AB 1234 ETHICS TRAINING
City of Bellflower
By: Justin A. Tamayo, Assistant City Attorney
February 10, 2025
Today’s Agenda
•Introduction: Games, Scared Straight
and Goals
•Transparency Laws -Brown Act
•Public Records Act
•Personal Advantages and Perks of
Office
•Personal Financial Gain
•General Ethics Principles
•New in 2025 -Throughout
2 Part I - Introduction
•In this part, we will
cover:
•Scared Straight
•Game
•Goals
AB 1234 adopted in
2006 in response to
City of Bell scandal
5 “I’m Not Like Those Officials”
•Know the rules to make sure your name does
not show up in the FPPC’s “Hall of Shame”…
Summaries of Past Enforcement Cases A-Z
www.fppc.ca.gov
CALIFORNIA FAIR POLITICAL PRACTICES COMMISSION
FPPC “Heat Map”
The FPPC
prosecutes
hundreds of cases
every year. This map
details the location
FPPC cases
prosecuted.
6 Let’s Play a Game
How much was the Fine?
7 FPPC Penalty
Ranges
What kinds of penalties can
FPPC impose?
Late Statements of Economic
Interests (Form 700)
•$200 to $1,200 per violation
Unreported Economic Interests
•$100 to $1,600 per violation
Gift Limit Violations
•$200 to $1,200 per violation
8 Game Q1
FPPC
Enforcement Case
A member of an
agricultural pest control
district failed to timely
file a 2019 SEI, in
violation of Government
Code§87300 (1 count).
How much was the
Fine?
Late SEI: $200-$1,200
per violation
9 Question 1 Answer:
$200 Fine
Game Q2 –
FPPC
Enforcement
Case
How much
was the Fine?
Development Services Director failed to report
meal gifts from developer valued at $139.64 on
2008 SEI, and $263.05 on 2009 SEI, in violation of
Government Code §87207 (2 counts).
How much was the Fine?
Gift Limit Violations: $200-$1,200 per violation
11 Question 2 Answer:
$400 Fine
Ethics Laws
California law promotes
ethics:
•by requiring public
disclosure
•by prohibiting certain
actions
•by punishing violations
13 14
Let’s be SAFE
That’s a lot of law to
cover in one
session…
Spot the Issues
Ask for Help
Failure has Consequences
Ethics in Practice
Goals
•Familiarize you with laws that
govern your service and when to
ask questions
•Encourage you to think beyond
legal restrictions
•Satisfy your AB 1234
requirement 15
Attorney Advice
•The sooner you speak to legal counsel the
better, but remember…
•The City Attorney represents the City, not
you personally.
•Reliance on advice from legal counsel is
not a defense if your actions result in a
violation.
•Only a formal advice letter from the Fair
Political Practices Commission protects
you from violations of FPPC regulations.
16 Be
Hypothetical
Because violations are personal
to you, the best practice is to ask
questions in the hypothetical
No Confessions Please!
17 Part II: Transparency Laws
18 The Brown
Act
•All meetings of the
legislative body of a
local agency must be
open and public
•All persons must be
permitted to attend any
meeting
19 Brown Act-What is a
Meeting?
Basic Rule: Meetings of the City Council,
Boards, Commissions and Committees are
subject to the Brown Act.
What is a Meeting?
any gathering
of a majority of the members of a
legislative body
at the same time and location
Including teleconference locations
to hear, discuss, deliberate or take
action upon any item
which is within its subject matter
jurisdiction 20
Improper Meetings
•“A majority of the members of a
legislative body shall not...use a
series of communications of
any kind, directly or through
intermediaries, to discuss,
deliberate, or take action on any
item of business that is within the
subject matter jurisdiction of the
legislative body.”
• GC§ 54952(b)(1)
21 Improper Serial Meeting
•Daisy Chain: If Member A
contacts Member B, and
Member B contacts Member
C, and so on, until a quorum
has been involved, this type of
“serial meeting” may result in
a violation of the Brown Act.
22 Improper Serial
Meeting
•Hub and spoke: An
intermediary -- such as a
City staff member or even
an applicant -- contacts at
least a quorum of the
members to develop a
collective concurrence on
action to be taken by the
legislative body.
23 Individual Meetings - OK
•A City employee or official may:
•engage in “separate conversations or
communications” outside of a meeting
•in order to “answer questions or
provide information”
•so long as that person “does not
communicate to members of the
legislative body the comments or
positions of any other member or
members.”
• GC§ 54952.2(b)(2).
24 Brown Act
“Meeting”
exceptions
•Individual contacts
•Attendance at community meetings,
meetings of other agencies
•Meetings of “ad hoc” subcommittees –
temporary advisory committees of less
than a quorum of the board, with a
limited purpose, dissolved when the
purpose is completed
•Conferences or seminars
•Social and ceremonial gatherings
•Observation of advisory committee
meetings
•1 on 1 with staff
Hypothetical
You are unsure how to vote at an
upcoming meeting and request
information from staff. Should you:
a) Be transparent and copy the
entire Commission on your email
to staff.
b) Wait until after staff responds to
you and hit “Reply All” with your
position.
c) Only email staff.
d) None of the above.
