For Personal Use Only. Not for Distribution. for Personal Use Only

Understanding the Basics of PUBLIC SERVICE ETHICS Perk Issues, Including Compensation, Use of Public Resources and Gift Laws For Personal Use Only. Not for Distribution. For Personal Use Only. The Institute is grateful to the following firms for their commitment to public service ethics: PLATINUM LEVEL COMMITMENT

GOLD LEVEL COMMITMENTS

Special thanks to the following individuals whose time and effort contributed to this publication:

Craig Dunn Associate Professor, Department of Management, Western Washington University Senior Consultant, The Centre for Organization Effectiveness Michael Martello City Attorney, City of Mountain View For Personal Use Only. Not for Distribution. For Personal Use Only.

All final decisions about the content, tone and formatting of this publication were made by the Institute for Local Government.

Understanding the Basics of PUBLIC SERVICE ETHICS: Perk Issues, Including Compensation, Use of Public Resources and Gift Laws © 2009 by The Institute for Local Government 1400 K Street, Suite 205 Sacramento, CA 95814 (916) 658-8208 • FAX (916) 444-7535 • www.ca-ilg.org Understanding the basics of PUBLIC SERVICE ETHICS

Perk Issues, Including Compensation Use of Public Resources and Gift Laws

About this Guide...... 1 What Is an “Ethics” Law?...... 1 Understanding Ethics Laws...... 2

Compensation Issues...... 3 Basic Rules...... 3 counties...... 3 special Districts...... 3 cities...... 5 Charter Cities...... 5 General Law Cities...... 5 special Issue: Speaking and Other Fees...... 6 Basic Rules...... 6 Penalties for Accepting Fees...... 7 Criminal Sanctions...... 7 Civil Sanctions...... 7 exceptions to No-Honoraria Rules...... 8

Reimbursement of Expenses...... 9 Basic Rules...... 9 Penalties for Missteps...... 10 state Law Penalties...... 10 Federal Law Penalties...... 11 special Issues: Certain Kinds of Expenses...... 11 cell Phone and Internet Expenses...... 11

Vehicle and Expense Allowances...... 11 Not for Distribution. For Personal Use Only. Lobbying Expenses...... 12 gifts and Picking Up the Tab for Others...... 12 conference Attendance and Expenses...... 13 special Disclosure Requirement for Special Districts...... 13 spouse or Domestic Partner Travel...... 13 reporting Requirement When One Attends a Meeting...... 14 Other Restrictions on Use of Public Resources...... 15 Basic Rules...... 15 Use of Public Resources for Personal Purposes...... 15 Use of Public Resources for Campaign Purposes...... 15 Penalties...... 17 special Issues: Use of Public Resources...... 17 Prohibition Against Mass Mailings at Public Expense...... 17 Use of Public Resources for Business...... 18 agency Credit Cards...... 18 Use of Letterhead, Titles, and Logos...... 18 Badges...... 19 staff Time...... 20 giving Gifts...... 20 charitable Donations...... 20

Gifts to Public Officials...... 23 Basic Rules...... 23 Penalties for Missteps...... 24 state Law Penalties...... 24 Criminal Sanctions...... 24 Civil Sanctions...... 24 Administrative Fines...... 24 Federal Law Penalties...... 25 Honest Services Fraud...... 25 Extortion...... 25 Income Tax Violations...... 25 exceptions to Rules...... 26 What to Do about Unwanted Gifts?...... 27 special Issues...... 28 Tickets to Fundraising Events Given to Public Officials...... 28 Tickets to 501(c)(3) Fundraisers...... 28 Tickets to All Other Nonprofit Fundraisers...... 28 Tickets to Political Fundraisers...... 28 gifts of Travel Expenses...... 29 For Personal Use Only. Not for Distribution. For Personal Use Only. Basic Rules...... 29 Exceptions to the Rules...... 29

institute for Local Government Understanding the Basics of Public Service Ethics: Perk Issues e

Index generalWebsites Resources forFurtherInformation civilSanctions criminalSanctions Endnotes civilSanctions criminalSanctions Use ofCampaignFunds t generalReportingequirements giftstoan Publications Penalties Basic Rule Penalties ......

ickets Giventoan ...... Agency ...... Agency thics: Perk Issues Understanding the BasicsofPublic Service Ethics:Perk ...... 46 37 35 35 35 35 35 33 33 33 31 31 31 45 44 44 e For Personal Use Only. Not for Distribution. For Personal Use Only. Not for Distribution. For Personal Use Only.

institute for Local Government Understanding the Basics of Public Service Ethics: Perk Issues 1 About This Guide

Other ethics laws simply require What Is an transparency: they provide the public “Ethics” Law? and the media with information on how Defining the subgroup of laws that the public’s business is being conducted, constitute “ethics” laws is an imprecise who is receiving campaign contribu- undertaking. For those involved in tions and gifts from whom, and what public service, “ethics laws” tend to be kinds of financial interests a public those laws whose central purpose is to official has. With transparency laws, the protect the public’s trust in its public public judges whether a public official institutions and those who serve in them. or group of public officials is acting in a Trustworthiness is a key ethical value.1 trustworthy fashion—typically as part of the elections process. Transparency laws Many of these ethics laws are also encourage trustworthy behavior prohibitions: they forbid certain actions by reminding public officials that their that would undermine the public’s actions will likely be scrutinized and trust that decisions are being made judged. to benefit the public’s interests (as opposed to the personal or political Other ethics laws require that public interests of the decision-maker). Making agency decision-making processes meet decisions in the public’s interest is also minimum standards of fairness. Fairness 3 a key responsibility of public service is another key ethical value. (responsibility is another key ethical Because public trust and confidence value).2 Prohibitions deter betrayals of is vital to the strength of a democratic the public’s trust by creating penalties system, ethics laws sometimes set for such betrayal. very high standards for public official Laws against misusing public resources conduct. Even so, it is important to keep are a form of prohibitory law, as are in mind that these standards are only laws that prevent a decision-maker minimum standards: it is simply not from being involved in a decision if the possible or practical to write laws that decision-maker has a real or perceived prevent all actions that might diminish conflict of interest. Laws against bribery the public’s trust. For this reason, the or other forms of “pay to play” are laws should be viewed as a floor for Not for Distribution. For Personal Use Only. another important ethics law prohibition. conduct, not a ceiling. Just because a given course of conduct is legal does not

Understanding the Basics of Public Service Ethics: Perk Issues 1 mean that it is ethical (or the public will Keeping four core principles in mind perceive it as such). helps:

n Public officials may not use their Understanding offices for personal financial gain. Ethics Laws n Holding public office does not entitle California has a complex set of ethics one to personal advantages and laws to guide local officials in their perks. service to their communities. How does n Transparency is an important the well-intentioned local official keep element of public service. track of them all? n Merit-based decision-making based This guide focuses on laws relating to on fair processes produces the best public officials andpersonal advantages results for the public. and perks. These laws are both complex and sometimes counter-intuitive. A key goal of this guide is to alert local

officials to when to ask for legal advice on how these laws apply in a particular situation.

A Complete Library on Public Service Ethics Issues

As part of its Understanding the Basics of Public Service Ethics, the Institute for Local Government offers California local officials a series of resources designed to help them meet both the law’s and the public’s expectations for public service: n Personal Financial Gain Laws n Perk Issues, Including Compensation, Use of Public Resources and Gift Laws n Transparency Laws n Fair Process Laws and Merit-Based Decision-Making n Promoting Personal and Organizational Ethics In addition, as part of its “Everyday Ethics” series, the Institute regularly analyzes situations local officials

face from both a legal and ethical perspective. Not for Distribution. For Personal Use Only. To access these resources, visit www.ca-ilg.org/trust.

2 institute for Local Government Understanding the Basics of Public Service Ethics: Perk Issues 3 Compensation Issues

Basic Rules Counties Typically there is a legal limit on public County boards of supervisors set their official compensation levels, either in salaries; supervisors’ salaries are subject 8 state or local statutes. Public officials, to referendum. particularly elected ones, may only Special Districts receive such compensation that the law allows.4 Any extra compensation must State law sets the salaries for members be refunded.5 Moreover, as protectors of special district governing boards— of the public purse, courts generally typically in the law that creates the 9 take a strict approach to public official particular kind of special district. Salaries compensation limits.6 usually are tied to the days a public official spends participating in meetings or other district-related work, with a With Money Comes maximum number of compensated days Education per month. The chart on page 4 contains If a local agency provides any examples. type of compensation or payment of expenses to members of a legislative body, then all of the members are required to have two hours of ethics training within one year of entering public service and every two years thereafter.7 For Personal Use Only. Not for Distribution. For Personal Use Only.

Understanding the Basics of Public Service Ethics: Perk Issues 3

4 institute for Local Government directors (asdefined) Municipal waterdistrict District directors(asdefined) Contra ostaountyWater (as defined) County waterdistrictdirectors (as defined) California waterdistrictofficials (as defined) Water districtdirectors acres ormore Irrigation districtsof500,000 deliver electricity 500,000 acresthatproduceor Irrigation districtsoflessthan 500,000 acres Irrigation districtsoflessthan Utility districts Harbor districts Sanitation districts Park andrecreationdistricts Type ofDistrict

$100 perday $100 perday $100 perday $100 perday No perdaysalary month $100 perdayOR$600 $100 perday $100 perday No perdaysalary at therequestofboard meetings orserviceprovided $100 perdayforboard $100 $100 perday Irrigation Districts Per DayMaximum Special Districts Water Districts An annualcapof$15,000 compensated service Not toexceedsixdaysof $600 permonth $600 permonth month Not toexceedsixdaysper $500 permonth month compensated serviceper Not toexceed6daysof month compensated serviceper Not toexceed10daysof month compensated serviceper Not toexceed6daysof No maximum month compensated serviceper Not toexceed10daysof Board ofSupervisors member oftheImperialCounty cannot exceedthesalaryofa and subjecttoreferendumbut Salary tobefixedbyordinance 11 21 20 19 17

Maximums 18

13 12 10

16 14

For Personal Use Only. Not for Distribution. thics: Perk Issues Understanding the BasicsofPublic Service Ethics:Perk 5

compensation. instead paysamoresalary-likeformof of daysdoingdistrictbusiness,but pay compensationbasedonnumber don’t applywhenthedistrict doesnot meeting. in awrittenpolicyadoptedpublic attendance atothereventsasspecified Agencies maycompensateofficialsfor n n n compensated for? Typically: of workmayadistrictofficialbe What kindsofmeetingsanddays

Conference attendanceoreducational A meetingofanadvisorybody A meetingofany“legislative activities, includingethicstraining meetings laws body” asdefinedbythestate’s open 23 Notethattheseparameters

24 22 thics: Perk Issues Understanding the BasicsofPublic Service Ethics:Perk

The startingpointsare: established instatelawthe1980s. compensation istiedtoparameters compensation issetbyordinance;such cities, citycouncilmembers’ baseline Broadly speakingingenerallaw General LawCities city’s charter. concern whichmaybeaddressedinthe compensation isamatteroflocal For chartercities,electedofficial Charter Cities Cities council members’ currentterms. in thefuture—notduringdeciding compensation, theincreasetakeseffect When acitycouncilvotestoincrease from thedateofanyprioradjustments. amounts byuptofivepercentperyear General lawcitiesmayincreasethese Over 250,000Population Including 250,000 Over 150,000Uptoand Including 150,000 Over 75,000Uptoand Including 75,000 Over 50,000Uptoand Including 50,000 Over 35,000Uptoand Up toandIncluding35,000 City SizebyPopulation 25 General LawCities 27

29 Baseline PerMonthSalary

$1,000 $800 $600 $500 $400 $300 5 For Personal Use Only. Not for Distribution. 6 institute for Local Government compensation—the compensationis statute doesnotspecifyanamountof serving onacommission—butthat council membercompensationfor If statelawprovidesforadditional n n compensation. unless statelawauthorizesadditional which thecitycouncilmemberserves, board, authority, orsimilarbodyon including anycommission,committee, members fortheirserviceonthecouncil, These amountscompensatecitycouncil compensation. Elected mayorsmayreceiveadditional $150 permonth.

