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HomeMy WebLinkAbout2010-10-26 RDA Item No. 5REPORT TO CITY COUNCIL/ REDEVELOPMENT AGENCY TO: MAYOR AND CITY COUNCIL CHAIRMAN AND AGENCY BOARD FROM: ROBERT A. BRADY CITY MANAGER DATE: OCTOBER 26, 2010 SUBJECT: CONSIDERATION OF ADOPTING THE BIENNIAL CONFLICT OF INTEREST CODE FOR THE CITY OF LAKE ELSINORE AND THE LAKE ELSINORE REDEVELOPMENT AGENCY Discussion The Political Reform Act, California Government Code, Section 81000 et seq., requires all local governmental agencies to review its Conflict of Interest Code biennially, in even numbered years to determine if its Code requires amendment. In addition, the City Council, as the Code Reviewing Body for all agencies under its jurisdiction must approve the Conflict of Interest Code for that agency. In that regard, the attached resolution also amends the Conflict of Interest Code of the Redevelopment Agency. Backqround The City Council and the Redevelopment Agency have adopted the model Conflict of Interest Code promulgated by the Fair Political Practices Commission and set forth at Title 2 of the California Code of Regulations, Section 18730. A copy of the model Code is attached for Council's review. As a result of adopting the model Code, the City's and Agency's Conflict of Interest Code is automatically updated in that it incorporates any changes made to the model Code. The list of Designated Employees which is included as an appendix to the Conflict of Interest Code is reviewed every two years and, if necessary, the Code is amended to incorporate any changes to the titles and reporting categories of the designated employees. AGENDA ITEM NO. 5 Page 1 of 29 Agenda Report for Conflict of Interest Code For Meeting of October 26, 2010 Page 2 On September 7t", the City Council was provided with the Biennial Notice indicating an amendment to the Code was necessary because there are changes to the list of designated employees in the current Code. Therefore, the City Council and Redevelopment Agency must amend their Codes to reflect the changes to the Designated Employees. Fiscal Impact There is no fiscal impact to the City. Recommendation: It is recommended that: (1) The City Council adopt the attached resolution amending the Conflict of Interest Code for the City and the Lake Elsinore Redevelopment Agency reflecting changes to the list of Designated Employees. (2) The Redevelopment Agency approve the resolution adopted by the City Council amending the Conflict of Interest Code reflecting changes to the list of Designated Employees. Prepared by: Carol Cowley Interim City Clerk Approved by: Robert A. Brady City Manager Attachments: Proposed Resolution Model Conflict of Interest Code Page 2 of 29 RESOLUTION NO. 2010 -065 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING RESOLUTION NO. 2008 -22 UPDATING THE CONFLICT OF INTEREST CODE FOR THE CITY OF LAKE ELSINORE AND THE LAKE ELSINORE REDEVELOPMENT AGENCY WHEREAS, the Political Reform Act of 1974, Government Code Section 81000 et sea., requires state and local government agencies to adopt and promulgate conflict of interest codes; and WHEREAS, the Fair Political Practices Commission has adopted a regulation, California Code of Regulations, Title 2, Section 18730, containing the terms of a standard conflict of interest code, which can be incorporated by reference and may be amended by the Fair Political Practices Commission after public notice and hearings to conform to amendments in the Political Reform Act; and WHEREAS, in 1990, the City of Lake Elsinore adopted Resolution No. 90- 121 -- Conflict of Interest Code - -to save the City time and money by minimizing the actions required to keep the Code in conformity with the Political Reform Act; and WHEREAS, the City of Lake Elsinore is amending the previous resolution to incorporate additional designated positions, revise titles of existing positions, and delete titles of previous positions to the Conflict of Interest Code for the City and Redevelopment Agency. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The terms of California Code of Regulations, Title 2, Section 18730 and any amendments to it duly adopted from time to time by the Fair Political Practices Commission and the attached Appendices "A" and "B" in which officials and employees re- designated and disclosure categories are set forth are hereby incorporated by reference and constitute the Conflict of Interest Code for the City of Lake Elsinore. Section 2. Persons holding designated positions shall file a statement of economic interests with the City of Lake Elsinore who will make the statements available for public inspection and reproduction pursuant to Government Code Section 81008. Upon receipt of the statements of the City Council, City Manager, City Attorney, City Treasurer, Planning Commission, and Director of Finance, the City shall make and retain a copy and forward the original of these statements to the California Fair Political Practices Commission. Statements for all other designated employees will be retained by the City of Lake Elsinore. Page 3 of 29 Resolution No. 2010 -065 Page 2 of 3 Section 3. The provisions of all Conflict of Interest Codes and amendments thereto previously adopted for the City of Lake Elsinore are hereby superseded. PASSED, APPROVED AND ADOPTED by the City Council of the City of Lake Elsinore, California, this 26th day of October 2010. MELISSA MELENDEZ, MAYOR CITY OF LAKE ELSINORE ATTEST: CAROL COWLEY, INTERIM CITY CLERK CITY OF LAKE ELSINORE UT1020TOM-9721MC915T.0 05 BARBARA ZEID LEIBOLD, CITY ATTORNEY CITY OF LAKE ELSINORE 2 Page 4 of 29 Resolution No. 2010 -065 Page 3 of 3 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, CAROL COWLEY, Interim City Clerk of the City of Lake Elsinore, California, hereby certify that Resolution No. 2010- 065was adopted by the City Council of the City of Lake Elsinore at a regular meeting held on the 26th day of October 2010, and that the same was adopted by the following vote: AYES: ►M ABSENT: CAROL COWLEY CITY CLERK 3 Page 5 of 29 APPENDIX A SCHEDULE OF DESIGNATED EMPLOYEES DESIGNATED EMPLOYEES DISCLOSURE CATEGORIES Administrative Services Senier Hama^ eset��,��A ^alpst 1-2, 3 Director of Administrative Services 1, 2, 3 Human Resources Administrator 1, 2, 3 City Manager's Office isatiens Manager Information Technology Supervisor 1, 2, 3 City Clerk's Office City Clerk 1, 2, 3 Deputy Cityvlerk 1, 2, 3 Communitv Development Building and Safety Manager 1, 2, 3 Building Inspector 1, 2, 3 Director of Community Development 1, 2, 3 Planning Manager 1,2,3 Planning Technician 1, 2, 3 Senior Planner 1, 2, 3 Parks & Recreation Public Works /Enaineerin Director of Public Works /City Engineer 1, 2, 3 Public Works Inspector 1, 2, 3 Public Works Manager 1, 2, 3 4 Page 7 of 29 Consultants as defined in Title 2 California Code of Regulations Section 18700 (a)(2) Page 8 of 29 APPENDIX B CONSULTANTS Commission Regulation 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 City 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 participates in making a governmental decision as defined in 18702.2 or 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 Section 87302. With respect to Consultants performing work for the City of Lake Elsinore, the City Manager may determine, in writing, which a particular Consultant is hired to perform a range of duties that are limited in scope, and thus the Consultant is not required to comply with the disclosure requirements. The determination shall be retained by the City Clerk as filing officer. Nothing herein excuses any Consultant from any other provision of this Code. 5 Page 9 of 29 APPENDIX C DESCRIPTION OF DISCLOSURE CATEGORIES Following are disclosure categories consisting of types of financial interests which have been determined may foreseeably be affected materially by decisions made, participated in, or influenced by certain employees designated in Appendix A. These financial interests must be reported by the designated employees in accordance with the provisions of this code. Category 1 (Real Property Within Jurisdiction): Designated employees must report all interests in real property which are located in whole or in part within the City of Lake Elsinore or not more than two miles outside the boundaries of the City. Category 2 (All Investments and Sources of Income): Designated employees must report all investments and sources of income where the business entity or source of income does business, plans to do business, or has done business within the past two years in the City. Category 3 (Management Positions): Designated employees must report all business positions where the employer does business, plans to do business or has done business within the past two years in the City. Category 4 (General Contracting): Designated employees must report all investments in business entities, sources of income and business positions where the business entity or source of income contracts, plans to contract or has contracted within the past two years with the City to provide services, supplies, materials, machinery or equipment. Category 5 (Special Contracting): Designated employees must report all investments in business entities, sources of income and business positions where the business entity of source of income contracts, plans to contract or has contracted within the past two years with the designated employee's department to provide services, supplies, materials, machinery or equipment. 