26 Brown Act
Violations
•“Informal” meetings that are not noticed
•“Serial” meetings
•A series of individual contacts that
results in a majority of the members
reaching a collective concurrence on
an item of business
•Can occur by use of technology, such
as email or social media
•Discussion of non-agendized items
(other than brief response/direction to
staff to agendize a future item)
•Improper noticing on the agenda –
agenda must substantially comply with
requirements
Technology
“Meetings”
•Use of e-mail or other
technology/media by a
majority of a legislative
body to discuss,
deliberate, or take action
on items within the
body’s jurisdiction
violates the Brown Act.
28 E-mail/Technology
Avoid sending e-mails to the whole body.
If necessary, provide information only to
less than a quorum.
Do not solicit a response.
Be careful replying to e-mails.
Do not communicate your position or
make a commitment on a pending matter.
Do not direct a reply to a majority of the
body.
Think carefully before sending any e-mail.
Remember, your e-mail can be forwarded
by others to a majority of the body.
The Internet has a long memory.29
Social Media – AB 992
•Amends Government
Code section 54952.2 to
add new provisions
•Applies from January 1,
2020 through January 1,
2026
Direct Response Prohibited
•AB 992 prohibits even one member of the legislative body from responding in any manner to any other member’s social media posts: “A member of the legislative body shall not respond directly to any communication on an internet-based social media platform regarding a matter that is within the subject matter jurisdiction of the legislative body that is made, posted, or shared by any other member of the legislative body.”
•No exceptions.
•Applies to just one response, making it a violation of the Brown Act regardless of whether a majority of the legislative body read the response.
Emojis = Discussion
•AB 992 prohibits a majority of the members of the
legislative body from using social media to “discuss
among themselves” business of a specific nature that is within the subject matter jurisdiction of the legislative body.
•Prohibits “communications made, posted, or shared on
an internet-based social media platform between
members of a legislative body, including comments or
use of digital icons that express reactions to
communications made by other members of the
legislative body.”
•The prohibition against members “discussing among
themselves” specifically includes emojis.
Hypothetical
Which of the following is a violation?
a) You post on social media and only one other member responds with comments.
b) One member “likes” your post.
c) One member posts “ _ ” in response.
d) All of the above.
e) None of the above.
33 Normal Teleconferencing
Meetings may be conducted by
teleconferencing (i.e., any electronic
audio or video connection) under the
following conditions:
A quorum is within the jurisdiction;
Agendas must be posted at
teleconference locations specifying all
teleconference locations;
There is public access to teleconference locations;
There is public opportunity to speak at
each teleconference location; and
All votes are taken by roll call.
34 AB2449 (2022): New Remote
Teleconferencing Rules
Allows less than a quorum of local officials to participate remotely if •at least a quorum participates
•in-person
•at a single location identified on the agenda that is open to the public,
•and the legislative body follows certain procedural and substantive requirements
Procedural
Requirements
•Regular noticed meeting
•Regular agenda posting
•Officials attending remotely
must:
•participate through both
audio and visual technology
•disclose, before any action,
adults present in room and
relationship to member
More Procedure
•Allow public to access meeting and provide comments, including by teleconference with instructions
•Pause meeting when there is any teleconference disruption for the public •Real-time public comments must be allowed
•Submission of comments in advance cannot be required
•Access requirements for requests for reasonable accommodations •Give notice of procedure
AB2449 Substantive
Requirements
•Member must need to participate
remotely
•for just cause or
•emergency circumstances
What is just cause?
•Caregiving need for child, parent,
grandparent, grandchild, sibling,
spouse, or domestic partner requires
remote participation
•Contagious illness that prevents in
person attendance
•Need related to physical or mental
disability not otherwise
accommodated
•Travel on official business of the
legislative body or another state or
local agency
What are the
limits for just
cause?
•Member must notify legislative
body
•at the earliest opportunity
possible, including at the
start of a regular meeting, of
need to participate remotely
for just cause
•include a general description
of the circumstances relating
to need to appear remotely
•Shall not be used for more than
two meetings per calendar year
(AB 2302)
What are emergency
circumstances?
•Physical or family medical
emergency that prevents a
member from attending in
person
•Cannot be used for more
than:
•5 meetings per year (AB
2302)
What are the requirements?
•Member must request to participate remotely due to emergency circumstances •Made ASAP
•Separate request for each meeting
•General description of circumstances
•Need not exceed 20 words
•Not required to disclose medical diagnosis or disability •Legislative body must approve request
•At earliest opportunity
•May take action at beginning of meeting
•Even if not sufficient time to post on agenda
Rules on Public Participation:
•Place must be open and accessible (ADA)
•Access to agenda materials
•Opportunity to speak on agenda items and on matters within the body’s jurisdiction •Opportunity to record meetings (if non-disturbing)
•Additional time for non-English speakers
43 Avoid These Headlines
Did [Agency] Violate California’s Open Meeting
Laws?
Six of seven agency members attended a private, fee-
based luncheon held by a stakeholder, and allegedly
discussed agency policies at the luncheon.
(August 2023)
44 Sometimes we
need thick skin
In 2015,City sued longtime critic of City
Council and lost and was ordered to
pay resident’s legal fees of $117,741.
