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A Review of the Gift Law
<br />By Susan Naughton
<br />ity officials are generally prohibited
<br />from accepting gifts, with some
<br />limited exceptions.This article
<br />reviews the basic requirements of
<br />what is commonly referred to as
<br />the "gift law"The gift law provides
<br />that an interested person may not
<br />give a gift or request another to
<br />give a gift to a local official, and that
<br />a local official may not accept a gift
<br />from an interested person. (Minn.
<br />Stat. § 471.895.)
<br />Definitions. An "interested person" is
<br />a person, or a representative of a person
<br />or association, with a direct financial
<br />interest in a decision the local official
<br />is authorized to make.The gift law does
<br />not require that there be a specific
<br />decision involving the interested person
<br />pending at the time of the gift. As a
<br />result, an interested person likely includes
<br />anyone that may at some time provide
<br />goods or services to the city, such. as
<br />engineers, attorneys,, financial advisors,
<br />contractors, and sales representatives.
<br />In addition, virtually every resident of the
<br />city might at some time have a direct
<br />financial interest in a decision a city
<br />official is authorized to make, such as the
<br />levying of property taxes, the spreading .
<br />of special assessments, the valuation of
<br />property for tax purposes, the issuing of
<br />a license, the zoning of property, or the
<br />granting of a land-use permit.
<br />A "gift" is money, real or personal
<br />property, a service, a loan, a forbearance
<br />or forgiveness of indebtedness, or a
<br />promise of future employment that is
<br />given and received without the giver
<br />receiving consideration of equal or
<br />greater value in return (Minn. Stat.
<br />§ 10A.071).
<br />A "local official" is an elected or
<br />appointed official of a city, or of an
<br />agency, authority or instrumentality of
<br />a city. Therefore, the law applies to all
<br />mayors, councilmembers, and members
<br />of appointed boards, commissions, and
<br />committees of the city. In addition,
<br />the definition of an interested person
<br />implies that the gift law covers local
<br />officials who are authorized to make or
<br />recommend decisions that could impact
<br />someone financially.As a result, the gift
<br />law likely covers top appointed city
<br />employees, such as managers, admin-
<br />istrators, clerks, financial officers, and
<br />other department heads. Other covered
<br />employees could include inspectors and
<br />employees who can make or recommend
<br />purchasing decisions. Because of the
<br />difficulty in determ;n;ng who qualifies
<br />as a local official, it may be wise to take
<br />the most cautious approach and simply
<br />prohibit all city employees from accept-
<br />ing gifts.
<br />Exceptions. There are some excep-
<br />tions to the gift law The following
<br />types of gifts are allowed:
<br />^ Political contributions.
<br />^ Services to assist in the performance
<br />of official duties, such as providing
<br />advice, consultation, information, and
<br />communication in connection with
<br />legislation, and services to constituen .
<br />^ Services of insignificant monetary
<br />value.
<br />^ A plaque or similar memento recog
<br />nizing individual services in a field
<br />of specialty or to a charitable cause.
<br />^ A trinket or memento costing $5 or
<br />less. (The $5 limit was added by the
<br />2005 Legislature.The exception
<br />formerly allowed for a trinket or
<br />memento of"insignificant value.")
<br />^ Informational material of unexcep-
<br />tional value.
<br />^ Food or beverage at a reception, meal
<br />or meeting away from the recipient's
<br />place of work by an organization
<br />before whom the recipient makes a
<br />speech or answers questions as part
<br />of a program.
<br />^ Gifts given because of the recipient's
<br />membership in a group, a majority of
<br />whose members are not'local officials,
<br />if an equivalent gift is given. to the
<br />other members of the group.
<br />^ Gifts given by an interested person
<br />who is a member of the family of
<br />the recipient, unless the gift is given
<br />on behalf of someone who is not a
<br />member of that family.
<br />^ Gifts given by a national or multi-
<br />state organization of governmental
<br />organizations or public officials (if a
<br />majority of the dues to the organiza-
<br />tion are paid from public funds) to
<br />attendees at a conference sponsored
<br />by that organization, if the gift is food
<br />or beverage given at a reception or
<br />meal and an equivalent gift is given
<br />to all other attendees.
<br />Gifts to cities. The gift law prohibits
<br />gifts to city officials, not to cities. City
<br />councils may accept gifts on behalf
<br />of the city by adopting a resolution
<br />approved by atwo-thirds majority vote
<br />of its members, expressing any condi-
<br />tions attached to the gift (Minn. Stat.
<br />§ 4 5.03).
<br />xolations. No criminal penalties are
<br />specified in the gift law But violations
<br />of the gift law could trigger prosecutions
<br />for acceptance of a bribe (a felony under
<br />Minn. Stat. § 609.42) or for misconduct
<br />of a public official (a gross misdemeanor
<br />under Minn. Stat. § 609.43 and a mis-
<br />demeanor under Minn. Stat. § 645.241).
<br />And even if prosecution is unlikely,
<br />negative public opinion may result in _
<br />voters voting violators of the gift law
<br />out of office at the next election. ~
<br />Susan Naughton is research attorney
<br />unth the League of Minnesota Cities.
<br />Phone; (657) 281-1232. E-mail:
<br />snaughto @Imnc. org.
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