Gifts to Officials' Family Members

Many major cities do not prohibit gifts from those seeking special benefits from the city government (restricted sources) to
family members of city officials. Such a prohibition may seem a stretch,
at least theoretically. How can a government interfere in the gifts given to an official's family members? Consider this situation, from 2011, which recently became
public.<br>
<br>
According to <a href="http://www.washingtonpost.com/local/dc-politics/va-gov-mcdonnell-in-clo…; target="”_blank”">a
recent article in the Washington <i>Post</i></a>, the CEO of a dietary
supplement company seeking to get acceptance of its new supplement
in Virginia paid $15,000 in catering costs for the wedding reception
of the daughter of Virginia's governor. Three days before the
wedding, the governor's wife spoke at a seminar about how the new
supplement would be a way to lower health-care costs in Virginia.
Three months later, the supplement's launch party was held at the
gubernatorial mansion.<br>
<br>

The governor says that he didn't even have to disclose the $15,000
gift because it didn't go to him. And yet not a single person in
Virginia could possibly believe that the gift was not made to him,
and by someone who was seeking (and getting) special benefits for
his business. In fact, we all know that the way to get to an
official's heart, if not directly benefit her household, is to make
a gift to a child or needy sibling or parent.<br>
<br>
And yet in a search through local government ethics codes, I
found some important jurisdictions with good ethics programs, where gifts to members of an official's
immediate family are allowed. Here's what I found:<blockquote>

Atlanta - allowed<br>
Chicago - prohibited<br>
Dallas - allowed<br>
Denver - prohibited<br>
Jacksonville - allowed, unless considered an indirect gift to the
official<br>
King County, WA - allowed, unless considered an indirect gift to the
official<br>
Los Angeles - allowed<br>
Miami - prohibited<br>
Minneapolis - allowed<br>
New York City - allowed<br>
Palm Beach County - allowed, unless considered an indirect gift to
the official<br>
Rhode Island - prohibited<br>
San Diego - allowed<br>
Seattle - allowed</blockquote>

A prohibition on gifts made to an official "indirectly" can be applied to gifts to family
members, but it all depends on the ethics commission's interpretation. Such a prohibition may
or may not be applied in the wedding gift situation. The gift was effectively a wedding gift to the
daughter, and the CEO did have a personal relationship with the
family. He could argue that there was no intention to make an
indirect gift to the governor, and that the governor did not benefit.<br>
<br>
That is why the City Ethics Model Code prohibits both indirect gifts
and gifts to family members. Here is the language:<blockquote>

An official
or employee, his or her spouse or domestic
partner, child or step-child, parent, or member of his or her
household,
may not solicit nor accept anything of value, directly or indirectly
...</blockquote>

The International Municipal Lawyers Association model code also
prohibits gifts to family members of officials.<br>
<br>
The cities and states that allow gifts to immediate family members
from restricted sources, even if they prohibit indirect gifts,
should publicly discuss this wedding case. If people feel that such a gift should be allowed, then they can leave their ethics code as is. If not, the law
should be changed. If officials prefer to keep just the term
"indirect," it should be made clear that this term covers gifts to
family members.<br>
<br>
San Antonio has valuable language in its gift provision that ties
the official to the acceptance by others of gifts: “A city official
or employee shall take reasonable steps to persuade: (1) a parent,
spouse, child, or other relative within the second degree of
consanguinity or affinity, or (2) an outside business associate not
to solicit, accept, or agree to accept any gift or benefit...”
(§2-45(d)). This is a useful addition to prohibiting these
gifts.<br>
<br>
Robert Wechsler<br>
Director of Research-Retired, City Ethics<br>
<br>
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