HomeMy WebLinkAboutSSAP032116CITY OF CENTRAL POINT
Study Session
March 21, 2016
I. REGULAR MEETING CALLED TO ORDER – 6:00 P.M.
II. DISCUSSION ITEMS
A. Oregon Government Ethics Law
III. ADJOURNMENT
WORK SESSIONS ARE INTENDED FOR DISCUSSION. NO ACTION WILL BE TAKEN
ON THE AGENDA ITEMS AND NO DECISIONS WILL BE MADE. NO ORAL OR
WRITTEN TESTIMONY WILL BE HEARD OR RECEIVED FROM THE PUBLIC.
Individuals needing special accommodations such as sign language, foreign language interpreters or equipment for the hearing impaired must request such services at least 72 hours prior to the City Council meeting. To make your request, please contact the City Recorder at 541-423-1026 (voice), or by e-mail at: Deanna.casey@centralpointoregon.gov . Si necesita traductor en español o servicios de discapacidades (ADA) para asistir a una junta publica de la ciudad por favor llame con 72 horas de anticipación al 541-664-3321 ext. 201
Central Point
City Hall
541-664-3321
City Council
Mayor Hank Williams
Ward I Bruce Dingler
Ward II Michael Quilty
Ward III Brandon Thueson
Ward IV Allen Broderick
At Large Rick Samuelson Taneea Browning
Administration Chris Clayton, City Manager Deanna Casey, City Recorder
Community Development Tom Humphrey, Director
Finance Bev Adams, Director
Human Resources Elizabeth Simas, Director
Parks and Public Works Matt Samitore, Director Jennifer Boardman, Manager
Police Kris Allison Chief
Oregon Government Ethics Law
Oregon Government Ethics Commission
3218 Pringle Rd. SE, Suite 220
Salem, OR 97302-1544
Telephone: 503-378-5105
Fax: 503-373-1456
Web address: www.oregon.gov/ogec
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About the Commission
The Oregon Government Ethics Commission (OGEC), established by vote of the people
in 1974, is a seven-member citizen commission (though HB 2019 (2015) will increase
the number of commission members to nine) charged with enforcing government ethics
laws.
Oregon government ethics laws prohibit public officials from using office for financial
gain, and require public disclosure of economic conflict of interest. The OGEC also
enforces state laws that require lobbyists and the entities they represent to register and
periodically report their expenditures. The third area of OGEC jurisdiction is the
executive session provisions of public meetings law.
Am I a “public official”?
The answer is yes if you are serving the State of Oregon or any of its political
subdivisions or any other public body, as an elected official, appointed official,
employee, agent or otherwise, irrespective of whether you are compensated for
services [ORS 244.020(15)].
What you need to know if you are a public official:
The provisions in Oregon Government Ethics law restrict some choices, decisions or
actions a public official may make. The restrictions placed on public officials are
different than those placed on private citizens because service as a public office is a
public trust and provisions in ORS Chapter 244 were enacted to provide one safeguard
for that trust.
Public officials are prohibited from using or attempting to use their positions to
gain a financial benefit or to avoid a financial cost for themselves, a relative, or
their businesses if the opportunity is available only because of the position held
by the public official [ORS 244.040(1)].
There are conditions that must be met before a public official may accept a gift
and in some cases, there are limits on the value of gifts that can be accepted.
Certain public officials are required to file reports that disclose some of the gifts
accepted and the specific economic interests.
When met with a conflict of interest, a public official must follow specific
procedures to disclose the nature of the conflict. There are also restrictions on
certain types of employment subsequent to public employment and on nepotism.
This handout will discuss how the provisions in ORS Chapter 244 apply to public
officials and will summarize Commission procedures. It should be used in conjunction
with applicable statutes and rules. This guide should not be used as a substitute for a
review of the specific statutes and rules.
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You will find links to ORS Chapter 244, and relevant Oregon Administrative Rules
(OAR), and other publications referenced in this guide on the Commission’s website at
www.oregon.gov/ogec. Questions or comments may be submitted to the Commission
by email at ogec.mail@state.or.us, by Fax to 503-373-1456 or by telephone to 503-378-
5105.
Are you a public official?
“Public official” is defined in ORS 244.020(15) as any person who, when an alleged
violation of this chapter occurs, is serving the State of Oregon or any of its political
subdivisions or any other public body as defined in ORS 174.109 as an elected official,
appointed official, employee or agent, irrespective of whether the person is
compensated for the services.
There are approximately 200,000 public officials in Oregon. You are a public official if
you are:
Elected or appointed to an office or position with a state, county or city
government.
Elected or appointed to an office or position with a special district.
An employee of a state, county or city agency or special district.
An unpaid volunteer for a state, county or city agency or special district.
Anyone serving the State of Oregon or any of its political subdivisions, such as
the State Accident Insurance Fund or the Oregon Health Sciences University.
