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FPPC - FAQs
r, Questions Frequently Asked by Candidates
Ib Who is the City's Election Official?
One of the duties of the City Clerk is to be the City's Election Official - you see both
titles used in this handbook
Po Is there a filing fee involved in my candidacy?
There is $25 (non-refundable) filing fee for a candidate for municipal office in Seal
Beach. (Municipal Code 52.05.015)
ib What if I change my mind about being a candidate after filing my nomination
paper?
You may withdraw as a candidate at any time PRIOR to the close of the nomination
period, which is August 10, 2018.
Po What happens if some of the people whose signatures I obtain on my nomination
paper are not registered voters or do not live within my District?
It is important that you file your nomination paper as early as you can, the City Clerk
must have the signatures certified on the nomination paper (this is done by the county).
If for any reason the name, address, and/or signature cannot be verified by the county
it will not be counted (must have at least 20 certified signatures). This may mark your
nomination paper as insufficient and you will not be qualified as a candidate. If you file
early, there will be time to check the signatures and notify you of any insufficiencies;
you may have an opportunity to circulate a supplemental nomination paper to qualify as a
candidate.
Po May I change or correct the spelling/wording on my Candidate's Statement after it
has been submitted?
No, you may not. Check your Candidate's Statement carefully before it is submitted.
Fb If I submit a Candidate's Statement, and I change my mind about having it printed
in the Sample Ballot, may I withdraw the statement?
The Candidate's Statement may be withdrawn, but not changed, during the period for
filing nomination papers and until 5:00 p.m. of the next working day after the close of
the nomination period, August 10, 2018.
Po Is there a limitation of campaign contributions?
Yes, an ordinance was passed that states no person or committee shall make to any
candidate a contribution in excess of $500. (SBMC Section 2.10.010.C)
to Can I use any City logos, seals, and/or employees in my campaign or in my
campaign literature? See: City of Seal Beach Administrative Directive #200-20 -
Employee Endorsements.
California Fair Political Practices Commission
Frequently Asked Questions:
Form 700 Disclosure
General............ Page 1 Income .................. Page 2 Investments ............. Page 3
Real Property.... Page 4 Enforcement .......... Page 4 Giftslrravel............ Page 4
Tickets to Non -Profit and Political Fundraising Events...................................................Page 8
The FAQs listed below are selected from questions often asked about the Statement of Economic
Interests (Form 700). Because it is not possible to address all of the unique variables and
circumstances related to disclosure, individuals are encouraged to contact the FPPC with speck facts.
Most officials must also consult their agency's conflict of interest code to determine their disclosure
level and their reportable interests. The Form 700 is a public document. Form 700s filed by State
Legislators and Judges, members of the FPPC, County Supervisors, and City Council Members are
available on the FPPC's website.
General Questions
1. Q. Do officials have to complete all schedules of the Form 700?
A. Not necessarily. The majority of individuals who file the Form 700 must do so by following the
rules set forth in their agency's conflict of interest code ("designated employees"). Before
completing the Form 700, an official should be familiar with the disclosure category for his or her
position. For example, since job duties differ from agency to agency and even unit to unit within
the same agency, an analyst for one agency, or unit of that agency, may not have the same
reporting requirements as an analyst from another agency, or even another unit of the same
agency. Designated employees should obtain a copy of their agency's conflict of interest
code from the agency.
Officials listed in Government Code Section 87200 (e.g., boards of supervisors, city council
members, planning commissioners, elected state officials, etc.) must report investments,
business positions, and sources of income, including receipt of gifts, loans, and travel
payments, from sources located in or doing business in their agency's jurisdiction. All interests
in real property within the agency's jurisdiction must also be reported. For local officials, real
property located within two miles of the boundaries of the jurisdiction or any real property that
the agency has an interest in is deemed to be "within the jurisdiction."
2. Q. Is it necessary to read all of the information before completing the Form 700?
A. Each individual must verify the Form 700's content under penalty of perjury. Therefore, every
effort must be made to understand what is required by the form. When necessary, you may
contact the FPPC for specific, personal guidance. You may only obtain immunity from an
enforcement action when you receive formal written advice.
