HomeMy WebLinkAbout12-02-2014 C3 Conflict of Interest Code Biennial ReviewCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number
FROM: Anthony Mejia, City Clerk
SUBJECT: BIENNIAL REVIEW AND AMENDMENTS TO THE CITY’S CONFLICT OF
INTEREST CODE
RECOMMENDATION
Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo,
California, amending the City’s Conflict of Interest Code.”
DISCUSSION
The Political Reform Act (PRA) of 1974 contains a general prohibition that “no public official or
employee at any level of state or local government shall make, participate in making or in any
way attempt to use his/her official position to influence a governmental decision in which s/he
knows or has reason to know s/he has a financial interest.”
The PRA requires that local agencies adopt a formal Conflict of Interest Code, review its Code
biennially, and make amendments, if needed. A Conflict of Interest Code requires certain
employees, who are most likely to be involved in government decision-making and where
potential conflicts may be present, to file an annual disclosure form. The purpose of this form is
to inform the employee and the public of potential conflicts of interest and situations where
disqualification is mandated. Proposed amendments to the Code are reflected in the attached
Resolution (Attachment 1).
Terms of the Code
The FPPC advises that agencies are required to incorporate the provisions of California Code of
Regulation §18730 by reference (Attachment 1, Exhibit A), along with appendices providing
disclosure categories and listing of designated positions, to constitute the formation and
promulgation of a conflict of interest code. Regulation §18730 outlines the references to statutes
and regulations that govern designated positions, disclosure categories, time of filing, contents
of, period covered, manner of reporting, how interests are to be reported, definition of terms,
disqualification as well as prohibition on receipt of honoraria, gifts, loans, and travel payments.
The incorporation of Regulation §18730 provides the legal basis for the code to be a document
that has force and effect.
Proposed Disclosure Categories
The Fair Political Practices Commission (FPPC), the agency assigned to administer and interpret
the PRA, has provided guidance, instructions and “model” disclosure categories to assist in the
review of the conflict of interest codes. New disclosure categories have been drafted with the
intent to narrowly tailor categories toward an employee’s duties and area of authority
(Attachment 1, Appendix 1).
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Biennial Review and Amendments to the City’s Conflict of Interest Code Page 2
The FPPC has provided advice related to the development of disclosure categories and the need
for “striking an appropriate balance between heading off potential conflicts of interest and an
individual’s right to privacy.” The Commission notes that the most common problem in local
codes is the requirement that employees disclose financial interests that are not related to the
employee’s duties and area of authority. Utilizing the FPPC’s “model” disclosure categories and
examples from other agencies, proposed disclosure categories 2-4 specify that employees need
only disclose financial interests related to their job assignments or areas of authority.
Proposed Designated Positions
A staff level review of the current list of designated positions has been completed and a summary
of positions to be added, removed, or have substitute titles are identified in Attachment 2. The
Commission notes that the responsibility for determining if a code meets the specifications of
Gov’t Code §89309 rest with the code reviewing body (i.e. City Council).
The FPPC advises that local codes should enumerate positions that “make or participate in the
making” of government decisions, acting within the authority of his or her position, votes on a
matter, obligates, or commits the agency to any course of action which may foreseeably have a
material financial effect on any financial interest. Additionally, it further defines that employees
“participate in governmental decisions” when - acting within the authority of his or her position
and without significant and substantive or intervening review - the official negotiates, advises, or
makes recommendations to the decision-maker regarding the governmental decision.
The FPPC advises that local codes that require disclosure of economic interests have been found
to be appropriate when they are narrowly tailored, noting that manual, clerical, or ministerial
positions should not be designated. Staff has reviewed the current list of designated positions and
modified assigned disclosure categories to match job assignments and areas of authority
(Attachment 1, Appendix 2). Staff has examined the City’s policies, procedures, manuals, and
other laws related to purchasing, contracting, licensing, and permitting and recommends removal
of certain positions because they are subject to substantive or intervening review related to
purchasing or are ministerial in nature, inasmuch as any actions taken are in obedience of law,
and discretionary decisions are reviewed by or made entirely by a higher authority position,
advisory body, or Council.
Regardless of whether a position is designated, all City employees are mandated to disqualify
him/herself from participation in a decision, when acting in the authority of the position, there
would be a financial interest.
Council Members and appointed officials are not designated employees under this conflicts of
interest code because they are statutorily required to file conflicts disclosures by Government
Code Section 87200 (known as “87200 filers”). The conflicts code is intended to supplement
those statutory requirements as to employees who are not 87200 filers.
On September 2, 2014, the City Council and Parking Authority entered into a Joint Exercise of
Powers Agreement to establish the San Luis Obispo Public Financing Authority. Pursuant to
Government Code 82011, the City Council is the code reviewing body for any City agency, other
than the City Council. Therefore, members of the Parking Authority and Public Financing
Authority are proposed to be added to the City’s Conflict of Interest Code.
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Consultants/New Positions/Temporary Employees
A new disclosure category for consultants is proposed which requires disclosure of financial
interests which relate to the purpose for which the consultant is hired. If there are no foreseeable
financial interests, the City Manager, or designee, may make a written determination as such. As
it relates to new or temporary positions, the City Manager, or designee, should make a written
determination whether the position should be required to file disclosure statements.
CONCURRENCES
The City Attorney's Office and Department Directors concur with the proposed amendments.
FISCAL IMPACT
No fiscal impact to adopt the Code. There is a substantial amount of staff time associated with
collecting, reviewing, logging, and retaining statements and responding to requests for inspection
and copying of statements.
ALTERNATIVES
The City Council may make additional or other changes to the City’s Conflict of Interest Code or
may choose not to amend the code.
