December 10, 2006 A New Local Ethics Policy

The General Assembly passed the "Comprehensive Governmental Ethics Reform Act of 2006" in February of 2006. T.C.A. § 8-17-101 et seq.

The Ethics Reform Act requires local governments to adopt ethical standards related to the acceptance of gifts and disclosure of conflicts of interest. It also directs CTAS (County Technical Assistance Services) to develop a Model Policy.

Counties must adopt an ethics policy by June 30, 2007.

The policy must address at least two things: (1) disclosure and/or limits on gifts and (2) disclosure of conflicts of interest.

The policy applies broadly to all officials and employees and members of all boards and commissions of a county.

The CTAS Model Policy can be adopted as is or with modifications. The entire Model Policy can be seen here.

Here are a just few abbreviated highlights.

Section 1: The definition of "County" is broad.

The definition of "officials and employees" who are covered by the policy includes elected and appointed county officials, county employees, and members of county boards, agencies, etc.

The Ethics Reform Act mandates disclosure of personal interests that impact or appear to impact the discretion of officials and employees.

A personal interest that must be disclosed is a financial interest of the official or employee or a financial interest of a spouse or child who lives in the same household with the official or employee.

Section 2. Conflicts of interest. A person whose duty it is to vote on county matters must publicly disclose any personal interest that they may have in a matter to be voted upon if that personal interest affects the person’s vote or if it would lead a reasonable person to believe it affects the person’s vote.

Section 3. Matters where a vote is not involved but which require the exercise of discretion. Officials and employees must publicly disclose any personal interest that affects or would lead a reasonable person to believe it affects the person’s exercise of discretion even when there is no vote.

Section 4. Prohibition from accepting gifts by employees and officials.

Section 5. Creation of a five-member County Ethics Committee to receive and investigate complaints of violations of the policy and to refer matters to the appropriate person or agency for further action, if appropriate.

**The Ethics Reform Act does not contain any provisions regarding a local Ethics Committee or enforcement of the ethical standards or specific penalties.

Although the state act does not require an Ethics Committee, the CTAS Model Policy does include creation of such a committee to receive complaints in section 5.

In Hamblen County, there is a commissioner who is a county employee, there are commissioners who serve on multiple boards and agencies, and there are commissioners who vote on budgets and appropriations that financially affect their spouse or other relative.

County Attorney Rusty Cantwell will be the key. If he decides that current commissioners do not have financial interests that create conflicts of interest, then the Model Policy might be adopted as is.

If, however, he decides that the wording of the Model Policy might affect certain current county commissioners due to conflicts and various personal financial interests, you might see county commission asking Mr. Cantwell to make changes that would remove commissioners' conflicts of interest by simply re-defining the term.

Add a few words, remove a few words.

Poof! No more conflicts of interest on county commission or anywhere else!