3. Q. Where are the Form 700s filed?
A. Most state and local officials file with their agency. In most instances, the agency is required to
forward the originals for specified high-level officials to the FPPC. Only retired judges serving
on assignment and legislative staff file the Form 700 directly with the FPPC.
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4. Q. If the Form 700 is postmarked by the due date, is it considered filed on time?
A. Yes.
5. Q. If an official holds various positions for which the Form 700 is required, is a statement required
for each position?
A. Yes. However, one expanded statement covering the disclosure requirements for all positions
may be completed as long as an originally signed statement is filed with each filing officer.
6. Q. Do individuals need to file a complete Form 700 when they leave office?
A. Yes. The same requirements apply for the assuming office, the annual, and the leaving office
filings.
7. Q. An individual is hired into a newly created management position in her agency's Information
Technology Department. How does she complete the Form 700?
A. Because it is a newly created position, the law requires that economic interests are reported
under the broadest disclosure category in the agency's conflict of interest code unless the
agency sets interim disclosure that is tailored to the limited range of duties of the position.
Generally, the Form 700 must be filed with the agency within 30 days of the date of hire. An
individual may request that the agency complete the Foran 804 (Agency Report of New
Positions) to tailor the disclosure category to the job duties of the new position.
8. Q. Must board members of a non-profit public benefit corporation that operates California charter
schools file Form 700?
A. Yes. Members of charter schools are public officials and must file the Form 700.
Income Questions
9. Q. Must an official report a spouse's or registered domestic partner's salary?
A. Generally an official is required to report his or her community property share (50%) of his or her
spouse's or registered domestic partner's salary. The disclosure lists the employer's name as
the source of income on Schedule C of the Form 700. If the spouse or registered domestic
partner is self-employed, the business entity is reported on Schedule A-2. Officials should
check their disclosure category, if applicable, to determine if the income is reportable. A spouse
or registered domestic partner's government salary is not reportable (e.g., spouse is a teacher
at a public school).
10. Q. If an official and his or her spouse have a legally separate property agreement (e.g., prenuptial),
must the official still report his or her community property share (50%) in his or her spouse's
income?
A. No. If there is a legally separate property agreement, the official is not required to report his or
her community property share in his or her spouse's income so long as the funds are not
commingled with community funds or used to pay for community expenses or to produce or
enhance the official's separate income. This reporting exception does not apply to investments
and interests in real property. Even if a public official and his or her spouse have a separate
property agreement, the spouse's investments and interests in real property must still be
disclosed because the definitions of reportable investments and interests in real property
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include those held by the official's immediate family (spouse, registered domestic partner, and
dependent children). These definitions are not dependent on community property law.
11.0. If an official owns a business in which he has received income of $10,000 or more from a client,
is the official required to disclose the client's name on Schedule A-2, Part 3?
A. Yes, except for under rare circumstances where disclosure of the identity would violate a legally
recognized privilege under California or federal law. In these cases, the FPPC may authorize
an exemption. (Regulation 18740)
12. Q. When an official purchases a new car and trades in the old car as credit toward the purchase
price, is the trade-in allowance considered reportable income on the Form 700?
A. No. A trade-in allowance is not considered income and is not reportable on an official's Form
700. However, income received from the sale of an auto may be reportable.
13. Q. An official owns a rental property that he or she is required to report. The renter/tenant pays a
property management company and the company deposits the funds into the official's checking
account. Would the source of rental income be listed as the property management company or
the person living at the residence who is paying the property management company?
A. The source of the rental income is the person living at the residence (renter/tenant). The
property management company does not need to be disclosed.
Investment Questions
14.0. An official holds various stocks through an account managed by an investment firm. The
account manager decides which stocks to purchase with no input from the official. Are the
stocks subject to disclosure?
A. Yes. Unless the stocks are in a diversified mutual fund registered with the SEC or in a fund
similar to a diversified mutual fund (e.g., exchange traded fund (ETF)) if the similar fund meets
the specific criteria outlined in Regulation 18237. Any investments worth $2,000 or more in a
business entity located in or doing business in the jurisdiction must be disclosed on Schedule A-
1 or A-2 if the official's disclosure category requires that the investments be reported.
