CHAPTER 290

*Editor's note--Ordinance No. 953, passed August 26, 1996, amended chapter 290 to read as herein set out. Formerly, such chapter pertained to conflicts of interest and derived from Ord. No. 634, 2-7-83.

Cross reference(s)--Civil service in home rule cities - see M.C.L.A. Sec. 117.4i; Recall - see M.C.L.A. Sec. 117.4i; Board of Ethics - see CHTR. Art. V, Ch. 5; ADM. Ch. 276.

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290.01. Declaration of purpose; findings.

The People of the City of Lansing declare public office and public employment are held as a public trust and any effort to realize personal gain through official conduct is a violation of that trust. It is the finding of Council that all City officers and employees are trusted with public functions for the good of the public, that their official powers are fiduciary and are to be used to protect, advance and promote the public interest and not their own; that the people of the City want legislation to ensure that conflicts of interest of officers and employees are eliminated to the fullest extent possible and that violations of rules of ethical conduct are appropriately corrected.

(Ord. No. 953, 8-26-96)

290.02. Definitions.

As used in this chapter:

Board of Ethics means the Board of Ethics created under Chapter 5 of Article V of the City Charter.

Business means a corporation, partnership, sole proprietorship, firm, enterprise, franchise, association, organization, self-employed individual, holding company, joint stock company, receivership, trust, activity or entity, excluding a municipal corporation or governmental entity.

Business with which an individual is associated means a business in which any of the following applies:

(1) The individual is an owner, partner, director, officer or employee;

(2) A member of the individual's immediate family is an owner, partner, director or officer;

(3) The individual or a member of the individual's immediate family is a stockholder of close corporation stock which is worth at least one thousand dollars ($1,000) at fair market value or which represents more than a five percent equity interest; or

(4) The individual or a member of the individual's immediate family is a stockholder of publicly traded stock which is worth at least twenty-five thousand dollars ($25,000) at fair market value or which represents more than ten percent equity interest, other than publicly traded stock under a trading account if the individual reports the name and address of the stockholder.

Business with which an officer, employee or candidate is associated means a business with which the individual is associated.

Candidate means an individual who is a candidate for City office, as defined in Public Act 388 of 1976, as amended, being M.C.L.A. 169.201 through 169.282.

Child means a son or daughter, whether or not the son or daughter is the natural offspring of the legal parent or parents and whether or not the son or daughter is financially dependent on the parent or parents.

Confidential information means information which has been obtained in the course of holding office or employment with the City, and which information is not available to members of the public under the Freedom of Information Act or other law or regulation and which the employee or officer has been instructed is being held confidentially. Any information which is disclosed in a meeting open to the public is deemed not to be confidential.

Gift means a payment, subscription, advance, forbearance, rendering or deposit of money, services or anything of value, made without the exchange of reasonable consideration. Gift does not include anything of value received as a devise, bequest or inheritance or a loan or credit arrangement made according to reasonable and prevailing rates and terms, and which does not discriminate against or in favor of an individual who is an officer or employee because of such individual's status as an officer or employee. "Gift" does not include a contribution or expenditure required to be recorded or reported pursuant to Public Act 388 of 1976, as amended, being M.C.L.A. 169.201 to 169.282. "Gift" does not include a gift received from one or more of the following:

(1) A relative within the fifth degree of consanguinity, under the civil law computation method, to the officer or employee, or the spouse of such a relative; or

(2) A spouse of the officer or employee, or a spouse's relative within the fifth degree of consanguinity to the spouse, under the civil law computation method.

Governmental body means an authority, department, commission, committee, council, board, bureau, division, office, legislative body or other agency (as defined in the City Charter) of the City.

Immediate family means a child of an individual, a spouse of an individual, or an individual claimed by that individual or individual's spouse as a dependent under the Internal Revenue Code, or the parents, parents-in-law, brothers, sisters, sisters-in-law, brothers-in-law, stepparents, stepbrothers or stepsisters of an individual.

Loan means a transfer of money, property or anything else of ascertainable monetary value in exchange for an obligation, conditional or not, to repay in whole or in part.