City argued use of snippets of Council meetings that were critical of Council violated copyright law and caused irreparable harm.
Court stated lawsuit was “meritless”
In 2018, the City was still having issues with video: Mayor Accused of Telling Activist to ‘Go Choke Yourself,’ But Video Evidence Disappears. (Aug. 2018) 45 Brown Act: Agenda
Requirements
•Rule: Brief description of
item (20 words or less)
•Substantial compliance is
the test.
•Courts will look at whether
the agenda language,
considered as a whole, gives
the public more than a
"clue."
46 Brown Act:
Internet Agenda
Posting
•Govt. Code §54954.2
•An online posting of an
agenda shall be posted on
the primary Internet Web
site homepage…that is
accessible through a
prominent, direct link to the
current agenda.
47 Non-Agendized Items
Action or discussion on any item not appearing on the posted agenda is generally prohibited.
Officials may only:
Briefly respond to public statements or questions.
Ask a question for clarification.
Make a brief announcement.
Make a brief report on his/her activities.
Provide a reference to staff or other sources for factual information. Request staff to place the matter on a future agenda and report back to the legislative body in a subsequent meeting.
GC § 54954.2(a)(2)
48 Public Comment
During public comments on non-
agendized items a Member may:
a) Have a 5-minute conversation
with a member of the public.
b) Approve a $5,000 grant to the
School District if they ask and
really need it.
c) Request donations to his/her
political campaign.
d) None of the above.
49 Hypothetical
A local community organization sends an email to a
Councilmember asking the City to take a position in
support of some upcoming legislation. You should:
a) Forward the email to the City Manager to have a draft letter prepared for the Councilmembers to sign and send. b) Give direction to staff during a public meeting to draft a letter on behalf of the City Council providing support for the Councilmembers to sign.
c) Make a request to return with the item on the Agenda at the next meeting.
50 Closed Sessions
Closed sessions are an exception to the
rule that agency meetings must be open
and public.
The disclosure of confidential
information is prohibited unless the
legislative body authorizes the
disclosure of the information.
“Confidential information” means
communication made in closed session
that is specifically related to the basis
for the closed session meeting.
51 Avoid These
Headlines
City Council, Councilwoman Violated Open
Meeting Law,
County DA Says
(May 2023)
A City Council and councilmember were issued
a cease-and-desist letter from the local County
DA for discussing items in closed session that
were not included in the closed session agenda
and were beyond the scope of the closed
session. A councilmember further violated the
law by later discussing closed session items in
open session.
The City Council was required to adopt a pledge
in open session that it will comply with the
open meeting laws.
52 Brown Act
Violations –
Consequences
Request to Cure/Action Invalidated
Civil Action to prevent future violations
Costs and Attorney’s Fees
Criminal Charges
Each member of a legislative body
who attends a meeting of that
legislative body where action is
taken in violation of any provision
of this chapter, and where the
member intends to deprive the
public of information to which the
member knows or has reason to
know the public is entitled under
this chapter, is guilty of a
misdemeanor.
Gov. Code §§ 54959, 54960, 54960.1
53 Part III: Public Records Act
What is a Public
Record?
•Any writing
•Containing information relating
to the conduct of the public’s
business
•Prepared, owned, used or
retained by any state or local
agency,
•Regardless of physical form or
characteristic.
55 Access to
Public Records
Access to public
records is a
constitutional right in
California
56 Public Records
Rule: All of the City’s public records
must be disclosed to the public, upon
request, unless there is a specific
exemption.
•As described by one court: “Islands of
privacy floating in a sea of disclosure.”
57 Avoid These Headlines
[City] is Paying Hundreds of Thousands of Dollars to Settle Public Records Lawsuits (Dec. 2022)
The City paid more than $240,000 in attorneys’ fees and costs for wrongfully withholding documents. This resulted from about 11 lawsuits filed over five years. The City lost three of the cases and settled the remaining eight cases out of court. At trial, the deputy city attorney explained that PRA lawsuits “are becoming a drain on city resources.”
58 Avoid These Headlines
L.A. County has repeatedly violated state open records laws, L.A. Times lawsuit alleges
(Mar 21, 2018)
The Los Angeles Times has sued L.A. County, accusing it of repeatedly and routinely flouting laws designed to ensure government transparency.
Over the last year alone, county officials have refused to release information about the status of homicide investigations, allegations of misconduct against prosecutors and even mundane information such as email addresses for Sheriff’s Department employees, the lawsuit says.
59 New(ish): PRA Renumbering
•AB 473 & 474
•Effective January 1, 2023
•No substantive changes
•Recodifies and reorganizing PRA moving it to Government Code section 7920.000, et seq.
•For example, former GC 6254(c) (which exempts “personnel, medical, or similar files, the disclosure of which would constitute an unwarranted invasion of personal privacy”) is relocated to GC 7927.700
Pop Quiz
Which of the following is a public record
subject to disclosure:
a) A message sent from a City email
account.
b) A message about City business sent from
your personal email account on your
personal device.
c) A message about City business sent from
your personal email account using a City
device.
d) All of the above.
e) B & C
61 Personal Devices/Public
Records
City of San Jose v. Superior Court
City employees or officials’
communications about official
agency business may be subject to
disclosure as “public records”
retained by the agency under the
CPRA, even if the employees used
personal e-mail or text message
accounts in their preparation or
transmission
62 Avoid These Headlines
‘Disgraceful’: [City] Struggles with Records Law Years
After Landmark Case
(Jan. 2024)
News investigation discloses that the City faces at least six lawsuits for wrongfully withholding public documents. City has already paid $650,000 in judgments and is still involved in litigation. The $650,000 figure does not account for legal costs.