If acommunityhas If communityhasa meetings ($300)permonth. per meeting,withamaximumoftwo not exceed$150percommissioner commissioner compensationmay and housingauthorityfunctions, oversees bothredevelopment development commissionthat meetings ($150)permonth. per meeting,withamaximumoftwo not exceed$75percommissioner commissioner compensationmay oversee redevelopmentfunctions, development commissionto 31 30 Forexample, 35

32 34 33

payments forgivingaspeech,writing to whichpublicofficialsmayreceive State lawalsoregulatesthedegree Basic Rules Fees Speaking andOther Special Issue: returning it. there isa30-daytimelimitfor someone whoisunawareoftherules, If onereceivesanhonorariumfrom page 8. honoraria prohibitionsdiscussedon There arenarrowexceptionstothe of apublicofficial’s service. notion issuchcommunicationsarepart which areknownashonoraria. employee mayacceptsuchpayments— for localelectedoffice,ordesignated local electedofficeholder, candidate event, mealorsimilargathering. conference, convention,meeting,social an articleorattendingapublicprivate 38

The 36 No

For Personal Use Only. Not for Distribution. thics: Perk Issues Understanding the BasicsofPublic Service Ethics:Perk 7

also apossibility. misconduct inoffice. disclose constituteswillfulorcorrupt for removalonthetheoryfailureto a grandjurytoinitiateproceedings official duties theory theofficialviolatedhisorher immediate lossofofficeunderthe a convictionmayalsocreatean following theconviction. for electiveofficefouryears Reform a misdemeanor misdemeanor. of theserequirementsisa A Criminal Sanctions Political knowingorwillfulviolation are abletodemonstrate. violate thelawthatenforcemententities the violationanddegreeofintentto sanctions, dependingontheseverityof these lawsarepunishablebyavarietyof Political Reform Act. Violations of These restrictionsarepartofthe Penalties for Act maynotbeacandidate 42

Reform Act Penalties orcreateabasisfor A 40 personconvictedof 44 underthePolitical

Accepting Fees

43 Jailtimeis

41 39 Such thics: Perk Issues Understanding the BasicsofPublic Service Ethics:Perk fees. reasonable attorney’s the litigation,including reimburse thecostsof the violatormayhaveto a memberofthepublic, If theactionisbroughtby the law. the officialfromviolating bring anactiontoprevent member ofthepubliccan Practices Commissionora attorneys, theFairPolitical District attorneys,somecity Civil Sanctions 46 45 7 For Personal Use Only. Not for Distribution. Exceptions to n Income from Bona Fide No-Honoraria Rules Occupation. An official may be paid income for personal services if the Some gestures in connection with services are provided in connection speaking or writing engagements are with a bona fide business, trade, allowed. These include: or profession (such as teaching, n Payments Voluntarily Made practicing law, medicine, insurance, to Charitable and Similar real estate, banking, or building Organizations. An organization contracting) and the services are may recognize a public official’s routinely provided in connection with speech, article or meeting attendance the trade, business or profession.49 by making a direct contribution to This exception does not apply, a bona fide charitable, educational, however, when the main activity of civic, religious, or similar tax-exempt the business or profession is making nonprofit organization.47 A public speeches. official may not make such donations n Some Payments in Connection with a condition for the speech, article a Speech or Panel Discussion. An or meeting attendance. In addition, official may accept certain gestures the official may not claim the when the official gives a speech, donation as a deduction for income participates in a panel or seminar, tax purposes. Nor may the donation or provides a similar service. These have a reasonably foreseeable are exempt from the honoraria ban financial effect on the public official and are not considered “gifts” by or on any member of the official’s the Political Reform Act. These immediate family. The official may include free admission to the event, not be identified to the nonprofit refreshments and similar non- organization in connection with the cash nominal benefits received at donation. the event, necessary lodging and n Payments Deposited in Local subsistence provided directly in Agency General Fund. An connection with the speech, panel, honorarium may be paid to the local seminar, or service, and transportation agency’s general fund, without (within California) to the event.50 being claimed by an official as a

deduction from income for income Not for Distribution. For Personal Use Only. tax purposes.48

8 institute for Local Government Understanding the Basics of Public Service Ethics: Perk Issues 9

government spendsmoney. of thisisageneralpublicdistrusthow makes theagencylookbad. Added toall legitimate expendituresinawaythat Moreover, themediacanportrayeven and giveallpublicofficialsabadname. usually attractunfavorableattention The difficultyisthatthosewhodo into thistrap. nately, it’s rareforpublicofficialstofall with normsintheprivatesector. Fortu- office —particularlyforthosefamiliar incur otherexpensesasa“perk”of look attheopportunitytotraveland To closethegap,itcanbetemptingto private sector. executives) usuallycanearnmoreinthe city managersandcountyordistrict careers inpublicservice(forexample, also wellknownthatthosewhomake time theyspendonofficialduties.Itis compensate themadequatelyforthe most electedofficialsreceivecannot There isnodisputethatthestipends R eimbursement of

51 thics: Perk Issues Understanding the BasicsofPublic Service Ethics:Perk n agencies must: expenses. appointed officials’ “actualandnecessary” relating toreimbursinglocalelectedand and restrictionsonlocalagencypractices State lawcontainscertainrequirements Basic Rules for havingbeennecessary. expenses musthavemetlegal standards light oftherequirementthatreimbursable of expendituresthatarereimbursablein findings astothenecessityofalltypes advisable forsuchpoliciestoinclude Revenue Serviceguidelines. reimbursable ratesdefaulttoInternal specify reimbursementrates,thenthe expenses. Ifalocalpolicydoesnot rates fortravel,meals,lodgingandother specify whatconstitutesreasonable Local reimbursementpoliciesmay n n n

Adopt expensereimbursementpolicies Require thatallexpensesmustbe Use expensereportforms;and Identify a“reasonabletime”within that specifythekindsofactivities disclosure). documents arepublicrecordssubjectto documented withreceipts be submittedinthosepolicies; which requestsforreimbursementmust will bereimbursable; 52 As ageneralmatter, local 56

E xpenses 53

57 55 Itisalso (these 54

9 For Personal Use Only. Not for Distribution. 10 institute for LocalGovernment Another optionistohavethepolicies well aselectedandappointedofficials. expense reimbursementsforstaff as elected toadoptpoliciesthatgovern administration, somelocalagencieshave For consistencyandeaseof policies asamatterofsoundpractice. authority, manychartercitieshavesuch this requirementgiventheirhomerule charter citiesmaynotbesubjectto of alegislativebody.” apply to“reimbursementsofmembers restrictions onreimbursementratesonly expense reimbursementpoliciesand State lawrequirementsrelatingto paying theextracoststhemselves. policies havetheoptionofsimply under theiragencies’ reimbursement Officials whospendmorethanallowed (before incurringtheexpense). reimbursement fromthegoverningbody official mayseekpriorapprovalforsuch agency’s reimbursementpolicy, thenthe not otherwiseauthorizedunderthe reimbursement forlevelsofexpenses If apublicofficialwantstoseek records. supporting documentationarepublic All expensereimbursementrequestsand expense reimbursementpolicies, see of statelawrequirementsrelatingto For moreinformationontheissue the agencyinfirstinstance). example, thoseexpensesthatarepaidby strictly speaking,“reimbursed”(for address expensesotherthanthoseare, 59

62 Although 60

or falsifyingexpensereportsinviolation Penalties formisuseofpublicresources State LawPenalties Missteps Penalties for reimbursementpolicy. for localofficialsatwww.ca-ilg.org/ reimbursement policyasastartingpoint dime). The Institute alsooffers asample the Public’s Dime”(seewww.ca-ilg.org/ column “BuyingMealsforOtherson the EverydayEthicsforLocalOfficials California. thereafter toholdpublicofficewithin in addition,thatpersonisineligible a felonypunishablebyimprisonment; convicted ofembezzlementisguilty as afelonyviolation. A publicofficer public officer, oritmaybe prosecuted warrants theremovalfromofficeofa constitute “willfulmisconduct”which form oftheft. resources becomesembezzlement—a At somepoint,personaluseofpublic n n n n of expensereportingpoliciesinclude:

Criminal prosecutionandalifetime Civil penaltiesofupto$1,000per Restitution tothelocalagency Loss ofreimbursementprivileges bar frompublicoffice resource used day andthreetimesthevalueof 68

67 Embezzlementmay 65

For Personal Use Only. Not for Distribution. thics: Perk Issues Understanding the BasicsofPublic Service Ethics:Perk 11

will alsoapply. against corruptionandembezzlement funding, thefederalcriminallaws If theprogramhasanydegreeoffederal violator or2)$250,000perviolation. of thegreater1)twicegainto federal prisonperviolationand/orafine is punishablebyuptofiveyearsin for acharge ofmailfraud. way, suchuse canalsobecomethebasis If thepostalservicewasusedinany costs ofprosecution. and/or ayearinfederalprison,plusthe is punishablebyfinesofupto$25,000 report informationtothetaxauthorities the costsofprosecution. convicted arealsoresponsibleforpaying five yearsinprison,orboth. Those is afineofupto$100,000and penalty forwillfulincometaxevasion sections arenoexception. The general notoriously complexanditspenalty The InternalRevenueCodeis action forincometaxevasion. the officialthenbecomessubjecttoan as suchontheofficial’s taxreturns, not typicallyreportedthesepayments to theofficial.Becauseofficialhas reimbursements oradvancesasincome treat thereceiptofillegitimateexpense Federal prosecutorshavebeenknownto Federal LawPenalties

69 Failureto 71 Mailfraud thics: Perk Issues Understanding the BasicsofPublic Service Ethics:Perk 72

cellular callswhentheofficialhasa were madeonagencybusiness.For and thattheofficialidentifywhichcalls requires thattelephonebillsbesubmitted of kindsdocumentation,oneagency policy withdocumentation. reimbursed accordingtolocalagency Cell phoneandInternetexpensescanbe Expenses Cell PhoneandInternet Expenses Certain Kindsof Special Issues: necessary expensesincurred. that theallowancematched actualand on empiricallydemonstrableinformation seemed topermitallowanceswhenbased based onstatuteandcaselaw auto expensesthroughanallowance, local agencieshadpreviouslyreimbursed allowances arenotpermitted. means thatvehicleandotherexpense after thefactbasedonreceipts requirement thatexpensesbereimbursed Some agencyattorneysbelievethatthe Allowances Vehicle and Expense access. and proofoftheamountbillforsuch related usagefortheperiodinquestion estimate ofthepercentageagency- Internet access,theofficialsubmitsan of callsmadeonpublicbusiness.For the officialtoidentifypercentage the official’s plan,thentheagencyasks particular numberofminutesincludedin 74 Interms 77 76 75

that Some 11 For Personal Use Only. Not for Distribution. A factor to keep in mind with expense allowances is that they may be taxable (and subject to withholding) if the official cannot document that his or her actual expenses met or exceeded the allowance.78 An alternative to vehicle allowances is to make agency vehicles available for Gifts and Picking Up the Tab official use. for Others A request for an Attorney General It is common for business people to opinion on this topic is pending. extend hospitality and make gifts and charitable contributions to generate Lobbying Expenses goodwill for the company. However, There are also statutes that allow California’s constitution specifically public officials to be reimbursed prohibits “gifts” of public resources.81 expenses associated with lobbying the This prohibition also applies to an legislature.79 The Attorney General agency making gifts to its officials and has concluded that the statutory employees.82 authorization, on its own, does not The Attorney General has concluded extend to purchases of meals for others payment of expenses for other people’s 80 when lobbying. If an agency governing meals, even when the purpose of the body believes it is in the community’s meal is to discuss agency business or interest to purchase such meals, it legislative issues, is not a “necessary” should explain why in its expense expense for a public official.83 An reimbursement policy. expense policy with appropriate findings by the agency governing body may address the Attorney General’s concerns. A sample policy is available at www.ca- ilg.org/reimbursementpolicy.

RESOURCE FOR FURTHER INFORMATION For more information, see the Everyday Ethics for Local Officials column “Buying Not for Distribution. For Personal Use Only. Meals for Others on the Public’s Dime” (see www.ca-ilg.org/dime).

