Special Board of Directors Meeting January 28, 2015 Item No. 2 a~ . + .~~` REQUIREMENT AB 1234 TRAINING (Government Code Sec. 53235(f)) • At Least 2 Hours Every 2 Years service to the agency — Local officials who either receive compensation fortheir are reimbursed for their expenses, or are required to by the local agencys or one year conflicts of interest code. Newly elected /appointed - training within of assumingoffice. • General Ethics Principles — Values such as trustworthiness, respect, fairness, honesty and responsibility promote public trust • Ethics Laws — State Laws (Government Code, Penal Code) POliticalProctices Commission) — State Regulations(Fair (BP 100— Rules of Procedure; BP 113 Code of Ethics and — Board Policies Resources; Decorum; BP 116 Conflict of Interest Code; BP 168 Use of District and Misc. Expense Reimbursement) BP 180A: Trevel Meeting Training Presentation AB 1234 • Four (4) Sections: Servants — Section is Personal Financial Gain by Public (Rich) of Office — Section 2: Laws Relating to Claiming Perquisites (Rich) Transparency Laws (Jayne) — Section 3: Government — Section 4: Fair Process Laws (Jayne)
Section 1 Personal F i n a n c i a l G a i n by P u b l i c Servants • Bribery C o n f l i c t s of I n t e r e s t under the Political Reform • A c t t u a l Conflicts of I n t e r e s t ( G o v . C o d e § • C o n t r a c 1090) Campaign • Conflicts o f I n t e r e s t a n d Contributions i c e • C o n f l i c t s o f I n t e r e s t W h e n L e a v i n g O f f . 1 ~ i ~ i i y r 1 =~ ~R ~ t 1 ~ ' ~ ~ ~~ ` 4 . . A P P L Y ? TO WHOM DOES THE A C T • P u b l i c officials • W i t h a f i n a n c i a l i n t e r e s t participating in, o r • M a k i n g , attempting t o influence a l decision g o v e r n m e n t a — (Gov. C o d e § 8 7 1 0 0 ) e r e s t • BP 1 0 0 Sec. 2.7: Conflict o f I n t t C o d e • BP 1 1 6 : C o n f l i c t o f I n t e r e s 2
i OFFICIAL H A V E W H E N DOES A PUBLIC C O N F L I C T U N D E R THE P R A ? A B a s i c Rule under o f f i c i a l s have a disqualifying conflict of interest Public P o l i t i c a l R e f o r m Act o f 1974 when the d e c i s i o n is the that the d e c i s i o n w i l l have a •Reasonably f o r e s e e a b l e Material financial effect o n the public o f f i c i a l ' s • • E c o n o m i c interest generally • D i f f e r e n t from the public DETERMINE THE 8 STEPS T O CONFLICT O F INTEREST - OVERVIEW 8 S T E P T E S T o f f i c i a l ? Step 1 : Is the individual a public influencing a Step 2: Is the o f f i c i a l making, p a r t i c i p a t i n g or decision? g o v e r n m e n t a l interests of the o f f i c i a l ? Step 3: What constitutes the economic 4: Is the economic interest directly or indirectly a f f e c t e d Step b y the decision? ( m a t e r i a l 5: How w i l l t h e economic interest b e affected? Step financial affect) Step 6 : Is i t reasonablyforeseeablethat the economic interest will b e m a t e r i a l l y affected? 7 : Distinguishablefrompublicgenerally? Step "legally required participation" r u l e apply? Step 8: Does the
# 3 Key Steps —Step 3: Economic Interests •Step — Business Investments - $2,000 or more — Business Management Position — Director, Partner, Trustee or any position of Official, management $2,000 or more — Real Property - Sources of Income - $500 or more within 12 — months $460 or more within 12 months — Sources of Gifts - increase or decrease within — Personal Finances— 12 months STEPSS &6 "directly • #5 — Materiality Standards: For any economic interest, the material involved" foreseeable economic financial affect is any impact. economic • For any "indirectly involved" the material financial affect varies by interest, the type of interest. — Reasonably foreseeable is if there is a • #6 likelihood (better than SO %). substantial EXCEPTIONS STEPS 7 AND 8: THE • Step 7: Distinguishable from the public Segment) generally? (Significant the "legally required Step ~: Does participation" rule apply? alternative source ofdecision - making — when no to break a tie —not if quorum can possibly be convened of other — not who do not have a conflict members 0
ACTIONS REQUIRED RECUSAL official with a disqualifying interest must: Public Publicly identify interest in sufficient detail • • Recuse self from discussions or acting on matter Leave room, unless matter on consent agenda comment if Exception: May speak during public the interest is one's personal interest QU ~Z Board Member Participate? Can the for Board member rents a commercial space • A District $900 per month within the considers a project that will • The District eliminate street access to the property for 3 months action will trigger an automatic rent • This reduction provision in the lease —Can the Board member be involved in making the decision? QUIZ Member Who Recuses Him /Herself Urge Can a Board Support Before a Decision is Made? Board member is aware of the obligation • Assume the him /herself to recuse member contacts individual • Before the meeting, the the project board members to support — Can he /she do that? communicated with the — What if the Board member merely General Manager urging him to support the project?
O L A T I O N OF PENALTIES FOR V I REFORM A C T POLITICAL from Civil Remedy If official derived economic benefit could amountto 3 times the decision, fine benefit Sanctions If the official knowingly o r willingly Criminal law: misdemeanor conviction, v i o l a t e d the of $10,000 or 3 times v a l u e of b e n e f i t f i n e ) conferred (whichever is g r e a t e r and the official may n o t b e a c a n d i d a t e for public office for 4 years CAMPAIGN C O N T R I B U T I O N S • "Directly elected" e x c e p t i o n Official is disqualified from making a d e c i s i o n • if license, permit, or entitlement f o r use involving a official has p t e d a c a m p a i g n contribution a c c e in preceding 12 months. exceeding $250 accept a c a m p a i g n contribution • Official may not while an application is pending, and exceeding $250 the decision is made. for three months after "REVOLVING DOOR RULE" Officials d i s q u a l i f i e d from ! ^ . ~ .. m a k i n g govt. decisions directly relating to any person with whom he / s h e is i a t i n g re: their n e g o t prospective employment ■ Door Rule —1 year ~'~ ~ Revolving against l o b b y i n g restriction f o r m e r agency
CONTRACTS S U B J E C T T O S E C T I O N 1 0 9 0 P r o h i b i t s an officer or employee o f a public a g e n c y from p a r t i c i p a t i n g in the m a k i n g o f a contract in which h e / s h e has a f i n a n c i a l i n t e r e s t o n , or • Renewal, e x t e n s i i n g renegotiation of e x i s t contract i s a l s o s u b j e c t t o t h e p r o h i b i t i o n P A T I O N " SECTION 1 0 9 0 : " P A R T I C I CONTRACT IN MAKING A — Preliminary discussions — Negotiations — Compromises — Reasoning — Planning s p e c i f i c a t i o n s — D r a w i n g o f p l a n s a n d — Solicitation f o r bids — Signing o f c o n t r a c t 7
o OF SECTION 1090 CONFLICT SCOPE abstention does • For members of governing body, not cure Section 1090 problem from entering • Entire governing body is precluded into the contract EXCEPTIONS TO SECTION 1090 • Remote interest — disqualifies official, but Board may act Non - interest — financial interest "doesn't count" • and is ignored • Rule of necessity OF SECTION 1090 VIOLATION • Contract is void and unenforceable Payments made to the contracting party must be returned to the public agency • Public agency may keep the benefit of the contract
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