ATTACHMENTS
1. Proposed Resolution, Exhibit A, and Appendices A and B
2. Summary of Additions, Deletions and Title Substitutions
3. FPPC Memorandum–Incorporation Page, Disclosure Categories, and Designated Positions
4. Resolution No. 10392 (Current Conflict of Interest Code)
t:\council agenda reports\2014\2014-11-10 (rescheduled reg mtg)\conflict of interest code biennial review (mejia-dietrick)\car - conflict of interest code.docx
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RESOLUTION NO. (2014 Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING THE CITY’S CONFLICT OF
INTEREST CODE
WHEREAS, the Political Reform Act (Government Code Section 81000 et seq.) requires
local government agencies to promulgate and adopt conflict of interest codes; and
WHEREAS, Resolution No. 10392 (2012 Series) adopted on September 4, 2012
amended the City’s Conflict of Interest Code by updating the List of Designated Positions and
Disclosure Categories (Exhibit A); and
WHEREAS, the Political Reform Act requires that the City Council review its Conflict
of Interest Code biennially to determine whether amendments are required; and
WHEREAS, a review of City’s Disclosure Categories and the List of Designated
Positions reveals that amendments are necessary to the Disclosure Categories as well as the List
of Designated Positions; and
WHEREAS, Council Members and appointed officials are not designated employees
under this conflicts of interest code because they are statutorily required to file conflicts
disclosures by Government Code Section 87200 (known as “87200 filers”) and this conflicts
code is intended to supplement those statutory requirements as to employees who are not 87200
filers.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo does hereby resolve as follows:
SECTION 1. Resolution No. 10392 (2012 Series) is hereby rescinded.
SECTION 2. Pursuant to the Political Reform Act of 1974, Government Code Section
87300 et seq., and Section 18730 of Title 2 of the California Code of Regulations, the City
Council adopts the model conflict of interest code promulgated by the Fair Political Practices
Commission of the State of California as set forth in Section 18730 of Title 2 of the California
Code of Regulations, which model conflict of interest code is incorporated herein by reference,
and which, together with the City’s Disclosure Categories and List of Designated Positions
collectively constitutes the City of San Luis Obispo’s Conflict of Interest Code, as set forth in
Exhibit A and Appendices 1 and 2 of this Resolution. As the model conflict of interest code set
forth in Section 18730 of Title 2 of the California Code of Regulations is amended from time to
time by State law, regulatory action of the Fair Political Practices Commission, or judicial
determination, the portion of the City’s Conflict of Interest Code comprising the model conflict
of interest code shall be deemed automatically amended without further action to incorporate by
reference all such amendments to the model conflict of interest code.
Attachment 1
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Resolution No. ____ (2014 Series) Page 2
On motion of _____, seconded by ____, and on the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
The foregoing resolution was adopted this __ day of ________ 2014.
Mayor Jan Marx
ATTEST:
Anthony J. Mejia, MMC
City Clerk
APPROVED AS TO FORM:
J. Christine Dietrick
City Attorney
Attachment 1
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CONFLICT OF INTEREST CODE
CITY OF SAN LUIS OBISPO, CALIFORNIA
CONFLICT OF INTEREST CODE ............................................................................................... 2
Section 1. Authority ........................................................................................................................ 2
Section 2. Purpose ........................................................................................................................... 2
Section 3. Code Reviewing Body ................................................................................................... 2
Section 4. Filing Officer ................................................................................................................. 2
Section 5. Code Administrator ........................................................................................................ 2
Section 6. Section 18730 of the California Code of Regulations ................................................... 2
Section 7. Disclosure CateGories ................................................................................................... 3
Section 8. Designated Positions ...................................................................................................... 3
EXHIBIT A Incorporation of California Code of Regulations by Reference ................................ 4
Section 1. Definitions...................................................................................................................... 4
Section 2. Designated Employees. .................................................................................................. 4
Section 3. Disclosure Categories. ................................................................................................... 4
Section 4. Statements of Economic Interests: Place of Filing. ....................................................... 5
Section 5. Statements of Economic Interests: Time of Filing. ....................................................... 5
Section 5.5. Statements for Persons Who Resign Prior to Assuming Office. ................................ 5
Section 6. Contents of and Period Covered by Statements of Economic Interests. ........................ 6
Section 7. Manner of Reporting. ..................................................................................................... 6
Section 8. Prohibition on Receipt of Honoraria. ............................................................................. 8
Section 8.1 Prohibition on Receipt of Gifts in Excess of $440. ..................................................... 8
Section 8.2. Loans to Public Officials. ........................................................................................... 8
Section 8.3. Loan Terms. .............................................................................................................. 10
Section 8.4. Personal Loans. ......................................................................................................... 11
Section 9. Disqualification. ........................................................................................................... 11
Section 9.3. Legally Required Participation. ................................................................................ 12
Section 9.5. Disqualification of State Officers and Employees. ................................................... 12
Section 10. Disclosure of Disqualifying Interest. ......................................................................... 12
Section 11. Assistance of the Commission and Counsel. ............................................................. 12
Section 12. Violations. .................................................................................................................. 13
APPENDIX 1 Disclosure Categories............................................................................................ 14
APPENDIX 2 List of Designated Positions.................................................................................. 15
Attachment 1
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San Luis Obispo Conflict of Interest Code Page 2
CONFLICT OF INTEREST CODE
CITY OF SAN LUIS OBISPO, CALIFORNIA
SECTION 1. AUTHORITY
Government Code Section 87300 requires the City of San Luis Obispo to adopt a Conflict
of Interest Code.
SECTION 2. PURPOSE
The purpose of the City of San Luis Obispo Conflict of Interest Code is to incorporate by
reference the terms of Section 18730 of the California Code of Regulations pertaining to Conflict
of Interest Codes.
