BILL NUMBER: AB 584 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 1, 1997
AMENDED IN ASSEMBLY APRIL 10, 1997
INTRODUCED BY Assembly Member Villaraigosa
FEBRUARY 25, 1997
An act to amend Section 130051.9 of, to add Section 130051.25 to,
and to add Chapter 6 (commencing with Section 130600) to Division 12
of, the Public Utilities Code, relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
AB 584, as amended, Villaraigosa. Transportation: Los Angeles
County Metropolitan Transportation Authority: inspector general:
code of conduct.
(1) Existing law requires the Los Angeles County Metropolitan
Transportation Authority to appoint an inspector general.
This bill would require the State Auditor
authority to appoint the inspector general of the
authority to a term of office of 4 years, subject to
confirmation by the majority vote of the board of directors
of the authority and subject to removal from that office
only under specified circumstances.
(2) Existing law requires the Los Angeles County Metropolitan
Transportation Authority to adopt and implement an ordinance for the
regulation of lobbying, to include specified minimum provisions.
This bill would prescribe a code of conduct for the board of the
authority and would create a state-mandated local program by imposing
additional duties on a local governmental entity.
(3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) In order to protect the integrity of the board of the Los
Angeles County Metropolitan Transportation Authority (hereafter MTA)
and sustain the confidence of the people of Los Angeles County, it is
necessary to do all of the following:
(1) Articulate specific standards and guidelines to assure that
those entrusted with public authority avoid conduct that undermines
respect for the MTA.
(2) Provide a comprehensive statement of pertinent laws and
regulations, ethical principles, considerations and obligations
governing the conduct of board members and alternates and their staff
and provide a comprehensive and unified statement of ethical
principles, considerations and obligations to sustain the public
trust in the MTA.
(3) Enhance the understanding of the laws and ethical principles
that create the obligations of MTA board members and alternates and
their staff.
(4) Establish positive, effective and comprehensive guidance for
the conduct of MTA board members and alternates and their staff
(b) MTA board members and alternates enter into a special trust
relationship with the people of Los Angeles County involving legal
and moral obligations. One aspect of these obligations requires that
those entrusted with public authority unfailingly demonstrate that
they are worthy of the public's respect and committed to maintaining
the absolute integrity of government.
(c) The people of Los Angeles County need and deserve an agency
whose commitment to pursuing public interest outweighs any competing
personal or political considerations.
(d) No code of conduct can anticipate all situations nor can it
prescribe behaviors that are appropriate to most situations.
(e) Board members and alternates and their staff must exercise
discretion and judgment to adhere to the spirit of the Code of
Conduct codified by this act in Chapter 6 (commencing with Section
130600) of Division 12 of the Public Utilities Code. It is essential
to recognize that an act is not ethical simply because it is legal
and conduct is not proper simply because it is permissible. Board
members and alternates should be willing to do more than the law
requires and less than it allows. Strict compliance is not
necessarily enough and attempts to evade or circumvent ethics laws
and rules are improper. All actions, decisions and votes should be
made on their merits, objectively and without party, regional, or
ideological bias.
(f) The Code of Conduct views the obligations of the MTA board
members and alternates and their staff in a positive way. The
statements of ethical standards and specific sanctions to enforce
them are not driven by negative assumptions about the character of
those who serve on the board. Instead they reflect the need for
clarity and a commitment to the noble dimension of democratic
government.
SEC. 2. Section 130051.9 of the Public Utilities Code is amended
to read:
130051.9. (a) The Los Angeles County Metropolitan Transportation
Authority shall appoint a full-time chief executive officer who shall
act for the authority under its direction and perform those duties
delegated by the authority.
(b) The Los Angeles County Metropolitan Transportation Authority
shall appoint a general counsel and board secretary.
SEC. 3. Section 130051.25 is added to the Public Utilities Code,
to read:
130051.25. (a) The State Auditor shall appoint the inspector
general of the Los Angeles County Metropolitan Transportation
Authority to a term of office of four years, subject to confirmation
by the majority vote of the board of directors of that authority and
subject to removal from that office only
130051.25. The Los Angeles County Metropolitan Transportation
Authority shall appoint an inspector general to a term of office of
four years. The inspector general shall be removed from office only
if either or both of the following occur:
(1) A two-thirds majority of the members of the authority votes
for removal.
(2) The inspector general violates a federal or state law or
regulation, a local ordinance, or a policy or practice of the
authority, relative to ethical practices, including, but not limited
to, the acceptance of gifts or contributions.