Officer or employee means an elected or appointed officer or an employee of a governmental body of the City.

(Ord. No. 953, 8-26-96)

290.03. Complaints.

(a) Any person may file a signed written complaint with the City Clerk alleging a violation of Chapter 5 of Article V of the City Charter or of this chapter. Upon receipt of such a complaint, the City Clerk shall simultaneously forward the complaint to the Board of Ethics, the person named in the complaint and the City Attorney. The City Attorney shall provide the Ethics Board with a preliminary written analysis of the complaint no later than thirty (30) days from the date the complaint was filed with the City Clerk. At the next regular meeting following receipt of the City Attorney's analysis, the Board of Ethics shall review and consider the complaint and the City Attorney's analysis. At any time after such review and consideration, the Board of Ethics may do any of the following:

(1) Request the City Attorney to investigate the complaint and report all findings back to the Board; or

(2) Schedule the complaint for further review and consideration; or

(3) Refer the complaint to the City Attorney for criminal prosecution consideration; or

(4) Issue such reports; opinions and findings as the Board deems advisable under the circumstances and in accordance with the City Charter and ordinances; or

(5) Dismiss the complaint based on any of the following grounds:

a. Lack of jurisdiction in the Board of Ethics;

b. Failure of the complaint to state a claim of a violation of the ethics provisions contained in the Charter, law or ordinances;

c. Failure of the complainant to cooperate in the Ethic Board's review and consideration of the complaint; or

(6) Take such other action which the Board deems necessary and as authorized by the Charter or ordinance.

a. Pursuant to Michigan Compiled Laws 15.243(b)(I) and (II), each complaint shall remain confidential until the meeting at which the Board of Ethics receives the analysis of the City Attorney. Continued confidentiality of the complaint and any material resulting from the Board's review and consideration shall be determined on a case-by-case basis in accordance with the Michigan Freedom of Information Act or any successor law.

b. No person shall knowingly make a false or misleading statement in any complaint filed with the City Clerk pursuant to this chapter.

c. Except in the case of dismissal under Section 290.03(a)(5)(A and B), the Board of Ethics shall not issue an opinion on any complaint without providing the person(s) charged with written notice of a complaint and a reasonable opportunity to be heard before the Board.

(Ord. No. 953, 8-26-96)

290.04. Prohibitions.

(a) No person, including any administrative board established under Article V, Chapter 2 of the City Charter, shall directly or indirectly offer or give to any officer, employee or candidate; a member of the immediate family of any officer, employee or candidate; or a business with which any officer, employee or candidate is associated any gift, loan, money, goods, services, contribution, reward, employment or other thing of value based on an agreement or understanding that a vote or official action or decision of an officer, employee or candidate would be influenced thereby.

(b) No officer, employee or candidate, a member of the immediate family of an officer, employee or candidate, or a business with which an officer, employee or candidate is associated shall directly or indirectly solicit or accept any payment, gift, loan, contribution, money, goods, services, reward, employment or other thing of value based on any agreement or understanding with a person, including any administrative board established under Article V, Chapter 2 of the City Charter, that a vote or official action or decision of an officer, employee or candidate would be influenced thereby.

(c) It shall be presumed that a non-monetary gift having a value of less than fifty dollars ($50.00) does not evidence a violation of paragraphs (a) and (b) of this section or of Code Section 206.15. Paragraphs (a) and (b) of this section do not prohibit communication between an individual or organization and a candidate regarding the candidate's views, record or plans for future action regarding an issue or measure in an attempt to determine a candidate's viewpoints or how the candidate plans to act in the future, if such communication results in an endorsement of the candidate, a decision not to endorse the candidate, or a contribution or expenditure required to be recorded or reported under Public Act 388 of 1976, as amended.

(d) No officer or employee shall falsely represent his or her personal opinion to be the official position or determination of the governmental body of which he or she is a member or employee. This subsection shall not apply to statements by elected officials made in the course of fulfilling the responsibilities of their office or in running for election to office, nor shall it apply to the professional opinions of City officers or employees rendered in the course of performing their duties, provided that such opinions are clearly identified as professional opinions.

