HomeMy WebLinkAboutCC Resolution 10313 (FPPC Disclosure Categories)RESOLUTION NO. 10313
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN RAFAEL REPEALING RESOLUTION NO. 9707 AND
ADOPTING CONFLICT OF INTEREST CODE FOR DESIGNATED
EMPLOYEES WHICH INCORPORATES BY REFERENCE THE FAIR
POLITICAL PRACTICES COMMISSION'S STANDARD MODEL
CONFLICT OF INTEREST CODE, INCLUDING UPDATE OF MODEL
CODE
WHEREAS, the Political Reform Act, Government Code Sections 81000, et sea.,
requires every state or local government agency to adopt and promulgate a Conflict of Interest Code;
and
WHEREAS, the Fair Political Practices Commission has adopted a regulation, 2 Cal.
Adm. Code Section 18730, which contains the terms of a standard model Conflict of Interest Code,
which can be incorporated by reference, and which will be amended to conform to amendments in the
Political Reform Act after public notice and hearings conducted by the Fair Political Practices
Commission pursuant to the Administrative Procedure Act, Government Code Sections 11370, et se .;
and
WHEREAS, By adoption of Resolution No. 5922, on June 16, 1980 (repealed by
adoption of Resolution No. 8746 on September 21, 1992) and by adoption of Resolution No. 9164 on
June 20, 1994 (repealed by adoption of Resolution No. 9707) and by adoption of Resolution No. 9707
on September 16, 1996, the City Council adopted a Conflict of Interest Code in compliance with
Government Code section 87300 and section 18730 of the Regulations of the Fair Political Practices
Commission; and
WHEREAS, Government Code section 87306.5, added in 1990, now requires that cities
review their Conflict of Interest codes by July 1 of every even numbered year, and to make changes
1
E,I j I I "��
required to keep the local code in compliance with state law no later than October 1 of the same year;
and
WHEREAS, The City has reviewed its conflict of interest code, and has determined that
when amended by the adoption of this resolution, the City's Conflict of Interest Code will continue to
comply with state law; and
WHEREAS, this body has determined that the attached Appendices accurately set forth
those positions which should be designated (Appendix A - Designated Employees) and the categories
of financial interest (Appendix B - Disclosure Categories) which should be made reportable, and
includes a copy of the model Conflict of Interest Code (Appendix C - Model Code, including
Appendix D - Update of Model Code).
NOW THEREFORE BE IT RESOLVED THAT:
1. The terms of 2 Cal. Adm. Code Section 18730 and any amendments to it duly
adopted by the Fair Political Practices Commission along with the attached Appendices in which
officials and employees are designated and disclosure categories are set forth, are hereby incorporated
by reference and constitute the Conflict of Interest Codes of the following departments and agencies:
City Attorney
City Clerk
City Manager
Community Development
Community Services
Fire
Library
Management Services
Police
Public Works
Redevelopment
Cultural Affairs Commission
Design Review Board
Geotechnical Review Board
Consultants
2
2. Persons holding designated positions shall file statements of economic interests
pursuant to Section 4 (C) of the Conflict of Interest Code. Pursuant to said Section 4 (C) of the Code,
all designated employees shall file their Statements with the City Clerk to whom the City Council
hereby delegates the authority to carry out the duties of filing officer.
3. Be it further resolved that consistent with the provisions of Government Code
Section 87303, this Code shall be effective September 21, 1998.
I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, hereby certify that the
foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the
Council of said City on Mondav, the 21st day of September, 1998, by the following vote, to wit:
AYES: COUNCILMEMBERS: Cohen, Heller, Miller and Mayor Boro
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: Phillips
3
JEA E M. LEONC , City Clerk
word\nancyeWgenda StufAconflict of int-reso.doc
APPENDIX A
Designated Employees
1
Disclosure
Impartment
Position
Category
Management Services
Assistant Director Management Services
1,2
-- Financial Services
Assistant Director Management Services
3a, 3g
-- Human Resources/Risk Management
Assistant Director Management Services
3d, 3e, 3g
-- Information Services
Network Administrator
3d, 3g
Programmer Analyst II
3d, 3g
Risk Manager
1, 2
General Services Aide II
3d
City Attorney
Assistant City Attorney
1, 2
Deputy City Attorney
1,2
City Clerk
City Clerk
3b, 3g
Deputy City Clerk
3b, 3g
City Manager
Assistant City Manager
1,2
Assistant to City Manager
1, 2
Secretary to City Manager
1, 2
Community Development
Community Development Director
1, 2
Planning Manager
1, 2
Senior Planner
1, 2
Associate Planner
1, 2
Assistant Planner
1, 2
Planning Technician
1, 2
Code Enforcement Officer
1, 2
Assistant Code Enforcement Officer
1, 2
Building & Safety Manager
1, 2
Assistant Civil Engineer
1, 2
Supervising Building Inspector
3e
Building Inspector I
3e
Building Inspector II
3e
Community Services
Community Services Director
3f, 3g
Assistant Community Services Director
3f, 3g
Senior Recreation Supervisor
3f, 3g
Recreation Supervisor -- Atheletics
3f, 3g
Recreation Supervisor -- Child Care
3f, 3g
Recreation Supervisor -- Youth Services
3f, 3g
1
APPENDIX A
Designated Employees (Continued)
Disclosure
Dep-artmant Pc-Sision Category
Fire Fire Chief
2, 3d, 3g
Fire Division Chief
2, 3d, 3g
Battalion Chief -- Fire Prevention
2, 3d, 3e, 3g
Deputy Fire Marshal
2, 3d, 3e, 3g
Battalion Chief -- Training
3d, 3g
Fire Prevention Inspector
2, 3d, 3e
Library/Cultural Affairs Library Director
3d, 3g
Librarian III
3d, 3g
Cultural Affairs Supervisor
3d, 3g
Police Police Chief
3d, 3e, 3f, 3g
Police Captain
3d, 3e, 3f, 3g
Police Lieutenant
3d,3e,3f, 3g
Police Civilian Supervisor (Records)
3d, 3e, 3f, 3g
Police Civilian Supervisor (Dispatch)
3d, 3e, 3f, 3g
Police Training Officer
3f, 3g
Public Works Public Works Director/City Engineer
1, 2
Deputy Director / Maintenance Operations
1, 2
Deputy Director / Engineering
1, 2
Traffic Engineer
1, 2
Administrative Services Supervisor
1, 2
Engineer I
3g
Engineer II
3g
Engineering Technician
3g
Public Works Inspector
3e
Parks Superintendent
3d, 3e
Supervising Groundsworker
3d, 3e
Shop & Equipment Supervisor
3d
Street Maintenance Supervisor
1, 2
Assistant Street Maintenance Supervisor
1, 2
Sewer Maintenance Supervisor
3e
Supervising Sewer Maintenance Worker
3e
Facility Repair Supervisor
1, 2
Redevelopment Assistant Executive Director/ 1, 2
Economic Development Director
Senior Development Specialist 1,2
Senior Planner 1,2
Events Coordinator 1, 2
2
APPENDIX A
Designated Employees (Continued)
Disclosure
Department Position Category
Cultural Affairs Commission 1,2
Design Review Board 1, 2
Geotechnical Review Board 1, 2
* *Consultants 1, 2
* * With respect to Consultants the relevant department head may determine in writing that a
particular consultant is hired to perform a range of duties that are limited in scope and thus is
not required to comply with the disclosure requirements described in these categories. Such
determination shall include a description of the consultant's duties and, based upon that
description, a statement of the extent of disclosure requirements. The department head shall
forward a copy of this determination to the City Council. Nothing herein excuses any such
consultant from any other provision of this Conflict of Interest Code.
wpwin\fppc\appendix.a
3
APPENDIX B
Desclosure Categories
Categsory 1: All investments and sources of income.