(b) The inspector general shall, at a noticed public hearing of
the authority, report quarterly on the expenditures of the authority
for travel, meals and refreshments, private club dues, membership
fees and other charges, and any other expenditures which are
specified by the authority.
(c) Any investigatory file compiled by the inspector general is an
investigatory file compiled by a local law enforcement agency
subject to disclosure pursuant to subdivision (f) of Section 6254 of
the Government Code.
SEC. 4. Chapter 6 (commencing with Section 130600) is added to
Division 12 of the Public Utilities Code, to read:
CHAPTER 6. CODE OF CONDUCT FOR THE BOARD OF THE LOS ANGELES
COUNTY METROPOLITAN TRANSPORTATION AUTHORITY
130600. For purposes of this chapter, the following terms have
the following meanings:
(a) "Board" means the board of directors of the Los Angeles County
Metropolitan Transportation Authority and their alternates.
(b) "Board member" or "member" includes alternate members of the
board.
(c) "Entitlement for use" includes all contracts except
competitively bid, labor, or personal employment contracts,
regardless of whether an individual accepts, solicits, or directs the
contribution for himself or herself or on behalf of any other
candidate or committee.
(d) "Gift" has the same meaning as defined in Section 82028 of the
Government Code.
(e) "Indirect investment or interest" means any investment or
interest owned by the spouse or dependent children of an individual,
by an agent on behalf of the individual, or by a business entity or
trust in which the individual, the individual's agents, spouse, or
dependent children own directly, indirectly or beneficially a 10
percent interest or greater.
(f) "Participant" means any person, other than a party, as defined
in subdivision (g), who is not a party but who actively supports or
opposes a particular decision in a proceeding involving a license
permit or other entitlement for use, including contract actions, and
who has a financial interest in the decision. A person actively
supports or opposes a particular decision in a proceeding if he or
she lobbies in person the board members or MTA employees, testifies
in person before the MTA, or otherwise acts to influence officers of
the agency.
(g) "Party" means any person who files an application for, or is
the subject of, a proceeding involving a license, permit, or other
entitlement for use to competitively bid on contracts, including
contract amendments and change orders.
(h) "MTA" means the Los Angeles County Metropolitan Transportation
Authority.
130605. Any reference to "chief executive officer," "general
counsel," "counsel," "inspector general," "board secretary," or
"secretary" is to the officers of the Los Angeles County Metropolitan
Transportation Authority appointed under Section 130051.9.
130610. (a) The board shall appoint an ethics officer, who shall
report to the board.
(b) When in doubt as to the applicability of any provision of this
chapter to any particular situation, a board member shall contact
the general counsel or the ethics officer for advice.
130615. (a) The provisions of this chapter shall be enforced by
the inspector general.
(b) Any violation of this chapter that is also a violation of
other state law or of local or federal law may also be prosecuted by
the appropriate authority.
(c) Upon notice of a possible violation of this chapter, the board
shall refer the matter to the inspector general for investigation.
Upon completion of the investigation, if the matter has been
determined not to be criminal in nature and to be of such a nature
that it may be disclosed, the inspector general shall report the
findings to the board. If the matter is determined to be criminal in
nature, the inspector general shall refer the matter to the
appropriate enforcement authorities for prosecution.
130620. (a) Sanctions for violations of this chapter shall be
determined by the board. The sanctions imposed shall depend upon the
severity of the infraction and may be progressive unless the
violation is determined to be so egregious as to warrant more severe
action initially.
(b) The board may consult with the inspector general for an
opinion regarding the sanctions appropriate to any particular
violation.
(c) Sanctions imposed under this section may include, but are not
limited to, any of the following:
(1) Private reprimand by the board.
(2) Public censure by the board at a regularly scheduled meeting.
(3) Disqualification from participating in any discussion or vote
on any matter related to the violation.
(4) Removal of the board member from one or more committees for a
period of time.
(5) Permanent removal of the board member from one or more
committees.
(6) Suspension from all board actions for a period of time.
(7) A monetary fine in an amount determined by the board.
(c) If a board member is criminally indicted, he or she shall be
suspended from all board actions for the duration of the criminal
proceeding. If the board member is acquitted of the charges, he or
shall return to the board as a full, participating member.
(d) For violations of this chapter that result in findings of
criminal or civil liability, the board may recommend additional
sanctions to the inspector general after the civil or criminal
proceedings are completed.
130625. Confidential information, particularly investigative
reports for the inspector general, shall not be disseminated beyond
the authorized recipient of the report.