(e) No officer or employee shall divulge to any unauthorized person confidential information acquired in the course of holding his or her position in advance of the time prescribed by the governmental body of which he or she is a member or employee for its authorized release to the public.

(f) No officer or employee shall use, or allow others to use, the authority, title, or prestige of his or her public office for the attainment of the officer or employee's, or that of a member of his or her immediate family's, private financial benefit in any manner that is inconsistent with public interests.

(g) An officer or employee shall not use personnel, resources, property or funds under his or her official care and control to obtain personal financial gain in addition to his or her official remuneration as an officer or employee for himself or herself, a member of his or her immediate family, or a business with which either is associated.

(h) No officer or employee shall act as an attorney, agent or representative of a person other than himself or herself, before the governmental body of which such officer or employee is a member or employee. This provision shall not prevent an officer or employee from performing his or her responsibilities as an officer or employee.

(i) No officer or employee shall act on behalf of the City by making any policy statements, promising to authorize or to prevent any future action, agreement or contract, when such officer or employee has, in fact, no authority to do so.

(j) No officer or employee shall engage in a business transaction in which the officer, employee, a member of his or her immediate family, or a business with which either is associated, may profit from his or her official position or authority, or benefit financially from confidential information which the officer or employee has obtained or may obtain by reason of that position or authority. This subsection shall not prohibit employment or a contract to conduct instruction which is not done during regularly scheduled working hours, except for annual leave or vacation time, if the officer or employee does not have any direct dealing with or influence on the employing or contracting person or entity in performing his or her official duties for the City.

(k) Except as otherwise provided by law, no officer or employee shall participate in, vote upon or act upon, contracts, the making of loans or grants of public funds, the granting of subsidies, fixing or rates, issuance of permits or certificates, or other regulation or supervision relating to any business in which the officer or employee, or a member of his or her immediate family, or any business with which either is associated has a financial or personal interest, other than an interest as a citizen, officer or employee of the City.

(l) In addition to the provisions set forth in Charter Section 5-505.1, no officer or employee, shall fail to disclose in writing to the Board of Ethics a conflict of interest or any financial interest other than as a citizen of the City in any matter prior to any action by the City in that matter. Nothing in this section shall prohibit the request of an informal opinion by an officer or employee from the Ethics Board regarding a potential conflict of interest. Neither the filing of a request for an informal opinion, nor the making of a statement concerning a potential conflict of interest pursuant to Section 290.05(a), shall create a presumption or inference that an officer or employee actually has a conflict of interest concerning the matter filed with the Ethics Board or disclosed on the public record.

(m) No person shall directly or indirectly solicit, agree, aid or assist any officer or employee to violate this chapter.

(n) The provisions and prohibitions set forth in this section 290.04 shall not be construed to prohibit or restrict City employees from negotiating, entering into or enforcing a collective bargaining agreement between the City and a labor union to which the employee belongs pursuant to State or Federal Law.

(o) The provisions and prohibitions set forth in this section 290.04 are subject tot he applicable provisions and procedures of the State Statute entitled "Contracts of Public Servants with Public Entities," being MCL 15.321 et seq. As the same may be amended from time to time. In the event of a conflict between this section 290.04 and the State Statute in any particular case, the State Statute shall prevail.

(Ord. No. 953, 8-26-96)

290.05. Participation in governmental decisions.

(a) A member of City Council who is required to make a motion to recuse herself/himself, or who is the subject of a motion to recuse herself/himself, on any question before the Council shall, before the matter is brought to a vote, first make a disclosure for the public record to the Council President of the conflict of interest or the financial interest other than as a citizen of the City, if any, or alternatively explaining why, despite any potential conflict, such member of Council is able to vote and otherwise participate fully, objectively ad in the public interest. A statement shall be entered in full in the minutes or other official record of the legislative body. The Clerk shall forthwith forward any such statement on to the Ethics Board. Compliance with the provisions of this section 290.05(a) by an elected official shall be deemed compliance with section 290.04(l).

