HomeMy WebLinkAboutItem 03 2007 Revisions to Oregon Ethics Law
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ITEM TITLE: 2007 REVISIONS TO OREGON ETHICS LAW
April 7, 2008
Work Session
City Attorney's Office
Bill Van Vactor f;'iV
746-9621
30 Minutes
ACTION
REQUESTED:
None, information only.
ISSUE
STATEMENT:
The 2007 Legislature made substantial revisions to Oregon's ethics laws. The
purpose of this agenda item is to review those changes and address any questions
the Mayor or City Council may have.
ATTACHMENTS:
1. January 28,2008 Memo from Bill Van Vactor to the Mayor and City
Councilors.
2. Guide to gift limits prepared by Keane Campbell, Metro Senior Attorney,
January 2008.
3. Division 5 Gifts Temporary Administrative Rules issued by the Oregon
Government Ethics Commission, February 29,2008.
DISCUSSION/
FINANCIAL
IMPACT:
Unfortunately the 2007 revisions to the Ethics Laws were not developed in an
organized manner. While extensive work was done, the reforms were developed in
two separate bills, Senate Bill 10 and House Bill 2595, and the two bills did not
mesh nicely into what could be called comprehensive reform. While the reforms
are very significant they create as many questions as they answer.
The consequence is that Oregon Ethics Laws will be in a state of development for
the next few years. This agenda item should be viewed as an interim report seeking
to cover the highlights of the changes. There will be a continuing need for updates
as the Ethics Commission issues opinion and adopts amendments to the rules.
Some clarifying revisions are also likely for the 2009 legislative session.
Since the January 28,2008 Memo was written, the Ethics Commission did adopt
interim rules on the gifts, OAR 199-005-0052-0035, a copy included as an
attachment. One key clarification is that expenses paid by the public body to their
own public officials need not be reported by the public official under ORS 244.100,
OAR 199-005-0035(4).
Another significant change to the Ethics Laws was the enactment of a prohibition
against hiring relatives (nepotism) now codified in ORS 244.177. In this case the
City of Springfield was ahead of the curve and already a personnel rule addressing
this issue, Policy 6.9, Nepotism. The key change in practice is that when these
issues arise in the future there will need to be careful analysis to make sure any
proposed action conforms to both Springfield's Personnel Rule, Policy 6.9, as well
as ORS 244.177.
It is still legally permissible to have members of a family work for the City of
Springfield so long as their chain of command does not result in a Public Official
violating the prohibitions or participating in the appointment, employment or
promotion of the relative.
MEMORANDUM OFFICE OF CITY ATTORNEY
DATE: January 28, 2008
TO: Sid Leiken, Mayor
Christine Lundberg, Councilor
Hillary Wylie, Councilor
Anne Ballew, Councilor
Dave Ralston, Councilor
John Woodrow, Councilor
Joe Pishioneri, Councilor
Gino Grimaldi, City Manager
Jeff Towery, Assistant City Manager
Amy Sowa, City Recorder
Julie Wilson, Administrative Coordinator
Brenda Jones, Planning Secretary
FROM: Bill Van Vactor
Office of City Attorney
SUBJECT: 2007 Changes to the Oregon Ethics Laws
Due to certain well publicized trips taken by some members of the Oregon Legislature,
the 2007 Legislative Session enacted significant revisions to Oregon Ethics Laws.
Unfortunately the approach taken by the Legislature was from the perspective of the
State of Oregon with little recognition of how the law would impact local governments.
In addition, the Legislature enacted changes through two separate pieces of legislation,
Senate Bill 10 and House Bill 2595, and therefore inconsistencies and gaps exist in what
was enacted.
In order to provide guidance for state and local officials the Oregon Ethics Commission
has attempted to wrestle with these new provisions in the development of new
Administrative Rules. They prepared a draft set and held a hearing on January 18,
2008. Suffice to say that there was a substantial amount of testimony (not all
favorable) and the Commission did not take any action to enact the Rules. They are not
scheduled to meet again until February 29, 2008.