Category 2: All interests in real property.
Category 3: Investments in business entities and sources of income of the type which have
or foreseeably could contract with City to provide services, supplies, materials,
machinery or equipment; or which could be enhanced when a designated
employee makes or participates in making a decision.
a. Personnel agencies or personnel consultants;
b. Book Publishing Co. and Marin County newspapers;
c. Financial institutions;
d. Department record forms, communications equipment, safety, firefighting
or fire detection equipment, automotive or rolling stock sales, automotive
parts or equipment, general departmental supplies or equipment;
e. Building supplies or building, contractor or construction firms;
f. Travel agencies; recreation and athletic supplies; building maintenance and
cleaning supplies; and
g. Book, software, and audio-visual publishers and distributors; computer
equipment manufacturers and distributors.
NOTE: PENALTY FOR LATE FILING
AS REQUIRED UNDER THE POLITICAL REFORM ACT OF 1974, AS AMENDED,
SECTION 91013, IF ANY PERSON FILES AN ORIGINAL STATEMENT AFTER ANY
DEADLINE, HE SHALL BE LIABLE IN THE AMOUN.T_QF_01.0-0-M PER DAY AFTER
THE DEAE)L1NE URT1L THL-STATEMENT IS. FILED .. llP.. TO A MAXIMUM—GE
($1.00.00}. WHICHEVER IS _GREATER.
wpwin\fppc\appendix.b
Appendix C
MODEL CODE
(1) Section 1. Definitions.
The definitions contained in the Political Reform
Act of 1974, regulations of the Fair Political Practices Com-
mission (2 Cal. Adm. Code Sections 18100 et seg.), and any
amendments to the Act or regulations, are incorporated by
reference into this Conflict of Interest Code.
(2) Section 2. Desiqnated Employees.
The persons holding positions listed in the Appendix
are designated employees
(3) Section 3. Disclosure Cateqories.
This Code does not establish any disclosure obliga-
tion for those designated employees who are also specified in
Government Code Section 87200 if they bre designated in this
Code in that same capacity or if the geographical jurisdiction
of this agency is the same as or is wholly included within the
jurisdiction in which those persons must report their financial
interests pursuant to Article 2 of Chapter 7 of the 0olitical
Reform Act, Government Code Sections 87200, et sem.— Such
persons are covered by this Code for disqualification pur-
poses only. With respect to all other designated employees,
the disclosure categories set forth in the Appendix specify
which kinds of financial interests are reportable. Such a
designated employee shall disclose in his or her statement
of economic interests those financial interests he or she
has which are of the kind described in the disclosure cate-
gories to which he or she is assigned in the Appendix. It
has been determined that the financial interests set forth
in a designated employee's disclosure categories are the
kinds of financial interests which he or she foreseeably can
affect materially through the conduct of his or her office.
(4) Section 4. Statements of Economic Interests:
Place of Fiiinq.
All designated employees shall file statements of
economic interests with the code reviewing body.
l/ Designated employees who are required to file
statements of economic interests under any other agency's
Conflict of Interest Code, or under Article 2 for a different
jurisdiction, may expand their statement of economic interests
to cover reportable interests in both jurisdictions, and file
ccpies of this expanded statement with both entities in lieu
of filing separate and distinct statements, provided that each
copy of such expanded statement filed in place of an original
is sinned and verified by the designated employee as if it
Were an original. See Government Code Section 81004.
- 1 -
Appendix C, cont'd.
(5) Section 5. Statements of ECOAoviC Interests:
Time of ruin$.
(A) initial Statements. All designated employees
employed by the agency on the effective date of this Code,
as originally adopted, promulgated and approved by the code
reviewing body, shall file statements within thirty days
after the effective date of this Code. Thereafter, each
person already in a position when it is designated by an
amendment to this Code shall file an initial statement
within thirty days after the effective date of the amendment.
(B) Assuming Office Statements.
(1) All persons assuming designated positions
after the effective date of this Code which are
civil service or merit system positions shall file
statements within thirty days after assuming the
designated positions.
(ii) All other persons appointed, promoted
or transferred to designated positions after the
effective date of the Code shall file statements
within ten days after assuming office, or if subject
to State Senate confirmation, ten days after being
Dominated or appointed.
(C) Annual Statements. All designated employees
shall file statements no later than April 1.
(D) Leaving Office Statements. All persons who
leave designated positions shall file statements within
thirty days after leaving office.
(6) Section 6. Contents of and Period Covered by Statements
of Economic Interests.
(A) Contents of Initial Statements. Initial
statements shall disclose any reportable investments, interests
in real property and business positions held.
(B) Contents of Assumin Office Statements.
Assuming office statements shall d�sclose any reportable
investments, interests in real property and business positions
held on the date of assuming office or, if subject to State
Senate confirmation or appointment, on the date of nomination.
(C) Contents of Annual Statements. Annual state-
ments shall disclose any reportable investments, interests
in real property, income and business positions held or
received during the previous calendar year provided, however,
that the period covered by an employee's first annual
statement shall begin on the effective date of the Code or
the date of assuming office, whichever is later.
(D) Contents of Leaving Office Statements. Leaving
office statements shall disclose PLaportabile investments,
interests in real property, income and business positions
held or received during the period between the closing date
of the last statement filed and the date of leaving office.
- 2 -
Appendix cont'd.
(7) Section 7. Manner of Reporting.
Statements of economic interests shall be made on
forms prescribed by the Pair Political Practices Commission
and supplied by the agency, and shall contain the following
information:
(A) Investment and Real Property Disclosure.
When an investment or interest in real property2/ is
required to be reported,3/ the statement shall contain the
following:
(1) A statement of the nature of the invest-
ment or interest;
(11) The name of the business entity in
which each investment is held, and a general descrip-
tion of the business activity in which the business
entity is engaged;
(iii) The address or other precise location
of the real property;
(iv) A statement whether the fair market
value of the investment or interest in real property
exceeds one thousand dollars ($1,000), exceeds ten
thousand dollars ($10,000), or exceeds one hundred
thousand dollars ($100,000).
