Department Heads
A department head is a City official who holds an appointed position as a general manager, executive director, chief administrative officer, or other leader of a City department.
REQUIREMENTS
Department heads must create and maintain detailed records that are necessary to show that they have complied with the governmental ethics laws. Records must be maintained for at least four years.
Department heads are required to complete two types of training when they enter City service and every two years thereafter: 1) ethics training provided by the Ethics Commission, and 2) fraud awareness training provided by the Personnel Department.
If you are an attorney licensed in the state of California, you may receive two hours of general participatory MCLE credit for completing the training. To receive MCLE credit, you must submit a completed MCLE request form and certificate of completion to the Office of the City Attorney, using the contact information provided on the form.
Additional information about the mandatory ethics training found here.
There are three types of disclosure required of department heads. Detailed filing requirements can be found under “What Do I File?”.
Statements of Economic Interests
Department heads must periodically file statements of economic interests (SEI) to disclose their personal financial interests. The SEI for department heads includes CA Form 700 (Statement of Economic Interests) and Form 60 (Restricted Source Financial Disclosure Statement). The interests that a department head must disclose are specified in the department conflict of interests code.
City-related Business
Department heads are required to file Form 44 (Statement of City-related Business) when City action affects the following personal financial interests: real or personal property, a City contract, a grant, a loan, a forgiveness of debt, or an application for a license, certificate, permit, franchise, zone change, variance, credential, or other benefit. Form 44 must be filed with the Ethics Commission within 10 calendar days after City action affects one or more of these financial interests if held or sought by the department head, by the department head’s spouse or registered domestic partner, or by a business in which either the department head or the department head’s spouse or registered domestic partner holds an ownership interest of at least five percent.
Department Contracts
Department heads are responsible for filing a Form 63 (Department Contract Quarterly Report) regarding all of their department’s active bidders, contractors, and procurement processes. Those reports are due by April 30, July 31, October 31, and January 31 of each year. The reports are filed electronically through the Department Contract Filing System (DCFS), and each department head must submit Form 62 (Application for DCFS Login ID) to obtain a DCFS identification and password.
Department heads are required by Executive Directive 2006-7 to designate an ethics liaison to coordinate with the Ethics Commission regarding the ethics obligations of the department and its personnel. Among other duties, ethics liaisons help update their departments’ conflict of interests codes and help facilitate compliance with filing Form 700 and Form 60 for City officials in their departments.
LIMITATIONS
Conflicts of Interests
Department heads are prohibited from participating in, making, or attempting to influence City decisions that could foreseeably affect their personal financial interests or the personal financial interests of their immediate family members. When such a conflict may exist, they must seek advice from the City Attorney’s office and may be required to recuse themselves from participating in the government decision. In addition to conflicts resulting from financial interests, the City Attorney’s office has the authority to decide that the public interest prevents a department head from acting on a matter, even if a financial interest is not affected.
Department heads may not have a financial interest in a City contract if their City duties require them to participate in any way in the contract, from preliminary discussions to execution of the contract.
In the first 12 months of City service, department heads are prohibited from knowingly participating in, making, or attempting to influence a City decision related to a contract if a party to the contract is a person by whom the department head was employed in the 12 months prior to entering City service.
Gifts & Travel
Department heads are prohibited from soliciting or accepting a gift if it is reasonably foreseeable that it could influence them in the performance of their City duties. In addition, they may not solicit or accept a gift of any value from a lobbyist or lobbying firm that is registered to lobby their departments. Registered lobbyists, lobbyist employers, and lobbying firms can be searched and viewed through the Public Data Portal.
Department heads are also prohibited from soliciting or accepting a gift or combination of gifts from a single source that, during a calendar year, exceeds $500. Gifts from a restricted source are more limited. Department heads may never solicit a gift from a restricted source, and the value of all gifts received from a restricted source may not exceed $100 per calendar year.
Personal loans may be considered gifts, unless they are from a commercial lending institution and made in the lender’s regular course of business on terms available to the public, without regard to the department head’s City status.
Generally, department heads may not accept payments for travel or travel-related expenses from sources other than the City. They may never accept free or discounted travel from transportation companies. In addition, gifts of travel are limited in the same way as other gifts, which means they cannot be solicited or accepted from lobbyists and lobbying firms, cannot exceed $100 per year from a restricted source, and cannot exceed $500 per year from any other source. Limited exceptions may apply, depending on the source, the destination, and the purpose of the travel.
Department Heads must report on their statements of economic interests all gifts received from a single source that total $50 or more. Gifts may be tracked with the Gift Journal. If the exact dollar amount of a gift is unknown, the fair market value must be reported.