“As defined in ORS 244.020(15), a public official includes anyone serving the State of
Oregon or any of its political subdivisions or any other public body in any of the listed
capacities, including as an “agent.” An “agent” means any individual performing
governmental functions. Governmental functions are services provided on behalf of the
government as distinguished from services provided to the government. This may
include private contractors and volunteers, depending on the circumstances. This term
shall be interpreted to be consistent with Attorney General Opinion No. 8214 (1990).”
The Commission has adopted, by rule, additional language used to clarify the use of
“agent” in the definition of “public official” in the following OAR 199-005-0035(7).
My position as a ______________________________________ defines me as a public
official.
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What does a public official need to know about relatives?
Public officials need to know how Oregon Government Ethics law defines who is a
“relative”. While a public official should exercise sound judgment when participating in
actions that could result in personal financial benefits, a public official should also
exercise sound judgment when participating in actions could result in financial benefits
for a relative.
There are provisions in ORS Chapter 244 that restrict or prohibit a public official from
using actions of the position held to benefit a relative; or may limit the value of financial
benefits accepted by a relative of the public official or may require the public official to
disclose the nature of a conflict of interest when a relative may receive a financial
benefit.
In everyday conversation the use of “relative” is applied to a broader spectrum of
individuals with “family ties” than those defined as relatives in ORS 244.020(16). In
general, when a provision in ORS Chapter 244 refers to “relative” it means one of the
following:
The spouse, parent, stepparent, child, sibling, stepsibling, son-in-law or
daughter-in-law of the public official or candidate
The parent, stepparent, child, sibling, stepsibling, son-in-law or daughter-in-law of
the spouse of the public official or candidate
Person for whom the public official or candidate have a legal support obligation
Person benefiting from a public official when benefits are from the public official’s
public employment
Person who benefits a public official or candidate when benefits are from the
person’s employment
I have approximately ________ relatives as defined by statute.
ORS Chapter 244 does address the issue of nepotism. Nepotism, as used in ORS
Chapter 244, is based on the relative relationship, as well as other members of the
public official’s household. Changes to Oregon Government Ethics law passed by the
2013 Legislative Assembly mean that the definitions for “relative” in ORS 244.020(16),
and “member of household” in ORS 244.010(11), now apply to these nepotism
regulations as well.
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If I am a volunteer, does that make me a public official?
If the position for which you have volunteered serves the State of Oregon or any of its
political subdivisions or any other public body, “irrespective of whether” you are
“compensated” you are a public official.
Volunteers may be elected, appointed or selected by the government agency or public
body to hold a position or office or to provide services.
Among the public officials who volunteer are elected or appointed members of
governing bodies of state boards or commissions, city councils, planning commissions,
fire districts, school districts and many others. There are also many who apply and are
selected to perform duties for a government agency, board or commission without
compensation, such as fire fighters, reserve law enforcement officers and parks or
recreation staff members.
The Commission recognizes that there are many who volunteer to work without
compensation for many state and local government agencies, boards, commissions and
special districts.
I am a ___________________________________ volunteer.
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Financial Gain
What are the provisions in the law that prohibits a public official from using the position
or office held for financial gain?
Public officials become public officials through employment, appointment, election or
volunteering. ORS 244.040(1) prohibits every public official from using or attempting to
use the position held as a public official to obtain a financial benefit, if the opportunity for
the financial benefit would not otherwise be available but for the position held by the
public official. The financial benefit prohibited can be either an opportunity for gain or to
avoid an expense.
Not only is a public official prohibited from using the position as a public official to
receive certain financial benefits, but the public official is prohibited from using or
attempting to use the position as a public official to obtain financial benefits for a relative
or a member of the public official’s household. Also prohibited is the use or attempted
use of the public official position to obtain financial benefits for a business with which
either the public official, a relative or a member of the public official’s household are
associated.
Public officials often have access to or manage information that is confidential and not
available to members of the general public. ORS 244.040(4) specifically prohibits public
officials from attempting to use confidential information gained because of the position
held or by carrying out assigned duties to further the public official’s personal gain.
ORS 244.040(5) also prohibits a former public official from attempting to use
confidential information for personal gain if that confidential information was obtained
while holding the position as a public official, from which access to the confidential
information was obtained.
ORS 244.040(6) also has a single provision to address circumstances created when
public officials who are members of the governing body of a public body own or are
associated with a specific type of business. The type of business is one that may
occasionally send a representative of the business who appears before the governing
body on behalf of a client for a fee. Public officials who are members of governing
bodies and own or are employed by businesses, such as a law, engineering or
architectural firms, may encounter circumstances in which this provision may apply.
There a variety of actions that a public official may take or participate in that could
constitute the prohibited use or attempted use of the public official position. The use of
a position could be voting in a public meeting, placing a signature on a government
agency’s document, making a recommendation, making a purchase with government
agency funds, conducting personal business on a government agency’s time or with a
government agency’s resources [i.e. computers, vehicles, heavy equipment or office
machines].
