HomeMy WebLinkAbout09-18-2018 Item 5 Biennial Review to City's Conflict of Interest Code Meeting Date: 9/18/2018
FROM: Greg Hermann, Interim Deputy City Manager and Christine Dietrick, City
Attorney
Prepared By: Teresa Purrington, 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. The Conflict of Interest Code was last review by
the City Council in December 2016. 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 situ ations where disqualification is
mandated. The only change to the Conflict of Interest Code since the last review in 2016 was the
increase in the total value of gifts from any single source from $460 to $470. Proposed
amendments to the Code are reflected in the attached Resolution (Attachment A)
Terms of the Code
The FPPC advises that agencies are required to incorporate the provisions of California Code of
Regulation §18730 by reference, 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.
The Commission notes that the responsibility for determining if a code meets the specifications
of Gov’t Code §89309 rests with the code reviewing body (i.e. City Council).
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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. Disclosur e categories have been drafted with the intent to
narrowly tailor categories toward an employee’s duties and area of authority (Attachment B).
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 relat ed 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.
There have been no changes to the Disclosure Categories since the last review which was done in
December 2016.
Proposed Designated Positions
The FPPC advises that local codes should enumerate positions that “make or part icipate 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 m inisterial
positions should not be designated. 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 C. The List of Designated Positions has been revised and positions
have been assigned disclosure categories to match job assignments and areas of authority
(Attachment D). 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, if there would be a financial interest.
Council Members and appointed officials (including the City Manager, City Attorney and
members of the Planning Commission) are not des ignated employees under this conflict of
interest code because they are statutorily required to file conflicts disclosures by Government
Code Section 87200 (known as “87200 filers”). The conflicts of interest code supplements those
statutory requirements as to employees and members of City advisory bodies who are not 87200
filers. It is important to note that the list of filers includes members of the San Luis Obispo
Parking Authority and the San Luis Obispo Public Financing Authority. Because the City
Co uncil also serves as both authorities, members of the Council are reminded to include these
positions on their Assuming, Annual and Leaving Statements of Economic Interest.
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New 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, if so assign a disclosure category conforming to the position’s range of duties.
Determinations shall be made in writing and provided to the City Clerk and the Human Resources
Department. Such written determination shall include a description of the newly created
position's duties and, based upon that description, a statement of the extent of disclosure
requirements appropriate given the range of duties. All such determinations are public records
and shall be retained for public inspection in the same manner and location as this conflict -of-
interest code. (Gov. Code§ 81008.)
The City Clerk's office shall promptly enter the actual position title of the newly created position
into its electronic Form 700 record management system and ensure that the name of any
individual(s) holding the newly created position is entered under that position title in the record
management system. Additionally, within 90 days of the creation of a newly created position
that must file statements of economic interests, the City shall update this conflict -of-interest code
to add the actual position title in its list of designated positions. (Gov. Code§ 87306.)
CONCURRENCES
The Human Resources Department and Department Directors provided input on the revised list
of designated filers.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under CEQA Guidelines sec. 15278.
FISCAL IMPACT
There is no fiscal impact to adopting the Code.
ALTERNATIVE
The City Council may make additional or other changes to the City’s Conflict of Interest Code.
Attachments:
a - Conflict of Interest Code Resolution 2018
b - Conflict of Interest Code Review 2018 changes
c - Summary of Amendment to List of Designated Positions
d - Revised List of Designated Positions
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RESOLUTION NO. (2018 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. 10758 (2016 Series) adopted on December 13, 2016 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, Council Members and appointed officials are not designated employees
under this conflict 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 and members of certain advisory
bodies 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. 10758 (2016 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 Ca lifornia 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 determina tion, 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 inco rporate by reference all such
amendments to the model conflict of interest code.
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Resolution No. ____ (2018 Series) Page 2
Upon motion of _____, seconded by ____, and on the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
The foregoing resolution was adopted this __ day of ________ 2018.
