HomeMy WebLinkAboutCC Res 5288 2004-12-13
RESOLUTION NUMBER :5 ~ ti
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SEAL BEACH ADOPTING AN AMENDED
CONFLICT OF INTEREST CODE CONTAINING
REVISED DESIGNATED POSITIONS, DISCLOSURE
CATEGORIES AND REPEALING RESOLUTION
NUMBER 5095
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THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY
FIND, RESOLVE AND ORDER AS FOLLOWS:
. Section I. The Political Reform Act, Government Code Section 81000, et'
seq., requires the City of Seal Beach ("City") to adopt a conflict of interest code for each
department of the City.
Section 2. The Fair Political Practices Commission has adopted a Model
Conflict of Irt'terest. Code (the "Model Code"). The Model Code, codified at 2 California
Code of Regulatlons Section 1873.0, can be incorporated by reference by the City as its
conflict of ihteres~~Q'lle-:'^That Moqel Code will be amended by the Fair Political Practices
Commissiori~{r,g.m,time1'0~time to:s6nform to amendments to the Political Reform Act.
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~~;1;\J!\~ "'ant to Resolution Number 5095, the City adopted a Conflict
of Interest Code con a'ii1rft~Pdesignated positions and disclosure categories. By this resolution
the City is adopting an updated Conflict of Interest Code, designated positions and ~isclosure
categories.
Section 4. The Model Code, attached hereto as Exhibit "An and any
amendments to it duly adopted by the Fair Political Practices Commission, and Appendices
A-C are hereby incorporated by reference and shall constitute the Conflict of Interest Code
for the City for the following departments:
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A. Administrative Department;
B. Development Services Department;'
C. Administrative Services Department;
D. Public Works Department;
E. Recreation, Parks, and Community Services Department;
F. Police Department;
G. Lifeguard Department;
H. Consultants
Section 5. Persons holding designated positions listed in the Appendices shall
file Statements of Economic Interest pursuant to Section 5 of the Conflict of Interest Code
with the infoI11J.ation required for the disclosure categories assigned to them.
Section 6. The City Council hereby directs the City Clerk and City Attorney
to coordinate the preparation of a revised Conflict of Interest Code in succeeding even-
numbered years in accordance with the requirements of Government Code Sections 87306
and 87306.5. The revised Code should reflect any changes in department or employee
designations. If no revisions to the Code are required, the City Clerk shall submit a report no
later than October 151 of the same year, stating that amendments to the Code are not required.
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Section 7. Resolution Number 5095 of the City is hereby repealed in its
entirety.
Section 8. The City Clerk shall certify to the passage and adoption of this
Resolution,
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Resolution Number :5 ~ ~f?
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PASSED, APPROVEr~ ADD OPTED by the City Council of the City of Seal Beach
this J 3~ day of t ~}(/l 2004 by the following vote:
AYES:
councilMembers~l~ ~,r
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an1M
NOES:
Council Members
ABSENT:
Council Members
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ATTEST:
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF SEAL BEACH )
I, Linda Devine, City Clerk of the City of Seal Beach, California, do hereby certify that the
foregoing Resolution is the original copy of Resolution Number .~g-Y on file in the office
of the City Clerk, passed, approved, and adopted by the C~he City of Seal
Beach at a meeting thereof held on the / 3 V'}... day of ~, 2004.
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Resolution Number
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EXHIBIT A
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(MODEL CONFLICT OF INTEREST CODE)
Regulations of the Fair Political Practices Commission
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TITLE 2, DIVISION 6, CALIFORNIA CODE OF REGULATIONS
(Regulations of the Fair Political Practices Commission, Title 2, Division 6, California Code of
Regulations.)
18730. Provisions of Conflict of Interest Codes.
(a) Incorporation by reference of the terms of this regulation along with the designation of
employees and the formulation of disclosure categories in the Appendix referred to below
constitute the'-adOpti'on 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, i~teresT C9de already in effect. A code so amended or adopted and'
promulgated reglJir.es the reponing of reportable items in a manner substantially equivalent to
the requirel)lents.p~C!rti5>le 2,0.ychapter 7 of the Political Reform Act, Government Code
sections 81000, et~s13q: Th~~requirements of a conflict of interest code are in addition to other
requirem~nts~(ttie pqliti~a~Reform. Act, such as the general prohibition against conflicts of
interesttQr5t~lne91,i';l(~~)g:W;ment Code section 87100, and to other state or local laws
pertaining ~>eidj'6t5',dfinterest.
(b) The terms of a conflict of interest code amended or adopted and promulgated pursuant to
this regulation are as follows:
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(1) Section 1. Definitions,
The definitions contained in the Political Reform Act of 1974, regulations of the Fair Political
Practices Commission (2 Cal. Code of Regs, sections 18100, et seq,), and any amendments to
the Act or regulations, are, incorporated by reference into this conflict of interest code.
