Fleming Bell Eileen Youens Ethics for NC Local Government Officials

Fleming BellEileen Youens

Ethics for NC Local Government Officials

Objectives

1. Define ethics and ethical behavior.2. Distinguish between legal and ethical standards.3. Explain the effects of role conflicts and

interest conflicts on ethical decision making.4. Apply a process when making ethical decisions.5. Describe how to develop a successful code of ethics.6. Follow the laws governing conflicts in contracting.7. Determine when you cannot vote and when you

must vote on issues before your governing board.

Defining Ethics

1. What is fundamentally appropriate behavior?

2. Doing what is “good,” instead of what is “bad”

3. Characteristics of an ethical person

Making Ethical DecisionsThe public trust can only be preserved if public officials take their calling seriously and make informed decisions that reflectthe core ethical principles that they and their fellow citizens share.

Public officials should also consider who or what is affected by the decision, and how they are affected.

Michael Josephson, Josephson Institute of Ethics

Citizen and Public Officials’ Expectations

• Hold each other accountable for ethical principles such as honesty, fairness, and caring.

• Citizens want public officials to make decisions based on what is good for their communities, not on what is good for the elected officials’ own individual interests.

• Recognize that public officials are the "especially responsible citizens." They have been given a special trust.

Objectives

1. Define ethics and ethical behavior.

2. Distinguish between legal and ethical standards.3. Explain the effects of role conflicts and



Legal vs. Ethical Standards• If people act legally are they also acting ethically?

• How does what’s legal differ from what’s ethical?

Objectives

1. Define ethics and ethical behavior.2. Distinguish between legal and ethical standards.

3. Explain the effects of role conflicts and interest conflicts on ethical decision making.

4. Apply a process when making ethical decisions.5. Describe how to develop a successful code of ethics.6. Follow the laws governing conflicts in contracting.7. Determine when you cannot vote and when you


What people think they ought to do depends largely on how they see their roles, and (most importantly) the conflicts between their roles.

Dorothy Emmet, Rules, Roles, and Relations(New York: St. Martin's Press, 1966)

Conflicts of interest are fundamentally about legal and other conflicts between public and private roles.

Case problems

Objectives


interest conflicts on ethical decision making.

4. Apply a process when making ethical decisions.5. Describe how to develop a successful code of ethics.6. Follow the laws governing conflicts in contracting.7. Determine when you cannot vote and when you


Making Ethical Decisions

2 methods:• Top down – apply ethical principles to the

situation• Bottom out – look at the situation, and ask

who is affected, and how?

Remember that the two methods can work together.

Objectives




Why have Ethics Codes, Regulations, or Statutes?

• Setting a minimum standard of conduct for public officials helps to provide certainty and accountability.

• Ethics codes help to provide identity for groups of public officials.

Defining Codes and Regulations1. Aspirational: Public officials should do these

things2. Prohibitive: Public officials must not do these

things3. Hybrid: Both aspirational and prohibitive4. G.S. 160A-83 provides very general guidelines

for what ethics codes for local elected boards must contain

Required Content (G.S. 160A-83):

1. Obey all applicable laws about official actions taken as board member.

2. Uphold integrity and independence of office.3. Avoid impropriety in exercise of official

duties.4. Faithfully perform duties.5. Act openly and publicly.

Consequences of Violation

No sanctions specified in statute, however:• Remember citizen and media opinion• Disobeying this law is itself unethical• Public could rightly assume that someone who

doesn’t comply with this law will be willing to break others

• Legislature may be watching for compliance by local governments

Issues to Consider in DraftingEthics Codes

1. How detailed should they be?2. What subjects should they cover?3. Should they be positive or negative in tone?4. Who prepares the code? Who is covered by the code?

Objectives


interest conflicts on ethical decision making.4. Apply a process when making ethical decisions.5. Describe how to develop a successful code of ethics.

6. Follow the laws governing conflicts in contracting.7. Determine when you cannot vote and when you


Conflicts in Contracting: 3 Statutes

1. Conflicts of interest G.S. 14-234

2. Misuse of secret information G.S. 14-234.1

3. Gifts and favors G.S. 133-32

Conflicts in Contracting




Making or administering a

contract+

Direct benefit to you or your

spouse=

Class 1 misdemeanor* &

void contract*

* Unless an exception applies

Conflicts of Interest—G.S. 14-234


contract+


spouse=


void contract*


Bottom line: As a board member, you are always involved in “making or administering” contracts entered into by your local government—even if you don’t vote.




contract+


spouse=


void contract*


Bottom line: There’s a direct benefit if you or your spouse:1.own 10% or more of company 2.receive income or commission from the contract3.acquire property under the contract


Exceptions:• Contracts with banks, savings and loans,

public utilities• “Friendly” condemnation• Employment of the spouse of a public officer• Public assistance programs• “Small” jurisdictions



contract+


spouse=


void contract*


If an exception applies, the board member with the conflict may not vote, participate in any way, or attempt to influence others who are voting.