130630. The role of the board as it relates to the MTA is as
follows:
(a) The board provides counsel and direction to management and
shall not be involved in the day-to-day affairs of the MTA.
(b) Board members do not have individual power or authority over
the MTA. That power and decision-making authority lie with the full
board.
130635. The rules of conduct at board meetings shall apply to all
matters under consideration by the board except for ceremonial
matters and are as follows:
(a) Board members shall treat MTA staff members and each other
with respect and courtesy.
(b) Disagreements shall not result in personal comments or attacks
against an MTA staff member or another board member.
(c) When any member is recognized to speak at a board meeting, the
board member shall address the chair.
(d) When two or more members address the chair at the same time,
the chair shall name the member who is to be the first to speak.
(e) When speaking, a member shall confine his or her remarks to
the topic under debate or discussion.
(f) Each member, in the order recognized by the chair, shall have
not more than five minutes to speak.
(g) Answers to questions asked by a member shall be counted
against the member's five minutes.
(h) Once having recognized a member to speak, the chair shall not
recognize that member to be heard again, except to answer questions,
until all other board members have had an opportunity to speak.
(i) All members shall have an opportunity to speak before the
chair may enter the discussion.
(j) After all members desiring to speak have had an opportunity to
be heard once, the time for each member desiring to speak again, or
for the first time, shall be limited to a maximum of three minutes.
(k) There shall be no limit to the number of times a member is
allowed to speak.
(l) The secretary shall time the members when discussion of an
issue begins and notify the chair when a member's time has expired.
130640. (a) Members shall not publicly engage in personal attacks
on MTA employees or attempt to discipline any employee.
(b) Any concerns regarding an employee's performance shall be
communicated to the chief executive officer.
(c) Any concerns regarding the performance of an officer of the
board shall be communicated to that officer.
(d) Nothing in this section limits the right of the board to
evaluate board officers.
130645. The following rules apply to speaking and voting at
meetings by alternate members:
(a) Alternate members may not speak at meetings if the principal
member is in attendance, unless permission to speak is granted by the
chair at the request of the principal.
(b) Alternate member may vote only if the principal is absent.
(c) Each principal member may have only one alternate.
130650. Committee chairs shall present items from their committee
meetings and the recommendation of their committee.
130655. (a) All members shall be afforded an adequate opportunity
to review written motions having financial or policy implications
prior to the board meeting.
(b) A written motion having financial or policy implications shall
be referred to the appropriate committee for recommendation to the
full board, unless the motion is distributed to all board members not
later than 48 hours prior to the board meeting or this requirement
is waived by the vote of nine board members.
130660. (a) Board members or their staff are prohibited from
soliciting or accepting any gift from MTA contractors or from persons
or entities that have submitted a proposal or bid for an MTA
contract.
(b) Board members or their staff shall not accept gifts
aggregating two hundred eighty-nine dollars ($289) or more, as
specified in Section 89502 or 89503 of the Government Code, from a
single source in any calendar year.
(c) Board members shall disqualify themselves from participating
in a decision that may have a financial effect upon a source of
income aggregating two hundred fifty dollars ($250) or more or a
donor of gifts aggregating two hundred eighty-nine dollars ($289) or
more, if those gifts were received within 12 months preceding the
time of the decision.
(d) Board members shall not accept gifts aggregating more than ten
dollars ($10) in a calendar month from an MTA registered lobbyist,
lobbying firm, or lobbyist employer.
(e) Board members shall report on their annual Statement of
Economic Interest gifts aggregating fifty dollars ($50) or more and
income of two hundred and fifty dollars ($250) or more received from
a single source in a calendar year.
130665. (a) Board members or their staff shall not accept any
payment made for a speech given, an article published, participation
in a program, or any other appearance at a public or private
conference, convention, meeting, social event, meal, or similar
gathering.
(b) This section does not prohibit payments for actual personal
services rendered in connection with a member's practice of a bona
fide business, trade, or profession.
130670. Reimbursement for travel or lodging may be exempt from
the provisions prohibiting gifts if the travel is related to MTA
business. That reimbursement, however, shall be reported in the
annual Statement of Economic Interest. The general counsel may be
consulted prior to accepting payment or reimbursement to determine
whether that reimbursement should be disqualified as a gift.
130675. Board members shall not direct any MTA employee,
contractor or potential contractor to make a charitable contribution
to a specified agency.
130680. (a) The chief executive officer shall be responsible for
ensuring the MTA has an independent professional procurement staff.