SECTION 3. CODE REVIEWING BODY
The City Council of the City of San Luis Obispo shall be the Code Reviewing Body for
the City of San Luis Obispo Conflict of Interest Code.
SECTION 4. FILING OFFICER
The City Clerk of the City of San Luis Obispo shall be the Filing Officer for the City of
San Luis Obispo Conflict of Interest Code. All persons occupying designated positions shall file
Statements of Economic Interests with the City Clerk.
The City Clerk shall make statements available for public inspection and reproduction,
shall retain all statements pursuant to State Law, and shall perform all other duties and
responsibilities of the Filing Officer pursuant to State Law.
SECTION 5. CODE ADMINISTRATOR
The City Manager, or his/her designee, shall be the Code Administrator for the City of
San Luis Obispo Conflict of Interest Code.
The Code Administrator may promulgate further rules and regulations, which are not
inconsistent with the Code, the Political Reform Act, or any regulation of the Fair Political
Practices Commission; to administer the Conflict of Interest Code, including non-substantive
alterations to the Code.
Non-substantive alterations shall be limited to the following:
(A) The reclassification or renaming of previously designated positions.
(B) The deletion of a position for which the classification has been abolished.
(C) Definitional or operational provisions in conformity to a statutory amendment, a
regulation of the Fair Political Practices Commission, or a decision of a Court of
competent jurisdiction.
SECTION 6. SECTION 18730 OF THE CALIFORNIA CODE OF REGULATIONS
Section 18730 of Title 2, Division 6, of the California Code of Regulations, as set forth in
Exhibit A, and any amendment to it duly adopted by the Fair Political Practices Commission,
along with any Appendices, are hereby incorporated by reference and constitutes the Conflict of
Interest Code of the City of San Luis Obispo.
Attachment 1
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San Luis Obispo Conflict of Interest Code Page 3
SECTION 7. DISCLOSURE CATEGORIES
Such persons holding designated positions shall report economic interests as set forth in
Appendix 1.
SECTION 8. DESIGNATED POSITIONS
The positions listed in Appendix 2 are Designated Positions. Officers and employees
holding those positions are Designated Positions and are deemed to make, or participate in the
making of, decisions, which may foreseeably have a material effect on a financial interest.
Consultants may be Designated Positions, as determined by the Code Administrator.
The Members of the City Council, Mayor, City Manager, City Attorney, City Treasurer,
Members of the Planning Commission, other public officials who manage public investments,
and candidates for any offices at election, are required to file Statements of Economic Interest
pursuant to Government Code Section 87200 et seq.
Attachment 1
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San Luis Obispo Conflict of Interest Code Page 4
CONFLICT OF INTEREST CODE
CITY OF SAN LUIS OBISPO, CALIFORNIA
EXHIBIT A
INCORPORATION OF CALIFORNIA
CODE OF REGULATIONS BY REFERENCE
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.
The terms of a conflict of interest code amended or adopted and promulgated pursuant to
this regulation are as follows:
SECTION 1. DEFINITIONS.
The definitions contained in the Political Reform Act of 1974, regulations of the Fair
Political Practices Commission (2 Cal. Code of Regs. Sections 18100, et seq.), and any
amendments to the Act or regulations, are incorporated by reference into this conflict of interest
code.
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 economic interests.
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
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San Luis Obispo Conflict of Interest Code Page 5
(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 of the kind described in the
disclosure categories to which he or she is assigned in the Appendix. It has been
determined that the economic interests set forth in a designated employee’s
disclosure categories are the kinds of economic interests which he or she
foreseeably can affect materially through the conduct of his or her office.
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
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.
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
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San Luis Obispo Conflict of Interest Code Page 6
(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.
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, 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.
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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San Luis Obispo Conflict of Interest Code Page 7
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:
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.
Attachment 1
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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.
SECTION 8.1 PROHIBITION ON RECEIPT OF GIFTS IN EXCESS OF $440.
(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
$440 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.
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
Attachment 1
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available to members of the public without regard to the elected officer’s official
status.
Attachment 1
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San Luis Obispo Conflict of Interest Code Page 10
(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, 1998.
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.
Attachment 1
C3 - 15
San Luis Obispo Conflict of Interest Code Page 11
SECTION 8.4. PERSONAL LOANS.
(A) Except as set forth in subdivision (B), a personal loan received by any designated
employee shall become a gift to the designated employee for the purposes of this
section in the following circumstances:
1. If the loan has a defined date or dates for repayment, when the statute of
limitations for filing an action for default has expired.
2. If the loan has no defined date or dates for repayment, when one year has
elapsed from the later of the following:
a. The date the loan was made.
b. The date the last payment of one hundred dollars ($100) or more
was made on the loan.
c. The date upon which the debtor has made payments on the loan
aggregating to less than two hundred fifty dollars ($250) during the
previous 12 months.
(B) This section shall not apply to the following types of loans:
1. A loan made to the campaign committee of an elected officer or a
candidate for elective office.
2. A loan that would otherwise not be a gift as defined in this title.
3. A loan that would otherwise be a gift as set forth under subdivision (A),
but on which the creditor has taken reasonable action to collect the balance
due.
4. A loan that would otherwise be a gift as set forth under subdivision (A),
but on which the creditor, based on reasonable business considerations,
has not undertaken collection action. Except in a criminal action, a
creditor who claims that a loan is not a gift on the basis of this paragraph
has the burden of proving that the decision for not taking collection action
was based on reasonable business considerations.
5. A loan made to a debtor who has filed for bankruptcy and the loan is
ultimately discharged in bankruptcy.
(C) Nothing in this section shall exempt any person from any other provisions of Title
9 of the Government Code.
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;
Attachment 1
C3 - 16
San Luis Obispo Conflict of Interest Code Page 12
(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 $440 or more provided to, received by, or promised to the designated
employee within 12 months prior to the time when the decision is made.