15. Q. Are funds invested in a retirement account required to be disclosed?
A. Investments held in a government defined -benefit pension program plan (i.e., CaIPERS) are not
reportable. Investments held in a fund such as a defined contribution plan 401(k) or exchange
traded fund (EFT) are not required to be disclosed if the fund meets the speck criteria outlined
in Regulation 18237. An official may need to contact his or her account manager for assistance
in determining what assets are held in the account.
16. Q. If an official reported stocks that,were acquired last year on his or her annual Form 700, must
the stocks be listed again on the official's next Form 7007
A. Yes. Stocks that are worth $2,000 or more during the reporting period must be reported every
year that they are held. The "acquired" and "disposed" dates are only required if the stocks
were acquired or disposed of during the period covered by the Form 700.
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17. Q. How are interests in a living trust reported if the trust includes: (1) rental property in the official's
jurisdiction; (2) a primary residence; and (3) investments in diversified mutual funds? Are there
different disclosure rules?
A. The name of the trust is reported, along with the rental property and its income, on Schedule A-
2. The official's primary residence, if used exclusively as a personal residence, and investments
in diversified mutual funds registered with the SEC, are not reportable. Although the official's
primary residence is not required to be disclosed on the Form 700, it is still considered an
economic interest for conflict of interest purposes. (See Question 18.) A secondary residence
not used exclusively for personal purposes may be reportable. (See Question 19.)
Real Property Questions
18. Q. Is an official's personal residence reportable?
A. Generally, any personal residence occupied by an official or his or her family is not reportable if
used exclusively as a personal residence. However, a residence for which a business
deduction is claimed is reportable If the portion claimed as a tax deduction is valued at $2,000
or more. In addition, any residence for which an official receives rental income is reportable if it
is located in the jurisdiction.
19. Q. When an official is required to report interests in real property, is a secondary residence
reportable?
A. It depends. First, the residence must be located in the official's jurisdiction. If the secondary
residence is located in the official's jurisdiction and rental income is received (including from a
family member), the residence is reportable. However, if the residence is used exclusively for
personal purposes and no rental income is received, it is not reportable. Although the
secondary residence may not be reportable, it is still considered an economic interest for conflict
of interest purposes.
20. Q. If a primary or secondary personal residence is required to be reported, is the street address
required to be disclosed?
A. No. The assessor's parcel number may be listed instead of the street address.
Enforcement Question
21. Q. What is the penalty for not filing the Form 700 on time or not reporting all required economic
interests?
A. A late fine of $10 per day up to a maximum of $100 may be assessed. In addition, If a matter is
referred to the FPPC's Enforcement Division for failure to file or failure to include all required
economic interests, the fine may be substantially higher. If an individual does not pay a fine, the
matter may be referred to the Franchise Tax Board for collection.
Gift/Travel Questions
22.Q. What is the gift limit for 2017-2018?
A. $470: This means that gifts from a single, reportable source, other than a lobbyist or lobbying
fine (see below), may not exceed $470 in a calendar year. For officials and employees who file
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the Form 700 under an agency's conflict of interest code ("designated employees"), this limit
applies only if the official or employee would be required to report income or gifts from that
source on the Form 700, as outlined in the "disclosure category" portion of the agency's conflict
of interest code. For conflict of interest purposes, the gift must be under $470 to avoid
consideration under the conflict rules. The gift limit for 2015 — 2016 was $460.
State Lobbyist & Lobbying Firm Limit:
$10: State candidates, state elected officers, and state legislative officials may not accept gifts
aggregating more than $10 in a calendar month that are made or arranged by a registered
state lobbyist or lobbying firm. The same rule applies to state agency officials, including
members of state boards and commissions, if the lobbyist or fimf is registered to lobby, or
should be registered to lobby, the official's or employee's agency.
23. Q. During the year, an official received several gifts of meals from the same reportable source.
Each meal was approximately $35. Is the source reportable?
A. Yes. Gifts from the same reportable source are aggregated, and the official must disclose the
source when the total value of all meals reaches or exceeds $50.
24. Q. How does an individual return a gift so that it is not reportable?
A. Unused gifts that are returned to the donor or reimbursed within 30 days of receipt are not
reportable. The recipient may also donate the unused item to a charity or governmental agency
within 30 days of receipt or acceptance so long as the donation is not claimed as a tax
deduction. An individual may not, however, reimburse a charity for the value (or partial value) of
a gift from another source, in order to not report the gift, unless the charity was the original
source of the gift.
