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July 10, 2026 Meeting Agenda Item 13 – Discussion & Possible Action Regarding Behested Payment Waiver Legislation

English

Summary and Action Requested

This memo reviews background and provides information on amendments made to an ordinance that would change the waiver provision of the City’s behested payment rules (File #250947). Staff recommend the Commission discuss the proposed legislative amendment and vote to approve the legislation. The legislation, which has been amended since last approved by the Commission in January, is included as Attachment 1 and the Legislative Digest for the amended ordinance is provided as Attachment 2.

Background

This legislation was introduced by President Mandelman in September of last year and was then referred to the Ethics Commission for consideration. The legislation would make changes to the Board’s ability to grant waivers for the City’s behested payment prohibition. This legislation was discussed at the Commission’s October and November meetings last year. During the Commission’s January meeting, the Commission voted to approve the attached legislation, pending the inclusion of a sunset provision.

Amendments to Legislation

Following the Commission’s vote during the January meeting, language was developed to create a sunset provision, specifically for the ability of the Board of Supervisors to grant waivers for officers and employees of the Board. During the January meeting, the Commission requested a sunset provision be added so that after a period of time, the Commission and the Board of Supervisors would be required to review the waivers the Board gave itself and determine if this process should be allowed to continue. The language creating this sunset provision is in subsection 3.620(h) and reads as follows:

“SUNSET.  The Board’s authority under subsection (f) to waive the requirements of this Section 3.260 by resolution for officers or designated employees of the Board shall expire on June 30, 2029, unless this subsection (h) is amended as provided in Section 3.600.”

Language was also added to subsection 3.620(f) to reference the applicability of the sunset provision. President Mandelman is supportive of the inclusion of this sunset provision.

To review, the amended legislation does the following:

  • Allows the Board of Supervisors to grant waivers for officers and employees of the Board,
  • Specifies that waiver resolutions shall “identify the positions of the City employees and officers to whom the waiver will apply,”
  • Requires that waiver recipients must report back to the Board of Supervisors about the donations solicited under the waiver, within 60 days of the expiration of the waiver, and
  • Establishes a sunset provision for the Board’s ability to grant waivers for itself, which would expire after three years, unless amended legislatively.

Recommended Action

Staff recommend the Commission review the attached ordinance with the language and vote to approve the ordinance as amended.

The ordinance requires majority approval by the Ethics Commission and two-thirds vote from the Board of Supervisors to be enacted. If the Ethics Commission approves, the legislation will return to the Board of Supervisors for consideration and approval. In the event there are further substantive amendments from the Board of Supervisors, the legislation would again be referred to the Ethics Commission for additional approval.

Attachments

Attachment 1: Behested Payments Waivers Ordinance – File No. 250947

Attachment 2: Legislative Digest for File No. 250947

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