SECOND COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 961048

Reaffirming the establishment of the City's method of disclosing potential conflicts of interest and substantial interests, pursuant to State law; amending and reenacting Sections 2-1017 and 2-1020; and directing the City Clerk to send a certified copy of this ordinance to the Missouri Ethics Commission.

WHEREAS, Section 105.485.4, RSMo. permits the City to adopt legislation establishing a method of disclosing potential conflicts of interest and substantial interests; and

WHEREAS, to implement local controls, an ordinance must be passed every two years, by September 15; and

WHEREAS, the City first enacted local controls in 1991 by Third Committee Substitute for Ordinance 900515, as Further Amended (which enacted Section A7.26 of the former Administrative Code) and Committee Substitute for Ordinance 911022, as Amended; and

WHEREAS, local controls were adopted for members of boards and commissions by the passage of Second Committee Substitute for Ordinance 951320 in 1996; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. Reaffirmation of Financial Disclosure Rules. That the Mayor and Council reaffirm the establishment of the City's local controls of disclosure of potential conflicts of interest and substantial interests imposed by section 2-1017 and section 2-1020, Code of Ordinances.

Section 2. Local Financial Disclosure Rules. That Sections 2-1017 and 2-1020 are repealed and are hereby reenacted as follows:

Sec. 2-1017. Acceptance of gifts.

(a) Unless the context specifically indicates otherwise, the following terms as used in this section are defined as follows:

(1) Gift means anything of more than $100.00 of value given to a person at one time, whether tangible or intangible, which would reasonably be considered

of worth, use or service to the person to whom it is conferred.

a. It includes but is not limited to:

1. Money.

2. Products or merchandise.

3. Works of art or collectibles.

4. Stocks, bonds, notes or options.

5. An interest in real property.

6. Contracts or a promise of a future interest in a contract.

7. An interest or a promise of a future interest in a business.

8. Meals, beverages or lodging.

9. Transportation for noncity purposes.

10. Services, including loaned employees.

11. Loans, loan guarantees, cosigning.

12. Forgiveness of a debt.

13. Discounts or rebates not extended to the public generally.

14. Preferential treatment.

15. Tickets or admissions.

16. Free or discounted use of office facilities.

17. Loan of office equipment.

18. Promise or offer of present or future employment.

19. Use of autos, boats, apartments or other recreational or

lodging facilities.

20. Intangible rights such as cause of action.

21. License, patients, copyrights or any interest therein.

22. Any other items tangible or intangible having economic

value.

b. A gift for purposes of this section does not include:

1. Gifts from any immediate family member, parent,

emancipated child, grandparent, grandchild, parent-in-law,

brother-in-law, sister-in-law, nephew, niece, aunt, uncle, great

uncle, great aunt, first cousin, second cousin, or the spouse of

any of these persons.

2. Campaign contributions which are reported under RSMo ch.

130, as amended.

3. Contributions to any cause or organization, including a bona

fide charity, made in response to a direct solicitation from an

officer or employee.

4. Wages or salary paid for work or services from employment

reported under former Administrative Code section A2.11.

5. Compensation paid for goods or services to self-employed

individuals.

c. A gift or gifts totaling in value more than $100.00 given to the officer

or employee or a member of his or her immediate family at the same

or substantially the same time shall be deemed a single gift to the

officer or employee.

(2) Immediate family member means a spouse or unemancipated child.

(3) Officer or employee of the city means any elected or appointed officer or employee of the city.

(4) Substantial interest in legislative or administrative action means persons or organizations which:

a. Are regulated by the city;

b. Provide goods and services to the city for compensation or profit;

c. Seek employment with the city or any agency thereof;

d. Will be directly and substantially affected, either financially or

personally, by any contemplated legislative or administrative action;

or

e. Have or seek contracts for goods or services with any department or

agency of the city.

(b) No officer or employee of the city or an immediate family member of such person shall knowingly accept any gift from any person or business entity having a substantial interest in any legislative or administrative action of the city unless such gift is disclosed as required in this section.

(c) Any officer or employee of the city and any officer or employee of the city upon behalf of any immediate family member receiving a gift as defined in this section shall report such gift within 30 days after receipt of such gift on forms as provided to the city auditor. All such reports shall be considered public records.

(d) Any officer or employee required to file a financial interest statement under Section 2-1020 shall be exempt from the filing requirement of this section.

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Sec. 2-1020. Annual financial disclosure.

