ORDINANCE NO. [XXX]

ANTI-NEPOTISM, CONFLICT OF INTEREST, AND INDEPENDENT ETHICS BOARD ORDINANCE

AN ORDINANCE to amend the Code of Ordinances of the Charter Township of Lenox by adding a new Chapter/Section to establish strict ethical standards; to prohibit the practice of nepotism in township employment and appointments; to prohibit township business transactions with entities owned, managed, or staffed by township personnel or their relations; to establish an Independent Ethics Board to investigate complaints; and to provide penalties for violations.

THE CHARTER TOWNSHIP OF LENOX ORDAINS:

SECTION 1: PURPOSE AND INTENT

The Township Board of Trustees recognizes that public office is a public trust. It is the intent of this Ordinance to ensure that township business is conducted with absolute integrity, fairness, and transparency. This Ordinance seeks to eliminate favoritism, the appearance of impropriety, and conflicts of interest by strictly banning nepotism in employment, prohibiting the township from engaging in business contracts that benefit township personnel or their personal relations, and establishing an independent citizen body to enforce these standards.

SECTION 2: DEFINITIONS

For the purposes of this Ordinance, the following terms shall have the meanings ascribed to them:

"Board of Trustees" means the elected or appointed legislative body of the Charter Township of Lenox, including the Supervisor, Clerk, Treasurer, and Trustees.
"Senior Staff" means any department head, director, superintendent, or employee with discretionary or managerial authority over township operations, hiring, or purchasing.
"Township Payroll" means any individual receiving monetary compensation from the township as a full-time, part-time, temporary, or seasonal employee.
"Personal Relationship" or "Relative" means any person related to a township official or employee by blood, marriage, adoption, or domestic partnership. This includes, but is not limited to: spouse, child, stepchild, parent, stepparent, sibling, stepsibling, grandparent, grandchild, aunt, uncle, niece, nephew, first cousin, father-in-law, mother-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, or any individual residing in the same household.
"Township Business" means any contract, purchase order, agreement, lease, sale, or transaction involving the expenditure of township funds or the use of township assets.
SECTION 3: ABSOLUTE BAN ON NEPOTISM

Hiring and Employment: No person shall be hired, appointed to, or employed in any position on the Township Payroll if they have a Personal Relationship (as defined herein) with any member of the Board of Trustees or Senior Staff.
Supervision and Evaluation: No township employee shall directly or indirectly supervise, evaluate, determine the compensation of, or participate in the disciplinary process of any employee with whom they have a Personal Relationship.
Boards and Commissions: No relative of a member of the Board of Trustees or Senior Staff shall be appointed to any voluntary or paid township board, commission, or authority (e.g., Planning Commission, Zoning Board of Appeals).
Existing Employees: Any person employed by the township prior to the effective date of this Ordinance who falls under a prohibited relationship category shall be permitted to remain in their current position, but they shall not be eligible for promotions, discretionary raises, or transfers that violate the supervision clauses of this section.
SECTION 4: BAN ON BUSINESS CONFLICTS OF INTEREST

Commercial Transactions: The Charter Township of Lenox is strictly prohibited from entering into any contract, purchasing goods, leasing property, or conducting any Township Business with any commercial entity, company, or vendor that is:
Owned (fully or partially, including stock or equity ownership exceeding 1%) by any person on the Township Payroll, member of the Board of Trustees, Senior Staff, or their Relatives.
Managed, operated, or directed by any person on the Township Payroll, member of the Board of Trustees, Senior Staff, or their Relatives.
Staffed or employed by any person on the Township Payroll, member of the Board of Trustees, Senior Staff, or their Relatives, if that individual directly influences, prepares, bids on, or benefits from the contract with the township.
Abstention is Insufficient: The prohibitions in this Section cannot be waived or bypassed by a member of the Board of Trustees or Senior Staff recusing themselves or abstaining from a vote or decision. The business ban is absolute.
SECTION 5: DISCLOSURE REQUIREMENTS

Annual Disclosure: All members of the Board of Trustees, Senior Staff, and employees with purchasing authority shall file a signed, annual disclosure form listing any business entities in which they or their Relatives hold an ownership, managerial, or employment interest.
Duty to Disclose: If a bid or business proposal comes before the township involving an entity with a connection to an employee or official, that individual must immediately disclose the connection in writing to the Township Clerk.
SECTION 6: INDEPENDENT ETHICS BOARD

Establishment and Composition: There is hereby established an Independent Ethics Board for the Charter Township of Lenox. The Board shall consist of three (3) primary members and one (1) alternate member.
Members must be registered electors and residents of Lenox Township.
No member of the Board of Trustees, Senior Staff, township employee, or any Relative thereof shall be eligible to serve on the Ethics Board.
No member may hold any other township office or be a candidate for any township public office during their tenure.
Appointment and Terms:
Members shall be appointed by a majority vote of the Board of Trustees from an open application process available to all qualified residents.
Members shall serve staggered, three-year terms to maintain institutional knowledge. Initial appointments shall be designated for terms of one, two, and three years respectively.
Members shall serve without compensation, though they may be reimbursed for actual, necessary expenses approved by the Township Board.
Powers and Duties: The Ethics Board shall have the authority to:
Receive, log, and investigate all sworn, written complaints alleging a violation of this Ordinance.
Render advisory opinions to township officials and employees regarding potential conflicts of interest or nepotism concerns.
Conduct hearings, request relevant township documents, and call witnesses to testify regarding an active investigation.
Maintain the confidentiality of the complainant and the accused during the preliminary investigation phase.
Complaint Procedure:
Any individual may file a signed, written, and notarized complaint with the Township Clerk, who shall immediately forward it to the Chair of the Ethics Board within three (3) business days.
Within thirty (30) days of receiving a complaint, the Ethics Board shall conduct a preliminary review. If the complaint is deemed frivolous or lacks merit, it shall be dismissed in writing.
If the complaint has merit, the Ethics Board shall conduct a formal investigation. The accused individual shall be provided a full copy of the complaint and given an opportunity to respond in writing and present evidence at a hearing.
Findings and Recommendations:
Upon completing its investigation, the Ethics Board shall issue written Findings of Fact and Recommendations.
If a violation is found, the Ethics Board shall submit these findings to the Board of Trustees (or to the Governor, if the violation involves an elected official whose removal is governed by state law).
SECTION 7: PENALTIES AND ENFORCEMENT

Personnel Action: Any township employee or Senior Staff member found to have knowingly violated this Ordinance shall be subject to immediate disciplinary action, up to and including termination of employment.
Removal from Office: Any elected or appointed official found to have violated this Ordinance may be subject to public censure, removal from appointed boards, or referral to the Governor of the State of Michigan for removal from office in accordance with state law.
Contract Voidability: Any contract or business agreement entered into by the township in violation of Section 4 of this Ordinance shall be deemed voidable at the sole discretion of the township, and the township may seek restitution for any funds illegally disbursed.
SECTION 8: SEVERABILITY

If any section, clause, or provision of this Ordinance is declared by a court of competent jurisdiction to be invalid, such declaration shall not affect the validity of the remaining portions of this Ordinance.

SECTION 9: EFFECTIVE DATE

This Ordinance shall take effect thirty (30) days following its publication after adoption by the Township Board.