(B) Personal Income Disclosure. When personal
income is required to be reported,4/ the statement will
contain: _
2/ For the purpose of disclosure only (not dis-
qualification), an interest in real property does not include
the principal residence of the filer.
3/ Investments and interests in real property
which have a fair market value of less than $1,000 are not
investments and interests in real property within the meaning
of the Political Reform Act. However, investments or interests
in real property of an individual include those held by the
individual's spouse and dependent children as well as a
Pro rata share of any investment or interest in real property
of any business entity or trust in which the individual,
spouse and dependent children own, in the aggregate, a direct,
indirect or beneficial interest of 10 percent or greater.
4/ A designated employee's income includes his
or her community property interest in the income of his or
her spouse but does not include salary or reimbursement for
expenses received from a state, local or federal government
agency.
- 3 -
Appendix C, cont'd.
(i) The name and address of each source of
income aggregating two hundred fifty dollars ($250)
or more in value, or twenty-five dollars ($25) or
more in value if the income was a gift, and a
general description of the business activity, if
any, of each source.
(ii) A statement whether the aggregate value
of income from each source, or in the case of a
loan, the highest amount owed to each source, was
one thousand dollars ($1,000) or less, greater
than one thousand dollars ($1,000), or greater
than ten thousand dollars ($10,000);
(iii) A description of the consideration, if
any, for which the income was received;
(iv) In the case of a gift, the name, address
and business activity of the donor and any in-
termediary through which the gift was made; a
description of the gift; the amount or value of
the gift; and the date on which the gift was
received.
(v) In the case of a loan, the annual interest
rate and the security, if any, given for the loan.
(C) Business Entity Income Disclosure. When
income of a business entity, including income of a sole
proprietorship, is required to be reported,5/ the statement
shall contain:
(1) The name, address, and a general descrip-
tion of the business activity of the business entity;
(ii) The name of every person from whom the
business entity received payments if the filer's
pro rata share of gross receipts from such person
was equal to or greater than ten thousand dollars
($10,000).
(D) Business Position Disclosure. when business
Positions are required to be reported, a designated employee
shall list the name and address of each business entity in
5/ Income of a business entity in reportable if
the direct, indirect or beneficial interest of the filer and
the filer's spouse in the business entity aggregates a 10
percent or greater interest. In addition, the disclosure of
persons who are clients or customers of a business entity is
required only if the clients or customers are within one of
the disclosure categories of the filer.
- 4 -
Appendix , cont'd.
Section T. (0), coot.
which he or she is a director, officer, partner, trustee,
employee, or in which he or she holds any position of manage-
ment, a description of the business activity in which the
business entity is engaged, and the designated employee's
position with the business entity.
(E) Acquisition or Disposal During Repporting
Period. In the case of an annual or leaving'oifice statement,
if an investment or an interest in real property was partially
or wholly acquired or disposed of during the period covered
by the statement, the statement shall contain the date of
acquisition or disposal.
(8) Section 8. Disqualification.
No designated employee shall make, participate in
making, or use his or her official positions to influence
the making of any governmental decision which will foreseeably
have a material financial effect, distingu_shable from its
effect on the public generally, on:
(A) Any business entity in which the designated
employee has a direct or indirect investment worth more than
one thousand dollars ($1,000);
(B) Any real property in which the designated
employee has a direct or indirect interest worth more than
one thousand dollars ($1,000);
(C) Any source of income, other than loans by a
commercial lending institution in the regular course of
business on terms available to the public without regard to
official status, aggregating two hundred fifty dollars ($250)
or more in value provided to, received by or promised to the
designated employee within twelve months prior to the time
when the decision is made; or
(D) Any business entity in which the designated
employee is a director, officer, partner, trustee, employee,
or holds any position of management.
No designated employee shall be prevented from
making or participating in the making of any decision to the
extent bis or her participation is legally required for the
decision to be made. The fact that the vote of a designated
employee who is on a voting body is needed to break a tie
does not make his or her participation lefally_ recuired for
purposes of this section.
(9) Section 9. manner of Disqualification.
When a designated employee determines that he or
she should not make a governmental decision because he or
she ha-- a financial inter=5t In it, Me determination not to
- 5 --
AYyendix C, cont Id.
act must be accompanied by disclosure of the financial in-
terest. In the case of a voting body, this determination
and disclosure shall be made part of the agency's official
record; in the case of a designated employee who is the head
of an agency, this determination and disclosure shall be made
in writing to his or her appointing authority; and in the
case of other designated employees, this determination and
disclosure shall be made in writing to the designated em-
ployee's supervisor.
(10) Section 10. Assistance of the Commission and Counsel.
Any designated employee who is unsure of his or
her duties under this Code may request assistance from the
Fair Political Practices Commission pursuant to Government
Code Section 83114 or from the attorney for his or her agency,
provided that nothing in this section requires the attorney
for the agency to issue any formal or informal opinion.
(11) Section 11. Violations.
This Code has the force and effect of law. Desig-
nated employees violating any provision of this Code are sub-
ject to the administrative, criminal and civil sanctions pro-
vided in the Political Reform Act, Government Code Sections
81000 - 91014. In addition, a decision in relation to which
a violation of the disqualification provisions of this Code
or of Government Code Section 87100 has occurred may be set
aside as void pursuant to Government Code Section 91003.
- 6 -
UPDATE OF MODEL CODE ----.AIR POLITICAL PRACTICES COMMIS�.iN APPENDIX D
(Regulations of the Fair Political Practices Commission, Title 2, Division 6 of the California
Code of Regulations.)
18730. Provisions of Conflict of Interest Codes
(a) Incorporation by reference of the ternis of this regulation along with the designation
of employees and the formulation of disclosure categories in the Appendix referred to below
constitute the adoption and promulgation of a conflict of interest code within the meaning of
Government Code Section 87300 or the amendment of a conflict of interest code within the
meaning of Government Code Section 87306 if the terms of this regulation are substituted for
terms of a conflict of interest code already in effect. A code so amended or adopted and
promulgated requires the reporting of reportable items in a manner substantially equivalent to the
requirements of Article 2 of Chapter 7 of the Political Reform Act, Government Code Sections
81000, et seq. Tile requirements of a conflict of interest code are in addition to other
requirements of the Political Reform Act, such as the general prohibition against conflicts of
interest contained in Government Code Section 87100, and to other state or local laws pertaining
to conflicts of interest.
(b) The terms of a conflict of interest code amended or adopted and promulgated
pursuant to this regulation are as follows:
(1) Section 1. Definitions. The definitions contained in the Political Reform Act of
1974, regulations of the Fair Political Practices Commission (2 Cal. Code of Regs. Sections
18100, et seq.), and any amendments to the Act or regulations, are incorporated by reference into
this conflict of interest code.
