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<regulation prefix="Regulation" num=".04" citation="COMAR 19A.04.02.04" title_num="19A" subtitle_num="04" chapter_num="02" 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>