The City was a losing defendant in a prior case that went up to the California Supreme Court, and which cost the City more than $1 million in attorneys’ fees. 63 What is a Public Record now?
Not every document is a “public record.”
New Test:
Does it relate in some substantive way to the conduct of the public’s business?
Or is it primarily personal?
Factors: content; context; purpose; audience; was the individual acting within the scope of their employment or office.
Official decides if personal.
64 Part IV:
Personal
Advantages
& Perks
Legal Limitations on Official Benefits and Perks
65 Elected Officers
Compensation
•Generally fixed by statute.
•Cannot be acted on at a special
meeting.
•Automatic increases not
permitted.
66 Expense Reimbursement
•General Rule: Actual and Necessary Expenses
•Policy: Agencies must have a written policy
specifying reimbursable activities and rates
•Reporting: Timely use of report forms (with
receipts documenting the expenses); oral report at
subsequent meeting in some cases
•Penalty: Loss of reimbursement privilege;
restitution; civil penalties and 3x value of misused
resources; jail; ban from public office
67 Pop Quiz
If you take your spouse on official business,
you can charge the following to the City:
a) Room.
b) Spouse’s meals.
c) Mileage.
d) Both (a) and (c).
e) None of the above.
68 Remember…
•Your expense report forms are
PUBLIC RECORDS
69 GIFTS
•What is a Gift?
•Anything of value you receive for
which you do not provide
monetary or other consideration
of equal or greater value.
•May include discounts and
rebates if not also given to the
general public.
•Report –
•$50 or more in a year/source
•Limit –
•$630/year/source
70 Options when you receive a gift
over $50:
Decide if you want to report it
on your Form 700.
-If yes, report on your Annual
Form 700
If not, then within 30 days:
Reimburse the donee for the
fair market value,
Return the gift unused, or
Donate the gift to charity (no
deductions).
If the gift exceeds $630, you
have a duty to:
reject it or “buy down” the
value.71
Disclosure of Gifts
•Must report gifts on your Form 700 if:
•Total value of all gifts from that
source during the calendar year is
greater than $50.
•Gifts are reportable regardless of
the location of the donor.
•Tip: If the amount is unknown, you
must make a good faith estimate of
the item’s fair market value.
72 Pop Quiz
When are meals not considered “gifts”?
a) If provided at a party at a personal
residence.
b) You don’t know any other attendees at
the event.
c) You take turns paying for the meal.
d) You get food poisoning.
73 Gifts
74 Other Gifts
There is a rule for everything:
Gifts through family members
Attendance at Invitation-Only Events
Wedding gifts
Dating exception
Behested payments
Travel
See FPPC Guide: Limitations and Restrictions on Gifts, Honoraria, Travel and Loans https://www.fppc.ca.gov/learn/public-officials-and-employees-rules-/gifts-and-honoraria.html 75 New Behested Payment Rules
•Applies to elected officials
•Covers fundraising activities
•Payment is considered "behested" if it is made for a legislative, governmental or charitable purpose at the request, suggestion, or solicitation of, or made in cooperation, consultation, coordination or concert with an elected official •Must be reported to FPPC within 30 days of receipt if they total more than $5,000 per year from a single source
•Reporting forms are available at https://www.fppc.ca.gov/learn/public-officials- and-employees-rules-/behested-payment-report.html
GiftsFPPC Enforcement Decisions:
A County Supervisor failed to disclose, and under-disclosed, gifts from a concert promoter between 2011 and 2015 valued at $7,200. The Supervisor also voted for a resolution before the Board of Supervisors to extend a permit for a concert on county property within 12 months after he had received the gifts from the concert promoter. (6 counts) Penalty: $9,500 An Assistant City Manager failed to report gifts exceeding reporting limits from 2007 through 2009. (2 counts) Penalty: $2,000
City’s Chief Financial Officer failed to report several gifts from a single source in 2008, and then participated in making and approving a City contract with the source of the gifts. (3 counts) Penalty: $6,500
City Councilmember failed to report gifts in the form of parking privileges at local airport from 2004 through 2005. (1 count) Penalty: $1,500
Director of City’s Library Services Department failed to disclose a gift of travel from a foreign embassy valued at $1,641. (1 count) Penalty: $200
77 Avoid These Headlines
[City] Will Consider New Ethics Guidelines; Effort Follows Times Report of Lobbyist’s Undisclosed 2016 Gift to Councilwoman
(Los Angeles Times, August 2021)
The City established an ethics commission in 2021 after news broke that a councilmember accepted $1,100 in gifts to help pay for breast augmentation surgery and failed to disclose the gift. The gift was from a lobbyist with business before the City. The District Attorney was reviewing the complaint filed by a rival councilmember.
