CITY OF CHICAGO GOVERNMENTAL ETHICS ORDINANCE CHAPTER 2-156, MUNICIPAL CODE OF CHICAGO (as amended, effective January 17, 2018*, February 19, 2018*, March 28, 2018*, March 13, 2019*, May 29, 2019*, September 28, 2019*, December 17, 2019*, January 1, 2020*, and April 14, 2020* ) Board of Ethics 740 N. Sedgwick, Suite 500 Chicago, IL 60654 312.744.9660 Lori Lightfoot, Mayor William F. Conlon, Chair, Board of Ethics www.cityofchicago.org/ethics Steven I. Berlin, Executive Director @ChicagoEthicsBd Email: steve.berlin@cityofchicago.org *Red text in red indicates amendments effective January 17, 2018 *Green text indicates amendments effective February 19, 2018 *Purple text indicates amendments effective March 28, 2018 *Brick text indicates amendments effective March 13, 2019 *Blue text indicates amendments effective May 29, 2019 *Violet text indicates amendments effective September 28, 2019 *Brown text indicates amendments effective December 17, 2019 *Teal text indicates amendments effective January 1, 2020 *Magenta text indicates amendments effective April 14, 2020 (f) The remedies set forth in paragraphs (c) and (d) of this section shall be the sole and exclusive remedies for any violations of this section. Part 2. Conflicts of Interest and Improper Influence. 2-156-020. Fiduciary duty. Officials and employees shall at all times in the performance of their public duties owe a fiduciary duty to the city. 2-156-030. Improper influence. (a) No official or employee shall make, participate in making or in any way attempt to use his position to influence any city governmental decision or action in which he knows or has reason to know that he has any financial interest distinguishable from its effect on the public generally, or from which he has derived any income or compensation during the preceding twelve months or from which he reasonably expects to derive any income or compensation in the following twelve months. (b) No elected official, or any person acting at the direction of such official, shall contact either orally or in writing any other city official or employee with respect to any matter involving any person with whom the elected official has any business relationship that creates a financial interest on the part of the official, or the domestic partner or spouse of the official, or from whom or which he has derived any income or compensation during the preceding twelve months or from whom or which he reasonably expects to derive any income or compensation in the following twelve months. In addition, no elected official may preside over or participate in any discussion in any City Council Committee hearing, or participate in any discussion in any city council meeting or vote on any matter involving the person with whom the elected official has any business relationship that creates a financial interest on the part of the official, or the domestic partner or spouse of the official, or from whom or which he has derived any income or compensation during the preceding twelve months or from whom or which he reasonably expects to derive any income or compensation in the following twelve months. 2-156-060. City-owned property. No official or employee shall engage in or permit the unauthorized use of any real or personal property owned or leased by the City for City business. 2-156-070. Use or disclosure of confidential information. (a) Except as otherwise provided in subsection (b) or (c) of this section, no current or former official or employee, including any current or former official or employee of the board or the inspector general, shall use or disclose, other than in the performance of his official duties and responsibilities, or as may be required by law, confidential information or any non-public information, including the identity of the subject of an investigation, gained in the course of an investigation or by reason of his position or employment. (b) If any person requests the opinion of the board of regarding past or ongoing conduct, and if the board determines, pursuant to its rules, that the conduct involves a minor violation of this chapter, the board may issue such person a letter of warning or admonition for the first such violation. However, if the board determines, pursuant to its rules, that the conduct involves a violation of this chapter which is not a minor violation or that the conduct involves a subsequent violation of the same conduct for which the person has been issued a letter of warning or admonition, the board shall advise such person to stop the conduct and inform the person of this subsection’s timeline for self-reporting. Such person may, if the person wishes, self-report the violation to the inspector general authority within 14 days. If the board finds that the person did not self-report the violation 15 within 14 days, the board shall provide the person’s name, the violation reported, and all related information the board deems relevant, to the inspector general. Except for purposes of investigations for subsequent violations of the same conduct, a letter of warning or admonition issued to a subject pursuant to this section shall be kept confidential. This subsection applies to conduct that occurred or is occurring on or after July 1, 2013. (c) Any person may use an advisory opinion issued by the board regarding such person’s future conduct as evidence supporting the person’s position or as otherwise appropriate in any investigation or disciplinary proceeding. Once the person uses the board’s opinion in accordance with this subsection, the board, if requested in writing citing this subsection by the person or one of the entities referred to in this subsection, shall disclose all confidential or non-public information related to the advisory opinion that does not compromise a third party’s confidentiality to the inspector general or any city department or agency conducting the investigation or disciplinary proceeding. 