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HomeMy WebLinkAboutEthics and Conduct for County Public ServantPOLICY FOR INSERTION INTO THE POLICY MANUAL MEETING DATE: 12/04/2006 NUMBER: P:0430 EFFECTIVE DATE: 12/04/2006 REVISIONS: POLICY: Orange County Ethics and Conduct for County Public Servant Policy Article 1. General Provisions. Section 1. Title. This Policy shall be known as the "Orange County Ethics and Conduct for County Public Servant Policy". Section 2. Purpose. The purpose of this Policy is to ensure that elected and appointed Orange County officials (including senior Orange County staff as articulated in this Policy) exercise their authority honestly and fairly, free from impropriety, threats, favoritism, and undue influence. To this end, it is the intent of the Orange County Board of Commissioners in this Policy to ensure that standards of ethical conduct and standards regarding conflicts of interest are clearly established for elected and appointed Orange County officials, that Orange County educates these officials on matters of ethical conduct and conflicts of interest and that violations of standards of ethical conduct and conflicts of interest are, to the extent permitted by law, properly addressed. Section 3. Definitions. The following definitions apply in this Chapter: (1) Board. -Any Orange County board, commission, council, committee, task force, authority, or similar public body, however denominated, created by statute or Orange County Board of Commissioner action, except for those public bodies that have only advisory authority. (2) Business. -Any of the following organized for profit: a. Association. b. Business trust. c. Corporation. d. Enterprise. e. Joint venture. £ Organization. g. Partnership. 4 h. Proprietorship. i. Vested trust. j. Every other business interest, including ownership or use of land for income. (3) Business with which associated. - A business in which the person or any member of the person's immediate family does any of the following: a. Is an employee. b. Holds a position as a director, officer, partner, proprietor, or member or manager of a limited liability company, irrespective of the amount of compensation received or the amount of the interest owned. c. Owns a legal, equitable, or beneficial interest of ten thousand dollars ($10,000) or more in the business or five percent (5%) of the business, whichever is less, other than as a trustee on a deed of trust. For purposes of this subdivision, the term 'business' shall not include a widely held investment fund, including a mutual fund, regulated investment company, or pension or deferred compensation plan, if all of the following apply: a. The person or a member of the person's immediate family neither exercises nor has the ability to exercise control over the financial interests held by the fund. b. The fund is publicly traded, or the fund's assets are widely diversified. (4) Compensation. -Any money, thing of value, or economic benefit conferred on or received by any person in return for services rendered or to be rendered by that person or another. This term does not include campaign contributions properly received and, reported as required by Article 22A of Chapter 163 of the General Statutes. (5) Confidential information. -Information defined as confidential by the law. (6) Contract. -Any agreement, including sales and conveyances of real and personal property, and agreements for the performance of services. (7) Covered person. - An Orange County Commissioner or a public servant. (8) County or the County. -Orange County, North Carolina. (9) Economic interest. -Matters involving a business with which associated or a nonprofit corporation or organization with which associated. (10) Extended family. -Spouse, domestic partner as defined in the County's Personnel Ordinance, lineal descendant, lineal ascendant, sibling, spouse's or domestic partner's lineal ascendant, spouse's or domestic partner's lineal descendant, spouse's or domestic partner's sibling, and the spouse of any of these persons. (ll) Filing person. - A person required to file a statement of economic interest as prescribed in this Policy. (12) Gift. -Anything of monetary value given or received without valuable consideration by or from a lobbyist, lobbyist principal, or a person described under Article 3, Section (d)(1), (2), or (3). The following shall not be considered gifts under this Policy: a. Anything for which fair market value, or face value if shown, is paid by the covered person. b. Commercially available loans made on terms not more favorable than generally available to the general public in the normal course of business if not made for the purpose of lobbying. c. Contractual arrangements or commercial relationships or arrangements made in the normal course of business if not made for the purpose of lobbying. d. Campaign contributions properly received and reported as required under Article 22A of Chapter 163 of the General Statutes. (13) Honorarium. -Payment for services for which fees are not legally or traditionally required. (14) Immediate family. - An unemancipated child of the covered person residing in the household, the covered person's spouse, if not legally separated and a domestic partner as defined in the County's Personnel Ordinance. A member of a covered person's extended family shall also be considered a member of the immediate family if actually residing in the covered person's household. (15) Legislative action. - The preparation, research, drafting, introduction, consideration, modification, amendment, approval, passage, enactment, tabling, postponement, defeat, or rejection of,_an ordinance, includin,~ County_Board of_,,- ~eietea: abin Health rules authorized by Chapter 130A of the North Carolina General Statutes, resolution, amendment, motion, report, nomination, appointment, or other matter, whether or not the matter is