Number
010941
Version
SUBSTITUTE 1
Reference
Sponsor
ALD. D'AMATO
Title
A substitute ordinance relating to the provisions of the city's code of ethics.
Sections
303-3-1 am
303-3-7 am
303-5-2 am
303-5-6 am
303-5-8-a am
303-9-2-a am
303-11-3 am
303-13-3 am
303-13-6 am
303-23-1 rc
303-25-2 am
303-27 rc
303-28 cr
303-35 am
Analysis
This ordinance makes the following changes to the city's code of ethics, all intended to bring the code more in line with the provisions of state statutes pertaining to ethics:
1. It more broadly defines the range of city employes with whom former city officials and employes may not have contact after leaving city service.
2. The code currently requires contracts with the city of Milwaukee worth more than $3,000 over a 12-month period to be reported to the board. Under this ordinance, all contracts worth more than $3,000 over a 12-month period and which are derived in whole or in part from city funds must be so declared.
3. It provides that officials and employes must report honoraria, gifts or expenses worth more than $50 on their statements of economic interests. Presently, honoraria, gifts or expenses worth less than $100 need not be reported.
4. It clarifies that the ethics board may not grant waivers or extensions for the filing of statements of economic interests to candidates for public office.
5. It deletes a provision that exempted officials' and employes' personal residences from their statements of economic interests.
6. It includes participation in limited liability companies as one of the economic interests that must be disclosed by officials and employes.
7. It authorizes the board, once it has made a finding of probable cause with respect to an alleged ethical violation, to refer the matter to the district attorney's office for further investigation and possible prosecution.
8. It obligates the board to retain a hearing examiner to conduct any hearing brought under this section.
9. It authorizes the board to issue orders to officials or employes found guilty of ethical violations directing them to conform their behavior to the provisions of the ethics code. Further, it authorizes the city attorney's office to initiate civil forfeiture actions against persons who do not pay forfeitures assessed pursuant to this section.
10. It authorizes the board to negotiate settlements to conclude actions brought under this section. Such settlements are to be reduced to writing and are to be made available for public inspection.
11. It makes a number of technical revisions to the code.
Body
The Mayor and Common Council of the City of Milwaukee do ordain as follows:
Part 1. Section 303-3-1 of the code is amended to read:
303-3. Definitions. In this chapter:
1. ANYTHING OF VALUE means any money or property, favor, service, payment, advance, forbearance, loan or promise of future employment, but does not include compensation and expenses paid by the city, fees and expenses [[of more than $100 ]] which are permitted and reported to the board of ethics under s. 303-9, political contributions which are reported under ch. 11, Wis. Stats., or hospitality extended for a purpose unrelated to city business by a person other than an organization.
Part 2. Section 303-3-7 of the code is amended to read:
7. INTERNAL REVENUE CODE has the meaning given under s. [[71.01(5)]] >>71.01(6)<< , Wis. Stats.
Part 3. Section 303-5-2 of the code is amended to read:
303-5. Standards of Conduct.
2. No official or other city employe may use his or her public position or office to obtain financial gain or anything of substantial value for the official's or >>other city<< employe's private benefit or that of his or her immediate family, or for an organization with which he or she is associated. This subsection does not prohibit an elected official from using the title or prestige of his or her office to obtain contributions permitted and reported under ch. 11, Wis. Stats.
Part 4. Section 303-5-6 of the code is amended to read:
6. No official or other city employe, member of an official's or other city employe's immediate family, nor any organization with which the official or other city employe or a member of the official's or other city employe's immediate family owns or controls at least 10% of the outstanding equity, voting rights, or outstanding indebtedness may enter into any contract or lease [[with the city of Milwaukee]] involving a payment or payments of more than $3,000 within a 12-month period>>, in whole or in part derived from city funds,<< unless the official or other city employe has first made written disclosure of the nature and extent of such relationship or interest to the board and to the department involved in regard to the contract or lease. Any contract or lease entered into in violation of this subsection may be voided by the city in an action commenced within 3 years of the date on which the ethics board, or the department or officer acting for the city in regard to the allocation of funds from which such payment is derived, knew or should have known that a violation of this subsection had occurred. This subsection does not affect the application of s. 946.13, Wis. Stats.
Part 5. Section 303-5-8-a of the code is amended to read:
8. No former official or other city employe:
a. For 12 months following the date on which he or she ceases to be an official or employe, may, for compensation, on behalf of any person other than a governmental entity, make any formal or informal appearance before, or negotiate with, any officer or employe of a department [[in connection with any judicial or quasi-judicial proceeding, application, contract, claim, or charge which might give rise to a judicial or quasi- judicial proceeding which was under the former official's or employe's, responsibility]] >>with which he or she was associated<< as an official or employe, within 12 months prior to the date on which he or she ceased to be an official or employe.
Part 6. Section 303-9-2-a of the code is amended to read:
303-9. Honorariums, Fees and Expenses.
2. a. Except as provided in par. b, every official required to file who receives for a published work or for the presentation of a talk or participation in a meeting, any lodging, transportation, money or other thing with a combined pecuniary value exceeding [[$100]] >>$50<< excluding the value of food or beverage offered coincidentally with a talk or meeting shall, on his or her statement of economic interests, report the identity of every person from whom the official receives such lodging, transportation, money or other thing during his or her preceding taxable year, the circumstances under which it was received and the approximate value thereof.
Part 7. Section 303-11-3 of the code is amended to read:
303-11. Financial Disclosure.