78 Game Q 3
Gifts
How much was the fine?
FPPC Enforcement Decision
General manager of a municipal water district,
failed to report 31 gifts of golf games and
parties, totaling $3,500, received between 2009
and 2012, and used his official position to
approve district contracts with the gift-giver.
79 Question 3 Answer:
$30,000 Fine
POP QUIZ
Can public officials accept “tips”
for a job well done?
a) Never.
b) Always.
c) Only if you do an extra good
job.
d) Yes, if you have a performance-
based contract.
81 Prohibition on
Gratuities or Rewards
It is a misdemeanor to
receive any kind of gratuity
or reward for performing
one’s duties.
82 83
Honoraria
Receipt of honoraria (e.g., any
payment for a speech, article,
attendance at a conference, event
or similar gathering) is prohibited
Exception: Speech or article in
connection with private business
Tip: You can return or donate the
honoraria within 30 days of
receipt.
Avoid These Headlines
84 [Councilmember] Waited Two Months After She Was
Elected to Ask State Agency About Speaking Fees She Was Collecting
(Oct. 2023)
A city councilwoman waited two months from when she was elected to ask the FPPC if she could still get paid for public speaking while in office. The FPPC told the councilmember that she had to reduce the share of her income that came from public speaking to below 50%, or she would be violating the Political Reform Act. The FPPC’s answer jeopardizes the councilmember’s ability to legally work and be on the city council at the same time.
The councilmember writes books and gives talks about parenting, race and youth development. Appealed. FPPC amended interpretation of rule to income over 3 years.
85 Misuse of Public Resources
Rule: No use of public funds or resources for personal, non-public purposes, including campaigns.
“Public Resources” includes staff time, office equipment and supplies, but excludes incidental or minimal uses.
Penalties: disqualification from office, jail, civil penalties up to $1000/day plus 3x the value of the unlawful use.
Gifts of Public Funds
•Local agencies are prohibited
from making a “gift” of public
money or anything of value.
•Expenditures for public
purposes are not considered
gifts even if a private party
incidentally benefits.
86 Avoid These Headlines
Misuse of Public Resources
87 [City] Workers Charged with Misusing Public
Funds After Corruption Probe
(Aug. 2023)
The director of a City grants program conspired with a
former city employee to award contracts to the
company owned by the former employee. The former
employee’s company was awarded $1.4 million worth
of contracts and paid the program director about
$215,000 in return. The program director was
receiving payments during the time she was awarding
the contracts. Both employees were served warrants
for their arrest by the district attorney.
QUIZ TIME
Which are not permitted:
a) Making a few personal copies
on the City copy machine.
b) Calling your spouse from City
phone.
c) Using a City vehicle to pick up
a new mattress.
d) All of the above.
88 Misuse of Public
Resources
•Top fire officials suspected of driving county vehicles while collecting $1,000 monthly personal car allowance.
SAN BERNARDINO - San Bernardino County Fire Chief was
placed on unpaid administrative leave Wednesday after
county supervisors evaluated a human resources report
alleging he and a Deputy Fire Chief improperly drove county vehicles for personal use. They reportedly used a county trailer to move personal belongings between 2 cities. The two may have also violated county policy by driving county
vehicles while collecting a roughly $1,000 monthly personal car allowance.
89 Mass Mailing
Prohibition
•Rule: No newsletter or other mass mailing
may be sent at public expense.
•Purpose: Conserve resources, no
advantages for incumbents
•Application:
•200+ items/month
•official “featured”
•Penalties: Criminal liability; restitution.
90 Avoid these Headlines
Happy Holidays! Here’s a $2,000
Fine in Your Stocking
(Feb. 2019)
Community College District was fined $2,000 by
the FPPC for sending out more than 200 holiday
cards featuring photos of elected officials, two of
whom were running for re-election. The holiday
cards were designed, printed, and distributed
using public funds.
91 Avoid these Headlines
The Public Eye: City fined
$2,000 for newsletter
containing prohibited photos
City was fined $2,000 by the California
Fair Political Practices Commission last
week for blanketing households with a
newsletter that contained photos of City
Council members, a violation of the
Political Reform Act.
The State considers such activities a
prohibited form of campaigning with
taxpayer funds that gives incumbents an
unfair advantage.
92 Restrictions on
Loans
•Officials cannot receive loans:
•from anyone within the official’s
jurisdiction or with whom the
City contracts; or
•greater than $500 (except in
writing and with clear terms)
•Exceptions: loans received by the
official’s campaign committee;
normal bank and credit
indebtedness; and loans from family
members
93 Solicitations of
Political Support
•Soliciting campaign funds from City
officers or employees is unlawful
(except when included as part of a
communication to a significant
segment of the community).
•Conditioning employment and
compensation decisions on political
support is also prohibited.
94 Part V:
Personal
Financial Gain
95 Bribery & Extortion
•Requesting, receiving, or agreeing to
receive anything of value, including an
“advantage,” in exchange for official
action, or using an official position to
gain something of value, is a crime.
•Penalties: criminal fines, forfeiture of
office and disqualification from office,
jail time.