25. Q. Two people typically exchange gifts of similar value on birthdays. Are these items reportable?
A. No. Gift exchanges with individuals, other than lobbyists, on birthdays, holidays, or similar
occasions, are not reportable or subject to gift limits. The gifts exchanged must be similar in
value.
26. Q. Must an official report gifts received from an individual whom the official is dating?
A. No. Gifts of a personal nature exchanged because the individuals are in a bona fide dating
relationship are not reportable or subject to gift limits. However, the official remains subject to
the conflict of interest rules and some matters may require recusal from voting.
27.0. If an official makes a speech related to national public policy and his or her spouse attends the
dinner at the event, is the spouse's meal considered a gift to the official?
Yes. The official's meal is not a reportable gift; however, his or her spouse's meal is a gift and
reportable on the official's Form 700 If the value is $50 or more.
28. Q. A vendor that does business with the agency provided entertainment tickets to the spouse of
one of the agency members. Must the member report the tickets as gifts?
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A. Yes. Unless an exception applies, the tickets are a reportable gift. A gift to an official's spouse
is a gift to the official when there is no established working, social, or similar relationship
between the donor/vendor and the spouse or there is evidence to suggest that the donor had a
purpose to influence the official.
29. Q. An agency received two free tickets to a concert from a local vendor. The agency has a policy
governing the reporting of tickets and passes distributed to persons for use in ceremonial roles
or other agency related activities. The agency had discretion to determine who in the agency
received the tickets. Each ticket was valued at $140. If the agency director used the tickets,
how are they reported?
A. Assuming the tickets meet the agency's policy as an appropriate use of public funds, the agency
may report the tickets (worth $280) on the Form 802 (Agency Report of Ceremonial Role Events
and Ticket/Pass Distributions), which is a public record. The director does not need to report
the tickets on the Form 700.
30. Q. An agency received a large box of chocolates as a holiday gift from a local merchant. It was
addressed to the agency and not to a particular employee. Is there a reporting requirement?
A. No. There is no reporting requirement if the value received by each agency employee is less
than $50.
31. Q. An agency official receives a gift basket specifically addressed to the official worth more than
$50 from a local merchant. Is there a reporting requirement?
A. If the source of the gift basket is reportable by the official, the official must report the gift, even if
he or she shares the gift with other agency employees.
32. Q. Do prizes donated to a governmental agency by an outside source constitute gifts under the Act
if they were received by city employees in a drawing conducted by the city for all city employees
participating in the city's charitable food drive?
A. Yes. The prizes are gifts if donated by an outside source and subject to the Act's limits and
reporting requirements.
33. Q. An official won a scholarship in a raffle at a software update training class. The scholarship
covered the cost of the class. All attendees, including other public officials and members of the
public, were eligible to apply for the scholarship. Is the official required to report the scholarship
as a gift?
A. A scholarship received in a "bona fide" competition may be reported as income instead of a gift.
Whether or not a competition or contest is "bona fide" depends on specific facts, such as the
nature of the pool of contestants. Contact the FPPC for assistance.
34. Q. Is a ticket provided to an official for his or her admission to an event at which the official
performs a ceremonial role or function on behalf of his or her agency reportable on the official's
Form 700?
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A. No, so long as the organization holding the event provides the ticket and so long as the official's
agency completes the Form 802 (Agency Report of Ceremonial Role Events and Ticket/Pass
Distributions). The form will identify the official's name and explain the ceremonial function.
(See Regulation 18942.3 for the definition of "ceremonial role.")
35. Q. An official makes an annual donation to an educational organization that has a 501(c)(3) tax-
exempt status. The organization is holding a two-hour donor appreciation event, which will
include wine, appetizers, and music. Free access to the event is being provided to all donors to
the organization. Must the official report the event as a gift from the organization?
A. Because free access to the event is offered to all of the organization's donors, without regard to
official status, access to the event is not a reportable gift.
36.C. Are frequent Flyer miles reportable?
A. No. Discounts received under an airline's frequent flyer program that are available to all
members of the public are not required to be disclosed.
