Sec. 600.  City Ethics Commission.

A.  Establishment. 

There is hereby created a City Ethics Commission which shall have the powers, duties and responsibilities set forth in this article and elsewhere in this Charter. The Commission shall have five members, each of whom shall be a part-time commissioner.

B.  Appointment:

The Mayor, the City Attorney, the Controller, the President of the Council and the President Pro Tem of the Council shall each appoint one member to the Commission.  All Appointments shall be subject to confirmation by a majority of the Council.  A President and Vice President of the Commission shall be selected by the Commission and shall serve in those capacities as set forth in Section 74 of this Charter.  (Amended, 1996.)

C.  Terms of Office. 

The members of the Commission, including the president, shall serve five-year terms beginning on July 1 and ending on June 30. The initial appointees shall be appointed within 30 days of the effective date of this article and (except for the president who shall serve the initial five-year term) shall serve staggered one to four year terms determined by lot. No member who has served a complete five-year term shall be eligible for reappointment.

D.  Qualifications. 

Each member of the Commission shall be a qualified elector of the City. No member or paid staff member of the citizen’s commission involved with the development and preparation of this article shall be eligible for appointment to the Commission or for appointment as the executive officer of the Commission. During his or her tenure, neither a member of the Commission nor its executive officer shall hold any other public office, participate in or contribute to a City election campaign or to a City official running for any elective office, or employ or be employed as a person required to register as a lobbyist with the City of Los Angeles. Neither a member of the Commission nor its executive officer shall seek election to any City office concerning which the Commission has made a decision during the term of the Commissioner or executive officer unless the election for such office is to be held at least two years following the expiration of the term of office of the commissioner or executive officer.

E.  Removal. 

Members of the Commission may be removed by the Mayor, with the concurrence of the Council by majority vote, or by a two-thirds vote of the Council, for substantial neglect of duty, gross misconduct in office, inability to discharge the powers and duties of office or violation of this article, after written notice of the grounds on which removal is sought and an opportunity for a reply.

F.  Vacancies. 

Appointments to fill vacancies on the Commission shall be made within thirty days, by the same appointing authority who appointed the prior holder of the position. Appointments to fill vacancies shall be for the unexpired term of the member whom the appointee succeeds. A vacancy or vacancies shall not impair the right of the remaining members to exercise the powers of the Commission.

G.  Quorum. 

Three members shall constitute a quorum, and the concurring vote of at least three members shall be required to take any action.

H.  Compensation;  Expenses.

Members of the Commission shall be compensated in the same manner and at the same rate as provided by Charter Section 71. The members of the Commission shall be reimbursed for expenses incurred in the performance of their official duties.

I.  Executive Officer, Commission staff and Delegation of Authority.

1.  The Commission shall appoint and has the authority to discharge an executive officer, who shall act in accordance with Commission policies and regulations and with applicable law. The executive officer shall serve at the will of the Commission, shall not be subject to civil service requirements or procedures, and shall have no property interest in his or her employment. The salary of the executive officer shall be set by the Council, subject to approval of the Mayor, and shall be based on a recommendation submitted by the City Administrative Officer after a review and analysis of the responsibilities and authority vested in the position. The executive officer shall not serve the Commission for more than ten years.

2.  The executive officer shall appoint and has the authority to discharge Commission staff members and prescribe their duties. Non-clerical personnel of the Commission shall serve at the will of the executive officer, shall not be subject to civil service requirements or procedures, and shall have no property interest in their employment.

3.  The Commission may delegate authority to the executive officer to act on behalf of the Commission between meetings of the Commission, except that rules, regulations and adjudicatory decisions can only be acted upon by the Commission.

J.  Administration and Implementation.

The Commission shall have responsibility for the impartial and effective administration and implementation of the provisions of this Charter, statutes and ordinances concerning campaign financing, lobbying, conflicts of interest and governmental ethics.

K. Duties.

The City Ethics Commission shall have the following duties and responsibilities:

1.  To receive documents required to be filed pursuant to, and to otherwise administer, the provisions of Section 312 of this Charter and to conduct audits as otherwise set forth in that section.

2.  To receive documents required to be filed pursuant to, and to otherwise administer, the provisions of the City’s lobbyist registration ordinance.

3.  To act as the filing officer and to otherwise receive documents in any instance where the City Clerk would otherwise be authorized to do so pursuant to Chapters 4 and 7 of the California Political Reform Act of 1974 (Government Code Section 81000, et seq.), as amended.

4.  To audit campaign statements and other relevant documents and investigate alleged violations of state law, this Charter and City ordinances relating to limitations on campaign contributions and expenditures, governmental ethics and conflicts of interest and to report the findings to the City Attorney and other appropriate enforcement authorities. Audits shall be conducted of every candidate receiving public matching funds and may be conducted of other candidates and committees involved in City elections.

5.  To provide assistance to agencies and public officials in administering the provisions of this Charter and other laws relating to campaign finance, conflicts of interest and governmental ethics.