Mayor Heidi Harmon
ATTEST:
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
____________________________________
Teresa Purrington
City Clerk
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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 $470. ....................................................8
Section 8.2. Loans to Public Officials. .........................................................................................8
Section 8.3. Loan Terms. ......................................................................................................... 910
Section 8.4. Personal Loans. .................................................................................................. 1011
Section 9. Disqualification. ................................................................................................... 1011
Section 9.3. Legally Required Participation. .......................................................................... 1112
Section 9.5. Disqualification of State Officers and Employees............................................... 1112
Section 10. Disclosure of Disqualifying Interest. ................................................................... 1112
Section 11. Assistance of the Commission and Counsel. ....................................................... 1112
Section 12. Violations. .......................................................................................................... 1113
APPENDIX 1 Disclosure Categories ..................................................................................... 1314
APPENDIX 2 List of Designated Positions ........................................................................... 1416
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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.
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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.
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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 co nflicts 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 re ference 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;
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(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 Po litical 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 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 5.1. 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:
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(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.
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 t he 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 he ld 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 locat ion of the real property;
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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 hig hest 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 considerat ion, 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 per iod covered by the
statement, the statement shall contain the date of acquisition or disposal.
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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 $460 470
(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
$470460 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 e lected 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 h is
or her election to office through the date that he or she vacates office, receive a
personal loan from any officer, employee, member, or consultant of the state or
local government agency in which the elected officer holds office or over which the
elected officer’s agency has direction and control.
(B) No public official who is exempt from the state civil service system pursuant to
subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution
shall, while he or she holds office, receive a personal loan from any officer,
employee, member, or consultant of the state or local government agency in which
the public official holds office or over which the public official’s agency has
direction and control. This subdivision shall not apply to loans made to a public
official whose duties are solely secretarial, clerical, or manual.
(C) No elected officer of a state or local government agency shall, from the date of his
or her election to office through the date that he or she vacates office, receive a
personal loan from any person who has a contract with the state or local government
agency to which that elected officer has been elected or over which that elected
officer’s agency has direction and control. This subdivision shall not apply to loans
made by banks or other financial institutions or to any indebtedness created as part
of a retail installment or credit card transaction, if the loan is made or the
indebtedness created in the lender’s regular course of business on terms available
to members of the public without regard to the elected officer’s official status.
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(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 st ate 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.
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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 t aken 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, participat e 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 e ffect 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;
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(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
$470 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 9.1. LEGALLY REQUIRED PARTICIPATION.
No designated employee shall be prevented from making or participating in t he 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 9.2. 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 transact ions 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 an y
formal or informal opinion.
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
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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 o f 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 t he 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.
