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HomeMy WebLinkAbout20 ORD BANNING GIFTS 08-01-94? ENDA; .... NO. 20 8-1-94 Inter-eom DATE: July 12, 1994 TO: FROM: SUBJEC~ WILLIAM A. HUSTON, CITY MANAGER CITY ATTORNEY ORDINANCE BANNING GIFTS OF $250 OR MORE Enclosed for the consideration of the City Council is a proposed ordinance banning the acceptance of gifts aggregating $250 or more. The ordinance is similar to restrictions on state officers. The amount of the limit is designed to coincide with existing provisions of state law affecting local officials. Under the Political Reform Act, gifts of $250 or more are permissible, but a City officer or designated employee may not participate in making or in any way attempt to use their official position to influence a governmental decision in which there will be a material financial effect on any donor, intermediary or agent for a donor of gifts, aggregating $250 or more. The concept of the proposed ordinance is that if you don't accept such gifts you won't ever be in a position of potentially participating in a decision involving a gift donor. We have suggested alternate wording for your consideration: either a ban on gifts of $250 or more or a ban on gifts up to $249. The point is that once you hit $250 you are in the red zone, but up to $249, gifts are permitted. The Council should decide which wording it prefers. The proposed ordinance is similar to but not identical to the Levine Act, found in Government Code section 84308. That section applies to appointed officials and specifically addresses campaign contributions of more than $250. I have enclosed a copy of that section for the City Council's information in case they wish to incorporate any of its provisions into this ordinance. Additionally, we have attached two pages from a Fair Political Practices Commission Bulletin that describes gift prohibitions of state law that will become effective January 1, 1995. The $270 limit will be adjusted in January of 1995 to reflect changes in the Consumer Price Index. If the Council still wishes to proceed with its owen ordinance, we recommend staying with a $250 limit because it coincides better with other provisions of the Political Reform Act. Lois E. Oeff~,~y' ~' 0 L~J:p~/ca$ :D: 07/12/94: (~7) Enclosures 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE NO. 1129 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, REGARDING RESTRICTIONS ON GIFTS The City Council of the City of Tustin hereby ordains as follows: Section 1. Part 3 entitled "Restrictions on Gifts" is hereby added to Chapter 2 of Article 1 of the Tustin City Code, to read as follows: PART 3 RESTRICTIONS ON GIFTS 1230 PURPOSE The City Council finds that the receipt of excessive amounts of gifts by public officials from persons who may do business with the City erodes public confidence in the impartiality of decisions made by those officials. The purpose of this Ordinance is to prohibit the receipt of gifts, valued individually or cumulatively at $250 or more, thereby eliminating, to the extent possible, suc} loss of confidence. 1231 DEFINITIONS Except as otherwise defined, the terms used in this Part 3 including the definition of "gift" shall have the same meaning as defined in the California Political Reform Act (Title 9 of the California Government Code) and regulations issued by the Fair Political Practices Commission pursuant to the authority of the Political Reform Act, as the Act and regulations shall be, from time to time, amended. For the purposes of this part: (a) "City" means the City of Tustin. (b) "City Officer" means every person who is elected or appointed to an office in the City which is specified in Section 87200 of the California Government code. (c) "Designated Employee" means every employee of the City who is designated in the City's Conflict of Interest Code to file a Statement of Economic Interest and every member of a board or commission under the jurisdiction of the City Council required to file such a statement. lO 11 12 13 14 15 16 17 19 20 21 22 23 24 25 26 27 28 Ordinance No. 1129 Page 2 1232 PROHIBITION (a) No City Officer or Designated Employee shall accept gifts from any single source in any calendar year with a total value, either individually or cumulatively, of two hundred fifty dollars ($250) or more. [alternate wording up to two hundred forty-nine dollars ($249)] (b) Gifts which are not subject to limitation under state law and are not required to be disclosed on a Statement of Economic Interest, pursuant to the Political Reform Act and regulations of the Fair Political Practices Commission, are not included within the prohibition of 1232(a) above. 