(2) Section 2. Designated Employees. The persons holding positions listed in the
Appendix are designated employees. It has been determined that these persons make or
participate in the making of decisions which may foreseeably have a material effect on financial
interests.
(3) Section 3. Disclosure Categories. This code does not establish any disclosure
obligation for those designated employees who are also specified in Government Code Section
87200 if they are designated in this code in that same capacity or if the geographical jurisdiction
of this agency is the same as or is wholly included within the jurisdiction in which those persons
must report their financial interests pursuant to Article 2 of Chapter 7 of the Political Reform
Act, Government Code Sections 87200, et seq.
In addition, this code does not establish any disclosure obligation for any designated
employees who are designated in a conflict of interest code for another agency, if all of the
following apply:
(A) The geographical jurisdiction of this agency is the same as or is wholly included
within the jurisdiction of the other agency;
(B) The disclosure assigned in the code of the other agency is the same as that required
under Article 2 of Chapter 7 of the Political Reform Act, Government Code Section 87200; and
(C) The filing officer is the same for both agencies.'
Such persons are covered by this code for disqualification purposes only. With respect to
all other designated employees, the disclosure categories set forth in the Appendix specify which
kinds of financial interests are reportable. Such a designated employee shall disclose in his or
her statement of economic interests those financial interests he or she has which are of the kind
described in the disclosure categories to which he or she is assigned in the Appendix. It has been
determined that the financial interests set forth in a designated employee's disclosure categories
are the kinds of financial interests which lie or she foreseeably can affect materially through the
' Designated employees who are required to file statements of economic interests under any other
agency's conflict of interest code, or under Article 2 for a different jurisdiction, may expand their statement of
economic interests to cover reportable interests in both jurisdictions, and file copies of this expanded statement with
both entities in lieu of filing separate and distinct statements, provided that each copy of such expanded statement
filed in place of an original is signed and verified by the designated employee as if it were an original. See
Government Code Section 81004.
conduct of his or her office.
(4) Section 4. Statements of Economic Interests: Place of Filing. The code reviewing
body shall instruct all designated employees within its code to file statements of economic
interests with the agency or with the code reviewing body, as provided by the code reviewing
body in the agency's conflict of interest code.'
(5) Section 5. Statements of Economic Interests: Time of Filing.
(A) Initial Statements. All designated employees employed by the agency on the
effective date of this code, as originally adopted, promulgated and approved by the code
reviewing body, shall file statements within 30 days after the effective date of this code.
Thereafter, each person already in a position when it is designated by an amendment to this code
shall file an initial statement within 30 days after the effective date of the amendment.
(B) Assuming Office Statements. All persons assuming designated positions after the
effective date of this code shall file statements within 30 days after assuming the designated
positions, or if subject to State Senate confirmation, 30 days after being nominated or appointed.
(C) Annual Statements. All designated employees shall file statements no later than
April 1.
(D) Leaving Office Statements. All persons who leave designated positions shall file
statements within 30 days after leaving office.
(5.5) Section 5.5. Statements for Persons Who Resign Prior to Assuming Office. Any
person who resigns within 12 months of initial appointment, or within 30 days of the date of
notice provided by the filing officer to file an assuming office statement, is not deemed to have
assumed office or left office, provided he or she did not make or participate in the making of, or
use his or her position to influence any decision and did not receive or become entitled to receive
any form of payment as a result of his or her appointment. Such persons shall not file either an
assuming or leaving office statement.
(A) Any person who resigns a position within 30 days of the date of a notice from the
filing officer shall do both of the following:
(1) File a written resignation with the appointing power; and
(2) File a written statement with the filing officer declaring under penalty of perjury that
during the period between appointment and resignation he or she did not make, participate in the
making, or use the position to influence any decision of the agency or receive, or become entitled
to receive, any form of payment by virtue of being appointed to the position.
(6) Section 6. Contents of and Period Covered by Statements of Economic Interests.
(A) Contents of Initial Statements. Initial statements shall disclose any reportable
investments, interests in real property and business positions held on the effective date of the
code and income received during the 12 months prior to the effective date of the code.
(B) Contents of Assuming Office Statements. Assuming office statements shall disclose
any reportable investments, interests in real property and business positions held on the date of
assuming office or, if subject to State Senate confirmation or appointment, on the date of
nomination, and income received during the 12 months prior to the date of assuming office or the
date of being appointed or nominated, respectively.
(C) Contents of Annual Statements. Annual statements shall disclose any reportable
investments, interests in real property, income and business positions held or received during the
previous calendar year provided, however, that the period covered by an employee's first annual
statement shall begin on the effective date of the code or the date of assuming office whichever is
later.
(D) Contents of Leaving Office Statements. Leaving office statements shall disclose
reportable investments, interests in real property, income and business positions held or received
during the period between the closing date of the last statement filed and the date of leaving
office.
(7) Section 7. Manner of Reporting. Statements of economic interests shall be made on
' See Government Code Section 8 10 10 and 2 Cal. Code of Regs. Section 181 15 for the duties of filing
officers and persons in agencies who make and retain copies of statements and forward the originals to the filing
officer.
forms prescribed by the Fair Political Practices Commission and supplied by the agency, and
shall contain the following information:
(A) Investments and Real Property Disclosure. When an investment or an interest in real
property' is required to be reported, the statement shall contain the following:
1. A statement of the nature of the investment or interest;
2. The name of the business entity in which each investment is held, and a general
description of the business activity in which the business entity is engaged;
3. The address or other precise location of the real property;
4. A statement whether the fair market value of the investment or interest in real property
exceeds one thousand dollars ($1,000), exceeds ten thousand dollars ($10,000), or exceeds one
hundred thousand dollars ($100,000).
(B) Personal Income Disclosure. When personal income is required to be reported,' the
statement shall contain:
1. The name and address of each source of income aggregating two hundred fifty dollars
($250) or more in value or fifty dollars ($50) or more in value if the income was a gift, and a
general description of the business activity, if any, of each source;
2. A statement whether the aggregate value of income from each source, or in the case of
a loan, the highest amount owed to each source, was one thousand dollars ($1,000) or less,
greater than one thousand dollars ($1,000), or greater than ten thousand dollars ($10,000);
3. A description of the consideration, if any, for which the income was received;
4. In the case of a gift, the name, address and business activity of the donor and any
intermediary through which the gift was made; a description of the gift; the amount or value of
the gift; and the date on which the gift was received;
5. In the case of a loan, the annual interest rate and the security, if any, given for the loan
and the term of the loan.
(C) Business Entity Income Disclosure. When income of a business entity, including
income of a sole proprietorship, is required to be reported, the statement shall contain:
1. The name, address, and a general description of the business activity of the business
entity;
2. The name of every person from whom the business entity received payments if the
filer's pro rata share of gross receipts from such person was equal to or greater than ten thousand
dollars ($10,000).