Limited exceptions apply to the gift laws. In addition, under the Ticket Distribution & Disclosure Policy, tickets to certain types of events are not considered gifts if they are distributed by a City department and other procedural requirements are met.
Misuse of Position
Department heads may not use their positions to create a private advantage or disadvantage for any person. In addition, they may not use or authorize the use of City resources for non-City purposes. They are also prohibited from misusing or disclosing confidential information acquired as a result of their City service.
Outside Employment
Department heads may not engage in outside employment while on City time.
Department heads may not receive outside income unless they obtain prior written approval from their appointing authorities. If the source of income is a restricted source, a department head must also obtain prior written approval from the Ethics Commission. A department head may not receive outside income if doing so would be inconsistent with, incompatible with, in conflict with, or inimical to the department head’s City duties.
A department head’s ability to receive an honorarium is also limited. An honorarium is prohibited if it is from a source identified as a disclosable source for the department head in the department conflict of interests code. If an honorarium is permitted, it is treated like outside income, and a department head must receive prior written approval to accept it.
Political Activity
Department heads may not engage in political activity while on duty for the City or using City resources or facilities. They may not communicate in a manner that implies they are speaking on behalf of the City. They may not solicit campaign contributions from other City personnel, and they may not receive or deliver campaign contributions in City Hall or another City-owned space. Department heads may not use or authorize the use of City facilities or resources for campaign activity.
Revolving Door
Department heads are permanently prohibited from receiving compensation to attempt to influence City action on matters in which they personally and substantially participated during City service. The ban lasts as long as the matter is pending with a City agency or the City is a party to the matter. The ban extends to advising or assisting someone else who attempts to influence action on the matter.
Department heads are also subject to a one-year “cooling off” period, during which they are prohibited from receiving compensation to attempt to influence City action on any matter that is pending with any City department. This prohibition applies whether the department head personally participated in the matter or not.
Department heads may not negotiate future employment or business opportunities with a person (other than a government agency) who has a matter pending with them. In addition, department heads are prohibited from participating in or using their City positions to influence a decision involving the interests of a person with whom they are negotiating or have an agreement regarding future employment or business opportunities.
FREQUENTLY ASKED QUESTIONS
For questions regarding specific scenarios, please contact us prior to taking action.
What interests do I have to report on my statement of economic interests?
Your statement of economic interests includes two disclosure forms. On CA Form 700, you must report your and your spouse’s personal financial interests, including investments, business positions, real property interests, sources of income, gifts, and loans. On Form 60, you must also report personal financial interests that are held by you or your immediate family members and are associated with a restricted source. Commonly reportable interests include stocks, investments in business entities, trusts, rental property, non-governmental salaries, tickets, and travel payments.
When do I have to file a statement of economic interests?
You must file a statement of economic interests (CA Form 700 and Form 60) within 30 days of starting a new City position, annually in the beginning of April while holding the position (covering activity for the prior calendar year), and within 30 days after leaving the position. If you have questions about your specific filing deadlines, please contact us.
Can I volunteer to work on a City candidate’s campaign?
Yes. However, you may not engage in campaign work on City time or use City resources. In addition, you may not do anything that implies that you are speaking on behalf of the City or that the City endorses the candidate.
I am leaving the City and would like to join a consulting firm that helps clients get City projects completed. Can I do that?
You may join a consulting firm after leaving City office, but your activity for that firm is limited. You may not attempt to influence the City regarding any matter in which you personally and substantially participated during City service, and you may not advise anyone else who might attempt to influence the matter. In addition, you are banned from attempting to influence any City matter for one year after you leave City service, whether you were personally involved in it or not.
Can a department head ask someone who has a contract with her department to contribute to a holiday party for the department?
No. The contractor is a restricted source to the department head, and department heads may not solicit gifts from restricted sources.
Can a 501(c)(3) organization pay for a department head’s travel to attend a conference?
Yes, if the conference and travel payments are related to a legislative or governmental purpose or to an issue of public policy. The department head may be required to recuse herself from participating in matters relating to the 501(c)(3) organization for the 12 months following the travel. In addition, the department head must report the travel on the next statement of economic interests. Travel from most other sources is a gift that may be prohibited or subject to an annual limit of either $100 or $500.
A lobbying firm is paying for a dinner to recognize me and other exceptional City staff and has offered me two tickets to the dinner. Can I attend?
