Legislative gift-taking eroding public trust

In an effort to stem the damaging headlines, Senate Democrats announced on Thursday their plans to introduce a package of bills to reform the gift rules for elected officials. The proposals include a ban on receiving any gifts from lobbyists, an overall reduction in the annual gift limit from $440 to $200 and an outright prohibition on accepting gifts of spa treatments, golf games and tickets to theme parks, concerts and sporting events.

“There is no question that recent events are testing the public’s faith in how our government does its work,” Sen. Ricardo Lara, D-Bell Gardens, said at the press conference. “We need to restore the public trust.” Of course, legislative leaders wouldn’t need more laws if they followed the best practices of their colleagues.

In the Assembly, Gatto has set the standard for ethics and transparency. He not only declined all international junkets, but disclosed gifts that even the state’s political watchdog would find unnecessary to report. His disclosure reports even include footnotes. 

Gatto follows spirit and letter of the law

“Giving and receiving small tokens are part of life,” Gatto said. “I try to follow the letter and spirit of the law, and that’s anything over $50.” In explanation of the gift certificate given to his daughter, Gatto said, “The rules are very clear that we have to report anything over $50.” 

Technically, Gatto’s interpretation of the law is correct. According to Fair Political Practices Commission’s instructions for the Form 700, the annual statement of economic interests, elected officials must report “gifts given to members of your immediate family” if the official can “exercise discretion or control over the use or disposition of the gift.” This “control over the use or disposition of the gift” also includes tickets to concerts and sporting events. It explains why Gatto reported tickets to the Rose Parade and Rose Bowl that he gave away to local high school students who had overcome adversity.

For several years, unlike many of his colleagues, Gatto has worked with teachers and administrators and found deserving students to take his spot at the big game.  And don’t think Gatto does it for the positive publicity. He’s been doing it for years and never told the press. The only place you’ll find it: on Gatto’s financial disclosure report, in compliance with state law.

Ethics: Appearance of impropriety

Jessica Levinson, a Loyola Law School professor who specializes in governmental ethics, said that the issue of elected officials accepting gifts is a balance between what is allowed versus what appears to cross the line of undue influence. “If the laws allows legislators to accept gifts, then is it improper or indecent for them to do so?” she asked. “While some gifts are permissible, it can intuitively feel problematic when our elected lawmakers accept gifts when we all strongly suspect they would not receive those gifts were it not for their official roles, and the power they wield in those roles.”

That appearance of impropriety is exacerbated when lawmakers travel with lobbyists on extravagant junkets to exotic locales. Last year, California lawmakers collected passport stamps from Germany, Switzerland, Cuba, Mexico, Poland, Norway, Taiwan, Israel, China, Armenia, Sweden, Canada and South Korea, much of it on the dime of special interest groups.

“When it comes to traveling and attending conferences, I want our officials to leave the Capitol and learn from others,” Levinson said.  “I don’t necessarily want them to do all of that on the public’s dime. When the conferences look fishy, or the sources of the funds have substantial business before the state, it is certainly fair to ask questions.”

Some legislators have avoided the questions altogether. During the Legislature’s 2013 spring break, while dozens of lawmakers were relaxing in Taiwan, Eastern Europe and Cuba, state Sen. Ted Lieu, D-Torrance, fulfilled his monthly Air Force reserve duty. In addition to Lieu, state Sen. Jim Beall, D-San Jose, and Assemblywoman Lorena Gonzalez, D-San Diego, have declined to participate in junkets. And, of course, so did the Legislature’s ethical leader, Mike Gatto. “We are a big state with international implications, but I choose to stay in California,” he said. “My policy is simple: I will travel for limited circumstances but only in California. I am a California official.”

By Katy Grimes

SACRAMENTO — It has never been more apparent that unelected state bureaucrats are also unaccountable to the Legislature. I attend legislative committee hearings every week, and despite the questions from lawmakers, the bureaucrats obfuscate, and get away with it.

High-speed rail is the most blatant example of this. Every hearing in which High-Speed Rail Authority CEO Jeff Morales has testified, leaves lawmakers shaking their heads because of his bureaucrat-speak — there are rarely answers to lawmakers’ questions.

And state bureaucrats get away with this.

A new Sheriff in town

The friendly, kind, portly bearded man who sat in the last row of the Assembly for six years is now in the Senate. Sen. Jim Beall may be kind and friendly, but Thursday he handed state bureaucrats their behinds. And it was a beautiful thing.

Used to speaking in circles at committee hearings, these bureaucrats, from the state Natural Resources agency, the troubled Parks and Recreation department, and the governor’s Department of Finance, didn’t know what hit them. It was as if Santa Clause had gone rogue.

Beall, a Democrat from San Jose, knows his way around a hearing room. He’s been a politician since he cut his teeth on the San Jose City Council, 1980 – 1994, as a county supervisor 1994 – 2006, and the Assembly 2006 – 2012.

The hearing was the Senate Committee on Budget and Fiscal Review, Subcommittee No. 2 on Resources, Environmental Protection, Energy and Transportation, and Beall made it very clear, politely, that he intended to get answers to his budget questions.

Troubled Parks Department appears still troubled

“The Parks and Recreation situation… what has taken place, since some of the funds have several problems?” Beall asked Farra Bracht with the Legislative Anakyst’s Office. Bracht explained the Dpartment of Finance went through all of the other special funds in the state, and matched them up with totals with what the Controller has.

“Regardless of the size of the fund, we need to make sure all of it is accounted for so we don’t get caught not accounting for it,” Beall said. “They are taxpayers funds.”

“This makes me nervous being chairman of the committee,” Beall said of the many special fund accounts in the state. “And when I am nervous, I do things.”

“A good starting point is to ask the Department of Finance what they are doing about it on an ongoing basis,” Bracht said.

Parks and Recreation scandal

While the State Parks and Recreation department was soliciting private donations to keep 70 state parks open, top agency employees were bilking the state for large vacation pay buyouts, and $54 million sat in a special fund, unreported.

Beall was relentless.

John Laird, the Secretary for the Natural Resources agency was unable to be at the hearing. Laird sent an Assistant Secretary for the agency in his place. But he mumbled his name, and no one asked him to identify himself again.  It was apparent Laird knew exactly which bureaucrat to send in his place if there was to be a grilling.

Kemp tried to quickly move away from the Parks and Rec scandal, but Beall instead asked him about the special funds. Kemp deferred to the Department of Finance.

And this is where the boring but masterful doublespeak and obfuscation began.

The Department of Finance said they were fully concerned with the problem, had done an extensive review of all special funds in the state treasury, and were satisfied there are no other cases of misrepresentation.

Beall asked about special funds not accounted for inside of the state treasury.

“We’re trying to determine the best way to do that, the best solution that satisfies everybody,” the finance representative said.

“You comments are so vague,” Sen. Jim Nielsen, R-Gerber, added. “Your comments give me no comfort.”

“Our job is to make things work correctly  — we will do that,” Beall said.

Beall and Sen. Hannah-Beth Jackson, D-Santa Barbara, asked Kemp to let them know specifically, the information needed to deal appropriately with special fund issues. They each made it very clear that neither of them was going to be happy with surprises.

“What do we do to help you in working together, so we govern responsible,” Jackson asked.

“Be as open and transparent as possible,” the Natural Resources Assistant Secretary said. “So when we sit down and talk, we communicate openly.”

Clearly frustrated, Jackson said, “I guess that’s as good as I’m going to get today.”