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CC - Item 7E - Resolution approving a ticket distribution policy as required by FPPC section 18944.1ROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY C UNCIL FROM: JEFF ALLRED, CITY MANAGER DATE: JANUARY 12, 2010 SUBJECT: RESOLUTION APPROVING A TICKET DISTRIBUTION POLICY AS REQUIRED BY FPPC SECTION 18944.1 SUMMARY The Fair Political Practices Commission (FPPC) amended FPPC Regulation Section 18944.1 (Attachment A) on December 11, 2008, requiring local governmental agencies to develop a formal policy regarding the distribution of event tickets or passes from the City to any City Official. The attached resolution (Attachment B) and subsequent distribution policy conforms with FPPC Section 18944.1 and will ensure the City remains in compliance with this regulation. The City Attorney has reviewed the proposed resolution and policy and concurs that they in compliance with the law. The intent of FPPC Section 18944.1 is to ensure that any tickets or passes to events that are provided to City Officials are properly accounted for and disclosed. Numerous cities across the state own and operate entertainment venues, and this legislation was passed to ensure that admission to these venues was being properly disclosed by any public officials that were receiving admission. Since the City of Rosemead does not own any major entertainment venues, nor are there any located within the City boundaries, staff believes there will be very little impact by the implementation. This legislation includes new public disclosure requirements such as the publishing of ticket and pass information on the City's website. The legislation also specifies the requirements for reporting the value or cost of any such tickets or passes as income for tax reporting purposes. This legislation does not affect the reporting of tickets or passes to a public official when the official performs a ceremonial role or function on behalf of the City at the event. Staff Recommendation That the City Council adopt Resolution 2010-09 approving the adoption of a Ticket Distribution Policy. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Submit by: , Maatttlhew E. Hawkesworth Assistant City Manager Attachments: A - FPPC Regulation Section 18944.1 B - Resolution 2010-09 APPROVED FOR CITY COUNCIL AGENDA: ITEM NO. --1+ Attachment A (Regulations of the Fair Political Practices Commission Title 2, Division 6, California Code of Regulations) § 18944.1. Gifts: Tickets or Passes to Events. For purposes of this regulation "ticket or pass" means admission to a facility, event, show, or performance for an entertainment, amusement, recreational, or similar purpose. (a) Ticket or pass provided by source other than official's agency. A ticket or pass provided to an official for his or her admission to an event at which the official performs a ceremonial role or function on behalf of the agency is not a gift to the official. (b) Ticket or pass provided to official by official's agency. (1) When an agency provides a ticket or pass to an official of that agency, the ticket or pass is not subject to the provisions of this regulation, provided that the official treats the ticket or pass as income consistent with applicable state and federal income tax laws and the agency reports the distribution of the ticket or pass as income to the official in complying with the provisions of subdivision (d) below. (2) When an agency provides a ticket or pass to a public official that otherwise meets the definition of gift under Section 82028 and is not exempt under applicable Commission regulations, the official will meet the burden under Section 82028 that equal or greater value has been provided in exchange therefor, provided that all of the following requirements are met: (A) With respect to a ticket or pass from an outside source provided to an official by the official's agency: (i) The ticket or pass is not earmarked by the original source for use by the agency official who uses the ticket or pass; (ii) The agency determines, in its sole discretion, which official may use the ticket or pass. (iii) The distribution of the ticket or pass by the agency is made in accordance with a policy adopted by the agency in accordance with subdivision (c) below. (B) With respect to a ticket or pass provided by the official's agency to an agency official, which ticket or pass the agency obtains (i) pursuant to the terms ofa contract for use of public property, (ii) because the agency controls the event (such as a state or county fair), or (iii) that is purchased by the agency at fair market value, the distribution of the ticket or pass is made in accordance with subdivision (c) below. (c) Any distribution of tickets or passes under subdivision (b)(2) by an agency to, or at the behest of, its officials must be made pursuant to a written policy duly adopted by legislative or governing body of the agency that state the public purposes to be accomplished by the agency policy. If the agency maintains a website, the written policy shall be posted on the website in a prominent fashion. The written policy shall contain, at a minimum, the following: (1) a provision setting forth the public purposes of the agency to be accomplished by the distribution of tickets or passes; (2) a provision requiring that the distribution of any ticket or pass by the agency to, or at the behest of, an official accomplish a public purpose of the agency; and (3) a provision prohibiting the transfer by any official of any ticket or pass, distributed to such official pursuant to the agency policy, to any other person, except to members of the