Ethics%20and%20Public%20Service

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Ethics and Public Service

• Laws, Principles and Resources for Information

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Session Objectives

1. To familiarize you with laws that govern your
   service and when to ask questions
2. To encourage you to think beyond legal
   restrictions and provide tools for doing so
3. Help you comply with AB 1234 requirements

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Public Service Ethics is Different

• Laws play a bigger role
• Perception as important as reality
• Key concept Actions decision-making in the
  publics interest

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Session Logistics

• 2 hour session
• Specified content
• Breadth versus depth
• Handouts
• Questions
• Proof of participation
• Sign in
• Certificates

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What Is Ethics Anyway?
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Ethics Versus Ethics Laws

• Ethics what we ought to do
• Laws what we must do
• Minimum standards
• Penalties
• Legal ? ethical

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What We Ought to Do Values

• Respect
• Fairness
• Compassion

• Trustworthiness
• Loyalty
• Responsibility

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Responsibility Issues

• Making decisions for others
• Stewards of taxpayers resources
• Perception matters
• Personal and organizational ethics

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Understanding Ethics Laws

• What They Cover
• When You Need to Ask Questions

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Why Should You Take the Time?

• Loss of freedom--6 months to 20 years
• Fines (up to 250,000) restitution
  forfeiture
• Attorneys fees (3K to 1M)
• Own and others
• Personal costs

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State Ethics Laws

• Personal financial gain
• Personal advantages and perks
• Governmental transparency
• Fair processes

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Group 1 Personal Financial Gain Issues

• Principles
• Publics interest should be sole motivation
• Public servants should not benefit financially
  from their positions

Personal Gain
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Examples of Financial Gain Laws

• Bribery
• Prohibitions against self-dealing
• Employment-related restrictions

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Bribery

• Public officials may not
• Solicit, receive or agree to receive
• A benefit
• In exchange for their official actions

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Bribery and Related Crimes

• Beware of this for that
• Think about what you would say if someone
  approached you

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Bribery Penalties

• Up to four years in state prison
• Loss of office
• Barred from holding office
• Fines/restitution
• Federal prosecutions stiffer penalties

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No Self-Dealing Rules

• Disqualification/conflicts of interest rules
• Special rules for contracts

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Disqualification Based on Financial Interests

• Rule You may not participate in a decision if
  financial interests are affected by a decision
• Effect can be positive or negative

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Disqualification versus Abstention

• Disqualification gt Legally required
• Does not imply wrongdoing
• Unless dont disqualify
• Abstention gt voluntary
• Beyond minimum legal requirements

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Getting Advice on PRA Issues

• Your agency attorney
• No immunity though
• The FPPC
• In writing
• Allow plenty of time

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If You Are Disqualified

1. Dont discuss or influence (staff or
   colleagues)
2. Identify nature of conflict at meeting
3. (Elected Officials) Leave room (unless matter on
   consent)

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Failure to Step Aside Penalties

• Invalidate decision
• Misdemeanor (could result in loss of office)
• Fines (5,000 to 10,000 per violation)
• Attorneys fees
• Embarrassment

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Warning!Special Rules for Contracts

• Interests in contracts are forbidden
• Disqualification likely not be enough
• Penalties Refund money received,
• fines, imprisonment, and loss of office (felony)

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Future Employment Issues

• Revolving door prohibition
• Electeds and top managers
• Cannot represent people for pay for a year after
  leaving their agency
• No participation in decisions involving future
  employers

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Key Things to Remember

• Its about the publics interest
• Not about the money

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For More Information on Personal Financial Gain
Laws
www.ca-ilg.org/FinancialGain
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Group 2 Perks

• Principles
• Democratic equality and serving the publics
  interests
• No special privileges for public officials

PERKS
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Three Areas

• Compensation
• Use-of-public-resources issues
• Personal Use/Expense Reimbursement
• Political Use
• Gifts

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Local Official Compensation

• Limited by law
• No honoraria rule for speaking or writing
• (page 7 Perks)

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Use-of-Public-Resources Issues

• Personal use of public resources (including staff
  time and agency equipment) prohibited
• Political use of public resources also prohibited

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Public Resources

• Money or anything paid
• for with public money
• Staff time
• Office space
• Equipment
• Supplies

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Reimbursement Issues Its the Publics Money

• AB 1234 expense reimbursement policies
• Note Partner/spouse expenses

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Political Use of Public Resources

• By individuals or agency itself (support of
  ballot measures)
• Mass mailing restrictions
• Goal restrict incumbents advantages

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Consequences of Violations

• Civil penalties 1,000/day fine 3X value of
  resource used
• Criminal penalties 2-4 year prison term
  disqualification from office
• Can also have income tax implications

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Gifts Dont Always Have Bows

• Meals, food and drink
• Entertainment (concerts sporting events)
• Certain kinds of travel