Because the new law has gone into effect, the purpose of this memo is to provide
interim advice until more clarity is available. It should be viewed as an introduction.
These new laws are quite problematic and will be in a state of development for several
years.
A'ITACHM ENT 1, PAGE 1
Council Memo
January 28, 2008
Page 2
GIFTS LIMITED TO $50 FROM ANY SOURCE FOR ENTIRE YEAR
The new gift limit is $50, formerly $100 dollars. The definition of a gift is very broad,
but there are a few narrow exceptions.
EXCEPTIONS
Plaques and Trophies
One is for plaques and trophies with an expected value of less than $25. Another is:
Speaking Engagements
Admission provided to or the cost of food or beverage consumed by a public official or
. member of the household or staff of the public official when accompanying the public
official at a reception, meeting, or meeting held by an organization before whom the
public official appears to speak or to answer questions as part of the scheduled
program. ORS 244.020 (5)(1)(E) [Emphasis added]
Representing the City
The law also goes on to provide reasonable expenses may be paid by the state, federal
or local government or certain non-profit corporations, and Native American Tribes
taken when the public official is scheduled to deliver a speech, make a presentation,
participate on a panel or represent the local government (ORS 244.020(5)(b)(F)).
Food and Beverage is Incidental to Event
In addition, reasonable food, travel and lodging may be provided to the public official or
a staff members if they are representing a local government (ORS 244.020(S)(b)(H)).
Additional exceptions include food or beverage consumed by a public official at a
reception where the food or beverage is provided "as an incidental part of the reception
and no cost is placed on the food or beverage" (ORS 244.020(S)(b)(L)), or in Section
(M) where entertainment provided to a public official or relative or member of the
household is permissible if it is "incidental to the main purpose of another event."
APPLIES TO PUBLIC OFFICIALS AND THOSE MAKING THE GIFT
The law goes on in ORS 244.025 to describe the gift limits as follows:
"During a calendar year a public official or candidate for publiC office or a relative
or a member of the household of the public official or candidate may not solicit
A'ITACHMENT 1, PAGE 2
Council Memo
January 28, 2008
Page 3
or receive directly or indirectly any gift or gifts with an aggregate value in excess
of $50 from any single-source that could reasonably be known to have a
legislative or administrative interest in any governmental agency in which the
public official holds or the candidate, if elected, would hold any official position
over which the public official exercises or the candidate elected would exercise
authority. "
To keep the rules the same for those offering the gift, the next section prohibits any
person who has a legislative or administrative interest from offering anything in excess
of $50.
This section may be the most difficult to apply in a practical manner. Let me give you
an example of my experience as an elected official while on the Pleasant Hill School
Board. In order to save funds the school district decided to contract out for a bus
service rather than using School District employees. We ended up with a contract with
Laidlaw Transportation Services.
During the Annual School Board's Conference Laidlaw provided an annual dinner for all
the School Board members with whom it delivers transportation services. The dinner
was essentially a thank you in an effort to keep a positive business relationship with its
various School Boards. No business was ever discussed. In the past, with the limit at
$100, this was a permissible a.ctivity, but now when the limit is only $50 this could be
very problematic as there are very few hotels, at least in larger cities, that will provide a
dinner for less than $50. I suspect that at League of Oregon Cities conferences and so
forth different vendors may want to offer you meals essentially as a thank you. From
their perspective they have no intention to seek any undue influence, it is simply a
courtesy. Both you and the vendor will now need to make sure the value is less than
$50 and keep in mind that is the amount per person, not per event. The limit is for a
full year from any single source.
Unfortunately, it would be our initial reading of the new law that if you get this sort of
invitation and you do not know its value we would recommend you decline to attend.
Hopefully, the Ethics Commission or the next session of legislature will clarify that these
type of vendor-sponsored events are permissible. Until then unless you can verify the
value is less than $50 you risk an ethics violation.
Keep in mind the limit is cumulative, so if someone took you to lunch, say from the
Chamber of Commerce, and it costs $35, they can only offer another meal or gift worth
no more than $15 for the rest of the year.
