BALLOT TITLE AND SUMMARY
Prepared by the City Attorney

AN INITIATIVE AMENDING THE CITY CHARTER TO PROHIBIT PUBLIC OFFICIALS FROM RECEIVING SPECIFIED GIFTS AND PERSONAL BENEFITS FROM THOSE TO WHOM THEY HAVE AWARDED CERTAIN PUBLIC CONTRACTS AND OTHER BENEFITS WITHIN A DESIGNATED PERIOD

 



This initiative would amend the Santa Monica City Charter by adding a provision prohibiting a public official from receiving a personal benefit from someone after acting to award a public contract or benefit to that person.  The initiative applies to elected or appointed public officials exercising discretion in an official capacity.  It applies whether the official acts on behalf of the city or a public agency, such as a redevelopment agency.

Specifically, after an official exercises discretion to approve the allocation of a "public benefit" to a particular recipient, that official would not be allowed to receive a "personal or campaign advantage" from the recipient for a stated time period.  The initiative defines the term "public benefit" as any contact, benefit or arrangement between the City and any person or entity to provide services or goods or lease rental property with a value in excess of $25,000 over a 12 month period, to buy or sell real property with a value in excess of $25,000, to receive a franchise award for which gross revenue exceeds $50,000 in any 12 month period, to confer a tax benefit exceeding $5,000 in any 12 month period, or to receive cash or the equivalent specie with a net value exceeding $10,000 in any 12 month period.  The initiative defines the term "personal or campaign advantage" as including any personal benefit or gift worth more than $50, any employment for compensation, and any campaign contribution for any elective office sought by the official.  When the public benefit is allocated to an entity, such as a corporation, the prohibition applies to personal benefits received from a person who had a 10% interest in the entity or who was a trustee, director, partner, or officer of the entity when the public benefit was received by or accrued to the entity.

The prohibition against officials receiving gifts from recipients of public benefits would run for two years after the expiration of the term when the official acted to allocate the public benefit, two years after the official's departure from office, or six years from the date the official acted to approve the allocation, whichever is first.

The measure established both criminal and civil remedies.  Willful violations would be misdemeanors.  City residents would be authorized to bring civil enforcement actions.  Civil remedies include a penalty of up to five times the value of the personal benefit received, restitution of the benefit to the City's general fund, injunctive relief against future violations, and disqualification from future public office in the City in the case of willful, egregious, or repeated violations.  A resident who prevailed in a civil suit would be entitled to reasonable attorney's fees and costs and 10% of any civil penalties, with the balance going to the City's general fund.

The initiative would also require officials to "practice due diligence" in ascertaining whether public benefits have been conferred and to monitor receipt of personal benefits so that benefits received in violation of the provision would be returned immediately or no later than ten days after receipt.  Additionally, the initiative would require the City to give notice of the measure to those competing for public benefits and would also require "public officials" to provide the names of all recipients of public benefits upon request.

Argument in Favor of

Argument Against

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