Executive order on Gifts #10-16

1. Executive order on Gifts #10-16 Presented by Krystle Baker, deputy chief integrity Officer

2. Chief Integrity Officer Re-established by Executive Order on January 4, 2016. Prevent, Educate, Reform • Core Purpose: • To uphold the public’s trust by ensuring that the City operates with fairness and integrity, uncompromised by conflicts of interest, political affiliation, favoritism, or other unfair considerations. • Jurisdiction over departments/contractors in the Executive and Administrative Branch • Main Issue Areas: • Gifts • Contracts/Grants/Leases • Use/disposition of City property • Transparency in government operations • “Grey areas” – legal but there is an appearance of impropriety

3. Gifts executive order #10-16: quick background • Signed by Mayor Kenney on October 26, 2016 • New Executive Order replaced Executive Order #3-11 • Executive Order #10-16 applies to all employees in the Executive & Administrative Branch of government and somemembers of City boards/commissions (when Mayor has appointment & removal authority)

5. A Few Other Things on the Executive Order • The Chief Integrity Officer is authorized to provide guidance or issue waivers to the Executive Order • For gifts that must be returned, the Executive Order provides instructions • Includes potential penalties for those who violate the Executive Order, including discipline of employees or debarment of City contractors • Always ask for advice BEFORE you accept a gift!

6. What is a gift? • Anything of value given to, or for the benefit of, a City officer or employee • Payment • Invitation • Food and Drink • Travel and Lodging • Conference Fees • An item is not considered a Gift if: • It’s from a close family member • A political contribution • Commercially reasonable loan made in the ordinary course of business (e.g., home mortgage)

7. What is a prohibited source? • A Registered Lobbyist • Any person who in the 12 months leading up to the gift-giving: • Is seeking/has sought official action from you • Has operations or activities regulated by your department (for Cabinet members, this includes all departments in the Executive & Administrative branch) • Has a financial or other substantial interest in the acts or omissions you are able to take through official action • Your supervisors are also considered a prohibited source, but your subordinates are not prohibited sources • Supervisors can provide subordinates with a gift that is not extravagant

8. OTHER limitations • Executive Order also prohibits cash gifts (including gift cards) from prohibited sources with limited exceptions • No gratuities (aka tips) • No honorarium and cannot direct honorarium to another source, e.g., a charity

9. Exceptions When accepting a gift from a prohibited source is permissible: Items of little intrinsic value offered on the occasion of a public appearance, visit, presentation, etc. Gifts resulting solely from life partner’s/spouse’s employment activities when you are the “plus one” Gifts resulting solely from membership in a bona fide charitable, professional, labor, etc. organization if given to same class of members Perishable gifts (must be shared, destroyed, donated within 3 days – send “thanks but no thanks” note to donor) • Public receptions • Promotional offers of discounted goods, etc. when offered to large group (e.g., entire department) • Attendance, entertainment, food, etc. at a major life event of a friend (no cash gifts or gifts over $99) • Wedding, Baby Shower, Retirement, etc. • Light refreshments at a meeting when on-site at meeting and not at a restaurant • Gifts from government entities • Gifts to the City

10. More on “gifts to the City” • These are gifts that: • Have a legitimate governmental purpose • Cannot be returned to the donor for practical reasons (e.g., too cost-prohibitive to return) • Are received from an anonymous donor • Are donated in response to a solicitation of contributions to further the goals or initiatives of the Executive & Administrative Branch • Can be accepted under certain circumstances • Contact the Chief Integrity Office for more information

11. Case study #1 Example provided by boe Applying executive order Executive Order applies to L&I employees Gift? Absolutely – Tickets are a gift Prohibited Source? YES Seeking action from Inspector Has activities regulated by employee’s department Exceptions apply? NO • Offered four club box seats to L&I employee while attempting to get the inspector to lift a stop work order

12. Case study #2 scenario Applying executive order Gift? YES Paid attendance at a conference considered a gift Prohibited Source? YES Employee participated in selection committee Vendor sought official action from you in last 12 months Exception? MAYBE Gift to the City – legitimate governmental purpose for employee to attend? Reach out to the CIO for guidance Requires written approval from supervisor • Recently participated in selection of vendor that offers a prestigious legal conference each year • Vendor also offering scholarships to attend conference • Can this employee apply for a scholarship?

13. Questions? Need Advice?