The chief executive officer and designated procurement staff shall be
responsible for conducing an independent, autonomous procurement
process in accordance with state and federal law.
(b) Board members shall use objective judgment in voting on a
procurement award and base their decision on the criteria established
in the procurement documents.
(c) Board members or their staff shall not attempt to influence
the contract award.
(d) During the procurement process, board members or their staff
shall not communicate with MTA staff regarding the procurement.
(e) Before the staff recommendation for award is made public,
board members or their staff shall only communicate with the chief
executive officer or his or her designee regarding the procurement.
The chief executive officer shall keep a log of those communications
and shall report those communications and responses in writing at the
board meeting where action on the procurement is scheduled.
(f) Board members or their staff shall not attempt to obtain
information about the recommendation of the award of a contract until
the recommendation is made public.
(g) Board members shall not release information about the
procurement to the public until the award recommendation is made
public.
(h) If a board member attempts to communicate with MTA staff to
influence the recommended award, this communication shall be reported
by staff to the inspector general.
130685. (a) Prior to the issuance of a request for proposal
(RFP), request for interest in qualification (RFIQ), or invitation
for bid (IFB), and ending on the date of the selection of the
contractor, no person or entity submitting a proposal in response to
the RFP, RFIQ, or IFB, nor any officer, employee, representative,
agent, or consultant representing the proposer shall contact by any
means or engage in any discussion concerning the award of the
contract with any board member or his or her staff. Any contact
shall be grounds for the disqualification of the proposer.
(b) A board member who receives any communication from a proposer
in violation of this chapter shall report that communication to the
inspector general. The inspector general shall forward this
information to the director of contracts and responsible procurement
staff.
(c) Board members shall not meet with a person or entity who
submitted a proposal in response to the RFP, RFIQ, or IFB, nor any
officer, employee, representative, agent, or consultant representing
the proposer regarding a protest submitted regarding the recommended
contract award or any lawsuit or potential lawsuit regarding the
recommended contract award.
130690. Board members and their staff shall refrain from conduct
that they know or reasonably should know is likely to create in the
minds of reasonable observers the perception that the board member or
staff member used his or her public position improperly.
130695. (a) No board member shall accept, solicit, or direct a
contribution, including contributions to candidates and committees in
federal, state, or local elections, of more than two hundred fifty
dollars ($250) from any party, or that party's agent, or from any
participant, or that participant's agent, while a proceeding
involving a license, permit, or other entitlement for use, is pending
before the MTA and for six months following the date a final
decision is rendered. This prohibition applies regardless of whether
the individual accepts, solicits, or directs the contribution for
himself or herself or on behalf of any other candidate or committee.
(b) No board member shall accept, solicit, or direct a
contribution of more than two hundred fifty dollars ($250) from any
subcontractor to a contract pending before MTA and for six months
following the date a final decision is rendered. This prohibition
applies regardless of whether the individual accepts, solicits, or
directs the contribution for himself or herself or on behalf of any
other candidate or committee.
(c) MTA board members or their staff or agents shall not solicit
political contributions from other employees or contractors while on
duty and shall not coerce those contributions.
(d) MTA board members or staff or agents shall not, directly or
indirectly, knowingly solicit political funds or political
contributions from other officers or employees of the MTA or from
persons on the employment lists of the MTA. Nothing in this section
prohibits an MTA officer or employee from communicating through the
mail or by other means requests for political funds or contributions
to a significant segment of the public which may include officers or
employees of the MTA.
(e) Prior to rendering any decision on an entitlement for use
pending before the MTA, each board member who received a contribution
within the preceding twelve months in an amount of more than two
hundred fifty dollars ($250) from a party, subcontractor to a party,
or from any participant shall disclose that fact on the record of the
proceeding.
(f) If a board member receives a contribution that would otherwise
require disqualification under this section, and returns the
contribution within 30 days from the time he or she knows, or should
have known, about the contribution and the proceeding involving a
license permit or other entitlement for use, he or she shall be
permitted to participate in the proceeding.
(g) All alternates or designees to the MTA board representing
members of the Los Angeles County Board of Supervisors are prohibited
from participating in or voting on a decision where the member they
represent has received a contribution that disqualifies that member
from participating in the decision.
(h) Board members and their staff shall not use MTA employees to
solicit campaign contributions from MTA contractors, potential
contractors, or other MTA employees. MTA employees and contractors
and potential contractors may make contributions on their own.