12 institute for Local Government Understanding the Basics of Public Service Ethics: Perk Issues 13

www.ca-ilg.org/conferences). “Attending Conferences”(see Ethics forLocalOfficialscolumn For moreinformation,seetheEveryday INFORMATION RESOURCES FORFURTHER official misconduct. personal useofpublicresourcesor and arguably unlawful,either asa the conferencesessionsisbothunethical of hisorherofficialduties,notattending to assisttheofficialinperformance Since thepurposeforexpenditureis does notattendtheconferencesessions? conference atpublicexpensebutthen What happensifanofficialtravelstoa and transportationservices. rates fornon-conference-relatedlodging officials mustusegrouporgovernment government rates. by theInternalRevenueServiceor must becomparabletothoseallowed the lodgingisbooked,rates those ratesarenotavailableatthetime rates publishedfortheconference. may notexceedthemaximumgroup connection withconferences,therate expenses. Forexample,forlodgingin what constitutesreasonablelevelsof The lawspecifiescertainthresholdsfor a “propermunicipalpurpose.” conference expensesarereimbursableas The courtshaveconcludedthat and Expenses Conference

Attendance 86 Localagency 88

85 If thics: Perk Issues Understanding the BasicsofPublic Service Ethics:Perk indicates thatthelegislativeauthor’s the document,legislativehistory refers to“publishing”or“printing” boundaries. or proprietaryfunctionswithinlimited the localperformanceofgovernmental pursuant togeneralorspecialact,for include anyagencyofthestate,formed or more. disclose allreimbursementsof$100 Special districtsmust,atleastannually, Districts Requirement forSpecial Special Disclosure Attorney Generalsaidno. a conferenceonofficialbusiness. The for adistrictdirector’s spousetoattend be properforahospitaldistricttopay question relatedtowhetheritwould public official’s spouse. purpose inpayingfortheexpensesofa there isnodirectandsubstantialpublic constitute agiftofpublicfundsbecause General hasconcludedthiswould so inthepublicsector. The Attorney business tripsatcompanyexpense.Not sometimes travelwiththeirspouseson In theprivatesector, companyofficials Partner Spouse orDomestic format willdothejob. public inspectioninanunderstandable making thedocumentavailablefor packets orotherwiseprintingand including thedocumentinagenda publication” butthatperiodically intent wasnottorequire“anexpensive 89 The term“specialdistricts” T 90 ravel Although thestatute 91 92

The specific

13 For Personal Use Only. Not for Distribution. 14 institute for LocalGovernment as awhole—nottoanyoneofficialinthatagency. attendant protectionsforattorney-clientconfidences. Theagencyattorney’s obligationsaretothe entity Note that,inthesesituations,theagency’s attorneyisnotanindividualpublicofficial’s attorney, with punish ormakeanexampleofsomeone. related tocorruptionorfraud. Similarly, anagency mayrefusetoprovideadefenseincivilactionifitfindstheactionsquestion the agencycouldmakethesefindings,itdoesn’thave to. Theremaybestrongpoliticalpressuresnotto. the lastfinding,whichisthatusewasinapparent interestsofthepublicentity If theissueispersonaluseofpublicresources,it maybeparticularlydifficultfortheagencytomake 3. uch defensewouldbeinthebestinterestsofpublicentity;and 2. S 1. Don’t countonit. To provideadefenseincriminalaction,forexample,theagencymustfindthat: If IGetInt public entity. The individual’s actionswereingoodfaith,withoutactualmaliceandtheapparentinterestsof to thepublicentity; The criminalactionorproceedingisbroughtonaccountofanactomissionintheofficial’ o Truble,Canthe Agency P 98 location aspermittedbylaw, tohear, location, includingteleconference legislative bodyatthesametimeand of amajoritythemembers law’s definition: are tiedtothestate’s openmeeting “Meetings” forpurposesofthissection meeting ofthelegislativebody. attended atpublicexpensethenext legislative bodytoreporton“meetings” State lawrequiresmembersofa One Reporting equirementWhen opposed toapublicagencyexpense. expenses areapersonalexpenseas functions. Itjustmeansthespouse’s or partnercannotcometoofficial This, ofcourse,doesnotmeanaspouse

Attends aMeeting 99

Also, publicagenciesarenotresponsiblefordamageawards designedto 94 anycongregation 100

101

93 a

y My Defens? Presumably thereportcanbeeither representative capacity. official’s expensesinservingthat agency boardandthecitypaysfor his orheragencyonajointpowers member orsupervisorrepresents is requiredwhenacitycouncil An exampleofwhenabriefreport lodging, andtravel. reimbursement tothememberformeals, body. matter jurisdictionofthelegislative any itemthatiswithinthesubject discuss, deliberate,ortakeactionon the meeting. body thatpaidforitsmembertoattend at thenextmeetingoflegislative written ororal. The reportmustbemade 95 Qualifyingexpensesinclude 97

. Moreover, evenif 96

s service

For Personal Use Only. Not for Distribution. thics: Perk Issues Understanding the BasicsofPublic Service Ethics:Perk 15

An “occasionaltelephonecall”isan for personaluseofpublicresources. constitute anaffirmativeauthorization traps fortheunwary;theydonot resources. These exceptionsprevent for “incidentalandminimal”useof There areverynarrowexceptions violations. penalizes bothintentionalandnegligent as amonetaryvalue. to thelocalagencythatcanbeestimated gain inadvantagefortheuserandaloss that issubstantialenoughtoresultina “Use” meanstheuseofpublicresources (stationery, stamps,andotheritems). and computers),3)officesupplies (telephones, faxmachines,photocopiers, as 1)staff time,2)officeequipment “Public resources”includesuchthings enjoyment, privategainoradvantage. means activitiesthatareforpersonal “Personal” useofpublicresources Personal Purposes Use ofPublicResourcesfor illegal. personal orpoliticalpurposesis Using publicresourcesforeither Basic Rules Public Resources Other RestrictionsonUseof 102

105

104 The statute thics: Perk Issues Understanding the BasicsofPublic Service Ethics:Perk 103

prohibit theuseofsuchresourcesfor public resourcesforpersonalbenefitalso The samestatutesthatprohibittheuseof Campaign Purposes Use ofPublicResourcesfor use ofpublicresources. example ofanincidentalandminimal are reasonableandnecessary. on expensereimbursementtothosethat gifts ofpublicfunds state constitution’s prohibitionagainst political gainalsomayrunafoulofthe Taking advantageofone’s officefor other items). office supplies(stationery, stamps,and photocopiers, andcomputers),3) equipment (telephones,faxmachines, such thingsas1)staff time, 2) office Again, “publicresources”include purposes. use ofschoolpropertyforpolitical to restrictionsonandpenaltiesforthe and communitycollegesarealsosubject opposition toballotmeasures.Schools and campaignsinsupportofor applies tocampaignselectcandidates campaign purposes. 108

107 109 The prohibition andthelimitation 106

110

15 For Personal Use Only. Not for Distribution. 16 institute for LocalGovernment reporting thatactionintheminutes)andpreparingballotarguments. a memberofthepublic,discussingmeasureandtakingpositionatanagencymeeting(and Exceptions includethecostsofmakingstaff reportsonballotmeasuresavailableattherequestof the communicationsconstituteafairandimpartialpresentationoffactsrelatingtomeasure. local agencies,theFairPoliticalPracticesCommissionsaysthatexpendituresarereportableunless advocate orunambiguouslyurgeaparticularresultinballotmeasureelection. expenditure reportingrequirementswhentheagencyproducesmaterialswhicheitherexpressly Local agenciesengagedinactivitiesrelatedtoballotmeasuresshouldalsobemindfulofcampaign the ballot. voters tovoteonewayoranother. challenges ofaballotmeasure, Local agenciesmayalsospendfundstoengageinvoterregistrationactivities argumentative orinflammatoryrhetoric. drafting thisanalysis,itisimportanttoemphasizethefactsrelatingballotmeasureandavoid request orthroughregularagencycommunicationchannelsaccordingtousualpractice. Local agenciesmayobjectivelyanalyzetheeffect ofaballotmeasure style, toneandtimingindicatethattheirpurposeisadvocacyasopposedtoinformational. either “voteyes”orno”onameasureconstitutecampaignadvocacy; engage incampaign-typeadvocacywithrespecttotheagency’s position.Materialsthaturgevotersto where allpointsofviewcanbeheard. Local agenciesmaytakepositionsonballotmeasures,aslongtheydosoinanopenmeeting Use ofPublicRsourcesonBallotMeaure-Related Activities 119

118 as long as these activities donotinvolveefforts aslongtheseactivities topersuadethe A localagencymayalsousepublicresourcestoputameasureon 111 116

hey generally may They generallymay

not , however, usepublicresourcesto 122 114 andsharethatanalysisupon 112 soarematerialswhose 117 120 andpre-electionlegal Forstateand 113

121 115

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California. thereafter toholdpublicofficewithin in addition,thatpersonisineligible a felonypunishablebyimprisonment; convicted ofembezzlementisguilty as afelonyviolation. A publicofficer public officer, oritmaybeprosecuted warrants theremovalfromofficeofa constitute “willfulmisconduct”which a formoftheft. resources becomesembezzlement— At somepoint,personaluseofpublic resource used. occurs, plusthreetimesthevalueof up to$1,000foreachdaytheviolation office. permanent disqualificationfrompublic two- tofour-year stateprisontermand benefit. resources forpersonalorpolitical and civilpenaltiesforusingpublic Public officialsfacebothcriminal Penalties 124 123 Civilpenaltiesincludeafineof Criminalpenaltiesincludea 127

125 126

Embezzlementmay thics: Perk Issues Understanding the BasicsofPublic Service Ethics:Perk

more than200substantiallysimilar has defined“massmailings”assending Fair PoliticalPracticesCommission mass mailingsatpublicexpense. this reason,statelawforbidssending identification withpotentialvoters.For to enhancetheirvisibilityandname public officialstouseresources The law reflects the notion it is unfair for Mailings atPublicExpense Prohibition of PublicResources Special Issues:Use including reasonableattorney’s fees). litigation initiatedbyprivateindividuals, reimbursement forthecostsofany $5,000 perviolation, or willfulviolations, may apply(misdemeanorforknowing the Act’s civilandcriminalsanctions Political Reform Act, whichmeans These restrictionsarepartofthe and directories). prohibition (forexample,legalnotices Also, therearesomeexceptionstothe or pictures(forexample,newsletters). contain electedofficials’ names,offices whenever sendingoutmaterialsthat sure toconsultwithagencycounsel mailing arequitecomplex.Make The rulesonwhatconstituteamass part ofastandardletterhead. pictures ofelectedofficialsexceptas pieces thatcontainthename,officeor Against Mass 130 131 finesofupto andpossible 129

128 The 132 17 For Personal Use Only. Not for Distribution. 18 institute for LocalGovernment The riskofagencycreditcardmisuse, Agency Creditards may notbeadefense. public resourcesandthatreimbursement officials areprosecutedformisuseof stands forthefactualpropositionthat be citedasprecedentinothercases),it published (whichmeansthatitcannot Although thecourtdecisionwasnot strictly construed. to misusepublicresourcesmustbe noting thatthestatutemakingitacrime public resources. The courtsaid“no,” reimbursed thecountyforuseof allowed toconsiderwhethershehad argued thatthejuryshouldhave been practice. used countyfacilitiesforherprivatelaw supervisor who,amongotherthings, the basisforaconvictionofcounty political useofpublicresourceswas The prohibitionagainstthepersonaland for Business Use ofPublicResources (see www.ca-ilg.org/massmailing). “Career-Saving Tips onMassMailings” Ethics forLocalOfficialscolumn For moreinformation,seetheEveryday board members. issuance ofcreditcardstowateragency Agencies hasrecommendedagainst the Association ofCalifornia Water cards toofficialsoremployees.Infact, agencies havestoppedissuingcredit high. Becauseofthis,anumber either intentionalorinadvertent,is 133 Onappeal,thesupervisor 134

that canbeusedtomakeairlineand agencies haveoneagencycreditcard To facilitatetravelarrangements,some propriety ofsuchexpenses.) some kindofpublicinquiryaboutthe taking stepstoreimburseuntilthereis such personalexpensesandthennot (Of course,evenmoreriskyisincurring rejected reimbursementasadefense. agency. As mentionedabove,onecourt plans tosubsequentlyreimbursethe for personalpurchases—evenifone safest practiceisto If onehasanagencycreditcard,the correspondence. or personalstationeryforindividual officials withmoreinformalnotecards candidates. personal purposesorendorsementof logo) forcertainpurposes,example, Others prohibittheuseofletterhead(or without governingbodyapproval. any useofletterheadortheagencylogo For example,someagenciesprohibit of agencyletterheadforcorrespondence. public officialshaveaccesstoanduse Agencies differ ontheextenttowhich and Logos Use ofLetterhead, reimbursement orcashadvancebasis. All otherexpensesareeitherona to useitislimitedafewpeople. kept inasecureplaceandtheauthority hotel reservations. This creditcardis 136 Someprovideagency never T usethecard itles,

135

For Personal Use Only. Not for Distribution. thics: Perk Issues Understanding the BasicsofPublic Service Ethics:Perk 19

n n Some thingstoconsider: governing bodyapproval. agency letterheadandlogoswithout agencies simplyprohibitalluseof logos. These issuesarewhy some apply totheuseoftitlesandagency of recommendation).Similarquestions endorsement (forexample,onaletter has someofficialimprimaturor letterhead thatthecorrespondence might inferfromtheuseofofficial recipient ofthecorrespondence A similarquestioniswhetherthe contained inthecorrespondence. itself hasendorsedthestatements the readertobelievethatagency the useofagencyletterheadleads for anofficialtoconsideriswhether is notprohibited,theethicalquestion a particularuseofagencyletterhead guidance forapublicofficial.Evenif An agencypolicyisthefirstsourceof

