In 2006, as part of the Comprehensive Governmental Ethics Reform Act, the General Assembly required all municipalities to adopt ethics standards by no later than June 30, 2007. T.C.A. § 8-17-103 requires municipalities to adopt a code of ethics by ordinance. The ordinance must apply to members of all boards, commissions, authorities, corporations, and other entities created or appointed by the municipality, except the school board. The school board adopts its own code, and it may use a model provided by the Tennessee School Board Association.

Pursuant to T.C.A. § 8-17-105, UT Municipal Technical Advisory Service (MTAS) developed model ethical standards for municipalities. Municipalities are not required to adopt the MTAS model, but if they do not, they must send a copy of the ordinance they adopt to the Tennessee Ethics Commission. Municipalities that adopt the MTAS model must simply notify the commission in writing that the MTAS model was adopted, along with the date of adoption. The MTAS model code of ethics is linked for your convenience.

T.C.A. § 8-17-102(b) provides that entities created by interlocal agreement under the state’s general Interlocal Cooperation Act (T.C.A. §§ 12-9-101 et seq,) or otherwise, must also adopt ethical standards. The agreement creating the entity must include ethics standards. Therefore, municipalities participating in interlocal agreements should take steps to ensure that any agreement being newly adopted includes ethics standards and those in existence are amended to include ethical standards. The MTAS model code of ethics can be incorporated into these agreements.

The ethics standards are required to address: (1) rules setting limits on and/or providing for reasonable and systematic disclosure of gifts or other things of value received by officials or employees that affect or appear to affect their discretion, and (2) rules requiring reasonable and systematic disclosure by officials and employees of personal interests that affect or appear to affect their discretion. The MTAS model code of ethics combines these two restrictions with other ethics provisions that municipalities have commonly adopted. These model provisions are meant to either replace the existing provisions in the municipality’s code of ordinances or simply be added as a new chapter if the code has no similar provisions.

Because the language in T.C.A. § 8-17-103 includes that all municipalities “shall adopt” ethical standards, it is not clear that existing ordinances or policies are adequate. As such, municipalities are advised to adopt either the MTAS model or their own ordinance.

Additionally, by no later than January 1, 2024, municipalities must notify the Tennessee Ethics Commission, either in writing or via email, of the primary person responsible for administering and enforcing the municipality’s ethical standards. The municipality must also provide the commission with the person’s contact information, including the person’s business address, phone number, and email address. Any change in such responsibility must be reported to the ethics commission within thirty (30) calendar days of such change.

Additional information is available, including contact information, from Tennessee Ethics Commission.