2-156-080. Conflicts of interest; appearance of impropriety. (a) No official or employee shall make or participate in the making of any governmental decision with respect to any matter in which he has any financial interest distinguishable from that of the general public, or from which he has derived any income or compensation during the preceding twelve months or from which he reasonably expects to derive any income or compensation in the following twelve months. (b) (1) With regard to any matter pending before the City Council or any City Council committee, any member of the city council who has any financial interest that is either (1) distinguishable from that of the general public or all aldermen, or (2) from which the member has derived any income or compensation during the preceding twelve months or from which the member reasonably expects to derive any income or compensation in the following twelve months shall publicly disclose in detail the nature and extent of such interest, including when such interest commenced, on the records of proceedings of the City Council, and City Council Committee, and shall also notify, with the same detail, the Board of Ethics of such interest within 96 hours of delivery by the Clerk to the member, of the introduction of any ordinance, resolution, order or other matter in the city council, or as soon thereafter as the member is or should be aware of such potential conflict of interest. If a disclosing member believes that disclosure of any required detail is prohibited by applicable privacy law or a confidentiality requirement, that member shall include a statement of the pertinent basis for non-disclosure, and otherwise disclose fully. The Board of Ethics shall review any disclosure made under this subsection and shall determine whether the member has provided sufficient detail regarding the conflict of interests, and may request more detail if it deems that is necessary. The Board of Ethics shall give the member one opportunity to correct the defect in the disclosure within seven days from the date of such request. The Board of Ethics shall make post such disclosures, including any additional detail submitted by the member, on the Board of Ethics website, in a searchable format, available for public inspection and copying immediately upon receipt. The member shall abstain from participating in any discussion concerning and voting on the matter but shall be counted present for purposes of a quorum. The obligation to report a potential conflict of interest under this subsection arises as soon as the member of the City Council is or should be aware of such potential conflict. (2) To avoid even an appearance of impropriety, any member of the City Council who has any business relationship with a person or entity with a matter pending before the City Council 16 or any City Council Committee: (i) that creates a financial interest on the part of such member, or the domestic partner or spouse of such member, or (ii) from whom or which the member has derived any income or compensation during the preceding twelve months or from whom or which the member reasonably expects to derive any income or compensation in the following twelve months, shall publicly disclose in detail the nature of such business relationship or income or compensation, including when such relationship commenced, on the records of proceedings of the City Council and the City Council Committee, and shall also notify, with the same detail, the Board of Ethics of such relationship within 96 hours of delivery by the Clerk to the member, of the introduction of any ordinance, resolution, order or other matter in the city council, or as soon thereafter as the member is or should be aware of such potential conflict of interest. If a disclosing member believes that disclosure of any required detail is prohibited by applicable privacy law or a confidentiality requirement, that member shall include a statement of the pertinent basis for non-disclosure, and otherwise disclose fully. The Board of Ethics shall review any disclosure made under this subsection and shall determine whether the member has provided sufficient detail regarding the conflict of interests, and may request more detail if it deems that is necessary. The Board of Ethics shall give the member one opportunity to correct the defect in the disclosure within seven days from the date of such request. The Board of Ethics shall make post such disclosures, including any additional detail submitted by the member, on the Board of Ethics website, in a searchable format, available for public inspection and copying immediately upon receipt. The member shall abstain from participating in any discussion concerning and voting on the matter but shall be