A'ITACHMENT 1, PAGE 3
Council Ethics Memo
January 24, 2008
Page 4
EXPENSE REIMBURSEMENT OK
In further reading of the draft rules and ORS Chapter 244, I have now concluded that
my original concern, that all travel must be approved in advance, was an error. The
advance approval only applies if another entity is paying for the cost. This might occur
with entities like C-Valco, the Chamber of Commerce, or Metro Partnership as they
sometime put together delegations as part of a trade mission to encourage a
conference, convention, or business to locate in a community. If this opportunity does
arise, please let the City Manager know and we will work with his office to draft an
advance approval Resolution.
PUBLIC OFFICIAL NOW INCLUDES VOLUNTEER
Another aspect of the new law which will likely prove difficult to administer is that it
defines public official very broadly. It defines public official as, "Public official means
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, agent. or otherwise
irrespective of whether the person is compensated for the services." ORS 244.020(13)
[Emphasis added]
The language "agent or otherwise irrespective of whether the person is compensated
for their services" is very, very broad. It likely includes members of your commissions
and advisory committees as well as volunteers. At this point in time the best we can do
is to recommend that the City Manager alert the citizens who are currently serving
Springfield as volunteers to be aware that the law appears to apply to them, and if they
have any questions or concerns to contact his office.
YOU MUST NOW REPORT STATEMENT OF ECONOMIC INTEREST QUARTERLY
Finally, the new law also changes the information you will need to report on your
annual economic interest statement each April 15th. The reports are now going to be
quarterly, and they will require the reporting of sources of income (not amounts) over
$1,000, if the source could or does business with the City or has an administrative or
legislative interest with City. Gifts in certain categories over $50 (for example trade
mission expenses paid for another entity), and debts of $1,000 if owed to someone with
whom you have been doing business or who may have legislative or administrative
interest with the City of Springfield. We will again work with the City Manager on this
when the reporting requirement is closer at hand. It will be much easier to see the
scope of the reporting requirements when we can see the form that will be developed
by the. Ethics Commission.
ATIACHMENT 1, PAGE 4
Council Ethics Memo
January 24/ 2008
Page 5
Also attached are some frequently asked questions and answers prepared by Scott
Winkels of the League of Oregon Cities staff.
. Due to the magnitude of these changes, we would be pleased to go over them in a
Work Session. It would likely take about 15 minutes.
BW: II k
Enclosure
N:\City\COUNCIL\GENERAL\Memo to Council RE Ethics.wpd
A'ITACHMENT 1, PAGE 5
New Ethics Rules; Frequently Asked Questions
January 9, 2008
The new ethics requirements are taking effect January 1,2008, and the League has
received many questions from city officials concerned with how these new rules will
affect them.. While a court challenge and an ongoing administrative rule making process
leave many issues unclear, there is enough information to provide preliminary.guidance
on some of the more commonly asked questions. If you have a question that isn't
'addressed below, you are encouraged to contact Scott Winkels at the League office at
(503) 588-6550 or swinkels{ll),orcities.org .
Q: I'm a city official andI've been given a gift by someone who has an official
interest in my city and I don't know the value of the gift. What do I do?
A: With the new ethics requirements, you may accept $50 worth of gifts from a single
source in a calendar year. If you are unable to ascertain the value of a gift from the
sender then you need to determine what the resale value of the item is. If you reasonably
believe that the resale value of the gift is under $50 then you may keep it, if not, the gift
must be returned. However, there are exceptions to this rule. Unsolicited awards such
as plaques or desktop items are not considered gifts under the new law. Additionally,
monogrammed or personalized items such as a commemorative clock are assumed to
have a value of less then $25 under the proposed ,rules.
Q: I'm a mayor and the director of the local chamber of commerce would like to
take me to lunch to discuss a matter before the city council, am I allowed to accept
this invitation?