identified by an official title, general title, or other specific reference, by a legislator acting or purporting to actin an official capacity. (16) Legislator. - A member of the County Board of Commissioners or an elected or appointed member of the County Board of Commissioners before taking office when participating in lelegislative action. A member of the County Board of Health when artici atin in le ,islative action. ,. ~eietea: eXeroising=ule-ma~ng ----~---~ --- ~ ------------- - -~ authontyasauthonzedbylaw (17) Lobbying. - As the term is defined in Chapter 120C of the North Carolina General Statutes. (18) Lobbyist. - As the term is defined in Chapter 120C of the North Carolina General Statutes. (19) Nonprofit corporation or organization with which associated. -Any public or private enterprise, incorporated or otherwise, that is organized or operating in the State primarily for religious, charitable, scientific, literary, public health and safety, or educational purposes and of which the person or any member of the person's immediate family is a director, officer, governing board member, employee, or independent contractor as of December 31 of the preceding year. (20) Official action. -Any decision, including administration, approval, disapproval, preparation, recommendation, the rendering of advice, and investigation, made or contemplated in any proceeding, application, submission, 6 request for a ruling or other determination, contract, claim, controversy, investigationFor charge;----------------------------------------------- -' ~eietea:, (21) Participate. - To take part in, influence, or attempt to influence, including ~ - ~ ~eietea: , o=ale ma~ng. acting through an agent or proxy. (22) Person. -Any individual, firm, partnership, committee, association, corporation, business, or any other organization or group of persons acting together. (23) Public event. -Any of the following: a. For County Commissioners: 1. An organized gathering of persons open to the general public to which all County Commissioners are invited to attend. b. For public servants: 1. An organized gathering of individuals open to the general public to which at least 10 public servants are invited to attend. 2. An organized gathering of a governmental body, the gathering of which is subject to the open meetings law, and to which at least 10 public servants are invited to attend. 3. An organized gathering of a person to which at least 10 public servants are invited to attend and to which at least 10 individuals, other than the public servant, or the public servant's immediate family, actually attend, or to which all shareholders, employees, board members, officers, members, or subscribers of the person who are located in a specific North Carolina office or county are notified and invited to attend. (24) Public servants. -All of the following: a. Employees of Orange County holding the position of County Manager, Assistant County Manager, Department Head or holding a position which reports directly to the County Manager. b. All voting members of boards, including ex officio members. Members of the County Board of Commissioners or an elected or appointed member of the County Board of Commissioners before taking office are public servants when participating in official action. (25) Vested trust. - A trust, annuity, or other funds held by a trustee or other third party for the benefit of the covered person or a member of the covered person's immediate family. A vested trust shall not include a widely held investment fund, including a mutual fund, regulated investment company, or pension or deferred compensation plan, if: a. The covered person or a member of the covered person's immediate family neither exercises nor has the ability to exercise control over the financial interests held by the fund; and b. The fund is publicly traded, or the fund's assets are widely diversified. Article 2. Public Disclosure of Economic Interests. 7 Section 1. Purpose. The purpose of disclosure of the financial and personal interests by covered persons is to assist covered persons and those persons who appoint, elect, hire, supervise, or advise them identify and avoid conflicts of interest and potential conflicts of interest between the covered person's private interests and the covered person's public duties. It is critical to this process that current and prospective covered persons examine, evaluate, and disclose those personal and financial interests that could be or cause a conflict of interest or potential conflict of interest between the covered person's private interests and the covered person's public duties. Covered persons must take an active, thorough, and conscientious role in the disclosure and review process, including having a complete knowledge of how the covered person's public position or duties might impact the covered person's private interests. Covered persons have an affirmative duty to provide any and all information that a reasonable person would conclude is necessary to carry out the purposes of this Policy and to fully disclose any conflict of interest or potential conflict of interest between the covered person's public and private interests, but the disclosure, review, and evaluation process is not intended to result in the disclosure of unnecessary or irrelevant personal information. Section 2. Statement of economic intent; filing required. (a) Every covered person subject to this Policy who is elected, appointed, or employed, including one appointed to fill a vacancy in elective office, except for public servants included under Article 1, Section 3(24)a whose annual compensation from the County is less than sixty thousand dollars ($60,000), shall file a statement of economic interest with the Clerk to the Orange Board of Commissioners prior to the covered person's initial appointment, election, or employment and no later than March 15th of