March 14, 2025
To: Members of the Ethics Commission
From: Olabisi Matthews, Director of Enforcement
Subject: Agenda Item 7: Quarterly Enforcement Report including informational presentation on Staff’s Review of the Streamlined Administrative Resolution Program and the Commission’s Administrative Hearing Process
Summary and Action Requested
This report provides general programmatic updates and data about the cases handled by the Commission’s Enforcement Division.
No action is required by the Commission, as this item is for informational purposes only.
The Commission’s Enforcement Division is responsible for investigating violations of state and local laws relating to campaign finance, lobbying, conflicts of interest, governmental ethics, and whistleblower protection. Enforcement matters are initiated both in response to complaints the Division receives from members of the public and by the Director of Enforcement based on information contained in public records, media reports, and other sources.
All enforcement matters are first examined through the preliminary review process, which assesses whether there is reason to believe that a violation of law within the Commission’s jurisdiction has been committed. Matters will be dismissed in preliminary review if they are outside of the Commission’s jurisdiction, lack sufficient evidence to support further investigation, do not allege violations of the law, pertain to conduct that has already been investigated or resolved, or other similar bases that indicate an investigation would not serve the interest of justice.
Matters that are not dismissed in preliminary review are opened as investigations. The Enforcement Division seeks evidence through the investigation that would indicate whether a violation of the law has been committed. This may include interviewing witnesses, reviewing documents, and issuing subpoenas when necessary. Details about any matter that is opened as an investigation are shared with the City Attorney’s and District Attorney’s offices so that those offices may determine whether they wish to pursue civil or criminal penalties, respectively.
If the Enforcement Division finds evidence indicating that a violation of the law has been committed, it will seek to resolve the matter by securing penalties from the respondent in one of two ways. First, the respondent may enter into a stipulated settlement agreement with the Commission in which the respondent admits to violating the law and agrees to pay a penalty. Alternatively, the Enforcement Division may initiate an administrative hearing process.
As part of this agenda item, Staff will provide two separate informational presentations regarding our enforcement processes.
Streamlined Administrative Resolution Program (SARP)
The first presentation will provide information about the Staff’s plan and efforts to review the SARP to identify areas for improvement. Staff welcome the Commission’s input throughout its review process and will return at the conclusion of the review process to seek the Commission’s ratification to the proposed changes.
Probable Cause and Administrative Hearing Process
The second presentation will provide an overview of the probable cause process and the process for holding a hearing on the merits. On March 5, 2025, the Executive Director issued a Probable Cause Determination In the Matter of William Walker. This informational presentation is timely as the Enforcement Division will seek to initiate pre-hearing proceedings in this matter at the next regularly scheduled Commission meeting and that process will require this Commission’s engagement and action.
Cases Resolved
Summary data is provided below regarding cases handled by the Commission’s Enforcement Division to assist the Commission and the public in understanding and following the Commission’s administration of its enforcement powers granted under the San Francisco Charter.
Fiscal Year 2025
So far in Fiscal Year 2025 (July 1, 2024 – March 7, 2025), the Enforcement Division has concluded a total of 128 enforcement matters. Seven of these matters resulted in settlements approved by the Commission. In total, these settlements represented penalties of $167.11. The penalties are summarized in Chart 1 below and are categorized by program area.
Cases In Progress
So far in FY25, 154 enforcement matters have been initiated. 97 of these cases began from complaints that the Commission received from the public. Fifty-three of the 154 cases are cases that the Division initiated based on media reports, observations in public disclosures, independent research, findings from audit reports, and interactions with regulated persons. Sixteen matters were initiated based on referrals from the Controller’s Whistleblower Program. Some of these matters initiated in FY25 remain in progress while others have already been resolved.
In total, 53 matters are currently in progress, including matters that were initiated during FY25, one initiated in FY23 and one initiated in FY24. Of these matters, 14 are in preliminary review, and 39 are open investigations. Majority of the open cases are SEI non-filer cases currently under review under SARP unless evidence indicates that the case is ineligible for SARP. The matter initiated in FY23 has recently progressed through the probable cause proceedings stage and a Probable Cause Determination was issued by the Executive Director on March 5, 2025.
The current cases in progress are broken down by program area in the charts 1 and 2 below.
Matters in Preliminary Review:
Chart 1 – Matters in Preliminary Review by Program Area: 14
Chart 2: Open Investigations by Program Area: 39
Enforcement Regulations Review
As you know, the Enforcement Division is conducting a review of its Enforcement Regulations to identify gaps and weaknesses and propose changes that would better guide the enforcement process, inform the Commission, respondents, staff, and the public about the rules that govern this process, and allow the enforcement process to be carried out in a more efficient and fair manner. Staff concluded two Interested Person Meetings during the week of March 3rd to engage the public and seek input on efforts to improve our Enforcement Regulations. Staff will continue its work on this project and will return to present its proposed recommendations before the Commission in the coming months.
Attachments
Staff Presentation on the Streamline Administrative Review Program
Staff Presentation Overview of the Probable Cause & Administrative Hearing Process
Enforcement Hearing Guidebook – Checklists for Stages 1, 2 and 3