CL' il!kohl 1
April 16, 2024
Nils Nehrenheim said that he has no financial interest in the LACFD ( Los Angeles County Fire Department). He has worked for them for approximately 28 years in various positions. So, everyone trusted that he has no financial interest. And I' m sure CM Nehrenheim meant no harm.
It was recently brought to my attention that according to Cal. Gov't. Code 18700. 1: " A Public official has a financial interest in any source, whether an individual or an organization, from whom the official has received ( or from whom the official has been promised) $ 500 or more in income within 12 months prior to the decision about which the official is concerned". I find it hard to imagine that Nils Nehrenheim is paid less than 500 per year from the LACFD. Maybe he is paid less than $ 500/ year. Maybe no one in the city knew about the CA Govt. Codes. It is clear by this Gov' t Code that you can be a clerk for the LACED and still have a conflict if paid over $ 500 in a 12 month period.
I have asked the City Attorney to be sure that this Gov' t Code applies to CM Nehrenheim by requesting his last two years of W-2 statements from the LACFD. His recent 2024 pay stubs should be included as well.
If CM Nehrenheim is determined to be in conflict of interest due to his earnings, then he should recuse himself from any discussion and voting regarding our city fire department and the LACED. In this circumstance, you cannot just say you have no financial interest, when in fact you have a financial interest if you earn over $500 within 12 months of discussion/ voting, from that entity in any position you hold.
I have included CM Nehrenheim' s self written resume about his work at LACED.
Here' s the first sentences. " Performs all first aid, EMT level certification. Ocean Rescues in various types of conditions, year round with the highest level of professionalism." He also worked in various other positions for the LACED. The mayor keeps emailing me that CM Nehrenheim is just a lifeguard, not a firefighter. And why would that count in the discussions about the LACED? But, it sounds to me that he is in the firefighter realm, as he does a job that saves lives and is paid by the LACED to do so. An EMT is a firefighter, and that is one of his jobs, when required. BUT, it doesn' t matter what position he holds, as long as he is being paid by the LACED.
I am requesting CM Nehrenheim recuse himself tonight and in the future for any discussion/voting regarding the Los Angeles County Fire Department.
Vicky Oetzell
CA Gov' t. Code FPPC:
https:// www. fppc. ca. gov/ content/ dam/ fppc/ NS- Documents/ AgendaDocuments/ General 201tems/ 2015/ February/ 05. 2% 2018700. 1% 20Definitions-- Source% 20of% 201ncome% 20% 202- 9- 15. pdf
and http:// carules. elaws. us/ code/ t. 2_ d. 6_ ch. 7_ artl_ sec. 18703. 3 1 § 18700. 1.[ Renumbered from Regulation 18703. 3] Definitions: Source of Income, 2 Commission Income and Incentive Income.
3 a)( 1) For purposes of disqualification under Sections 87100 and 87103, a public official 4,. has a financial interest in any person from whom he or she has received income, including 5 commission income and incentive compensation, aggregating $500 or more within 12 months 6 prior to the time when the relevant governmental decision is made. A public official' s income 7 includes income that has been promised to the public official but not yet received by him or her, 8 if he or she has a legally enforceable right to the promised income. 9 2) In addition to having a financial interest in any business entity from which the official 10 has received income of$500 or more within 12 months before the relevant governmental 11 decision is made, the official has a source-of-income financial interest in all ofthe following:
12 A) Any individual owning a 50 percent or greater interest in that business entity. 13 B) Any individual, regardless of the extent ofthe individual' s ownership interest in that 14 entity, who has the power to direct or cause the direction of the management and policies of the 15 business entity.
16 b) Former employers. Source ofincome, as used in Section 87103( c) and this section, 17 does not include a former employer if: All income from the employer was received by or 18 accrued to the public official before he or she became a public official; the income was received 19 in the normal course ofthe previous employment; and there was no expectation by the public 20 official at the time he or she assumed office of renewed employment with the former employer. 21 c) Sources of Commission Income to Brokers, Agents and Salespersons. 22 1) " Commission income" means gross payments received by a public official as a result 23 of services rendered as a broker, agent, or other salesperson for a specific sale or similar 24 transaction. Commission income is received when it is paid or credited. 25 2) The sources of commission income in a specific sale or similar transaction include for 26 each of the following:
27 A) An insurance broker or agent:
28 i) The insurance company providing the policy;
02/ 9/ 2015 1 18700. 1 Renumber
1 ii) The person purchasing the policy; and
2 iii) The brokerage firm, agency, company, or other business entity through which the 3 broker or agent conducts business.