counted present for purposes of a quorum. The obligation to report a potential conflict of interest under this subsection arises as soon as the member of the city council is or should be aware of such potential conflict. For purposes of this subsection (2) only: "matter pending before the City Council or any City Council Committee" shall refer to City Council action involving the award of loan funds, grant funds or bond proceeds, bond inducement ordinances, leases, land sales, zoning matters, the creation of tax increment financing districts, concession agreements or the establishment of a Class 6(b) Cook County property tax classification. (c) (3) Any Chairman of a City Council Committee who makes, pursuant to subsection (b)(1) or (b)(2) of this section, more than three conflict of interest disclosures within a 12-month period pertaining to distinct matters before or reported by that Committee, shall eliminate the conflict of interest or terminate the business relationship that caused such member to make such disclosures, or resign from serving as the Chairman of the Committee. (4) Any member who fails to provide additional details regarding a disclosed conflict of interest or business relationship if requested by the Board of Ethics, or who otherwise violates this subsection, in addition to any other applicable penalty, shall be subject to a fine of not less than $500 and not more than $2,000 for each offense. Each day that a violation continues shall constitute a separate and distinct offense to which a separate fine shall apply. Any official or employee who has a financial interest in any matter pending before any city agency shall disclose the nature of such interest to the board of ethics and, if the matter is pending in his own agency, to the head of the agency, except as provided by subsection (b). The obligation to report under this subsection arises as soon as the official or employee is or should be aware of the pendency of the matter. This subsection does not apply to applications for health, disability or worker's compensation benefits. 17 2-156-090. Representation of other persons. (a) No elected official or employee may represent, or derive any income or compensation from the representation of, any person other than the city in any formal or informal proceeding or transaction before any city agency in which the agency's action or non-action is of a nonministerial nature; provided that nothing in this subsection shall preclude any employee from performing the duties of his employment, or any elected official from appearing without compensation before any city agency on behalf of his constituents in the course of his duties as an elected official. (b) No elected official or employee may represent or derive any income, or compensation or other tangible benefit from the representation of, any person, in any judicial, or quasi-judicial or other proceeding before any administrative agency or court: (i) in which the cCity is an adverse party; or (ii) that may result in an adverse effect on city revenue, city finances, or the health, safety, welfare or relative tax burden of any city residents. and that person's interest is adverse to that of the city. (c) No elected official or employee may lobby the State, the County, or any other unit of local government in the State, or derive any income or compensation from lobbying the State, the County, or any other unit of local government in the State, on behalf of any person; provided that nothing in this Section shall preclude (1) any employee from performing the duties of their employment, (2) any elected official from appearing before any unit of government on behalf of the City, the State, or the County within compensation or on behalf of their constituents in the course of their duties as an elected official, (3) subject to the limitation of subsection (b) of this Section, an employee or elected official who is an attorney from providing legal representation to any person seeking judicial, quasi-judicial, administrative or legislative action, or (4) any elected official or employee from engaging in political activity. For the purposes of this Section, “lobby” or “lobbying” means, as applicable, any action that would require the person to register as a lobbyist under the Illinois Lobbyist Registration Act, the Cook County Lobbyist Registration Ordinance, or any applicable lobbyist registration ordinance adopted by a unit of local government in the State. (cd) No appointed official may represent any person in the circumstances described in subsection (a), or (b), or (c) unless the matter is wholly unrelated to the official's city duties and responsibilities. (Prior Code §26.2-9) (de) No official or employee may derive any income, compensation or other tangible benefit from providing opinion evidence as an expert against the interests of the city in any judicial or quasijudicial proceeding before any administrative agency or court. 