6. To make recommendations to the Mayor and the Council concerning campaign finance reform, governmental ethics and conflicts of interest and to report to the Council every three years concerning the effectiveness of such laws.

7.  To maintain a whistle-blower hot line.

8.  To annually adjust the limitation and disclosure thresholds required by City law to reflect any increases or decreases in the Consumer Price Index. Such adjustments shall be rounded off to the nearest hundred dollars for the limitations on contributions and the nearest thousand dollars for the limitations on expenditures and the matching fund provisions of relevant ordinances.

9.  To assist departments in developing their conflict of interest codes as required by state law.

10.  To advocate understanding of the Charter, City ordinances and the roles of elected and other public officials, City institutions and the City electoral process.

11.  To have full charge and control of its office, to be responsible for its proper administration, to submit annually a proposed budget and to expend the funds of the office, all as otherwise prescribed by law.

12.  To receive grants, gifts and appropriations, subject to the approval of the Council.

L.  Rules and Regulations.

1.  The Commission may adopt, amend and rescind rules and regulations, subject to Council approval without modification, to carry out the purposes and provisions of this Charter and ordinances of the City relating to campaign finance, conflicts of interest and governmental ethics and to govern procedures of the Commission.

2.  Within forty-five (45) days after a rule or regulation is adopted by the Commission, the Council shall hold a public hearing concerning the matter and act to approve or disapprove such rule or regulation in the form approved by the Commission. If approved by the Council by ordinance, the rule or regulation shall have the force of law, and violation of the rule or regulation shall be subject to such penalties and remedies as may be provided by ordinance.

M.  Additional Duties.

Pursuant to the provisions of Subsection L, the Commission shall:

1.  Prescribe forms for reports, statements, notices and other documents required by this Charter, by ordinances, or by other laws, relating to campaign financing, conflicts of interest and governmental ethics.

2.  Prepare and publish manuals and instructions setting forth methods of bookkeeping, preservation of records to facilitate compliance with and enforcement of the above laws, and explaining applicable duties of persons and committees.

3.  Develop an educational program consisting of the following components:

(a)  Seminars, when deemed appropriate, to familiarize newly elected and appointed officers and employees, candidates for elective office and their campaign treasurers, and lobbyists with City, state and federal ethics laws and the importance of ethics to the public’s confidence in municipal government.

(b)  Annual seminars for top-level officials, including elected officers and commissioners, to reinforce the importance of compliance with and to inform them of any changes in the law relating to conflicts of interest and governmental ethics.

(c)  A manual which will include summaries, in simple, non-technical language, of ethics laws and reporting requirements applicable to City officers and employees, instructions for completing required forms, questions and answers regarding common problems and situations, and information regarding sources of assistance in resolving questions. The manual shall be updated when necessary to reflect changes in applicable City, state and federal laws governing the ethical conduct of City employees.

N.  Requests For and Issuances of Opinions; Advice.

1.  Any person may request the Commission to issue a written opinion with respect to his or her duties under provisions of this Charter or any ordinance relating to campaign finance, conflicts of interest or governmental ethics. The Commission shall, within 14 days, either issue a written opinion or advise the person who made the request whether an opinion will be issued. No person who acts in good faith on a written opinion issued to him or her by the Commission shall be subject to criminal or civil penalties for so acting, provided that the material facts are as stated in the opinion request. The Commission’s opinions shall be public records and may from time to time be published.

2.  Any person may request the Commission to provide written advice with respect to the person’s duties under provisions of this Charter or any ordinance relating to campaign finance, conflicts of interest or governmental ethics. Such advice shall be provided within 21 working days of the Commission’s actual receipt of the request, provided that the time may be extended by the Commission for good cause. Reliance on such advice, or the failure of the Commission to provide such advice within 21 working days of its receipt of the request, or within the extended time for response, shall be a complete defense in any enforcement proceeding initiated by the Commission, and evidence of good faith conduct in any other civil or criminal proceeding if the requester, at least 21 working days prior to the alleged violation, requested written advice from the Commission in good faith, disclosed truthfully all the material facts, and committed the acts complained of either in reliance on the advice or because of the failure of the Commission to provide advice within 21 days of the request or such later extended time.

O.  Investigations and Enforcement Proceedings.

1.  Conduct of Elected Officials, Members of certain Boards and Commissions, Candidates and Others. 

The Commission shall conduct investigations in accordance with this subdivision of  (1)  alleged violations of this Charter and City ordinances relating to campaign financing and lobbying; and  (2)  alleged violations of this Charter and City ordinances relating to conflicts of interest and governmental ethics by the Mayor, the City Attorney, the Controller, members of the City Council and members of the City boards and commissions who serve as the heads of their respective departments or agencies, and by other persons other than in their capacities as officers and employees of the City.

(a)  Investigations.

