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 was essential in light of various investigations into alleged corrupt activity by numerous City officials and contractors. These investigations demonstrated an alarming level of unethical conduct in and around City government and its decision-making processes. This project sought to learn from the findings of the various investigations and identify improvements to ethics laws and programs to prevent future instances of corruption.

Staff undertook 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 were 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 summarized the proposed measure.

Phase 2: Gifts

The second phase of the project focused on gift rules. State and local law restricts gifts made to City officials and employees. Corruption investigations 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. Thereafter, 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

The third phase of the project analyzed 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^th, 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.

On March 5, voters overwhelmingly approved Proposition D. Proposition D became operative on October 12, 2024. The Ethics Commission developed and hosted a series of trainings for City officials on the then upcoming changes before they became operative Additionally, pre-recorded versions of the Proposition D live trainings are available. More information on Proposition D can be found here: https://sfethics.org/PropD.

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.

Proposition D: The ballot measure was placed on the March 5, 2024 ballot.
- Status: approved by voters and in effect as of October 12, 2024.

Ethics Commission Regulations Related to Proposition D:
- Regulation Amendments for Sections 3.205 and 3.216 of the C&GCC as amended by the Ethics Commission 2024 Ballot Measure: Amendments went into effect simultaneously with Proposition D.
- Regulation Amendments for Section 3.218 of the C&GCC as amended by the Ethics Commission 2024 Ballot Measure: Amendments went into effect shortly after Proposition D went into effect.

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)
February 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)
November 9th, 2023: The Commission approved a motion to explicitly authorize the Chair to submit a ballot argument and potentially a rebuttal argument to the Department of Elections on behalf of the Ethics Commission regarding the March 2024 ballot measure. (Agenda | Meeting Minutes | Summary)
January 24^th, 2024: Update and discussion regarding the March 2024 Ethics Commission Ballot Measure focused on gifts, training, and other City ethics laws. (Agenda | Meeting Minutes | Summary)
April 12^th, 2024: Informational session regarding the steps involved in implementing Proposition D, including information on trainings under development, new systems and protocols for disclosures, a new advice portal to assist City officers & employees, and communication plans to inform stakeholders of the availability of these components. (Agenda | Meeting Minutes | Summary)
September 27, 2024: Presentation, discussion, and possible action on regulations for Section 3.218 of the Campaign and Governmental Conduct Code (C&GCC) as amended by Proposition D, regarding incompatible activities. The Commission approved the regulation amendments. (Agenda | Meeting Minutes | Summary)