(2) Section 2. Designated Employees.
The persons holding positions listed in the Appendix are designated employees, It has been
determined that these persons make or participate in the making of decisions which may
foreseeably have a material effect on financial interests.
(3) Section 3, Disclosure Categories,
This code does not establish any disclosure obligation for those designated employees who
are also specified in Government Code section 87200 if they are designated in this code in that
same capacity or if the geographical jurisdiction of this agency is the same as or is wholly
included within the jurisdiction in which those persons must report their financial interests
pursuant to article 2 of chapter 7 of the Political Reform Act, Government Code sections
87200, et seq,
In addition, this .code does not establish any disclosure obligation for any designated
employees who are designated in a conflict of interest code for another agency, if all of the
following apply:
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(A) The geographical jurisdiction of this agency is the same as or is wholly included within the
jurisdiction of the other agency;
(8) The disclosure assigned in the code of the other agency is the same as that reqyired under
article 2 of chapter 7 of the Political Reform Act, Government Code section 87200; and
(C) The filing officer is the same for both agencies.1
Such persons are covered by this code for disqualification purposes only. With respect to all
other designated employees, the disclosure categories set forth in the Appendix specify which
kinds of financial interests are reportable. Such a designated employee shall disclose in his or
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Resolution Number 5~2rY
her statement of economic interests those financial interests he or she has which are of the
kind described in the disclosure categories to which he or she is assigned in the Appendix. It
has been determined that the financial interests set forth in a designated employee's disclosure
categories are the kinds of financial interests which he or she foreseeably can affect materially
through the conduct of his or her office,
(4) Section 4, Statements of Economic Interests: Place of Filing,
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The code reviewing body shall instruct all designated employees within its code to file
statements of economic interests with the agency or with the code reviewing body, as provided
by the code reviewing body in the agency's conflict of interest code. 2 '
(5) Section 5. Statements of Economic Interests: Time of Filing.
(A) Initial Statements. All designated employees employed by the agency on the effective date
of this code, as originally adopted, promulgated and approved by the code reviewing body,
shall file statements within 30 days after the effective date of this code, Thereafter, each
person already in a position when it is designated by an amendment to this code shall file an
initial statement within 30 days after the effective date of the amendment.
(B) Assuming Office Statements, All persons assuming designated positions after the effective
date of this code shall file statements within 30 days after assuming the designated positions,
or if subject to State Senate confirmation, 30 days after being nominated or appointed.
(C) Annual Statements. All designated employees shall file statements no later than April 1.
(0) Leaving Office Statements, All persons who leave designated positions shall file
statements within 30 days after leaving office,
(5.5) Section 5.5. Statements for Persons Who Resign Prior to Assuming Office.
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Any person who resigns within 12 months of initial appointment, or within 30 days of the date of
notice provided by the filing officer to file an assuming office statement, is not deemed to have
assumed office or left office, provided he or she did not make or participate in the making of, or
use his or her position to influence any decision and did not receive or become entitled to
receive any form of payment as a result of his or her appointment. Such persons shall not file
either an assuming or leaving office statement.
(A) Any person who resigns a position within 30 days of the date of a notice from the filing
officer shall do both of the following:
(1) File a written resignation with the appointing power; and
(2) File a written statement with the filing officer declaring under penalty of 'perjury that during
the period between appointment and resignation he or she did not make, participate in the
making, or use the position to influence any decision of the agency or receive, or become
entitled to receive, any form of payment by virtue of being appointed to the position.
(6) Section 6. Contents of and Period Covered by Statements of Economic Interests.
(A) Contents of Initial Statements.
Initial statements shall disclose any reportable investments, interests in real property and
business positions held on the effective date of the code and income received during the 12
months prior to the effective date of the code.
(B) Contents of Assuming Office Statements.
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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,
(0) Contents of Leaving Office Statements:
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Resolution Number tS:AW
Leaving office statements shall disclose reportable investments, interests in real property,
income and business positions held or received during the period between the closing date of
the last statement filed and the date of leaving office.
(7) Section 7, Manner of Reporting.
Statements of economic interests shall be made on forms prescribed by the Fair Political
Practices Commission and supplied by the agency, and shall contain the following information:
(A) Investments and' Real Property Disclosure.
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When an investment or an interest in real property 3 is required to be reported,4 the statement
shall contain the following:
1, A statement of the nature of the investment or interest;,
2. The name of the business entity in which each investment is held, and a general description
of the business activity in which the business entity is engaged;
3, The .address or other precise location of the real property;
4. A statement whether the fair market value of the investment or interest in real property
exceeds two thousand dollars ($2,000), exceeds ten thousand dollars ($10,000), exceeds one
hundred thousand dollars ($100,000), or exceeds one million dollars ($1,000,000),
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(B) Personallnco~e Disclosure, When personal income is required to be reported,5the
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);
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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 thegift 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'requiredto 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,
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(E) Acquisition or Disposal During Reporting Period, In the case of an annual or leaving office
statement, if an investment or an interest in real property was partially or wholly acquired or
disposed of during the period covered by the statement, the statement shall contain the date of
acquisition or disposal.