0 Page 10 of 29 (Regulations of the Fair Political Practices Commission, Title 2, Division 6, California Code of Regulations.) § 18730. Provisions of Conflict 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 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. 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 Fair Political Practices Commission (2 Cal. Code of Regs. sections 18110, 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. Page 11 of 29 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 economic 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 economic 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.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 economic interests are reportable. Such a designated employee shall disclose in his or her statement of economic interests those economic interests he or she has which are ofthe kind described in the disclosure categories to which he or she is assigned in the Appendix. It has been Page 12 of 29 determined that the economic interests set forth in a designated employee's disclosure categories are the kinds ofeconom ic 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. 1. (C) Annual Statements. All designated employees shall file statements no later than April (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 Page 13 of 29 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. hiitial 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. Page 14 of 29 (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, or for a board or commission member subject to Government Code section 87302.6, the day after the closing date of the most recent statement filed by the member pursuant to 2 Cal. Code Regs. section 18754. (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) Investment 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; Page 15 of 29 4. A statement whether the fair market value of the investment or interest in real property equals or 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,6 the statement shall contain: entity; 1. The name, address, and a general description of the business activity of the business Page 16 of 29 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 (e) 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. Page 17 of 29 (8. 1) Section 8. 1. Prohibition on Receipt of Gifts in Excess of $420. (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 $420 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 Page 18 of 29 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 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 Vil of the Constitution shall, while lie 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 terns 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. Page 19 of 29 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. (83) Section 8.3. Loan Terns. (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. Page 20 of 29 (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: loan. a. The date the loan was made. b. The date the last payment of one hundred dollars ($100) or more was made on the 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. Page 21 of 29 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 Page 22 of 29 (E) Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating $420 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 terns 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. Page 23 of 29 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. (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 and 2 Cal. Code Regs. sections 18329 and 18329.5 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 - 91014. 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. IDesignated 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 Page 24 of 29 verified by the designated employee as if it were an original. See Government Code section 81004. 2See 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. 3For the purpose of disclosure only (not disqualification), an interest in real property does not include the principal residence of the filer. 4Lrvestments 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. 5A 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. 61ncome 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. Page 25 of 29 HISTORY 1. New section filed 4 -2 -80 as an emergency; effective upon filing (Register 80, No. 14). Certificate of Compliance included. 2. Editorial correction (Register 80, No. 29). 