every year thereafter, except as otherwise filed under subsection (b) of this Section. The requirement for an annual filing under this subsection also shall apply to covered persons whose terms have expired but who continue to serve until the person's replacement is appointed. Once a statement of economic interest is properly completed and filed under this Policy, the statement of economic interest does not need to be supplemented or refiled prior to the next due date set forth in this subsection. (b) A candidate for an elective office subject to this Policy shall file the statement of economic interest at the same place and in the same manner as the written disclosures are required to be filed under Title VII, Chapter 460, 1987 Session Laws. (c) The Clerk to the Orange Board of Commissioners shall issue forms to be used for the statement of economic interest and shall revise the forms from time to time as necessary to carry out the purposes of this Policy. Section 3. Statement of economic interest as public records. The statements of economic interest filed by prospective employees of the County under this Policy are not public records until the prospective employee is appointed or employed by the County. All other statements of economic interest are public records. Section 4. Contents of statement. (a) Any statement of economic interest filed under this Policy shall be on a form prescribed by the County Board of Commissioners and sworn to by the filing person. Answers must be provided to all questions. The form shall include the following information about the filing person and the filing person's immediate family: (1) The name, home address, occupation, employer, and business of the person. (2) A list of each asset and liability knot amounts included in this subsection of whatever nature (including legal, equitable, or beneficial interest) with a value of at least ten thousand dollars ($10,000) owned by the filing person and the filing person's immediate family. This list shall include the following: a. All real estate located in the State owned wholly or in part by the filing person or the filing person's immediate family, including descriptions adequate to determine the location by city and county of each parcel. b. Real estate that is currently leased or rented to or from the State, the County or any other North Carolina local government. c. Personal property sold to or bought from the State, the County or any other North Carolina local government within the preceding two years. d. Personal property currently leased or rented to or from the State, the County or any other North Carolina local government. e. The name of each publicly owned company. £ The name of each nonpublicly owned company or business entity, including interests in partnerships, limited partnerships, joint ventures, limited liability companies, limited liability partnerships, and closely held corporations. g. For each company or business entity listed under sub-subsection f. of this subsection, if known, a list of any other companies or business entities in which the company or business entity owns securities or equity interests exceeding a value of ten thousand dollars ($10,000). h. A list of all nonpublicly owned businesses of which the person is an officer, employee, director, partner, owner, or member or manager of a limited liability company. i. For any company or business entity listed under sub-subsections £, g., and h. of this subsection, if known, any company or business entity that has any material business dealings, contracts, or other involvement with the State, the County or any other North Carolina local government or is regulated by the State, the County or any other North Carolina local government including a brief description of the business activity. j. For a vested trust created, established, or controlled by the filing person of which the filing person or the members of the filing person's immediate family are the beneficiaries, the name and address of the trustee, a description of the trust, and the filing person's relationship to the trust. k A list of all liabilities, excluding indebtedness on the filing person's personal residence, by type of creditor and debtor. 1. A list of any public or private enterprise, incorporated or otherwise, that is organized or operating in the State primarily for religious, charitable, scientific, literary, public health and safety, or educational purposes and of which the person or any member of the person's immediate family is a director, officer, governing board member, employee, or independent contractor as of December 31 of the preceding year, including a list of which of those nonprofit corporations or organizations do business with the County or receive County funds, if known, and a brief description of the nature of the business, or which with due diligence could reasonably be known. (3) A list of each source (not ~mounts)_ of _income_ of _more than five_ . - ~eietea: spe~~f~~ thousand dollars ($5,000) received during the previous year by business or industry type, including salary or wages, professional fees, honoraria, interest, dividends, capital gains, and business income. (4) If the filing person is a practicing attorney, an indication of whether the filing person, or the law firm with which the filing person is affiliated, earned legal fees during the past year in excess of ten thousand dollars ($10,000) from any of the following categories of legal representation: a. Administrative law. b. Admiralty law. c. Corporate law. d. Criminal law. e. Decedents' estates law. £ Environmental law. g. Insurance law. h. Labor law. i. Local government law. j. Negligence or other tort litigation law. k Real property law. 1. Securities law. m. Taxation law. n. Utilities regulation law. (5) Except for a filing person in compliance under subdivision (4) of this subsection, if the filing person is a licensed professional or provides consulting services, either individually or as a member of a professional association, a list of categories of business and the nature of services rendered (not amounts, for which payment for services were charged or paid during the past year in excess of ten thousand dollars ($10,000). 