HomeMy WebLinkAboutMINUTES - 12032002 - C119 c.1/9 /
TO: Board of Supervisors 'f
CONTRA
FROM: Silvano B. Marchesi, County Counsel COSTA
By: Mary Ann McNett Mason,Deputy County Counsel COUNTY
DATE: November 6, 2002
SUBJECT: Conflict of Interest Code of the Delta Diablo Sanitation District
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION(S):
Approve amendments to the Delta Diablo Sanitation District Conflict of Interest Code to substitute the
attached as said code, as shown on the attached Resolution from the District.
BACKGROUND/REASON(S) FOR RECOMMENDATION(S):
The Delta Diablo Sanitation District has amended its code and submitted the amended code to the Board
for approval pursuant to Government Code section 87306 and 87306.5.
CONTINUED ON ATTACHMENT: YES SIGNATURE: ma
yRECOMMENDATION OF COUNTY ADMINISTRATOR—RECOMMENDATION OF BOARD
COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF B ON_--December 3, 2002- APPROVED AS RECOMMENDED xx OTHER
VOTE OF SUPERVISORS:
I HEREBY CERTIFY THAT THIS IS A
xx UNANIMOUS (ABSENTNone) TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED
ABSENT: ABSTAIN: ON THE MINUTES OF THE BOARD
OF SUPERVISORS ON THE DATE
SHOWN.
ATTESTED: December 2002
JOHN SWEETEN, CLERK OF
THE BOARD OF SUPERVISORS
Contact: County Counsel AND COUNTY ADMINISTRATOR
cc: Clerk, Board of Supervisors
Denise Jones, Delta Diablo Sanitation District
BY -3^ - L�- , DEPUTY
I:UOANNIMAMtdeltabdordcoi.wpd
BEFORE THE BOARD OF DIRECTORS
OF
DELTA DIABLO SANITATION DISTRICT
Re: Amending District's Conflict of Interest )
Code/Incorporating Fair Political Practices )
Commission Model Code } RESOLUTION NO, 10/02
THE BOARD OF DIRECTORS OF DELTA DIABLO SANITATION DISTRICT HAS DETERMINED THAT:
WHEREAS,the Political Reform Act(Government Code Section 81000,et. seq.)requires state and local government
agencies to adopt and promulgate conflict of interest codes; and
WHEREAS,in accordance with the provisions of the Act,the District is required to review and amend its Conflict of
Interest Code each even numbered year,and to submit any amendments to the Board of Supervisors of Contra Costa County,
the code reviewing body;and
WHEREAS,it is necessary to amend the District's Conflict of Interest Code to ensure that it contains all provisions
required by the Political Reform Act,Government Code,section 87302,and to update Exhibits A and B to that Code;and
WHEREAS, The Fair Political Practices Commission has adopted a regulation(California Code of Regulations, Title 2, §
18730)that contains the terms of a standard conflict of interest code,and after public notice and hearing,that regulation may
be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act;
NOW THEREFORE,the Board of Directors of Delta Diablo Sanitation District DOES HEREBY RESOLVE AND
ORDER as follows:
1. The District's Conflict of Interest Code is hereby amended in its entirety to substitute the attached document,
consisting of the incorporation of the terms of California Code of Regulations,Title 2, § 18730 and any amendments
to it duly adopted by the Fair Political Practices Commission,and Exhibits A and B thereto,as the Conflict of Interest
Code of the Delta Diablo Sanitation District.
2. The General Manager,or his designee,is directed to forward the District's revised Conflict of Interest Code to the
Contra Costa County Board of Supervisors for approval.
3. The amendment to the Conflict of Interest Code shall become effective upon approval by the code reviewing body.
PASSED AND ADOPTED on October 9,2002,by the following vote:
AYES: AIELLO,FREITAS and GLOVER ABSENT: NONE
NOES: NONE ABSTAIN: NONE
I HEREBY CERTIFY that the foregoing is a true and correct copy of a Resolution adopted by the Board of
Directors of Delta Diablo Sanitation District on October 9,2002.
ATTEST: Donald P.Freitas
Board Secre ary
Attachments: Regulations of the Fair Political Practices Commission
Exhibits A&B
cc: District Board Resolution File
2002/2003 Conflict of Interest Code File
RESOLUTION NO. 10/02
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DELTA D►IABLO SANITATION DISTRICT
CONFLICT OF INTEREST CODE
(Incorporating :Fair Political Practices
Commission Model Carle)
PRESENTED TO BOARD OF DIRECTOR
OCTOBER 912002
Adopted
Secretary to the
Board of Directors
Resolution No. (2002
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Delta Diablo Sanitation District
CONFLICT OF INTEREST CODE
Table of Contents
PAGE
Section 1. Incorporation of Model Code........................ ....... 1
Section 2. Where Statements are Filed ............ ............... ..... 1
Exhibit A -- Designated Positions ......... ......... ... .................. 2
Exhibit B — Disclosure Categories ......... ... .... ..... ......... ....... 3
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15
CONFLICT OF INTEREST CODE OF THE DELTA DIABLO SANITATION DISTRICT
1. Incorporation of State Model Code By Deference
The Political Reform Act (Government Code § 81000, et. seq.)requires state and local
government agencies to adopt and promulgate conflict of interest codes. The Fair Political
Practices Commission has adopted a regulation(California Code of Regulations, title 2, § 18730)
that contains the terms of a standard conflict of interest code. After public notice and hearing, it
may be amended by the Fair Political Practices Commission to conform to amendments in the
Political Reform Act. Therefore,the terms of California Code of Regulations, title 2, § 18730
and any amendments to it duly adopted by the Fair Political Practices Commission are hereby
incorporated by reference. This regulation and the attached Exhibits A and B designating
officials and employees and establishing disclosure categories, shall constitute the Conflict of
Interest Code of the Delta Diablo Sanitation District.