IMPORTANT NOTE: See Regulation 18950.1 for additional information on reporting travel
payments. In some circumstances the agency may report the travel in lieu of the official
reporting the travel.
37. Q. If a non-profit organization pays for an official to travel to a conference after receiving the funds
to pay for the travel from corporate sponsors, specifically for the purpose of paying for the
official's travel, is the non-profit organization or the corporate sponsors the source of the gift?
A. The corporate sponsors are the source of the gift if the corporate sponsors donated funds
specifically for the purpose of the official's travel. Thus, the benefit of the gift received by the
official would be pro -rated among the donors. Each reportable donor would be subject to the
gift limit and identified on the official's Form 700. The FPPC should be contacted for speck
guidance to determine the true source of the travel payment.
38. Q. May an official accept travel, lodging and subsistence from a foreign sister city while
representing the official's home city?
A. Yes. If the travel and related lodging and subsistence is paid by a foreign govemment and is
reasonably related to a legislative or governmental purpose, it is not subject to the gift limit.
However, the payments must be disclosed as gifts on the Form 700 for this exception to apply.
While in the foreign country, any personal excursions not paid for by the official must also be
disclosed and are subject to the gift limit. If private entities make payments to the foreign
government to cover the travel expenses, the gift limit will apply and travel payments will likely
be prohibited. Please contact the FPPC for more information.
39. Q. An analyst for a state or local agency attends a training seminar on the new federal standards
related to the agency's regulatory authority. If the analyst's travel payments are paid by the
federal agency, must the analyst report the payment on the Form 700?
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A. No. A payment for travel and related per diem received from a government agency for
education, training, or other inter -agency programs or purposes, is not considered a gift or
income to the official who uses the payment.
40. Q. A state legislator and a planning commissioner were guest speakers at an association's event.
Travel expenses were paid by the association, and the event was held in the United States. Is
this reportable?
A. Yes. The payment is reportable, but not subject to the gift limits. In general, an exception
applies to payments for travel within the United States that are provided to attend a function
where the official makes a speech. These payments are not limited, but are reportable as gifts.
The rules require that the speech be reasonably related to a legislative or governmental
purpose, or to an issue of state, national, or international public policy; and the travel payment
must be limited to actual transportation and related lodging and subsistence the day
immediately preceding, the day of, and the day immediately following the speech. (See
Government Code Section 89506. Other rules may be applicable if this exception is not used.)
41. Q. An official serves as a board member for two organizations — one has a 501(c)(3) tax-exempt
status and the other has a 501(c)(6) tax-exempt status. The organizations pay the official's
travel expenses to attend board meetings. Must the official report these travel payments?
A. Under the Act, travel payments provided to an official by a 501(c)(3) organization are exempt
from the definition of "income" and therefore, not reportable. However, travel payments from
other organizations, including a 501(c)(6) organization, are likely required to be reported.
Designated employees must report such travel payment if the organization is reportable
pursuant to the official's disclosure category in his or her agency's conflict of interest code.
42. Q. The local airport authority issues a certain number of airport parking cards to the County to
allow the cardholders to use the parking facilities at the airport at no change, provided the
cardholder is on official business. Must the officials who use the parking cards report a gift on
the Form 700?
A. No. As long as the parking cards are used for official business only, the parking cards do not
provide a personal benefit, so no gift is received. If a parking card is used for personal
purposes, a gift must be reported.
Tickets to Non -Profit and Political Fundralsers Questions
43.0. An official is offered a ticket from a 501(c)(3) organization to attend its fundraising event. The
face value (price) of the ticket is $500, and the ticket states that the tax deductible portion is
$350. If the official accepts the ticket, what must be reported?
A. Nothing is required to be reported on the Form 700 so long as the ticket is provided directly by
the 501(c)(3) organization for its own fundraising event and is used for the official's own
attendance at the fundraiser. In this case, the ticket is deemed to have no value. The official
may also accept a second ticket provided directly by the 501(c)(3) organization for his or her
guest attending the event, without a reporting obligation by either the official or the guest.
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44. Q. What if someone purchases a table at a non-profk fundraiser and offers an official a seat at the
table?