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.
SECTION 9.5. DISQUALIFICATION OF STATE OFFICERS AND EMPLOYEES.
In addition to the general disqualification provisions of Section 9, no state administrative
official shall make, participate in making, or use his or her official position to influence any
governmental decision directly relating to any contract where the state administrative official
knows or has reason to know that any party to the contract is a person with whom the state
administrative official, or any member of his or her immediate family has, within 12 months
prior to the time when the official action is to be taken:
(A) Engaged in a business transaction or transactions on terms not available to
members of the public, regarding any investment or interest in real property; or
(B) Engaged in a business transaction or transactions on terms not available to
members of the public regarding the rendering of goods or services totaling in
value one thousand dollars ($1,000) or more.
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 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.
Attachment 1
C3 - 17
San Luis Obispo Conflict of Interest Code Page 13
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.
NOTE: Authority cited: Section 83113, 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
statement 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 Ca. 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 purposes 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 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.
Attachment 1
C3 - 18
San Luis Obispo Conflict of Interest Code Page 14
CONFLICT OF INTEREST CODE
CITY OF SAN LUIS OBISPO, CALIFORNIA
APPENDIX 1
DISCLOSURE CATEGORIES
CATEGORY 1 (Broad Disclosure)
All investments, business positions, and sources of income, including gifts, loans, and travel
payments from sources doing business in the jurisdiction of the City.
All interests in real property within the jurisdiction, including property located within a two-mile
radius of any property owned or used by the City.
CATEGORY 2 (Disclosure Related to Contracting/Purchasing)
All investments, business positions, and income, including gifts, loans, and travel payments,
from sources that provide leased facilities, goods, equipment, vehicles, machinery or services,
including training or consulting services, of the type associated with the employee’s job
assignment.
CATEGORY 3 (Disclosure Related to Licensing/Permitting)
All investments, business positions, and income, including gifts, loans, and travel payments,
from sources that are subject to the regulatory, permit, or licensing authority of, or have an
application for a license or permit pending before the City, and is subject the employee’s area of
authority.
CATEGORY 4 (Disclosure Related to Grants/Service Providers)
All investments, business positions, and income, including gifts, loans, and travel payments, or
income from a nonprofit organization, if the source is of the type to receive grants and other
monies from or through the City, and subject to the employee’s area of authority.
CATEGORY 5 (Consultant Disclosure)
Must report investments, business positions, and income from business entities located in,
planning to do business in, or doing business with the City of San Luis Obispo subject to the
following: No financial interest need be reported unless it is in of from a source which provides
services, supplies, material, machinery, or equipment of the type utilized by or which is subject
to the regulatory permit or licensing authority of the department by which the consultant is
employed.
If a department director determines that a particular consultant need not file a disclosure
statement a written statement including a description of the consultant’s duties and the reason for
exemption shall be filed with and retained in the same manner as the contract.
NEWLY CREATED/TEMPORARY POSITIONS
With respect to newly created and temporary positions, the department director shall determine if a
newly created position will make or participate in making governmental decisions on behalf of the
City and assign a disclosure category conforming to the position’s range of duties. Determinations
shall be made in writing and a copy of that determination shall be filed with the Human Resources
Department.
Attachment 1
C3 - 19
San Luis Obispo Conflict of Interest Code Page 15
CONFLICT OF INTEREST CODE
CITY OF SAN LUIS OBISPO, CALIFORNIA
APPENDIX 2
LIST OF DESIGNATED POSITIONS
DESIGNATED POSITIONS DISCLOSURE CATEGORY
Committees/Commissions/Authorities:
Members of the Architectural Review Commission 3
Members of the Cultural Heritage Committee 3
Members of the Housing Authority 1
Members of the Human Relations Committee 4
Members of the Investment Oversight Committee 1
Members of the Parking Authority 1
Members of the Promotional Coordinating Committee 2, 4
Members of the Public Financing Authority 1
Administration Department
Assistant City Manager 1
City Clerk 2
Economic Development Manager 2
Natural Resources Manager 2
Tourism Manager 2, 4
City Attorney’s Office
Assistant City Attorney 1
Community Development Department
Building and Safety Supervisor 2, 3
Chief Building Official 2, 3
Deputy Director of Community Development 1
Director of Community Development 1
Housing Program Manager 2, 3
Senior Planner 2, 3
Special Projects Manager 2, 3
Finance & Information Technology Department
Budget Manager 2
Director of Finance and Information Technology 1
Finance Operations Manager 2
Information Technology Manager 2
Fire Department
Deputy Fire Chief 2, 3
Fire Chief 1
Fire Marshal 2, 3
Attachment 1
C3 - 20
San Luis Obispo Conflict of Interest Code Page 16
DESIGNATED POSITIONS DISCLOSURE CATEGORY
Human Resources Department
Director of Human Resources 2, 4
Human Resources Manager 2, 4
Parks & Recreation Department
Director of Parks and Recreation 1
Recreation Manager 2
Recreation Supervisor (Aquatics & Facilities) 2
Police Department
Chief of Police 1
Communication and Records Manager 2
Neighborhood Outreach Manager 2
Police Captain 2, 3
Public Works Department
City Traffic Engineer 2, 3
Construction Engineering Manager 2
Deputy Director of Public Works 2, 3
Director of Public Works 1
Fleet Maintenance Supervisor 2
Parking Manager 2, 3
Senior Civil Engineer 2, 3
Supervising Civil Engineer 2, 3
Transit Manager 2, 3
Transportation Operations Manager 2, 3
Urban Forest Supervisor/City Arborist 2, 3
Utilities Department
Deputy Director of Utilities 2, 3
Director of Utilities 1
Environmental Programs Manager 2, 3
Laboratory Manager 2
Utilities Business Manager 2
