Ethics and Integrity at WAM Winter Conference: Insights on Compliance and Municipal Ethics

Ethics and Integrity 2023 WAM WINTER CONFERENCE NEWLY ELECTED BOOT CAMP Presented by Mark Harris, Attorney 1

Course Course Objectives Objectives 2 1 Learn how to apply ethics to operations and achieve compliance Know your legal and ethical responsibilities 2

Yes, Yes, Ethics Ethics ARE ARE Important! Important! Ethics are the standards or code that governs our conduct Our democracy depends on public trust, which is strengthened by: Commitment to highest ethical standards Transparency Compliance 3

Government is a trust, and the officers of the government are trustees: and both the trust and trustees are created for the benefit of the people. Henry Clay 4

Conflict Conflict of of Interest Interest A difference between what s good for you and what s good for the public Sources of conflict of interest: Financial Prejudicial Professional Personal 5

Characteristics of an ethical municipality HIGH EVERYONE TREATED WITH HONESTY AND RESPECT SENSE OF RESPONSIBILITY TOWARD COMMUNITY AS A WHOLE FREQUENT, OPEN, AND HONEST COMMUNICATION DEEP REGARD FOR FAIRNESS STANDARDS IN QUALITY OF WORK PERFORMED REFLECTION OF HONESTY AND INTEGRITY BELIEF IN DEMOCRATIC PROCESS 6

What What happens happens when act act unethically? when municipalities municipalities unethically? An entire organization can be held criminally liable for any of its employees illegal actions Fraud, environmental waste discharge, and tax offenses are frequent municipal crimes The DOJ recognized the value of municipalities adopting and following a compliance program Effective compliance program can reduce criminal fines by up to 95% 7

Compliance standards and procedures Oversight by high-level personnel Due care in delegating authority Effective Compliance Programs Effective communication to all employees Reasonable steps to achieve compliance Consistent enforcement, including discipline Must address violations/prevent recurrence 8

Legal standard identification of what is permitted (or not). Provides the minimum required and the outer boundary of what is prohibited. How do you establish standards? Ethical standard body of principles or values governing a particular culture or group. Many professional groups (and organizations) have formally adopted ethical guidelines. Moral fundamental principles of right conduct, rather than legalities or customs. This is the highest personal standard. standard founded on the 9

Ethical and conflict of interest guidance is everywhere! Local Ordinances State & Federal Law Municipal Policies and Procedures Professional Codes of Conduct 10

Title 6 Crimes and Offenses Chapter 5, Article 1 Offenses Against Public Administration Offenses by Public Officials Applicable Wyoming State Statutes Title 9 Administration of the Government Chapter 13, Article 1 Government Ethics Public Officials, Members and Employees Ethics Title 15 Cities and Towns Chapter 1, Article 1 General Provisions Powers and Miscellaneous Matters Title 16 City, County, State and Local Powers Chapter 6, Article 1 Public Property - Public Works and Contracts 11

Wyoming Wyoming Ethics Ethics and and Disclosure Disclosure Act Act (9 13 101 (9 13 101 et et seq) seq) You cannot use your position or title for private benefit You cannot use public funds, personnel, time, facilities, or equipment for private benefit You cannot disseminate official information that you obtain through your position 12

What What municipal municipal positions positions are are covered covered by by the the Act? Act? (9 13 102) (9 13 102) APPLIES TO ELECTED OFFICIALS COUNCIL MEMBERS THE ACT DOES NOT APPLY TO MUNICIPAL EMPLOYEES 13

No No Gifts Gifts or or Favors Favors (9 13 102) (9 13 102) Wyoming Ethics and Disclosure Act prohibits elected officials from accepting anything of value . The law provides that this includes a gift which results from holding the office Statutes provide guidance on what is a gift or favor (anything of value to the extent to the extent equal value is not received, and there is a very short list of exclusions from the definition Note that Title 6 gift excludes property with a value less than $20 or IRS limited food, drink or entertainment 14

Gratuities (15 1 128) Prohibition against gratuities applies to mayor, council members, and employees Cannot solicit or receive any benefit, profit or advantage No soliciting or accepting freebies Violations can lead to removal Municipal Officials have burdens in excess of Public Ethics & Disclosure Act Government 15

Misuse of Office Prohibition against using public funds, time, personnel, facilities or equipment for private benefit Cannot use public funds, etc. for a political campaign Cannot disseminate to another person official information obtained through his position that is not available to the general public 16

Official Decisions and Votes (9 13 106) Public has a right to know if a public official is furthering his or their own financial interests by voting a particular way A public official or employee shall not make or vote on any official decision if the official or employee has a substantial financial interest in the matter under consideration Must abstain from voting only in clear cases of personal or private interest weight against importance of his or her right to represent his or her constituency 17

Unlawful Interest in public contracts or works (16 6 118) Unlawful for any person holding office, either by election or appointment, to become interested, either directly or indirectly, in any contract in which he may be called upon to act or vote. Also prohibits to represent individual in such a process or take a gift or bribe as influence. If official discloses interest to all contracting parties and absents himself during the considerations and vote, and does not attempt to influence the vote, does not violate law and contract can be let to official or his company Violations: Contracts become null and void, and offender may be removed from office Criminal punishment can include 10 years prison and major fines 18

Applies to mayors and council members and immediate family Prohibits monetary or other economic benefit from any municipal contract No Money From Any Public Contracts (15-1-127) Violations mean contract will be deemed null and void, any money paid on the contract may be recovered Statute identifies very specific steps to take to appropriately handle such conflicts of interest 19

Financial Disclosure (6 5 118) Public officers orpublic servants who invest funds forunit of government, or who have authority to decide how public funds are invested must disclose benefit or interest in entity. Disclosures shall be made annually in a public meeting and shall be made part of the record of proceedings Failure to comply is misdemeanor This is a criminal statute regarding conflict ofinterest 20

Nepotism (9 13 104) Cannot advocate or cause employment, appointment, promotion, transfer or advancement of family member Cannot supervise or manage a family member and cannot in his official capacity, participate in any matter relating to employment or discipline. Absolute prohibitions extremely broad 21

Penalties Vary by Statute Title 9 Misdemeanors Can include up to one year in jail and $1,000 fine(s) and removal from office Title 15 Any violation is sufficient cause for removal from office Title 6 Felony for some offenses Up to 10 years in jail and $5,000 fine(s) 22

Responsible choices require careful consideration of those we serve Does the decision provide for the greatest good for the greatest number? Does the decision respect the rights of the individuals involved? Is the decision fair, equitable and impartial? 23

The The Appearance Appearance Test Test Front page test Discern Disclose Disengage 24

The toughest choices you will make as a government official are not between right and wrong, but between right and right. 25

Questions about Ethics and Conflict of Interest? 26

Thank You! This presentation was prepared by Community Builders, Inc., a Wyoming based consulting firm specializing in community and economic development, under contract and in cooperation with the Wyoming Association of Municipalities. Contact Info: Joe Coyne, Principal Consultant (307) 631 2413 (new) Joe@consultCBI.com 27