(D) Business Position Disclosure. When business positions are required to be reported, a
designated employee shall list the name and address of each business entity in which he or she is
a director, officer, partner, trustee, employee, or in which he or she holds any position of
' For the purpose of disclosure only (not disqualification), an interest in real property does not include the
principal residence of the filer.
" Investments and interests in real property which have a fair market value of less than $1,000 are not
investments and interests in real property within the meaning of the Political Reform Act. However, investments or
interests in real property of an individual include those held by the individual's spouse and dependent children as
well as a pro rata share of any investment or interest in real property of any business entity or trust in which the
individual, spouse and dependent children own, in the aggregate, a direct, indirect or beneficial interest of 10
percent or greater.
' A designated employee's income includes his or her community property interest in the income of his or
her spouse but does not include salary or reimbursement for expenses received from a state, local or federal
government agency.
" Income of a business entity is reportable if the direct, indirect or beneficial interest of the filer and the
filer's spouse in the business entity aggregates a 10 percent or greater interest. In addition, the disclosure of persons
who are clients or customers of a business entity is required only if the clients or customers are within one of the
disclosure categories of the filer.
management, a description of the business activity in which the business entity is engaged, and
the designated employee's position with the business entity.
(E) Acquisition or Disposal During Reporting Period. In the case of an annual or leaving
office statement, if an investment or an interest in real property was partially or wholly acquired
or disposed of during the period covered by the statement, the statement shall contain the date of
acquisition or disposal.
(8) Section 8. Prohibition on Receipt of Honoraria.
(A) No member of a state board or commission, and no designated employee of a state or
local government agency, shall accept any honorarium from any source, if the member or
employee would be required to report the receipt of income or gifts from that source on his or her
statement of economic interests. This section shall not apply to any part-time member of the
governing board of any public institution of higher education, unless the member is also an
elected official.
Subdivisions (a), (b), and (c) of Government Code Section 89501 shall apply to the
prohibitions in this section.
This section shall not limit or prohibit payments, advances, or reimbursements for travel and
related lodging and subsistence authorized by Government Code Section 89506.
(8.1) Section 8.1 Prohibition on Receipt of Gifts in Excess of $290.
(A) No member of a state board or commission, and no designated employee of a state or
local government agency, shall accept gifts with a total value of more than $290 in a calendar
year from any single source, if the member or employee would be required to report the receipt
of income or gifts from that source on his or her statement of economic interests. This section
shall not apply to any part-time member of the governing board of any public institution of
higher education, unless the member is also an elected official.
Subdivisions (e), (f), and (g) of Government Code Section 89503 shall apply to the
prohibitions in this section.
(8.2) Section 8.2. Loans to Public Officials.
(A) No elected officer of a state or local government agency shall, from the date of his or
her election to office through the date that lie or she vacates office, receive a personal loan from
any officer, employee, member, or consultant of the state or local government agency in which
the elected officer holds office or over which the elected officer's agency has direction and
control.
(B) No public official who is exempt from the state civil service system pursuant to
subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while
he or she holds office, receive a personal loan from any officer, employee, member, or consultant
of the state or local government agency in which the public official holds office or over which
the public official's agency has direction and control. This subdivision shall not apply to loans
made to a public official whose duties are solely secretarial, clerical, or manual.
(C) No elected officer of a state or local government agency shall, from the date of his -or
her election to office through the date that he or she vacates office, receive a personal loan from
any person who has a contract with the state or local government agency to which that elected
officer has been elected or over which that elected officer's agency has direction and control.
This subdivision shall not apply to loans made by banks or other financial institutions or to any
indebtedness created as part of a retail installment or credit card transaction, if the loan is made
or the indebtedness created in the lender's regular course of business on ternis available to
members of the public without regard to the elected officer's official status.
(D) No public official who is exempt from the state civil service system pursuant to
subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while
he or she holds office, receive a personal loan from any person who has a contract with the state
or local government agency to which that elected officer has been elected or over which that
elected officer's agency has direction and control. This subdivision shall not apply to loans made
by banks or other financial institutions or to any indebtedness created as part of a retail
installment or credit card transaction, if the loan is made or the indebtedness created in the
lender's regular course of business on terms available to members of the public without regard to
the elected officer's official status. This subdivision shall not apply to loans made to a public
official whose duties are solely secretarial, clerical, or manual.
(E) This section shall not apply to the following:
1. Loans made to the campaign committee of an elected officer or candidate for elective
office.
2. Loans made by a public official's spouse, child, parent, grandparent, grandchild,
brother, sister, parent -in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first
cousin, or the spouse of any such persons, provided that the person making the loan is not acting
as an agent or intermediary for any person not otherwise exempted under this section.
3. Loans from a person which, in the aggregate, do not exceed two hundred fifty dollars
($250) at any given time.
4. Loans made, or offered in writing, before January 1, 1998.
(8.3) Section 8.3. Loan Terms.
(A) Except as set forth in subdivision (B), no elected officer of a state or local
government agency shall, from the date of his or her election to office through the date he or she
vacates office, receive a personal loan of five hundred dollars ($500) or more, except when the
loan is in writing and clearly states the ten -ns of the loan, including the parties to the loan
agreement, date of the loan, amount of the loan, term of the loan, date or dates when payments
shall be due on the loan and the amount of the payments, and the rate of interest paid on the loan.
(B) This section shall not apply to the following types of loans:
1. Loans made to the campaign committee of the elected officer.
2. Loans made to the elected officer by his or her spouse, child, parent, grandparent,
grandchild, brother, sister, parent -in-law, brother-in-law, sister-in-law, nephew, niece, aunt,
uncle, or first cousin, or the spouse of any such person, provided that the person making the loan
is not acting as an agent or intermediary for any person not otherwise exempted under this
section.
3. Loans made, or offered in writing, before January 1, 1998.
(C) Nothing in this section shall exempt any person from any other provision of Title 9
of the Government Code.
(8.4) Section 8.4. Personal Loans.
(A) Except as set forth in subdivision (B), a personal loan received by any designated
employee shall become a gift to the designated employee for the purposes of this section in the
following circumstances:
1. If the loan has a defined date or dates for repayment, when the statute of limitations
for filing an action for default has expired.
2. If the loan has no defined date or dates for repayment, when one year has elapsed from
the later of the following:
a. The date the loan was made.
b. The date the last payment of one hundred dollars ($100) or more was made on the
loan.
c. The date upon which the debtor has made payments on the loan aggregating to less
than two hundred fifty dollars ($250) during the previous 12 months.
(B) This section shall not apply to the following types of loans:
1. A loan made to the campaign committee of an elected officer or a candidate for
elective office.
2. A loan that would otherwise not be a gift as defined in this title.
3. A loan that would otherwise be a gift as set forth under subdivision (A), but on which
the creditor has taken reasonable action to collect the balance due.
4. A loan that would otherwise be a gift as set forth under subdivision (A), but on which
the creditor, based on reasonable business considerations, has not undertaken collection action.