official's immediate family solely for their personal use. (d) The distribution of a ticket or pass pursuant to this regulation, including a ticket or pass that is provided to the official under subdivision (b)(1) above, shall be posted, on a form 2 provided by the Commission, in a prominent fashion on the agency's website, within 30 days after the distribution. If the agency does not maintain a website, the form shall be maintained as a public record, be subject to inspection and copying under Section 81008(a), and be forwarded to the Commission for posting on its website. The posting shall include the following: (1) the name of the person receiving the ticket or pass, except that if the ticket or pass is distributed to an organization outside the agency, the agency may post the name, address, description of the organization, and the number of tickets or passes provided to the organization in lieu of posting the names of each individual from the organization; (2) a description of the event; (3) the date of the event; (4) the face value of the ticket or pass; (5) the number of tickets or passes provided to each person; (6) if the ticket or pass is behested, the name of the official who behested the ticket or pass; and (7) a description of the public purpose under which the distribution was made or, alternatively, that the ticket or pass was distributed as income to the official. (e) The Commission recognizes the discretion of the legislative or governing body of an agency to determine whether the distribution of a ticket or pass serves a legitimate public purpose of the agency, provided the determination is consistent with state law. (1) The provisions of subdivision (b) apply only to the benefits the official receives by the admission and are not applicable to any other benefits the official may receive that are not included with the admission, such as food or beverages, or any other item presented to the official at the event. 3 Note: Authority cited: Section 83112, Government Code. Reference: Section 82028, Government Code. HISTORY 1. Renumbering of former section 18726.7 to section 18944.1 with amendment of section heading filed 6-22-94; operative 6-22-94 (Register 94, No. 25). 2. Change without regulatory effect relocating section filed 11-17-94 pursuant to section 100, title 1, California Code of Regulations (Register 94, No. 46). 3. Amendment of first paragraph and subsections (a)-(b) and (d)-(e) filed 7-25-95; operative 7-25-95 pursuant to Government Code sectionl 1343.4(d) (Register 95, No. 30). 4. Repealer and new section filed 1-8-2009; operative 2-7-2009. Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office ofAdministrative Law, 3 Civil 010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements) (Register 2009, No. 2). 4 RESOLUTION: 2010-09 RESOLUTION OF THE ROSEMEAD CITY COUNCIL ESTABLISHING A TICKET POLICY FOR TICKETS RECEIVED BY THE CITY FROM THIRD PARTIES TO CONFORM WITH CALIFORNIA CODE OF REGULATIONS, SECTION 18944.1, AS AMENDED BY THE FAIR POLITICAL PRACTICES COMMISSION WHEREAS, on December 11, 2008, the Fair Political Practices Commission (FPPC) amended Section 18944.1 of the California Code of Regulations relating to tickets or passes to events distributed to public officials; and WHEREAS, the new regulation, which became effective February 8, 2009, sets forth the conditions under which a ticket or pass to an entertainment event distributed by an agency to its officials will not be treated as a gift to the official under the Political Reform Act and FPPC regulations; and WHEREAS, under the new regulation, tickets to an event for entertainment purpose distributed by an agency to its public officials will not be considered a gift if: 1) the public official uses or behests the tickets for a public purpose, or 2) the public official treats the tickets as income in accordance with applicable state and federal income tax laws (tickets provided by an agency to its officials for which the agency is reimbursed are not subject to the regulation); and WHEREAS, in order to avoid a distribution of tickets from an agency to its officials from being treated as a gift, Section 18944.1 requires an agency to adopt a ticket policy which contains, at a minimum: 1) provisions setting forth the public purposes of the agency to be accomplished by the distribution of tickets or passes; 2) a provision requiring that the distribution of any ticket or pass by the agency to, or at the behest of, an official accomplish a public purpose of the agency; and 3) a provision prohibiting the transfer by any official of any ticket or pass, distributed to such official pursuant to the agency policy, to any other person, except to members of the official's immediate family, solely for their personal use; and WHEREAS, the amended regulation requires that the agency disclose on its website all tickets distributed to its officials for a public purpose as well as those which the official will treat as income. Such disclosure is to be made within 30 days after the distribution on a form provided by the FPPC, which shall include 1) the name of the person or organization receiving the tickets, 2) a description of the event, 3) the date of the event, 4) the face value of the ticket, 5) the number of tickets provided to each person/organization, 6) if the ticket was behested, the name of the official who behested the ticket, and 7) a description of the public purpose under which the distribution was made or, alternatively, that the ticket will be treated as income by the official; and WHEREAS, the policy conforms to the requirements of Section 18944.1 as set forth above; and WHEREAS, it designates the City Manager or his/her designee(s) as the Ticket Administrator for purposes of implementing the policy and establishing the ticket distribution procedures in accordance with the policy. