</text> <paragraph num="(a)"> <text>Issuance of respondent subpoenas or other matters pertaining to discovery or disclosure;</text> </paragraph> <paragraph num="(b)"> <text>The possibility of obtaining stipulations, admissions, agreements on documents, understandings on matters already of record or judicially noticeable, or similar agreement that will avoid unnecessary proof;</text> </paragraph> <paragraph num="(c)"> <text>Identification of witnesses or documentary evidence, and consideration of limiting the number of expert witnesses or the presentation of similar cumulative evidence;</text> </paragraph> <paragraph num="(d)"> <text>The order of presentation and scheduling of the hearing;</text> </paragraph> <paragraph num="(e)"> <text>Preliminary motions presented by either party; and</text> </paragraph> <paragraph num="(f)"> <text>Other matters that will simplify or clarify the issues or otherwise promote the orderly and prompt conduct of the hearing.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The proceedings at a prehearing conference shall be recorded.</text> </paragraph> <paragraph num="(5)"> <text>The Chairman or other member may issue a prehearing order that:</text> <paragraph num="(a)"> <text>Recites the results of the preliminary conference;</text> </paragraph> <paragraph num="(b)"> <text>Includes any rulings on motions considered at the prehearing conference;</text> </paragraph> <paragraph num="(c)"> <text>Clarifies any scheduling or related issues; and</text> </paragraph> <paragraph num="(d)"> <text>Sets forth any other actions taken, or to be taken, with regard to any matter addressed at the prehearing conference.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Comments on or disagreement by the staff counsel or respondent with the prehearing order shall be filed with the Chairman or other member not later than 5 working days after service of the prehearing order. A dispute shall be ruled upon by the Chairman or other member before the hearing.</text> </paragraph> <paragraph num="(7)"> <text>A prehearing order issued pursuant to §B(6) of this regulation is a part of the complaint record.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Motions.</text> <paragraph num="(1)"> <text>Except for extraordinary situations or as otherwise provided in these regulations, preliminary matters requiring a formal ruling shall be raised by motions at either the prehearing conference or at least 15 working days before the hearing.</text> </paragraph> <paragraph num="(2)"> <text>Motions shall be in writing and state briefly the relief applied for and the grounds for the motion and, when appropriate, be supported by a memorandum of points and authorities.</text> </paragraph> <paragraph num="(3)"> <text>A response to a motion shall be filed with the Commission within 10 working days after receiving the initial motion.</text> </paragraph> <paragraph num="(4)"> <text>A motion or response shall be served on the opposing party as set forth in Regulation .02F of this chapter.</text> </paragraph> <paragraph num="(5)"> <text>The Chairman may rule on the motion at any time before, during, or after the hearing.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Postponement.</text> <paragraph num="(1)"> <text>Upon request from the staff counsel or the respondent, the Chairman may grant a postponement of the hearing for good cause as set forth in this section.</text> </paragraph> <paragraph num="(2)"> <text>Requests for postponement shall be confirmed in writing, served on the opposing party as set forth in Regulation .02F of this chapter, and shall include:</text> <paragraph num="(a)"> <text>The reason for the request; and</text> </paragraph> <paragraph num="(b)"> <text>When appropriate, a list of at least three dates within the 60-day period following the day on which the hearing was originally scheduled on which the party would be available for a hearing.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Requests for postponement shall:</text> <paragraph num="(a)"> <text>Except in extraordinary circumstances or when requested in connection with a settlement proposal, be denied if made after a prehearing conference; or</text> </paragraph> <paragraph num="(b)"> <text>Be granted only if the party requesting the postponement clearly demonstrates that the request is made in good faith and that:</text> <paragraph num="(i)"> <text>Hardship will result from its denial, or</text> </paragraph> <paragraph num="(ii)"> <text>Postponement is required as part of a settlement consideration.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>Whenever feasible, a postponed hearing that is to be held shall be rescheduled within 60 days of the date the hearing was originally scheduled.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Conduct of Hearing."> <paragraph num="A."> <text>Failure to Attend Hearing, and Default.</text> <paragraph num="(1)"> <text>If after receiving proper notice a party fails to attend or participate in the hearing, the party shall be considered in default and the hearing may be conducted and the issues finally determined in the party's absence.</text> </paragraph> <paragraph num="(2)"> <text>Within 10 days after mailing of a final decision following a default, the party may file a written request that the decision be vacated, stating the reasons relied upon.</text> </paragraph> <paragraph num="(3)"> <text>The final decision may be vacated by the Commission if it is found that there is an:</text> <paragraph num="(a)"> <text>Actual controversy in the matter; and</text> </paragraph> <paragraph num="(b)"> <text>Equitable excuse for the default.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Conduct of the Hearing by the Chairman or Designee.</text> <paragraph num="(1)"> <text>A Commission hearing conducted pursuant to this chapter shall be conducted by the Chairman or another member designated by the Commission. The member so designated may exercise all powers assigned to the Chairman by this section.</text> </paragraph> <paragraph num="(2)"> <text>The Chairman shall convene the hearing and shall place the complaint, hearing notices, and other appropriate documents in the record.</text> </paragraph> <paragraph num="(3)"> <text>The Chairman has the power to:</text> <paragraph num="(a)"> <text>Conduct a fair and impartial hearing, take action to avoid unnecessary delay in the disposition of proceedings, and maintain order;</text> </paragraph> <paragraph num="(b)"> <text>Rule on offers of proof and receipt of evidence in accordance with the general principles set forth in §E of this regulation;</text> </paragraph> <paragraph num="(c)"> <text>Consider and rule upon all motions appropriate to the proceedings; and</text> </paragraph> <paragraph num="(d)"> <text>Recess the hearing for any reasonable purpose, for example:</text> <paragraph num="(i)"> <text>In response to requests of the parties,</text> </paragraph> <paragraph num="(ii)"> <text>To allow the parties to prepare final argument, or</text> </paragraph> <paragraph num="(iii)"> <text>To enable the Commission to consider action on motions or undertake preliminary consideration of the case.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Rights of Parties. Each party to the hearing has the right to:</text> <paragraph num="(1)"> <text>Present opening and closing statements;</text> </paragraph> <paragraph num="(2)"> <text>Call witnesses and present evidence;</text> </paragraph> <paragraph num="(3)"> <text>Cross-examine every witness called by the Commission or any other party;</text> </paragraph> <paragraph num="(4)"> <text>Impeach any witness regardless of which party first called the witness to testify; and</text> </paragraph> <paragraph num="(5)"> <text>Rebut all evidence presented.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Ex Parte Communications.</text> <paragraph num="(1)"> <text>The Commission staff counsel shall be responsible for presenting evidence to the Commission in connection with a complaint proceeding subject to a hearing under this regulation, and may not be part of the decisional process in connection with a complaint. The general counsel of the Commission, or other individual designated by the Commission, shall be the legal advisor to the Commission regarding complaint proceedings and in that capacity is considered to be part of the decisional process.</text> </paragraph> <paragraph num="(2)"> <text>The staff counsel, the Executive Director, respondent, respondent's counsel, and any other individual not involved in the decisional process may not communicate ex parte with any member of the Commission or with the general counsel regarding any issue of fact or law in connection with a complaint being heard pursuant to this regulation. The Commission may communicate with members of an advisory staff, including the general counsel, who participate as part of the decisional process.</text> </paragraph> <paragraph num="(3)"> <text>Ex parte communications received in violation of §D(2) of this regulation shall be placed in the record and disclosed to all parties, who shall then have 10 days within which to rebut them.</text> </paragraph> <paragraph num="(4)"> <text>The general counsel or any member of the Commission may, if he or she considers it necessary to eliminate the effect of a prohibited ex parte communication, disqualify himself or herself from further participation in the hearing.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Presentation of Evidence.</text> <paragraph num="(1)"> <text>Evidence shall be presented by the parties at the hearing consistent with terms agreed to in a prehearing conference or as set forth in any schedules previously exchanged by the parties in anticipation of the hearing, unless a deviation from the agreed upon process is expressly allowed by the Chairman.</text> </paragraph> <paragraph num="(2)"> <text>The staff counsel shall present to the Commission evidence collected in the investigation relating to the complaint that is:</text> <paragraph num="(a)"> <text>Relevant to the matters at issue as set forth in the hearing notice;</text> </paragraph> <paragraph num="(b)"> <text>Set forth in any preliminary agreement by the parties;</text> </paragraph> <paragraph num="(c)"> <text>Consistent with a prehearing order issued by the Chairman or the Chairman's designee; or</text> </paragraph> <paragraph num="(d)"> <text>Otherwise allowed by the Chairman.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The respondent may present evidence either through counsel or on the respondent's own behalf that is:</text> <paragraph num="(a)"> <text>Relevant to the matters at issue as set forth in the hearing notice;</text> </paragraph> <paragraph num="(b)"> <text>Set forth in any preliminary agreement by the parties;</text> </paragraph> <paragraph num="(c)"> <text>Consistent with a prehearing order issued by the Chairman or the Chairman's designee; or</text> </paragraph> <paragraph num="(d)"> <text>Otherwise allowed by the Chairman.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Evidence shall be received by the Commission in accordance with the following principles:</text> <paragraph num="(a)"> <text>The hearing need not be conducted according to the technical rules of evidence, and any relevant evidence, including hearsay of probative value, is admissible.</text> </paragraph> <paragraph num="(b)"> <text>Oral evidence shall be taken only on oath or affirmation.</text> </paragraph> <paragraph num="(c)"> <text>Evidence which possesses probative value commonly accepted by reasonable and prudent persons in the conduct of their affairs may be admitted and given probative value. The rules of privilege shall be given effect, and incompetent, immaterial, and unduly repetitious evidence may be excluded.</text> </paragraph> <paragraph num="(d)"> <text>Except as set forth in §E(4)(e) and (f) of this regulation, all evidence, including records and documents in the possession of the Commission, of which the Commission desires to avail itself, shall be offered and made a part of the record in the case. Other factual information or evidence may not be considered in the determination of the case. Documentary evidence may be received in the form of copies or excerpts, or by incorporation by reference.</text> </paragraph> <paragraph num="(e)"> <text>The Commission may take notice of judicially cognizable facts or general, technical, or scientific facts within their specialized knowledge, as set forth in State Government Article, §10-213, Annotated Code of Maryland. Commission members may use their experience, technical competence, and specialized knowledge in the evaluation of evidence presented to them. The parties shall be advised of any fact officially noticed pursuant to this paragraph and be given an opportunity to contest the fact.</text> </paragraph> <paragraph num="(f)"> <text>The existence of offers of settlement or compromise considered in the preliminary enforcement process are considered privileged communications and may not be admitted into evidence at the hearing.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>At the completion of the hearing the Chairman may, in the Chairman's own discretion or at the request of the parties, declare the record to be open for a specified period to enable the parties to submit written arguments or other documents that are relevant to the issues presented in the hearing.</text> </paragraph> <paragraph num="G."> <text>Hearing Record.</text> <paragraph num="(1)"> <text>Verbatim Record.</text> <paragraph num="(a)"> <text>Except as set forth in §G(1)(b) of this regulation, a verbatim record shall be taken of the entire hearing. In addition to the stenographic or recorded record of testimony in the case, a verbatim record shall include motions by the parties and rulings by the Chairman, the opening and closing arguments of the parties, and any oral decisions of the Commission that are made in the context of the hearing.</text> </paragraph> <paragraph num="(b)"> <text>Unless requested by the respondent in writing, or otherwise at the discretion of the Commission, hearings on financial disclosure complaints under General Provisions Article, Title 5, Subtitle 6, Annotated Code of Maryland, may be conducted without a verbatim record.</text> </paragraph> <paragraph num="(c)"> <text>When a verbatim record is not kept, minutes of the proceedings shall be kept which shall, at a minimum, identify the witnesses, list all exhibits, and record all rulings by the Chairman, as well as any preliminary or final Commission determination.</text> </paragraph> <paragraph num="(d)"> <text>A stenographic or recorded verbatim record, or the minutes of a hearing, need not be transcribed unless requested by a party or the Commission. The party requesting the transcript shall pay for the cost of transcription.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>An official record of the hearing shall be developed, including the following:</text> <paragraph num="(a)"> <text>All pleadings, motions, and intermediate and final rulings;</text> </paragraph> <paragraph num="(b)"> <text>Documentary evidence received or considered;</text> </paragraph> <paragraph num="(c)"> <text>Any statement of matters officially noticed;</text> </paragraph> <paragraph num="(d)"> <text>Any questions and offers of proof, objections, and rulings on them;</text> </paragraph> <paragraph num="(e)"> <text>Any proposed findings and exceptions;</text> </paragraph> <paragraph num="(f)"> <text>Any written arguments or documents submitted by a party after the hearing;</text> </paragraph> <paragraph num="(g)"> <text>Copies of testimony or minutes transcribed pursuant to §G(1)(c) of this regulation;</text> </paragraph> <paragraph num="(h)"> <text>The decision of the Commission issued pursuant to Regulation .11 of this chapter; and</text> </paragraph> <paragraph num="(i)"> <text>Any memoranda of ex parte communications submitted pursuant to §D of this regulation.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Commission Decision."> <paragraph num="A."> <text>A Commission decision following a hearing shall be:</text> <paragraph num="(1)"> <text>Made in accordance with its regular procedures as set forth in COMAR 19A.01.01; and</text> </paragraph> <paragraph num="(2)"> <text>Based on a preponderance of the evidence presented at the hearing as set forth in Regulation .10E of this chapter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If, after a hearing, the Commission finds that a respondent has violated General Provisions Article, Title 5, Annotated Code of Maryland, the Commission shall issue a written report that:</text> <paragraph num="(1)"> <text>Includes findings of facts and conclusions of law for each of the violations alleged in the hearing notice; and</text> </paragraph> <paragraph num="(2)"> <text>Disposes of all disputed issues referenced in the hearing notice.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If the Commission finds that the respondent has not violated any of the provisions of General Provisions Article, Title 5, Annotated Code of Maryland, as alleged in the hearing notice, the Commission shall:</text> <paragraph num="(1)"> <text>Issue an order dismissing the complaint; and</text> </paragraph> <paragraph num="(2)"> <text>Promptly send a copy of the order to the complainant and the respondent.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Sanctions.</text> <paragraph num="(1)"> <text>If the Commission finds that the respondent has violated any of the provisions of General Provisions Article, Title 5, Annotated Code of Maryland, the Commission may take any action authorized in General Provisions Article, §5-405 or Title 5, Subtitle 9, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>In determining the sanctions to impose in a matter involving a finding of a violation of General Provisions Article, Title 5, Subtitle 7, Annotated Code of Maryland, the Commission may consider all relevant factors, including:</text> <paragraph num="(a)"> <text>The extent to which the respondent derived financial benefit from the prohibited conduct;</text> </paragraph> <paragraph num="(b)"> <text>The willfulness of the prohibited conduct;</text> </paragraph> <paragraph num="(c)"> <text>Any history of violations of the Public Ethics Law by the respondent;</text> </paragraph> <paragraph num="(d)"> <text>The severity of the violation;</text> </paragraph> <paragraph num="(e)"> <text>The cost of investigating and prosecuting the case against the respondent;</text> </paragraph> <paragraph num="(f)"> <text>The necessity to protect the public interest and the integrity of the governmental process; and</text> </paragraph> <paragraph num="(g)"> <text>Any conviction of the individual regulated lobbyist of bribery, theft, or other crime involving moral turpitude based on acts arising from lobbying activities.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>If the Commission finds that the respondent has violated the financial disclosure or lobbying reporting provisions of General Provisions Article, Title 5, Subtitles 6 and 7, Annotated Code of Maryland, the Commission shall impose late fees as set forth in General Provisions Article, §5-405, Annotated Code of Maryland.</text> </paragraph> <paragraph num="F."> <text>An order issued by the Commission pursuant to this regulation shall be served on the parties as set forth in Regulation .02F of this chapter.</text> </paragraph> <paragraph num="G."> <text>A final default order issued pursuant to Regulation .10A of this chapter shall be issued as a final decision consistent with this regulation.</text> </paragraph> <paragraph num="H."> <text>The Commission may seek judicial enforcement of any order issued pursuant to this regulation, or any other relief as provided in General Provisions Article, Title 5, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Judicial Review."> <paragraph num="A."> <text>If aggrieved by a final order of the Commission, the respondent may request judicial review in accordance with the provisions of the Administrative Procedure Act, State Government Article, §10-222, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>The final order of the Commission shall be stayed automatically until the time for seeking judicial review has expired.</text> </paragraph> <paragraph num="C."> <text>If a timely appeal for judicial review is filed, action to implement the final order shall be stayed until the final disposition of the matter by the court.</text> </paragraph> <paragraph num="D."> <text>The Commission may take action to seek judicial imposition of fines as set forth in General Provisions Article, §5-902, Annotated Code of Maryland.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, Title 5, Subtitle 4, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 20, 1981 (8:6 Md. R. 562)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.08 under chapter “Complaint Procedures” repealed effective September 26, 1994 (21:19 Md. R. 1635)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.12 under chapter “Enforcement Procedures” adopted effective September 26, 1994 (21:19 Md. R. 1635)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective January 16, 2017 (44:1 Md. R. 12)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09B, C amended effective January 16, 2017 (44:1 Md. R. 12)</annotation> <annotation type="History" subtype="Administrative History">Regulation .10G amended effective January 16, 2017 (44:1 Md. R. 12)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11 amended effective August 8, 2011 (38:16 Md. R. 946); May 25, 2015 (42:10 Md. R. 685)</annotation> </annotations> </chapter> </subtitle> <subtitle num="02" heading="Conflicts of Interest"> <chapter num="01" heading="Exception to Outside Employment Prohibition"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>Except as provided in §B of this regulation, this chapter applies to all officials and employees.</text> </paragraph> <paragraph num="B."> <text>This chapter does not apply to a member of the General Assembly or a State official in the Judicial Branch.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Prohibition Against Outside Employment."> <text>Except as provided in Regulation .03 of this chapter, an official or employee may not:</text> <paragraph num="A."> <text>Be employed by an entity subject to the authority of:</text> <paragraph num="(1)"> <text>The official or employee; or</text> </paragraph> <paragraph num="(2)"> <text>The governmental unit with which the official or employee is affiliated;</text> </paragraph> </paragraph> <paragraph num="B."> <text>Be employed by an entity which is negotiating or has entered a contract with the governmental unit with which the official or employee is affiliated; or</text> </paragraph> <paragraph num="C."> <text>Hold any other employment relationship that would impair the impartiality or independence of judgment of the official or employee.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Exceptions."> <text>Subject to Regulation .04 of this chapter, the Commission may grant an official or employee an exception to Regulation .02 of this chapter for specific outside employment if:</text> <paragraph num="A."> <text>The employee's or official's State duties do not significantly impact on the outside employer or a contract or proposed contract between the outside employer and the official’s or employee’s governmental unit;</text> </paragraph> <paragraph num="B."> <text>The employee or official is not directly supervised by a person who has duties that significantly impact on the outside employer or the contract or proposed contract;</text> </paragraph> <paragraph num="C."> <text>The official or employee does not supervise a person who has duties that significantly impact on the outside employer or the contract or proposed contract;</text> </paragraph> <paragraph num="D."> <text>The employee or official is not affiliated with the specific unit within the employee’s or official’s governmental unit that exercises authority over the outside employer or is involved in contracts with the outside employer;</text> </paragraph> <paragraph num="E."> <text>The employee or official has complied with relevant other sections of the Ethics Law relating to the matters involved;</text> </paragraph> <paragraph num="F."> <text>The employee's or official's outside employment involves no substantive, non-ministerial duties significantly relating to the official’s or employee’s governmental unit’s authority over the outside employer;</text> </paragraph> <paragraph num="G."> <text>The employee's or official's outside employment does not involve negotiating or carrying out a contract involving the outside employer and the official’s or employee’s governmental unit, other than contracts involving broad reimbursement payments that are based on a generally applicable standard and that do not involve substantial negotiation or discretion;</text> </paragraph> <paragraph num="H."> <text>The employee's or official's private compensation is not directly funded by the State contract or contracts; and</text> </paragraph> <paragraph num="I."> <text>The Commission determines that the employee's or official's specific employment circumstances do not otherwise raise a conflict of interest or appearance of conflict as contemplated by General Provisions Article, §§5-102 and 5-502, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Application of Exceptions."> <paragraph num="A."> <text>The Commission may grant an exception under Regulation .03 of this chapter to an individual who does not meet the criteria of Regulation .03B, C, D, or F of this chapter for specific outside employment if:</text> <paragraph num="(1)"> <text>The head of the employee’s or official’s governmental unit advises the Commission that the head of the governmental unit does not believe that the secondary employment would present a conflict of interest or the appearance of a conflict of interest that would impair the credibility of the governmental unit; and</text> </paragraph> <paragraph num="(2)"> <text>The Commission concurs in the assessment of the head of the official’s or employee’s governmental unit provided under §A(1) of this regulation.