4 B) A real estate broker:
5 i) The person the broker represents in the transaction; 6 ii) Ifthe broker receives a commission from a transaction conducted by an agent 7 working under the broker's auspices, the person represented by the agent; 8 iii) Any brokerage business entity through which the broker conducts business; and 9 iv) Any person who receives a fmder' s or other referral fee for referring a party to the 10 transaction to the broker, or who makes a referral pursuant to a contract with the broker. 11 C) A real estate agent:
12 i) The broker and brokerage business entity under whose auspices the agent works; 13 ii) The person the agent represents in the transaction; and 14 iii) Any person who receives a fmder' s or other referral fee for referring a party to the 15 transaction to the broker, or who makes a referral pursuant to a contract with the broker. 16 D) A travel agent or salesperson:
17 i) The airline, hotel, tour operator or other person who provided travel services or 18 accommodations in the transaction;
19 ii) The person who purchases or has a contract for travel services or accommodations 20 through the agent or salesperson; and
21 iii) The person, travel agent, company, travel agency or other business entity for which 22 the agent or salesperson is an agent.
23 E) A stockbroker:
24 i) The brokerage business entity through which the broker conducts business; and 25 ii) The person who trades the stocks, bonds, securities or other investments through the 26 stockbroker.
27 F) A retail or wholesale salesperson:
28 ///
02/ 9/ 2015 2 18700. 1 Renumber
1 i) The person, store or other business entity which that provides the salesperson with the 2 product or service to sell and for which the salesperson acts as a representative in the transaction; 3 and
4 ii) The person who purchases the product or service.
5 3) For purposes of determining whether disqualification is required under the provisions 6 of Sections 87100 and 87103( c), the full gross value of any commission income for a specific 7 sale or similar transaction shall be attributed to each source of income in that sale or transaction. 8 d) Sources of Incentive Compensation. " Incentive compensation" means income 9 received by an official who is an employee, over and above salary, which is either ongoing or 10 cumulative, or both, as sales or purchases of goods or services accumulate. Incentive 11 compensation is calculated by a predetermined formula set by the official' s employer which that 12 correlates to the conduct of the purchaser in direct response to the effort of the official. Incentive 13 compensation does not include: salary; commission income; bonuses for activity not related to 14 sales or marketing, the amount of which is based solely on merit or hours worked over and above 15 a predetermined minimum; and such executive incentive plans as may be based on company 16 performance, provided that the formula for determining the amount of the executive' s incentive 17 income does not include a correlation between that amount and increased profits derived from 18 increased business with specific and identifiable clients or customers of the company. Incentive 19 compensation also does not include payments for personal services which that are not marketing 20 or sales.
21 The purchaser is a source of income to the official if all three of the following apply:
22 1) The official' s employment responsibilities include directing sales or marketing 23 activity toward the purchaser; and
24 2) There is direct personal contact between the official and the purchaser intended by the 25 official to generate sales or business; and
26 3) There is a direct relationship between the purchasing activity of the purchaser and the 27 amount of the incentive compensation received by the official. Comment: For further discussion 28 of incentive compensation, see Peninsula Health Care District v. Fair Political Practices 02/ 9/ 2015 3 18700. 1 Renumber
1 Commission, Sacramento County Superior Court, Case No. 02CS01766, and In re Hanko, 0-02- 2 088 (August 9, 2002).
3 Note: Authority cited: Section 83112, Government Code. Reference: Sections 87100, 87102. 5, 4 87102. 6, 87102. 8 and 87103, Government Code.
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02/ 9/ 2015 4 18700. 1 Renumber
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pi California Code of Regulations ( Last Updated: August 6, 2014) Title 2. Administration
L Division 6. Fair Political Practices Commission
L Chapter 7. Conflicts of Interest
Article 1. Conflicts of Interest; General Prohibition
187o3. 3. Economic Interest, Defined: Source of Income.
Latest version.
a)( 1) For purposes of disqualification under Sections 87100 and 87103, a public official has ' an economic interest in any person from whom he or she has received income, including commission income and incentive compensation as defined in this regulation, aggregating five hundred dollars ($ 500) or more within 12 months prior to the time when the relevant governmental decision is made. A public official' s income includes income which has been promised to the public official but not yet received by him or her, if he or she has a legally enforceable right to the promised income.
2) Parent, Subsidiary, Otherwise Related Business Entity. An official has an economic interest in a business entity which is a parent or subsidiary of, or is otherwise related to, a business entity in which the official has an interest as defined in Section 87103( c). " Parents, subsidiaries, and otherwise related business entities" are defined in Regulation 18703. 1( d). 3) In addition to having an economic interest in any business entity from which the official has received income of five hundred ($ 500) or more within 12 months prior to the time when the relevant governmental decision is made, the official has a source- of-income economic interest in all of the following:
A) Any individual owning a 50 percent or greater interest in that business entity.
B) Any individual, regardless of the extent of the individual' s ownership interest in that entity, who has the power to direct or cause the direction of the management and policies of the business entity.
b) Former employers. Source of income, as used in Section 87103( c) and this section, shall not include a former employer if: All income from the employer was received by or accrued to the public official prior to the time he or she became a public official; the income was received in the normal course of the previous employment; and there was no expectation by the public official at the time he or she assumed office of renewed employment with the former employer. c) Sources of Commission Income to Brokers, Agents and Salespersons 1) " Commission income" means gross payments received by a public official as a resultof services rendered as a broker, agent, or other salesperson for a specific sale or similar transaction. Commission income is received when it is paid or credited. 2) The sources of commission income in a specific sale or similar transaction include for each of the following:
A) An insurance broker or agent:
i) The insurance company providing the policy;
ii) The person purchasing the policy; and
iii) The brokerage firm, agency, company, or other business entity through which the broker or agent conducts business.