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NOTES:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Are there any circumstances in which a public official may use their position to accept
financial benefits that would not otherwise be available but for holding the position as a
public official?
Yes, ORS 244.040(2) provides a list of financial benefits that would not otherwise be
available to public officials but for holding the position as a public official. The following
financial benefits are not prohibited and may be accepted by a public official and some
may also be accepted by a public official’s relative or member of the public official’s
household:
Official Compensation: Public officials may accept any financial benefit that is identified
by the public body served by the public official as part of the “official compensation
package” of the public official. If the public body identifies such salary, health insurance
or various paid allowances in the employment agreement or contract of a public official,
those financial benefits are part of the “official compensation package” [ORS
244.040(2)(a)].
OAR 199-005-0035(3) provides a definition of “official compensation package:”
An “official compensation package” means the wages and other benefits provided to the
public official. To be part of the public official's “official compensation package”, the
wages and benefits must have been specifically approved by the public body in a formal
manner, such as through a union contract, an employment contract, or other adopted
personnel policies that apply generally to employees or other public officials. “Official
compensation package” also includes the direct payment of a public official's expenses
by the public body, in accordance with the public body's policies.
Reimbursement of Expenses: A public official may accept payments from the public
official’s public body as reimbursement for expenses the public official has personally
paid while conducting the public body’s business [ORS 244.040(2)(c)].
The Commission has provided a definition in OAR 199-005-0035(4): “‘reimbursement of
expenses’ means the payment by a public body to a public official serving that public
body, of expenses incurred in the conduct of official duties on behalf of the public body.
Any such repayment must comply with any applicable laws and policies governing the
eligibility of such repayment.”
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Honorarium: Public officials are allowed to accept honorarium by ORS 244.040(2)(b) as it
is defined in ORS 244.020(8). A public official must know how honorarium is defined
because there are many occasions where someone will offer them a financial benefit
and call it an honorarium, but it does not meet the definition of honorarium.
A payment or something of economic value given to a public official in exchange for
services provided by the public official is an honorarium when the setting of the
economic value has been prevented by custom or propriety. The services provided by
a public official may include but not be limited to speeches or other services provided in
connection with an event.
The limitation for honorarium is $50.
Awards for Professional Achievement: Public officials may accept an award, if the
public official has not solicited the award, and the award is offered to recognize an
achievement of the public official [ORS 244.040(2)(d)].
Awards for professional achievement should not be confused with awards of
appreciation, allowed by ORS 244.020(7)(b)(C), honorarium allowed by ORS
244.040(2)(b) or gifts that are allowed or restricted by other provisions in ORS Chapter
244.
Awards for professional achievement are best illustrated by awards that denote national
or international recognition of a public official’s achievement. These awards may also
be offered by public or private organizations in the state that are meant to recognize a
public official for an achievement. Professional achievements recognized may be
identified as a single accomplishment or an accomplishment achieved during a period of
time, such as a calendar year or a public official’s career upon retirement. Public
officials may be educators, lawyers, certified public accountants or hold a doctorate in
some field. These public officials may receive awards recognizing achievements in their
fields and those awards would be considered by the Commission to be awards allowed
by ORS 244.040(2)(d).
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Gifts
There are occasions when public officials can accept gifts and Oregon Government
Ethics law does not limit the quantity or value of gifts, but there are other occasions
when the acceptance of gifts is limited to an aggregate value of $50 from a single
source in each calendar year [ORS 244.025].
When Oregon Government Ethics law uses the word “gift” it has the meaning in ORS
244.020(7)(a):
“‘Gift’ means something of economic value given to a public official, a candidate or a
relative or member of the household of the public official or candidate:
(a) Without valuable consideration of equivalent value, including the full or partial
forgiveness of indebtedness, which is not extended to others who are not public
officials or candidates or the relatives or members of the household of public officials
or candidates on the same terms and conditions; or
(b) For valuable consideration less than that required from others who are not public
officials or candidates.” In other words, a “gift” is something of economic value that
is offered to:
A public official or candidate or to relatives or members of the household of a
public official or candidate,
o Without cost, at a discount or as forgiven debt and,
o The same offer is not made or available to the general public who are not
public officials or candidates.
To know whether gifts from a single source are limited or unlimited you must determine
if the decisions or votes of the public official, who is offered a gift, would have a distinct
economic impact on the source making the offer. If the source of the offer would
receive a financial gain or avoid a financial cost from the decisions or votes of a public
official, gifts from that source to that public official would be limited as to the aggregate
value of gifts accepted from that source in a calendar year. This economic interest is a
pivotal factor in determining the propriety of gifts and is found in the expression
“legislative or administrative interest” which is defined in ORS 244.020(10) and is used
in ORS Chapter 244, primarily, when applying the provisions regarding gifts accepted
by public officials.