If apublicofficialfindsitappropriate To avoidanymisunderstanding,many apply, forexample,placingthename Reform Act requirementsmayalso sent withpublicfunds.OtherPolitical correspondence wasnotproducedor on thecorrespondencethat permits suchuse),itiswisetonote political purpose(andtheagency to useofficialstationeryfora not thoseoftheagency. the correspondencearetheirownand specifically notethattheopinionsin them touseagencyletterheadwill elected officialswhoseagenciesallow thics: Perk Issues Understanding the BasicsofPublic Service Ethics:Perk Ethics forLocalOfficialscolumn“The For moreinformation,seetheEveryday appearing toexceedtheirauthority. consider whethertheyareexceedingor also encouragesits’ officialtocarefully background andexpertise;thecode purposes, orasanindicationof official agencybusiness,forinformation to theirtitleonlywhenconducting Santa Clara’s codeallowsitsofficials this issue.Forexample,theCityof Some agencycodesofethicsaddress identification totheirofficials. Itisalso most agenciesissueotherformsof badges serveinlightofthefactthat It isnotclearwhatpurposesuch officials. embarrassing incidentsinvolvingpublic basis ofanumberprosecutionsand issuance ofbadgeshasalsobeenthe impersonate apoliceofficer. forbids anyonefromusingabadgeto for anumberofreasons.Statelaw This practicehasfallenoutoffavor officials. to thoseusedbylawenforcement issue officials“badges”thatlooksimilar useful fromtimetotime.Someagencies other formofidentificationthatmaybe officials eitherbusinesscardsorsome Most agencieswillissuetheirelected Badges www.ca-ilg.org/mind). Ethics ofSpeakingOne’s Mind”(see outside oftheenvelope. of thecommitteeorcandidateon 137 138

The 19 For Personal Use Only. Not for Distribution. 20 institute for LocalGovernment the company. contributions togenerategoodwillfor hospitality andmakegiftscharitable common forbusinesspeopletoextend significantly fromtheprivatesector. Itis The normsinthepublicsectorcandiffer Giving ifts instead forpublicbusiness. governing bodymemberscouldbeused personal errandsforsupervisorsor The theoryisthatstaff timespenton resources orpublicagencystaff time. of publicresourcesextendstohuman The prohibitionagainstpersonaluse Staff badges). A BadIdea”(seewww.ca-ilg.org/ Prominent MembersoftheCommunity: column “BadgesforOfficeholdersand Everyday EthicsforLocalOfficials For moreinformation,seethe enforcement. the officialhassomerelationshiptolaw seeing thebadgemightmistakenlythink there isasignificantriskthatsomeone issue suchbadges.Mostimportantly, not clearwhatthelegalauthorityisto meals). private citizens(forexample,hosting from eitheranagencyoritsofficialsto and employees. an agencymakinggiftstoitsofficials resources. specifically prohibits“gifts”ofpublic However, California’s constitution T ime 139 This prohibitionappliesto 140 Italsoappliestogifts Charitable Donations agency policies. It canbeusefultoaddressthisissuein purpose justifyingtheexpenditure. The test is whether there is a valid public How does one know if a gesture is okay? contain parallelgiftrestrictions. consult theircharterstoseeifthey Therefore, chartercityofficialsmust limits ontheirabilitytodosomething. Charter citieslooktotheirchartersfor only possibleexceptionischartercities. it appliestoallpublicagencies. The Because thisbanisintheconstitution, 3. 2. 1. a charity: which apublicagencymaycontributeto Here aresomecircumstancesunder gifts tocharitableorganizations. appropriate forpublicagenciestomake official shouldnotassumeitis Scrooge-like asitseems,apublic giving bypublicagencies. funds hasimplicationsforcharitable The prohibitionagainstgiftsofpublic chooses notto. the publicagencycouldprovidebut agency; or secondary benefittothepublic public agencyprovidesitself; that complementsorenhancesonethe When thecharityprovidesaservice When thereisanidentifiable When thecharityprovidesaservice 142

143 As 141

For Personal Use Only. Not for Distribution. thics: Perk Issues Understanding the BasicsofPublic Service Ethics:Perk 21

expenditure maybelegalisjustthe the charity. As always,concludingthat associated withprovidingresourcesto about thebenefitstoagency should makefindingsintheminutes In allinstances,thegoverningbody but doesnot 3. Serviceagencycouldprovide 2. Demonstrablebenefit 1. Complementaryservice Public Agency Programs Examples ofWays toDocumentBenefits AssociatedwithCharitableSupport Relationship To

thics: Perk Issues Understanding the BasicsofPublic Service Ethics:Perk school programs Boys andGirlsClub’s after because ofdiseaseoroldage street treesagencyremoves return foragreementtoreplace Donation to placement programs Homeless shelter and associated treasury. all competingdemandsontheagency’s it isthebestuseofresourcesinlight something is“legal”doesnotmeanthat first stepoftheanalysis;justbecause Example T ree Foundationin for area. knowledge abouttreessuitable Foundation hasspecialized goals. agency’s housingelement homelessness isoneofthe of homelessness.Reducing Such programshelpendcycle effective manner. abiding youthinapositive,cost promote publicsafetyandlaw activities inarea.Programs need forlawenforcement Such programsreducethe trees. save moneyonreplacementof agency andthoseitserves T Other grantsreceivedbythe for residents. and enhancingpropertyvalues trees, therebysavingenergy populating areawithmore Organization sharesgoalof ree Foundationmeanthe Nature ofBenefit(s) 21 For Personal Use Only. Not for Distribution. Special districts have an additional One public agency’s practices in this burden when it comes to charitable regard came under scrutiny, even contributions. Not only must they though the agency put safeguards in demonstrate the contribution benefits the place to make sure the funds were district, but they must also demonstrate appropriately spent. The president of the that the expenditure falls within the local taxpayers’ association suggested specifically enumerated powers of that that using such monies for charitable particular type of district. contributions involves “a thin line” and is “almost like they’re buying votes.”145 Making donations to charitable causes Although the newspaper noted that the that are far away from the jurisdiction funds could not be used for campaign (for example, the victims of a hurricane) purposes, the newspaper observed also present special challenges. Because that such funds were used to boost of the distance, it is much tougher to officeholders’ public profiles. justify the contribution as creating benefits to the jurisdiction’s residents. For more information, see the following Because of this, such donations are more Everyday Ethics for Local Officials vulnerable to legal challenge.144 columns:

Also risky is the practice that may n “Raising Funds for Favorite Causes” exist in some jurisdictions where (see www.ca-ilg.org/fundraising) individual office holders can direct that n “Using Public Resources for a certain amount be given to a particular Charitable Purposes” charity (possibly as part of an annual (see www.ca-ilg.org/charity) officeholder expense budget). Any decision to give public money to private n “Commitment to Nonprofit Causes charities should be made by an agency and Public Service: Some Issues governing body, so the requisite findings to Ponder” (see www.ca-ilg.org/ on the benefit to the agency and the nonprofits) community it serves can be made. For Personal Use Only. Not for Distribution. For Personal Use Only.

22 institute for Local Government Understanding the Basics of Public Service Ethics: Perk Issues 23 Gifts to Public Officials

Basic Rules For the purpose of these requirements, the concept of a “gift” is broadly defined Receiving gifts can present a host of to include any payment or other benefit issues for public officials. Of course, received by a public official unless the making demands for gifts in exchange official provided something of equal or for official action violates state and greater value in return.151 A gift includes federal laws prohibiting bribery and a rebate or discount in the price of 146 extortion. Such demands also deprive anything of value unless the rebate or the public of its right to honest services discount is made in the regular course 147 from public officials. of business to members of the public Gifts that are not requested present other without regard to an individual’s public issues. State law puts an annual limit official status (such as frequent flier on the aggregate value of gifts a public miles).152 Thus, a “gift” includes items official can receive from a single source; people would commonly think of as a gifts over a certain amount also must be “present,” but also things like meals, reported on a public official’s Statement receptions, travel, hotel stays, and tickets of Economic Interests. to events. Generally speaking, public officials A public official may also have must disclose all gifts received of $50 or to disqualify him or herself from more.148 State law sets annual limits on participating in a decision involving the value of gifts an official may accept someone who has given the official gifts from a single source during a calendar that exceed the gift limit in the prior 12 year. In 2009–10, the limit is $420.149 months.153 (The gift limit is modified every two years to reflect changes in the Consumer Price Index; the Fair Political Practices Commission typically has current information on the gift limitation on its

website).150 Not for Distribution. For Personal Use Only.

Understanding the Basics of Public Service Ethics: Perk Issues 23 24 institute for LocalGovernment time isalsoapossibility. misconduct inoffice. constitutes willfulorcorrupt theory failuretodisclose for removalonthe jury toinitiateproceedings create abasisforgrand or herofficialduties the officialviolatedhis of officeunderthetheory create animmediateloss Such aconvictionmayalso following theconviction. elective officeforfouryears not beacandidatefor Political Reform misdemeanor underthe person convictedofa is amisdemeanor. of theserequirements A Criminal Sanctions Political knowing or willful violation Reform Act Penalties Act may 155 157 158 A or

Jail are punishablebyavarietyofsanctions, Reform Act. Violations oftheselaws requirements arepartofthePolitical These giftlimitandreporting State LawPenalties Penalties forMissteps 156 159

fees. reasonable attorney’s the litigation,including reimburse thecostsof the violatormayhaveto a memberofthepublic, If theactionisbroughtby the law. the officialfromviolating bring anactiontoprevent member ofthepubliccan Practices Commissionora attorneys, theFairPolitical District attorneys,somecity Civil Sanctions 161 160 are abletodemonstrate. violate thelawthatenforcemententities violation andthedegreeofintentto depending ontheseverityof in civilandcriminal Violations mayresult Administrative violation. fine ofupto$5,000per Political Reform penalty forviolationofthe The administrative administrative penalties. Commission mayimpose Fair PoliticalPractices penalties. Inaddition,the 162 Act isa

Fines 154

For Personal Use Only. Not for Distribution. thics: Perk Issues Understanding the BasicsofPublic Service Ethics:Perk 25

when someoneobtainsmoneythrough constitute extortion.Extortionoccurs exchange forofficialactioncouldalso A demandforgifts orotherbenefitsin Extortion fine. term ofupto20yearsanda$250,000 of wireand/ormailfraudincludesajail The maximumpenaltyforbeingguilty official action. of gratuitiestocoaxongoingfavorable defined asamoregeneralizedpattern fraud lawstoinclude“coaxing”— definition ofwrong-doingunderfederal at leastonecourthasexpandedthe motivated inpartbygifts. decisions toawardcontractswere prosecuted acitytreasurerwhose In oneinstance,federalauthorities personal interests. interests butinsteadbyhisorher not motivatedbyhisorherconstituents’ a publicofficialmakesdecisionthatis fiduciary. to thepublic—similaratrusteeor owes adutyofloyaltyandhonesty basic conceptisthatapublicofficial services” ofpublicofficials. the publichasrightto“honest Under federalwireandmailfraudlaws, Honest ServicesFraud Penalties Federal Law 168

164 That dutyisviolatedwhen

167

165

166 163 Infact, The thics: Perk Issues Understanding the BasicsofPublic Service Ethics:Perk improper purposes—onlythattheywere gifts werereceivedinexchangefor don’t needtoshowthatthemoney or on theirincometaxforms.Prosecutors of valuableitemsanddon’t reportthem officials receivemoneyandotherkinds Income taxproblemsarisewhen Income prison anda$250,000fine. extortion underfederallawis20yearsin commerce. The maximumpenaltyfor offense, theactmustaffect interstate right. threat ofharmorundercolorofficial (along withthecostsofprosecution). prison termandafineofupto$100,000 punishable byamaximumthree-year crime offilingafalsetaxreturnis prosecution.) associated withdefendingagainstthe (in additiontoone’s owncosts to payforthecostsofprosecution prosecutors canrequirethedefendant fine ofupto$100,000. possible five-yearprisontermanda Income taxevasioncarrieswithita personal purposes. includes useofanagencycreditcardfor for personalorotherpurposes. or otherwisemisusepublicresources income taxevasionwhentheyembezzle Officials havealsobeencharged with form. not reportedontheofficial’s incometax 169 To bechargeable asafederal T ax Violations 173 The sometimes-related 172 Inaddition, 170

171 This 174

25 For Personal Use Only. Not for Distribution. 26 institute for LocalGovernment n n n n n gift limit.Officialsneednotdisclose: There areanumberofexceptionstothe Exceptions toRules

Gifts ofapproximatelyequalvalue Gifts ofhospitalityoroccasional Gifts fromaspouse,domesticpartner, Gifts donated(unused)toanonprofit Gifts returned(unused)tothe another individual(otherthana exchanged betweenanofficialand the hostispresent. lodging inanindividual’s homewhen gift. person whoisthetruesourceof an agentorintermediaryforanother person, unlessheorsheisactingas spouse/domestic partnerofanysuch niece, nephew, orfirstcousinthe in-law, sister-in-law, aunt,uncle, brother, sister, parent-in-law, brother child, parent,grandparent,grandchild, claiming ataxdeduction. within thirtydaysofreceiptwithout organization oragovernmentagency receiving thegift. reimbursed withinthirtydaysof donor, orwherethedonorhasbeen similar occasions. lobbyist) onholidays,birthdays,or 177 175 179 178