96 Bribery & Extortion
Ex-[City] Staffer Pleads Guilty in
Corruption Case (Jan. 2022)
The attorney admitted that he threatened
to fire one of the city’s outside counsel
unless that person paid off someone who
was threatening to reveal damaging
information about City’s handling of a
water department billing scandal.
In the previous month, prosecutors
announced that a former water
department general manager agreed to
plead guilty to bribery, admitting that he
pushed for the department to award a
$30-million contract to a company in
exchange for a $1-million-per-year job and
use of a Mercedes at that company once
he retired.
97 Former Parole Agent Who
Bribed [City’s] Public Works
Head Gets Prison Time
(Nov. 2023)
•A retired California parole agent
who admitted to bribing public
works head to hire a friend-of-
a-friend for a city job was
sentenced in federal court to
six months in prison and a
$10,000 fine.
98 Conflicts of Interest
Rules
•Political Reform Act
•Government Code§87100 et
seq., and the Regulations of
the Fair Political Practices
Commission (FPPC)
•Contractual Conflicts
•Government Code §1090
(FPPC and AG)
99 Purpose of Conflict
Rules
•Public officials owe paramount
loyalty to the public
•Personal or private financial
interests should not be allowed to
enter into the decision-making
process
100
Disclosure of Financial Interests
mjf7001
•Statements of Economic Interests
“Form 700”
•Purpose:
•alert officials of personal
interests that might be affected
•inform the public about potential
conflicts
•As of 1/1/2025, must use FPPC’s
electronic filing system
101
102
The Who, What, When and
Where of Disclosure
Who? All “designated” officials.
What? Interests in real property, investments, business positions, sources of income and gifts. When? Upon assuming office, annually (by 4/1), and upon leaving office. Where? File online. City Clerk will send you a reminder email.
Note: The documents are public records and late filers may face fines or penalties.
Game Q4
Form 700 Reporting
How much was the fine?
FPPC Enforcement Decision:
Director of Draining District failed to
timely file two Annual Statements of
Economic Interests, for 2019 and 2020.
103
Question 4 Answer:
$400 Fine
Can I Participate?
•Conflict-of-Interest Rules
•Political Reform Act
105
General Rule of
Disqualification
•A public official may not:
- make/participate/influence
- a governmental decision
- that will have a reasonably foreseeable
- and material financial effect on
- the economic interests
- of the official or his/her immediate family
members
106
POP QUIZ
The best time to discuss a
potential conflict with the City
Attorney is:
a) At a meeting because it is
convenient and will save money.
b) After the action/decision so
you know all the facts.
c) As early as possible.
d) Never, because it’s not a
privileged communication.
107
Recognizing and
Seeking Advice
•The conflict rules and regulations are
complex.
•Recognizing potential conflicts is
essential.
•Talk early with the City Attorney and
consider seeking advice from the FPPC
when economic interests may be affected
(positively or negatively) by a decision.
108
Five Disqualifying
Financial Interest
Categories
•Source of Income
•Business management,
employment or investment
•Real Property
•Gifts
•Personal Financial Effect
109
Economic Interests
•Sources of Income:
Any source of income of $500
or more during the prior 12
months for you or your
spouse or domestic partner.
110
Game Q5
Economic Interests
How much was the Fine?
FPPC Enforcement
Decision:
City councilmember
participated in discussions
and votes relating to cannabis
dispensaries that had a
material financial effect on his
real property.
111
Question 5 Answer:
$18,000 Fine
Game Q 6
Economic Interests
How much was the Fine?
FPPC Enforcement Decision:
Robert S, a member of a city council, attempted to
use his official position to influence a governmental
decision in which he had a financial interest, by
speaking before the Planning Commission
regarding the approval of an application for the
subdivision of land owned by a client.
113
Question 6 Answer:
$3,000 Fine
115
Economic Interests
•Business management,
employment or investment
•Any business entity in which an
official is a director, officer,
partner, trustee, manager or
employee.
•Any business entity in which an
official has a direct or indirect
investment of $2,000 or more.
Game Q7
Economic Interests
How much was the Fine?
116
FPPC Enforcement Decision:
County Office of Education employee used
her position to influence the award of agency
software contracts to the company owned by
her spouse.
Question 7 Answer:
$5,000 Fine
Game Q8
Economic Interests
How much was the Fine?
FPPC Enforcement Decision:
General Manager of large community services
district participated in awarding and executing
a contract for professional services to a
company that he owned and was the only
manager. As the District’s general manager, he
was familiar with conflict-of-interest rules and
had filed Form 700s for at least five years
preceding the illegal contract.
118
Question 8 Answer:
$4,500 Fine
Game Q9
Economic Interests
FPPC Enforcement Decision:
A City Councilmember violated conflict of
interest laws by voting to approve a permit
for a cannabis facility. The sale of the land
for the cannabis facility was handled by the
brokerage firm where the councilmember
was receiving income as an independent
contractor.
How much was the Fine?