(8) Section 8, Prohibition on Receipt of Honoraria,
(A) No member of a state board or commission, and no designated employee of a state or local
government agency, shall accept any honorarium from any source, if the member or employee
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Res,61ution Number :5 .?t tcf
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.
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This section shall not limit or prohibit payments, advances, or reimbursements for travel and
related lodging and subsistence authorized by Government Code section 89506.
(8,1) Section 8.1 Prohibition on Receipt of Gifts in Excess of $340,
(A) No member of a state board or commission, and no designated employee of a state or local
government agency, shall accept gifts with a total value of more than $340 in a calendar year
from any single source, if the member or employee would be required to report the receipt of
income or gifts from that source on his or her statement of economic interests, This section
shall not apply to any part time member of the governing board of any public institution of
higher education, unless the member is also an elected official.
Subdivisions (e), (f), and (g) of Government Code section 89503 shall apply to the prohibitions
in this section.
(8,2) Section 8.2. Loans to Public Officials,
(A) No elected officer of a state or local government agency shall, from the date of his or her
election to office through the date that he or she vacates office, receive a personal loan from
any officer, employee, member, or consultant of the state or local government agency in which
the eleeled officer holds office or over which the elected officer's agency has direction and
control. '
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(B) No public official who is exempt from the state civil service system pursuant to subdivisions
(c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds
office, receive a personal loan from any officer, employee, member, or consultant of the state
or local government agency in which the public official holds office or over which the public
official's agency has direction and control. This subdivision shall not apply to loans made to a
public official whose duties are solely secretarial, clerical, or manual.
(C) No elected officer of a state or local government agency shall, from the date of his or her
election to office through the date that he or she vacates office, receive a personal loan from
any person who has a contract with the state or local government agency to which that elected
officer has been elected or over which that elected officer's 'agency has direction and control.
This subdivision shall not apply to loans made by banks or other financial institutions or to any
indebtedness created as part of a retail installment or credit card transaction, if the loan is
made or the indebtedness created in the lender's regular course of business on terms available
to members of the public without regard to the elected officer's official status,
(D) No public official who is exempt from the state civil service system pursuant to subdivisions
(c), (d), (e), (f), and (.g) of Section 4 of Article VII of the Constitution shall, while he or she holds
office, receive a personal loan from any-person who has a contract with the state or local
government agency to which that elected officer has been elected or over which that elected
officer's agency has direction and control. This subdivision shall not apply to loans made by
banks or other financial institutions or to any indebtedness created as part of a retail
installment or credit card transaction, if the loan is made or the indebtedness created in the
lender's regular course of business on terms available to members of the public without regard
to the elected officer's official status. This subdivision shall not apply to loans made to a public
official whose duties are solely secretarial, clerical, or manual.
(E) This section'shall not apply to the following:
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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,
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Resolution Number t6'A<-t6
(8.3) Section 8.3. Loan Terms.
(A) Except as set forth in subdivision (B), ho 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, inr:luding 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:
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1, Loans made to the campaign committee of the elected officer.
2. Loans made to the elected officer by his or her spouse, child, parent, grandparent,
grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt,
uncle, or first cousin, or the spouse of any such person, provided that the person making the
loan is not acting as an agent or intermediary for any person not otherwise exempted under
this section.
3, Loans made, or offered in writing, before January 1, 1998.
(C) Nothing in this section shall exempt any person from any other provision of Title 9 of the
Government Code.
(8.4) Section 8.4. Personal Loans,
(A) Except as set forth in subdivision (B), a personal loan received by any designated
employee shall become a gift to the designated employee for the purposes of this section in
the following circumstances:
1. If the loan has a defined date or dates for repayment, when the statute of limitations for filing
an action for default has expired.
2. If the loan has no defined date or dates for repayment, when one year has elapsed from the
later of the following:
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a, The date t,he loan was made.
b. The date the last payment of one hundred dollars ($100) Oy 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 loa'n 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.
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(C) Nothing in this section shall exempt any person from any other provisions of Title 9 of the
Government Code,
(9) Section 9, Disqualification.
No designated employee shall make, participate in making, or in any way attempt to use his or
her official position to influence the making of any governmental decision which he or she
knows or has reason to know will have a reasonably foreseeable material financial effect,
distinguishable from its effect on the public generally, on the official or a member of his or her
immediate family or on:
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Resolution Number :S)"k'cr
(A) Any business entity in which the designated employee has a direct or indirect investment
worth two thousand dollars ($2,000) or more;
(8) 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 $340 or
more provided to, received by, or promised to the designated employee within 12 months prior
to the time when the decision is made.
