Keeping Ahead of Our Friends At the Fair Political Practices - - PowerPoint PPT Presentation

Keeping Ahead of Our Friends At the Fair Political Practices Commission (FPPC)

Association of California Healthcare Districts

2014 Leadership Development Program

Your presenter…

• 20+ years advising healthcare clients as

inside and outside counsel

• Also certified in Healthcare Compliance
• Currently in private practice in San Diego

Today’s Agenda ~~~

Living within the Political Reform Act Campaign restrictions The biannual Ethics Act education requirement Being part of the Form 700 Club Gift and Honoraria limits Coping with Conflicts of Interest

Political Reform Act: It’s About Transparency

Political Reform Act: Background

• Adopted by initiative in 1974 (Proposition 9)
• Amended / revised frequently since
• Required disclosure of $$$$

– During campaigns

(state and local)

– Ballot measures – Lobbying

Fair Political Practices Commission

• Independent Agency
• Interprets and enforces

the Act

– Advice letters – Administrative hearings and decisions

• Investigates complaints
• “Interested Persons”

process

• Form 700s

Political Reform Division, Secretary of State’s office

• Registers campaign

committees

• Registers Lobbyists
• Technical assistance to

both

• Runs Cal‐Access website

http://cal‐ access.sos.ca.gov/

• Publishes the Lobbying

Directory

Two “agencies with jurisdiction”:

August 12, 2010 Tom Petersen Director, Government Relations Association of California Healthcare Districts 2969 Prospect Park Drive, Suite 260 Rancho Cordova, CA 95670 Re: Your Request for Advice Our File No. A‐10‐086 Dear Mr. Petersen: This letter is in response to your request for advice on behalf of the Association of California Healthcare Districts (“the Association”) regarding the lobbying provisions of the Political Reform Act (the “Act”). Please bear in mind that nothing in this letter should be construed as evaluation of any conduct which may already have taken place. This letter is based on the facts as they have been presented to us; the Commission does not act as the finder of fact in providing

• advice. (In re Oglesby (1975) 1 FPPC Ops. 71.)

QUESTIONS What are the reporting obligations if the in‐house lobbyist for the Association also lobbies for its affiliated entity, the ALPHA Fund (“ALPHA”)? CONCLUSION ….

Cal‐Access website

http://cal‐access.sos.ca.gov/

Campaign Finance

Lobbying Activity

Campaign Requirements

Duties

Campaign Statements

• verifications
• “detailed accounts, records, bills, and receipts”

to back them up Separate Bank Account

• May not “comingle” with personal funds
• Put personal funds in there before spending
• n the campaign

Know your limits

Do Nots

• No cash contributions > $100
• Just say “check please”
• No expenditure > $100 in cash
• No anonymous donations > $100
• Send to the State
• No hiring the candidate’s spouse or

domestic partner

Lest You forget…

• “Pending Proceedings” and contributions

‐ During + 3 months ‐ 12 months before

• Mass mailings , telephone campaigns ,

Advertisement requirements

Ethics Education

AB 1234

• Broader than the state

agency ethics requirements

• Training must include

ethics laws, ethics principles and agency rules

• Free online version at

http://localethics.fppc. ca.gov

• Also two self‐study

courses at the Institute for Local Government website ‐ www.ca‐ ilg.org

What’s required:

• Each agency must train

elected or appointed

• fficials who are

compensated for their service or reimbursed for their expenses

• Minimum = 2 hours

every two years for each

• fficial
• “Ethics law” part must

come from a knowledgeable CA attorney

• Agency must keep

completion certificates for 5 years

• No penalty – but what about

the next public records request….

• Can impose penalties by local

agency rule or policy

The Form 700 Club

Form 700 – What is it?

• “Statement of Economic Interests”
• Periodic filing
• Goals =

– Public disclosure of certain economic facts about public officials and those that assist them in decision‐making – Filer awareness of these interests and related limitations

Transparency Privacy Unwillingness to Serve

What Must Club Members Disclose?

• A. (1) Investments < 10% ownership +

(2) > 10 % ownership

• B. Real Property
• C. Income, Loans and Business Positions
• D. Gifts
• E. Other Income, e.g. travel payments

“Under penalty of perjury”

What to do when:

assuming

• ffice

statement

Within 30 days

annual statements

April 1

leaving

• ffice

statement

Within 30 days

What if you forgot …..

• No extensions
• Amendments !

Gifts and Honoraria

Gifts

• “anything of value for which you have not

provided equal or greater consideration to the donor.”

• Donor location / doing business = irrelevant
• Acceptance limit = $440
• Reporting threshold = $50 or more
• Food, beverages, tickets, passes = gifts

Some Gift Exceptions

• Mutual value exchange
• Bonafide intra‐family gifts
• Unused, returned items (30 days)
• Unused items donated to charity without

taking a deduction (30 days)

• Neighborly hospitality / acts of compassion
• Personalized plaques
• BFF

Recent Gift Changes

• No donating to charities in which you or a family

member hold a position

• “Home hospitality” is no longer unlimited
• You can toast the bride and eat the cake
• Dating is also permitted
• “Typical” bereavement offerings
• Informational tours
• Valuation of wedding gifts, fundraiser tickets,

charters

So for example:

• A physician group that is negotiating for a

contract as the pathology service provider at your hospital offers you tickets to its Christmas dinner and an overnight stay at the hotel where the dinner will be held. Acceptable? Reportable?

Another example:

• A local charity sends you a ticket for its fundraising
• event. The face value (price) of the ticket is $500,

and the ticket states that the tax deductible portion is $350. Acceptable? Reportable?

• You give the ticket to your daughter to attend the

event. Acceptable? Reportable?

Could it happen to you:

• A different charity asks you to “drop in” at its
• fundraiser. There is no stated value for the

event but dinner will be served. Acceptable? Reportable?

• You meet an old friend at the event and end up

staying for dinner and dessert. Acceptable? Reportable?

“Failure to comply with the laws related to gifts, honoraria, loans, and travel payments may result in monetary penalties of up to $5,000 per violation.” 2013 Local Gift “Proactive” Enforcement effort : ‐ identified 221 gift recipients ‐ 16 reported on Form 700s

Coping with Conflicts

• f Interest

What are they?

• Arise from situations
• Involve an action /decision that could be

influenced by an improper financial or personal interest

• Consequences for:

– the improperly involved decision‐maker – His / her agency

3 Questions to Ask

• Is it foreseeable that a decision will have a

financial effect on any of your financial interests? Yes ‐>

• Will that effect be material? Yes‐>
• Distinguishable from effect on the public

generally? Yes ‐>

• Do not make, participate in or attempt to

influence the decision

When to Seek Advice:

• Source of $500 < Income in past 12 months
• Other business relationship or employment
• $2000 < interest in property or business

involved

• Gift giver
• Prior loan source
• Family
• Campaign Contributer

“I recuse”

Other Questions?