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Commission may grant an exception under Regulation .03 of this chapter to an individual who does not meet the criteria of Regulation .03H of this chapter if:</text> <paragraph num="(1)"> <text>The official’s or employee’s private compensation is funded by contracts involving broad reimbursement payments that are based on a generally applicable standard and that do not involve substantial agency negotiation or discretion;</text> </paragraph> <paragraph num="(2)"> <text>The head of the official’s or employee’s agency advises the Commission that the head of the agency does not believe that the secondary employment would present a conflict of interest or the appearance of a conflict of interest that would impair the credibility of the agency; and</text> </paragraph> <paragraph num="(3)"> <text>The Commission concurs in the assessment of the head of the official’s or employee’s agency provided under §B(2) of this regulation.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Commission may grant an exception under Regulation .03 of this chapter to an employee who does not meet the criteria of Regulation .03F, G, or H of this chapter if:</text> <paragraph num="(1)"> <text>The employee has limited duties that are defined with sufficient precision regarding time, mode, and occasion that the employee may not exercise substantial discretion or judgment;</text> </paragraph> <paragraph num="(2)"> <text>The head of the employee’s governmental unit advises the Commission that the head of the governmental unit:</text> <paragraph num="(a)"> <text>Believes that the service or product to be supplied by the employee would be otherwise unavailable to the State; and</text> </paragraph> <paragraph num="(b)"> <text>Does not believe that the secondary employment would present a conflict of interest or the appearance of a conflict that would impair the credibility of the agency; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Commission concurs in the assessment of the head of the employee’s governmental unit provided under §C(2) of this regulation.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§5-206 and 5-502, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: August 2, 1982 (9:15 Md. R. 1517)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective January 13, 1986 (13:1 Md. R. 19); October 15, 2012 (39:20 Md. R. 1308)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective October 15, 2012 (39:20 Md. R. 1308)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective December 20, 1982 (9:25 Md. R. 2486); October 15, 2012 (39:20 Md. R. 1308)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 adopted effective December 20, 1982 (9:25 Md. R. 2486)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective November 5, 1984 (11:22 Md. R. 1900); January 13, 1986 (13:1 Md. R. 19); October 15, 2012 (39:20 Md. R. 1308)</annotation> </annotations> </chapter> <chapter num="02" heading="Exception to Financial Interest Prohibition"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>Except as provided in §B of this regulation, this chapter applies to all officials and employees.</text> </paragraph> <paragraph num="B."> <text>This chapter does not apply to a member of the General Assembly or a State official in the Judicial Branch.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Prohibition Against Holding of Private Financial Interests."> <text>Except as provided in Regulation .03 of this chapter, an official or employee may not hold a financial interest in an entity that:</text> <paragraph num="A."> <text>Is subject to the authority of:</text> <paragraph num="(1)"> <text>The official or employee; or</text> </paragraph> <paragraph num="(2)"> <text>The government unit with which the official or employee is affiliated; or</text> </paragraph> </paragraph> <paragraph num="B."> <text>Is negotiating or has entered a contract with the governmental unit with which the official or employee is affiliated.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Exceptions."> <text>Subject to Regulation .04 of this chapter, the Commission may grant an official or employee an exception to Regulation .02 of this chapter for a specific financial interest if:</text> <paragraph num="A."> <text>The interest is disclosed as provided in Regulation .05 of this chapter;</text> </paragraph> <paragraph num="B."> <text>The employee’s or official's State duties do not significantly impact on the entity in which the financial interest is held, or on a contract or proposed contract between the entity and the official’s or employee’s governmental unit;</text> </paragraph> <paragraph num="C."> <text>The employee or official is not directly supervised by a person who has duties that significantly impact on the entity in which the financial interest is held, or on the contract or proposed contract;</text> </paragraph> <paragraph num="D."> <text>The official or employee does not supervise a person who has duties that significantly impact on the entity in which the financial interest is held, or on the contract or proposed contract;</text> </paragraph> <paragraph num="E."> <text>The employee or official is not affiliated with the specific unit within the employee’s or official’s governmental unit that exercises authority over the entity in which the financial interest is held, or is involved in contracts with the entity;</text> </paragraph> <paragraph num="F."> <text>The employee or official has complied with relevant other sections of the Ethics Law relating to the matters involved;</text> </paragraph> <paragraph num="G."> <text>The employee’s or official's financial interest in the entity involves no substantive non-ministerial duties significantly relating to the employee’s or official’s governmental unit’s authority over the entity;</text> </paragraph> <paragraph num="H."> <text>The employee’s or official's financial interest in the entity does not involve negotiating or carrying out a contract involving the entity and the employee’s or official’s governmental unit, other than contracts involving broad reimbursement payments that are based on a generally applicable standard and that do not involve substantial negotiation or discretion;</text> </paragraph> <paragraph num="I."> <text>State contract or contracts do not exceed 20 percent of the calendar year gross income of the entity in which the financial interest is held, one-third of the capitalized value of the entity, or a value at any time during a calendar year of $5,000 or more; and</text> </paragraph> <paragraph num="J."> <text>The Commission determines that the employee’s or official's financial interest and the circumstances do not otherwise raise a conflict of interest or appearance of conflict as contemplated by General Provisions Article, §§5-102 and 5-502, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Application of Exceptions."> <paragraph num="A."> <text>Exceptions Under Limited Circumstances.</text> <paragraph num="(1)"> <text>The Commission may grant an exception under Regulation .03 of this chapter to an individual who does not meet the criteria of Regulation .03C, D, E, G, or I of this chapter for a specific financial interest if:</text> <paragraph num="(a)"> <text>The head of the official’s or employee’s governmental unit advises the Commission that the head of the governmental unit does not believe that the financial interest would present a conflict of interest or the appearance of a conflict of interest that would impair the credibility of the governmental unit; and</text> </paragraph> <paragraph num="(b)"> <text>The Commission concurs in the assessment of the head of the official’s or employee’s governmental unit provided under §A(1)(a) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Commission may grant an exception under Regulation .03 of this chapter to an individual who does not meet the criteria of Regulation .03A(1) of this chapter for a specific financial interest in an entity if:</text> <paragraph num="(a)"> <text>The employee or official did not know or have reason to know that the entity is under the authority of the employee or official or of the employee’s or official’s governmental unit;</text> </paragraph> <paragraph num="(b)"> <text>The employee or official did not know or have reason to know that the entity has or is negotiating a contract with the employee’s or official’s governmental unit;</text> </paragraph> <paragraph num="(c)"> <text>The entity is not included on any list of entities doing business with the employee’s or official’s governmental unit that is provided by the Commission or is available through the Commission’s website; and</text> </paragraph> <paragraph num="(d)"> <text>Upon obtaining knowledge of the relationship between the entity and the employee’s or official’s governmental unit, the employee disclosed the financial interest as provided in Regulation .05 of this chapter.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>The Commission may grant an exception under Regulation .03 of this chapter to an employee who does not meet the criteria of Regulation .03G or H of this chapter for a specific financial interest if:</text> <paragraph num="(1)"> <text>The employee has limited duties that are defined with sufficient precision regarding time, mode, and occasion that the employee may not exercise substantial discretion or judgment;</text> </paragraph> <paragraph num="(2)"> <text>The head of the employee’s governmental unit advises the Commission that the head of the agency:</text> <paragraph num="(a)"> <text>Believes that the service or product to be supplied by the employee would otherwise be unavailable to the State; and</text> </paragraph> <paragraph num="(b)"> <text>Does not believe that the financial interest would present a conflict of interest or the appearance of a conflict that would impair the credibility of the governmental unit; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Commission concurs in the assessment of the head of the employee’s governmental unit provided under §B(2) of this regulation.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Disclosure Requirements."> <paragraph num="A."> <text>An employee or official shall disclose a financial interest prohibited under Regulation .02 of this chapter:</text> <paragraph num="(1)"> <text>For an official or employee required to file a financial disclosure statement under General Provisions Article, §5-601, Annotated Code of Maryland, on the financial disclosure statement for the reporting period in which the official or employee held the financial interest;</text> </paragraph> <paragraph num="(2)"> <text>If the official or employee knows or has reason to know that the entity is subject to the authority of the official or employee, subject to the authority of the official’s or employee’s governmental unity, or is negotiating or has entered a contract with the official’s or employee’s governmental unit, on the form provided by the Ethics Commission for an official or employee who:</text> <paragraph num="(a)"> <text>Is not required to file a financial disclosure statement under General Provisions Article, §5-601, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(b)"> <text>Did not hold the financial interest during the reporting period covered by the most recent financial disclosure statement filed under General Provisions Article, §5-601, Annotated Code of Maryland.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>An official or employee shall file a form required by §A(2) of this regulation with the Commission on or before the latter of:</text> <paragraph num="(1)"> <text>Acquiring the financial interest; or</text> </paragraph> <paragraph num="(2)"> <text>Acquiring knowledge that or reason to have knowledge that the entity:</text> <paragraph num="(a)"> <text>Is subject to the authority of the official or employee or the government unit with which the official or employee is affiliated; or</text> </paragraph> <paragraph num="(b)"> <text>Is negotiating or has entered a contract with the governmental unit with which the official or employee is affiliated.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>An official or employee has reason to know that an entity does business with the official’s or employee’s governmental unit if the entity is listed as doing business with the official’s or employee’s governmental unit that is provided by the Commission or is available on the Commission’s website.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§5-206 and 5-502, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: January 31, 1983 (10:2 Md. R. 111)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective January 13, 1986 (13:1 Md. R. 19); October 15, 2012 (39:20 Md. R. 1308)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective October 15, 2012 (39:20 Md. R. 1308)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective October 15, 2012 (39:20 Md. R. 1308)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective January 13, 1986 (13:1 Md. R. 19); October 15, 2012 (39:20 Md. R. 1308)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective October 15, 2012 (39:20 Md. R. 1308)</annotation> </annotations> </chapter> <chapter num="03" heading="Exception to Participation Restriction"> <regulation prefix="Regulation" num=".01" heading="General."> <text>The Commission may grant an official or employee an exception to the participation restrictions of General Provisions Article, §5-501, Annotated Code of Maryland, related to a business entity with which a qualifying relative is affiliated if:</text> <paragraph num="A."> <text>The official’s or employee’s agency or appointing authority supports the exception; and</text> </paragraph> <paragraph num="B."> <text>The Commission finds that, based on the overall circumstances and relationships, granting an exception is not contrary to the purposes of the Public Ethics Law.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Factors to Be Considered."> <text>In determining whether to grant an exception under Regulation .01 of this chapter, the Commission shall consider:</text> <paragraph num="A."> <text>The nature of the qualifying relative’s relationship with the business entity;</text> </paragraph> <paragraph num="B."> <text>The nature of the relationship between the official or employee and the qualifying relative;</text> </paragraph> <paragraph num="C."> <text>The geographical distance between the official or employee and the qualifying relative;</text> </paragraph> <paragraph num="D."> <text>Any prior issues related to the official’s or employee’s participation in the matter;</text> </paragraph> <paragraph num="E."> <text>Agency controls and safeguards;</text> </paragraph> <paragraph num="F."> <text>Any involvement by the qualifying relative in the matter involving the official or employee; and</text> </paragraph> <paragraph num="G."> <text>The nature of the official’s or employee’s participation in the matter in relation to the official’s or employee’s overall duties.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§5-206 and 5-501, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: October 15, 2012 (39:20 Md. R. 1308)</annotation> </annotations> </chapter> </subtitle> <subtitle num="03" heading="Financial Disclosure"> <chapter num="01" heading="Disclosure Required by Members of Boards and Commissions"> <regulation prefix="Regulation" num=".01" heading="Application."> <paragraph num="A."> <text>Except as provided in §B of this regulation, this chapter applies to members of State boards and commissions:</text> <paragraph num="(1)"> <text>Who the Commission determines are public officials;</text> </paragraph> <paragraph num="(2)"> <text>Whom the Commission has not exempted from financial disclosure requirements under Regulation .03 of this chapter; and</text> </paragraph> <paragraph num="(3)"> <text>Who receive as annual compensation less than 25 percent of the annual salary of an employee classified as a grade 16, base level, of the State standard salary schedule.</text> </paragraph> </paragraph> <paragraph num="B."> <text>This chapter does not apply to:</text> <paragraph num="(1)"> <text>A public official who:</text> <paragraph num="(a)"> <text>Files a financial disclosure statement for the reporting period required by COMAR 19A.03.03; and</text> </paragraph> <paragraph num="(b)"> <text>Discloses the public official’s service on the board or commission on the financial disclosure statement for the reporting period; or</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A member of the Maryland-National Capital Park and Planning Commission, the Washington Suburban Sanitary Commission, the Washington Suburban Transit Commission, the Workers’ Compensation Commission, the Parole Commission, the Public Service Commission, the Maryland Lottery and Gaming Control Commission, or the Maryland Automobile Insurance Fund.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Board or commission” includes any unit that is administered, governed, or subject to appellate review by the board or commission.</text> </paragraph> <paragraph num="(2)"> <text>“Doing business with” means being:</text> <paragraph num="(a)"> <text>A party to sales, purchases, leases, or contracts to, from, or with an entity involving consideration of $5,000 or more during the reporting period;</text> </paragraph> <paragraph num="(b)"> <text>A registrant who lobbies on matters before the board or commission; or</text> </paragraph> <paragraph num="(c)"> <text>Regulated by the board or commission.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>“Regulated by” the member's board or commission does not include the mere act of approval or authorization of a corporate or business name by a board or commission.</text> </paragraph> <paragraph num="(4)"> <text>“Reporting period” means the period of time covered by a financial disclosure statement.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Exemptions."> <paragraph num="A."> <text>The Commission may grant a board or commission a preliminary exemption from the requirement that members of the board or commission file financial disclosure statements if the Commission determines that the criteria in §C of this regulation are met.</text> </paragraph> <paragraph num="B."> <text>A board or commission that does not receive a preliminary exemption under §A of this regulation may request in writing that the Commission grant the board or commission an exemption from the requirement that members of the board or commission file financial disclosure statements with the Commission.</text> </paragraph> <paragraph num="C."> <text>The Commission may grant a board or commission an exemption requested under §B of this regulation if:</text> <paragraph num="(1)"> <text>The Commission finds that requiring members of the board or commission to file financial disclosure statements:</text> <paragraph num="(a)"> <text>Will constitute an unreasonable invasion of privacy;</text> </paragraph> <paragraph num="(b)"> <text>Will significantly reduce the availability of qualified individuals for public service; and</text> </paragraph> <paragraph num="(c)"> <text>Is not necessary to preserve the purposes of the Public Ethics Law; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>For a board or commission in a cabinet department of the Executive Branch, the Secretary of the Department submits written documentation of the Secretary’s support of the exemption request.</text> </paragraph> </paragraph> <paragraph num="D."> <text>When considering a preliminary exemption request under §A or an exemption request under §B of this regulation, the Commission shall consider:</text> <paragraph num="(1)"> <text>The duration of the board or commission;</text> </paragraph> <paragraph num="(2)"> <text>Whether the board or commission is advisory only; and</text> </paragraph> <paragraph num="(3)"> <text>Any other compelling reason that may require members to file financial disclosure statements.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The records of the Commission related to an exemption are public documents.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Financial Disclosure Requirements."> <paragraph num="A."> <text>An individual shall file a financial disclosure statement on a form or using the electronic filing system provided by the Commission.</text> </paragraph> <paragraph num="B."> <text>Contents of Financial Disclosure Statements.</text> <paragraph num="(1)"> <text>An individual shall report the information specified in this section, if known, for the reporting period.</text> </paragraph> <paragraph num="(2)"> <text>An individual who is required to disclose the name of a business under this section shall disclose any other names that the business is trading as or doing business as.</text> </paragraph> <paragraph num="(3)"> <text>An individual shall disclose the information specified in General Provisions Article, §5-607(b), Annotated Code of Maryland, for an interest the individual holds in real property that:</text> <paragraph num="(a)"> <text>Is subject to a lease or other contract with the individual’s State board or commission;</text> </paragraph> <paragraph num="(b)"> <text>Is the subject of a lease or other contract with an entity that:</text> <paragraph num="(i)"> <text>Has a contract with the individual’s board or commission;</text> </paragraph> <paragraph num="(ii)"> <text>Is regulated by the individual’s board or commission; or</text> </paragraph> <paragraph num="(iii)"> <text>Is licensed by the individual’s board or commission;</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Is co-owned by a person who:</text> <paragraph num="(i)"> <text>Has a contract with the individual’s board or commission;</text> </paragraph> <paragraph num="(ii)"> <text>Is regulated by the individual’s board or commission; or</text> </paragraph> <paragraph num="(iii)"> <text>Is licensed by the individual’s board or commission;</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Was negotiated for sale or lease or was sold or leased to the individual’s board or commission during the reporting period;</text> </paragraph> <paragraph num="(e)"> <text>The individual held during the reporting period and that the individual plans to offer for lease or sale to the individual’s board or commission during the current calendar year;</text> </paragraph> <paragraph num="(f)"> <text>The individual purchased from a person that contracts with, is regulated by, or is licensed by the individual’s board or commission; or</text> </paragraph> <paragraph num="(g)"> <text>Is regulated by the individual’s board or commission.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>An individual shall disclose the information specified in General Provisions Article, §5-607(c), Annotated Code of Maryland, for an interest the individual holds in a corporation, partnership, limited liability partnership, or limited liability company if the interest:</text> <paragraph num="(a)"> <text>Is greater than a 1 percent ownership interest if the corporation, partnership, limited liability partnership, or limited liability company:</text> <paragraph num="(i)"> <text>Is regulated or licensed by the individual’s board or commission; or</text> </paragraph> <paragraph num="(ii)"> <text>Is doing business with the individual’s board or commission; or</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Is 20 percent or greater if:</text> <paragraph num="(i)"> <text>Another person owns an interest in the corporation, partnership, limited liability partnership, or limited liability company and the person is regulated by, licensed by, lobbies, or has a contract with an annual value of $5,000 or more with the individual’s board or commission; or</text> </paragraph> <paragraph num="(ii)"> <text>The corporation, partnership, limited liability partnership, or limited liability company owns a direct financial interest in another entity that is regulated by, licensed by, lobbies, or has a contract with an annual value of $5,000 or more with the individual’s board or commission.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(5)"> <text>An individual shall disclose the information specified in General Provisions Article, §5-607(d), Annotated Code of Maryland, for an interest the individual holds in a business entity if the interest is not disclosed under §B(3) of this regulation and the interest:</text> <paragraph num="(a)"> <text>Is greater than a 1 percent ownership interest if the entity:</text> <paragraph num="(i)"> <text>Is regulated or licensed by the individual’s board or commission; or</text> </paragraph> <paragraph num="(ii)"> <text>Is negotiating to do business with or is doing business with the individual’s board or commission; or</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Is 20 percent or greater if:</text> <paragraph num="(i)"> <text>Another person owns an interest in the entity and the person is regulated by, licensed by, lobbies, or has a contract with an annual value of $5,000 or more with the individual’s board or commission; or</text> </paragraph> <paragraph num="(ii)"> <text>The entity owns a direct financial interest in another entity that is regulated by, licensed by, lobbies, or has a contract with an annual value of $5,000 or more with the individual’s board or commission.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(6)"> <text>Gifts.</text> <paragraph num="(a)"> <text>Except as provided in §B(6)(b) of this regulation, an individual shall disclose the information specified in General Provisions Article, §5-607(e), Annotated Code of Maryland, for a gift in excess of $50 in value and for any series of gifts totaling over $100 in value in the reporting period from any person doing business with, regulated by, registered as a lobbyist before the individual’s board or commission, or is an association, or an entity acting on behalf of an association, that is engaged only in representing counties or municipal corporations.</text> </paragraph> <paragraph num="(b)"> <text>This subsection does not require an individual to report gifts from the individual’s immediate family members, parents, or children.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>An individual shall disclose the information specified in General Provisions Article, §5-607(f), Annotated Code of Maryland, for any office, directorship, or salaried employment with any entity that does business with the individual’s board or commission that was held by the individual or a member of the individual’s immediate family during the reporting period.