(b) The provisions and prohibitions set forth in this section 290.05 shall not be interpreted to prohibit or restrict an employee from engaging in negotiations, approval and enforcement of a collective bargaining agreement between the City and a labor union to which the employee belongs pursuant to State and Federal Laws.

(c) The provisions and prohibitions set forth in this section 290.05 are subject to the applicable provisions and procedures of the State Statute entitled contracts of public servants and public entities being MCL 15.321 et seq., as the same may be amended from time to time. In the event of a conflict between this section 290.05 and the State Statute in any particular case, the State Statute shall prevail.

(Ord. No. 953, 8-26-96)

290.06. Investigative assistance.

All City officers and employees shall fully and truthfully respond to any inquiries by the City Attorney or the Board of Ethics in investigating any complaint of a violation of this Chapter. All City employees and elected or appointed officials of the City shall cooperate with any investigations by the Board of Ethics; such cooperation shall include the compilation and production of any information requested by the Board during an investigation unless the information requested is exempt from disclosure under the applicable State Law.

(Ord. No. 953, 8-26-96)

290.07. Distribution of copies of chapter.

The Department of Personnel and Training shall provide a copy of Chapter 5, Article V of the City charter and of this chapter to each officer and employee of the City.

(Ord. No. 953, 8-26-96)

290.08. Statements of financial interests.

(a) For purposes of this section, the following persons shall be referred to as "reporting individuals":

(1) Each elected officer and

(2) Each appointed officer, including appointed officers of the Board of Water and Light, but excluding members of Boards, Commissions or Agencies of the City.

(b) Each reporting individual shall file by May 1 of each year, a sworn written statement of financial interests in accordance with the provisions of this section, unless (s)he has already filed a statement in that calendar year.

(1) An elected officer at the time of filing her/his oath of office;

(2) A reporting individual whose appointment to office is subject to confirmation by the City Council at the time when her/his name is submitted to the Council for consideration;

(3) Any other person at the time (s)he becomes a reporting individual.

(d) The Department of Personnel Services, the Finance Director's Office, City Council Staff and the Office of the Mayor shall cooperate with the City Clerk in notifying individuals of their obligation to file statements of financial interests and in effecting the filing of such statements.

(e) No appointed officer or employee shall be allowed to take the oath of office of shall enter into or continue her/his duties, unless (s)he has filed a statement of financial interests as required by this chapter.

(f) Statements of financial interests shall contain the following information:

(1) The name, address, and type of organization (other than the City) in which the reporting individual was an officer, director, associate, partner, proprietor or employee, or served in any advisory capacity, and from which any income in excess of $4,500.00 was derived during the preceding year.

(2) The identity of any capital asset, located within the City of Lansing, including the address or legal description of real estate from which the reporting individual realized a capital gain of $5,000.00 or more in the preceding calendar year other than the sale of the reporting individual's principal place of residence.

(3) The name of any unit of government, other than the City, which employed the reporting individual during the preceding calendar year.

(4) The name of any person, business or organization from whom the reporting individual received during the preceding calendar year one or more gifts or honoraria having an aggregate value in excess of $500.00, but not including gifts from relatives, nor a campaign contribution or expenditure required to be recorded or reported under Public Act 388 of 1976, as amended.

(5) The name and instrument of ownership in any entity conducting business in the City, in which the reporting individual, or a member of the individual's immediate family had a financial interest during the preceding calendar year. Ownership interests in publicly held corporations need not be disclosed.

(6) The identity of any financial interest in real estate located in the City or other jurisdictions within which the City may own real estate or public utility improvements, other than the principal place of residence of the reporting individual, and the address or, if none, the legal description of the real estate, including all forms of direct or indirect ownership such as partnerships or trusts of which the corpus consists primarily of real estate.

(7) The name of, and the nature of the City action requested by, any person which has applied to the City for any license or franchise, or any permit for annexation, zoning or rezoning of real estate during the preceding calendar year if the reporting individual or a member of the individual's immediate family has a financial interest in such person.

(8) The name of any person doing independent contracting business with the City in relation to which business the reporting individual had a financial interest during the preceding calendar year, and the title or description of any position held by the reporting individual in such person.

