HomeMy WebLinkAboutAGENDA REPORT 2004 0915 CC REG ITEM 10HTO:
FROM:
DATE:
MOORPARK CITY COUNCIL
AGENDA REPORT
Honorable City Council
ITEM 10 - N•
CITY OF MOORPARK, CALIFORNIA
City Council Meeting
of 9- /!'000 4/
ACTION:
�A&ea . LAo .
BY:
Deborah S. Traffenstedt, ATOM /City Clerk
September 8, 2004 (CC Meeting of 9/15/04)
!-5T
SUBJECT: Consider Resolution Amending the Conflict of Interest Code
of the City of Moorpark and Rescinding Resolution No. 2002-
2020
BACKGROUND AND DISCUSSION
The Political Reform Act, Government Code Section 87300, et seq.,
requires every state and local government agency to adopt and promulgate
a Conflict of Interest Code. The City's Conflict of Interest Code was
last amended in October 2002, when the City Council adopted Resolution
No. 2002 -2020. Since the time of the last update, staff positions have
been added and position titles have been revised, requiring amendment of
the City's Conflict of Interest Code.
Attached is a draft resolution which would rescind Resolution No. 2002-
2020 and revise the City's Conflict of Interest Code to include an
updated list of Designated Employees and the Disclosure Categories, and
incorporates by reference the terms of Title 2, Division 6, California
Code of Regulations, Section 18730, and any amendments to it duly adopted
by the Fair Political Practices Commission (FPPC). The attached
resolution includes City and Redevelopment Agency Designated Employees.
The City's Conflict of Interest Code is intended to list all designated
positions, even if there is no current employee with that position title.
For example, the City currently does not have a Deputy City Manager;
however, that position is included in the City's Classification and
Salary Plans and is listed in the attached resolution as a designated
position. The City's Conflict of Interest Code does not establish any
disclosure obligation for the City Councilmembers, Planning
Commissioners, City Manager, City Attorney, and public officials who
manage public investments (City Treasurer and Redevelopment Agency
Treasurer), as Government Code Section 87200, et seq., requires such
disclosure as a matter of state law.
STAFF RECOMMENDATION
Adopt Resolution No. 2004-
Attachments:
1. Draft Resolution
2. Title 2, Division 6, California Code of Regulations, Section 18730
00040"o",
RESOLUTION NO. 2004-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, AMENDING THE CONFLICT OF
INTEREST CODE OF THE CITY OF MOORPARK AND
RESCINDING RESOLUTION NO. 2002 -2020
WHEREAS, the Political Reform Act, Government Code Section
87300, et seq., requires every state and local government agency to
adopt and promulgate a Conflict of Interest Code; and
WHEREAS, the Fair Political Practices Commission (FPPC) has
adopted a regulation which contains the terms of a standard model
Conflict of Interest Code (Title 2, Division 6, California Code of
Regulations, Section 18730), which can be incorporated by reference,
and which may be amended by the FPPC to conform to amendments in the
Political Reform Act after public notice and hearings conducted by
the FPPC pursuant to the Administrative Procedure Act, Government
Code Sections 11370, et seq.; and
WHEREAS, the City Council has determined that the terms of Title
2, Division 6, California Code of Regulations, Section 18730, and any
amendments to it duly adopted by the FPPC, along with the attached
Appendices A and B, accurately set forth the City's Conflict of
Interest Code, including those positions which should be designated,
and the categories of financial interests which should be made
reportable; and
WHEREAS, the persons holding the positions listed in Appendix B
are designated employees, because it has been determined that those
positions make or participate in the making of decisions which may
foreseeably have a material effect on financial interests; and
WHEREAS, the City's Conflict of Interest Code does not establish
any disclosure obligation for the City Councilmembers, Planning
Commissioners, City Manager, City Attorney, and Public Officials who
Manage Public Investments (City Treasurer and Redevelopment Agency
Treasurer), as Government Code Section 87200 et seq. requires such
disclosure as a matter of state law, nor does the City's Conflict of
Interest Code include a position which is solely clerical,
ministerial or manual, or any unsalaried member of a board or
commission which is solely advisory; and
WHEREAS, the City Council has previously designated positions
and disclosure categories in Resolution No. 2002 -2020, which now
needs to be rescinded and an updated Conflict of Interest Code
adopted, and the City Council determines that the attached Appendices
accurately set forth those positions which should be designated and
categories of financial interest which should be made reportable.