(1) Disclosure to Missouri Ethics Commission. Members of the Council, including the Mayor, the City Manager and assistants, the City Clerk, the City Auditor, the Commissioner of Purchases and Supplies, the City Attorney, and the directors of all departments of the City, shall file financial statements with the City Clerk and the Missouri Ethics Commission in conformance with Chapter 105 of the Revised Statutes of Missouri.

(2) Disclosure to the Supreme Court. Judges of the Kansas City Municipal Division of the Circuit Court shall file disclosure reports required of judges by the Supreme Court of Missouri, and will not be required to duplicate filings with the Missouri Ethics Commission or the City Clerk.

(3) Disclosure to the City Clerk. Members of all boards and commissions and designated contractors of the City shall file an annual financial disclosure report on a form provided by the City Clerk, which shall provide the following information before May 1 of each year:

a. Employers who are contractors and/or suppliers of City of Kansas City, Missouri, and from whom the appointee received income of $10,000.00 or

more during the period covered by the report;

b. Each sole proprietorship who are contractors and/or suppliers of City of Kansas City, Missouri, owned by appointee;

c. Each general partnership and joint venture who are contractors and/or suppliers of City of Kansas City, Missouri, and in which the appointee is a

partner or participant;

d. Each closely-held corporation or limited partnership who are contractors and/or suppliers of City of Kansas City, Missouri, and in which the appointee

owns ten percent (10%) or more of any class of the outstanding stock or

units;

e. Each publicly-traded corporation or limited partnership who are contractors and/or suppliers of City of Kansas City, Missouri, and which is listed on a

regulated stock exchange or automated quotation system in which the

appointee owns two percent (2%) or more of any class of outstanding stock,

units or other equity interests;

f. Miscellaneous income of $9,999.99 or more from any single source who are contractors and/or suppliers to City of Kansas City, Missouri, and not

otherwise included in the report;

g. Each corporation who is a contractor and/or supplier to City of Kansas City, Missouri, and in which the appointee served as a director, officer or receivers;

h. Each not-for-profit corporation, association, organization or union in which the appointee served as an officers, director, employee or trustee, except

church, fraternal or service organizations where no pay was received; and

i. Spouse and children who were employed by the City of Kansas City, Missouri, and what department they worked for.

j. Real property owned and/or managed in whole or in part by member, spouse or dependent children within corporate boundaries.

(4) Boards and commissions defined. Members of boards and commissions required to file annual financial disclosure reports with the City Clerk shall include those persons who are members of the following boards and commissions:

a. Board of Trustees of City Trusts b. Board of Zoning Adjustment c. Building and Fire Code Board of Appeals d. City Plan Commission e. Community Video Advisory Board f. Employees Retirement System Board of Trustees g. Environmental Management and Waste Minimization h. Firefighters Pension System Board of Trustees i. Liquor Control Board of Review j. Special Review Boards, including Main Street Special Review Board k. Municipal Art Commission l. Neighborhood Tourist Development Fund Committee m. Parks and Recreation Board of Commissioners n. Municipal Ethics Commission o. Property Maintenance Appeals Board p. Public Improvement Advisory Committee q. Taxicab Code Advisory Board r. Landmarks Commission

(5) Designated contractors defined. Members of designated contractors shall be required by contract with the City to file annual financial disclosure reports with the City Clerk, and shall include those persons who are members of the following bodies:

a. Economic Development Corporation b. Planned Industrial Expansion Authority c. Land Clearance for Redevelopment Authority d. Tax Increment Financing Commission e. Port Authority f. 18th and Vine Authority g. Convention and Visitors Bureau of Greater Kansas City h. Housing Authority Commission i. Industrial Development Authority j. Land Trust k. Kansas City, Missouri Assistance Corporation l. Metropolitan Ambulance Services Trust.

(6) Time for filing by members of boards and commissions. The first disclosure report required of members of boards and commissions shall be filed with the City Clerk prior to being sworn in. An annual revised disclosure report shall be filed by May 1 of each calendar year.

(7) Time for filing by members of designated contractors. The first disclosure report required of members of designated contractors shall be filed with the City Clerk within 30 days of the execution of the contract requiring disclosure. If the contract extends beyond one year, an annual revised disclosure report shall be filed by May 1 of each calendar year during which the contract exists.

Section 3. Filing by the City Clerk with the Missouri Ethics Commission. That the City Clerk is directed to provide a certified copy of this ordinance to the Missouri Ethics Commission, P.O. Box 1254, Jefferson City, Missouri 65102, within ten days of enactment of this ordinance.

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Approved as to form and legality:

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City Attorney