1233 PENALTIES (a) Any City Officer or Designated Employee who violates the provisions of Section 1232 shall be guilty of a misdemeanor. (b) Any Designated Employee who violates the provisions of Section 1232 may be subject to discipline for such violation, including termination of employment, or removal from office in the case of members of City boards or commissions. 1234 NO CONFLICT WITH STATE LAW INTENDED Nothing contained within this Part 3 is intended to conflict with provisions of the California Political Reform Act or the regulations adopted thereto by the Fair Political Practices Commission, except that this Part 3 is intended to impose a limitation on the acceptance of gifts not found in state law. PASSED AND ADOPTED, at a regular meeting of the City Council for the City of Tustin on this day of , 1994. THOMAS R. SALTARELLI, Mayor MARY E. WYNN, City Clerk {3) The name, street address, ~.nd c~t) of the si ' ' ' · ' ' Slj~e~ the cammittee i' the contr~but on mailer organization as required by paragraph y~d~e~d~.~ ~r~uired ~ file the notice required by para.apb (2) may appe~on ~~ry: Ad'ed by ~u. 1979, Cb. samy.~l~t (,[sur[a~.e,o[an m~erL.. --,. / ., . ~lercn.. at the urn. ofpublicaaon (.e pace has paid Lo up.ar in the slate mailer is desi~a~d by ~,u,~: 2C.I.C~d~of~gs.~c~son 18421.] an *. Any candidate or ballot measure ~t has, not ~id Eniurcement W up~a~ in the sla~ mailer is not desi~a~d b~an *. Decismns: John Fur~k 90~0 (1992) ~ y , , I ~OlC~e ~65~1986) legibility u~ is used for the name of~e candidate br ~e Bill Pre~n ~e~ Offshore CommJJack ballot measure name or numar and ~siLion adv~d w which the * desi~ation applies except that in no ~se ..... shall the * be required to be larger than ]0-point {~307. Commmg~g~Personal Funds. ~)ldfuce t~,po. The desi~ation sha immediately ~o11~ · No contribution shall.be commingled with the the namc'~}f thc cundida~, or the name or number an~ ~rsonal funds of the recipient or any other per~n. ~sition advocated on the ballot measure whe;e ~ Hi,wry: Add~byS~.1979. Ch. 779. measures Ir there is no sla~ listing, the desi~ation ~. ~hall 9pp~ur. ut I~ust once m at least 8-~mt ~l~uce ~ ~ciso~ type, ~mmed~u~}~ following the name of the ~ndidate, ~- - or the name or number and ~sition advo~d on the [ Appointed Boards or Commissions;f ~ bullotmeusurc. /~ {~308. Contributions to Members o (5) Thc name o[ any candidate appearing in the ~ Disqualification. ~a} 'I'Ve Oelmitmns set Iorth in this subdivision slate mailer who is a member of a political party differing l'r~m th~. political party which the mailer appears by representation or indicia to represent is accompunlcd, imn~ediate]y below the name, by the party designation sit the candidate, in no less than 9- point ruma~ typo which shall be in a color or print that construsts with the background so as Lo be easily legible. The designation shall not be required in the case o/candidates lot nonpartisan office. (b) For purposes of the designations required by paragraph 141 of subdivision (al. the payment of any sum made reportable by subdivision (c) of Section 84219 by or at thc. behest of a candidate or committee, whose name ur pusithm appears in the mailer, to the slate mailer' urguni~tion, shah constitute a payment to appear requiring the * designation. The payment shall also be deemed to constitute authorization to appear in the mailer. Jcl A slate mailer that complies with this section shall hc deemed LO satisfy the requirements of Sections ] 1703 and ] 1704 of the E~ections Code. § 843(h5. Contributions Received by Agents of Candidates or Committees. All contributions received by u parson acting as an agent of a candidate shall be reported promptly to the candidate or uny of his or her designated agents. Ail contribuLim,.~ received by a person acting as an agent of u committee shall be reported promptly Lo the cummittuc'.