120
Question 9 Answer:
$5,500 Fine
Real Property Conflict Rules
•Regulation 18702.2 provides the
materiality standards for interest in real
property
•“500-Foot Rule”
“500-Foot” Rule
•Under FPPC Regulation 18702.2:
•Different depending on the type of financial
interest
•Ownership
•Leasehold
•For an official’s financial interest (other than
leaseholds), there are 3 categories
•Broken down by where the official’s property
is located in relation to the property that is the
subject of the governmental decision
Within 500 feet
Where the official’s property is located within 500 feet of property that is the subject of a governmental
decision
Presumption that a decision that involves property
within 500 feet of the official’s property will have a
material impact on the official’s financial interest
Public official is disqualified unless there is clear and convincing evidence to rebut the presumption of a
conflict
More than 1,000 Feet Away
Where the official’s property is located more than
1,000 feet from the property that is the subject of a
governmental decision
•Presumption that a decision more than 1,000 feet
from the official’s property will NOT have a
material impact on the official’s financial
interest
•Public official is presumed to not have a conflict
and may participate unless clear and convincing
evidence that shows a substantial effect on the
public official’s property
Between
500 and
1,000 Feet
Under FPPC Regulation 18702.2, a decision
involving property between 500 and 1,000
feet will have a material impact on an
official’s financial interest (other than
leaseholds), if the decision would change:
•The development potential of the official’s
parcel;
•The income producing potential of the
official’s parcel;
•The highest and best use of the official’s
parcel;
•The character of the official’s parcel by
substantially altering traffic levels,
intensity of use, parking, view, privacy,
noise levels, or air quality; or
•The market value of the official’s parcel.
Leasehold Interests
Under FPPC Regulation 18702.2(c), the
reasonably foreseeable financial effects of
a governmental decision on any real
property in which a governmental official
has a leasehold interest as the lessee of
the property is material only if the
governmental decision will:
•Change the termination date of the lease;
•Increase or decrease the potential rental
value of the property;
•Change the official's actual or legally
allowable use of the property; or
•Impact the official's use and enjoyment
of the property.
QUIZ TIME
Interests in real property are:
a) A potential ground for a conflict of
interest.
b) Not a conflict if it is your home because
of the homestead exemption.
c) Not a problem as long as your property is
more than 500 feet away.
d) Always a conflict if the property is within
the jurisdiction, unless it’s a leasehold.
128
Conflicts Created By
Future Employment
Delays on the revolving door…
•May not participate in decisions involving a
prospective employer (includes interviews
and negotiations).
•Officials and senior management may not
represent parties before their former agency
for one year after leaving office.
129
Game Q10
Conflicts Created By Future Employment
FPPC Enforcement Decision:
Director of Water District Board of Directors failed to report income from employers with business before the
District, and voted to waive tax delinquency penalties for a company with which he had negotiated a future
employment contract.
How much was the Fine?
130
Question 10 Answer:
$4,000 Fine
How
did you
do?
Conflicts
Requiring
Disqualification
- Summary
Ask yourself whether the matter
involves:
•Someone who pays you
income
•Property that you own, lease
or have another interest in
•Your employer
•One of your investments
•Someone who has given you a
gift
•Your family’s finances
133
SB1439 (2023)-
New
Disqualification
Rules Regarding
Campaign
Contributions
•Prohibits certain officers from making, participating
in making or influencing decisions on licenses,
permits and other entitlements for use where they
have received a campaign contribution of more than
$500 within 12 months before or after a decision
•Eliminates exception to the Levine Act (GC 84308) for
Councilmembers acting in their elected roles
•Now applies to Councilmembers acting in elected or
appointed roles
•Expands reach from 3 months to 12 months before
and after decision
•Must disclose on record and recuse
•FPPC Opinion: Applies to contributions received
starting in 2023
134
Effects of
Disqualification
If you have a conflict
•Do not participate in any way in the
decision
•Do not talk to staff, Councilmembers or
Commissioners
•Do not attempt to influence the
decisionmakers
•Do not advocate or make public comment
•Do remove yourself from the process
entirely
Penalties
If you do not follow disqualification rules:
•Decision could be invalidated
•Offense can be prosecuted as a
misdemeanor and conviction could result
in loss of office
•Many cases, official faces personal fines
of up to $5,000 to $10,000 per offense,
among other possible penalties
•Attorneys’ fees
•Personal and political embarrassment
Exceptions to Potential
Economic Interest Conflicts
•Two exceptions:
•“Public generally”
•“Legally required participation”
137
Public Generally
Exception
•Decisions that affect a broad range
of persons or interests may be
exempted: 25% of all businesses, all
real property, or all individuals.
•15% if only real property interest is
your home (new 2020)
• Example: City fee decisions
138
Legally Required
Participation Exception
•May apply if a conflict disqualifies so many
officials that there is no longer a quorum
to make a decision.
•Note: Does not apply if quorum could be
met later.
139
Common Law Conflicts:
Personal Interests or
Bias
•Personal interests or biases (positive or
negative) about the facts or the parties
may cast doubt on your ability to make a
fair decision
•Need to exercise power with actual and
the appearance of disinterested skill,
zeal, and diligence
140
Personal Interests or
Bias
Procedural due process requires an
unbiased decision maker:
Personal (non-financial) interest in
outcome
Bias of loyalty/friendship to
individual involved
Informational bias due to receiving
information outside the public
hearing
141
QUIZ TIME
Will campaign
statements disqualify
you from voting on an
issue after the
election?
142
Public Interest vs.