Utilities Projects Manager 2
Utilities Services Manager 2
Wastewater Collection System Supervisor 2
Wastewater Treatment Plant Supervisor 2
Water Distribution System Supervisor 2
Water Resources Recovery Facility Supervisor 2
Water Treatment Plant Supervisor 2
Whale Rock Reservoir Supervisor 2
Other Positions:
Housing Authority Executive Director 1
Consultants 5
Attachment 1
C3 - 21
Position Title Substitutions
Position Recommended for Addition to the Conflict of Interest Code
Authorities
Member of the Parking Authority
Member of the Public Financing Authority
Administration Department
Tourism Manager
Community Development Department
Special Projects Manager
Position Recommended for Removal from the Conflict of Interest Code
Administration Department
Principal Administrative Analyst
Community Development Department
Assistant Planner
Associate Planner
Building Inspector
Code Enforcement Officer
Plan Examiner
Permit Coordinator
Permit Technician
Supervising Administrative Assistant
Finance and Information Technology Department
Accountant
Administrative Analyst
Database Administrator
GIS Supervisor
Telecommunications Supervisor
Network Services Supervisor
Network Administrator
Senior Accountant
Fire Department
Administrative Analyst
Fire Battalion Chief
Fire Inspector
Hazardous Materials Coordinator
Human Resources Department
Human Resources Analyst
Parks and Recreation Department
Administrative Analyst
Golf Course Supervisor
Police Department
Administrative Analyst
Police Lieutenant
Public Works Department:
Administrative Analyst
Engineer
Engineering Inspector
Engineering Technician
Facilities Maintenance Supervisor
Parking Coordinator
Parks Maintenance Supervisor
Permit Coordinator
Permit Technician
Streets Maintenance Supervisor
Supervising Administrative Assistant
Utilities Department
Administrative Analyst
Former Position Title Current Position Title
Assistant Chief Building Official Building and Safety Supervisor
Neighborhood Services Manager Neighborhood Outreach Manager
Senior Construction Inspector Construction Engineering Manager
Utilities Conservation Manager Utilities Services Manager
ATTACHMENT 2
C3 - 22
www.fppc.ca.gov
1.866.275.3772 or 916.322.5660
FPPC TAD • 040-06.2012 • Page 1 of 1
California Fair Political Practices Commission
Conflict-of-Interest Codes – Incorporation Page
Introduction
The Political Reform Act (“Act”) requires each agency to adopt a conflict-of-interest
code. The code is required to contain certain information, such as the list of designated
positions and the disclosure categories for each position. In addition, the code is the legal
document that sets out the filing deadlines, disqualification rules, and the manner of reporting.
Each agency will have unique positions and related disclosure categories. However, the
governing principals related to disclosure of economic interests are the same for all agencies.
Discussion
The initial paragraphs on the Incorporation page provide the governing statutes, 81000
et seq. for agency adoption of conflict-of-interest codes and incorporates the provisions of 2
California Code of Regulation 18730. Incorporation of Regulation 18730 along with an
appendix providing disclosure categories and listing designated positions constitutes the
formation and promulgation of a conflict-of-interest code as required by the Act. Regulation
18730 outlines the references to statutes and regulations that govern designated positions,
disclosure categories, time of filing, contents of and period covered, manner of reporting, how
interests are to be reported, definition of terms, disqualification as well as prohibition on receipt
of honoraria, gifts, loans and travel payments. The provisions outlined in Regulation 18730 are
subject to change by legislation or regulation. For example, every two years the gift limit is
changed and thus, the Commission revises Regulation 18730. This means that each agency's
conflict-of-interest code does not need to be amended to indicate the revised gift limit or other
changes made within that regulation.
Generally, the last paragraph of the incorporation page provides for the place of filing of
the Statements of Economic Interests. It also makes it clear that the public can review and
obtain copies of statements. The FPPC will not approve a code without a clear statement of
where statements are filed and a notice that such statements are public records subject to
Government Code Section 81008.
The incorporation of Regulation 18730 provides the legal basis for the code to be a
document that has force and effect.
Summary
The incorporation page authenticates the conflict-of-interest code as an actual legal
document and provides the terms and standards required to be followed by the agency and
filers. It also provides the location of where statements can be obtained.
Attachment 3
C3 - 23
www.fppc.ca.gov
1.866.275.3772 or 916.322.5660
FPPC TAD • 039-06.2012 • Page 1 of 2
California Fair Political Practices Commission
Conflict-of-Interest Codes – Disclosure Categories
Financial Disclosure Must Relate to Governmental Duties
Introduction
The FPPC is frequently asked why an agency cannot require its employees to disclose
on a Form 700, Statement of Economic Interests, all of the employee's investments, real
property, income, and gifts. The following discussion outlines the legal cases and statutory
requirements that require, whenever possible, the agency to tailor disclosure categories to the
governmental decision making performed by the agency official.
Discussion
One of the most common problems in agency conflict-of-interest codes is the
requirement that employees disclose financial interests that are not related to the employee's
governmental position. Case law going back to before the Political Reform Act (“Act”) was
adopted makes it clear that financial disclosure laws must meet certain constitutional
standards, and over breath must be avoided. (See City of Carmel-by-the Sea v. Young (1970),
2 Cal.3d 259; County of Nevada v. MacMillen (1974), 11 Cal. 3d 662.)
In the Carmel case, the California Supreme Court considered a financial disclosure law
that generally required every public official and candidate for state or local office file a
statement disclosing the nature and extent of his or her investments in excess of $10,000
(excluding homes used for personal or recreational purposes) as well as those of his or her
spouse and minor children. The court held that the attempted regulation undertook an
overbroad intrusion into the right of privacy and thereby invalidly restricted the right to seek or
hold public office or employment.