Except in a criminal action, a creditor who claims that a loan is not a gift on the basis of this
paragraph has the burden of proving that the decision for not taking collection action was based
on reasonable business considerations.
5. A loan made to a debtor who has filed for bankruptcy and the loan is ultimately
discharged in bankruptcy.
(C) Nothing in this section shall exempt any person from any other provisions of Title 9
of the Government Code.
(9) Section 9. Disqualification. No designated employee shall make, participate in
making, or in any way attempt to use his or her official position to influence the making of any
governmental decision which he or she knows or has reason to know will have a reasonably
foreseeable material financial effect, distinguishable from its effect on the public generally, on
the official or a member of his or her immediate family or on:
(A) Any business entity in which the designated employee has a direct or indirect
investment worth one thousand dollars ($1,000) or more;
(B) Any real property in which the designated employee has a direct or indirect interest
worth one thousand dollars ($1,000) or more;
(C) Any source of income, other than gifts and other than loans by a commercial lending
institution in the regular course of business on terms available to the public without regard to
official status, aggregating two hundred fifty dollars ($250) or more in value provided to,
received by or promised to the designated employee within 12 months prior to the time when the
decision is made;
(D) Any business entity in which the designated employee is a director, officer, partner,
trustee, employee, or holds any position of management; or
(E) Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating
$290 or more provided to; received by, or promised to the designated employee within 12
months prior to the time when the decision is made.
(9.3) Section 9.3. Legally Required Participation. No designated employee shall be
prevented from making or participating in the making of any decision to the extent his or her
participation is legally required for the decision to be made. The fact that the vote of a
designated employee who is on a voting body is needed to break a tie does not make his or her
participation legally required for purposes of this section.
(9.5) Section 9.5. Disqualification of State Officers and Employees. In addition to the
general disqualification provisions of Section 9, no state administrative official shall make,
participate in making, or use his or her official position to influence any governmental decision
directly relating to any contract where the state administrative official knows or has reason to
know that any party to the contract is a person with whom the state administrative official, or any
member of his or her immediate family has, within 12 months prior to the time when the official
action is to be taken:
(A) Engaged in a business transaction or transactions on terms not available to members
of the public, regarding any investment or interest in real property; or
(B) Engaged in a business transaction or transactions on terms not available to members
of the public regarding the rendering of goods or services totaling in value one thousand dollars
($1,000) or more.
(10) Section 10. Manner of Disqualification. When a designated employee determines
that he or she should not make a governmental decision because he or she has a disqualifying
interest in it, the determination not to act must be accompanied by disclosure of the disqualifying
interest. In the case of a voting body, this determination and disclosure shall be made part of the
agency's official record; in the case of a designated employee who is the head of an agency, this
determination and disclosure shall be made in writing to his or her appointing authority; and in
the case of other designated employees, this determination and disclosure shall be made in
writing to the designated employee's supervisor.
(11) Section 11. Assistance of the Commission and Counsel. Any designated employee
who is unsure of his or her duties under this code may request assistance from the Fair Political
Practices Commission pursuant to Government Code Section 83114 or from the attorney for his
or her agency, provided that nothing in this section requires the attorney for the agency to issue
any formal or informal opinion.
(12) Section 12. Violations. This code has the force and effect of law. Designated
employees violating any provision of this code are subject to the administrative, criminal and
civil sanctions provided in the Political Reform Act, Government Code Sections 81000 - 91015.
In addition, a decision in relation to which a violation of the disqualification provisions of this
code or of Government Code Section 87100 or 87450 has occurred may be set aside as void
pursuant to Government Code Section 91003.
Note: Authority: Section 83112, Gov. Code
Reference: Sections 87103(e), 87300-87302, 89501, 89502, and 89503, Gov. Code
History
(1) New section filed 4-2-80 as an emergency; effective upon filing. Certificate of Compliance
included.
(2) Editorial correction.
(3) Amendment of subsection (b) filed 1-9-81; effective thirtieth day thereafter.
(4) Amendment of subsection (b)(7)(B)1. filed 1-26-83; effective thirtieth day thereafter.
(5) Amendment of subsection (b)(7)(A) filed 11-10-83; effective thirtieth day thereafter.
(6) Amendment filed 4-13-87; effective thirtieth day thereafter.
(7) Amendment of subsection (b) filed 10-21-88; effective thirtieth day thereafter.
(8) Amendment filed 8-28-90; effective thirtieth day thereafter.
(9) Amendment filed 8-7-92; effective thirtieth day thereafter.
(10) Amendment filed 2-5-93; effective upon filing.
(11) Amendment filed 3-14-95; effective upon filing.
(12) Amendment filed 10-23-96; effective upon filing.
(13) Amendment filed 4-9-97; effective upon filing.
(14) Amendment filed 8-24-98; effective upon filing.
09/14/1998 09:47 9163223711 FPPC PAGE 02
UPDATE OF MODEL CODE - FAIR POLITICAL PRACTICES COMMISSION APPENDIX D
(Regulations of the Fair Political Practices Commission, Title 2, Divi§ion 6, Section 18730 of the
California Code of Regulations)
18730. Provisions ofConfUct of Interest Codes.
(a) Incorporation by reference of the terms of this regulation along with the designation
of employees and the formulation of disclosure categories in the Appendix referred to below
constitute the adoption and promulgation of a conflict of Merest code within the meaning of
Government Code Section 87300 or the amendment of a,conflict of interest code within the
meaning of Government Code Section 87306 if the terms of this regulation are substituted for
terms of a conflict of interest code already in effect. A code so amended or adopted and
promulgated requires the reporting of reportable items in a mariner substantially equivalent to the
requirements of Article 2 of Chapter 7 of the Political Reform Act, Government Code Sections
81000, et seq. The requirements of a conflict\ofinterest code are in addition to other
requirements of the Political Reform Act, such
as the general prohibition against conflicts of
interest contained in Government Code Section 87100, and to other state or local laws pertaining
to conflicts of interest,
(b) The terms of a conflict of interest code amended or adopted and promulgated
pursuant to this regulation are as follows
(1) Section 1. Definitions. The definitions contained in the Political Reform Act of
1974, regulations of the Fair Political Practices Commission (2 Cal. Code of Regs. Sections
18100, et seq.), and any amendments to the Act or regulations, are incorporated by reference into
this conflict of interest code.
(2) Section 2. Designated Employees. The persons holding positions listed in the
,Appendix are designated employees. It hes been determined that these personas make or
participate in the walcing of decisions which may foreseeably have a material effect on financial
interests.
(3) Section 3. Disclosure Categories. This code does not establish any disclosure
obligation for those desigftated employees who are also specified in Goverment Code Section
87200 if they are designated in this code in that same capacity or if the geograp cal jurisdiction
1 18730
09/14/1998 09:47 9163223711 FPPC PAGE 03
of this agency is the same as or is wholly included within the jurisdiction in which those persons
must report their financial interests pursuant to Article 2 of Chapter 7 of the Political Reform
Act, Government Code Sections 87200, et seq.
