Los Angeles Municipal Code Art. 7 Innovation Fund

(a) The “Productivity Incentive Revolving Fund”, a revolving trust fund created and established in the Treasury of the City of Los

Angeles, is hereby renamed the “Innovation Fund”, hereinafter referred to in this Article as the “Fund”.

(b) The purpose of the Fund is to provide funding through direct disbursements or loans to City departments to improve the quality, efficiency and effectiveness of City service through innovation, productivity and performance measurement.

(c) An additional purpose of the Fund shall be for the receipt, retention and disbursement of gifts, contributions and bequests for the purposes set forth in this Chapter. All offers of such gifts, contributions and bequests with a value of more than $5,000 shall be submitted to the City Council for acceptance or rejection. All offers of such gifts, contributions and bequests with a value of $5,000 or less may be accepted for and on behalf of the City by the City Administrative Officer.

(d) The City Administrative Officer shall inform the Controller of any special terms or conditions placed upon the use of all monies accepted for deposit in the Fund. The Controller shall establish a separate account in the Fund for each specific use for all accepted monetary gifts, contributions or bequests which contain any special term or condition. No money shall be expended from the Fund except in compliance with each special term or condition under which such money was accepted. Any request for an expenditure of money from any such separate account shall be accompanied by sufficient information for the Controller to determine that the proposed expenditure would not contravene the specific use for which such separate account was established.

(e) The Fund shall be administered by the City Administrative Officer. The Innovation and Performance Commission shall have the authority to approve loans from the Fund to City departments and to pay for administrative expenses of the Commission.

(f) All monies loaned from the Fund shall be repaid to the Fund in accordance with the terms of the loan. The repaid principal and interest shall be placed in the Fund. After the borrowing department repays the principal and interest due, a portion of the savings generated from the project may be awarded to the department, in accordance with the terms of the loan. A portion may also be awarded to the Fund, in accordance with the terms of the loan. That portion not awarded to the department or the Fund shall be placed in the General Fund.

(g) All interest and other earnings attributable to monies in the Fund shall be credited to each account in the Fund to which they are attributable and shall be devoted to the purposes thereof.

(h) Funds may also be disbursed to the City Administrative Officer for staff costs and expenses in service to the Innovation and Performance Commission in the performance of all its duties.

(i) The City Administrative Officer shall report to the City Council and Mayor regarding and identifying all receipts into, and all expenditures out of, the Fund, as well as the purposes for which the expenditures were made. Each report shall cover a fiscal year and shall be submitted within 60 days after the close of said fiscal year.

SECTION HISTORY

Article and Section Added by Ord. No. 172,140, Eff. 9-12-98.

Amended by: Ord. No. 173,305, Eff. 6-30-00, Oper. 7-1-00; Article 7 Title and Section, In Entirety, Ord. No. 183,231, Eff. 11-3-14.