While a “gift” is defined in ORS 244.020(7)(a), ORS 244.020(7)(b), identifies specific
gifts that are exempt from gift restrictions if the offers are made or accepted in the
specific circumstances and conditions described.
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What does a public official need to know about a “Legislative or Administrative Interest”
[ORS 244.020(10)]?
Beginning in 2010, the change to the definition of what is a legislative or administrative
interest represents one of the most significant changes made in Oregon Government
Ethics law during the last session of the Oregon Legislative Assembly.
The change is significant because knowing if the source of a gift offered to a public
official has a legislative or administrative interest determines whether or not the gift
offered is allowed or restricted. Before this change, a public official only had to know if
a gift was offered from a source with a legislative or administrative interest in the public
official’s governmental agency, but now the focus is on the vote or decision of each
individual public official. The change places greater responsibility on the individual
public official to decide if a gift offered is restricted by ORS Chapter 244. The definition
of a legislative or administrative interest is provided in ORS 244.020(10) as follows:
“‘Legislative or administrative interest’ means an economic interest, distinct from that of
the general public, in:
(a) Any matter subject to the decision or vote of the public official acting in the public
official’s capacity as a public official; or
(b) Any matter that would be subject to the decision or vote of the candidate who, if
elected, would be acting in the capacity of a public official.”
In the context of gifts offered to or accepted by a public official or candidate, the public
official or candidate must determine if the source of the offered gift has a legislative or
administrative interest in the decision or vote of the public official or candidate, if
elected. In applying the phrase “legislative or administrative interest,” there are several
factors to consider:
Source: The Commission adopted a rule [OAR 199-005-0030(2)] that identifies the
source of a gift is the person or entity that makes the ultimate and final payment of the
gift’s expense. OAR 199-005-0030 also places on the public official the burden of
knowing the identity of the source and insuring that the aggregate value in ORS
244.025 is not exceeded.
Distinct from that of the general public: This phrase refers to an economic interest
and in the context of gifts the economic interest of the source of a gift. The economic
interest is whether a vote or decision by a public official would result in a financial gain
or a financial detriment to the party who holds the interest. There are many votes or
decisions made by public officials that have the same general economic impact on all
members of the general public. Income or property tax rates would be examples.
There are other decisions or votes that have an economic impact on specific persons,
businesses or groups that are not experienced by members of the general public alike.
To illustrate, private contractors have an economic interest in a public body’s authority
to award contracts and that economic interest is distinct from the economic interest held
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by members of the general public in the contracting authority of a public body. Also,
real estate developers would have an economic interest in a public body’s authority to
approve subdivision applications and that economic interest is distinct from the
economic interest held by members of the general public in the approval authority of a
public body.
Vote: This has the common meaning of to vote as an elected member of a governing
body of a public body or as a member of a committee, commission or board appointed
by a governing body, Oregon Legislative Assembly or the Office of the Governor.
Decision: The Commission defines the term “decision” in OAR 199-005-0003(2). A
public official makes a decision when the public official exercises the authority given to
the public official to commit the public body to a particular course of action. Making a
recommendation or giving advice in an advisory capacity does not constitute a decision.
The change to the definition of a legislative or administrative interest places the focus
on the decision or vote of each individual public official. That means that any decision
to accept or reject the offer of a gift must be made individually by each public official. It
also means that there will be some public officials who may accept unlimited gifts from a
source and other public officials within the same public body that would have restrictions
on gifts from that same source because not all public officials in the same public body
have similar responsibilities that would require any or similar decisions or votes.
If the source of the offer of a gift to a public official does not have a legislative or
administrative interest in the decisions or votes of the public official, the public official
can accept unlimited gifts from that source. [ORS 244.040(2)(f)] However, if the source
of the offer of a gift to a public official has a legislative or administrative interest in the
decisions or votes of the public official, the public official can only accept gifts from that
source when the aggregate value of gifts from that source does not exceed $50 in a
calendar year [ORS 244.025].
While gifts from a source with a legislative or administrative interest in the decisions or
votes of a public official are limited, there are some gifts that are exempt from the
definition of what is a “gift.” If the offer of a gift is exempt from the definition of a “gift,”
the offer may be accepted by a public official. The value of gifts that are allowed as
exemptions does not have to be included when calculating the aggregate value of gifts
received from that source in one calendar year.
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There are gifts that are allowed because when offered under specific conditions and
within certain circumstances the gifts are exempt from the definition of a “gift.” ORS
244.020(7)(b) provides a description of gifts that are allowed. If you are a public official
accepting gifts or a source offering gifts it is important you become familiar with the
requirements that may apply to you.
The following GIFTS ARE ALLOWED as exemptions to the definition of what is a “gift”:
Campaign contributions as defined in ORS 260.005 [ORS 244.020(7)(b)(A)].
