200 S. Anaheim Blvd.
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Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
OFFICE OF THE CITY ATTORNEY
DATE: NOVEMBER 13, 2024
FROM: OFFICE OF THE CITY ATTORNEY
SUBJECT: ORDINANCE ADDING A PROHIBITION AGAINST GIFTS
FROM RESTRICTED SOURCES
ATTACHMENT (Y/N): YES ITEM # 16
GOVERNMENT CODE §84308 APPLIES: NO
REQUESTED ACTION:
That the City Council, by Ordinance, add Section 1.11.085 to the Anaheim Municipal Code prohibiting gifts from restricted sources over fifty dollars ($50).
DISCUSSION:
On October 8, 2024, the City Council directed the City Attorney’s Office to bring back for the Council’s consideration an ordinance that would strengthen the City’s laws with respect to the acceptance of gifts from restricted sources to ensure that Anaheim’s City officials that file Statements of Economic Interest cannot accept gifts above fifty dollars ($50) from these sources. As Councilmember Leon, working with Councilmember Diaz, had agendized this issue, the Councilmembers worked with staff to consider best practices and other agencies’ restrictions, to draft an ordinance tailored to address the City’s needs.
Anaheim has been a leader in implementing reforms to address ethics, accountability and disclosure. This new ordinance would further that goal and help ensure that gifts from certain restricted sources are limited to a level sufficiently low enough so that the potential for any undue influence is removed from City officials, and so that they can conduct their duties without the impetus to accept gifts from these sources above a level that is considered de minimis.
The current annual gift limit that exists in the state Political Reform Act and its regulations, and which is adjusted every odd numbered year based on changes in the Consumer Price Index, is $590 per year from a single source. Many may not consider this limit sufficiently low enough to avoid the appearance of undue influence on a City official from certain sources that may have the most influence; namely, lobbyists or those generally doing or conducting business before the City. Under this proposed ordinance, city officials may still accept gifts of up to $590 from other sources that are not defined to be restricted by the ordinance. Additionally, city officials are still free to utilize the various exceptions provided for under State law, including tickets distributed under the City’s ticket policy, that would prevent the need for a gift to be reported.
Gift Restriction Ordinance
November 13, 2024
The City’s existing Municipal Code does not currently prohibit or limit gifts from restricted sources in any form, and only the State’s $590 limit applies to reportable gifts made to an official that is required to file a Statement of Economic Interest (Form 700).
The new ordinance would create a lower gift limit from restricted sources, define specifically what restricted sources are subject to this lower limit, and create mechanisms for effective enforcement of the prohibition. Therefore, a new ordinance is being proposed to address these issues.
1. The Addition of Section 1.11.085 (Gift Restrictions).
This new Section is being proposed, as detailed earlier in this report, to prohibit gifts to City officials that are above a certain limit from restricted sources. If adopted by the Council, it would, among other things:
a. Prohibit the solicitation of gifts from restricted sources; b. Prohibit the acceptance and making of gifts of over fifty dollars ($50) per calendar year from a single restricted source; c. Provide a detailed definition of restricted source that includes persons who are lobbyists, or those required to be lobbyists, those seeking or having a contract before the City, those attempting to influence or advocate the City that results in a financial effect on the person, and those being a party to a license, permit or other entitlement for use; and
d. Provide the ability to cure a potential violation within 30 days of the acceptance of an otherwise prohibited gift and various forms of enforcement for knowing and intentional violations which are not cured.
IMPACT ON BUDGET:
The ordinance itself will have no budgetary impact. Costs associated with increased personnel needed to enact the ordinance will be absorbed in the impacted departments’ budgets.
Respectfully submitted, Respectfully submitted,
Robert Fabela Artin Berjikly
City Attorney Assistant City Attorney
City Ethics Officer
Attachment:
1. Ordinance adding Section 1.11.085 to the Anaheim Municipal Code