A. If another person or entity provides a ticket, it is a gift and subject to the gift limit. The value is
the nondeductible portion on the ticket. If there is no declared face value, then the value is the
pro -rata share of the food, catering service, entertainment, and any additional Sem provided as
part of the event. The "no value" exception only applies if the official receives no more than two
tickets for his or her own use directly from the 501(c)(3) organization and it is for the
organization's fundraising event.
45. Q. A 501(c)(3) organization provides a ticket to an official for its fundraising event. The
organization seats the official at a table purchased by a business entity. Does the official have
to report the ticket?
A. No. So long as the ticket is provided directly by the 501(c)(3) organization and is used for the
official's own attendance at the fundraiser, the ticket is not reportable regardless of where the
official is seated.
46. Q. An agency employee who holds a position designated in the conflict of interest code receives a
ticket to a fundraiser from a person not "of the type" listed in the agency's code. Is the agency
employee required to report the value?
A. No. A ticket or any other gift may be accepted under these circumstances without limit or
reporting obligations. Agencies must ensure the conflict of interest code adequately addresses
potential conflicts of interests but not be so overbroad as to include sources that are not related
to the employee's official duties.
47.0. An official receives a ticket to attend a political fundraiser held in Washington D.C. from a
federal committee. Is the official required to disclose the ticket as a gift, and is it subject to the
gift limit?
A. No. The value of the ticket is not a gift so long as the ticket is provided to the official directly by
the committee holding the fundraiser and the official personally uses the ticket. (Regulation
18946.4.) Separate rules apply for travel provided to attend the fundraiser. Regulation 18950.3
covers issues on travel paid by or for a campaign committee.
48. Q. A political party committee is holding a political fundraiser at a golf course and a round of golf is
included. If the committee provides an elected official a ticket, is the ticket reportable by the
official?
A. No, so long as the official uses the ticket for his or her own use. If someone other than the
political party provides a ticket, the full cost of the ticket is a gift. The political party must report
the total amount spent on the fundraiser on its campaign statement.
49. Q. If a business entity offers an official a ticket or a seat at a table that was purchased for a political
fundraiser, what is the value?
A. Because the ticket was not offered by the campaign committee holding the fundraiser, it is a gift
to the official. The value is either the face value of the ticket or the pro -rata share of the food,
catering services, entertainment, and any additional benefits provided to attendees.
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50. Q. If an official attends an event that serves only appetizers and drinks, does the "drop-in"
exception apply no matter how long the official stays or how many appetizers or drinks are
consumed?
A. No. The focus of the food and beverages "drop-in" exception is not on the nature of the event
as a whole, but rather on the particular official's brief attendance and limited consumption. If an
official attends an event that serves only appetizers and drinks, the "drop-in" exception would
only apply if the official just "drops in" for a few minutes and consumes only a "de minimis"
amount of appetizers and drinks. However, the "drop-in" exception does not automatically apply
just because the event does not serve more than appetizers and drinks.
51.0. An organization, which is not a 501(c)(3) organization, is holding a fundraiser at a professional
sporting event. Tickets to this sporting event are sold out and it appears that tickets are only
available at a substantially higher price than the stated face value amount of the ticket provided
to the official by the organization. If the official attends the event, what is the value of the gift?
A. The value is the face value amount stated on the ticket to the sporting event. This valuation rule
applies to all tickets to such events that are not covered by a separate valuation exception, such
as non-profit and political party fundraisers.
52. Q. An official receives a ticket to a fundraiser, and if accepted, the ticket will result in a reportable
gift or a gift over the current gift limit. What are the options?
A. The official may reimburse the entity or organization that provided the ticket for the amount over
the gift limit (or pay down the value to under the $50 gift reporting threshold if the official does
not want to disclose the ticket). Reimbursement must occur within 30 days of receipt of the
ticket. A candidate or elected official may use campaign funds to make the reimbursement if the
official's attendance at the event is directly related to a political, legislative, or governmental
purpose for the payment. A ticket that is not used and not given to another person is not
considered a gift to the official.
www.fooc. ra.00v
FPPCA im: advice(a3fooc.w.aov(866275,3772)
FPPC TAD • 044 1-2017 (rev 4) • Page 10 of 10