000408
Resolution No. 2004-
Page 2
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES
HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The terms of Title 2, Division 6, California Code of
Regulations, Section 18730, and any amendments to it duly adopted by
the FPPC are hereby incorporated by reference and along with the
attached Appendices A and B, in which employees, officials, and
consultants are designated and disclosure categories are set forth,
constitute the Conflict of Interest Code for the City of Moorpark.
If any of the positions listed in Appendix A have a change of title,
or if a position is transferred from one City department or office to
another, the filing requirement and disclosure category shall remain
the same until the next update of the City's Conflict of Interest
Code.
SECTION 2. Persons holding designated positions shall file a
Statement of Economic Interests pursuant to Section 4 of the Conflict
of Interest Code (Title 2, Division 6, California Code of
Regulations, Section 18730) . The City Clerk shall carry out the
duties of Filing Officer for the City Council, which is the Code
Reviewing Body.
SECTION 3. Resolution No. 2002 -2020 is hereby rescinded.
SECTION 4. The City Clerk shall forward a copy of this
resolution to the FPPC.
SECTION 5. The City Clerk shall certify to the adoption of this
resolution and shall cause a certified resolution to be filed in the
book of original resolutions.
PASSED AND ADOPTED this 15th day of September, 2004.
Patrick Hunter, Mayor
ATTEST:
Deborah S. Traffenstedt City Clerk
Attachment: Appendices A and B
0 W0409
Resolution No. 2004 -
Page 3
Designated Positions
APPENDIX A
CITY OF MOORPARK
CONFLICT OF INTEREST CODE
DESIGNATED EMPLOYEES
Disclosure Category
I. Assistant City Manager 1
1.
Management Analyst 1
2.
Senior Management Analyst 1
II. Administrative Services Department
1.
Accountant I 1
2.
Accountant II 1
3.
Administrative Services Director 1
4.
Administrative Services Manager 1
5.
Administrative Services Technician 2
6.
Budget and Finance Manager 1
7.
Deputy City Manager 1
8.
Information Systems Manager 1
9.
Information Systems Supervisor 1
III. City Clerk's Department
1.
Assistant to City Manager /City Clerk
1
2.
Assistant City Clerk
1
3.
Deputy City Clerk I
3
4.
Deputy City Clerk II
3
5.
Human Resources Analyst
4
6.
Human Resources Assistant
4
IV. Community
Development Department
1.
Assistant Planner
1
2.
Associate Planner
1
3.
Building Inspector
1*
4.
Building Official
1*
5.
Code Enforcement Officer I
1
6.
Code Enforcement Officer II
1
7.
Community Development Director
1
8.
Construction Administrator
1*
9.
Planning Manager
1
10.
Planning Technician II
1
11.
Principal Planner
1
12.
Senior Building Inspector
1*
13.
Senior Management Analyst
1
1414.
Senior Planner
1
V. Community
Services Department
1.
Community Services Director
1
2.
Community Services Technician
5
23.
Maintenance Supervisor
-56
-34.
Management Analyst
1
45.
Management Assistant
1
§6.
Recreation Coordinator I
-67
-67.
Recreation Coordinator II
&7
-:7-8.
Recreation Superi tcn4er }Manager
1
Resolution No. 2004 -
Page 4
Designated Positions
Disclosure Category
-49.
Recreation Supervisor
-67
5310.
Senior Center Coordinator
-7-8
181.
Senior Maintenance Worker
§6
1�2.
Senior Management Analyst
1
1�3.
Vector /Animal Control Specialist
-99
VI. Public Works and City Engineer Departments
1.
Assistant City Engineer
1*
2.
Associate Engineer
1*
3.
City Engineer
1�
4.
Civil Engineer
1*
5.
Management Analyst
1
6.
Public Works Director
1
7.
Public Works Supervisor
1
8.
Senior Maintenance Worker
-56
9.
Senior Management Analyst
1
10.
Traffic Engineer
1*
VII. Redevelopment Agency
1.
Redevelopment Agency Counsel
1*
2.