A: Yes, but the lunch may not cost the provider more than $50. It's important to keep in .
mind 'that the $50 limit is an annual aggregate limit. For example; if the lunch costs the
provider $35, the chamber director would then be allowed to spend $15 on non-exempted
gifts and food on you for the next 12 months.
Q: A business in my community is offering a public promotion and the value I
would receive if I accepted the promotion would be over $50. Am I allowed to
participate in the promotion?
A: Yes. Benefits and things of value that the general public is eligible to receive are not
considered gifts under the new rules.
Q: I'm a city councilor and I've been invited to speak at a large community
gathering where lunch is provided. Is this allowed underthe new ethicsrules?
A: Yes, under the new ethics rules you may accept free food and drink, regardless of cost,
if you are attending an event for the purpose. of making a public speech, answering
questions or discussing a matter in your official capacity.
A'ITACHMENT 1, PAGE 6
Q: I've been asked to go along on an. economic development trip and some of my
expenses are being paid for by a private party. I'm sure my expenses will be more
than $50, am I allowed to go on the trip?
A: Yes, provided that you are officially representing your city and the trip is approved by
your city council. Keep in mind that other gift prohibitions still apply; you may not
accept gifts of entertainment (unless the entertainment is incidental to another event) and
you may not accept material gifts with a value greater than $50. The Legislature made it
perfectly clear that intend to prevent public officials from participating in economic'
development activities, fact frnding, cultural exchanges or sister city programs.
Q: I'm a mayor and a local winery wishes to give me a case of wine to take-with me
to a conference. Is this allowed?
A: If the value of the wine is over $50 then this would not be allowed. What you need to
keep in mind is that law deals with the value of the gift accepted, what you do with that
gift after you take possession of it is not relevant.
Q: I now have to file quarterly Statements of Economic Interest. Am I required to
publicly declare how much money I make and the amount of my debts?
A: Not exactly.Y ou are required to report the SOURCE of any income over $1000
brought into your household by you or any adult that lives with you if it is derived from a
person or entity that has a special il'lterest in you as a public official, not the A1'y10"LT}~T.
You are only required to report debts if you owe them to a person who has a special
interest in you as a public official. You do not have to report credit card debt, mortgages
or loans from banks or credit unions.
Q: I'm a city ~ouncilorand my'spouse is a city employee. How will the new rules
dealing with nepotism impact my role as a councilor?
A: They shouldn't impact your role significantly if at all. The new nepotism rules
prohibit someone from. directly supervising, hiring, promoting, terminating or
disciplining a relative or member of household. As a city councilor, you most likely do
not take an active rule in the day-to-day supervision of city employees.
Q: I'm an administrator of a small city and some of my relatives work for the city.
Am I allowed to manage these employees?
A: You may not supervise your employee relatives unless your city adopts policies
specifying how these employees will be managed in a way that avoids bias. However;
even if your city adopts such policies, you may not hire, terminate, promote or discipline
relatiyes.'Thosedecisionsmust be made by another party.
A'ITACHMENT 1, PAGE 7 ,
Q: I have an -invitation for an event and I don't know if it's allowable under the
new rules. How should I proceed?
A: Ask the Oregon Government Ethics Commission (OGEC). The new laws give "safe
harbor" from penalties for a public official that acts in accordance with formal opinions
or staff advice issued by the OGEC. Please keep in mind that this provision only
provides protection if you supply ALL of the pertinent information regarding your
situation.
Q: I sit on the board of directors for my local council of governments and lunch is
Ilrovided at our meetings~ Should I start bringing my own food?
A: Culinary and dietary issues aside, that's not necessary. If you are attending a meeting
as a representative of your city or you are discussing issues affecting your city then the
meal provided to you is not considered a gift. '
Q: As a Mayor, I'm often given complimentary tickets to community and sporting
events. I, don't wish to be rude but I don't want to end up in front of the Ethics
Commission either. How should I deal with this?