Four years later, in County of Nevada (supra) the same court addressed a new financial
disclosure law and found that it had been “specially tailored to meet and satisfy the primary
concerns of our Carmel ruling.” The court explained that its “major objection” to the provisions
considered in the Carmel case was that “No effort is made to relate the disclosure to financial
dealings or assets which might be expected to give rise to a conflict of interest; that is, to those
having some rational connection with or bearing upon, or which might be affected by, the
functions or jurisdiction of any particular agency, whether statewide or local, or on the functions
or jurisdiction of any particular public officer or employee.” (County of Nevada, supra, p. 671.)
In 1976, the Commission was asked to consider two questions with respect to the Act‟s
conflict-of-interest disclosure provisions: (1) does the Act permit the designation of positions
that do not entail the making or participation in the making of governmental decisions; and (2)
does the Act permit a code reviewing body to approve a conflict-of-interest code that contains
provisions requiring disclosure of financial interests that may not foreseeably be affected
Attachment 3
C3 - 24
California Fair Political Practices Commission
Conflict-of-Interest Codes – Disclosure Categories
Financial Disclosure Must Relate to Governmental Duties
www.fppc.ca.gov
1.866.275.3772 or 916.322.5660
FPPC TAD • 039-06.2012 • Page 2 of 2
materially by decisions made or participated in by designated employees? (Alperin Opinion, 3
FPPC Ops, 77.)
The Commission concluded that not only does the Act not permit such activities but
Section 87309(c) specifically prohibits a code reviewing body from approving a conflict-of-
interest code that designates positions that do not entail the making or participation in the
making of governmental decisions or that requires disclosure of financial interests that may not
foreseeably be affected materially by the decisions made or participated in by employees
holding any designated position.
“The responsibility for determining if a code meets these specifications rests with the
„code reviewing body.‟” (Alperin, supra, p.2.) The Commission went on to consider what this
obligation entails, and, under Section 87309(c), what a conflict-of-interest code must contain
before it may be approved by a code reviewing body.
“This provision is intended to ensure, first, that a conflict-of-interest code requires
financial disclosure only from employees required to be designated by Section 87302(a) [the
position engages in governmental decisionmaking] and, second, that a code relate disclosure
to the specific duties of such designated employees. Thus, a code reviewing body would fail to
fulfill its obligation under Section 87309(c) if it allowed designation of positions in a code which,
to quote the language of Section 87309(c), do not entail the „making or participation in the
making‟ of governmental decisions. It would be equally improper for a code reviewing body to
require disclosure of interests which may not foreseeably be affected materially by decisions
made or participated in by designated employees.” (Alperin, supra, pp. 3-4.)
Summary
It is important to note that an express purpose of the Act is to ensure that the assets
and income of public officials be disclosed so that conflicts of interests may be avoided.
However, as discussed in the foregoing paragraphs, only those assets and income that can be
affected by the officials' actions are required to be reported on a public form. A form that, in
many cases, is posted on an agency's website.
Thus the challenge is to ensure the proper level of disclosure that strikes an appropriate
balance between heading off potential conflicts of interest and an individual‟s right to privacy.
This can only be done if the agency and code reviewing body take a careful look at the
agency's governmental programs and functions as well as the specific duties of those positions
being designated in the code. It is only for those positions, generally the highest level
positions in an agency because the duties of the position are so broad, that narrow tailoring is
simply not possible, that an agency may require full reporting of assets and income.
Attachment 3
C3 - 25
www.fppc.ca.gov
1.866.275.3772 or 916.322.5660
FPPC TAD • 038-06.2012 • Page 1 of 3
California Fair Political Practices Commission
Conflict-of-Interest Codes - Designating Positions
Introduction
The FPPC is frequently asked why an agency cannot require all of its employees
to file a Form 700, Statement of Economic Interests. The following discussion outlines
the statutory1 and regulatory requirements that provide the basis for determining which
positions should be designated.
Discussion
One of the most frequent questions to FPPC staff is how does an agency
determine which positions should be included in a conflict-of-interest code. The answer
is that each agency is unique, and the list of positions is dependent upon several
factors. For example, an analyst in one agency may not even be covered in a conflict-
of-interest code because that position has no purchasing authority, and its regulatory
related duties are substantially reviewed by more than one supervisor and director. In
another agency, the analyst may have full authority with little oversight. The following
discussion provides background on the statutes, regulations, and guidance provided
through advice letters.
The Political Reform Act (“Act”) requires that “every agency shall adopt and
promulgate a conflict-of-interest code.” (Section 87300.) Section 87302(a) provides that
a conflict-of-interest code shall contain “specific enumeration of the positions within the
agency which involve the making or participation in the making of decisions which may
foreseeably have a material financial effect on any financial interest.” The term “public
official” is defined, in part, in Section 82048 as “. . . every member, officer, employee or
consultant of a state or local government agency, but does not include judges and court
commissioners in the judicial branch of government.” With respect to each such
position, a code is required to list the specific types of investments, interests in real
property, and income that must be disclosed. The responsibility for determining if a
code meets these specifications rests with the “code reviewing body.” (Section 87303.)
