1. Public Hearing on Ordinances relating to Ethics & Campaign Finance Reform Presented by Thomas B. Drage, Jr., County Attorney, and Dana Crosby, Assistant County Attorney July 8, 2008

2. Discussion Outline  Introduction  Overview of ordinances  Amendments  Public Comment  Conclusion

3. Introduction  January 9, 2007 -- the Task Force on Ethics and Campaign Finance Reform was created by resolution of the BCC.  February 7, 2007 -- the Task Force was appointed by Chief Judge Belvin Perry, Jr.  The Task Force met from March to November of 2007.  January 29, 2008 -- The Task Force presented its Final Report to the BCC with 20 recommendations -- -- 16 recommendations on ethics -- 4 recommendations on campaign finance

4. Introduction February 26, 2008 -- The BCC took the following action on the four campaign finance recommendations:  Two provisions were added to the BCC legislative priorities for 2008;  one provision was to be implemented by a change in the County procurement ordinance; and  the BCC took no action on one provision.

5. Introduction April 22, 2008 -- The BCC took the following action on the 16 ethics recommendations:  Recommendation 1 was added as a legislative priority for next session;  Recommendations 3, 4 and 6 were to be implemented using existing resources and by Executive Order; and  Recommendations 2, 5 and 7 through 16 were to be implemented by ordinance in a manner that is not in conflict with existing state law.

6. Introduction June 24, 2008 -- The BCC held a work session to discuss three draft ordinances to implement the campaign finance reform recommendation and the ethics reforms recommend by the Task Force.

7. Today on the Consent agenda the Mayor and members of the BCC approved a Resolution adopting a requirement that candidates for County office engage in electronic filing of campaign finance reports. Introduction

8. The Mayor and members of the BCC will consider three ordinances at this public hearing --  Ordinance 1 --  amends the County procurement ordinance and lobbying ordinance to limit campaign contributions from parties going through the procurement process.  Ordinance 2 --  amends the County lobbying ordinance to provide for lobbying expenditure disclosure on matters coming before the BCC. Introduction

9.  Ordinance 3 --  Creates a new Ethics Ordinance  providing for additional financial and applicant relationship disclosure;  providing for restrictions on gifts;  providing for post-employment restrictions;  establishing a local advisory board; and  creating an enforcement process;  providing for due process;  providing for penalties and  providing for an appeal process. Introduction

10. Discussion Outline  Introduction  Overview of ordinances  Amendments  Public Comment  Conclusion

11. Ordinance 1 amends the procurement code to disallow campaign contributions during the lobbying black out period.  Highlights:  Amends Article X of Chapter 2 and Article III of Chapter 17 in the County Code;  Creates a new Section 2-355.1 to prohibit campaign contributions to the Mayor, BCC or candidates during the lobbying black out period;  Amends Subsection 2-356(C) to allow the County to enforce violations of this prohibition;  Provides conforming changes to sections 17-313(g)(3) and 17-313.1(f)(3) of the Code. Overview of Ordinances

12. Ordinance 2 requires expenditure disclosure by principals on items to come before the BCC.  Highlights:  Amends Article X of Chapter 2, County Code;  Provides for Legislative Findings;  Amends section 2-351 to update definitions and expand definition of principal;  Amends section 2-352 to clarify that principals and employees who are not lobbyists need not register as lobbyists;  Amends section 2-353 to clarify that visitors and lobbyists must sign a visitor log when visiting Mayor, commissioner or specific county staff; Overview of Ordinances

13.  Amends section 2-354 to distinguish annual expenditure reports (filed by lobbyists) from specific project expenditure reports (filed by principals for all expenditures related to the project);  Requires one cumulative specific project expenditure report be filed for each issue or project coming before the BCC; and  Amends section 2-355 to prohibit lobbying of Mayor or commissioners' staff in procurement matters and amends section 2-356 to conform this provision.  Requires a conforming amendment. Overview of Ordinances

14. Ordinance 3 is a draft Ordinance establishing a Code of Ethical Standards for County Officers and Employees. Highlights:  States the Legislative Intent;  Section 2-452 provides definitions for use with this code including but not limited to:  business relationship;  County Ethics Officer;  County Investigative Officer, Special Master and Hearing Officer;  Local Financial Disclosure; and  Perception or appearance of conflict. Overview of Ordinances