A: Your situation is tricky. Gifts of entertainment are prohibited under the new rules but
there are exceptions. If you attend an event and are there to perform a ceremonial or
official function such as throwing out the first pitch or welcoming the crowd, then you
may accept complimentarjadrnission to the event. Also, you may accept a gift of
entertainment.ifthe entertainment is incidental to another event. For instance, if you
attend a conference in you official capacity and the program includes entertainment, the
entertainment is not considered a gift because it is incidental to the main event -the
conference. '
Q: I'm a city manager and my daughter has been invited to attend a movie with a
classmate. The classmate's parents may have a special interest in the city I manage.
May my child accept movie tickets from her friend?
A: No, your child could not accept the movie tickets but could accept gifts of food and
drink while at the movies. Please keep in mind that the $50 aggregate gift limit extends
to your family as well. For example, if your daughter accepts $15. from her friend's
parents, the amount her parents could provide you or a member of your household would
be reduced to $35 for the next 12 months.
.,:-C
ATI'ACHMENT 1, PAGE 8
WHO PAYS?
Guide to Oregon Government Standards & Practices Act
Gift limitations and Exceptions - ORS 244.020(S)(b) Exceptions (A)-(N)*
#t;?>~II()wa bJe'as.'E~ce~ti~~~1~r~1,f!;:~~.Ij:st,(~x'c~pti.Op"vI1"';
. ..', '.;' ~. T. . .
Social gathering where food and beverages are
informall~ Qrovided
Plated sit-down meal
SSO/year cumulative Gift limit applies
Must receive authorization to represent public body and activity must be .:;~J\How~ple:~s':;E,x~ep'ti6hto<"~'".
I "officially sanctioned" via written approval from councilor supervisor. .t3'ifct:'~Ryr~~lt~~~eRti0n ~(h1)f .
None of above ' S;SO/year cumulative Gift IIITllt applies
I
Public Official will deliver speech, make presentation,
participate on panel
Public Official will "represent" public body but will
not deliver speech, make presentation, participate on
panel
; Must receive authorization to represent public body via written approval
: from councilor supervisor.
iSO/year cumulative Gift IIITlIt applies
Public Official will "represent" public body
· Must receive authorization to represent public body and activity must be
"officially sanctioned" and trip expenses approved in advance via written
approval from councilor supervisor.
Must receive authorization to represent public body via written approval
, from councilor supervisor.
Allowable as ExceQtion to"Gift ~ules (exceQtion"(C)),
Prepared by Alison Kean Campbell
Metro Senior Assistant Attorney
January 2008
None of Above ; SSO/year cumulative Gift limit applies
* Note: this chart is intended as a guide only, and is not
a substitute for legal advice regarding specific situations.
Administrative Rules are being revised by Ethics Commission; call
Ethics Commission at 503-378-5105 regarding application of these
rules to specific situations. - .
ATI'ACHMENT 2 )32ap
SSO/year cumulative Gift limit applies
OREGON GOVERNMENT ETHICS COMMISSION
DIVISION 5
GIFTS
OAR 199-005-0005
Determining the Value Received by Public Officials
(1) Purpose. The purpose of this nile is to guide public officials, candidates and others in
determining the value of items or services received by public officials to ensure accurate
reporting in ORS 244.100 and to comply with gift and honoraria limits in ORS 244.025 and ORS
244.042.
(2) The fair market value of the merchandise, goods, or services received shall be used to
determine benefit or value. Fair market value is the dollar amount goods or services would bring
if offered for sale by a person who desired, but was not obligated, to sell and purchased by one
who is willing, but not obligated, to buy.
(a) In calculating the benefit or value conferred to a public official, any portion of the benefit
transferred to an entity that is tax-exempt under section 501(c) of the Internal Revenue Code
shall not be included as part of the benefit or value to the public official, if the public official
does not claim the charitable contribution on personal tax returns.
(b) In calculating the per person cost at receptions or meals the payor of the public official's
admission or meal shall include all costs other than any amount donated to a charity.
(c) The following example demonstrates how the value of a charitable dinner would be
calculated.. A person with a legislative or administrative interest buys a table for a charitable
dinner at $100 per person. If the cost of the meal was $25 and the amount donated to charity was
$75, the benefit conferred on the public official is $25. This example requires that the public
official does not claim the charitable contribution on personal tax returns.
