CORRESPONDENCE - #25 - Laserfiche WebLink

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This letter serves as a follow up to the December 1, 2021 "Complaint regarding Conflict of Interest by City Councilwoman Thai Phan" (the "Complaint"). The facts and allegations stated in the Complaint are incorporated herein. As a member of the Santa Ana City Council ("City Council"), Ms. Phan is prohibited by Government Code Section 87100 of the Political Reform Act of 1974 (the "PRA" or the "Act") from making, participating in making, or attempting to use her official position to influence any governmental decision in which she knew, or had reason to know, she had a financial interest. By making governmental decisions in which she had a financial interest, Ms. Phan violated Government Code Section 87100. The only acceptable remedy is for the City Council to formally rescind its November 16, 2021 approval of the Housing Opportunity Ordinance ("HOO") and convene a new vote among eligible, non -conflicted members of the City Council. I. Introduction to the Law When the PRA was enacted, the people of the state of California found and declared that previous laws regulating political practices suffered from inadequate enforcement by state and local authorities. (Government Code § 81001(h).) Government Code Section 81003 requires that the Act be "liberally construed to accomplish its purposes." As such, the Act sets the floor, but not the ceiling, for the conduct of public officials. The goal of the State's conflict -of -interest laws is to promote public confidence in public agencies. The Act is intended to ensure that "[p]ublic officials, whether elected or appointed ... perform their duties in an impartial manner, free from bias caused by their own financial interests or the financial interests of persons who have supported them[.]" (Government Code § 81001(b).) Section 87100 prohibits public officials from making, participating in making, or attempting to use their official positions to influence any governmental decision in which they knew, or have reason to know, they have a financial interest. A public official has a financial interest in a decision if it is reasonably foreseeable that the decision will have a "material financial effect" on a recognized economic interest of the official. (Government Code § 87103.) An analysis on this issue requires six steps to determine whether a public official has a conflict of interest in a governmental decision.' That analysis follows: 1. The public official must be one as defined in the Act. Government Code Section 82048 defines "[p]ublic official" to mean every member of a "local government agency." Government Code Section 82041 defines " [1]ocal government agency" to include a city council, which is "any department, division, bureau, office, board, commission or other agency" of a City. 2. The public official must make, participate in making, or attempt to use their official position to influence a governmental decision. A public official "makes a governmental decision" when the public official votes on a matter. (Regulation § 18704(a).) ' The Public Generally Exception (Regulations § 18703(a)) does not appear to apply here, nor does the Legally Required Participation Exception (Government Code § 87101).