~ treasurer or any of his or her designated agents. "Promptly" as used in this section means not later tha~ the closing date of any campaign statement shall govern the interpretation of this section. (I) "Party" means any person who tiles an application for, or is the subject of a proceeding involving a license, permit, or other entitlement for use. (2) "Participant" means any person who is not a party but who actively supports or opposes a particular decision in a proceeding involving a license, permit, or other entitlement for use and who has a financial interest in the decision, as described in Article I (commencing with Section 87100) of Chapter 7. A .person actively supports or opposes a particular decision in a proceeding if he or she lobbies in person the o z~cers or employees of the agency, tesLLfies in person before the agency, or otherwise acts to influence o£1'icers of thc. agency. (3) "Agency" means an agency as defined in Section 82003 except t~ut it does not include the courts or any agency in the judicial branch of government, local governmental agencies whose members are directly elected by the voters, the Legislature, the Board of Bqualiza~.ion, or constitutional officers, llowever, this section applies to any person who is a member of an exempted agency but is acting as a voting member of another agency. (4) "Officer" means any elected or appointed o~ccr of an agency, uny alternate to an elected or app~inted ~fficer of an agency, and uny candidate for elective uti]ce (5) "l.icense, permit, or other entitlement fro' u~e" means all business, professional, trade and land use licenses and permits and all other entitlements for use. including all entitlements for land use, all contracts (other than competitively bid, labor, or personal employment contracts), and all franchises. //' ) Contribution includes contributions tu~"~ %candidates and committees in federal, state, or h,cal/ ~elecLiuns. r(bl No officer of an agency shall accept, solicil, or ect a contribution o_f more than~ two hun~tr_e_~__fi~)£ 39 dulJars ($250J from any party, or his or her agent, or from un)' parDc~pant, 67 ~s-~3~-F-h'~u~g~nt, whilc pr,ceeding involving a license, permit, or o:her entitlement for use is pending before the agency und for three months following the date a final decision is rendered in the proceeding if the officer knows or has reason to know that the participant has u financiul re.rarest, .us that term is used in Article I (commencing w~th S~ctaun 87100) of Chapter 7. This prohibition shall apply regurdless of whether the officer accepts, solicits, or direct~ the contribution for himself or herself, or on behalf of any other officer, or on behalf of any candidate for office or on behalf of any committee.. (c) Prior to renderin~ any decision in a proceeding involving s license, permit or other entitlement for use pending before an agency, each officer of the agency who received u contribution within the preceding ] 2 months in an umuunt of more than two hundred i~ffty dollars 15250} from a party or from any participant sh?.]] disclose that fact on the record of the proceeding. No ofl~cer of un agency shah make, participate in making, or m any wuy attempt to use his or her official posit.ion to influence the decision in a proceeding involving a license, permit, or other entitlement for use pending before the agency if the officer has willfully or knowingly received a contribution in an amount of more than two hundred fifty dollars ($250) within the preceding 12 months from a party or his or her agent, or from any participant, or his or her agent Lc the officer knows or has reason to know that the participant has a finuncial interest in 'the decision, as that term is described with respect Lo public officiuls in ArLic e Icommencing with Section 87l 00) of Chapter 7. If an officer receives a contribution which would -therwise require disqualification under this section, ruLurns the contribution within 30 days from the time be or she knuws, or should have known, about the cuntribuLiun and the proceeding involving a license, permit, ur uther entitlement for use, he or she shall be permitted to participute in the proceeding. Idl A party to a proceeding before an agency involving a license, permit, or other entitlement for use shall disclose on the record of the proceeding any cuntribution in an amount, of more than two hundred fifty dollars ($250) made within the preceding 12 munths by the party, or his or her agent, to any officer or the agency. No party, or his or her agent, to a proceeding involving u license, permit, or other untttlumun! fur use pending before uny agency und nu participant or his ur her ugenL, in the proceeding shull make a contribution uf more than two hundred fifty dollars ($250) to any officer u£ that agency during the proceeding and for three months following the dote u final decision is