(9.3) Section 9.3. Legally Required Participation,
No designated employee shall be prevented from making or participating in the making of any
decision to the extent his or her participation is legally required for the decision to be made.
The fact that the vote of a designated employee who is on a voting body is needed to break a
tie does not make his or her participation legally required for purposes of this section.
(9.5) Section 9:5. Disqualification of State Officers and Employees,
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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
(8) Engaged in a business transaction or transactions on terms not available to members of
the public regarding the rendering of goods or services totaling in value one thousand dollars
($1,000) or more,
(10) Section 10, Disclosure of Disqualifying Interest.
When a designated employee determines that he or she should not make a governmental
decision because he or she has a disqualifying interest in it, the determination not to act may
be accompanied by disclosure of the disqualifying interest.
Section 11, Assistance of the.Commission and Counsel.
Any designated employee who is unsure of his or her duties under this code may request
assistance from the Fair Political Practices Commission pursuant to Government Code section
83114 or from the attorney for his or her agency, provided that nothing in this section requires
the attorney for the agency to issue any formal or informal opinion,
(11) Section 12, Violations.
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This code has the force and effect of law, Designated employees violating any provision of this
code are subject to the administrative, criminal and civil sanctions provided in the Political
Reform Act, Government Code sections 81000 91015. In addition, a decision in relation to
which a violation of the disqualification provisions of this code or of Government Code section
87100 or 87450 has occurred may be set aside as void pursuant to Government Code ,section
91003.
NOTE: Authority cited: Section 83112, Government Code, Reference: Sections 87103(e),
87300 87302, 89501, 89502 and 89503, Government Code,
1 Designated employees who are required to file statements of economic interests under any
other agency's conflict of interest code, or under article 2 for a different jurisdiction, may
, expand their statement of economic interests to cover reportable interests in both jurisdictions,
and file copies of this expanded statement with both entities in lieu of filing separate and
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Resolution Number C)?. 1<6
distinct statements, provided that each copy of such expanded statement filed in place of an
original is signed and verified by the designated employee as if it were an original. See
Government Code section 81004.
2 See Government Code section 81010 and 2 Cal. Code of Regs. section 18115 for the duties
of filing officers and persons in agencies who make and retain copies of statements and
forward the originals to the filing officer,
3 For the purpose of disclosure only (not disqualification), an interest in real property does not
include the principal residence of the filer. '
4 Investments and interests in real property which have a fair market value of less than $2,000
are not investments and interests in real property within the meaning of the Political Reform
Act. However, investments or interests in real property of an individual include thQse 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.
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5 A designated employee's income includes his or her community property interest in the
income of his or her spouse but does not include salary or reimbursement for expenses
received from a state, local or federal government agency, '
6 Income of a business entity is reportable if the direct, indirect or beneficial interest of the filer
and the filer's spouse in the business entity aggregates a 10 percent or greater interest. In
addition, the disclosure of persons who are clients or customers of a business entity is required
only if the clients or customers are within one of the disClosure categories of the filer.
History
1. New section filed 4-2-80 as an emergency; effective upon filing. Certificate of Compliance
included,
2. Amendment of subsection (b) filed 1-9-81; effective 30 days thereafter.
3, Amendment of subsection (b)(7)(B)1. filed 1-26-83; effective 30 days thereafter.
4. Amendment of subsection (b )(7)(A) filed 11-10-83; effective 30 days thereafter.
5, Amendment filed 4-13-87; effective 5-13-87,
6. Amendment of subsection (b) filed 10-21-88; effective 11-20-88,
7. Amendment of subsections (b)(8)(A) and (b)(8)(B) and numerous editorial changes filed 8-
28-90; effective 9-27-90,
8. Amendment of subsections (b)(3), (b)(8) and renumbering of following subsections and
amendment of NOTE filed 8-7-92; effective 9-7-92,
9, Amendment filed 2-4-93; effective upon filing.
10. Change without regulatory effect adopting COIC for California Mental Health Planning
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Council filed 11-22-93. Approved by FPPC 9-21-93,
11, Change without regulatory effect redesignating COIC for California Mental Health Planning
Council filed 1-4-94.
12. Amendment filed and effective 3-14-95.
13. Amendment filed and effective 10-23-96,
14, Amendment filed and effective 4-9-97.
15. Amendment filed and effective 8-24-98,
16. Amendment filed and effective 5-11-99.
17. Amendment filed 12-6-2000; effective 1-1-2001.
18. Amendment filed 1-10-2001; effective 2-1-2001.
19, Amendment filed and effective 2-13-2001.
20\ Amendment filed 1-16-03; effective 1-01-03.
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