B) A real estate broker:
i) The person the broker represents in the transaction; ii) If the broker receives a commission from a transaction conducted by an agent working under the broker's auspices, the person represented by the agent; iii) Any brokerage business entity through which the broker conducts business; and iv) Any person who receives a finder' s or other referral fee for referring a party to the transaction to the broker, or who makes a referral pursuant to a contract with the broker.
C) A real estate agent:
i) The broker and brokerage business entity under whose auspices the agent works; ii) The person the agent represents in the transaction; and iii) Any person who receives a finder's or other referral fee for referring a party to the transaction to the broker, or who makes a referral pursuant to a contract with the broker.
D) A travel agent or salesperson:
i) The airline, hotel, tour operator or other person who provided travel services or accommodations in the transaction;
ii) The person who purchases or has a contract for travel services or accommodations through the agent or salesperson; and
iii) The person, travel agent, company, travel agency or other business entity for which the agent or salesperson is an agent.
E) A stockbroker:
i) The brokerage business entity through which the broker conducts business; and ii) The person who trades the stocks, bonds, securities or other investments through the stockbroker.
F) A retail or wholesale salesperson:
i) The person, store or other business entity which provides the salesperson with the product or service to sell and for which the salesperson acts as a representative in the transaction; and
ii) The person who purchases the product or service.
3) For purposes of determining whether disqualification is required under the provisions of Sections 87100 and 87103(c), the full gross value of any commission income for a specific sale or similar transaction shall be attributed to each source of income in that sale or transaction.
d) Sources of Incentive Compensation. " Incentive compensation" means income received by an official who is an employee, over and above salary, which is either ongoing or cumulative, or both, as sales or purchases of goods or services accumulate. Incentive compensation is calculated by a predetermined formula set by the official' s employer which correlates to the conduct of the purchaser in direct response to the effort of the official. Incentive compensation does not include: salary; commission income; bonuses for activity not related to sales or marketing, the amount of which is based solely on merit or hours worked over and above a predetermined minimum; and such executive incentive plans as may be based on company performance, provided that the formula for determining the amount of the executive's incentive income does not include a correlation between that amount and increased profits derived from increased business with specific and identifiable clients or customers of the company.
Incentive compensation also does not include payments for personal services which are not marketing or sales.
The purchaser is a source of income to the official if all three of the following apply:
1) The official' s employment responsibilities include directing sales or marketing activity toward the purchaser; and
2) There is direct personal contact between the official and the purchaser intended by the official to generate sales or business; and
3) There is a direct relationship between the purchasing activity of the purchaser and the amount of the incentive compensation received by the official. Comment: For further discussion of incentive compensation, see Peninsula Health Care District v. Fair Political Practices Commission, Sacramento County Superior Court, Case No. 02CS01766, and In re Hanko, 0-02- 088 (August 9, 2002).
HISTORY
1. New section filed 11- 29- 93; operative 12- 29- 93 pursuant to Government Code section 11346. 2( d) ( Register 93, No. 49).
2. Change without regulatory effect amending section heading filed 7- 18- 96 pursuant to section 100, title 1, California Code of Regulations ( Register 96, No. 29).
3. Repealer and new section filed 11- 23- 98; operative 11- 23- 98 pursuant to the 1974 version of Government Code section 11380. 2 and title 2, California Code of Regulations, section 18312( d) and ( e) ( Register 98, No. 48).
4. Change without regulatory effect amending section heading filed 3- 26- 99 pursuant to section 100, title 1, California Code of Regulations ( Register 99, No. 13).
5. Editorial correction of History 3 ( Register 2000, No. 25).
6. Amendment of subsections ( a) and ( c)( 5)( A) filed 2- 13- 2001. Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 ( FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements) ( Register 2001, No. 7).
7. Amendment of subsection ( a), repealer of subsections ( c)( 1) and ( c)( 5)-( c)( 5)( B), subsection renumbering, amendment of newly designated subsections ( c)( 1) and ( c)( 3) and new subsection ( d)-( d)( 3) filed 11- 10- 2003; operative 11- 10- 2003 pursuant to Government Code section 11343. 4 ( Register 2003, No. 46).
8. Amendment and redesignation of subsection ( a) as subsection ( a)( 1) and new subsection ( a)( 2) filed 3- 11- 2004; operative 3- 11- 2004 pursuant to Government Code Fior section 11343. 4 ( Register 2004, No. 11).
9. Amendment of subsectons ( a)( 1)-( 2), new subsections ( a)( 3)-( a)( 3)( B) and amendment of subsections ( b) and ( c)( 3) filed 6- 17- 2010; operative 7- 17- 2010. Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 ( FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements) ( Register 2010, No. 25).
Nom
Note: Authority cited: Section 83112, Government Code. Reference: Sections 87100, 87102. 5, 87102. 6, 87102. 8 and 87103, Government Code.
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