(i) No board member or member of his or her staff shall make,
participate in making, or in any way attempt to use his or her
official position to influence a contract decision if the board
member has willfully or knowingly received a contribution in an
amount of more than two hundred fifty dollars ($250) within the
preceding 12 months from a party or his or her agent, or from any
participant, or his or her agent, if the board member knows or has
reason to know that the participant has a financial interest in the
matter under deliberation. This prohibition includes contributions
from subcontractors.
130700. (a) Board members or their staff shall not participate in
an MTA decision in which they know or have reason to know that they
have a financial interest.
(b) Board members shall not be purchasers at any sale, or vendors
at any purchase, that is made personally by that member.
(c) Alternate members shall not use their position to make,
participate in making, or influence in any way an MTA decision in
which the alternate member knows or has reason to know that the
principle member has a financial interest. This prohibition shall
not apply to alternate members representing members appointed by the
Los Angeles County City Selection Committee.
(d) An individual is deemed to have a financial interest in a
decision if it is reasonably foreseeable that the decision will have
a material financial effect on that individual or the individual's
immediate family, distinguishable from its effect on the public
generally, or on any of the following:
(1) Any business entity in which the board member or staff member
has a direct or indirect investment worth one thousand dollars
($1,000) or more.
(2) Any real property in which the board member or staff member
has a direct or indirect interest worth one thousand dollars ($1,000)
or more.
(3) Any source of income, other than gifts and other than loans by
a commercial lending institution made in the regular course of
business in terms available to the public without regard to official
status, aggregating two hundred fifty dollars ($250) or more in value
provided to, received by, or promised to the board member or staff
member within 12 months prior to the time when the decision is made.
(4) Any business entity in which the board member or a member of
his or her staff is a director, officer, partner, trustee, employee,
or holds any position of management.
(5) Any donor or, or any intermediary or agent for a donor or a
gift or gifts aggregating two hundred eighty nine dollars ($289) or
more in value provided to, received by, or promised to, the board
member or staff member within 12 months prior to the time the
decision is made.
(e) This section does not prohibit a board member from
participating in a decision if that participation is legally required
in order for the decision to be made. In that case the individual
shall disclose the nature of his or her interest before he or she
participates in the decision. The fact that a board member's vote is
necessary to break a tie does not make his or her participation
legally required for purposes of this subdivision.
130705. (a) Board members or their staff shall not engage in any
employment, activity, or enterprise that is inconsistent,
incompatible, or in conflict with the duties of an MTA officer.
(b) Board members or their staff shall not use the MTA's
facilities, equipment, supplies, badge, prestige, or influence for
private gain.
130710. The MTA shall not contract with any of the following:
(a) MTA board members or their staff.
(b) Any profit-making firm or business in which a former board
member or member of his or her staff serves as an officer, principal,
partner, or major shareholder.
130715. (a) Former board members or their staff shall not
participate in any contract with the agency for a period of 12 months
after leaving the board.
(b) MTA shall not contract with any profit-making firm or business
in which a former board member or member of his or her staff serves
as an officer, principal, or partner, or is a shareholder who holds
more than ten percent of the stock in the company, for a period of 12
months after the board member has left the board.
130720. Board members shall file Statements of Economic Interest
with the ethics officer pursuant to state law, within 30 days of
assuming office, annually, and within 30 days of leaving office.
(b) Board members shall file an addendum to the statement required
under subdivision (a), disclosing all of their financial interests
both within and outside Los Angeles County, including received during
the reporting period by all entities in which the member is an
officer, principal, partner, or major shareholder.
(c) Any amendments to the Statement of Economic Interest or
addendum shall be filed within 30 days of the occurrence of the
change.
130725. Any person who
receives compensation to regularly provide advice, recommendations,
or counsel to board members regarding MTA activities shall file a
Statement of Economic Interest with the MTA within 10 days of the
commencement of the consultant relationship and shall update that
statement within 30 days of the end of each calendar quarter. This
requirement does not apply to a full time employee of a governmental
entity who is already required to file a statement.
130730. Any person who regularly provides advice,
recommendations, or counsel to board members regarding MTA activities
and also advises another agency or entity that has a financial
interest in an item before the board shall be prohibited from giving
advice to board members and MTA staff regarding the item.
SEC. 5. Notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
costs mandated by the state, reimbursement to local agencies and
school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code. If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
Notwithstanding Section 17580 of the Government Code, unless
otherwise specified, the provisions of this act shall become
operative on the same date that the act takes effect pursuant to the
California Constitution.