Probably not. You may not accept a gift of any value, including a meal or attendance at an event, from a City lobbying firm that is registered to lobby your department. The lobbying firm may recognize you by giving you a personalized plaque valued at $250 or less.
PUBLIC DATA PORTAL
Department heads must create and maintain detailed records that are necessary to show that they have complied with the governmental ethics laws. Records must be maintained for at least four years.
Department heads are required to complete two types of training when they enter City service and every two years thereafter: 1) ethics training provided by the Ethics Commission, and 2) fraud awareness training provided by the Personnel Department.
If you are an attorney licensed in the state of California, you may receive two hours of general participatory MCLE credit for completing the training. To receive MCLE credit, you must submit a completed MCLE request form and certificate of completion to the Office of the City Attorney, using the contact information provided on the form.
There are three types of disclosure required of department heads. Detailed filing requirements can be found under “What Do I File?”.
Statements of Economic Interests
Department heads must periodically file statements of economic interests (SEI) to disclose their personal financial interests. The SEI for department heads includes CA Form 700 (Statement of Economic Interests) and Form 60 (Restricted Source Financial Disclosure Statement). The interests that a department head must disclose are specified in the department conflict of interests code.
City-related Business
Department heads are required to file Form 44 (Statement of City-related Business) when City action affects the following personal financial interests: real or personal property, a City contract, a grant, a loan, a forgiveness of debt, or an application for a license, certificate, permit, franchise, zone change, variance, credential, or other benefit. Form 44 must be filed with the Ethics Commission within 10 calendar days after City action affects one or more of these financial interests if held or sought by the department head, by the department head’s spouse or registered domestic partner, or by a business in which either the department head or the department head’s spouse or registered domestic partner holds an ownership interest of at least five percent.
Department Contracts
Department heads are responsible for filing a Form 63 (Department Contract Quarterly Report) regarding all of their department’s active bidders, contractors, and procurement processes. Those reports are due by April 30, July 31, October 31, and January 31 of each year. The reports are filed electronically through the Department Contract Filing System (DCFS), and each department head must submit Form 62 (Application for DCFS Login ID) to obtain a DCFS identification and password.
Department heads are required by Executive Directive 2006-7 to designate an ethics liaison to coordinate with the Ethics Commission regarding the ethics obligations of the department and its personnel. Among other duties, ethics liaisons help update their departments’ conflict of interests codes and help facilitate compliance with filing Form 700 and Form 60 filings for City officials in their departments.
Conflicts of Interests
Department heads are prohibited from participating in, making, or attempting to influence City decisions that could foreseeably affect their personal financial interests or the personal financial interests of their immediate family members. When such a conflict may exist, they must seek advice from the City Attorney’s office and may be required to recuse themselves from participating in the government decision. In addition to conflicts resulting from financial interests, the City Attorney’s office has the authority to decide that the public interest prevents a department head from acting on a matter, even if a financial interest is not affected.
Department heads may not have a financial interest in a City contract if their City duties require them to participate in any way in the contract, from preliminary discussions to execution of the contract.
In the first 12 months of City service, department heads are prohibited from knowingly participating in, making, or attempting to influence a City decision related to a contract if a party to the contract is a person by whom the department head was employed in the 12 months prior to entering City service.
Gifts & Travel
Department heads are prohibited from soliciting or accepting a gift if it is reasonably foreseeable that it could influence them in the performance of their City duties. In addition, they may not solicit or accept a gift of any value from a lobbyist or lobbying firm that is registered to lobby their departments. Registered lobbyists, lobbyist employers, and lobbying firms can be searched and viewed through the Public Data Portal.
Department heads are also prohibited from soliciting or accepting a gift or combination of gifts from a single source that, during a calendar year, exceeds $500. Gifts from a restricted source are more limited. Department heads may never solicit a gift from a restricted source, and the value of all gifts received from a restricted source may not exceed $100 per calendar year.
Personal loans may be considered gifts, unless they are from a commercial lending institution and made in the lender’s regular course of business on terms available to the public, without regard to the department head’s City status.
Generally, department heads may not accept payments for travel or travel-related expenses from sources other than the City. They may never accept free or discounted travel from transportation companies. In addition, gifts of travel are limited in the same way as other gifts, which means they cannot be solicited or accepted from lobbyists and lobbying firms, cannot exceed $100 per year from a restricted source, and cannot exceed $500 per year from any other source. Limited exceptions may apply, depending on the source, the destination, and the purpose of the travel.
Department Heads must report on their statements of economic interests all gifts received from a single source that total $50 or more. Gifts may be tracked with the Gift Journal. If the exact dollar amount of a gift is unknown, the fair market value must be reported.