10 (6) An indication of whether the filing person, the filing person's employer, a member of the filing person's immediate family, or the immediate family member's employer is licensed or regulated by, or has a business relationship with, the County. (7) A list of the public servant's or the public servant's immediate family's memberships or other affiliations with, including offices held in, societies, organizations, or advocacy groups, pertaining to subject matter areas over which the public servant's agency or board may have jurisdiction. (8) A list of all things of monetary value (not amounts) greater than two hundred dollars ($200.00) given and received without valuable consideration and under circumstances that a reasonable person would conclude that the thing was given for the purpose of lobbying. The list shall include only those things received during the 12 months preceding the reporting period under subsection (c) of this Section, and shall include the source of those things. The list required by this subdivision shall not apply to things of monetary value received by the filing person prior to the time the person was elected to office or was appointed or employed as a covered person. (9) A list of any felony convictions of the filing person. (b) Each statement of economic interest shall contain sworn certification by the filing person that the filing person has read the statement and that, to the best of the filing person's knowledge and belief, the statement is true, correct, and complete. The filing person's sworn certification also shall provide that the filing person has not transferred, and will not transfer, any asset, interest, or other property for the purpose of concealing it from disclosure while retaining an equitable interest therein. (c) All information provided in the statement of economic interest shall be current as of the last day of December of the year preceding the date the statement of economic interest was due. Section 5. Failure to file. Within 30 days after the date due under Section 2 of this Article, the Clerk to the County Board of Commissioners shall notify persons who have failed to file or persons whose statement is deemed incomplete. The Clerk to the County Board of Commissioners shall simultaneously notify the County Board of Commissioners. Article 3. Ethical Standards for Covered Persons. Section 1. Use of public position for private gain. (a) Except as permitted under Section 8 of this Article, a covered person shall not knowingly use the covered person's public position in an official action or legislative action that will result in financial benefit, direct or indirect, to the covered person, a member of the covered person's extended family, or business with which the covered person is associated. This subsection shall not apply to financial or other benefits derived by a covered person that the covered person would enjoy to an extent no greater than that 11 which other citizens of the County would or could enjoy, or that are so remote, tenuous, insignificant, or speculative that a reasonable person would conclude under the circumstances that the covered person's ability to protect the public interest and perform the covered person's official duties would not be compromised. (b) A covered person shall not mention or permit another person to mention the covered person's public position in non-County governmental advertising that advances the private interest of the covered person or others. The prohibition in this subsection shall not apply to political advertising, news stories, news articles, the inclusion of a covered person's position in a directory or biographical listing, or the charitable solicitation for a nonprofit business entity qualifying under 26 U.S.C. § 501(c)(3). (c) No covered person shall use or permit the use of County funds for any advertisement or public service announcement in a newspaper, on radio, television, magazines, or billboards, that contains that covered person's name, picture, or voice, except in case of County official action or other County official business and only if the announcement is reasonably necessary to the covered person's official function. Section 2. Gifts. (a) A covered person shall not knowingly, directly or indirectly, ask, accept, demand, exact, solicit, seek, assign, receive, or agree to receive anything of value for the covered person, or for another person, in return for being influenced in the discharge of the covered person's official responsibilities, other than that which is received by the covered person from the County for acting in the covered person's official capacity. (b) A covered person may not solicit for a charitable purpose any gift from any subordinate County employee. This subsection shall not apply to generic written solicitations to all members of a class of subordinates. Nothing in this subsection shall prohibit a covered person from serving as the honorary head of a charitable solicitation for a nonprofit business entity qualifying under 26 U.S.C. § 501(c)(3). (c) No covered person shall knowingly accept a gift, directly or indirectly, from a lobbyist or lobbyist principal as defined in Chapter 120C of the North Carolina General Statutes. (d) No public servant shall knowingly accept a gift, directly or indirectly, from a person whom the public servant knows or has reason to know any of the following: (1) Is doing or is seeking to do business of any kind with the County. (2) Is engaged in activities that are regulated or controlled by the County. (3) Has financial interests that may be