Government Ethics and Conflict of Interest Review

English

At its September 11, 2020 meeting, the Commission identified a review of the City’s conflict-of-interest rules as a policy priority. This project is essential in light of the ongoing investigations into alleged corrupt activity by numerous City officials and contractors. If true, the allegations against these individuals demonstrate an alarming level of unethical conduct in and around City government and its decision-making processes. This project seeks to learn from the findings of the various investigations and identify improvements to ethics laws and programs to prevent future instances of corruption.

Staff is undertaking this project in multiple phases.

Phase 1: Behested Payments

The first phase focused on behested payments, which are payments made by someone at the request of a public official or employee, usually to a nonprofit organization. Staff held two interested persons meetings at the onset of this project to engage with stakeholders and learn their thoughts on the project’s first phase. Staff’s findings and recommendations for this phase of the project are set forth in the staff report presented at the Commission’s November 13^th, 2020 meeting. Following the presentation of the report, the Commission voted unanimously to recommend legislation prohibiting City officials and employees from soliciting behested payments from persons with business before their respective departments. The Board of Supervisors considered the recommendations from this phase via File No. 201132, which unanimously passed second reading on December 14th, 2021 and went into effect on January 23rd, 2022.

The Board of Supervisors placed an ordinance regarding behested payments on the June 2022 ballot, which passed with 69% of the vote. This measure did two things when passed: 1) protected behested payment rules from legislative amendment undertaken solely by the Board of Supervisors by requiring a majority vote by the Ethics Commission and a two-thirds vote by the Board of Supervisors for future legislative changes, and 2) expanded the prohibition on the solicitation of behested payments to City contractors seeking approval from the Board of Supervisors. A digest from the Ballot Simplification Committee has been released that summarizes the proposed measure.

Phase 2: Gifts

The second phase of the project focuses on gift rules. State and local law restricts gifts made to City officials and employees. The ongoing corruption investigations have brought to light potential issues with these gift laws. Staff held two interested persons meetings at the onset of this phase of the project to engage with stakeholders and learn their thoughts on the City’s gift laws and how they could be improved. Staff then conducted research into ethical issues involved with gifts and drafted two reports containing findings and recommendations, which were presented to the Commission at public meetings.

Part A: Gifts to Individuals

Findings and recommendations for the first part of Phase 2 were presented in a staff report focused on gifts to individuals. The report was presented at the Commission’s August 13^th, 2021 meeting. Following the presentation of the report, the Commission voted unanimously to adopt the recommendations contained within the report. The legislative recommendations from this report were combined with those found Phase 2-B and Phase 3. This combined set of reforms was first presented to the Commission as a potential ballot measure and regulation amendments during the Commission’s December 10^th, 2021 meeting (see below for more information on the ballot measure and related regulation amendments).

Part B: Gifts to Departments

Findings and recommendations for the second part of Phase 2 were presented in a staff report focused on gifts to departments. The report was presented at the Commission’s October 8^th, 2021 meeting. Following the presentation of the report, the Commission voted unanimously to adopt the recommendations contained within the report. The legislative recommendations from this report were combined with those found Phase 2-A and Phase 3. This combined set of reforms was first presented to the Commission as a potential ballot measure and regulation amendments during the Commission’s December 10^th, 2021 meeting (see below for more information on the ballot measure and related regulation amendments).

Phase 3: Strengthening Essential Ethics Provisions

This third phase of the project analyzes important foundational provisions in the City’s ethics laws that are key to the overall effectiveness of the law. Staff held two interested persons meetings as part of this phase to engage with stakeholders and learn their thoughts on the topics covered in this phase, including: the City’s bribery rule, the disclosure of personal, professional, and business relationships by City officials, and other areas of the Code needing improvement. Findings and recommendations for this third phase were presented in a staff report discussed at the Commission’s December 10^t^h, 2021 meeting. This combined set of reforms was first presented to the Commission as a potential ballot measure and regulation amendments during the Commission’s December 10^th, 2021 meeting (see below for more information on the ballot measure and related regulation amendments).

Recommendations from Phases 2 and 3: Ballot Measure and Regulation Amendments

The initial recommendations from Phases 2 and 3 of this project were combined and presented to the Commission as a potential ballot measure and regulation amendments during the Commission’s December 10^th, 2021 meeting. Following the conclusion of a required meet and confer process with City employee bargaining units, the Ethics Commission voted during its August 18, 2023 meeting to place these reforms before voters as an Ethics Commission Ballot Measure. The ballot measure was placed on the March 5, 2024 ballot. The Commission has also approved related regulations concerning Sections 3.205 and 3.216 of the C&GCC as amended by the measure, which will go into effect simultaneously with the measure.