176

n n n n n n n

Tickets tononprofit(501(c)(3)) Personalized plaquesandtrophies Campaign contributions. A bequestorinheritance. Informational materialprovidedto Passes orticketstoprovideadmission Free admission,refreshmentsand or political valued atlessthan$250. conferences orseminars. or discountstoinformational videotapes, orfreeadmission pamphlets, calendars,periodicals, duties, includingbooks,reports, assist intheperformanceofofficial not giventoanotherperson. or repeatedbasis)thatarenotused or otherbenefits(eitheronaone-time or accesstofacilities,goods,services 29–30. exempt. in connectionwiththespeecharealso lodging, andfoodprovideddirectly Transportation withinCalifornia, seminar, orprovidesasimilarservice. a speech,participatesinpanelor for aneventwhereofficialgives similar non-cashbenefitsprovided on page28. certain circumstances:seediscussion 186 See discussiononpages 185 fundraisersunder 183 182 180 181 187 184

For Personal Use Only. Not for Distribution. thics: Perk Issues Understanding the BasicsofPublic Service Ethics:Perk 27

(see www.ca-ilg.org/gifts). “Receiving GiftsasaPublicOfficial” Ethics forLocalOfficialscolumn For moreinformation,seetheEveryday INFORMATION RESOURCES FORFURTHER n n n

Food, shelter, orsimilarassistance Gifts providedtoagovernment Gifts provideddirectlytofamily relief program. received inconnectionwithadisaster agency’s obligationtoreport. 31–32 aboutspecifics,includingthe agency. official. intended tomakeagiftthepublic no factorsindicatingthatthedonor control overitsuse,andthereare the gift,orexercisesdiscretion gift, receivesapersonalbenefitfrom members unlesstheofficialuses 189 188

Seediscussiononpages 190 thics: Perk Issues Understanding the BasicsofPublic Service Ethics:Perk 1. receiving thegift: gift, theofficialmaywithin30daysof If anofficialreceivesunwanted gifts. the thought,theirpolicyistonotaccept explaining that,whiletheyappreciate they placeasignontheirofficedoors policy todiscouragegifts.Forexample, have adoptedandpublicizea“nogift” Some localofficialsandagencies Unwanted Gifts? What toDoabout 4. 3. 2. market valueofthegift. government agency;or days, toastate,localorfederal Code); 501(c)(3) oftheInternalRevenue exempt fromtaxationundersection deduction (thenonprofitmustbe without claimingthegiftasatax days, toanonprofitorganization Return thegiftunused; Reimburse thegift-giverforfair Donate thegift,unused,within30 Deliver thegiftunused,within30 191

27 For Personal Use Only. Not for Distribution. Special Issues Tickets to All Other Nonprofit Fundraisers Tickets to Fundraising Events The value of a ticket provided by all Given to Public Officials other types of nonprofits (for example, Tickets to 501(c)(3) Fundraisers 501(c)(4) and (c)(6) organizations) to a A 501(c)(3) nonprofit organization fundraiser is the non-donation portion of 196 hosting a fundraising event may directly the ticket under most circumstances. provide a single ticket each to one or However, that valuation method is more state or local public officials for limited to a single ticket provided the official’s own use.192 The ticket will directly by the nonprofit hosting the be considered to have no value and will fundraiser to the public official for his or 197 not be reportable, subject to certain her own use. limits as discussed in the next section. If the ticket is instead provided by a The host can only provide these zero third party, the gift must be valued at value tickets to a public official to the either the full ticket price available extent that the aggregate value of the to the general public or the value of non-deductible portion of all such tickets admission reflected in the actual cost to 198 received by the official from the host the third party. per calendar year does not exceed $420, Tickets to Political Fundraisers 193 the annual gift limit for 2009–10. A state, local or federal candidate, Thus, if a nonprofit hosts six events per political party or political action year, each with a ticket price of $500 committee hosting a political fundraiser per attendee with $400 donated to the may provide a single ticket per event to charity, then that nonprofit can only one or more state or local public officials provide free tickets to the same public for his or her own personal attendance official for four such events. without the ticket resulting in a gift to Admission to a charity fundraiser the official.199 provided by someone other than the host A ticket to a political fundraiser is considered a gift, at the full value of purchased by an individual or a 194 admission. company that is then provided by the The value of the gift is generally the full purchaser to a state or local public ticket price or the face value of the ticket official is a gift valued at the ticket’s full

for someone from the general public to face value.200 Not for Distribution. For Personal Use Only. attend, including the donation portion.195

2828 institute institute for for Local Local G Governmentovernment Understanding the Basics of Public Service Ethics: Perk Issues 29

prohibition. after-the-fact whenhelearnedof the by payingforthevalueofupgrade mayor couldnotescapetheprohibition those VIPs wasamayor. Further, the 20 VIPs travelingtogetherandoneof gave afirst-classupgradetogroupof the prohibitionappliedwhenanairline the publicwouldhave. travel asanyothergeneralmemberof official receivedthefreeordiscounted but theprohibitiondoesnotapplyif the person’s holdingofpublicoffice, discounted travelwasprovideddueto prohibition applieswhenthefreeor The Attorney Generalhasopinedthe public officersbutnottoemployees. applies tobothelectedandappointed interstate orforeign. The prohibition business travel,whetherintrastate, prohibition appliestoallpersonalor from transportationcompanies. accepting freeordiscountedtravel and appointedpublicofficialsfrom state lawstrictlyforbidselected provided bytransportationcompanies, Companies. Travel Passesfrom Transportation Basic Rules Gifts of T 204

ravel Expenses With respecttotravel 203 Forexample, 201 This thics: Perk Issues Understanding the BasicsofPublic Service Ethics:Perk 202 on thereceiptofgifts: not subjecttothemaximumlimitations the followingtypesoftravelexpensesare Transportation Companies. Travel Expensesfrom Non- Exceptions toRules Economic Interestsassuch. must bereportedonone’s Statementof generally subjecttothegiftrulesand from non-transportationcompaniesare lodging, mealsandentertainment) travel expenses(forexample,airfare, Transportation Companies. Travel Expensesfrom Non- n n n

within theUnitedStateswhichis: Country. Giving aSpeechElsewhere inthe Economic Interests. or incomeonone’s Statementof expenses arenotreportableasgifts a panelorseminar. one givesaspeechorparticipatesin connection withaneventatwhich within Californiadirectlyin Reimbursement fortransportation Giving aSpeechinCalifornia. Public Service. Own Public Agency asPartofOne’s Travel ExpensesPaidbyOne’s • • participates inapanelorseminar. at whichonegivesaspeechor public policy, and of state,nationalorinternational governmental purposeortoanissue Occurs inconnectionwithanevent Related toalegislativeor Reimbursementfortravel 205

206 These travel Receiptof Giftsof

207 29 For Personal Use Only. Not for Distribution. Note reimbursement for lodging or Statement of Economic Interests. For meals is limited to the day immediately example, the Fair Political Practices before, the day of, and the day Commission has ruled provision of immediately following the speech, meals and travel expenses in conjunction panel or seminar.208 Necessary lodging with an official’s service to a nonprofit and subsistence provided directly local agency association is reportable as in connection with the speech are income on one’s Statement of Economic not reportable on one’s Statement of Interests.213 Economic Interests.209 Transportation n Bona Fide Business Trips. costs outside California (that are related Reimbursement for travel that is to a legislative or governmental purpose) reasonably necessary in connection are reportable but not subject to limits.210 with a bona fide business purpose and n Other “Nominal” Benefits for that satisfies the criteria for deduction Giving a Speech. Free admission, as a business expense for income tax refreshments or similar non-cash purposes.214 For reporting purposes, nominal benefits one receives while these travel expenses are considered attending an event at which one a part of salary and are reported delivers a speech or participates in a as income on one’s Statement of panel or seminar is similarly exempt Economic Interests.215 during the event, regardless of Travel Passes from Transportation whether the event is inside or outside Companies. The prohibition against of California.211 These travel expenses accepting free travel from transportation are not reportable as gifts or income companies did not apply when: on one’s Statement of Economic Interests. n The elected official received a first-class airline upgrade because n Other Government-Related Trips. he was going on his honeymoon, Reimbursement for travel within the and the upgrade was given to all United States which is honeymooners.216 • Related to a public policy purpose; n An elected official received free airline and travel because he was the spouse of a • Is paid for by a governmental, flight attendant.217 educational or charitable n An elected official exchanged frequent- organization.212 Not for Distribution. For Personal Use Only. flier miles for an airline ticket because Note payment for these kinds of the earning of frequent-flier miles is expenses, while not considered gifts, done without regard to the person’s may be reportable as income on one’s status as an officeholder.218

30 institute for Local Government Understanding the Basics of Public Service Ethics: Perk Issues 31

3. 2. 1. following requirementsaremet: is consideredanagencygiftifallthe service thatbenefitsapublicofficial A paymentorprovisionofagood General ReportingRequirements Gifts toan the purposeofmakingagift toan made upofdonatedfundsraisedfor payment. donor, andtheagency’s useofthe amount, thenameandaddressof of thegift,datereceived, after payment,includingadescription FPPC form801withinthirtydays agency mustdisclosethegiftusing Agency ReportstheGift. agency business. payment mustbeusedforofficial Official AgencyBusiness. the payment. herself astheindividualwhowilluse payment maynotselecthimselfor and controlstheagency’s useofthe The agencyofficialwhodetermines select theindividualwhowilluseit. head, orhisherdesignee,must benefit toanofficial,theagency the paymentwillprovideapersonal official whomayusethepayment.If name, title,class,orotherwise,an but thedonormaynotdesignateby specify apurposeforthepayment use ofthepayment. The donormay determines andcontrolstheagency’s The agencyhead(ordesignee) Agency Controls UseofPayment.

222 Agency Ifagifttoanagencyis 220

221

The The 219 thics: Perk Issues Understanding the BasicsofPublic Service Ethics:Perk

who isthe“agencyhead”forpurposes The adoptedpolicyshoulddesignate monitor andreportgiftstotheagency. official policyastohowitwillaccept, made easieriftheagencyadoptsan Compliance withtheserulescanbe lodging andmeals. for travel,includingtransportation, cannot usegiftsprovidedtotheagency to giftlimitsandreportingrequirements Elected officialsandemployeessubject decisions solelybased onthepublic’s interests. with apublicofficial’s responsibilitytomake decision-makers andtheseeffortsmayinterfere an agencywillattempttocurryfavorwith The publicisawarethosewithbusiness before n used. Forexample: might beservedinhowtheticketsare identifiable, worthypublicpurposes turns ontheagency’s analysisofwhat use ofpublicresources,thequestion should usethetickets. As withany entities. The thresholdquestioniswho receives ticketsorpassesfromoutside Special rulesapplyifapublicagency Tickets Giventoan Agency of gifts. of determiningandcontrollingtheuse

The agencymightre-giftthepasses must bedisclosed. by theunderlyingdonorsoffunds agency, thenamesandamountsgiven group orothers.Forexample,the by givingthemtoacommunity

224 223

31 For Personal Use Only. Not for Distribution. Police Athletic League might be able If such use involves public officials to enhance its program supporting otherwise subject to the gift limit and physical activity, teamwork and reporting requirements, the tickets are sportsmanship if the tickets are to a not subject to the limit and reporting sporting event involving teams that requirements if: can help underscore these themes. n The agency decides who should use n If the agency has an “Employee of the ticket or pass consistent with its the Month” program designed to adopted policy; and recognize superior performance and n The gift giver plays no role in the good ethics, a worthwhile public decision on who should use the purpose might be to use the tickets to ticket.226 recognize such performance. No matter who uses the tickets, n If there are employees’ whose the agency must disclose publicly responsibilities require them to be at on its website (using FPPC Form the event, then having them attend 802, available at www.fppc.ca.gov/ satisfies a public purpose. Note that forms/802(0209).pdf), how it used the the responsibilities must be in writing. tickets (or the FPPC’s website, if the The key task is for the public agency to agency doesn’t have a website).227 identify underlying, worthwhile public purposes for the use of any gifts of tickets in a policy that is posted on the agency’s website.225 The Fair Political Practices Commission rules explain what the policy must contain. For Personal Use Only. Not for Distribution. For Personal Use Only.