2-156-100. Post-employment restrictions on assistance and representation. (a) No former official or employee shall assist or represent any person other than the city in any judicial or administrative proceeding involving the city or any of its agencies, if the official or employee was counsel of record or participated personally and substantially in the proceeding during his term of office or employment. (b) No former official or employee shall, for a period of one year after the termination of the official's or employee's term of office or employment, assist or represent any person in any business transaction involving the city or any of its agencies, if the official or employee participated personally and substantially in the subject matter of the transaction during his term of office or employment; provided, that if the official or employee exercised contract management authority with respect to a contract this prohibition shall be permanent as to that contract. 18 (c) Nothing in this section shall be construed to restrict a former official’s or employee’s activities on behalf of, and while employed by, another government agency. 2-156-105. Post-employment restrictions on lobbying. (a-1) Starting on January 1, 2014, an alderman shall be prohibited from lobbying the City of Chicago or any city department, board or other city agency for a period of one year after leaving that position. (a) Any person who serves as (i) a non-clerical employee of the Office of the Mayor, or (ii) a department head, shall be prohibited from lobbying the City of Chicago or any city department, board or other city agency for a period of two years after leaving that position. (b) Any employee who holds an exempt position in a city department, board or other city agency on or after May 16, 2011, other than a person described in subsection (a) of this section, shall be prohibited from lobbying the department, board or agency in which he or she was employed for a period of two years after that employment ends. (c) Any person who is appointed by the mayor to the board of any board, commission, authority or agency, on or after May 16, 2011, shall be prohibited from lobbying that board, commission, authority or agency for a period of two years after the date on which his or her service on the board ends. (d) The prohibitions on lobbying set forth in this section shall not apply to any person who (i) occupied the position before May 16, 2011, and (ii) resigned from that position before November 16, 2011. Nothing in this section shall be construed to prohibit a person from lobbying on behalf of, and while employed by, another government agency. 2-156-110. Interest in city business (a) Except with respect to the participation of Eligible Persons in Eligible Programs, no elected official or employee shall have a financial interest in his own name or in the name of any other person in any contract, work or business of the city, or in the sale of any article, whenever the expense, price or consideration of the contract, work, business or sale is paid with funds belonging to or administered by the city, or is authorized by ordinance; provided, however, for purposes of this subsection, any of the following shall not constitute a financial interest in any contract, work or business of the city: (i) compensation for property taken pursuant to the city's eminent domain power; and (ii) any interest of a relative which interest is related to or derived from the relative’s independent occupation, business or profession. (b) Notwithstanding anything to the contrary in this section, no city official or employee who has contract management authority over any contract, work or business of the city shall have a financial interest in any entity which is a contractor, subcontractor, or otherwise a party to that contract, work or business. (c) Unless sold pursuant to a process of competitive bidding following public notice, no elected official or employee shall have a financial interest in the purchase of any property that: (i) belongs to the 19 city, or (ii) is sold for taxes or assessments, or (iii) is sold by virtue of legal process at the suit of the city. (d) Except with respect to the participation of Eligible Persons in Eligible Programs, no appointed official shall engage in a transaction described in this section unless the matter is wholly unrelated to the official's city duties and responsibilities. (e) As used in this section, the terms “Eligible Persons” and “Eligible Programs” have the meanings provided in Section 2-45-130 and shall be determined by the department of housing and economic development. 2-156-111. Prohibited conduct. (a) No elected official or employee or the spouse or domestic partner of such official or employee, or any entity in which such official or employee or his or her spouse or domestic partner has a financial interest, shall apply for, solicit, accept or receive a loan of any amount from any lobbyist or person who is either doing business or seeking to do business with the city; provided, however, that nothing in this section prohibits application for, solicitation for, acceptance of or receipt of a loan from a financial lending institution, if the loan is negotiated at arm's length and is made at a market rate in the ordinary course of the lender's business. This subsection shall not apply to an entity in which the only financial interest of the official or employee or his or her spouse or domestic partner is related to the spouse's or domestic partner’s independent occupation, profession or employment. (b) No elected official, or the head of any city department or agency, shall retain or hire as a city employee or city contractor any person with whom any elected city official