Contributions to a legal expense trust fund established under ORS 244.209 [ORS
244.020(7)(b)(G)].
Gifts from relatives or members of the household of public officials or candidates
[ORS 244.020(7)(b)(B)].
Anything of economic value received by a public official or candidate, their
relatives or members of their household when:
o The receiving is part of the usual and customary practice of the person’s
business, employment, or volunteer position with any legal non-profit or for-
profit entity [ORS 244.020(7)(b)(O)(i)].
o The receiving bears no relationship to the person’s holding the official position
or public office [ORS 244.020(7)(b)(O)(ii)].
Unsolicited gifts with a resale value of less than $25 and in the form of items
similar to a token, plaque, trophy and desk or wall mementos [ORS
244.020(7)(b)(C) and see resale value discussed in OAR199-005-0010].
Publications, subscriptions or other informational material related to the public
official’s duties [ORS 244.020(7)(b)(D)].
Waivers or discounts for registration fees or materials related to continuing
education or to satisfy a professional licensing requirement for a public official or
candidate [ORS 244.020(7)(b)(J)].
Entertainment for a public official or candidate and their relatives or members of
their households when the entertainment is incidental to the main purpose of the
event [ORS 244.020(7)(b)(M) and see “incidental” defined in OAR199-005-
0025(1)].
Entertainment for a public official, a relative of the public official or a member of
the public official’s household when the public official is acting in an official
capacity and representing a governing agency for a ceremonial purpose [ORS
244.020(7)(b)(N) and see “ceremonial” defined in OAR199-005-0025(2)].
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Cost of admission or food and beverage consumed by the public official, a
relative, household member, or staff member when accompanying the public
official, who is representing government (state, local or special district), at a
reception, meal or meeting held by an organization [ORS 244.020(7)(b)(E) and
the accompanying discussion in OAR199-005-0015].
Food or beverage consumed by a public official or candidate at a reception
where the food and beverage is an incidental part of the reception and there was
no admission charged [ORS 244.020(7)(b)(L) and the accompanying discussion
in OAR199-005-0025(1)].
When public officials travel together inside the state to an event bearing a
relationship to the office held and the public official appears in an official
capacity, a public official may accept the travel related expenses paid by the
accompanying public official [ORS 244.020(7)(b)(K)].
Payment of reasonable expenses if a public official is scheduled to speak, make
a presentation, participate on a panel or represent a government agency at a
convention, conference, fact-finding trip or other meeting. The paid expenses for
this exception can only be accepted from another government agency, Native
American Tribe, an organization to which a public body pays membership dues
or not-for-profit organizations that are tax exempt under 501(c)(3) [ORS
244.020(7)(b)(F) and see definition of terms for this exception in OAR 199-005-
0020].
Payment of reasonable food, lodging or travel expenses for a public official, a
relative of the public official or a member of the public official’s household or staff
may be accepted when the public official is representing the government agency
or special district at one of the following:
o Officially sanctioned trade promotion or fact-finding mission; [ORS
244.020(7)(b)(H)(i)]
o Officially designated negotiation or economic development activity when
receipt has been approved in advance [ORS 244.020(7)(b)(H)(ii). Defined
terms and an explanation of how and who may officially sanction or designate
these events are addressed in OAR 199-005-0020(1)(b)(B).]
Payment of reasonable expenses paid to a public school employee for accompanying
students on an educational trip [ORS 244.020(7)(b)(P)].
Food and beverage when acting in an official capacity in the following circumstances:
o In association with a financial transaction or business agreement between a
government agency and another public body or a private entity, including such
actions as a review, approval or execution of documents or closing a borrowing
or investment transaction [ORS 244.020(7)(b)(I)(i)];
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o While engaged in due diligence research or presentations by the office of the
State Treasurer related to an existing or proposed investment or borrowing
[ORS 244.020(7)(b)(I)(ii)]; or
o While engaged in a meeting of an advisory, governance or policy-making
body of a corporation, partnership or other entity in which the office of the
State Treasurer has invested moneys [ORS 244.020(7)(b)(I)(iii)].
The last gift I received was from _____________________________. The source of this
offer is / is not economically affected by my decisions or votes as a public official.
Gifts vs. Prohibited Use of Position
In understanding issues related to gifts, the operative definition of a “gift” is used in
deciding how Oregon Government Ethics law would apply to a gift offered to or
accepted by a public official or candidate. The application of the gift provisions
regarding candidates is not included in this discussion. The following is a paraphrase of
the definition taken from ORS 244.020(7)(a):
Gift: “Something of economic value” given to a public official, a relative of the public
official or a member of the public official’s household and the recipient either makes no
payment or makes payment at a discounted price. The opportunity for the gift is one
that is not available to members of the general public, who are not public officials,
under the same terms and conditions as those that apply to the gift offered to the
public official, the relative or a member of the household.