32 institute for Local Government Understanding the Basics of Public Service Ethics: Perk Issues 33 Penalties RESOURCES FOR FURTHER INFORMATION Travel Passes from Transportation For more information, the Fair Political Companies. The penalty for violating Practices Commission has produced the prohibition against accepting travel “Limitations and Restrictions on Gifts, passes from transportation companies Honoraria, Travel and Loans” and is severe—an immediate forfeiture of “Travel Guide for California Officials office.228 and Candidates,” each of which is All Other Gift-Related Rules. The available online at www.fppc.ca.gov. Because of the complexity of these other restrictions are part of the Political requirements, officials should seek legal Reform Act. Violations of these laws advice when faced with all but the most are punishable by a variety of sanctions, basic gift, travel and honoraria issues. depending on the severity of the Two sources of such advice are the violation and the degree of intent to Fair Political Practices Commission and violate the law that enforcement entities agency counsel. are able to demonstrate.236

Political Reform Act Penalties

Criminal Sanctions Civil Sanctions A knowing or willful violation of these District attorneys, some city requirements is a misdemeanor.229 A attorneys, the Fair Political Practices person convicted of a misdemeanor Commission or a member of the under the Political Reform Act may public can bring an action to prevent not be a candidate for elective the official from violating the law.234 office for four years following the If the action is brought by a member 230 conviction. Such a conviction of the public, the violator may may also create an immediate have to reimburse the costs of the loss of office under the theory the litigation, including reasonable official violated his or her official attorney’s fees.235 duties 231 or create a basis for a grand jury to initiate proceedings

for removal on the theory failure to Not for Distribution. For Personal Use Only. disclose constitutes willful or corrupt misconduct in office.232 Jail time is also a possibility.233

Understanding the Basics of Public Service Ethics: Perk Issues 33 34 34 institute for LocalGovernment institute for LocalGovernment

For Personal Use Only. Not for Distribution. thics: Perk Issues Understanding the BasicsofPublic Service Ethics:Perk 35

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242 orcreateabasisfor 243 are abletodemonstrate. violate thelawthatenforcemententities the violationanddegreeofintentto sanctions, dependingontheseverityof these lawsarepunishablebyavarietyof Political Reform Act. Violations of These restrictionsarepartofthe Penalties Jail timeisalsoa 240

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245 246 35 For Personal Use Only. Not for Distribution. For Personal Use Only. Not for Distribution. For Personal Use Only.

36 institute for Local Government Understanding the Basics of Public Service Ethics: Perk Issues 37 Endnotes

1 Rushworth M. Kidder, How Good People Make or each day’s service rendered at the board’s Tough Choices (Simon and Schuster, 1995). request but not to exceed six days service/meetings 2 Id. per month); Cal. Water Code § 30507.1 (Contra Costa County Water District directors receive 3 Id. compensation not to exceed $100 per day for each 4 For example, the salary of council members of day’s attendance at board meetings or each day’s general law cities is controlled by Government service rendered at the board’s request but not to Code section 36516(a), which permits a city exceed 10 days service/ meetings per month); Cal. council to establish by ordinance a salary up to a Water Code § 21166 (irrigation district directors ceiling determined by the city’s population. The in districts of less than 500,000 acres receive 1) electorate may approve a higher salary. Cal. Gov’t compensation of up to $100 per day, not to exceed Code § 36516(b). A council member appointed or six days, 2) irrigation district directors in districts elected to fill a vacancy is compensated in the same that produce or deliver electricity receive one of the amount as his or her predecessor. A directly-elected following: up to $100 per day or $600 per month, mayor may receive additional compensation with with an annual cap of $15,000); Cal. Water Code the consent of the electorate or by ordinance of the § 22840 (irrigation districts of 500,000 acres or city council. Cal. Gov’t Code § 36516.1 more receive a salary to be fixed by ordinance and 5 County of San Diego v. Milotz, 46 Cal. 2d 761, 767, subject to referendum but cannot exceed the salary 300 P. 2d 1, 4 (1956) (action to recover fees from of a member of the Imperial County Board of court reporter for faulty work). Supervisors); Cal. Water Code § 71255 (municipal water district directors receive compensation not 6 Id. to exceed $100 per day for each day’s attendance 7 Cal. Gov’t Code §§ 53234 - 53235. See www.ca- at board meetings or each day’s service rendered ilg.org/ab1234compliance. at the board’s request but not to exceed six days 8 Cal. Const. art. XI, § 1(b). service/meetings per month). 9 See, e.g., Cal. Pub. Res. Code § 5784.15(a) and (d) 10 Cal. Pub. Res. Code § 5784.15(a) and (d). (park and recreation district board members may 11 Cal. Health & Safety Code § 6489. be compensated a maximum of $100 per day for 12 Cal. Harb. & Nav. Code § 6060. board meetings and $500 per month); Cal. Health & Safety Code § 6489 (sanitation district board 13 Cal. Pub. Util. Code § 11908.1. members may receive $100 per day for board 14 Cal. Water Code § 21166. meetings or service rendered at request of board, 15 Id. not to exceed six days per month); Cal. Water Code 16 § 20201 (water district officials—as defined—may, Cal. Water Code § 22840. by ordinance, provide for compensation of $100 17 Cal. Water Code § 20201. per day for each day’s attendance at board meetings 18 Cal. Water Code §§ 34740-41. or each day’s service rendered at the board’s 19 Cal. Water Code § 30507. request; not to exceed 10 days service/meetings per 20 month); Cal. Water Code §§ 34740-41 (California Cal. Water Code § 30507.1.

Water Districts must adopt bylaws fixing 21 Cal. Water Code § 71255. Not for Distribution. For Personal Use Only. compensation paid to officers, but may not exceed 22 Cal. Gov’t Code § 53232.1(a). $100 per day for attendance at board meetings and 23 Cal. Gov’t Code § 53232.1(b). for each day’s service at the request of the board); Cal. Water Code § 30507 (county water district 24 Cal. Gov’t Code § 53232.1(c). directors receive compensation not to exceed $100 25 Cal. Const. art. XI, § 5(b)(4). per day for each day’s attendance at board meetings

Understanding the Basics of Public Service Ethics: Perk Issues 37 26 See Cal. Gov’t Code § 36516. 48 See Cal. Gov’t Code § 89501(b)(2). 27 See Cal. Gov’t Code § 36516(a). 49 See Cal. Gov’t Code § 89501(b)(1). 28 See Cal. Gov’t Code § 36516(c). 50 2 Cal. Code Regs. § 18950.3. 29 See Cal. Gov’t Code § 36516.5 (providing a 51 See Mark Baldassare, Dean Bonner, Jennifer change of compensation does not apply during the Paluch, and Sonja Petek, The State of California same term but allowing adjustment when one or Voters, Public Policy Institute of California more members serving staggered terms begin new (September 2008). terms). 52 Cal. Gov’t Code § 53232.2. 30 See Cal. Gov’t Code § 36516.1. 53 Cal. Gov’t Code § 53232.2(b). 31 See Cal. Gov’t Code § 36516(d). 54 Cal. Gov’t Code § 53232.3(c). 32 These limits were enacted in 2006. They apply 55 Cal. Gov’t Code § 53232.3. to those whose terms commenced on and after 56 Cal. Gov’t Code § 53232.3(e). January 1, 2006. They do not apply to those 57 officials who were in office prior to January 1, Cal. Gov’t Code § 53232.2(c). 2006, so as to reduce those officials’ salaries prior 58 65 Cal. Op. Att’y Gen. 516, 522 (1982) (citing to the expiration of their terms. See 89 Cal. Op. Collins v. Riley, 24 Cal. 2d 912, 918, 152 P.2d Att’y Gen 135 (2006) (interpreting Cal. Gov’t Code 169 (1944) and determining that the expenses of a § 36516.5, providing a change of compensation handicapped council member met this standard); does not apply during the same term but allowing 61 Cal. Op. Att’y Gen. 303 (1978) (citing Gibson adjustment when one or more members serving v. Sacramento County, 37 Cal. App. 523, 174 P. staggered terms begin new terms). 935 (1918)); Madden v. Riley, 53 Cal. App. 2d 33 See Cal. Health & Safety Code § 34130.5(b). 814, 823, 128 P.2d 602, 607 (1942) (propriety of conference expenses for networking purposes). 34 Cal. Health & Safety Code § 34130.5(c). 59 Cal. Gov’t Code § 53232.3(e). 35 Cal. Gov’t Code § 36516(d). 60 Cal. Gov’t Code § 53232.2(f). 36 See Cal. Gov’t Code § 89501 (definition of 61 honorarium). Cal. Gov’t Code § 53232.2(g). 62 37 See Cal. Gov’t Code § 89502 (general prohibition). Cal. Gov’t Code § 53232.2(b). 63 38 See Cal. Gov’t Code § 89501(b)(2). Cal. Const. art. XI, § 5. County of Sonoma v. Commission on State Mandates, 84 Cal. App. 4th 39 See generally Cal. Gov’t Code §§ 91000 and 1264, 101 Cal. Rptr. 784 (2000). following. 64 See Cal. Gov’t Code § 53232.4. 40 See Cal. Gov’t Code § 91000(a). 65 See Cal. Gov’t Code § 8314. 41 See Cal. Gov’t Code § 91002. 66 See Cal. Penal Code § 424. 42 See Cal. Gov’t Code § 1770(h) (providing a 67 vacancy occurs upon conviction of a felony or of Cal. Penal Code § 504. any offense involving a violation of official duties). 68 Cal. Penal Code § 514. 43 Cal. Gov’t Code §§ 3060-3074 (providing for 69 See 26 U.S.C. § 7201. proceedings to be brought by the grand jury for 70 See 26 U.S.C. § 7203. removal from office). 71 See generally 18 U.S.C. §§ 1341 and following. 44 See Cal. Penal Code § 19 (providing misdemeanors 72 are punishable by imprisonment in county jail up to See generally 18 U.S.C. § 3571(b) and (d). six months, a fine not exceeding $2,000, or both). 73 See, for example, 18 U.S.C. §§ 641 (crime of For Personal Use Only. Not for Distribution. For Personal Use Only. 45 Cal. Gov’t Code §§ 83116, 91001(b), 91001.5, embezzlement against the United States), 648 91004, 91005. (misuse of public funds). 74 46 Cal. Gov’t Code § 91012. Cal. Gov’t Code § 53232.3(c). 75 47 See 2 Cal. Code Regs. §18932.5 (direct charitable Cal. Gov’t Code § 53232.3. contributions excluded from honorarium definition).

38 institute for Local Government Understanding the Basics of Public Service Ethics: Perk Issues 39 76 See Cal. Gov’t Code § 1223 (authorizing local 86 Id. officials to “contract” for an allowance or mileage 87 Cal. Gov’t Code § 53232.2(e). rate for automobile owned, rented or used in 88 See Cal. Gov’t Code § 3060 (providing grand performance of duties); Citizen Advocates, Inc. v. jury may investigate claims of willful or corrupt Board of Supervisors, 146 Cal. App. 3d 171, 194 misconduct in office, which can lead to removal Cal. Rptr. 61 (1983). from office).See also People v. Tice, 144 Cal. App. 77 See Albright v. City of South San Francisco, 44 2d 750, 310 P.2d 588 (1956) (phrase misconduct Cal. App. 3d 866, 118 Cal. Rptr. 901 (1975). in office is broad enough to include willful 78 Treas. Regs. § 1.62-2T(e), § 1.3401(a)-1T. malfeasance, misfeasance and nonfeasance). 79 See Cal. Gov’t Code § 50023 (legislative bodies 89 See Cal. Gov’t Code § 53065.5 (referring to of cities and counties may directly or through a Government Code section 56036(a) for the representative attend legislative bodies and meet definition of special district). with representatives of executive agencies, and 90 See Cal. Gov’t Code § 56036(a) (includes county present information; cost and expense incident service areas but does not include counties, the to such meetings are proper charges against the state, school or community college districts, local agency); § 53060.5 (cost of “attending” the special assessment districts, improvement districts, Legislature and presenting information are proper community facilities districts, cities and other charges against special districts; each district board specified forms of entities). member is allowed $.11 per mile for automobile 91 1993–94 Assembly Journal, page 5873 (March 24, travel and actual traveling expenses when traveling 1994 Letter from Assemblymember Tom Umberg). by public conveyance). 92 75 Cal. Op. Att’y Gen. 20 (1992) (finding paying 80 85 Cal. Op. Att’y Gen. 210 (2002). a spouse’s expenses to a conference violates both 81 See Cal. Const. art. XVI, § 6 (“nor shall it [the Government Code section 1090 and constitutional Legislature] have power to make any gift or prohibitions against gifts of public funds). See also authorize the making of any gift, of any public 65 Cal. Op. Att’y Gen. 517, 521 (1982) (finding money or thing of value to any individual, Government Code section 36514.5 does not municipal or other corporation whatever; . . .”). authorize reimbursement of the expenses of any See also Albright v. City of South San Francisco, person other than a member of the city council). 44 Cal. App. 3d 866, 870, 118 Cal. Rptr. 901, 902 See also Albright v. City of South San Francisco, (1975) (making the connection between council 44 Cal. App. 3d 866, 869-870, 118 Cal. Rptr. 901 member expenses and the prohibitions against a (1975) (unauthorized reimbursement is illegal gift). gift of public funds). Although the prohibition is 93 Cal. Gov’t Code § 53232.3(d). directed to the Legislature, the courts’ theory is 94 that, since general law cities, counties and special Cal. Gov’t Code § 53232.3(d). districts derive much of their authority from the 95 See Cal. Gov’t Code § 54952.2. Legislature, such local agencies also do not have 96 See Cal. Gov’t Code § 53232.3. the power to make gifts of public funds. 97 Cal. Gov’t Code § 53232.3(d). 82 There is an additional prohibition against granting 98 extra compensation for work already performed by See Cal. Gov’t Code § 995.8. See also Los Angeles public officers, public employers or contractors. Police Protective League v. City of Los Angeles, See Cal. Const. art. IV, § 17; art. XI, § 10. 27 Cal. App. 4th 168, 32 Cal. Rptr. 2d 574 (1994) (finding city was not required to provide the 83 85 Cal. Op. Att’y Gen. 210 (2002). defense of police officers accused of vandalism and 84 See Roseville v. Tulley, 55 Cal. App. 2d 601, 607- conspiracy to commit vandalism).