Section 87309 states what a conflict-of-interest code must contain before it may
be approved by the code reviewing body. Paragraph (c) of that section provides that a
code may not be approved if it “fails to adequately differentiate between designated
employees with different powers and responsibilities.” This provision is intended to
ensure, first, that a conflict-of-interest code requires financial disclosure only from
employees required to be designated by Section 87302(a) and, second, that a code
1 All statutory references are to the Government Code unless otherwise noted.
Attachment 3
C3 - 26
California Fair Political Practices Commission
Conflict-of-Interest Codes - Designating Positions
www.fppc.ca.gov
1.866.275.3772 or 916.322.5660
FPPC TAD • 038-06.2012 • Page 2 of 3
relate disclosure to the specific duties of such designated employees. Thus, a code
reviewing body would fail to fulfill its obligation under Section 87309(c) if it allowed
designation of positions in a code which, to quote the language of Section 87302(a), do
not entail the “making or participation in the making” of governmental decisions. It
would be equally improper for a code reviewing body to require disclosure of interests
that may not foreseeably be affected materially by decisions made or participated in by
designated employees.
In City of Carmel-by-the-Sea v. Young, the Supreme Court held, in general, that
there must be a balancing of interests between the government’s need to expose o r
minimize possible conflicts of interest on the one hand, and the right to maintain privacy
in one’s personal financial affairs while seeking or holding public office on the other. (2
Cal.3d 259 (1970).) Required disclosure of economic interests under the Act has been
found to be appropriate where it is narrowly tailored to avoid unwarranted intrusion into
the privacy of the public officials involved. (See, Hays v. Wood, 25 Cal.3d 770 (1979).)
A public official “makes a governmental decision” when the official, acting within
the authority of his or her office or position, votes on a matter, obligates or commits his
or her agency to any course of action, or enters into any contractual agreement on
behalf of his or her agency. (Regulation 18702.1.) Therefore, such positions should be
designated in the agency’s conflict-of-interest code.
A public official “participates in a governmental decision” when, acting within the
authority of his or her position and without significant substantive or intervening review,
the official negotiates, advises, or makes recommendations to the decisionmaker
regarding the governmental decision. (Regulation 18702.2.) If a superior relies on an
individual’s professional judgment, then the individual is participating in making a
governmental decision. In other words, if the individual influences the final decision by
supporting a position or suggesting a course of action, he/she is participating in the
decision even if he/she is not making the final decision. Therefore, the individual’s
position must be designated in the conflict-of-interest code.
There are several techniques to assist in making the determination of which
positions need to be designated in the code. These include reviewing organizational
charts – generally, the positions closest to the top must be designated in the code. The
larger the agency, the more likely it is that lower level positions have narrower duties
and additional, substantive review, and therefore, do not need to be designated.
Meeting minutes and annual reports also provide information on the position
responsibilities and provide insight as to which positions warrant supplementary review.
Additionally, agency websites (such as the contact us page) may provide clues as to
whether all positions on an organizational chart are up to date. And lastly, current job
duty statements should be requested.
Attachment 3
C3 - 27
California Fair Political Practices Commission
Conflict-of-Interest Codes - Designating Positions
www.fppc.ca.gov
1.866.275.3772 or 916.322.5660
FPPC TAD • 038-06.2012 • Page 3 of 3
Summary
High level positions that have authority to vote on a matter, appoint a person,
obligate or commit his or her agency to a course of action, or enter into any contractual
agreement on behalf of his or her agency, mid-level positions that have authority to
negotiate decisions on behalf of the agency without significant substantive review, and
positions that advise or make recommendations to the decision-maker by conducting
research or an investigation, preparing or presenting a report, analysis or opinion that
requires the exercise of judgment on the part of the employee and the employee is
attempting to influence the decision, should all be designated in the conflict-of-interest
code. Positions that are strictly manual, clerical, or ministerial in nature should not be
designated in the conflict-of-interest code. It is important to note that an express
purpose of the Act is to ensure that the assets and income of public officials be
disclosed so that conflicts of interests may be avoided. However, as discussed in the
foregoing paragraphs, only those positions that make or participate in making
governmental decisions are required to report assets and income on a public form.
Thus, the agency and code reviewing body must take a careful look at the agency's
governmental programs and functions as well as the specific duties of those positions
being designated in the code.
Attachment 3
C3 - 28
RESOLUTION NO . 10392 (2012 Series )
A RESOLUTION OF THE CITY OF SAN LUIS OBISPO AMENDIN G
THE CITY'S CONFLICT OF INTEREST COD E
WHEREAS,the City Council adopted Resolution No. 5044 (1983 Series) amending th e
City's Conflict of Interest Code by incorporating by reference the Fair Political Practice s
Commission's standard model Conflict of Interest Code (Title 2, Division 6 of the Californi a
Code of Regulations) and updating the list of designated positions required to file a Statement o f
Economic Interests ; and
WHEREAS,the Political Reform Act requires that the City Council review its Conflic t
of Interest Code biennially to determine whether amendments are required ; and
WHEREAS,Resolution No . 10218 (2010 Series) adopted on September 21, 201 0
amended the City's Conflict of Interest Code by updating the Appendix (List of Designate d
Positions and Disclosure Categories — Exhibit A); and
WHEREAS,a review of the Appendix indicates that amendments are necessary t o
reflect changes in job titles, positions and classifications ; and further reveals the need to ad d
disclosure categories specifying those financial interests that designated positions must disclose .
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Lui s
Obispo as follows :
SECTION 1 .Resolution No. 10218 (2010 Series) is hereby rescinded .
SECTION 2 .The Fair Political Practices Commission's standard model Conflict o f
Interest Code (Title 2, Division 6 of the California Code of Regulations), as reorganized alon g
with the List of Designated Positions and Disclosure Categories in Exhibit A are adopted as th e
City of San Luis Obispo's Conflict of Interest Code .
Upon motion of Council Member Smith, seconded by Council Member Carter and on th e
following roll call vote :
AYES :
Council Members Ashbaugh, Carter and Smith, Vice Mayor Carpente r
and Mayor Marx
NOES : None
ABSENT : None
ABSTAIN : None
R 10392
Attachment 4
C3 - 29
Resolution No. 10392 (2012 Series )
Page 2
The foregoing resolution was adopted this 4 th day of September 2012 .