Redevelopment Agency Executive Director
1
3.
Redevelopment Agency Consultants
1*
4.
Redevelopment Manager
1
5.
Redevelopment Agency Secretary
1
6.
Senior Management Analyst
1
VIII. Parks
& Recreation Commission Members
1
IX. Assistant
City Attorney —
lam.
Other
Designated Consultants
1
* The Fair Political Practice Commission Regulation (2 California Code of Regulations Section
18700) defines "consultant" as an individual who, pursuant to a contract with a state or local
government agency:
(A) Makes a governmental decision whether to:
(i) Approve a rate, rule or regulation;
(ii) Adopt or enforce a law;
(iii) Issue, deny, suspend, or revoke any permit, license, application, certificate,
approval, order or similar authorization or entitlement;
(iv) Authorize the agency to enter into, modify or renew a contract provided it is the
type of contract which requires agency approval;
(v) Grant agency approval to a contract which requires agency approval and in which the
agency is a party or to the specifications for such a contract;
(vi) Grant agency approval to a plan, design, report, study or similar item;
(vii) Adopt, or grant agency approval of, policies, standards, or guidelines for the
agency, or for any subdivision thereof; or
(B) Serves in a staff capacity with the agency and in that capacity performs the same or
substantially all the same duties for the agency that would otherwise be performed by an
individual holding a position specified in the agency's Conflict of Interest Code.
Consultants shall be included in the list of designated positions and shall disclose pursuant
to Category 1, subject to the following limitation:
The City Manager may determine in writing that a particular consultant, although a "designated
position," is hired to perform a range of duties that is limited in scope and thus is not
required to fully comply with the disclosure requirements described in this section. Such
written determination shall include a description of the consultant's duties and, based upon
that description, a statement of the extent of disclosure requirements. The City Manager's
determination is a public record and shall be retained for public inspection in the same manner
and location as this Conflict of Interest Code.
000411-
Resolution No. 2004 -
Page 5
APPENDIX B
CITY OF MOORPARK
CONFLICT OF INTEREST CODE
DISCLOSURE CATEGORIES
Category 1
Any investment or interest in real property, any loan, any gift, or any
income in which the "designated employee" or spouse has an interest
within the jurisdiction of the City of Moorpark, as defined in this Code;
and any investments in business entities or income from sources which
provide supplies, equipment or services of the type utilized by the
department or division for which the Designated Employee is assigned.
*Disclosure by Consultants
Consultants shall be included in the list of designated employees and
shall disclose pursuant to Category 1, subject to the following
limitation:
The City Manager may determine in writing that a particular consultant,
although a "designated position," is hired to perform a range of duties
that is limited in scope and thus is not required to fully comply with
the disclosure requirements in this section. Such written determination
shall include a description of the consultant's duties and, based upon
that description, a statement of the extent of disclosure requirements.
The City Manager's determination is a public record and shall be retained
for public inspection in the same manner and location as this Conflict of
Interest Code.
Category 2
Any investment in, or income from, as defined by the Code, any person or
business entity which provides services, goods or equipment involving
purchasing of supplies, equipment, or services, including but not limited
to maintenance of City equipment such as telephones and copiers and
purchasing of City office supplies and equipment.
Category 3
Any investment in, or interest from, as defined by the Code, any person
or business entity which provides services, goods or equipment involving
municipal elections, printing services, records management, or
preparation of minutes or transcripts.
(.r ' x
Resolution No. 2004 -
Page 6
Category 4
Any investment in, or income from, as defined by the Code, any person or
business entity which provides human resources and risk management
related services, goods or equipment including but not limited to
recruitment, testing, selection or placement, temporary staffing, and
insurance and other benefit programs.
Category 5
Any investment in, or income from, as defined by the Code, any person or
business entity which provides public transit, solid waste, recycling, or
household hazardous waste related services, goods or equipment including
but not limited to bus and taxi services, solid waste franchise services,
and household hazardous waste cleanup type services.
Category -56
Any investment in, or income from, as defined by the Code, any person or
business entity which provides parks and recreation and public works
maintenance related services, goods, or equipment, including but not
limited to maintenance of parks, City -owned facilities /buildings, streets
and other public right -of -way.