rendered by the agency in the pruceeding When a closed corporation is a party to, or u participant in, u proceeding invo ring a license, permit. or other entitlement for use pending before an agency, the majority shureholder is subject to the disclosure prohibiLiun' requirements specified in subdivisions (bt lc), and this subdivision. lei Nothing in this section shall be construed tu imply that any contribution subject to being reported under this title shall not be so reported. I~gulat,a~: 2C, aI.C~deofR~g~ ~ectim~ 1843~ 2 Cal. Code ofl~gs l~ect~un ] 8438 ~ C~ L ~e or ~. ~ction I N43~'o 2 ~t. C~e of ~gz. ~caun ] 2 6mi. ~e of~g~ ~ct~on 18438.G 2 Cat ~e of ~g~. ~ctmn 1 2 Cal. ~e of ~g~. ~ct~Un I &43~.~ ~~417 ~1990~ na .87~16~ 19~8~ ~ ~309. Transmittal of Campaig~ ~tribufions ~ S~ O~ee Buildings. - ~) No ~rson shall receive or ~rsonally delivt~' n er a eontributlon in the 5~ Capi~l, o~ee building, or in any o~ce for which th s~te the majority of the rent other/~hun leash o~ce. (b) r pur~ses of this ~cfion: d (l) ersonully deliver" means eli~erv of contr ~ in ~on or ~using a contri~utio~ tu delivered ~y ~ agent or in~rme~iary. (2) tcludes the receipt of u campaigr contribution ~ in ~r~n. ~leregJces mt ~ ~ubli~on ~ page ~;: § 84400. Exer NotwithsL commission shall inclqding uny.candida! req · ' of the luw. thc corem.it.tee, from u'ny o£ the s of this chap! (-r Article ~tive Advertising. § 84~01-84514 ,epealed I ISections 8d0l . 84514 ~euled by Ch- ] 7 ], eff~e ~anuary l, ,~ ..... Ghap~r 5. ~fions o~ ribu tic ~ s. A~icle 1. Appli~bilityand De tions. / 85]04 / 2. Candidacy. t 85200. ~ 3. Con~ibu~on Limi~ 85307 ical Practi, Commission APRIL/MAY/JUNE 1994 Commission Amends New Legislation Definition of "Consultant," Expands / Defines "Other Public Officials Who Gift/Honoraria Manage Public Investments" Prohibitions r-~--1t meetings held earlier this year, the Commission finalized and adopted regula- tions designed to clarify who "consultants" and "other pub- lic officials who manage public investments" are for purposes of the Political Reform Act. Under the Political Reform Act, certain private sector "consultants" who contract with public agencies can be- come public officials governed by provisions of the Act. If this occurs, they must abide by the conflict of interest rules for California government officials and may be required to file fi- nancial disclosure statements. In 1976 the Commission adopted Regulation 18700 (lo- cated in Title 2, Division 6 of the California Code of Regula- tions), which defined who was a ':consultant" subject to the provisions of the Act. Over the In this issue.. Enforcement Actions ..... -~g 2 Conflict of Interest Issues .................. Pg 5 Campaign Issues ......... Pg 6 Lobbying Issues .......... Pg 11 Commission Updates ..... Pg 12 Fortune 500 Listings ...... Pg 13 Advice Summaries ....... Pg 18 years, it became apparent that this definition was difficult to apply. In 1992, the Commission staff began holding meetings with interested parties in an at- tempt to make this definition more understandable. It was an extremely difficult process and involved numerous pre- sentations to the Commission for policy direction. At its April 1994 meeting, the Commission adopted amendments to Regulation 18700 clarifying the definition of consultant. Generally, the definition includes only those individuals who, pursuant to a contract with a state or local government agency, make final government ~lecisions or per- form substantially all the same duties for an agency that would otherwise be performed by an individual holding a position specified in the agency's con- filet of interest code. Government Code Sections _87200-R72~ set .forth very spe- cific financial disclosure re- quirements for elected public officials, such as State Senators, and other high-ranking but non-elected public officials, such as county counsel. In 1989, Section 87200 was amended to include within its scope ~other public officials who manage public investments." While Sec- tion 87200 includes, for examt r~ ssembly Bill 1542 has been signed by the Governor and wilt go into effect January 1, 1995. (Chapter 36, Stats. 