In addition, this code does not establish any disclosure obligation for any designated
employees who are designated in a conflict of interest code for another agency, if all of the
following apply;
(A) The geographical jurisdiction of this agency is the same as or is wholly included
within the jurisdiction of the other agency;
(B) The disclosure assigned in the code of the other agency is the same as that required
under Article 2 of Chapter 7 of the Political Reform Act, Government Code Section 87200; and
(C) The filing officer is the same for both agencies.'
Such persons are covered by this code for disqualification purposes only. With respect to
all other designated employees, the disclosure categories set forth in the Appendix specify which
kinds of financial interests are reportable. Such a designated employee shall disclose in his or
her statement of economic interests those financial interests he or she has which are of the kind
described in the disclosure categories to which he or she is assigned in the Appendix. It has been
determined that the financial interests set forth in a designated employee's disclosure categories
are the kinds of financial interests which he or she foreseeably can affect materially through the
conduct of his or her office.
(4) Section 4. Statements of Economic Interests: Place of Filing. The code reviewing
body shall instruct all designated employees within its code to file statements of economic
interests with the agency or with the code reviewing body, as provided by the code reviewing
' Designated employees who are required to file statements of economic interests under any other
agency's conflict of interest code, or under Article 2 for a dii%rent jurisdiction, may expand their statement of
economic interests to cover reportable interests in both jurisdictions, and file copies of this expanded statement with
both entities in lieu of filing separate and distinct statements, provided that each copy of such expanded statement
filed im place of an original is signed and verified by the designated employee as if it were an original. See
Government Code Section S 1004.
2 18730
09/14/1998 09:47 9163223711 FPPC PAGE 04
body in the agency's conflict of interest code.
(5) Section 5. Statements of Economic Interests: Time of Filing.
(A) Initial Statements. All designated employees employed by the agency on the
effective date of this code, as originally adopted, promulgated and approved by the code
reviewing body, shall file statements within 30 days after the effective date of this code.
Thereafter, each person already in a position when it is designated by an amendment to this code
shall file an initial statement within 30 days after the effective date of the amendment.
(B) Assuming Office Statements. All persons assuming designated positions after the
effective date of this code shall file statements within 30 days after assuming the designated
positions, or if subject to State Senate confirmation, 30 days after being nominated or appointed.
(C) Annual Statements. All designated employees shall file statements no later than
April 1.
(D) Leaving Office Statements. All persons who leave designated positions shall file
statements within 30 days after leaving office.
(5.5) Section 5.5. Statements for Persons Who Resign Prior to Assuming Office. Any
person who resigns within 12 months of initial appointment, or within 30 days of the date of
notice provided by the filing officer to file an assuming office statement, is not deemed to have
assumed office or left office, provided he or she did not make or participate in the making of, or
use his or her position to influence any decision and did not receive or become entitled to receive
any form of payment as a result of his or her appointment. Such persons shall not file either an
assuming or leaving office statement.
(A) Any person who resigns a position within 30 days of the date of a notice from the
filing officer shall do both of the following:
(1) File a written resignation with the appointing power; and
(2) File a written statement with the filing officer declaring under penalty of perjury that
` See Government Code Section 81010 and 2 Cal_ Code of Regs. Section 18115 for the duties of filing
officers and persons in agencies -ho make and retain copies of statements and forward the originals to the filing
officer.
18730
09/14/1998 09:47 9193223711 FPPC PAGE 05
during the period between appointment and resignation he or she did not make, participate in the
making, or use the position to influence any decision of the agency or receive, or become entitled
to receive, any forth of payment by virtue of being appointed to the position.
(6) Section 6. Contents of and Period Covered by Statements of Economic Interests.
(A) Contents of Initial Statements. Initial statements shall disclose any reportable
investments, interests in real property and business positions held on the effective date of the
code and income received during the 12 rnonths prior to the effective date of the code.
(13) Contents of Assuming Office Statements. Assuming office statements shall disclose
any reportable investments, interests in real property and business positions held on the date of
assuming office or, if subject to State Senate confirmation or appointment, on the date of
nomination, and income received during the 12 months prior to the date of assuming office or the
date of being appointed or nominated, respectively,
(C) Contents of Annual Statements. Annual statements shall disclose any reportable
investments, interests in real property, income and business positions held or received during the
previous calendar year provided, however, that the period coveted by an employee's first annual
statement shall begin on the effective date of the code or the date of assuming office whichever is
later.
(D) Contents of Leaving Office Statements. Leaving office statements shall disclose
reportable investments, interests in real property, income and business positions held or received
during the period between the closing date of the last statement filed and the date of leaving
Office.
(7) Section 7. Manner of Reporting. Statements of economic interests shall be made on
forms prescribed by the Fair Political practices Commission and supplied by the agency, and
shall contain the following information:
(A) Investments and Real property Disclosure. When an investment or an interest in real
4 18730
09/14/1998 09:47 9163223711 FPPC PAGE 06
property3 is required to be reported,` the statement shall contain the following:
1. A statement of the nature of the investment or interest;
2. The name of the business entity in which each investment is held, and a general
description of the business activity in which the business entity is engaged;
3. The address or other precise location of the real property;
4. A statement whether the fair market value of the investment or interest in real property
exceeds one thousand dollars ($1,000), exceeds ten thousand dollars ($10,000), or exceeds one
hundred thousand dollars ($100,000).
(B) Personal Income Disclosure. When personal income is required to be reported,' the
statement shall contain:
1. The name and address of each source of income aggregating two hundred fifty dollars
($250) or more in value or fifty dollars ($50) or more in value if the income was a gift, and a
general description of the business activity, if any, of each source;
2. A statement whether the aggregate value of income from each source, or in the case of
a loan, the highest amount owed to each source, was one thousand dollars ($1,000) or less,
greater than one thousand dollars ($1,000), or greater than ten thousand dollars ($10,000);
3. A description of the consideration, if any, for which the income was :received;
4. In the case of a gift, the name, address and business activity of the donor and any
intermediary through which the gift was made; a description of the gift; the amount or value of
the gift; and the date on which the gift was received;
' For the purpose of disclosure only (not disqualification), an interest in real property does not include the
principal residence of the filer.
' Investments and interests in real property which have a fair market value of less than $1,000 are not
investments and interests in real property within the meaning of the Political Reform Act. However, investments or
interests in real property of an individual include those held by the individual's spouse and dependent children as
well as a pro rata share of any investment or interest in real property of any business entity or trust in which the
individual, spouse and dependent children own, in the aggregate, a direct, indirect or beneficial interest of 10
percent or greater.
A, designated employee's income includes his or her community property interest in the income of his or
her spouse but does not include salary or reimbursement for expenses received from a state, local or federal
government agency.