(3) For receptions and meals with multiple attendees, but with no price established to attend, the
source of the public official's meal or reception shall use reasonable methods to determine the
per person value or benefit conferred. The following examples are deemed reasonable methods
of calculating value or benefit conferred:
(a) The source divides the amount spent on food, beverage and other costs (other than charitable
contributions) by the number of persons whom the payor reasonably expects to attend the
reception or dinner;
(b) The source divides the amount spent on food, beverage and other costs (other than charitable
contributions) by the number of persons who actually attend the reception or dinner; or
(c) The source calculates the actual amount spent on the public official.
(4) Upon request by the public official, the source shall give notice of the value of the
merchandise, goods, or services received.
ATI'ACHMENT 3, PAGE 1
(5) Attendance at receptions that qualify as an exception to the gift definition under ORS
244.020(5)(b)(L) is permitted without regard to the fair market value of the food and beverage
provided.
Stat. Auth.: ORS 244.290
Stats. Implemented: ORS 244.020, 244.025, 244.042 & 244.100
OAR 199-005-0010
Resale Value of Unsolicited Tokens or Awards
(1) The purpose of this rule is to assist public officials in determining the resale value of items
provided under ORS 244.020(5)(b )(C).
(2) Engraved or otherwise personalized items that include a public official's name are deemed to
have a resale value under $25, unless the personalized item is made from gold or some other
valuable material that would have value over $25 as a raw material.
Stat. Auth.: ORS 244.290
Stats. Implemented: ORS 244.020
OAR 199-005-0015
Attendance at Receptions, Meals or Meetings under ORS 244.020(5)(b )(E)
(1) The purpose of this exception is to allow public officials to attend organized, planned events
and engage with the members of organizations by speaking or answering questions, participating
in panel discussions or otherwise formally discussing matters in their official capacity. This
exception to the gift definition does not authorize private meals where the participants engage in
discussion. The following list of factors may indicate whether expenditures are permitted under
this exception, although the event may qualify even if not every factor is met:
(a) A large number of people or groups are invited. For example, all members of an organization
are invited.
(b) The invitations or programs are sent in advance.
(c) The event is publicized.
(d) The reception, meal, or meeting is open to the public.
(e) Written materials such as a printed program are available.
(t) The public official delivers a planned speech or remarks to the entire audience.
(g) The public official participates in a formal question and answer session before the entire
audience.
(2) The following definitions apply to this rule.
(a) "Organization" means any public body, corporation, partnership, proprietorship, firm,
enterprise, franchise, association, trust, or other entity other than an individual.
(b) "Speak" means to give a speech or otherwise formally address or converse with the members
of the organization or participants at a reception, meal, or meeting. Self introductions or other
perfunctory remarks do not constitute speaking for purposes of this exception.
( c) "Answer Questions" means to engage in formal discussion, such as on a panel or some other
arrangement, where a moderator or the participants of the reception, meal, or meeting ask
questions to a public official.
- -.-)
A'ITACHMENT 3, PAGE 2
(d) "Reception" means a social gathering. Receptions are often held for the purpose of extending
a ceremonial or formal welcome and may include private or public m~etings during which guests
are honored or welcomed. Foo~ and beverages are often provided, but not as a plated, sit-down
meal.
Stat. Auth.: ORS 244.290
Stats. Implemented: ORS 244.020
OAR 199-005-0020
Gift Exceptions in ORS 244.020(5)(b)(F) and (H)
(1) The purpose of this rule is to provide definitions and clarification for two of the gift
exceptions that permit public officials to accept payment for travel conducted in the public
official's official capacity, for certain limited purposes. Travel that meets the requirements of
ORS 244.020(5)(b )(F) or (H) and this rule may be either within the United States or
international.