substantially and materially affected, in a manner distinguishable from the public generally, by the performance or nonperformance of the public servant's official duties. (e) Subsections (c) and (d) of this Section shall not apply to any of the following: (1) Food and beverages for immediate consumption in connection with public events. (2) Informational materials relevant to the duties of the covered person. (3) Reasonable actual expenditures of the covered person for food, beverages, registration, travel, lodging, other incidental items of nominal value, and entertainment, in connection with (i) a covered 12 (4) (5) (6) ~~) fig) person's attendance at an educational meeting for purposes primarily related to the public duties and responsibilities of the covered person, employee, or in order for the covered person to participate as a speaker or member of a panel; or (ii) a covered person's attendance and participation in meetings of a state, regional, national, or international organization of which the County is a member or that the covered person is a member or participant of by virtue of that person's public position, or as a member of a board, agency, or committee of such organization, provided the following conditions are met: a. The reasonable actual expenditures shall be made by a lobbyist's principal, and not a lobbyist. b. Any educational meeting must be attended by at least 10 or more participants, have a formal agenda, and notice of the meeting has been given at least 10 days in advance. c. Any food, beverages, or entertainment must be provided to all attendees or defined groups of 10 or more attendees. d. Any entertainment must be incidental to the principal agenda of the educational meeting. A plaque or similar nonmonetary memento recognizing individual services in a field or specialty or to a charitable cause. Gifts accepted on behalf of the County for the benefit of the County. Anything generally made available or distributed to the general public or all other County employees by lobbyists or lobbyist's principals. Gifts from the covered person's extended family, or a member of the same household of the covered person. Gifts given to a public servant not otherwise subject to an exception under this subsection, where the gift is food and beverages, transportation, lodging, entertainment or related expenses associated with the public business of industry recruitment, promotion of international trade, or the promotion of travel and tourism, and the public servant is responsible for conducting the business on behalf of the County, provided all the following conditions apply: a. The public servant did not solicit the gift, and the public servant did not accept the gift in exchange for the performance of the public servant's official duties. b. The public servant reports electronically to the Clerk to the County Board of Commissioners within 30 days of receipt of the gift or of the date set for disclosure of public records under G.S. 132-6(d), if applicable. The report shall include a description and value of the gift and a description how the gift contributed to the public business of industry recruitment, promotion of international trade, or the promotion of travel and 13 tourism. This report shall be posted to the County's public Web site. c. A tangible gift, other than food or beverages, not otherwise subject to an exception under this subsection shall be turned over as County property to the County Finance Department within 30 days of receipt, except as permitted under subsection (f) of this Section. (9) Gifts of personal property valued at less than one hundred dollars ($100.00) given to a public servant in the commission of the public servant's official duties if the gift is given to the public servant as a personal gift in another country as part of an overseas trade mission, and the giving and receiving of such personal gifts is considered a customary protocol in the other country. (10) Gifts given or received as part of a business, civic, religious, fraternal, personal, or commercial relationship not related to the person's public service or position and made under circumstances that a reasonable person would conclude that the gift was not given for the purpose of lobbying. (f) A prohibited gift that would constitute an expense appropriate for reimbursement by the County if it had been incurred by the public servant personally shall be considered a gift accepted by or donated to the County, provided the public servant has been approved by the County to accept or receive such things of value on behalf of the County. The fact that the County's reimbursement rate for the type of expense is less than the value of a particular gift shall not render the gift prohibited. (g) A prohibited gift shall be declined, returned, paid for at fair market value, or donated immediately to charity or the County. (h) A covered person shall not accept an honorarium from a source other than the County for conducting any activity where any of the following apply: (1) The County reimburses the covered person for travel, subsistence, and registration expenses. (2) The County's work time or resources are used. (3) The activity would be considered official duty or would bear a reasonably close relationship to the covered person's official duties. An outside source may reimburse the County for actual expenses incurred by a covered person in conducting an activity within the duties of the covered person, or may pay a fee to the County, in lieu of an honorarium, for the services of the covered person. An honorarium permissible under this subsection shall not be considered a gift for purposes of subsection (c) of this Section. (i) Acceptance or solicitation of a gift in compliance with this Section without corrupt intent shall not constitute a violation of the statutes related to bribery under G.S. 14-217, 14-218, or 120-86. Section 3. Other compensation. 