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Gift Rules

• Report 50 and up (over a year)
• Limit 440 per year (2013 2014 proposed)
• Exceptions for some kinds of travel,
  informational materials
• May also be a disqualifying interest (over 440
  in prior 12 months)

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Gift Limits State Law Penalties

• Up to 5,000 per violation
• Own attorneys fees (3,000 - 30,000)

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Special Rule

• No free transportation from transportationcarrie
  rs
• Penalty Loss of office

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Key Things to Remember

• Avoid rationalization traps
• Beware of peoples nice gestures

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For More Information on Perk Issues
www.ca-ilg.org/Perks
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Group 3 Transparency Laws

• Principles
• Its the publics business
• The public trusts a process it can see

Secrecy
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Types of Laws

• Financial Disclosure
• Charitable Fundraising
• Brown Act
• Public Records Act

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Financial Interest Disclosure

• Transparency includes obligation for high level
  public servants to disclose financial interests
• Assuming office
• Annually while in office
• Upon leaving office

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Charitable Fundraising

• Rule applies to elected officials
• Disclose 5,000 or more from single source
• Charitable, legislative or governmental purpose

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More Transparency Rules

• Conduct business in open and publicized meetings
• Allow public to participate in meetings
• Allow public inspection of records

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Conducting Business at Open Meetings

• A majority may not consult outside an
  agency-convened meeting
• Media vigilance
• Newspaper test

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Public Records

• Agendas writings prepared, owned, used or
  retained by agency (including electronic)

• Penalties Adverse media attention costs and
  fees if litigated

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Key Things to Remember

• Whos going to know? is a very risky line of
  thinking
• Nothing to hide may be a good goal

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For More Information on Transparency
www.ca-ilg.org/TransparencyLaws
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Group 4 Fair Process Laws

• Principle Under certain circumstances, public
  officials are stewards of fair processes
• Decision-making
• Contracting
• Employment

Favoritism
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Fair Process Laws

• Due process requirements and rules against bias
• Expressions of views prior to hearing
• Personal, but non-financial interests

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Fair Process Laws, continued

• Disqualification requirementsif decision
  involves family members
• Nepotism

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Campaign Contribution Issues

• State law campaign contribution restrictions
• Demands for contributions in exchange for
  favorable action federal fraud and extortion
• Soliciting campaign contributions from fellow
  officials and employees prohibited

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Fair Process Laws, continued

• Incompatible office prohibitions
• Issues Conflicting loyalties overlapping
  jurisdictions
• Result forfeit first position

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Fair Process Laws, continued

• Competitive bidding requirements
• Everyone has a right to compete for agencys
  business
• Competition produces the best price for taxpayers
• Prevents graft
• Kickbacks prosecutable under federal fraud and
  extortion laws

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Key Things to Remember

• Focus on
• The merits of decisions
• Providing fair decision-making processes

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For More Information on Fair Process Laws
www.ca-ilg.org/FairProcess
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Resources

• Cross Reference
• Attorney General
• FPPC
• www.ca-ilg.org
• Also www.ca-ilg.org/everydayethics

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Beyond the LawPublic Service Ethics Principles
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Applying Values to Public Service

• Trustworthiness
• I am truthful with my fellow officials,the
  public and others.

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Ethics Values

• Six universal ethical values
• Trustworthiness
• Loyalty
• Responsibility
• Publics interest
• Respect
• Fairness
• Compassion

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Analyzing Ethical Dilemmas

• Two competing right values

• Doing the right thing costs more than one wants
  to pay (moral courage)

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Example

• Supporter(s) want you to do something you arent
  sure is best for public
• Right versus right dilemma (loyalty versus
  responsibility)
• Can then become a personal cost dilemma

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Questions to Ask

• What values are at stake in a particular
  decision?
• What would make the public feel best/inspire
  public confidence?
• What would you want to read about on the front
  page?
• How do you want to be remembered?

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Organizational Culture

• Whats the message?
• Doing it right versus whatever it takes
• Are staff clear they are expected to use ethical
  behaviors to get results?
• How it looks-- Awareness of public perception

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Creating a Culture of Ethics

• Tone at the top
• Support speaking truth to power
• Who you hire and how they are evaluated

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Is it a Job to Do, or a Job to Have?

• Determine your boundaries before you are in a
  difficult situation
• Is it worth compromising your values to keep your
  job/position?
• Think long term People will ask what did you
  know and what did you do about it?

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Key Lessons

• Its your choice how high you want to set your
  sights above the minimum requirements of the law
• The law sets minimumsometimes quite high--
  standards for ethical behavior
• Violations of ethics laws carry stiff penalties
• When in doubt, ask and ask early

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For More Information on Promoting Personal and
Organizational Ethics
www.ca-ilg.org/ppoe
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AB 1234 Compliance

• Sign in
• Proof of participation certificate
• Provide to custodian of records as public record
• Consider going beyond the minimum in terms of
  education

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Questions?