has any business relationship that creates a financial interest on the part of the official, or city department or agency head, or the domestic partner or spouse of the official, or city department or agency head. (c) No city employee or official shall knowingly negotiate the possibility of future employment with any person, except with a government agency, that has a matter currently pending before such employee or official. (d) (1) No city employee or official shall make or participate in the making of any governmental decision for a period of two years from the date of employment or becoming a city official, in a matter that benefits his or her immediate former employer or immediate former client who the employee or official represented or on whose behalf he or she acted as a consultant or lobbyist prior to commencing his or her city employment or prior to becoming a city official, unless such employee or official has completely severed any ties with that former employer or client that would confer, or have the potential to confer, a monetary benefit on the employee or official. For purposes of this subsection, publicly traded securities or income therefrom, and vested benefits in a retirement plan, shall not be considered a monetary benefit. (2) No City employee of official shall personally participate in any capacity in a matter on behalf of the City if the official or employee participated personally and substantially in that matter for his or her immediate former business or immediate former employer or immediate former client who the employee or official represented or on whose behalf he or she acted as a consultant or lobbyist, prior to commencing his or her City employment or prior to becoming a City official. 2-156-115. Time records for aldermanic staff. 20 Each alderman shall maintain a daily record of the attendance of his or her personal employees. The record shall be certified as correct by the alderman or by any employee designated by the alderman. Records required under this section shall be available for inspection in the offices of the respective aldermen in accordance with the Illinois Freedom of Information Act, as amended. 2-156-120. Contract inducements. No payment, gratuity or offer of employment shall be made in connection with any city contract, by or on behalf of a subcontractor to the prime contractor or higher-tier subcontractor or any person associated therewith, as an inducement for the award of a subcontract or order. This prohibition shall be set forth in every city contract and solicitation therefor [sic] [thereof]. 2-156-130. Employment of relatives or domestic partners. (a) No official or employee shall employ or advocate for employment, in any city agency in which said official or employee serves or over which he exercises authority, supervision, or control, any person (i) who is a relative or domestic partner of said official or employee, or (ii) in exchange for or in consideration of the employment of any of said official's or employee's relatives or his domestic partner by any other official or employee; provided that the prohibition in (i) applies to city council committee staff and independent contractors who are paid from funds appropriated to the Alderman for contractual services provided that those individuals who are relatives and are currently retained as contractors shall be allowed to continue to renew their service contract on an ongoing and annual basis; but not to personal staff of an alderman. (b) No official or employee shall exercise contract management authority where any relative or the domestic partner of the official or employee is employed by or has contracts with persons doing city work over which the city official or employee has or exercises contract management authority. (c) No official or employee shall use or permit the use of his position to assist any relative, or his domestic partner in securing employment or contracts with persons over whom the employee or official exercises contract management authority. The employment of or contracting with a relative or domestic partner of such a city official or employee by such a person within six months prior to, during the term of, or six months subsequent to the period of a city contract shall be evidence that said employment or contract was obtained in violation of this chapter. 2-156-135. Prohibited political activities. (a) No employee shall intentionally perform any prohibited political activity during any compensated time. (b) No official or employee shall intentionally misappropriate any city property or resources of the city in connection with any prohibited political activity; provided, however, any official or employee may reserve and rent a city-owned facility at a fair market value before any such activity or event connected therewith. (c) No official or employee shall intentionally misappropriate the services of any officer or employee by requiring any other official or employee to perform any prohibited political activity: (i) as part of the other official’s or employee’s duties; (ii) as a condition of employment; or (iii) during any compensated time off. (d) No official or employee shall be required at any time to participate in any prohibited political activity in consideration of additional compensation or any other benefit, including a salary 21