Personal Interest
City of Fairfield v. Superior Court (1975) 14 Cal.3d 768:
“A councilman has not only a right but an obligation to discuss issues of vital concern with his constituents and to state his views on matters of public importance. . . . Campaign statements…do not disqualify the candidate from voting on matters which come before him after his election.”
Nasha v. City of Los Angeles (2004) 125 Cal.App.4th 470:
Plaintiff was seeking to develop five lots in Los Angeles. While the matter was pending before the Planning Commission, one of the Commissioners authored an article attacking the Plaintiff’s project. The Planning Commission voted to deny the project and, in the lawsuit filed by the Plaintiff against the City of Los Angeles, the Court found that the Planning Commission’s decision should be set aside due to an unacceptable probability of actual bias on the part of the Commissioner who authored the article. 143
What Happens If You Are Disqualified?
•If disqualified:
•Identify the applicable
interest with specificity
•Step down from the dais
and leave the room
•Refrain from any
discussion or participation
144
Due Process and
Ex Parte Contacts
•“Ex parte” communications occur when
decision makers receive evidence outside
of the noticed hearing
•This can include site visits, speaking with
parties/witnesses, conducting outside
research, or reading social media
•Because the affected party has a right to
comment on the basis for the decision,
decision makers should either avoid ex
parte contacts, or should disclose any
facts gathered outside the hearing or ex
parte contacts at the very beginning of the
hearing 145
Let’s Practice
Financial
interest in
development
500 to 1,000
feet Site Visit
Discussion
with
constituent
Personal
relationship
Contractual Conflicts of
Interest
Government Code §1090
•Section 1090 prohibits
officials and employees
from having financial
interests in contracts
made by them in their
official capacities or any
board of which they are
members
147
Contractual Conflicts of Interest
•If a public official or employee
has a financial interest in a
contract, the contract is
prohibited regardless of
whether the official
participates in or abstains from
the actual decision
148
Avoid These Headlines
Top [County] Official Helped Direct Millions to His Daughter’s Center Without Disclosing Family Connection
(Nov. 2023)
Without publicly disclosing his family connection, County Supervisor approved funding $3.1 million in two
subcontracts for a services center led by his daughter. The service center was not a legally registered nonprofit with the state. County spokespeople have not answered whether the supervisors and county staff knew the county was approving millions in funding to a group the state had declared was unable to legally seek or spend funds. The Board of
Supervisors has declined to reconsider the contracts because the County’s ethics code .
149
150
Violations of § 1090
•If contract is made in violation of
§1090, the contract will be
deemed void
•All monies paid under the
contract must be returned to the
local agency
•Willful violations may be
punished by fine, imprisonment
and disqualification from public
office
Contractual Conflicts of Interest
Exceptions
“Remote interests”
•(§1091) (e.g., officer or employee of
nonprofit)
•Effective 1/1/2026: New remote interest –
City may enter into a contact with a
company where official’s child is an officer,
director or holds significant ownership in the
company if disclosed and recuses
themselves.
• Still must disclose and recused themselves
“Non-interests”
•(§1091.5) (e.g., non-compensated officer of
a non-profit)
• May vote
151
Part VI: General
Ethical Principles
Universal Ethical Values:
⚫ Professional/Trustworthy
⚫ Community First
⚫ Respect
⚫ Fairness
152
Ethics Laws vs. Ethics
Law = minimum standards
What we must do
Floor - not the Ceiling
Ethics = What an official should
do
153
Be Professional
This value looks like:
I come prepared to meetings,
having read and studied any
materials and information provided
to me, but with an open mind
I respect confidential information
I follow through and take
responsibility for my actions
I keep my knowledge and skills
current 154
Community First
This value looks like:
I make impartial decisions, free of
narrow political interests and financial
and other personal interests that
might impair my independence of
judgment or action
I comply with both the spirit and the
letter of the law (Constitution, State
law, County/City Codes, Regulations
and Policies)
I do not use City resources or my
position for personal gain.
155
Be Trustworthy
This value looks like:
•I act truthfully with the public, City
officials, and staff
•I use accurate information
•I do what I say I will do
•I use my title only when conducting
official City business, carefully
considering whether I am exceeding
or appearing to exceed my authority
156
Be Respectful
This value looks like:
•I treat people with courtesy and
equitably
•I listen carefully
•I am engaged – I ask questions
•I involve staff and counsel early
•I work towards consensus
157
Fairness
This value looks like:
•I focus on merits not on
personalities
•I promote public involvement
•I provide more process than
required
•I consider all sides
•I apply policies consistently
158
159
Final Questions to
Ask
•What would inspire public
confidence?
•What decision best serve the
interests of the community
as a whole?
Public Perception
•What would you want to read about
on the front page?
•Even if you are confident about the
“right thing to do” – Don’t forget
about public perception
•The public needs to believe that “the
right thing has been done”
dotherightthing
160
161
Public Perception
Resources
•FPPC: 1-866-ASK-FPPC and on
the web at www.fppc.ca.gov
•Attorney General:
www.ca.ag.gov
•League of California Cities:
www.cacities.org
•Institute for Local Government:
www.ca.ilg.org
162
Questions?
Thank You!