I Category $7
Any investment in, or income from, as defined by the Code, any person or
business entity which provides parks and recreation related services,
goods, or equipment, including but not limited contract instructor
services, recreation and special event services and supplies, playground
equipment, day care and teen event services and supplies.
Category 78
Any investment in, or income from, as defined
business entity which provides services, goods,
including but not limited contract instructor
and special event services and supplies.
Category 89
by the Code, any person or
or equipment for seniors,
services, and recreation
Any investment in, or income from, as defined by the Code, any person or
business entity which provides vector and /or animal control related
services, goods, or equipment.
(� () 0 11.3
California Fair Political Practices Commission -- Regulations of the Fair Political Practice... Page 1 of 9
Regulations of the Fair Political
Commission
TITLE 2, DIVISION 6, CALIFORNIA CODE OF REGULATIONS
i,FPPC Home Page
Commission
CAgendas
(Back to Regulations of the Fair Political Practices Commission)
Candidates and
Committees
(Regulations of the Fair Political Practices Commission, Title 2, Division 6,
Lobbyists
California Code of Regulations.)
:Restrictions on
Government Officials
and Employees
18730. Provisions of Conflict of Interest Codes.
gliwEthics Orientation for
State Officials
(a) Incorporation by reference of the terms of this regulation along with the
Conflicts of Interest/
designation of employees and the formulation of disclosure categories in the
Form 700 / COI Codes
Appendix referred to below constitute the adoption and promulgation of a conflict
:Enforcement
of Interest code within the meaning of Government Code section 87300 or the
udit Program
amendment of a conflict of interest code within the meaning of Government Code
Workshops & Seminars
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
Legislation
promulgated requires the reporting of reportable items in a manner substantially
r#wLitigation
equivalent to the requirements of article 2 of chapter 7 of the Political Reform Act,
j Mailing Lists
Government Code sections 81000, et seq. The requirements of a conflict of
;OkLinks
interest code are in addition to other requirements of the Political Reform Act,
Press Center
such as the general prohibition against conflicts of interest contained in
Library and Publications
Government Code section 87100, and to other state or local laws pertaining to
The Political Reform
conflicts of interest.
Act
Regulations of the
Fair Political
b The terms of a conflict of interest code amended or adopted and promulgated
( ) P P 9
Practices
pursuant to this regulation are as follows:
Commission
Newly Adopted or
Amended
1 Section 1. Definitions.
( )
Regulations
Proposed
The definitions contained in the Political Reform Act of 1974, regulations of the
Regulations
Fair Political Practices Commission (2 Cal. Code of Regs. sections 18100, et
FPPC Opinions
seq.), and any amendments to the Act or regulations, are incorporated by
FPPC Publications
reference into this conflict of interest code.
woAdvice Summaries
Proposition 34
(2) Section 2. Designated Employees.
Archive
Internet Political
Practices
The persons holding P ositions listed in the Appendix are designated employees.
Phase 2
It has been determined that these persons make or participate in the making of
Forms
decisions which may foreseeably have a material effect on financial interests.
Privacy
(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.
000.114
http: / /www.fppc.ca.gov/ index. html? ID= 52 &r_id = /Iegal/regs /I 8730.htm 9/8/2004
California Fair Political Practices Commission -- Regulations of the Fair Political Practice... Page 2 of 9
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.1
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 body in the agency's conflict
of interest code. 2
(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.
o0041S
http: / /www.fppc.ca.gov/ index. html? ID= 52 &r_id= /Iegal/regs /18730.htm 9/8/2004
California Fair Political Practices Commission -- Regulations of the Fair Political Practice... Page 3 of 9
(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 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 3 is required to be reported,4
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 two thousand dollars ($2,000), exceeds ten thousand dollars
000416
http://www.fppc.ca.gov/index.html?ID=52&r—id=/Iegal/regs/I 8730.htm 9/8/2004
California Fair Political Practices Commission -- Regulations of the Fair Political Practice... Page 4 of 9
($10,000), exceeds one hundred thousand dollars ($100,000), or exceeds one
million dollars ($1,000,000).