2. Where Statements are to be Filed
Designated officials and employees shall file their disclosure statements with the
District's Secretary to the Board of Directors who will retain the statements and will make them
available for public inspection and reproduction, In the case of the General Manager and the
Members of the Board of Directors, the Assistant Secretary to the Board of Directors, or the
designee of the General Manager, shall make and retain a copy of the disclosure statement and
forward the original to the Clerk of the Board of Supervisors.
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DDSD CONFLICT OF INTEREST CODE
EXHIBIT "A" DESIGNATED POSITIONS
DESIGNATED POSITIONS DISCLOSURE CATEGORY
Members of the Board of Directors* 1
District Counsel I
General Manager/District Engineer l
Assistant to the General Manager 1
Technical Services:
Technical Services Manager 1
Senior Engineer l
Associate Engineer 1
Construction Inspector 1
Administrative Services.
Administrative Services Manager 1
Finance Supervisor 1
MIS Coordinator 1
Personnel and Information Officer 1
Risk Coordinator 1
Field Services:
Field Services Manager I
Laboratory Director 1
Industrial Monitoring Inspector I &II 1
Plant Manager 1
Maintenance Manager 1
Inventory Control Specialist 1
Consultants**
*The members of the Board of Directors may include.
Chair of the Board of Supervisors, and the designated alternate
Mayor of the City of Antioch, and the designated alternate
Mayor of the City of Pittsburg, and the designated alternate
**Consultants shall be included in the list of designated employees and shall disclose pursuant to
the broadest disclosure category in the code subject to the following limitation:
The General Manager/District Engineer 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 General
Manager/District Engineer'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.
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CONFLICT OF INTEREST CODE
EXHIBIT 'B" DISCLOSURE CATEGORIES
Designated Employees in Group "1" must report:
Investments in any business entity; interests in real property; income from any source; and status
as a director,officer, partner,trustee,employee, or holder of any position of management in any
business entity. Financial interests are reportable only if located within the District; or if the
business entity is doing business or planning to do business in the District (and such plans are
known by the designated employee); or has done business within the District at any time during
the two year period prior to the filing of the statement.
Designated Employees in Group '2" _must report:
Investments in any business entity, income from any source and status as a director, officer,
partner,trustee, employee, or holder of a position of management in any business entity, which,
within the last two years has contracted, or that it is foreseeable that in the future they may
contract with the District to provide services, supplies, materials, machinery or equipment.
Designated Employees in Group "3"must roprt:
Investments in any business entity, income from any source and status as a director, officer,
partner,trustee, employee, or holder of position of management in any business entity which,
within the last two years, had contracted or that it is foreseeable that in the future they may
contract with Delta Diablo Sanitation District to provide services, supplies, materials, machinery
or equipment which are related to one of the following areas:
(A) District Buildings- Maintenance
(B) District Buildings - Construction
(C) District Grounds- Maintenance
(D) Sewer Facility Maintenance
(E) Sewer Facility Construction
(F) Sanitation& Water Supply
(G) Office Supplies &Equipment
(H) Motor Vehicles
(I) Motor Vehicle farts
(J) Petroleum Products
(K) Landscaping
(L) Electronic Equipment: telephone equipment; computers; instrumentation
equipment; including all associated software.
(M) Professional and Other Services including accounting; auditing; banking;
engineering; investment and/or legal services.
(N) Any business located in the Delta Diablo Sanitation District service area.
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California Fair Political Practices Commission--Regulations of the Fair Political Practices.. Page 1 of 7
18730. Provisions of Conflict of Interest Gerdes
(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 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 81040, et seq. The
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 Pair
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 87204; 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 Piling. 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 Piling.
(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 34 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
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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 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 property3 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;
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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($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,a 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 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$320.
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(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$320 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 85503 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.
(S) 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 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, 1558.
(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 aarties to the loan agreement. date of the loan. amount of the loan. term of the loan. date or dates
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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 receivers 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 knew will have a reasonably foreseeable material financial effect, distinguishable from
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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;
(S)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 ($800)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$320 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
(S) 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.
ENDNOTES
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
intp.msts to r.nver rpnnrtahtQ intArpett in hath hiftdirtinns nnri filt-rnnipi; of this Pxnnnriprl :c MPMAnt with hnth
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California Fair Political Practices Commission--Regulations of the Fair Political Practices.. Page 7 of 7
entities in lieu of fling separate and distinct statements, provided that each copy of such expanded statement
fled 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 properly 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 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.
NOTE:Authority cited: Section 83112, Government Code.
Reference: Sections 87103(e), 87300-87302, 89501, 89502 and 89503, Government Code.
02/01/01
Copyright 2002
State of Califomla FPPC.
All rights reserved.
h4://www.fppe.ca.gov/index.htrnl?ID=52&r—ids/legal/regs/1 8730.htm 10/29/2002