The ballot measure was designated as Proposition D. Information on Proposition D can be found here: https://sfethics.org/PropD.

On March 5, voters overwhelmingly approved Proposition D. The changes brought by Proposition D will become operative six months and ten days from the date the official vote count is declared by the Board of Supervisors. Prior to that date, the Ethics Commission will develop and host a series of trainings for City officials on the upcoming changes before they become operative.

For updates on this policy project, check Commission meeting agendas or subscribe to receive automatic updates whenever a new agenda is published via the Interested Persons List. All policy and legislative items the Ethics Commission considers are posted to an agenda prior to the public meeting in which they are discussed and acted upon.

Please contact Acting Policy and Legislative Affairs Manager Michael Canning at Michael.A.Canning@sfgov.org for more information about this policy project.

Links Related to this Policy Project

Interested Persons Meeting Announcements to Discuss:

Strengthening City’s Government Ethics Laws – 9/23/2020
Strengthening San Francisco’s Gift Laws – 4/13/2021
Improvements to City’s Conflict of Interest Rules – 11/1/2021

Staff Reports & Resources:

Report on Behested Payments – 11/9/2020
Report on Gift Laws Part A: Gifts to Individuals (Executive Summary | Full Report) – 8/2/2021
Report on Gift Laws Part B: Gifts to City Departments (Executive Summary | Full Report) – 9/29/2021
Report on Strengthening Essential Ethics Provisions (Executive Summary | Full Report) – 12/6/2021
FAQ: Proposals to Strengthen City Gift Laws – 1/19/2022

Legislation:

File No. 201132: Ordinance expanding the definition of interested party to include City contractors, persons seeking to influence City officers and employees, registered contact lobbyists, permit consultants, and to prohibit elected officials, department heads, commissioners, and designated employees from soliciting behested payments from interested parties. – Status: Passed by the Board of Supervisors and in effect as of January 23rd, 2022.
Proposition E: Ordinance regarding behested payments that appeared on the June 7, 2022 ballot. Status: Approved by voters on June 7, 2022.
Ethics Commission 2024 Ballot Measure: Ballot measure approved by Ethics Commission during its August 18, 2023 meeting to appear on the March 5, 2024 ballot.
Regulation Amendments for Sections 3.205 and 3.216 of the C&GCC as amended by the Ethics Commission 2024 Ballot Measure: Regulation amendments which will go into effect simultaneously with the Ethics Commission 2024 Ballot Measure, if it is approved by voters.

Key Commission Meetings:

September 11^th, 2020: Discussion and possible action on monthly Staff Policy Report, including Ethics Commission proposed policy prioritization plan for FY21. (Agenda | Minutes | Summary)
November 13^th, 2020: Presentation of report on behested payments. (Agenda | Meeting Minutes | Summary)
August 13^th, 2021: Presentation of report on gifts to individuals. (Agenda | Meeting Minutes | Summary)
October 8^th, 2021: Presentation of report on gifts to departments. (Agenda | Meeting Minutes | Summary)
November 12^th, 2021: Presentation and discussion of draft ordinance and regulation amendments to enact recommendations contained in report on gifts to individuals, and report on gifts to departments. (Agenda | Meeting Minutes | Summary)
December 10^th, 2021: Discussion and possible action on a possible ballot measure prohibiting certain City officials from soliciting behested payments from interested parties and another possible ballot measure based of the recommendations from Phase 2 and Phase 3 of this project. (Agenda | Meeting Minutes | Summary)
January 14^th, 2022: Discussion and possible action on proposal regarding a possible June 2022 ballot measure and regulation amendments to enact recommendations contained in “Report on Gift Laws Part A: Gifts to Individuals,” dated August 2, 2021, “Report on Gift Laws Part B: Gifts to City Departments,” dated September 29, 2021, and “Report on Strengthening Basic Ethics Provisions,” dated December 6, 2021. (Agenda | Meeting Minutes | Summary)
January 21^st, 2022: Continued discussion and possible action on proposal regarding a possible June 2022 ballot measure and regulation amendments to enact recommendations contained in “Report on Gift Laws Part A: Gifts to Individuals,” dated August 2, 2021, “Report on Gift Laws Part B: Gifts to City Departments,” dated September 29, 2021, and “Report on Strengthening Basic Ethics Provisions,” dated December 6, 2021. (Agenda | Meeting Minutes | Summary)
February 11^th, 2022: Discussion and possible action on proposal regarding a possible June 2022 ballot measure and regulation amendments to enact recommendations contained in “Report on Gift Laws Part A: Gifts to Individuals,” dated August 2, 2021, “Report on Gift Laws Part B: Gifts to City Departments,” dated September 29, 2021, and “Report on Strengthening Basic Ethics Provisions,” dated December 6, 2021. (Agenda | Meeting Minutes | Summary)
February 25^th, 2022: Public hearing, discussion, and possible action on proposed amendments to strengthen City’s gift and ethics laws through a) a potential ballot measure for the June 7, 2022 election, and b) amended Commission regulations. (Agenda | Meeting Minutes | Summary)
March 18^th, 2022: Presentation, discussion, and possible action on proposed amendments to strengthen City’s gift and ethics laws under consideration as 1) potential Ethics Commission ballot measure and as 2) amended Ethics Commission regulations. (Agenda | Meeting Minutes | Summary)
April 8^th, 2022: Closed session meeting with City labor negotiators regarding the status of the proposed amendments to strengthen City’s gift and ethics laws under consideration as 1) potential Ethics Commission ballot measure and as 2) amended Ethics Commission regulations. (Agenda | Meeting Minutes | Summary)
May 13^th, 2022: Closed session meeting with City labor negotiators regarding the status of the proposed amendments to strengthen City’s gift and ethics laws under consideration as 1) potential Ethics Commission ballot measure and as 2) amended Ethics Commission regulations. Presentation and discussion on proposed amendments to strengthen City’s gift and ethics laws. (Agenda | Meeting Minutes | Summary)
June 10^th, 2022: Closed session meeting with City labor negotiators regarding the status of the proposed amendments to strengthen City’s gift and ethics laws under consideration as 1) potential Ethics Commission ballot measure and as 2) amended Ethics Commission regulations. (Agenda | Meeting Minutes | Summary)
July 8^th, 2022: Presentation, discussion, and possible action on proposed Ethics Commission ordinance for November 2022 ballot and amended Ethics Commission regulations to strengthen gift and other City ethics laws. (Agenda | Meeting Minutes | Summary)
July 27^th, 2022: Closed session meeting with City labor negotiators regarding the status of the proposed amendments to strengthen City’s gift and ethics laws under consideration as 1) potential Ethics Commission ballot measure and as 2) amended Ethics Commission regulations. (Agenda | Meeting Minutes | Summary)
October 14^th, 2022: Closed session meeting with City labor negotiators regarding the status of the proposed amendments to strengthen City’s gift and ethics laws under consideration as 1) potential Ethics Commission ballot measure and as 2) amended Ethics Commission regulations. (Agenda | Meeting Minutes | Summary)
December 9^th, 2022: Closed session meeting with City labor negotiators regarding the status of the proposed amendments to strengthen City’s gift and ethics laws under consideration as 1) potential Ethics Commission ballot measure and as 2) amended Ethics Commission regulations. (Agenda | Meeting Minutes | Summary)
Februrary 10^th, 2023: Closed session meeting with City labor negotiators regarding the status of the proposed amendments to strengthen City’s gift and ethics laws under consideration as 1) potential Ethics Commission ballot measure and as 2) amended Ethics Commission regulations. (Agenda | Meeting Minutes | Summary)
March 10^th, 2023: Closed session meeting with City labor negotiators regarding the status of the proposed amendments to strengthen City’s gift and ethics laws under consideration as 1) potential Ethics Commission ballot measure and as 2) amended Ethics Commission regulations. (Agenda | Meeting Minutes | Summary)
August 18^th, 2023: Discussion and possible action on a motion ordering submitted to the voters, at an election to be held on March 5, 2024, an ordinance amending the Campaign and Governmental Conduct Code to 1) expand gift prohibitions for City officers and employees; 2) expand rules prohibiting bribery; 3) require ethics training for Form 700 filers; 4) prohibit members of the public from acting as intermediaries for City officers and employees with respect to certain prohibited gifts; 5) impose personal liability on City officials for failure to disclose certain relationships; 6) create generally applicable incompatible activity rules; and 7) require Ethics Commission and Board of Supervisors super-majority approval for amendments to certain ethics-related ordinances; and appropriating $43,000 from the General Reserve in Fiscal Year 2023-24 to fund administrative costs required to implement the ordinance and amended Ethics Commission regulations to strengthen gift, training, and other City ethics laws. (Agenda | Meeting Minutes | Summary)
September 8^th, 2023: Update and discussion regarding the March 2024 Ethics Commission Ballot Measure focused on gifts, training, and other City ethics laws. (Agenda | Meeting Minutes | Summary)