</text> </paragraph> <paragraph num="(8)"> <text>An individual shall disclose the information specified in General Provisions Article, §5-607(g), Annotated Code of Maryland, for a debt the individual owed at any point in the reporting period to any person or entity that does business with the individual’s board or commission or is under the authority of the individual’s board or commission.</text> </paragraph> <paragraph num="(9)"> <text>For an immediate family member of the individual who was employed by the individual’s board or commission during the reporting period, an individual shall report:</text> <paragraph num="(a)"> <text>The name of the immediate family member;</text> </paragraph> <paragraph num="(b)"> <text>The familial relationship between the individual and the immediate family member; and</text> </paragraph> <paragraph num="(c)"> <text>The title of the position the immediate family member held with the board or commission.</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>Salary or Business Ownership.</text> <paragraph num="(a)"> <text>An individual shall disclose the information specified in §B(9)(b) of this regulation for each:</text> <paragraph num="(i)"> <text>Source of compensated employment of the individual and each member of the individual’s immediate family held at any time during the reporting period;</text> </paragraph> <paragraph num="(ii)"> <text>Business entity of which the individual or a member of the individual’s immediate family was a sole owner and from which the individual or the member of the immediate family earned income during the reporting period; and</text> </paragraph> <paragraph num="(iii)"> <text>Business entity of which the individual or member of the individual’s immediate family member was a partial owner, if the business entity did business with the individual’s board or commission during the reporting period, and the individual or member of the individual’s immediate family earned income during the reporting period.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>A disclosure required under this subsection shall include:</text> <paragraph num="(i)"> <text>The name and address of the source of compensated employment or business entity owned;</text> </paragraph> <paragraph num="(ii)"> <text>Whether the relationship is an employment or ownership interest; and</text> </paragraph> <paragraph num="(iii)"> <text>The identity of the holder of the interest or employment.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(11)"> <text>An individual may disclose any other interests or information that has not been disclosed and that the individual chooses to disclose.</text> </paragraph> </paragraph> <paragraph num="C."> <text>An individual who files a financial disclosure statement using the electronic filing system of the Commission may disclose the following information in the ranges specified in the electronic filing system:</text> <paragraph num="(1)"> <text>For a real property interest:</text> <paragraph num="(a)"> <text>If the interest is held jointly with other persons, the percentage interest held by each owner;</text> </paragraph> <paragraph num="(b)"> <text>The consideration paid when the interest was acquired, the fair market value if acquired other than by purchase, or the annual rent if the individual rents the property; and</text> </paragraph> <paragraph num="(c)"> <text>If any portion of the interest was transferred in the reporting period, the percentage of the interest that was transferred and the amount of consideration received for the interest;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>For an interest in a corporation:</text> <paragraph num="(a)"> <text>The number of shares held or the value of the shares;</text> </paragraph> <paragraph num="(b)"> <text>If the interest is held jointly with other persons, the percentage interest held by each owner;</text> </paragraph> <paragraph num="(c)"> <text>If an interest was acquired during the reporting period in a manner other than by dividend or dividend reinvestment or over $500 was acquired by dividend or dividend reinvestment, the dollar amount paid or, if acquired in a manner other than by purchase, the fair market value at the time of acquisition; and</text> </paragraph> <paragraph num="(d)"> <text>If an interest was transferred during the reporting period, the percentage of interest transferred and the amount of consideration received for the interest;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>For an interest in a noncorporate business entity doing business with the State:</text> <paragraph num="(a)"> <text>If the interest is jointly held with other persons, the percentage interest held by each owner;</text> </paragraph> <paragraph num="(b)"> <text>The value of the interest held by the individual;</text> </paragraph> <paragraph num="(c)"> <text>If the interest was acquired during the reporting period, the consideration paid or the fair market value if acquired other than by purchase; and</text> </paragraph> <paragraph num="(d)"> <text>If an interest was transferred during the reporting period, the percentage of interest transferred and the amount of consideration received for the interest; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>For a debt owed to an entity doing business with the State:</text> <paragraph num="(a)"> <text>The interest rate;</text> </paragraph> <paragraph num="(b)"> <text>The amount of the debt at the end of the reporting period; and</text> </paragraph> <paragraph num="(c)"> <text>The amount by which the debt increased or decreased during the reporting period.</text> </paragraph> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§5-206 and 5-208 and Title 5, Subtitle 6, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.03 amended as an emergency provision effective February 24, 1983 (10:8 Md. R. 720); adopted permanently effective June 24, 1983 (10:10 Md. R. 874)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01C amended effective April 13, 1992 (19:7 Md. R. 746)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03A amended effective April 13, 1992 (19:7 Md. R. 746)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 adopted effective April 13, 1992 (19:7 Md. R. 746)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective October 15, 2012 (39:20 Md. R. 1309)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended February 7, 2022 (49:3 Md. R. 138)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective May 25, 2015 (42:10 Md. R. 685); February 16, 2026 (53:3 Md. R. 123)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04A amended effective May 25, 2015 (42:10 Md. R. 685)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04B amended effective May 25, 2015 (42:10 Md. R. 685); February 7, 2022 (49:3 Md. R. 138); February 16, 2026 (53:3 Md. R. 123)</annotation> </annotations> </chapter> <chapter num="02" heading="Disclosure by Faculty Members at State Institutions of Higher Education"> <regulation prefix="Regulation" num=".01" heading="Faculty Members Required to Disclose."> <paragraph num="A."> <text>Faculty members at State institutions of higher education who are, in their capacity as faculty members, public officials under COMAR 19A.01.01.02W and who are not also public officials due to their employment in another State position which comes under the definition of public official, are not public officials required to file financial disclosure unless they meet one or both of the criteria set forth in §§B and C of this regulation.</text> </paragraph> <paragraph num="B."> <text>Direct Procurement.</text> <paragraph num="(1)"> <text>Faculty member's official responsibilities include the direct procurement of goods, services, real estate or other items, other than routine supplies and routine classroom or laboratory materials which are not reasonably expected to have an annual dollar volume in excess of $2,000.</text> </paragraph> <paragraph num="(2)"> <text>For the purposes of §B(1) of this regulation, “direct procurement” includes but is not limited to placing an order with a vendor, approval of bills or invoices, signing of sales agreements, or selection of vendors.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Direct Influence.</text> <paragraph num="(1)"> <text>Faculty member's position, due to its responsibilities, nature, expertise or placement in the institution, involves some continuing likelihood (based on position description or actual past activities carried out in the position) of directly influencing or otherwise directly affecting the formation or execution of one or more State contracts, purchases or sales reasonably expected to have an annual dollar volume in excess of $10,000.</text> </paragraph> <paragraph num="(2)"> <text>For the purposes of §C(1) of this regulation, “directly influencing or otherwise directly affecting” the formation or execution of a contract shall be deemed to include:</text> <paragraph num="(a)"> <text>Recommending a vendor;</text> </paragraph> <paragraph num="(b)"> <text>Providing the required signature, approval or other sign-off of a document relating to specifications, a purchase or a payment;</text> </paragraph> <paragraph num="(c)"> <text>Being involved in communications or conferences with potential contractors in an attempt to arrange the terms of a purchase, lease, or contract;</text> </paragraph> <paragraph num="(d)"> <text>Preparing specifications, being a principal advisor regarding specifications, or approving specifications which form the basis for part or all of a contract;</text> </paragraph> <paragraph num="(e)"> <text>Determining or being a principal advisor in determining terms acceptable to the State.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>As used in §C(1), of this regulation, “directly influencing or otherwise directly affecting” the formation or execution of a contract does not include the generic identification of the need for an item without any further activity to directly influence or otherwise directly affect the transaction.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §5-103, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: September 13, 1982 (9:18 Md. R. 1801)</annotation> </annotations> </chapter> <chapter num="03" heading="Disclosure by Public Officials, State Officials, and Candidates to Be State Officials"> <regulation prefix="Regulation" num=".01" heading="Applicability."> <paragraph num="A."> <text>This chapter applies to an official or a candidate to be a State official who is required to file a financial disclosure statement under General Provisions Article, §§5-601(a) and (e), 5-603, 5-604, or 5-605, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>Scope.</text> <paragraph num="(1)"> <text>Except as provided in §B(2) of this regulation, this chapter does not apply to an individual who:</text> <paragraph num="(a)"> <text>Is a public official solely because of the individual’s service on a State board, commission, or task force; or</text> </paragraph> <paragraph num="(b)"> <text>Is required to file a financial disclosure statement under COMAR 19A.03.01.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>This chapter applies to:</text> <paragraph num="(a)"> <text>A member of the Parole Commission</text> </paragraph> <paragraph num="(b)"> <text>A member of the Maryland-National Capital Park and Planning Commission;</text> </paragraph> <paragraph num="(c)"> <text>A member of the Washington Suburban Sanitary Commission;</text> </paragraph> <paragraph num="(d)"> <text>A member of the Washington Suburban Transit Commission;</text> </paragraph> <paragraph num="(e)"> <text>A member of the Public Service Commission;</text> </paragraph> <paragraph num="(f)"> <text>A member of the Workers’ Compensation Commission;</text> </paragraph> <paragraph num="(g)"> <text>A member of the Maryland Lottery and Gaming Control Commission;</text> </paragraph> <paragraph num="(h)"> <text>A member of the Maryland Automobile Insurance Fund; and</text> </paragraph> <paragraph num="(i)"> <text>A public official who is a member of a board or commission and who receives annual compensation that is equal to or exceeds 25 percent of the lowest annual compensation at State grade level 16.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Disclosure Requirements."> <paragraph num="A."> <text>An individual shall file the financial disclosure statement required by General Provisions Article, Title 5, Subtitle 6, Annotated Code of Maryland, on a form or the electronic filing system provided by the Commission.</text> </paragraph> <paragraph num="B."> <text>An individual who files a financial disclosure statement using the electronic filing system of the Commission may disclose the following information in the ranges specified in the electronic filing system:</text> <paragraph num="(1)"> <text>For a real property interest:</text> <paragraph num="(a)"> <text>If the interest is held jointly with other persons, the percentage of interest held by each owner;</text> </paragraph> <paragraph num="(b)"> <text>The consideration paid when the interest was acquired, the fair market value if acquired other than by purchase, or the annual rent if the individual rents the property; and</text> </paragraph> <paragraph num="(c)"> <text>If any portion of the interest was transferred in the reporting period, the percentage of interest that was transferred and the amount of consideration received for the interest;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>For an interest in a corporation:</text> <paragraph num="(a)"> <text>The number of shares held or the value of the shares;</text> </paragraph> <paragraph num="(b)"> <text>If the interest is held jointly with other persons, the percentage of interest held by each owner;</text> </paragraph> <paragraph num="(c)"> <text>If an interest was acquired during the reporting period in a manner other than by dividend or dividend reinvestment or over $500 was acquired by dividend or dividend reinvestment, the dollar amount paid or, if acquired in a manner other than by purchase, the fair market value at the time of acquisition; and</text> </paragraph> <paragraph num="(d)"> <text>If an interest was transferred during the reporting period, the percentage of interest transferred and the amount of consideration received for the interest;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>For an interest in a noncorporate business entity doing business with the State:</text> <paragraph num="(a)"> <text>If the interest is jointly held with other persons, the percentage of interest held by each owner;</text> </paragraph> <paragraph num="(b)"> <text>The value of the interest held by the individual;</text> </paragraph> <paragraph num="(c)"> <text>If the interest was acquired during the reporting period, the consideration paid or the fair market value if acquired other than by purchase; and</text> </paragraph> <paragraph num="(d)"> <text>If an interest was transferred during the reporting period, the percentage of interest transferred and the amount of consideration received for the interest; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>For a debt owed to an entity doing business with the State:</text> <paragraph num="(a)"> <text>The interest rate;</text> </paragraph> <paragraph num="(b)"> <text>The amount of the debt at the end of the reporting period; and</text> </paragraph> <paragraph num="(c)"> <text>The amount by which the debt increased or decreased during the reporting period.</text> </paragraph> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§5-101, 5-206, 5-601, and 5-602, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: August 8, 2011 (38:16 Md. R. 946)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01A amended effective May 25, 2015 (42:10 Md. R. 685)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective October 15, 2012 (39:20 Md. R. 1309); February 7, 2022 (49:3 Md. R. 138)</annotation> </annotations> </chapter> <chapter num="04" heading="Electronic Filing" reason="Repealed."> <annotations> <annotation type="History" subtype="Administrative History">Effective date: May 25, 2015 (42:10 Md. R. 685)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.04 repealed effective November 23, 2017 (44:23 Md. R. 1079)</annotation> </annotations> </chapter> </subtitle> <subtitle num="04" heading="Local Government Ethics Law"> <chapter num="01" heading="General Provisions"> <regulation prefix="Regulation" num=".01" heading="Applicability."> <text>This subtitle applies to each county of the State, the City of Baltimore, and each of the incorporated municipalities of the State.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this subtitle, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Defined Terms.</text> <paragraph num="(1)"> <text>“Designated second home” means:</text> <paragraph num="(a)"> <text>If an individual owns one second home, the individual’s second home; or</text> </paragraph> <paragraph num="(b)"> <text>If an individual owns more than one second home, any one second home the individual identifies to the Commission as the individual’s designated second home.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>“Elected local official” has the meaning stated in General Provisions Article, §5-804, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>“Home address” means the address of an individual’s:</text> <paragraph num="(a)"> <text>Principal home; and</text> </paragraph> <paragraph num="(b)"> <text>Designated second home, if any.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Local Employee.</text> <paragraph num="(a)"> <text>“Local employee” means an individual who is employed by a county of the State, the City of Baltimore, or an incorporated municipality of the State.</text> </paragraph> <paragraph num="(b)"> <text>“Local employee” does not include:</text> <paragraph num="(i)"> <text>An elected local official or a nonelected local official; or</text> </paragraph> <paragraph num="(ii)"> <text>An employee or official of an executive unit, as defined in COMAR 19A.01.01.02H.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(5)"> <text>Nonelected Local Official.</text> <paragraph num="(a)"> <text>“Nonelected local official” means an individual who is appointed to serve on a board, commission, or other entity of a county of the State, the City of Baltimore, or an incorporated municipality of the State.</text> </paragraph> <paragraph num="(b)"> <text>“Nonelected local official” does not include:</text> <paragraph num="(i)"> <text>A local employee;</text> </paragraph> <paragraph num="(ii)"> <text>An elected local official; or</text> </paragraph> <paragraph num="(iii)"> <text>An employee or official of an executive unit, as defined in COMAR 19A.01.01.02H.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(6)"> <text>“Principal home” means the sole residential property that an individual occupies as the individual’s primary residence, whether owned or rented by the individual.</text> </paragraph> <paragraph num="(7)"> <text>“Quasi-governmental entity” means an entity that is created by State statute, that performs a public function, and that is supported in whole or in part by the State but is managed privately.</text> </paragraph> <paragraph num="(8)"> <text>“Second home” means a residential property that:</text> <paragraph num="(a)"> <text>An individual occupies for some portion of the filing year; and</text> </paragraph> <paragraph num="(b)"> <text>Is not a rental property or a time share.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Enactment of Local Laws."> <paragraph num="A."> <text>Except as provided in COMAR 19A.04.03 of this subtitle, each county and municipality shall enact a local ethics law that includes:</text> <paragraph num="(1)"> <text>Conflict of interest and financial disclosure provisions for elected local officials that are at least equivalent to the requirements for State officials contained in General Provisions Article, Title 5, Subtitles 5 and 6, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(2)"> <text>Conflicts of interest and financial disclosure provisions for individuals other than elected local officials that are similar to the provisions of the Public Ethics Law; and</text> </paragraph> <paragraph num="(3)"> <text>Lobbying provisions substantially similar to the provisions of the Public Ethics Law.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A county or municipality that has an ethics law approved by the Commission shall maintain and implement the law consistent with this subtitle.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §5-206, and Title 5, Subtitle 8, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: September 14, 1981 (8:18 Md. R. 1481)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.03 under Chapter, Model Laws repealed and new Regulations .01—.03 adopted under new Chapter, General Provisions effective April 18, 2011 (38:8 Md. R. 508)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective December 7, 2017 (44:24 Md. R. 1151); February 7, 2022 (49:3 Md. R. 138)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03A amended effective January 16, 2017 (44:1 Md. R. 12)</annotation> </annotations> </chapter> <chapter num="02" heading="Review Criteria"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>The provisions of this chapter reflect the minimum elements that shall be addressed by a county or municipal ethics law in order for the law to be viewed as:</text> <paragraph num="(1)"> <text>Similar or substantially similar to the Public Ethics Law; and</text> </paragraph> <paragraph num="(2)"> <text>For elected local officials and candidates to be elected local officials, at least equivalent to the requirements of General Provisions Article, Title 5, Subtitles 5 and 6, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A county or municipality may adopt laws more stringent than the requirements of General Provisions Article, Title 5, Subtitles 5 and 6, Annotated Code of Maryland, based on local circumstances and where more stringent provisions are necessary to prevent conflicts of interest in the locality.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Coverage."> <paragraph num="A."> <text>To be viewed as similar to the Public Ethics Law, all elected local officials, local employees subject to the jurisdiction of the locality, and nonelected local officials shall be subject to the local ethics law.</text> </paragraph> <paragraph num="B."> <text>Conflicts of Interest.</text> <paragraph num="(1)"> <text>A local law shall include conflict of interest provisions for elected local officials equivalent to or exceeding the requirements of General Provisions Article, Title 5, Subtitle 5, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>Conflicts of Interest — Employees and Nonelected Local Officials.</text> <paragraph num="(a)"> <text>A local law shall include conflict of interest provisions for local employees and nonelected local officials.</text> </paragraph> <paragraph num="(b)"> <text>A county or municipality may adopt conflict of interest provisions for local employees and nonelected local officials that are identical to the conflict of interest provisions for elected local officials.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Financial Disclosure.</text> <paragraph num="(1)"> <text>A local law shall include financial disclosure provisions for elected local officials and candidates to be elected local officials equivalent to or exceeding the requirements for State officials required in General Provisions Article, Title 5, Subtitle 6, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>Financial Disclosure — Employees and Nonelected Local Officials.</text> <paragraph num="(a)"> <text>A local law shall include financial disclosure provisions for local employees and nonelected local officials.</text> </paragraph> <paragraph num="(b)"> <text>A county or municipality may adopt financial disclosure provisions for local employees and nonelected local officials that are identical to the financial disclosure provisions for local elected officials.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Administration."> <text>The local law shall:</text> <paragraph num="A."> <text>Identify or establish a local agency responsible for implementing the law;</text> </paragraph> <paragraph num="B."> <text>Provide the local agency responsible for implementing the law with a structure that supports impartiality and independence of judgment by its officials and employees through the hiring and appointment process;</text> </paragraph> <paragraph num="C."> <text>Provide for the local agency responsible for implementing the local law to issue advisory opinions as to the applicability of the law to elected local officials, nonelected local officials, and local employees and other persons subject to the law; and</text> </paragraph> <paragraph num="D."> <text>Establish a mechanism for processing and making determinations in response to complaints filed with the appropriate local agency alleging violations of the law.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Conflicts of Interest."> <paragraph num="A."> <text>Similarity to Public Ethics Law.</text> <paragraph num="(1)"> <text>Unless the Commission grants the county or municipality a modification or exemption as provided in COMAR 19A.04.03.03 in accordance with General Provisions Article, §§5-209 and 5-808, Annotated Code of Maryland, as applicable, to be equivalent to the requirements of and similar to the Public Ethics Law, the local ethics law shall address conflicts of interest restrictions as described in this regulation.</text> </paragraph> <paragraph num="(2)"> <text>A local law that includes conflicts of interest restrictions more stringent than the restrictions described in this regulation may be similar to the Public Ethics Law.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Disqualification.</text> <paragraph num="(1)"> <text>Comparison to Public Ethics Law.