08, 131 P.2d 395, 399-400 (1943) (court deferred 99

See Cal. Gov’t Code § 995.2 (public agency may Not for Distribution. For Personal Use Only. to city’s conclusion that such attendance would refuse defense of civil action if, among other improve city administration). See also Madden reasons, the agency finds the official acted because v. Riley, 53 Cal. App. 2d 814, 823, 128 P.2d 602, of “actual fraud, corruption or actual malice.”) 607 (1942) (propriety of conference expenses for See also Cal. Gov’t Code § 822.2 (immunity from networking purposes). liability for misrepresentation does not apply in 85 Cal. Gov’t Code § 53232.2(d). instances of corruption).

Understanding the Basics of Public Service Ethics: Perk Issues 39 100 See Cal. Gov’t Code § 818. 111 Vargas v. City of Salinas, 46 Cal. 4th 1, 35-37, 101 California Rules of Professional Conduct for 92 Cal. Rptr. 3d 286, (2009), see also Choice- Lawyers, Rule 3-600(A); Ward v. Superior Court, in-Education League v. Los Angeles Unified 70 Cal. App. 3d 23, 138 Cal. Rptr. 532 (1977) School Dist., 17 Cal. App. 4th 415, 429-431, 21 (county counsel’s client is county, not assessor in Cal. Rptr. 3d 303 (1993) (school district did not his individual capacity). illegally expend public funds by holding and broadcasting school board meeting at which the 102 See Cal. Penal Code § 424; Cal. Gov’t Code § board took position opposing a statewide ballot 8314. initiative). League of Women Voters of California 103 Cal. Gov’t Code § 8314(b)(1). v. Countywide Criminal Justice Coordination 104 Cal. Gov’t Code § 8314(b)(4). Committee, 203 Cal. App. 3d 529, 560, 250 Cal. 105 Cal. Gov’t Code § 8314(c)(1). Rptr. 3d 161 (1988). See also Cal. Elect. Code § 9282. 106 28 Cal. Gov’t Code § 8314(b)(1). 112 Cal. Gov’t Code § 54964(b)(3). 107 Cal. Penal Code § 424; People v. Battin, 77 113 Cal. App. 3d 635, 143 Cal. Rptr. 731 (1978) Vargas, 46 Cal. 4th at 40, citing Stanson v. Mott, (successful criminal prosecution of county 17 Cal. 3d 206, 130 Cal. Rptr. 697 (1976). supervisor for misusing public funds for improper 114 Cal. Elect. Code § 9212(a). political purposes), superseded on other grounds 115 Vargas, 46 Cal. 4th at 40. by People v. Conner, 34 Cal. 3d 141, 193 Cal. 116 Id. Rptr. 148 (1983). See also Cal. Gov’t Code § 117 8314 (“‘Campaign activity’ means an activity Schroeder v. Irvine City Council, 97 Cal. App. 4th constituting a contribution as defined in Section 174, 118 Cal. Rptr. 2d 330 (2002). 82015 or an expenditure as defined in Section 118 Yes on Measure A v. City of Lake Forest, 60 Cal. 82025. ‘Campaign activity’ does not include the App. 4th 620, 625-626, 70 Cal. Rptr. 2d 517 incidental and minimal use of public resources, (1997). such as equipment or office space, for campaign 119 League of Women Voters of California v. purposes, including the referral of unsolicited Countywide Criminal Justice Coordination political mail, telephone calls and visitors to private Committee, 203 Cal. App. 3d 529, 250 Cal. Rptr. political entities.”). 161 (1988); Santa Barbara County Coalition 108 Cal. Educ. Code § 7054 (school or community Against Automobile Subsidies v. Santa Barbara college funds, services, supplies or equipment County Association of Governments, 167 Cal. App. may not be used to support a ballot measure or a 4th 1229, 84 Cal. Rptr. 3d 714 (2008). See also Cal. candidate). Elect. Code § 9140 [county board of supervisors] 109 See Cal. Const. art. XVI, § 6 (“nor shall it [the & § 9222 [legislative body of municipality]. Legislature] have power to make any gift or 120 Cal. Gov’t Code §§ 82013(b), 84200; 2 Cal. Code authorize the making of any gift, of any public Regs., § 18225(b)(2). See also Yes on Measure A v. money or thing of value to any individual, City of Lake Forest, 60 Cal. App. 4th at 625-626. municipal or other corporation whatever; …”). 121 2 Cal. Code Regs. § 18420.1(a). See also Albright v. City of South San Francisco, 122 2 Cal. Code Regs. § 18420.1(c). 44 Cal. App. 3d 866, 870, 118 Cal. Rptr. 901, 902 123 (1975) (making the connection between council See Cal. Penal Code § 424; Cal. Gov’t Code § member expenses and the prohibitions against a 8314. gift of public funds). Although the prohibition is 124 Cal. Penal Code § 424. directed to the Legislature, the courts’ theory is 125 Cal. Gov’t Code § 8314(c)(1).

that, since general law cities, counties and special Not for Distribution. For Personal Use Only. 126 districts derive much of their authority from the Cal. Penal Code § 504. Legislature, such local agencies also do not have 127 Cal. Penal Code § 514. the power to make gifts of public funds. 128 See Cal. Gov’t Code § 89001. 110 85 Cal. Op. Att’y Gen. 210 (2002). 129 See 2 Cal. Code Regs. § 18901.

40 institute for Local Government Understanding the Basics of Public Service Ethics: Perk Issues 41 130 See Cal. Gov’t Code § 91000(a). 140 There is an additional prohibition against granting 131 Cal. Gov’t Code § 83116. extra compensation for work already performed by public officers, public employers or contractors. 132 Cal. Gov’t Code § 91012. See Cal. Const. art. IV, § 17; art. XI, § 10. 133 People v. Bishop, 2000 WL 520878 (2000) 141 City and County of San Francisco v. Patterson, (unpublished opinion). Another element of the 202 Cal. App. 3d 95, 103-04, 248 Cal. Rptr. prosecution was the use of county resources for 290, 295 (1988). See also McQuillin, Municipal campaign purposes. Corporations, § 39.19 (3d ed.) (all expenditures 134 The court cited People v. Dillon, 199 Cal. 1, 248 must be for a public purpose). P.2d 30 (1926), a case in which convictions were 142 See Roseville v. Tulley, 55 Cal. App. 2d 601, upheld on facts demonstrating that the city was 608-09, 131 P. 2d 395, 400 (1942) (finding that reimbursed for money improperly disbursed by the judicial second-guessing of a city’s determination defendant. While Dillon did not expressly reject a of what constitutes a public purpose would be an reimbursement defense to the charge of violating unwarranted intrusion into the legislative function section 424, the court said the decision cannot be of a city council). reconciled with such a defense. 143 See generally McQuillin, Municipal Corporations, 135 See, for example, San Diego County Water § 39. 25 (3d ed.) (“Appropriations to charitable Authority Administrative Code, § 1.08.10(d) (“The or nonprofit associations, without consideration official seal and any emblem, symbol, logo or [something in return], cannot be made.”) other distinctive mark of the Authority shall be 144 used solely for Authority purposes and programs, See 64 Cal. Op. Att’y Gen. 478 (1981) (noting that unless otherwise authorized by the Board. Private, grants to other agencies must serve the interests or commercial or non-commercial use of the official purposes of the residents of the granting agency). seal, mark, name or identity of the Authority is 145 “Here’s $50,000 – Spend it Well,” Sacramento Bee, prohibited.”). The code is available online at: www. November 23, 2003, page B1, B6. sdcwa.org/about/who-admincode.phtml. 146 Cal. Penal Code §§ 68(a), 518; 18 U.S.C. §§ 201, 136 See, for example, City of Lawndale, Resolution 871 and following. 2090 (1981). 147 Under federal wire and mail fraud laws, the public 137 See Cal. Gov’t Code § 84305. has the right to the “honest services” of public 138 Cal. Penal Code § 538d (b)(2) (making it a officials. 18 U.S.C. §§ 1341 (mail fraud), 1343 misdemeanor to use a badge that would deceive an (wire fraud), 1346 (honest services). The basic ordinary reasonable person into thinking the person concept is that a public official owes a duty of is a law enforcement official).See also 90 Cal. Op. loyalty and honesty to the public—similar to a Att’y Gen. 57 (2007). trustee or fiduciary. U.S. v. Sawyer, 239 F.3d 31, 39 (1st Cir. 2001) (finding sufficient evidence of 139 See Cal. Const. art. XVI, § 6 (“nor shall it [the guilt apart from proof of violation of state law). Legislature] have power to make any gift or That duty is violated when a public official makes authorize the making of any gift, of any public a decision that is not motivated by his or her money or thing of value to any individuals, constituents’ interests but instead by his or her municipal or other corporation whatever;…”). personal interests. U.S. v. Lopez-Lukis, 102 F.3d See also Albright v. City of South San Francisco, 1164, 1169 (11th Cir. 1997) (noting that effort to 44 Cal. App. 3d 866, 870, 118 Cal. Rptr. 901, 902 improperly control composition of decision-making (1975) (making the connection between council body constituted an effort to deprive public of member expenses and the prohibitions against a honest services); McNally v. U.S., 483 U.S. 350 at gift of public funds). Although the prohibition is 362-63 (Justice Stevens, dissenting).

directed to the Legislature, the courts’ theory is Not for Distribution. For Personal Use Only. 148 that, since general law cities, counties and special Cal. Gov’t Code § 87207(a)(1). districts derive much of their authority from the 149 2 Cal. Code Regs. § 18940.2; Cal. Gov’t Code § Legislature, such local agencies also do not have 89503. the power to make gifts of public funds. 150 Cal. Gov’t Code § 89503(f). 151 Cal. Gov’t Code § 82028(a).

Understanding the Basics of Public Service Ethics: Perk Issues 41 152 Id. 2004 (available online at www.usdoj.gov/tax/ 153 2 Cal. Code Regs. § 18703.4. usaopress/2004/txdv0410-25-04ness.pdf). 172 154 See generally Cal. Gov’t Code §§ 91000 and 26 U.S.C. § 7201. following. 173 Id. 155 See Cal. Gov’t Code § 91000(a). 174 26 U.S.C. § 7206(1). 156 See Cal. Gov’t Code § 91002. 175 2 Cal. Code Regs. § 18943(a)(1). 157 See Cal. Gov’t Code § 1770(h) (providing a 176 2 Cal. Code Regs. § 18943(a)(2) and (3). vacancy occurs upon conviction of a felony or of 177 Cal. Gov’t Code § 82028(b)(3); 2 Cal. Code Regs. any offense involving a violation of official duties). § 18942(a)(3). 158 Cal. Gov’t Code §§ 3060-3074 (providing for 178 2 Cal. Code Regs. § 18942(a)(7). proceedings to be brought by the grand jury for 179 2 Cal. Code Regs. § 18942(a)(8). removal from office). 180 Cal. Gov’t Code § 82028(b)(1). 159 See Cal. Penal Code § 19 (providing misdemeanors 181 are punishable by imprisonment in county jail up to Cal. Gov’t Code § 82028(b)(5). six months, a fine not exceeding $2,000, or both). 182 2 Cal. Code Regs. § 18942(a)(4). 160 Cal. Gov’t Code §§ 83116, 91001(b), 91001.5, 183 Cal. Gov’t Code § 82028(b)(6). 91004, 91005. 184 2 Cal. Code Regs. § 18946.4(b). 161 Cal. Gov’t Code § 91012. 185 2 Cal. Code Regs. § 18946.4(c). 162 Cal. Gov’t Code § 83116. 186 2 Cal. Code Regs. § 18942(a)(11). 163 Now 18 U.S.C. §§ 1341 (mail fraud), 1343 (wire 187 2 Cal. Code Regs. § 18946.1 (a pass or ticket has fraud), 1346 (honest services). no value unless it is ultimately used or transferred 164 U.S. v. Sawyer, 239 F.3d 31, 39 (1st Cir. 2001) to another person). (finding sufficient evidence of guilt apart from 188 2 Cal. Code Regs. § 18944 (Also noting that a gift proof of violation of state law). to a family member is not a gift to an official if the 165 U.S. v. Lopez-Lukis, 102 F.3d 1164, 1169 (11th official can show in specified ways that there was Cir. 1997) (noting that effort to improperly control no donor intent to make a gift to the official). composition of decision-making body constituted 189 2 Cal. Code Regs. §§ 18944.2 (general); 18944.1 an effort to deprive public of honest services); (passes or tickets). McNally v. U.S., 483 U.S. 350 at 362-63 (Justice 190 2 Cal. Code Regs. § 18942(a)(10). Stevens, dissenting). 191 Cal. Gov’t Code § 82028(b)(2); 2 Cal. Code Regs. 166 U.S. v. Kemp, 379 F.Supp. 2d 690, 697-98 (E.D. § 18943. Penn. 2005). 192 2 Cal. Code Regs. § 18946.4. 167 U.S. v. Woodward, 149 F.3d 46, 55 (1st Cir. 1998) (company’s ongoing pattern of gifts and 193 2 Cal. Code Regs. § 18946.4(b). entertainment to chair of key legislative committee 194 See Tickets to Nonprofit and Political Fundraisers: constituted intent to deprive citizens of chair’s FPPC Regulation 18946.4 as Amended (October honest services), citing U.S. v. Sawyer, 85 F.3d 716, 2008). 730 (1st Cir. 1996). 195 2 Cal. Code Regs. § 18946.1. 168 18 U.S.C. §1341 (“. . . shall be fined under this title 196 2 Cal. Code Regs. § 18946.4(a). or imprisoned not more than 20 years, or both.”). 197 18 U.S.C. § 1343 (“shall be fined under this title or 2 Cal. Code Regs. § 18946.4. imprisoned not more than 20 years, or both.”). 198 See Tickets to Nonprofit and Political Fundraisers: For Personal Use Only. Not for Distribution. For Personal Use Only. 169 18 U.S.C. § 1951. FPPC Regulation 18946.4 as Amended (October 2008). 170 18 U.S.C. § 1951(a). 199 2 Cal. Code Regs. § 18946.4(c). 171 Press Release, U.S. Attorney’s Office, Eastern 200 District of California, “Former Northridge Water See Tickets to Nonprofit and Political Fundraisers: Board Assistant General Manager Pleads Guilty FPPC Regulation 18946.4 as Amended (October To Tax Evasion And Mail Fraud,” October 25, 2008).

