Model Code of Ethics: Explanation of Sections

The MTAS Model Code of Ethics has been provided as required by T.C.A. § 8-17-103, and the purpose of each section is explained here.

SECTION 1. This section titled "Applicability" provides that the code of ethics adopted by the municipal governing body applies to all full-time and part-time elected and appointed officials, whether compensated or not. Pursuant to T.C.A. § 8-17-103 and the definitions included in T.C.A. § 8-17-102(a), a municipality’s code of ethics also applies to members and employees of separate boards, authorities, and commissions created by the municipality except the school board, which adopts its own code. This includes planning commissions, boards of zoning appeals, beer boards, airport authorities and housing authorities, among others.

SECTION 2. In the section titled "Definition of 'personal interest,'” T.C.A. § 8-17-101 et seq. requires “personal interests” that affect or appear to affect the actions of municipal officials and employees to be disclosed. However, state statute does not define “personal interests.” This section defines those interests. “Personal interest” is broadly defined and more encompassing than the definitions related to conflicts of interest in state law. The definition includes ANY financial, ownership, or employment interest of an official or employee in a business or entity the municipality does business with, regulates or supervises. It also includes these interests of the listed family members of the official or employee. Finally, the definition includes situations in which the official, employee or family member is negotiating employment with an affected entity. This section provides that when actions that constitute personal interests are also direct or indirect conflicts of interest, the conflict of interest statutes take precedence.

SECTION 3. This section titled "Disclosure of personal interest by official with vote" requires an official with the responsibility to vote, to disclose any personal interests the official has that might affect the official’s discretion before the vote so that the personal interests appear in the minutes. The state statute does not require recusal from voting of an official with a personal interest. The implication of the statute is that after disclosure the official may vote. Nevertheless, this section allows, but does not require, recusal.

SECTION 4. This section titled "Disclosure of personal interest in nonvoting matters" applies to employees and officials who must exercise discretion in matters that do not require a vote. The official or employee should, when possible, disclose the personal interest before the exercise of the discretion. Again, recusal is not required, but this section allows it when it is permitted by law, charter, ordinance or policy of the municipality.

SECTION 5. This section titled "Acceptance of gratuities, etc." prohibits an official or employee from taking any money, gift, favor, or other gratuity from anyone other than the municipality for the performance of the official’s or employee’s regular duties or that gives the appearance of attempting to influence the discretion of the official or employee in carrying out municipal business. As an alternative to a blanket ban on the acceptance of gifts and gratuities that fall into the categories described above, a municipality may allow officials and employees to accept gifts and gratuities up to a certain amount but require that the acceptance of any item up to that amount be reported.

SECTION 6. This section titled "Use of information" prohibits officials and employees from disclosing confidential information, except as authorized by law and from disclosing any other information with the intent to result in financial gain.

SECTION 7. This section "Use of municipal time, facilities, etc." prohibits officials and employees from using or authorizing the use of municipal time, facilities, equipment, or supplies for their own financial gain. It also prohibits officials and employees from using or authorizing the use of municipal time, facilities, equipment, or supplies for the private gain of other entities or individuals, unless it is authorized by contract or lease determined by the governing body to be in the best interests of the municipality.

SECTION 8. This section titled "Use of position or authority" prohibits officials and employees from using their position to make private purchases in the name of the municipality and from using their position to gain privileges or exemptions that are not authorized by charter, general law, ordinance, or policy.

SECTION 9. This section titled "Outside employment" prohibits outside employment by officials or employees, if the outside work interferes with municipal duties or is in conflict with any provision of the charter, any ordinance, or any policy of the municipality.

SECTION 10. This section titled "Ethics complaints" provides methods for bringing and investigating complaints of violations of the code of ethics. The city attorney is designated as the ethics officer and may issue opinions, in writing or verbally, when requested, on whether certain conduct complies with the code of ethics and other applicable law. The city attorney is designated to receive and investigate complaints about officials and employees who are not members of the governing body. The attorney may request that the governing body designate another person or entity to act as ethics officer when the attorney has a conflict . The governing body must determine the merit of complaints against its members. If the governing body determines that a complaint warrants further investigation, it must authorize an investigation by the municipal attorney or another person or entity chosen by the governing body. An alternative to appointing the city attorney as ethics officer is to appoint another individual, such as another attorney or a retired judge as the ethics officer. If a municipality chooses to do this, appointment of the ethics officer after each municipal election is recommended. The position may be compensated or uncompensated, although it is unlikely many individuals will be willing to serve if the position is not compensated. Another acceptable alternative is to establish a board of ethics to perform these functions. For municipalities that choose this alternative, MTAS suggests a three-member board be appointed by the governing body. Appointments of at least 3 years are recommended. Because many municipalities already have personnel policies that deal with some of the same behaviors regulated by the code of ethics, this section provides that when a violation of the code of ethics also constitutes a violation of a personnel or civil service policy, rule, or regulation, the violation is addressed as a violation of the personnel policy rather than as a violation of the code of ethics. This section also provides for the “reasonable person” standard to be used for purposes of interpretation and enforcement of the code of ethics. MTAS chose the above provisions for designating the ethics officer and for handling ethics complaints for the model code of ethics for purposes of simplicity, cost, and appropriateness.

SECTION 11. This section titled "Violations" provides for punishment for violations. Elected officials and appointed members of boards and commissions who violate these provisions are subject to punishment as already provided by law and, in addition, are subject to censure by the governing body. Appointed officials and employees are subject to disciplinary action.

Municipalities that adopt the MTAS Model Code of Ethics must send a notice that it has been adopted, including the date of adoption, to the Tennessee Ethics Commission. Municipalities that do not adopt the MTAS model must send a copy of the ordinance they do adopt to the Ethics Commission. Send the notice to:

Tennessee Ethics Commission
404 James Robertson Parkway
Suite 104
Nashville, TN 37243
ethics.counsel@tn.gov