(g) Form for statement of financial interests. Typewritten or printed statements of financial interests are to be filed with the City Clerk the statement shall be verified, dated, and signed by the reporting individual personally. It shall be submitted on a form approved by the Board of Ethics.

(h) Filing of statements.

(1) The City's Finance Director and the Personnel Director shall certify to the City Clerk a list (current as of the prior January 1) of the names and mailing addresses of the persons who are required to file a statement of financial interests in the current year.

(2) The City Clerk shall, in writing, notify all persons required to file statements of financial interests under this section. Notice shall be delivered by first class mail to the last known address appearing in City records.

(3) All statements of financial interests shall be available for examination and duplication by the public in the office of the City Clerk during the regular business hours of the City of Lansing, except as otherwise provided by law. Costs of duplicating the statement of financial interests shall be paid by the person requesting the duplication.

(4) No person shall use for any commercial purpose information contained in or copied from statements of financial interests required to be filed by this chapter or form lists compiled form such statements.

(i) Failure to file statements by deadline.

(1) The City Clerk shall notify any person who fails to file such a statement by May 1 of each year, by certified mail of her/his failure to file by the specified date. Such person shall file her/his statement on or before May 31, along with a late filing fee of $20.00. Failure to file by may 31 shall constitute a violation of this chapter, except as provided in subsection (3).

(2) Any person who first becomes subject to the requirement to file a statement of financial interests within 30 days prior to May 1 of any year shall be notified at that time by the appointing or employing authority of the obligation to file and shall file his statement at any time on or before May 31 without penalty. The appointing or employing authority shall notify the City Clerk of the identity of such persons. If such person fails to file a statement by may 31, the City Clerk shall notify such person by certified mail of her/his failure to file by the specified date. Such person shall file her/his statement of financial interests on or before June 15, along with a late filing fee of $20.00. Failure to file by June 15 shall constitute a violation of this chapter, except as provided in subsection (3).

(3) A person who is required to file such statements of financial interest may have one thirty-day filing extension by filing a notice with the City Clerk by the date on which the statement of financial interest is due. Failure to file by the extended deadline shall constitute a violation of this chapter.

(4) A statement of financial interest is considered filed when it is received by the City Clerk.

(Ord. No. 953, 8-26-96)

290.09. Lobbyist and contractor disclosure.

(a) All City officers and employees shall comply with the provisions of MCL 4.411 et seq., as the same may be amended from time to time, being the State Act regulating lobbyists, lobbying agents, and lobbying activities, to the extent that the statutory provisions are applicable to the officers or employees activities.

(b) All contractors or vendors having contractual relationships or open purchase orders with the City shall fully disclose in writing to the City Clerk and the Board of Ethics the existence of any employment, partnership or ownership relationship the contractor or vendor has with a former employee or officer of the City if such relationship was created within one year from the date the officer or employee terminated employment with the city.

(Ord. No. 953, 8-26-96)

290.10. Penalties.

(a) Violation by any person of any provision of this chapter shall be a misdemeanor.

(b) A violation of any provision of this chapter may constitute a ground for forfeiture of office in proceedings brought pursuant to Charter 2-302.

(Ord. No. 953, 8-26-96)

290.11. Education.

The Board of Ethics shall develop a plan for implementation of a program to educate persons subject to the terms of this chapter about their duties and responsibilities hereunder.

(Ord. No. 953, 8-26-96)

290.12. Whistle-blower protection.

(a) The provisions of the Whistle-Blower's Protection Act MCL 15.361 et seq., are intended to apply to employees who report a violation or suspected violation of this chapter.

(b) The City shall not discharge, threaten, or otherwise discriminate against an employee regarding the employee's compensation, terms, conditions, location, or privileges of employment because the employee, or a person acting on behalf of employee, reports or is about to report, or is perceived to have reported or be about to report, verbally or in writing, a violation or suspected violation of this chapter, unless the employee knows that the report is false, or because an employee is requested by the City, or any agency or officer thereof, to participate in an investigation, hearing, or inquiry held by the city, agency or official.

(Ord. No. 953, 8-26-96)