(2) As this term is used in ORS 244.020(5)(b )(F) and (H), "representing" a unit of government
(state, local or special government body) means that the public official is making an authorized
appearance in an official capacity on behalf of the public body. Unless the employing public
body determines otherwise in advance of the travel, the following is sufficient to constitute prior
authorization:
(a) A supervisor may approve the public official's representation;
(b) A governing board or commission of a public body may approve the representation of the
governing board members or commissioners, respectively;
( c) An appointed committee of legislators may approve the representation of individual
legislators; or
(d) Individual elected officials, such as the governor, judges, district attorneys or local or
statewide elected officials, may authorize their own appearances.
(3) As the term is used in ORS 244.020(5)(b)(F), a "not-for-profit corporation that is tax exempt
under section 501(c)(3) of the Internal Revenue Code and that receives less than five percent of
its funding from for-profit organizations or entities" is determined to qualify as an eligible not-
for-profit corporation meeting the 5% threshold by the information on the most recent tax return
filed by the organization prior to the time the expenses for authorized travel were incurred.
(4) For purposes of ORS 244.020(5)(b )(H),
(a) A "fact finding mission" is any activity related to a cultural or educational purpose, or any
activity aimed at providing intergovernmental assistance, such as for the purpose of international
aid or sharing best practices, or developing intergovernmental relationships directly related to the
public official's duties. Thesponsor of a fact finding mission should be directly and immediately
associated with the event or location being visited. ,
(b) "Trade Promotion" means an activity for the purpose of encouraging or developing
commerce or the buying and selling of goods and services.
(c) "Economic Development Activities" mean activities undertaken for the purpose of
strengthening, expanding, or enhancing the economy, or activities that provide community
development or cultural enhancement. Specific activities include, but are not limited to:
ATI'ACHMENT 3, PAGE 3
promoting tourism; promoting a favorable investment climate to strengthen businesses; creating
jobs; raising real wages; assisting Oregon communities to build a capacity to retain, expand or
attract business; improving national and global competitiveness of Oregon companies; improving
transportation access; and marketing products, services, or opportunities.
(d) "Officially Sanctioned" means approved by a state or local public body in writing by a person
authorized by the public body to provide that approval, or at a public meeting by the governing
body to the public body. Unless the public body determines otherwise, the following is sufficient
to constitute officially sanctioned:
(A) A supervisor may approve expenses for an employee;
(B) A governing board or commission of a public body may approve expenses for governing
board members or commissioners, respectively;
(C) An appointed committee of legislators may approve expenses for individual legislative
officials; or
(D) Individual elected officials, such as the governor, judges, district attorneys or local or
statewide elected officials may authorize their own expenses.
(E) Local or statewide executive department heads who do not report to a supervisor may
authorize their own expenses.
(e) "Expenses Approved in Advance" means expenses approved by the public body, either in
writing by a person authorized by the public body to provide that approval, or at a public meeting
by the governing body to the public body before the time of the activity. Unless the public body
determines otherwise, the following is sufficient to constitute authorization:
(A) A supervisor may approve expenses for an employee;
(B) A governing board or commission of a public body may approve expenses for governing
board members or commissioners, respectively;
(C) An appointed committee of legislators may approve expenses for individual legislative
officials; or
(D) Individual elected officials, such as the governor, judges, district attorneys or statewide
elected officials, may authorize their own expenses.
Stat. Auth.: ORS 244.290
Stats. Implemented: ORS 244.020
OAR 199-005-0025
Receptions and Entertainment permitted under ORS 244.020(5)(b)(L), (M) and (N)
(1) The purpose of this rule is to clarify terms used in the three gift exceptions in ORS
244.020(5)(b)(L), (M) and (N).
(2) A "reception" means a social gathering as defined in OAR 199-005-0015(2)( d).
(3) "Incidental" means secondary or minor, but associated to something more important.
Entertainment that is incidental to the main purpose of another event is provided in conjunction
with a primary event (such as a singer or band at an awards dinner). Incidental entertainment is
secondary in importance and in time devoted to the entertainment compared to the primary, non-
entertainment event. Entertainment that involves personal participation is not incidental to
another event (such as a golf tournament at a conference).