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD HEREBY RESOLVES AS FOLLOWS: Approves the "Ticket Distribution Policy" (Exhibit 1) to conform with California Code of Regulations, Section 18944.1, as amended by the Fair Political Practices Commission PASSED, APPROVED AND ADOPTED this 12th day of January 2010. Margaret Clark Mayor ATTEST: Gloria Molleda City Clerk APPROVE AS TO FORM: Joseph M. Montes City Attorney CITY OF ROSEMEAD r! Administrative Policy Manual SUBJECT: TICKET DISTRIBUTION POLICY Policy Number: Date Established: Date Revised: City Council Approval: PURPOSE: To establish a ticket policy for the receipt of tickets or passes by City officials. GENERAL POLICY Tickets or passes to an event distributed by the City to public officials will not be considered a gift if: 1) the public official uses or behests the tickets for a public purpose; or 2) the public official treats the tickets as income in accordance with applicable state and federal income tax laws. Tickets provided by the City to its officials in which the City is reimbursed are not subject to the regulation. Additionally, in order to avoid a distribution of tickets from the City to its officials from being treated as a gift, Section 18944.1 requires the City to adopt a ticket policy that contains the following minimal elements: 1) Provisions setting forth the public purposes of the City to be accomplished by the distribution of tickets or passes; 2) A provision requiring that the distribution of any ticket or pass by the City to, or at the behest of, an official accomplish a public purpose of the City; and 3) A provision prohibiting the transfer by any official of any ticket or pass, distributed to such official pursuant to the City's policy, to any other person, except to members of the official's immediate family, solely for their personal use. Finally, the amended regulation requires that the City disclose on its website all tickets distributed to its officials for a public purpose as well as those that the official will treat as income. Such disclosure is to be made within 30 days after the distribution on a form provided by the FPPC (Form 700 - Schedule D). Information required on the FPPC form includes: • name of the person or organization receiving the tickets, • description of the event, • date of the event, • face value of the ticket, • number of tickets provided to each person/organization, ■ whether the ticket was behested, • if behested, the name of the official who behested the ticket, and • description of the public purpose under which the distribution was made or, alternatively, that the ticket will be treated as income by the official. PROVISIONS 1.0 Application of Policy. 1.1 This policy applies to tickets or passes, which provide admission to a facility or event for an entertainment, amusement, recreational or similar purpose, and are either: Page 1 of 4 Page 2 of 4 Policy xx-xx Ticket Policy a) Gratuitously provided to the City by an outside source; b) Acquired by the City by purchase; c) Acquired by the City as consideration pursuant to the terms of a contract for the use of a City venue; or d) Acquired and distributed by the City in any other manner. 1.2 This policy does not apply to any other item of value provided to the City or any City Official, regardless of whether received gratuitously or for which consideration is provided. 1.3 This policy shall supersede any other inconsistent written policy applicable to tickets or passes. 2.0 Definitions: Unless otherwise expressly provided herein, words and terms used in this policy shall have the same meaning as that ascribed to such words and terms in the California Political Reform Act of 1974 (Government Code section 81000, et seq., as the same may from time to time be amended) and the Fair Political Practices Commission ("FPPC") Regulations (Title 2, Division 6 of the California Code of Regulations, Sections 18110 et seq., as the same may from time to time be amended). 2.1 "City" or "City of Rosemead" shall mean and include the City of Rosemead, the Rosemead Community Development Commission, any other affiliated agency created or activated by the Rosemead City Council, and any departments, boards and commissions thereof. 2.2 "City Official" means every member, officer, employee or consultant of the City of Rosemead, as defined in Government Code Section 82048 and FPPC Regulation 18701. Such term shall include, without limitation, any City board or commission member or other appointed official or employee required to file an annual Statement of Economic Interests (FPPC form 700). 2.3 "City Venue" means and includes any facility owned, controlled or operated by the City of Rosemead. 2.4 "Immediate family" means the spouse and dependent children. 2.5 "Ticket" or "Pass" means and includes any form of admission privilege to a facility, event, show or performance for an entertainment, amusement, recreational or similar purpose. 3.0 General Provisions. 3.1 Purpose: The purpose of this policy is to ensure that all tickets or passes provided to the City shall be distributed in furtherance of public purposes. 3.2 No Right to Tickets: The use of complimentary tickets is a privilege extended by the City and not the right of any person to which the privilege may from time to time be extended. 