</text> <paragraph num="(a)"> <text>The local law shall include, for elected local officials, the disqualification and participation restrictions included in General Provisions Article, §5-501, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(b)"> <text>When appropriate based on the local government structure and form, the local law may include, for elected local officials, the disqualification and participation restrictions included in General Provisions Article, §§5-512 and 5-513, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The local law shall include a disqualification provision prohibiting a nonelected local official or local employee from participating, as a nonelected local official or local employee, in a county or municipal matter that would have a direct economic impact, distinct from the impact on the public at large, on the nonelected local official or local employee or that, to the knowledge of the nonelected local official or local employee, would have a direct economic impact on:</text> <paragraph num="(a)"> <text>A spouse, parent, sibling, or child of the nonelected local official or local employee; or</text> </paragraph> <paragraph num="(b)"> <text>A business entity with which any of the following is affiliated:</text> <paragraph num="(i)"> <text>The nonelected local official or local employee; or</text> </paragraph> <paragraph num="(ii)"> <text>A spouse, parent, sibling, or child of the nonelected local official or local employee.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>The local law may include provisions:</text> <paragraph num="(a)"> <text>Authorizing the agency responsible for implementing the law to grant exceptions to the participation restrictions when no conflict of interest exists or when the interest is too remote and insubstantial to affect the integrity of the public actions of the official or employee; and</text> </paragraph> <paragraph num="(b)"> <text>Authorizing participation notwithstanding a conflict when the disqualification would leave a body with less than a quorum capable of acting, the disqualified official or employee is required by law to act, or the disqualified official or employee is the only individual authorized to act.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Outside Employment.</text> <paragraph num="(1)"> <text>Comparison to Public Ethics Law.</text> <paragraph num="(a)"> <text>The local law shall include, for elected local officials, the secondary employment restrictions included in General Provisions Article, §§5-502, 5-503, and 5-504(a), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(b)"> <text>When appropriate based on the local government structure and form, the local law may include, for elected local officials, the secondary employment restrictions included in General Provisions Article, §5-514, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The local law shall prohibit, for local employees and nonelected local officials, outside employment with an entity that:</text> <paragraph num="(a)"> <text>Is subject to the authority of the local employee or nonelected local official or of the agency with which the nonelected local official or local employee is affiliated; or</text> </paragraph> <paragraph num="(b)"> <text>Is negotiating or has entered a contract with or is a subcontractor on a contract with the agency with which the nonelected local official or local employee is affiliated.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The local law shall prohibit, for local employees and nonelected officials, outside employment that would impair the impartiality or independent judgment of the nonelected local official or local employee.</text> </paragraph> <paragraph num="(4)"> <text>The local law may include provisions authorizing the agency responsible for implementing the law:</text> <paragraph num="(a)"> <text>To grant exceptions to the outside employment restrictions when the outside employment does not create a conflict of interest or the appearance of a conflict; and</text> </paragraph> <paragraph num="(b)"> <text>To grant limited exemptions to the outside employment restrictions under extraordinary circumstances.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Financial Interests.</text> <paragraph num="(1)"> <text>Comparison to Public Ethics law.</text> <paragraph num="(a)"> <text>The local law shall include, for elected local officials, the financial interest restrictions included in General Provisions Article, §5-502, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(b)"> <text>When appropriate, based on the local government structure and form, the local law may include, for elected local officials, the financial interest restrictions included in General Provisions Article, §5-514, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The local law shall prohibit, for local employees and nonelected local officials, financial interests in an entity that:</text> <paragraph num="(a)"> <text>Is subject to the authority of the local employee or nonelected local official or of the agency with which the nonelected local official or local employee is affiliated; or</text> </paragraph> <paragraph num="(b)"> <text>Is negotiating or has entered a contract with or is a subcontractor on a contract with the agency with which the nonelected local official or local employee is affiliated.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The local law may include provisions authorizing the agency responsible for implementing the law:</text> <paragraph num="(a)"> <text>To grant exceptions to the financial interest restrictions when the financial interest does not create a conflict of interest or the appearance of a conflict; and</text> </paragraph> <paragraph num="(b)"> <text>To grant limited exemptions to the financial interest restrictions under extraordinary circumstances.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Post-Employment.</text> <paragraph num="(1)"> <text>The local law shall include, for former elected local officials, the post-employment restrictions included in General Provisions Article, §5-504(d), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>The local law shall include a restriction on former nonelected local officials' and local employees' activities relating to cases, contracts, or other specific matters in which the former nonelected local officials or former local employees significantly participated in their local positions.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Prestige of Office.</text> <paragraph num="(1)"> <text>The local law shall include, for elected local officials, the prestige of office restrictions included in General Provisions Article, §5-506, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>The local law shall prohibit nonelected local officials and local employees from using their official positions or public positions for their private gain or the private gain of another.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Confidential Information.</text> <paragraph num="(1)"> <text>The local law shall include, for elected local officials, the restrictions on the use of confidential information included in General Provisions Article, §5-507, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>The local law shall prohibit nonelected local officials and local employees or former nonelected local officials and local employees from using or disclosing, except in the discharge of an official duty, nonpublic information obtained in the course of official local duties for personal economic benefit or the economic benefit of another.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Gifts.</text> <paragraph num="(1)"> <text>The local law shall include, for elected local officials, the gift solicitation and acceptance restrictions included in General Provisions Article, §5-505, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>The local law shall prohibit nonelected local officials and local employees from:</text> <paragraph num="(a)"> <text>Soliciting gifts; and</text> </paragraph> <paragraph num="(b)"> <text>Directly soliciting or facilitating the solicitation of a gift, on behalf of another person, from an individual registered as a lobbyist under the local law.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The local law shall prohibit nonelected local officials and local employees from accepting gifts from persons regulated by or contracting with the local entity with which the nonelected local official or local employee is affiliated.</text> </paragraph> <paragraph num="(4)"> <text>The local law shall define “gift”:</text> <paragraph num="(a)"> <text>To include the transfer of anything of economic value, regardless of the form, without adequate and lawful consideration; and</text> </paragraph> <paragraph num="(b)"> <text>To exclude contributions as defined in Election Law Article, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The local law may:</text> <paragraph num="(a)"> <text>Include exceptions similar to the exceptions included in General Provisions Article, §5-505, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(b)"> <text>Include provisions to allow the local agency responsible for implementing the local ethics law to grant exceptions and exemptions from the gift acceptance prohibitions similar to the exception and exemption authority granted to the State Ethics Commission in General Provisions Article, §5-505, Annotated Code of Maryland.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(I)"> <text>An official or employee may not retaliate against an individual for reporting or participating in an investigation of a potential violation of the local ethics law or ordinance.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Financial Disclosure."> <paragraph num="A."> <text>Unless the Commission grants a county or municipality a modification or exemption as provided in COMAR 19A.04.03.03 in accordance with General Provisions Article, §§5-209 and 5-809, Annotated Code of Maryland, as applicable, the local law shall include financial disclosure requirements as described in this regulation.</text> </paragraph> <paragraph num="B."> <text>Elected Local Officials.</text> <paragraph num="(1)"> <text>For elected local officials, the local law shall include financial disclosure requirements for elected local officials that are at least equivalent to the requirements in General Provisions Article, Title 5, Subtitle 6, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>The local law shall require:</text> <paragraph num="(a)"> <text>An elected local official who is appointed to fill a vacancy in an office and who has not already filed a statement for the preceding calendar year to file a financial disclosure statement within 30 days of appointment for the preceding calendar year;</text> </paragraph> <paragraph num="(b)"> <text>An elected local official who leaves office, other than by reason of death, to file a financial disclosure statement within 60 days after leaving the office for the portion of the current calendar year during which the individual held office and, if a statement has not been filed for the preceding calendar year, for the preceding calendar year; and</text> </paragraph> <paragraph num="(c)"> <text>All other elected local officials to file a financial disclosure statement on or before April 30 of each year for the preceding calendar year.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Local Employees and Nonelected Local Officials.</text> <paragraph num="(1)"> <text>Unless the Commission grants the county or municipality a modification or exemption as provided in COMAR 19A.04.03.03, in accordance with General Provisions Article, §§5-209 and 5-809, Annotated Code of Maryland, the local law shall require nonelected local officials and local employees who, acting alone or as members or employees of a local entity, have decision making authority or act as principal advisors to a person with that authority in making local policy or exercising quasi-judicial, regulatory, licensing, inspecting, or auditing functions:</text> <paragraph num="(a)"> <text>To file an annual statement, on or before a date established in the local law, disclosing gifts received from entities contracting with or regulated by the county or municipality; and</text> </paragraph> <paragraph num="(b)"> <text>To file a statement disclosing interests that raise conflicts of interest or potential conflicts of interest in connection with a specific proposed action by the employee or official, sufficiently in advance of the action to provide adequate disclosure to the public.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A local law may require local employees and nonelected local officials to file financial disclosure statements disclosing the information that local elected officials are required to disclose under §B of this regulation.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Candidates to Be Elected Local Officials.</text> <paragraph num="(1)"> <text>The local law shall require candidates to be elected local officials to file financial disclosure statements disclosing the same information elected local officials are required to disclose under §B of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>The local law shall require that candidates to be elected local officials file required financial disclosure statements no later than the filing of the certificates of candidacy for the positions and on or before April 30 of each subsequent year until the election.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The local law shall provide that financial disclosure statements filed under the local law are public records and are available for public inspection and copying.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Lobbying."> <paragraph num="A."> <text>Unless the Commission grants a county or municipality a modification or exemption as provided in COMAR 19A.04.03.03, the local law shall include lobbying provisions as described in this regulation.</text> </paragraph> <paragraph num="B."> <text>Lobbying Registration.</text> <paragraph num="(1)"> <text>To be substantially similar to the Public Ethics Law, the local law shall require, at a minimum, that a person who provides elected local officials, appointed officials, or employees with food, entertainment, or other gifts exceeding an amount specified in the local law during a period specified in the local law in connection with efforts to influence official local actions to register as a lobbyist with the agency responsible for implementing the local law on the form provided by that agency.</text> </paragraph> <paragraph num="(2)"> <text>The local law shall require that a lobbyist registration shall:</text> <paragraph num="(a)"> <text>Identify the lobbyist, the subject matters on which the lobbyist will lobby, and any other person for whom the lobbyist lobbies; and</text> </paragraph> <paragraph num="(b)"> <text>Cover a defined period of time, as specified in the local law.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>The local law shall require periodic disclosure, including identification of recipients, of food, entertainment, and gifts to elected local officials, nonelected local officials, and local employees, from a lobbyist when the cumulative value of the gifts exceeds an amount specified in the local law.</text> </paragraph> <paragraph num="D."> <text>A local law may adopt provisions similar to the lobbying provisions of General Provisions Article, Title 5, Subtitle 7, Annotated Code of Maryland, including:</text> <paragraph num="(1)"> <text>Compensation-based registration criteria, a requirement to report compensation received by a lobbyist for lobbying activities, and rules distinguishing between executive and legislative lobbying efforts;</text> </paragraph> <paragraph num="(2)"> <text>Lobbying registration and reporting requirements for lobbying related to regulations, executive orders, and procurement; and</text> </paragraph> <paragraph num="(3)"> <text>Registration requirements similar to General Provisions Article, §5-702(1), Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="E."> <text>To be substantially similar to the Public Ethics Law, the local law shall provide that lobbying registrations and reports are public records and are available for public inspection and copying.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Enforcement."> <paragraph num="A."> <text>A local law shall include sanctions for violations of the substantive provisions of the law.</text> </paragraph> <paragraph num="B."> <text>Consistent with local power and authority, enforcement provisions may include:</text> <paragraph num="(1)"> <text>Civil fines;</text> </paragraph> <paragraph num="(2)"> <text>Cease and desist orders to enjoin continuation of violations;</text> </paragraph> <paragraph num="(3)"> <text>Administrative and personnel sanctions;</text> </paragraph> <paragraph num="(4)"> <text>Reprimands;</text> </paragraph> <paragraph num="(5)"> <text>Late fees;</text> </paragraph> <paragraph num="(6)"> <text>Criminal sanctions; and</text> </paragraph> <paragraph num="(7)"> <text>Other sanctions as appropriate in the local jurisdiction.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§5-206 and 5-209 and Title 5, Subtitle 8, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: September 14, 1981 (8:18 Md. R. 1481)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02A and B amended effective January 20, 1992 (19:1 Md. R. 34)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03A amended effective January 20, 1992 (19:1 Md. R. 34)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04B amended effective January 20, 1992 (19:1 Md. R. 34)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05C amended effective January 20, 1992 (19:1 Md. R. 34)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.07 repealed and new Regulations .01—.07 adopted effective April 18, 2011 (38:8 Md. R. 508)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04A amended effective January 16, 2017 (44:1 Md. R. 12)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04G amended effective February 7, 2022 (49:3 Md. R. 138)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04H amended effective July 17, 2017 (44:14 Md. R. 656)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04I repealed effective January 16, 2017 (44:1 Md. R. 12)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04I adopted effective February 7, 2022 (49:3 Md. R. 138)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05A amended effective January 16, 2017 (44:1 Md. R. 12)</annotation> </annotations> </chapter> <chapter num="03" heading="Review Procedures"> <regulation prefix="Regulation" num=".01" heading="Certification and Submission to the Commission."> <paragraph num="A."> <text>On or before October 1 of each year, the local ethics commission or other appropriate entity of a county or municipality shall certify to the Commission on the form provided by the Commission that the county or municipality is in compliance with COMAR 19A.04.01.03 and General Provisions Article, §5-807, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>In addition to the annual certification required by §A of this regulation, a county or municipality shall submit promptly a copy of any new local law or amendments or additions to a local law to the Commission for the Commission's review and approval.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Commission Review of Local Laws."> <paragraph num="A."> <text>A county or municipality may submit proposed ethics provisions and amendments to the Commission for review and comment prior to final enactment.</text> </paragraph> <paragraph num="B."> <text>The Commission shall review all finally enacted laws submitted to the Commission and shall determine if the local law meets the requirements of this subtitle and General Provisions Article, Title 5, Subtitle 8, Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>In determining whether a local law meets the statutory requirements for elected local officials and for being similar to the Public Ethics Law, the Commission shall apply the criteria of COMAR 19A.04.02 and General Provisions Article, Title 5, Subtitle 8, Annotated Code of Maryland.</text> </paragraph> <paragraph num="D."> <text>If the Commission determines that a local law does not meet the requirements of this subtitle and General Provisions Article, Title 5, Subtitle 8, Annotated Code of Maryland, the Commission shall notify the county or municipality of the determination and Commission staff shall assist the local entity in developing local provisions that comply with these requirements.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Exemptions and Modifications."> <paragraph num="A."> <text>Exemption and Modification Requests.</text> <paragraph num="(1)"> <text>Request for a Modification or Exemption.</text> <paragraph num="(a)"> <text>A county may request a modification of the requirements of COMAR 19A.04.02 when appropriate based on clearly demonstrable local circumstances.</text> </paragraph> <paragraph num="(b)"> <text>A municipality may request a modification of or an exemption from the requirements of COMAR 19A.04.02 when appropriate based on clearly demonstrable local circumstances.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Commission Review of Exemption and Modification Requests.</text> <paragraph num="(a)"> <text>The Commission may grant exemptions from and modifications to the requirements of COMAR 19A.04.02 as provided in this regulation.</text> </paragraph> <paragraph num="(b)"> <text>The Commission may not grant a county:</text> <paragraph num="(i)"> <text>An exemption from the requirement that a county adopt a local law; or</text> </paragraph> <paragraph num="(ii)"> <text>A modification to the requirements of COMAR 19A.04.02 for elected local officials.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>When demonstrable local circumstances justify departure from the basic elements of the Public Ethics Law, the Commission may grant a county or a municipality a modification to the requirements of COMAR 19A.04.02.</text> </paragraph> <paragraph num="(d)"> <text>Commission Review of Municipality Exemption Requests.</text> <paragraph num="(i)"> <text>The Commission may grant a municipality an exemption from the requirements of COMAR 19A.04.02 if because of the size of the municipality the application of all or any portion of COMAR 19A.04.02 and the Public Ethics Law would constitute an unreasonable invasion of privacy, would significantly reduce the availability of qualified persons for public service, and is not necessary to preserve the purposes of the Public Ethics Law.</text> </paragraph> <paragraph num="(ii)"> <text>In considering whether the size of a municipality justifies an exemption or modification, the Commission shall consider the population of the municipality and other factors relating to size, including the number of public employees, the type and number of government functions performed by the municipality, and the size of the municipal budget.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Exemptions and Modifications — Duration and Review Procedures.</text> <paragraph num="(1)"> <text>Any exemption or modification granted to a county or municipality shall remain in effect until:</text> <paragraph num="(a)"> <text>The Commission determines that the original determination was in error; or</text> </paragraph> <paragraph num="(b)"> <text>The county or municipality has substantially changed since the exemption or modification was granted.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A county or municipality may request a change in its exemption status at any time by submitting a written request to the Commission.</text> </paragraph> <paragraph num="(3)"> <text>The Commission may review the status of all municipal exemptions and modifications at the end of each alternating decennial census to determine if any municipal exemption or modification will be reconsidered based on the information available at that time.</text> </paragraph> <paragraph num="(4)"> <text>If the Commission preliminarily determines that an existing exemption or modification should be reviewed or reconsidered, the Commission shall notify the county or municipality at least 60 days before Commission review or reconsideration.</text> </paragraph> <paragraph num="(5)"> <text>A county or municipality may:</text> <paragraph num="(a)"> <text>Present information or views regarding an exemption or modification to the Commission in writing; and</text> </paragraph> <paragraph num="(b)"> <text>Appear before the Commission at the request of the county or municipality or at the request of the Commission.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Members of the public may present views or information in writing.</text> </paragraph> <paragraph num="(7)"> <text>The Commission shall:</text> <paragraph num="(a)"> <text>Make decisions regarding exemptions and modification in open public meetings; and</text> </paragraph> <paragraph num="(b)"> <text>Advise counties and municipalities of decisions regarding exemptions and modifications in writing.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Enforcement."> <paragraph num="A."> <text>The Commission and its staff shall make reasonable efforts to assist counties and municipalities in developing local laws that reflect the intent of the Public Ethics Law and take account of local circumstances and needs in avoiding conflicts of interest within that jurisdiction.</text> </paragraph> <paragraph num="B."> <text>Nonconformance Remedies.</text> <paragraph num="(1)"> <text>If the Commission determines that a county or municipality has not complied with and has not made good faith efforts toward compliance with the requirements of the Public Ethics Law, the Commission may issue a public notice:</text> <paragraph num="(a)"> <text>Concerning the failure of compliance by the local jurisdiction; and</text> </paragraph> <paragraph num="(b)"> <text>Listing the specific areas of noncompliance in the proposed or enacted local ethics law.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If the Commission determines that a county or municipality has not complied with the requirements of the Public Ethics Law, the Commission may seek appropriate relief in a court exercising equity jurisdiction in the county or city having proper venue for the purposes of requiring compliance with the Public Ethics Law.</text> </paragraph> <paragraph num="(3)"> <text>A court may grant any available equitable relief, including imposition of a model law developed by the Commission on the local jurisdiction.