(B) Personal Income Disclosure. When personal income is required to be
reported,5 the statement shall contain:
1. The name and address of each source of income aggregating five hundred
dollars ($500) 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), greater than
ten thousand dollars ($10,000), or greater than one hundred thousand dollars
($100,000);
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,6 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 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
http://www.fppc.ca.gov/index.html?ID=52&r—id= /Iegal/regs/I 8730.htm 9/8/2004
California Fair Political Practices Commission -- Regulations of the Fair Political Practice... Page 5 of 9
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 $340.
(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 $340 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 he 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 terms 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
( 00418
http://www.fppc.ca.gov/index.html?ID=52&r—id=/Iegal/regs/1 8730.htm 9/8/2004
California Fair Political Practices Commission -- Regulations of the Fair Political Practice... Page 6 of 9
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 five hundred
dollars ($500) 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 terms 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.
000119
http: / /www.fppc.ca.gov/ index. html? ID= 52 &r_id= /Iegal/regs /I 8730.htm 9/8/2004
California Fair Political Practices Commission -- Regulations of the Fair Political Practice... Page 7 of 9
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 two thousand dollars ($2,000) or more;
(B) Any real property in which the designated employee has a direct or indirect
interest worth two thousand dollars ($2,000) 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 five hundred dollars ($500) 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 $340 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
()OM2
http: / /www.fppc.ca.gov/ index .html ?ID= 52 &r_id = /Iegal/regs /I 8730.htm 9/8/2004
California Fair Political Practices Commission -- Regulations of the Fair Political Practice... Page 8 of 9
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. Disclosure of Disqualifying Interest.
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 may be accompanied by disclosure of the disqualifying
interest.
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.
(11) 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 cited: Section 83112, Government Code. Reference: Sections
87103(e), 87300 87302, 89501, 89502 and 89503, Government Code.
1 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.
2 See Government Code section 81010 and 2 Cal. Code of Regs. section 18115
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.
3 For the purpose of disclosure only (not disqualification), an interest in real
property does not include the principal residence of the filer.
4 Investments and interests in real property which have a fair market value of less
than $2,000 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
00011,7''1
http: / /www.fppc.ca.gov/ index. html? ID= 52 &r_id= /Iegal/regs /I 8730.htm 9/8/2004
California Fair Political Practices Commission -- Regulations of the Fair Political Practice... Page 9 of 9
Copyright 2004
State of California FPPC.
All rights reserved.
percent or greater.
5 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.
6 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.
History
1. New section filed 4 -2 -80 as an emergency; effective upon filing. Certificate of
Compliance included.
2. Amendment of subsection (b) filed 1 -9 -81; effective 30 days thereafter.
3. Amendment of subsection (b)(7)(B)l. filed 1- 26 -83; effective 30 days
thereafter.
4. Amendment of subsection (b)(7)(A) filed 11- 10 -83; effective 30 days thereafter.
5. Amendment filed 4- 13 -87; effective 5- 13 -87.
6. Amendment of subsection (b) filed 10- 21 -88; effective 11- 20 -88.
7. Amendment of subsections (b)(8)(A) and (b)(8)(B) and numerous editorial
changes filed 8- 28 -90; effective 9- 27 -90.
8. Amendment of subsections (b)(3), (b)(8) and renumbering of following
subsections and amendment of NOTE filed 8 -7 -92; effective 9 -7 -92.
9. Amendment filed 2 -4 -93; effective upon filing.
10. Change without regulatory effect adopting COIC for California Mental Health
Planning Council filed 11- 22 -93. Approved by FPPC 9- 21 -93.
11. Change without regulatory effect redesignating COIC for California Mental
Health Planning Council filed 1 -4 -94.
12. Amendment filed and effective 3- 14 -95.
13. Amendment filed and effective 10- 23 -96.
14. Amendment filed and effective 4 -9 -97.
15. Amendment filed and effective 8- 24 -98.
16. Amendment filed and effective 5- 11 -99.
17. Amendment filed 12 -6 -2000; effective 1 -1 -2001.
18. Amendment filed 1 -10 -2001; effective 2 -1 -2001.
19. Amendment filed and effective 2 -13 -2001.
20. Amendment filed 1- 16 -03; effective 1- 01 -03.
0001111-72
http: / /www.fppc.ca.gov/ index. html? ID= 52 &r_id= /Iegal/regs /I 8730.htm 9/8/2004