1. EIGHT SIMPLE RULES (for avoiding the PID) Dave Demerjian Head Deputy District Attorney Public Integrity Division (213) 974-6515

2. Rule #1: American Express… leave home without it

3. Any expenditure of public funds 1. Must be authorized by law 2. Must serve a public purpose (a benefit to the public) PC 424 (felony) 4 yrs prison and lifetime ban Credit Cards

4. General law city: GC 36514.5 Actual and necessary expense “Indispensable, unavoidable…” Connection between expense and performance of official duties Credit Cards

5. Problem areas: Golf Alcohol Non-travel rental cars Meals for third parties Non-travel meals Gifts Political expenditures Credit Cards

6. Rule #2: Is this trip necessary?

7. Actual and necessary expense Clear nexus between attendance and performance of official duty Must serve a public purpose Travel

8. Problem areas: Entertainment Meals for third parties Alcohol Spouses “Double dipping” Failure to return excess advance Travel

9. Rule #3: Home is where your stuff is

10. Statutes require residency within represented district (domicile) Habitation is fixed Intention of remaining Intention of returning The place where you live Residency

11. Not living in the district is not a crime but… Filing false documents False voter registration Perjury And voter fraud Are all felonies Residency

12. Rule #4: It is better to give than receive

13. Limits established by FPPC Gift: Personal benefit without equal consideration , and Rebate or discount not available to the public Value = fair market value Gifts

14. Problem areas: Movie passes Event tickets Local business discounts Hosted meals Travel Use of house/condo/apt Gifts

15. Rule #5: Observe and report … accurately

16. Statement of Economic Interest Form 700 Report gifts Complete and accurate Signed under penalty of perjury Perjury is a felony Gifts

17. Rule #6: Don’t serve two masters

18. GC 87100 Make , or influence; An official decision; In which official (or spouse) has a financial interest When in doubt – sit it out Or contact the FPPC - immunity Conflicts of Interest

19. Special rule for contracts : Cannot vote on , or influence; A contract In which official (or spouse) has a financial interest (GC 1090) Willful and knowing violation = felony FPPC cannot provide advice/immunity Conflicts of Interest

20. Rule #7: Political campaigns (keep it clean)

21. Report all contributions Form 460 signed under penalty of perjury No cash contributions Cannot solicit employees No anonymous “hit piece” mailers Campaign money laundering Campaign Issues

22. Rule #8: Don’t keep secrets (The Brown Act)

23. Err on the side of transparency Especially controversial issues The gadflies are watching No “gray areas” Must be a specified exception All exceptions benefit the residents NOT THE OFFICIALS We don’t negotiate Brown Act