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Record No: CB 120978    Version: Council Bill No: CB 120978
Type: Council Bill (CB) Status: Full Council Agenda Ready
Current Controlling Legislative Body Governance, Accountability, and Economic Development Committee
On agenda: 6/3/2025
Ordinance No:
Title: AN ORDINANCE relating to the Code of Ethics; defining "elected official"; requiring elected officials to disclose any financial interest or conflict of interest prior to participating in legislative matters and recuse themselves in certain instances; and amending Sections 4.16.030 and 4.16.070 of the Seattle Municipal Code.
Sponsors: Cathy Moore
Supporting documents: 1. Summary and Fiscal Note, 2. Central Staff Memo, 3. Amendment 1, 4. Amendment 2 Version C, 5. Amendment 3, 6. Amendment 5, 7. Amendment 6

CITY OF SEATTLE

ORDINANCE __________________

COUNCIL BILL __________________

title

AN ORDINANCE relating to the Code of Ethics; defining “elected official”; requiring elected officials to disclose any financial interest or conflict of interest prior to participating in legislative matters and recuse themselves in certain instances; and amending Sections 4.16.030 and 4.16.070 of the Seattle Municipal Code.

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WHEREAS, in 2013 the people of Seattle enacted a City Charter amendment to elect seven members of the City Council by district; and

WHEREAS, disqualifying a Councilmember from participating in a matter because of a conflict of interest may have the effect of denying residents of that Councilmember’s district an equal voice in the City’s lawmaking process; and

WHEREAS, the Seattle City Council last amended the Code of Ethics in 2018, to address disqualification requirements for the legislative process, and created a limited exception to allow Councilmembers with a conflict of interest to participate in some legislative matters after disclosure of the financial interest; and

WHEREAS, after six years of implementation of the limited exception, the Executive Director of the Seattle Ethics and Elections Commission has addressed the current interplay between the Code of Ethics and legislative process; and

WHEREAS, the Executive Director relayed two findings in support of amending the Code of Ethics to allow elected officials to participate in legislative matters after disclosure of a financial interest: (1) the public nature of the legislative process; and (2) the ability of voters to act upon the voting record of their elected officials; and

WHEREAS, while elected officials would be able to disclose their financial interest or conflict of interest and participate in legislative matters, when the elected official’s financial interest is impacted to a greater or less extent than that of other members of the same professions, occupations, classes, or groups affected by the legislative matter, the elected official must recuse themselves; and

WHEREAS, when reviewing an elected official's financial interest and their participation in a legislative matter, the SEEC and its Executive Director should determine whether the regulated matter produces a unique and direct gain or loss that is specific to the elected official but not other persons or entities regulated by the legislative matter; and

WHEREAS, Seattle Municipal Code Section 4.16.085 authorizes the Executive Director and Seattle Ethics and Elections Commission (SEEC) to offer advisory opinions but only concerns the effect of an advisory opinion on enforcement of the ethics code.  Clarifying and enhancing the role of the SEEC and City Attorney’s Office in advising elected officials of the legal and ethical standards will strengthen public trust in elected officials and ensure that ethical standards are followed for legislative matters; and

WHEREAS, the Seattle Ethics and Elections Commission (SEEC) should utilize its perspective and data to make recommendations to City Council regarding the ways in which public trust and transparency could be enhanced via reforms to the code of ethics; and

WHEREAS, this bill does not permit elected officials to participate in quasi-judicial proceedings in which they have a financial interest or participate in an executive function in which they have a financial interest; NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. Section 4.16.030 of the Seattle Municipal Code, last amended by Ordinance 125589, is amended as follows:

4.16.030 Definitions

As used in this ((chapter, the following terms shall have the meanings indicated.)) Chapter 4.16:

* * *

"City volunteer" means someone who volunteers services to the City.

"Elected official" means any person serving as one of the elective officers listed in Article XIX, Section 1 of the City Charter.

* * *

Section 2. Section 4.16.070 of the Seattle Municipal Code, last amended by Ordinance 125589, is amended as follows:

4.16.070 Prohibited conduct

A covered individual may not engage in any of the following acts:

A. Disqualification from acting on City business

1. Participate in a matter in which any of the following has a financial interest, except as permitted by Section 4.16.071;

                     a. The covered individual;

b. An immediate family member of the covered individual;

c. An individual residing with the covered individual other than as a landlord or tenant;

d. A person the covered individual serves as an officer, director, trustee, partner, or employee; or

e. A person with whom the covered individual is seeking or has an arrangement concerning future employment.

2. Participate in a matter in which a person who employed the covered individual in the preceding 12 months or retained the covered individual or the covered individual’s firm or partnership in the preceding 12 months, has a financial interest; provided, however, that the Executive Director shall waive this subsection 4.16.070.A.2 when:

a. The covered individual's appointing authority or the authority's designee makes a written determination that there is a compelling City need for the covered individual to participate in a matter involving a prior employer or client, and submits that determination with a written plan showing how the authority will safeguard the City's interests, and

b. The Executive Director determines that the authority's plan is satisfactory.