The definition of a “gift” has remained much the same since Oregon Government Ethics
law was enacted. Originally, the law prohibited the offer or acceptance of any gifts; it
allowed some gifts and for others it imposed limits on the aggregate value on gifts that
could be accepted. With the recent revisions, Oregon Government Ethics law does not
prohibit gifts but does place conditions on when some gifts may be accepted and for
other gifts there is a limit on the aggregate value that can be accepted.
The primary focus of ORS 244.040(1) is on the use or attempted use of the position
held by the public official and not on whether a gift is accepted by a public official.
However, accepting gifts that would not be available “but for” holding a position as a
public official could represent a prohibited financial benefit.
The financial benefit prohibited by ORS 244.040(1) is one obtained by a public official
through the use or attempted use of a position or office held. The prohibited benefit
may be gained through the public official’s access to and use of the public body’s
resources.
The financial benefit may take several forms. It may be the avoidance of a personal
expense, money, extra income from private employment, creation of a new employment
opportunity or the use of confidential information for financial gain.
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Gifts, on the other hand, are not received by a public official, primarily, because of the
public official’s use of a public body’s resources, but because gifts are offered by
sources other than the public official’s government employer or the public body
represented by the public official. Sources of gifts are private individuals, businesses or
organizations; they are public bodies that are not the employer of or represented by the
public official. Sources of gifts may also be employees of the same public body of the
public official and they offer gifts acquired with their personal resources, not the public
body’s resources. If something of economic value is received from the employer of or
the public body represented by a public official, that “something” is not a gift, it is a
financial benefit either allowed or prohibited by ORS 244.040.
Conflict of Interest
Oregon Government Ethics law defines actual conflict of interest [ORS 244.020(1)]
and potential conflict of interest [ORS 244.020(13)]. In brief, a public official is met
with a conflict of interest when participating in official action which could result in a
financial benefit or detriment to the public official, a relative of the public official or a
business with which either are associated.
The difference between an actual conflict of interest and a potential conflict of
interest is determined by the words “would” and “could.” A public official is met
with an actual conflict of interest when the public official participates in action that
would affect the financial interest of the official, the official’s relative or a business with
which the official or a relative of the official is associated. A public official is met with a
potential conflict of interest when the public official participates in action that could
affect the financial interest of the official, a relative of that official or a business with
which the official or the relative of that official is associated.
Questions to ask yourself:
I own a business that my public body does business with. Yes / No
I have a relative that owns a business that my public body does business with. Yes / No
A member of my household owns a business that my public body does business with.
Yes / No
I have identified ________ a business or businesses with which I, my relatives and
members of my household are associated.
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What if I am met with a conflict of interest?
A public official must announce or disclose the nature of a conflict of interest. The way
the disclosure is made depends on the position held. The following public officials must
use the methods described below:
An elected public official, other than a member of the Legislative Assembly, or an
appointed public official serving on a board or commission:
(a) When met with a potential conflict of interest, announce publicly the nature of the
potential conflict prior to taking any action thereon in the capacity of a public official;
or
(b) When met with an actual conflict of interest, announce publicly the nature of the
actual conflict and refrain from participating* as a public official in any discussion or
debate on the issue out of which the actual conflict arises or from voting on the
issue.
Any other appointed official, including public officials in public bodies who are
appointed, employed or volunteer:
Must provide a written notice to the person who appointed or employed them. The
notice must describe the nature of the conflict of interest with which they are met [ORS
244,120(1)(c)].
My appointing authority is ______________________________________.
*NOTE: If a public official is met with an actual conflict of interest and the public official’s
vote is necessary to meet the minimum number of votes required for official action, the
public official may vote.
The public official must make the required announcement and refrain from any
discussion, but may participate in the vote required for official action by the governing
body. [ORS 244.120(2)(b)(B)]
These circumstances do not often occur. This provision does not apply in situations
where there are insufficient votes because of a member’s absence when the governing
body is convened. Rather, it applies in circumstances when all members of the
governing body are present and the numbers of members who must refrain due to
actual conflicts of interest make it impossible for the governing body to take official
action.
If in doubt, contact the Oregon Government Ethics Commission to seek guidance
prior to engaging in any action, decision or recommendation in your official
capacity.
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The following circumstances may exempt a public official from the requirement to make
a public announcement or give a written notice describing the nature of a conflict of
interest:
‒ If the conflict of interest arises from a membership or interest held in a particular
business, industry, occupation or other class and that membership is a prerequisite for
holding the public official position [ORS 244.020(13)(a)].
‒ If the financial impact of the official action would impact the public official, relative or
business of the public official to the same degree (meaning equally or proportionately)
as other members of an identifiable group or “class.” The Commission has the authority
to determine the minimum size of a “class” [ORS 244.020(13)(b) and ORS
244.290(3)(a)].