(i)  If the Commission, upon the sworn complaint of any person or on its own initiative, first determines that there is sufficient cause to conduct an investigation, it shall investigate alleged violations of this Charter or City ordinances relating to campaign financing, lobbying, conflicts of interest and governmental ethics. A complaint filed with the Commission shall be investigated only if it identifies the specific alleged violation which forms the basis for the complaint and contains sufficient facts to warrant an investigation.

(ii)  Within 14 days after receipt of a complaint, the Commission shall notify in writing the person who made the complaint of the action, if any, the Commission has taken or plans to take on the complaint, together with the reasons for such action or non-action. If no decision has been made within 14 days, the person who made the complaint shall be notified of the reasons for the delay and shall subsequently receive notification as provided above.

(iii)  The investigation shall be conducted in a confidential manner. Records of any investigation shall be considered confidential information pursuant to Section 18362 of the California Code of Regulations, as amended, or successor provision. Any member or employee of the Commission or other person who, prior to a determination concerning probable cause pursuant to Subsection P, discloses information about any preliminary investigation, except as necessary to conduct the investigation, shall be liable to pay a monetary penalty pursuant to Subsection Q. The unauthorized release of confidential information shall be sufficient grounds for the termination of the employee or removal of the commissioner responsible for such release. The termination of clerical employees only shall be subject to applicable civil services laws and procedures.

(b)  Findings of Probable Cause. 

No finding of probable cause to believe that a provision of this Charter or City ordinances relating to campaign financing, lobbying, conflicts of interest or governmental ethics has been violated shall be made by the Commission unless, at least 21 days prior to the Commission’s consideration of the alleged violation, the person alleged to have committed the violation is notified of the alleged violation by service of process or registered mail with return receipt requested, is provided with a summary of the evidence, and is informed of his or her right to be present in person and represented by counsel at any proceeding of the Commission held for the purpose of considering whether probable cause exists for believing the person committed the violation. Notice to the alleged violator shall be deemed made on the date of service, the date the registered mail receipt is signed, or, if the registered mail receipt is not signed, the date returned by the post office. A proceeding held for the purpose of considering probable cause shall be private unless the alleged violator files with the Commission a written request that the proceeding be public.

(c)  Administrative Orders and Penalties.

(i)  When the Commission determines there is probable cause for believing a provision of this Charter or City ordinance has been violated, it may hold a public hearing to determine if such a violation has occurred. When the Commission determines on the basis of substantial evidence presented at the hearing that a violation has occurred, it shall issue an order which may require the violator to:

a.  Cease and desist the violation;

b.  File any reports, statements or other documents or information required by law; and/or

c.  Pay a monetary penalty to the General Fund of the City of up to five thousand dollars ($5,000) for each violation or three times the amount which the person failed to report properly or unlawfully contributed, expended, gave or received, whichever is greater.

When the Commission determines that no violation has occurred, it shall publish a declaration so stating.

(d)  Any person who violates any provision of this Charter or of a City ordinance relating to campaign financing, lobbying, conflicts of interest or governmental ethics, or who causes any other person to violate any such provision, or who aids and abets any other person in such violation, shall be liable under the provisions of this section.

2.  Conduct of Appointed Officers and City Employees. 

The Commission shall conduct investigations of alleged violations of this Charter and City ordinances relating to conflicts of interest and governmental ethics by appointed officers and employees, and shall impose penalties and other sanctions for such violations, as may be prescribed by ordinance.

P.  Divestiture. 

In the event a member of a City board or commission is disqualified during any 365 day period from acting on  (1)  three or more agenda matters by reason of the same investment in a business entity, the same interest in real property or the same source of income, or  (2)  1% or more of the matters pending before the board or commission by reason of any investments in business entities, any interests in real property or any sources of income, the Commission shall examine the nature and extent of the conflicts and shall determine whether the member has a significant and continuing conflict of interest. If the Commission so determines, it shall order divestment of the conflicting investment, interest or source of income. The Council may, by ordinance, impose additional requirements to assure that continuing conflicts of interest by members of boards and commissions are adequately monitored and avoided.

Q.  Legal Services. 

The City Attorney shall provide legal services to the Commission. Notwithstanding Section 42 of the Charter, the Commission may employ or contract for staff counsel to give advice to the Commission and to take such action as the Commission may direct on matters which directly involve the conduct of the City Attorney, his or her office, or his or her election campaign.

R.  Subpoena Power.

1.  The Commission and any special prosecutor may subpoena witnesses, compel their attendance and testimony, administer oaths and affirmations, take evidence and require by subpoena the production of any books, papers, records or other items material to the performance of the Commission’s duties or exercise of its powers.

2.  Unless and until the City Attorney is given access to the Grand Jury on the same basis as the District Attorney for the purpose of enforcing state and City conflicts of interest, ethics and campaign finance laws and regulations, the City Attorney shall be given the same authority as the Commission in Subdivision 1.

S.  Judicial Review. 

Any interested person may seek judicial review of any action of the Commission.  (Sec. Added, 1990.)