3. Amendment of subsection (b) filed 1 -9 -81; effective thirtieth day thereafter (Register 81, No.2). 4. Amendment of subsection (b)(7)(B) 1. filed 1- 26 -83; effective thirtieth day thereafter (Register 83, No. 5). 5. Amendment of subsection (b)(7)(A) filed 11- 10 -83; effective thirtieth day thereafter (Register 83, No. 46). 6. Amendment filed 4- 13 -87; operative 5 -13 -87 (Register 87, No. 16). 7. Amendment of subsection (b) filed 10- 21 -88; operative 11 -20 -88 (Register 88, No. 46). 8. Amendment of subsections (b)(8)(A) and (b)(8)(B) and numerous editorial changes filed 8- 28 -90; operative 9 -27 -90 (Reg. 90, No. 42). 9. Amendment of subsections (b)(3), (b)(8) and renumbering of following subsections and amendment of Note filed 8 -7 -92; operative 9 -7 -92 (Register 92, No. 32). 10. Amendment of subsection (b)(5.5) and new subsections (b)(5.5)(A)- (A)(2) filed 2 -4 -93; operative 2 -4 -93 (Register 93, No. 6). 11. Change without regulatory effect adopting Conflict of Interest Code for California Mental Health Planning Council filed 11 -22 -93 pursuant to title 1, section 100, California Code of Regulations (Register 93, No. 48). Approved by Fair Political Practices Commission 9- 21 -93. Page 26 of 29 12. Change without regulatory effect redesignating Conflict of Interest Code for California Mental Health Planning Council as chapter 62, section 55100 filed 1 -4 -94 pursuant to title 1, section 100, California Code of Regulations (Register 94, No. 1). 13. Editorial correction adding Historyl I and 12 and deleting duplicate section number (Register 94, No, 17). 14. Amendment of subsection (b)(8), designation of subsection (b)(8)(A), new subsection (b)(8)(B), and amendment of subsections (b)(8.1)-(b)(8. 1)(B), (b)(9)(E) and Note filed 3- 14 -95; operative 3 -14 -95 pursuant to Government Code section 11343.4(d) (Register 95, No. 11). 15. Editorial correction inserting inadvertently omitted language in footnote 4 (Register 96, No. 13). 16. Amendment of subsections (b)(8)(A) -(B) and (b)(8. 1)(A), repealer of subsection (b)(8. 1)(B), and amendment of subsection (b)(12) filed 10- 23 -96; operative 10 -23 -96 pursuant to Government Code section I I343.4(d) (Register 96, No. 43). 17. Amendment of subsections (b)(8.1) and (9)(E) filed 4 -9 -97; operative 4 -9 -97 pursuant to Government Code section I I343.4(d) (Register 97, No. 15). 18. Amendment of subsections (b)(7)(B)5., new subsections (b)(8.2)- (b)(8.4)(C) and amendment of Note filed 8- 24 -98; operative 8 -24 -98 pursuant to Government Code section I I343.4(d) (Register 98, No. 35). 19. Editorial correction of subsection (a) (Register 98, No. 47). 20. Amendment of subsections (b)(8.1), (b)(8. 1)(A) and (b)(9)(E) filed 5- 11 -99; operative 5 -11 -99 pursuant to Government Code section I I343.4(d) (Register 99, No. 20). Page 27 of 29 21. Amendment of subsections (b)(8.1)- (b)(8.1)(A) and (b)(9)(E) filed 12 -6 -2000; operative 1 -1 -2001 pursuant to the 1974 version of Government Codesection 11380.2 and Title 2, California Code of Regulations, section 18312(d) and (e) (Register 2000, No. 49). 22. Amendment of subsections (b)(3) and (b)(10) filed 1 -10 -2001; operative 2 -1 -2001. Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements) (Register 2001, No. 2). 23. Amendment of subsections (b)(7)(A)4., (b)(7)(B)1. -2, (b)(8.2)(E)3., (b)(9)(A) -(C) and footnote 4 filed 2 -13 -2001. Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office ofAdininistrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements) (Register 2001, No. 7). 24. Amendment of subsections (b)(8.1)- (b)(8.1)(A) filed 1 -16 -2003; operative 1 -1 -2003. Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements) (Register 2003, No. 3). 25. Editorial correction ofHistory24 (Register 2003, No. 12). 26. Editorial correction removing extraneous phrase in subsection (b)(9.5)(B) (Register 2004, No, 33). Page 28 of 29 27. Amendment of subsections (b)(2) -(3), (b)(3)(C), (b)(6)(C), (b)(8.1)- (b)(8.1)(A), (b)(9)(E) and (b)(11) -(12) filed 1 -4 -2005; operative 1 -1 -2005 pursuant to Government Code section 11343.4 (Register 2005, No. 1). 28. Amendment ofsubsection (b)(7)(A)4. filed 10 -11 -2005; operative 11 -10 -2005 (Register 2005, No. 41). 29. Amendment of subsections (a), (b)(1), (b)(3), (b)(8.1), (b)(8.I)(A) and (b)(9)(E) filed 12 -18 -2006; operative 1 -1 -2007. Submitted to OAL pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements) (Register 2006, No. 51). 30. Amendment of subsections (b)(8.1)- (b)(81)(A) and (b)(9)(E) filed 10 -31 -2008; operative 11 -30 -2008. Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office ofAdministrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2008, No. 44). Page 29 of 29