‒ If the conflict of interest arises from an unpaid position as officer or membership in a
nonprofit corporation that is tax-exempt under 501(c)(3) of the Internal Revenue Code
[ORS 244.020(13)(c)].
How is the announcement of the nature of a conflict of interest recorded?
The public body that is served by the public official will record the disclosure of the
nature of the conflict of interest in the official records of the public body [ORS
244.130(1)].
Is a public official required to make an announcement of the nature of a conflict of
interest each time the issue giving rise to the conflict of interest is discussed or acted
upon?
The announcement needs to be made on each occasion the conflict of interest is met.
For example, an elected member of the city council would have to make the public
announcement one time during a meeting of the city council. If the matter giving rise to
the conflict of interest is raised at another meeting, the disclosure must be made again
at that meeting. An employee in a city planning department would have to give a
separate written notice on each occasion they participate in official action on a matter
that gives rise to a conflict of interest [ORS 244.120(3)].
If a public official failed to announce the nature of a conflict of interest and participated
in official action, is the official action voided?
No. Any official action that is taken may not be voided by any court solely by reason of
the failure of the public official to disclose an actual or potential conflict of interest [ORS
244.130(2)].
My positions as a _________________________ requires me to ________________
announce the nature of conflicts of interest on _______________ occasion.
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NOTES:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Employment
Does Oregon Government Ethics law prohibit a public official from owning a private
business or working for a private employer while continuing employment with or
holding a position with a public body?
No. Many public officials hold or perform services as volunteers, meaning there is little
or no compensation and they have a private source of income to maintain a household.
There are also public officials who do receive compensation, but for personal reasons
find it necessary to seek additional sources of income. Some obtain employment with a
private business and others establish a private business of their own.
ORS 244.040(3) prohibits a public official from, directly or indirectly, soliciting or
accepting the promise of future employment based on the understanding that the offer
is influenced by the public official’s vote, official action or judgment. Any employer who
may directly or indirectly offer employment under these conditions may also violate this
provision.
In general, public officials may obtain employment with a private employer or engage in
private income producing activity of their own. They must not use the position held as a
public official to create the opportunity for additional personal income. The public official
must also insure that there is a clear distinction between the use of personal resources
and time for personal income producing activity and the use of the public body’s time
and resources. The Commission has created guidelines for public officials to follow in
order to avoid violating Oregon Government Ethics law when engaged in private
employment or a personally owned business.
GUIDELINES FOR OUTSIDE EMPLOYMENT OF PUBLIC OFFICIALS
1. Public officials are not to engage in private business interests or other
employment activities on their governmental agency’s time.
2. A governmental agency’s supplies, facilities, equipment, employees, records or
any other public resources are not to be used to engage in private business
interests.
3. The position as a public official is not to be used to take official action that could
have a financial impact on a private business with which you, a relative or
member of your household are associated.
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4. Confidential information gained as a public official is not to be used to obtain a
financial benefit for the public official, a relative or member of the public official’s
household or a business with which any are associated.
5. When participating in an official capacity and met with a potential or actual
conflict of interest related to a business, associated with the public official,
relative or household member, the public official must disclose the nature of the
conflict of interest using one of the following methods:
o Employees of governmental agencies must give written notice to their
appointing authority.
o Elected or appointed public officials must publicly disclose once during
each meeting convened by the governing body they serve.
What are the restrictions on employment after I resign, retire or leave my public official
position?
ORS 244.040(1) prohibits public officials from using their official positions or
offices to create a new employment opportunity; however, most former public
officials may enter the private work force with few restrictions.
Resources
All members of the Commission staff are cross-trained in the laws and regulations
under the Commission’s jurisdictions. Questions regarding the Commission’s laws,
regulations and procedures are a welcome daily occurrence. Timely and accurate
answers are a primary objective of the staff. Guidance and information is provided
either informally or in written formal opinions. The following are available:
Telephone inquiries are answered during the call or as soon as possible.
E-mail inquiries are answered with return e-mail or telephone call as soon as
possible.
Letter inquiries are answered by letter as soon as possible.
Written opinions on specific circumstances can also be requested.
If a person requests, receives or relies on any of the advice or opinions authorized by
ORS 244.280 through ORS 244.284, does that person have what is referred to as “safe
harbor” protection from becoming a respondent to a complaint filed with or initiated by
the Commission?
There is no “safe harbor,” if the term is understood to mean that any person who relies
on any advice or opinions offered by the Commission or the staff is protected from being
a respondent to a complaint, found violating laws within the jurisdiction of the
Commission or receiving a penalty for a violation.
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There is, however, specific and conditional protection for any person who has requested
and relied upon advice or an opinion from the Commission or its staff.
It is important to remember that the provisions of law apply to the individual actions of
the person or public official. There are events or occasions when more than one public
official may be present and participating in their official capacities. Depending on the
circumstances and conditions for an event or transaction the law may have a different
application for one public official than for other public officials.