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§5-206 and 5-209, and Title 5, Subtitle 8, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: September 14, 1981 (8:18 Md. R. 1481)</annotation> <annotation type="History" subtype="Administrative History">Appendixes A and B amended effective March 29, 1982 (9:6 Md. R. 615)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective January 20, 1992 (19:1 Md. R. 34)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02A and E amended effective January 20, 1992 (19:1 Md. R. 34)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective January 20, 1992 (19:1 Md. R. 34)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04B amended effective January 20, 1992 (19:1 Md. R. 34)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.04 repealed and new Regulations .01—.04 adopted effective April 18, 2011 (38:8 Md. R. 508)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01A amended effective January 16, 2017 (44:1 Md. R. 12)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective February 16, 2026 (53:3 Md. R. 123)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective May 25, 2015 (42:10 Md. R. 685)</annotation> <annotation type="History" subtype="Administrative History">Appendixes A and B amended effective February 16, 2026 (53:3 Md. R. 123)</annotation> </annotations> </chapter> <chapter num="04" heading="Model Laws"> <regulation prefix="Regulation" num=".01" heading="Model Laws."> <text>The model local ethics laws in Appendices A and B to this subtitle are established as alternative model provisions developed by the Commission under General Provisions Article, §5-205, Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Effect of Models."> <paragraph num="A."> <text>Status.</text> <paragraph num="(1)"> <text>The model local laws in Appendices A and B to this subtitle are informational and examples only.</text> </paragraph> <paragraph num="(2)"> <text>The Commission shall determine whether a county or municipal law complies with the requirements of General Provisions Article, Title 5, Subtitle 8, Annotated Code of Maryland, based on the criteria and guidelines set forth in COMAR 19A.04.02 and the Public Ethics Law.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Compliance with Public Ethics Law Requirements.</text> <paragraph num="(1)"> <text>The model laws in Appendices A and B comply with the requirements of General Provisions Article, Title 5, Subtitle 8, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>The model conflict of interest and financial disclosure provisions for elected officials in Appendices A and B are equivalent to the requirements of General Provisions Article, Title 5, Subtitles 5 and 6, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Applicability.</text> <paragraph num="(1)"> <text>The model law in Appendix A may be viewed as a guide for larger counties and municipalities.</text> </paragraph> <paragraph num="(2)"> <text>The model law in Appendix B may be viewed as a guide for smaller counties and municipalities.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§5-205 and 5-206, and Title 5, Subtitle 8, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 18, 2011 (38:8 Md. R. 508)</annotation> </annotations> </chapter> </subtitle> <subtitle num="05" heading="Board of Education Ethics Regulations"> <chapter num="01" heading="General Provisions"> <regulation prefix="Regulation" num=".01" heading="Applicability."> <text>This subtitle applies to each board of education in each county of the State and to the Baltimore City Board of School Commissioners.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this subtitle, the following words have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Defined Terms.</text> <paragraph num="(1)"> <text>“Board of education” means the local board of education of a county and includes the Baltimore City Board of School Commissioners.</text> </paragraph> <paragraph num="(2)"> <text>“Candidate to be a member of the school board” means a person who has filed for election to an elected school board.</text> </paragraph> <paragraph num="(3)"> <text>“County” includes Baltimore City.</text> </paragraph> <paragraph num="(4)"> <text>“Designated second home” means:</text> <paragraph num="(a)"> <text>If an individual owns one second home, the individual’s second home; or</text> </paragraph> <paragraph num="(b)"> <text>If an individual owns more than one second home, any one second home the individual identifies to the Commission as the individual’s designated second home.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>“Home address” means the address of an individual’s:</text> <paragraph num="(a)"> <text>Principal home; and</text> </paragraph> <paragraph num="(b)"> <text>Designated second home, if any.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>“Member of the school board” means an elected or appointed member of a board of education.</text> </paragraph> <paragraph num="(7)"> <text>“Principal home” means the sole residential property that an individual occupies as the individual’s primary residence, whether owned or rented by the individual.</text> </paragraph> <paragraph num="(8)"> <text>“Quasi-governmental entity” means an entity that is created by State statute, that performs a public function, and that is supported in whole or in part by the State but is managed privately.</text> </paragraph> <paragraph num="(9)"> <text>“School employee” means an employee of the board of education or the county school system.</text> </paragraph> <paragraph num="(10)"> <text>School Official.</text> <paragraph num="(a)"> <text>“School official” means an employee or other official of the board of education or the school system.</text> </paragraph> <paragraph num="(b)"> <text>“School official” does not include a member of the school board.</text> </paragraph> </paragraph> <paragraph num="(11)"> <text>“School system” means the educational system under the authority of a board of education.</text> </paragraph> <paragraph num="(12)"> <text>“Second home” means a residential property that:</text> <paragraph num="(a)"> <text>An individual occupies for some portion of the filing year; and</text> </paragraph> <paragraph num="(b)"> <text>Is not a rental property or a time share.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="General Requirements."> <paragraph num="A."> <text>Conflicts of Interest and Financial Disclosure Regulations — Required for Members of and Candidates for School Board.</text> <paragraph num="(1)"> <text>A board of education shall adopt conflict of interest regulations applicable to members of the school board.</text> </paragraph> <paragraph num="(2)"> <text>A board of education shall adopt financial disclosure regulations applicable to members of the school board and, if the board is an elected board under Education Article, Title 3, Subtitle 1, Part III, Annotated Code of Maryland, to candidates to be members of the school board.</text> </paragraph> <paragraph num="(3)"> <text>The regulations adopted under this section for members of the school board and candidates to be members of the school board shall be at least equivalent to the requirements for officials contained in General Provisions Article, Title 5, Subtitles 5 and 6, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Conflicts of Interest and Financial Disclosure Regulations for School Officials and Employees and Lobbying Disclosure Regulation — Permissible.</text> <paragraph num="(1)"> <text>A board of education may adopt ethics regulations under this subtitle covering conflicts of interest and financial disclosure for school officials and school employees and covering lobbying disclosure similar to the Public Ethics Law.</text> </paragraph> <paragraph num="(2)"> <text>If a board of education does not adopt ethics regulations that are approved by the Commission as similar to the Public Ethics Law under COMAR 19A.05.03.02, its school officials and its school employees are subject to the local ethics laws in the county in which the board is located, adopted under General Provisions Article, Title 5, Subtitle 8, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §5-206 and Title 5, Subtitle 8, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: October 24, 1983 (10:21 Md. R. 1903)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective April 13, 1992 (19:7 Md. R. 746)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.04 repealed and new Regulations .01—.03 adopted effective April 18, 2011 (38:8 Md. R. 509)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective December 7, 2017 (44:24 Md. R. 1151); February 7, 2022 (49:3 Md. R. 138)</annotation> </annotations> </chapter> <chapter num="02" heading="Review Criteria"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>The provisions of this chapter reflect the minimum elements that shall be addressed by board of education regulations in order for the Commission to view the regulations as:</text> <paragraph num="(1)"> <text>Similar or substantially similar to the Public Ethics Law; and</text> </paragraph> <paragraph num="(2)"> <text>For members of the school board and candidates to be members of the school board, at least equivalent to the requirements of General Provisions Article, Title 5, Subtitles 5 and 6, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A board of education may adopt regulations more stringent than General Provisions Article, Title 5, Subtitles 5 and 6, Annotated Code of Maryland, based on local circumstances and where more stringent provisions are necessary to prevent conflicts of interest in that school system.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Coverage."> <paragraph num="A."> <text>To be viewed as similar to the Public Ethics Law, all members of the school board, school officials, and school employees shall be subject to the board of education’s ethics regulations.</text> </paragraph> <paragraph num="B."> <text>Conflicts of Interest.</text> <paragraph num="(1)"> <text>A board of education’s ethics regulations shall include conflict of interest provisions for members of the school board and candidates to be members of the school board equivalent to or exceeding the requirements of the Public Ethics Law, General Provisions Article, Title 5, Subtitle 5, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>A board of education’s ethics regulations shall include conflict of interest provisions for school officials and school employees.</text> </paragraph> <paragraph num="(3)"> <text>A board of education may adopt conflict of interest provisions for school officials and school employees that are identical to the conflict of interest provisions for members of the school board.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Financial Disclosure.</text> <paragraph num="(1)"> <text>A board of education’s ethics regulations shall include financial disclosure provisions for members of the school board and candidates to be members of the school board equivalent to or exceeding the requirements for officials required in General Provisions Article, Title 5, Subtitle 6, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>School Officials and Employees.</text> <paragraph num="(a)"> <text>Except as provided in §C(2)(b) of this regulation, a board of education’s ethics regulations shall include financial disclosure provisions for school officials and school employees.</text> </paragraph> <paragraph num="(b)"> <text>Under General Provisions Article, §15-813(a)(2)(ii), Annotated Code of Maryland, a board of education’s financial disclosure regulations may not be applied to a classroom teacher unless the teacher is assigned other duties not normally expected of classroom teachers.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Except as provided in §C(2)(b) of this regulation, a board of education’s ethics regulations may include financial disclosure requirements for school officials and school employees identical to the requirements for members of the board of education.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Administration and Enforcement."> <text>A board of education’s ethics regulations shall:</text> <paragraph num="A."> <text>Identify or establish an entity responsible for implementing the regulations;</text> </paragraph> <paragraph num="B."> <text>Within the board of education’s administrative authority, provide a mechanism to issue advisory opinions as to the applicability of the regulations to members of the school board, school officials, school employees, and other persons subject to the provisions of the regulations;</text> </paragraph> <paragraph num="C."> <text>Establish a mechanism for processing and making determinations in response to complaints alleging violations of the regulations; and</text> </paragraph> <paragraph num="D."> <text>Within the board of education’s administrative authority, include sanctions for enforcement of the substantive provisions.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Conflicts of Interest."> <paragraph num="A."> <text>To be equivalent to the requirements of and similar to the Public Ethics Law, a board of education’s ethics regulations shall address conflict of interest restrictions as described in this regulation.</text> </paragraph> <paragraph num="B."> <text>Disqualification.</text> <paragraph num="(1)"> <text>The regulations shall include, for members of the school board, the disqualification and participation restrictions included in General Provisions Article, §5-501, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>The local law shall include a disqualification provision prohibiting a school official or school employee from participating, as a school official or school employee, in a school system matter that would have a direct economic impact, distinct from the impact on the public at large, on the school official or school employee, or that, to the knowledge of the school official or school employee would have a direct economic impact on:</text> <paragraph num="(a)"> <text>The spouse, parent, sibling, or child of the school official or school employee; or</text> </paragraph> <paragraph num="(b)"> <text>A business entity with which any of the following is affiliated:</text> <paragraph num="(i)"> <text>The school official or school employee; or</text> </paragraph> <paragraph num="(ii)"> <text>The spouse, parent, sibling, or child of the school official or employee.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>The regulations may include:</text> <paragraph num="(a)"> <text>A provision that allows participation when the potential conflict is disclosed and when no other school official or school employee may act;</text> </paragraph> <paragraph num="(b)"> <text>A provision which allows participation when the potential conflict is disclosed and disqualification would result in lack of board quorum; or</text> </paragraph> <paragraph num="(c)"> <text>Exception provisions allowing the entity implementing the law to waive the disqualification requirement when no conflict of interest exists or when the interest is too remote and insubstantial to affect the integrity of the public actions of the official or employee.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Outside Employment.</text> <paragraph num="(1)"> <text>The regulations shall include, for members of the school board, the secondary employment restrictions included in General Provisions Article, §§5-502, 5-503, and 5-504(a), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>The regulations shall prohibit, for school officials and school employees, outside employment that would impair the impartiality and independent judgment of the school official or school employee.</text> </paragraph> <paragraph num="(3)"> <text>The regulations may prohibit, for school officials and school employees, outside employment with an entity that:</text> <paragraph num="(a)"> <text>Is subject to the authority of school system or board of education; or</text> </paragraph> <paragraph num="(b)"> <text>Is negotiating or has entered a contract with or is a subcontractor on a contract with the school system or board of education.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The regulations may include provisions to allow the entity implementing the regulations to grant an exception when the outside employment would not affect the official duties of the school official or school employee.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Financial Interest Prohibitions.</text> <paragraph num="(1)"> <text>The regulations shall include, for members of the school board, the financial interest restrictions included in General Provisions Article, §§5-502, 5-503, and 5-504(a), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>The regulations may prohibit, for school officials and school employees, financial interests in an entity that:</text> <paragraph num="(a)"> <text>Is subject to the authority of the school system or board of education; or</text> </paragraph> <paragraph num="(b)"> <text>Is negotiating or has entered a contract with or is a subcontractor on a contract with the school system or board of education.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The regulations may include provisions to allow the entity implementing the regulations to grant an exception when the financial interest would not affect the official duties or the school official or school employee.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Post-Employment Restrictions.</text> <paragraph num="(1)"> <text>The regulations shall include, for former members of the school board, the post-employment restrictions included in General Provisions Article, §5-504(d), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>The regulations shall include a restriction on former school officials’ and school employees’ activities relating to cases, contracts, or other specific matters in which the former school officials or former school employees significantly participated in their school positions.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Prestige of Office.</text> <paragraph num="(1)"> <text>The regulations shall include, for members of the school board, the prestige of office restrictions included in General Provisions Article, §5-506, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>The regulations shall prohibit school officials and school employees from using their official positions or public positions for their private gain or the private gain of another.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Confidential Information.</text> <paragraph num="(1)"> <text>The regulations shall include, for members of the school board, the restrictions on the use of confidential information included in General Provisions Article, §5-507, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>The regulations shall prohibit school officials and school employees from using or disclosing, except in the discharge of an official duty, nonpublic information obtained in the course of official school duties for personal economic benefit or the economic benefit of another.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Gifts.</text> <paragraph num="(1)"> <text>The regulations shall include, for members of the school board, the gift restrictions included in General Provisions Article, §5-505, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>The regulations shall prohibit school officials and school employees from:</text> <paragraph num="(a)"> <text>Soliciting a gift; and</text> </paragraph> <paragraph num="(b)"> <text>Directly soliciting or facilitating the solicitation of a gift, on behalf of another person, from an individual registered as a lobbyist under the regulations.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The regulations shall prohibit school officials and school employees from accepting gifts from persons regulated by or contracting with the school system with which the school official or school employee is affiliated.</text> </paragraph> <paragraph num="(4)"> <text>The regulations shall define “gift”:</text> <paragraph num="(a)"> <text>To include the transfer of anything of economic value, regardless of the form, without adequate and lawful consideration; and</text> </paragraph> <paragraph num="(b)"> <text>To exclude a contribution as defined in Election Law Article, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The regulations may:</text> <paragraph num="(a)"> <text>Include exceptions similar to the exceptions included in General Provisions Article, §5-505, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(b)"> <text>Include provisions to allow the person or entity responsible for implementing the regulations to grant exceptions and exemptions from the gift acceptance prohibitions similar to the exception and exemption authority granted to the State Ethics Commission in General Provisions Article, §5-505, Annotated Code of Maryland.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Financial Disclosure."> <paragraph num="A."> <text>Members of the School Board.</text> <paragraph num="(1)"> <text>For members of the school board, the regulations shall include financial disclosure requirements that are at least equivalent to the requirements of General Provisions Article, Title 5, Subtitle 6, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>The regulations shall require:</text> <paragraph num="(a)"> <text>A member of the school board who is appointed to fill a vacancy in an office and who has not already filed a statement for the preceding calendar year to file a financial disclosure statement for the preceding calendar year within 30 days of appointment;</text> </paragraph> <paragraph num="(b)"> <text>A member of the school board who leaves office, other than by reason of death, to file a financial disclosure statement within 60 days after leaving the office for the portion of the current calendar year during which the individual held office and, if a statement has not been filed for the preceding calendar year, for the preceding calendar year; and</text> </paragraph> <paragraph num="(c)"> <text>All other members of the school board to file a financial disclosure statement for the preceding calendar year on or before April 30 of each year.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Candidates to Be Members of the School Board.</text> <paragraph num="(1)"> <text>This section only applies to a school board that is an elected board under Education Article, Title 3, Subtitle 1, Part III, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>The regulations shall require candidates to be members of the school board to file financial disclosure statements disclosing the same information members of the school board are required to disclose under §A of this regulation.</text> </paragraph> <paragraph num="(3)"> <text>The regulations shall require that candidates to be members of the school board file required financial disclosure statements no later than the filing of the certificates of candidacy for the positions and on or before April 30 of each subsequent year until the election.</text> </paragraph> </paragraph> <paragraph num="C."> <text>School Officials and School Employees.</text> <paragraph num="(1)"> <text>Except as provided in COMAR 19A.05.02.02C(2)(b), the regulations shall require school officials and school employees who, acting alone or as members or employees of a local entity, have decision making authority or act as principal advisors to a person with that authority in making school system or school board policy or exercising quasi-judicial, regulatory, licensing, inspecting, or auditing functions:</text> <paragraph num="(a)"> <text>To file an annual statement, on or before a date established in the regulations, disclosing gifts received from entities contracting with or regulated by the school board or school system; and</text> </paragraph> <paragraph num="(b)"> <text>To file a statement disclosing interests that raise conflicts of interest or potential conflicts of interest in connection with a specific proposed action by the school employee or school official, sufficiently in advance of the action to provide adequate disclosure to the public.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Except as provided in COMAR 19A.05.02.02C(2)(b), the regulations may require school employees and school officials to file financial disclosure statements disclosing the information that members of the school board are required to disclose under §A of this regulation.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The regulations shall provide that financial disclosure statements filed under the regulations are public records and are available for public inspection and copying.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Lobbying."> <paragraph num="A."> <text>Lobbying Registration.</text> <paragraph num="(1)"> <text>To be substantially similar to the Public Ethics Law, the regulations shall require, at a minimum, that a person register as a lobbyist with the entity responsible for implementing the regulations on the form provided by the entity if the person provides members of the school board, school officials, or school employees with food, entertainment, or other gifts exceeding an amount specified in the regulations during a period specified in the regulations in connection with efforts to influence official school board or school system actions.</text> </paragraph> <paragraph num="(2)"> <text>The regulations shall require that a lobbyist registration:</text> <paragraph num="(a)"> <text>Identify the lobbyist, the subject matters on which the lobbyist will lobby, and any other person for whom the lobbyist lobbies; and</text> </paragraph> <paragraph num="(b)"> <text>Cover a defined period of time, as specified in the regulations.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>The regulations shall require periodic disclosure, including identification of recipients of food, entertainment, and gifts to members of the school board, school officials, and school employees from a lobbyist when the cumulative value of the gifts exceeds an amount specified in the regulations.</text> </paragraph> <paragraph num="C."> <text>The regulations may adopt provisions similar to the lobbying provisions of General Provisions, Title 5, Subtitle 7, Annotated Code of Maryland, including:</text> <paragraph num="(1)"> <text>Compensation-based registration criteria;</text> </paragraph> <paragraph num="(2)"> <text>A requirement to report compensation received by a lobbyist for lobbying activities;</text> </paragraph> <paragraph num="(3)"> <text>Lobbying registration and reporting requirements for lobbying related to regulations and procurement; and</text> </paragraph> <paragraph num="(4)"> <text>Registration requirements similar to General Provisions Article, §5-701(1), Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="D."