14 A public servant shall not solicit or receive personal financial gain, other than that received by the public servant from the County, or with the approval of the County, for acting in the public servant's official capacity, or for advice or assistance given in the course of carrying out the public servant's duties. Section 4. Use of information for private gain. A public servant shall not use or disclose nonpublic information gained in the course of, or by reason of, the public servant's official responsibilities in a way that would affect a personal financial interest of the public servant, a member of the public servant's extended family, or a person with whom or business with which the public servant is associated. A public servant shall not improperly use or improperly disclose any confidential information. Section 5. Other rules of conduct. (a) A public servant shall make a due and diligent effort before taking any action, including voting or participating in discussions with other public servants on a board on which the public servant also serves, to determine whether the public servant has a conflict of interest. If the public servant is unable to determine whether or not a conflict of interest may exist, the public servant has a duty to inquire of the County attorney as to that conflict. (b) A public servant shall continually monitor, evaluate, and manage the public servant's personal, financial, and professional affairs to ensure the absence of conflicts of interest. (c) A public servant shall obey all other civil laws, administrative requirements, and criminal statutes governing conduct of County government applicable to appointees and employees. Section 6. Public servant participation in official action. (a) Except as permitted by subsection (d) of this Section and under Section 8 of this Article, and, with respect to the County Board of Commissioners, consistent with G.S. § 153A-44, no public servant acting in that capacity, authorized to perform an official action requiring the exercise of discretion, shall knowingly participate in an official action by the County if the public servant, a member of the public servant's extended family, or a business with which the public servant is associated, has an economic interest in, or a reasonably foreseeable benefit from, the matter under consideration, which would impair the public servant's independence of judgment or from which it could reasonably be inferred that the interest or benefit would influence the public servant's participation in the official action. A potential benefit includes a detriment to a business competitor of (i) the public servant, (ii) a member of the public servant's extended family, or (iii) a business with which the public servant is associated. (b) A public servant described in subsection (a) of this Section shall abstain from taking any verbal or written action in furtherance of the official action. The public servant shall submit in writing to the County the reasons for the abstention. When the action relates to the responsibilities of a board, the abstention shall be recorded in the board's minutes. 15 (c) A public servant shall take appropriate steps, under the particular circumstances and considering the type of proceeding involved, to remove himself or herself to the extent necessary, to protect the public interest and comply with this Policy, from any proceeding in which the public servant's impartiality might reasonably be questioned due to the public servant's familial, personal, or financial relationship with a participant in the proceeding. A participant includes (i) an owner, shareholder, partner, member or manager of a limited liability company, employee, agent, officer, or director of a business, organization, or group involved in the proceeding, or (ii) an organization or group that has some specific, unique, and substantial interest in the proceeding. Proceedings include quasi-judicial proceedings, other permitting and proceedings and legislative proceedings. A personal relationship includes one in a leadership or policy-making position in a business, organization, or group. (d) If a public servant is uncertain whether the relationship described in subsection (c) of this Section justifies removing the public servant from the proceeding under subsection (c) of this Section, the public servant shall disclose the relationship to the person presiding over the proceeding and seek appropriate guidance. The presiding officer, in consultation with legal counsel if necessary, shall then determine the extent to which the public servant will be permitted to participate. If the affected public servant is the person presiding, then the vice-chair or any other substitute presiding officer shall make the determination. A good-faith determination under this subsection of the allowable degree of participation by a public servant is presumptively valid. Section 7. Legislator participation in,legislative action__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ~eietea: orr~~a~ (a) Except as permitted under Section 8 of this Article, no legislator shall ~ - ~eietea: s knowingly participate in a legislative action or for which the legislator is excusable as provided in G.S. § 153A-44; or (2) if the legislator, a member of the legislator's extended family, the legislator's client, or a business with which the legislator is associated, has an economic interest in, or may reasonably and foreseeably benefit from the action, and if after considering whether the legislator's judgment would be substantially influenced by the interest and considering the need for the legislator's particular contribution, including special knowledge of the subject matter to the effective functioning of the County Board of Commissioners, or the County Board of Health, whichever is applicable, the legislator concludes that an actual economic interest does exist which would impair the legislator's independence of judgment. A potential benefit includes a detriment to a business competitor of (i) the legislator, (ii) a member of the legislator's extended family, or (iii) a business with which the legislator is associated. The legislator shall submit in writing to the County Board of Commissioners or the County Board of Health, whichever is applicable the reasons for the need to not participate in the legislative matter to enable the applicable Board to vote on excusing the legislator from voting. (b) If the legislator has a material doubt as to whether the legislator should act, the legislator must submit the question, in writing, to the County Board of Commissioners or to the County Board of Health, whichever is applicable for a determination by the applicable Board. Section 8. Permitted participation exception. 