ATTEST :
City Clerk
APPROVED AS TO ~:1•M :
istine Dietric k
City Attorney
Attachment 4
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EXHIBIT A
LIST OF DESIGNATED POSITION S
AND DISCLOSURE CATEGORIES 1
POSITION
DISCLOSURE CATEGOR Y
Administrative Office :
Assistant City Manager
1
Economic Development Manager
3
Natural Resources Manager
3
Principal Administrative Analyst
1
City Attorney :
Assistant City Attorney
1
City Clerk :
City Clerk
Community Development :
Assistant Chief Building Official
3
Assistant Planner(s)
3
Associate Planner(s)
3
Building Inspector(s)
3
Building Permit Coordinator
3
Chief Building Official
3
Code Enforcement Officer I/II
3
Community Development Director
3
Contract Planner(s)
1
Deputy Community Development Director, Development Review
3
Deputy Community Development Director, Long Range Planning
3
Housing Programs Manager
3
Plan Examiner
2
Planning Technician
3
Senior Planner(s)
3
Supervising Administrative Assistant
2
Finance & Information Technology Department :
Accounting Supervisor
2
Revenue Supervisor
2
Finance Manager
2
Information Technology Manager
2
Telecommunications Supervisor
2
Network Services Supervisor
2
Administrative Analyst
2
Attachment 4
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EXHIBIT A
Fire Department :
Administrative Analyst
2
Fire Marshal
3
Deputy Fire Chief
3
Battalion Chief(s)
3
Fire Chief
1
Fire Inspector
3
Hazardous Materials Coordinator
3
Human Resources Department :
Human Resources Analyst
2
Human Resources Director
1
Human Resources Manager
2
Parks & Recreation Department :
Administrative Analyst
2
Director of Parks and Recreation
1
Golf Course Supervisor
2
Recreation Manager
2
Recreation Supervisor — Sports
2
Recreation Supervisor - Aquatics
2
Recreation Supervisor - Youth Services
2
Recreation Supervisor - Facilities
2
Recreation Supervisor — Ranger Service
2
Recreation Supervisor — Community Services & Events
2
Police Department:
Administrative Analyst
2
Chief of Police
1
Communications and Records Manager
2
Neighborhood Services Manager
2
Police Captain(s)
2
Police Lieutenant(s)
2
Public Works Department :
Administrative Analyst
2
Engineering Technician(s) 1
3
3
Facilities Maintenance Supervisor
2
City Traffic Engineer
2
Deputy Public Works Director
3
Director of Public Works
1
Engineer 1 - 3
3
Engineering Inspector 1-4
3
Fleet Maintenance Supervisor
2
Attachment 4
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EXHIBIT A
Parking Manager
2
Parks Maintenance Supervisor
2
Permit Technician
3
Principal Transportation Planner
3
Public Works Maintenance Supervisor
2
Senior Civil Engineer
2
Senior Construction Inspector
2
Street Maintenance Supervisor
2
Supervising Administrative Assistant(s)
2
Supervising Civil Engineer
3
Transit Manager
2
Utilities Department :
Administrative Analyst
2
Deputy Director of Utilities — Wastewater
2
Deputy Director of Utilities — Water
2
Environmental Programs ager
1
Environmental Compliance Inspector
1
Utilities Business Manager
2
Utilities Director
1
Utilities Conservation Manager
3
Utilities Projects Manager
3
Wastewater Collection Supervisor
2
Wastewater Treatment Plant Supervisor
2
Water Distribution Supervisor
2
Laboratory Manager
2
Water Supply Supervisor (Whale Rock)
2
Water Treatment Supervisor
2
Committees/Commissions :
Members of the Architectural Review Commission
3
Members of the Cultural Heritage Committee
3
Members of the Housing Authority
3
Members of the Promotional Coordinating Committee
2
Other Positions :
Consultants 2
1
Housing Authority Executive Director
1
Temporary Positions3
1
Attachment 4
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EXHIBIT A
DISCLOSURE CATEGORIE S
Category Reportable Interests
1 Investments, business positions, income from sources located in or doing business i n
the jurisdiction, and interests in real property located in the jurisdiction or i n
property located within a two-mile radius of any property owned or used by the City .
2 Investments, business positions, and sources of income of the type which provid e
services, supplies, materials, machinery or equipment of the type utilized by the
City .
3 Investments, business positions, and sources of income of the type that engage i n
land development, construction or the acquisition or sale of property and interests i n
real property located within the jurisdiction or property located within a two-mile
radius of any property owned or used by the City.
'The Mayor and Council Members, Planning Commissioners, City Manager, City Attorney and Finance &
Information Technology Director/City Treasurer are required to file Statements of Economic Interest s
pursuant to Government Code Section 87200, and are therefore, not included in the List of Designate d
Positions required to file pursuant to the City's Conflict of Interest Code .
2 Consultants should 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 City Manager may determine (upon written application by the consultant) that a particular consultant ,
although a "designated position," is hired to perform a range of duties that is limited in scope and thus is no t
required to fully comply with the disclosure requirements described in this section . Such written determinatio n
shall include a description of the consultant's duties and, based upon that description, a statement of the exten t
of disclosure requirements. The City Manager's determination is a public record and shall be retained fo r
public inspection in the same manner and location as this Conflict of Interest Code .
If a consultant believes he or she is exempt from disclosure requirements of law, prior to the application to th e
City Manager, the consultant shall obtain opinion to that effect from an admitted attorney to practice in th e
State of California, which opinion shall contain the information specified in the paragraph above .
3 Temporary positions may be required to file a Statement of Economic Interests upon determination by the Cit y
Attorney that the temporary position is the functional equivalent of a designated position .
Attachment 4
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