3. EXTENSION OF DEADLINE. On its own motion or at the request of any individual who is required to file a statement of economic interests, the board may extend the time for filing or waive any filing requirement if the board determines that the literal application of the filing requirements of this section would work an unreasonable hardship on that individual or that the extension of the time for filing or waiver is in the public interest. The board shall set forth in writing as a matter of public record its reason for the extension or waiver. >>Extensions and waivers shall not be granted to candidates for public office.<<
Part 8. Section 303-13-3 of the code is amended to read:
303-13. Form of Statement.
3. The name of any creditor to whom the individual who is required to file or such individual's immediate family, severally or in the aggregate, owes $5,000 or more and the approximate amount owed. [[Excluded from this subsection are debts on personal residences.]]
Part 9. Section 303-13-6 of the code is amended to read:
6. If the individual who is required to file or a member of his or her immediate family received $1,000 or more of his or her income for the preceding taxable year from a partnership, >>limited liability company,<< corporation electing to be taxed as a partnership under subchapter S of the internal revenue code or service corporation under ss. 180.1901 to 180.1921, Wis. Stats., in which the individual or a member of his or her immediate family, severally or in the aggregate, has a 10% or greater interest, the identity of each payer from which the organization received $1,000 or more of its income for its preceding taxable year, except that if the individual who is required to file identifies the general nature of the business in which he or she or his or her immediate family is engaged then no identification need be made of a decedent's estate or an individual, not acting as a representative of an organization, unless the individual is a lobbyist as defined in s. 13.62, Wis. Stats. In addition, no identification need be made of payers from which dividends or interest are received.
Part 10. Section 303-23-1 of the code is repealed and recreated to read:
303-23. Probable Cause of Violation. 1. At the conclusion of its investigation, the board shall, in preliminary written findings of fact and conclusions based thereon, make a determination of whether or not probable cause exists to believe that a violation of this chapter has occurred. If the board determines that no probable cause exists, it shall immediately send written notice of such determination to the accused and to the party who made the complaint. If the board determines that there is probable cause for believing that a violation of this chapter has been committed, its preliminary findings of fact and conclusions may contain:
a. A referral to the district attorney's office recommending further investigation and possible prosecution.
b. An order setting a date for hearing to determine whether a violation of this chapter has occurred. The board shall serve the order upon the accused. A hearing ordered under this subsection shall be commenced within 30 days after the date it is ordered unless the accused petitions for and the board consents to a later date. Prior to any hearing ordered under this subsection, the accused is entitled to full discovery rights, including adverse examination of witnesses who will testify at the hearing at a reasonable time before the date of the hearing.
Part 11. Section 303-25-2 of the code is amended to read:
303-25. Hearing Procedure.
2. The board [[may]] >>shall<< appoint a hearing examiner to conduct hearings under this section. The board may also retain outside counsel and other experts as needed with respect to hearings in accordance with its policies. The selection of a hearing examiner and outside counsel or other experts and any contract for such persons shall be made after solicitation of recommendations from the city attorney and the contract shall be approved for form and content by the city attorney. Any person whose name is mentioned or who is otherwise identified during a hearing being conducted by the board and who, in the opinion of the board, may be adversely affected thereby, may, upon request of the person or a representative of the person, or upon the request of any member of the board, appear at the hearing to testify on his or her own behalf or have a representative appear to so testify, and the board may permit any other person to appear and to testify at a hearing.
Part 12. Section 303-27 of the code is repealed and recreated to read:
303-27. Determinations: Board Actions. If the board determines that no violation of this chapter has occurred, it shall immediately send written notice of such determination to the accused and to the party who made the complaint. If the board determines that a violation of this chapter has occurred, its findings of fact and conclusions may contain one or more of the following orders or recommendations:
1. In the case of a city official, a recommendation that the city official be censured, suspended or removed from office or employment. The recommendation shall be made to the appropriate appointing authority who may censure, suspend or take action to remove the official from office or employment.
2. In the case of a city employe, a recommendation that the city employe be disciplined or discharged. The recommendation shall be made to the appropriate appointing authority.
3. An order requiring the accused to conform his or her conduct to this chapter.
Part 13. Section 303-28 of the code is created to read:
303-28. Settlements.
1. The board may compromise and settle any action or potential action for a violation of this chapter which the board is authorized to take under s. 303-27. An action may be settled for such sum or terms as may be agreed upon between the board and the alleged violator.
2. Whenever the board enters into a settlement agreement with an individual who is accused of a violation of this chapter or who is investigated by the board for a possible violation of this chapter, the board shall reduce the agreement to writing, together with a statement of the board's findings and reasons for entering into the agreement and shall retain the agreement and statement in its office for inspection under s. 303-33-1.
Part 14. Section 303-35 of the code is amended to read:
303-35. Penalty. In addition to any other action, any person violating this chapter shall be subject to a forfeiture of not less than $100 nor more than $1,000 for each violation. >>All forfeitures shall be paid to the city treasurer. The city attorney, when so requested by the board, shall institute proceedings to recover any forfeiture incurred under this section in circuit court which is not paid by the person against whom it is assessed.<<
LRB
APPROVED AS TO FORM
________________________
Legislative Reference Bureau
Date:_____________________
Attorney
IT IS OUR OPINION THAT THE ORDINANCE
IS LEGAL AND ENFORCEABLE
________________________
Office of the City Attorney
Date:____________________
Requestor
Drafter
LRB01359-2f
jro
02/25/02