Sanctions for Violations
Civil Penalty [ORS 244.350]
Forfeiture [ORS 244.306]
Letters of Reprimand, Correction or Education [ORS 244.350(5)]
Resources and Information
Telephone 503-378-5105
Fax 503-373-1456
e-mail: OGEC.mail@state.or.us
Website: http://www.oregon.gov/OGEC
Training
o In person
o iLinc Webinars – Presented live using the internet
o iLearn – Self-paced online eLearning
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Executive Session provisions of Public Meetings law ORS 192.660
EXECUTIVE SESSION CHECKLIST
Prior to the meeting:
Provide notice of an executive session in the same manner you give
notice of a public meeting. The notice must cite the specific statutory
provision(s) authorizing the executive session.
See attached document below for the permissible grounds for going into executive
session.
At the meeting:
Announce that you are going into executive session pursuant to ORS
192.660 and cite the specific reason(s) and statute(s) that authorize
the executive session for each subject to be discussed. –Reminder, you
may hold a public session even if an executive session is authorized.
If you intend on coming out of executive session to take final action,
announce when the open session will begin again.
Specify if any individuals other than the news media may remain.
Tell the media what may not be disclosed from the executive session. If
you fail to do this, the media may report everything! If you discuss
matters other than what you announce you are going to discuss in the
executive session, the media may report those additional matters. *A
member of the news media must be excluded from executive session held
to discuss litigation with legal counsel if he or she is a party to the litigation
or is an employee, agent or contractor of a news media organization that
is a party.
Come back into open session to take final action. If you did not specify
at the time you went into executive session when you would return to open
session, and the executive session has been very short, you may open
the door and announce that you are back in open session. If you
unexpectedly come back into open session after previously announcing
you would not be doing so, you must use reasonable measures to give
actual notice to interested persons that you are back in open session. This
may require postponing final action until another meeting.
Keep minutes or a sound, video, or digital recording of executive sessions.
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Statutory Provisions for Executive Session
To consider the employment of an officer, employee, staff member or agent if: (i) the
job has been publicly advertised, (ii) regularized procedures for hiring have been
adopted, and (iii) in relation to employment of a public officer, there has been an
opportunity for public comment. For hiring a chief executive officer, the standards,
criteria and policy to be used must be adopted in an open meeting in which the public
has an opportunity to comment. This reason for executive session may not be used to
fill vacancies in an elective office or on any public committee, commission or other
advisory group, or to consider general employment policies
ORS 192.660(2)(a)
ORS 192.660(7)
To consider dismissal or discipline of, or to hear charges or complaints against an
officer, employee, staff member or agent, if the individual does not request an open
meeting.
ORS 192.660(2)(b)
To consider matters pertaining to the function of the medical staff of a public hospital
licensed pursuant to ORS 441.015 to 441.063, 441.085 and 441.990(3). ORS 192.660(2)(c)
To conduct deliberations with persons you have designated to carry on labor
negotiations. ORS 192.660(2)(d)
To conduct deliberations with persons you have designated to negotiate real property
transactions. ORS 192.660(2)(e)
To consider information or records that are exempt from disclosure by law, including
written advice from your attorney. ORS 192.660(2)(f)
To consider preliminary negotiations regarding trade or commerce in which you are in
competition with other states or nations. ORS 192.660(2)(g)
To consult with your attorney regarding your legal rights and duties in regard to
current litigation or litigation that is more likely than not to be filed. ORS 192.660(2)(h)
To review and evaluate the performance of an officer, employee or staff member if
the person does not request an open hearing. This reason for executive session may
not be used to do a general evaluation of an agency goal, objective or operation or
any directive to personnel concerning those subjects.
ORS 192.660(2)(i)
ORS 192.660 (8)
To carry on negotiations under ORS Chapter 293 with private persons or businesses
regarding proposed acquisition, exchange or liquidation of public investments. ORS 192.660(2)(j)
For a health professional regulatory board to consider information obtained as part of
an investigation of licensee or applicant conduct.
ORS 192.660(2)(k)
For the State Landscape Architect Board or its advisory committee to consider
information obtained as part of an investigation of registrant or applicant conduct. ORS 192.660(2)(l)
To discuss information about review or approval of programs relating to the security
of any of the following: (A) a nuclear-powered thermal power plant or nuclear
installation; (B) transportation of radioactive material derived from or destined for a
nuclear-fueled thermal power plant or nuclear installation; (C) generation, storage or
conveyance of (i) electricity (ii) gas in liquefied or gaseous form (iii) hazardous
substances as defined in ORS 453.005(7)(a), (b), and (d), (iv) petroleum products, (v)
sewage, or (vi) water; (D) telecommunications systems, including cellular, wireless or
radio systems; or (E) data transmissions by whatever means provided.
ORS 192.660(2)(m)