5 18730
09/14/1998 09:47 9163223711 FPPC PAGE 07
5. In the case of a loan, the annual interest rate and the security, if any, given for the loan.
(C) Business Entity Income Disclosure. When income of a business entity, including
income of a sole proprietorship, is required to be reported,6 the statement shall contain:
entity,
1. The name, address, and a general description of the business activity of the business
2. The name of every person from whom the business entity received payments if the
filer's pro rata share of gross receipts from such person was equal to or greater than ten thousand
dollars ($10,000).
(D) Business Position Disclosure. When business positions are required to be reported, a
designated employee shall list the name and address of each business entity in which he or she is
a director, officer, partner, trustee, employee, or in which he or she holds any position of
management, a description of the business activity in which the business entity is engaged, and
the designated employee's position with the business entity.
(E) Acquisition or Disposal During Reporting Period. In the case of an annual or leaving
office statement, if an investment or an interest in real property was partially or wholly acquired
or disposed of during the period covered by the statement, the statement shall contain the date of
acquisition or disposal.
(8) Section S. Prohibition on Receipt of Honoraria.
(A) No member of a state board or commission, and no designated employee of a state or
local government agency, shall accept any honorarium from any source, if the member or
employee would be required to report the receipt of income or gifts from that source on his or her
statement of economic interests. This section shall not apply to any part-time member of the
governing board of any public institution of higher education, unless the member is also an
elected official.
- Income of a business entity is reportable if the direct, indirect or beneficial interest of the filler and the
filer's spouse in the business entity aggregates a 10 percent or greater interest. In addition, the disclosure of persons
who are clients or customers of a business entity is requited only if the clients or customers are within one of the
disclosure categories of the filer.
6 18730
09/14/1998 09:47 9163223711 FPPC PAGE 08
Subdivisions (a), (b), and (c) of Government Code Section 89501 shall apply to the
prohibitions in this section.
This section shall not limit or prohibit payments, advances, or reimbursements for travel and
related lodging and subsistence authorized by Government Code Section 89506.
(8.1) Section 8.1 Prohibition on Receipt of Gifts in Excess of $290.
(A) No member of a state board or commission, and no designated employee of a state
or local government agency, shall accept gifts with a total value of more than $290 in a calendar
year from any single source, if the member or employee would be required to report the receipt
of income or gifts from that source on his or her statement of economic interests. This section
shall not apply to any part-time member of the governing board of any public institution of
higher education, unless the member is also an elected official_
Subdivisions (e), (f), and (g) of Government Code Section 89503 shall apply to the
prohibitions in this section.
(9) Section, 9. Disqualification. No designated employee shall make, participate in
making, or in any way attempt to use his or her official position to influence the making of any
governmental decision which he or she knows or has reason to know will have a reasonably
foreseeable material financial effect, distinguishable from its effect on the public generally, on
the official or a member of his or her immediate family or on:
(A) Any business entity in which the designated employee has a direct or indirect
investment worth one thousand dollars ($1.,000) or more;
(13) Any real property in which the designated employee has a direct or indirect interest
worth one thousand dollars ($1,000) or more;
(C) Any source of income, other than gifts and other than loans by a commercial lending
institution in the regular course of business on terms available to the public without regard to
official status, aggregating two hundred fifty dollars ($250) or more in value provided to,
received by or promised to the designated employee within 12 months prior to the time when the
decision is made;
(D) Any business entity in which the designated employee is a director, officer, partner,
7 18730
09/14/1998 09:47 9163223711 FPPC
PAGE 09
trustee, employee, or holds any position of management; or
(E) Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating
$290 or more provided to; received by, or promised to the designated employee within 12
months prior to the time when the decision is made.
(9.3) Section 9.3. Legally Required Participation. No designated employee shall be
prevented from making or participating in the making of any decision to the extent his or her
participation is legally required for the decision to be made. The fact that the vote of a
designated employee who is on a voting body is needed to break a tie does not make his or her
participation legally required for purposes of this section_
(9.5) Section 9.5. Disqualification of State Officers and Employees. In addition to the
general disqualification provisions of Section 9, no state administrative official shall make,
participate in malting, or use his or her official position to influence any governmental decision
directly relating to any contract where the state administrative official knows or has reason to
know that any party to the contract is a person with whom the state administrative official, or any
member of his or her immediate family has, within 12 months prior to the time when the official
action is to be taken;
(A) Engaged in a business transaction or transactions on terms not available to members
of the public, regarding any investment or interest in real property; or
(B) Engaged in a business transaction or transactions on terms not available to members
of the public regarding the rendering of goods or services totaling in value one thousand dollars
($1,000) or more.
(10) Section 10. Manner of Disqualification. When a designated employee determines
that he or she should not make a governmental decision because he or she has a disqualifying
interest in it, the determination not to act must be accompanied by disclosure of the disqualifying
interest. In the case of a voting body, this determination and disclosure shall be made part of the
agency's official record; in the case of a designated employee who is the head of an agency, this
determination and disclosure shall be made in writing to his or her appointing authority; and in
the case of other designated employees, this determination and disclosure shall be made in
8 18730
09/14/1998 09:47 9163223711 FPPC PAGE 10
writing to the designated employee's supervisor.
(11) Section 11. Assistance of the Commission and Counsel. Any designated employee
who is unsure of his or her duties under this code may request assistance from the Fair Political
Practices Commission pursuant to Government Code Section. 83114 or from the attorney for his
or her agency, provided that nothing in this section requires the attorney for the agency to issue
any formal or informal opinion.
(12) Section 12. Violations. This code has the force and effect of law. Designated
employees violating any provision of this code are subject to the administrative, criminal and
civil sanctions provided in the Political Reform Act, Government Code Sections 81000 - 91015.
In addition, a decision in relation to which a violation of the disqualification provisions of this
code or of Government Code
Section 87100 or 87450 has occurred may be set aside as void pursuant to Government Code
Section 91003_
Note: AUTHORITY_ Section 83112, Gov. Code
REFERENCE: Sections 87103(e), 87300-87302, 89501, 89502, 89503, Gov. Code
H DIY
(1) New section filed 4-2-80 as an emergency; effective upon filing. Certificate of
Compliance included.
2 Editorial correction.
3 ,Amendment of subsection filed 1-9-81; effective thirtieth day thereafter.
4 Amendment of subsection7 )1. filed 1-26-83; effective thirtieth day thereafter.
5 Amendment of subsection �7�A) Filed 11-10-83; effective thirtieth day thereafter.
6 Amendment filed 4-13-87; effective thirtieth day thereafter.
7 Amendment of subsection (b) filed 10-21-88; effective thirtieth day thereafter_
(8 Amendment filed 8-28-90; effective thirtieth day thereafter.
9 Amendment filed 8-7-92; effective thirtieth day thereafter.
10 Amendment filed 2-5-93; effective upon filing.
11 Amendment filed 3-14-95; effective upon filing.
12 Amendment filed 10-23-96; effective upon filing.
13 Amendment filed 4-9-97; effective upon filing.
9 18730