> <text>To be substantially similar to the Public Ethics Law, the regulations shall provide that lobbying registrations and reports are public records and are available for public inspection and copying.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§5-205 and 5-206 and Title 5, Subtitle 8, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: October 24, 1983 (10:21 Md. R. 1903)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02A amended effective April 13, 1992 (19:7 Md. R. 746)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04C amended effective April 13, 1992 (19:7 Md. R. 746)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.06 repealed and new Regulations .01—.06 adopted effective April 18, 2011 (38:8 Md. R. 509)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04H amended effective July 17, 2017 (44:14 Md. R. 656)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04I repealed effective January 16, 2017 (44:1 Md. R. 12)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06A amended effective January 16, 2017 (44:1 Md. R. 12)</annotation> <annotation type="History" subtype="Administrative History">Appendix A, Section 3 amended effective July 17, 2017 (44:14 Md. R. 656)</annotation> <annotation type="History" subtype="Administrative History">Appendix B, Section 1 amended effective July 17, 2017 (44:14 Md. R. 656)</annotation> </annotations> </chapter> <chapter num="03" heading="Review Procedures"> <regulation prefix="Regulation" num=".01" heading="Certification and Submission to the Commission."> <paragraph num="A."> <text>On or before October 1 of each year, a board of education shall certify to the Commission on the form provided by the Commission that the Board of Education is in compliance with COMAR 19A.05.01.03 and General Provisions Article, §5-816, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>In addition to the annual certification required by §A of this regulation, a board of education shall submit promptly a copy of any ethics regulations or amendments or additions to the Commission, for the Commission’s review and approval.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Commission Review of Board of Education Regulations."> <paragraph num="A."> <text>Preliminary Review by Commission.</text> <paragraph num="(1)"> <text>A board of education may submit proposed new ethics regulations and amendments to the Commission for review prior to final adoption.</text> </paragraph> <paragraph num="(2)"> <text>The Commission may provide preliminary review and comment on proposed ethics regulations and amendments to a board of education.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Commission shall review all enacted regulations and amendments and shall determine if the regulations or amendments meet the requirements of this subtitle and General Provisions Article, Title 5, Subtitle 8, Part III, Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>In determining whether a board of education’s regulations or amendments meet the statutory requirements for members of school boards and for being similar to the Public Ethics Law, the Commission shall apply the criteria of COMAR 19A.05.02 and General Provisions Article, Title 5, Subtitle 8, Part III, Annotated Code of Maryland.</text> </paragraph> <paragraph num="D."> <text>Disapproval by Commission.</text> <paragraph num="(1)"> <text>The Commission may disapprove a regulation or amendment adopted by a board of education:</text> <paragraph num="(a)"> <text>Within 60 days of submission by the board to the Commission; and</text> </paragraph> <paragraph num="(b)"> <text>Only if the Commission finds that the regulation or amendment is not in substantial compliance with this subtitle or General Provisions Article, Title 5, Subtitle 8, Part III, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If the Commission determines that a board of education’s regulations or amendments do not meet the requirements of this subtitle or General Provisions Article, Title 5, Subtitle 8, Part III, Annotated Code of Maryland, the Commission promptly shall notify the board of education of the determination, and Commission staff shall assist the board of education in developing regulations that comply with these requirements.</text> </paragraph> </paragraph> <paragraph num="E."> <text>If the Commission does not disapprove a regulation or amendments to a regulation as provided in §D of this regulation, the regulation or amendment is deemed to have been approved.</text> </paragraph> <paragraph num="F."> <text>Regulations and amendments adopted under this subtitle and General Provisions Article, Title 5, Subtitle 8, Part III, Annotated Code of Maryland, become effective 60 days after submission to the Commission unless the Commission disapproves the regulations as provided in §D of this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Enforcement."> <paragraph num="A."> <text>The Commission and its staff shall make reasonable efforts to assist a board of education in developing ethics regulations that reflect the intent of the Public Ethics Law and take account of local circumstances and needs in avoiding conflicts of interest within that jurisdiction.</text> </paragraph> <paragraph num="B."> <text>Nonconformance Remedies.</text> <paragraph num="(1)"> <text>If the Commission determines that a board of education has not complied with and has not made good faith efforts toward compliance with the requirements of the Public Ethics Law, the Commission may issue a public notice:</text> <paragraph num="(a)"> <text>Concerning the failure of compliance by the board of education; and</text> </paragraph> <paragraph num="(b)"> <text>Listing the specific areas of noncompliance in the board of education’s proposed or adopted ethics regulations.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If the Commission determines that a board of education has not complied with the requirements of the Public Ethics Law, the Commission may:</text> <paragraph num="(a)"> <text>Issue an order providing that officials and employees of the board of education are subject to the ethics laws of the county in which the board of education is located; and</text> </paragraph> <paragraph num="(b)"> <text>Seek appropriate relief in a court exercising equity jurisdiction in the county or city having proper venue for the purposes of requiring compliance with the Public Ethics Law.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A court may grant any available equitable relief, including imposition of model regulations developed by the Commission on the board of education.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§5-811—5-820, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: October 24, 1983 (10:21 Md. R. 1903)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.03 repealed and new Regulations .01—.02 adopted effective April 18, 2011 (38:8 Md. R. 509)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective February 16, 2026 (53:3 Md. R. 123)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective May 25, 2015 (42:10 Md. R. 685)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 adopted effective May 25, 2015 (42:10 Md. R. 685)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.03 repealed and new Regulations .01—.02 adopted effective April 18, 2011 (38:8 Md. R. 509)</annotation> </annotations> </chapter> <chapter num="04" heading="Model Regulations"> <regulation prefix="Regulation" num=".01" heading="Model Regulations."> <text>The model board of education ethics regulations in Appendices A and B to this subtitle are established as alternative model provisions developed by the Commission under General Provisions Article, §5-205, Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Effect of Models."> <paragraph num="A."> <text>Status.</text> <paragraph num="(1)"> <text>The model board of education ethics regulations in Appendices A and B to this subtitle are informational and examples only.</text> </paragraph> <paragraph num="(2)"> <text>The Commission shall determine whether a board of education’s ethics regulations comply with the requirements of General Provisions Article, Title 5, Subtitle 8, Annotated Code of Maryland, based on the criteria and guidelines set forth in COMAR 19A.05.02 and the Public Ethics Law.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Compliance with Public Ethics Law Requirements.</text> <paragraph num="(1)"> <text>The model regulations in Appendices A and B comply with the requirements of General Provisions Article, Title 5, Subtitle 8, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>The model conflict of interest and financial disclosure provisions for members of the school board in Appendices A and B are equivalent to the requirements of General Provisions Article, Title 5, Subtitles 5 and 6, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Applicability.</text> <paragraph num="(1)"> <text>The model regulations in Appendix A may be viewed as a guide for boards of education located in larger counties.</text> </paragraph> <paragraph num="(2)"> <text>The model regulations in Appendix B may be viewed as a guide for boards of education located in smaller counties.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§5-205 and 5-206, and Title 5, Subtitle 8, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 18, 2011 (38:8 Md. R. 509)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.02 repealed and new Regulations .01 and .02 adopted effective May 25, 2015 (42:10 Md. R. 685)</annotation> </annotations> </chapter> </subtitle> <subtitle num="06" heading="Blind Trusts"> <chapter num="01" heading="General Provisions"> <regulation prefix="Regulation" num=".01" heading="Purpose and Scope."> <paragraph num="A."> <text>General Provisions Article, §5-501, Annotated Code of Maryland, establishes nonparticipation requirements for employees and officials of the State when the official matter is one in which they have an interest or which involves as a party a business entity with which they have certain economic relationships. General Provisions Article, §5-502, prohibits these officials and employees from having a financial interest in an entity that is subject to their authority or that of an agency with which they are affiliated or that has or is negotiating a contract with the agency. Exception from the prohibitions of General Provisions Article, §§5-501 and 5-502, Annotated Code of Maryland, is provided for persons under the authority of the State Ethics Commission pursuant to regulations of the Commission where it determines that there is no conflict or appearance of conflict, and where the exception would not be inconsistent with the purposes of the Law.</text> </paragraph> <paragraph num="B."> <text>The purpose of this subtitle is to define the circumstances under which a certified blind trust or an excepted blind trust would be viewed by the Commission as meeting the statutory criteria for exception from these conflict of interest provisions. An underlying concept is that, in situations where a trust is created by an independent third party or there are diversified holdings in a trust created by a government official or employee, and where the official or employee does not know the identity of the financial interests and does not control these interests, then his or her official actions would not be influenced or appear to be influenced by private interests. Thus, the general public policy goal to be achieved through reliance on a blind trust is an actual “blindness” or lack of knowledge or control by the official or employee with respect to the interests held in trust.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Applicability and Definitions."> <paragraph num="A."> <text>The regulations in this subtitle apply to an individual serving as an official or employee in State government, as defined in §G of this regulation.</text> </paragraph> <paragraph num="B."> <text>In addition to §§C—H of this regulation, the definitions set forth in COMAR 19A.01.02.02 have the meanings indicated where they appear in this subtitle.</text> </paragraph> <paragraph num="C."> <text>“Certified blind trust” means a blind trust arrangement for the management of interests held by an official or employee that is determined by the Commission to meet the criteria for certification under COMAR 19A.06.02.</text> </paragraph> <paragraph num="D."> <text>“Excepted blind trust” means a trust that is determined by the Commission to qualify for exception pursuant to COMAR 19A.06.02.05.</text> </paragraph> <paragraph num="E."> <text>“Holding” includes shares of stock or similar securities or interests.</text> </paragraph> <paragraph num="F."> <text>“Interested party” means an official or employee covered by these regulations, and a member of the official's or employee's household as defined in COMAR 19A.01.01.02R.</text> </paragraph> <paragraph num="G."> <text>“Official or employee” includes State employees, public officials, and State officials, except State officials in the Legislative and Judicial branches of State government.</text> </paragraph> <paragraph num="H."> <text>“Trustee” includes a financial institution or other qualifying entity named in a trust instrument and also any officer, director, or employee of the institution or entity.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Effect of Blind Trust Certification."> <paragraph num="A."> <text>An interest is not viewed as held by an official or employee for purposes of General Provisions Article, Title 5, Annotated Code of Maryland, if the interest of the official or employee is included in a certified blind trust as set forth in this subtitle.</text> </paragraph> <paragraph num="B."> <text>An interest covered by §A of this regulation is excepted from:</text> <paragraph num="(1)"> <text>The requirements and limitations of the disqualification requirement of General Provisions Article, §5-501, Annotated Code of Maryland, and the interest ownership prohibitions of General Provisions Article, §5-502, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(2)"> <text>The financial disclosure requirements of General Provisions Article, Title 5, Subtitle 6, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§5-206, 5-501, 5-502, and 5-608, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: May 27, 1991 (18:10 Md. R. 1118)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.03 amended effective April 7, 1997 (24:7 Md. R. 554)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03A amended effective January 16, 2017 (44:1 Md. R. 12)</annotation> </annotations> </chapter> <chapter num="02" heading="Criteria for Certification"> <regulation prefix="Regulation" num=".01" heading="Substantive Requirements for Certification."> <paragraph num="A."> <text>A trust that complies with the appropriate procedural requirements of COMAR 19A.06.03, and that meets the substantive requirements set forth in Regulations .02—.04 of this chapter, may be certified by the Commission as a blind trust for purposes of COMAR 19A.06.01.03.</text> </paragraph> <paragraph num="B."> <text>A blind trust arrangement by an official or employee will be considered for certification only if in connection with the submission the official or employee certifies that:</text> <paragraph num="(1)"> <text>All of the official's or employee's holdings at the time the trust is established will be subject to the trust unless otherwise specifically approved by the Commission; and</text> </paragraph> <paragraph num="(2)"> <text>No new holdings will be purchased directly by the official or employee except as expressly approved by the Commission.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Nature of Assets."> <paragraph num="A."> <text>A trust shall be certified only if the holdings transferred to it by the official or employee meet the requirements of §B of this regulation.</text> </paragraph> <paragraph num="B."> <text>A trust shall be:</text> <paragraph num="(1)"> <text>Well diversified.</text> <paragraph num="(a)"> <text>In evaluating the diversification of a portfolio the Commission shall consider whether the assets are sufficiently diversified to support a conclusion of blindness and lack of appearance of conflict.</text> </paragraph> <paragraph num="(b)"> <text>In making the determination the Commission shall consider the:</text> <paragraph num="(i)"> <text>Number of holdings;</text> </paragraph> <paragraph num="(ii)"> <text>Share of the portfolio in any particular holding or industry;</text> </paragraph> <paragraph num="(iii)"> <text>Value of each holding; and</text> </paragraph> <paragraph num="(iv)"> <text>Percentage of ownership in the entity the official's or employee's holding represents.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>The Commission may not approve a portfolio for establishment of a blind trust whose assets exceed $350,000, when more than 20 percent of the trust value is held in a single security, or more than 30 percent is held in a single industry or economic sector, unless these particular holdings present no conflict of interest when the trust is created. The Commission may consider a lesser degree of diversification when smaller trusts make these percentages impractical and when the total circumstances warrant a finding of diversification.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Readily marketable. In evaluating the marketability of holdings the Commission shall consider the presence of a market for the holdings, including whether:</text> <paragraph num="(a)"> <text>They are traded on a public exchange;</text> </paragraph> <paragraph num="(b)"> <text>The prices are quoted in papers of general circulation;</text> </paragraph> <paragraph num="(c)"> <text>The quantity of the holdings does not limit the possibility of sale; and</text> </paragraph> <paragraph num="(d)"> <text>The records of the holding for the entity show a ready market for the securities.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Not a holding in an entity where the official or employee has as his primary State function regulatory or procurement duties relating to the entity, unless, due to the size of the holdings and the nature of the official's or employee's duties, a conflict of interest or appearance of conflict is unlikely.</text> </paragraph> <paragraph num="(4)"> <text>Free of any restriction or encumbrance that would interfere with the trustee's ability to manage and control them as required by Regulation .04 of this chapter.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Qualification of the Trustee."> <paragraph num="A."> <text>For a trust to qualify for certification the trustee shall be independent of and unassociated with the official or employee in both reality and appearance.</text> </paragraph> <paragraph num="B."> <text>The trustee:</text> <paragraph num="(1)"> <text>Shall be a financial institution or an ongoing organization that is generally actively involved in trust management activities;</text> </paragraph> <paragraph num="(2)"> <text>May not have managerial employees or persons having duties relating to the trust that are partners, joint venturers, employee/consultants or otherwise engaged in business ventures with any interested party;</text> </paragraph> <paragraph num="(3)"> <text>May not have an employee that is a spouse, parent, child, brother, or sister of any interested party;</text> </paragraph> <paragraph num="(4)"> <text>May not have any current accounts, loans, or other financial transactions with any interested party;</text> </paragraph> <paragraph num="(5)"> <text>During the period of the existence of the trust, may not make any institutional political contributions to the official or employee, or have any managerial employee or individual having duties relating to the trust actively involved with any political campaign of any interested party;</text> </paragraph> <paragraph num="(6)"> <text>May not be subject in any significant way to the ongoing regulatory or contractual authority or control of the official or employee, if the official's or employee's ongoing functions are regulatory or contractual; and</text> </paragraph> <paragraph num="(7)"> <text>Shall comply, initially and as a continuing matter, with the procedural requirements set forth in COMAR 19A.06.03.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Features of the Trust."> <paragraph num="A."> <text>To be certified as a blind trust pursuant to this subtitle, a trust shall be established by a trust instrument containing the provisions in §§B—H of this regulation.</text> </paragraph> <paragraph num="B."> <text>The trustee shall have absolute discretion and authority to manage and control the trust assets, including the authority to purchase and sell trust holdings.</text> </paragraph> <paragraph num="C."> <text>An interested party may not have the ability to learn of the assets of the trust or the actions of the trustee, and may not receive reports on the assets or income except those necessary (without identifying any particular asset or holding) for filing personal income tax returns.</text> </paragraph> <paragraph num="D."> <text>Tax returns of the trust shall be prepared and filed by the trustee and may not be available to any interested party.</text> </paragraph> <paragraph num="E."> <text>There may not be direct or indirect communication between the trustee and any interested party except directions regarding the disposition of income or general decisions regarding the approach of the trust as a short-term income or long-term growth approach. Any permitted communications shall be in writing, with copies provided to the Commission.</text> </paragraph> <paragraph num="F."> <text>An interested party may not seek to obtain information regarding the trust or its assets.</text> </paragraph> <paragraph num="G."> <text>Securities may not be purchased that would result in the holdings in any entity exceeding 20 percent of the total trust assets, or any industry or economic sector exceeding 30 percent of the total trust assets, except when the particular holdings present no conflict of interest under General Provisions Article, Title 5, Annotated Code of Maryland.</text> </paragraph> <paragraph num="H."> <text>The trust instrument shall provide for termination of the trust at the earliest of the following:</text> <paragraph num="(1)"> <text>Upon termination of the official's or employee's State service;</text> </paragraph> <paragraph num="(2)"> <text>In case of the official's or employee's death or incompetence;</text> </paragraph> <paragraph num="(3)"> <text>Upon revocation of trust certification by the Commission pursuant to COMAR 19A.06.03.04; or</text> </paragraph> <paragraph num="(4)"> <text>For cause at the request of the official or employee and with the prior approval of the Commission.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§5-206, 5-501, 5-502, and 5-608, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: May 27, 1991 (18:10 Md. R. 1118)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective April 7, 1997 (24:7 Md. R. 554)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04H amended effective January 16, 2017 (44:1 Md. R. 12)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 adopted effective April 7, 1997 (24:7 Md. R. 554)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 repealed effective January 16, 2017 (44:1 Md. R. 12)</annotation> </annotations> </chapter> <chapter num="03" heading="Procedural Requirements"> <regulation prefix="Regulation" num=".01" heading="Compliance with Procedural Requirements for Certified Blind Trusts."> <text>For a trust to receive and retain certification as a certified blind trust in accordance with this subtitle, the trust shall be presented for certification in accordance with the procedures set forth in Regulations .02—.06 of this chapter. Interested parties and the trustee shall comply with the continuing monitoring and compliance requirements of this chapter.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Certification."> <paragraph num="A."> <text>A request for certification of a blind trust shall be in writing addressed to the Commission.</text> </paragraph> <paragraph num="B."> <text>Before a trust can be certified, each proposed trust document and proposed trustee shall be approved by the Commission.</text> </paragraph> <paragraph num="C."> <text>Appropriate documentation to establish the independence of the trustee shall be provided to the Commission with the request for certification, on an executed Certificate of Independence form to be established by the Commission.</text> </paragraph> <paragraph num="D."> <text>A trust shall be certified in writing by the Commission based upon a determination that:</text> <paragraph num="(1)"> <text>The trust is in compliance with the provisions of this subtitle;</text> </paragraph> <paragraph num="(2)"> <text>The trust meets the statutory criteria of General Provisions Article, §§5-501 and 5-502, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(3)"> <text>Reliance on the trust by the official or employee is not contrary to the purposes of General Provisions Article, Title 5, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Trust Implementation and Monitoring."> <paragraph num="A."> <text>Within 30 days after certification of a trust by the Commission, the official or employee shall file with the Commission a:</text> <paragraph num="(1)"> <text>Certified copy of the executed trust instrument of the trust; and</text> </paragraph> <paragraph num="(2)"> <text>List of the holdings transferred to the trust with the value of each as of the date of transfer.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The list of holdings provided pursuant to §A(2) of this regulation shall be available for public inspection and copying in accordance with General Provisions Article, §5-606, Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>The trustee shall, within 30 days after the end of any calendar year in which the trust is in effect, submit a Certificate of Compliance to the Commission on a form established by the Commission certifying the trust's continued compliance with the provisions of this chapter.</text> </paragraph> <paragraph num="D."