15.  Section 2-453 creates a Code of Ethical Standards for County Officers and Employees to:  require additional local financial disclosure;  require disclosure of business associates of an officer;  provide for a gift ban;  provide for post-employment restrictions for certain employees;  require disclosure of business relationships in past two years and requirement to abstain from voting based on appearance of conflict; and  require additional disclosure. Overview of Ordinances

16.  Section 2-454 requires applicant disclose in all matters if applicant is an employer of, has a business relationship with, or is a relative of the Mayor or member of the BCC.  Provides for final review by the BCC of matters that would otherwise have final review by the Concurrency Review Committee or the Development Review Committee when the applicant is an employer of, has a business relationship with, or is a relative of the Mayor or member of the BCC. Overview of Ordinances

17.  Section 2-455 provides for a comprehensive investigative process designed to ensure due process which includes:  retaining an independent investigative officer to make initial findings including determining jurisdiction,  retaining an independent Special Master to determine probable cause, and  retaining a Hearing Officer to issue a final order in a matter (including assessing the penalty)  Provides that if subsequent legislation is adopted to exempt investigatory information from public records law such records and information shall be deemed confidential and exempt from the public records law. Overview of Ordinances

18.  Section 2-456 provides for penalties, as follows:  For officers or appointed employees penalties may include a verbal warning, written reprimand, a civil penalty, or recommendation for censure;  Other county employees will be disciplined pursuant to the Policy Manual and Operational Regulations.  Ordinance also:  Provides for an appeal process; and  Provides for a local ethics advisory board. Overview of Ordinances

19. Discussion Outline  Introduction  Overview of ordinances  Amendments  Public Comment  Conclusion

20. Amendments Amendment -- Staff 1: This amendment is primarily to conform and clarify provisions in the ordinance --  Amends Definitions to:  Clarify definitions of business relationship, de minimus and perception or appearance of conflict;  create a definition of significant interest; and  copy definitions from Florida Statutes for local use (business associate, business entity, material interest, and indirect or indirect interest) (Ord page 3 lines 84- 121).

21. Amendments Amendment -- Staff 1 (cont'd):  Streamlines local financial disclosure to:  require creation of new local forms (rather than using the Commission on Ethics forms along with a supplemental form);  require forms be adopted by admin regulation; and  incorporate disclosure of business associates and relevant business entities for this purpose. (Ord page 4 lines 126-154).  Updates Supplemental Financial disclosure to track local financial disclosure requirements (Ord page 4 lines 126- 165).

22. Amendments Amendment -- Staff 1 (cont'd):  Clarifies language regarding disclosure of business associates and appearance of voting conflict for consistency with other revisions (Ord. page 6 lines 221- 238).

23. Amendments Mayor Crotty amendment 1 to the ordinance: To enable the County to train staff and prepare forms and other material to implement this ordinance, the Mayor has proposed an effective date of January 1, 2009 (amends Ord page 13, line 537).

24. Amendments Commissioner Jacobs amendment 1 to the staff amendment: Definitions (See staff amend 1 Page 2, lines 24 & 29) -- This amendment revises the definitions of business associate and business entity for purposes of disclosure under this code --  Business associate shall include any member or shareholder of a subsidiary entity of such business enterprise; and  Business entity shall include a limited liability company and all subsidiary entities of a business entity.

25. Amendments Commissioner Jacobs amendment 2 to the ordinance: Disclosure; abstaining from voting due to appearance of conflict (See ord Page 6, lines 252-256) -- On April 22 the BCC discussed inserting certain grandfather provisions in the ordinance including providing an effective date for disclosure of business associates for the two year period (unless otherwise provided by law). This amendment strikes the language which excluded relationships established prior to the effective date of the ordinance or the date an official takes office.

26. Amendments Commissioner Jacobs amendment 3 to the ordinance: Post-employment restrictions for County Employees -- On April 22 the BCC discussed providing in the ordinance a grandfather provision for current employees. This amendment strikes the 'grandfather clause' for current County employees who plan to represent clients before the BCC (Ord. page 5, line 183-192) and for County employees involved in a procurement/bid process (Ord. page 5, lines 204-205).

27. Amendments Commissioner Jacobs amendment 4 to the ordinance: On April 22 the BCC discussed enhancing Applicant disclosure of relationships to the Mayor or members of the BCC. This amendment modifies the draft Ordinance (page 7, lines 279-298) to require the following information:  applicants for development-related or procurement items disclose whether they are a 'business associate' of the Mayor or member of the BCC including a business associate in a limited liability company or subsidiary entity of a business entity.