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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, a nd 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 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.
Department Directors shall determine, based upon the description of the consultant’s duties
outlined in the contract, whether or not a consultant will make or participate in making a
governmental decision, and if so the consultant shall file a Statement of Economic Interest.
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, if so assign a disclosure category conforming to the position’s range of duties.
Determinations shall be made in writing on an FPPC Form 804 and provided to the City Clerk and
the Human Resources Department.
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CONFLICT OF INTEREST CODE
CITY OF SAN LUIS OBISPO, CALIFORNIA
APPENDIX 2 LIST OF DESIGNATED POSITIONS
DRAFT CHANGES – 2016 CODE REVIEW
DESIGNATED POSITIONS DISCLOSURE CATEGORY
Committees/Commissions/Authorities:
Members of the Architectural Review Commission 3
Members of the Administrative Review Board 1
Members of the Construction Board of Appeals 1
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
Assistant City Clerk 2
Assistant to the City Manager 2
City Clerk 2
Economic Development Manager 2
Natural Resources Manager 2
Interim Deputy City Manager 1
Interim Deputy Director – Office of Sustainability 2
Information Technology Director 1
Information Technology Manager 2
Special Projects Manager 2, 3
Sustainability Manager 2
Tourism Manager 2, 4
City Attorney’s Office
Administrative Citation Hearing Officer 1
Assistant City Attorney 1
Community Development Department
Building and Safety Supervisor 2, 3
Chief Building Official 2, 3
Code Enforcement Supervisor 2, 3
Deputy Director of Community Development 1
Director of Community Development 1
Housing Program Manager 2, 3
Principal Planner 2, 3
Senior Planner 2, 3
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DESIGNATED POSITIONS DISCLOSURE CATEGORY
Finance Department
Accounting Manager 2, 3
Budget Manager 2
Director of Finance 1
Purchasing Analyst 2, 3
Fire Department
Deputy Fire Chief 2, 3
Fire Chief 1
Fire Marshal 2, 3
Human Resources Department
Director of Human Resources 2, 4
Human Resources Manager 2, 4
Information Technology Department
Information Technology Director 1
Information Technology Manager 2
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
Active Transportation Manager 2
Construction Engineering Manager 2
Deputy Director of Public Works 2, 3
Director of Public Works 1
Fleet Maintenance Supervisor 2
Parking Services Manager 2, 3
Senior Civil Engineer 2, 3
Supervising Civil Engineer 2, 3
Transit Manager 2, 3
Transportation Manager 2, 3
Urban Forest Supervisor/City Arborist 2, 3
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DESIGNATED POSITIONS DISCLOSURE CATEGORY
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
Wastewater Collection System Supervisor 2
Wastewater Treatment Plant Supervisor 2
Water Distribution Chief Operator 2
Water Distribution System Supervisor 2
Water Resources Program Manager 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
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SUMMARY OF AMENDMENTS TO THE LIST OF DESIGNATED POSITIONS
Position Title Substitutions:
Former Title: New Title/s:
Communication and Records Manager Communications Manager
New Positions Added:
Assistant to the City Manager
Interim Deputy City Manager
Interim Deputy Director – Office of Sustainability
Sustainability Manager
Active Transportation Manager
Water Distribution Chief Operator
Positions to be Deleted:
None
Positions moved from Information Technology Department to Administration Department
Information Technology Director
Information Technology Manager
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CONFLICT OF INTEREST CODE
CITY OF SAN LUIS OBISPO, CALIFORNIA
APPENDIX 2 LIST OF DESIGNATED POSITIONS
DRAFT CHANGES – 2018 CODE REVIEW
DESIGNATED POSITIONS DISCLOSURE CATEGORY
Committees/Commissions/Authorities:
Members of the Architectural Review Commission 3
Members of the Administrative Review Board 1
Members of the Construction Board of Appeals 1
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
Assistant City Clerk 2
Assistant to the City Manager 2
City Clerk 2
Economic Development Manager 2
Natural Resources Manager 2
Interim Deputy City Manager 1
Interim Deputy Director – Office of Sustainability 2
Information Technology Director 1
Information Technology Manager 2
Special Projects Manager 2, 3
Sustainability Manager 2
Tourism Manager 2, 4
City Attorney’s Office
Administrative Citation Hearing Officer 1
Assistant City Attorney 1
Community Development Department
Building and Safety Supervisor 2, 3
Chief Building Official 2, 3
Code Enforcement Supervisor 2, 3
Deputy Director of Community Development 1
Director of Community Development 1
Housing Program Manager 2, 3
Principal Planner 2, 3
Senior Planner 2, 3
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DESIGNATED POSITIONS DISCLOSURE CATEGORY
Finance Department
Accounting Manager 2, 3
Budget Manager 2
Director of Finance 1
Purchasing Analyst 2, 3
Fire Department
Deputy Fire Chief 2, 3
Fire Chief 1
Fire Marshal 2, 3
Human Resources Department
Director of Human Resources 2, 4
Human Resources Manager 2, 4
Information Technology Department (moved into Administration
Information Technology Director 1
Information Technology Manager 2
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
Active Transportation Manager 2
Construction Engineering Manager 2
Deputy Director of Public Works 2, 3
Director of Public Works 1
Fleet Maintenance Supervisor 2
Parking Services Manager 2, 3
Senior Civil Engineer 2, 3
Supervising Civil Engineer 2, 3
Transit Manager 2, 3
Transportation Manager 2, 3
Urban Forest Supervisor/City Arborist 2, 3
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DESIGNATED POSITIONS DISCLOSURE CATEGORY
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
Wastewater Collection System Supervisor 2
Wastewater Treatment Plant Supervisor 2
Water Distribution Chief Operator 2
Water Distribution System Supervisor 2
Water Resources Program Manager 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
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