3.3 Limitation on Transfer of Tickets: Tickets or passes distributed to a City Official pursuant to this policy shall not be transferred to any other person, except to members of such City Official's immediate family solely for their personal use. Page 3 of 4 Policy xx-xx Ticket Policy 3.4 Prohibition Against Sale or Receiving Reimbursement for Tickets: No person who receives a ticket pursuant to this policy shall sell or receive reimbursement for the value of such ticket. 4.0 Ticket Administrator. 4.1 The City Manager or his/her designee(s) shall be the Ticket Administrator for purposes of implementing the provisions of this policy. 4.2 The Ticket Administrator shall have the authority, in his or her sole discretion, to establish procedures for the distribution of tickets in accordance with this policy. All requests for tickets that fall within the scope of this policy shall be made in accordance with the procedures established by the Ticket Administrator. 4.3 The Ticket Administrator shall determine the face value of tickets distributed by the City for purposes of Sections 5.1, 5.2 and 7. 1, subparagraph (d), of this policy. 4.4 The Ticket Administrator, in his or her sole discretion, may revoke or suspend the ticket privileges of any person who violates any provision of this policy or the procedures established by the Ticket Administrator for the distribution of tickets in accordance with this policy. 5.0 Conditions Under Which Tickets May be Distributed: Subject to the provisions this policy, complimentary tickets may be distributed to City Officials under the following conditions: 5.1 The City Official reimburses the City for the face value of the ticket(s). (a) Reimbursement shall be made at the time the ticket(s) is/are distributed to the City Official. (b) The Ticket Administrator shall, in his or her sole discretion, determine which event tickets, if any shall be available under this section. 5.2 The City Official treats the ticket(s) as income consistent with applicable federal and state income tax laws. 5.3 The City distributes such ticket(s) to or at the behest of, an official in order to accomplish a public purpose. The following is a list of public purposes the City may accomplish through the distribution of tickets: (a) Performance of a ceremonial role or function representing the City at the event, for which the City Official may receive enough tickets for the City Official and each member of his or her immediate family. (b) The job duties of the City Official require his or her attendance at the event, for which the City Official may receive enough tickets for the City Official and each member of his or her immediate family. (c) Economic or business development purposes on behalf of the City. (d) Intergovernmental relations purposes, including but not limited to attendance at an event with or by elected or appointed public officials from other jurisdictions, their staff members and their guests. (e) Attracting or rewarding volunteer public service. (f) Supporting and/or showing appreciation for programs or services rendered by non-profit organizations benefiting Rosemead residents. Page 4 of 4 Policy xx-xx Ticket Policy (g) Encouraging or rewarding significant academic, athletic, or public service achievements by Rosemead students, residents or businesses. (h) Attracting and retaining highly qualified employees in City service, for which such employee may receive no more than four (4) tickets per event. (i) As special recognition or reward for meritorious service by a City employee, for which such employee may receive no more than four (4) tickets per event. Q) For use in connection with a City employee competition or drawing, for which there shall be made no more than four (4) tickets per person per event. (k) Recognition of contributions made to the City by former City Council Members or City Executive Managers, for which such former City Council Member or Executive Manager may receive no more than four (4) tickets per event. 6.0 Tickets Distributed at the Behest of a City Official. 6.1 Only the following City Officials shall have authority to behest tickets: City Council Members, the City Manger, Assistant City Manager and Department Directors. 6.2 Tickets shall be distributed at the behest of the City Official only for one or more public purposes set forth in Section 5.3 above. 6.3 If tickets are distributed at the behest of a City Official, such City Official shall not use one of the tickets so distributed to attend the event. 7.0 Disclosure Requirements. 7.1 Tickets distributed by the City to any City Official either i) which the City Official treats as income pursuant to Section 5.2 above, or ii) for one or more public purposes described in Section 5.3 above, shall be posted on a form provided by the FPPC in a prominent fashion on the City's website within thirty (30) days after distribution. Such posting shall include the following information: (a) The name of the recipient, except that if the recipient is an organization, the City may post the name, address, description of the organization and number of tickets provided to the organization in lieu of posting the names of each recipient; (b) a description of the event; (c) the date of the event; (d) the face value of the ticket; (e) the number of tickets provided to each person; (f) if the ticket was distributed at the behest of a City Official, the name of the City Official who made the behest; and (g) a description of the public purpose(s) under which the distribution was made, or alternatively, that the City Official is treating the ticket as income. 7.2 Tickets distributed by the City for which the City receives reimbursement from the City Official as provided under Section 5.1 above shall not be subject to the disclosure provisions of Section 7.1.