Is there a contract between the local unit and the officer or employee (or spouse)?

Does the officer or employee (or spouse) derive a direct benefit from the contract?

Is the officer or employee involved in making or administering the contract?

Does an exception apply?

No conflict under G.S. 14-234. Officer may not vote on or participate in contract.

Yes

Yes

Yes

No conflict under G.S. 14-234.

Did the officer or employee try to influence (or receive a reward for

influencing) the award of the contract?

No

Conflict! Contract void. Misdemeanor to violator.

Yes

No

No conflict under G.S. 14-234.No

Yes

No

No


Is there a contract between the local unit and the officer or employee (or spouse)?

Does the officer or employee (or spouse) derive a direct benefit from the contract?

Is the officer or employee involved in making or administering the contract?

Does an exception apply?

No conflict under G.S. 14-234. Officer may not vote on or participate in contract.

Yes

Yes

Yes

No conflict under G.S. 14-234.

Did the officer or employee try to influence (or receive a reward for

influencing) the award of the contract?

No

Conflict! Contract void. Misdemeanor to violator.

Yes

No

No conflict under G.S. 14-234.No

Yes

No

No






Use non-public information

gained in official position

+ Pecuniary benefit to you = Class 1

misdemeanor

Misuse of Secret Info—G.S. 14-234.1





Gifts and Favors—G.S. 14-234.1

• past

• current • potential

future contractor or vendor

Public officer or employee who:

• prepares plans or specifications for public contracts, or

• awards or administers public contracts, or

• inspects or supervises construction.

= Class 1 misdemeanor, unless an exception applies.

Gifts and Favors—G.S. 14-234.1

Exceptions:• Honoraria• Gifts of nominal value• Meals at banquets• Gifts to professional organizations• Gifts from friends or family (must be reported)

Objectives


interest conflicts on ethical decision making.4. Apply a process when making ethical decisions.5. Describe how to develop a successful code of ethics.6. Follow the laws governing conflicts in contracting.

7. Determine when you cannot vote and when you must vote on issues before your governing board.

Statutes that Govern Conflicts in Voting

Counties Municipalities

Excused from voting

G.S. 153A-44 G.S. 160A-75

Zoning votes G.S. 153A-340(g) G.S. 160A-381(d)

Board of adjustment

G.S. 153A-345(e1) G.S. 160A-388(e1)

Conflicts in Voting

Board members must vote unless the vote involves:

• the member’s own financial interest (must be direct, substantial, and readily identifiable)*, or

• the member’s official conduct*, or• a contract giving a direct benefit to member or

member’s spouse, but covered by an exception to G.S. 14-234

* Board compensation does not involve the board’s financial interest or official conduct.

Conflicts in Voting


• a zoning map or text amendment reasonably likely to have direct, substantial, and readily identifiable financial impact on the member; or

• a quasi-judicial matter in which board is acting as board of adjustment, and member’s participation would violate an affected person’s constitutional rights to an impartial decision maker.

Conflicts in Voting

Q: When does a governing board “act as a board of adjustment”?

A board of adjustment: • hears appeals of interpretations of the zoning ordinance• grants variances to the zoning ordinance• grants conditional-use permits for certain land uses and

types of development

A: When doing any of these activities—all of which are considered quasi-judicial matters).

Conflicts in Voting


• a zoning map or text amendment reasonably likely to have direct, substantial, and readily identifiable financial impact on the member; or

• a quasi-judicial matter in which board is acting as board of adjustment, and member’s participation would violate an affected person’s constitutional rights to an impartial decision maker.

What type of conflict would violate someone’s constitutional rights?•a member having a fixed opinion before hearing the matter•undisclosed communications between the board member and an affected person•a close familial, business, or other associational relationship with an affected person•a member having a financial interest in the outcome of the matter

Conflicts in Voting

Case problems

Remember NC’s Motto

Esse quam videri

(To be, rather than to seem)

Questions?

Fleming Bell

Phone: 919.966.4210

E-mail: [email protected]

Eileen Youens

Phone: 919.962.0942

E-mail: [email protected]

Documents

Fleming Bell Eileen Youens Ethics for NC Local Government Officials