42 institute for Local Government Understanding the Basics of Public Service Ethics: Perk Issues 43 201 See Cal. Const. art. XII, § 7 (“A transportation 230 See Cal. Gov’t Code § 91002. company may not grant free passes or discounts to 231 See Cal. Gov’t Code § 1770(h) (providing a anyone holding an office in this state . . .”). vacancy occurs upon conviction of a felony or of 202 See 3 Cal. Op. Att’y Gen. 318 (1944). any offense involving a violation of official duties). 203 74 Cal. Op. Att’y Gen. 26 (1991). 232 Cal. Gov’t Code §§ 3060-3074 (providing for 204 76 Cal. Op. Att’y Gen. 1 (1993). proceedings to be brought by the grand jury for removal from office). 205 See Cal. Gov’t Code § 89506(d)(2); 2 Cal. Code 233 Regs. § 18950.1(d). See Cal. Penal Code § 19 (providing misdemeanors are punishable by imprisonment in county jail up to 206 2 Cal. Code Regs. § 18950.3. six months, a fine not exceeding $2,000, or both). 207 See Cal. Gov’t Code § 89506(a). 234 Cal. Gov’t Code §§ 83116, 91001(b), 91001.5, 208 See Cal. Gov’t Code § 89506(a)(1). 91004, 91005. 209 See 2 Cal. Code Regs. § 18950.3. 235 Cal. Gov’t Code § 91012. 210 2 Cal. Code Regs. § 18950.1. 236 See generally Cal. Gov’t Code §§ 91000 and 211 2 Cal. Code Regs. § 18950.3. following. 212 See Cal. Gov’t Code §§ 89506(a)(2), (d)(2), 237 See Cal. Gov't Code §§ 89510 et seq. Campaign 82030(b)(2); 2 Cal. Code Regs. § 18950.1(b), (d). funds include "any contributions, cash, cash 213 See Benninghoven Advice Letter, No. I-98-177 equivalents, and other assets received or possessed" (Nov. 12, 1998). by a campaign committee. Cal. Gov't Code § 89511(b)(1). 214 See Cal. Gov’t Code § 89506(d)(3). 238 Cal. Gov't Code § 89512 (an expenditure of 215 Limitations and Restrictions on Gifts, Honoraria, campaign funds must be reasonably related to a Travel and Loans: A Fact Sheet for Local Elected legislative or governmental purpose, unless the Officers and Candidates for Local Elective Offices, expenditure confers a substantial personal benefit, Local Officials Specified in Government Code in which case such expenditures must be directly Section 87200, Judicial Candidates, Designated related to a political, legislative or governmental Employees of Local Government Agencies, Fair purpose). "Substantial personal benefit" means Political Practices Commission (2007). a campaign expenditure which results in a direct 216 74 Cal. Op. Att’y Gen. 26 (1991). personal benefit with a value of more than $200. 217 67 Cal. Op. Att’y Gen. 81 (1984). Cal. Gov't Code § 89511(b)(3). 239 218 80 Cal. Op. Att’y Gen. 146 (1997). See generally Cal. Gov’t Code §§ 91000 and following. 219 2 Cal. Code Regs. § 18944.2(c). 240 See Cal. Gov’t Code § 91000(a). 220 2 Cal. Code Regs. § 18944.2(c)(1). 241 See Cal. Gov’t Code § 91002. 221 2 Cal. Code Regs. § 18944.2 (c)(2). 242 See Cal. Gov’t Code § 1770(h) (providing a 222 See FPPC Form 801 Questions and Answers at vacancy occurs upon conviction of a felony or of www.fppc.ca.gov/forms/FS18944.2.pdf. any offense involving a violation of official duties). 223 2 Cal. Code Regs. § 18944.2(c)(3). 243 Cal. Gov’t Code §§ 3060-3074 (providing for 224 2 Cal. Code Regs. § 18944.2(d). proceedings to be brought by the grand jury for 225 2 Cal. Code Regs. § 18944.1(c). removal from office). 226 2 Cal. Code Regs. § 18944.1(b)(2). 244 See Cal. Penal Code § 19 (providing misdemeanors 227 2 Cal. Code Regs. § 18944.1(d). are punishable by imprisonment in county jail up to six months, a fine not exceeding $2,000, or both). Not for Distribution. For Personal Use Only. 228 See Cal. Const. art. XII, § 7 (“…acceptance of a 245 pass or discount by a public officer…shall work a Cal. Gov’t Code §§ 83116, 91001(b), 91001.5, forfeiture of that office…”). 91004, 91005. 246 229 See Cal. Gov’t Code § 91000(a). Cal. Gov’t Code § 91012.

Understanding the Basics of Public Service Ethics: Perk Issues 43 References for Further Information General Websites Fair Political Practices Commission www.fppc.ca.gov/ Institute for Local Government www.ca-ilg.org Office of the Attorney General http://ag.ca.gov/ For Personal Use Only. Not for Distribution. For Personal Use Only.

44 institute for Local Government Understanding the Basics of Public Service Ethics: Perk Issues 45 Publications Open Government League of California Cities Open and Public IV: A Guide to the Ralph M. Brown Act (2007) (www.cacities.org/openandpublic). The People’s Business: A Guide to the California Public Records Act (2008) (www.cacities.org/PRAGuide) Office of the Attorney General The Brown Act: Open Meetings for Local Legislative Bodies, 2003. Available on the California Attorney General’s website at http://ag.ca.gov/ (select “Programs A-Z,” click on “Publications,” then click on “Open Meetings”) or by going to. http://ag.ca.gov/publications/brownAct2003.pdf. Summary of the California Public Records Act, 2004. Available on the California Attorney General’s website at http://ag.ca.gov/ (select “Programs A-Z,” click on “Publications,” then click on “Public Records”) or go to http://ag.ca.gov/publications/summary_public_records_act.pdf.

General Institute for Local Government Understanding the Basics of Public Service Ethics: Promoting Personal and Organizational Ethics (2009). Explains the role that values and public perception play in public service ethics (www.ca-ilg.org/ppoe). Ethics Law Compliance Best Practices (2005). Enables agencies to engage in a self-assessment of ethics law compliance practices (www.ca-ilg.org bestpractices). Walking the Line: What to Do if You Suspect an Ethics Problem (2005). Answers a frequently-posed question with an eight-step process (www.ca-ilg.org/whattodo). Ethics Culture Assessment (2006). Enables local agencies and their leaders to assess and reflect on the agency’s ethics culture Not for Distribution. For Personal Use Only. (www.ca-ilg.org/culturechecks).

Understanding the Basics of Public Service Ethics: Perk Issues 45 Index A D Agency Gift...... 31 Disaster Relief Program...... 27 Agency Vehicles...... 12 Disclosure...... 9, 13 Attorney General...... 12-13, 29, 44-45 Disqualification...... 17 Attorney-Client Confidences...... 14 Donations to Charitable...... 8, 20, 22 Causes...... 22 B Badges...... 19-20 E Books...... 26 Elected Mayors...... 6 Bribery...... 1, 23 Embezzlement...... 10-11, 17, 38 Business Trips...... 13, 30 Exceptions...... 6, 8, 15-17, 26, 29 Buying Meals...... 10, 12 Expense Reimbursement Policies....9-10 Extortion...... 23, 25 C Campaign Contributions...... 1, 26 F Campaign Funds...... 35, 43 Falsifying Expense Reports...... 10 Campaigns...... 15 Family...... 8, 27, 42 Charitable Contributions....12, 20, 22, 38 Frequent Flier Miles...... 23 Charter Cities...... 5, 10, 20 Codes of Ethics...... 19 G Community Colleges...... 15 General Law Cities...... 5, 37, 39-41 Compensation...... 2-3, 5-6, 37-39, 41 Gift Limit...... 23-24, 26, 28, 32 Cities...... 5, 10, 20, 37, 39-41, 45, 50 Gifts...... 1, 8, 12, 15, 20, 23, Community Development 25-27, 29-33, 39-43 Commission...... 6 Gifts of Public Funds...... 20, 39-41 Counties...... 3, 39-41, 50 Gifts of Public Resources...... 12, 20 Conference Attendance...... 5, 13 Grand Jury...... 7, 24, 33, 35, Conferences...... 13, 26 38-39, 42-43 Contracts...... 25

County Boards of Supervisors...... 3 Not for Distribution. For Personal Use Only. Credit Cards...... 18

46 institute for Local Government Understanding the Basics of Public Service Ethics: Perk Issues 47 H S Honest Services Fraud...... 25 Salaries...... 3, 38 Honoraria...... 6, 8, 33, 43 Schools...... 15 Hotel Stays...... 23 Special Districts...... 3, 4, 13, 22, 39-41 Speeches...... 8 I Statement of Economic Interests...... 23, Income Tax Evasion...... 11, 25 29-30 Inheritance...... 26 Stationery...... 15, 18-19 Internet...... 11 Irrigation Districts...... 4, 37 T Tickets Given to an Agency...... 31 L Tickets to Fundraising Events...... 28 Letterhead...... 17-19 Travel...... 9, 13-14, 18, 23, 29-31, 33, 39, 43 Lobbying Expenses...... 12 Travel Expenses...... 29-30 Lodging...... 8-9, 13-14, 26, 29-31 Travel Passes from Transportation Companies...... 29-30, 33 M Trophies...... 26 Mail Fraud...... 11, 25, 41-42 Mass Mailings at Public Expense...... 17 U Meals...... 9-10, 12, 14, 20, 23, 29-31 Unwanted Gifts...... 27 Use of Letterhead, Titles, and Logos...18 P Use of Public Resources...... 2, 10, Personal Errands...... 20 13-18, 20, 31, 40 Personal Use of Public Resources...... 10, 13-15, 17, 20 V Plaques...... 26 Vehicle Allowances...... 12 Political Reform Act...... 7-8, 17, 19, 24, 33, 35 W Political Use of Public Resources...... 18 Water Districts...... 4, 37 Public Records...... 9-10, 45 Wire Fraud...... 41-42

R For Personal Use Only. Not for Distribution. For Personal Use Only. Receptions...... 23 Restitution...... 10

Understanding the Basics of Public Service Ethics: Perk Issues 47 For Personal Use Only. Not for Distribution. For Personal Use Only.

48 institute for Local Government Understanding the Basics of Public Service Ethics: Perk Issues 49 Understanding the Basics of Public Service Ethics: Perk Issues 49 The Institute for Local Government is the nonprofit research affiliate of the League of California Cities and the California State Association of Counties. Its mission is to promote good government at the local level.

The Institute’s current program areas include:

• Climate Change • Land Use and Environment • Collaborative Governance Initiative • Local Government 101 • Intergovernmental Conflict Resolution • Public Service Ethics • Healthy Communities

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