1994.) Existing provisions of the Po- litical Reform Act (the "Act") ira- pose a $1,000 gift and honoraria limit on local elected officehold- ers. AB 1542, which amends Government Code Section 89501: · Lowers the gift limit to th~ same amount imposed elected state officers and des ignated employees of state agencies. Currently, the Act prohibits elected state officers and state agency officials from accepting gifts totaling $270 per calendar year from a single source. (The gift limit is adjusted biennially to reflect changes in the Consumer Price Index. The limit will be ad- justed in January 1995.) Prohibits honoraria payments. An ~honorarium" is a pay- ment received in consider- ation for making a speech, publishing an article, or at- tending a public or private conference, convention, meeting, social event, meal, or like gathering. Expands the gift limit and honoraria prohibition to ¢- '- er local elected officials, ignated employees of Ioco, (Continued on I~ge ~ 2) a Commission meeting during the FPPC to order at 9:14 a.m. scheduled for adoption at the the month of August. ~'he next rf~gularly scheduled Commis- in the Commission Hearing * Room, 428 J Street, Sacra- mento. In addition to Chair- man Davidian, Commissioners Richard Brandsma, Raquelle de la ROcha, and Deborah Seller were present. Commissioner Rushford was absent. The Commissioners adopted Regulation 18940--Guide to Gift Regulations, Regulation 18944.2--Gifts to an Agency, and amendments to Regula- tion 18726.7, to renumber to · 18944.1--Recipient of the Gift: Passes or Tickets Given to an Agency. The Commissioners al- so adopted amendments to Regulation 18700--Public Offi- ~ cial Making or Participating in Making a Governmental Deci- sion (definition of "c - tant"), onsul The Commission approved a fine of $92,000 in an enforce- ment case against the Yarmouth Group. Details of the case are on page 4. Chairman Davidian called the May 5, 1994 meeting of the FPPC to order at 9:10 a.m. in the Commission Hearing Room, 428 j Street, Sacramento. In addition to Chairman Davidian, Commissioners Richard Brands- ma, Raquelle de-la Rocha, James Rushford, and Deborah Seller were present. Chairman David/an an- nounced that there will b ~£ommission meeting in eAnu°- J?ly meeting. The Commis- sioners discussed the Glenn vice letters (Nos. A-92-3SBa) and directed Zhe staff to prepare amendments to Regulation 18703--Effect on the Public Generally, for ~n order to provide more prenoticed/scussioninJuly. L~_Jtimely information to The Commissioner~ ap- those affected by the provi- proved $53,000 in fines in three sions of the Political Reform enforcement cases. Details of Act, the Commission will return these cases may be found un- der enforcement actions in this bulletin. Chairman Davidian called the June 2, 1994 meeting of the FPPC to order at 9:30 a.m. in the Commission Hearin Room, 428 J Street, Sacr mento. In addition to Chair- man Davidian, Commissioners Richard Brandsma, Raquelle de la Rocha, James Rushford, and Deborah Seller were present. The Commissioners rescind- ed that portion of the ?_a~nchetti advice letter (No. 1- 91-301) which applied the lob- byist contacts test to officers eand_,employ, ees of a lobbyist ~p~oyer WhO meet with offi- cials along with the employer's paid registered lobbyist. The Commissioners held prenotice discussion of Re( tion 18229--Definition pendent Child. Additional prenotice discussion will be held at the July meeting. The Commissioners a proved $12,000 in fines in thr s~on meetingwill be held Thurs- day, September 1, 1994. Bi-Monthly Bulletin to bi-monthly publication of the bulletin, the next publica- tion will be July/August. You should receive this issue during the end of August. - i$1ation (Continued from ~,age I, government agencies, and elected or appointed members of the~overning boards of special districts. ("Special dis- tr!~" is defined as any agency o? the state established for the local performance of govern- mental or propr etary func- tions within mited bound- anes. It includes a county ser- vice area, a maintenance dis- tr!ct area, an improvement dis- tract or zone, an air pollution control district, or a redevelop. ment agency.) There are exceptions to the gift limit (e g., gifts from faro- ily members) and honoraria prohibition (e.g., earned in- come received in connection with a bona fide business). In addition, payments received for certain types of travel are st. enforcement cases D**-:,- n~ot subject to the limit. See ~reTnho~icCe°~imissioners held ~jheerSe c, ases may b~ ,o~j~'~un. ~9°Sv0~r~n~fen' ,Code Sec/ion . scussion of n . enTorcement a,~; . - -~ · you nave uesti ~-osea amendmentsto RegP~_ bulletin. --onsmth,s c,oncernlng the ,egqislatio°nns L [ s~e_a,_se, con.tact the Commis: I ,~,, ~ Lega! L)ivision