> <text>The trustee shall maintain the books of account and other records of the trust and copies of the trust's tax returns, and make them available for inspection and copying at the times requested by the Commission or the Commission's staff.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Revocation of Certification."> <paragraph num="A."> <text>The Commission shall maintain a continued assessment of the appropriateness of any approval of a trustee or certification of a trust. If, based on information obtained in review of records or from any other source, the Commission has reason to believe that continued approval or certification is no longer appropriate, it shall provide notice to the official or employee of the intention to revoke the approval or certification, and provide the official or employee an opportunity to be heard by the Commission in informal procedures consistent with the Commission's advisory opinion process as set forth in COMAR 19A.01.02.</text> </paragraph> <paragraph num="B."> <text>Failure by any interested party or the trustee to comply with the provisions of these regulations or General Provisions Article, Title 5, Annotated Code of Maryland, if related to the trust, shall result in revocation of the certification and make the official or employee subject to any appropriate enforcement or other action for violation of the provisions of General Provisions Article, Title 5, Annotated Code of Maryland, from the point in time where the failure to comply occurred.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Termination."> <paragraph num="A."> <text>Within 60 days of termination of a trust for any reason as set forth in COMAR 19A.06.02.04H the official or employee shall file a public financial disclosure statement in accordance with the provisions of General Provisions Article, §5-607, Annotated Code of Maryland, disclosing the assets of the trust as of the date of termination.</text> </paragraph> <paragraph num="B."> <text>An exception allowed from the participation and interest prohibitions of General Provisions Article, §§5-501 and 5-502, Annotated Code of Maryland, becomes void and of no effect when a trust is terminated for any reason.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Change of Trustee."> <paragraph num="A."> <text>During the existence of a blind trust certified in accordance with this chapter, the official or employee may propose a substitute or successor trustee.</text> </paragraph> <paragraph num="B."> <text>The request for certification of a substitute or successor trustee shall be in writing and include all appropriate documentation and information as required by Regulation .02 of this chapter.</text> </paragraph> <paragraph num="C."> <text>The Commission shall approve a substitute or successor trustee:</text> <paragraph num="(1)"> <text>As set forth in Regulation .02D of this chapter; and</text> </paragraph> <paragraph num="(2)"> <text>Consistent with the substantive requirements for trustees set forth in COMAR 19A.06.02.03.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§5-206, 5-501, 5-502, and 5-608, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: May 27, 1991 (18:10 Md. R. 1118)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective April 7, 1997 (24:7 Md. R. 554)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05A amended effective January 16, 2017 (44:1 Md. R. 12)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 adopted effective April 7, 1997 (24:7 Md. R. 554)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 repealed effective January 16, 2017 (44:1 Md. R. 12)</annotation> </annotations> </chapter> </subtitle> <subtitle num="07" heading="Lobbying"> <chapter num="01" heading="General"> <regulation prefix="Regulation" num=".01" heading="Exemptions."> <paragraph num="A."> <text>The following activities are exempt from regulation under this chapter:</text> <paragraph num="(1)"> <text>Appearances as part of the official duties of an elected or appointed official or employee of the State, a political subdivision of the State, or the United States, to the extent that the appearance is not on behalf of another entity;</text> </paragraph> <paragraph num="(2)"> <text>Actions of a member of the news media, to the extent the actions are in the ordinary course of gathering and disseminating news or making editorial comment to the general public;</text> </paragraph> <paragraph num="(3)"> <text>Representation of a bona fide religious organization to the extent the representation is for the purpose of protecting the right of its members to practice the doctrine of the organization;</text> </paragraph> <paragraph num="(4)"> <text>Appearances as part of the official duties of an officer, director, member, or employee of an association engaged exclusively in representing counties or municipal corporations, to the extent that the appearance is not on behalf of another entity;</text> </paragraph> <paragraph num="(5)"> <text>Actions as part of the official duties of a trustee, an administrator, or a faculty member of a nonprofit independent college or university in the State, if the official duties of the individual do not consist primarily of attempting to influence legislative action or executive action; and</text> </paragraph> <paragraph num="(6)"> <text>Activities by attorneys who are not employed by an organized bar as regulated lobbyists, in the course of serving as an officer, committee or section chair, or representative designated to represent a section, committee, or an organized bar at large, including:</text> <paragraph num="(a)"> <text>Testimony before either the Senate or the House of Delegates;</text> </paragraph> <paragraph num="(b)"> <text>Testimony before a committee or subcommittee of the Senate or the House of Delegates;</text> </paragraph> <paragraph num="(c)"> <text>Communication with an official or employee of the Legislative Branch or Executive Branch in the presence of that official or employee; or</text> </paragraph> <paragraph num="(d)"> <text>Communication with an official or employee of the Legislative Branch or Executive Branch not in the presence of that official or employee.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>The following activities are exempt from regulation under this chapter if the person engages in no other acts for an employer during the reporting period that require registration:</text> <paragraph num="(1)"> <text>Appearances before a legislative committee at the specific request of a regulated lobbyist, if the witness notifies the committee that the witness is testifying at the request of the regulated lobbyist;</text> </paragraph> <paragraph num="(2)"> <text>Appearances before an executive unit at the specific request of a regulated lobbyist, if the witness notifies the executive unit that the witness is testifying at the request of the regulated lobbyist;</text> </paragraph> <paragraph num="(3)"> <text>An elementary, secondary, or postsecondary school student or student organization that communicates as part of a course or student activity based solely on the expense threshold in Regulation .02A(1) of this chapter;</text> </paragraph> <paragraph num="(4)"> <text>Professional services in drafting bills or in advising clients on the construction or effect of proposed or pending legislation;</text> </paragraph> <paragraph num="(5)"> <text>Appearances before the entire General Assembly, or any committee or subcommittee of the General Assembly, at the specific request of the body involved; or</text> </paragraph> <paragraph num="(6)"> <text>Appearances before an executive unit at the specific request of the executive unit involved.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A person that compensates one or more regulated lobbyists for the purpose of lobbying is exempt from the registration and reporting requirements of this chapter if the person:</text> <paragraph num="(1)"> <text>Engages in no other act that requires registration; and</text> </paragraph> <paragraph num="(2)"> <text>Reasonably believes that all expenditures requiring registration will be reported by the regulated lobbyist or lobbyists.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Registration Required."> <paragraph num="A."> <text>Persons engaged in the following activities shall register with the Ethics Commission and are regulated lobbyists for the purposes of this chapter:</text> <paragraph num="(1)"> <text>Attempting to influence legislative action, or executive action related to the development or adoption of regulations or the development or issuance of an executive order by:</text> <paragraph num="(a)"> <text>Communicating with an official or employee of the Legislative Branch or Executive Branch in the presence of that official or employee; and</text> </paragraph> <paragraph num="(b)"> <text>Exclusive of the personal travel or subsistence expenses of the entity or a representative of the entity, incurring expenses of at least $500, calculated per employer, or earning at least $2,500, from all employers cumulatively, as compensation for the communication, and activities relating to the communication, during the reporting period;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Attempting to influence legislative action, or executive action related to the development or adoption of regulations or the development or issuance of an executive order by:</text> <paragraph num="(a)"> <text>Communicating with an official or employee of the Legislative Branch or Executive Branch; and</text> </paragraph> <paragraph num="(b)"> <text>Earning at least $5,000 from all employers cumulatively, as compensation for the communication, and activities relating to the communication, during the reporting period;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>In connection with or for the purpose of influencing any executive action, spending a cumulative value of at least $100 for gifts to one or more officials or employees of the Executive Branch, including gifts for:</text> <paragraph num="(a)"> <text>Meals;</text> </paragraph> <paragraph num="(b)"> <text>Beverages; and</text> </paragraph> <paragraph num="(c)"> <text>Special events;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Receiving compensation to influence executive action on a procurement contract that exceeds $100,000, unless the person:</text> <paragraph num="(a)"> <text>Is a bona fide salesperson or commercial selling agency employed or maintained by an employer for the purposes of soliciting or securing a procurement contract; and</text> </paragraph> <paragraph num="(b)"> <text>Has not engaged in acts during the reporting period that require registration under this subtitle;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Receiving compensation from a business entity to influence executive action to secure from the State a business grant or loan with a value of more than $100,000 for the business entity unless:</text> <paragraph num="(a)"> <text>The person has engaged in no other acts during the reporting period that require registration; and</text> </paragraph> <paragraph num="(b)"> <text>The person:</text> <paragraph num="(i)"> <text>Is a bona fide full-time official or employee of a business entity seeking to secure a business grant or loan; or</text> </paragraph> <paragraph num="(ii)"> <text>Seeks to secure a business grant or loan for the purpose of locating, relocating, or expanding a business in or into the State;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(6)"> <text>Spending at least $2,000 for the express purpose of soliciting others to communicate with an official to influence legislative action or executive action, including expenditures for:</text> <paragraph num="(a)"> <text>Salaries;</text> </paragraph> <paragraph num="(b)"> <text>Contractual employees;</text> </paragraph> <paragraph num="(c)"> <text>Postage;</text> </paragraph> <paragraph num="(d)"> <text>Telecommunications services;</text> </paragraph> <paragraph num="(e)"> <text>Electronic services;</text> </paragraph> <paragraph num="(f)"> <text>Advertising;</text> </paragraph> <paragraph num="(g)"> <text>Printing; and</text> </paragraph> <paragraph num="(h)"> <text>Delivery services; or</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>Spending at least $2,500 to provide compensation to one or more persons required to register under this subtitle.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If a regulated lobbyist compensated by an employer that is exempt under Regulation .01C of this chapter fails to report the information required by this chapter, the employer immediately shall be subject to the registration and reporting requirements of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Authority to Lobby."> <paragraph num="A."> <text>A regulated lobbyist engaged by an entity for the purpose of lobbying shall certify under oath or affirmation that the regulated lobbyist is authorized to engage in lobbying for the entity.</text> </paragraph> <paragraph num="B."> <text>The certification of authorization to act under §A of this regulation shall include:</text> <paragraph num="(1)"> <text>The full legal name and business address of the entity;</text> </paragraph> <paragraph num="(2)"> <text>The name, contact information and the official title of the representative of the entity who authorized the regulated lobbyist to engage in lobbying for the entity;</text> </paragraph> <paragraph num="(3)"> <text>The full legal name and business address of the regulated lobbyist;</text> </paragraph> <paragraph num="(4)"> <text>Subject to subsequent modification, the period during which the regulated lobbyist is authorized to act; and</text> </paragraph> <paragraph num="(5)"> <text>The proposal or subject on which the regulated lobbyist represents the entity.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Registration with Commission."> <paragraph num="A."> <text>Each regulated lobbyist shall register with the Ethics Commission:</text> <paragraph num="(1)"> <text>Separately for each employer that has engaged the regulated lobbyist for lobbying purposes; and</text> </paragraph> <paragraph num="(2)"> <text>Using the electronic registration system provided by the Ethics Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Each registration shall include, if applicable:</text> <paragraph num="(1)"> <text>The regulated lobbyist's name and permanent address;</text> </paragraph> <paragraph num="(2)"> <text>The name and permanent address of each other regulated lobbyist that will be lobbying on the regulated lobbyist's behalf;</text> </paragraph> <paragraph num="(3)"> <text>The name, address, and nature of business of the employer that has engaged the regulated lobbyist for lobbying purposes;</text> </paragraph> <paragraph num="(4)"> <text>A statement indicating if, because of the filing and reporting of the regulated lobbyist, the compensating entity is exempt from registration under Regulation .01C of this chapter;</text> </paragraph> <paragraph num="(5)"> <text>The identity of any other person that the regulated lobbyist will represent regarding the matters covered by the registration; and</text> </paragraph> <paragraph num="(6)"> <text>The specific identification, by issue including bill number, regulation number, State contract, or other matter, if known, of the matters on which the regulated lobbyist expects to perform acts, or to engage another regulated lobbyist to perform acts, that require registration under this chapter.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If applicable, each registration shall include the certification required by Regulation .03 of this chapter.</text> </paragraph> <paragraph num="D."> <text>A regulated lobbyist shall register with the Ethics Commission:</text> <paragraph num="(1)"> <text>Within 5 days after first performing an act that requires registration under this chapter; or</text> </paragraph> <paragraph num="(2)"> <text>On or before November 1 of each year if on that date the lobbyist has not yet submitted a new registration and the lobbyist is engaged in lobbying activity which will continue in the upcoming lobbying reporting period.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Registration.</text> <paragraph num="(1)"> <text>Each registration shall be accompanied by a fee in the amount established by General Provisions Article, §5-704, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>The fee shall be credited to the Lobbyist Registration Fund.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Termination of Registration.</text> <paragraph num="(1)"> <text>Each registration shall terminate on the earlier of:</text> <paragraph num="(a)"> <text>October 31 following the filing of the registration; or</text> </paragraph> <paragraph num="(b)"> <text>An earlier termination date specified in the lobbyist registration form.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A regulated lobbyist may terminate the registration before the date specified in §F(1) of this regulation by notifying the Ethics Commission that the regulated lobbyist has:</text> <paragraph num="(a)"> <text>Ceased all activity that requires registration;</text> </paragraph> <paragraph num="(b)"> <text>Filed a notice of termination with the Ethics Commission; and</text> </paragraph> <paragraph num="(c)"> <text>Filed all reports required by this subtitle within 30 days after the filing of the notice of termination.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Registration — Lobbyists Serving on Boards and Commissions."> <paragraph num="A."> <text>Except as provided in §B of this regulation, if a regulated lobbyist becomes an official or State employee, the regulated lobbyist shall immediately terminate the registration in accordance with Regulation .04F of this chapter.</text> </paragraph> <paragraph num="B."> <text>Section A of this regulation does not apply to a regulated lobbyist who becomes a public official solely by the regulated lobbyist's appointment to a board or commission subject to the jurisdiction of the Ethics Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Lobbyist Disclosure — Boards and Commissions."> <paragraph num="A."> <text>At the time a regulated lobbyist is appointed to serve on a board or commission subject to the jurisdiction of the Ethics Commission, or at the time a board or commission member becomes subject to the lobbying regulations, the regulated lobbyist shall file a report:</text> <paragraph num="(1)"> <text>Within 5 calendar days of the dual status measured from later of:</text> <paragraph num="(a)"> <text>The date of registration as a lobbyist;</text> </paragraph> <paragraph num="(b)"> <text>The date of oath of office as a member of the board or commission; or</text> </paragraph> <paragraph num="(c)"> <text>If no oath of office is required, the date of official notification of appointment by the appointing authority;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Using the electronic registration system provided by the Ethics Commission;</text> </paragraph> <paragraph num="(3)"> <text>Under penalty of perjury;</text> </paragraph> <paragraph num="(4)"> <text>With a copy sent to the Appointing Authority; and</text> </paragraph> <paragraph num="(5)"> <text>Providing the following information:</text> <paragraph num="(a)"> <text>For any current representation of a person for compensation before a State governmental unit, except in a judicial or quasi-judicial proceeding:</text> <paragraph num="(i)"> <text>The name of the regulated lobbyist;</text> </paragraph> <paragraph num="(ii)"> <text>The person or entity represented for compensation;</text> </paragraph> <paragraph num="(iii)"> <text>The name of the State agency;</text> </paragraph> <paragraph num="(iv)"> <text>The services performed; and</text> </paragraph> <paragraph num="(v)"> <text>The monetary consideration;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>For any current representation of a State agency for compensation, any contractual relationship with State government, or any transaction with State government for monetary consideration:</text> <paragraph num="(i)"> <text>The name of the regulated lobbyist;</text> </paragraph> <paragraph num="(ii)"> <text>The name of the agency or governmental unit with which the regulated lobbyist has a financial relationship; and</text> </paragraph> <paragraph num="(iii)"> <text>The services performed or details of any contractual relationship or the transaction entered into;</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>For any current interest held by the regulated lobbyist, the regulated lobbyist’s spouse or dependent children, together or separately having either 10 percent or more of the capital stock, or stock worth $35,000 or more, in a corporation subject to regulation by or doing business with the board or commission, or any interest in a partnership, limited liability partnership, or limited liability company subject to regulation by or doing business with the board or commission:</text> <paragraph num="(i)"> <text>The name of the regulated lobbyist;</text> </paragraph> <paragraph num="(ii)"> <text>The name of the immediate family member and relationship for any interest held together or separately;</text> </paragraph> <paragraph num="(iii)"> <text>The name of the corporation, partnership, limited liability partnership, or limited liability company; and</text> </paragraph> <paragraph num="(iv)"> <text>The nature of the interest held;</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>The primary employer of the spouse of the regulated lobbyist; and</text> </paragraph> <paragraph num="(e)"> <text>The name of any business entity from which the regulated lobbyist or the spouse of the regulated lobbyist receives earned income as a result of an ownership interest in the business.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>The regulated lobbyist shall update the information required by §A of this regulation as required to reflect the regulated lobbyist's current registrations throughout each reporting period.</text> </paragraph> <paragraph num="C."> <text>Whenever an issue arises within the board or commission related to the information disclosed in accordance with §A of this regulation, the regulated lobbyist member shall submit a statement of recusal from discussion of, voting on, or any other action required by the circumstances concerning the issue:</text> <paragraph num="(1)"> <text>On a form provided by the Ethics Commission;</text> </paragraph> <paragraph num="(2)"> <text>To the board or commission for inclusion in the minutes of the meeting; and</text> </paragraph> <paragraph num="(3)"> <text>Which includes:</text> <paragraph num="(a)"> <text>The name of the regulated lobbyist;</text> </paragraph> <paragraph num="(b)"> <text>The subject area of the conflict; and</text> </paragraph> <paragraph num="(c)"> <text>The reason for the recusal.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>In addition to the disclosure requirements set forth in this regulation, regulated lobbyists who are public officials solely because of their participation on boards or commissions are subject to the conflict of interest requirements set forth in General Provisions Article, Title 5, Subtitle 5, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Reports."> <paragraph num="A."> <text>Lobbying Activity Reporting Requirements.</text> <paragraph num="(1)"> <text>Activity Reports Required.</text> <paragraph num="(a)"> <text>A regulated lobbyist shall file with the Ethics Commission a separate report for each registration disclosing the regulated lobbyist's lobbying activities.</text> </paragraph> <paragraph num="(b)"> <text>A regulated lobbyist who has no lobbying activity related to an employer specified on a registration during a reporting period shall file a report with the Commission disclosing the lack of activity.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Each report shall be filed electronically and shall be made by verifiable electronic signature in the report and made expressly under penalty of perjury.</text> </paragraph> <paragraph num="(3)"> <text>Each report shall be filed by:</text> <paragraph num="(a)"> <text>May 31 of each year, to cover the period from November 1 of the previous year through April 30 of the current year; and</text> </paragraph> <paragraph num="(b)"> <text>November 30 of each year, to cover the period from May 1 through October 31 of that year.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Each lobbying activity report required by this section shall include:</text> <paragraph num="(1)"> <text>A complete, current statement of the information required under Regulation .04B of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>Total expenditures in connection with influencing executive action or legislative action in each of the following categories:</text> <paragraph num="(a)"> <text>Total individual regulated lobbyist's compensation, excluding the expenses reported in §B(2)(b)—(l) of this regulation;</text> </paragraph> <paragraph num="(b)"> <text>Office expenses of the regulated lobbyist;</text> </paragraph> <paragraph num="(c)"> <text>Professional and technical research and assistance;</text> </paragraph> <paragraph num="(d)"> <text>Publications that expressly encourage communication with one or more officials or employees;</text> </paragraph> <paragraph num="(e)"> <text>Witnesses, including the name of each and the fees and expenses paid to each;</text> </paragraph> <paragraph num="(f)"> <text>Meals and beverages for officials, employees, or members of the immediate families of officials or employees;</text> </paragraph> <paragraph num="(g)"> <text>If a full and final accounting has not been provided in accordance with Regulation .11 of this chapter in the post-event report, an accurate and final report of food, beverages, and incidental expenses spent on behalf of officials of the Legislative Branch for meals and receptions to which all members of any legislative unit were invited, including the:</text> <paragraph num="(i)"> <text>Date;</text> </paragraph> <paragraph num="(ii)"> <text>Location; and</text> </paragraph> <paragraph num="(iii)"> <text>Total expense of the regulated lobbyist for each meal, reception, event, or meeting;</text> </paragraph> </paragraph> <paragraph num="(h)"> <text>Food and beverages for members of the General Assembly at the respective times and geographic locations of meetings of legislative organizations, to which meetings those members' attendance at State expense has been approved by the appropriate presiding officer, including the:</text> <paragraph num="(i)"> <text>Date;</text> </paragraph> <paragraph num="(ii)"> <text>Location; and</text> </paragraph> <paragraph num="(iii)"> <text>Total expense for the regulated lobbyist for each meeting;</text> </paragraph> </paragraph> <paragraph num="(i)"> <text>Food, lodging, and scheduled entertainment for officials and employees at meetings at which the officials and employees were scheduled speakers or scheduled panel participants, including the:</text> <paragraph num="(i)"> <text>Date;</text> </paragraph> <paragraph num="(ii)"> <text>Location; and</text> </paragraph> <paragraph num="(iii)"> <text>Total expense for the regulated lobbyist for each meeting;</text> </paragraph> </paragraph> <paragraph num="(j)"> <text>Tickets and free admission extended to members of the General Assembly as a courtesy or ceremony to the office to attend charitable, cultural, and political events sponsored or conducted by the reporting entity and to each of which all members of the legislative unit were invited, including the:</text> <paragraph num="(i)"> <text>Date;</text> </paragraph> <paragraph num="(ii)"> <text>Location; and</text> </paragraph> <paragraph num="(iii)"> <text>Total expense of the regulated lobbyist for each event;</text> </paragraph> </paragraph> <paragraph num="(k)"> <text>Other gifts to or for officials, employees, or members of the immediate families of officials or employees;</text> </paragraph> <paragraph num="(l)"> <text>Salaries and other expenses paid to staff who were not required to register independently; and</text> </paragraph> <paragraph num="(m)"> <text>Other expenses.