3. Perform any official duties when ((it could appear)) to a reasonable person, having knowledge of the relevant circumstances, ((that)) the covered individual(('s judgment is impaired)) has a conflict of interest because of either (a) a personal or business relationship not covered under subsection 4.16.070.A.1 or 4.16.070.A.2, or (b) a transaction or activity engaged in by the covered individual. It is an affirmative defense to a violation of this subsection 4.16.070.A.3 if the covered individual, before performing the official act, discloses the relationship, transaction, or activity in writing to the Executive Director and the covered individual's appointing authority, and the appointing authority or the authority's designee either approves or does not within one week of the disclosure disqualify the covered individual from acting. ((For an elected official to receive the same protection, the official must file a disclosure with the Executive Director and the City Clerk.)) In non-legislative matters, elected officials must file a disclosure with the Executive Director and the City Clerk to receive the same protection. If a covered individual is charged with a violation of this subsection 4.16.070.A.3, and asserts as an affirmative defense that a disclosure was made, the burden of proof is on the covered individual to show that a proper disclosure was made and that the covered individual was not notified that the covered individual was disqualified from acting.                      

4. Subsections 4.16.070.A.1 and 4.16.070.A.2 do not apply if the prohibited financial interest is shared with a substantial segment of the public, as defined by rule by the Ethics and Elections Commission. The Rule will consider if the elected official is elected by a district or citywide.

5. Application to City elected officials and legislative matters. Subsections 4.16.070.A.1 ((and)), 4.16.070.A.2, and 4.16.070.A.3 do not apply to an elected official's participation in legislative matters if the elected official publicly discloses any financial interest or conflict of interest prior to participating in a legislative matter using the procedure in subsection 4.16.070.A.5.a. ((: a. The legislative matter establishes or adjusts assessments, taxes, fees, or rates for water, utility, or other broadly provided public services or facilities that are applied equally, proportionally, or by the same percentage to the elected official's interest and other businesses, properties, or individuals subject to the assessment, tax, fee, or rate and a disclosure is made in accordance with subsection 4.16.070.A.6, or 6. Before participating in a matter covered by subsection 4.16.070.A.5, the elected official must publicly disclose any financial interest or conflict of interest.)) However, if the elected official’s financial interest is impacted to a greater or less extent than that of other members of the same professions, occupations, classes, or groups affected by the legislative matter, it is a violation of subsection 4.16.070.A.1 for an elected official to participate in the legislative matter.

a. Disclosure of a financial interest or conflict of interest. An elected official must post a written disclosure on the official's City webpage and file a copy with the Executive Director and the City Clerk. A Councilmember shall additionally make such a disclosure on the public record at an open public meeting of the Council or one of its committees at which the legislative matter is discussed. If a Councilmember has made a disclosure during a committee meeting at which the matter is discussed, that Councilmember must renew the disclosure at a full Council meeting in which the legislative matter is discussed.   ((The Councilmember shall also, before participating in that legislative matter at any subsequent Council or committee meeting, repeat the oral disclosure on the public record of that meeting. a.)) If ((a Councilmember)) an elected official is charged with a violation of subsection 4.16.070.A.1 or 4.16.070.A.2 or 4.16.070.A.3 and asserts as an affirmative defense that a disclosure under this subsection ((4.16.070.A.6)) 4.16.070.A.5 was made, the burden of proof is on the ((Councilmember)) elected official to show that a proper disclosure was made.                                          

* * *

Section 3. The Seattle Ethics and Election Commission (SEEC) receives impactful information from elected officials, city employees, and members of the public that should inform good policymaking. The SEEC is authorized and encouraged to review instances of recusal by elected officials, ethics complaints filed by the public or city employees, and requests for SEEC advisory opinions to discern how public trust and transparency might be enhanced through reforms to the Code of Ethics. The SEEC shall report annually to the City Council whether it has any recommendations for new ethics policy considerations.

Section 4. Elected officials are encouraged to seek informal opinions regarding the application of relevant legal and ethics standards to their participation in legislative matters.  When an elected official seeks an informal written opinion of the Executive Director of the Seattle Ethics and Elections Commission (SEEC), such an opinion shall be provided within five business days of the request. The elected official may also solicit collective feedback of the SEEC regarding an ethical standard’s application to a legislative matter and the SEEC shall provide an opportunity for the elected official to attend a special meeting called for this purpose.  Thereafter, the SEEC shall provide its written feedback within five business days of the special meeting. The City Attorney’s Office shall be available to elected officials to discuss the legal and ethical standards for elected officials in their consideration of legislative matters and shall provide timely written legal advice on request.

Section 5. This ordinance shall take effect as provided by Seattle Municipal Code Sections 1.04.020 and 1.04.070.

Passed by the City Council the ________ day of _________________________, 2025, and signed by me in open session in authentication of its passage this ________ day of _________________________, 2025.

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President ____________ of the City Council

Approved /                     returned unsigned /                     vetoed this _____ day of _________________, 2025.

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Bruce A. Harrell, Mayor

Filed by me this ________ day of _________________________, 2025.

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Scheereen Dedman, City Clerk

(Seal)