A'ITACHMENT 3, PAGE 4
(4) "Entertainment" means amusement or diversion. Entertainment may be provided by others
(such as athletes at sporting events) but also includes events where the public official, relative, or
member of household personally participates. Examples of entertainment include, but are not
limited to concerts, plays, movies, operas, sporting events, participating in sports (golf, skiing,
hunting or fishing, etc), comedy shows, and similar events.
(5) A public official appears at an entertainment event for a "ceremonial purpose" when the
source of the entertainment requests the presence of the public official at a special occasion
associated with the entertainment. Staff members accompanying a public official may also attend
if they are performing official duties. An example of an appearance by a public official at an
entertainment event for a ceremonial purpose includes, but is not limited to, throwing the first
pitch at a professional or college baseball game, appearing in a parade, and ribbon cutting for an
opening ceremony. To qualify, the entertainment must be provided by the source of the
entertainment, and the public official must have an official role in the entertainment event.
(6) "Representing" state, local or special government bodies has the meaning defined in OAR
199-005-0020(2).
Stat. Auth.: ORS 244.290
Stats. Implemented: ORS 244.0020
OAR 199-005-0030
Determining the Source of Gifts
(1) ORS 244.025 and ORS 244.040(2)(e) limit the offering and receipt of gifts from sources that
could reasonably be known to have a legislative or administrative interest in the governmental
agency over which the public official holds any official position or over which the official
exercises any authority. This rule is intended to clarify how a public official determines who the
source of the gift is. Public officials need to be aware of the source of any gifts they ,receive (or
those that are received by their relatives or members of their household), regardless of amount, to
make sure that they comply with the $50 limit on gifts from a single source in a calendar year.
To that end, public officials should not accept gifts in any amount without obtaining information
from the person or entity offering the gift as to who is the source of the gift. It is the public
official's personal responsibility to ensure that no single source provides gifts exceeding an
aggregate value of $50 in a calendar year, if the source has a legislative or administrative
interest.
(2) The source of any gift provided to a public official is the ultimate payor(s) of the expense.
(3) The $50 gift limit in ORS 244.025 applies separately to the public official or candidate, and
to the public official or candidate's relatives or members of household. Each such individual may
accept gifts from a single source of a total of $50 per calendar year.
Stat. Auth.: ORS 244.290
Stats. Implemented: ORS 244.0025, 244.040
A'ITACHMENT 3, PAGE 5
OAR 199-005-0035
Guidelines for compliance with ORS 244.020(5), ORS 244.025, ORS 244.040, ORS 244.042
and ORS 244.047
(1) The purpose of this rule is to define certain terms and to clarify substantive provisions of
ORS 244.020(5), ORS 244.025, ORS 244.040, ORS 244.042 and ORS 244.047.
(2) The terms "official capacity" or "official duties", means. that the public official's actions are
directly related to serving the state of Oregon or any of its political subdivisions or any other
public body as a public official.
(3) 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.
(4) As used in ORS 244.040(2)(c), "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. Expenses paid by the public body to
their own public officials need not be reported by the public official under ORS 244.100.
(5) "Confidential information" means any record that is exempt from public disclosure or
inspection under state law, or any information obtained in the course of or by reason of holding
position as a public official that is not publicly disclosed. The record or information is no longer
confidential if it has been voluntarily disclosed by the public body, or been disclosed through a
public records disclosure order or court order.
(6) As used in ORS 244.047, a public contract is "authorized by" a public official if the public
official performed a significant role in the selection of a contractor or the execution of the
contract. A significant role can include recommending approval or signing of the contract,
including serving on a selection committee or team, or having the final authorizing authority for
the contract.
(7) As defined in ORS 244.020(13), 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 or otherwise." An "agent or otherwise" 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
consistently with Attorney General Opinion No. 8214 (1990).
Stat. Auth.: ORS 244.290
Stats. Implemented: ORS 244.020, 244.025, 244.040, 244.042, & 244.047
ATIACHMENT 3, PAGE 6
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