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>If the regulated lobbyist is not an individual, an authorized officer or agent of the regulated lobbyist shall submit the report.</text> </paragraph> <paragraph num="D."> <text>If a prorated amount is reported as compensation, it shall be labeled as prorated.</text> </paragraph> <paragraph num="E."> <text>Additional Required Information and Exceptions.</text> <paragraph num="(1)"> <text>A report required under this section also shall include the name of each official, employee, or member of the immediate family of an official or employee who has benefited from one or more gifts with a cumulative value of $75 during the reporting period from the regulated lobbyist, regardless of whether the gift:</text> <paragraph num="(a)"> <text>Is attributable to more than one entity; or</text> </paragraph> <paragraph num="(b)"> <text>Was given in connection with lobbying activity.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The following gifts need not be allocated to individual recipients and reported by name:</text> <paragraph num="(a)"> <text>Gifts reported under §B(2)(g) and (h) of this regulation;</text> </paragraph> <paragraph num="(b)"> <text>Gifts reported under §B(2)(i) of this regulation with a value of $200 or less; and</text> </paragraph> <paragraph num="(c)"> <text>Gifts reported under §B(2)(j) of this regulation, unless the recipient received from the regulated lobbyist during the reporting period two or more of these gifts with a cumulative value of $100 or more.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Additional Reports from Employers and Regulated Lobbyists, Other Than an Individual.</text> <paragraph num="(1)"> <text>If the employer or regulated lobbyist, other than an individual, is organized and operated for the primary purpose of attempting to influence legislative action or executive action, the employer or regulated lobbyist shall report the name and permanent address of each person that provided at least 5 percent of the regulated lobbyist's total receipts during the preceding 12 months.</text> </paragraph> <paragraph num="(2)"> <text>For the purpose of the reporting and registration requirements of this chapter, receipts of the employer or regulated lobbyist subject to this chapter include funds spent on the employer's or regulated lobbyist's behalf, at its direction, or in its name.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Meals or Beverages — Executive Branch Activity."> <paragraph num="A."> <text>Each regulated lobbyist shall file a separate report disclosing the name of any State official of the Executive Branch or member of the immediate family of a State official of the Executive Branch who has benefited during the reporting period from gifts of meals or beverages provided by the regulated lobbyist, whether or not in connection with lobbying activities.</text> </paragraph> <paragraph num="B."> <text>Gifts reported by name of recipient under Regulation .07B(2)(i) of this chapter need not be included on this report.</text> </paragraph> <paragraph num="C."> <text>The report shall be:</text> <paragraph num="(1)"> <text>Filed electronically at the time and in the manner for reports filed under Regulation .07A of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>Filed by May 31 of each year, to cover the period from November 1 of the previous year through April 30 of the current year; and</text> </paragraph> <paragraph num="(3)"> <text>Filed by November 30 of each year, to cover the period from May 1 through October 31 of that year.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The report shall contain the:</text> <paragraph num="(1)"> <text>Name and business address of the regulated lobbyist;</text> </paragraph> <paragraph num="(2)"> <text>Name of each recipient of a gift of a meal or beverages;</text> </paragraph> <paragraph num="(3)"> <text>Date and value of each gift of a meal or beverages, and the identity of the entity or entities to which the gift is attributable; and</text> </paragraph> <paragraph num="(4)"> <text>Total cumulative value of gifts of meals or beverages, calculated as to each recipient.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The report may include an explanation of the circumstances under which the gift of a meal or beverages was given.</text> </paragraph> <paragraph num="F."> <text>If a regulated lobbyist reports gifts of meals or beverages in accordance with this regulation, the regulated lobbyist need not count or report them under Regulation .07E of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Business Transactions."> <paragraph num="A."> <text>Applicability.</text> <paragraph num="(1)"> <text>This regulation applies to an individual regulated lobbyist who lobbies the Executive or Legislative Branch.</text> </paragraph> <paragraph num="(2)"> <text>This regulation does not apply to an entity that employs an individual regulated lobbyist.</text> </paragraph> </paragraph> <paragraph num="B."> <text>An individual regulated lobbyist shall file, with the report required by Regulation .07 of this chapter, a report that discloses any business transaction or series of business transactions that the individual regulated lobbyist had with an individual or business entity listed in §C of this regulation that occurred in the previous 6 months and involved the exchange of value of:</text> <paragraph num="(1)"> <text>$1,000 or more for a single transaction; or</text> </paragraph> <paragraph num="(2)"> <text>$5,000 or more for a series of transactions.</text> </paragraph> </paragraph> <paragraph num="C."> <text>An individual regulated lobbyist is subject to the reporting requirements of §B of this regulation if the individual regulated lobbyist engaged in a business transaction with:</text> <paragraph num="(1)"> <text>A member of the General Assembly;</text> </paragraph> <paragraph num="(2)"> <text>The Governor;</text> </paragraph> <paragraph num="(3)"> <text>The Lieutenant Governor;</text> </paragraph> <paragraph num="(4)"> <text>The Attorney General;</text> </paragraph> <paragraph num="(5)"> <text>The Secretary of State;</text> </paragraph> <paragraph num="(6)"> <text>The Comptroller of the Treasury;</text> </paragraph> <paragraph num="(7)"> <text>The State Treasurer;</text> </paragraph> <paragraph num="(8)"> <text>The secretary of any principal State department;</text> </paragraph> <paragraph num="(9)"> <text>The spouse of an individual listed in §C(1)—(8) of this regulation;</text> </paragraph> <paragraph num="(10)"> <text>A business entity in which an individual listed in §C(1)—(9) of this regulation participates as a proprietor or partner; or</text> </paragraph> <paragraph num="(11)"> <text>A business entity in which an individual listed in §C(1)—(9) of this regulation has an ownership interest of at least 30 percent in the entity.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The report shall include the:</text> <paragraph num="(1)"> <text>Date of the business transaction or dates of each of the series of transactions;</text> </paragraph> <paragraph num="(2)"> <text>Name and title of the official listed in §C of this regulation who was involved in each business transaction or series of transactions; and</text> </paragraph> <paragraph num="(3)"> <text>Nature and value of anything exchanged.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The report shall be filed electronically at the time and in the manner for reports filed under Regulation .07A of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Contributions for Benefit of Certain Officials or Candidates."> <paragraph num="A."> <text>An individual regulated lobbyist shall file with the Commission a separate report disclosing any political contributions made:</text> <paragraph num="(1)"> <text>Directly or indirectly by the individual regulated lobbyist;</text> </paragraph> <paragraph num="(2)"> <text>During the reporting period;</text> </paragraph> <paragraph num="(3)"> <text>Under Election Law Article, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(4)"> <text>For the benefit of the Governor, Lieutenant Governor, Attorney General, Comptroller, a member of the General Assembly, or a candidate for election to any of those offices.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The report shall include the:</text> <paragraph num="(1)"> <text>Name of each official or candidate for whose benefit a contribution was made; and</text> </paragraph> <paragraph num="(2)"> <text>Total contributions for the benefit of that official or candidate.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The report shall be filed:</text> <paragraph num="(1)"> <text>Electronically at the time and in the manner for reports filed under Regulation .07A of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>By May 31 of each year, to cover the period from November 1 of the previous year through April 30 of the current year; and</text> </paragraph> <paragraph num="(3)"> <text>By November 30 of each year, to cover the period from May 1 through October 31 of that year.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Legislative Unit Meal or Reception; Registration Report."> <paragraph num="A."> <text>Legislative Unit Registration Requirement. A regulated lobbyist who invites all members of a legislative unit to a meal or reception shall, at least 5 days before the date of the meal or reception:</text> <paragraph num="(1)"> <text>Extend a written invitation to all members of the legislative unit;</text> </paragraph> <paragraph num="(2)"> <text>Register each meal or reception with the Department of Legislative Service by submitting a notice of invitation electronically to the Ethics Commission; and</text> </paragraph> <paragraph num="(3)"> <text>Include in the notice of invitation the:</text> <paragraph num="(a)"> <text>Date and location of the meal or reception; and</text> </paragraph> <paragraph num="(b)"> <text>Legislative unit invited.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Disclosure Report.</text> <paragraph num="(1)"> <text>A regulated lobbyist who is required to register under §A of this regulation shall submit a post-event report, providing the total cost of the meal or reception, including the identity of any sponsor who contributes to the cost and the amount of the contribution, to the Ethics Commission:</text> <paragraph num="(a)"> <text>Within 14 days after the date of the meal or reception;</text> </paragraph> <paragraph num="(b)"> <text>Electronically; and</text> </paragraph> <paragraph num="(c)"> <text>If any information required in the post-event report is not known within 14 days after the date of the meal or reception, the nature and estimate of the amount of each item which is not known.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If all of the information required in §B(1) of this regulation is reported accurately and completely in the post-event report, the regulated lobbyist is not required to report the cost of the meal or reception in the Lobbying Activity Report.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Post-event reports shall be available for public inspection on the public access section of the Ethics Commission’s website.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Filing and Public Inspection."> <paragraph num="A."> <text>Electronic Filing.</text> <paragraph num="(1)"> <text>With the exception of the statement of recusal under Regulation .06C of this chapter, the reports required by this chapter shall be filed electronically, and the oath shall be made by an electronic signature made expressly under the penalties for perjury in the report. The electronically signed reports are subject to the same penalties for perjury as those made under an oath or affirmation before an individual authorized to administer oaths.</text> </paragraph> <paragraph num="(2)"> <text>With the exception of the registration under Regulation .04 of this chapter, which is not considered filed until approved by the Ethics Commission and payment is received by the Ethics Commission, electronic documents are considered filed when the complete and accurate document is submitted electronically.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Ethics Commission shall make all lobbying reports available for public inspection on the public access section of the Ethics Commission’s website.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Gifts to Family Members."> <text>A regulated lobbyist need not disclose on any report required by this chapter any gift to a member of the regulated lobbyist's immediate family, if the gift is:</text> <paragraph num="A."> <text>Purely personal and private in nature and not related to the regulated lobbyist's lobbying activities; and</text> </paragraph> <paragraph num="B."> <text>From the regulated lobbyist's personal funds and not attributable to any other entity or entities.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Additional Reports."> <text>The Ethics Commission may require regulated lobbyists to file any additional reports it determines to be necessary in the manner prescribed by the Ethics Commission.</text> </regulation> <regulation prefix="Regulation" num=".15" heading="Disclosure of Statistics; Notice to Official Named in Report."> <paragraph num="A."> <text>After each reporting period, the Ethics Commission shall compute and make available:</text> <paragraph num="(1)"> <text>For each of the categories of expenses set forth in Regulation .07B(2) of this chapter, a total of the expenditures reported by all regulated lobbyists in that category;</text> </paragraph> <paragraph num="(2)"> <text>For the categories of expenses required to be reported by Regulation .07B(2)(e)—(g) of this chapter, a combined total of the expenditures reported by all regulated lobbyists; and</text> </paragraph> <paragraph num="(3)"> <text>The total of the reported expenditures by all regulated lobbyists for lobbying activities during the reporting period.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If a report required by Regulation .07 or .08 of this chapter contains the name of an official or employee in the Executive or Legislative Branch or the name of a member of the official's or employee's immediate family, the Ethics Commission shall:</text> <paragraph num="(1)"> <text>Notify the official or employee within 30 days of receipt of the report by the Ethics Commission;</text> </paragraph> <paragraph num="(2)"> <text>Provide the official or employee 30 days after receiving the notice to submit a written exception to the inclusion in the report of the name of the official, employee, or member of the official's or employee's immediate family; and</text> </paragraph> <paragraph num="(3)"> <text>Keep the report confidential for 60 days after its receipt.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Prohibitions."> <text>A regulated lobbyist may not:</text> <paragraph num="A."> <text>Be engaged for lobbying purposes for compensation that is dependent in any manner on:</text> <paragraph num="(1)"> <text>The enactment or defeat of legislation;</text> </paragraph> <paragraph num="(2)"> <text>The outcome of any executive action relating to the solicitation or securing of a procurement contract; or</text> </paragraph> <paragraph num="(3)"> <text>Any other contingency related to executive action or legislative action;</text> </paragraph> </paragraph> <paragraph num="B."> <text>Initiate or encourage the introduction of legislation for the purpose of opposing the legislation;</text> </paragraph> <paragraph num="C."> <text>Knowingly counsel any person to violate any provisions of this title or any other State or federal law;</text> </paragraph> <paragraph num="D."> <text>Engage in or counsel any person to engage in fraudulent conduct;</text> </paragraph> <paragraph num="E."> <text>While engaging in lobbying activities, knowingly make to an official or employee a statement of material fact relating to lobbying activity that the regulated lobbyist knows to be false;</text> </paragraph> <paragraph num="F."> <text>Engage in lobbying without being properly registered as a regulated lobbyist in accordance with Regulation .02 of this chapter;</text> </paragraph> <paragraph num="G."> <text>Request an official or employee to recommend to a potential client the lobbying services of the regulated lobbyist or any other regulated lobbyist;</text> </paragraph> <paragraph num="H."> <text>Make a gift, directly or indirectly, to an official or employee if the regulated lobbyist knows or has reason to know that the gift is in violation of General Provisions Article, §5-505, Annotated Code of Maryland;</text> </paragraph> <paragraph num="I."> <text>Make a gift directly or indirectly as a result of a solicitation or facilitation, which the regulated lobbyist knows or has reason to know is prohibited under General Provisions Article, §5-505, Annotated Code of Maryland;</text> </paragraph> <paragraph num="J."> <text>If the regulated lobbyist is an individual, engage in any charitable fund-raising activity at the request of an official or employee, including soliciting, transmitting the solicitation of, or transmitting a charitable contribution;</text> </paragraph> <paragraph num="K."> <text>Unless in the ordinary course of business of the regulated lobbyist, make or facilitate the making of any loan of money, goods, or services to an official or employee;</text> </paragraph> <paragraph num="L."> <text>While engaging in lobbying activities on behalf of an entity, knowingly conceal from an official or employee the identify of the entity;</text> </paragraph> <paragraph num="M."> <text>Commit a criminal offense arising from lobbying activity;</text> </paragraph> <paragraph num="N."> <text>If serving on the State or a local central committee of a political party, participate:</text> <paragraph num="(1)"> <text>As an officer of the central committee;</text> </paragraph> <paragraph num="(2)"> <text>In fund-raising activity on behalf of the political party; or</text> </paragraph> <paragraph num="(3)"> <text>In actions relating to filling a vacancy in a public office; or</text> </paragraph> </paragraph> <paragraph num="O."> <text>While engaging in lobbying, unlawfully harass or discriminate against, based on any characteristic protected by law:</text> <paragraph num="(1)"> <text>An official or employee;</text> </paragraph> <paragraph num="(2)"> <text>An intern, a page, or a fellow in any branch of State government;</text> </paragraph> <paragraph num="(3)"> <text>An individual regulated lobbyist; or</text> </paragraph> <paragraph num="(4)"> <text>A credentialed member of the press.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".17" heading="Restriction on Campaign Contributions."> <paragraph num="A."> <text>This regulation applies only to a regulated lobbyist described in Regulation .02A(1)—(5) of this chapter.</text> </paragraph> <paragraph num="B."> <text>The restrictions in this regulation apply from the starting date of the regulated lobbyist's registration to the end of the calendar year in which the registration period ends.</text> </paragraph> <paragraph num="C."> <text>A regulated lobbyist or a person acting on behalf of the regulated lobbyist may not, for the benefit of the Governor, Lieutenant Governor, Attorney General, Comptroller, a member of the General Assembly, or a candidate for election to the office of Governor, Lieutenant Governor, Attorney General, Comptroller, or a member of the General Assembly, engage in the following activities:</text> <paragraph num="(1)"> <text>Solicit or transmit a political contribution from any person, including a political committee;</text> </paragraph> <paragraph num="(2)"> <text>Serve on a fund-raising committee or a political committee;</text> </paragraph> <paragraph num="(3)"> <text>Act as a treasurer for a candidate or official or as treasurer or chairman of a political committee;</text> </paragraph> <paragraph num="(4)"> <text>Organize or establish a political committee for the purpose of soliciting or transmitting contributions from any person; or</text> </paragraph> <paragraph num="(5)"> <text>Forward tickets for fund-raising activities, or other solicitations for political contributions, to a potential contributor.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A regulated lobbyist may:</text> <paragraph num="(1)"> <text>Make a personal political contribution;</text> </paragraph> <paragraph num="(2)"> <text>Inform any entity of a position taken by a candidate or official; or</text> </paragraph> <paragraph num="(3)"> <text>Engage in other activities not specifically prohibited in this regulation.</text> </paragraph> </paragraph> <paragraph num="E."> <text>This regulation does not apply to a regulated lobbyist who is a candidate with respect to the regulated lobbyist's own campaign.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".18" heading="Ethics Training Requirements."> <paragraph num="A."> <text>This regulation applies to an individual regulated lobbyist described in Regulation .02A of this chapter.</text> </paragraph> <paragraph num="B."> <text>An individual regulated lobbyist shall complete the lobbyist training course required by General Provisions Article, §5-205(e), Annotated Code of Maryland:</text> <paragraph num="(1)"> <text>Within 6 months of the individual regulated lobbyist’s initial registration with the Ethics Commission; or</text> </paragraph> <paragraph num="(2)"> <text>If the initial registration is terminated in accordance with General Provisions Article, §5-704(f), Annotated Code of Maryland, earlier than 6 months after the date of registration, before any subsequent registration with the Ethics Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>On completion of the initial training course under §B of this regulation, an individual regulated lobbyist shall complete the training course required under General Provisions Article, §5-205(e), Annotated Code of Maryland, within the 2-year period following the date of the most recently completed training course.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §5-206 and Title 5, Subtitle 7, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.17 adopted as an emergency provision effective October 31, 2002 (29:20 Md. R. 1584); adopted permanently effective January 20, 2003 (30:1 Md. R. 27)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01C amended effective May 18, 2020 (47:10 Md. R. 520)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective May 25, 2015 (42:10 Md. R. 685)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective May 25, 2015 (42:10 Md. R. 685)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04A, E amended effective May 18, 2020 (47:10 Md. R. 520)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04D amended effective January 16, 2017 (44:1 Md. R. 12)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06A amended effective January 16, 2017 (44:1 Md. R. 12); November 23, 2017 (44:23 Md. R. 1079)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06A, C amended effective May 18, 2020 (47:10 Md. R. 520)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 amended effective May 18, 2020 (47:10 Md. R. 520)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07A amended effective October 15, 2012 (39:20 Md. R. 1309)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07B amended effective January 16, 2017 (44:1 Md. R. 12)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08C amended effective May 18, 2020 (47:10 Md. R. 520)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08F amended effective January 16, 2017 (44:1 Md. R. 12)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09E adopted effective May 18, 2020 (47:10 Md. R. 520)</annotation> <annotation type="History" subtype="Administrative History">Regulation .10C amended effective May 18, 2020 (47:10 Md. R. 520)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11 amended effective May 18, 2020 (47:10 Md. R. 520)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 amended effective May 18, 2020 (47:10 Md. R. 520)</annotation> <annotation type="History" subtype="Administrative History">Regulation .14 amended effective May 18, 2020 (47:10 Md. R. 520)</annotation> <annotation type="History" subtype="Administrative History">Regulation .16M, N amended effective May 18, 2020 (47:10 Md. R. 520)</annotation> <annotation type="History" subtype="Administrative History">Regulation .16O adopted effective May 18, 2020 (47:10 Md. R. 520)</annotation> <annotation type="History" subtype="Administrative History">Regulation .18 adopted effective May 25, 2015 (42:10 Md. R. 686)</annotation> </annotations> </chapter> </subtitle>