16 Notwithstanding Sections 6 and 7 of this Article, a covered person may participate in an official action or legislative action under any of the following circumstances except as specifically limited: (1) The only interest or reasonably foreseeable benefit that accrues to the covered person, the covered person's extended family, or business with which the covered person is associated as a member of a profession, occupation, or general class is no greater than that which could reasonably be foreseen to accrue to all members of that profession, occupation, or general class. (2) When an official or legislative action affects or would affect the covered person's compensation and allowances as a covered person. (3) Before the legislator participated in the official or legislative action, the legislator submitted the question, in writing, to the County Board of Commissioners or the County Board of Health, whichever is applicable and the applicable Board did not excuse the legislator from voting. (4) Before participating in an official action, a public servant made full written disclosure to the County Manager who then, with the advise of the County attorney, made a written determination that the interest or benefit would neither impair the public servant's independence of judgment nor influence the public servant's participation in the official action. The County Manager shall file a copy of that written determination with the Clerk to the County Board of Commissioners. (5) When action is ministerial only and does not require the exercise of discretion. (6) When a public or legislative body records in its minutes that it cannot obtain a quorum in order to take the official or legislative action because the covered person is disqualified from acting under Section 6 or 7 of this Article or under this Section, the covered person may be counted for purposes of a quorum, but shall otherwise abstain from taking any further action. Section 9. Employment and supervision of members of covered person's extended family. A covered person shall not cause the employment, appointment, promotion, transfer, or advancement of an extended family member of the covered person to a County office, or a position to which the covered person supervises or manages, except for county employee positions as permitted by the Orange County Personnel Ordinance. A public servant shall not supervise, manage, or participate in an action relating to the discipline of a member of the public servant's extended family, except as specifically authorized by the County's Personnel Ordinance. Article 4. Violation Consequences. Section 1. Violation Consequences. (a) The willful failure of any public servant serving on a board (other than the County Board of Commissioners) to comply with this Policy is misfeasance, malfeasance, or nonfeasance. To the extent permitted by North Carolina law, in the event of misfeasance, malfeasance, or nonfeasance, the offending public servant serving on a board is subject to removal by the County Board of Commissioners from the board of 17 which the public servant is a member. Nothing in this Policy authorizes a public servant to participate in an official action which participation is otherwise prohibited by law. (b) The willful failure of any public servant serving as a County employee to comply with this Policy is a violation of a written work order, thereby permitting, to the extent permitted by North Carolina law, disciplinary action as allowed by North Carolina law and the County Personnel Ordinance, including termination from employment. (c) The County Board of Commissioners may seek to enjoin violations of Article 3, Section 4. (d) The failure of a member of the County Board of Commissioners to comply with the disclosure requirements of Title VII, Chapter 460 of the 1987 Session Laws, subjects the failing Board member to the penalties prescribed in Title VII, including forfeiture of the office of County Commissioner as prescribed in Title VII. Article 5. Miscellaneous Section 1. Severability. If any Section or provision of this Policy is declared unlawful or invalid by the courts, that declaration does not affect the validity of this Policy as a whole or any part other than the part so declared unlawful or invalid. Section 2. Effective date. This Policy becomes effective upon its adoption by the County Board of Commissioners. Upon motion of Commissioner seconded by Commissioner ,the foregoing Policy was adopted this the day of , 2006. Ayes: Noes: I, Donna S. Baker, Clerk to the Board of Commissioners for the County of Orange, North Carolina, DO HEREBY CERTIFY that the foregoing is a true copy of so much of the proceedings of said Board at a meeting held on as relates in any way to the adoption of the foregoing and that said proceedings are recorded in Minute Book No. of the minutes of said Board. WITNESS my hand and the seal of said County, this day of , 2006. Clerk to the Board of Commissioners F:\Lisa\orange county\OC Ethics and Conduct Policy rev by QeQ.doc