Limited exceptions apply to the gift laws. In addition, under the Ticket Distribution & Disclosure Policy, tickets to certain types of events are not considered gifts if they are distributed by a City department and other procedural requirements are met.
Misuse of Position
Department heads may not use their positions to create a private advantage or disadvantage for any person. In addition, they may not use or authorize the use of City resources for non-City purposes. They are also prohibited from misusing or disclosing confidential information acquired as a result of their City service.
Outside Employment
Department heads may not engage in outside employment while on City time.
Department heads may not receive outside income unless they obtain prior written approval from their appointing authorities. If the source of income is a restricted source, a department head must also obtain prior written approval from the Ethics Commission. A department head may not receive outside income if doing so would be inconsistent with, incompatible with, in conflict with, or inimical to the department head’s City duties.
A department head’s ability to receive an honorarium is also limited. An honorarium is prohibited if it is from a source identified as a disclosable source for the department head in the department conflict of interests code. If an honorarium is permitted, it is treated like outside income, and a department head must receive prior written approval to accept it.
Political Activity
Department heads may not engage in political activity while on duty for the City or using City resources or facilities. They may not communicate in a manner that implies they are speaking on behalf of the City. They may not solicit campaign contributions from other City personnel, and they may not receive or deliver campaign contributions in City Hall or another City-owned space. Department heads may not use or authorize the use of City facilities or resources for campaign activity.
Revolving Door
Department heads are permanently prohibited from receiving compensation to attempt to influence City action on matters in which they personally and substantially participated during City service. The ban lasts as long as the matter is pending with a City agency or the City is a party to the matter. The ban extends to advising or assisting someone else who attempts to influence action on the matter.
Department heads are also subject to a one-year “cooling off” period, during which they are prohibited from receiving compensation to attempt to influence City action on any matter that is pending with any City department. This prohibition applies whether the department head personally participated in the matter or not.
Department heads may not negotiate future employment or business opportunities with a person (other than a government agency) who has a matter pending with them. In addition, department heads are prohibited from participating in or using their City positions to influence a decision involving the interests of a person with whom they are negotiating or have an agreement regarding future employment or business opportunities.
For questions regarding specific scenarios, please contact us prior to taking action.
What interests do I have to report on my statement of economic interests?
Your statement of economic interests includes two disclosure forms. On CA Form 700, you must report your and your spouse’s personal financial interests, including investments, business positions, real property interests, sources of income, gifts, and loans. On Form 60, you must also report personal financial interests that are held by you or your immediate family members and are associated with a restricted source. Commonly reportable interests include stocks, investments in business entities, trusts, rental property, non-governmental salaries, tickets, and travel payments.
When do I have to file a statement of economic interests?
You must file a statement of economic interests (CA Form 700 and Form 60) within 30 days of starting a new City position, annually in the beginning of April while holding the position (covering activity for the prior calendar year), and within 30 days after leaving the position. If you have questions about your specific filing deadlines, please contact us.
Can I volunteer to work on a City candidate’s campaign?
Yes. However, you may not engage in campaign work on City time or use City resources. In addition, you may not do anything that implies that you are speaking on behalf of the City or that the City endorses the candidate.
I am leaving the City and would like to join a consulting firm that helps clients get City projects completed. Can I do that?
You may join a consulting firm after leaving City office, but your activity for that firm is limited. You may not attempt to influence the City regarding any matter in which you personally and substantially participated during City service, and you may not advise anyone else who might attempt to influence the matter. In addition, you are banned from attempting to influence any City matter for one year after you leave City service, whether you were personally involved in it or not.
Can a department head ask someone who has a contract with her department to contribute to a holiday party for the department?
No. The contractor is a restricted source to the department head, and department heads may not solicit gifts from restricted sources.
Can a 501(c)(3) organization pay for a department head’s travel to attend a conference?
Yes, if the conference and travel payments are related to a legislative or governmental purpose or to an issue of public policy. The department head may be required to recuse herself from participating in matters relating to the 501(c)(3) organization for the 12 months following the travel. In addition, the department head must report the travel on the next statement of economic interests. Travel from most other sources is a gift that may be prohibited or subject to an annual limit of either $100 or $500.
A lobbying firm is paying for a dinner to recognize me and other exceptional City staff and has offered me two tickets to the dinner. Can I attend?
Probably not. You may not accept a gift of any value, including a meal or attendance at an event, from a City lobbying firm that is registered to lobby your department. The lobbying firm may recognize you by giving you a personalized plaque valued at $250 or less.