28. Amendments Commissioner Jacobs amendment 4 to the ordinance: Applicant's relationship disclosure forms (cont'd) --  disclosure of all persons involved with an item who have a beneficial interest in the outcome and who are business associates; and  to clarify that development-related items of applicants with such a relationship will go to the BCC for final approval.

29. Amendments Commissioner Jacobs amendment 5 to the ordinance: Regarding County Investigative Officer, Special Master and Hearing Officer --  This amendment creates new language to require these positions be selected by an agency independent of the County and that the Orange County Procurement policies shall be used as a guide in the selection. (Ord. page 10, line 435).

30. Amendments Commissioner Brummer amendment 1 to the ordinance: Regarding gift ban --  This amendment clarifies that the gift ban is limited to gifts from lobbyists or principals who retain a lobbyist (Ord. page 5, line 170-178). Gifts should be valued consistent with section 112.3148, F.S.

31. Amendments Commissioner Moore Russell amendment 1 to the Brummer amendment: Regarding gift ban -- On April 22 the BCC discussed situations where the Mayor of a member of the BCC should attend an event that may have a cost in excess of $35.00 This amendment increases the meal amount to $75.00 and allows an exemption where a Mayor or Commissioner is a featured guest due to their elected office (though not necessarily a speaker) at an event (Ord. page 5, line 170- 178).

32. Amendments Commissioner Brummer amendment 2 to the ordinance: Regarding investigation and penalties -- On April 22 the BCC discussed the problems that may arise when violation complaints and investigations are not exempt from Florida's public records law. This amendment provides that the sections of this code relating to investigation and penalties will not take effect until such time as the County obtains a public records exemption for the information relating to a complaint and investigation of a complaint (Ord. page 10 and 11, lines 436-446).

33. Amendments Commissioner Brummer amendment 3 to the ordinance (cont'd): On April 22 the BCC discussed the issues relating to the proposed Ethics Advisory Board including the specific categories of membership. This amendment requires a future Local Ethics Advisory Board be established by Resolution to encourage ethics policies in other jurisdictions in Orange County, to monitor ethics compliance, to recommend the need for subsequent amendments to this code, and to oversee and evaluate ethics training and education opportunities offered by the county.

34. Amendments Commissioner Brummer amendment 3 to the ordinance: This amendment also: eliminates any specific categories of membership for advisory board membership; provides that the advisory board may be appointed by the Chief Judge; provides members will serve a three year term; and requires members to meet at least once a year. (Ord. page 10 and 11, lines 436-446).

35. Amendments Commissioner Moore Russell amendment 2: Regarding the investigation process --  This amendment provides that settlement discussions occurring during the investigatory process will not be used against a respondent. (Ord. page 9, lines 357 and 385).

36. Amendments Comm. Segal amendment 1 to Staff amendment 1: Regarding local financial disclosure and supplemental local disclosure sections --  requires disclosure of business associates having a material interest in the business in which the filing party has an interest (see rev. Staff Am 1 page 4 lines 150 and 170); and  provides that when information on business associates cannot lawfully be obtained or is unknown to the filing party disclosure is not required (see rev. Staff Am 1 page 4 lines 156 and 178).

37. Amendments Comm. Segal amendment 2 to Staff amendment 1: Disclosure; abstaining from voting due to appearance of conflict -- State law has a standard that one must knowingly vote on a matter that would inure to the special gain or loss of a business associate to have a voting conflict (s.112.3143, FS). This amendment inserts the word knowingly to conform with the standard provided in state law for a voting conflict involving business associates (see rev. Staff Am 1 page 5, lines 187 and 205).

38. Discussion Outline  Introduction  Overview of ordinances  Amendments  Public Comment  Conclusion

39. Public Comment on Ordinances relating to Ethics & Campaign Finance Reform July 8, 2008

40. Discussion Outline  Introduction  Overview of ordinances  Amendments  Public Comment  Conclusion

41. Conclusion Requested Board Action -- The Mayor and members of the BCC are requested to adopt proposed ordinance 1.

42. Conclusion Requested Board Action -- The Mayor and members of the BCC are requested to adopt proposed ordinance 2, as amended with 1 conforming amendment.

43. Conclusion Requested Board Action -- The Mayor and members of the BCC are requested to adopt proposed ordinance 3, as amended, allowing editorial discretion to the scrivener in preparing the ordinance for codification.

44. Public Hearing on Ordinances relating to Ethics & Campaign Finance Reform Presented by Thomas B. Drage, Jr., County Attorney, and Dana Crosby, Assistant County Attorney July 8, 2008